Hammer & Dolly February 2015

February 2015 Volume 9, No. 2 $5.95 www.wmaba.com

RESULTS OF WMABA’S EXPANDED LABOR RATE SURVEY Page 39 www.grecopublishing.com

February 2015

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February 2015

CONTENTS February 2015 39 COVER STORY FILLING IN THE BLANK: INSIDE WMABA’S NEW LABOR RATE SURVEY - PART 2 WMABA’s latest project reveals an uneasy industry.

BY JOEL GAUSTEN

LOCAL NEWS 18 CALIBER JOINS FORCES WITH CRAFTSMAN, WMABA mainstays enter a new era.

POHANKA

NATIONAL NEWS 20 AUTOMAKERS RESPOND TO AIRBAG RECALL

DEPARTMENTS

Manufacturers announce plans to address a dangerous dilemma.

DEMANDS

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An update on various efforts to fight back.

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LAWSUITS AGAINST INSURERS GAIN MOMENTUM

LEGAL PERSPECTIVE 28 NEW COMMITTEES FOR THE NEW YEAR

Some important names to remember during this legislative session.

BY TYLER BENNETT, GOVERNMENT RELATIONS CONSULTANT

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TECHNICIAN OF THE MONTH 32 ABE SELLS

This technician and teacher tells us what he thinks it takes to be successful in this industry.

BY JACQUELYN BAUMAN

TECHNICAL FEATURE 34 WHERE IT ALL WENT WRONG: STEERING, PARTS ISSUES, LABOR RATES, TRAINING, EQUIPMENT & MORE

Views on the real auto body world.

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Calendar of Events Editor’s Message JOEL GAUSTEN

Executive Director’s Message JORDAN HENDLER What’s WMABA Up To? WMABA Membership Application

Industry Spotlight Ryan Friedlinghaus to Appear at NORTHEAST® 2015 President’s Message DON BEAVER In Memoriam

Advertisers’ Index

Images © www.thinkstockphoto.com

BY LARRY MONTANEZ III, CDA AND JEFF LANGE, PE

February 2015

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CALENDAR OF

EVENTS

March 20-22, 2015

NORTHEAST® 2015 Autom otive Services Show Meadowlands Exposition Cen ter, Secaucus, NJ For more information, visit www.aaspnjnortheast.com or turn to page 44.

CLASS LISTINGS February 3, 2015

AluMinuM ExtErior PAnEl rEPAir & rEPlAcEMEnt Harrison Body Works, Richmond, VA StructurAl StrAightEning StEEl Cambridge Auto Body, Cambridge, MD PlAStic & coMPoSitE rEPAir State Farm Silver Spring, Silver Spring, MD

February 4, 2015

AdhESivE Bonding N T Auto Body Inc., Alexandria, VA

February 5, 2015

AdhESivE Bonding Harrison Body Works, Richmond, VA vEhiclE tEchnology & trEndS 2015 Automotive Collision Technologies, Randallstown, MD AdvAncEd StEEring & SuSPEnSion SyStEMS dAMAgE AnAlySiS Coxton’s Gold Team Collision Center, Yorktown, VA vEhiclE tEchnology & trEndS 2015 Southern Collision Center, Chesapeake, VA vEhiclE tEchnology & trEndS 2015 Delcastle VoTech, Wilmington, DE

February 7, 2015

BluEPrinting ProcESS & dAMAgE diScovEry Tristate Collision Center, Columbia, MD

February 10, 2015

Full-FrAME PArtiAl rEPlAcEMEnt Harrison Body Works, Richmond, VA Full-FrAME PArtiAl rEPlAcEMEnt Coxton’s Gold Team Collision Center, Yorktown, VA corroSion ProtEction Cambridge Auto Body, Cambridge, MD vEhiclE tEchnology & trEndS 2015 Canby Motors Collision Repair, Aberdeen, MD

February 11, 2015

corroSion ProtEction Refinish Solutions, Springfield, VA

February 12, 2015

Full-FrAME PArtiAl rEPlAcEMEnt Refinish Solutions, Springfield, VA Full-FrAME PArtiAl rEPlAcEMEnt Radley Chevrolet, Fredericksburg, VA PlAStic & coMPoSitE rEPAir Kunkel’s, Baltimore, MD StAtionAry glASS Harrison Body Works, Richmond, VA vEhiclE tEchnology & trEndS 2015 Frederick Co. Career & Tech, Frederick, MD SEctioning oF StEEl unitizEd StructurES Southern Collision Center, Chesapeake, VA

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February 2015

February 17, 2015

February 26, 2015

February 18, 2015

March 3, 2015

whEEl AlignMEnt & diAgnoStic AnglES Keystone Linthicum, Linthicum, MD BluEPrinting ProcESS & dAMAgE diScovEry Cambridge Auto Body, Cambridge, MD color thEory, Mixing tonErS & tinting Harrison Body Works, Richmond, VA AdvAncEd StEEring & SuSPEnSion SyStEMS dAMAgE AnAlySiS N T Auto Body Inc., Alexandria, VA AutoMotivE FoAMS Refinish Solutions, Springfield, VA whEEl AlignMEnt & diAgnoStic AnglES Southern Collision Center, Chesapeake, VA

February 19, 2015

AdvAncEd StEEring & SuSPEnSion SyStEMS dAMAgE AnAlySiS King Volkswagen, Gaithersburg, MD PlAStic & coMPoSitE rEPAir Frederick Co. Career & Tech, Frederick, MD AdhESivE Bonding Parrish Body Shop II Inc., Fredericksburg, VA AdvAncEd StEEring & SuSPEnSion SyStEMS dAMAgE AnAlySiS Harrison Body Works, Richmond, VA PlAStic & coMPoSitE rEPAir Coxton’s Gold Team Collision Center, Yorktown, VA rEPlAcEMEnt oF StEEl unitizEd StructurES Refinish Solutions, Springfield, VA wEldEd & AdhESivEly BondEd PAnEl rEPlAcEMEnt Delcastle VoTech, Wilmington, DE

February 24, 2015

color thEory, Mixing tonErS & tinting Coxton’s Gold Team Collision Center, Yorktown, VA SuSPEnSion SyStEMS Harrison Body Works, Richmond, VA

StEEl unitizEd StructurES, tEchnologiES & rEPAir Harrison Body Works, Richmond, VA AutoMotivE FoAMS Rosner Collision Center, Fredericksburg, VA PlAStic & coMPoSitE rEPAir Delcastle VoTech, Wilmington, DE ovErviEw oF cyclE tiME iMProvEMEntS For thE colliSion rEPAir ProcESS Harrison Body Works, Richmond, VA whEEl AlignMEnt & diAgnoStic AnglES Coxton’s Gold Team Collision Center, Yorktown, VA rEPlAcEMEnt oF StEEl unitizEd StructurES State Farm, Silver Spring, MD rAck & Pinion & PArAllElogrAM StEEring SyStEMS Delcastle VoTech, Wilmington, DE

March 5, 2015

corroSion ProtEction Harrison Body Works, Richmond, VA SEctioning oF StEEl unitizEd StructurES Refinish Solutions, Springfield, VA AdvAncEd StEEring & SuSPEnSion SyStEMS dAMAgE AnAlySiS Automotive Collision Technologies, Randallstown, MD

March 7, 2015

whEEl AlignMEnt & diAgnoStic AnglES N T Auto Body Inc., Alexandria, VA

March 10, 2015

MEASuring Harrison Body Works, Richmond, VA undErStAnding & PrEvEnting rEFiniSh dEFEctS Canby Motors Collision Repair, Aberdeen, MD

March 11, 2015

StEEl unitizEd StructurES tEchnologiES & rEPAir N T Auto Body Inc., Alexandria, VA

Industry training opportunities and don't-miss events.

March 12, 2015

Full-FrAME PArtiAl rEPlAcEMEnt Southern Collision Center, Chesapeake, VA color thEory, Mixing tonErS & tinting Harrison Body Works, Richmond, VA SquEEzE-tyPE rESiStAncE SPot wElding Radley Collision of Stafford, Fredericksburg, VA SquEEzE-tyPE rESiStAncE SPot wElding Coxton’s Gold Team Collision Center, Yorktown, VA color thEory, Mixing tonErS & tinting Frederick Co. Career & Tech, Frederick, MD SEctioning oF StEEl unitizEd StructurES Kunkel’s, Baltimore, MD

March 15, 2015

AltErnAtivE FuEl vEhiclE dAMAgE AnAlySiS & SAFEty Radley Chevrolet, Fredericksburg, VA

March 17, 2015

Full-FrAME PArtiAl rEPlAcEMEnt Keystone Linthicum, Linthicum, MD SquEEzE-tyPE rESiStAncE SPot wElding Harrison Body Works, Richmond, VA

March 18, 2015

color thEory, Mixing tonErS & tinting Refinish Solutions, Springfield, VA whEEl AlignMEnt & diAgnoStic AnglES Radley Collision of Stafford, Fredericksburg, VA

March 19, 2015

AluMinuM ExtErior PAnEl rEPAir & rEPlAcEMEnt Southern Collision Center, Chesapeake, VA rAck & Pinion & PArAllElogrAM StEEring SyStEMS Harrison Body Works, Richmond, VA Full-FrAME PArtiAl rEPlAcEMEnt King Volkswagen, Gaithersburg, MD whEEl AlignMEnt & diAgnoStic AnglES Frederick Co. Career & Tech, Frederick, MD

March 24, 2015

rEPlAcEMEnt oF StEEl unitizEd StructurES Harrison Body Works, Richmond, VA whEEl AlignMEnt & diAgnoStic AnglES Delcastle VoTech, Wilmington, DE

March 26, 2015

ovErviEw oF cyclE tiME iMProvEMEntS For thE colliSion rEPAir ProcESS Southern Collision Center, Chesapeake, VA AdvAncEd StEEring & SuSPEnSion SyStEMS dAMAgE AnAlySiS Radley Chevrolet, Fredericksburg, VA SEctioning oF StEEl unitizEd StructurES Harrison Body Works, Richmond, VA

March 31, 2015

hAzArdouS MAtEriAlS, PErSonAl SAFEty & rEFiniSh SAFEty Harrison Body Works, Richmond, VA

www.i-car.com or (800) 422-7872 for info February 2015

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Joel gausten

EDITOR’S

(973) 600-9288 tgpjoel@verizon.net

MESSAGE LET’S HAVE SOME FUN Considering my position as editor of a major industry trade publication, it isn’t surprising that a good portion of my time is spent fielding complaints and concerns from repair facilities and vendors. The auto body profession isn’t going to get any easier, and I understand and empathize with the fears and frustration I encounter over the phone and via email on a daily basis. With this in mind, I have a special request for the readers of Hammer & Dolly.

Before putting down this magazine, I want you to think of at least one thing in this industry that excites or inspires you. Maybe it’s that classic restoration job at home that is begging for a new paint job, or maybe it’s those hot rods you saw as a kid that made you fall in love with doing this stuff in the first place. Once you’ve identified something about the automotive world that puts a smile on your face, I want you to make plans to indulge in it in some way over the next seven days. Take some time – even if it’s only an hour – to simply have fun with your profession. When you strip away all this business of cycle time, severity, rental times and everything else that adds stress to your day, you will remember how truly unique and enjoyable spending time with cars can be. wMABA oFFicErS PrESidEnt

vicE PrESidEnt

trEASurEr SEcrEtAry

iMMEdiAtE PASt PrESidEnt

don Beaver Dbeaver@antwerpenauto.com 443-539-4200 ext. 17061 torchy chandler torchy.chandler@gmail.com 410-309-2242 Mark Schaech Jr. mark@marksbodyshop.com 410-358-5155 John krauss jkrauss@craftsmanautobody.com 703-534-1818 Barry dorn bdorn@dornsbodyandpaint.com 804-746-3928

BoArd oF dirEctorS

Rodney Bolton (rbolton@aacps.org) 410-969-3100 ext. 250 Mark Boudreau (crashdaddy@aol.com) 703-671-2402

Kevin Burt (kevinburt@walkermillcollision.com) 301-336-1140 Bobby Wright (bobby@burkevillebodyshop.com) 434-767-4128

AdMiniStrAtion

ExEcutivE dirEctor Jordan Hendler (jordanhendler@wmaba.com) 804-789-9649 wMABA corPorAtE oFFicE P.O. Box 3157 • Mechanicsville, VA 23116

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My work in the industry frequently puts me in contact with collision repair students and entry-level techs. In almost every conversation I have with these new and developing workers, they demonstrate an infectious love for the craft of auto repair and simply can’t wait to get started at a real shop. To these young people, spending their days in the auto body field is a thrilling opportunity. You remember that feeling, don’t you? It’s still within you; you just have to take the time to find it again.

I know that the hard times you’re experiencing won’t suddenly disappear after reading this message, but I truly hope that these words have provided some positive food for thought. The problems you’re having at your shop can wait; just take a moment and remind yourself of why you’re doing this – and how fulfilling it still is. And remember that, in this industry, you are never truly alone. There are plenty of people out there willing, able and ready to help you. If you are new to WMABA, please reach out to Executive Director Jordan Hendler at (804) 789-9649 to find out about the association’s efforts to improve the industry – and how you can make a difference. And have some fun – you’ve earned it! H&D

February 2015

StAFF

PuBliShEr dirEctor oF SAlES Editor MAnAging Editor Art dirEctor oFFicE MAnAgEr

thomas greco thomas@grecopublishing.com

Alicia Figurelli alicia@grecopublishing.com

Joel gausten tgpjoel@verizon.net

Jacquelyn Bauman jacquelyn@grecopublishing.com

lea velocci lea@grecopublishing.com

Sofia cabrera tgp4@verizon.net

PUBLISHED BY TGP, Inc. 244 Chestnut St., Suite 202 Nutley, NJ 07110 973-667-6922 FAX 973-235-1963 Reproduction of any portions of this publication is specifically prohibited without written permission from the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of TGP Inc. or of the Washington Metropolitan Auto Body Association (WMABA). Copyright © 2014 Thomas Greco Publishing, Inc.

February 2015

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EXECUTIVE DIRECTOR’S

MESSAGE MEMBERSHIP FOR APPLES...

AND ORANGES

Let us start this off with stating the obvious: It used to be that the difference between two shops was, “Is it a dealer shop or an independent shop?” Then, there was the added question of, “Are they DRP or non-DRP?” Now, the questions growing and morphing are: “Is it an MSO/network/group, dealer or independent?” and, “Are they certified or non-certified, and with which OEM(s)?”

The “we are not apples-to-apples, but rather apples-to-oranges” argument is becoming more relevant in our industry, as increased attention is being placed on the OEM-certified repair networks. There is a minor similarity to a DRP network in the consumer referral sense, but a vast difference in the expectations for repair quality, training and

equipment, as well as overall processes for the customer.

SCRS’ recent OEM Technology Summit at the SEMA Show showcased manufacturer reps speaking directly to this point.

Their biggest concern is for the protection of their customer investment – the quality of

repair and the experience they have during that process. Every one of those present talked about how it was the building block of initiating their program.

Therefore, I submit that many times, repairers are not fitting into the same “category;” but, in the eyes of insurers (or to the general public), they are being compared to those with differing business types. This is the most apparent when talking about Labor Rates. The problem for the industry is internal: How do we distinguish ourselves into categories so as to be compared more fairly? Is that a process worth pursuing?

When you get into the cover story (page 39), you can see answers to the questions within the WMABA area Survey

Whether you’re an apple or an orange, membership in WMABA is of great importance to understanding, clarifying and creating solutions to the problems all our “fruit” face each day.

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February 2015

Jordan hendler

(804) 789-9649 jordanhendler@wmaba.com

that show a high percentage of respondents who take issue with factors of insurance relations. You will also see that this is regardless of the “type” of shop they are.

Additionally, very prevalent responses are seen with the questions regarding necessary and/or performed operations. That the answers are mostly the same is important to note, because those areas are where the majority of repairers can work together to help arouse awareness of the issues they face. This is where WMABA can focus to try and make a difference. Exposure of industry issues is what the association is all about.

Whether you’re an apple or an orange, membership in WMABA is of great importance to understanding, clarifying and creating solutions to the problems all our “fruit” face each day. We bring forward information so that you can make more informed decisions that lead to a healthier business and industry. H&D

Contact these Ford or Lincoln Mercury dealers for all your parts needs: BOB BELL FORD 7125 RITCHIE HWY, GLEN BURNIE, MD 20161 Phone: 410-689-3038 Fax: 410-766-1275 www.bobbell.com

PLAZA FORD 1701 BEL AIR RD, BEL AIR, MD 21014 Phone: 410-879-3367 Fax: 410-877-7248 www.plazaford.com

HAGERSTOWN FORD 1714 MASSEY BLVD,HAGERSTOWN, MD 21740 Phone: 800-200-0276 Fax: 301-733-0603 www.hagerstownford.com

WALDORF FORD 2440 CRAIN HWY, WALDORF, MD 20601 Phone: 301-843-3028 Fax: 301-843-0334 e-mail: parts@waldorfford.com www.waldorfford.com

SHEEHY FORD 5000 AUTH RD, MARLOW HEIGHTS, MD 20746 Phone: 301-899-6300 Fax: 301-702-3650 www.sheehyford.com

KOONS FORD OF ANNAPOLIS 2540 RIVA ROAD ANNAPOLIS, MD 21401 Phone: 410-266-3083 Fax: 410-224-4239 www.koonsford.com

TED BRITT FORD 11165 FAIRFAX BLVD, FAIRFAX, VA 22030 Phone: 703-673-2420 Fax: 703-870-7982 www.tedbrittparts.com

© 2014, Ford Motor Company

February 2015

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WHAT’S

The Playbook

UP TO? WMABA MEMBERSHIP PROMOTION:

GET YOUR QUARTER BACK

There has not been a better opportunity to join WMABA in the past 10 years than right now. For the first quarter of 2015, the association is offering a special membership promotion for new members. If you’re reading this, your first benefit is already being realized: Staying up on the news in our area and beyond. You can save $200 off an annual membership ($700 regular price) or get one free quarter (a $195 value) with the first quarter payment. Savings like this have not been available in more than a decade!

Get Your Team Jersey

Supporting WMABA is an investment in the future of your business and your industry. By becoming a member, you are represented in all of the places the Board or executive director goes. Whether at a trade show like SEMA, assisting with the SCRS OEM Technology Summit regarding certified repairs or locally at the state capitol meeting legislators or testifying at a hearing, your interests – and the interests of all repairers – are at the forefront of WMABA’s agenda.

Though repairers often feel competitive, the association is a place for camaraderie and community. Here, we’re all on the same team.

The association is your resource for all things. Whether you have a question about current Labor Rate data, operations, customer interaction, insurer relationships, vendor products or national news, your association is the place to ask first. Through our national relationships, we are able to take issues to the foreground of places such as the Society of Collision Repair Specialists, Collision Industry Conference or to national contacts for insurers and vendors.

Locally, we research government regulations and oversight to make sure the repair industry is protected from negative legislation.

Represented in both Virginia and Maryland, WMABA proposes and opposes recommended bills that come into the legislature during open session. Also, we work with consumer-related entities, government agencies and other related industry organizations to ensure that the voices of the repairer and their customer are heard.

Many repairers take advantage of the knowledge and community that the association provides for navigating situations that arise. A simple phone call or email can circumvent many of our members’ issues.

Call the Game

As a member, you decide your personal level of participation. Do you have an interest in committees that address particular issues about which you feel passionately? Would you want to be a Board member and assist in guiding the direction of the association? How about even sitting on the sidelines so you can focus on your own business? A positive answer to any of these questions is what we’re looking for! While WMABA would like to encourage your spirit of volunteerism, it is solely up to you at what level you get involved. H&D

Get Educated

WMABA offers issue-specific topic-driven education throughout the year. Participation in special events, such as the December 10 limited-seating seminar and tour at the Audi Training Center, offer your business the best opportunities to advance your understanding of changes within our industry.

MEMBER TESTIMONIALS

the two obvious benefits of belonging to wMABA are: 1) keeping up-to-date on industry events, challenges and technical changes, and 2) networking with industry shop owners and vendors. the not-so-obvious benefit is that we as shop owners can unify to make a change. Being a member assures each of us that we are not ‘the only one’ dealing with these issues. wMABA is the only association focused on making this industry better for the collision shop owners and technicians. no other organization can make that claim. Most of them just follow the money. Put your money where it counts – join wMABA! - Bill Denny, Bill Denny’s Automotive, Inc., Havre de Grace, MD

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February 2015

Find more association updates at www.wmaba.com.

The minimum is getting your membership. The upcoming year can start off with your commitment to the betterment of your business and your industry. SIGN UP TODAY!

One Quarter Free!

Save $200 Off Annual Membership or get

wMABA keeps us in touch with what is happening in our industry, from class action lawsuits to pending legislation in our state and the whole country. our membership helps us remember that we are not the only ones facing the discouraging burdens and issues out there. it reminds us that if we all stick together we can make a change for the better. their coverage of Partstrader, well before it hit home, was invaluable. they even went to the State and tried to make it unlawful for insurance companies to require it. they are working hard for us, on things that all body shop owners care deeply about, but don’t have the time to stand up and fight.

- Barbara Chase, Sisk Auto Body, Owings, MD

i joined wMABA the very first year i opened my shop. i was immediately embraced by both colleagues and mentors who provided me the fellowship to know i wasn't the only one facing the challenges before me, advice that provided clarity and confidence to make the decisions that would guide my business and a network that i could call on repeatedly over the years i have been a member. wMABA's ability to educate the collision repair industry, speak on its behalf and lobby for issues that affect it has been - and is to this day - the greatest value i have received from any association of which i have been a member.

- Mark Boudreau, Spectrum Collision Center, Arlington, VA

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LOCAL

NEWS

Longtime WMABA businesses start a new journey.

By JoEl gAuStEn

Caliber Joins Forces with Craftsman, Pohanka

On December 31, Caliber Collision Centers completed its acquisition of WMABA mainstay businesses Craftsman Auto Body and Pohanka Collision Centers, signaling the consolidator’s official entry into the Maryland and Virginia markets.

Formed in 1997 and headquartered in Lewisville, TX, Caliber Collision Centers is one of the largest collision repair enterprises in America, boasting more than 200 I-CAR Gold Class Professional-certified collision repair centers across Arizona, California, Colorado, Florida, Nevada, New Mexico, North Carolina, Oklahoma and Texas. The company’s deal with Craftsman and Pohanka will bring an additional 25 locations under the Caliber umbrella. Both Craftsman and Pohanka have worked cooperatively on various strategic initiatives for the past nine years.

“Our partnership with Craftsman Auto Body and Pohanka Collision Centers will increase Caliber’s network to 232 locations as we continue to grow into the collision repair provider of choice in every community we serve,” offered Mark Sanders, Caliber Collision Centers’ president and COO. Founded in 1919, Pohanka Collision Centers has built a sizable business in the WMABA region with locations in Virginia (Alexandria, Arlington, Chantilly, Dumfries, Stafford and Fredericksburg) and Maryland (Clinton, Ocean City, Pocomoke City, Capitol Heights and Salisbury).

“We are thrilled to continue to work with Craftsman as we join together to help Caliber grow its network across the country,” offers

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Chris Pohanka, owner/vice president of operations of Pohanka Collision Centers and a former WMABA Board member. “This is a great opportunity for all of us.”

One of the Virginia auto community’s most revered institutions, Craftsman Auto Body was founded in 1956 and has been a member of the association since the 1960s. The third-generation, multi-location company has built a solid reputation through supporting not only the collision repair industry, but the motoring public as well thanks to its involvement in the National Auto Body Council’s Recycled Rides program. In 1999, WMABA created the Jerry Dalton Memorial Education Fund as a tribute to the company’s legendary co-owner, who served on the WMABA Board for 25 consecutive years and was president from 1985 to 1987. Craftsman Auto Body COO John Krauss has a long history on the WMABA Board of Directors, while Craftsman CEO Paul Krauss received the Collision Industry Electronic Commerce Association (CIECA) Outstanding Leadership Award at the Collision Industry Conference in Las Vegas last November.

“Our team is excited to be joining forces with Caliber Collision,” shares Paul Krauss. “Caliber has done an exceptional job of building a solid reputation for delivering customer choice combined with industry-leading metrics. Just as important to us is the fact that they have a culture that is compatible with the values and standards that are the backbone of our business.”

“This transaction represents an important strategic opportunity that provides for us a solid platform in Virginia and Maryland with two high quality, industry-leading teams,” adds Caliber Collision Center CEO Steve Grimshaw. “Like many others in the industry, we have admired Craftsman and Pohanka for many years. We are honored that they have agreed to partner with us as we work together to restore Virginia and Maryland customers to the rhythm of their lives.”

More information on Caliber Collision Centers is available at www.calibercollision.com.

H&D

February 2015

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Car companies take action to protect consumers.

NATIONAL

By JoEl gAuStEn

NEWS AUTOMAKERS RESPOND TO AIRBAG RECALL DEMANDS

In response to the National Highway Traffic Safety Administration’s request for carmakers to implement a nationwide recall of their vehicles that contain Takata airbags (“Airbag Controversy Explodes Into Massive Recall,” H&D, January 2015), a number of manufacturers have stepped up with their solutions to the issue.

In early December, Honda became the first manufacturer to agree to expand its regional airbag recall nationwide. The automaker’s decision to step up to the plate and add more cars beyond its original recall effort in high humidity regions (Alabama, California, Florida, Georgia, Hawaii, Louisiana, Mississippi, South Carolina, Texas, Puerto Rico and the US Virgin Islands) came after months of scrutiny over its experience with the Takata issue. As reported by the Detroit News on December 8, “Honda has confirmed four deaths - including one in Malaysia - and 46 injuries in the United States” linked to Takata. On the same day, Honda announced that the following models would be part of its national Safety Improvement Campaign: • 2001-2007 honda Accord with 4-cylinder engines

• 2001-2002 honda Accord with v6 engines

• 2001-2005 honda civic

• 2002-2006 honda cr-v

• 2006 honda ridgeline

• 2002-2004 honda odyssey

• 2002-2003 Acura tl

• 2003-2011 honda Element

• 2003-2007 honda Pilot

• 2003-2006 Acura Mdx

• 2002 Acura cl

With this expansion, a total of approximately 5.4 million Honda vehicles will be covered by the recall.

On December 11, Mazda issued a statement that it would institute a nationwide Safety Improvement Campaign of 2004-2008 model-year Mazda6 and RX-8 models equipped with certain Takata airbag inflators:

There are approximately 330,000 vehicles included in this Safety Improvement Campaign in the United States. So far, Takata has tested a large number of inflators removed from Mazda vehicles, and NONE have been found to be non-compliant at this time. One vehicle – a

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February 2015

2005 Mazda6 located in Florida – has been identified as having experienced an abnormal driver’s-side airbag deployment.

On December 18, Reuters reported that Ford expanded the recall of older-model Mustang cars that featured driver-side Takata airbags with inflators to include about 502,500 vehicles. This is in addition to the approximately 55,000 Ford vehicles already recalled for possible driver-side airbag defects. Previously, a December 4 Car And Driver update announced that Ford added passenger-side airbags to the repair list of about 13,000 vehicles (2004-2005 Rangers and 2005-2006 GTs) already involved in the regional Takata recalls “originally sold, or ever registered, in Florida, Hawaii, Puerto Rico and the US Virgin Islands.” The expanded recall also includes zip codes with high-humidity conditions in Georgia, Alabama, Mississippi, Louisiana, Texas, Guam, Saipan and American Samoa.

On December 19, Chrysler (FCA US LLC.) announced that it would “replace driver’s-side airbag inflators in an estimated 3.3 million older-model vehicles worldwide in an expansion of the ongoing regional field action.” The manufacturer stressed that this decision was a precaution, not a response to a direct accident or fatality caused by a defective Takata airbag in their vehicles. The expansion affects an estimated 2,890,785 vehicles across the US; 258,586 in Canada; 66,436 in Mexico and 99,030 outside the NAFTA region.

Covered are certain 2004-2007 vehicles from the following model lines: • dodge ram 1500, 2500 and 3500 pickups • dodge ram 3500 chassis cabs • dodge durango and chrysler Aspen full-size Suvs • chrysler 300 and dodge charger full-size sedans • dodge Magnum full-size station wagons • Mitsubishi raider and dodge dakota small pickups

Three days after the Chrysler announcement, the New York Times reported that BMW would replace driver-side airbags in approximately 140,000 BMW 3 Series vehicles produced in the US between January 2004 and August 2006. Previously, the automaker’s recall was limited to approximately 11,700 cars in Florida, Hawaii and Puerto Rico.

Hammer & Dolly will follow this story as it develops. H&D

February 2015

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Various states take their issues to the courts.

NATIONAL

By JoEl gAuStEn

NEWS Lawsuits Against Insurers Gain Momentum

“Enough is enough!”

If you have attended a national industry event in recent years, you have inevitably heard this battle cry during discussions regarding the collision repair community’s push against insurer abuse. At no other time in history was this mindset more evident than in the final months of 2014, which saw a multitude of new lawsuits against carriers spring up in various places across the country.

According to reports by CollisionWeek Online, antitrust lawsuits against a host of insurers were recently filed by collision repair facilities in Illinois, Alabama, Pennsylvania, California, Ohio, Missouri, Kentucky, Oregon and Washington. A recently filed suit in Michigan (Rodenhouse Body Shop, Inc. et al v. State Farm Mutual Automobile Insurance Company et al.) names 12 shops as plaintiffs and more than 30 insurers as defendants, while a case filed in Arizona in late October (Legends Collision LLC et al v. State Farm Mutual Automobile Insurance Company et al.) involves six collision repair businesses and 20-plus insurers.

In December, a suit filed against State Farm

by Louisiana Attorney General James D. “Buddy” Caldwell (“Lawsuits & Lost Faith: State Farm Faces a Bitter Industry,” H&D, October 2014) and a RICO suit filed by Crawford’s Auto Center of Downingtown, PA (“RICO Lawsuit Targets Top Auto Insurers,” H&D, July 2014) were combined with current multidistrict litigation (MDL) being heard in the US District Court for the Middle District of Florida.

Crawford’s had opposed the consolidation of its case in this manner (“RICO Suit Plaintiff Rejects Joining Antitrust Actions,” H&D, September 2014), as did the State of Louisiana.

A press release issued by Attorney General Caldwell regarding his case accuses the nation’s top auto insurer of engaging “in a pattern of unfair and fraudulent business practices aimed at controlling the auto repair industry and forcing unsafe repairs on vehicles without the knowledge or consent

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February 2015

of Louisiana consumers.” His concern for the safety of Louisiana drivers is explored within the text of the suit:

Through the pressure and control they exert upon repair facilities, the practices of State Farm and other insurers lead to the use of non-OEM parts in repairs, directly affecting the timing of airbag deployment so that the repaired vehicle no longer meets the manufacturer’s safety specifications.

State Farm and other insurers routinely refuse to pay for procedures necessary to make complete repairs pursuant to the manufacturer guidelines and the procedure pages published by the estimating companies.

Caldwell also argues that State Farm and other carriers “routinely refuse to pay costs associated with OEM wheels and encourage repair facilities to recondition wheels or use non-OEM replacement parts,” which goes against recommendations made by carmakers: Many automobile manufacturers have publicly stated that they do not approve of any repairs to aluminum wheels that involve welding, bending, straightening, reforming or adding new material, and that only those repairs to aluminum wheels which are strictly cosmetic are approved.

Filed in the spring of 2014, the Crawford’s suit alleges that State Farm, Allstate, GEICO, Progressive, Farmers, Liberty Mutual and Nationwide conspired to control the cost of automotive repairs and create artificial “prevailing” rates based on their DRP shops’ use of products by the industry’s three leading Information Providers (Audatex [AudaExplore], CCC or Mitchell), who have been named as conspirators. USAA, Travelers and American Family were also named as conspirators in the suit, but were not named as defendants. H&D

Executive Director’s Thoughts

The degrading climate in the industry is such that there is a disparity between repairers’ viewpoints on insurer relations. I think we’ll see continued croppings of lawsuits across the country from those who find their situation to be unfair or, more pointedly, unjust.

- Jordan Hendler

February 2015

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February 2015

27

LEGAL

What’s happening at the State House, in your industry and everywhere in between.

PERSPECTIVE

By tylEr BEnnEtt

Government Relations Consultant, The Law Offices of Alexander & Cleaver

NEW COMMITTEES FOR THE NEW YEAR As Maryland begins the 2015 legislative session, the look of the General Assembly is quite different than the way that it looked a year ago. More than 60 new legislators were elected for the first time in November. With so many new faces across the General Assembly, both the Senate President and the Speaker of the House were faced with the daunting task of assigning the members of their chambers to one of the 10 legislative standing committees.

Several committees saw a change in leadership, with either a new chair or vice chair having been named to lead. On the Senate side, the most notable change is the appointment of Bobby Zirkin (D-Baltimore County) as the chair of the Judicial Proceedings Committee. Senator Zirkin replaces Brian Frosh, who was elected as Maryland’s attorney general. In addition, Senator Rich Madaleno (D-Montgomery) was named the vice chair of the Budget & Taxation Committee.

On the House side, Maggie McIntosh (D-Baltimore City), who formerly chaired the Environmental Matters Committee, was selected as the chair of the Appropriations Committee. Replacing Delegate McIntosh as chair of her former committee will be Kumar Barve (D-Montgomery). Delegate Barve is not the only major change to the House Environmental Matters Committee. The committee was renamed the Environment & Transportation Committee, with transportation policy issues being consolidated within the committee’s jurisdiction. Dana Stein (D-Baltimore County) will serve as the vice chair of this committee.

From WMABA’s perspective, two of the more important committees are the House Economic Matters Committee and the Senate Finance Committee, given their oversight of

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February 2015

business issues, including insurance policy and consumer protection. The Finance Committee will continue to be chaired by Mac Middleton (D-Charles), who has served in this role since 2002. The four new members to the committee are all incumbent senators. They are Joanne C. Benson (D-Prince George’s), Steve Hershey (R-Upper Shore), J.B. Jennings (R-Baltimore Co., Harford) and Ed Reilly (R-Anne Arundel).

The Economic Matters Committee will continue to be chaired by Dereck Davis (D-Prince George’s). Of the 24 members of this committee, 15 are new to the committee. Six are beginning their first term in the House. Sally Jameson (D-Charles) will serve as the new vice chair.

She served on this committee since 2003. One more appointment has yet to be made to this committee, with Kelly Schulz (R-Frederick) being chosen by Governor Larry Hogan to lead the Department of Labor, Licensing and Regulation. Given its new designation to include transportation issues, the Environment & Transportation Committee will be of greater importance to WMABA. Whether you’re in Maryland or Virginia, it is always important to keep diligent watch for any legislation that could affect business, and it is of greater importance to become actively engaged in the process when these issues arise. The first step is to find out who your representatives are and make sure they know that you can be a real asset and a major source of information. H&D

Mr. Bennett has been a government relations consultant with the Law Offices of Alexander & Cleaver for the past two years. Previously, he worked as a legislative aide to MD Senate President Mike Miller, where he handled budget and taxation issues. To contact our office, please call (410) 974-9000.

Executive Director’s Thoughts

The political movements in Virginia and Maryland this recent election lend to community efforts to incite “change.” From either Party, it is refreshing to see the renewed vigor in electing people from grassroots efforts and having new faces and different perspectives. WMABA will closely watch our region's legislative sessions and continue to represent the interests of repairers.

- Jordan Hendler

February 2015

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TECHNICIAN OF

“

THE MONTH ABE SELLS

A

By JAcquElyn BAuMAn

If you would like to nominate someone as Technician of the Month, please contact Hammer & Dolly Editor Joel Gausten at tgpjoel@verizon.net

The people I'm around and work with are some of the most influential people in my life. I’ve always had good people around me; we’ve learned from each other.

s reported in the January issue of Hammer & Dolly, Tidewater Community College Regional Automotive Center Director Beno Rubin received the Byrl Shoemaker/Automotive Service Excellence (ASE) Industry Education Alliance Instructor of the Year Award (sponsored by the National Automotive Technicians Education Foundation [NATEF]) on November 19. As gracious as he was to accept the award, in his opinion, his success is due largely in part to an important instructor in his program, Abe Sells.

In 1988, Sells attended the Belmont Career Center vocational school. Soon after his graduation, he got a job at a dealership as a combination man doing collision repair and refinish work. In the '90s, he got involved with a Chevy dealership as a Master Certified Technician, where he stayed for about 15 years.

During this time, he participated in training for PPG and received his Gold-level certification.

When he moved to Virginia from Ohio, he got involved with collision work and started working with I-CAR. Two years ago, he became an instructor to educate technicians on OEM standards, and he is a certified instructor for ICAR in both aluminum and steel welding. Currently, he teaches automotive repair for Tidewater Community College. With such an impressive résumé, it is no wonder why his industry peers look up to him in the way that they do.

“Abe is extremely passionate about this industry and about training future technicians,” says Rubin. “He’s the one who has been helping us develop our entire program. His enthusiasm is impressive, and he’s well respected by both the students and the industry.”

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”

Hammer & Dolly chats with the WMABA community’s best and brightest.

February 2015

“You’ve got to love what you do to be good at it,” Sells says. “I take a lot of pride in what I do. I’ve always been the person who wants to help other people.”

Sells is employed at First Team Toyota in Chesapeake, and it is through this opportunity that he was able to secure a hands-on teaching environment for the students. They utilize a classroom at the dealership, as they’re currently in the process of getting one on campus. He attributes his success to the respect he receives for his knowledge of the trade.

“When you’re an I-CAR instructor, you have the OEMs’ knowledge on your side,” he says. “People know you know what you’re talking about.”

Not surprisingly, he is also very respectful of his peers.

“The people I'm around and work with are some of the most influential people in my

life," he shares. "I've always had good people around me; we’ve learned from each other.”

One person in particular who helped shape Sells' career path was Mark Burkhart, who taught Sells how to perform collision repair when he was fresh out of vocational school.

“He’s the one who really showed me the ropes,” Sells says. “I always used him as a reference when I was applying for new jobs.”

With all of the changes in technology and innovation on today’s vehicles, the future of the automotive repair industry can seem murky. Abe Sells is among those who believe that education must continue as the industry evolves. As American psychologist John Dewey once said, “If we teach today’s students as we taught yesterday’s, we rob them of tomorrow.” H&D

tidewater community college offers an Associate of Applied Science degree in Automotive technology and six different career Studies certificates in various aspects of automotive and collision repair.

February 2015

33

TECHNICAL

FEATURE WHERE IT ALL WENT WRONG: STEERING, PARTS ISSUES, LABOR RATES, TRAINING, EQUIPMENT AND MORE We are hearing all sorts of confusion over information provided about equipment, parts issues and a lot of other stuff. We never seem to understand why so many people in the business - many of whom are hugely successful - fall prey to the rumors and let others outside of their business tell them how to run it. The funniest thing we heard was from the DRP facility owners who complained about steering more than the non-DRP facility owners. We asked, “What has you so upset?”

They all answered the same: “The programs we are not on. We are losing a lot of business due to steering.” We then asked, “But isn’t that how you get business from the insurers you are working with?” “Yeah,” they replied.

“But that’s different.” Well, that conversation gave us an idea for an article.

Steering Steering is the direction or redirection of customers to a particular repair facility. This, as many of us know, is illegal in most states and is next to impossible to prove. One main reason is that most of the repair facilities have no audio recordings and no corroborating witness, and the other main reason is the facilities allow this to happen. How? That is an easy one. Most of the facilities allow the customer to go home and call in the claim, which allows the call center representative to read off their word track to get the customer into one of their controlled DRP facilities.

Moreover, even in the case where the shop has the customer call from the facility, most shop personnel do not know the law and how to handle the call-in center representatives.

Losing a customer to steering is 90 percent the fault of the shop - not the insurance companies. The insurance companies are

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February 2015

only doing what they need to do, while you are not. Setting up SOPs and word tracks are not hard, but the change to using them must be installed. Take control of your business.

Parts Issues Parts usage, OEM, aftermarket, used, procurement… The topics go on and on.

Parts are a main component in the repair of a vehicle, as almost every job will require them in some way. Over the past few years, we have heard about the online parts ordering system required for DRPs on some of the insurance programs. Well, parts should not be an issue for the following reasons (which are all directed at the facility owners):

1. Most of the OEMs have position statements against using aftermarket or used parts. Being forced to use aftermarket and used parts - even though the OEM says no - is solely your fault. In many cases, the repairs may be classified as inferior or unsafe due to your choice of parts usage.

2. Being required to order parts from an online system is your own choice, not someone else’s. Nobody is forcing you to do anything except you. You decided to be part of a program and you agreed to those terms.

3. Employing used structural non-bolted components is not only stupid, it is unethical and, in some cases, potentially criminal (negligence).

Nuts and bolts, tips and tricks from our resident industry experts.

By lArry MontAnEz iii, cdA & JEFF lAngE, PE

Labor Rates If you are not happy with what you are getting paid, then change it. One of the biggest misconceptions in the industry is that insurance companies pay repair facilities and have a say in how vehicles get repaired. Insured individuals and claimants receive money from insurance companies to reimburse themselves for the amount charged by the repair facility.

The repair facility is solely liable for the repairs.

Training and equipment investments have risen dramatically over the past few years, and Labor Rates have remained stagnant in the same time period. Another mistake many repair facilities make is not knowing their true cost of business and what their hourly rate needs to be to cover their costs. We have seen in some areas a $20-$25 swing in Labor Rates between insurance companies. For example, in one area we know of, the lowest amount an insurer is attempting to pay is $44 per hour and the highest is $65 from another insurer. That is a $21 swing or 32.4-percent difference. That is a lot of money that you potentially are leaving on the table. We recommend talking to your accountant about what you need to charge to pay your overhead and make a profit. You may be surprised at the amount they tell you.

ity owners must raise the bar and hold their employees - and themselves - accountable.

Equipment During many visits to repair facilities across the country, we feel like we are in an episode of American Pickers. Many of the shops are like walking into a time warp back to the 1980s, because most of the equipment we see belongs in the Smithsonian Museum of American Collision Repair History. In a recent article, we saw some scary survey results.

Some of the results are as follows: 30 percent do not train at all.

9 percent do not have an electronic estimating system.

12 percent do not use OEM repair information.

11 percent do not own a frame rack.

47 percent do not own a three-dimensional measuring system.

45 percent do not own a resistance welder.

How can you repair vehicles with no measuring equipment, frame equipment or a resistance welder? Many repair facilities are still trying to structurally repair vehicles by anchoring the vehicle by the rocker panel mating flanges. Forget the German vehicles; look at some of the Dodge and Jeep automobiles that say in their repair information that their pinch welds are not strong enough to hold those vehicles during structural realignment, as the mating flanges will fail. Those select vehicles, like the European and German vehicles, require six- to eight-point anchoring.

Procedures Every OEM (except Hyundai and Kia) offers repair procedures. And starting with the model year 2015, Hyundai and Kia will offer repair information for their vehicles, too. The OEMs produce repair information due to the complexities of the replacement processes and substrates they are using. All of this is done to ensure safe, proper repairs. Not following the OEM repair procedures could cause the vehicle not to react in the manner in which it was designed in a subsequent collision event.

Training Training has been imperative for the past eight years, and each year the importance increases. We are in an era of the most technologically advanced vehicles, requiring the most advanced materials and equipment we have ever seen; all the while, insurance companies are trying to force unrealistic repair and cycle times to keep rental costs down. Many repair facilities do not want to waste money on training their employees, and technicians don’t want to train because no one will pay them.

Both entities complain they don’t have the time to train, and insurers will not pay for the procedures anyway, so why bother? This is the major reason we are seeing a rise in improper repairs and post-repair total losses. A certain amount of training should be required to simply apply for a job. We suggest that I-CAR create a package deal on some of their online classes that techs must take prior to applying for a job.

Facility owners should then enforce a basic amount of training to work in the industry. Facil-

February 2015

35

Ignoring OEM procedures could cause a shop owner and/or technician to be held liable for any injuries from a collision event. If an insurer refuses to pay for a procedure or follow an OEM position, then you as the shop owner must take action to ensure those OEM requirements are followed. You can never say, “They didn’t pay, so I didn’t do it.” Remember that insurance companies never have a say in the repair process. Do you have a say in how much coverage is offered, or how much premium is charged?

We implore you as industry owners, technicians and leaders to take control of what you actually have control over: Your business and how it operates. Please, never lose sight of the main reason you are in the collision repair business - to ensure the consumer/vehicle owner and any occupants who are in a vehicle that it was repaired in a safe and proper manner to make sure it will react the way it was designed to in a subsequent collision event.

We hope this article has helped the industry to better understand what went wrong, who is at fault and who can change it.

Feel free to contact us if you have any questions. H&D

Larry Montanez III, CDA is co-owner of P&L Consultants with Peter Pratti, Jr. P&L Consultants works with collision repair shops on estimating, production and proper repair procedures. P&L conducts repair workshops on MIG & resistance welding, measuring for estimating and advanced estimating skills. P&L also conducts investigations for insurers and repair shops for improper repairs, collision repairability and estimating issues. P&L can be reached by contacting Larry at (718) 8914018 (office), (917) 860-3588 (cell), (718) 646-2733 (fax) or via email at larrygoju@aol.com. The P&L website is www.PnLEstimology.com.

Jeff Lange, PE is president of Lange Technical Services, Ltd. of Deer Park, NY www.LangeTech. net. Jeff is a Licensed New York State Professional Engineer who specializes in investigating vehicle and component failures. Lange Technical Services, Ltd. is an investigative engineering firm performing forensic vehicle examinations and analysis for accident reconstruction, products liability and insurance issues. Jeff can be reached at (631) 667-6128 or by email at Jeff.Lange@LangeTech.net.

Executive Director’s Thoughts

Larry and Jeff have an excellent call-to-action plan in this article. As an executive director, I get a lot of calls from those shops participating and believing in the proper procedures, practices and equipment to return the vehicle to their customer safely. The growing chasm between shop philosophies is startling and increasing at an alarming rate. Soon, it will be blown wide open.

- Jordan Hendler

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February 2015

Conquest your Mitsubishi parts needs!

Mitsubishi now offers Genuine OEM parts through our new “Opt-OE” parts program at discounted prices. See Mitsubishi’s Ultra-Conquest parts and prices in the Optional OEM Suppliers category of popular collision estimating systems.

Ultra-Conquest Collision Parts Program Highlights: • Discounted prices on quality new and unblemished OEM parts • Automated price and part selection in collision estimating systems • High parts availability • Delivery to most major U.S. cities within 24 hours • Available through all participating Northeastern area Mitsubishi dealers • Includes the majority of key collision components for select popular models • We can meet or beat aftermarket prices!

To find out more about Ultra-Conquest pricing contact your local Mitsubishi dealer.

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10% off on all parts orders when you mention this ad.

February 2015

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February 2015

COVER

A real-world look at the financial health of the industry.

By JoEl gAuStEn

STORY

FILLING IN THE BLANK: INSIDE WMABA’S LABOR RATE SURVEY - PART 2* last month, Hammer & Dolly revealed the first part of the results of wMABA’s latest labor rate Survey. this month, we continue the discussion by presenting the rest of this extensive undertaking. As evident in the following pages, the industry faces a difficult road ahead in 2015.

“The majority of surveyed repairers take issue with insurers’ interference of repair methods, the overall process and the systematic reduction of reimbursement rates.”

*This article is for informational purposes only and should not be considered legal or business advice.

February 2015

39

RESPONDENTS SHARE THEIR VIEWS ON STANDARD PROCEDURES “tint” the color

DO YOU BELIEVE THIS IS A REQUIRED OPERATION?

DO YOU CURRENTLY PERFORM THIS OPERATION?

90.16%

87.70%

93.02%

90.70%

“Materials” to tint the color

“color, sand and buff” and/or denib surface blemishes

90.63%

94.53%

“Materials” needed to denib or buff a vehicle

91.60%

85.71%

to remove tape or painted stripes before refinishing

94.62%

91.54%

Feather, fill, block and prime on repaired panels

92.74%

87.90%

Feather, fill, block and prime on welded panels

88.03%

85.47%

94.66%

87.79%

“Mark-up” or “admin” on sublet (towing, upholstery, mechanical, pdr, etc.)

disable and enable “interlock” devices to move vehicles

89.72%

85.98%

“clips and fasteners” needed in the repair process

92.42%

93.18%

“Bagging” vehicle to “prime” and for “final refinish”

93.02%

90.70%

“Bag” opening to “prime” and for “final refinish”

92.56%

87.60%

“Bonding materials” in the repair process

90.00%

93.08%

“undercoating,” installation and removal

92.06%

92.86%

“Structural foam,” installation and/or removal

92.91%

92.13%

“check and test seat belts” being used in the accident

88.39%

84.82%

“Pressure test” cooling systems after front-end damage

89.91%

81.65%

“Prep raw plastic” when recommend by paint supplier

92.37%

94.66%

“Set up and pull” to access repairs

93.89%

88.55%

“weld thru primer” and/or “cavity wax” when needed

93.94%

93.18%

replacement of information labels, parts and labor

92.37%

93.13%

removal and replacement of protective coatings

92.50%

85.00%

reset memory functions (e.g., radio codes, sensors, etc.)

91.06%

88.62%

“Jig” rental when recommended by vehicle manufacturer

88.06%

56.72%

repairing “weld burn, including grinding and prepping”

90.60%

88.89%

When reviewing these Survey results, it is apparent that the vast majority of respondents have come to the same conclusion when it comes to required operations performed on the shop floor. As shown in the table to the left, there is not a single operation that falls below 88 percent.

“The results of the survey were significantly conclusive,” explains WMABA Executive Director Jordan Hendler. “Nearly all operations received a more than 90 percent necessity response, and a similarly significant percentage of respondents identified that they currently perform these necessary operations. What this demonstrates is that the ‘You are the only one’ defense that some carriers would like the market to believe may not be so accurate.”

Elsewhere in the results, it is clear that the insurance industry continues to have considerable control over the collision repair process. When looking at the results in the blue box on the opposite page, it is impossible to ignore just how strong this outside party’s influence has become.

“These results speak for themselves,” Hendler says. “The majority of surveyed repairers take issue with insurers’ interference of repair methods, the overall process and the systematic reduction of reimbursement rates. There are issues with parts, whether it is a byproduct of the parts themselves, or the manner in which insurers require – or imply – the measurement of the repairer utilizing them. The straightforwardness of many of the results here shows that our industry has overwhelming opinions on the issues presented, but it’s important to remember that this doesn’t address the possible solutions. This Survey is focused on the current conditions. In today’s marketplace, it is becoming nearly impossible to believe that there is a wide enough capacity to reinvest in training, tooling and equipment to fix the consumer’s vehicles properly.”

Interestingly, 98 percent of respondents noted that inadequate or poorly written estimates by insurance company representatives delay the repair process and cost the shop time and money while they rectify mistakes. This leads to an intriguing question: Why should shops incur costs if these were not their poorly written estimates to begin with? What should the insurer’s responsibility be in these instances? In Hendler’s mind, the most obvious answer to the problem of poorly written insurance estimates is to not accept them. If that turns out not to be a viable solution to actually fix the problem, the “glass half full” approach would be to better educate the carriers.

“Take the time to show the adjuster what they missed, how to estimate it properly and how to do it more completely,” she advises. “It must be done in a way that is positive and helpful, rather than combative. Give them the tips you know, and show continued on page 43

HOW DO OUR SURVEY PARTICIPANTS FEEL ABOUT INSURER/SHOP RELATIONS?" do you believe insurers rate you on the use of alternative parts to oEM, such as used or aftermarket?

do you feel many insurers try to control or insert themselves into the repair process, including selection of parts and repair methods used?

do you have an insurer who requires you to order parts from a particular vendor or through a particular online procurement system?

do you believe insurer reimbursement rates are fair to support adequate profit for continuing education, certifications and new equipment?

would [or does] ordering parts or materials through a required third-party bidding system increase your cycle time and customer dissatisfaction?

have you been told “you are the only one” who charges for what you feel is a legitimate, reasonable and necessary operation?

do appraiser(s) tell you “we can’t pay for that because it is against insurance company policy,” even though you knew it was a fair, reasonable and necessary item?

YES

NO

89.84%

10.16%

96.09%

3.91%

62.50%

37.50%

9.68%

90.32%

71.07%

28.93%

86.51%

13.49%

96.06%

3.94%

do you feel that after an insurer is notified, that two business days is an adequate time frame for an insurer to come to your shop to inspect, appraise the damage and provide an estimate?

86.61%

13.39%

89.06%

10.94%

98.44%

1.56%

90.55%

9.45%

66.67%

33.33%

is it your experience that a good portion of insurance company representatives will intentionally write “low ball” estimates that omit obvious visible damage? do inadequate or poorly written estimates by insurance company representatives delay the repair process and cost your shop time and money while you rectify mistakes?

do you feel appraisers intentionally omit vital processes in hopes the shop will not correct and amend the mistake, giving the insurer unfair financial gain?

have you feared retribution from insurers if you charged for a job performed that you feel is fair, reasonable and necessary, but they may not approve of?

do you feel insurers are using their “power,” together with a weak economy, in an attempt to coerce shops in accepting less than a fair amount?

have you experienced an insurer(s) who has declared a vehicle a total loss when you felt the vehicle was an easy, safe repair and the vehicle owner wanted it repaired, but did so because the insurer got a high salvage value?

do you experience insurers retaining payment, but tell you that you are “holding the car hostage” when they had more than adequate time to issue payment?

do you feel many insurers’ initial estimates lack proper repair procedures necessary to fix the car to pre-accident condition?

88.19%

11.81%

72.00%

28.00%

68.50%

31.50%

91.34%

8.66%

“The stark reality is that the technology will tattle on them if they didn’t fix it right. Things long hidden will leak out as time goes on.”

SURVEY TAKERS REVIEW A NUMBER OF QUESTIONS THAT RELATE TO THEIR DAILY BUSINESS. is it your experience that blending a panel takes as long, or longer, than refinishing a new undamaged panel?

does it take more skill and materials to “blend” a panel versus refinish a full panel?

is “clean up” time necessary on most “lkq” or used parts? can you blend or melt clear coat within a panel and give a lifetime warranty?

is it necessary to pre-clean most vehicles prior to entering the shop?

given the advancements in system compatibility, should you have the freedom of choice for your estimating system provider?

YES

NO

94.49%

5.51%

90.55%

9.45%

98.44%

1.56%

8.73%

91.27%

67.72%

32.28%

99.21%

0.79%

do used structural parts (e.g., quarter panel, hinge pillar, rocker panel, radiator support and apron or frame rails) take more “trim” time than new parts? 99.21%

do you feel that modern vehicles (with boron steel, structural aluminum, multiple airbags, collision avoidance systems, laser welds, etc.) are more difficult to work on than older vehicles without those similar characteristics?

96.85%

do you feel colors on newer vehicles are more difficult to match than those 5-10 years older?

77.78%

do rental car companies unnecessarily contact you about the status of vehicle repairs, requesting numerous status reports and completion dates?

73.23% would you prefer an itemized calculator for materials based on a computer software program (e.g., Paintex, PMc logic, etc.) versus compensation based on current random multipliers using an hourly rate? have you been able to provide across-the-board increases in the pay and benefits of your employees in the past five (5) years?

February 2015

0.79%

3.15% 22.22% 26.77%

73.39%

26.61%

24.80%

75.20%

41

WHICH BENEFITS DO RESPONDING BUSINESS OWNERS PAY FOR? Health Insurance Dental Insurance Vision Insurance Long-term Disability Life Insurance Paid sick leave (after a set period) Paid vacation (after a set period) Personal leave (after a set period) 401K or retirement program Performance Bonus Yearly cost of living increase(s)

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February 2015

Yes, fully paid 11.90% 6.40% 7.20% 2.42% 15.32% 40.32% 78.57% 30.65% 18.40% 34.13% 2.42%

Yes, partially paid 61.11% 40.80% 35.20% 18.55% 16.94% 22.58% 15.08% 20.97% 28.80% 15.08% 5.65%

No 26.98% 52.80% 57.60% 79.03% 67.74% 37.10% 6.35% 48.39% 52.80% 50.79% 91.94%

them more about the P-Pages. It can be an opportunity to improve the relationship and the efficiency of both parties.”

Obviously, the data revealed in this section has a tremendous impact on the benefits that auto body business owners are able to provide to their employees, as evident in the results displayed in the table on the opposite page.

“Many other industries have experienced the same issue, with the rising costs of healthcare being a major factor,” offers Hendler.

“However, the stagnancy of the rates in the marketplace and the reduction of reimbursement lends to the slow degradation that we’re seeing over time.”

Hendler adds that if we’re going to talk about fair compensation, perhaps the concept of joining a “Professionals” association - like nearly 100 percent of doctors and lawyers deserves consideration by more of our industry. If there was a way to differentiate those who subscribe to the ethical business practices (similar to the WMABA membership code), then it may lend to improvement in the overall customer experience and vehicle safety.

“You can all send me your mail on this, and tell me what you think,” she suggests.

“Those repairers who are future-oriented and committed to education, safety and quality are like a ‘Professional’ shop that attracts more quality people. Those who are trying to ‘make it up in volume’ aren’t going to be successful in the long term with the advancements in vehicle technology. The stark reality is that the technology will tattle on them if they didn’t fix it right. Things long hidden will leak out as time goes on. Our industry is going to have a rude awakening.”

Already a bumpy road, the current WMABA Survey concludes with a somewhat lukewarm summary of the current state of the industry. In answer to the question, “How would you describe the general economic state of the collision repair industry on a scale?” 88 percent of respondents felt that the industry economic state was “Average” or “Below,” leaving only seven percent at “Pretty Good” and five percent at “Very Strong.” Fiftyeight percent believe that the industry is “Poor” or “Depressed.” If you wanted to have a very small glimpse of how your trade is doing, this is it.

“It seems like just a simple question, but it does speak volumes as to the current state and future for the business owners and technicians,” Hendler says. “How can we attract good people to a repair industry that believes it is in disrepair?” H&D

WHAT ARE YOUR THOUGHTS ON THE SURVEY RESULTS? DO THEY REPRESENT WHAT’S GOING ON AT YOUR BUSINESS?

Let us know what you think. Contact WMABA Executive Director Jordan Hendler at (804) 789-9649 / jordanhendler@ wmaba.com and/or Hammer & Dolly Editor Joel Gausten at (973) 600-9288/tgpjoel@verizon.net.

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An auto celebrity hits the nation’s leading regional show.

INDUSTRY

SPOTLIGHT Ryan Friedlinghaus to Appear at NORTHEAST® 2015

With the Alliance of Automotive Service Providers of New Jersey (AASP/NJ)’s flagship event, the NORTHEAST 2015 Automotive Services Show, just a month away, the industry is abuzz with excitement. The association is pleased to announce that Platinum Sponsor BASF will be bringing Ryan Friedlinghaus, CEO of West Coast Customs, Inc., as a celebrity guest to the show.

BASF is a repeat sponsor of NORTHEAST, the largest regional event of its kind in the country.

“We’ve had a long history with the show and have been involved with it since the very beginning,” says BASF Marketing Services Manager Tina Nelles. “It gives us the opportunity to interact with our customers, listen for their feedback and find new ways to meet the important needs of today’s collision repair facilities.”

“The celebrity guests are always very popular,” says AASP/NJ President Jeff McDowell. “They’re a huge draw for a lot of attendees. We’re very excited to welcome Ryan to our show; he understands what it’s like to be part of this industry and people can’t wait to meet him.”

Friedlinghaus founded West Coast Customs in 1993 on just hard work and a $5,000 loan from his grandfather. He grew the business from a one-stall location to a global leader. Ryan is well known in the industry for his unique creativity, exceptional work and attention to detail. In the past, his talents have been featured on networks such as MTV, TLC, Discovery HD and Velocity. His current show, West Coast Customs, airs Sunday nights at 10pm EST on Fox Sports 2.

Friedlinghaus will appear at the show on Saturday, March 21.

At the event, he will be promoting BASF’s R-M brand paint, the official paint of West Coast Customs.

“I’m excited to be a part of the NORTHEAST show on behalf of BASF and the R-M® brand,” says Friedlinghaus. “I understand the daily struggles of owning, running and growing an automotive business. For me, this show is unique, in that I get to meet with repair professionals that share my same passion and hear their stories.”

“The BASF booth at NORTHEAST is where the excitement takes place,” adds Nelles. “In addition to Ryan, we will be

highlighting our R-M brand and we will have staff to highlight how BASF tools and services can make shops more profitable and efficient.”

NORTHEAST 2015 will be held on March 20-22. As usual, it will be held at the Meadowlands Exposition Center in Secaucus – just five miles from Manhattan and surrounded by over 40 restaurants, movie theaters and retail shops. For those traveling from far away (as the show has welcomed guests in the past from around the world), there is no shortage of entertainment inside or outside of the show. This is not an event to miss. Online free pre-registration for NORTHEAST is currently open at www.aaspnjnortheast.com.

H&D

For more information on NORTHEAST, visit www.aaspnjnortheast.com, the NORTHEAST Automotive Services Show on Facebook, the NORTHEAST Automotive Services Show YouTube page (www.youtube.com/user/AASPNJNORTHEAST) or on Twitter @ AASPNJNORTHEAST / #NORTHEAST2015. For more information on AASP/NJ, please visit www.aaspnj.org.

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February 2015

PRESIDENT’S

MESSAGE

don Beaver

(443) 539-4200 ext. 17061 Dbeaver@antwerpenauto.com

WHAT YOU DON’T KNOW

On a recent Friday afternoon, I realized that you don’t know what you don’t know. I consider myself to be pretty sharp when it comes to collision repair technology, but boy, did I get caught off guard.

It was 3pm, and we had several vehicles that were promised for delivery.

The first was a 2014 Altima that had all the bells and whistles. We replaced the decklid and back-up camera. It was a black car, so we were able to paint the decklid loose and reassemble it quickly.

We started the car...and now we had a dash full of warning lamps. After a little research, we discovered that the backup camera had to be calibrated. This was no real biggie since we were located inside a Nissan dealer. Or so I thought.

Because this is new technology, our service department had never done one before. What we hoped would be a quick 10-minute fix turned into three days because the procedure required a perfectly level floor, correct lighting and targets to be placed within millimeters of tolerance.

It was a learning experience, but we finally got it done at the expense of a broken promise and missed delivery date.

IN MEMORIAM: JEFFREY L. GIBSON

On January 8, the WMABA community lost a gifted technician and good friend with the passing of Jeffrey L. Gibson at the age of 50.

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February 2015

Now it’s 4:30pm, and we have a 2015 Honda with a new bumper cover, a repaired fender and a replaced headlight. Guess what? The vehicle didn’t recognize the new headlight and set a warning light. The headlight had to be programmed to the vehicle. We’re not even talking about an integrated headlight - just a plain-Jane lamp. All of this got me to wake up and realize that we need to get our stuff together here.

As more and more technology comes our way, we struggle to keep up. This is just an everyday part of our business that will continue to grow. If you are not training your techs and doing the necessary research on required repairs, you’re going to find yourself in more of a pickle than a broken promise or missed delivery date. With vehicles equipped with sonar, blindspot technology, lane-keeping capabilities, etc., you better get on your “A” game. If you’re not sure about it, find out.

If you’re still not sure, don’t do anything to the car until you are. In the coming years, the shops that train their techs and keep up with the technology will be the ones that are going to succeed. Don’t wait until a Friday afternoon to find out what you don’t know you don’t know. H&D

“Jeff was an exceptional technician,” says Laura Gay, owner of Maryland-based Fort Washington Auto Body and Sullivan’s Auto Body, who worked with Gibson from 2006 to 2013. “Every car he repaired, no matter the size of the repair or the money he made on it, was done 110 percent.”

Gay, who knew Gibson for more than two decades, remembers her friend and past employee as “the life of the party,” whose generosity and kindness shone through his hard exterior.

“He had a heart the size of Kansas and would do anything for anyone at any time,” she says. “He

could be stubborn as a mule at times, but he would give his last dollar to you if he knew you needed it.

He had a beautiful Harley that he was very proud of, and he loved his faithful dog, Blue.”

Gibson is survived by his girlfriend, Cynthia, and his mother, brother and sister. His father, Whitey, also a very good body technician, preceded him in death. WMABA and Hammer & Dolly offer Jeffrey’s family and friends our deepest condolences. H&D

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February 2015

VENDOR

CORNER

THE ALUMINUM REVOLUTION

aluminum dent repair station at minimum and possibly an inverter pulse MIG welder as well.

While searching for a reliable vendor, it is important to keep in mind that there are plenty of reputable distributors, but also an equal number of wannabes – especially online. Anyone worth their salt in the aluminum business can arrange an in-shop demo and supply a reliable, competitively priced product. Also, they can dedicate the time for necessary training and guidance after the sale. Beware of companies attempting to repurpose or adapt old equipment to aluminum repair that was originally designed for other jobs. There are also legitimate businesses with great pricing, but no local support. Caution should also be taken with local suppliers who deliver equipment without instructional knowledge or technical backup.

So, when it comes to joining the revolution and doing so on your own terms, you can

“Aluminum is coming! Aluminum is coming!”

We’ve all heard the rallying cry of the Aluminum Revolution for years. Given Ford’s recent announcement of an all-aluminum body for the 2015 F-150 (the number-one selling vehicle worldwide), it appears to have finally arrived. The reality is that it began in foreign cars and has progressed in the forms of hoods and decklids. Car manufacturers have been making components out of aluminum for years without much notice from repair shops; a habit of replacing rather than repairing had proven more cost-effective. However, the latest edition of Ford’s F-150 demands our consideration for an investment in the latest aluminum repair technologies.

The decision to update your systems and equipment may give you pause, especially if you are under the impression that serious players must show up to the table with at least $35,000 in hand. While not an unreasonable estimate for a major overhaul, many shop owners will be able to upgrade for far less.

Whether you’re ready to jump in headfirst or about to bail completely, if you’re at all curious about the F-150 program, here is the equipment you will need to be fully up to spec*:

A view from the supplier side of the industry.

By PAt o’nEill

either place your bet on suppliers who are able to support you through the process or companies ready to take your cash with a bluff. The choice is yours. H&D

Pat O’Neill, owner and operator of Chesapeake Automotive Equipment, began his 40-year career in the industry as an ASE-certified mechanic.

Chesapeake Automotive Equipment handles the product needs for collision and automotive repair shops; the company provides customers with decades of experience through personalized training, service and sales. Chesapeake Automotive Equipment distinguishes itself by ensuring an up-to-date experience on the best technologies in the collision repair industry, including the Pro Spot Family of welders and aluminum repair equipment. Pat can be contacted at (800) 6049653 or pjmoneill@verizon.net.

Toolbox with tools specifically put together

by Ford for the truck.

Rivet gun capable of installing the rivets the truck uses. (Most of the rivets do not go into a pre-drilled hole in the panels. They are pressed in and clinch the metal together without perforating the back panel.)

Inverter pulse MIG welder for aluminum.

(No, your spool gun won’t work.)

Aluminum dent repair station.

Wet-mix vacuum system. (Collects dust at the source and mixes it with water, eliminating cross contamination and preventing fires. [Aluminum dust is flammable.])

*Note: Some of these pieces can only be purchased from particular manufacturers.

For those of you without the space, resources or diehard certainty to dedicate a full stall but who are still looking to get in the game,I would suggest investing in an

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ADVERTISERS’ INDEX Alexander & Cleaver............................29 Alexandria Toyota ................................36 All Foreign Used Auto..........................7

Audi Group ..........................................21

Axalta Coating Systems ......................OBC

BMW Group ........................................26-27 BMW of Bel Air ....................................IBC BMW of Fairfax....................................3

BMW of Rockville ................................IBC BMW of Towson ..................................IBC CAPA ..................................................8

Chesapeake Automotive Equipment ..50

Empire Auto Parts................................50 Ford Group ..........................................13 Future Cure ........................................43

GM Parts Group ..................................19 Hendrick Honda ..................................48

Honda Group ......................................23 Hyundai Group ....................................31

Koons Ford ..........................................29 Malloy Auto Group ..............................4

Mazda Group ......................................33 MINI Group ..........................................9

MINI of Baltimore County ....................IBC Mitsubishi Group..................................37 Mopar Group ........................................17

Nissan Group ......................................22

NORTHEAST® 2015 ..........................45 NuCar ..................................................47

O’Donnell Honda ................................36

P&L Consultants ..................................35 Packer Norris Parts ............................11

Porsche Group ....................................30

PPG ....................................................IFC Russel Toyota ......................................48 Safety Regulations ..............................7

Steck Manufacturing............................50 Subaru Group ......................................38

Toyota Group ......................................25 VW Group............................................16

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