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Warning on Aluminum Repair: Don’t Believe the Hype! - page 36
March 2014 Volume 8, No. 3 $5.95 www.wmaba.com
Inside this issue: SCRS Moves Forward I-CAR Fills the Gaps www.grecopublishing.com
The End is NOT Near
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March 2014
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Visit us at NORTHEAST速 Booth #427
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38 COVER STORY
CONTENTS
MARCH
RELIEF THROUGH REGULATION: INSIDE WMABA’S PARTS BILLS The association turns to the Legislature to help shops and consumers alike.
2014
NATIONAL NEWS 16 NORTHEAST® 2014 to Offer Chip Foose Appearance, Corvette Show
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Parts Procurement Matrix Unveiled at CIC
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SCRS Outlines Focus for 2014
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Industry Groups Respond to Standards Dilemma
DEPARTMENTS
BY JOEL GAUSTEN
8
Calendar of Events
10
Editor’s Message JOEL GAUSTEN
LEGAL PERSPECTIVE 28 NFIB Report Details Small Business Concerns A look at the top 10 worries discovered by the National Federation of Independent Businesses’ recent business owner survey.
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DON BEAVER 14
NewsFlash
14
Headliners
46
Advertisers Index
BY JAMES A. CLEAVER
FEATURE 32 A REAL CLAIM STORY FROM AN
President’s Message
EXECUTIVE DIRECTOR - PART 2
More tales from our executive director’s battles in the claims-handling process. COVER: ©istockphoto.com/andynwt THIS PAGE, CLOCKWISE FROM TOP:
TECHNICAL FEATURE 36 Warning on Aluminum Repair:
Don't Believe the Hype! - Part 1
Think you know about aluminum repair? Here’s your wake-up call.
©istockphoto.com/ODV ©istockphoto.com/Attila445 ©istockphoto.com/studiovision ©istockphoto.com/enviromantic
BY LARRY MONTANEZ III, CDA & JEFF LANGE, PE
March 2014
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Industry training opportunities and don't-miss events.
CALENDAR OF
EVENTS
NORTHEAST® Automotive Services Show Meadowlands Exposition Center, Secau cus, NJ For more information, visit www.aaspn jnortheast.com
March 21-23, 2014
Repairer Roundtable, SCRS Open Meeti ng & Annual Election, Red Lion Hotel on the River, Portland, OR For more information, visit www.scrs.com
April 8, 2014
SCRS Industry Awards & Corporate Memb er Recognition Luncheon Red Lion Hotel on the River, Portland, OR For more information, visit www.scrs.c om
April 9, 2014
CLASS LISTINGS
March 4, 2014
WHEEL ALIGNMENT & DIAGNOSTIC ANGLES State Farm Silver Spring, Silver Spring, MD
Collision Industry Conference, Red Lion Hotel on the River, Portland, OR For more information, visit www.ciclin k.com
April 9-10, 2014
March 6, 2014
COLOR THEORY, APPLICATION, TINTING & BLENDING Automotive Collision Technologies, Randallstown, MD
March 11, 2014
STRUCTURAL STRAIGHTENING STEEL Canby Motors Collision Repair, Aberdeen, MD
March 13, 2014
RACK & PINION & PARALLELOGRAM STEERING SYSTEMS Frederick Co. Career & Tech, Frederick, MD
March 18, 2014
VEHICLE TECHNOLOGY & TRENDS 2014 Keystone Linthicum, Linthicum, MD
March 18, 2014
VEHICLE TECHNOLOGY & TRENDS 2014 Best Western Westminster, Westminster, MD
March 20, 2014
SECTIONING OF STEEL UNITIZED STRUCTURES King Volkswagen, Gaithersburg, MD
March 27, 2014
SECTIONING OF STEEL UNITIZED STRUCTURES Frederick Co. Career & Tech, Frederick, MD
April 1, 2014
REPLACEMENT OF STEEL UNITIZED STRUCTURES Hampton Inn, Salisbury, MD
April 3, 2014
INSPECTING REPAIRS FOR QUALITY CONTROL Coxton’s Gold Team Collision Center, Yorktown, VA
April 7, 2014
RACK & PINION & PARALLELOGRAM STEERING SYSTEMS First Team Toyota, Chesapeake, VA
April 8, 2014
VEHICLE TECHNOLOGY & TRENDS 2014 Southern Auto Group, Norfolk, VA
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April 8, 2014
VEHICLE TECHNOLOGY & TRENDS 2014 Coxton’s Gold Team Collision Center, Yorktown, VA
April 17, 2014
PLASTIC & COMPOSITE REPAIR Harrisonburg (Manheim) Auto Auction, Harrisonburg, VA
April 21, 2014
April 8, 2014
April 10, 2014
WHEEL ALIGNMENT & DIAGNOSTIC ANGLES Frederick Co. Career & Tech, Frederick, MD
April 10, 2014
REPLACING EXTERIOR ALUMINUM PANELS Southern Auto Group, Norfolk, VA
April 10, 2014
MEASURING Coxton’s Gold Team Collision Center, Yorktown, VA
April 14, 2014
WELDED & ADHESIVELY BONDED PANEL REPLACEMENT Coxton’s Gold Team Collision Center, Yorktown, VA
April 14, 2014
WHEEL ALIGNMENT & DIAGNOSTIC ANGLES First Team Toyota, Chesapeake, VA
April 15, 2014
SECTIONING OF STEEL UNITIZED STRUCTURES Hampton Inn, Salisbury, MD
April 15, 2014
STEERING & SUSPENSION DAMAGE ANALYSIS Southern Auto Group, Norfolk, VA
STRUCTURAL STRAIGHTENING STEEL Coxton’s Gold Team Collision Center, Yorktown, VA ELECTRONICALLY CONTROLLED STEERING & SUSPENSION SYSTEMS First Team Toyota, Chesapeake, VA
April 22, 2014
ADHESIVE BONDING Hampton Inn, Salisbury, MD
April 22, 2014
WELDED & ADHESIVELY BONDED PANEL REPLACEMENT Harrisonburg (Manheim) Auto Auction, Harrisonburg, VA
April 24, 2014
VEHICLE TECHNOLOGY & TRENDS 2014 Frederick Co. Career & Tech, Frederick, MD
April 28, 2014
STEERING & SUSPENSION DAMAGE ANALYSIS First Team Toyota, Chesapeake, VA
April 29, 2014
SQUEEZE-TYPE RESISTANCE SPOT WELDING Coxton’s Gold Team Collision Center, Yorktown, VA
April 29, 2014
PLASTIC & COMPOSITE REPAIR Hampton Inn, Salisbury, MD
www.i-car.com or (800) 422-7872 for info
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Joel Gausten
EDITOR’S
(973) 600-9288 tgpjoel@verizon.net
MESSAGE YOU ARE NEVER ALONE
As I write this message, body shops in the Northeast and Mid-Atlantic regions are experiencing some of the heaviest workloads they’ve had in years. While a winter this powerful is never a pleasant occurrence, the truth remains that bad weather equals strong business for the collision repair industry. I hope that this sudden influx of work has helped alleviate some of the stress you’ve been under lately due to the major changes happening in the industry. Of course, a busy work schedule doesn’t mean that problems like insurer-mandated parts procurement simply go away. When the snow melts and the roads return to normal, the issues you face on a daily basis will still be here – and so will Hammer & Dolly. In last month’s issue, I invited area parts suppliers and Select Service shops to reach out to me to share their experiences dealing with PartsTrader in Maryland and Virginia. My goal is to allow you to voice your thoughts and concerns about PartsTrader and similar programs in complete and guaranteed anonymity. By contacting Hammer & Dolly
and/or WMABA, you allow us to be your voice when you are reluctant to speak out because of potential repercussions. Giving you the opportunity to voice your opinion in this manner is precisely why WMABA and Hammer & Dolly exist. We welcome the privilege of being your voice when you can’t speak for yourself. Please contact me if you would like to share how insurer-mandated parts procurement is affecting your business. In my work as an editor for five industry publications, I have an opportunity to gain an inside look into industry conditions throughout the country. If there’s one thing I’ve learned in my travels, it is that you are not alone. You know when insurers tell you that you’re the only one asking for payment on a certain procedure? I assure you that there is another shop 10, 100 and even 1,000 miles away fighting the exact same fight. Feeling a little uneasy about using that non-OE part on that newer vehicle? Well, I just got off the phone with a shop four hours away from you who is facing the same dilemma. Think you’re totally alone in staying up at night worrying about State Farm’s demands regarding PartsTrader? Please. We see things beyond your four walls, we are following trends from the beginning, we know things before you do, we represent your industry when you cannot…and we are here to help. You know how to find us. Please do. H&D
©www.istockphoto.com/BanksPhotos
2014 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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STAFF
PUBLISHER MANAGING EDITOR EDITOR ART DIRECTOR OFFICE MANAGER ADVERTISING DIRECTOR
Thomas Greco tgp22@verizon.net
Alicia Figurelli tgp2@verizon.net
Joel Gausten tgpjoel@verizon.net
Lea Velocci tgp3@verizon.net
Sofia Cabrera tgp4@verizon.net
Norman Morano tgp5@verizon.net 800-991-1995 Fax 732-280-6601
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.
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PRESIDENT’S
MESSAGE
Don Beaver
(443) 539-4200 ext. 17601 Dbeaver@antwerpenauto.com
As I write this, the holidays are over and a new year is in full swing. I stop and reflect on the trials and tribulations of 2013, and one monster keeps rearing its head: Insurer-mandated parts procurement. Yes, I am jumping back in the saddle and beating this half-dead horse some more. If anyone believes that this is a good thing, I am certainly ready to listen. However, this is not the case – and it won’t stop with parts. I am amazed at how few people understand – or even know anything about – these programs. There have been rumors and grumblings for several years now that this was coming, and now it's here. State Farm’s PartsTrader is rolling out in
the Virginia and Maryland markets right now, and it will be in many of the remaining markets soon. It has been piloted around the country for almost two years at this point, and now the rollout advances. Parts procurement programs are the way of the future and are definitely more efficient than the old way of doing things. The problem occurs when an insurer requires the use of a particular program with the sole purpose of being allowed to influence prices. If you think that their influence will stop at parts, you are grossly mistaken. There are insurance companies out there right now that mandate the use of a particular rental car company. There
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are some that require towing to be done through dispatch programs. And if you think that they are not already in talks with major paint and material corporations, you’re naïve. Not only are these programs going to sever ties with any of your existing vendors that choose not to participate, but these mandates WILL AFFECT YOUR BOTTOM LINE and increase your cycle time as well. This will be just the beginning of turning control of your shop over to the insurance companies. I don’t know of any shop that can survive off of labor profits alone, and these programs are another step closer to that scenario. With all of that said, there is plenty you can do. First and foremost, you can educate yourself. Know what these programs are, what their intent is and what repercussions you face by their implementation. The second thing you can do is participate in WMABA meetings or events. And lastly, learn to say NO. In this issue, you will read about our efforts to address these issues with Senate Bill 487 and House Bill 574. Keep your eyes and ears open, and please offer your support when we call for it. It's not all doom and gloom. H&D
©www.istockphoto.com/Auris
THE END IS NOT NEAR
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NEWS
News and reports from across the nation.
FLASH
I-CAR CEO Addresses Key 2014 Initiatives at CIC
I-CAR CEO/President John Van Alstyne addressed I-CAR’s leading initiatives for 2014 and reviewed 2013 milestones during a speech at the Collision Industry Conference (CIC) meeting in Palm Springs on January 16. Van Alstyne honed in on enhancements to I-CAR’s industry-recognized Welding Training & Certification program and the Repairability Technical Support initiative in 2014. “Today, as the major provider of welding training to the collision repair industry, I-CAR estimates that at least twothirds of technicians who weld lack formal welding training,” he said. “I-CAR has beefed up its welding programs and significantly reduced pricing to encourage repairers to more broadly invest in the training that makes perhaps the biggest difference in complete, safe and quality repairs for the ultimate benefit of the consumer. To effectively navigate the vehicle technology tsunami our industry is facing, repairers today need technicians who are trained and certified with up-to-date welding skills in order to perform the complex structural repairs that are now required.” Major insurers such as State Farm and OEMs including GM have already committed to partnering with I-CAR in 2014, encouraging or requiring their networks to participate in I-CAR’s Welding Training & Certification. Van Alstyne also provided an update on the Repairability Technical Support initiative. Van Alstyne shared details on the launch of the dedicated “technical knowledge” website, upcoming plans and key milestones that have been achieved. This initiative launched in 2013 and is designed to provide technical repair knowledge, address gaps in repair procedures and enhance industry technical communication with OEMs. “I-CAR thanks the industry for its support in 2013. Through your commitment, I-CAR is well-positioned to deliver on its vision in 2014 and beyond,” explained Van Alstyne. Key 2013 accomplishments that Van Alstyne shared were the milestone $200,000 donation to the Collision Repair Education Foundation on behalf of the industry, no price increases for the third consecutive year, the introduction of Gold Class program enhancements, a $2.6 million investment in a new learning content management system (LCMS), the expansion of network partner programs and new Professional Development Program training. Van Alstyne further renewed I-CAR’s commitment to hold all pricing flat again in 2014, except the Welding reductions mentioned. He also announced that an estimated $165,000 donation will be made by I-CAR to the Collision Repair Education Foundation in 2014, representing one dollar for every class the industry took with I-CAR in 2013. H&D
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HEADLINERS The latest news and notes.
TROUBLE AT LKQ LKQ Corp. has started 2014 in the hot seat.
On January 16, Chrysler Group LLC filed a lawsuit against the alternative parts supplier in the US District Court in the Eastern District of Michigan. The auto manufacturer’s lawsuit contends that LKQ sold aftermarket parts that infringed nearly one dozen Chrysler design patents relating to the Dodge Ram pickup truck. The Chrysler suit seeks a permanent injunction against LKQ from further patent infringement, as well as an award for Chysler’s lost profits and the profits earned by the sale of the parts covered by the patents. Additionally, the car company is seeking treble damages and attorneys’ fees. “We believe that the lawsuit is without merit and will defend it vigorously,” offered LKQ in an official statement. “Moreover, the parts we sell that allegedly relate to these design patents represent an immaterial amount of our revenue. They represent less than one-tenth of one percent (0.001) of our estimated 2013 total revenue and less than one-half of onetenth of one percent (0.0005) of our estimated total revenue for all the years since the first patent was granted (2009 through 2013). We have forged mutually-beneficial business relationships with other auto manufacturers. As previously disclosed, we have had a license arrangement with Ford since 2009. The license arrangements allow us to sell aftermarket parts covered by certain patents in exchange for a license fee.” The day before Chrysler launched its suit, Prescience Point Research published a scathing 122-page report (available for download at www.presciencepoint.com/ uncategorized/lkq-corp-jan-15-2014/) that accuses LKQ of grossly inflating its revenue figures, questions the legitimacy of the company’s financial statements and encourages LKQ stockholders to sell. Although the report noted that a “Wall St. analyst view of LKQ” claimed that the company is “a preferred partner for insurance companies, small auto recyclers seeking a partner/exit strategy and repair shops,” Prescience noted that its research suggests “not many want to do business with LKQ, but rather they have to.” The report adds that LKQ will face greater competition and a further strain on their profits as insurance companies introduce “new programs such as PartsTrader that will force price compression.” According to www.bloomberg.com, LKQ slid 8.9 percent to $29.42 on the day of the report’s release. Prescience Point’s report valued LKQ’s share-price target at between $10 and $15. LKQ responded to the stock controversy in the following January 16 press statement: LKQ Corporation (Nasdaq: LKQ) noted that there was unusual trading volume yesterday in its common stock. This activity appears to relate to the issuance of a report by Prescience Point, a short seller, recommending that stockholders sell LKQ stock. We have reviewed the report and disagree with many of its statements, assumptions and conclusions. Moreover, it contains numerous inaccuracies. Importantly, Prescience Point warns readers to assume that it and/or its affiliates hold short positions in LKQ’s common stock and that they stand to realize significant gains in the event that LKQ’s stock price declines. We believe that this conflict of interest should cause the report and its conclusions to be viewed skeptically. According to company literature, Prescience Point’s sole focus is “to conduct comprehensive fundamental research and uncover companies that are engaging in fraudulent or misleading business practices.” The company states that it partners “with leading hedge funds, private investigators, accountants, lawyers and industry experts to conduct [its] research process” and takes an active role “to communicate our findings to regulators and other public constituents.” In October of 2013, LKQ-Keystone initiated a recall on an aftermarket replacement aluminum wheel because of potential defects. The recalled product (ALY63934U20N) is a seven-spoke wheel design that contains part number ALY99435U20N inside the wheel’s casting, as well as the TWC logo. The part is said to have been sold between September 1, 2010 and April 30, 2013. As of this writing, only shops and consumers in Connecticut have received the recall notice. H&D
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NATIONAL
The latest from WMABA members and supporters.
NEWS NORTHEAST® 2014 to Offer Chip Foose Appearance, Corvette Show For nearly 40 years, the NORTHEAST Automotive Services Show has provided Northeast and Mid-Atlantic automotive industry professionals a great opportunity to experience the education and excitement of a national trade show without having to catch a plane. Celebrating its 37th year in 2014, NORTHEAST (sponsored by the Alliance of Automotive Service Providers of New Jersey and held March 21-23 at the Meadowlands Exposition Center in Secaucus, NJ) is already shaping up to be the most exciting chapter in the Show’s celebrated history. Thanks to NORTHEAST Platinum Show Sponsor BASF, this year’s Show will feature a very special guest appearance by TV star and auto industry legend Chip Foose (Overhaulin’), who will be available to sign autographs from 10am to 2pm on Saturday, March 22*. While on the Show floor, Foose fans can check out the first annual NORTHEAST / Natural Glass Corvette Association (NGCA) Car Show, which will consist of 15-20 classic cars from several decades.
TV superstar Chip Foose (appearing on Saturday, March 22 courtesy of Platinum Show Sponsor BASF) is one of many reasons why NORTHEAST 2014 is a can’t-miss event. *Photos and autographs will end promptly at 2pm. Sorry, no exceptions.
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“Our members own a wide variety of Corvettes representing each generation,” offers NGCA President Richie Caruso. “These include big blocks, small blocks, rare Malcolm Konner Editions, Z06s, Grand Sports (C4 and C6), and ZR1s. A number of our cars have appeared in or been featured in various Corvette magazines over the years, and we look forward to presenting some of them at the NORTHEAST show.” Another exciting new event at NORTHEAST is the first-ever AASP/NJ Virtual Spray Paint Tournament. Presented by VRSim, a company that creates virtual reality training tools that help teach industrial trades and manufacturing skills, the tournament will give attendees a chance to show off their spray painting skills through a weekend-long tournament that will be topped off with the high scorer presented with a Grand Prize HDTV. AASP/NJ Collision Chairman Dave Laganella is thrilled to see the Tournament join the NORTHEAST festivities. “You really have to see [the virtual reality system] to believe it,” he says. “It’s as if you were in the spray booth. It immediately makes you want to put the helmet on and try it out. Not only is it one of the coolest things I’ve seen, but also it encourages workers who may not have any experience painting to try it without having to worry about any safety risks. Who knows…you may find your next painter during this tournament. The guys in my shop can’t wait to get a shot at it.” NORTHEAST attendees interested in the art of design can watch master painter Javier Soto perform custom demos throughout the weekend. Soto’s skill set includes airbrushing, automotive refinishing, custom painting, pin-striping and more. He also teaches airbrush workshops for airbrush getaways organized by Airbrush Action Magazine, where much of his work has been published. In addition to these special events on the Show floor, NORTHEAST 2014 will offer an impressive education program comprised of special seminars and presentations to address the industry’s greatest issues. Leading the pack is a panel discussion/forum dealing with the collision industry’s number one topic: Insurermandated parts procurement. The March 21 “PartsTrader Comes to the Northeast: NOW WHAT?” panel will include industry veterans who have dealt with the program, association representatives who are finding ways to combat insurer mandates and an open forum for attendees to present their views and ask questions. “Ford’s National Body Shop Program and Related Information,” presented by Melissa Lester (collision marketing manager, Ford Customer Service Division) will be held on Friday and Saturday, while the automaker
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will host special demos throughout the weekend on the all-new 2015 Ford F-150, an impressive vehicle entirely comprised of high-strength, military-grade aluminum alloy, which will be featured at NORTHEAST 2014. Hammer & Dolly Technical Writer Larry Montanez III will present “Best Practices for Welding & Estimating,” an eye-opening discussion on proper techniques and practices in MIG, MAG welding & brazing. Real-life examples of both proper and improper welds, as well as tips and tricks to ensure a quality repair every time, will be explored. Additionally, Montanez will host a Saturday morning “Calculating Frame/Uni-body Set Up Measurement and Realignment” seminar in conjunction with Metropolitan Car-O-Liner. Other NORTHEAST presentations include “Unleashing Your Secret Power” (presented by John Niechwiadowicz of Performance Consulting Services), “Tactically Lean: Connecting the Dots Between High-Minded Lean Concepts & RealWorld Results” (presented by Sherwin-Williams), “The ‘Gauges’ of Your Business” (presented by Management Success), “Business Continuation Planning: Inside Buying or Selling a Business” (presented by Mitchell H. Portnoi, Esq. & Douglas J. Sherman, Esq.), “The Traditional Buying Process Turns Digital: Are You Keeping Up With the Changes?” (presented by NetDriven) and “Painting With Nitrogen: Inside the Collision Industry’s Best-Kept Secret” (presented by Tom Beck of Future Cure). NORTHEAST 2014 will also offer two tuition-based I-CAR Classes: “AluminumIntensive Vehicle Repairs” (ALI01) and “Vehicle Technology and Trends 2014” (NEW14), along with several demos throughout the weekend. For more information on NORTHEAST 2014, 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 / #NORTHEAST2014. Free online registration is available at www.aaspnjnortheast.com/registration.shtml. H&D
Executive Director’s Thoughts NORTHEAST is the closest trade show to the WMABA area that every year provides high-quality education and vendor networking opportunities. If you can make the short trek to the Meadowlands Exposition Center, it will be an invaluable use of your time! - Jordan Hendler
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Over 300 booths and 150 vendors across 55,000 square feet of floor space! FRIDAY, MARCH 21 5PM-10PM SATURDAY, MARCH 22 10AM-5PM SUNDAY, MARCH 23 10AM-3PM
NORTHEAST® 2014 features industry-leading exhibitors, top-notch training and informational updates for the repair community, all centrally located at the Meadowlands Exposition Center in Secaucus, NJ 6,000 FREE PARKING spaces available!
FREE
Save time - pre-register online at www.aaspnjnortheast.com
MEET INDUSTRY ICON CHIP FOOSE STAR OF OVERHAULIN’ at NORTHEAST 2014 courtesy of BASF at Booth #227 Sat., March 22 10am - 2pm* * Autographs and photos with Chip Foose will end promptly at 2pm. Sorry, no exceptions. ** Schedule subject to change.
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The latest from WMABA members and supporters.
NATIONAL
NEWS Parts Procurement Matrix Unveiled at CIC
During the January Collision Industry Conference in Palm Springs, CA, the CIC Parts & Materials Committee announced the conclusion of its project to create a fluid “Electronic Parts Procurement Matrix” for industry repairers to use to gain knowledge of the services and practices of today’s parts procurement providers. Originally announced at the CIC meeting in Boston in July 2013, the Matrix is the result of a 30-question survey conducted between October 2013 and December 2013. The following 10 companies responded and participated in the survey: APU Solutions (Parts Network), Car-Part.com (Car-Part PRO w/ EMS), CCC Parts (CCC ONE), NuGen IT (Parts Online), OE Connection (CollisionLink), Overall Parts Solutions (OPS TRAX), PartsCheck Live, PartsTrader, RealParts.com and uParts. These providers were asked to provide specific information on
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their individual companies, including part pricing, part availability, returns and EMS/BMS compliance. The initial survey was conducted using an online tool between October 23 - 30, 2013. Although they were invited to participate, Hyperquest and InfoMedia did not respond. Following a review of the original responses, and an opportunity for each responding company to review and comment on their original replies, a supplemental survey was developed to clarify the wording in certain questions and identify the name of the product for which the survey responses apply. This second survey was conducted online between Dec. 20 - 23, 2013. While all 10 original respondents were asked to take part, responses were not received from RealParts.com or Overall Parts Solutions. Some highlights of the Electronic Parts Procurement Matrix:
• All participating companies responded “Yes” to the question, “Does your product enable the collision repair shop to make the final decision regarding which parts to buy from what suppliers?” • All participating companies responded “Yes” to the question, “Does your product enable the collision repair shop to send purchase orders to suppliers?” • All participating companies but NuGen IT, Car-Part.com and RealParts.com responded “Yes” to the question, “Can your product manage returns/credits?” • All companies with the exception of CarPart.com, NuGen IT, PartsCheckLive and RealParts.com answered “Yes” to the question, “Can your product capture reasons for part returns?” • CCC Parts, PartsCheckLive, PartsTrader, RealParts.com and uParts stated that they share supplier ratings with collision repair shops, while NuGen IT, OEConnection, Overall Parts Solutions, Car-Part.com and APU Solutions stated they they did not. • All participating parts procurement vendors can retrieve (import) information from Audatex, CCC and Mitchell. • Of these parts procurement products, only APU Solutions, Car-Part.com, CCC Parts, PartsTrader and RealParts.com can return (export) information from Audatex, CCC and Mitchell. • Car-Part.com, OEConnection, PartsCheckLive and RealParts.com are compliant with CIECA EMS, while APU Solutions, CCC Parts, NuGen IT, PartsTrader, Overall Parts Solutions and uParts stated they are compliant with both CEICA EMS and BMS.
CIC organizers were slated to post a copy of the Electronic Parts Procurement Matrix on the CIC website (www.ciclink.com) at press time. The mission of the CIC Parts & Materials Committee is “to work towards the establishment of quality and service standards for OEM, recycled/recyclable, reconditioned and aftermarket parts to facilitate fair, equitable, timely and quality motor vehicle repairs.” More information on CIC is available at www.ciclink.com. H&D
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The latest from WMABA members and supporters.
NATIONAL
NEWS SCRS Outlines Focus for 2014
After concluding last year on a high note with the overwhelming success of the 2013 SEMA Show, the WMABA-affiliated Society of Collision Repair Specialists (SCRS) has hit the ground running in 2014 with a robust array of initiatives designed to respond to the needs and concerns of its growing national membership. As discussed during the SCRS Open Membership Meeting in Palm Springs on January 15, the association plans to continue its longstanding work to address pressing industry matters including insurer mandates (both with parts procurement and other areas of the repair process), negative trends in insurer reimbursement and promotion of the development and accessibility of OE repair standards. In 2011, SCRS was joined by the Alliance of Automotive Service Providers (AASP), the Assured Performance Network (APN) and the Automotive Service Association (ASA) in asking I-CAR to assist the industry in addressing gaps in the repair information made available by automakers. SCRS Executive Director Aaron Schulenburg tells Hammer & Dolly that the Society is pleased with the recent progress made by I-CAR in addressing the absence of certain repair procedures for the benefit of collision repairers. “We are very encouraged when looking at some of the beta programs that I-CAR has developed to address gaps in OE repair information, in response to our request back in 2011,” he says. “They have put together a team that is solely dedicated to working on these issues, and from what we have seen of the model and the work product, they have been doing a really good job in addressing the needs our members have in this area.” Schulenburg notes that SCRS is especially interested in ICAR’s ongoing development of what is best described as “a DEGstyle inquiry process”* that repairers can utilize when they discover the absence of a published procedure, as well as a database of easily accessible past inquiries, procedural documentation and OEM repair information and bulletins. “While we can often be critical of things that don’t meet the mark for the industry as we advocate our membership’s perspective, it is important for us to equally recognize the things that do,” he says. “We believe this program is really heading down the right path, and we are proud to support the effort to ensure it continues to produce meaningful results and resources for our members.” The need for complete and accurate repair information is at a critical peak in the industry as the aluminum-bodied 2015 Ford F-150 and other advanced automobiles start hitting the marketplace. While technologies like the F-150 have the potential to provide new value to consumers through improved gas mileage and other perks, Schulenburg notes that without active engagement with the OEMs, these advancements could present obstacles for repair shops if there wasn’t access to the information needed to return these high-tech vehicles to pre-accident condition. Fortunately, the relationship between the repair industry and the automakers has been growing through
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Toby Chess (pictured) and Kye Yeung delivered a special technical presentation during SCRS' January 15 Open Meeting in Palm Springs. the collaboration and increased communication between groups like SCRS, the OEM Collision Repair Roundtable and efforts like the one I-CAR has embarked upon. “From a repairability standpoint, it does create a curveball for a lot of repair shops when the most popular vehicle in America transitions to a different model of construction that requires different equipment, training and repair processes,” he says. “It has certainly been at the center of discussion about how we as an industry disperse information, and how to make sure we’re ahead of the ball versus behind it when new vehicle models like this come out.” In addition to working to ensure that shops are able to retrieve the most current repair information possible, SCRS will continue to address members’ complaints over arbitrary reductions in refinish values on repaired panels – an issue that appears to be affecting everyone regardless of number of locations, or of their DRP or nonDRP status. “That’s an issue that’s not going away and not going to be removed from our radar as we continue to get requests from our members to help them,” Schulenburg says. “The pressure is being placed across the board by a few select carriers, and we’re certainly looking to address this on behalf of the industry.” The January 15 meeting also included a technical presentation by Toby Chess and Kye Yeung of the SCRS Education Committee, who reviewed a variety of tools available in the market to assist in the ease and quality of repair. This presentation will soon be available on the SCRS website at www.scrs.com. SCRS’ upcoming event schedule includes a series of events taking place April 8-10 in Portland, OR. In addition to co-hosting the Repairer Roundtable and offering an Open Membership Meeting and Annual Election on April 8, SCRS will host an Industry Awards & Corporate Member Recognition Luncheon on April 9. The slate of industry events for the week also includes SCRS’ participation in the Collision Industry Conference on April 9 and 10. More information on SCRS is available at www.scrs.com. *DEG” is a reference to the industry database inquiry site www.degweb.org. H&D
Executive Director’s Thoughts WMABA gets so much from our affiliation with SCRS. Not only are they a resource to our other state initiatives around the country, but their involvement with education and issues on behalf of the entire industry benefits all shops nationwide.
- Jordan Hendler
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AS A COLLISION REPAIR SPECIALIST, YOU MUST ALWAYS FOC HOWEVER, INSURANCE ESTIMATES ARE OFTEN FOCUSED ON BMW centers stock Original Equipment Parts that never sacrifice quality or s
For Original BMW Parts, contact one of these authorized BMW centers: BMW of Annapolis 25 Old Mill Bottom Road Annapolis, MD 21409 410-349-2565 Fax:410-349-2586 www.mybmwannapolis.com
BMW of Fairfax 2805 Old Lee Highway Fairfax, VA 22031 800-879-2269 Fax: 703-641-8562 www.bmwoffairfax.com
BMW of Alexandria 499 South Pickett Street Alexandria,VA 22304 Direct: 703-684-5255 Fax: 703-647-1853 www.bmwofalexandria.com
Passport BMW 5000 Auth Way Marlow Heights, MD 20746 301-423-0733 Fax: 301-423-2717 www.passportbmw.com
Apple BMW  of York 1370 Roosevelt Ave. York, PA 17404 800-839-1755 Fax: 717-843-2948 www.applebmwofyork.com
BMW of Sterling 21826 Pacific Blvd. Sterling, VA 20166 888-954-8222 Fax: 571-434-7727 www.bmwofsterling.com
BMW of Silver Spring 3211 Automobile Blvd Silver Spring, MD 20904 866-737-8937 Fax: 301-890-3748 www.bmwofsilverspring.com
Northwest BMW 9702 Reisterstown Rd Owings Mills, MD 21117 410-363-1461 Fax: 410-363-7749 www.northwestbmw.com
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FOCUS ON SAFETY, QUALITY AND COST. ON JUST COST. r safety for cost.
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Every detail is exactly matched to the vehicle’s safety systems for optimum occupant protection.
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Original BMW Panels and Components are built from premium materials using ultra-precise processes.
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To maximize the safety of all passengers, replacement panels undergo strict and extensive quality control tests.
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To ensure optimal paint adhesion, electrophoretically primer coats are applied during the manufacturing process.
Russel BMW 6700 Baltimore National Pike Baltimore,MD 21228 800-828-6529 410-744-2000 Fax: 410-744-5639 www.russelbmw.com
BMW of Bel Air 1705 Conowingo Road (US 1 in Hickory) Bel Air, MD 21014 443.640.1230 Fax: 443.640.1234 www.bmwbelair.com
Richmond BMW 8710 West Broad Street Richmond, VA 23294 800-237-0130 Direct: 804-527-6860 Fax: 804-965-6254 www.richmondbmw.com
Richmond BMW 12100 Midlothian Tpke Midlothian, VA 23113 Phone: 804-897-2211 Fax: 804-897-2202 www.richmondbmw.com
Checkered Flag BMW 5225 Virginia Beach Blvd Virginia Beach, VA 23462 757-687-3494 Fax:757-687-3495 bmw.checkeredflag.com
BMW of Towson 700 Kenilworth Drive Towson, MD 21204 410.296.7908 Fax: 410.296.4852 www.bmwtowson.com
Valley BMW 2824 Franklin Road SW Roanoke, VA 24014 PH: 540-342-3733 Fax: 540-345-9060 www.valleybmw.com
BMW of Rockville 1396 Rockville Pike Rockville, MD 20852 301-984-8989 Fax: 301-984-1710 www.bmwrockville.com
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The latest from WMABA members and supporters.
NATIONAL
NEWS Industry Groups Respond to Standards Dilemma Despite the disbanding of the CIC Standards Committee at last November’s meeting in Las Vegas (“CIC Standards Committee Reaches End in Las Vegas,” H&D, December 2013), committee representatives seemingly chose to carry on its work and continue their discussions on gaps in the OEM repair information and procedures available to the auto body industry. On January 16, the Repair Standards Working Group (comprised of past CIC Standards Committee participants) held an open meeting in Palm Springs, CA, hosting a variety of other industry representatives prior to the start of CIC. Like other current standards-related endeavors, the Working Group is seeking ways to address the challenges created when auto manufacturers have not documented specific procedures and/or made them available to repairers. “I think the general tone from most in attendance was that we need to make sure the energies expelled by the industry focus on supporting initiatives that get us to our end goal – such as the initiatives that I-CAR has invested in as a response to our requests back in 2011 – and cautiously avoid distractions from those initiatives,” offered SCRS Executive Director Aaron Schulenburg, who attended the morning meeting on behalf of the association’s membership. “My impression is that the automakers and repairers in the room all believed that what’s necessary is that we have procedures that are followed. Anything that gets us closer to that is movement in the right direction; it is our impression that there is more work product in that area today than in any other time in our industry’s past.” While identifying gaps in OEM repair procedures is a meaningful endeavor, Schulenburg cautions that the industry must also focus on ensuring that repairers adhere to procedures already in place, and that consumers rely on insurers indemnifying their
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losses in a way that accounts for costs associated with that level of repair. “Part of the discussion certainly asked how we [could] create a culture within our industry that supports following these procedures, finding them and using the resources already available to us rather than consistently seeking out the ones that aren’t,” he shared. Past WMABA President Barry Dorn, who attended the Working Group session on behalf of the association, echoes Schulenburg’s call for a greater concentration on encouraging repairers to use what is already readily available to them in the repair process. “There are players within the OE community – such as Toyota and Audi – who really adapt to our need for repair information, and do it strongly and effectively,” he offers. “But there are others that really aren’t there yet for several different reasons. We think that all the OEs will get to where they need to be with the continued work of SCRS and the OEM Collision Repair Roundtable; the shame of it is that we keep hearing from the OEs that the information isn’t being used by repairers at the rate that they would expect. The information is there, but very few are buying it or looking at it, as we all should be.” Dorn cites I-CAR’s new Repairability Technical Support initiative as an example of positive work in the standards arena. I-CAR is designing the initiative to provide technical repair knowledge, address gaps in repair procedures and enhance industry technical communication with OEMs. A beta version of the project was launched in early January and is available at http://rts.i-car.com. “I think I-CAR fully realizes that the direction we asked them to go is the right one,” he says. “They have invested significant financial and personnel resources to the initiative to see it all the way through, and they understand that there is a definite need
I-CAR's Repairability Technical Support Initiative aims to fill gaps in vehicle repair information.
for it. They have everything in place to make that happen, rather than the industry needing another entity to re-create what they already have. “We all know that gaps exist,” he adds. “But we believe that I-CAR is filling that need based on our request to them, and it’s only going to get better.” In related news, I-CAR recently reported that Kia Motors has released a comprehensive collision repair manual for the Kia Soul in the United States. The manual for the 2011-2012 Kia Soul (available at www.kiatechinfo.com under Service Materials > Body Dimensions > 2011-2012 Soul [AM] Body Dimensions) includes body panel repair procedures, sectioning and attachment method instructions, seam sealer and corrosion protection information, body dimensions and plastic part repair instructions. In the same section of the site, Kia has also posted repair manuals for the 2004-2009 Amanti, the 2007-2010 Rondo and the 20052009 Sportage, as well as dimension information for several other Kia vehicles. H&D
Executive Director’s Thoughts Much of the repair data for procedures is available, but not always accessible. Meaningful discussion to streamline this issue will mean that repairers will be able to more easily find and follow these procedures to better fix today’s vehicles. - Jordan Hendler
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LEGAL
What’s happening at the State House, in your industry and everywhere in between.
PERSPECTIVE
BY JAMES A. CLEAVER, Senior Partner, The Law Offices of Alexander & Cleaver
NFIB Report Details Small Business Concerns
1. Costs of health insurance. The concerns related to health insurance have been at the forefront of small business owners for a number of years. Costs go up and coverage declines, and as many small business owners are certainly aware by now, the Affordable Care Act / Obamacare has only served to exacerbate the uncertainty associated with mandatory coverage and costs.
2. Uncertainty over economic conditions. Unemployment remains high; growth seems stagnant. 3. The costs of energy. Whether a small business’ energy source is natural gas, propane, diesel, fuel, oil or electricity, their costs are a major concern to owners. Wild swings in the costs of energy make it difficult to price one’s goods and services.
4. Uncertainty over the government’s actions or agenda. Consider New York City. For some time, it was run by a business-friendly government. The new administration expressed serious concerns with income disparity. How will they address this issue? More importantly, how will these actions affect small businesses?
5. Unreasonable government regulation. Some regulation is necessary for the health and welfare of the community; excessive regulation depresses business growth.
6. Federal tax on business income. As revenues shrink, lawmakers look for new sources of income.
7. The complexity of taxes. To ensure you are in compliance with complex rules and regulations as a small business owner, you should not go it alone. Instead, the help of an expert is recommended – and they are costly.
8. Frequent changes in tax laws and rules. These changes can negate serious and thoughtful business planning.
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9. Property taxes. All of the considerations above apply to property taxes, as well.
©www.istockphoto.com/ studiovision
It is often said that small business is the engine that drives the US economy, and how true this statement is. Most people are employed by - or own - small businesses. If you are a small business owner, you know all too well that operating one is not without challenges. The National Federation of Independent Businesses recently surveyed business owners to determine the most serious problems they face. The 10 most vexing issues they found are listed as follows:
10. State and local tax on business income. Again, as revenues shrink, state and local lawmakers look to make up budget shortfalls.
If you are a small business owner, you need to be prepared to navigate these challenging and costly matters. A crucial tool in your arsenal in this regard will be surrounding yourself with the proper experts and information. Confer with an experienced business attorney to help you confront and overcome these common business owner pitfalls. H&D James A. Cleaver is the senior partner of the Law Offices of Alexander & Cleaver. Jim co-founded the firm in 1984 with Gary R. Alexander. He works primarily in the field of civil litigation, heading up the firm’s injury practice. In that role, Jim is the firm’s primary negotiator and litigator in personal injury cases, using his vast experience and knowledge acquired over parts of the past five decades to achieve results for clients. Jim has been designated a Super Lawyer in personal injury cases, was named one of Maryland’s top trial lawyers and was selected by the prestigious Million Dollar Advocacy Forum. He can be contacted at (301) 292-3300.
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Visit us at NORTHEAST速 Booth #105
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FEATURE
An industry representative shares a frustrating tale.
A REAL CLAIM STORY FROM AN EXECUTIVE DIRECTOR - Part 2
A
s shared in the last issue of Hammer & Dolly (February 2014), WMABA Executive Director Jordan Hendler was recently involved in a collision. This month, we present the second part of her personal account of her story:
After jumping through extensive hoops to get the vehicle inspected at the repair facility of my choice, the vehicle was now at the point where it could begin the repair process. Given my insistence to the repair facility to remain apprised of the communications between them and GEICO, going through the negotiations for the repair estimate had been a cause for concern and an alltoo-personal reaffirmation of why Maryland and Virginia repairers need assistance in contending with the pressures placed upon them and their customer by the insurance industry. If you didn’t read last month’s article, keep in mind that this is a third-party claim and no agreement or policy is governing the payment for repair.
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According to Hendler and the repair facility, a full repair plan was presented to GEICO for the amount of $4,949.36, excluding the rental costs. It was explained immediately that if there were any differences between the repair plan and the insurance estimate, the GEICO representative would let them know those questions prior to vacating the premises. According to Hendler, however, this was far from what actually happened: Later that day, a copy of the adjuster’s estimate was received. The total was $3,667.80 – a shocking deficiency of $1,281.55. This incomplete insurance appraisal not only failed to address all the damages outlined in advance by the repair facility, but was provided to the shop without any explanation, notation or question of the disregarded operations and costs. The repair facility contacted the adjuster to come back and write what he had missed, and he responded that he had written it to include everything in the repair plan. When asked how that could be if there was such
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a discrepancy, he replied that the repair facility could submit a supplement with the missed items or amount. The repairer then asked why he simply couldn’t write it correctly. The adjuster said it was already locked and there was nothing he could do. With differences in Labor Rates and operations, the supplement was submitted to try and move the process forward.
After submitting the supplement, there was a two-day delay for someone else to come back out to inspect the same damage on the same vehicle that had produced the incomplete original estimate. When the insurance company adjuster arrived unannounced, the vehicle was not at the shop for inspection because of the lack of communication and the fact that the vehicle was still drivable. Once the vehicle was finally seen, it took all of 10 days for the insurance company and their staff to produce a supplement that could have been done on the original estimate, had the representatives put an effort into reviewing the complete repair plan already presented to them by the repair facility. The secondary supplement was reviewed and agreed to in person, but no payment or actual documentation of that agreement was provided by the carrier. Another 10 days passed; despite follow-up from the repair facility, there was still no approval. A supervisor was contacted at that point to try and resolve the claim, as well as the rental reimbursement.
The repair facility gave the adjuster a verbal reminder of the process to get to this point in the claims settlement, and questioned him about the tactics they had used during this claim. He admitted that they had fallen down on follow-up and follow-through. This entire scenario was shared with the regional supervisor and other representatives
with GEICO to try and earnestly resolve the issues in a timely manner, given that it had already been two months since the accident and the repair plan was still not approved.
As a consumer, Hendler relayed how the process was frustrating, tiring and painful at best. As a working mother juggling commitments in the community, at work and with her family, it became obvious how so many consumers are taken advantage of simply by being worn down. At some point, the question of, “Is it even worth it?” enters one’s mind. This is what it must usually boil down to for many in similar situations. A supervisor responded to the repair facility that the shop’s rate was not going to be approved, and that they were paying what they considered to be the industry average in the area. This decision was made regardless of the repair facility contesting this rate for almost 10 years, in addition to the fact that they have never been surveyed by the insurer in their nearly 50 years in business. Hendler contends this issue to be something that most repairers find commonplace; as an informed consumer, she was ready to pay the difference if it came to that, and was prepared to take it further to recover her expenses if necessary. Don’t forget that Hendler was an innocent, third-party claimant – not an insured bound by policy limitations. And while Hendler agrees that insurers shouldn’t have to pay something unreasonable, she adds that they are obligated to make the claimant whole. Hendler shared more thoughts on the repair process:
I knew that it could be contentious to get reimbursed for repairs, but I didn’t realize how ridiculous the runaround could be. There is not a shred of customer service or what I would consider “fair” claims handling. This entire experience has shown me how repairers continually get beat up on a daily basis for trying to get fair payment for
their customer for the cost of repairs. I just don’t know how a consumer protection agency can look at situations like mine and think that the insurers have a capacity for ethical decisions.
The reason that I do what I do has become even more focused thanks to my personal experience. To maintain a level of professionalism, education, equipment and an ability perform a safe repair requires a reasonable rate of reimbursement. Without a realistic reimbursement rate, you cannot get proper repairs for consumers. It is a simplistic example of economics; if you strip away all the things that cost money, they can do it cheaper. But if what is stripped away is a customer’s safety, then this does more harm than good. At some point, there has to be differentiation between those who perform quality safe repairs and those who do not have the tooling or education to be capable of doing so.
To conclude the experience, Hendler was adamant to say that she herself would not choose to give her premium dollars to GEICO if this was an indication of how they take care of their customers. “I am sure that GEICO is not alone in their mistreatment of the consumer and the repairers serving them, but my experience with them directly has absolutely tarnished my impression of how their company in particular handles claims,” she says. “But really, this is something that will be taken with me wherever I go from now on, and will continue to drive my efforts with WMABA. I cannot unlearn what I’ve learned about what it is like to be in the shoes of the consumer. I dare say it would be worse to be in the repairers’ shoes. It’s just not the way it should be; it doesn’t have to be this hard or this bad. Something has to be better than what’s going on out there today.” H&D
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Nuts and bolts, tips and tricks from our resident industry experts.
TECHNICAL
FEATURE
BY LARRY MONTANEZ III, CDA & JEFF LANGE, PE
WARNING ON ALUMINUM REPAIR: DON’T BELIEVE THE HYPE! - PART 1 Over the past few years, we’ve had to listen to the outcries over PartsTrader, suppressed Labor Rates, refusal to pay for necessary procedures, database provider mistakes, increasing Direct Repair Program intrusion and complaints over a lack of profit. Although those issues are important and worthy of attention, they are not the focus of this article. This month, we will address the misconceptions and misinformation about aluminum repair, something which all repairers need further understanding of. Last month, we wrote about the poor quality of welds that we, and other consultants and industry experts, have been seeing performed on collision-damaged vehicles. We mentioned that the main reason we are seeing these extremely poor-quality welds is due to bad habits, absence of pride in one’s work and a lack of education. Well, let us state that an overwhelming amount of collision repair facilities CANNOT repair steel vehicles correctly. We have proof, and if you are willing to have your repairs inspected, we can arrange that if you like. All challenges (good and bad) will be printed. With that said, attempting to repair aluminum-intensive vehicles without the proper training and equipment constitutes negligence on your part. This article will hopefully explain the truth about aluminum repair from the perspective of someone who is not making a profit from it. If you are not one to read the blurb about the authors, please note that Jeff is a Licensed Professional Engineer and has been
involved in the automotive field for over 35 years and is, among other things, an ASE Certified Master Tech. Larry has been an industry trainer and speaker and is a Certified Collision Repair Tech and Certified Aluminum Welder for multiple OEMs. And he STILL works at a shop two to three days a week.
Cosmetic Repairs Unlike steel, aluminum has no memory and DOES NOT want to go back to its original shape. This is the main issue with repairing aluminum panels. Cosmetic repairs are generally performed on sheet aluminum and rarely performed on extruded or cast aluminum; the only repairs would be dressing of welded or riveted areas and no applications of filler. Due to aluminum’s memory characteristics, heat must be applied to the deformed area, but caution must be used to keep below the annealing temperature of aluminum. As the use of aluminum in the manufacturing of vehicles has increased (and we now find aluminum used as structural parts), technicians must learn new repair processes for them as well. Aluminum is extremely sensitive to heat, and the way that aluminum responds to applied pulling force is also different than steel. Precautions must be used when repairing it. Alloyed aluminum is grouped into two categories: Heat-treatable and non-heattreatable. Both can be heated for repair. The heat-treatable group includes: 2000 series (alloyed with copper) used often for body panels; 6000 series (alloyed with
magnesium), also used for body panels; and 7000 series (alloyed with both zinc and magnesium, making it very strong), used for applications such as bumper reinforcements. These types of aluminum alloys gain strength from being heat-treated at the factory during the baking process. Non-heat-treatable aluminum includes: 1000 series (nearly 99-percent pure), which is very soft and used for electrical wiring; 3000 series (alloyed with magnesium), used for interior structures; 4000 series (alloyed with silicon), often used for electrode welding wire; and 5000 series (alloyed with magnesium), often used for inner structural parts. These types of aluminum alloys gain their strength from work hardening during the stamping process. Let’s look at what happens when heat is applied to aluminum: • Aluminum melts at 660°C/1220°F. Remember, aluminum does not turn a different color before melting; it just disappears. Caution must be used when using heat. • Aluminum repair heating temperatures: 204°C - 299°C/400°F - 570°F (sheet aluminum outer panels only, not structural members). We recommend that you keep the temperature as close to 400°F as possible. • Aluminum has high thermal conductivity and therefore heats rapidly. Unlike steel, it can be heated and cooled multiple times during the repair process. • Aluminum anneals at 300°C - 410°C/572°F - 770°F. This range is dependent on the alloy(s), but for general purposes, never go
Please note that this is not a “how-to” article. WE WILL NOT DISCUSS OR EXPLAIN ALUMINUM WELDING PROCEDURES AND PROCESSES. ALTHOUGH LARRY MONTANEZ IS A CERTIFIED ALUMINUM WELDER AND TECHNICIAN WITH MULTIPLE OEMs, WE WILL NOT DISCUSS THE PROCESS. THIS IS DUE TO THE FACT THAT, WHEN REQUIRED TO WELD ALUMINUM, THE REPAIR FACILITY MUST BE ON AN OEM REPAIR PROGRAM. EACH OEM PROGRAM THAT ALLOWS ALUMINUM WELDING HAS ITS OWN PROPRIETARY WELDING CERTIFICATION TEST - ALTHOUGH ONE OEM HAS BROKEN THAT RULE, AND WE WILL DISCUSS THIS ISSUE IN THIS ARTICLE. ADDITIONALLY, THIS ARTICLE IS NOT A TRAINING GUIDE OR HOW-TO MANUAL; IT IS FOR INFORMATIONAL PURPOSES ONLY. IT IS A GENERALIZATION OF MULTIPLE DISCIPLINES OF OEM REPAIR PROCEDURES AND REQUIREMENTS.
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above 570°F when attempting to repair an aluminum panel. If you anneal the panel, it will never hold its shape again and will be permanently ductile. Heat crayons or non-contact thermometers MUST be used when heating aluminum. Remember, it does not change color or give any indication of overheating that can be judged by the eye.
Repairing aluminum outer panels can be difficult. Deformities to aluminum outer panels can be classified into two basic categories of repair: Repairable and unrepairable. (We know, this is pretty obvious, but let us explain.) The repairability of the panel is dependent on the accessibility and inaccessibility of the damage.
Accessible: Access to both sides/backside of the panel. This will allow for hammer-off-dolly techniques to be utilized. Inaccessible: No access to the backside of the panel. Hammer-off-dolly techniques cannot be performed.
These components are generally not repairable and require replacement if damaged in a collision event. The types of aluminum alloys these components are formed from are extremely strong and get work-hardened when deformed; they will crack, fracture or separate during repair attempts. One of the most important steps in the damage analysis process of a vehicle is to measure the vehicle for structural misalignment. This is true for steel-intensive vehicles, but it is paramount for aluminum-intensive vehicles, as there is no structural realignment to these vehicles. We hope this article has helped the industry to better understand the issues surrounding aluminum cosmetically and structurally and the commitment with getting involved with an OEM aluminum repair program. Stay tuned for next month’s installment, when we delve into equipment and training requirements shops must adhere to in order to be on any of the many aluminum collision repair programs. As always,
please feel free to contact us if you have any questions.
Larry Montanez, 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) 891-4018 (office), (917) 860-3588 (cell), (718) 646-2733 (fax) or via email at info@PnLEstimology.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@Lange Tech.net. H&D
Generally, accessible damage may be repairable and inaccessible damage may not be repairable. This is a general statement, and repairability would depend on the location of the damage, the size and type of damage sustained. Unrepairable damage is generally, but not limited to: Visible cracks, tears or breaches of the outer panel, deformities through feature lines, multiple deformities and damaged areas with little or no backside accessibility. Although there are many companies that make aluminum weld-on dent removal equipment for inaccessible areas, there are limitations to the repairability based on the severity. Most of the damage should be removed with heat applications and hammer-off-dolly techniques. Once this is done, weld-on dent removal equipment can be used to remove any small deformities to the panel. Another option is to weld the pins on, heat the area to proper temperature range and then apply pressure to the pins to gently remove the material. Aggressive pulling will cause micro-cracking or visible fracturing. In general, most of the damage to the outer body panels will require replacement.
Structural Repairs Structural components include, but are not limited to: Unirails, inner reinforcements, rear body panels, rocker assemblies, quarter panels, apron assemblies and generally anything that is affixed to the vehicle other than by bolts. These components are generally affixed to the vehicle by rivet-bonding, rivets, welding, EJOT screws, friction-stir welding or clinches.
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COVER
STORY
WMABA aims to gain support in the Legislature.
RELIEF THROUGH
REGULATION:
INSIDE WMABA’S PARTS BILLS
As the heavy snow of one of the worst winters in recent memory continues to add work to many shops in the WMABA community, rest assured that the association is working hard to ensure that you and your customers are treated fairly with all those jobs arriving in your bays. As this issue of Hammer & Dolly goes to press, WMABA is hard at work promoting the just-filed Senate Bill 487 (also filed as House Bill 574) in the Maryland Legislature. The bill seeks to prohibit “a specified adjuster, appraiser, insurance producer or employee of an insurer from requiring a motor vehicle repair facility to use a specific vendor or process for the procurement of parts or other materials necessary for the repair of a motor vehicle.” Additionally, the legislation seeks to require Maryland auto insurers to authorize use of genuine crash parts for vehicles that are three years old or less. Senate Bill 487 is sponsored by Senator John C. Astle, while the House companion bill is sponsored by Delegate John A. Olszewski, Jr. For WMABA Executive Director Jordan Hendler, the bills’ arrival in the Legislature comes at a critical time for the collision repair industry. “This is the legislative option – in other words, the last option after all other avenues have been exhausted,” she says. “The passage of this bill, or one similar to it, is the only way that repairers will be able to prevent the insurer mandate of particular parts, parts vendors or parts processes that can lead to inferior part selection, vendor relationship breakdowns and reduced consumer choice or delays in repairs.” As a repair professional who has dealt with the parts issue for years, WMABA President Don Beaver views the bills as an opportunity to bring genuine change to a beleaguered industry. “If insurance companies are allowed to continue to mandate anything in the repair process, it removes the ability of a repairer to make their best decisions,” he says. “When a shop has to purchase a mandated part from a mandated vendor at a mandated price, we are no longer the experts. We become ‘part changers’ and we don’t even get to pick the part that we install as the professional. It’s consumers who will ultimately pay the price with increased repair times and substandard parts.”
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Advocates of the bills believe that placing such strong restrictions on the use of aftermarket parts will add new protections for vehicle owners. For one thing, the existing manufacturer’s warranty on a consumer’s car does not cover replacement collision parts if they are replaced with a non-original or salvage part, or any damage caused by those parts. Additionally, a leased vehicle would require compensation by the consumer upon lease completion if parts other than those specified are used in repair. Perhaps most precarious of all, there is currently no process in Maryland for identification of non-original parts that can trace for manufacturer or warranty. This puts consumers in potential harm. Of course, passage of this legislation would also go a long way in addressing one of today’s greatest industry dilemmas: As insurers continue to force or coerce their contracted repairers into purchasing parts through and from particular vendors, consumer choice continues to erode. And let’s not forget that insurer-mandated parts procurement could soon mean that shops have to purchase parts from out of state, thus taking revenue away from Maryland through reduced revenue and lost sales. Not surprisingly, these consumer-friendly bills have already gained considerable attention in Annapolis. As of this writing, cosponsors include Senators David Brinkley, Richard Colburn, Brian Feldman, Katherine Klausmeier, James Mathias, Catherine Pugh, Victor Ramirez, Jamie Raskin and Norman Stone, Jr. as well as House Delegates John Olszewski, Jr., Charles Barkley, Benjamin Kramer and Norman Conway. Others have expressed interest and will be added by Sponsor Amendment by the time this issue is sent. “Thus far, many legislators see the obvious need to protect the safety, warranty and value of the vehicle for their constituents,” offers Hendler. “Secondarily, it helps protect them if they have a lease agreement or a lienholder [bank loan] from suffering later financial burden down the road. Many have lent support and others have met with repairers to understand more of the issues our industry faces,
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“Insurance companies aren’t going to like it, but I have more consumers in my district than I do insurance companies." - Senator John C. Astle
“Insurance companies aren’t going to like it, but I have more consumers in my district than I do insurance companies,” he says. Garagiola recommends that WMABA members in Maryland visit www.mgaleg.maryland.gov or www.mdelect.net to put in their home and business addresses to find their representatives in the State Senate and House of Delegates and encourage them to get behind the cause. Although the bills offer a world of good for the repair community, Hendler reminds WMABA members that this is ultimately a consumer rights initiative. “Yes, it does help the repairer in the end, but the reason it matters most is that it protects the interests of the consumer to be made whole after an accident,” she says. “Without it, they’re simply subject to insurer cost-containment tactics that have no regard for subsequent harm to that consumer.” With so much at stake in this current run in Annapolis, now is not the time for repairers to accept defeat and accept what is happening to them. Now is the time to fight back and protect your customers. “If this were an insect invasion, we wouldn’t just let them eat our entire picnic without putting up some kind of defense,” Hendler says. “Doing something small is much more than doing nothing and letting it happen. Contact our office to understand the bills and to make sure your message to your legislator is helpful to the cause. Legislators are looking for support from their constituents and our industry.” “The mandate issue is not an over-and-done deal – far from it!” adds Beaver. “Get involved by placing that call or a quick email to your local legislators. They really do want to hear from you! Educate yourselves and your vendors as to what these programs really do and how they will impact their business, their customers and maybe even their existence. Visit the WMABA website, come to the meetings and step up when asked to do so.” H&D
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in addition to the viewpoint they have on how the consumer can be harmed in the claims process.” “The initial support we have have received for this bill is impressive,” adds Beaver. “The number of Senators who have jumped on board is a great sign. I believe they realize that anything mandated by insurance companies during the repair process is overstepping their bounds at the consumers’ expense, all in the name of corporate greed. Anyone who believes this is not about money is grossly mistaken. There is no benefit to the consumer and/or the repairer in these mandates.” Hannah Garagiola, government relations consultant for WMABA lobbyists Anderson & Cleaver, sees this positive response as a sign that fortunes could soon improve for WMABA repair shops. “At the end of the day, [the shops] have to put their name on the work that they do,” she says. “Using an aftermarket part that might not fit correctly or might compromise the structure of the vehicle is something that I have come to realize shop owners are not comfortable with.” Delegate Olszewski views his support of the bill as an opportunity to provide true value to Maryland citizens. “The way I see it, this is a bill about consumer protection,” he says. “This legislation will help to ensure the quality of parts in our vehicles and the safety of our constituents. Auto body shops should not be required to use aftermarket parts by insurance companies – they should be able to use their professional discretion with each customer and automobile that comes through their doors. “House Bill 574 will have a positive impact on outcomes for consumers and businesses,” he continues. “After a collision, drivers want to know that the repairs being done to their cars are going to keep them safe, and they expect a high standard of replacement parts. Under this legislation, auto body shops will be granted the freedom to continue delivering this high standard to their customers.” For Senator Astle, getting behind this bill is an attempt to right a serious wrong that has existed in the state for far too long. “I think there is a problem out there when people go in and get body work done and the insurance companies are pretty specific about what can and can’t happen,” he says. “[Consumers] are often forced to accept aftermarket parts instead of OEM. That’s a problem, and has been a problem for a long time.” While WMABA’s newest legislative push is off to a strong start, all parties involved in moving the bills forward readily acknowledge that they are about to step in the ring with a notoriously powerful opponent. Fortunately, the repair industry has right on its side. “The insurance companies are likely going to say that this increases premiums, but we have information that shows that there is no correlation between [using OE parts] and premiums rising in other states,” offers Garagiola. “WMABA has a hard time going up against insurers and aftermarket parts vendors, whose main argument centers only on that this will raise premiums for consumers and that these parts are the same quality as the OEM part,” explains Hendler. “But that argument is all they have; they know that the right thing to do can be masked over by their perceived right to save money at any cost. Fortunately for us, many legislators are having a hard time swallowing that argument on its own. We know that in order to succeed, we have to explain effectively what happens in the real process of repair and how the consumer is not given the choice unless they pay more money, including the bully tactics toward them and the repairer.” Even though Goliath is known to stomp his mighty feet in scenarios of this nature, Senator Astle isn’t terribly worried about how insurers will react to the bill he’s pushing.
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HEADLINERS The latest news and notes.
SHERWIN-WILLIAMS ANNOUNCES EAST COAST ESTIMATING TRAINING WITH TOYOTA
Toyota Motor Sales USA and SherwinWilliams Automotive Finishes have announced the 2014 schedule for the annual Toyota Certified Collision Center estimating program, with Sherwin-Williams continuing as one of the facilitators for the program’s training workshops. Conducted through the University of Toyota, the workshops will be held in three locations across the United States, including:
Atlanta, April 9 Boston, May 7 Houston, June 25
“Sherwin-Williams continues to be a great partner in offering comprehensive training to the University of Toyota and our Certified Collision Centers,” says Brad Brahe, Toyota body shop development manager. The workshop, “B005 Collision Repair Estimating,” comprises real-world estimating scenarios and industry-specific issues pertaining to body shop operations and insurance company relations. Attendees who participate in this estimating program will get hands-on experience with the techniques, skills and information necessary to write more accurate estimates. “This is the 11th year that we have conducted the collision repair estimating workshops, and they have proven to enhance estimators’ and shop managers’ skills in all areas of writing accurate and profitable repair estimates,” said Steve Feltovich, manager of business consulting services for SherwinWilliams Automotive Finishes. For registration information, please contact your Toyota representative. For more information on training courses offered by Sherwin-Williams, visit www.sherwinautomotive.com/training-support/ classroom-training/course-details/. H&D
Visit us at NORTHEAST® Booth #100-104
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An association fostering the exchange of ideas, and providing a voice and support for the collision repair professional.
OFFICERS
PRESIDENT: Don Beaver Dbeaver@antwerpenauto.com 443-539-4200 ext. 17061
VICE PRESIDENT: Torchy Chandler torchy.chandler@gmail.com 410-309-2242
SECRETARY: John Krauss jkrauss@craftsmanautobody.com 703-534-1818
TREASURER: Mark Schaech Jr. mark@marksbodyshop.com 410-358-5155
BOARD OF DIRECTORS
Rodney Bolton rbolton@aacps.org 410-969-3100 ext. 250
Mark Boudreau crashdaddy@aol.com 703-671-2402
Position Your Business as a Leader! Just like equipment and training, WMABA membership is not only a commitment to excellence, but also a valuable investment. WMABA is recognized both regionally and nationally as the key forum for the exchange of ideas concerning the D.C., MD, and VA collision repair industry. It is the venue to discuss, learn about and impact evolving standards and policies in the technical, administrative and legislative fronts of our industry. Shops and industry supporters can best develop themselves and their employees by actively engaging in the association and its activities. Automotive collision repair facilities in Maryland, Virginia and Washington, D.C. who are willing to adopt WMABA’s Standards of Membership and offer a guarantee to their consumers are encouraged to engage their business as an active member of the association. For over 40 years, the WMABA membership of professional collision repair businesses and affiliates have committed to operating at a higher standard on behalf of their industry and their consumers. Over the years, WMABA has proudly represented the collision repair industry at hearings on Capitol Hill, in Annapolis, MD, and Richmond, VA as well as almost every national collision repair event. While WMABA has a rich history of dedicated men and women serving the local collision repair community, WMABA also boasts numerous past and current accomplished Board members who represent our membership at the national level. WMABA offers current and dynamic discussion forums on topics facing collision repairers, technical information and educational seminars, opportunities to network and discuss pressing topics with leaders of the collision repair industry, an arbitration program that works with consumers to help resolve issues they might have, apprenticeship programs, legislative representation and the ability to receive and contribute to one of the nation’s leading collision repair magazines, Hammer and Dolly.
Kevin Burt kevinburt@walkermillcollision.com 301-336-1140
EXECUTIVE DIRECTOR: Jordan Hendler jordanhendler@wmaba.com 804-789-9649
PAST PRESIDENT: Barry Dorn bdorn@dornsbodyandpaint.com 804-746-3928
Bobby Wright bobby@burkevillebodyshop.com 434-767-4128
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Contact Executive Director Jordan Hendler to find out how WMABA can amplify YOUR voice in the collision repair industry. March 2014
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ADVERTISERS’ INDEX Alexander & Cleaver............................29 Alexandria Toyota ................................17 All Foreign Used Auto..........................46
Audi Group ..........................................15 Axalta Coating Systems ......................4
BMW Group ........................................24-25 BMW of Bel Air ....................................IBC BMW of Fairfax....................................3
BMW of Rockville ................................IBC BMW of Towson ..................................IBC CAPA ..................................................6
Car-Part.com ......................................29
Chesapeake Automotive Equipment ..23
Empire Auto Parts................................23 Ford Motor Company ..........................11
Future Cure ........................................43 Help Wanted ........................................23
Honda Group ......................................40 Hyundai Group ....................................19
Koons Ford ..........................................35 Mazda Group ......................................27 MINI Group ..........................................34 MINI of Alexandria ..............................31
MINI of Baltimore County ....................IBC Mitsubishi Group..................................42 Mopar Group ........................................7
Nissan Group ......................................41
NORTHEAST™ 2014..........................17 O’Donnell Honda ................................46 Packer Norris Parts ............................9
Porsche Group ....................................44
PPG ....................................................IFC P&L Consultants ..................................37 Radley Acura ......................................20 Russel Toyota ......................................35
Safety Regulations ..............................17 Subaru Group ......................................30 Tire Distributors Inc. ............................31
Toyota Group ......................................21
Valspar Automotive..............................OBC VW Group............................................13
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