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The official publication of the Auto Body Association of Texas and the Houston Auto Body Association
April 2019 $5.95
SAFETY Can’t Wait: Members Speak in Support
of House Bill 1348 Plus: Todd Tracy vs. Airbags ABAT Events Update
www.grecopublishing.com
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Contents
APRIL 2019
on the
18
cover SAFETY CAN’T WAIT: MEMBERS SPEAK IN SUPPORT OF HOUSE BILL 1348
Official publication of the Auto Body Association of Texas and the Houston Auto Body Association
ABAT BOARD OF DIRECTORS
Vice President Brandon Dodd Lloyd's Body Shop brandon@lloydsbodyshop.com (903) 734-5175
President Burl Richards Burl's Collision Center burl@burlscollision.com (903) 657-8082
Chairman of the Board Corey Pigg S&W Expert Collision Repair coreyp@swcollision.com (936) 634-8361
By Joel Gausten
Treasurer David Osburn South West Collision Center dosburn@southwestautogroup.com (855) 395-2720 Executive Director Jill Tuggle jill@abat.us (817) 899-0554
ABAT BOARD MEMBERS
Chad Neal Innovative Collision Equipment Chadwneal@yahoo.com (817) 527-2143
Chad Kiffe Berli's Body & Fine Finishes chadk@berlisbody.com (512) 251-6136
Darrell Smith McDaniel’s Quality Body Works Inc darrell-mcdaniels@sbcglobal.net (903) 753-5391
Dean Griffin Moritz Dealerships dean.griffin@moritzmail.com (817) 696-2000
DEPARTMENTS
4 6 8 10 12 15 20
Kevin Ellison Westway Ford kellison@vtaig.com (972) 584-9033
PRESIDENT’S MESSAgE By Burl Richards Picking Apart the Prevailing Rate EXECUTIVE DIRECTOR’S MESSAgE By Jill Tuggle Moments to Remember
Robert McDorman Auto Claim Specialists rmcdorman@autoclaimspecialists.com (817) 756-5482
Manuel Rubio Miracle Body & Paint manuelr@miraclebp.com (210) 843-9564
Mike Williams All Star Collision Center sales@allstarcollision.us (903) 589-3160
Eric McKenzie Park Place Dealerships emckenzie@parkplace.com (214) 443-8250
EDITOR’S MESSAgE By Joel Gausten Texas Never Rests LOCAL NEwS Todd Tracy Targets Counterfeit Airbags NATIONAL NEwS “Opt-OEM” Suits to See Federal Trial ASK THE EXPERT By Robert L. McDorman What Is the Prevailing Labor Rate, and How Is It Determined? VENDOR SPOTLIgHT By Alana Bonillo Car-O-Liner Southwest
HABA BOARD OF DIRECTORS
President John Kopriva Kopriva Body Works jtkopriva@gmail.com (713) 923-4412
Vice President Ronnie Brush Westside Lexus Collision Center rbrush@westsidelexus.com (281) 584-2285 Chairman of the Board Greg Luther Helfman Collision Center gluther@helfman.com (713) 533-6226
PUBLISHER Thomas Greco / thomas@grecopublishing.com SALES DIRECTOR Alicia Figurelli / alicia@grecopublishing.com ADVERTISING SALES: Jill Tuggle / jill@grecopublishing.com CREATIVE DIRECTOR Lea Velocci / lea@grecopublishing.com
ASSOCIATION NEWS 23 ABAT MEMBER APPLICATION 25 HABA NEwS
EDITORIAL DIRECTOR Joel Gausten / joel@grecopublishing.com
26 HABA MEMBER APPLICATION
EDITORIAL/CREATIVE COORDINATOR Alana Bonillo / alana@grecopublishing.com OFFICE MANAGER Donna Greco / donna@grecopublishing.com Published by: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963
ADVERTISERS’ INDEX 300 Advantage ..........................................................11 AAMStraining.com ....................................................10 AkzoNobel ..................................................................13 Auto Claims Specialists ..........................................16 Beacon Equipment Resources ..............................16 Capital Paint & Refinish............................................21 CAR-O-LINER Southwest ........................................IFC Classic Chevrolet Sugar Land................................24 Classic Chevrolet Grapevine..................................10
Dallas Dodge..............................................................OBC Innovative Collision Equipment ............................14 Intrepid Direct Insurance ........................................22 Phantom Equipment & Hydraulic Repair ............7 Reliable Automotive Equipment............................17 Scott Portfolio ............................................................22 Spanesi ........................................................................14 Tasco Auto Color ......................................................9 Wheel Technologies ................................................27 3 APRIL 2019 Texas Automotive
www.grecopublishing.com TEXAS AUTOMOTIVE is published monthly and is sent to ABAT and HABA members free of charge. Subscriptions are $24 per year. TEXAS AUTOMOTIVE is published by Thomas Greco Publishing Inc., 244 Chestnut St., Nutley, NJ 07110. The editorial contents of TEXAS AUTOMOTIVE are copyright © 2019 by Thomas Greco Publishing Inc. and may not be reproduced in any manner, either in whole or in part, without written permission from the publisher and/or editor. Articles in this publication do not necessarily reflect the opinions of Thomas Greco Publishing Inc. Stock Images courtesy of www.istockphoto.com.
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President’s Message
picking apart the prevailing rate Gaining access to the proper information and procedures needed to correctly repair a damaged motor vehicle has never been easier, but getting paid real-world money for the work we do has never been more difficult. Burl Richards ABAT President
L
Last year, several members of ABAT and HABA met with representatives from the Texas Department of Insurance (TDI) to build greater communication with them and address our industry’s issues. Not surprisingly, the subject of rates came up in our conversations. We were told that while shops determined their own rates, insurers were only obligated to pay what is “fair and reasonable.” When we pressed for clarification on who determines a “fair and reasonable” rate, we were told that it would be up to a “finder of facts,” such as a court of law. Additionally, we were
told that Texas doesn’t recognize “prevailing rates.” Unfortunately, it appears that the insurance industry never got this memo. Not too long after our talks with the TDI, I had an insurance adjuster stand in my shop and tell me that his company pays only the “prevailing rate” as per its policy language. is goes directly against the TDI’s position on the matter. I’m currently in touch with the Department to get to the bottom of this and get a confirmation on what is or isn’t appropriate when it comes to how insurers come up with rates. I will keep
our members and readers posted on how these further talks develop. In the meantime, be sure to read this month’s “Ask the Expert” article by Robert McDorman, which goes deeper into how “prevailing rates” impact consumers and our industry. “Prevailing” doesn’t pertain just to rates; it also pertains to the “prevailing practice” of insurers telling us, “No one else charges for this procedure or process. erefore, we do not have to pay you whether you do it or not; we only owe for the prevailing practice in that specific market.” is has as much (or more) to do with a shop’s profits – and, more importantly, the quality of repair – than rates do. e bottom line is that insurers sell indemnification policies to their customers. is means that they are required to make their customers whole again in the event of a loss. I’m not alone in my belief that insurers’ unwillingness to pay proper rates leaves policyholders under-indemnified. Stay tuned; this is far from over.
TXA
burl@burlscollision.com
4 APRIL 2019 Texas Automotive
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5 APRIL 2019 Texas Automotive
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Executive Director’s Message
Moments to remember
I
I am so excited to share with you the continued movement ABAT is making across the state. We have many events coming up, so now is the time to check out the association that everyone is talking about! ABAT prides itself on bringing much to the table for shops, but education is the most important thing we offer. I encourage you to find a meeting or event near you to learn something valuable you can take back to your shop the next day. On April 10 and 11, we will be hosting the same meeting in both Austin and Dallas. ese events will feature presentations from ABAT and the Database Enhancement Gateway (DEG). Danny Gredinberg, administrator for the DEG, will be flying in from Colorado to give an exclusive tutorial on the system. If you are not familiar with the DEG (one of ABAT’s favorite resources), it is funded by the Society of Collision Repair Specialists (SCRS) and the Alliance of Automotive Service Providers (AASP) to bring information to body shops in relation to estimating systems. At degweb.org, you can submit discrepancies found within any of the three estimating systems. en, the DEG will log the issue, the inquiry’s progress and a response or action taken from that system. e DEG has had great success in getting that information corrected. Gredinberg will present on how to best utilize the DEG
and speak on included and notincluded operations and a variety of other topics. You will leave with helpful, hands-on tools to keep this information at your fingertips when you write estimates in your shop. ABAT will close the evening with a few words on association happenings, including House Bill 1348, its progress and how you can help. Just because hunting season is closed doesn’t mean we put our guns away here in Texas! On May 18, you can dust off that shotgun and join us in our 3rd Annual ABAT Skeet Shoot! is event is fun for all - beginner or expert! We will have beautiful guns for top shooters as well as raffle prizes for everyone, lunch and even a chance to crack a cold one (once the shooting is done, of course). is event has become very popular and space is limited, so register today at abat.us. Save the date for the 2019 Texas Auto Body Trade Show: September 2021! is year promises to deliver top-notch education and showcase the latest collision repair technology and tools. Stay tuned for more information! Check out our Calendar of Events and connect with ABAT near you!
TXA
jill@abat.com
6 APRIL 2019 Texas Automotive
Jill Tuggle ABAT Executive Director
ABAT CALENDAR OF EVENTS April 10: 4-7pm ABAT and the DEG Wyndham Garden Hotel Austin 3401 South IH-35 Austin, TX RSVP to Jill Tuggle: jill@abat.us April 11: 5-8pm ABAT, Vale and DEG Vale Training, 2424 E. Randol Mill Rd., Arlington, TX 76011 RSVP to Jill Tuggle: jill@abat.us April 18: 6-9pm ABAT and National Auto Body Research Holiday Inn Express 3025 NE Loop 286 Paris, TX 75460 RSVP to Jill Tuggle: jill@abat.us May 18: 10:30am-4pm ABAT Skeet Shoot Elm Fork Shooting Sports, 10751 Luna Rd. Dallas, TX 75220 RSVP at abat.us September 20-21 Texas Auto Body Trade Show Will Rogers Memorial Center, 3401 W. Lancaster Ave. Fort Worth, TX 76107 More info coming soon.
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Editor’s Message
TEXAS NEVER RESTS Joel Gausten Editor
If you are a member of ABAT or HABA, rest assured you are part of two of the most active collision repair industry groups in the country.
S
Since the launch of Texas Automotive last fall, the associations have been involved with critical parts crash testing alongside attorney Todd Tracy, hosted numerous industry-related education and social events throughout the state and worked together to promote House Bill 1348. I’ve been covering the auto body field for nearly 20 years, and rarely have I seen such persistent dedication and activity. ese associations exist to build a stronger, safer and more profitable industry. In this month’s issue, you will read more about both groups’ efforts to push House Bill 1348 and also provide value to their memberships in additional areas. Of course, your membership in
these groups is only worth the time you dedicate to being involved. Check out their upcoming efforts, reach out to your local legislators when asked, read this magazine and work with others who are committed to achieving the same goals. ere is a lot going on in public and behind the scenes that could change the landscape in Texas forever. You can be a part of a movement that has the potential to improve your industry today and in years to come. ABAT and HABA could always use more feet on the street and people in the room. e lasting success and survival of your business and your industry depends on you.
Texas Automotive is proud to be working with ABAT and HABA, and we’re thrilled to have the opportunity to report on everything that is currently reshaping your profession for the better. Never hesitate to reach out to us if we could ever serve as a resource or a connection point. Also, please keep us posted on your successes and struggles at your shops. We’re here to tell your stories, and we look forward to working with you to ensure that your tales have happy endings.
TXA
joel@grecopublishing.com
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8 APRIL 2019 Texas Automotive
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Local News
By Alana Bonillo
Todd Tracy targets counterfeit airbags Tracy told CBS 11. e attorney uncovered a counterfeit airbag – complete with a shoddy Kia logo – drenched in silicon putty, sloppy glue work and other signs of poor construction. Perhaps most shocking of all, a shop rag sat inside the device. is revelation led CBS 11 to trace the car’s lengthy and troubling sales and repair history. e original owner had also been in a crash, with insurance documents noting the deployment of the original airbag. e Kia then bounced from Insurance Auto Auctions in Wilmer to Albayati Motors of Dallas to Extreme Auto Care in Carrollton, who refused CBS 11’s request for a comment. Next, the car was sold to a dealer, Complete Auto Group, in Farmers Branch, where the Loughrans made their purchase. Complete Auto Care owner Jimmy Sanders told
image source: CBS 11
“I bought the car on Monday, and Sarah was dead on Wednesday.” at was how Donald Loughran described the tragic death of his 34-yearold daughter, Sarah, during a February 25 report by CBS 11. More than two years ago, Sarah died in a single-vehicle, headon collision in Highland Park – an event that left behind her young child and devastated family. Dallas-based attorney Todd Tracy, best known to the collision repair industry for his multimillion-dollar verdict against John Eagle Collision, believes Sarah would still be alive today if her vehicle had been properly repaired. For 18 months, Tracy and his research team investigated the crashed vehicle for the reasons behind Sarah’s death – and made a chilling discovery. “e steering hub fell out, and what we saw next was absolutely shocking,”
reporters that prior to that sale, the airbag light was on when the vehicle was received from Extreme Auto Care, which led him to have it taken to Kia of Carrollton. When the Kia dealer noted that the airbag module needed to be replaced, Sanders declined the facility’s price and ordered a cheaper part through his father’s shop in Plano. (e CBS 11 report shows an order sheet from LKQ when discussing this purchase.) Sanders claims that his father did not install the part, opting instead to have yet another shop enter the picture and install it for him. He added that the airbag warning light was off when he got the Kia back. CBS reporter Ginger Allen warned that the use of fake airbags is on the rise. “We have learned that counterfeiting airbags is actually pretty common because replacing them is so costly – up to $1,500…A few years ago, two brothers in Houston were convicted of selling these. Late last year, I found [out] a man in Portland was.” Tracy told CBS 11 that the same horror that befell the Loughrans could strike other Texas families at any time. “I guarantee you right now there are cars driving around Dallas-Fort Worth that will not fire,” he commented, adding that what happened to Sarah Loughran was “no different than murder.” e complete CBS 11 report is available at dfw.cbslocal.com. Texas Automotive will provide updates on this story as it develops.
TXA
LET US TURN THEM AROUND!
Contact Texas Automotive Sales Representative Jill Tuggle
(817) 899.0554
JILL@GRECOPUBLISHING.COM
10 APRIL 2019 Texas Automotive
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National News
By Alana Bonillo
“Opt-oem” Suits to see federal trial What makes an OEM part an OEM part? A federal trial set for June 2020 could result in considerable changes to how shops identify, select and utilize replacement parts during the repair process. Although terms like “Opt-OE,” “AltOE” or “Surplus OE” are gaining prominence in the industry as a way to characterize original automaker parts that have been sourced outside of traditional OEM dealers/suppliers, it could be confusing for many shops to truly know if they are purchasing parts that have been approved by automakers for use in the American market. is issue is at the heart of a late 2017 lawsuit filed by Hyundai Motor America, Inc. against Direct Technologies International (DTI, Inc.), an independent parts vendor with an extensive online presence. Hyundai’s suit alleges a host of offenses, including trademark infringement, false designation of origin, trademark dilution, unfair competition and violating the North Carolina Unfair and Deceptive Trade Practices Act. In its filing, the auto manufacturer contended that the “Hyundai-branded parts” sold by DTI through its website and elsewhere were not meant for sale in the United States and were not the same as Hyundaibranded products available in this country. “Genuine Hyundai Parts are made to precise specifications and must meet certain quality standards to be sold in the
United States,” commented the company in its legal filing. “at is not true for Hyundai-branded parts meant for sale in areas of the world outside the United States. Hyundai-branded parts that are not sourced through Hyundai’s authorized chain of distribution for the United States may contain numerous material differences – including, but not limited to, packaging, labels, production methods, weight and performance characteristics – as a result of the difference in specifications to which such parts are manufactured or the actual manufacturing processes themselves…Furthermore, Hyundai-branded parts that are sourced outside of Hyundai’s authorized chain of distribution for the United States are materially different in warranty coverage and/or protection and dealer and customer support. As such, the sale of those unauthorized Hyundai-branded parts in the United States constitutes sales of illegal grey-market goods.” Additionally, Hyundai claimed that DTI “does not offer a warranty on the Hyundai-branded parts it sells that is equivalent to the applicable HMA warranties...By selling the non-genuine Hyundai parts in the United States, without Hyundai’s consent, DTI has deprived Hyundai of its ability to control the quality of its product and misrepresented to the dealers and/or consumers the origin 12 APRIL 2019 Texas Automotive
and quality of the DTI parts.” Although DTI admitted to “importing, promoting, offering for sale, advertising on the internet through its website [...] and through other media, and/or selling Hyundai-branded parts,” the company denied having “knowledge or information sufficient to form a belief about the truth of an allegation that the parts sold by DTI were intended for sale abroad.” DTI responded to the allegations by countersuing Hyundai. One of the allegations made in the DTI suit was that the automaker has engaged in “predatory and/or anticompetitive conduct” by tying its sales of replacement parts for Hyundai automobiles to its vehicle warranty and extended vehicle warranty programs. According to DTI, “Hyundai is exploiting its monopoly power in the Hyundai vehicle market and the threat of not covering vehicle warranties and/or the threat of less favorable treatment or termination of existing commercial relationships regarding new vehicles to force its vehicle dealers to purchase the replacement parts for Hyundai automobiles from Hyundai’s exclusive US distributor.” Hyundai and DTI each filed a motion to have the other party’s suit dismissed. After both motions were denied, a federal trial was set for next year to hear both cases.
TXA
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Ask the Expert
By Robert L. McDorman
What is the prevailing rate, and how is it determined? Dear Mr. McDorman: I operate a collision facility in Weatherford. We are OEM-certified for each make and model that we repair. Most carriers honor our posted body labor and refinishing rates. However, we recently had a carrier inform us that they were only required to pay the lower “prevailing” Labor Rate for body labor and refinish for the claim in question, and anything above this would be the responsibility of the insured. Your September 2018 article, “Shop Rates vs. ‘Prevailing Competitive Rates,’” reminded me of my situation. In the article, you stated, “I have raised this concern in a recent meeting with the Texas Department of Insurance.” My questions are: What is the prevailing Labor Rate? How is the prevailing Labor Rate determined? What was the Texas Department of Insurance’s response to your question regarding the prevailing Labor Rate? ese are great questions; please allow me to answer them. e prevailing Labor Rate is an industry standard for the average rate in a specific area. I understand the prevailing Labor Rate is based on the average Labor Rate from a selected group of collision facilities in a specific area. e prevailing Labor Rate from carrier to carrier is determined by their own systematic methods; to my knowledge, these assumptions and calculation methods are not disclosed. Also, the policy language in reference to the prevailing Labor Rate varies from carrier to carrier. However, the insured has the right to request such methodology, documents and data to support the carriers’ prevailing Labor Rate calculation used to satisfy their liability and indemnify that insured. Any such assertions on behalf of the carrier or their representatives as to what they are (or not) liable for must be supported and documented as a policy right of the insured. As the writer of the contract, the carrier has the burden of proof, and that company must support said methodology and assertions about their perceived prevailing Labor Rate calculation and be held accountable for any gaps and/or misrepresentations. Whenever there is subjectivity (such as what
I’m addressing here), we must research why the difference exits, receive the proper documents and employ credible resources to identify the descrepancies. I reached out to the people behind the Variable Rate System (nationalautobodyresearch.com), which is an unbiased leading authority on the subject of collision facility-related charges. It is my understanding that the Variable Rate System has been retained by one or more state regulatory agencies as an unbiased authority to assist in identifying the true prevailing rate on every related charge in the collision industry. e Variable Rate System shows the prevailing competitive rates within a 50-mile radius of Weatherford for a collision facility with one or more certifications as $50 for both body and refinishing (on average). e same survey model for all of Texas reflects the average body rate as $51 for both body and refinish. As noted by the Variable Rate System, the average body rate is $50 and refinish time is $50. Based on the System – the only unbiased prevailing competitive rate survey we have available for the claim in question – the carrier has escaped liability for your higher body and paint rates by using their prevailing Labor Rate method to calculate the loss. In regard to the claim that is the subject of your letter, the carrier failed to make the insured whole when they elected to use their self-subscribed prevailing Labor Rates for body labor and refinishing. What is happening here is the insurance carrier is using a prevailing Labor Rate to administer claims that are not accurate, credible or supported by facts. In each case, the insured has to pay the difference between the true prevailing Labor Rate and the insurance carrier’s perceived prevailing Labor Rate. On each of these instances, the insurance carrier has escaped liability and not made the insured whole. It is crystal clear to me as a public insurance adjuster that any time the market-certified shop rate is X, the carrier pays Y based upon their selfprescribed prevailing Labor Rate of Y. Should the amount difference from X and Y be greater than Y, the claimant and/or insured has been underindemnified for said loss and has not been made
15 APRIL 2019 Texas Automotive
Robert is a recognized Public Insurance Adjuster and Certified Vehicle Value Expert specializing in motor vehicle-related insurance claim resolution. As the general manager of Auto Claim Specialists, Robert expertly leads this National Public Insurance Adjuster Agency, which is currently licensed in 11 different states and specializes in providing automotive-related claim liquidation techniques, strategies and motor vehicle valuation services to all parties, including individual consumers, body shops, auto dealers, repair facilities, towing and storage operations, lenders, finance companies, banks, legal professionals, governmental agencies and others. The firm’s consistent success can be attributed to Robert’s 35+ years of automotive industry knowledge, practical hands-on experience and multiple certifications, including licensure by the Texas Department of Insurance as a Public Insurance Adjuster. Auto Claim Specialists clients can absolutely trust that they will be provided with analytical, sophisticated, state-of-the-art, comprehensive, accurate, unbiased and up-to-date data and information that all parties can rely upon as both factual and objective. Robert can be reached at (800) 736-6816, (817) 7565482 or asktheexpert@ autoclaimspecialists.com.
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Ask the Expert whole. During 2018, I attended several meetings with the Texas Department of Insurance (TDI). When the prevailing Labor Rate was brought up during these meetings, we were told repeatedly by the TDI management that the Department does not recognize a prevailing Labor Rate, it is up to individual shops to set their rates and insurers only owe what is “fair and reasonable” (which is determined by “a finder of fact”). In closing, the insured should always request written proof with supporting documentation from their insurance carrier for any application of a calculation or systematic internal method that is used to determine liability or loss. is is their right as a policyholder. Please call me should you have any questions relating to a motor vehicle insurance claim. I thank you for your letter and look forward to any follow-up questions that may arise.
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16 APRIL 2019 Texas Automotive
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Cover Story
SAFETY Can’t Wait:
Members Speak in Support of House Bill 1348 18 APRIL 2019 Texas Automotive
Texas Automotive_0419.qxp_Layout 1 3/29/19 3:09 PM Page 19
By Joel Gausten
What gets nearly 100 people out of their businesses on a Tuesday for a trip to Austin? e chance to make their industry truly theirs and better protect their customers in the process. As reported in last month’s Texas Automotive, members of ABAT and HABA hit the Texas State Capitol to meet with legislators to get their support of House Bill 1348. is special “Collision Day” was a chance for industry members to directly share their thoughts, worries and hopes with those who can make a difference. It was a day that no one who attended will ever forget. For Richard Dragulski, territory account manager for AkzoNobel, taking part in “Collision Day” was his first trip to the Texas State Capital and an opportunity for him to show support for the collision repair facilities that have faced many obstacles. “AkzoNobel is committed to the future of the collision repair industry. Due to shop concerns specific to requirements, proper repair procedures and fair reimbursement practices, this was a great opportunity for AkzoNobel to show its support of both ABAT and HABA.” Dragulski walked away from the “Collision Day” with an even stronger respect for the ABAT and HABA members and other quality-focused repair shops concerned about the industry and the direction it could take in the future. “I really appreciated those who stood up and talked about their business, their challenges and how they want to repair customers’ vehicles correctly and get paid for what they do. It’s all about having a clear conscience when they send the repaired vehicle back to the owner. I enjoyed the passion and professionalism that was represented there.”
Long before hitting the floor in Austin in support of House Bill 1348, Andrea Trevino of Southside Paint and Body (Corpus Christi) was already in touch with her state representative, Todd Hunter, and had been compiling a packet of information for him to bring greater attention to some of the more common and frustrating problems surrounding operating a professional repair business in 2019. “I told him that getting insurance companies to pay for proper repairs had been a really big issue of ours. OEM repairs are just what need to be done. I’ve had cars taken out of my shop because Joe Shmoe down the street can do it cheaper and faster because they weren’t doing the proper repairs.” After receiving an email about “Collision Day,” Trevino made the trip to Austin and met with Rep. Hunter to discuss things further. Seeing the recent John Eagle verdict as a lightning rod for genuine change, she is continuing her efforts to encourage every shop and dealership she encounters to help get the House Bill passed. “It’s a benefit for the consumer, it’s a benefit for the dealerships that can sell more OEM parts and it’s a benefit for shops to learn how to repair these cars properly so they don’t get sued. “I’ll do everything I can, because it really is about the future of our business,” she adds. “I can’t even imagine that future without having somebody stepping in and saying, ‘Wait just a second. e manufacturers are the ones that test it; they’re the ones that get to say how to fix it.’” Ultimately, Trevino stands behind the House Bill because its success will help her industry better define the true way to bring a damaged vehicle back to a crashworthy condition.
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“We’re very much stuck in the middle. e OEMs say, ‘You have to do it this way,’ but the insurance companies that are actually paying for it are saying, ‘If you don’t do it this way, then you don’t get the work.’ e shop’s liable for that. Something has to happen; we can’t have any more John Eagles. e safety of our customers is at stake; it just can’t happen anymore.” An industry professional for 38 years, Robert Castillo knew he had to be a part of “Collision Day.” “I’ve put a lot of time into this industry, and I guard it very carefully. When things like this come up, I try to encourage my peers to step up and be a voice. It’s not going to happen just sitting on the couch and doing nothing.” Currently serving the auto body field as an independent paintless dent repair technician, Castillo has seen plenty of trends come and go in his nearly four decades in the industry. Not surprisingly, he is frustrated by the current state of affairs between carriers and collision centers. “ere are a lot of practices that are taking place by insurers that have affected my livelihood just like they have the independent collision repair shop owner.” After being informed of “Collision Day” by a colleague out in the field, he took time away from work to hit Austin. While there, he met ABAT Executive Director Jill Tuggle and was inspired enough by the association’s activities to join. He was also able to spend serious in-person time with Rep. Scott Sanford, who was sympathetic and supportive of the industry’s work behind House Bill 1348. “He gave me an hour of his time, and I’m very glad that he did.” Energized by the conversations that unfolded at the Capitol, Castillo is committed to doing everything he can to continued on page 22
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Vendor Spotlight
By Alana Bonillo
Car-o-liner Southwest Car-O-Liner Southwest has made an impressive footprint across its home state of Texas and throughout the region. Now in its 26th year, the company continues to reach new heights as it expands into new markets. Owned by Tim and Shelley Curran, the automotive equipment distributorship was born in the Lone Star State and now caters to auto body shops throughout Texas, Oklahoma, New Mexico, Arkansas, Louisiana, Mississippi, western Tennessee and southern Alabama. e Currans operate out of a 10,000-square-foot home office in Rowlett, a suburb of Dallas, and have seven additional locations in key areas throughout their territory. “We offer everything from soup to nuts – from the sales process all the way through training and support,” explains Tim. “We still do it old school,” he says of his operation’s personal, hands-on services. He believes in taking products directly to the customer and performing a demo to give them a chance to experience the equipment before making a decision. Some of the Car-O-Liner products most in demand right now are the fully automatic and OEM-approved CTR9 Spot Welder, the PointX II Diagnostic Measuring Tool and the CarO-Liner Vision X2/X3 for blueprinting. “e buzzword right now is ‘blueprinting.’ It’s something we’ve done for years, but now it’s more highlighted due to the process and sophistication of vehicles today.” Once equipment is sold, the process does not end there. e sales reps step aside to allow the company’s complete in-house tech support staff to get the training process underway. In fact, Tim views support and training as his enterprise’s strongest assets. “Teaching is one of our foundational principles, and it is why we have five training centers.” Very soon, that number will increase to six. Car-O-Liner Southwest’s expansion into the El Paso/New Mexico territory has led to the need for a training center expected to open this month. e company offers call-in tech help, onsite technical assistance and vehicle consultation regarding OEM requirements related to structural bench work and processes. Its training staff is I-CAR-trained, uses special curriculum that is endorsed by ICAR and qualifies for I-CAR education credits relative to areas including measuring, bench training and welding. e Currans have always believed in the importance of training, but it’s even more crucial with today’s modern vehicle designs as well as the rollout of technology like advanced driver-assistance systems (ADAS). “e single most urgent thing right now is training and gaining knowledge of the new vehicles and designs,” suggests Tim about what is next for shops and the industry as a whole. “You can’t look at a vehicle and see it just needs a fender, hood and bumper. You have to peel the layers back, look inside and find out what is going on in the internal systems. ere are still many shops that don’t do that today. In the age of pre-scan/postscan and pre-measure/post-measure, the process is totally different. It’s all advanced electronics and active suspensions.”
Back row (left to right): Jason Stinnett, Jeff Goffeney, Tim Curran, Marvin Garcia, Steven Curran, Kayla Curran-Hughs and Dewayne Spence. Front row ( left to right): Kristy Breckon, Tammy House, Briana Story
Tim and Shelley Curran of Car-OLiner Southwest
Tim credits ABAT for taking on that role and looks to them to lead the Texas collision repair industry towards better days. “ABAT has done a great job pulling shop owners together for a cohesive planned process that helps them understand what it takes. ere are more consistencies in repair processes. It’s exciting, and we want to be part of that.” Car-O-Liner Southwest has been a regular exhibitor at ABAT’s annual Texas Auto Body Trade Show and is excited to see the show grow more each year. Tim sees it as instrumental for driving membership and getting more and more shops to work together. Looking towards the future, the Currans foresee even more continued growth for Car-O-Liner Southwest as they continue to focus and expand the Houston and El Paso markets (which they see as the next big growth areas in the Texas industry). No matter where the operation goes next, customers are sure to receive a level of service that goes above and beyond.
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TXA
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Cover Story continued from page 19
Insuring Collision and Repair Shops Directly
assist ABAT and the Texas collision repair community in rising above their challenges and securing legislation that will better guarantee a safe and profitable future. “I’m on a mission to try to get as much attention as I can from our state lawmakers regarding this before it starts going to the House Committee and the Senate floor.” With active support from all corners of the Lone Star State, House Bill 1348 has the potential to achieve a level of success and peace of mind previously unseen by anyone who has struggled to perform the best repair possible under the scrutiny and influence of a third party. Trevino is one of many who is excited by the idea that it could pass. “Immediately, I think we would all have a big sigh of relief that we can pull up the manufacturer’s requirements and hand them over to the insurance adjuster knowing that we’ll do the repair that way and also get paid for it to be done. Our consumers should all be driving safely repaired cars.”
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HABA News
Houston Auto Body Association PLANS LEGISLATIVE WORK, EDUCATION SLATE After an active first quarter, the Houston Auto Body Association (HABA) is laying the groundwork for a slew of initiatives for the rest of 2019 and beyond.
Not surprisingly, House Bill 1348 remains on the forefront of HABA’s current agenda. Bolstered by the massive industry turnout for “Collision Day” at the Texas State Capitol in February, the association continues to mobilize its members to get involved in the legislative process – especially as signs of pushback from the insurance industry becomes more evident. “Some insurers have been saying, ‘e Seebachan case is not as serious as everybody’s making it out to be. at was an isolated case; that doesn’t happen every day,’” observes HABA President John Kopriva. “ey’re trying to diminish the severity of what happened to those folks.” Despite these initial roadblocks, Kopriva remains steadfast in his belief that passage of House Bill 1348 would bring much-needed relief to repair facilities well beyond Houston. “I’m confident that if we get our House Bill passed, you’re going to see a ripple effect across the country. Other industry associations have similar bills and are trying to accomplish the same thing.”
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In other news, HABA is currently finalizing a series of training events for the remainder of the year. Management development and proper repair procedures will be among the topics of discussion at these special events, which will be announced in the months to come. Kopriva encourages association members to take advantage of the critical information these classes will provide. “ere are a lot of shops out there that really don’t understand all the things we’ve been talking about. ey’re not doing it, and they’re not gearing up to do it. What they’re gearing up for is another lawsuit.” On a more festive note, HABA will be hosting its 10th Annual Member Appreciation Event on May 14 at Jackson Street BBQ in Houston (next to Minute Maid Park). “It’s just a lot of fun to get together and mix and mingle with the various shops in and around the Houston area. Of course, one of the purposes of the event is to grow the association.” e Member Appreciation Event will see the return of HABA’s “Each One Reach One” campaign, which encourages existing members to each bring in one new member. “ere’s a lot of strength in increasing membership, so we’ll be emphasizing that again this year.” For more information on the Houston Auto Body Association, please visit habaonline.org. TXA
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HOUSTON AUTO BODY ASSOCIATION Membership Application Please Print
Company Name:
Primary Contact:
________________________________
________________________________
Business Address, City, Zip Code
Phone:__________________________
________________________________
Years in Business: __________
Email:___________________________
Website:_________________________
____ Member Dues $450 (all body shops)
____ MSO dues $250 Per Shop
____ Af liate dues $450
____ Sponsorships - See Attached
NOTE: Please make your check payable to Houston Auto Body Association or (HABA) and submit membership dues and application to: Houston Auto Body Association 4619 Harrisburg Blvd. Houston, Texas 77011 or sign up online @ www.HABAonline.org All new membership applications require nomination and review from the Board and a majority vote for nal approval. (Please Sign Here) X _______________________________________ Referred By:
_______________________________________
By signing this form, I agree to abide by the Association code of ethics including all bylaws that govern the Houston Auto Body Association.
OUR MISSION The Houston Auto Body Association is comprised of collision repairers devoted to the advancement of the collision repair industry. Our mission is to create an environment of professionalism, respect, accountability, excellence, enthusiasm and the ability to collect fair and reasonable compensation for collision repairers who properly restore vehicles to their safe pre-loss condition. 26 APRIL 2019 Texas Automotive
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