Texas Automotive October 2018

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October 2018 $5.95

The official publication of the Auto Body Association of Texas and the Houston Auto Body Association

OEM Blueprint Repair Plan vs.

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Contents

October 2018

ON THE COVER L to R: Larry Cernosek (Houston Auto Body Association), John Kopriva (Houston Auto Body Association), Todd Tracy, Kevin Jordan (Burl's Collision Center), Burl Richards (Auto Body Association of Texas/Burl's Collision Center), Jerry McNee (Ultimate Collision Repair), Donald "Trip" Springer (Burl's Collision Center). Photo by Joel Gausten

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

trade show

HIGHLIGHTS coverage begins on page 14

ABAT’s Texas Auto Body Trade Show Delivers OEM Parts Obliterate Aftermarket in Latest Todd Tracy Crash Test McDorman Explores the Value of OEM Repairs ABAT Welcomes Legislators for Pro-Consumer Discussion

DEPARTMENTS

6 An Amazing Time in Fort Worth 8 10 12 21 25 PRESIDENT’S MESSAGE By Burl Richards

EXECUTIVE DIRECTOR’S MESSAGE By Jill Tuggle

The Big Leagues

EDITOR’S MESSAGE By Joel Gausten

Crash Tests and Calf Fries

lEGAl PERSPECTIVE By Todd Tracy

A Defining Moment for Your Industry INDUSTRY ADVICE: ASK MIKE By Mike Anderson

What Does Nissan/Infiniti Say about Feather, Prime and Block?

ASK THE EXPERT By Robert L. McDorman

Chairman of the Board Corey Pigg S&W Expert Collision Repair coreyp@swcollision.com (936) 634-8361

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

Kelly Allen Kelly's Carthage Collision kjkcse@gmail.com (903) 693-2328

Robert McDorman Auto Claim Specialists rmcdorman@autoclaimspecialists.com (817) 756-5482

Chad Neal Innovative Collision Equipment Chadwneal@yahoo.com (817) 527-2143

Drew Miles Classic Toyota drew@myclassictoyota.com (903) 579-0655

Darren Davis Davis-Green Paint & Body Inc. darren.davis@davis-green.com (903) 581-0020

Eric McKenzie Park Place Dealerships emckenzie@parkplace.com (214) 443-8250

Dean Griffin Moritz Dealerships dean.griffin@moritzmail.com (817) 696-2000

Chad Kiffe Berli's Body & Fine Finishes chadk@berlisbody.com (512) 251-6136

Kevin Ellison Westway Ford kellison@vtaig.com (972) 584-9033

Mike Williams All Star Collision Center sales@allstarcollision.us (903) 589-3160

HABA BOARD OF DIRECTORS

President John Kopriva Kopriva Body Works tkopriva@koprivabodyworks.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: Michael Jackson / mjackson@grecopublishing.com CREATIVE DIRECTOR Lea Velocci / lea@grecopublishing.com EDITORIAL DIRECTOR Joel Gausten / joel@grecopublishing.com 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

“OEM Blueprint Repair Plan” vs. “Insurance Photo App Estimate” www.grecopublishing.com

ASSOCIATION NEWS 28 ABAT MEMBER PROFIlE

29 ABAT MEMBER APPlICATION

Southwest Autogroup Collision / Gilchrist Automotive

4 October 2018 Texas Automotive

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 © 2018 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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5 October 2018 Texas Automotive

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President’s Message An amazing time in fort worth A full inbox and telephone lines that won’t stop ringing usually aren’t things that make me happy when I have a shop full of cars, but I’m excited to be facing both as I take a break to do this message.

A

As I write this, it’s only been a few days since our 2018 Auto Body Trade Show, and my phone and email are blowing up with tremendous feedback from the hundreds who attended this special event at the Will Rogers Memorial Center.

We far exceeded our expectations for attendance, and all of our presenters did a stellar job of communicating with the collision repair professionals who joined us. Additionally, it was a big deal for us to have key Texas legislators present during the special panel discussion covered in this month’s issue, and we are thankful that they were there to gain knowledge about our issues and concerns. We asked them to help Texas consumers, and they listened to everything we had to say. It is our hope that tangible reform of the way things

are is right around the corner.

As always, Todd Tracy did a fantastic job getting his message and points heard. It was also incredible to see the legislators in attendance take in his words. Later, Todd, ABAT, the Houston Auto Body Association (HABA) and New Jersey shop owner Jerry McNee revealed the findings of a recent crash test performed on a Honda Fit repaired using only genuine Honda OEM parts and the automaker’s procedures.

Everyone who attended Todd’s presentation – including the legislators – walked away with a more thorough understanding of the dangers of using aftermarket replacement parts. You can read more about this special project – and what it means for our industry moving forward – in this issue.

If ABAT wants people to take time

Burl Richards ABAT President out of their weekends to attend an event like this, then it’s our job to deliver. Our goal with this year’s Trade Show was to provide information that would help our members and other attendees prosper in their businesses, and it’s been great to hear from so many folks that we achieved what we set out to do. Getting the word out about things that can improve our industry is a slow process, but I can’t help but feel that the folks who attended our Trade Show will now spread this message to others who need to hear it.

None of these accomplishments would have been possible without our sponsors and vendors. We can’t thank them enough for the outpouring of support they showed us throughout the weekend. I also want to thank HABA for working so closely with us in bettering the lives of collision repair safety experts in our state. And of course, there would not have been a 2018 Auto Body Trade Show in the first place without the tireless work of Janet Chaney (Cave Creek Business Development) and ABAT Executive Director Jill Tuggle. ese are exciting and inspiring times for ABAT. e brightest days for our association – and the community of professionals we serve – are still to come.

TXA ABAT Board member Eric McKenzie (left) with Darrell Denton (A&R Auto Body, Inc.) during the 2018 Texas Auto Body Show burl@burlscollision.com 6 October 2018 Texas Automotive

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PHONE: 732-495-7900 FAX: 732-495-7904 E-MAIL: bill@rae1.com www.raeservice.com VISIT US ON FACEBOOK www.facebook.com/ReliableAutomotiveEquipment

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Executive Director’s Message the big leagues Here at ABAT “HQ,” we are reeling with excitement over this year’s Trade Show!

I

It’s officially October in the South, and while social media is abuzz with thoughts of bonfires and crisp mornings, Mother Nature is showing no signs of relieving us of the heat! is is nothing out of the ordinary for us, of course, as we are fully accustomed to trick-ortreating in flip flops and standing in the blazing sun to root for our football teams.

Here at ABAT “HQ,” we are reeling with excitement over this year’s Trade Show!

I am very excited to report that our Trade Show was a solid success. We made quite the leap this year into what I keep referring to as the “big leagues.” As far as collision industry trade shows go, they come in all shapes and sizes around the country. We have graduated from the smaller, hotel-conference-room style to a full-on exhibit hall, which is something we are very proud of. e Trade Show included over 17 hours of education and more than 60 exhibitors!

Booth spaces ranged from 100-1,600 square feet. Some exhibitors brought their whole SEMA setup, and the floor was lookin’ good. e educational segments were very well-received, with attendees saying it was some of the best they’ve seen. Friday kicked off with management seminars on the new GM Certified Repair

Network, post-repair inspections, OEM recommendations, calibrations and a special panel to discuss OEM repairs, equipment and shop implementation. e crowd heard a special presentation of Mike Anderson’s “Who Pays for What?” Survey given by James Rodis of Woodhouse Collision and Dave Yard of the Nebraska Auto Body Association. ese messages were very powerful.

With the flood of information in our market, we need to hear it constantly.

On Saturday, we enjoyed breakfast and coffee with our exhibitors.

Education was held in the exhibit hall, and a large crowd gathered around for the legislative panel and Todd Tracy’s unforgettable presentation. Robert McDorman’s message about the disconnect between the Texas Department of Insurance’s codes and the way Texas policies are written was a great lead-in to our legislative panel. In addition to offering a shop perspective, the panel had representatives from Texas government and Texas Watch (a consumer advocacy group). e takeaway was that we need to support our legislators and they need to support us in return – and one cannot happen without the other. ere was representation from Democrats and Republicans alike, and ALL agreed that consumer safety was of utmost

Jill Tuggle ABAT Executive Director importance. It was refreshing to all be on the same side of an issue – especially when politics are involved. I urge you to find your local state representative and bring awareness to these issues in your area. Be on the lookout for what ABAT is doing at the Capitol and how we plan to support Rep. Travis Clardy’s run for Speaker of the House. A special fund has been set up for our legislative efforts; please reach out to us to donate.

Todd Tracy has never been one to sugarcoat things, and he delivered a direct message, as usual: It is our moral and legal obligation to fix cars properly.

He told shops that we MUST fix cars properly, even if it costs us money to do so. He also made it clear to the legislators that he believes shops shouldn’t be legally held liable if they are making safe and proper repairs according to OEM guidelines. Tracy has somewhat put the brakes on delivering his presentation around the US, as it seems the message is falling on deaf ears and shops have not stepped up and done something about their situation.

Can you blame him? Are you stepping up? Are you going to the training that is available to you?

If change is to happen, it will require much more effort from us all. I hope you will step up, step out and join us.

TXA

8 October 2018 Texas Automotive

jill@abat.com

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Editor’s Message Crash Tests and calf fries It is an absolute honor for me to write my first Editor’s Message for Texas Automotive.

A

A few months ago, ABAT and omas Greco Publishing, Inc. (TGP) joined forces to create this magazine to inform and inspire the Lone Star State’s collision repair community. Our first issue made its industry debut last month at the 2018 Auto Body Trade Show, which marked my first trip to Fort Worth to cover an event for the association. Like everyone else who attended, I became a more enthusiastic and educated industry participant through the experience.

I’ve been covering the national auto body field for 18 years now, and I can truthfully say that the education opportunities available at the Trade

Show were among the best I’ve ever encountered. ABAT excelled at providing its members with critical information that will help them navigate the industry changes occurring right now and those that will impact all of us down the road. Of course, Todd Tracy – who has already given me plenty to write about this year – supplied us all with tremendous insight into the undeniable importance of always using the right parts and following the correct repair procedures.

Some of the many topics and discussions that shaped this year’s Trade Show are featured in this issue and will also be explored in future editions of

Joel Gausten Editor Texas Automotive. e knowledge, material and ideas I received at this event are virtually endless.

I look forward to working with ABAT, its members and the entire Texas collision repair scene in making Texas Automotive the best publication possible. Please don’t hesitate to reach out to me if you have news to share or simply want to offer me your thoughts on our content and direction.

By the way, for those wondering…

Yes, I did take the Calf Fry Challenge at the Trade Show. Not bad, actually.

TXA joel@grecopublishing.com

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11 October 2018 Texas Automotive

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Legal Perspective

By Todd Tracy, Tracy Law Firm

A Defining moment for

your industry I recently had the pleasure of speaking at the Auto Body Association of Texas (ABAT)-hosted 2018 Auto Body Trade Show in Fort Worth, and I’d like to recap my observations. Before I start, it seemed like the unofficial theme for this convention was How to Protect Texas Families. is is such an important message, because it resonates with everyone no matter their politics, religion, race, color or creed. Everyone wants to protect their family members.

First, ABAT and its vendors put on an excellent convention. I was glad to see 30 percent more vendors than last year. Second, having the politicians and Ware Wendell, executive director of Texas Watch, on a panel was genius. e three representatives were overwhelmingly on your industry’s side because they realize that your members protect Texas vehicle owners, drivers and passengers. ird, getting Ware on your side will be critical when it comes time to pass vehicle repair legislation that will help protect Texas families. Fourth, ABAT and the Houston Auto Body Association (HABA) must stay on message and focus on protecting consumers. Your industry cannot win this battle by saying you deserve higher rates or that you are tired of having business steered away from your shops. All of your efforts need to remain focused on how your organizations protect families. Fifth, association members now realize that to protect these families, they are going to have to get engaged, get the customers engaged, keep the politicians and state agencies engaged and realize that social media is their friend.

It’s time to let the insurance industry know that your one and only concern is protecting lives. So, from this point forward, any communication you have with an adjustor, estimator or insurance representative must cc your customer, your local state representative and the head of the Texas Department of Insurance, and every email should start off like this: My shop and I will not allow your company to dictate repairs and material that will seriously injure or kill my customer and his/her family. ABAT and HABA have conducted detailed crash testing that demonstrates imitation parts dangerously degrade the safety of the vehicle.

So, how do ABAT and HABA protect Texas families? You repair vehicles morally, ethically and professionally. You do not allow the vehicle estimators, adjusters and carriers to dictate how you repair vehicles. You follow OEM repair methods. You follow I-CAR. You know that imitation parts are not LKQ. Your

How to Protect Texas Families is such an important message, because it resonates with everyone no matter their politics, religion, race, color or creed. Everyone wants to protect their family members.

“

continued on page 30

12 October 2018 Texas Automotive

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13 October 2018 Texas Automotive

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Cover Story

ABAT’s Texas Auto Body Show Delivers It was unlike anything the Texas auto body industry had experienced before.

On September 14 and 15, hundreds of Lone Star State automotive professionals gathered at the Will Rogers Memorial Center for the 2018 Texas Auto Body Trade Show. Hosted by ABAT, the two-day gathering boasted dozens of the field’s top vendors and some of the most in-depth education and discussions ever presented by a state association.

Considering that the much-discussed lawsuit against John Eagle occurred right in Texas, it was no surprise that the overall theme of this year’s Trade Show was the critical importance of following OEM procedures and using genuine parts. is concept drove a key presentation by Robert McDorman (Auto Claim Specialists), a consumer-focused panel discussion featuring three legislators, a discussion on calibration by Bram Paris and Jake Rodenroth of asTech and an OEM panel moderated by Roger Cada (Accountable Estimating) that featured representatives from Honda, Nissan, Precision Body & Paint, Hunter Engineering, Park Place, VeriFacts Automotive, Audi and Mercedes-Benz. Other

55 O v e r o ns ti Loca ve you r to se

presenters included attorney Todd Tracy, Jason Bartanen (I-CAR), James Rodis (Woodhouse Collision), Dave Yard (Nebraska Auto Body Association), Pete Tagliapietra (NuGen IT), Mark Olson (VECO Experts) and John Martin (Mitchell). e Trade Show concluded with the awarding of special raffle prizes generously donated by Innovative Collision Equipment, Wurth, Park Place, Westway Ford, English Color & Supply, ALLDATA, Intrepid Direct Insurance, J & J Paint Supply and CarO-Liner.

ABAT wishes to thank every presenter, vendor and attendee who made the event such a successful and unforgettable time. A very special thank you to the following Trade Show sponsors: Diamond-Level Sponsor – BASF, Platinum-Level Sponsors – Axalta, Capital Paint & Refinish, PPG, English Color & Supply LLC, Gold-Level Sponsor – Ford, Refreshment Break Sponsors – AkzoNobel, Intrepid Direct Insurance, National Coatings & Supplies, Sherwin-Williams Automotive Finishes and DeBeer Refinish.

TXA

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OEM Parts Obliterate Aftermarket in Latest Todd Tracy Crash Test

By Joel Gausten

Attorney Todd Tracy

Texas-based attorney Todd Tracy, known for his $42 million legal victory against John Eagle Collision in Dallas and his subsequent Honda Fit crash tests, has taken his fight against the use of unsafe aftermarket replacement parts to a new level.

On September 15 during the 2018 Texas Auto Body Trade Show in Fort Worth, Tracy, the Auto Body Association of Texas (ABAT), the Houston Auto Body Association (HABA) and New Jersey-based shop owner Jerry McNee (Ultimate Collision Repair; Edison) unveiled the results of a new crash test of a 2010 Honda Fit that was repaired according to OEM procedures using OEM parts. e test vehicle had never been in an accident but had various Honda OEM replacement parts installed at Burl’s Collision Center in Henderson, TX by technician Donald “Trip” Springer. Tracy had the same parts replaced with OEM as the parts he had replaced with aftermarket (or, in his words, “imitation”) versions in his previous crash testing. e crash test results revealed that the genuine parts performed exactly as intended to ensure passenger safety, while the previously crashed aftermarket partsinstalled vehicle produced results that Tracy called “total and massive destruction” in critical areas. For example, the driver left femur force on the aftermarket partsrepaired vehicle was 1700 N (newton) but

only 397 N (newton) on the vehicle repaired with genuine Honda OEM parts a “400 percent difference,” Tracy said.

Results of the latest crash test are available at https://goo.gl/epEdFh. “e biggest takeaway of this presentation is that we’re beginning to define what ‘like kind and quality’ means,” comments ABAT President and Burl’s Collision Center owner Burl Richards. “We now have scientific proof that shows vehicles are safer when they’re repaired using OEM parts and OEM procedures. We made major frontal repairs to this vehicle, and its crashworthiness held up and was exactly the same as a new OEM car.”

“Most professional repairers know that aftermarket parts are not the same as OEM parts,” adds McNee, who helped finance this most recent crash test performance at KARCO Engineering in California.

“However, insurers are willing to twist, turn and use the position statements incorrectly. ey make comments like, ‘It’s just a fender,’ ‘It’s in their policy’ and ‘LKQ parts are the same.’ ey’re dictating what they’re paying for to unjustly enrich themselves, but numbers and test results don’t lie. is OEM-repaired car fared exactly like the undamaged Honda Fit. When there is a 400-800 percent difference in the results between the OEM-repaired car, the aftermarket-repaired car and the improperly repaired car, it’s staggering. is could be the difference between broken bones, permanent injuries, life or death - or, in the Honda Fit case, people trapped helplessly

while their vehicle is on fire. Mr. Insurance Company, please tell me how these parts are the same and ‘like kind and quality.’ Show me the proof! Would you put your kids in an improperly repaired car? Do you feel lucky? Your odds are 400-800 percent.”

In addition to McNee, Burl’s Collision Center and HABA, financial contributors to the latest crash test include Dominic and Mario Martino of Gold Coast Auto Body in Chicago and John Mosley of Clinton Body Shop in Mississippi. e support of these facilities shows that the push to bring scientific clarity to the aftermarket parts issue is a nationwide collaborative effort.

Prior to the OEM-specific repairs, the undamaged Honda Fit was thoroughly inspected, measured on a frame machine and pre-repair scanned to check for preexisting codes. Once the work was completed, Burl’s Collision Center performed a post-repair scan to ensure that no codes were generated during the repair process.

Never one to mince words, Tracy offered some powerful food for thought during his presentation in Texas.

“By dictating improper vehicle repairs for decades, insurance companies have killed thousands of customers who were driving around in time bombs...Your industry has to work together with politicians and state agencies so that insurance companies stop jeopardizing family safety.”

TXA

l to R: larry Cernosek (Houston Auto Body Association), John Kopriva (Houston Auto Body Association), Todd Tracy, Burl Richards (Auto Body Association of Texas/Burl's Collision Center), Kevin Jordan (Burl's Collision Center) and Jerry McNee (Ultimate Collision Repair)

15 October 2018 Texas Automotive

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Cover Story McDorman Explores the Value of OEM Repairs “e enemy of a safe repair is the suppression of rates and the suppression of procedures.” at was just one of the hard-hitting statements made by Public Insurance Adjuster, ABAT Board member and Texas Automotive contributor Robert McDorman (Auto Claim Specialists) during his special presentation at the 2018 Texas Auto Body Trade Show. McDorman’s seminar detailed the insurance industry’s habit of improperly estimating vehicle damage and subsequently underpaying claims – and the need for shops to stand their ground against these practices. roughout his discussion, McDorman provided a variety of examples that illustrated the importance of properly written estimates. In one case, a 2014 Mercedes-Benz GLK350 was involved in a combination front- and rear-end collision. GEICO valued the vehicle at $23,690.82, with the company’s estimate totaling $15,518.42 ($10,718.23 front end and $4,800.19 rear).

However, these estimates were written for used and/or non-genuine Mercedes-Benz parts. McDorman (through Vehicle Value Experts) came to $20,131.49 ($15,331.30 front and $4,800.19 rear) for a proper OEM repair. GEICO threatened to total the car; however,

ABAT Welcomes Legislators for Pro-Consumer Discussion In an unprecedented move, ABAT hosted a consumer advocate and various state legislators for a special panel discussion during the 2018 Texas Auto Body Trade Show. e conversation focused on improper repairs, insurance industry control of the auto body field and the ABAT community’s efforts to address these and other concerns with the Texas Department of Insurance (TDI).

Panelist Ware Wendell, executive director of the consumer advocacy group Texas Watch (texaswatch.org), said his group first began working with ABAT after the recent John Eagle case revealed that two consumers were “cooked alive” in their vehicle due to an improper repair.

“We know the pain that y’all are going through in this industry.

As a consumer advocate, it concerns me greatly. If the job isn’t done safely and properly, that threatens people’s lives and their property.”

Rep. Travis Clardy (House District 11) noted the powerful impact that case – and attorney Todd Tracy’s ongoing efforts to bring attention to the dangers of non-OEM parts and procedures – has had on the repair facility/insurer relationship. “ere are policies of insurance which were written, regulated and approved by the Texas Department of Insurance that say, ‘You will replace parts with like kind and quality parts.’ I think Mr. Tracy

McDorman’s valuation for the vehicle (agreed upon with the insurer’s hired outside appraiser) was $32,500.00, which exceeded the proper repair cost by over 50 percent. As a result, the vehicle could not be legally totaled in Texas, and the car was eventually repaired to full OEM specifications at a certified Mercedes-Benz facility.

Robert McDorman “It’s an indemnity issue; what (Auto Claim Specialists) [insurance companies] owe is what they owe,” McDorman said. “How you hold them accountable is through education and documentation. If you don’t write it down, it didn’t happen.”

Additionally, McDorman stressed that shops have one true role in the repair process: To bring the vehicle back to pre-loss condition using manufacturer-approved procedures.

“If the shop takes the insurance company estimate and does not hold [the carrier] accountable against their own estimate and repairs that car exactly like the insurance company says to, who’s responsible?” he asked. “e shop,” replied several attendees.

TXA

has shown demonstrably that the repairs that are being made are not like or similar or of the same quality.”

Rep. Nicole Collier (House District 95) stressed that repairers – not insurers – are the definitive authorities in the repair process.

“You know what works for the vehicles you work on. You know what parts work in this vehicle; you know what people are better for this vehicle – just like a medical professional knows what parts work in our bodies. If a doctor is going to do heart surgery, they know what type of heart valve goes in there. No insurance carrier is going to tell that doctor which heart valve product they should use, so no insurance carrier should tell you which product you should have to put in. ey’re not the experts – you are.”

Rep. Giovanni Capriglione (House District 98) shared some of his past experiences as an auto repair consumer, admitting that he “just assumed that the right parts go in and it’s all done 100 percent right the way I expected it.” He added that he believes “the average consumer is not aware – and not made aware – of what exactly is going on in their car.”

Above all, Rep. Collier urged attendees to work with their local leaders to address the safety and legal issues surrounding the insurance industry’s influence over collision repair.

“Nothing gets our attention more than our constituents. You’re in our community; you vote. If you let us know, we’re going to listen to you.”

TXA

l to R: Ware Wendell (Texas Watch), Rep. Travis Clardy, Rep. Nicole Collier, Rep. Giovanni Capriglione, Robert McDorman (Auto Claim Specialists), Burl Richards (ABAT)

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SHOW HIGHLIGHTS

17 OCTOBER 2018 Texas Automotive

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20 October 2018 Texas Automotive

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Industry Advice: ASK MIKE What Does Nissan/Infiniti Say about Feather, Prime and Block?

This month, we “ASK MIKE” to update us on information he uncovered during his recent OEM webinar on Nissan/Infiniti.

We at Texas Automotive hope you find this following exchange useful, and we encourage you to reach out to us if you have a question for Mike on this or any industry-related matter that he can answer in a subsequent issue.

Texas Automotive: Your webinar on Nissan/Infiniti has earned a lot of attention - thanks in large part to your discussion on feather, prime and block.

Can you tell us a little about this webinar and the information it presented?

Mike Anderson: With the Nissan/Infiniti webinar, we had a lot of great content. ere was actually so much content that we had to do a Part Two, which is something we hadn’t done before with the other OEMs. at’s not because those OEMs don’t have a lot of good information; part of it was because we’re getting a lot more in-depth and we had a lot of questions. One of the things that we found in Part Two of going into Nissan/Infiniti’s repair procedures was a statement that talked about how you should not jump more than two grit sizes.

I was like, ‘Wow! at right there is feather, prime and block!’ It was a cool

hidden nugget that we found within the OEM repair procedures that got me very, very excited. Honestly, feather, prime and block has been around for a long time.

Any time I’m trying to get paid for something, I always stick to what I call my ‘four negotiation questions:’ Is it required?

Is it included?

Is there a pre-determined time?

If not, what is it worth?

Is feather, prime and block required?

First of all, the estimating systems say that body labor times for replacing a quarter panel are for you to finish off up to 150 grit for the body tech. en, they state that paint times are for new, undamaged panels, starting with 320 grit. One of the things that I found early in my career was that all the paint and abrasive manufacturers suggested that we should not jump more than two grit sizes. If you

21 October 2018 Texas Automotive

Mike Anderson is an Accredited Automotive Manager (AAM) and the former owner of Wagonwork Collision Centers, two highly acclaimed shops located in Alexandria, VA. He has served as a member of many industry organizations throughout his career, including the WMABA Board of Directors, the Mitchell Advisory Board, the MOTOR Advisory Board, the ASE Test Review Committee, the National Auto Body Council, the Collision Industry Conference and the Society of Collision Repair Specialists. Additionally, he is a past Virginia SkillsUSA chairman, serves as a facilitator for Axalta Coating Systems’ highly recognized Business Council 20 Groups in both the US and Canada and facilitates numerous courses for Axalta Coating Systems’ Educational Series. He currently offers expert industry consulting via his latest venture, Collision Advice (collisionadvice.com).

Texas Automotive_1018.qxp_Layout 1 10/1/18 3:30 PM Page 22

Industry Advice: ASK MIKE

“

At the end of the day, everything in our industry leads us to feather, prime and block. What I found very unique was that it was actually clearly stated in the Nissan/Infiniti repair procedures.

go from 150 to 220, 220 to 240, 240 to 280 and 280 to 320, that’s obviously more than two grit sizes. at’s what the late March Taylor termed ‘the gap,’ because there’s a gap between 150 and 320.

EPA language is the second thing to look at. When the EPA first came out with 6H Rule, I was involved with the Automotive Service Association’s Collision Operations Committee. I had the opportunity to be a part of that when

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the Rule was being crafted. One of the things that was stated was that the only person who could spray primer or any type of coating was someone who was HVLP [high volume, low pressure]-certified. e only recognizable training for that was through a paint manufacturer/distributor. Secondly, they stated that any of your applications – like basecoat, clear, primer, etcetera – need to be done in what was referred to as a ‘spray cabin.’ e 6H Rule very clearly defines what a ‘spray cabin’ is; it talks about how many walls you need to have, etcetera. If you look at the EPA’s language, the only person who can actually take and apply products that are used during the feather, prime and block process is going to be someone who is HVLP-certified. at happens through refinish training, so it’s definitely a refinish operation.

Everything in our industry points to feather, prime and block definitely being a not-included operation. In our ‘Who Pays for What?’ Surveys, we ask, ‘Who performs feather, prime and block in your facility?’ as well as, ‘How do you charge for it, and what type of time do you come up with?’ e majority of shops that have taken our Surveys have stated very clearly that they charge a percentage of the repair time. I’m not in any way suggesting that’s what somebody should charge, because that would be a violation of antitrust, but our Survey results very clearly show that.

Without naming any names, some insurers are saying, ‘Well, take it off the repair time,’ but you still have to be compensated for the materials on that. My question back to those insurers that suggest that is, ‘What about when you replace a quarter panel and you get 15.5 hours? ’ere’s no repair time included in that. Where are you going to include it in then?

At the end of the day, everything in our industry leads us to feather, prime and block. What I found very unique was that it was actually clearly stated in the Nissan/Infiniti repair procedures.

We also found a lot of other cool things in those Nissan/Infiniti procedures. For example, they have a symbol for one-time-use parts. It’s a black dot with a white x. at’s always going to be listed in the OEM repair procedures but not in the electronic parts catalog. at’s why it’s important that you research OEM repair procedures.

Mike Anderson’s OEM webinars are available on the Collision Advice YouTube channel (youtube.com/ collisionadvice).

TXA

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23 October OCTOBER 2018 Texas Automotive

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Ask the Expert

By Robert L. McDorman

“OEM Blueprint Repair Plan” vs.

“Insurance Photo App Estimate” Dear Mr. McDorman: I manage a collision facility in the Dallas-Fort Worth market. I am seeing more and more of our clients come to us after using an insurance photo app estimate process for their claim. On each of these claims, we perform a teardown to create a true and accurate blueprint repair plan based on the required OEM procedures and parts needed to restore the vehicle back to its pre-collision condition. These teardowns reveal a substantial difference between the required OEM blueprint and the insurance carrier’s photo app estimate. Do you see this as a common occurrence, or is it just an issue at our location? If this is a common occurrence, are there downsides for the claimant/insured to be aware of when using the insurance photo app estimate process to manage their collision claim and loss? is is a great question. You are not alone by any means, and there are indeed downsides for the claimant or insured when using the insurance photo app estimate process to manage their collision claim.

Last year, ABAT randomly selected several photo estimates from various insurance carriers and submitted them to the Texas Department of Insurance. A few of these photo app estimates revealed alarming trends, such as a 2015 BMW with five hours on the quarter and seven hours on the right rear door. In reality, this vehicle needed a quarter panel replacement and a right rear door shell. e photo app estimate total was $1,044.19 with a customer deductible of $1,000. e insured received a check for $44.19 after the $1,000 deductible, but the final repair amount to return the BMW back to its pre-loss OEM condition will be above $7,000 when completed. e photo app estimate contained the following note: Potential hidden damage. Please ask your repairer to inspect when your vehicle is brought in for repairs.

Clearly, even the photo app realizes it is impossible to write a safe and proper repair estimate without a thorough inspection. Safety is paramount; every collision-damaged vehicle should be inspected by a trained professional before being driven.

In our experience, the average photo app estimate we see in our office is grossly undervalued. is only considers clients who retain us to assist them in being made whole for their loss. ere are other claimants and insureds who utilize the insurance photo app estimate process and don’t have vehicles repaired for one reason or another. Instead, they pocket the funds. ere is no question they are not being made whole by accepting the photo app as the sole indicator of the loss settlement. Either scenario is clearly an indemnity issue. e damaging effect of the photo app is not solely limited to the lowballing of the repair estimate. As an example, an individual uses the photo app process for a liability claim, accepts the payment tendered from the insurance carrier for the estimate and has the funds direct-deposited into their checking account (or they cash the check). In most cases, this would preclude the claimant from going back to their carrier and filing the claim if the at-fault carrier isn’t willing to return the vehicle back to its pre-loss OEM condition. By the claimant being blocked from using their own insurance carrier to repair their vehicle if so needed or desired, their ability to invoke the appraisal provision in a contest of the proposed loss settlement is barred. e appraisal provision is a valuable tool for the insured when needed. e appraisal provision allows the insured to remove the inexperienced claim handler’s ability to mismanage the claim and undervalue the loss settlement and places the claim management in the hands of experienced professionals. When an insured is blocked from going back and filing the claim with their carrier, they could end up being under-indemnified by using the insurance photo app process.

25 October 2018 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 35plus 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) 756-5482 or rmcdorman@autoclaim specialists.com.

Texas Automotive_1018.qxp_Layout 1 10/1/18 3:30 PM Page 26

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Texas Automotive_1018.qxp_Layout 1 10/1/18 3:30 PM Page 27

LET US TURN THEM AROUND!

Ask the Expert As a Public Insurance Adjuster, I would strongly suggest to my clients that they not use the photo app process as a mechanism to manage and settle their loss. ere is no substitute for a physical inspection of the loss. In my professional opinion, the true, accurate and safe method to construct a proper OEM collision repair plan and identify the factual cost of said repair is to have a collision facility tear down the vehicle, inspect it and construct an OEM blueprint using the most current procedures and OEM replacement parts.

In closing, the claimant or insured should always place safety ahead of convenience. We have found the safest and most complete method known to man to identify a loss is the physical inspection of said loss.

I thank you for your question and look forward to any follow-up questions that may arise.

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Sincerely, Robert L. McDorman TXA

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ABAT Member Spotlight

By Alana Bonillo

Southwest Autogroup collision/gilchrist automotive For more than three decades, Gilchrist Automotive has been the name to seek out for exceptional customer service in North Texas. irty-one years ago, Charlie Gilchrist left an executive position at another dealership and started up his own Ford dealership, SouthWest Ford, which includes SouthWest AutoGroup Collision in Weatherford – or the “mothership,” as Manager “Ozzy” David Osburn calls it. Today, it is part of Gilchrist Automotive, a 10-location, multi-line dealer offering Chevrolet, Ford, Nissan, Volkswagen, Mitsubishi and Buick GMC. A 26-year industry veteran, Ozzy has been in his current position at SouthWest Autogroup Collision since 2015. Prior to coming on board at SouthWest, he worked for 23 years at a General Motors dealership.

In addition to maintaining a strong focus on I-CAR, Ozzy’s operation keeps up with OEM training for manufacturers including Nissan and Volkswagen. e shop is certified with Ford, Nissan and Volkswagen and recently became certified with Acura and Honda.

When asked what are among the biggest challenges in the industry today, Ozzy says there are still some manufacturers out there that do not provide position statements for scanning, which sometimes makes it difficult to find common ground with insurers.

“I wish those manufacturers would understand we need more ammunition to show insurance companies. e bottom line is even if that manufacturer does not have a position statement, the work needs to be done.”

Believing in transparency, he has made it a point to be vocal with his customers about what is going on with their carriers.

“We explain to the customer that the particular insurance company they’re dealing with most likely won’t do the right thing. ey aren’t going to figure in

L to R: Diane Buschman, Karl Polson, Candas Terry and David “Ozzy” Osburn of SouthWest Autogroup Collision/Gilchrist Automotive

OEM parts for their vehicle; they will most likely figure in salvage and aftermarket parts.”

Ozzy says customers should have the option to either pay the difference for new OEM parts or fight the insurance company.

“If it’s a case where the customer is dealing with a third-party insurance company, they could file with their own insurer to go up against them if they are not doing the right thing to fix the car properly. We inform our customers of diminished value and help them know what their options are. If their vehicle is being valued a total loss, we work with Vehicle Value Experts to optimize their settlement, because most times the insurance company will try to lowball the customer.”

With access to up-to-update information a critical factor in staying afloat in this business, Ozzy is an active member of ABAT and currently serves as treasurer. SouthWest is also a proud ABAT member shop.

“Our association is based around education. If you don’t visit with other folks in the industry, you won’t know what is happening.”

In this longtime auto body advocate’s mind, no one should think the shop down the street is the enemy.

“If you are having difficulty with a subject or an insurer, call the shop down the street and see if they are on the same page or having the same struggles so we can do something together. We are all in the same boat fighting pretty much the same fight.”

TXA 28 October 2018 Texas Automotive

Texas Automotive_1018.qxp_Layout 1 10/1/18 3:30 PM Page 29

Auto Body Association of Texas Membership Application Company Name:______________________________________________________________________ Primary Contact: _____________________________________________________________________ Position: ____________________________________________________________________________ Phone Number:________________________________ Direct Line/cell: ________________________ Email: _______________________________________________________________________________ Business address: ____________________________________________________________________ Years in Business: _____________ Website: _______________________________________________ ⃝ Full 2018-2019 Dues $500 – MSO $250 per shop ⃝ 2017-18 Affiliate Dues $500

Approved prorated first year dues: contact us for prorated amount*

*membership dues are owed in August of every year. By joining today, you will pay a prorated amount and then will owe the full $500 August 2019 Signature:__________________________________________________________Date: ____________ Please pay online at http://www.abat.us/join-abat/ or make checks payable to ABAT Please submit membership dues to: ABAT 1207 N. Frisco St. Henderson, TX 75652

Questions? Please contact Jill Tuggle at 817-899-0554 / jill@abat.us 29 October 2018 Texas Automotive

Texas Automotive_1018.qxp_Layout 1 10/1/18 3:54 PM Page 30

Legal Perspective continued from page 12 organizations have done extensive testing so that you would have engineering proof that imitation parts are not anywhere near the quality of OEM/genuine parts. In fact, there’s 387 percent variability in performance.

What can your members do to protect Texas families? Easy. Love your customer like you do your own family. When you go home at night, lay your head down and fall asleep knowing that no corners were cut. Be ready to stand up to that adjuster, estimator or carrier that says imitation parts are like, kind and quality to OEM/genuine parts. Call them out and demand to see their real-world crash testing. Show them your organizations’ real-world crash testing that was based on engineering, science and physics. e men and women who attended the 2018 Texas Auto Body Trade Show are on the frontline of safety, and the public needs them standing up to insurance companies that want to put their profit over protecting Texas families. Making a profit is fine, but when that profit comes at the expense of destroying a Texas family, profit needs to wait. is is a defining moment for your industry. You can either get in the arena and fight – where your face will get marred by dirt, dust and blood and where you will come up short time and time again – or you can sit by and do nothing and let the insurers kill and maim Texas families. Since you are in the business of saving lives, it’s time to start acting like a hero. ere are too many angels in Heaven who died in vehicle accidents because insurers dictated unsafe repairs and demanded that inferior material be used. is is the time for American heroes. You will do what is hard. You will achieve what is great.

And together, you will protect Texans one family at a time.

TXA

30 October 2018 Texas Automotive

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