October 2012 Great Lakes Edition by Autobody News

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The Collision Associations Serving Ohio Shops by David M. Brown

In Ohio collision-repair facilities and vendors are represented by two associations: the Choice Autobody Repair Association and ASA-Ohio. In 2005, CARA, a nonprofit collision repair association, was formed in Cadiz in eastern Ohio. CARA represents approximately 50 body shops in various cities throughout the state. Members include former members from the disbanded Ohio Collision Repair Association and the Ohio Bodyshop Owners Association. “There were five shop owners who felt it was necessary to help educate consumers on their rights con-

cerning collision repairs, which led to the formation of CARA,” says Rick Finney, president of the association and owner of Finney Automotive Inc. and Finney Tire LLC, both in Cadiz. Finney felt that “too many companies in the insurance industry were steering consumers to specified repair facilities. Consumers needed to be made aware that they have the right to have their vehicle repaired at the shop of their choice.” “CARA does a great deal of consumer awareness but has no interest in promoting its own members shops through the association,” he says, adding: “We believe a well-educated See Ohio Associations, Page 38

ASA MI Hosts Webinar: Where’s the Work? Identifying Market Changes from 2007–2011 gan for auto insurance, but we could not inform our membership exactly by what volume nor did we know where the other carriers have placed, so we immediately worked Ray Fisher with reports from the State of Michigan, Office of Finance and Insurance Regulations (OFIR) and created this very informative and well received webinar addressing those questions,” Fisher said. The agenda for the webinar was See ASA MI Webinar, Page 20

Change Service Requested

P.O. BOX 1516, CARLSBAD, CA 92018

ASA Michigan hosted on Sept. 5 an exclusive collision member webinar titled Where’s the Work?—Identifying Market Changes from 2007–2011. “A couple of months ago we hosted a very informative meeting about the State Farm PartsTrader pilot program and realized that an important piece of information was missing for our members—market share and complaint ratios of the various insurance companies here in Michigan,” stated Ray Fisher, President of ASA Michigan. “As this new business model is being piloted, we knew that State Farm was the largest insurer in Michi-

VOL. 1 ISSUE 2 OCTOBER 2012

PartsTrader will Come to Chicago Market’s 450 State Farm Select Service Shops in December State Farm Insurance is planning to expand its Web-based parts procurement pilot through PartsTrader in Chicago, Dick Luedke, media relations specialist for State Farm, said Sept. 14. Luedke said State Farm’s Select Service shops in Chicago will begin using the program in December. A specific date has not yet been set. That means the program will be required in five U.S. markets, including Chicago; Tucson, AZ; Grand Rapids, MI; Charlotte, NC; and Birmingham, AL. About 600 State Farm Select Service shops exist throughout those five markets. State Farm selected Chicago as the next location for its pilot due to the city’s size, which will allow the company to test the program on a larger scale, Luedke said. Roughly 450 Select Service shops exist in Chicago,

while the other four markets where the pilot is currently active have about 150 participating shops combined, less those who dropped the program. “The reason we’re doing this is because that market is such a big metropolitan area. We want to test the scale and technology of the program in a larger metropolitan area,” Luedke said. “That allows us to scale the program and the technology in that unique environment. Obviously, Tucson and Birmingham are good size metropolitan areas, but Chicago is much larger so we want to do it there.” Luedke said State Farm does not currently have plans to launch the PartsTrader pilot in any other markets. State Farm has said its PartsTrader process should improve part availability, process efficiency, order accuracy and create a better experience for customers.

According to the Oak Ridge National Laboratory, a 10% reduction in vehicle mass increases fuel efficiency by 7% on average, so it’s clear what advantages lighter weight and stronger materials can bring to future vehicles. As the automotive industry absorbs CAFE regulations and consumer desire for fuel efficient cars, the goal of mass reduction has enabled some startling improvements in production time and costs for carbon fiber. Carbon fiber is emerging as a practical and cost-competitive alternative for mid-volume production cars, previously used only in exclusive lowvolume vehicles like the Corvette ZR1 pictured . Plasan Carbon Composites based in VT and owned by Plasan Sasa, an Israeli defense contractor, will be producing carbon panels for a midvolume production vehicle as early as January 2013 from its locations in Western Michigan. This means that by

early 2013, body shops could be tasked with carbon fiber repairs. “It will be the first time that carbon fiber has been used this extensively

Carbon Fiber Advances Enable Mid-Volume Production Vehicles from MI Factory by 2013

on a base production car anywhere in the world,” said Gary Lownsdale, Chief Technology Officer of Plasan Carbon Composites. The key enabler for this up to 50,000-units-per-year vehicle application is Plasan’s patented Pressure Press processing technology. A secrecy agreement prevents Plasan officials from naming the veSee Carbon Fiber, Page 18

Presorted Standard US Postage PAID San Bernardino, CA Permit #2244

2 OCTOBER 2012 AUTOBODY NEWS | www.autobodynews.com

COLUMNISTS Attanasio: What You Don’t Know about SEO Can Cost You . . . . . . . . . . . . . . . . 24 Evans: Building Body Molds from Plugs is No Easy Task . . . . . . . . . . . . . . . . . . 52 Franklin: Information Mining for Profit. . . . 36 Sisk: DuPont Performance Coatings, A Big Change but Much Stays in Place . . . . . 54 Sisk: Micro Group Covers Greater Detroit To Toledo. . . . . . . . . . . . . . . . . . . . . . . 26 Sisk: What Other Associations Are Doing and Have Done Recently . . . . . . . . . . . 50 Williams: Honda Superstore of Lisle, IL— Professional and Friendly . . . . . . . . . . . 16 Yoswick: Shops Can Put News, Trends Related to Insurers to Good Use. . . . . . 40

NATIONAL 2012 SEMA Show Provides Expansive Activities for Collision Repair Professionals. . . . . . . . . . . . . . . . . . . . 43 A Little Piece of ‘57 Chevy Blue Heaven to Debut at SEMA . . . . . . . . . . . . . . . . 32 AAIA Releases 2012 Digital Repair Trends Report . . . . . . . . . . . . . . . . . . . 13 AASP-MA and CCRE to Host Educational Seminars . . . . . . . . . . . . . . . . . . . . . . . 49 AASP-MA Talked Parts Procurement at State Meeting . . . . . . . . . . . . . . . . . . . 42 ASA Issues Timeline for State Farm to Prove PartsTrader Benefit. . . . . . . . . . . 48 ASA Speaks with NWLCRA Regarding PartsTrader Pilot . . . . . . . . . . . . . . . . . 47 ASRW Adds Auto Body Repairers Assembly Oct. 10 . . . . . . . . . . . . . . . . 48 ASRW Announces Content, Speakers for Industry Forum, Oct. 12 . . . . . . . . . . . . 35 ASRW Hosts 2nd Annual MSO Symposium Oct. 12. . . . . . . . . . . . . . . 49 Automaker, OEM and Recall News . . . . . . 30 Body Shop Move Enforced by Judge for PA Route 29 Expansion . . . . . . . . . . . . 44 CAA Sends Legislative Alert and Call to Action . . . . . . . . . . . . . . . . . . . . . . . 13 Carbon Fiber Advances Enable Mid-Volume Production Vehicles from MI Factory by 2013. . . . . . . . . . . . . . . . . . . . . . . . . 1 Carlyle to Buy DuPont’s Auto Paint Business for Nearly $5 Billion . . . . . . . . . . . . . . . 55 Connecticut Association Voices Alarm About PartsTrader . . . . . . . . . . . . . . . . 45 CREF Offers Free Industry Classes for Students at NACE . . . . . . . . . . . . . . . . 42 CREF Reception at SEMA Invites All with RSVP . . . . . . . . . . . . . . . . . . . . . . 33 Go Where Your Customers Are—You’ll Find Them Online. . . . . . . . . . . . . . . . . 19 Gunder’s Has 15 Insurers Paying New Labor Rate. . . . . . . . . . . . . . . . . . . . . . 34 Hertz Buys Dollar Thrifty . . . . . . . . . . . . . 20 Is New Vehicle Technology Endangering Your Business? . . . . . . . . . . . . . . . . . . 51 Mississippi Collision Repair Association Plans to Expand to the North and South. 34 Mitchell’s Industry Trends Report: Auto Physical Damage Edition . . . . . . . . . . . . 8 NABA Announces Survey Results . . . . . . 36 New IIHS Test Aims to Improve Frontal Collision . . . . . . . . . . . . . . . . . . . . . . . 41 NJ Shop Owner Goes Round and Round with State Farm on Material Reimbursements . . . . . . . . . . . . . . . . . 13 Rich Evans’ SEMA Appearance Schedule . 53 SCRS Presents International Perspective on Parts Procurement . . . . . . . . . . . . . 31 Service King Gives $10,000 for Student Scholarships . . . . . . . . . . . . . . . . . . . . 51 Shop Owner Nets $3.4 Million in Paint Contract Lawsuit . . . . . . . . . . . . . . . . . 46 Shop That Helped Bullied Teen Inspired to Start a New ‘Pay it Forward’ Program. . 55 Van Tuyl Group Joins NABC as New Diamond Member . . . . . . . . . . . . . . . . 47 WMABA Hosted PartsTrader Meetings in Two Locations . . . . . . . . . . . . . . . . . 43

We’ll pass the information along in future issues.

PartsTrader Updates in this Issue Pages 1, 4, 31, 42, 43, 45, 47, 48

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Melanie Anderson Contributing Writers: Tom Franklin, John Yoswick, Janet Chaney, Toby Chess, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman, Jay Lukes (800) 699-8251 Sales Assistant: Kristy Navarro Art Director: Rodolfo Garcia

Great Lakes

REGIONAL ASA MI Hosts Webinar: Where’s the Work? Identifying Market Changes from 2007–2011 . . . . . . . . . . . . . . . . . . . . . 1 ASA-Michigan to Host ‘theEvent’ on October 6 . . . . . . . . . . . . . . . . . . . . . . 16 BASF Hires New Distribution Services Manager in MI . . . . . . . . . . . . . . . . . . . . 4 CARA Partners with Collision Billing Services to Help Repairers Get Full Payment from Insurers. . . . . . . . . . . . . . 9 Church Brothers Collision Donate to Concord Center . . . . . . . . . . . . . . . . . . 10 Connected Vehicle Project in MI Involves 3000 Vehicles . . . . . . . . . . . . . . . . . . . . 6 Cupola Classic Car Show Held in Johnstown, Ohio . . . . . . . . . . . . . . . . . . 9 Fire Destroys Firefighter’s Auto Mechanic Shop . . . . . . . . . . . . . . . . . . . 6 Grand Rapids Body Shop Burns; 15 Fire Trucks Respond, but it’s a Total Loss . . 51 IA Freeway Deaths Increase . . . . . . . . . . . . 4 Illinois Body Shop Has Own Vehicle Charging Station . . . . . . . . . . . . . . . . . . 6 Illinois Law Extends Tax Breaks for Enterprise Zones . . . . . . . . . . . . . . . . . . 4 Illinois Shop Breaks Ground on New $1 Million Facility. . . . . . . . . . . . . . . . . . 4 Ken’s Auto Body’s Rainbarrels . . . . . . . . . . 4 Michigan Dealership Owner Retires, Thanks his Employees with Cash Gifts . 10 Nagy’s Collision Specialists Adds 7th Ohio Body Shop. . . . . . . . . . . . . . . . 4 OH Industrial Site Cleanup . . . . . . . . . . . . . 4 Ohio Collision Repair Program Seeking $50,000 Ultimate Collision Education Makeover Grant . . . . . . . . . . . . . . . . . . 10 Ohio is Middle Ranked in Competiveness vs. Country . . . . . . . . . . . . . . . . . . . . . . 6 PartsTrader Meetings in OH . . . . . . . . . . . . 4 PartsTrader will Come to Chicago Market’s 450 State Farm Select Service Shops in December . . . . . . . . . . . . . . . . . . . . . 1 Sherwin-Williams Offers Estimating Solutions Class . . . . . . . . . . . . . . . . . . . 9 The Collision Associations Serving Ohio Shops . . . . . . . . . . . . . . . . . . . . . . 1 WI Shop Owner Gets 7 Years for Shooting Customer’s Leg . . . . . . . . . . . . . . . . . . 13 Widowed Mom Gets Car from Dieterich, IL Body Shop. . . . . . . . . . . . . . . . . . . . . . . 6 Wisconsin KIA Gets Body Shop Upgrade, Plans Hiring . . . . . . . . . . . . . . . . . . . . . . 6

Autobody News wants to know what readers in Michigan, Illinois, Indiana, Ohio and Wisconsin have to say about the industry in your region. Stop by our booth (#N924) at ASRW (NACE-CARS) during the Expo and tell us!

Indexof Advertisers

Contents

Serving Illinois, Indiana, Michigan, Ohio, Wisconsin and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2012 Adamantine Media LLC.

Autobody News

Box 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com

Auto Data Labels. . . . . . . . . . . . . . . . 7 BASF . . . . . . . . . . . . . . . . . . . . . . . . . 5 BMW Wholesale Parts Dealers . . . . 49 Brunswick Auto Mart . . . . . . . . . 14-15 BSFco . . . . . . . . . . . . . . . . . . . . . . . 41 Chief Automotive. . . . . . . . . . . . . . . . 9 Classifieds. . . . . . . . . . . . . . . . . . . . 55 Dent Tools Direct USA . . . . . . . . . . 22 Eidos Ergonomics . . . . . . . . . . . . . . 4 Equalizer . . . . . . . . . . . . . . . . . . . . . 24 Erhard BMW of Bloomfield Hills . . . 20 Erhard BMW of Farmington Hills . . 20 Extractor . . . . . . . . . . . . . . . . . . . . . 31 Firl Industries, Inc . . . . . . . . . . . . . . 40 Ford Wholesale Parts Dealers . . . . 53 Garmat . . . . . . . . . . . . . . . . . . . . . . 10 GM Wholesale Parts Dealers . . . . . 54 H & S Autoshot . . . . . . . . . . . . . . . . 38 Haydell . . . . . . . . . . . . . . . . . . . . . . 42 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 28-29 Hyundai Wholesale Parts Dealers . 43 Infiniti of Lisle . . . . . . . . . . . . . . . . . 32 Intertape Polymer Group . . . . . . . . 27 Jack Phelan Dodge of Countryside. 39 K & M Suzuki. . . . . . . . . . . . . . . . . . . 6 Laurel Auto Group of Westmont . . . 23 Lexus Wholesale Parts Dealers . . . 51

Malco. . . . . . . . . . . . . . . . . . . . . . . . 13 Mattei. . . . . . . . . . . . . . . . . . . . . . . . 18 Mazda Wholesale Parts Dealers . . . 50 Milosch’s Palace Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . . 21 Mitchell International. . . . . . . . . . . . . 8 Mitsubishi Wholesale Parts Dealers. 48 MOPAR Wholesale Parts Dealers . . 37 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 45 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Preval . . . . . . . . . . . . . . . . . . . . . . . 34 Rare Parts, Inc. . . . . . . . . . . . . . . . . 16 Reliable Automotive Equipment . . . 35 Rick Case Wholesale Parts Division. 25 SATA Spray Equipment . . . . . . . . . 33 Scion Wholesale Parts Dealers. . . . 45 Solution Finish . . . . . . . . . . . . . . . . 52 Star-A-Liner . . . . . . . . . . . . . . . . . . . 56 Subaru Wholesale Parts Dealers . . 44 Summit Software Solutions, Inc . . . 19 Toyota of Grand Rapids . . . . . . . . . 36 Toyota Wholesale Parts Dealers . . . 47 Valspar Automotive . . . . . . . . . . . . . 11 Van Horn Hyundai-Mazda. . . . . . . . 12 Volkswagen Wholesale Parts Dealers. 46 Wanda Refinish . . . . . . . . . . . . . . . . 17

www.autobodynews.com | OCTOBER 2012 AUTOBODY NEWS 3

Nagy’s Collision Specialists Adds 7th Ohio Body Shop

BASF Hires New Distribution Services Manager in MI

Nagy’s Collision Specialists has expanded to seven locations in Ohio with the addition of collision repair facility at Doug Chevrolet in Akron. “We're very excited for this partnership with Doug Chevrolet and moving into the Summit County area,” said Ron Nagy, president of Nagy’s. Vice President Dan Nagy said, “Customers have been asking for us to expand into this market for a long time now, so when we were approached by Doug Chevrolet, it was a win-win for both of us.” Nagy’s employs 34 I-CARtrained and ASE-certified technicians and is a member of the Automotive Service Association (ASA). Ron and Dan Nagy are both ASE Master Collision repairers and hold the I-CAR Platinum qualification as well as the AAM (Accredited Automotive Manager) designation from the Automotive Management Institute (AMI) in Bedford, Texas. Nagy’s offers services such as AutoWatch, where customers can view their cars being repaired online, and e-Estimates that allow customers to get estimates at their homes or offices.

BASF announced that Karen Broccardo has joined the Automotive Refinish Business group as Distribution Services Manager. She will be located in Southfield, MI. According to Chuck Soeder, Vice President, Automotive Refinish and Industrial Coatings Solutions, Broccardo will be responsible for sales forecasting, sales compensation administration, Karen Broccardo ColorSource Distribution administration, Customer Relationship Management Tools, and sales history and data administration. Prior to joining BASF, she was the Sales Operations Specialist for Ricardo in Van Buren Township, MI, where she was responsible for all sales forecasting in the U.S. and was part of the global SAP implementation team. Broccardo has a bachelor’s degree in Business Administration from Western Michigan University in Kalamazoo, MI.

Illinois Law Extends Tax Breaks for Enterprise Zones

Illinois Shop Breaks Ground on New $1 Million Facility

Gov. Pat Quinn extended Illinois’ longstanding tax incentive program for businesses in enterprise zones, saying it plays a key role in creating jobs in the state. The law, which took effect immediately, extended the program that began in 1982 for 25 years. It essentially gives businesses within the designated areas tax breaks, including an exemption on the retailers’ occupation tax paid on building materials and a tax credit for jobs created. “We have to have an economic climate in our state that’s predictable and certain and allows for major investment by big employers and not-sobig employers… they need certainty if they are going to make investments,” Quinn said at the Ford Motor Co. plant in Chicago. The move comes as Illinois faces continual economic image problems: billions in unpaid bills, a grossly underfunded pension system and public campaigns to attract business to the state. Illinois has 97 enterprise zones, which had been set to expire next year.

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A longtime Bloomington, IL, body repair shop has broken ground on a new $1 million facility. Bob Zook Auto Body expects to move into its new facility in Bloomington by April, said company President Bryan Caldwell. Business will continue at its current location until the new building is complete. “We are excited by the growth and opportunities the new facility will bring,” said Caldwell, who has worked for the company for nearly three decades. The new 12,750-square-foot building will allow the shop to expand its services. A new mechanical department will handle suspension and wheel repairs and alignments related to collisions, said Caldwell. Zook Auto Body now offers collision repair, auto detailing and rental car assistance. The new building will incorporate green technology. The expansion also will allow the shop to expand its labor force, going from nine employees to at least 14 in the new facility. Caldwell said the business has built its reputation over more than 40 years. The new location will make it easy for longtime customers to reach the shop for repairs, he said.

4 OCTOBER 2012 AUTOBODY NEWS | www.autobodynews.com

IA Freeway Deaths Increase

Iowa state records suggest higher interstate speeds have proved fatal for more motorists. The Des Moines Register reports that rural interstate fatalities are up about 10 percent since the speed limit was raised to 70 mph from 65 mph. Iowa records show 250 people were fatally injured on the rural interstate system between July 1, 2005, and Dec. 31, 2011. The figure was 227 fatalities for the 6-1/2 years before the limit was raised. Traffic deaths on other Iowa highways and roads dropped last year to the lowest level since World War II.

PartsTrader Meetings in OH

The Automotive Service Association of Ohio (ASA-Ohio) hosted two meetings to discuss State Farm’s parts procurement pilot through PartsTrader. The meetings were led by Denise Caspersen, collision division manager for ASA National. Joe Sanfillipo, president of ASA-Ohio, and Ron Nagy, chairman of ASA National, were also present. The first meeting, sponsored by LKQ/Keystone, was held Sept. 18 in Cleveland. The second meeting, sponsored by Lindale Auto Parts, was held Sept. 19 in Cincinnati.

OH Industrial Site Cleanup

The Ohio Department of Develophas awarded funds to an Oakley industrial site that needs an environmental cleanup. The Cincinnati Business Courier reported that the site will get a $404,000 loan for environmental cleanup. The former CNW Plating 3.4-acre site is less than a mile from Interstate 71. Cleanup is expected to be completed by January 2013. Another project awarded funds is the former Coe Manufacturing facility in Painesville. It will receive $325,000 for an environmental assessment, according to the department.

Ken’s Auto Body’s Rainbarrels

Ken Zwolinski, owner of Ken’s Auto Body in Troy Township, OH, spray paints rain barrels with a clear coat sealant at his shop in efforts to contribute to water conservation. Ken began donating this service to the Geauga Soil and Water Conservation District’s Rain Barrel Yard Art Campaign four years ago when his daughter, Taryn Zwolinski, painted her first barrel for the project. The District has expressed appreciation for the Zwolinski family’s dedication to water conservation and community education!

www.autobodynews.com | OCTOBER 2012 AUTOBODY NEWS 5

Wisconsin KIA Gets Body Shop Upgrade, Plans Hiring

Ohio is Middle Ranked in Competiveness vs Country

Russ Darrow KIA of Appleton, WI, announced that it has moved to a new location and renovated its facility, which includes an in-house, state-ofthe-art collision repair shop. The body shop will feature a heated downdraft paint booth, prep stations and use DuPont waterborne paint. It will be capable of repairing up to 10 vehicles at once, and “Signature Service” will feature free loaner cars, insurance claims service and a lifetime workmanship warranty. The renovation and relocation took place to meet demand for more inventory and more service capacity in the Fox Valley, according to Mike Darrow, president of Russ Darrow Group. The new facility covers more than 23,000-square-feet situated on nearly four acres and will feature 16 service and two quick-lube bays, an expansive showroom and double the parking space of the previous location. “We believe in the economy of the State of Wisconsin and the economy of the Fox Valley,” said Darrow. “We expect to hire 10 new people right away and an additional 20 to 25 employees by the end of this year.”

Ohio sits squarely in the middle when it comes to the best states in which to do business. The Buckeye State ranks No. 25 in a new report from CNBC. The report scores all 50 states amid 51 areas of competitiveness, which includes advice from groups such as the National Association of Manufacturers and the Council on Competitiveness. The 51 areas are sorted into 10 categories: cost of doing business, quality of the work force, quality of life, overall economy, transportation and infrastructure, technology and innovation, education, business friendliness, access to capital and cost of living. Ohio received high marks in cost of living (No. six in the U.S.) and ranked No. 10 in infrastructure and transportation. However, the state received poor marks when it came to workforce (No. 49) and quality of life (No. 44). Texas was named the top state for business on CNBC’s list, while Rhode Island was last at No. 50.

Connected Vehicle Project in MI Involves 3000 Vehicles

Widowed Mom Gets Car from Dieterich, IL Body Shop

University of Michigan Transportation Research Institute (UMTRI) researchers and the U.S. Department of Transportation launched a year-long test being conducted in Ann Arbor of a wireless communications system designed to improve vehicle safety. UMTRI researchers now are recruiting and outfitting up to 3,000 private cars, trucks and buses with wireless devices that communicate with each other and similar devices located at intersections, curves and freeway sites in northeast Ann Arbor. By communicating such data as position and speed, the “connected vehicle” system can alert drivers to potential crash situations, such as a sudden lane change, merging traffic or sudden braking in the lane ahead. The research requires installation of wireless devices to: test connected vehicle operations in real-world conditions; understand how regular drivers use connected vehicle technologies; and determine the safety benefits of a connected vehicle. The data generated and archived as part of the $22 million project will be used to inform future policy decisions by the USDOT.

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A widowed, single mother from Wheeler, IL, won a red 1999 Chrysler Town and Country from Probst Auto Body of Dieterich, IL, as part of a national program called Wheels to Prosper. “Getting that car lifted a huge financial burden,” Debra Whitehurst said. “It truly was the answer to my prayers.” The Wheels to Prosper initiative, sponsored by local dealerships or repair shops, gives cars to ‘worthy and deserving’ individuals from their communities. The cars are fully serviced before they are given away. “I felt really blessed to do this,” said Mark Probst of Probst Auto Body, who was taking part in the program for the first time. “It was so amazing to see the joy on her face and to know that we were really giving back to the community.” Probst Auto Body had purchased the vehicle wrecked and had repaired it to use as a temporary loaner car for customers. Probst said that giving the car away was more meaningful than what they had originally been using it for. Whitehurst said getting the car changed her life.

6 OCTOBER 2012 AUTOBODY NEWS | www.autobodynews.com

Illinois Body Shop Has Own Vehicle Charging Station

A Galesburg, IL, body shop owner recently installed an electric vehicle charging station that he says customers and local residents can use. The station is one way to go green, and also get more people into his shop. Dave’s Auto Body owner Dave Dunn is offering service to anyone who needs to charge their vehicle, but especially to those who might need work done there, too. “Primarily, I see it as a marketing tool for Galesburg and also for our company, Dave’s Auto Body,” Dunn said. Another need for the charging station is due to the Nissan Leaf in their rental fleet. “It’s stunning,” Dunn said. “I had a lot of people who were pretty hesitant or skeptical here at Dave’s. Now, people are kind of fighting for it. ‘Hey, can I drive the electric car to go do this errand?’ It’s really fun to drive, and it’s quite luxurious, surprisingly.” There are no other electric vehicle charging stations in the immediate area, which had local tourism officials expressing interest in Dave Dunn’s efforts, too.

Fire Destroys Firefighter’s Auto Mechanic Shop

A fire destroyed an auto mechanic shop on Aug. 25 in Maple, WI. The shop is owned by one of the city’s fire fighters. Maple Fire Chief Michael Lundeen says the fire fighters responded around 10:30 p.m. When they arrived on scene, they found half of the building engulfed in flames. The chief says it took about 20 minutes to get the fire under control. Lundeen says the Maple fire fighter who owns the building responded to the call and helped put the fire out. Lundeen says he used the building mostly for personal use, and a little bit of business. “I’m pretty heart broken for him, especially when his father just passed away, and we were at his funeral this morning, and then this happened. It’s kind of a double whammy for him,” said Lundeen. Lundeen estimates the building to have $80,000 of damage. There were also several tools inside. The cause of the fire is still under investigation.

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Mitchell’s Industry Trends Report: Auto Physical Damage Edition by Greg Horn, Vice President of Industry Relations, Mitchell International Special to Autobody News

In this issue’s feature article, I updated the Mitchell Collision Parts

Price Index and touched on how it is affecting severity. In the charts of the Industry Trends Report, you will see that when the development factor is applied to the most recent average repairable collision severity, it is once again above $3,000. I wanted to give additional insight and data to my most engaged readers to help you better under-

Avg Parts Dollars

$1,400 $1,200 $1,000 $800 $600 $400 $200 $0 2011Q1

$16,000 $14,598

$14,380

$12,000

$13,788

$13,560

$13,205 $12,698

$10,000 $8,000 $6,000 $4,000 $3,038/

$2,000

$3,001

$2,851

$3,031

$2,866

$3,087

$2,910

$0 Avg. Veh Age

Q4 2009 6.34

Q2 2010 6.22

Q4 2010 6.62

Q2 2011 6.50

* Values provided from Guidebook benchmark averages, furnished through UltraMate.

8 OCTOBER 2012 AUTOBODY NEWS | www.autobodynews.com

Q4 2011 6.92 Appraisals

Avg Paint and Materials

$1,600

Average Appraisal Values, ACVs and Age | Collision Coverage*

$14,000

Avg Labor Dollars

Q2 2012 6.81 ACV’s

2011Q2

stand what is changing the environment. As you will note in the chart (left), the average parts dollar spent is the highest inflationary factor in the increase, with only a mild labor dollars increase. Therefore, we can conclude that the root of the overall severity increase is parts price inflation. Additionally, we are seeing an interesting development in the average age of vehicles being appraised. While the whole-

2011Q3

2011Q4

2012Q1

sale auction houses show a softening of prices (and we associate a lowering of used car value with an increase in total loss percentages), we are seeing a slightly newer car with a slightly higher value being appraised across all coverage types. This phenomenon seems to indicate that we won’t be seeing rapid decline in values and therefore should not see an increase in the percentage of vehicles being appraised marked as totals. For more information about Mitchell and their Industry Trends Reports, go to: www.mitchell.com.

Sherwin-Williams Offers Estimating Solutions Class

Sherwin-Williams Automotive Finishes has announced its Warrensville (Cleveland), OH headquarters will host its next A-Plus™ Network University EcoLean™ Suite of Training Course Offerings, featuring its ‘Estimating Solutions for Profit’ on Sept. 27. Designed to meet the challenges collision repair facilities face in today’s economic climate, participants in the innovative ‘Estimating Solutions for Profit’ workshop will learn how to close more sales and increase business at the front end of the body shop. The program is targeted at collision repair facility owners, managers, estimators and customer service representatives who are interested in improving their closing ratio and creating loyal customers. ‘Estimating Solutions for Profit’ focuses on three critical profit areas of importance to a successful collision facility: Improving customer service; Increasing selling skills; Developing advanced estimating accuracy. To register online, go to www.sherwin-automotive.com/en/Events.aspx. For more information on the A-Plus Network, call (800) 386-3881.

Cupola Classic Car Show Held in Johnstown, Ohio

Ray Speck couldn’t wait to show off his Volkswagen Karmann Ghia and 1977 Thunderbird in downtown Johnstown, OH, in the Cupola Classic Car Show held Sept. 9. “All cars are my favorite,” he said. “I’ve been in the car businesses since I was a teenager.” Speck owns Johnstown’s KCepts auto body and service center, which was a sponsor for Downtown Johnstown Inc.’s fourth annual Cupola Classic Cruise-In car show. Speck, a Downtown Johnstown Inc. board member, said the 800-1,000 visitors had more than 250 classic cars to drool over. “Our goal as an organization is to preserve and enhance our town while improving the quality of life through our events and projects,” Speck said. Speck said the event raised roughly $10,000 for various community improvement projects. Speck said local merchants provided door prizes, and 40 trophies were presented for the vehicles that judges believe are the finest at the show. Speck said three additional trophies were given for the most unique cars, for which the public voted for the winners.

CARA Partners with Collision Billing Services to Help Repairers Get Full Payment from Insurers The Ohio-based Choice Autobody Repair Association (CARA) has partnered with Collision Billing Services, a company designed to assist collision repairers in getting full payment from insurers on behalf of their customers. “This seemed like the perfect fit for CARA,” said CARA President Rick Finney. “Given the restraints that are put on us as an association by anti-trust legislation, our partnership with CBS will allow us to accomplish our long-term goals in a short amount of time. The key is that CBS is not bound by the same restraints shop owners are.” He added, “We’ve had some members successfully pursue the same issues that CBS addresses with their program, but when it’s all said and done, they almost always end up spending more money in legal fees than what the case is worth. While it’s good to make a point and set precedence, individual shops just can’t afford financially to keep doing this.” A CARA member recently won a jury verdict against Nationwide for refusing to pay a sufficient amount to properly and safely repair two consumers’ vehicles. Taking an assign-

ment of proceeds on both third-party claims, they were able to demonstrate for a jury that the amounts Nationwide wanted to pay were less than the true cost of the repairs. In the end, they ended up spending eight times more in legal fees than what they were awarded. “This is one of the key reasons we’ve partnered with CBS, because now our members won’t have to spend their hard-earned money to prove a point on two claims but have their claims bundled with all the claims from our members and other CBS subscribers. And with Erica Eversman leading their legal team, I know they’ll be effective,” said Finney. “With the partnership and high participation by our members, we can quickly change the practices and policies in our local market using CBS’s national data, putting to bed statements like, ‘You’re the only one asking for that’ and ‘We don’t pay for that,’” Finney said. “CBS is giving us the opportunity to change our focus. Instead of discussing how we can change the industry at our meetings, we will now discuss how we are changing the industry.”

www.autobodynews.com | OCTOBER 2012 AUTOBODY NEWS 9

Michigan Dealership Owner Retires, Thanks his Employees with Cash Gifts A Michigan car dealership owner will turn over his business to new owners later this month, but there was something he had to do first. As he transitions into retirement, Howard Cooper wanted to thank his employees, so he surprised them with ‘thank you’ checks. He gave all 89 employees $1,000 for every year they worked at the Howard Cooper Import Center in Ann Arbor, located on South State Street north of Eisenhower Parkway. Cooper said he hopes “it makes a difference in their lives like they have made in mine.” Cooper, 83, sold his dealership in April to Ohio-based Germain Motor Company. Details on the transaction haven’t been available. He declined to say how much the workers received, but mechanic Bob Jenkins’ check was $26,000. He has worked at the dealership 26 years. “I was shocked,” Jenkins said. “You just don’t expect something like that.” Sandy Reagan, who was hired at the dealership in 1966 as a bookkeeper, printed all of the employees’ surprise checks in advance, after Cooper clued her in to his plan. Both Reagan and

Cooper wouldn’t reveal the total sum of the send-off gifts. Reagan said Cooper received a standing ovation — through people’s shock and tears — when he surprised the employees with their checks. She said it’s “touching” that Cooper gave every employee Howard Cooper the same amount per year, even people that were just hired in July. “If you were here for 6 months, you got $500. If you were here since July, you got $83,” Reagan said. “The lady behind me had tears running down her face,” Reagan said. “I sat next to a person who drives the parts van and he’s been here almost 28 years. He doesn’t make a ton of money, but he got almost $28,000. I watched his face and he just said, ‘Oh my God.’” Jenkins added, “The whole place was just in shock. People are still talking about it.” And as for his plans for the unexpected $26,000? “Well, I’m going to put it in the bank, and my wife and I will discuss

Ohio Collision Repair Program Seeking $50,000 Ultimate Collision Education Makeover Grant A $50,000 grant would go a long way for the Collision Repair program at the Warren County Career Center in Lebanon, OH. The Collision Repair Education Foundation offers a $50,000 Ultimate Collision Education Makeover Grant to “honor a school that has been doing an outstanding job in educating students in collision repair, but needs some financial assistance to improve their program’s teaching materials and equipment,” according to the foundation. Items covered by the grant could include a resistance welder, air compressor as well as wrenches, screwdrivers and other tools. “The I-Car Collision Repair Education Grant would be used for purchasing equipment for the Collision Program at WCCC,” collision repair teacher Robert Smith said. “The equipment would give students the opportunity for hands-on use, and to gain the skills necessary for job placement. We must continuously update and improve the equipment and training to meet the demands of the automotive industry.” “This is a highly competitive award given to one recipient each

year,” said Matt Jones, WCSD coordinator of grant and foundation development. “The 2012-2013 budget for Collision Repair at the Career Center is $7,500,” Jones said. “That is for materials only — no new replacement equipment. That is down from $10,000 in the previous school year. The $50,000 budget (of the grant) is for a variety of material and equipment needs that the instructor feels is necessary to the Collision Repair program.” Smith, in his first year teaching in the school district, is passionate about pursuing the funding. “Mr. Smith received his very first paycheck and I received this grant request well before that,” Director of Secondary Education Amanda Hetrick said to the Curriculum, Instruction and Technology committee in August. “He is very serious about this program and getting off to a good start. I'm impressed with that.” The winner is selected by a selection committee comprised of members of the Education Foundation board of trustees. The winner will be announced in late October or early November.

10 OCTOBER 2012 AUTOBODY NEWS | www.autobodynews.com

that,” he said. “I have two little kids — a 5-year-old and a 9-year-old — so the money will go to good use.” Howard Cooper opened on South State Street in 1965 as a Volkswagen dealership. In 1972, it expanded with the addition of Porsche and Audi franchises, and then added the Honda brand in 1979. When Cooper announced he planned to sell the dealership to the family-owned Germain Motor Co. — which now has 19 dealerships in five states — he made employee retention a condition of the deal. “My employees are very important to me and the reason for my success,” Cooper told AnnArbor.com in April. “I know of a couple of buyers who would have paid more, but taking care of my employees was important to me.” Cooper said he plans to maintain an office at the dealership until he’s ready to move on. He joked about purchasing an ice cream shop to keep him busy. “The business has been my whole life for 47 years,” he said. “I love what I’ve done and I enjoyed going to work in the morning. I’m still an entrepreneur at heart and I intend to continue that way.”

Church Brothers Collision Donate to Concord Center

For the second year in a row, Church Brothers Collision Repair, with six locations in the Indianapolis metro area, sponsored the Indianapolis Indians’ “Home Hits” with a donation to the Concord Neighborhood Center. The Indians had a great season, so their total donation was $5,000! Church Brothers Collision Repair is extremely proud of the continuing partnership with the Concord Neighborhood Center and of the great work they do to break the cycle of poverty in the community. Concord is the oldest and longest-running neighborhood center association in Indianapolis, IN, dedicated to breaking the cycle of poverty. Concord Neighborhood Center offers south side Indianapolis families and individuals of all ages a one-stop source for social services, children’s programs, educational opportunities, health & fitness information and recreational activities, and cooperative programs with other agencies.

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www.autobodynews.com | OCTOBER 2012 AUTOBODY NEWS 11

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NJ Shop Owner Goes Round and Round with State Farm on Material Reimbursements

In an exchange of several letters between body shop owner Don Harvey of International Collision Service in Englewood, NJ, and State Farm, the problem of material reimbursement is yet to be answered. Harvey initiated the request in a letter to State Farm CEO Ed Rust in February 2012 to address what he felt was an inadequate paint and materials reimbursement rate. Despite State Farm responding to his queries, Harvey says he still hasn’t received a satisfactory answer to how the reimbursement rate was determined from a “yes or no” question on the insurer’s survey. The yes or no question on the survey he referred to is, “Do you use an automated paint and materials rate calculator?” In response to another letter Harvey wrote dated July 10, State Farm stated that it believed the best opportunity to provide him with a more complete understanding of their survey was to facilitate a oneon-one discussion between him and their estimatics leadership in New Jersey. Harvey first replied by stating,

“It seems State Farm is ‘dancing’ around these issues as this now is the fourth letter and yet no answers to either the material reimbursement or the explanation on how the rate got determined from a yes or no question on State Farm’s survey.” In a letter dated August 21, Harvey thanked them for the invite but turned it down. “My concerns as a member of the New Jersey auto body community is an answer to how a paint material rate has been determined from State Farm’s ‘survey’ when a yes or no is the only option,” said Harvey. “This clearly is a question that can be answered in writing and doesn’t require a one-on-one meeting to address.” For details on the back and forth search “Don Harvey” at www.autobodynews.com.

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CAA Sends Legislative Alert and Call to Action

The California Autobody Association issued this Legislative Alert-Call to Action: The CAA has been opposing insurer-sponsored legislation that would weaken long-standing law that provides for fair and reasonable auto body repair practices. CAA has also opposed legislation that would provide legal presumptions that aftermarket crash parts are equal to OEM crash parts in all instances. Insurer sponsored bills this year include SB 1460 (Yee) and AB 1098 (Hagman). Both failed. However, CAA has learned that insurers are now trying to usurp the democratic process by “gutting and amending” a bill during the final days of the legislative session. “Gut and amend” is a last-minute move which strips a bills original contents and inserts new unrelated language to the original bill, thus by-passing open hearings, negotiations and amendments. We are asking all our CAA members to call their Assembly members and Senators today and tell them to say ‘No’ to last minute “gut and amend” bills which significantly weakens consumer law pertaining to aftermarket crash parts and fair auto body repair practices.

AAIA Releases 2012 Digital Repair Trends Report

AAIA has released the 2012 Digital Collision Repair Trends: Industry Statistics & Analysis report, which combines the latest available industry data from original AAIA research, government and independent research sources. The work was designed to capture the size and scope of the collision repair sector of the automotive aftermarket industry. This online publication is the seventh edition of this report series. “Collision repair shop sales in 2011 totaled an estimated $38.7 billion, up 3.3 percent from $37.5 billion in 2010,” said Kathleen Schmatz, AAIA president and CEO. “Independent paint and body repair shops made up $25.7 billion or 66 percent of the total market. Stats like these, and so much more, are featured in this new study... to help our members run successful businesses.” The report covers such topics as fatalities from vehicle crashes, 2011 retail distribution, collision repair shop sales and direct repair programs. To order, visit www.aftermarket.org and click “Market Intelligence,” or call AAIA market research at 301654-6664.

WI Shop Owner Gets 7 Years for Shooting Customer’s Leg

The owner of a mechanical repair shop in Milwaukee, WI will serve a maximum seven years in prison for shooting a customer in the leg. Anthony Wayne Smith is the owner of four companies, including Precision Custom Car Care and Unique Custom Car Care. Surveillance video confirms Smith fired a single shot into a customer’s leg following a verbal altercation. “I was aiming at the floor to scare the guy. I didn’t know he was shot until the next day when my lawyer called me because I locked the door. He was walking away, so I figured he was okay. He was leaving the building and the customers were safe. I didn’t know I shot him,” Smith said. While Smith serves time, his wife, Allison, will run their four businesses.

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Any such legislation should be properly vetted through the normal process, fairly negotiated with all stakeholders and not rushed in the ‘middle of the night’ with no public or industry input. These types of practices undermine public trust. We suspect this ‘gut and amend’ will drastically change current law regarding aftermarket crash parts. Legislators may be led to believe by insurers that aftermarket crash parts are equivalent to OEM parts in all instances, and that they should be legally considered as such. CAA needs our members to educate their legislators. When you call your legislator, please offer them information to support the facts, as you know them. Here are some ideas for discussion: Although quality of aftermarket crash parts has improved over the last 10 years, they are still inconsistent. Sometimes they fit and perform and sometimes they don’t. Protect your business and stop these types of underhanded legislative practices. Please call your senator and assembly member today. Call both district offices and Sacramento offices. To locate your legislator please goto: http://www.leginfo.ca.gov/yourleg.html. www.autobodynews.com | OCTOBER 2012 AUTOBODY NEWS 13

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Distinctive Dealerships

Larry Williams is an innovative parts manager with national awards and over 30 years of experience in creating and managing profitable departments. He can be reached for consultation at ljoew2@gmail.com.

Honda Superstore of Lisle, IL—Professional and Friendly with Larry Williams

“A professional, yet friendly place to do business.” This is the feeling that Paul Chrt wants to convey to his customers about his parts operation and dealership. Paul is the parts manager at Honda Superstore, in Lisle, IL. This dealer is a longtime fixture in the Chicago area – opening in 1977. Paul joined them shortly after, in 1979. Paul became the

parts manager in 2000, and began to expand the wholesale business. Honda of America helped out with plans and training, but the greatest effort and amount of work, came from Paul and his team at Honda of Lisle. This dealer

is now the number three wholesaler in the nation, for Honda, and it is still growing. More and more auto body shops in the Chicago area are using Honda of Lisle, and there is a very good reason why: They know they are getting the best service available; from a dealer who cares. We talked about the changes in the parts industry, and the need/opportunity to adapt to new and innovative ideas. Paul uses both OPSTRAX and CollisionLink by OEConnection to receive orders directly from his customers. There has been a steady increase of these orders, which are placed directly by his customers using electronic ordering programs. This method seems to work very well – it is accurate and quick. The fax system is still used by some, and of course the telephone will always be used by those

ASA-Michigan to Host ‘theEvent’ on October 6

The Automotive Service Association of Michigan invites its members to “the EVENT” — an automotive collision and mechanical industry event. The day of networking and learning includes technical training, management training, networking, hands on, vendors, displays, and much more — all in one day at one location within 90 minutes of over a dozen major cities. Sessions are for management, owners, technicians, advisors and vendors. The event will be held at Lansing Community College West Campus, 5708 Cornerstone Dr. in Lansing, MI. For more information and to register, see www.theevent-asamichigan.com. Seating is limited and sessions are on a first-come, first-served basis. Early bird pricing goes until Sept. 21. Classes include: •GM — Hybrid Technology (Sponsored by GM Wholesale Parts) •First Impression/Last Impression: Would you ask your shop to the prom?(Sponsored by Automotive Management Network, Tom Ham, Instructor) •The Truth about Automotive Programming (Sponsored by OEMTools a Division of C.A.S. New England) •Car-Part Pro: On-Line Parts Search

for Recycled Parts helping with retention (Sponsored by Car-Part.com) •Jump Start Your Business – Better Marketing that will drive up sales (Sponsored by MSPro Marketing Systems) •DemandForce – Growth. On Demand. (Sponsored by N.A.P.A. Auto Parts) •Communicating with “Your Customers” What Works? What are the results? (Sponsored by Audatex / AutoWatch) •AlldataCollision – The importance of OEM Information (Sponsored by ALLDATA Collision) •Communication for Service Sales (Sponsored by N.A.P.A. Auto Parts) •Credit Card Processing – Rates, Purchase Limits, Fees; What can you do? (Sponsored by CoCard) •Protecting your Assets and your Employees too – Garage Liability in simple terms (Sponsored by Zurich North America) •DuPont – Management training for Collision Repair Facilities (Sponsored by DuPont) •Chief – Advanced steels and tomorrow’s structures; Do’s & Don’ts (Sponsored by Chief Automotive) •CCC: Using Mobile Apps & Update Plus (Sponsored by CCC Information Systems)

16 OCTOBER 2012 AUTOBODY NEWS | www.autobodynews.com

who prefer a more personal touch. However you place your order, it will be filled by a crew of 17, and delivered via a fleet of 14 parts trucks! The delivery system Paul uses is shared with Volvo and Infiniti; their trucks servicing Chicago and the surrounding suburbs at least twice each day. Again and again, I find that a successful wholesale parts operation is built on a solid foundation of service. Paul’s foundation is the idea of service to the “real” customer; the car owner. He wants his wholesale customers to know that every individual order is important, because that order represents the customer; and that every order needs to be filled in its entirety, in order to complete the repair on time. Paul has over a million dollars worth of inventory, and Honda of America helps with that, providing parts daily, and shipping overnight, when necessary. This kind of service assures that the repairs are completed

on time – creating the “completely satisfied” customer that we all desire. A successful body shop operation depends on repeat and referral business. That means a happy customer who is impressed with the speed and quality of their repair. A timely delivery of all of the parts which are needed is a key factor in that goal. The body shop needs to know that their parts supplier is reliable, capable, and professional. These are the characteristics of an Autobody News Distinctive Dealership, and Honda of Lisle is obviously a member of this group. Paul Chrt says he has an excellent group of people, working together, in order to get the job done. I agree, he has a great team – all dedicated to providing the finest service possible – they are the essence of the word “professionals.” Honda Superstore of Lisle, 4475 Lincoln Avenue, Lisle, Illinois 60532. Paul Chrt, Parts Manager. Phone: 630852-7200.

www.autobodynews.com | OCTOBER 2012 AUTOBODY NEWS 17

Continued from Cover

Carbon Fiber

hicle or the automaker, but details about the vehicle will emerge soon. January 2013 marks the start of body panel production at Plasan’s new 200,000-sq-ft facility in Walker, MI. The new press technology developed by Plasan has lower investment costs and reduce the lead time on tooling. The global increase in raw carbon fiber further enables Plasan Carbon Composites to provide lightweight, economical solutions on low- to midvolume vehicles. Plasan Carbon Composites is the leading Tier 1 supplier of carbon fiber parts and assemblies in the United States. We specialize in the production of Class A and structural parts for mid-volume production cars. As a Tier 1 supplier, Plasan can work with all OEM clients to analyze, design and implement mass reduction challenges and take advantage of carbon fiber’s range of superior material properties beyond just weight reduction. Carbon fiber allows for significant mass reduction while containing costs through part consolidation, lower capital investment, simplified assem-

bly process and other life cycle savings such as reduced warranty costs and leaner supply chain. Carbon fiber’s production applications have included roofs, hoods, and other Class A surfaces on low-volume sports cars. But the upcoming global production vehicle will have 75% of its body (including the hood, fenders, and roof) comprised of carbon fiber.

Plasan has developed what it calls a ‘Total Systems Approach’ to maximize the cost-competitive potential of carbon fiber. More than just dollarsper-pound, carbon fiber means: ● Part consolidation ● Reduced capital investment ● Shorter lead times ● Reduction in assembly process time ● Life-cycle cost reduction such as reduced warranty costs

● Increased fuel efficiency ● Elimination of secondary pyrotechnic devices for pedestrian protection By using this Total Systems Cost Approach in the design process, Plasan is bringing carbon fiber to mid-volume production vehicles including hybrids, crossovers, and sedans. What began in aerospace and moved to the racetrack, is now being used at Plasan and introduced to volume production. Through automotivespecific materials, increased efficiency in carbon fiber processing methods and reduction in direct labor requirements, Plasan is rethinking carbon fiber. “We’ve been molding parts at our Wixom, MI, R&D center, which has two of the new pressure presses. We’re moving one of those presses to the Walker facility and adding five more pressure presses by 2013,” Lownsdale said, adding the new facility has the capacity to house 12 pressure presses. The novel pressure press technology shatters the 90 minutes needed by Plasan to mold a body panel with autoclave processing. Materials processing time with the pressure press is a 17-min machine cycle. “It took us about a year and a half to synthesize fully the process of what

happens inside the autoclave. But once we were able to find out exactly what happens physically and chemically inside the autoclave at discreet time increments, that enabled us to plot a whole new thermal dynamic curve and a whole new pressure curve with our patented pressure press technology,” said Lownsdale. A provisional patent addresses the entire process while eight separate pending patents involve Plasan as well as the equipment provider Globe Machine Manufacturing Co. of Tacoma, WA. The new process applies up to 150 psi (10.3 bar) of surface pressure at up to 450°F (232°C). Plasan’s cure cycle can be as low as 7 min, depending on the resin formulation. (Technical specialists at Plasan have achieved a 2-min cure time in the lab by producing an 18-in (457mm) long, 6-in (152-mm) diameter cylinder made of thermoplastic resin.) Like Plasan’s other carbon-fiber body panel production applications, the same thermoset epoxy-based resin will be used for several of the new base vehicle’s exterior panels, including the hood, fenders, and roof. “The density of the carbon fiber See Carbon Fiber, Page 48

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Go Where Your Customers Are—You’ll Find Them Online online, engaging in Facebook, Twitter, YouTube, LinkedIn and Google+. “Shops have no choice. They have to market their businesses to younger customers digitally,” Terlep said. And

by Melanie Anderson

In late August, the California Autobody Association’s Inland Empire Chapter hosted special guest speaker, Frank Terlep, CEO and Lead Sherpa of Summit Software and Marketing Solutions. Terlep, with 25 years experience in the industry, addressed the Inland Empire CAA group Aug. 29 at Don Marcos Restaurant in Rancho Cucamonga, CA, on the topic of “Digital Marketing = More Customers, Revenue and Profit.” Back in 2000, 132 million Americans had access to the Internet. Today, that number has increased to 274 million. Additionally, recent statistics show that customers would Frank Terlep rather be contacted by email or text than by phone. About 98% of people read their text messages within three minutes. The bottom line, according to Terlep, is that body shop owners need to be where their customers are, and they’re

Ron Guilliams, formerly of Fix Auto & Michael Ramirez with Gyant Compliance

it’s not just the younger generations who are online. Terlep reports that in addition to 112 million Generation X (those born during the 1960s to early 1980s) and Generation Y (those born in the early 1980s to early 2000s) consumers who grew up in a digital world, there are 60 million Baby Boomers who are actively using Internet, email, text and social media. Although many customers prefer to receive status notifications by text, email is still the most powerful digital

marketing tool, says Terlep. Use your email marketing for education, branding, special promotions and coupons. “But, don’t spam your customers— give them value,” he says, such as tips to car care. Build your customer database by collecting your customer email addresses. Of the group in Rancho Cucamonga that evening, only three shops collected email addresses from their customers. But all three reported they had no problem asking for or receiving email addresses. One shop uses a form that asks for a customer’s email address right beneath the name—it’s the second question on the form. Terlep cites a statistic that more than 80% of consumers prefer to be marketed to via email. According to Stan Rapp, the father of direct email marketing, an email address is worth $118 to business. Got a website? Great. It’s your online lobby. It’s how potential customers find you. But it’s no longer good enough to have just a website. Terlep says small businesses that are successful digital marketers need to utilize all the marketing tools, techniques and technologies available to capture and retain more customers,

revenue and profit. He suggests a welcoming video featuring the shop owner be placed on the home page. It’s like greeting a customer at your front door. But the video doesn’t have to be fancy or expensive. Have one of your technicians man the camera. People like ‘real’ so don’t worry about it being professional. Do you know if your website is doing its job? Utilize Google Analytics

Steve Leyland, Collision Center Riverside & Jim Coff, Highland Auto Body

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Continued from Cover

ASA MI Webinar

broken into six segments: statistics and brief summary; challenges that face local and national carriers; how these changes affect the collision repairer in Michigan; consumer behavior (yesterday, today and tomorrow); national trends; and a brief update of the State Farm/Parts Trader pilot. “As we began this task, it was interesting to see how the players have changed, the growth cycles of some, the complaint ratios of others, etc. For example, some of the calls that our office has had over these past few years about insurance carrier practices wasn’t really reflected within the complaint ratios of these companies as much as one would think, in addition some were worse than you thought and others were better than you would think—it was interesting research!” Fisher said. The webinar also provided some thought-provoking questions based on the data provided and an overview of nine more “popular” insurance carriers within Michigan. Follow up calls from a couple of members had

the “wow effect”—they were surprised to see the presence of some carriers diminish to the extent that they had. “Wow, here I thought I was losing some of the work from that carrier, but I see they have really lost market share here in Michigan. It time to sit down with that agency and put efforts elsewhere,” Fisher recalled from one member commenting. “Our consumer behavior piece was more of a ‘coming attraction’ to our webinar being held later this month for both our collision and mechanical members. This webinar is titled Loyalty vs. Reality: The Post ‘Boomer’ Era,” Fisher said. “As we see the boomers retire, we are seeing different habits evolve that many need to be aware of or their repair facility will have a shelf life of 5 – 10 years at most, the only exception being ‘niche markets,’ I hate to say. It is our responsibility to address that big elephant in the room and provide this information for better business decision making and it comes with risk – we could go the path of denial and rally everyone that what they did yesterday still is effective, or we can go the path we have chosen which

is prepare them for the new wave of society and help them adapt their businesses now to meet those needs of tomorrow,” Fisher said. The webinar also reviewed market trends from Mitchell Trend Reports over the past seven years in Michigan, which included average labor rates along with paint and material rates during that time frame. “I think the audience realized that the industry has done a bad job of passing on their increased costs when it comes to paint and materials especially," Fisher said. "I never knew a shop that waited a year or two to pass on their parts price increases and absorbed the difference in between. We have already seen some pretty savvy business models that have used management systems to monitor these increases and have worked diligently to get the nickels and dimes that have been left on the table out of previous bad habits. The ‘cushion’ to absorb is no longer there and we are seeing the business model adjust accordingly – the industry needs to in order to survive.” The webinar closed with a 50minute briefing on the State Farm/Parts Trader pilot program.

Hertz Buys Dollar Thrifty

Hertz will acquire Dollar Thrifty after years of back and forth negotiations. Hertz Global Holdings and Dollar Thrifty Automotive Group announced Aug. 26 that the two companies have entered a definitive merger agreement. Hertz will purchase Dollar Thrifty for $87.50 per share in cash, translating into a purchase worth a corporate enterprise value of approximately $2.3 billion. Each of the two companies’ boards has unanimously approved the transaction. The company stressed that the “closing of that divestiture is conditioned upon, among other things, Hertz completing an acquisition of Dollar Thrifty.” Hertz chairman and chief executive officer Mark Frissora said, “We are pleased to have finally reached an agreement with Dollar Thrifty after a lengthy—but worthwhile—pursuit. We have always believed that a combination with Dollar Thrifty is the best strategic option for both companies. The transaction provides Hertz instant scale with two new, well-established brands with airport concession infrastructure in the mid-tier value segment.”

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www.autobodynews.com | OCTOBER 2012 AUTOBODY NEWS 21

Continued from Page 19

You’ll Find Them

your shop show up on the first page? Rarely, will someone go to page 2 of the search. For this reasons, shops should be frequently updating and changing their website. Another reason: “You have between 5–15 seconds to capture their attention,” Terlep says. Terlep suggests shops hire an SEO (search engine optimizations) consultant to make sure their site is found. Another good use of your website is to incorporate positive reviews and testimonials because 82% of consumers select a repair facility based on customer reviews and ratings. Getting good online ratings and reviews is imperative to the success of a body shop in today’s world, Terlep says. Shops could be get getting damaging reviews and not even know about it. There are dozens of plat-

forms out in cyberspace besides Yelp that you may have never heard of, such as Squidoo, Reddit, HubPages, StumbleUpon, FeedBurner, Weebly, and Zimbio. According to Terlep, phone-based CSI surveys will someday soon be a thing of the past. Most people have accidents every 7–10 years. Do your customers remember you? Your customer is your customer because they had a negative event occur in their life. It was a huge disruption to their daily routine. Most people just want to forget and move on. And they are probably forgetting where they had their car repaired. Because of a customer’s tendency to forget, Terlep says this is why body shops need to be continually marketing to their existing and future customers. Terlep strongly advises shops to offer services other than collision repair so their customers won’t forget them between accidents. Offer these services as coupons in your email campaigns.

Why is digital marketing critical to your success?

• 80% of the population are Internet users • 77% of the adult population uses email • 90% of consumers do an Internet search prior to purchasing a product or service • Over 50% of population use Facebook • More than 50% of population have a smart phone with the forecast of 75% by 2016 • More than 300 MILLION consumers can send and receive a text message • There are more than 20,000,000 “Seniors” that are active Internet users • 64% of mobile phone time is spent on apps • 42% of tablet users use them daily while watching TV • 82% of consumers will purchase a product/service from a company when marketed consistently for 24 months. • 81 billion minutes spent on social networking/blogs during 2011

Free Twice Monthly Newsletter at www.autobodynews.com 22 OCTOBER 2012 AUTOBODY NEWS | www.autobodynews.com

12 Digital marketing tools your shop should use to capture more customers, revenue and profit: 1. Your website 2. Online advertising—Pay Per Click 3. A powerful digital marketing database 4. An email marketing and retention platform 5. A text based marketing and retention system 6. An automated unsold estimate follow up and sales system 7. 24/7 connectivity to consumers smart phones 8. Social media tools and techniques 9. Validated customer reviews and ratings 10. Digital ads, promotions and e-coupons 11. A customer loyalty and retention system 12. Reputation management system

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Social Media for Shops

Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.

What You Don’t Know about SEO Can Cost You with Ed Attanasio

So you spent a considerable amount of money on your website. But now no one can find you online and it’s starting to look like a waste of time and money. Then one day a slick salesperson calls you and catches you on the phone. “We’re Search Engine Optimization (SEO) experts and we can get you #1 on Google or Yahoo in your area by using our secret (hush hush) strategy.” They drop words like “meta tags” or “embedded codes” and “hyperlinks” and “secret keywords,” but the only thing they’re optimizing is their ability to fleece you for whatever they can get. Bryan Fikes, the managing partner and chief strategist at Zenergy Works in Santa Rosa, CA, works with an assortment of mechanical and collision repairers to enhance their websites, social media and SEO and is an endorsed vendor of the Automotive Service Councils of California (ASCCA). “Be careful when someone promises you top rankings and makes outlandish guarantees,” Fikes said. “If someone tells you that they can get you the #1 ranking in your city on Google, for instance, that’s a definite red flag. We never promise the top position to any of our clients, because that’s an impossible claim. It all depends on the market you’re doing business in and how long you work at it. In a narrow market with 5–10 players, it’s obviously easier. But, if you’re in a larger market with 20–50 shops competing against you, guaranteeing a top position is ludicrous.” Ideally SEO efforts work in close conjunction with a plethora of other media and have to be maintained carefully to reap positive results, Fikes explained. “SEO is just a spoke in a big wheel. We do a competitive analysis for each client, to determine what their needs are and how to build a plan. It

might include pay-per-click marketing, blogs, online reputation defense and certain forms of social media, as well as the search optimization strategies that are specific to each customer.” Zenergy Works provides longterm solutions that take time to achieve top results, Fikes said. “Many shops want it tomorrow, but I tell them there’s never an overnight fix. There’s no easy button when it comes to SEO, because if your competitors are also hiring people like us, everyone is vying for those top spots. The shops that have embraced this science and know how to use it will have a definite advantage now and a very distinct one in the next 5–10 years.” Mark Claypool is the Chairman and CEO of Optima Automotive, a company that works with body shops nationwide to enhance their presence online. He has more than 25 years of experience in collision and is considered a cutting-edge expert in SEO and social media. Claypool shared some useful tips for shops that are currently developing or re-working their websites and/or trying to improve their SEO. “First off, you need to refresh and add new content to your site periodically, because otherwise you’re missing a wide range of SEO advantages over your competitors. We analyze approximately 50 body shops’ websites every month, and one of the things we see is that many of them have been sitting dormant for way too long. I find sites that haven’t been changed in 8–12 years, in some cases. If you don’t change with the times, you get left behind and you can lose your ranking fairly quickly.” Claypool offered three quick tips about how to improve your SEO. “First, you need to add new content all the time, because the search engines are attracted to original, fresh content. You also need to make sure that your

keywords are the best you can have. There are free tools from Google available to help you in determining that. And lastly, you should constantly be looking around to get involved in new things like Google Places for Business, mobile apps and emerging social media.” Managing your SEO isn’t something you should assign to one of your techs or front office people to do on a part-time basis, Claypool said. Staying on top of the most recent changes with Google, Yahoo and Bing, for instance, is a huge, unending job. “Google and Yahoo are changing their algorithms all the time,” Claypool said. “They’ve changed them at least 400 times over the years and the only way we can find out is by accessing blogs on the subject. Google just recently changed their algorithm twice and set SEO on its ear in many ways. It’s very challenging, because

Give us your opinion on matters affecting the industry.

write us! publisher@autobodynews.com

24 OCTOBER 2012 AUTOBODY NEWS | www.autobodynews.com

the only way to learn is to constantly use the search engines. We can’t predict what’s happening next, because companies like Google don’t tell us. If you’re even just 60–80 days behind the times, you’re lost—especially in a busy area where other body shops are also vying for improved search rankings.” When it comes to SEO, finding and implementing the best keywords available is crucial, Claypool said. “Devising superior keywords is a science and based on hours and hours of research. This industry wants to get away from calling them ‘body shops’ and moving toward phrases like ‘collision repairers’ or ‘collision centers.’ But, the public still uses words such as ‘body shop’ or ‘auto body’ and ‘autobody shop’ much more than anything that contains the word ‘collision.’ Knowing the users’ habits is a big part of devising keywords that work.”

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Company Connections

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.

Micro Group Covers Greater Detroit To Toledo with Chasidy Rae Sisk

The Micro Group was originally formed to focus on chrome plating car bumpers when Howard Hicks Sr. founded the business in 1948. Since then, it has expanded into several other areas of the collision distribution industry. Current CEO, Howard Hicks Jr. began working at his father’s company in 1983. His brother, John, and sisters, Tammy and Kim, continue to be involved with this family-owned and operated business. Since their beginning, the Micro Group has expanded into rim molding (manufacturing fascias) and injection molding. They added their paint business in 1982. The Micro Group now consists of three manufacturing plants and three paint stores which service the greater Detroit metropolitan area, as far south as Toledo, OH. As a result of their expansion, the Micro Group employs around 105 individuals who assist in the various facets of their organization.

Micro maintains a high focus on customer service. In discussing what differentiates Micro from their competitors, CEO Howard Hicks Jr. cites their “higher level of service compared to other local distributors,” in addition to the advantages of stream-lined production and being a single-line jobber. Micro’s dedication to their customers led them to joining the Refinish Distributors Alliance in April 2011, allowing them to offer their customers the unique benefits that come from being part of the elite association. In recognition of their efforts, Micro earned certification from the NSF Automotive Collision Parts Dis-

tributor Program earlier this year. They were one of the first companies to receive this certification which requires distributors to possess quality Howard Hicks, Jr. management systems that address parts traceability, service and quality. This includes having ISO 9001 certified quality management systems, parts traceability and inventory tracking systems, the ability to administer a manufacturer’s recall, a defective parts procedure including a customers’ parts complaint process, formal correction action to complaints and an immediate recall plan. The program was developed to help close the gap in the supply chain between manufacturers and body shops as a response to the needs of collision repair shops, insurers and consumers. Because Micro has received NSF’s certification, they are able to use the NSF Certified Distributor mark on their website and promotional materials, and they also appear in NSF’s online certification listings. As a condition of maintaining the certification, they will be subjected to ongoing quality system inspections, ensuring that they maintain the level of quality that allowed them to become certified in the first place. In response to receiving this certification, Howard Hicks Jr. stated “We are proud to be an NSF certified distributor as it is a formal recognition of the quality systems we have in place and continue to promote every day. NSF Automotive Collision Parts Distributor Certification provides an opportunity for Micro Platers and Paint to compete even more effectively with much larger distributors in the market.” Since their expansion into the collision paint industry in 1982, Micro Paint has succeeded by having a single-line focus on BASF. They are one of few distributors nationally to offer BASF’s ColorSource line of paints, including the full line of waterborne paints. Membership in this program is by invitation only and was developed to assist BASF distributors who choose to only distribute BASF prod-

26 OCTOBER 2012 AUTOBODY NEWS | www.autobodynews.com

ucts; additionally, this designation qualifies Micro to support programs created specifically for the ColorSource program which are not offered to other BASF distributors. Micro also offers BASF’s Glasurit and R-M products which are all covered under a worldwide lifetime warranty. Howard Hicks Jr. has developed a close rapport with BASF which led to him serving on the BASF Jobber Council where he was instrumental in aiding with the development of the ColorSource program for single-line jobbers. In regards to BASF’s Sales Management team, Hicks notes “they’re super guys who’ve taught me a lot about the business. They’re sharp, insightful businessmen who know the ins and outs of the business and were happy to share their knowledge. They’ve contributed a lot to our success.” In addition to BASF paint products, Micro Paint also offers a complete line of body shop paint supplies to support their customers’ needs. They offer a complete line of supplies from 3M, Norton, Devilbiss, SATA, IWATA, Fusor, Maguiars, Upol, Evercoat, Gerson, SEM, Wurth, USC, Hercules, Mack (brushes), and Klean-Strip. Micro Auto Paint has three locations in Wayne, Highland Park and Flint, Michigan. Their Highland Park location can be reached at 313-865-4205. For customers who purchase replacement parts from Micro Platers Sales, Micro Platers guarantees confidence that the parts will conform to the highest industry standards for fit and finish. They stock only quality replacement parts, including CAPA Certified Parts, and they are certified as an ISO9001: 2008 company. Micro Platers’ manufacturing plant is located in Highland Park, MI and can be reached at 313-865-4200 or 800-896-4276. Micro Chrome specializes in dual nickel plating for the automotive, motorcycle and marine industries using a “Show Chrome Finish”. They strive to respect and handle every part with the care it deserves because they know that these parts hold significant value for their customers. As a result of the shift to plastic bumpers, Micro Rim was developed in 1991. Micro Rim manufactures bumpers daily and stock many

standard bumpers. They specialize in class-A paintable plastic molding of prototype and production parts, and they are currently the only Americanowned and made bumper manufacturer. Micro Rim boasts the use of CAD design to aid customers in making their ideas a reality. They can work from whatever technical detail is brought to them to develop a working 3D CAD model, and from there, they can develop an exact CAD model for production. They also provide design, reverse engineering, tool design, and

tool manufacturing. In addition, they offer custom packing and labeling for their customers. Micro Rim offers customers the option of having their molded parts painted using BASF ColorSource paints through Micro Paint; the paints meet auto quality adherence standards and satisfaction is guaranteed. Micro Rim is also environmentally conscientious. They use recycled materials in the manufacturing process with carefully considered product strength requirements. Excess materials are recycled for use in future plastic injection molding activities. Micro Rim’s manufacturing plant is located in Highland Park, MI and be reached at 313-865-1090 or 800-896-4276. Each of the Micro Group’s divisions offer their customers the assurance of a family-owned and operated company. According to their website, when you work with Micro, “your challenge becomes our challenge. We learn as you learn. We become better as your product develops. Every project we take becomes part of who we are. Your project is our pride, our passion.” Corporate Offices: 221 Victor Road, Highland Park, MI 48203 P. 313.865.4200 F. 313.865.1180

www.autobodynews.com | OCTOBER 2012 AUTOBODY NEWS 27

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www.autobodynews.com | OCTOBER 2012 AUTOBODY NEWS 29

AUTOMAKER, AU A UTO OM MA M AK AK ER OEM OEM AUTOMAKER KE R,, OEM, M,, AND AND RECALL RE R E C AL CA ALL LL EC Autobody News Ford Issues Third Recall of 2013 Escape for Fire Risk

Ford Motor Co. issued a third recall of its newly launched 2013 Escape on Sept. 5, saying an improperly installed part could cause a fire in the engine compartment. The recall affects about 7,600 Escapes equipped with a 1.6-liter engine and built between Oct. 5, 2011, and Aug. 31, 2012. In some of these SUVs, a component called a cup plug was not installed properly, Ford spokeswoman Marcey Zwiebel said. A loose or dislodged plug would cause an immediate loss of engine coolant. If the glycol concentration in the coolant comes in contact with the hot engine components, it may catch fire. The new Escape was redesigned for the 2013 model year. The latest recall is the second due to a fire risk. Ford recalled the vehicle for the first time in July to correct a carpeting flaw that could cause braking problems. Days later, Ford recalled the Escape again, citing a fuel line problem that could cause an engine fire. The issue forced Ford to take the rare step of telling owners to stop driving immediately. Zwiebel said the cup plug defect is not related to the fuel line issue. Ford has determined there is a low likelihood of a plug dislodging and an “even lower likelihood” of a fire, she said. Replacement parts are available at dealerships now. About 6,150 of the vehicles affected by the plug issue are in the United States and 1,300 are in Canada. No customer vehicles have caught fire, but in mid-August an Escape caught fire on a dealer lot in Tennessee. The plugs at issue were manually installed at a Ford engine plant in England, Zwiebel said. Manual installation at that time was used as a back-up when the automated systems were having problems, something that Zwiebel said is no longer the case.

www.autobodynews.com

MICHIGAN • OHIO • INDIANA • ILLINOIS • WISCONSIN

October 2012

GM Halts Chevy Volt Production

2013 Range Rover Unveiled

Nissan Recalls 2012 Infiniti

Ram 1500 Pickups Will be First to Offer Hands Free Texting

Suzuki Recalls Forenza, Reno

General Motors has again stopped Chevrolet Volt production. According to Automotive News, the Volt’s Detroit-Hamtramck plant will be shut down for four weeks—from September 17 until October 15. This will affect about 1,500 workers. Earlier this year, the plant was shut down because GM had a 150-day supply of Volts, but sales have been good this summer. Still, AN says, as of August 1, GM had an 84-day supply. There may be more inventory than demand justifies. Some deals have surfaced recently that are considered underpriced.

The 2013 Ram 1500 pickup will be the first American–built vehicle to offer hands-free voice responses to text messages. “We would like people to put their phones away and drive,” said Joni Christensen, Chrysler Group’s head of marketing for its UConnect mobile telecommunication systems. The new pickup uses a computer–generated voice to read received text messages aloud. Connecting to a separate ‘cloud-based’ server, the driver can then vocally dictate a response. The message is voiced back to the driver and, upon vocal approval, it is sent through a Bluetooth-connected cellphone as text. “We know that although it is dangerous and illegal in many states, people are still pulling out their cellphones while driving to text message,” Christensen said. “Some, especially young people we call ‘screen-agers,’ actually don’t talk on their phones as much as they communicate through text,” he said. “This is a generation that does not know life without the Internet, but this is technology that can make using cellphones safer.” The new texting capabilities were announced when the extensively redesigned pickup was introduced to the motoring press in Nashville, TN. The Ram 1500 pickup will be in dealerships by the end of September.

30 OCTOBER 2012 AUTOBODY NEWS | www.autobodynews.com

An all–new Range Rover has just been unveiled, and while it features evolutionary styling, there's been a complete revolution beneath the skin. Most significantly, the new car swaps the steel body of the current Range Rover for an all-aluminium structure, which is around 39% lighter. That weight saving—along with other smaller ones and improved aerodynamics—helps make the new Range Rover both faster and more efficient than an equivalent version of the current car. In addition, it has allowed Land Rover to offer a new entry-level V6 diesel. Nearly 102,000 Suzuki Forenza and Reno sedans are being recalled by American Suzuki Motor Corp. The small cars have wiring issues that may cause the headlamps to work only intermittently, according to the National Highway Traffic Safety Administration (NHTSA). Sudden loss of illumination reduces driver visibility and increases the risk of collision, warns the safety agency. According to NHTSA, poor contact between the terminals of certain wires can generate heat in the wires of the 2004-06 Suzuki Forenza and the 2005-06 Suzuki Reno that lead to the cars’ headlights.

GM Recalls 2012 Sonics

General Motors Co is recalling nearly 45,000 2012 Chevrolet Sonic cars to fix faulty windshield wiper reservoirs. The Detroit automaker said the windshield wiper washer hose on 44,668 Sonic vehicles may separate from the washer fluid reservoir. If this happens, washer fluid will not be available to the windshield. GM said a lack of washer fluid could impede the driver’s view, increasing the risk of a crash. GM dealers will ensure the washer hose is properly connected to the reservoir. The automaker said it notified dealers on Aug. 14 and notified owners on Sept. 7. GM said it had an elevated number of warranty reports of separating washer hoses and an investigation found an inappropriate lubricant used in the assembly process was to blame.

Nissan’s luxury-badged 2013 Infiniti JX35 sport-utility vehicles are being recalled for a defect in the fuel gauge system, said the National Highway Traffic Safety Administration (NHTSA). The fuel gauges in more than 7,800 Infiniti SUVs may display higher levels of fuel than what’s actually in the tanks, which may cause drivers to unexpectedly run out of gas. The company has told the NHTSA that the fuel gauge problem with the Infiniti JX35 SUV is due to a fuel transfer tube inside the vehicle’s fuel tank. During production of the SUV, the tube was incorrectly routed, which subsequently prevents the internal fuel level float sensor from properly measuring the amount of gas in the tank. Last month, the federal safety agency also began a probe of the Infiniti JX35’s brakes. At issue is the Driver Assistance Package, which automatically applies the SUV’s brakes based on the vehicle’s on-board radar sensors.

Fire Causes Karma Recall

Fisker has been in the hot seat due to troubles with its Karma extended-range hybrid-electric luxury sedan that resulted in two recalls, ownership hiccups, and more recently the second Karma to catch fire. The first one to combust was in Texas earlier this year, the second one in California. The most recent incident has been traced to a faulty cooling fan, and the company voluntarily issued its third recall over the weekend. Incident investigators, including Fisker engineers and an independent fire expert, isolated the combustion cause to a sealed fan component that had an internal fault, leading to overheating and eventually a slow-burning fire. Notably, this problem is not directly connected to the battery pack or powertrain. Fisker has contacted its dealers, who will reach out to the approximately 1,000 owners to have the cooling fan replaced. In addition, a protective fuse will be added.

SCRS Presents International Perspective on Parts Procurement

For collision repairers concerned about the impact of insurance mandated parts procurement models and looking to gain more knowledge on the impact they have had in other global markets, the 2012 SEMA Show is a perfect venue to gather information. As part of the Society of Collision Repair Specialists’ (SCRS) Repairer Driven Education (RDE) series, registrants will be able to participate in an interactive presentation with Rex Crowther, Editor of Panel Talk Magazine in New Zealand, and David Newton-Ross, Editor of The National Collision Repairer in Australia and The NZ Collision Repairer. The two hour session, ‘Bidding Wars: A Global View on the Possible Economic Impact of Insurer Involvement in Parts Procurement,’ is set for Nov. 1 at 12:30. To register for this RDE seminar or to find other seminars being offered, please visit www.semashow.com/scrs. While online bidding requirements for parts procurement have only recently entered the U.S. market,

other countries such as New Zealand have dealt with parts tendering mandates by carriers for many years. This session will provide attendees with a global perspective on the economic impact of NZ based bidDavid Newton Ross ding programs, Australia procedural impacts the program has had on cycle times and estimating practices, and changes the program has had on repairer/supplier relationships. It will also include a historical overview of the national rollout, changes made to the program along the way, and market impact from inception to present day; including an oration of market response at various points throughout the past eight-plus years. “Having seen firsthand the impact PartsTrader has had on the industry here in NZ and hearing how different both PartsTrader and State Farm are saying it is going to be in the U.S., I struggle to see any advantage for repairers, or much real

advantage for State Farm,” shared Crowther who has been involved in the NZ collision repair industry since 1967. “This makes me suspicious of the end game, as all repairers’ margins are vulnerable through this program and surely any insurer is out to maximize their profits for their stakeholders.” Crowther is no stranger to repairer reaction to the launch of programs such as these, as former owner of two Auckland, NZ based repair facilities for 28 years, and before he sold the business. Crowther served as the Executive Chairman of the New Zealand Collision Repair Association from 1999 to 2004, representing a membership base that performed more that 80% of the insurance paid collision repair work in the country. He has also served on the board of ICAR NZ for the last ten years and was chairman for two years prior to stepping down in April of this year; and since 2004 Rex has been on the board of the Motor Industry Training Organisation (MITO), which is responsible for all motor industry apprentice and advanced training.

Rex is passionate about the collision repair industry and keen to help people on their journey from collision repairer to successful business owner. “The real winners of this program are the shoddy suppliers and the disorganized repairers in NZ because from our experience, PartsTrader does not discriminate between the good and the average,” he concluded. “While the program in itself can be a good tool for difficult-to-find parts, especially here in NZ with our huge recycled parts market, it Rex Crowther certainly has a New Zealand huge detrimental effect on relationships between suppliers and repairers when its use and parts margins are mandated. It is not unusual for a parts supply that previously would have taken 24 hours to receive, to now take three to four days; despite reports from the U.S. proponents that say it will improve the parts supply process and efficiency.”

www.autobodynews.com | OCTOBER 2012 AUTOBODY NEWS 31

A Little Piece of ‘57 Chevy Blue Heaven to Debut at SEMA ate future. The history behind this vehicle and When you call your rebuilt car “Blue Tom and Mitch’s role in the story goes Heaven,” AKA “Bad to the Blue,” you back several years, Mitch Kelly exbetter have something special. plained. “This car was sitting right next We all know how a restored car to my house for the longest time. It belonged to my neighbor’s father. I was looking at it one day and I thought, hey— let’s buy this car and fix it up for SEMA. That way, when my dad and I are standing there at the PPG booth [Kelly’s main sponsor], it will give people something to look at and something we can talk about. My neighMitch Kelly of Kelly & Sons Crazy Painters in Bellflower, California bor agreed to the sale, readies his SATA spray gun as he begins painting his classic 1957 Chevrolet, to be displayed at this year’s SEMA show in Las Vegas so we started working on it.” can go from sitting in a backyard to With more than 200 hours of becoming a beautiful piece of auto- work into “Blue Heaven,” Tom and motive art, but it doesn’t happen by Mitch are thrilled about how the car chance. In this case, it took a pair of will look when completed and ready master painters/artists like Tom and Mitch Kelly from Kelly & Sons Crazy Painters in southern California to take this 1957 Chevrolet and convert it into a highly-collectible one-of-a-kind showroom gem. When the Kellys finally complete this current project and unveil it at this year’s “Blue Heaven” will soon be a shining blue star for Kelly & Sons SEMA show, there Crazy Painters and their sponsors at SEMA will be more than just a few “oohs!” and “aahs!” along the for the SEMA floor. “It’s going to get way. There may be some outstanding some attention, that’s for sure,” Mitch reviews and maybe even a magazine said. “The plan is to keep it and show cover in this classic vehicle’s immedi- it for at least the next year. Unless someone makes me a crazy offer on the car, I want to keep it, because we’re so proud of it and the work that went into it.” Some notable enhancements to his ’57 Chevy include Crazy Paint’s signature “surprise graphics,” which appear underneath the car’s hood on the engine firewall, Mitch After purchasing the car, Mitch Kelly discovered that it has a explained. “When special racing frame that was made for use in NASCAR races and available on a limited basis to the public people see this car, by Ed Attanasio

32 OCTOBER 2012 AUTOBODY NEWS | www.autobodynews.com

they want to look at the engine,” Mitch quickly found out it has a very rare specialty racing frame. Back then, said. “So, we’re giving them something new and different to look at Chevrolet had to manufacture a few cars that could meet NASCAR’s rewhen the hood’s up. It just adds a different look and is a conversation quirements and make them available starter. We’re always searching for to the general public in addition to the ways to make our cars stand out, and racing community. So, we had a gem doing things like unexpected graphics is one way to achieve that.” Here are the details of the build, explained by Mitch in a Reader’s Digest-style. “We used PPG Envirobase and their 280 primer, as well as their ECS-27 Black Envirobase sealer. The Envirobase is easy to apply and we’re adept If you look closely, you can see the vehicle’s “surprise graphics” on its engine firewall at using it. The finished product is superior and I love here and we didn’t even know it until this PPG blue.” we were into the build.” When Mitch took possession of Companies that Tom and Mitch the car and started breaking it down, Kelly want to thank for contributing he and his crew discovered something their products and time to building unique about their Chevy. “When it their 1957 Chevy Blue Dream include came back from sandblasting, it Classic Performance Products in looked like nothing I’d ever seen. We Anaheim , CA, that provided the A-

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an amazing vehicle,” Mitch said. “We scored with this build, because now we have a very unique finished product and something we’re anxious to show at SEMA.” On the morning of SEMA’s opening day, (Tuesday, October 30) “Blue Heaven” will be sitting under a Covers Direct car cover at SATA’s booth (#10609), awaiting an unveiling that will take place between 10–11 a.m. At that same time, SATA will be displaying their new SATAjet 4000 B Camouflage spray guns, Mitch said. “No Tom Kelly holding the concept rendering of “Blue Heaven” one is going to see this compressors; sandpaper from Surf vehicle until we pull that cover off of it, Prep; and waxes, polishes, and clean- so if you’re there, stop by and get the ers from Mothers Polish in Hunting- first look at this car.” ton Beach, CA. By collaborating with Tom and Mitch Kelly will both be their sponsoring companies and using on hand to display their artwork and their best-of-the-best products, Tom sign posters at SEMA’s PPG booth and Mitch Kelly can build a vehicle (#24501) every day during the entire like this amazing 1957 Chevy. show, Kelly said. “Come see all of the “Without our sponsors, we’d be PPG products we used on this beautileft hanging. With their help and their ful classic car. It’s our SEMA surprise top-tier products, we’re able to create and we’re obviously very proud of it!” arms, power steering brakes, gas tank and front suspension; American Racing for wheels, called the Burnout series; Quick Cut sanders distributed by All-American Tool Corp., in Orting, WA; SATA Spray Guns; Kaeser air

CREF Reception at SEMA Invites All with RSVP

Members of the collision industry are invited to a reception highlighting the Collision Repair Education Foundation’s work. The reception will be held during this year’s SEMA Show, on Oct. 30 from 9:30 p.m. to 11 p.m. at The Las Vegas Hotel (formerly a Hilton prop-

Clark Plucinski

erty). At the event, attendees will learn about the Education Foundation’s work in supporting collision repair students, and donors and supporters will be acknowledged. The Education Foundation will also announce two schools who will be chosen for the 2012 Ultimate Collision Education Makeover grant, a $50,000 gift. “We hope the industry will join us during this reception, as we not

only will be highlighting our industry supporters and hear directly from collision instructors on what the millions of dollars in donations has meant to them, but we will be announcing both the secondary and post-secondary makeover grant winners,” said Clark Plucinski, executive director of the Education Foundation. “The collision industry should be celebrating the fact that, through their support, the Education Foundation has gone from providing $300,000 in support in 2008, to $4.1 million last year, and we plan on providing over $10 million annually to schools by the end of next year. This is only possible through the industry’s direct involvement with collision students and instructors nationwide. Please join us as we celebrate our recent successes in providing support and learn about our work towards enhancing the industry’s future.” Anyone who wants to attend the reception will need to RSVP by emailing info@ed-foundation.org. For questions, call Associate Director of Development Brandon Eckenrode at 847-463-5244 or e-mail him at Brandon.Eckenrode@ed-foundation.org.

www.autobodynews.com | OCTOBER 2012 AUTOBODY NEWS 33

Gunder’s Has 15 Insurers Paying New Labor Rate “15 and Counting,” answers Ray Gunder. “That’s how many insurers, since this past August, have seen fit to pay our revised labor rates rather than to try and legally defeat what we deem to be ‘reasonable and necessary!’” Gunder goes on to state: “It’s been a busy few weeks, and while 14 of the 15 insurers conceded without so much as a whimper, Infinity Ray Gunder Insurance needed a bit of persuasion. With the help of our legal counsel, Attorney Brent Geohagan’s representation of Gunder’s Auto Center, Inc., they too came to the right conclusion and are paying our new labor rates for body and refinishing, as well as an elevated labor rate for frame/unibody repair. Of course they are also paying applicable legal fees and costs for the lawsuit as well.” Gunder has 12 current lawsuits pending against State Farm, Allstate, USAA and GEICO for their failure to

pay “reasonable and necessary” allowances for labor and materials and five lawsuits against the insurers for labor rates alone. “I can’t express what a feeling of freedom and an incredible sense of independence it gives me to once again have control over my business and its destiny,” said the founder of the Central Florida-based 44-yearold collision repair shop. “For the first time in a long time, I able to offer my employees a pay raise! They have stuck with me through thick and thin and it’s time they were rewarded for their loyalty and support.” Gunder went on to say, “Like many, I suppose, I’d forgotten what it was like to operate my business without other’s telling me what I could and couldn’t do.”

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Mississippi Collision Repair Association Plans to Expand to the North and South The Mississippi Collision Repair Association met Aug. 20 to discuss how shops can collect the balance on short paid claims. Attorney Melvin Pace explained how by having vehicle owners sign Power of Attorneys to give shops the right to make repair decisions and collect all money owed for repairs. The newly revived association has plans to expand in north and south Mississippi. The next meeting will be held in Gulfport, MS, on Sept. 20 and the October meeting will be held in north Mississippi. “Our goal is to have three well-organized districts addressing the local members’ needs on a regular basis,” said acting president John Mosley. “We will have the membership vote on having a statewide meeting/convention annually.” The MCRA recently submitted a survey to their membership, addressing training, database providers, warranties, paint booths and other issues. The questions on the survey included: “Do you use the procedure pages to prepare estimates?” Every shop answered ‘yes.’

“Are there any procedures identified by your database as not included in the published repair labor allocation which you do not intend to be paid for? If so, please identify them.” The conclusion was 100% in that every shop intends to be paid for all the required performed procedures. Not one shop identified a procedure they did not expect to be paid for. “This association intends to seek fair treatment for its members from the insurance industry,” Mosley said. “We will no longer sit back and have an industry tell the member shops ‘I won’t pay this because you’re the only one in this market area asking to be paid.’ This is a deceptive tactic used to intimate or scare a small business and it will not be tolerated any longer. Not in Mississippi, anyhow. “The member shops are growing and are learning we can stand together united in a cause while competing for business in a fair manner. More shop owners are realizing we are not enemies because we seek the same customer. As allies, we have a powerful voice. Our voice is being heard.”

ASRW Announces Content, Speakers for Industry Forum, Oct. 12 The Automotive Service and Repair Week (ASRW) Industry Forum is scheduled for Friday, Oct. 12, from 8:30–10:15 a.m. and will again feature collision and mechanical specific sessions. Tickets for the forum are included in the purchase of a Super Pass or may be purchased individually during online registration or on-site for $50. Attendees may select the forum sessions of their choice. “More than ever, the ASRW Industry Forum sessions are addressing the most current, controversial topics on both sides of the industry, and participants can expect not only lively discussion, but thought-provoking comments from those at the center of each issue,” stated Ron Pyle, ASA president.

The schedule for the forum is: 8:30 AM–9:15 AM: What Else Is in the Box? More Than Just the Part! (mechanical) Top manufacturer members of the Automotive Aftermarket Suppliers Association (AASA) will discuss the intangibles and value-added services

that go into quality parts in this panel discussion including: ● What goes into a product from concept, design, testing, manufacturing, distribution and service after the sale. ● Brief comments on specific processes followed by their respective companies to ensure the highest quality products. ● Question-and-answer session with attendees. Moderated by: Jack Cameron, AASA vice president. Panelists include: Bobby Bassett, Gates Corp.; Scott Howat, Affinia; and Jack Vollbrecht, Remy International.

Insurance Panel Discussion (collision) The insurance panel discussion will focus on where the insurance industry is headed, and provide the audience with an understanding of where these major insurers see their industry going, including: ● Consolidation of the market ● Integration of cloud computing ● Retaining their policy holders. Moderated by: Dan Stander, AAM, Fix Auto Highlands Ranch. Panelists include: George Avery, State

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9:30 AM–10:15 AM: Paving the Road to Success: The Next Generation (mechanical) Moderated by: Dave Kusa, Autotrend Diagnostics. Panelists include: Taylor Hill, Larson’s Service Inc.; Josh A. Ingram, AAM, Colchin Automotive & Diesel Inc.; and Charles “Chip” Wright, Pete’s Garage Inc. A special thanks to these individuals who served as consultants to this session: Pete Rudloff (coach), Pete’s Garage Inc.; and Amanda Clements Mooney (adviser), C&C Automotive Inc.

Parts Supplier Panel Discussion (collision) The parts supplier forum discussion will focus on the pressures of the industry from the suppliers’ perspective, including: ● How suppliers distinguish themselves through distributor certification and customer service; and

● How suppliers interact with information providers in bringing their parts to market. Moderated by: Denise Caspersen, Automotive Service Association (ASA). Panelists include: Mike Dolabi, National Autobody Parts Warehouse; Terry Fortner, Keystone/LKQ; and Dan Morrisey, PartsChannel Inc. The ASRW Industry Forum was created in 2010 as a professional platform for interactive discussion of the industry’s hottest, most current topics. Sponsors for the event include the National Auto Body Council (NABC), the Collision Repair Education Foundation (CREF), Women’s Industry Network (WIN), National Institute for Automotive Service Excellence (ASE) and the Automotive Management Institute (AMI). All proceeds from the forum benefit the training and education of these organizations.

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On Creative Marketing

Information Mining for Profit with Thomas Franklin

I've written about ways to use the customer information form to build business many times, but I still come across estimators who either expect front desk people to handle it and then ignore it, or just capture the minimum info about the vehicle and insurance company. Somehow many estimators simply don't understand the value of this form as a sales and profit tool. Perhaps an estimator's boss, the shop owner or manager, foolishly pays estimators a flat rate with no meaningful incentive to increase business volume and profits, but even estimators I know who are paid incentives still fail to use the form intelligently. I have to conclude they simply don't grasp the real meaning or value of this form. This form may be one of the most valuable of all forms in a shop! Used properly it can open the door to business and family referrals, provide many ways to make a customer a customer for life, and a wealth of ways to close the sale. In addition to the obvious questions like family and children's birthdays, anniversaries, and other key events, a good info sheet asks for business or employer info and any company vehicle info. A lazy estimator will expect front desk people to capture as much info as they can, but a smart estimator seizes the opportunity to talk with the customer and fill in the form for him or her. A smart owner sends out birthday, anniversary and holiday greetings, but a smarter esti-

mator gets to ask about other family members and associates and their vehicles. This is a perfect time to offer a family or company discount or free car wash or detail to bring in other family members or business associates. While all of this should be standard customer sales mining, there is an even more important sales use for this form. With the sluggish economy, vehicles are being kept longer. One estimate is now eleven years on average. This means that people keeping their vehicles longer may not be adding collision coverage to their auto insurance. This has increased the volume of self-pay jobs to what may be 20 percent or more for many shops. Unfortunately if the estimator hasn't used the info form to see if it's an insurance pay or self-pay job, he or she might write an estimate that assumes an insurance level of payment to restore the vehicle to pre-accident condition. If the estimator knows it will be a selfpay job, he or she will usually ask the customer just how much restoration is desired and how much the person's budget will bear. Knowing there is a limited budget, an estimator may suggest used or aftermarket parts and other cost-saving measures. I spoke to one estimator recently who told me most self-pay jobs were very low-priced minor repairs that probably cost more to process than they were worth. I asked if this was always true, and he had to admit that occasionally they would get a self-pay

Tom Franklin has been a shop sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin

job worth many thousands of dollars. He had to admit that a couple of these jobs would compensate for a great many low or no-profit jobs and that it was probably still worth while to take the time to do the self-pays when they came along. Once again, the customer information form could be a key to profitable self-pay. When faced with a thousand-dollar deductible, even some insurance-covered damage might be profitably converted to selfpay. Most people know that if they have the insurance company pay for repairs, there is a fair chance their premium will rise. A repair job in the $2000 range with a $1000 deductible could easily be a wash if the probability of a premium rate increase is factored in. And if the job became self-pay, once again the estimator could show the customer ways they could reduce the cost of the repair (without reducing the shop's profit). The low-budget self-pay indica-

tion on the form is just one heads-up advantage for the estimator. A more profitable opportunity might be suggested for more affluent types. Some customers might choose to replace an external part with a more cosmetically appealing part and be willing to pay for an upgrade. Pinstriping, graphics, clear-bra or other paint-related addons might be suggested. Mothers transporting children or pets might be in the market for additional safety items or restraints. Truck owners might be interested in any number of add-ons. Handicapped people could be looking for a specific upgrade like a power running board. A careful reading of the form can reveal many possibilities before even looking at the vehicle. Handled properly, the customer information form can be a window into the customer's mind. That little bit of information mining could turn into some gold mining for the shop.

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NABA Announces Survey Results

A recent study by the Nebraska Auto Body Association (NABA) showed that the average repair bill for a collision-damaged vehicle was $2,593 during the first quarter of 2012. Insurers used policyholders’ reserves to pay for 72% of repairs performed by Nebraska collision shops, while 24% of payments were paid directly by customers. OEM parts accounted for 51% of parts used. Certified aftermarket parts accounted for 32%, while recycled parts were used 14%. Regarding sales during the first quarter of 2012 compared to the first

quarter of 2011, 50% of shops reported no change, 8% of shops reported an increase and 42% of shops reported a decrease in sales. A surprise was the number of shops that did not have any DRP affiliations. Approximately 58% of survey respondents did not have any DRPs, 8% participated in one DRP and another 8% belonged to two DRPs. Finally, 17% of respondents belonged to two DRPs and 8% said they were on at least six DRPs. The average number of years in business was 24, and 76% of shops said they were family-owned.

36 OCTOBER 2012 AUTOBODY NEWS | www.autobodynews.com

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www.autobodynews.com | OCTOBER 2012 AUTOBODY NEWS 37

consumer will chose the shop that is in their best interest.” For CARA membership, a shop owner or manager must directly work in the collision repair industry. Mem-

Eggleston, Jeff’s Automotive Repair (New Carlisle); and Dane Patterson, Jasper Engines & Transmissions (Columbus). Six members become officers on the Executive Committee by voting members of the board from a ballot presented by the Nominating Committee. These are President/Chairman Joe Sanfillipo, III, USA Collision Centers (Harrison and Cincinnati); Immediate Past President Daniel Torbeck, Torbeck’s Auto Repair (Cincinnati); President-Elect Dennis Sterwerf Jamie Chilcoat, AAM, C & C Tire of Harrison; Mechanical Division Chairman Matt Overbeck, Overbeck Auto Services Inc. (Cincinnati); Treasurer Frank Eich, Southside Automotive Inc. (Youngstown); and Assistant Treasurer Joseph Brinkman, Brinkman Service Center (Minster). While ASA-Ohio does not hold an annual conference, the board meets quarterly. “Our quarterly board meetings generally contain training sesSee Ohio Associations, Page 47

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bership dues are $300 annually for basic shop ownership. CARA is affiliated with the Automotive Education and Policy Institute, U.S. Alliance of Collision Professionals, The Society of Collision Repair Specialists and The Coalition for Collision Repair Excellence. CARA offers its members AMI training through corporate sponsor, BASF, as well as legal documents and consumer informational brochures, all at no charge. Finney notes that he also negotiates with vendors for purchasing discounts available to association members; some include rebates to members for purchases made through associate, or vendor, members. CARA also sponsors conventions, seminars and phone consultation to those needing information or problem resolution. Although CARA does not have a lobbyist, Finney has met on many occasions with the Ohio Department of Insurance, as well as the Ohio Attorney General’s Office of Consumer Protection on behalf of consumers and CARA members. He notes that the association is focusing on a number of insurance-industry issues: underpayment of claims, suppression of labor rates, unrealistic reimbursements on paint materials, OEM parts, steering and overall control issues. Assisting Finney are CARA board members Dave Weber, Dawn Hilty, Dave Aman, Vickie Westfall and Rob Alexander.

members statewide, the Ohio group has been associated with the national organization, and its predecessors, since 1955. That year, the organization was established as the Independent Garage Owners of Ohio, Inc. and was affiliated with what was then known as the Independent Garage Owners of America, Inc. (IGOA). This became ASC (Automotive Service Counsel) which eventually merged with other organizations to become the ASA. One ASA-Ohio member, Ron Nagy, AAM, owner of Nagy’s Collision Centers, Orrville, is the chairman of ASA’s national board of directors and is serving his second year as chairman of NACE, Oct. 10–13, in New Orleans. The ASA-Ohio Board of Directors is elected annually from the designated region by the regional membership to represent each discipline—collision and mechanical. These are Mark Boutwell, AAM, Boutwell Collision Center (Findlay); Joseph Brinkman, Brinkman Service Center (Minster); Dennis Sterwerf, AAM, Fairfield Auto & Truck Service; Jeremiah Friesner, Jeremiah’s Automotive Service (Heath); Jeff

Ohio Associations

Alexander is the manager at Brown Body & Paint Center, which has been a member for four years. The Toledo-based 86-year-old dealer’s body shop has been in the current location since 1989. “CARA empowers customers to choose the repair facility and not let an insurer (the fox guarding the hen house) decide,” he says. CARA also stresses that “body shops are our businesses—regardless how large or how small—and we don’t belong to an insurance company,” Alexander says. “As owners and managers, we are responsible for their existence and we are the ones who set pricing because every one of us has a unique set of expenses and or overhead that is not always applicable to all shops,” he adds. “We deserve to get paid, so charge enough to make a profit!” One of his customers, who was the benefactor of quality repair and good service at the shop, told him that it’s clear to consumers that body shops and insurance companies are fighting over what he called “surplus”—that body shop profit is an expense for insurance companies and the discounts and or missed shop billing opportunities are additional profit for insurers. “Even an outsider can see the inappropriate methods of business being practiced by insurance companies,”

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Alexander says. “But, because of my association affiliations, I was able to help my customer make a choice that was best for him and his family.”

ASA-Ohio The larger ASA-Ohio is based in Columbus and is an affiliate member of Colleyville, Texas-based Automotive Service Association (ASA), which serves the automotive service/repair industry internationally through education, representation and member services. With 300-plus

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Industry Insight

John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.

Shops Can Put News, Trends Related to Insurers to Good Use with John Yoswick

It’s easy as a shop owner to get so caught up in day-to-day operations that it can be a challenge to follow the news directly affecting collision repairers. But there’s plenty of “insurancerelated” news that shops also should know about, because it can help them educate their customers, market their business, and maybe even alter how they vote or shop for insurance themselves. Loyalty doesn’t always pay. Have a customer with an insurer you’d rather not work with? You might want to tell them about a new study that found that a policyholder who stays with the same auto insurance company for more than eight years could save 19 percent on annual premiums by switching. “Consumers must shop their policies to ensure they aren’t overpaying for insurance,” Deeia Beck of the Texas-based Office of Public Insurance Counsel (OPIC), said. Beck said her organization’s data shows “the longer a policyholder stays with the same company, the more likely it is that they are overcharged.” Even after just three years, Beck said, a consumer stands to save 5.2% by switching. Despite this, a 2010 study from Deloitte found that four out of 10 auto policyholders were with their insurer for more than a decade, and that six out of 10 of policyholders “rarely or never shop their policy for a better deal.” Read more about this study at: http://tinyurl.com/bq8s5cv.

Feds still considering regulation The role of financial institutions in the economic meltdown from which the U.S. is still struggling to recover has helped keep federal regulation of the insurance industry on the table. A recent report released by the Troubled Asset Relief Program (TARP) states that American International Group (AIG, now selling auto insurance as “21st Century”) is still in need of “effective, comprehensive and rigorous” regulation to ensure history does not repeat itself at the insurance giant. The report notes that four years after a

$161 federal billion bailout of AIG, there is currently no designated federal regulator of the company. Meanwhile New Jersey’s Rep. Scott Garrett, a senior Republican member of the House Financial Services Committee, introduced legislation in August that would bar federal regulators from designating insurance companies as ‘systemically significant,’ more commonly referred to as ‘too big to fail.’ Garrett’s bill would prevent insurers from having to comply with heightened regulation and capital standards placed on other types of financial institutions that are categorized as too big too fail.

Progressive stumbles on social media Progressive had taken a pummeling in the social media world recently after a New York man posted a blog with the provocative title, “My Sister Paid Progressive Insurance to Defend Her Killer in Court” (read it at: http://tinyurl.com/8jqtdwa). Turns out Progressive believed that its own insured (the sister of comedian and blogger Matt Fisher) was at fault in the accident that took her life, and assisted with the defense of the driver of the other car (who had a suspended license and little insurance). Though Progressive may have been in the right, it didn’t help its cause in trying to explain the complicated situation by making public statements parsing words, and sending out tweets (some of which originally had Flo’s smiling face accompanying them) saying such things as it had “properly handled the claim within its contractual obligations.” A New York Times article explains the situation well, and could be a good reminder for all insureds to check the amount of uninsured motorist coverage they carry (read at: http://tinyurl.com/8vtzfd7).

Long-standing parts-related lawsuit comes to an end A federal court in California has tossed out class action and individual lawsuits against Allstate, GEICO, State Farm and Liberty Mutual, say-

40 OCTOBER 2012 AUTOBODY NEWS | www.autobodynews.com

ing the plaintiffs in the case failed to provide an admissible method for determining which replacement parts are inferior. The suits, originally filed in 2006, alleged that the insurers created a ‘sham organization’ (CAPA, the Certified Automotive Parts Association, also a defendant in the case) and used other means to conspire to unfairly compete by specifying use of inferior crash parts. The judge’s decision to dismiss the cases was not based on the quality of the parts, but rather on the fact that he found the testimony of the plaintiffs’ expert for evaluating the parts was unreliable. The expert witness for the plaintiffs was Allen Wood, a retired California Bureau of Automotive Repair (BAR) investigator who subsequently was executive director of the Collision Repair Association of California. Wood argued that six non-OEM part

categories and four salvage part categories are ‘inferior’ and have at least a 25% probability of ‘significantly lessening’ the quality of vehicle repairs (in terms of ‘safety, fit and structural integrity’). Insurers called Wood’s testimony “biased, junk-science research” because Wood “is not a statistician or engineer, lacks a rudimentary understanding of basic mathematical concepts and statistical principles, and therefore lacks the relevant expertise to identify and offer quantitative assessments of the alleged ‘inferiority’ of imitation and salvage automotive repair part categories.”

Allstate again ranks best and worst drivers Allstate’s annual ranking of the 200 largest U.S. cities in terms of how frequently drivers are apt to file a claim ranks Sioux Falls, SD, as having “America’s Best Drivers” (for the fifth

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time in eight years), and Washington, D.C. at the bottom of the list. The report indicates that nationally drivers are in a collision once every 10 years; that average is 13.8 years in Sioux Falls, but just 4.7 years in Washington, D.C. Other cities where drivers average 12 years or longer between accidents include Boise, ID; Fort Collins, CO; Madison, WI; Lincoln, NE; Hunstville, AL; Chandler, AZ; Reno, NV, Knoxville, TN, and Springfield, MO. Phoenix led the list among cities of 1 million or more people, with drivers there averaging an accident every 10.2 years. In addition to Washington, cities where drivers average under six years between claims are Newark, NJ; Glendale, CA; and Baltimore, MD. To see the full list, see: tinyurl.com/cx2dz75. Insurers should sell more coverage, not less. A recent claims satisfaction report by J.D. Power and Associates found that insurers are better off selling policyholders broader coverage with lower deductibles rather than lower-priced policies with more limitations and higher deductibles. “Settlement satisfaction falls significantly among claimants paying in

excess of $300 beyond their deductible, with satisfaction 89 index points (on a 1,000-point scale) lower than among those who pay only their deductible,” J.D. Power reported. The finding indicates insurers may improve customer retention if they do a better job convincing consumers they’ll be better off in the long run with a more all-encompassing policy. Think quality, not just price. ConsumerReports.org in September reminded readers that its surveys find that, depending on the insurer involved, between 10% and 26% of those filing an auto insurance claim encountered a problem. The article encourages consumers to choose a “top-rated insurer” rather than one that costs less but “may cost you more overall by low-balling loss estimates, forcing the repair shop to cut corners and making you pay extra for OEM parts if you choose them over cheaper knockoffs.” Go here to read the article: http://tinyurl.com/cjspd4k.

Growth of telematics spurs concerns As Allstate, Progressive, State Farm and The Hartford continue to expand

availability of their policy discounts based on use of data from in-car monitoring systems, many consumers continue to voice privacy concerns. California Department of Insurance spokeswoman Pat McConahay said some state regulators have lingering “concerns about the technology” used in the programs, which can track both how and when a vehicle is being driven. “There are concerns that insurers might penalize drivers for factors outside of their control,” she said. “One example might be charging more to a customer for their occupation that forces them to drive at night.” An insurance industry blog this fall quoted a Deloitte Consulting analyst who believes even many good drivers have privacy concerns that make them unwilling to provide data to an auto insurer through telematics just to save $100. The consultant argues that insurers may miss out if they just presume these drivers “have something to hide.”

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New IIHS Test Aims to Improve Frontal Collision

The Insurance Institute for Highway Safety (IIHS) has raised the bar with its new small overlap frontal crash test. With a 50th percentile male Hybrid III dummy in the driver seat, 25% of the car’s front end on the driver side strikes a 5-ft-tall rigid barrier at 40 mph. These small overlap crashes, which affect the outer edges not protected by crush-zone structures, are responsible for a considerable percentage of the 10,000 deaths in frontal crashes each year. The test utilizes three rating categories: structure, restraints and kinematics, and dummy injury measures. Of the vehicles tested, the Volvo S60 performed the best, permitting only a few inches of intrusion into the occupant compartment due to reinforcement of the upper rails and a steel cross member below the instrument panel. Common problems with other vehicles included high occupant compartment intrusion and unsafe occupant motion, including dummies that missed the airbag or moved too far forward toward the Apillar. After 2013, the IIHS intends to add the small overlap frontal crash test to its list of evaluations for the Top Safety Pick award.

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AASP-MA Talked Parts Procurement at State Meeting

The Alliance of Automotive Service Providers of Massachusetts (AASP/MA) tackled the parts procurement issue with a panel of industry representatives from across the country at its statewide meeting on September 12. The panel provided an update on the parts procurement issue, including the latest developments with State Farm’s PartsTrader program. AASP/MA President Rick Starbard was joined on the panel with Toyota Wholesale Development Manager Jerry Raskind and Toyota Collision Consultant Rick Leos Raskind, as well as Society of Collision Repair Specialists [SCRS] Executive Director Aaron Schulenburg, Coalition for Collision Repair Excellence (CCRE) President Tony Lombardozzi, and Gary Danko, Balise Auto Group’s Connecticut wholesale parts representative. “The insurance industry has attempted to present parts bidding programs, most notably, PartsTrader, as so-called ‘win-win’ situations for all parties involved,” said Starbard. “In looking at these programs in-depth, we fail to see any ‘win’ for anyone but the insurance industry. In a state like Massachusetts, where our only real profit

margin is derived from parts markup, programs like the one State Farm is attempting to introduce could have devastating effects. We’ve set up this panel to not only educate members on the parts bidding issue in general, but also to give a wake-up call to those who think it can’t happen in Massachusetts. Parts procurement is not a DRP issue; it’s a profit issue. I encourage any repairer who is concerned with maintaining profits in his or her shop to attend this meeting; it will be an eye-opener.” Added Schulenburg, “I believe the association’s decision to host a panel that will offer perspectives from all sides of the industry that will be impacted by these types of insurermandated programs is a great one.” “I believe the more communication and information exchanged on this issue, the better,” notes Lombardozzi. “Around here, I hear some people saying, ‘State Farm doesn’t have Select Service in Massachusetts, so PartsTrader won’t affect me.’ Wrong. As soon as State Farm and PartsTrader are successful in one market, it’ll only be a matter of time before other insurers take the lead with similar parts procurement systems. Programs like PartsTrader could very easily make their way into Massachusetts and beyond.”

42 OCTOBER 2012 AUTOBODY NEWS | www.autobodynews.com

CREF Offers Free Industry Classes for Students at NACE

The Collision Repair Education Foundation is offering several free industry sessions for secondary and post-secondary collision students and their instructors attending the International Autobody Congress & Exposition (NACE), set for Oct. 11-13 at the Morial Convention Center in New Orleans. The sessions will be held Friday, Oct. 12 and will provide helpful industry and career information to collision students who wish to enter the industry after graduation. Session descriptions are as follows: • 11 - 11:45 a.m. – LKQ Corporation – “Repair and Recycling an Opportunity” – Presentation will include discussion on perception and reality of motor vehicle recycling; LKQ Corporation company overview; employment need and segmentation; jobs and careers in motor vehicle recycling. • 1 - 1:45 p.m. – Sherwin Williams Automotive Finishes – “Sherwin Williams Automotive Finishes training prides itself on our class offerings, which brings to our customers the products and processes that provide our collision repair customers with the knowledge they need to be productive and profitable into today’s business en-

vironment. Join us for a walk through Sherwin Williams Automotive Finishes Standard Operating Practices and our products that will help any shop become lean and process-driven by using the latest in technologies.” In addition to the student sessions during ASRW, all attending secondary and post-secondary collision students and instructors will be provided complimentary Cintas technician uniforms to wear on the show floor and back home within their school’s collision programs. The sponsors of the 500 technician shirts include CAPA, CCC Information Services, FenderBender, LKQ Corporation and LORD/Fusor. “These attending collision students are the future of the industry, and the Collision Repair Education Foundation is proud to work together with NACE to help educate this group on upcoming industry trends and career advice,” said Collision Repair Education Foundation Executive Director Clark Plucinski. “I would invite all industry members to join in our efforts to support this group as only through assisting them in their technical education will there be a greater promise of the industry’s future.”

2012 SEMA Show Provides Expansive Activities for Collision Repair Professionals Very soon, the doors of the 2012 SEMA Show opens to automotive industry professionals all over the globe. Earlybird pricing for show admission and registration for the Society of Collision Repair Specialists’ (SCRS) Repairer Driven Education (RDE) series is still available until October 15th. Now is the perfect opportunity to plan out your trip to Las Vegas! Experience the premier automotive trade event in the world while taking advantage of all the networking opportunities and education classes offered by SCRS and other collision industry organizations at the SEMA Show. SCRS is pleased to provide an overview of some of the collision repair meetings and events made available to the industry: Tuesday, October 30th 10:00 - 12:00PM LVCC, North Hall, Upstairs SCRS’ RDE Headline: Is New Vehicle Technology Endangering Your Business? (Free, registration required; register at www.semashow.com/scrs) 12:30 - 2:30PM LVCC, North Hall, Upstairs SCRS’ RDE Sessions (Register at www.semashow.com/scrs)

3:00 - 5:00PM LVCC, North Hall, Upstairs SCRS’ RDE Sessions 5:30 - 7:00PM LVCC, North Hall, CRR Stage SCRS Annual Report (open meeting) 9:30 - 11:00PM LVH, Pavilion 9 Collision Repair Education Foundation Industry Reception

Wednesday, October 31st 8:00 - 12:00PM LVH, Pavilion 9-10 Collision Industry Conference (CIC) 12:00 - 2:00PM LVH, Ballroom B Collision Industry Awards Luncheon 12:30 - 2:30PM LVCC, North Hall, Upstairs SCRS’ RDE Sessions 3:00 - 5:00PM LVCC, North Hall, Upstairs SCRS’ RDE Sessions 6:30 - 9:00PM LVH, Ballroom C-G Collision Industry Conference (CIC) Reception

Thursday, November 1st 8:00 - 12:00PM LVH, Pavilion 9-10 Collision Industry Conference (CIC)

12:30 - 2:30PM LVCC, North Hall, Upstairs SCRS’ RDE Sessions 3:00 - 5:00PM LVCC, North Hall, Upstairs SCRS’ RDE Sessions 5:30 - 7:30PM LVH Collision Repairer Reception 8:00 - 12:00PM LVH, Verona Sky Villa SCRS RDE Sky Villa After Party (Register at www.semashow.com/scrs)

Friday, November 2nd 10:00 - 12:00PM LVCC, North Hall, Upstairs SCRS’ RDE Headline: Game Changers - Innovation Forum 12:30 - 2:30PM LVCC, North Hall, Upstairs SCRS’ RDE Sessions

A complete listing of the SCRS RDE sessions can be found at www.semashow.com/scrs. The RDE series is made possible thanks to contributions and support from SEMA, PPG, GM Genuine Parts, BASF, Ford Motor Company, DuPont Performance Coatings, LKQ, Sherwin Williams, AASP, PBES and Akzo Nobel.

WMABA Hosted PartsTrader Meetings in Two Locations

The Washington Metropolitan Auto Body Association (WMABA) hosted two meetings Sept. 19 in Virginia and Maryland to discuss issues related to State Farm Insurance’s parts procurement program through PartsTrader. Aaron Schulenburg, executive director of the Society of Collision Repair Specialists (SCRS), gave an in-depth presentation on State Farm’s pilot program. “Understanding that not every repair facility can participate and hear the discussions taking place at national meetings, we wanted to bring the discussion to the local level and share with regional areas of the country,” Schulenburg said. “These insurer mandated parts procurement programs have the potential to drastically affect every repairer if our industry isn’t cautious about understanding the potential ramifications. This isn’t about one carrier, one process or one business model. It is about insurer control over repair facility processes, and insurer intrusion into your business. If these programs are launched nationally, and the repair industry watches it happen, business for repairers and parts vendors will be affected.”

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www.autobodynews.com | OCTOBER 2012 AUTOBODY NEWS 43

Body Shop Move Enforced by Judge for PA Route 29 Expansion In a legal battle that involved a body shop owner, his former attorney, the Pennsylvania Department of Transportation and the expansion of Route 28, a judge recently ruled that William Lieberth Sr., 56, owner of an auto repair shop on Route 28, must agree to a PennDOT settlement, pay his former attorney and vacate his North Side business by Oct. 1. Lieberth said he plans to appeal. In an interview with the Pittsburgh Post-Gazette, he said he is prepared to die for his building. After the order was issued, Leiberth said he planned to continue to fight for his building and that he would consider it an honor to die for it. He did not elaborate on what that meant but said, “I’m pure German descent. We know how to fight. I am fully prepared, if I have to.” PennDOT, which acquired the land through eminent domain, has said the ongoing Route 28 work requires demolition of Lieberth’s building and the adjacent parking lot. Lieberth ignored a letter he received from PennDOT in July telling him he must vacate his building by Aug. 6. Lieberth has owned and operated Allegheny Auto Body since 1976. He said he ignored the vacate notice because he had nowhere to move his business. The Allegheny County Common Pleas Court order, written by Judge Michael E. McCarthy, enforces a settlement that representatives for the Pennsylvania Department of Transportation and Harvey Robins, a former attorney for Lieberth, said they agreed to in early August. “There can be little real controversy in this matter that an enforceable agreement was reached and must be honored,” Judge McCarthy wrote. Lieberth owns the last business located along the north side of the Route 28 expansion construction area and refused to leave after receiving an order to vacate the property on East Ohio Street. He insisted that he never agreed to a $245,000 settlement with PennDOT to give up his business for the widening project. Allegheny Auto Body sits just 10 feet from the road. Lieberth fired his attorney Aug. 22, saying he did not agree to the $245,000 settlement with 30% due to

the attorney and a move-out date of Oct. 1. Lieberth also said he should not have to pay his attorney. “I didn’t authorize him to accept this offer,” Lieberth said. “I did not sign this agreement.” According to Lieberth’s former attorney, his client agreed to a $245,000 payment plus $3,500 in interest. In addition, he was able to extend the date Lieberth must vacate the property from the end of July to Oct. 1.

William Lieberth will have to move his shop to make way for a road project

“He said, ‘Well, that’s a good number. Do the best you can,’” Robins told the court, prompting a shout from Lieberth in the gallery, saying, “That’s not true.” Lieberth was admonished by Judge McCarthy who ordered him to wait his turn. “That’s why I fired him Aug. 22. They tried to get me to sign it. I said I’m not going to sign it. I just told you in court; now it’s recorded. I didn’t authorize him to put the $245,000 on the price,” Leiberth said. Lieberth had previously stated that given the percentage of attorney’s fees and no guarantee he can relocate close by, he didn’t think $245,000 was quite enough and doesn’t equal the shop’s value. “The whole gross amount, including moving fees and possibly attorney fees, I can gross here in two years,” Lieberth said. “They aren’t doing me any favors.” A company he hired to do an appraisal set the land value at $285,000. The Allegheny County Board of Viewers set it at $215,000. The shop owner’s former attorney told the court the two sides met close to the middle. “I don’t know what else I could do for the client,” Robins said. Lieberth’s main concern is that he has no place to move his business. “I have nowhere to go,” he said. “They’re trying to force me to accept this settlement, and I said no.”

44 OCTOBER 2012 AUTOBODY NEWS | www.autobodynews.com

He asked PennDOT as part of the settlement negotiations to provide him with another property where he could move his business. But the agency did not do that. “I have nowhere to go, that’s the main thing,” Lieberth said, adding that he wants to remain in the vicinity of his current address, visible to his customer base and separate from the competition of other auto repair shops. “They think because they have eminent domain, and the sheriffs can kick you out, they can do anything,” Lieberth said following a hearing prior to the ruling. “I’m getting screwed over. I just told the county police I’m not gonna fight with them when they come down to my building,” said the body shop owner before the ruling. “They’re going to evict me. I know they are. That’s why I didn’t even dress up for them.” “They’re going around the church and around my body shop. I looked at the plans. I’m right beside the church,” Lieberth said. PennDOT has said that the construction phase requiring the property

occupied by Lieberth’s auto body shop will begin in late 2013 and be completed in 2014. “I’ve been there 37 years. My son’s been there 18 years. We’re the only shop on the North Shore. We’re serving the whole community,” Leiberth said. He had planned on leaving the shop to his son and grandson. “No more body shop and it’s the same old thing,” Leiberth said. “PennDOT doesn’t care. They don’t care that I’m the last shop. Me and my son are historic. We are the last humans on 28. It’s very sad that we’re the last humans for 40 miles. They took everything from this highway and they took my neighborhood.” PennDOT first contacted Lieberth about acquiring his property and relocating his business in March 2007 but failed to reach agreement for years, even as 15 residents and 24 businesses were relocated, most with amicable settlements, the state agency has said. PennDOT paid Mr. Lieberth $115,000 in estimated just compensation for his property in November 2011, including liens.

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Connecticut Association Voices Alarm About PartsTrader The Auto Body Association of Connecticut (ABAC) released this following statement, taking a position on State Farm's PartsTrader program: The ABAC stands with our brother and sister organizations across the country decrying State Farm’s PartsTrader program. The endeavor is a wolf in sheep’s clothing. It is bad for repairers, part manufacturers, and most importantly, consumers. The only two enterprises in place to profit – and profit handsomely – are State Farm Insurance and PartsTrader. PartsTrader is a web-based, collision part sourcing, quoting and ordering system. According to its website, “PartsTrader is a tool to improve the collision replacement parts sourcing, quoting and ordering process. We are not a parts retailer. We facilitate the matching of collision repairers with replacement parts suppliers.” Currently, PartsTrader is open only to State Farm Select Service repairers and parts suppliers nominated by Select Service repairers. According to PartsTrader, however, its long-term goal is to make PartsTrader available to the entire U.S. collision repair industry. The idea, as we see it, is to hood-

wink the part suppliers and repairers into negotiating away their respective profit margins in the name of greater profits for State Farm. Despite the program being sold as a benefit to repairers and consumers, it quite clearly benefits neither. There are already programs in place to ensure competitive pricing. What PartsTrader does is infuse a grossly inefficient process at the expense of the repairers and OEM vendors. Thus, not only is the program redundant, it is also inefficient. What is more, insurers simply cannot continue to draw profits from an already besieged industry without further affecting quality and safety. It just can’t happen. Similar to what is happening in the health care market, the insurer model of perpetually taking in more premiums, while perpetually finding new ways to pay less on claims, is fundamentally corrupting both industries. If State Farm and PartsTrader are successful in penetrating the entire U.S. parts market, State Farm will find itself flush with new profits hot off the backs of repairers, retailers and consumers. It will not take long for the likes of Allstate, Progressive, GEICO and others to follow suit. History and experience

have taught us that any time an insurer endeavors to “improve” the auto body industry, bad things happen. Instead of focusing on the business of insurance, State Farm has, once again, taken it upon itself to meddle with the collision repair industry for its own selfish motivations. Insurers should not be involved in collision repair decisions, collision repair standards, setting pricing on repairs or establishing a new system for the sale and distribution of auto parts. None of this relates to the business of insurance. Members of the ABAC and others across the country have unsuccessfully sought to secure the contractual documents detailing the specifics of this plan and respective rights and duties of State Farm, PartsTrader and the participating auto body shops. As with any program of this scope and degree, the devil is undoubtedly in the details. Seeing as the auto body industry had no say in this endeavor, the specifics are being kept from us, and because we know State Farm’s history of selfishly interfering in our industry, we can only presume that what we do not yet know is even worse than what we already know. All of the facts, not just those selected by State

tC 2011

Farm and PartsTrader, should be on the table. The ABAC surveyed all of its supporting OEM vendors to ask a simple question: Do you intend on participating in PartsTrader? For many of the reasons articulated in this press release, every OEM vendor, all 76 of them, said they will not. Not one OEM vendor said it would agree to participate in PartsTrader. Indeed, we are unaware of any OEM vendor in Connecticut who intends on participating. Given the origin of the PartsTrader program, State Farm’s apparent objectives, the obvious inefficiencies and harms caused by the program, together with the litany of problems already experienced and highlighted by industry leaders across the country, the ABAC felt it imperative to interject its voice into the national debate. For all of the aforementioned reasons, we write to strongly oppose the PartsTrader program. Further, in light of the long-term damage this program will likely cause our industry, we are respectfully encouraging those of you who have not yet weighed in on this debate to carefully examine the pilot program and voice your opinions.

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www.autobodynews.com | OCTOBER 2012 AUTOBODY NEWS 45

Shop Owner Nets $3.4 Million in Paint Contract Lawsuit by Melanie Anderson

In a two-year battle about waterborne paint and paint company contracts, Austin, TX, shop owner Richard Wood, 48, recently won a $3.7 million jury verdict against paint companies BASF and jobber FinishMaster, but the jury also found that he should pay damages for breach of contract. Wood owns Richard’s Paint and Body Shop, which operates under the name Custom Car Crafters. Wood, who has been in business since 1984, has two shops, a 30,000 square-foot building on the north side of Austin and a 12,000 square-foot shop on the south side of town. On Aug. 30, a federal jury unanimously found BASF and FinishMaster guilty of fraud and breach of warranty to paint supplied to Custom Car Crafters, awarding the shop punitive damages of $1.5 million from BASF and $750,000 from FinishMaster. Custom Car Crafter’s was also awarded $1.5 million in compensatory damages. The legal troubles began in 2010 when the paint companies sued Custom Car Crafters for breach of a paint contract. Wood quickly countersued. The court also found that BASF suffered as a result of the shop’s breach of contract and they were awarded $176,000. Additionally, the jurors found that the body shop failed to prove that its failure to pay FinishMaster liquidated damages was excused, awarding $100,000 in damages to FinishMaster. Custom Car Crafters will net $3.4 million. At the heart of the matter is Wood’s claims that the BASF 90-line waterborne paint they sold the shop was “unfit and defective” in Austin’s heat and humidity and that instructions for easy-to-use standardized mixing ratio of 2:1 was inaccurate. Custom Car Crafters was obliged to follow the paint instructions to maintain the BASF and FinishMaster warranty on cars they painted, but Wood said in the Texas climate, the paint would not dry in a timely fashion or sometimes not at all. In court documents, the paint was described as resulting in “seediness, bubbling, fish eyes, side casting, dye back and delamination, among other problems.” Wood said he notified BASF and FinishMaster in a timely fashion about

the defective paint and instructions and of the severe impact these defects were having on his business. In response, BASF and FinishMaster

When Richard Wood was sued by the paint companies, he filed a countersuit. After a two-year battle, Wood won a $3.7 million jury verdict

blamed the problems on shop employees and their application of the paint. So Wood requested that the BASF send himself and another employee, along with a FinishMaster rep, to a training course. According to court documents, while at the training course in California, a BASF instructor informed Wood that BASF and FinishMaster’s training and instructions were inappropriate for the Texas heat and humidity and that no proper manual existed for that region. The BASF instructor also told Wood that BASF and FinishMaster failed to sell him the correct supplies and additives. After a year of struggling with the paint, Wood claims the companies admitted there was not a set 2:1 formula for the paint. After repeated failed efforts, the shop acted to mitigate its damages by terminating its contract, halting use of the BASF and FinishMaster Paint, and obtaining the paint that was necessary for the shop to conduct its business. Wood said he tried to return the paint and materials back to the paint companies but that they refused to collect them. Wood noted that as a result of the defective paint and its instructions, his shops had to repaint 565 vehicles and that it incurred costs in excess of $100,000 for labor and materials and another $100,00 for rental cars during

46 OCTOBER 2012 AUTOBODY NEWS | www.autobodynews.com

repainting. Wood expects these costs to increase as additional vehicles are returned for repainting under their lifetime warranties. “I did not track most of the repaints for the first three to four months due to the fact that BASF blamed the painters. I also was already spraying [another] water base for over four years and had the same painters with no problem,” Wood said. He also said he spent $500,000 on paint materials, but only collected $320,000 from insurance companies for reimbursement of paint materials. In addition, the shops had to turn down other work in order to repaint the cars. To make matters worse, three of his painters quit due to the paint companies ‘blame game’ and the number of re-dos required. Wood also claims the defective paint and instructions harmed his shops’ highly valuable reputation and relationships with insurance carriers. Wood said the defective paint caused his business to suffer from loss of earnings and profits, loss of earning capacity, damage to reputation, loss of staff, out-of-pocket costs and

costs of storing the paint when the companies refused to take it back. Wood also said BASF and FinishMaster told him if he switched to 90line he could end his previous PPG paint contract without penalty. Wood said he still had to pay $73,000 to PPG. In its suit, BASF and FinishMaster said the shop failed to purchase BASF products for five years as part of a contract in which the shop received $320,000 cash from BASF and FinishMaster. According to co-counsel Broadus Spivey, the court has not yet entered a judgment on the verdict, which means the judge orders the jury’s verdict into judgment. “I am sure there will be an appeal. We are ready for that too,” Spivey said. “It is a privilege to represent Richard Wood, who worked so hard to build his business and his reputation,” said co-counsel Karen Burgess. “The jury system worked for justice.” “I feel justice was served,” Wood said. “We won because there was a legitimate problem. They knew they had a problem and they tried to cover it up.”

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Van Tuyl Group Joins NABC as New Diamond Member

The Van Tuyl Group Inc. has become the newest diamond-level member of the National Auto Body Council (NABC), the highest level of NABC corporate sponsorship. The Van Tuyl Group provides management consulting services to 70 automotive dealerships nationwide. The company also operates multiple dealership locations with 36 collision repair facilities throughout Arizona, California, Florida, Georgia, Illinois, Indiana, Missouri, Nebraska, New Mexico and Texas. The NABC said the Van Tuyl Group brings a unique perspective and skillset to the organization as a national dealership MSO. “The ownership model may be different than those found in the independent collision repair market, but our focus is common—facilitating quality repairs that bring the damaged vehicle back to its pre-crash safety and integrity,” said Chuck Sulkala, executive director of the NABC. “We are pleased to have such a prestigious group lend a hand to our efforts and welcome the thoughts and opportunities they will provide to support and promote the good work our industry achieves both on the job and away from it.”

The NABC said the Van Tuyl Group will be highly involved with the 2012 Recycled Rides program, an initiative through which NABC members refurbish vehicles for donation to families and organizations in need. The Van Tuyl Group will donate 36 vehicles for this year’s effort—one vehicle from each of its collision center locations. “Our goal is to help NABC reach its long-term goal of 500 simultaneous vehicle donations in 2012,” said Rafael Hinojos, director of collision business development for the Van Tuyl Group. The Van Tuyl Group said its Recycled Rides donations will be a collaborative effort with the company’s collision center managers and technicians, insurance partners, rental car partners, PPG Automotive Coatings and 3M. “Van Tuyl Group Inc. and our dealer partners are committed to the industry and the communities in which we operate, so we want to partner with an organization like NABC,” said Darren Huggins, the Van Tuyl Group’s national collision director. “We are honored and humbled for the opportunity to contribute Recycled Rides to families who need a safe and reliable means of transportation.”

ASA Speaks with NWLCRA Regarding PartsTrader Pilot

Denise Caspersen, manager of the Automotive Service Association's collision division, recently attended a Northwest Louisiana Collision Repair Association (NWLCRA) meeting to present to its members the ‘facts to date’ regarding the State Farm electronic parts ordering application. The State Farm pilot is currently taking place in Birmingham, AL; Tucson, AZ; Grand Rapids, MI; and Charlotte, NC. Following the NWLCRA August business meeting, Caspersen discussed the verified facts about the pilot along with clear statements of concern from repairers, based on ASA member feedback to the association. During the three-hour meeting, repairers and suppliers in the Northwest Louisiana area asked follow-up questions and expressed their concerns with the pilot and its potential impact on their relationships with suppliers and consumers. “We are very thankful to Denise and ASA for bringing to collision industry professionals of Northwest Louisiana, East Texas and South Arkansas such a timely discussion of the facts concerning this pilot program. Everyone gained tremendous insight from the up-to-date facts and ASA’s continuing investigation of the

pilot program. We feel complete and open disclosure of those facts by all parties involved is critical,” said Bill Burnside, secretary-treasurer, NWLCRA. “When all the facts are present, good decisions can be made.” Caspersen, who will meet with ASA members in Ohio in September, said, “ASA welcomes the opportunity to speak with repairers and suppliers on this important industry issue. To date, the majority of the industry has a negative view of this pilot. The facts, the pilot results, and most importantly, the concerns of repairers about how this application will affect their business, are what remain vital to ASA. We will continue to work with as many parties as possible to find the answers our members require. ASA is now focused on a timeline in which results of the pilot will be provided.” ASA announcements regarding the State Farm pilot are conveniently located at www.ASAshop.org. Click on ‘Tools & Resources’ (in the blue menu bar), then ‘State Farm Pilot Program.’ ASA reminds members to share their concerns, comments and experiences regarding the pilot by contacting Caspersen at denisec@ASAshop.org, or by phone at (800) ASA-SHOP, ext. 106, or (817) 514-2906 (direct).

EPA 6H rule EPA 6H rule is another important issue for the Ohioans. “Many shop owners don’t fully understand the rule sions that are hosted by our associate and how it intersects with the Ohio matters affecting the industry. Want to Contribute to members this Southwest and are open Edition? to all members EPA laws,” he says, noting that board to attend,” Sanfillipo says. “We try to member Sterwerf, a former board move the meetings to a different remember of ASA’s national board of gion every quarter to allow all memdirectors, is working closely with the utobodynews.com publisher@autobodynews.com bers a chance to attend a meeting Ohio EPA, the U.S. EPA and the close to home.” membership. ASA-Ohio provides education/ Shop licensing is also of concern. THESE DEALERS ARE GENUINE training, state representation and “This WHOLESALE PARTS SPECIALISTS. Promote your business with Promote your business withhot-button issue affects both our small-business solutions at a preferred mechanical and collision members,” an exclusive an article featuring MIC HIGAN OHexclusive IO rate. The organization retainsarticle a leg- featuring Sanfillipo says. “Our members not your products or services. your products or services. islative and regulatory consulting firm only want to create a standard for our To advertise Toyota of Metro Toyota y to monitor and act on automotive-retechnicians and shop owners; we want CLEVELAND Grand Rapids call Joe Momber at: ry lated issues, he explains. to raise the standard in the industry GRAND RAPIDS 800-441-3441 800-699-8251 The group is closely monitoring and level the playing field for anyone 800-354-7037 216-267-8343 Fax the State Farm parts procurement proe-mail: wanting to do auto repair in Ohio.” Mon., Fri. 7am - 6pm; 616-942-4658 Fax Joe Momber for details! Call“Our for memdetails! Repeated requests to the U.S. Aljmomber@autobodynews.com Sat.CALL: 8am - 4pm gram with Parts Trader. Mon., Wed. 7:30am - 8pm; 51 wholesaleparts@metrotoyota.com Tue., Thur., Fri. 7:30am - 6pm; bers have great concern on how this liance of Collision Professionals, www.autobodynews.com www.metrotoyota.com 800-699-8251 800-699-8251 Sat. 8am - 12pm could adversely affect their busiCincinnati, for information were unwww.toyotaofgrandrapids.com n. nesses,” he says. successful. Brunswick Toyota Continued from Page 38

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ASA Issues Timeline for State Farm to Prove PartsTrader Benefit In late August, the Automotive Service Association (ASA) issued a request to State Farm to prove its PartsTrader benefit to repairers within a timeline, which wasn't specified. The ASA issued this statement on August 22: Since early May 2012, the Automotive Service Association (ASA) and its volunteer leaders have taken a transparent and methodical approach to State Farm’s electronic parts ordering application currently being piloted. Seeking context regarding the specifics of the pilot, ASA previously presented the industry with verified details of the State Farm pilot and the application developed by PartsTrader at State Farm’s request. For ASA to continue in good faith to provide accurate information to its members – and act on their behalf as advocate and industry liaison – ASA has now entered into a phase in which data delivery will be associated with a timeline. If State Farm cannot provide data showing how this application benefits collision repairers (operationally/financially) within a feasible, specified time frame, ASA will respond appropriately. ASA acknowledges the pilot is still in process

Continued from Page 18

Carbon Fiber

components is the same as our current autoclave production parts,” Lownsdale said. “Weight savings for all of the components will be similar to what was achieved on the current Chevrolet Corvette and SRT Viper production programs.” Carbon-fiber body panels on the future vehicle will be a combination of exposed weave and painted finish. “There are some new components with unusual shapes that required innovative mold tooling. We developed removable sections of the mold tools to attain detailed design shapes for fine character line definition in order to meet the stringent design studio requirements,” explained Lownsdale, who cannot reveal the specific components. Plasan’s new production center and its equipment represents a $30 million investment. The company initially will employ 202 workers, including 20 engineers, at the production facility. Providing body panels for a medium-volume production vehicle is just a first step for Plasan. “We’re processing carbon fiber with a breakthrough piece of technology.

and State Farm is currently reviewing data. This follows a public request by ASA June 12 to State Farm on behalf of ASA’s collision repair members for factual evidence of how the electronic parts ordering application would benefit collision repair facilities. Within this request ASA clearly stated that if this application does not provide benefits to the collision repairer, then ASA would not support the application moving forward. On July 17, ASA made another public request to State Farm for data demonstrating that the pilot application benefits repair facilities, receipt of which was confirmed by the insurer. George Avery, State Farm industry liaison and claims representative, said during a recent phone interview with ASA that State Farm is still sifting through the feedback received from the 158 shops using the system in four U.S. markets, and is implementing changes in the pilot that, in turn, put them in a position of needing to go back to repairers to gather further data. Avery stressed it is a fluid process. Although lacking current data to provide specific answers, he assured ASA that State Farm would

It’s not RTM (resin transfer molding), and it’s not autoclave. It’s something entirely new. Our 10-year plan calls for the development of breakthrough technology every three years. This is just the first of what’s to come,” said Lownsdale. The parts Plasan is producing and intends to produce include both Body Panels and Structural components:

CLASS A Body Panels Fenders Hood Assemblies Spoilers Deck Lid Assemblies Door Panel & inner parts Rocker Moldings Roof Assemblies Splitters Lift gates Rear Wings/Spoilers

STRUCTURAL Roof Frame Pillar & BIW Substructure Inner body panels (hood, door, etc.) Engine Cradle Side Door Impact Bar Load Floor Battery Modules End Gate Assembly Seat Frames & Bases

48 OCTOBER 2012 AUTOBODY NEWS | www.autobodynews.com

respond to the association when answers were available. Previously published, ASA’s areas of concern regarding the pilot – as expressed by collision repairers – includes efficiency issues, additional administration costs, reductions in shop profits, potential compromises to local repairer-to-supplier relationships and increasing insurer involvement in the repair process. More than 100 formal and informal interviews have been conducted by ASA, primarily with collision repair businesses and other industry groups. “For ASA members, the factual results of the pilot are essential to the discussion. ASA will continue to engage with all parties necessary, as we seek the supporting data that this application benefits the collision repairer. ASA stands by its statement that if this application does not provide benefits to the collision repairer, ASA would not support the application moving forward,” said Denise Caspersen, manager of ASA’s Collision Division. “ASA has a responsibility to our membership to be the unyielding, professional voice speaking clearly about their concerns and advocating for favorable resolutions.”

ASRW Adds Auto Body Repairers Assembly Oct. 10

Automotive Service and Repair Week (ASRW) introduces the “Auto Body Repairers Assembly.” This new special event is limited strictly to qualified collision repairers and will take place Wednesday, Oct. 10, from 4:45 p.m. to 6:45 p.m. at the Morial Convention Center in New Orleans. Admission is complimentary for repair professionals, and registration is available online for the event. The urgent need for collision repairers to have a forum to openly discuss their issues amongst their peers was brought to the attention of ASRW organizers by repair community leaders across the industry. In response, the Auto Body Repairers Assembly was created as an inaugural event and hosted as a natural extension of the activities that take place during ASRW. Depending upon repairer response and interest, future events will be scheduled and the assembly will become an ongoing venue for repairers to ensure their voice is heard. “Like other organizations, repairers need their place to openly discuss issues important to them without filters and having to be politically correct,” said Scott Biggs, Assured Performance Network CEO.

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ASRW Hosts 2nd Annual MSO Symposium October 12 Automotive Service & Repair Week will host the second annual MSO (Multi-Store Owner) Symposium on Friday, October 12, during ASRW at the Morial Convention Center in New Orleans, LA. Designed for collision repair multi-shop operators, the MSO Symposium will be held during ASRW, which is scheduled Oct. 10–13. The MSO Symposium debuted at ASRW in 2011 specifically for multi-shop owners. Registration for the MSO Symposium is $125 and is available online for qualified MSOs only. The symposium was created specifically for shop owners with two or more locations. “Our success with last year’s inaugural MSO Symposium generated tremendous enthusiasm and interest among MSOs in the U.S. and Canada. It has also proven to be a draw for our speakers who want to share their thoughts with this growing segment of the collision repair industry,” said symposium facilitator and co-producer Matthew Ohrnstein, Symphony Advisors. “We are especially

pleased to be able to tailor this year’s content to respond to specific feedback from last year’s attendees.” The 2012 Schedule-at-a-Glance is as follows: 8:30 a.m.–8:45 a.m. Welcome & Opening Comments 8:45 a.m.–9:45 a.m. Developing a Sustainable Culture, facilitated by Marcy Tieger, Symphony Advisors Guest Panelists: ● Andrew C. Taylor, Chairman and CEO, Enterprise Holdings ● Pam Nicholson, President and COO, Enterprise Holdings ● Christine B. Taylor, Assistant Vice President, Enterprise Holdings 9:45 a.m.–10:45 a.m. Strategic Brand Development: Differentiate Through Innovation Facilitated by David Lingham, IBIS Conference Director. Guest Speaker: Sasha Strauss, Founder and CEO, Innovation Protocol; Professor, University of Southern California 10:45 a.m.–11:15 a.m. Networking Break 11:15 a.m.–12:30 p.m. Building Lasting Business Relationships Through Performance Facilitated by Matthew Original BMW Parts

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Ohrnstein, Symphony Advisors Guest Panelists: ● Bill Brower, Assistant Vice President and Manager, APD, Personal Market Claims, Liberty Mutual Insurance ● Patrick Burnett, Assistant Vice President, Nationwide ● Michelle Dereszynski, Assistant Vice President, APD National Operations and Strategy, Farmers Insurance ● Susanna Gotsch, Director, Industry Analyst, CCC Information Services ● James Spears, Assistant Vice President, USAA 12:30 p.m.–1:30 p.m. Lunch 1:30 p.m.–2:45 p.m. What a Difference a Year Makes, facilitated by Matthew Ohrnstein, Symphony Advisors Guest Panelists: ● Steve Grimshaw, Caliber Collision Centers, CEO ● Chris Abraham, Service King Collision Centers, CEO ● Brock Bulbuck, The Boyd Group, President and CEO ● Duane Rouse, ABRA Auto Body & Glass, CEO 2:45 p.m.–3:15 p.m. Networking Break

3:15 p.m.–4:30 p.m. Show Me the Money: Private Equity’s View of the Collision Repair Industry, facilitated by Rex Green, BB&T Capital Markets, Head of Consumer Group Guest Panelists: ● Warren Feldberg, Partner, Champlain Capital Partners, LP ● Lorin Knell, Partner, KCB Management ● Luis Zaldivar, Managing Director, Palladium Equity Partners ● TBA, The Carlyle Group ● Other(s) to be announced 4:30 p.m.–4:45 p.m. Closing Comments 4:45 p.m.–7:00 p.m. Networking Reception “The MSO Symposium was one of the most anticipated events of 2011, and this year’s event is on pace to exceed our expectations once again,” said Ron Pyle, ASA president. “The overwhelming response and support by the sponsors of this event have truly shaped it, and we are grateful to each of the sponsoring companies who have played a critical role in this year’s symposium,” he added.

AASP-MA and CCRE to Host Educational Seminars

North County BMW

The Alliance of Automotive Service Providers of Massachusetts (AASPMA) will host a series of three seminars presented by the Coalition for North County BMW Collision Repair Excellence (CCRE). The ‘Three Days to Transform Your Body Shop’ series will cover rewww.ncountybmw.com pair authorization vs. repair contracts, (800) 564-8222 job costing, ROI and interpretation of legal documents. The three Saturday sessions are spread over a 10-week period and will take place at the Best North County BMW Western Royal Plaza Hotel of Marlborough from 9 a.m. to 5 p.m. “The CCRE has made a name for www.ncountybmw.com (800) 564-8222 itself over the years as a group of consultants who work diligently to help shops be the best they can be,” said North County BMW AASP-MA President Rick Starbard. “As with past CCRE educational offerings, this series of seminars has been www.ncountybmw.com (800) 564-8222 met with rave reviews in locations such as Cleveland, Philadelphia and Birmingham, AL. We knew there was an incredible value in the information being presented in these seminars, but the reality is that many repairers can’t afford to spend extra time away from the shop traveling. So we worked with CCRE to develop a plan and bring these great seminars right to AASP-MA members’ own backyards.” The series is offered for $495 to www.ncountybmw.com

(800) 564-8222

a body shop's first registered representative, and additional attendees from the same company will be admitted for $295 per person. “Since transforming one’s business may take more than one person, we encourage shop owners to bring managers or other influential shop members as well,” Starbard said. CCRE’s “Level One” presentation kicked off on Sept. 15. Level Two, scheduled for Oct. 20, will continue the interactive discussion, focusing on helping participants run their shops without third-party interference and taking back control of their business. The third seminar, slated for Dec. 1, will be facilitated by longtime automotive industry attorney James Castleman and will focus on helping shops better understand legal issues including Assignment of Proceeds/Rights, as well as various documentation and regulations surrounding the auto repair industry. By the end of the three sessions, attendees will gain a new perspective on running a successful, independent shop; a blueprint for putting appropriate administrative and operating procedures in place; and the legal documents needed to comply specifically with Massachusetts laws and regulations that can be used every day.

www.autobodynews.com | OCTOBER 2012 AUTOBODY NEWS 49

Associations Assembling

What Other Associations Are Doing and Have Done Recently with Chasidy Rae Sisk

GCIA 16th Annual Invitational Golf Tournament The Georgia Collision Industry Association has sent out invitations for their 16th Annual Invitational Golf Tournament which will be held at the Trophy Club of Atlanta in Alpharetta, GA on Wednesday, October 3, 2012. The event will be a four-man “best ball” tournament. The playing fee is $75 per person which includes lunch, dinner, unlimited snacks and drinks, trophies, a chance at over $1000 worth of door prizes and a Hole-inOne car. Registration begins at 11 a.m., but those who come early have access to free range balls starting at 10 a.m. unch will be held at 11:30 with tee-off at 12:30 p.m. Dinner will be served after the tournament. Those interested can register by completing the form and faxing it to Tournament Coordinator, Howard Batchelor, at 770-590-3881. More information can be obtained by contacting Howard at 770-367-9816. GCIA is also looking for sponsors for the golf outing. Interested sponsors can acquire a hole sign for $200 or a hole sign and the opportunity to staff a hole for $500. The $1000 Bronze sponsorship includes 1 playing spot, a banner and a hole sign. The $1500 Silver sponsorship consists of 2 playing spots, a banner, a hole sign and the opportunity to staff a hole. For $2000, Gold Sponsors receive 4 playing spots, a banner, a hole sign, the opportunity to staff a hole and the chance to stuff the goodie bags. For more information, contact Howard Batchelor at 770-367-9816 or fax sponsorship forms and golf sign-up sheets to 770-590-33881. Checks should be mailed to GCIA at 595 Commerce Park Dr., Marietta, GA 30060.

National Autobody Council Upcoming Events The National Autobody Council will hold an Open Board meeting at NACE on Tuesday, October 9th, 2012 from 1 p.m. until 6 p.m. The next day, Wednesday, October 10th, they will hold their Annual Meeting and Election from 7:30 a.m. until 9:30 a.m., and from 10 a.m. until 11 a.m., they will hold a Closed Board of Directors meeting to elect officers for 2013. For

information on sponsorships or registration, please contact Mike McManus at 414-908-4957 ext. 119 or at m.mcmanus@autobodycouncil.org.

IABA Dubs First Annual Golf Outing A Success The Indiana Autobody Association held their first annual golf outing on Thursday, August 23, 2012 at Noble

Hawk Golf Course in Kendallville, IN. The event was a 9-hole scramble, and 13 teams participated in the event with around 30 vendors helping out with hole sponsorships and door prizes, allowing each player to leave with several prizes. IABA was very pleased with the turnout for their first golf outing, and in fact, the event was such a success that IABA has already booked the event again for next year. According to IABA President Mike Hartman, “The money [raised] is being set aside in a special account. Our goal is to be able to give out a scholarship to a local student who will be entering the auto body industry… we want to be able to give it to someone who is really driven towards a career in the Auto Body business.” For more information on IABA and additional events, visit www.IABAmeetings.com.

ARA Hosting 69th Annual Convention and Exposition The Automotive Recyclers Association (ARA) will host their 69th annual convention and exposition from October 24–27, 2012 at the Gaylord Palms Resort and Convention Center in Orlando, FL. The event offers attendees an opportunity to meet face-to-face with key industry leaders, to see new products and services, and to remain a

50 OCTOBER 2012 AUTOBODY NEWS | www.autobodynews.com

step ahead of the competition. The convention and exposition will be preceded by ARA’s Annual Golf Tournament which will be held on Tuesday, October 23 at Celebration Golf Club. Registration begins at noon, and the tournament is scheduled for 1-6pm. ARA’s International Expo focuses on networking and learning about new products and services. It will be open on Thursday, October 25 from 5–9pm, on Friday, October 26 from 1–5pm, and on Saturday, October 27 from 8–11:30am. This event offers many educational seminars and lectures. The full schedule is available on the convention brochure which can be downloaded at ARA’s website. Pay attention to the dress codes posted for certain events to ensure you pack appropriately as some events require more formal dress. Additionally, attendees can attend non-related activities for an additional fee, such as Emeril’s Cooking Class.

Discounted tickets for local attractions can be purchased in advance through ARA’s website. ARA offers various levels of registration with varying prices, such as a price specifically targeted toward spouses. The event is family-friendly, and children under the age of 12 enter for free, but children between the ages of 12 and 18 will be charged a reduced admission fee. Those interested in attending can register online at www.araexpo.org or by faxing the registration form to 571-208-0430. For more information on any aspect of this event, please visit www.araexpo.org or contact Maria Miller at 571-208-0428 or maria@a-r-a.org.

Proceeds from AASP MA’s Annual BBQ Benefit Students’ Tool Grants AASP-MA hosted their Midstate Chapter’s Annual BBQ on Friday, September 7, 2012 at Hudson Elks. See Association Activity, Page 54

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Grand Rapids Body Shop Burns; 15 Fire Trucks Respond, but it’s a Total Loss Flames reached up to the sky from a burning body shop in Grand Rapids, MI. Smoke was spotted and smelled for miles. To add to the dramatic scene, some responding fire trucks were reportedly held up by a passing train for a few seconds. The building at Lee Auto Export, 1515 College Ave. SE, is considered a total loss. Twelve fire trucks responded, along with several other emergency vehicles. At the peak of the blaze, Grand Rapids firefighters had 15 trucks on the scene. The fire gutted a building that’s part of Lee Auto Exports, an auto scrap yard. Later, employees tried to salvage what they could as cleanup continued at Lee Auto Export’s body shop. The damage wasn’t limited to inside the building. A wall crushed a row of vehicles waiting to be stripped for parts in the yard. Grand Rapids Fire Prevention Inspector Ric Dokter says someone waiting for the train that delayed fire trucks spotted and reported the fire. Dokter says the chemicals inside used for body work made the fire even more challenging. “With the kind of operation they had here and with the flammable liq-

uids, that was definitely a factor in making it difficult. Also the collapse buries a lot of the combustibles. So, when we pour water on it, we’re just pouring water on the outside, and not getting it inside. That also made our operations longer than they might be,” says Dokter. There is so much damage, sifting through the remains to find the cause will be difficult. So investigators will look at security surveillance video taken at the time of the fire for clues. The video may not tell them exactly where or how the fire started, “but it can point us in the right direction to look,” said Dokter. “It’s a big building. And if we have a place to start, that makes our job that much easier.” “I got a call from Lee at around eight something when I was cooking dinner and that’s when it happened,” says Mo Pham, Lee Auto Export Sales Manager. “I went down there, I was shocked.” This wasn’t the first time a building has burned at the address. Pham says they’ve had another building destroyed like this by fire. “There was a building here, two to three years ago, but that was determined to be accidental due to cutting,” says Dokter.

Pham says they learned from that fire and had insurance on the building itself, but not what was inside. “This one, I don’t have no insurance for the content either, we had like 15 cars burned, so there was a lot of loss there,” says Pham. Some employees who came to survey the scene were emotional or concerned about perhaps losing their jobs. “This mostly just all total shock,” says Carl Jorgensen, inventory specialist for Lee Auto Export, “Really shocked that place went up in flames.” Pham says they will rebuild at some point or find another building to work out of, but she says some employees may be out of a job for now until they can figure out what to do. Jorgensen is hopeful he will be able to work out of the other buildings. “It’s just ungodly what happens because you know the people who worked in there, they have their tools in there, that’s their livelihood, lost all that, it can be replaced, but thank God there was no life lost,” says Jorgensen. Co-owner Angel Maldonado estimates the damage will run around $200,000. As the search for a cause continues, authorities do not have reason to believe the fire is suspicious.

Service King Gives $10,000 for Student Scholarships

Service King Collision Repair Centers has joined the Collision Repair Education Foundation’s Industry Leadership Circle with a $10,000 donation to the organization. The Education Foundation said the donation will be used to provide scholarships to post-secondary collision repair students near the markets that Service King’s repair facilities serve. The student scholarships will be included as part of the Education Foundation’s scholarship and tool grants that will be awarded next spring. “We are honored to be able to contribute to such an important foundation,” said Danny Wilkins, associate vice president of staffing and development for Service King. “Supporting collision repair education is key to growing the industry so that we continue employing highly skilled technicians and painters for years to come.” Clark Plucinski, executive director of the Education Foundation, said, “Through Service King’s donation, collision students located near their repair facilities will have the opportunity to apply for financial support this upcoming spring.”

Is New Vehicle Technology Endangering Your Business?

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Some say the age of autonomous vehicles is almost here and they promise a crash-free future. The question for many in the industry is whether a roadway filled with self-driving cars is really that close, and what will that mean for repair businesses that would be impacted by a speculated decline in vehicle damage occurrences? To help decipher what the emerging trends in vehicle technology are, and how those vehicle design features will truly impact the industry, the Society of Collision Repair Specialists (SCRS) has announced that it will be hosting an additional Repairer Driven Education (RDE) session at the SEMA Show. “Is New Vehicle Technology Endangering Your Business?” will be presented from 10:00 am to noon on Tuesday, October 30, by Kim Hazelbaker, Senior Vice President of the Highway Loss Data Institute (HLDI). This session, which will be free to all pre-registered attendees will look at the current state of vehicle advancements, both crashworthiness and crash avoidance technologies. Through extensive use of crash test video and real world results, Hazelbaker will outline what is state of the art in safety today and how it is rapidly changing. Using timelines for the

adoption of other automotive technologies, he will suggest what the pace of change may be in the future. If you are concerned about how existing and future technologies could potentially decrease the amount of repair work entering into the market, you won't want to miss this interesting and informative update on vehicle technology. “SCRS understands that the industry gathers at annual events like SCRS’ RDE series and the SEMA show to acquire information that can help them run their business and forecast how they need to adapt to remain relevant,” stated SCRS Executive Director Aaron Schulenburg. “The dramatic pace at which we are seeing new technology, and understanding the impact that technology has on our businesses, is perhaps one of the most critical pieces of information our members need to ensure the success of their businesses. We are thrilled that we could partner with Mr. Hazelbaker and his well-respected organization to develop a customized presentation that spoke to such a critical industry topic.” HLDI is a private non-profit organization that gathers, processes, and publishes insurance data concerned with human and economic losses.

www.autobodynews.com | OCTOBER 2012 AUTOBODY NEWS 51

Custom Corner

Rich Evans is the owner of Huntington Beach Bodyworks and an award winning painter and fabricator. He offers workshops in repair and customization at his facility to share his unique talents. For contacts and design samples visit www.huntingtonbeachbodyworks.com

Building Body Molds from Plugs is No Easy Task with Rich Evans

This month’s column is Part 2 of my hood and trunk is one section. I make a June column about building a junior flange using a fiberglass 1/8 inch sheet, motor sport body for a motor sport vetwo inches wide. This flange is where hicle for an 11-year-old driver. we are going to bolt this mold together. You can read or download it at Then we’re going to use locating buttons along the top to keep everything towww.autobodynews.com in my columns section if you missed it. gether. We use clay, hot glue, and wood In the last column, I talked about to give it structure. Then I come back with Thomas Franklin building the plug to make a mold. As with FBS brown tape that allows me to we left it, I was creating the plug form. draw out my lines, tape two inches, then I was working to get the plug comcome back and glue blocks of wood all pleted so it was totally true to where I the way down where I put the tape. Then was satisfied enough to make a mold. I cut and make a flange that goes all the Doing body work is one thing, but way around that perimeter. After I do making a plug and going to a mold is that, then I wax everything once again,

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Action Counts with Lee Amaradio Jr. just repeating steps and you can’t even use release agent, then put tooling gel see the light at the end of the tunnel. I coat down. Any cracks or imperfections am totally exhausted from it. The hunare filled with clay, like sculpturing. dreds, almost thousands, of hours I’ve Then, we’re gonna lay mat down and put into it just to get a part. After you use cloth and a Squeegee to get all the get a mold made, it’s amazing how you air bubbles out, then pull off the cloth can put out a part every 30–35 hours, and let that cure. We also use a paste, after the hundreds of hours I spent too, to get down in the corners where the making the mold. So, there are rewith Sheila Loftuscloth might not sink down and pull up. wards at the end of it—to make that We do that once, then we come part in that short amount of time and back the next day and grind everyget exactly all the details you wanted. thing, put another mat down, another Getting back to the plug, I left it at cloth, and do it again for a total of five 400 grit. I did a wet sand after primertimes. That way, you have a total of aling: 80 grit, 150 grit, with 400 grit, then most a half inch of thickness. I’m ready for sealer. Next, I wipe it After we finish that, we tear off down with carbon wax twice, then come the flange, we go to the left and right back with a release agent that I spray on. side of the car and make another part Then, I mask all the areas off, to break and do the same thing: the wax, the this down into a form of how everything tooling gel coat, the mat, the cloth, the comes apart to get the body out. We same process. mark off a section of the car—the roof, Then we go to the rear of the car

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52 OCTOBER 2012 AUTOBODY NEWS | www.autobodynews.com

and do the same thing, plus the wheel wells, the rocker, the rear part of the bumper. There are 14 pieces to the mold by the time I am done. That’s hundreds of hours just to make this one mold. Then I have to build a frame because the mold is so heavy. I have to build the frame while the mold is connected to the plug to make it even. I build the frame out of thick gauge 2x4 square tubing, then we mount casters on it, connect supporting bars, and then take it off, finish welding it, and turn it upside down. Next we take the mold off the plug, clean it up with

water, then bolt it together. After that, we repeat the process of cleaning the mold, putting it all together, sanding down the imperfections on the mold with 400 grit to make sure its all smooth, then we go back and wax everything, put release agent, gel coat (not tooling gel coat), then repeat the same process on all the pieces. I’m using mat and cloth to get air bubbles out and make it stronger. Then I come back with some reinforcing 5mm Cormat which will fill up with resin to add density to flat areas. The next day, I come back and put everything to-

gether, using paste, cut out strips of mat, connect everything together, bolt the mold together. Three or four hours after that, we’re ready to pull it apart.

Then I spend five hours cleaning everything. Finally I’m done with the first Rich Evans-designed motor sports body. This doesn’t count all the accessories … the wings, scoops, side scoops, front bumper, etc. Seems like now I am getting away from parts and add-ons. Now I’m making complete bodies. Who would have figured? I have major respect for guys who are building molds out there. It’s a whole different task. Props to the guys

who are making molds day in and out, because as a car builder, you can see daylight at the end of the tunnel. But in this field, you don’t even know how many sand strokes you need to get to the end. I’m excited about the project and to see it on the track in full motion. Then I can sit back and enjoy. The body is ready to sand down, seal and paint, and it’s ready to go. I’ve got scribe marks to cut the doors out, and scribe marks for the hood and the deck lid. The whole idea is for this to look like a real car featured in the motor sport world. Stay tuned to see where this car will be seen and what it’s going to be doing on the track. Follow me on Rich Evans Designs on Facebook, RichEvansDesigns.com, BuilditwithRichEvans.com, and HuntingBeachBodyWorks.com. Thanks to all my sponsors, with a shout-out to FBS, a title sponsor of World Wide Car Building, and my other sponsors listed on my website. See ya at SEMA. It’s a great month to be around automobiles. with our Genuine Ford Parts When it comes to Ford Genuine Wh Parts, go with a winning team. Part Use Genuine Ford Parts for your customers late model Ford, Lincoln and Mercury vehicles.

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Rich’s SEMA Appearance Schedule

SEMA 2012 is approaching faster than we could expect. As we all know, the Specialty Equipment Market Association is the biggest automotive show of the year. I am totally looking forward to it and I wanted to give you the lowdown on what Rich Evans Designs has been doing and how we are gearing up for SEMA. On Tuesday, October 30 at 1 p.m. in the FBS Booth #11177, we will be unveiling the project we built in Canada, a 2004 H2 Hummer which was built in 10 days on our new show “World Wide Car Building.” We will have all nine builders from the U.S. there, as well as the team from Curtis Customs in Canada. At 3 p.m. in the Wyotech Booth #12073, we will be unveiling our second project from the recent build in Canada, which was also filmed for “World Wide Car Building.” The second vehicle we built is a 1954 panel truck. We will have scissor reels playing in both booths with highlights from the filming. Please stop by and say hello at any of the following scheduled celebrity appearances: Tuesday, October 30 9:30-10 am: Solution Finish Booth #13043 12:30-1: FBS Booth #11177 (before the unveiling of the H2 Hummer) 2:15-2:45: Wyotech Booth #12073 (before the unveiling of the 1954 panel truck) 3:30: MGP Booth #48107 4-4:30 pm.: Solution Finish Booth #13043 Wednesday, October 31 9:30-10 a.m.: Solution Finish Booth #13043 12:30-1: FBS Booth #11177 2:15-2:45: Wyotech Booth #12073 3-3:30: MGP Booth #48107 4-4:30 Solution Finish Booth #13043 4:30-5 FBS Booth #11177

Thursday, November 1 9:30-10: Solution Finish Booth #13043 12:30-1: FBS Booth #11177 2:15-2:45: Wyotech Booth #12073 3-3:30: MGP Booth #48107 4-4:30: Solution Finish Booth #13043 4:30-5: FBS Booth #11177 Friday, November 2 9:30-10: Solution Finish Booth #13043 12:30-1: FBS Booth #11177 2:15 - 2:45: Wyotech Booth #12073 3-3:30: MGP Booth #48107 4-4:30: Solution Finish Booth #13043

I also will be participating in a celebrity build, the 2012 HRIA Pinewood Derby display of the race cars, located in Hot Rod Alley at HRIA Booth. I’ll be competing against other celebrity car builders to build and race a pinewood derby car to benefit two charities, Child Help and Victory Junction Camp. I’ve competed in this race the past three years and have come in 2nd place. Come by and see my rocket car! I also wanted to mention two announcements regarding Solution Finish. First is a new product line called Rich Evans DIY kit, a complete package for the do-it-yourselfer. It includes everything needed to completely restore plastic, vinyl, rubber on any vehicle without needing to scrounge around looking for the professional items that are essential for getting the same results as master detailers. Secondly, Solution Finish has made a major breakthrough in the formulization of its gray fusion, a restoring product that is the first of its kind. This product allows you to restore gray bumpers and trim to a better than new condition with one application, and it removes tiger striping. Check it out in action at Booth #13043. See ya at SEMA!

www.autobodynews.com | OCTOBER 2012 AUTOBODY NEWS 53

Company Connections with Chasidy Rae Sisk

DuPont Performance Coatings, A Big Change but Much Stays in Place A big news item in the auto body in- segments,” according to Bennett. Regarding how this sale will bendustry has been DuPont’s decision to efit DPC, Bennett sell DuPont Performance Coatings withGroup Walter Danalevich claims “this will (DPC) to the Carlyle for $4.9 better allow us to billion after around 90 years in the focus on our cusbusiness (see story adjacent). Such a tomers. Currently, major transaction concerning one of DPC’s profits are the largest and most important supplifunneled back into ers of automotive paints has garnered the DuPont corpomuch interest and concern. Because of Mike Bennett with The Insurance Insider ration, but this this, I took the opportunity to sit down with Mike Bennett, North America transition will allow DPC to funnel Marketing Director at DPC to get profits back into our own growth... promore details about the upcoming tran- viding a great opportunity for us and sition, expected to close during the our customers and allowing us to focus on what is most important to DPC.” first quarter of 2013. DuPont’s decision to sell DPC with Chasidy Rae SiskThe transition will also allow came from their strategic decision to DPC to increase their efficiencies and focus on other aspects of their busi- synergies, but there are no plans to ness, and since the automotive paint make personnel changes or changes to industry is not aligned with these in- the products and services offered. DPC’s separation from DuPont will tentions, they decided to sell that portion of their business with the belief simply allow them to focus on what Chasidy Rae they Siskdo best: manufacturing automothat “DuPont andwith DPC are best served by focusing on these separate market tive paint.

Eventually, DPC’s name will

change as they end their affiliation Shop Strategies for Savings with DuPont; however, while there

Inside Insurance Northeast News Shop Showcase

Continued from Page 50

$2300, which was contributed by Managed Air Systems. Other grand prizes include Carrie Underwood tickets donated by Long Automotive Group, a LCD TV donated by Imperial Parts, a Bose Wave Radio donated by Finishmaster, a BBQ grill contributed by Bernardi Auto Group, and a Kids Go-Cart which was donated by Enterprise Rent-A-Car. Donations were made to the Tool Grant fund by Imperial Parts, Venue Sponsor, Dinner & Dessert Sponsor, and Bald Hill Dodge, Chrysler, Jeep & Kia. Direct Tool Grant donations were also made by Lexus of Northborough and Relco Products. General Raffle Sponsors included the following: 1-800 Radiator, 3M, BASF, Best Chevrolet, Boston Bumper Supply, Don Kennett Inc./Bob Levy, Enterprise Rent-A-Car, Herb Chambers/Bill Enross, Herbert Berg Florist, Hertz Local Edition, Inskip, Linders, Inc., LKQ/Keystone, Long Automotive Group, Marcotte Ford, Marlborough Wellness Center, NAPA-Hudson, Ollie’s Used Auto Parts, Rodman Ford, Arrow, Wellesley Volkswagen, Sherwin Williams, Town Fair Tire-Shrewsbury, Tuck’s Truck Sales, and Wellesley Toyota.

will obviously be some rebranding, DPC promises that they will continue to maintain their efforts to provide their auto body customers with the best possible products. “DPC is absolutely committed to our individual distribution network, and we have no plans to change that. In fact, we expect that this transition will help us grow our position in the market,” Bennett assures Autobody News readers. DuPont and the Carlyle Group are working together to ensure a smooth transition for customers, and they insist that DPC’s eventual rebranding should not significantly impact end-users. Since DPC’s paint lines were a major contributing factor in the Carlyle Group’s decision to acquire the company, they plan to continue producing and selling their popular brands which include Spies

Mainstream Media

Association Activity

As a result of AASP MA’s recent partnership with the Collision Repair Education Foundation (CREF), the proceeds from the event will go towards providing tool grants to students. Midstate Chapter President Molly Brodeur notes “AASP-MA is the first association to create a Tool Grant, and our BBQ is the primary fundraiser for the grant. I am very excited as it looks like the proceeds will fund 10 $500 tool grants. What makes the grant even better is that a student applies and ultimately receives (if chosen) the $500 tool grant but is awarded with $1000 in tools courtesy of Mac Tools.” AASP-MA raised $5400, making the event the most successful fundraiser they have had to date for the Tool Grant. There were 165 attendees at the family-friendly event. AASP-MA’s event featured food from Firefly’s Bodacious BBQ and a number of raffle prizes. Norm Audette won the live auction, acquiring a Becca Gun Washer, valued at

54 OCTOBER 2012 AUTOBODY NEWS | www.autobodynews.com

Hecker, Standox and Imron, among others. Bennett stressed that DPC has no intention of changing their commitment to their network of individual distributors; he also adds that this transition will allow DPC to focus on their specific market, and “through this renewed focus, DPC hopes to fuel our customers’ growth and market share.” The intended transaction was announced on August 30, 2012, ending a year-long uncertainty concerning DPC’s future. Rumors of a possible sale of DPC first began in November 2011 when sources claimed that DuPont was searching for potential buyers. After the sale is official in early 2013, DPC will become an independent company, but the company’s management team fully recognizes the importance of a smooth transition for their valued customers. DPC has stated that they will indefinitely continue to operate at the Coatings Technology Center (CTC) established at the

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Shop That Helped Bullied Teen Inspired to Start a New ‘Pay it Forward’ Program

NASCAR Sponsorship Intact Though DPC is bound to experience some changes as they move away from DuPont, one thing that will not change is their sponsorship of Jeff Gordon’s #24 NASCAR team. DPC began their partnership with Jeff Gordon and Hendrick Motor Sports in 1992, and DuPont has decided that the sponsorship will continue with DPC. In fact, the appearance of the #24 car has already changed to reduce the image of DuPont’s name and logo, and to change its emphasis to the Performance Coatings aspect of the business. DPC’s current contract with Jeff Gordon and Hendrick Motor Sports lasts through the 2013 season, but Bennett notes that DPC hopes to continue this important relationship beyond that.

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Carlyle Group LP, the world’s secondlargest private equity firm, agreed to acquire DuPont Co.’s auto-paint unit for $4.9 billion, giving it control of the second-biggest maker of coatings for cars and trucks. DuPont is the biggest producer of coatings applied to used autos, typically via body-repair shops, and the largest supplier of new-car coatings after PPG, according Gregg Schmidt, a DuPont spokesman. Carlyle will fund its investment with equity from Carlyle Partners V and Carlyle Europe Partners III, the companies said in a joint statement. The transaction value is $5.15 billion including Carlyle’s assumption of $250 million in unfunded European pension liabilities, DuPont Chief Financial Officer Nicholas Fanandakis said. The sale marks DuPont’s exit from the auto-paints market, which it has served since the invention of the motor car. U.S. auto output is still less than its pre-recession peak while the price of titanium dioxide, a raw material used in paint, has surged. DuPont Chairman and Chief Executive Officer Ellen Kullman is focusing on other industries such as food and biofuels. DuPont hired Credit Suisse

A shop that repaired and restored a bullied student's car received so many emails, cards and phone calls thanking them for what they did, that the auto body shop is inspired to do it all over again for another deserving individual. “I wanna pay it forward every year so we’re calling it operation pay it forward and once a year we’re going to overhaul a deserving person’s car,” says Richard Henegar Jr, a manager at Quality Auto Paint and Body in Roanoke, VA. In August, a bullied gay teen made headline national news when the auto body shop repaired his Volkswagen for free and prompted a community to take action. The Radford University student's car was vandalized four times, once at home and three times on-campus, with anti-gay slurs and death threats. For several months, college student Jordan Addison had to drive his car with its windows bashed in and the words “die fag” keyed into his door. Addison said no matter how hard he tried, he couldn’t get rid of the slurs entirely. “The first time there were some homophobic slurs keyed into the side of it,” said Addison. “Then the second time I had ‘die’ keyed into it. The low-

Group AG in October to seek buyers for the unit. Kullman told investors in December that she would give the business, which has the company’s narrowest profit margin, a chance to meet company targets. DuPont’s longterm goals for coatings included sales rising by 3% to 5% annually, the smallest targeted rise among the company’s eight divisions. The DuPont deal will close in the first quarter of 2013, subject to regulatory approvals, the companies said. It would be the largest in the coatings industry globally in at least a decade, according to data compiled by Bloomberg. The next biggest was PPG Industries Inc. (PPG)’s 2.2 billioneuro ($2.76 billion) acquisition of SigmaKalon Group BV in 2008. The DuPont auto-paint unit, which employs more than 11,000 people, saw second-quarter pretax operating income climb 26% to $92 million as revenue fell 1.4% to $1.09 billion. Sales will be more than $4 billion this year, Carlyle and DuPont said in their statement. Coatings in the last 12 months generated “slightly less than” $500 million in earnings before interest, taxes, depreciation and amortization.

est estimate I got just to fix the damage to the doors was like $2,500, and for a college student that's a lot of money.” Henegar heard about Addison's car and teamed up with 10 other businesses to repair the car and added on several extras. Henegar said he was shocked when he first saw Addison’s trashed car. The student had tried unsuccessfully to hide the slurs with spray paint and because he couldn’t afford new tires, had fitted several mismatched pair to his axles. “Once I saw the vandalism that was done to it, I said, ‘That’s uncalled for. We’re gonna fix your car. That’s the least we can do,’” said Henegar. “We don't take kindly to discrimination of any sort here,” Henegar saids. “I was bullied in high school and a little bit in the service and I saw an opportunity to help somebody out.” Henegar and fellow volunteers spent 100 hours and over $10,000 adding a new scratch-resistant paint job, new tires, tinted windows, a new stereo, and a new security system to Addison’s 1999 Volkswagen. The $10,000 worth of extras were provided by ten local businesses: Parts Unlimited, Advance Auto Parts,

From the third quarter, DuPont will report the unit’s results as earnings from discontinued operations, which it expects will be 41 cents to 47 cents a share for 2012. DuPont became an auto-paints industry leader with its $1.9 billion acquisition of Herberts GmbH from Germany’s Hoechst GmbH in 1999. DuPont cut 1,500 coatings jobs and shut factories in Europe seven years later after the business failed to achieve financial targets. Kullman is focusing DuPont’s growth on what she calls “megatrends” arising from global population growth: Improving food quality and agricultural productivity, cutting reliance on fossil fuels, and protecting the environment and people. She expanded last year in food ingredients and biofuel enzymes with the purchase of Danisco. DuPont, which also makes plastics for auto parts, supplied General Motors Co. (GM) in the 1920s with a spray-on coating that cut the weekslong process of painting a car to six hours, according to DuPont’s website. After the Carlyle deal is completed, DuPont will still sell more than $3 billion of advanced materials to the auto industry, it said today.

Moon's Auto Body, Rice Toyota, Val's Automotive, The Rod Shop, B&C Exterminating, Twists & Turns, AJ's Landscaping and Sunnybrook Auto Spa. The effort came together in beginning of August. Addison was given a small, red Fiat thanks in part to an Enterprise car rental agency for the two weeks of repairs. At that point, Henegar had only told Addison that his door would be repaired. Working at night after hours and on weekends, Henegar and his team repaired the damaged car, inviting Addison back in August 20 for his big surprise. “I was entirely speechless,” the student told the Daily News. “I just walked around saying, ‘Oh, my God, this is not my car. It just restored my faith, my good faith, in people.” Henegar and Addison appeared on the 10th season premiere of the Ellen show where Ellen DeGeneres repeatedly plugged Quality Auto Paint and Body and had her star guests, Pink, Patrick Demsey and gymnastic Olympic gold medalists film an allstar commercial for the shop. As an additional surprise, CoverGirl Cosmetics gave both men $25,000 each as a gift “for sharing their story and being a good example to the rest of us.”