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VT Auto Shop Owner Scores Victory in Campaign Against Short-Pay by Insurers by Alan J. Keays, VTDigger.org
The Vermont Supreme Court has sided with a body shop in its latest legal challenge to a national insurance company over claims the firm failed to pay enough to cover needed repairs to vehicles that had been in collisions. The case has been working its way through the state’s legal system for about four years, starting in 2015 when Parker’s Classic Auto Works of Rutland brought suit against Nationwide Mutual Insurance Co., which is based in Ohio.
Mike Parker, the repair shop’s owner, said Monday he recently got a call from his attorney, Robert McClallen of Rutland, letting him know of the high court’s ruling. “I was like finally, ‘Hallelujah,’” Parker said. The suit against Nationwide was brought by Parker’s on behalf of consumers in instances where the insurer refused to pay the full amount of the repairs the shop made to vehicles. It’s a practice known as short-pay. The Nationwide lawsuit is part of an ongoing campaign by Parker’s See Short-Pay By Insurers, Page 12
SCRS Event Discussion on Insurance Regulation, Workforce Development by John Yoswick
Body shop associations and automakers increased efforts this year to get state legislation that would mandate
the use of OEM repair procedures for collision repair claims. Since these efforts, insurance regulators in some states have shared written statements
relative to any such obligation on insurers. Insurance regulatory agencies in about half of all states have responded to a letter the Society of Collision Repair Specialists (SCRS) sent out last year asking, among other things, if anything in their state “holds insurers and insurance policies sold in your state accountable to recognize manufacturer documented procedures as a basis for settling claims.” During a SCRS event earlier this year, the association’s Aaron Schulenburg said the written responses See SCRS Event Discussion, Page 34
AUTOBODYNEWS.COM
Vol. 8 / Issue 11 / August 2019
Uncertain Times for U.S. Auto Industry by Dave Leggett, just-auto
A new Edmunds report says 2019 has been a year of contrasts for automakers as they struggle to find a new normal amid rising interest rates, waning demand, dramatic growth in the used market and uncertain government policies. “Automakers are fighting a war on multiple fronts right now: Old cars are piling up on dealer lots, a glut of affordable off-lease vehicles are luring shoppers into the used market and even with the Fed anticipated to lower rates in July, higher interest rates are here to stay,” said Jeremy Acevedo, Edmunds’ manager of industry analysis. “Strong economic indicators such as consumer confidence and low unemployment are keeping sales at historically elevated levels, but automakers have also been rely-
ing too heavily on fleet sales to keep these numbers up which isn’t a sustainable model.” According to Edmunds data, new vehicle sales are down 2.4% year-over-year through May and Edmunds analysts maintain their forecast that 16.9 million new vehicles will be sold in 2019. In addition to a deeper dive into sales figures, the Midyear Report also reveals: A strong economy is propping up what could be an even weaker auto market. Unemployment is at 3.6% - the lowest it’s been since 1969. Consumer sentiment is at its highest level of 2019. Elevated inventory levels are setting the stage for attractive deals this summer. Even though inventory dipped below 4 million units in May, analysts say this is still too high See Uncertain Times, Page 3
FCA Faces Wrangler “Death Wobble” Class-Action Case by David A. Wood, CarComplaints.com
A Jeep Wrangler “death wobble” lawsuit alleges 2015-2018 SUVs are equipped with defective steering dampers and components that cause violent front-end vibrations. According to the lawsuit, the “death wobble” is the “seemingly uncontrollable side-to-side shaking of a Jeep’s front-end steering components and—by extension—its steering wheel.” The lawsuit doesn’t say the vibrations cause front-end failure, but “simulates sudden frontend failure.” While FCA and other automakers say this can be a common occurrence with solid front axles in combination with worn or damaged components, the lawsuit alleges the Wrangler axles and damping systems were defectively designed from
the beginning. Attorneys who filed the proposed class-action lawsuit want Fiat Chrysler (FCA) to buy back all 2015-2018 Jeep Wranglers in the U.S. and give drivers compensation for an alleged loss of value and depreciation of the SUVs. Attorneys also say FCA should reimburse owners for expenses paid to third parties for work performed related to the vibrations. In addition, the plaintiff wants the automaker to give customers temporary replacement vehicles and Chrysler should pay damages for allegedly putting members of the public at risk. FCA says the vibrations are easily corrected by simply slowing down and all functions of the vehicles remain active. In addition, although Wrangler drivers call it a See Death Wobble, Page 22
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AUGUST 2019 AUTOBODY NEWS / autobodynews.com
Continued from Cover
Uncertain Times
CONTENTS FCA Faces Wrangler “Death Wobble” Class-Action Case. . . . . . . . . . . . . . . . . . . . . 1 Feldman Automotive Plans New Body Shop in New Hudson, MI . . . . . . . . . . . . . . . . . . . 10 GM, Owens Partner for Debt-Free Path to Auto-Tech Jobs . . . . . . . . . . . . . . . . . . . . . 8 NABC Golf Fundraiser Highlights Benevolence of Industry . . . . . . . . . . . . . . . . 6 Northwood University in Midland, MI, to Offer Automotive MBA . . . . . . . . . . . . . . . . 5 “Veteran Receives Recycled Ride From LaMettry’s Collision in Minnesota” . . . . . . . 12
$5 Million in Digital Gift Card Incentives Accelerates Response to Takata Airbag Recall. . . . . . . . . . . . . . . . . . . . . . . . 52 AAPEX 2019 to Recognize Exhibitors. . . . . . . . 51 Are We Programming Killer Cars? The Ethics of Autonomous Vehicles . . . . . . . . . . . . . . . . 4
Anderson - Building Trust Through Online Reviews, OEM Certifications . . . . . . . . . . . . 38 Attanasio - Marketing Guru Schools Shops on All Things Google . . . . . . . . . . . . . . . . . . 42 Ledoux - An Industry in Constant Flux - A 1970s Perspective. . . . . . . . . . . . . . . . . 30 Phillips- FCA Certified Collision Care Program Elevates the Focus on Proper Repairs . . . . . 18 Phillips-Volkswagen-Audi Collision Program Manager Advises Industry on Reliable Repair. 26 Sisk - Mike Anderson and Impacted Shop Owner Warn Industry of Computer Ransom Scheme. . . . . . . . . . . . . . . . . . . . . 36
Isn’t Technology . . . . . . . . . . . . . . . . . . . . . 22 CREF Launches #100Floors 75Days Project . . 24 Dr. Ricki Garrett’s Focus on Education & Training Helps MSCRA Become Industry Leader . . . . 20 ECS Renews Commitment to CIECA . . . . . . . . 19 Ford Stresses Importance of Glass Repairs . . . 50
Collision Hub. . . . . . . . . . . . . . . . . . . . . . . . 48 Kelly Hall Joins Autobody News in Sales Management . . . . . . . . . . . . . . . . . . . . . . . 50
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli, Gary Ledoux Advertising Sales: Joe Momber, Bill Doyle, Norman Morano, Kelly Hall (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bill Pierce Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Alexis Wilson Accounting Manager: Heather Priddy Editorial/Sales Assistant: Randi Scholtes Office Assistant: Dianne Pray
$10,865,004 in Settlements Reached in ‘Starter’ Price Fixing Class Action Lawsuit . . . 8
Serving New York, New Jersey, Pennsylvania, Delaware, Maryland, Northern Virginia, Connecticut, Rhode Island, Massachusetts, Maine, New Hampshire, Vermont 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. ©2019 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 / (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.comx
Accuvision-3D . . . . . . . . . . . . . . . . . . . . . . . . 16
Launch Tech USA. . . . . . . . . . . . . . . . . . . . . . 55
Alloy Wheel Repair Specialists, LLC . . . . . . . . 19
Laurel Auto Group of Westmont . . . . . . . . . . . 47
Audi Wholesale Parts Dealers. . . . . . . . . . . . . 44
Luther Bloomington Acura-Subaru . . . . . . . . . 35
AutobodyLaw.com . . . . . . . . . . . . . . . . . . . . . 22
Mazda Wholesale Parts Dealers . . . . . . . . . . . 52
AutoNation Collision Parts . . . . . . . . . . . . . . . 13
McGrath City Hyundai . . . . . . . . . . . . . . . . . . 24
Axalta Coating Systems . . . . . . . . . . . . . . . . . . 5
Mercedes-Benz Wholesale Parts Dealers . . . . 50
Blowtherm USA . . . . . . . . . . . . . . . . . . . . . . . 39
Midwest Parts Group . . . . . . . . . . . . . . . . 14-15
BMW Wholesale Parts Dealers . . . . . . . . . . . . 51
MINI Wholesale Parts Dealers. . . . . . . . . . . . . 50
Bob Hook Chevrolet . . . . . . . . . . . . . . . . . . . . 43
MOPAR Wholesale Parts Dealers. . . . . . . . 32-33
Brunswick Auto Mart . . . . . . . . . . . . . . . . . . . . 7
Morrison’s Auto Parts. . . . . . . . . . . . . . . . . . . 30
Certified Automotive Parts Association . . . . . . . 6
Nissan/Infiniti Wholesale Parts Dealers. . . . . . 48
Classic Chevrolet . . . . . . . . . . . . . . . . . . . . . . 45
Patrick BMW MINI . . . . . . . . . . . . . . . . . . . . . 34
Classifieds . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Patrick Hyundai . . . . . . . . . . . . . . . . . . . . . . . 40
Mitsubishi to Relocate US Headquarters . . . . . 52 New Louisiana Law Aims to Protect Policyholder Choice of Repair Shop. . . . . . . . . . . . . . . . . 36 SCRS Event Discussion on Insurance Regulation, Workforce Development . . . . . . . 1
Courtesy Subaru . . . . . . . . . . . . . . . . . . . . . . 26
PPG Refinish . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Solving the Tech Shortage: I-CAR is Helping
Dent Fix Equipment . . . . . . . . . . . . . . . . . . . . 31
Richfield-Bloomington Honda. . . . . . . . . . . . . 36
Future Technicians Turn Their Passion
Eckler’s Automotive . . . . . . . . . . . . . . . . . . . . 37
SATA Dan-Am Company. . . . . . . . . . . . . . . . . 21
ECS Automotive Concepts . . . . . . . . . . . . . . . 18
Shaheen Chevrolet Parts Warehouse . . . . . . . 27
Equalizer Industries, Inc. . . . . . . . . . . . . . . . . 10
Spanesi Americas . . . . . . . . . . . . . . . . . . . . . 11
Gandrud Parts Center. . . . . . . . . . . . . . . . . . . 25
Subaru Wholesale Parts Dealers. . . . . . . . . . . 46
GM Wholesale Parts Dealers . . . . . . . . . . . . . 49
Symach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
GYS Welding USA. . . . . . . . . . . . . . . . . . . . . . 12
The Porsche Exchange. . . . . . . . . . . . . . . . . . 52
Honda-Acura Wholesale Parts Dealers . . . 28-29
The Sharpe Collection of Automobiles . . . . . . 23
Hyundai Wholesale Parts Dealers . . . . . . . . . . 42
U.S. Chemical & Plastics . . . . . . . . . . . . . . . . . 9
Infiniti of Naperville . . . . . . . . . . . . . . . . . . . . 38
VanDevere Chevrolet . . . . . . . . . . . . . . . . . . . 41
Jack Phelan Chrysler-Dodge-Jeep-Ram
VanDevere Kia . . . . . . . . . . . . . . . . . . . . . . . . 41
into Lifelong Careers . . . . . . . . . . . . . . . . . . 40 Truck Driving Could Soon Be a Desk Job . . . . . 51 Uber Reveals First Fully Autonomous Car in Partnership With Volvo. . . . . . . . . . . . . . . . 4 Volvo Trucks' Cabin-Less Self Driving
NATIONAL
See Uncertain Times, Page 8
Biggest Roadblock to Autonomous Vehicles
Jason Bartanen Moves From I-CAR to COLUMNISTS
given current demand. Interest rates are making it more expensive for automakers to offer bargain-basement deals, but shoppers can expect decent incentives at least through the summer months until automakers can adjust production. Increasing interest rates continue to create affordability issues for car shoppers. The average annual percentage rate (APR) on new
INDEX OF ADVERTISERS
REGIONAL
vehicle loans is 6.2% this year. According to Edmunds data, a shopper will spend about $2,000 more in interest on average over the course of a loan in 2019 compared to three years ago. Higher prices aren’t enough to convince car shoppers to break the leasing cycle. Through May 2019, lease penetration hit 32.2%; the highest Edmunds has on record since 2002. Thanks to higher interest rates, the average new vehicle lease in 2019 costs $1,965 more than it did
Hauler Takes on its First Job . . . . . . . . . . . . 44 WAC’s June Meeting Focused on Generation Z. . 11
of Countryside . . . . . . . . . . . . . . . . . . . . . . 17
Volkswagen Wholesale Parts Dealers . . . . . . . 52
Kelly BMW . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Zimmer Chrysler-Dodge-Jeep-Ram . . . . . . . . 56
Kia Wholesale Parts Dealers. . . . . . . . . . . . . . 53
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Are We Programming Killer Cars? The Ethics of Autonomous Vehicles Currently, Tesla cars are equipped with the necessary hardware for auOver the past several years, more and tonomous driving, but software upmore autonomous features have been dates are required to fully enable the feature. While it will allow fully auembedded in cars. tonomous driving, it will allow the human driver to take control when the situation calls for intervention. The next generation of autonomous vehicles, however, would not need steering wheels, pedals or transmissions. The advantage of such cars is the possibility of reducing accidents and providing necessary transportation for people who are incapable Currently, Tesla cars are equipped with the necessary hardware for autonomous driving, but software updates of driving. are required to fully enable the feature. Credit: Tesla / However, the downside YouTube is that the necessity for the human agency that sets up A Techopedia article reported the car’s programming to foresee all that even earlier Tesla cars con- possible scenarios and to direct the tained “the necessary hardware for car will inevitably cause some form autonomous driving,” though acti- of harm. vating the ability depended on a software update. The article also en- Self-Driving Cars and the Trolley visioned the difference between the Problem way autonomous cars built today Ideally, drivers avoid hitting anything will differ from the ones in the fu- or anyone. But it is possible to find oneself in a situation in which it is ture. by Ariella Brown, Interesting Engineering
impossible to avoid a collision, and the only choice is which person or people to hit. This ethical dilemma is what is known as the Trolley Problem, which, like the trolley itself, goes back over a century. It’s generally presented as follows:
one person.
You see a runaway trolley moving toward five tied-up (or otherwise incapacitated) people lying on the tracks. You are standing next to a lever that controls a switch. If you pull the lever, the trolley will be redirected onto a side track and the five people on the main track will be saved. However, there is a single person lying on the side track.
child running into the street, which forces the car to hit something but allows it to choose between the child and a van on the road. For a human that should be a no-brainer that protecting the child is more important than protecting the van or the autonomous car itself.
“These are very tough decisions that those that design control algorithms for automated vehicles face every day.” — Chris Gerdes
You have two options: 1. Do nothing and allow the trolley to kill the five people on the main track; 2. Pull the lever, diverting the trolley onto the side track where it will kill
Uber Reveals First Fully Autonomous Car in Partnership With Volvo by Jessica Miley, Interesting Engineering
Uber has presented the latest member of its self-driving car fleet at its annual Elevate conference. The self-driving Volvo XC90 SUV is the first Uber vehicle designed without the need for a driver. The autonomous car was designed in collaboration with Swedish carmaker, Volvo. Uber’s self-driving car program was suspended in 2018 after an autonomous car, under human supervision hit and killed a pedestrian in Arizona. The program is back in operation and Uber says that the new generation of self-driving cars will be hitting the roads in higher numbers from 2020. Currently, they are only being tested on public roads in Pittsburgh. Volvo and Uber Strike in Robo-Taxi War “What it looks like from the outside isn’t much different, but what’s going 4
on inside enables us to run our full autonomy system—things like 360 degrees of camera coverage, 360 degrees of LiDAR and radar,” Uber ATG CEO Eric Meyhofer said at the Elevate Summit. “These give the vehicle everything it needs in order to operate autonomously,” he added. Uber will take the XC90 base vehicle and equip it with its own self-driving system, enabling the possible future deployment of self-driving cars in Uber’s network as an autonomous ridesharing service. An important feature of the XC90 is its comprehensive backup systems for both steering and braking function. The battery system is also equipped with a backup that ensures that the car can come to a safe and complete stop immediately if any of the primary systems fail. Volvo on Board for Safer Roads
AUGUST 2019 AUTOBODY NEWS / autobodynews.com
What Should the Self-Driving Car Do? Chris Gerdes, a professor at Stanford University who has been looking into the ethical dilemmas among self-driving cars, offered a reasonable choice: that of dealing with a
“We believe autonomous drive technology will allow us to further improve safety, the foundation of our company,” said Håkan Samuelsson, president and chief executive officer of Volvo Cars.
But what would the AI think? Gerdes observed, “These are very tough decisions that those that design control algorithms for automated vehicles face every day.” We thank Interesting Engineering for reprint permission.
2019 and 2021.
Uber Needs High-End Partners “Working in close cooperation with companies like Volvo is a key ingredient to effectively building a safe, scalable, self-driving fleet,” Meyhofer said. “Volvo has long been known for its commitment to safety, which is the cornerstone of their newest production-ready self-driving base vehicle. When paired with our self-driving technology, this vehicle will be a key ingredient in The self-driving Volvo XC90 SUV is the first Uber vehicle Uber’s autonomous proddesigned without the need for a driver. Credit: Courtesy uct suite.” of Volvo Uber is pushing for a driver free future as one “By the middle of the next way for the company to become fidecade, we expect one-third of all the nancially viable. The race is on for cars we sell to be fully autonomous. who will be able to launch an effecOur agreement with Uber underlines tive ‘robo taxi’ fleet first. Waymo, another autonomous our ambition to be the supplier of choice to the world’s leading ride- vehicle development company is testing heavily, despite a lot of push hailing companies.” Volvo and Uber entered a part- back from local communities. nership in 2016 and in 2017. Volvo signed a ‘framework’ agreement with We thank Interesting Engineering for Uber to sell a fleet of cars between reprint permission.
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NABC Golf Fundraiser Highlights Benevolence of Industry no specialty elements—just pure golf. Boone Valley is an exclusive On June 3, the National Auto Body golf course, so it was a rare opportuCouncil (NABC) held its Gateway Pars nity for golfers to play there.” These types of events are imporfor Cars Golf Fundraiser at the Boone Valley Golf Club in St. Louis. The tant to NABC’s membership because fundraiser exceeded everyone’s expec- “there’s value in the networking that tations and went well, said NABC occurs in a relaxed environment where people are able to develop personal rePresident and CEO Bill Garoutte. lationships that may turn into “The committee that business relationships down oversees this event did an the road,” Garoutte said. outstanding job planning and The event was held in coordinating with our host, order to raise funds to supEnterprise,” said Garoutte. port NABC’s efforts and “The property, service and fulfill the organization’s staff were exceptional. The mission on behalf of its golfers and sponsors were really impressed with the fa- NABC President and members and the industry cility as well as the ability to CEO Bill Garoutte. at large. Garoutte added, Credit: NABC “We were able to expose network.” Over 90 golfers attended NABC’s attendees to one of our three initiafundraiser with another 35 sponsors tives: NABC Recycled Rides. People and volunteers, comprised mostly of like to see what they’re funding when NABC staff and board members, also they support an organization like present. “All the feedback we’ve re- NABC. While we normally only gift ceived has been positive,” Garoutte one vehicle at a time, during the golf shared. “Sponsors got the level of ex- fundraiser, we gifted vehicles to three posure they had hoped for and golfers local individuals/families in need. enjoyed the comradery on the course.” NABC feels blessed to be able to Garoutte continued, “This event help three very deserving veterans: was different from other fundraising Karen Cooksy, Adelita Ousley and events NABC has held. There were Melvin Wright.” by Chasidy Rae Sisk
Northwood University in Midland, MI, to Offer Automotive MBA by Mitchell Kukulka, Midland Daily News
Northwood University in Midland, MI, is bringing back its Automotive Aftermarket Executive MBA program, which is set to begin on Aug. 26. According to a press release, the program is designed to serve a variety of professionals employed by aftermarket organizations that provide products and services purchased for passenger and light to heavy-duty vehicles. This includes manufacturing, retail distribution, wholesale distribution, service and repair, as well as aftermarket support organizations, including associations, technology, training and sales. The program is a compliment to Northwood University’s long history in the automotive sector, which also includes undergraduate majors and a professional development arm of the university called the University of the Aftermarket, said Lisa Fairbairn, assistant vice president and dean of the Richard DeVos Grad6
uate School of Management. “It’s kind of a niche MBA for sure, but we have a lot of strategic partners at the university that are in the aftermarket, as well as a strong graduate pipeline in the automotive aftermarket, so it’s continuing that history that we’ve had,” Fairbairn said. Northwood University offered the program in the past, with its last class graduating in 2011. “In this dynamic and fastpaced industry, continuous learning is more important than ever,” said Richard Guirlinger, a veteran and executive of the aftermarket industry and alumnus of the program, in a press release. “This program combines a comprehensive business education with specific needs of industry professionals. I continue to draw on my learnings from this program to make an impact with customers, employees and leaders in the industry.” We thank Midland Daily News for reprint permission.
AUGUST 2019 AUTOBODY NEWS / autobodynews.com
When NABC gifts a vehicle, the process requires the involvement of eight to 15 entities who volunteer their time and resources. Garoutte said, “NABC is made up of partners
life-changing event. The industry as a whole empowers that individual.” “NABC was founded to represent the best possible image of the collision repair industry, and we develop, imple-
During its June 3 golf fundraiser, NABC gifted vehicles to three deserving veterans: Karen Cooksy, Adelita Ousley, and Melvin Wright. Credit: NABC
from all facets of the industry, and NABC Recycled Rides offers them the opportunity to be local heroes in their markets where they live and work. Within those communities, local charities help us identify a person or family in need, so the vehicle recipient is a member of that community as well. It all comes full circle. What we can’t monetize is what that gifted vehicle does for the individual, providing independence through reliable personal transportation. It’s a
ment and promote community-based initiatives that exemplify the professionalism and heart of the collision industry in the communities where we work,” Garoutte said. “It’s important to understand that what NABC promotes isn’t the organization itself— we’re promoting the benevolence of the collision repair industry.” For more information on NABC and its initiatives, visit nationalautobodycouncil.org.
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autobodynews.com / AUGUST 2019 AUTOBODY NEWS
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GM, Owens Partner for Debt-Free Path to Auto-Tech Jobs by Staff, Sentinel-Tribune
General Motors Co. (GM) has chosen Owens Community College in Ohio as one of seven community colleges in Michigan, Ohio and Pennsylvania to launch its GM Dealer Technician Scholarship, a program that can help students graduate debt-free with a two-year associate degree in automotive technology, beginning this fall. This scholarship is offered through the Owens Community College Foundation to assist eligible students who are enrolled in the GM Automotive Service Educational Program with full tuition and fees. “This is great news for our students who are looking to enter the automotive technology field with low cost, high-quality training,” said Steve Robinson, president, Owens Community College. “We are proud to continue our more than 25-year partnership with GM to help fill the gap between industry needs and qualified workers.”
The GM Dealer Technician Scholarship will help address the growing demand for highly trained automotive service technicians. The Ohio Occupational Employment Projection Report estimates that the industry will need 28,675 more technicians by 2026 due to anticipated demand and attrition. Owens Community College works with nearly 50 GM dealerships in the region to provide students the opportunity to work alongside experienced technicians to maintain and repair today’s high-tech vehicles. There is a 100 percent job placement rate for students completing the GM ASEP program at Owens. The end goal of exposing these students to many of GM’s industryleading technologies, including battery-electric vehicles, semi-autonomous driver assistance systems like Cadillac Super Cruise and built-in Wi-Fi connectivity is fulltime employment at one of more than 4,000 GM dealerships around
$10,865,004 in Settlements Reached in ‘Starters’ Price Fixing Class Action Lawsuit Law firms** have announced that the United States District Court for the Eastern District of Michigan Southern Division has approved the following announcement of proposed class action settlements with the Mitsubishi Electric Defendants, Hitachi Automotive Systems, Ltd. (“HIAMS”) Defendants, DENSO Defendants and MITSUBA Defendants. The settlements resolve allegations against the Settling Defendants that they conspired to raise, fix, maintain and stabilize prices, rig bids and allocate the supply of starters sold in the United States, in violation of federal antitrust laws. The settlements affect those who purchased starters in the United States between January 1, 2000, and March 12, 2018 directly from any one of the following entities (or depending on the specific settlement agreements, their parents, subsidiaries, affiliates or joint ventures): Mitsubishi Electric Corporation; Mitsubishi Electric US Holdings, Inc.; Mitsubishi Electric Automotive America, Inc.; Hitachi Automotive 8
Systems, Ltd.; Hitachi, Ltd.; Hitachi Automotive Systems Americas, Inc.; DENSO Corporation; DENSO International America, Inc.; MITSUBA Corporation; American Mitsuba Corporation; Nikko Electric Industry; and Robert Bosch GmbH. A hearing will be held on October 3, 2019, at 11:00 a.m., before Marianne O. Battani, United States district judge, at the Theodore Levin United States Courthouse in Detroit, MI, for the purpose of determining whether the proposed settlements with the Mitsubishi Electric Defendants, HIAMS Defendants, DENSO Defendants, and MITSUBA Defendants totaling $10,865,004 should be approved by the Court as fair and reasonable. A Notice of Proposed Settlements was mailed to potential Settlement Class members on or about June 27, 2019. **Freed Kanner London & Millen LLC; Kohn, Swift & Graf, P.C.; Preti, Flaherty, Beliveau & Pachios, LLP; and Spector Roseman & Kodroff, P.C. Obtained via PRNewswire.
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the country. “We’re tearing down the barriers that stand in the way of people pursuing these good-paying, hightech jobs,” said Terry Rhadigan, executive director, GM Corporate Giving. “After two years, we want people to hit the ground running, so we will help them get a quality education, technical training and handson experience without the burden of student loans.”
Students interested in the scholarship program should contact Owens Transportation Technologies department at 567-661-7388. We thank the Sentinel-Tribune for reprint permission.
www.autobodynews.com
Uncertain Times
in 2016 and the average monthly payment is $536, which is $46 more than in 2016. A glut of off-lease used vehicles will continue to put pressure on new car sales as a more affordable option for car shoppers. In 2010, a 3-year-old used car cost on average $8,996 less than a new car; in 2019, a 3-year-old used car is on average $13,535 less. Green car sales are on pace to hit a new record, but automakers still struggle to get EVs to appeal to a wide audience. Edmunds anticipates 700,000 EVs and hybrids will be sold in 2019 and while that will be a new record, the narrow appeal of EVs to affluent males in coastal states limits further growth potential. So far this year, Tesla accounts for 82% of EVs sold and 28.9% of all Tesla’s sold this year were to men in California. We thank just-auto for reprint permission.
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Feldman Automotive Plans New Body Shop in New Hudson, MI by Susan Bromley, Hometown Life, Part of the USA Today Network
A 26,136-square-foot auto repair shop is coming to Lyon, MI, pending special land use approval by the township board. The planning commission unanimously approved a site plan for Feldman Auto Body at its Monday meeting. The project will move forward if the township board approves the special land use the commission recommends for the facility, which would be located on a 10.6-acre vacant parcel on the north side of Interstate 96 and Pontiac Trail, east of S. Milford Road. Commissioner Jim Chuck said a presentation on the Feldman proposal during a March public hearing was “one of the worst” he had seen, but added that on Monday, all his questions had been answered. “You are Michigan’s number one Chevy dealer,” he said. “It needs to look nice, and I think you guys answered the bell.” Feldman Automotive had proposed paying into a sidewalk fund rather than establishing a sidewalk on the property’s frontage that would have no adjacent property connec-
10
than two days at a time, and will be inspected within 24-48 hours of arrival and removed within seven days from the parking lot. Gary Letkemann, representing Feldman Chevrolet, said cars would be dropped off and prepped from Feldman’s New Hudson store, as well as from other stores. “Cars will be moved in and out,” he said. “The parking situation at all of our stores is at critical mass and this will be good relief. Our goal is to sell, and the inventory terms are pretty good.” To address potential The Feldman Chevrolet dealership in New Hudson. The traffic issues, Feldman has Lyon Township Planning Commission recently approved worked with the Road the company to construct an auto body repair facility on Commission for Oakland Pontiac Trail. Credit: Courtesy of Feldman Automotive County and will extend a and possible restaurants established center left turn lane for the frontage on Pontiac Trail. in the area near a trailhead. The company will also conPlanning Chair Mike Conflitti wondered if the 304 parking spaces tribute to the township’s tree fund in allotted for the site would be suffi- order to negate taking down 86 trees cient, suggesting it was more likely to construct the facility. the shop would need space for more We thank Hometown Life (part of the than 400 vehicles. Under the company’s proposal, USA Today Network) for reprint pervehicles can’t be stored for more mission. tions. Commissioner Patricia Carcone noted at the meeting that while it was essentially “a sidewalk to nowhere,” she preferred it be put in any way with an eye on the future
AUGUST 2019 AUTOBODY NEWS / autobodynews.com
ProCare Collision Announces Rebranding
ProCare Collision, a Texasbased MSO with 30 locations, announced it is rebranding it’s Art’s Paint & Body location to ProCare Collision. This consolidation of brands and alignment is part of the continued MSO’s strategy to bring a unified presence to the San Antonio market. ProCare has owned the Art’s Paint & Body brand for three years. “Our corporate entity has always been ProCare Collision doing business as Art’s Paint and Body,” said Vince Brock, CEO of ProCare. “We are simply dropping the Art’s moniker and utilizing the actual name of the company moving forward.” Parent company ProCare operates multiple brands across Texas including ProCare Collision in San Antonio, AMM Collision in Austin, Texas, and Fogle Collision in Houston. The new name is effective immediately and will be implemented across the company’s services.
WAC’s June Meeting Focused on Generation Z by Chasidy Rae Sisk
On June 19, Women in Automotive and Collision (WAC) held its monthly meeting at Enterprise Fleet Management (EFM) in St. Louis, featuring guest speaker Kevin Andert, manager of College and Career Readiness
for North and South Technical Colleges. According to WAC President Shelly Jones, “Kevin did a presentation on Generation Z compared to other generations. It was excellent. This is one of those presentations that you wish every collision shop manager or owner could attend.”
Andert provided an overview of the five generations in the workplace and defined Generation Z. Credit: WAC
Guest speaker Kevin Andert, manager of College and Career Readiness for North and South Technical Colleges, taught WAC members about Generation Z. Credit: WAC
During his presentation, Andert provided an overview of the five generations in the workplace and defined Generation Z. He also discussed strategies for overcoming the differences and embracing the strengths offered by each generation. The meeting was hosted by EFM, a recent addition to WAC’s growing list of gold sponsors. EFM Talent Ac-
quisition Specialist Tamara Weidler attended the meeting and shared, “The meeting was very insightful in that we learned a lot about what to expect with
sion repair was evident.” Weidler said those at the meeting heard a testimony from Alex Emge, customer support advisor for EFM. Emge wasn’t making enough money at her previous job, so she decided to study diesel technology while working for EFM as an intern. She eventually landed a full-time job there. This testimony encouraged the young people at the meeting to pursue their passion, Weidler added. WAC’s next meeting will be held at 6 p.m. on WednesWAC members gathered for its monthly meeting on day, July 17 at Ranken TechJune 19. Credit: WAC nical College with guest Generation Z, specifically how to ap- speaker Stan Shoun, president of proach them and how to manage them Ranken. Jones predicts, “This will be another informative and fascinating to keep them engaged.” “We were also happy to share presentation. Look for more guest information about services EFM of- speakers at future meetings. There are fers our clients and the type of pro- many organizations that have a mission fessional opportunities that await or hold events, such as job fairs, that young people that decide to pursue would tie into the WAC mission and a technical education,” Weidler said. benefit our members.” “There were many new faces at the meeting and the energy for reaching For more information about WAC and young people to share the opportu- its upcoming meetings, visit: wacstl nity of automotive repair and colli- .com.
autobodynews.com / AUGUST 2019 AUTOBODY NEWS
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Continued from Cover
Short-Pay By Insurers
Classic Auto Works in recent years involving similar claims against other insurance companies for collision repairs. According to Parker’s website, the shop has broken away from a “direct repair program,” that the company says “become subject to insurance company demands such as the repair of parts that should be replaced, using after-market parts, or salvaged parts.” The website added, “In our experience, these practices are done to improve the bottom line of the insurance company and offer no benefit or savings to the consumer. In fact, such actions can adversely affect the safety and value of the vehicle.” In the Nationwide case, Parker sued for a little more than $40,000 in denied payments. The lawsuit listed more than 70 names of people who sought payment for vehicle repairs between 2009 and 2014. In those cases, the lawsuit stated, Nationwide failed “to pay the full
ruled in favor of Parker’s. “With no definition of ‘damage’ in the policy, we construe this term consistently with general principles of the law of remedies, interpretations of the standard collision-insurance policy as a whole, particularly the limitation-of-liability clause,” the decision stated. “We conclude that ‘damage’ here means the amount of money needed to repair an insured vehicle to preaccident condition,” according to the ruling, “not to exceed Mike Parker in a promotional video on Parker’s Classic the value of the vehicle beAuto Works Facebook page fore the accident.” “Each insured, in consideration It’s not Parker’s largest victory of being able to take possession of his yet in his battle against insurance or her vehicle, assigned (Parker’s) the companies over short pays. He preright to proceed against (Nationwide) vailed in 2015 in a three-year fight in order to collect the amount due and against Allstate for $53,000 in a lawowing for repair of the insured vehi- suit he brought on behalf of 70 consumers. cle,” the lawsuit stated. In fact, this is Parker’s fifth lawNationwide, in court records, denied owing the money to Parker’s suit against a national insurance company, and it’s the fifth time he’s won. auto shop. ‘I’m five for five,” Parker said The Vermont Supreme Court, in a recent 14-page unanimous decision Monday. Though, he added, the Nationauthored by Justice Karen Carroll, amount of the repair to the insured.” In each case, Nationwide paid the amount it believed it owed, but not the full amount sought by Parker’s.
Veteran Receives Recycled Ride From LaMettry’s Collision in Minnesota
An Army veteran, Tristan Carpe, served our country for seven years in a challenging environment helping our wounded troops at the US Army Medical Center in Landstuhl, Germany. When she needed some help herself, LaMettry’s Collision, American Family Insurance and local vendor partners worked together to provide her family with a reliable vehicle through the NABC’s Recycled Rides program. She received the keys to a fully restored 2016 Toyota Camry at a celebration ceremony on May 21. A recurring theme of the event was taking the time to appreciate the service and sacrifice of our military and offering help when needed. Assisting Carpe locally was Carver County Veteran Services Officer, Dan Tengwall. “Tristan, like any other vet, came to our office,” Tengwall said. “I think the one difference is that she asked for help.” Col. Bob Ayotte, part of the nomination and planning committee for this event said, “This is the American family– Americans helping Americans. Speaking of the service and sacrifice of our military members, Rep. 12
Kelly Morrison (MN House, 33B) said, “Tristan Carpe is certainly a wonderful example of sacrifice and
Credit: LaMettry’s Collision
service. You heard about her remarkable journey. Her courage inspires us all. To enlist at the height of the post9/11 war on terror alone is brave and admirable. To care for our fallen and wounded warriors is a critical and challenging task.” Contributing partners making this event possible include American Family, LaMettry’s Collision, Burnsville Toyota, 3M, BASF, Chanhassen AutoPlex, Charity Cars, EP Auto, Tire & Glass, Flags and Honor of Minnesota and Insurance Auto Auctions (IAA). This is the 9th vehicle LaMettry’s Collision has repaired and donated through the NABC’s Recycled Rides Program. Obtained via LaMettry’s Collision
AUGUST 2019 AUTOBODY NEWS / autobodynews.com
wide case is the first to make it all the way to the Vermont Supreme Court. Meanwhile, he has four other cases with national insurers still pending, including lawsuits against Progressive and Travelers. And, he said, over the years he has reached several settlements with other insurance companies but can’t talk about those do to confidentiality agreements. Parker said how the Vermont Supreme Court ruling will affect the other cases that remain pending remains unknown. ‘They were all waiting to see what was going to happen,” he said. “They were all hoping we were going to lose this.” Parker started bringing such legal actions against insurance companies for “short pays” several years ago. Since then, some insurance companies have started paying for the needed procedures they wouldn’t have paid for in the past, according to Parker. But, he said, others have taken different actions in response to his actions. “Some insurance companies try See Short-Pay By Insurers, Page 16
autobodynews.com / AUGUST 2019 AUTOBODY NEWS
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Continued from Page 12
Short-Pay By Insurers
to steer away from us,” he said. “They try to get people not to come here.” But Parker said, he isn’t deterred. “Everything we do is necessary,” he said, adding, “This is trying to get what was owed to begin with to bring the car back to pre-loss condition.” McClallen, Parker’s attorney, could not be reached Monday seeking comment. Also, Eric Boron, a Buffalo, New York, attorney, listed in court records as lead counsel for Nationwide, did not return a call Monday seeking comment. Marilyn Miller, executive director of the Vermont Vehicle and Automotive Distributors Association, said Monday she was still reviewing the details of the decision. “I do know this has been something that Mr. Parker has been fighting for,” said Miller, whose organization is a trade association representing the interests of the auto industry, including new and used car and truck dealers as well as auto shops and parts facilities. “I’m impressed that Mr. Parker has
stuck with it this long and really saw it through to the end,” Miller said. “I think this is a positive thing,” Miller added, “certainly for independent (auto shops) and for anybody in the business of repair when an insurance carrier is not willing to reimburse you what is a legitimate parts and labor cost.” In 2017, a jury following a twoday trial in Rutland County Superior civil court also sided with Parker’s in its dispute with Nationwide, awarding the auto shop $41,737. However, Judge Helen Toor later overturned that jury ruling, granting a motion for judgment “as a matter of law.” The judge stated that the insurance policies required the firm to pay “an amount [defendant] determined was sufficient to do the repairs,” according to the high court’s decision. And, that judge ruled, those insured could not sue Nationwide for money that “were entirely within” the firm’s “discretion to award.” The state’s highest court took a different view, ruling in part, that the policies lacked provisions allowing for challenges on how much was sufficient to be paid for a repair.
“The trial court interpreted the insurance policy, which was silent on the matter, to only require defendant to pay ‘an amount [defendant] determined was sufficient to do the repairs’,” according to the decision. “We disagree with this construction,” the ruling added. “Just as we will not rewrite an insurance policy in favor of an insured, we also cannot rewrite a policy in favor of an insurer.” And during the trial, the decision stated, Parker provided records for his charges. “Mr. Parker, the owner of the repair shop, testified on direct examination to his experience repairing vehicles and to the billing and repair processes employed in his shop,” the ruling stated. “He compared,” the decision added, “in some respects, the practices employed in his shop to those used by defendant’s claims adjuster.” Michael Pieciak, commissioner of the Vermont Department of Financial Regulation, said Monday he didn’t see the decision as precedent setting beyond the policy at issue in the case.
The commissioner called it a “classic contract dispute,” in which the policy did not spell out some of the key terms, such as defining the word “damage,” so the high court went ahead and did that. Typically, Pieciak said, such terms are laid out in great detail in policies and contracts. “It just so happens in this case it wasn’t that clear,” the commissioner said. Nationwide also contended it was not required to pay both “repair and labor costs” since the policy provided for payment of labor costs under the towing clause but not the “collisioncoverage insuring” clause. Justice Carroll, in the decision, rejected that argument. “Labor is an indispensable component of the cost to make a repair,” Carroll wrote. “Moreover, defendant’s opening statement and the only witness that defendant offered at trial effectively admitted that the policy covers, to some degree, labor costs for making a repair.” We thank VTDigger.org for reprint permission.
New Louisiana Law Aims to Protect Policyholder Choice of Repair Shop by Staff, Insurance Journal
A new law in Louisiana aims to ensure that auto insurance policyholders have the option to choose a particular motor vehicle repair shop.
A new law in Louisiana aims to ensure that auto insurance policyholders have the option to choose a particular motor vehicle repair shop. Credit: Insurance Journal
Under Act 317 (House Bill 411), which has been signed by Gov. Jon Bel Edwards, insurers are prohibited from recommending specific auto repair shops unless their insureds are clearly informed 16
that they are not required to use the recommended shop. According to the Coalition Against Insurance Fraud, insurers are allowed to inform consumers about reputable repair facilities and warn against body shops suspected of committing fraud. However, the bill states: “An insurer shall not engage in any act or practice of intimidation, coercion, or threat to use a specified place of business for repair and replacement services.”
The act provides for fines for violations of the law: • $1,000 for a first offense • $2,500 for a second offense within a 12-month period, $2,500 • $5,000 for third or subsequent offense within a 12-month period
The act also gives the state’s insurance commissioner the power to suspend or revoke insurance licenses of violators. We thank the Insurance Journal for reprint permission.
AUGUST 2019 AUTOBODY NEWS / autobodynews.com
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Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.
National Associations with Stacey Phillips
FCA Certified Collision Care Program Elevates the Focus on Proper Repairs Autobody News recently reached out to Fiat Chrysler Automobiles (FCA) to learn more about the FCA U.S. LLC Certified Collision Repair Program and the role of Assured Performance Network. FCA shared
how body shops can find out more information.
Can you please tell us what prompted Fiat Chrysler Automobiles to establish the FCA Certified Collision Care Program?
Q:
In 2011, we recognized the importance of assisting our Chrysler, Dodge, Jeep®, Ram and Fiat customers through every stage of the ownership cycle, including the unfortunate occurrence of an accident. With vehicles that feature ever-increasing levels of technology and complexity, it was important to offer customers a network to turn to for safe and proper collision repair. In July 2012, we launched the FCA U.S. LLC Certified Collision Repair Program. It is the first OE certification program managed through Assured Performance Network, the largest OE
A:
The FCA U.S. LLC Certified Collision Repair Program was launched in July 2012. Credit: FCA
highlights about the program as well as the type of training offered and
18
AUGUST 2019 AUTOBODY NEWS / autobodynews.com
certification group in the U.S. We currently have 1,847 shops that are part of the program.
shops have the right tools, equipment, training and modified facilities to be able to provide a proper repair. What are some of the highlights you would like to share with collision repairers and others in the industry about the program?
Q:
Mopar, established in 1937, is the official service, parts and customer care brand for FCA FCA said its certified shops utilize the right tools to U.S. vehicles — Chrysler, safely and properly repair vehicles to FCA standards Dodge, Jeep®, Ram and and procedures. Credit: FCA Fiat. Mopar’s top priority is to deliver owners the confidence and What is the role of Assured peace of mind that comes through rePerformance Network? pairs made at an FCA certified body shop with the use of OEM replaceAssured Performance Net- ment parts. Our program seeks to work facilitates the program be a convenient OE partner for reon behalf of FCA and certifies that pair centers while requiring indus-
A:
Q: A:
try-leading adherence to OE repair methods. For example, FCA has developed a list of the necessary equipment that is driven more on capability specifications rather than specific brand name tools. For all of our vehicle owners, Mopar is there every step of the way on their customer journey, and that includes safe and proper collision repair through a trusted network.
Q: A:
vehicles to FCA standards and procedures. FCA works closely with our shops to spread the word that they are part of our trusted network, and we feel this is another great benefit of our program. We host a certified
What are the benefits of being part of the certified program?
Participation in the program elevates the focus on proper repairs. Through our partner network, we are able to require repair methods and training levels that only about 10-15 percent of the industry can meet, and we feel that’s a great service for our customers. Another benefit for our Chrysler, Dodge, Jeep®, Ram and Fiat owners is access to a network of shops where they can feel confident the focus is on safe and proper repair. Our certified shops have the right tools in their toolbox to safely and properly repair
Q: A:
What type of training is offered for certified shops?
For 2019, we have continued to invest in both web-based and in-person training on how to correctly repair, scan and recalibrate FCA vehicles. We are taking a closer look at our network’s performance/capabilities and ensuring we have the right shops in the network for our customer experience. How can collision repair facilities find out more details about the program?
Q:
For more information on the FCA U.S. LLC Certified Collision Repair Program, visit http:// www.certifymyshop.com/fca.
A:
Mopar is the official service, parts and customer care brand for FCA U.S. vehicles. Mopar-modified Ram 2500 Heavy Duty and a Jeep Gladiator shown in photo. Credit: FCA
shop locator on the Mopar owner website and the owner mobile app. We also partner with certified shops to offer customized mailers to Chrysler, Dodge, Jeep®, Ram and Fiat vehicle owners in certain zip code proximity to their locations.
For more information about Assured Performance Network, visit https:// www.assuredperformance.net/.
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ECS Renews Commitment to CIECA
Electronic Claims Services (ECS) has renewed its commitment to CIECA and the CIECA standards. “We have a long history in the property & casualty and collision repair and glass industries and have been familiar with CIECA’s efforts to encourage industry standards,” said Brett Mulvihill, president at ECS, which is based in Portland, OR. “We joined CIECA as we support open commerce.” Mulvihill said the company has many longstanding relationships with Pacific Northwest companies as well as other clients throughout the U.S. and is committed to supporting these customers with first-class service and support. “Standards simplify the integration process and improve the efficiency of the interactions with our insurance clients, collision and glass repair and the various service providers we work with while facilitating the insurance claim process,” he added. For more information about Electronic Claims Services, visit www.claimsoffice.com/company .aspx. For more information about CIECA, visit www.cieca.com.
autobodynews.com / AUGUST 2019 AUTOBODY NEWS
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Dr. Ricki Garrett’s Focus on Education & Training Helps MSCRA Become Industry Leader by Stacey Phillips
Two years ago, the Mississippi Collision Repair Association (MSCRA) asked Dr. Ricki Garrett, Ph.D., to assume the role of executive director so the current director, John Morgan Hughes, could focus on lobbying efforts for the association. Garrett welcomed the opportunity. “My focus is to help the association become an outstanding organization and a leader in the profession,” said Dr. Garrett. Previously, Dr. Garrett served as the executive director of the Mississippi Nurses Association. She created and managed the first association for nurse practitioners in Mississippi— The Mississippi Association of Nurse Practitioners (MANP). In addition, Garrett owns an association management firm, Ricki R. Garrett, LLC that manages The Mississippi Speech-Language-Hearing Association and consults for other associations. Prior to her association management career, Dr. Garrett served a 12year gubernatorial appointment to the Board of Trustees of State Institutions of Higher Learning, governing the eight public universities in Mississippi. “That experience gave me a depth of knowledge about governance, management, education, and legal and financial issues,” said Dr. Garrett. “Association management is very much the same, despite representing a diverse group of professions and organizations.” She said collision repair specialists need up-to-date, state-of-the-art education and training and stressed the importance of learning the value of advocacy for their profession. “Their professional association is, literally, the best vehicle for acquiring that education and for moving the industry forward,” explained Dr. Garrett. “I hope my experience in association management and governance and my education will help to move MSCRA forward as a leader in the industry.” Dr. Garrett currently serves as the alderwoman-at-large for the city of Clinton, where she lives in Mississippi. Throughout her career, she has 20
been involved with leadership posi- lobbying over the years and is in- the Honda Fit from the John Eagle tions in multiple state professional volved in such issues as consumer Collision Center court case. associations. Dr. Garrett earned a protection, OEM parts requirements The annual event was established PhD in Urban Higher Education from and eliminating the practice of title in 2012 by Steve Plier, president of Jackson State University, a washing of totaled vehicles. Consumer Auto Repair Excellence, as master’s in English from the “MSCRA wants to en- a platform to showcase the collision University of Mississippi, sure local and regional body repair industry and address issues and a bachelor’s in English shops are becoming models unique to body shops. Five years later, from the Mississippi Unifor the industry by provid- SARC has become the premier indusversity for Women. ing the very best training try event for the Southeastern United An important part of and education for our mem- States. her role at the MSCRA is He said the goal is to bring the bers,” she added. Dr. Ricki Garrett, managing the annual SouthAs a result, there were industry together so they can comexecutive director of the Mississippi eastern Automotive Repair presentations throughout the municate and better understand that Collision Repair Conference (SARC), which event from industry leaders issues do not only affect a single reAssociation (MSCRA). took place this past June in such as Aaron Schulen- pairer or a repairer in a particular New Orleans, LA. burg, executive director of the Soci- area, but everyone faces the same or “They said they needed someone ety of Collision Repair Specialists similar issues. with extensive event planning experi- (SCRS); Burl Richards, president “The conference was founded ence to manage a conference of that of Burl’s Collision Center and presi- for the industry and the event has size and scope,” said Dr. Garrett. dent of the Auto Body Association of grown because of the collision repairApproximately 300 attendees Texas (ABAT); and Jake Roden- ers who attend and the suppliers/inhad the opportunity to experience roth, director of industry relations at dustry sponsors,” said Plier. “It was some of the highest levels of I-CAR asTech. due to the efforts and time of each of training and education in the industry Other speakers included former those groups that grew SARC to the and learn valuable skills and updates pro hockey player and author, Dave levels it has reached, and it will be from industry experts about cycle Jesiolowski, and Mississippi Attor- the efforts and time of those groups time, damage analysis and parts mir- ney General Jim Hood. The confer- that will continue to make SARC and See Focus on Education, Page 24 roring, ADAS and other relevant top- ence also featured information about ics. They also were able to gain insight into the political issues facing the industry and to acquire best practices from their fellow attendees. “It is important for collision repair specialists to attend conferences such as SARC because it allows them to be exposed to state-of-theart training as well as to the most upto-date and effective equipment and services,” said Dr. Garrett, executive director of MSCRA. “There is enormous political clout to be gained from collision specialists working together across state lines and SARC provides that opportunity.” Original BMW Parts & Accessories Some of the industry issues MSCRA highlighted during the conference this year included the relaLarge Inventory tionship among body shops and the Competitive Pricing insurance industry, the complexity of Experienced Staff automotive repairs today, the importance of following industry standards in all repairs and the value of politiPhone: 614.471.2277 cal advocacy for the industry. Parts Direct: 614.337.3090 As the host of the SARC ConferParts Fax: 614.476.2488 ence, Garrett said MSCRA is focused not only on Mississippi issues but also www.kellybmw.com on making sure the association is repHours: M-F 8am-6pm; Sat 9am-2pm resenting the industry needs of the Southeast and nationally. 4050 Morse Rd • Columbus, OH 43230 The association is known for its
AUGUST 2019 AUTOBODY NEWS / autobodynews.com
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Biggest Roadblock to Autonomous Vehicles Isn’t Technology by Eric Tanenblatt and Crawford Schneider, WardsAuto
To state the obvious: The future of autonomous vehicle regulation is fluid. At present, the federal government regulates the vehicle itself—its construction, composition and reliability, while state governments regulate driver competence. However, the increased integration of autonomous-vehicle technology into the driving task itself has made distinguishing the driver from the vehicle difficult. As a result, there is overlap between state and federal law in addition to differences between states, leaving automotive companies without a clear standard. Fortunately, federal regulators are adjusting the rules to accommodate autonomous vehicles within the existing legal framework. On May 22, the NaContinued from Cover
Death Wobble
“death” wobble, no deaths have ever been attributed to the condition. The lawsuit was filed by Clair Reynolds, New Jersey plaintiff, who owns a 2018 Jeep Wrangler Unlimited Sport she purchased in July 2018. By December 2018, she returned the Wrangler to the dealership because the Jeep allegedly began to experience the wobble. The dealer allegedly kept the Wrangler for about two weeks to replace the steering damper. But Reynolds claims the alleged death wobble returned a few days later. The Wrangler was taken back to the dealership in February 2019 and again the steering damper was allegedly replaced, with the technician noting the Jeep was “test drove on highway for 19 miles inspected on lift everything working as designed.” But the plaintiff claims the wobble returned within days. In March, the plaintiff allegedly wrote to FCA and informed the automaker about the alleged problems, telling Chrysler the issue could likely “cause death or serious bodily injury.” Reynolds says she gave FCA one last chance to repair the alleged problems or else she 22
tional Highway Traffic Safety Administration and the Federal Motor Carrier Safety Administration published advanced notices of proposed rulemaking to seek public comment on possible rule changes to the FMVSS and the Federal Motor Carrier Safety Regulations. Together, the two sets of regulations govern personal and commercial autonomous-vehicle construction. New standards are necessary because, as vehicles become more advanced, human controls required by federal law will be unnecessary. Not only that, but they will be a burden to innovative design. Any effort to ease human-centric vehicle requirements, if enacted, will bolster the development of vehicle uses not centered on individual use. NHTSA requests comments “on the suitability of various approaches
that could be used to address compliance verification challenges that exist for crash-avoidance standards that either (1) require a manual control; or (2) specify the use of manual controls in a compliance test procedure.” Simultaneously, while rulemaking progresses slowly, a full overhaul of the current system could be spurred by new congressional legislation, which is, at present, uncertain. U.S. Senators John Thune (R-SD) and Gary Peters (D-MI) are working together to reintroduce bipartisan legislation to create a federal regulatory framework for autonomous vehicles. The renewed initiative comes in the wake of last year’s failed effort to pass the AV START Act. That bill, which would have, among other things, increased the number of NHTSA safety exemptions and spurred an autonomous directed update to the FMVSS, stalled
due to opposition from several Democratic senators over privacy and security concerns. Even though last year’s effort fell short, the bill enjoyed strong support in the House, where it passed unanimously via a voice vote. However, in the 116th Congress, with Democrats in control, expect an enhanced focus on vehicle safety and oversight of manufacturers. “We are going to deal with autonomous vehicles, the AV START Act and the way we think about how people and goods are transported around the country,” Wicker said. “Congress got close on this last year … we will see how far we get this time. There are wrinkles that need to be ironed out, but I think we can get there.”
would demand a refund. According to the plaintiff, attorneys for Chrysler contacted her and told her to drop the Wrangler off at the dealership for repairs. But Reynolds says she was told by the dealership that no loaner vehicle was available. However, she would be put on a waiting list until a loaner was available. The plaintiff says FCA’s attorneys contacted her on April 5 informing her she had not dropped off the vehicle immediately as originally requested. She was also informed that Chrysler’s written warranty doesn’t provide for rental or loaner vehicles. According to the lawsuit, the plaintiff again returned the Jeep Wrangler to the dealer and complained about the so-called death wobble, so a dealer representative allegedly left the plaintiff a voicemail. “On April 12, 2019, a representative from Johnson Jeep left a voicemail for Plaintiff, indicating that she test drove the vehicle and that the Jeep’s ‘Death Wobble’ ‘is trying to kill [her] again and I’m sure you as well … “ The steering damper was allegedly replaced for the third time and technicians noted the “vehicle [was] operating as designed at this time.”
Plaintiff Reynolds said FCA never told her about the wobble and never warned her about what to do if it occurs. She also claims she
wouldn’t have purchased the Wrangler if she would have known what she knows now.
AUGUST 2019 AUTOBODY NEWS / autobodynews.com
We thank WardsAuto for reprint permission.
See Death Wobble, Page 24
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Continued from Page 20
Focus on Education
or other regional events a success.” During this year’s conference, Hood discussed the Mississippi Auto Repair Task Force that was created by the attorney general’s office and the Mississippi insurance commissioner, Mike Chaney, with representatives from a cross-section of the industry. As a result of the taskforce, the Attorney General’s office issued a guide for Mississippians about detailing the state and federal law for insurance and auto repair: A Consumer’s Guide to Auto Body Repair. “I hope that other states will use our guide as an example for what they can create in their states,” Hood said. At the end of the task force meeting in January 2017, Hood said it was clear that computerization was going to be the next big issue to monitor. Since then, his office has worked with the MS Insurance Department to facilitate resolution of disputes and to monitor whether or not scan codes are Continued from Page 22
Death Wobble
The lawsuit references a 2012 media story in California that led two California politicians to contact NHTSA about the so-called Wrangler death wobble. Federal safety regulators looked into the matter and determined the vibrations didn’t even cause drivers to wander out of their travel lanes. NHTSA also determined 20052010 Wrangler drivers who experienced the vibrations found them “disconcerting,” but safety regulators found no evidence of drivers losing control of the Wranglers. In addition, federal safety regulators referenced previous investigations into the same vibration issues in vehicles from Ford but determined there was no evidence that recalls were necessary. The plaintiff claims there is evidence Chrysler knew about the Jeep Wrangler vibrations based on a technical service bulletin (TSB 02-00310) sent to dealerships in 2010 related 24
being covered by insurance companies. Last August, Hood’s office reached out to OEMs, including FCA, Honda, Hyundai, Nissan and Toyota, to discuss their position statements regarding scan codes and to clarify any ambiguities. “In Mississippi, it seems like most insurers are following the manufacturer position statements regarding the scan codes, but I encourage body shops and consumers in our state to notify my Consumer Protection Division and MID if that is not the case,” Hood told attendees. In order to assist consumers in the future, Hood said it’s important for him and his staff to stay informed regarding industries impacting consumers, especially new technologies, and how the attorney general can help. “Additionally, I have found that multi-sector collaboration is essential on every issue—whether we are talking about recovery from the opioid crisis or auto repair and insurance coverage; conferences such as SARC help build those necessary relationships.” to 2007-2009 Jeep Wranglers. Although those model years are not included in the lawsuit, the bulletin told dealer technicians to replace the steering dampers and brackets if Wrangler drivers complained about vibrations on rough surfaces. The Jeep Wrangler death wobble lawsuit was filed in the U.S. District Court for the Eastern District of Michigan - Clair Reynolds, et al., v. FCA US, LLC. The plaintiff is represented by the Miller Law Firm, Saltz Mongeluzzi Barrett & Bendesky, Sauder Schelkopf and Gustafson Gluek. FCA isn’t the first automaker sued for front-end vibrations which earned the label, “death wobble.” Five days ago a proposed class action lawsuit was filed against Ford over claims F-250 and F-350 trucks suffer from “death wobbles.” CarComplaints.com has ownerreported complaints about Jeep Wranglers. We thank CarComplaints.com for reprint permission.
AUGUST 2019 AUTOBODY NEWS / autobodynews.com
Garrett added that the enduring purpose of SARC is to provide an annual forum for collision repair professionals in the region – where attendees can visit exhibits, receive important industry information and training, stay abreast of new vehicle technologies, learn the best methods for marketplace success, and stay focused on consumer safety. “We were very pleased with the response to the SARC 19 conference and look forward to announcing the dates and location for SARC 2020 soon,” said Garrett. “It is our hope that SARC will become bigger and better each year and will enable both our attendees and our industry partners to have the most valuable and rewarding experience possible.” For more information about MSCRA, visit https://mscra.net. For more information about SARC, visit https://sarc-collision.com. A Consumer’s Guide to Auto Body Repair is available for download at www.agjimhood.com or by following this link: www.ago.state.ms .us/wp-content/uploads/2017/05/AUTO -BODY-REPAIR-A-CONSUMERSGUIDE_Final.pdf.
CREF Launches #100Floors 75Days Project
The Collision Repair Education Foundation (CREF) announced it launch a program this summer to provide 100 collision repair schools with new flooring. The #100Floors 75Days project seeks to build relationships between the local collision industry and their collision repair schools by providing the materials necessary to refinish the school’s floors during the summer break. “Collision repair training programs compete with other skilled trades for the next generation of employees,” said Brandon Eckenrode, director of development for the CREF. “Improving the appearance of high school and college collision schools reflects the professionalism of the collision industry and improves the quality of students seeking pre-employment training. Industry members interested in joining the CREF’s supporters, and assisting high school and post-secondary collision school programs and students should contact Eckenrode at (312) 231-0258 or Brandon .Eckenrode@ed-foundation.org.
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Tips for Busy Body Shops with Stacey Phillips
Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.
Volkswagen-Audi Collision Program Manager Advises Industry on Reliable Repair Collision repairers often ask Scott Wideman, collision program manager at Volkswagen-Audi Group, how to ensure a safe and reliable repair. His response remains the same every time: always research and follow OEM repair procedures. Wideman recently shared his expertise during a Guild 21 podcast hosted by VeriFacts Automotive. Although based in Canada, Wideman said structurally, Volkswagen and Audi vehicles in both countries are fairly identical. During the Guild 21 podcast, he shared information on both brand’s body construction, repair procedures and the impact of new technology. He challenged attendees to think about how these might affect their businesses and day-to-day operations. With more than 25 years of experience in the automotive industry, Wideman is responsible for the col-
lision program development and rollout for Volkswagen and Audi vehicles. In his role, Wideman is focused on working with all stakeholders to improve the collision repair process. He said consumer safety is the top priority. “Our main concern is to achieve a safe, reliable and repeatable repair in the industry,” he said.
Body Construction Wideman discussed Volkswagen’s current Golf A7 platform, which was introduced in 2012 using a manufacturing process called MQB. This allows the car manufacturer to produce automobiles with different platforms on the same assembly line. When examining vehicle structure, Wideman said many car manufacturers are now using mixed materials during the building process. As a result, there are certain repair guidelines that need to
be followed, to ensure the car is repaired correctly. One of his concerns as a manufacturer is if a vehicle will be able to withstand a second collision, if it has been previously hit and repaired.
“This is where we see too many compromises,” he said. Using an example of new Jetta, Wideman said there are very specific considerations in regard to the repair, such as heat in any welding operation conducted. “Therefore, it’s a requirement to follow the repair literature to make sure you have the right equipment,
the right welding technology and that you are following the proper procedure,” he said. He also talked about the new Audi Q7 that includes seven different substrates in its platform. “There are going to be definite requirements from the manufacturer on how this car is repaired,” he said. Audi ensures these requirements are being followed and technicians are trained, tooled and have the proper equipment through the car manufacturer’s certified network. Ninety-five percent of attendees who were part of the Guild 21 podcast responded to a survey where they concluded that vehicles are unique and require individual repair plans. Repair Procedures When asked about Volkswagen’s position statement in regard to scanning vehicles, Wideman said the car man-
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ufacturer includes this information in the repair literature. “Our major concern as a manufacturer is that not enough repair facilities are researching and accessing the repair literature on a consistent basis,” he said. “A pre-scan is obviously good for repair planning. It makes sense and will lead to a better estimate being written more accurately, and therefore cut out the possibilities of surprises at the end of a repair, which can lead to increased cycle time and vehicle rental time.” While pre-scanning is a logical approach to good repair planning, post-repair scanning is essentially a requirement, according to Wideman, and is found in the repair literature. As he travels to facilities throughout Canada, he often encounters repairers putting on exterior panels that have been plug welded, which does not follow the Volkswagen procedures. With the increasing level of high-strength steel being used on vehicles today, Wideman has serious concerns that the welds could compromise the integrity of the vehicle due to heat. As a result, he said a fundamental step that technicians
need to consider is managing that heat. Wideman pointed to the current generation of Audi A8 to demonstrate the specific methodologies on how a car needs to be addressed. Launched a few months ago, the vehicle uses seven different substrates and includes a carbon fiber rear assembly section that covers the rear seats.
He then offered an example where looks can be deceiving. What initially looked like a rear bumper and taillight casement repair with an Audi R8, ultimately needed a complete rear cradle assembly, because the car took a significant hit. “These vehicles are engineered and designed to withstand incredible forces,” said Wideman. “If this had gone to a facility that wasn’t trained and certified, perhaps that would
have been overlooked.” In this case, if the car happened to be in a second collision, Wideman said the results could be catastrophic and this is something that all stakeholders want to avoid. “There are concerns we have as manufacturers that the cars aren’t ending up at the proper facility,” said Wideman. “That is where we need to work together with all stakeholders to make sure that those vehicles are addressed properly.” New Technology Wideman also discussed the impact of new technology on repairers and the industry in general, especially related to Advanced Driver-Assistance Systems (ADAS). When looking at repair literature today, Wideman said it gives ample warnings about the importance of being aware of the technology included in the car. For example, if a vehicle with the lane assist feature was in a collision and the rear bumper had been removed and then reinstalled, calibration is required. “This is becoming more of a critical step in the repair process for
our vehicles, as well as for multiple manufacturers,” said Wideman. “The way you have been repairing a car a month ago could have changed.” As a result, he stressed the importance of reviewing the repair literature for every repair each and every time. In another example, Wideman said he is often asked why Volkswagen requires a four-wheel alignment as part of the calibration process. The front camera comes as an optional device in these vehicles and Wideman said the thrust angle of the car is absolutely critical to start the calibration process. “If that is not correct, we would have a system that wouldn’t be functioning properly,” he said. “Just one degree of misalignment of that front camera means that at a distance of 130 m, it will be reading the car in front a complete lane to the left.” He encouraged attendees to think about the implications in these types of situations when a consumer is relying on the technology that is supposed to be operational, yet it has not been looked at post-repair. See Reliable Repair, Page 52
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In Reverse with Gary Ledoux
Gary Ledoux is an industry veteran with 48 years’ experience in the automotive and OEM collision parts industry. His column appears exclusively in Autobody News. He can be reached at YesterWreck@yahoo.com
An Industry in Constant Flux - A 1970s Perspective The collision industry went through many changes during the 1970s. Industry associations were stronger and industry communications were better than ever. Below are a few predictions made from the past about the future, some ponderings from leaders of their time and a taste of what changed and what remained the same.
Prognostications From Connecticut In March 1970, an unnamed person from the Connecticut Department of Transportation addressed a group of collision industry executives as well as shop owners and predicted the following about the future:
• By 1975, 25 percent of our workforce will be replaced by automation. • By 1980, the typical work week will be 35 hours. • By 1980, everyone will have access to instant communication. • By 1980, most of the population will be working from home rather than from an office. • By 2000, only ten percent of the population of the U.S. will work or need to work. • By 2020, Connecticut will be in what was then known as the North Atlantic Megalopolis—a 150-milewide stretch of real estate from Boston to Richmond, VA. • By 2020, there will be automated roads where one can get into a car and sleep, play cards, or watch television, while the car whisks its occupants to their destination. The Natal Beginnings of Vehicle Autonomy In 1972, the RCA Corporation worked on crash avoidance technology. An experimental system displayed by the company uses a radar unit that sends a continuous signal to the rear of the vehicle ahead. As the distance between the two cars closes, flashers and
audible signals in the following car are triggered. The system could also be tied to the throttle and braking system. RCA estimates that this system will add anywhere from $50 to $100 per vehicle on mass-produced models and should be ready for all cars in ten years. “We can no longer stand still,” said Paul Goldberg, Auto Body Association of America (ABAA) president. “We can no longer, in these times of rapid change, stand content with methods of shop operations designed for the 1930s. We can no longer keep our heads stuck in the sand. The 2020s are quickly moving toward us.”
More Industry Changes An article in a June 1971 trade magazine said the industry has seen more changes in the last five years than it has seen in the previous 20 years. This is because “the industry is populated by so many young, energetic body-men and shop owners and few high-powered leaders.” The advent of these recent changes indicate that the collision industry is still in its infancy, but “adolescence is fast approaching and before you know it, we will have a mature industry.” A mature industry, the article notes, will be exemplified by shops that are free to repair a car properly. Finding New Technicians Today, in 2019, the fight goes on to find new collision techs. During the 1970s, and even prior to that, was no different—the collision repair industry was under fire from politicians about the alleged “high price of auto repair.” Rising Repair Costs Costs were increasing rapidly. In 1960, the average new home cost $12,700 and the average price of a new car was $2,600. However, in
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1970, the average home was $23,450 and the average new car cost $3,450. The American Mutual Insurance Alliance, an industry trade group representing over 100 insurance companies nationwide reports in 1971 that the average auto repair claim in 1960 was $131. In January 1971, it jumped to $276.
Maximizing Productivity Dr. William Baumol, a professor of economics at Princeton University said in a speech at the annual American Insurance Association meeting in 1970 that there is no way to save money in insurance claims through body shop productivity increases. The industry accrues costs that are out of its hands, he added. Number Please Before the advent of the internet, a 1970 Yellow Pages National Usage
study revealed that one in every five adults looks for a body shop in the Yellow Pages annually. From 1997 to 2000, internet business saw meteoric growth, yet the collision industry lagged behind. Early in 2000, Amica Mutual Insurance was one of the first to provide online claims handling. Beware of Javelins In 1970, shops are warned about working on the new model AMC Javelin which will feature “heavygauge steel members” welded inside each door. More Fiberglass In 1970 and before the advent of high-strength steel, Owens-Corning reports the use of fiberglass. The company said fiberglass reinforced plastics will reach an all-time high in 1971 model, US built cars due to it being lighter weight than steel.
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Continued from Cover
SCRS Event Discussion
were “reflective of what we anticipated,” namely that “regulatory bodies don’t have a solid understanding of the repair process and therefore don’t understand” how OEM procedures impact claims settlement. “This really was a mechanism to expose what I think is a gaping hole in the statutes in most states to hold [insurers] accountable for the things we [as repairers] need to do,” Schulenburg said. Responses Often Address Other Issues In one state’s response, Alex Avalos, senior insurance compliance officer for California’s Department of Insurance, said that state’s “insurance laws and regulations are silent on vehicle manufacturer documented procedures.” Would the Department consider it a “reasonable expectation that if an OEM repair procedure or instruction existed, that the claim should cover the associated costs,” the SCRS asked in its letter. “That one would need to be
looked at on a case-by-case basis,” Avalos responded. “Our regulations mandate that insurance estimates allow for repairs to be made in a workman-like manner.”
Dan Caldwell of Nissan said local chambers of commerce can help small businesses have a voice with government on workforce development.
Many of the responses received from insurance regulators focused largely on state statutes related to OEM parts or noted only that the regulatory agencies couldn’t comment on some of what they saw as hypotheticals posed in the SCRS’ letter. But some more directly addressed the SCRS’ primary question. For example, Ian Shapiro, insurance analyst with the Illinois Department of Insurance, wrote that his agency “would consider it a ‘reason-
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AUGUST 2019 AUTOBODY NEWS / autobodynews.com
able’ expectation that if an OEM repair procedure or instruction existed, the claim should cover the associated costs.” However, Shapiro also added that “there is nothing currently written in the statutes that requires an insurance carrier to cover those costs.” Donald Beatty, deputy commissioner for Virginia’s Bureau of Insurance, wrote in his response that standard policy forms insurers must use in his state would not allow an insurer to say costs associated with automaker procedures are not covered, but those forms also “do not require insurers to accept manufacturers’ procedures for repair.” In perhaps even more troubling news for shops and their customers, Suzanne Tipton, insurance deputy commissioner of the Arkansas Insurance Department, wrote that if an insurer directs a shop not to follow OEM repair procedures, that “may be considered to be reasonable” as long as the vehicle “is shown to have been ‘restored to its condition prior to the loss.’” One of the more promising responses the SCRS has received came
from Andy Case, director of the Mississippi Insurance Department’s Consumer Services Division. Case wrote that there is nothing in that state’s laws that mandates that OEM repair procedures be followed, and that the most an insurer is expected to pay under state regulation is the
Kenyatta Lovett said working with local governments on workforce issues can pay off when those officials go on to statewide positions
“lowest amount that such vehicle or glass could be properly and fairly repaired or replaced by a contractor or repair shop within a reasonable geographic or trade area of the insured.” Case went on to say that “if a vehicle manufacturer outlines a specific recommended repair procedure … the Mississippi Department does ask
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that insurers recognize that procedure as it relates to repair methods only.” Schulenburg said overall, however, the responses demonstrate the need for state legislation recognizing OEM repair procedures as “what we have to do as repairers and what insurers are obligated to under their policies.” Copies of the SCRS letter and responses received to date can be viewed at scrs.com/doi-responses/. Speakers Share Idea to Grow Workforce Also during the SCRS meetings held earlier this year in Nashville, TN, a number of speakers focused on public and corporate efforts to improve workforce development in that state. Given the challenge shop owners nationwide face in finding the employees they need, Schulenburg asked the panel to share what they believe small business owners can do to address the situation in their market. Ann Thompson of the Tennessee Department of Economic & Community Development said her father is a small business owner who has implemented something that she
suggests shops do. “How many of you have some sort of internship program, or an opportunity to let either a teacher or some high school students come into your business,” Thompson asked at-
Andy Tylka, owner of Tom & Ed’s Autobody, said the Jobs for America’s Graduates (JAG) program can cover the cost of a student working 200-300 hours in a business
tendees at the event. “That is the best thing you can do. Look around at the different occupations and the different processes that you have, and find some things that are lowskilled where you can get those students in early.” Jon Mandrell, president of the Tennessee College of Applied Technology in Murfreesboro, TN, said that as with many technical and community colleges, his school’s programs
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are guided by industry advisory councils. Getting involved with such councils at a local level are a great way for shops to influence curriculum or have an opportunity to speak to students, Mandrell said. He said shops and industry vendors can also help local schools get the current tools and equipment to help students prepare to enter the industry successfully. “Most institutions work closely with alum and donors and talk about funds and scholarships, whereas technical colleges look at how to get that cutting-edge equipment to help us embed things as fast as possible, ahead of the curve,” he said. Dan Caldwell of Nissan acknowledged that as a large employer in Tennessee, his company had some sway in gaining government support for workforce development efforts that are helping create employees with the skills Nissan needs. Even smaller employers have opportunities to create a large “voice” through a vibrant chamber of commerce that acts as an intermediary to communicate to schools and local government the industry’s needs, he said. Kenyatta Lovett, of the non-
profit education advocacy group “Complete Tennessee,” encouraged shops to get involved in government and workforce development even on a local level because statewide programs in Tennessee grew out of local efforts by a mayor who went on to be governor. “Once you articulate this challenge and what role locally-elected officials can play, you’d be surprised how they can become a champion who can move it a long way,” Lovett said. “You never know who is going to become governor next.” An event attendee, Andy Tylka of Tom & Ed’s Autobody, which operates five shops in Indiana, said he recommends shops get involved with Jobs for America’s Graduates (JAG), a national non-profit organization (with programs in 34 states) working to help young people who have serious barriers to high school graduation or employment. “It’s an elective program in high schools where students can learn soft skills and then get placed in a job, with the government funding 200300 hours for them to work for you,” Tylka said.
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National News with Chasidy Rae Sisk
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.
Mike Anderson and Impacted Shop Owner Warn Industry of Computer Ransom Scheme Over the past few months, Collision Advice’s Mike Anderson has been contacted by over a dozen shops regarding a computer ransom scheme where body shops’ computers and IT systems are hijacked and held for ransom. Unable to access their programs and documents, victims are then contacted by the hackers with instructions on how to pay the ransom, usually in bitcoin. Ryan Cropper, owner of Able Body Shops in Anchorage, AK, stopped in his shop on the Saturday before going on vacation in November 2018. He recalls, “All of the icons looked like Christmas presents and clicking on them opened a message with an email address to contact to unlock them. I contacted IT, and they confirmed my computer was hacked and I’d have to pay a ransom to release it.” Fortunately, the hacker couldn’t access password-protected files. How-
ever, unable to find an alternate solution, Cropper paid $4,000 in bitcoin after IT verified the hacker’s record of releasing victims’ computers once the ransom was paid. Cropper was locked out of his computer system for four days. He shares, “It was a nightmare; I was losing my mind.” “The amount they demand depends on what they find,” Cropper continued. “The hacker was unwilling to negotiate whatsoever. Our hacker came from Russia; we verified that through the IP address.” After his documents were released, Cropper’s next step was figuring out how he got hacked. He learned that there was an open port on his computer that allowed him to access it from his laptop while traveling. “The hacker found the open port and did damage to benefit himself,” Cropper explained. “It didn’t ruin us, but it could have. Our firewalls didn’t stop
it. Now, I have a two-part authentication for remotely accessing my system and that’s key to ensuring we aren’t hacked again.” According to Anderson, “This has happened to a lot of folks. People have open ports and then receive a spam email; once they open it, hackers have access to your computer and lock it down until the ransom is paid. One shop owner heard me speak about this topic and protected himself so he could avoid paying the ransom when he was attacked, but several shops have been forced to pay. These hackers are good at what they do.” So how can shops protect themselves? Anderson advised, “First thing they can do is contact their IT department to make sure their system is secure. Then, make sure they have good insurance so the ransom is covered. Once it happens, it can be solved, but there’s definitely a cost to resolve it.”
Another impacted shop owner who prefers to remain anonymous offered this advice following his experience: “Hire an outside IT company to audit your IT network; you want them to try to penetrate your system to find the faults and loopholes. Don’t tell anyone, particularly your current IT support company, about this audit because you want it to be random. Upon the audit discovery, you’ll find out if you’re getting what you’re paying for monthly from your IT support company, and you’ll learn how quickly and closely they operate and monitor your business. They should see things happening quickly and spring into action by notifying if they are good.” He continued, “You also want to make sure your IT support company is backing up your business onto the cloud on their own along with local offsite backups. Backups should be See Ransom Scheme, Page 38
New Louisiana Law Aims to Protect Policyholder Choice of Repair Shop by Staff, Insurance Journal
A new law in Louisiana aims to ensure that auto insurance policyholders have the option to choose a particular motor vehicle repair shop. Under Act 317 (House Bill 411), which has been signed by Gov. Jon Bel Edwards, insurers are prohibited from recommending specific auto repair shops unless their insureds are clearly informed that they are not required to use the recommended shop. According to the Coalition Against Insurance Fraud, insurers are allowed to inform consumers about reputable repair facilities and warn against body shops suspected of committing fraud. However, the bill states: “An in-
surer shall not engage in any act or practice of intimidation, coercion, or threat to use a specified place of business for repair and replacement services.” The act provides for fines for violations of the law: • $1,000 for a first offense • $2,500 for a second offense within a 12-month period, $2,500 • $5,000 for third or subsequent offense within a 12-month period
The act also gives the state’s insurance commissioner the power to suspend or revoke insurance licenses of violators. We thank the Insurance Journal for reprint permission.
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From the Desk of Mike Anderson with Mike Anderson
Mike Anderson is the president and owner of Collision Advice, a consulting company for the auto body/collision repair industry. For nearly 25 years, he was the owner of Wagonwork Collision Center, an OEM-certified, full-service auto body repair facility in Alexandria, VA.
Building Trust Through Online Reviews, OEM Certifications I was recently over at my best friend Greg Thompson’s house and his son, Jarrett Thompson, stopped by. Greg had agreed to babysit his grandson so that Jarrett and his wife could have an evening out. Greg asked Jarrett what their plans were and Jarrett said they were thinking about going out to dinner at an Italian restaurant I’ll call “Ernesto’s.” “Oh, you are going to love Ernesto’s,” Greg told Jarrett. “They have the best pizza.” I was there when Jarrett stopped by later that night to pick up his son and Greg asked Jarrett how they liked Ernesto’s. “Dad, we didn’t go there because it didn’t have good reviews online,” Jarrett told him. Ladies and gentlemen, that is all the evidence you need that many people—young people in particular— rely more on online reviews than the word of their own father (or another family member or friend). I mention this because I’ve been thinking a lot about how shops can build trust among customers and po-
tential customers. Greg and Jarrett’s interaction is a great example of how online reviews are a great way to start developing that trust. Customers are no longer just choosing the closest shop from the list they were handed by their insurance company. They go online to verify that whatever shop was recommended to them is, in fact, a good choice; therefore, it’s important that you have great online reviews. The whole issue of building trust came up at a recent conference where I was a speaker. Another one of the speakers, Ray Chew of CCC Information Services, went around the room asking shops how they think people feel when they have to find a shop after an accident. Some said anxious, upset, mad, sad, etc. However, everyone agreed that consumers face negative emotions when looking for a body shop. So, our first goal should be to alleviate those negative feelings by building their trust. Having positive online reviews about your shop can help ease customers.
Continued from Page 36
was refunded $3,500, the full ransom amount after paying his $500 deductible, but ransomware is not covered in every policy, so it’s important to check with your insurance company. According to David Willett, general manager of the Automotive Industry at Intrepid Direct Insurance, “This is happening to other industries, but it’s becoming more frequent in our industry. The number of automotive repairers with cyber risk coverage in their garage insurance package is growing but still represents a small percentage. The normal ransomware provision pays for rebuilding the system and database, which can take 30 days or more. It doesn’t reimburse or pay the actual ransom request (usually bitcoin), which offers an immediate fix.” Stay tuned to Autobody News next month for an in-depth look at cybersecurity and how to mitigate these risks with Willett.
Ransom Scheme
done daily, if not more frequently. Everyone should also be performing onsite external backups to the server and a computer. It’s important to have multiple external hard drives that get switched out daily.” “Make sure you have insurance coverage for cyber-attacks, loss of customers’ information and ransom attacks. This is not something that is blanketed on your insurance policy. You need to discuss coverage for all these items separately,” he urged, adding, “Do NOT rely on technology only. Run your business with good processes and procedures that will allow you to operate in the event of a technology attack and/or the loss of computers and the internet.” Cropper was able to turn the ransom into his insurance company and 38
AUGUST 2019 AUTOBODY NEWS / autobodynews.com
training” to earn automaker certifications is a good way to build trust and reduce their anxiety. I don’t think enough certified shops are talking about that certification with potential customers and then these shops gripe about spending money on OEM certifications, without seeing any work from it. However, at recent automaker conferences, I brought people up on stage and we called their shops. I would say, “I just wrecked my [brand of car] and wondered if you work with ABC Insurance.” The shops would assure me they are a direct repair shop for ABC Insurance and ask me if I had a claim number, but never mention they are certified by the maker of my car and what that means to me. We need to start making our advanced training and automaker certification part of the conversation up front to build customer trust.
Oftentimes, after the customer comes to the shop, a discussion about insurance company involvement is brought up. We need to stop and make them feel better first—recognize their pain and sympathize with their experience. Then, start to build trust by focusing on why they made the right call by choosing your shop. You might ease your customer by saying, “Okay, I know you’re concerned about whether your Nissan will ever be the same. I want you to know that there are 40,000 body shops in the United States, but fewer than 2,000 have met the training and equipment requirements to be Nissan certified. We’re a shop that has been Nissan certified. In fact, we’ve had advanced training.” That term “advanced training” is important, Ryan Taylor of Bodyshop Booster said. Having the “advanced
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Solving the Tech Shortage: I-CAR is Helping Future Technicians Turn Their Passion into Lifelong Careers by Stacey Phillips
When Nick Notte speaks to students across the country who are considering a job in the collision repair industry, he often shares his personal experience. The current senior vice president of sales for I-CAR (InterIndustry Conference on Auto Collision Repair) always had an interest in cars. He was able to turn that passion into a lifelong career and is now around vehicles every day. “The feedback you get from these kids is tremendous,” said Notte. “You can truly change their minds and convince them that collision repair is a good way to go.” Formed in 1979, I-CAR is dedicated to providing the information, knowledge and skills required to perform complete, safe and quality repairs. The not-for-profit organization provides a variety of educational and training recognition programs for the collision repair industry. “I-CAR will soon offer 267 different courses to keep the industry on pace with technology innovation and skills development,” said Notte. With a strong network of more than 1,600 volunteers, I-CAR has formed 189 committees that share information about the value of training in the industry. These volunteers are active in a local committee, all of which support and promote I-CAR’s mission.”Knowing that the committees are as passionate as they are and knowing there is a technician shortage, we set some career goals for our committees,” said Notte. Several of these goals are aligned with the work currently being done by the Collision Repair Education Foundation (CREF) to help encourage young people to pursue careers in the collision repair industry. I-CAR has a long history with CREF dating back to 1991 and works closely with the organization on many of its initiatives. Read about these initiatives in the previous Solving the Tech Shortage column. One of the ways they work together is through the career fairs CREF organizes in major markets across the U.S. As the demand for career fairs continues to grow, CREF is 40
asking I-CAR to organize local industry gatherings. This coincides with one of I-CAR’s committee goals—to complete a public-facing event, such as a career night at a local middle school or high school, a parade or NABC Recycled Rides gifting. The intent is to highlight the value of collision repair and promote I-CAR to the general public.
Students that go through I-CAR training have the opportunity to see first-hand some of the new technology in vehicles today. Credit: I-CAR
When you have knowledgeable and engaged collision repair representatives sharing information about the industry, Notte said it tends to make a difference. Volunteers are encouraged to plan functions where they can potentially have the youngest kids and their parents in attendance. “We believe that to get to these collision repairers of the future, you have to get to their parents, and you have to get to the students at a very young age,” said Notte. “Those parents and administrators who may not have listened to the message are all of a sudden listening to somebody who lives in their town, talking about his or her experience in the industry, and come to realize how acceptable it might be to have their kids work in the collision repair industry. I-CAR’s industry partners are encouraged to attend the career nights in their local areas. “We have OEMs that we work with through ICAR’s sustaining partner program that are as passionate about helping with that technician crisis as we are,” said Notte. I-CAR is approaching OEMs to possibly bring some “cool” vehicles to the career nights. Notte said the hope is that attendees will see the technology available, how the vehicles are constructed and begin to
AUGUST 2019 AUTOBODY NEWS / autobodynews.com
dream about how to repair them in a collision situation. Another I-CAR committee goal is to have at least one member actively participate on a school advisory board at a high school or preferably middle school. “That’s where you can affect the minds of those youngsters and the parents when you talk about collision repair, especially these days when cars are really cool,” said Notte. Since many in this age group play video games and are keen on technology, he said they soon realize that with the technology in vehicles today, they can make a living doing what they enjoy. Volunteers have found the school advisory boards to be extremely welcoming. Over the past few years, more parents and kids are looking at technical opportunities and increasingly requesting additional information about the collision repair field. Notte said this may be partially due to many kids now leaving college
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I-CAR instructors help educate tomorrow’s collision repair technicians with hands-on experience. Credit: I-CAR
I-CAR committee volunteers are also asked to identify one CTE (Career and Technical Education) school in their market that doesn’t already utilize I-CAR’s Professional Development Program (PDP)-Education Edition. Currently, 673 out of the approximately 1,000 career and technical schools in the U.S. are part of the I-CAR program, which was estabSee Tech Shortage, Page 46
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41
Media and Publicity for Shops
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
with Ed Attanasio
Marketing Guru Schools Shops on All Things Google Nick Schoolcraft, president of Phoenix Solutions Group (PSG), works with hundreds of body shops to set them up for success when it comes to both their digital and customer marketing. Recently, he took the time to share his insights about things such as Google’s mobile first indexing update, the importance of understanding how digital impacts the collision customer, as well as a trend he’s been following called “digital dieting.”
What does it mean when Google releases updates and changes to its algorithm?
Q:
Each update serves a purpose. For example, Google released an update called Panda in 2011 to reward websites with higher-quality content. Its goal was to remove search results that lead searchers to sites with
A:
poor quality or little content. Also, it focused on filtering sites that were “keyword stuffing.” This update was significant in that it changed how Google ranks pages. It was a clear sign from Google that incorporating practices that didn’t benefit the user, like creating pages with little content to drive better search ranking, would no longer be tolerated. That said, not all updates are bad. For example, Hummingbird, which was announced by Google in 2013, was seen as a complete overhaul of their search algorithm. This update was massive because it started to incorporate natural language processing, which helped Google to match the searcher’s intent with relevant content better, which is why we always suggest writing your website content in simple language instead of focusing on industry-related terms.
Hummingbird had minimal impact on search results; however, it was a massive update in how search results are displayed, which signaled Google’s focus on ensuring they deliver the most relevant search results that match the user’s intent.
Q: A:
Starting July 1, Google will start indexing the mobile version of your site as the default index method. In the past, they used the desktop version to help with ranking your website. This change is meant to help mobile users find what they’re looking for more quickly. Google sees that people are using their mobile devices more often in search, so they’re making a strong effort to address that.
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More importantly, what a shop owner should recognize is that their digital presence is a reflection of the type of experience a customer will receive when visiting the actual shop. Shops should look at these updates as Google’s way of adapting to their user’s needs. If a shop doesn’t understand, they should consult a digital industry expert like Phoenix Solutions Group to better understand the implications these changes have on their digital presence. These updates happen frequently. To ensure a shop is set up for ongoing success, they should make sure their site aligns with their user’s needs and with Google’s published requirements.
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keep on top of all these changes. As digital becomes more of a tactical element of the collision buying journey, shops need to make sure they are delivering at least an “at par” experience. Unfortunately, we find that most shops believe that because their site is responsive or “mobile friendly” they are already prepared. There is a lot more that goes into making sure you perform well with this update. Our evaluation looks at a variety of technical and structural factors to ensure that they are not only mobile-index ready but also they are optimized for the future of search— voice.
Google has said that over half of the pages shown in search results are mobile-first indexed. Is this the new standard and why is July 1 significant?
Q:
Yes, Google started talking about mobile indexing in 2016 and as you’d expect, an update of this size takes time and planning. The most important fact is that starting on July 1, mobile first will be the default index method.
A:
Does this update have anything to do with the trend you are following called “digital dieting”?
What does research tell us about collision repair customers and their online vs. mobile search habits?
A:
A:
Q:
Not really—”digital dieting” focuses on the overabundance of digital marketing noise in our lives and how people are becoming more intolerant of unnecessary digital interruptions. “Digital dieting” refers to the increase in “unsubscribe” rates and the consumer’s search for more personalized interactions with brands. It’s vital to realize fads will come and go and while technology will continue to play a disruptive role in our future, shops should remain focused on the one element that hasn’t changed since the beginning of time—the value of delivering differentiated customer experiences. This is what PSG has done for nearly 30 years through products like hand signed, personalized post-repair follow-up letters that help shops stand out from their competitors, remain top of mind with their customers and build brand loyalty.
Q:
This is a hard question to answer, mostly because all body shops aren’t created equal. However, one commonality that we see across all of the 160+ sites that we manage is how people end up at a collision website from search. Using Google Search Console, we find that in most cases, 90-95 percent of shop site traffic is coming through branded keywords terms (i.e., some variation of the shops’ name). This data is significant for a lot of reasons. One, because it affects every type of shop—from the ones who spend a lot of money on SEO to the ones that spend very little. Secondly, these types of searches are indicative of customers who are in the late stages of their purchase decision and already have an awareness of the shop before entering search. This knowledge allows us to help our customers focus on the things that matter most to collision customers, while others focus on the things that produce a marginal impact. Google
Analytics and Google Search Console should be a shop’s first digital reference point, as they will most likely expose a more tactical interaction than the assumed consumptionbased interaction of more traditional websites, which should help a shop owner better understand the real ROI of their marketing spend.
What are some additional items a shop can do to capitalize on this new algorithm?
Q:
Our suggestions to our customers have always been to make sure your site is keeping up with the shift in expectations, which should start with focusing on what your analytics are telling you. The bottom line is, shops should work with companies that not only understand this industry but apply these latest updates and trends to ensure maximum impact on their business.
A:
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Volvo Trucks’ Cabin-Less Self-Driving Hauler Takes on Its First Job by Nick Lavars, New Atlas
What would trucks look like if they didn’t need to accommodate a human driver? Volvo Trucks’ Vera vehicle is an exploration of this idea, doing away with the cabin entirely so it can more efficiently tow goods around ports and factories. The freewheeling four-wheeler has just been assigned its first task, and will soon go to work delivering containers to a port terminal in Sweden.
What would truck cabins look like if they didn’t need to accommodate a human driver? Credit: Volvo Trucks
Revealed in September last year, the autonomous Vera is powered by the same drivetrain and battery packs found in Volvo’s electric trucks. It is, however, more electric sled than electric big rig, consisting of four-
wheels and a low-profile body that can be latched onto by standard load carriers and trailers.
Communicating with one another via a control center over the cloud, this could optimize traffic flow, keep operations running smoothly and minimize waiting times. And Volvo Trucks is now set to see how well this works in practice, with Vera receiving its first assignment towing containers from a logistics center in Gothenburg, Sweden,
low noise levels and zero exhaust emissions have an important role to play in the future of logistics, and will benefit both business and society,” says Mikael Karlsson, vice president of Autonomous Solutions
Volvo Trucks’ Vera vehicle has received its first assignment. Credit: Volvo Trucks
Revealed in September last year, Vera is powered by the same drivetrain and battery packs in Volvo’s electric trucks. Credit: Volvo Trucks
Volvo Trucks’ Vera is set to go to work moving containers around a logistics center in Sweden. Credit: Volvo Trucks
The thinking is that one day fleets of connected Veras can scurry around ports, factories and other facilities with large loads on the back.
to a nearby port terminal for distribution around the world. The pilot is a collaboration with logistics company DFDS and will involve short trips with speeds limited to 40 km/h (25 mph). “Autonomous transports with
The thinking is that one day fleets of connected Veras can scurry around ports, factories and other facilities with large loads on the back. Credit: Volvo Trucks
at Volvo Trucks. “We see this collaboration as an important start and want to drive progress in this area. Vera may have a speed limit, but we don’t. Testing has already started and we intend to implement the solution within the coming years.” We thank New Atlas for reprint permission.
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Continued from Page 40
Tech Shortage
lished in 2010 and formed to train collision repair professionals in essential role-relevant knowledge and skills. The objective is to promote the PDP curriculum within the school, as well as initiate conversations about the technician shortage and the value of training technicians the “right” way. “Our belief is that the right way is through the professional development program with specific roles identified and training delivered by that role,” explained Notte. Ultimately, I-CAR would like to incorporate the PDP program into every career and technical school so technicians can be prepared to work when they graduate. Committee volunteers also raise funds for CREF and secure donations of tools and equipment for career and technical schools. This year, each committee has been asked to complete one special event to support local schools, which can be held in coordination with any industry-related supplier or CREF.
Notte said these in-kind donations, such as welders, safety goggles and tools, make a significant difference because students are able to learn using the most recent equipment. Often, collision repair instructors find that many students get discouraged when they are learning how to repair vehicles the way they were fixed 20 years ago.
on that high-tech car,” said Notte. His advice to body shops looking to hire future workers is to find those who love cars, and perhaps have a technical interest and then employ them as porters or apprentices for the summer. Through his experience, he has found that the kids in these roles are often hired upon graduation from high school or college.
“Most of those cars just aren’t on the road anymore,” said Notte. “When it comes time to fix the hightech cars of today, they don’t see those come into the school.” To help address this, some OEMs have donated brand new automobiles to these schools, so the students can see the technology first-hand and learn how to repair the vehicles. “When you are talking about a young kid who is going to work on either the latest car coming down the pike or a 20-25-year-old vehicle, they get a lot more excited about working
He also said to pay close attention to see whether or not they have a desire to do this type of work. If the desire is there, Notte said training is readily available. For example, with the recent changes made to I-CAR’s PDP program, there is a subscription option for shops based on the number of technicians working at their facility. Students are allowed to take live, online and virtual classes for free and receive the same training as professional technicians. Not only does this offer them the opportunity to graduate with the Platinum desig-
“You can truly change their minds and convince them that collision repair is a good way to go.” — Nick Notte
nation, but it also helps gauge their interest in this field. “If you have somebody who has an interest in the work and you think they might make a good technician, you can give them all of that I-CAR training for no extra charge,” said Notte. “At some point, if they are really good, you can bring them on and hire them.” To ensure collision repair facilities have a clear understanding of the knowledge and skill areas needed to perform complete, safe and quality repairs, I-CAR has created an Automotive Collision Repair Industry Knowledge and Skills Protocol. The document outlines every knowledge area and skill necessary in a shop for technicians to be successful at their job. Shops can then identify the training skills needed by everyone in their business and then pinpoint the training to fulfill these requirements. The document can be accessed by visiting https://www.i-cartraintogain .com/protocol. For more information about I-CAR and its training and initiatives, visit https://www.i-car.com/.
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47
Jason Bartanen Moves From I-CAR to Collision Hub by Gary Ledoux
Furthermore, I’m proud of advancing what I-CAR did with the OE’s and the vehicle-specific training we developed for them. I had a great relationship with all the I-CAR instructors and volunteers—all great people.
After almost 23 years, news hit that Jason Bartanen, I-CAR’s director of industry technical relations, was leaving the organization. On June 17, the industry was stunned when they found out that Bartanen would be You invested time and effort joining the team at Collision Hub— into I-CAR. What was the deone of the most prolific training organciding factor in making the move? izations headed by Kristen Felder. Passion for the collision indusCollision Hub will allow me to try runs in Bartanen’s family. refocus on the technician and “My grandfather opened a body shop in Ishpeming, WI, in 1939, help them excel, and perform correct taught my father collision repair and repairs. This is predicated on two fache passed it along to me,” Bartanen tors. One, Kristen Felder knows what said. “My father was my high school technicians want and need. She is alautomotive teacher and we operated ways connecting with them in person or on social media. She has a smaller Bartanen’s Auto a good feel for the shop’s Body in Oconto, WI. That’s production floor as well as really where I learned colliwhat goes on in the front ofsion repair. I also worked fice. Two, Collision Hub is part-time, while in college, big enough to have an effect at Commercial Auto Body in on the industry, but small Green Bay, WI, where I was enough to be nimble when it a painter’s helper.” Jason Bartanen In 1996, Bartanen went leaves I-CAR after comes to producing new to work for I-CAR as a tech- almost 23 years and products and services. Collinical writer developing train- joins Collision Hub sion Hub can bring product ing courses. This led to a promotion as to market very quickly. The industry is changing rapidly—we all have to technical development manager overseeing all curriculum development. run just to keep up. This, in turn, led to a stint as techniWhat unique opportunity does cal director where he maintained inCollision Hub present to you? dustry relations with shops, OE’s and other stakeholders. Bartanen has Collision Hub will give me been a mainstay in the industry, more opportunity and more speaking at many industry events, conducting training classes at indus- potential to grow. It will be a chance try events as well as local association for me to re-engage with the smaller meetings, and serving as a spokesper- shops that need the most help and son for I-CAR in industry magazine have the fewest resources. articles. What is your new title at ColAutobody News spoke with Barlision Hub and what does your tanen about his move to Collision Hub, and how this will affect him and the in- title entail? dustry. Here’s what he had to say: My new title is director of colWhat is your proudest accomlision industry relations. On a plishment at I-CAR? day-to-day basis, I will be working with industry stakeholders to develop I am proud of the Repairabil- new products and services delivered ity Technical Support Portal through Collision Hub. website. It was the first tool in the inDoes this mean you will be dustry to bridge the gap between competing with I-CAR in the OE’s and technicians. It’s a great way to share information. In addition, it same space? was the first product of its type—deNo—I see what we will be signed by technicians for technidoing as a compliment to what cians—so, the users can relate to it.
Q: A:
Q: A:
Q: A:
Larry Montanez of P&L Consultants and Mark Olson of Vehicle Collision Experts have each become an integral part of Collision Hub training. We see them all the time in the YouTube videos. How will your responsibilities affect them?
Q:
Kristen and Larry focus primarily on education for shop owners and the front office. I will focus on the actual repairs and the
A:
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AUGUST 2019 AUTOBODY NEWS / autobodynews.com
production floor. Mark is versed in many areas and brings his own special expertise to the table.
Do you foresee bringing in more people from the industry? How do you see expansion from here?
Q:
Kristen and I have a lot of ideas that I can’t discuss yet. We can expand, if necessary.
A:
What is your ultimate goal or end-game?
Q: A:
My end-game is simple: I want technicians to be successful and perform proper, safe and complete repairs. It was my goal at I-CAR and it will remain the same here at Collision Hub. It is what the industry wants and needs.
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I-CAR does. Our training is more focused on certain areas, while I-CAR has a broader approach. Let’s face it … there are only about 8,000 I-CAR Gold Class shops out there out of 35,000 total shops. Many shops are at various levels of training and some have no training at all, so there is plenty of training to go around.
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Ford Stresses Importance of Glass Repairs
Kelly Hall Joins Autobody News in Sales Management
by Tara Taffera, glassBYTEs.com
by Autobody News Staff
In the recent issue of Ford’s On Target newsletter, aimed at Ford and Lincoln wholesalers and the collision repair industry, the automaker details the importance of “proper fixed glass repairs.” Ford Motor Company’s Senior Damageability Engineer Gerry Bonanni was interviewed regarding the proper repair procedure for vehicle fixed glass, and the important role it plays. Bonanni went so far as to say that skipping of a step or not following procedures exactly could result in “catastrophic results.” “The fixed glass of the vehicle plays an important role in the overall strength of the roof and in ensuring a robust repair,” said Bonanni. “Especially the windshield, which provides strength and stability to the vehicle’s structure and affects how it performs in a collision event. Preserving that strength and stability is paramount, as is the proper preparation of the substrate to which the fixed glass adheres. If the fixed glass, such as the windshield, is not seated properly, and the substrate is not prepared correctly, the glass could pop right out
during a subsequent collision event, seriously jeopardizing the overall structural integrity and safety of the vehicle.” The article details specific installation instructions for everything from trimming the urethane, use of primer and more. If the vehicle is equipped with a camera, carry out IPMA camera alignment, referring to Section 419-07: Lane Keeping System, Description and Operation, the article states. “Today’s vehicles are specifically designed and constructed to work together in a complex sequence to provide proper functionality and safety in the event of a collision,” said Bonanni. “Ford’s OEM repair procedures—as found in the workshop manual—are the only way to ensure the vehicle’s proper functionality and safety are maintained, providing peace of mind for repairers and customers alike. Unauthorized changes to any one component, skipping a step, or not adhering to the carefully and fully laid out Ford OEM repair procedures can cause catastrophic results.” We thank glassBYTEs.com for reprint permission.
tently increased unit sales and sales revenue. Most recently, she spent Autobody News is excited to intro- time at Cars.com in San Diego as duce you to our newest Regional a digital media senior representative where she was responsible for Sales Manager, Kelly Hall. the growth of new acKelly comes with an count sales, while advisextensive sales background ing GM/owner principles in the automotive industry. on best practices. She has been responsible Kelly has the experifor sales development and ence and passion needed client servicing in the field to thrive at Autobody for 15+ years. In addition, News. She is very enthushe has expertise in B2B siastic to begin calling on sales and marketing. Autobody News’ regional and national acSpecifically, she has Regional Sales worked at Riverside Lexus Manager, Kelly Hall counts as a sales representative here. and Tustin Lexus as Fi“I’m ready to start working nance Manager. There she was responsible for selling value-add retail alongside the team and utilizing my options and facilitating the financing skills,” Kelly said. “I am all about growing and of sold vehicles. Then she worked at LoJack Corporation, a stolen vehicle Autobody News is the perfect place recovery system, where she consis- to do just that.”
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AAPEX 2019 to Recognize Exhibitors
AAPEX 2019 has lined up specialists from the exhibition industry to tour the show floor and select Best Booth Award winners using design, staffing and exhibition best practices as the criteria. AAPEX represents the more than $1 trillion global automotive aftermarket industry and will take place Tuesday, Nov. 5, through Thursday, Nov. 7, 2019, at the Sands Expo in Las Vegas. Judges include: Kimberly Hardcastle, CEM, president, mdg; Dana Freker Doody, vice president, Communications and Strategic Client Solutions, The Expo Group; Nancey Drapeau, PRC, senior research director, Center for Exhibition Industry Research (CEIR); and Carrie Ferenac, president, CNTV. All AAPEX 2019 exhibiting companies are automatically entered into the competition, without the need to sign up to participate. The Best Booth Award winners will be announced Wednesday, Nov. 6, at 3:30 p.m. on the Let’s Tech stage, Level 2 of the Sands Expo.
Truck Driving Could Soon Be a Desk Job by Joann Muller, AXIOS News
On the week on June 17, for likely the first time, a heavy-duty commercial truck drove for 9.4 miles on the Florida Turnpike with no one inside. The “driver” was 140 miles away, operating the rig remotely. The big picture: Automated freight delivery is expected to begin long before self-driving cars are here, and at least a half dozen truck companies are working on the technology, with tests in various stages of development. Starsky Robotics’ Florida demonstration was believed to be the first unmanned, high-speed test of a heavyduty commercial truck on a public highway. Why it matters: The U.S. is experiencing a severe shortage of truck drivers—as many as 175,000 by 2026, according to the American Trucking Associations. Companies like Starsky Robotics hope they can address the shortage by making the jobs less taxing. To make the job more appealing, self-driving truck start-up TuSimple even helped create an autonomous driving certificate pro-
gram at Tucson’s Pima Community College to teach truck drivers how to train, operate and monitor autonomous truck systems closer to home. Instead of aiming for an AV moonshot—an autonomous truck that makes all the driving decisions without any human intervention— Starsky says it’s taking a more practical approach that combines highway automation with teleoperation, allowing remote drivers to navigate trucks between distribution centers and the highway. Details: With no one inside, the Starsky truck navigated a rest area near Orlando, merged onto the highway from the left, kept a speed of 55 mph, changed lanes, and exited the highway on the right through a toll booth. The remote driver—sitting behind three computer screens in an office two hours away in Jacksonville—used a steering wheel, buttons and foot pedals to maneuver on and off the highway. After he set the speed to 55 mph, the automation took over, with the driver intervening only to order the lane change.
In all, the human driver operated the truck for just 0.2 miles, or 2% of its journey, says co-founder Stefan Seltz-Axmacher. “It got pretty boring,” he said. Yes, but: Teleoperation relies on ordinary cellular networks that occasionally lead to communication glitches that could potentially delay remote decision-making. For now, Starsky Robotics trucks are accompanied by chase vehicles in case something goes wrong and a human driver needs to jump into the cab to steer a stopped truck off the highway. The bottom line: Automated trucking is getting closer, but the instincts and knowledge of human drivers are still needed, even if the humans themselves aren’t in the vehicle. For more news like this, signup for Axios’ Autonomous Vehicles Newsletter by Muller. We thank Axios News for reprint permission.
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$5 Million in Digital Gift Card Incentives Accelerates Response to Takata Airbag Recall Bitmo, a mobile gifting and payment platform that is transforming the $160 billion gift card industry, has partnered with peer-to-peer safety platform Carma Project to deliver an innovative incentive-based program designed exclusively for accelerating consumer response to automotive recalls. Launched in December in collaboration with Toyota Motor North America, Carma Project aims at addressing the Takata airbag recall. Labeled “the largest and most complex safety recall in U.S. history” by the National Highway Traffic Safety Administration (NHTSA), the recall continues to impact vehicles built by 19 different automakers, with a projected 70 million airbags expected to be recalled by the end of 2019. Carma and Bitmo have taken a unique approach to building awareness by allowing consumers to earn rewards as Carma “Ambassadors.” Those participants are incentivized for sharing information related to the recall with their friends and family via their social networks. Participants can earn financial rewards by signing up for Carma
Project and sharing Takata airbag recall information with their friends and family. A simple license plate photo or typing a VIN into a recall lookup tool on Carma Project’s website allows involved Toyota, Lexus, and Scion owners to immediately take action and book an appointment for a free Takata airbag fix. Referring individuals can also earn financial rewards for every eligible Toyota, Lexus or Scion that is fixed. Individuals who lookup any vehicle can receive $5 in Bitmo rewards and referring Ambassadors can earn a $55 reward once a recalled airbag has been replaced. To redeem their digital gift cards, participants simply download the Bitmo mobile app, which allows them to save, store and swap gift cards from a list of over 130 retailers including AMC Theatres, Nordstrom, REI, GameStop and Domino’s. Users can even pay using the Bitmo app on their mobile phone. “Word of mouth is incredibly powerful, especially in our increasingly connected digital lives,” said Carma Project Co-founder and CEO Fabio Gratton. “Our goal is to iden-
tify solutions to help people, help people. The power of word-of-mouth advocacy combined with a digital incentive program can motivate people to take action.” “We’ve had great success helping our retail partners incentivize customers to spend more with them using Bitmo. It felt only natural to use the same concept to help this crucial initiative,” said Michael Smallwood, CEO and founder of Bitmo. “Our digital gifting platform makes gifting more convenient, flexible and secure than ever before, making it quick and easy to reward participants in the incredibly important Carma Project efforts. No more waiting for a physical gift card to be delivered in the mail. After downloading the Bitmo app, eligible participants will have their gift appear straight away. It’s this instant reward and ease of use that we hope encourages many more people to participate in raising awareness about the recall.” The program has already delivered over $230,000 worth of incentives. Obtained via PRWeb.
Mitsubishi to Relocate US Headquarters
Tennessee Gov. Bill Lee, Department of Economic and Community Development Commissioner Bob Rolfe and Mitsubishi Motors North America officials announced on June 25, 3019, that the automaker will relocate its headquarters to Franklin, TN, from Cypress, CA. Mitsubishi Motors’ move represents an investment in the county of $18.25 million and brings approximately 200 jobs to Williamson County. Since 1988, Mitsubishi Motors North America has been rooted in California. The relocation to Franklin will begin in August and be completed by the end of 2019. All departments will be relocating, including sales, marketing, IT and more. Since 2013, headquarters jobs have grown by 37 percent in Tennessee, the fastest rate of growth among states in the Southeast. For more information on Mitsubishi vehicles, please contact the Mitsubishi Motors News Bureau at (888) 560-6672 or visit: media .mitsubishicars.com. Obtained via globenewswire.com.
Continued from Page 27
Reliable Repair
Using an example of an Audi Q5, Wideman said the OEM repair literature states that if the vehicle has lane assist, calibration is required, even in a minor repair. When calibration hasn’t been performed properly, Wideman pointed out that consumer safety may be affected. “There are significant liabilities as far as not following the proper repair procedures,” he said. Future technology that is predicted to affect repairs includes electric vehicles. “We’re on an electrification push within both brands [Volkswagen and Audi] so it’s important to follow the repair literature to find out what’s required,” he explained. Overall, he said OEM procedures are the standard method of repair. “If we can all come to that baseline that the OEM procedure is the fundamental starting point, then we have a really good platform to move forward,” he said. 52
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