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Vol. 8 / Issue 3 / December 2018
2018 Legislative Roundup in California: It Was a Very Good Year
Progressive Corporation’s Appeal Dismissed by State Appeals Panel in FL
by Ed Attanasio
by Emmariah Holcomb, glassBYTEs.com
There were a lot of proposed bills this year that could have either helped or hurt the collision repair industry in California. But by working hard to support or oppose them, CAA lobbyist Jack Molodanof was able to say it was a productive and successful year, legislatively speaking. “The state legislature adjourned for the year, and the governor finished taking action on many bills,” Molodanof said. “CAA had a very successful legislative year, which
included supporting new laws that require preventative maintenance facilities to be registered with BAR and allowing customer authorizations through text message and other electronic means. CAA was also actively involved in stopping several pieces of legislation, including bills that would have: 1.) allowed insurers to conduct labor rate surveys in a manner skewing results and suppressing market rates; 2.) treated auto repair facilities as debt collectors and 3.) created new tires fees.” Below is a summary of key bills See Legislative Roundup, Page 15
Automakers at OEM Summit Offer Updates on Certified Collision Repair Center Programs by John Yoswick
The Society of Collision Repair Specialists’ (SCRS) day-long OEM Col-
Nicole Riedel of Subaru said the automaker’s certified shop program will be opening up for independent shop participation
lision Repair Technology Summit held in Las Vegas during SEMA included updates from a number of automakers on their collision shop certification programs. Nicole Riedel of Subaru of America, for example, said that independent shops will soon be added to her company’s shop certification program that was launched with dealership shops this past June. “We have a little over 600 retailers across the U.S., and of that, at most one-third have collision centers,” Riedel said. “That’s not nearly See OEM Summit, Page 44
Progressive Corporation’s appeal was dismissed by the state appeals panel in Florida in early November. The auto insurer has been accused of piling windshield replacement companies with the cost of insurance appraisals, according to court documents. Two years ago, four companies sued Progressive in a county court, claiming the company was in breach of contract for only paying a portion of covered windshield repairs. The four windshield replacement companies are: • • • •
SHL Enterprises LLC, Shazam Auto Glass LLC, Glassmetics LLC, and Lloyd’s of Shelton Auto Glass LLC
According to Progressive, its company policy includes an appraisal provision that works to resolve repair cost disputes. The windshield replacement companies claimed the appraisal provisions violated state law. According to the panel, the county court agreed and considered the provisions unenforceable because it requires windshield companies to pay for appraisal costs. The court claimed this was equivalent to a deductible. The appeals panel claimed the lower courts, who had previously viewed the case, misunderstood state laws after these instances:
• The lower courts referred to the company’s cost-shifting as a deductible, and See Appeal Dismissed, Page 23
11th Circuit Considers Whether to Reinstate Auto Insurance Price-Fixing Claims
ices by agreeing among themselves to pay a preset “market rate” and to enThe U.S. Court of Appeals for the force compliance by “steering” their Eleventh Circuit heard arguments Oct. insureds to businesses that play ball, 23 leveled by a group of auto body re- effectively boycotting other shops. pair shops claiming State Farm InsurIn addition to State Farm, the defendants include Allstate, Progressive, GEICO, Nationwide, USAA, Liberty Mutual and Hartford, among others. Sitting en banc, the judges were considering whether to keep alive multidistrict litigation that was tossed out by a district judge for failure to Mark Shurtleff (left) and John Eaves. Republished with state a claim, then revived by permission. Credit: John Disney, ALM/Daily Report a split panel last year. ance and a host of other national The cases have been combined carriers are conspiring to fix prices. in Florida’s Middle District, and the The plaintiffs say the insurers instant appeals represent five of 14 have conspired to drive down the similar complaints combined in the prices they’re charged for repair servSee Price-Fixing Claims, Page 28 by Greg Land, Daily Report
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DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
BASF New Sponsor of Detroit Autorama Great 8
CONTENTS BASF New Sponsor of Detroit Autorama Great 8 . 3
Sisk - Dave Luehr Teaches WIN Members How To Develop a WINner’s Mindset . . . . . . 52
Bob Carter’s Auto Body Achieves I-CAR Gold Status in IL . . . . . . . . . . . . . . . . . . . . . 29 Gerber Collision Opens New Locations in IN . . 22 Gerber Opens 5 Repair Locations in MO . . . . . . 8 KS Agencies Warn Drivers About Increase in Deer-Related Crashes . . . . . . . . . . . . . . . . 6 KY Family-Run Auto Body Shop Destroyed a 2nd Time After Overnight Fire. . . . . . . . . . 14 MI Car Insurance Rates Reported To Be 83% Higher Than National Average . . . . . . . . 9 Mike Anderson Visits ASA-OH for ‘Learn to Research, Research to Learn’ Training . . . . 23 Number of Flooded Cars on the Road Jumps 47% Over Past Year . . . . . . . . . . . . . 61 Solon, OH, Issue 92 To Create Auto Repair Zone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 St. Louis I-CAR Committee Holds Last Meeting of 2018 . . . . . . . . . . . . . . . . . . . . . . 8 WAC Learns About South Technical’s Auto Body Program in MO . . . . . . . . . . . . . . 10 YANG Meet-Up in Ferndale, MI, Attracts 75+ Industry Professionals . . . . . . . . . . . . . . 6
NATIONAL ‘Autonomous Illinois’ Promises Economic Benefit, Public Goods . . . . . . . . . . . . . . . . . 12 11th Circuit Considers Whether to Reinstate Auto Insurance Price-Fixing Claims . . . . . . . . 1 2018 Legislative Roundup in California:
Anderson - Toyota’s Training Website Offers Free Information for Collision Repairers. . . . 40 Attanasio - Industry Veteran Creates Vintage Wine Furniture . . . . . . . . . . . . . . . . . . . . . . 50 Attanasio - PPG’s Jennifer Jarzembowski Discusses Impact of OEM Certifications . . . 54 Ledoux - The Fabulous ‘50s and Mr. O’Donnell’s Invention. . . . . . . . . . . . . . . 42 Phillips - 5 Key Steps to Implementing Practical Production Processes . . . . . . . . . . 48 Phillips - Why OEM Certifications Are Critical to Remain in Business. . . . . . . . . . . 38 Sisk - ASA-MI Hosts Training on ADAS, Calibration . . . . . . . . . . . . . . . . . . . . . . . . . 18
The Detroit Autorama is celebrating its 67th anniversary in 2019 and will be held at Cobo Center in Detroit, Michigan March 1-3.
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, Sean Hartman, Bill Doyle, Norman Morano (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: Rochelle Beckel Accounting Manager: Heather Priddy Editorial/Sales Assistant: Randi Scholtes
Serving Illinois, Iowa, Indiana, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2018 Adamantine Media LLC.
Audi Wholesale Parts Dealers. . . . . . . . . . . . . 54
Laurel Auto Group of Westmont . . . . . . . . . . . 43
AutobodyLaw.com . . . . . . . . . . . . . . . . . . . . . 48
Luther Bloomington Acura-Subaru . . . . . . . . . 47
Axalta Coating Systems . . . . . . . . . . . . . . . . 2, 9
Maplewood Toyota-Scion . . . . . . . . . . . . . . . . 22
Bettenhausen Automotive . . . . . . . . . . . . . . . . 6
Mazda Wholesale Parts Dealers . . . . . . . . . . . 60
BMW Wholesale Parts Dealers . . . . . . . . . . . . 59
Matrix Automotive FInishes . . . . . . . . . . . . . . 17
Bob Hook Chevrolet . . . . . . . . . . . . . . . . . . . . 15
McGrath City Hyundai . . . . . . . . . . . . . . . . . . 30
CarcoonAmerica Airflow Systems. . . . . . . . . . 14
Mercedes-Benz . . . . . . . . . . . . . . . . . 11, 19, 25
CIF Elects Scott Walton as New Trustee . . . . . . 14
Charles Gabus Ford . . . . . . . . . . . . . . . . . . . . 45
Midwest Parts Group . . . . . . . . . . . . . . . . 20-21
CREF Fundraiser Co-Hosted by PPG
Chicago Pneumatic Compressors. . . . . . . . . . 18
MINI Wholesale Parts Dealers. . . . . . . . . . . . . 61
Classic Chevrolet . . . . . . . . . . . . . . . . . . . . . . 49
Mitsubishi Wholesale Parts Dealers . . . . . . . . 61
Classifieds . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
MOPAR Wholesale Parts Dealers. . . . . . . . 36-37
Courtesy Subaru . . . . . . . . . . . . . . . . . . . . . . 28
Morrison’s Auto Parts. . . . . . . . . . . . . . . . . . . 24
Dent Magic . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Nissan/Infiniti Wholesale Parts Dealers. . . . . . 56
Dominion Sure Seal . . . . . . . . . . . . . . . . . . . . 23
Patrick BMW MINI . . . . . . . . . . . . . . . . . . . . . 51
ECS Automotive Concepts . . . . . . . . . . . . . . . 16
Patrick Hyundai . . . . . . . . . . . . . . . . . . . . . . . 38
Equalizer Industries, Inc. . . . . . . . . . . . . . . . . 29
Polyvance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Erhard BMW of Bloomfield Hills . . . . . . . . . . . 34
RBL Products. . . . . . . . . . . . . . . . . . . . . . . . . 13
Erhard BMW of Farmington Hills . . . . . . . . . . 34
Richfield-Bloomington Honda. . . . . . . . . . . . . 52
Gandrud Parts Center. . . . . . . . . . . . . . . . . . . 27
Robaina Industries, Inc. . . . . . . . . . . . . . . . . . 39
GM Wholesale Parts Dealers . . . . . . . . . . . . . 53
SATA Dan-Am Company. . . . . . . . . . . . . . . . . . 7
GYS Welding USA. . . . . . . . . . . . . . . . . . . . . . 26
Sherwin-Williams Automotive Finishes. . . . . . . 5
by State Appeals Panel in FL . . . . . . . . . . . . . 1
Honda-Acura Wholesale Parts Dealers . . . 32-33
Spanesi Americas . . . . . . . . . . . . . . . . . . . . . 35
Sherwin-Williams Joins CIECA . . . . . . . . . . . . 10
Hyundai Wholesale Parts Dealers . . . . . . . . . . 50
Subaru Wholesale Parts Dealers. . . . . . . . . . . 55
Infiniti of Naperville . . . . . . . . . . . . . . . . . . . . 46
Symach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Jack Phelan Chrysler-Dodge-Jeep-Ram
The Sharpe Collection of Automobiles . . . . . . 41
ASA Announces New Dates, Location for MSO Symposium, Technology Telematics Forum . . 6 Automakers at OEM Summit Offer Updates on Certified Collision Repair Center Programs . . 1 AutoNation Embarks on New Parts Path . . . . . 58 AutoNation Launches New Theme Vehicle for Breast Cancer Awareness . . . . . . . . . . . 58 Autonomous Vehicles May Hit U.S. Roads Under Pilot Project . . . . . . . . . . . . . . . . . . . . 4 CARSTAR Weighs in on the Hefty Costs of Hazardous Deer . . . . . . . . . . . . . . . . . . . 56
Autobody News Box 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com
Raises $130,000. . . . . . . . . . . . . . . . . . . . . 60 CREF Receives $100,000 Donation From
COLUMNISTS
The Great 8 finalists are announced to great fanfare at the Ridler’s Ball on Friday evening during the Detroit Autorama.
It Was a Very Good Year. . . . . . . . . . . . . . . . . 1
INDEX OF ADVERTISERS
REGIONAL
The Detroit Autorama is proud to announce that BASF is the new sponsor of the Detroit Autorama Great 8. The Great 8, which will now be known as the BASF Great 8, is composed of the eight finalists chosen each year to compete for Detroit Autorama’s prestigious Ridler Award. Being named as a Great 8 finalist is a highly sought-after achievement. Renowned custom car builders from across the U.S. bring their creations to the Detroit Autorama in the hope of being named to the Great 8 and ultimately competing for the Ridler Award.
Allstate Insurance . . . . . . . . . . . . . . . . . . . . 61 Fake Recall Notices Get Car Dealers in Trouble With FTC . . . . . . . . . . . . . . . . . . . . . 59 Insurer Group Hammers Claim that CA Prop 103 Saved Drivers Billions . . . . . . . . . 46 KABA Hosts Estimating Roundtable . . . . . . . . . 12 Progressive Corporation’s Appeal Dismissed
The Next Generation Speaks Out on Their Collision Repair Careers . . . . . . . . . . . 16 Thieves are Stealing Airbags From New Honda Civics and Accords . . . . . . . . . . . . . . 60 Trump’s EPA Rattles Self-Driving Car Industry by Picking ‘Winners and Losers,’ Critics Claim . . 4
of Countryside . . . . . . . . . . . . . . . . . . . . . . 31
Toyota of Des Moines. . . . . . . . . . . . . . . . . . . 45
Jake Sweeney Chevrolet . . . . . . . . . . . . . . . . 46
Toyota Wholesale Parts Dealers . . . . . . . . . . . 60
Kelly BMW . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
VanDevere Kia-GM. . . . . . . . . . . . . . . . . . . . . 40
Kia of Des Moines . . . . . . . . . . . . . . . . . . . . . 45
Volkswagen Wholesale Parts Dealers . . . . . . . 58
Kia Wholesale Parts Dealers. . . . . . . . . . . . . . 57
YesterWreck . . . . . . . . . . . . . . . . . . . . . . . . . 10
Launch Tech USA. . . . . . . . . . . . . . . . . . . . . . 63
Zimmer Chrysler-Dodge-Jeep-Ram . . . . . . . . 64
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
3
Trump’s EPA Rattles Self-Driving Car Industry by Picking ‘Winners and Losers,’ Critics Claim by Joe Williams, Washington Examiner
Critics are blasting a new Environmental Protection Agency rule that they claim breaks the Trump administration’s commitment not to arbitrarily pick winners and losers in the self-driving car market. Tucked into the EPA’s proposed Safer Affordable Fuel-Efficient, or SAFE, Vehicles rule released in August is language that would give companies credit toward emissions standards for producing cars that include vehicle-to-vehicle communication capabilities—technology that allows autonomous cars to exchange speed and position information with each other to prevent accidents. The EPA and the National Highway Traffic Safety Administration are suggesting that the credit, which might be granted without a requirement for corroborating evidence that the technology reduces carbon dioxide output, be tied to a car’s ability to transmit data using dedicated shortrange communications, or DSRC, which relies upon a specific wireless spectrum to blast out signals. Shortly before President Trump
was sworn into office, the Obama administration released a controversial draft rule mandating that DSRC be used in autonomous cars. The Trump administration reportedly shelved the proposal, and some manufacturers are starting to use cellular communication instead, which proponents argue is more reliable and has a longer range. Companies such as Audi and Ford have embraced the technology and demonstrated it in vehicles earlier this year. Toyota and General Motors, meanwhile, have adopted DSRC, though it’s unclear why that system was chosen by the EPA. Neither manufacturer responded to inquires about whether it had lobbied for the provision. GM, which offered dedicated short-range communications in some 2017 Cadillac sedans, pledged in July to expand it to other vehicles. Other manufacturers such as Tesla and Mercedes-Benz raised concerns over the technology’s security vulnerabilities, however, and critics of the EPA proposal say the Department of Transportation, which encompasses the traffic safety administration and has repeatedly stressed that it would
take a technology-neutral approach to regulating self-driving vehicles, is reneging on its commitment. “If they were to go forward with this, this would violate the [agency’s] pledge to technology neutrality,” Marc Scribner, senior fellow at the Competitive Enterprise Institute, told the Washington Examiner. “What they are doing is picking technology winners and losers.” That might be happening at the expense of better, safer options. “It creates, inadvertently, technological lock-in,” Ryan Hagemann, senior director for policy at the Niskanen Center, said in an interview. “You are more likely to simply rest on your laurels and default to what the standard is rather than trying to improve on top of it.” Scribner said the provision could also spur other companies to “lobby to try to gain similar favors in the future for their particular technologies” and anger environmentalists who were already critical of the data EPA used to justify credits. “It could wind up putting a big target on the entire program’s back,” he said. The EPA directed inquiries to
Autonomous Vehicles May Hit U.S. Roads Under Pilot Project by Mario L. Major, Interesting Engineering
The U.S. DOT and NHTSA, two key agencies involved in the automotive industry, are both making efforts to be more inclusive of the emerging autonomous car industry.
Credit: Pexels
Autonomous cars, self-driving cars, unmanned cars, driverless cars ... Whatever we choose to name them, they are entering our lives in unprecedented numbers, with almost every major car company in the world dramatically stepping up efforts to enter the market or laying out concrete plans to do so via the ever-effective concept car unveilings. Although it is clear that the industry is on board with developing 4
autonomous vehicle technology, it is equally important to have healthy engagement and support from local governments. For this reason, the recent announcement of an autonomous vehicle pilot program being considered by the Trump Administration is drawing attention. According to the National Highway Traffic Safety Administration (NHTSA), the powerful agency that serves as the final authority on deciding which vehicles get to hit the roads in the United States, it is behind the initiative. In the report on the program, which calls for collaborative research with the U.S. Department of Transportation (U.S. DOT), the agency indicated the program was developed to understand “how best to foster the safe development and implementation of ADS vehicle technologies on our nation’s roadways.” This move also coincides with the announcement of a new set of vehicle safety ratings. The NHTSA already has in place a clear set of the six levels of driver assistance tech-
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
nology advancements, which is another endorsement of the technology, but this new program would play a big role in helping reduce some of the technical obstacles (lack of pedals or steering wheels), which seem to place heavier restrictions on automated car use. Agency Support Is Shifting in the U.S. The support, though reserved, of the NHTSA represents a strong official endorsement of the growing influence of autonomous vehicles and more importantly, offers the symbolic meaning of government and industry coming together around this vital technology. It also helps to quiet the critics, lobbyists and various members of government who voice opposition to the vehicles based on concerns about safety. Another positive development is a U.S. DOT-supported effort to simplify the legal frameworks surrounding autonomous vehicles. The U.S. DOT provided an 80-page document titled “Preparing for the Future of Transportation: Automated Vehicles 3.0.” “The safe integration of automated vehicle technology into our transportation system will increase
the Department of Transportation, which referred inquiries to the traffic safety administration. That organization said it would carefully consider all comments before enacting a final rule. The Alliance of Automobile Manufacturers, which counts GM and Toyota as members, also supported DSRC. Executives at the group met with officials from the transportation department, the EPA and the Office of Management and Budget in June to discuss the SAFE Vehicles rule. A spokesman for the group was unaware whether the provision was discussed. “If those types of credits were brought up, they would have played a very minor role in the discussion,” he said in an emailed response to inquiries. While self-driving technology is an unconventional means of reducing toxic emissions from vehicles, it is effective, he added. “The agencies should incentivize the adoption of these technologies and provide for possibly additional credit,” he said. We thank Washington Examiner for reprint permission.
productivity, facilitate freight movement and create new types of jobs,” said Secretary Elaine L. Chao. The goal of the program is to (1) provide a framework for communication between industry and the U.S. DOT, (2) identify in greater clarity any existing policy issues and (3) create a blueprint of multi-modal safety that incorporates autonomous vehicles. The agency also makes clear its commitment to overhauling the language it uses in order to create standards that take into account the new technological reality of autonomous vehicles: “U.S. DOT will modernize or eliminate outdated regulations that unnecessarily impede the development of automated vehicles or that do not address critical safety needs. Whenever possible, the department will support the development of voluntary, consensus-based technical standards and approaches that are flexible and adaptable over time.” We thank Interesting Engineering for reprint permission.
www.autobodynews.com
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
5
YANG Meet-Up in Ferndale, MI, Attracts 75+ Industry Professionals
working opportunity for all involved. Schrader Performance On Oct.16, the Young Auto Care Sensors is proud to be part of the Network Group (YANG) gathered industry and to support young proat Detroit Axe in Ferndale, MI, for fessionals, and YANG is grateful a YANG Regional Meet-Up hosted for Schrader’s generous sponsorby Schrader Performance Sensors. ship. John McGrane, marketing and communications specialist for Schrader Performance Sensors, noted, “YANG and The Auto Care Association have played a huge role in ensuring our industry continues to grow through the encouragement of emSchrader Performance Sensors proudly sponsored powering younger genYANG’s Oct.16 Regional Meet-Up. erations. Thank you to More than 75 young industry everyone who attended this Reprofessionals registered for the gional Meet-up! This event is proof event, making it the largest inde- that the industry is thriving, and fupendently sponsored YANG event ture industry leaders are eager to to-date. network and learn from others in The event featured an axe- the industry.” throwing tournament, access to For more information about more than 500 board games and a YANG, visit autocare.org/What-Wethree-course meal with drinks for Do/Professional-Development attendees, providing a relaxed net- /young-auto-care-network-group. by Chasidy Rae Sisk
KS Agencies Warn Drivers About Increase in DeerRelated Crashes by Krystle Sherrell, KSN.com/KSNW-TV, Wichita, KS
As the peak months of deer-vehicle crashes are near, state agencies are warning drivers about the increase that is impacting every county in Kansas.
Credit: KSN News
According to the Kansas Department of Transportation, nearly 20 percent of all crashes in Kansas in 2017 were deer-related. State Representative Joe Seiwert knows firsthand about deer crashes. “In all our family, we’ve calculated over 20 accidents over the years,” Seiwert said. That and losing one of his friends in a motorcycle-deer crash pushed Seiwert to run for State Rep6
resentative to try to create laws to save lives. “We introduced more legislation to get more hunting days, more permits; we used to have transferable permits for farmers,” Seiwert said. “It’s not just about the buck; it’s about controlling the deer management population to make our highways safe.” Collision shops in Wichita and surrounding areas are seeing that increase, too. Ken Hunnel at All Angles Collision Repair said his shops see several cars a week that come in with damages from deer. “We have four locations, and each of those locations has two or three deer impacts,” Hunnel said. “We have about 12 or more at any given time. Some of those [are] repairable, some of those not.” To see all of the statistics of deer-related accidents in Kansas in 2017, visit the Kansas Highway Patrol website or the Kansas Department of Transportation press release. We thank KSN.com/KSNW-TV, Wichita, KS, for reprint permission.
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
ASA Announces New Dates, Location for MSO Symposium, Technology Telematics Forum The Automotive Service Association is pleased to announce the dates and location for the 8th Annual MSO Symposium and Technology Telematics Forum (TTF).
Next year’s events will coincide with the Collision Industry Conference (CIC) in Indianapolis, IN, July 24-25, 2019. The two events were originally scheduled to take place during NACE Automechanika in 2019. Due to pending changes surrounding the tradeshow, ASA’s board of directors elected to move the event this year to coincide with CIC. ASA will be working closely with Messe Frankfurt, the world’s largest trade fair, congress and event organization, based in Frankfurt, Germany, regarding the future direction of NACE Automechanika. Announcements will be made in the
near future regarding 2019, 2020 and beyond. “We are looking forward to the continued growth and success of both programs,” said ASA Chairman Roy Schnepper, AAM. “The MSO Symposium has evolved into the marquee event of the year where the most influential people in the industry gather. We appreciate the support we receive from all the industry stakeholders, including insurers and OEMs.” Bob Wills, AAM, ASA’s chairman-elect, said ASA understands that there are many questions surrounding the future of the NACE Automechanika tradeshow. “We are working very closely with our partners at Messe Frankfurt to make decisions as quickly as possible,” Wills said. “We will make those details available as soon as possible. “We recognize the needs and value derived from a tradeshow have shifted, and we are devising a plan that best addresses those changing needs for our members and the industry as a whole.”
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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St. Louis I-CAR Committee Holds Last Meeting of 2018 by Chasidy Rae Sisk
On Oct. 12, the St. Louis I-CAR Committee held its last meeting of the year, during which officers provided updates and members watched an informative video from I-CAR. According to Committee Chair Shelly Jones, “This was a very interactive meeting with a lot of people commenting on the topics covered. It gave us a chance to provide information on I-CAR, recap the job fair and discuss the committee’s goals and objectives.” The meeting began with Jones updating members on her visits to Gold-status and non-Gold-status shops to talk about I-CAR and invite them to future meetings. Committee Vice Chair of Training John Helterbrand shared information about the I-CAR training that has been taking place at Ranken and suggested that I-CAR will release important updates at SEMA. “John’s officer report was especially interesting and led to a discussion of a potential committee meeting or informational event being squeezed in before the end of year,” Jones shared. “Committee
8
Vice Chair of Marketing Sarah Young of Original One Parts has been doing an outstanding job of keeping the St. Louis Committee Facebook page updated with information and events important to the industry.”
that participated. “I have talked with reps from five companies that participated in our recent job fair at Gateway Motorsports Park. All of them hired one or two students who they met at the race track. Some hired from our previous job fairs as well. Our committee will develop a survey to easily obtain this type of information,” Jones said. “It is important for our committee to work together to support the school programs and to promote ICAR training for the safety of the consumer.” Finally, Jones discussed the group’s 2018 committee goals and St. Louis I-CAR Committee Vice Chair of Training John confirmed that they have Helterbrand provides an update for the group during completed all requireits last meeting of 2018 ments for Gold Class. Gene Slattery, committee ed- The St. Louis I-CAR Committee’s ucation coordinator, recapped the October meeting concluded with a Gateway Automotive and Collision 360 video from the I-CAR website Job Fair that was held during NHRA that everyone agreed was informaweekend and attracted nearly 1,000 tive and well done. students. The fundraiser generated around $33,000, which will be dis- The group’s next meeting will be tributed among the seven schools held on Jan. 11, 2019.
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
Gerber Opens 5 Repair Locations in MO
Gerber Collision & Glass recently announced the Nov. 1, 2018 opening of five collision repair locations in the Kansas City, MO, market. The centers, located in Kansas City (three), Smithville and St. Joseph, previously operated as A & B Body Shop, Inc., originating 56 years ago. With this growth, Gerber now operates collision repair centers in 25 states. Kansas City is the largest city in Missouri and the central city of a metropolitan area of approximately 2.1 million people. “We look forward to maintaining the high level of service provided at these locations, introducing our brand to a new state and better assisting our insurance clients,” said Tim O’Day, president and COO of Gerber. “As we continue to expand our presence and establish locations in new states, we better position ourselves to serve our customers across the country.”
www.autobodynews.com
MI Car Insurance Rates Reported To Be 83% Higher Than National Average
The Zebra, an insurance search engine, released a report in October about the causes and rippling impact of exorbitant car insurance rates in Michigan, the most expensive state for car insurance.
pany is required to pay for injury-related expenses after a crash, regardless of whose fault the crash was.
• Michigan drivers pay $2,610 each year on average, which is 83 percent higher than the national average of $1,427.
• Car insurance premiums exceed $6,000 and comprise up to 20 percent of annual income in some Michigan cities. • Detroit car insurance rates are three times higher than rates in some more rural parts of the state. The report reveals auto insurance pricing data across the state and country and explores how Michigan’s uniquely high car insurance costs came to be, what efforts have been made to fix them and what protections are at stake in Michigan’s upcoming gubernatorial elections. Why Car Insurance Rates in Michigan Are So High Michigan is a “no-fault” state, meaning a driver’s own insurance com-
• Michigan is unique in that it requires drivers to buy high levels of car insurance coveragenotably Personal Injury Protection (PIP) insurance with unlimited, lifetime medical coverage for injuries. • The unlimited nature of these benefits, coupled with rising health care costs, results in high medical claims, exacerbated by lawsuits, abuse of benefits and high rates of fraud.
• Insurance companies raise car insurance premiums to account for their losses from those costly PIP claims. “If you already dread paying your car insurance premium, just think of how frustrating paying double or even triple that amount would be. That’s what Michigan drivers are facing, and that’s why car insurance has become such a massive political issue. Something needs to change,” said Alyssa Connolly, director of market insights at The Zebra. “No doubt the entire country—especially the dozen other no-fault insurance states—should pay close attention to the issue, the data and the impact politics can have on car insurance.”
Elections 2018: Michigan Auto Insurance Reform Proposals In 2018, residents in Michigan have made auto insurance reform a topfour issue in the November elections. The Zebra’s report examines the
fixes candidates are proposing for the Michigan car insurance system and how they would impact the lives and finances of Michiganders: • Limit the “unlimited” medical benefit requirements. • Create a medical fee schedule similar to states such as New Jersey. • Prohibit insurers from using certain information when setting rates, such as non-driving factors including gender, marital status, occupation, education and credit score.
• Create an anti-fraud authority to conduct background checks of insurance licensees, collect and maintain fraud claims and coordinate with police in criminal investigations. • Replace no-fault car insurance with a tort system, like neighbor state Ohio where drivers pay half as much in annual premiums.
For the full report, including original rate data,visit TheZebra.com /research/michigan-car-insurancecrisis/.
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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WAC Learns About South Technical’s Auto Body Program in MO of car parts, which got him interested in the artistic side of working [with] On Oct. 16, Women in Automotive cars and led him to sign up for the and Collision (WAC) held its monthly collision program. The meeting atmeeting at South Technical High tendees enjoyed Raven’s speech and School’s collision repair department had many follow-up questions. He is an artist that found an interest in in St. Louis, MO. working on cars.” WAC Vice President Jess Crump added, “This event went really well, and I’m glad we got to speak with one of the students in the auto body program. He was able to give us some insight about what attracted him to the industry and the things he likes best about the program. This kind of inforAuto body instructor Ken Neuman (far right) leads WAC mation is really helpful to members on a tour of the body shop at South Technical us because we want to High School in St. Louis, MO. reach students in different According to WAC President ways to get the best response from Shelly Jones, “In addition to our nor- our efforts. He seemed to really mal meeting, we heard from the enjoy the meeting too. I look forward [school’s] collision repair instructor, to hearing from more students as we Ken Neuman, about the [auto body] travel to different schools.” The meeting was held to disprogram. One of his students, Raven, told us about his journey that led him cuss the group’s current status and to the program. While on a tour of the future events and learn about the school, Raven saw a lamp made out school’s auto body program. by Chasidy Rae Sisk
Solon, OH, Issue 92 To Create Auto Repair Zone by Sue Reid, Chagrin Valley Today
Solon, OH, voters will be asked Nov. 6 to consider Issue 92, a new zoning classification for an area along Aurora and Old South Miles roads. Approval of Issue 92 would create the I-3 zoning classification and allow for automotive-related uses within the area, including body shops and general vehicle repair. The zone change was the same one proposed in 2016 as part of the Liberty Ford expansion, which did not come to fruition. Requesting the zone change for the I–3 classification was Darren Guerrini of Reno G. Properties LLC, the property owner on Aurora Road. City officials held multiple public hearings on the I-3 zone before both the Planning Commission and City Council approved the measure for the ballot. “This is recommended in the master plan and has been since 2010,” City Planning Director Robert S. Frankland explained. “It takes existing industrial zoned land and adds certain automotive repair-type uses.” Currently, there is no area in the district that allows automotive 10
repair, he continued. “Having access to vehicle repair services and body shops is important to the city,” Frankland noted. Currently, the only body and repair shops are non-conforming uses and new body or repair shops cannot be constructed. This zoning classification would allow auto repair to locate in the industrial areas. There would be rules associated with proper screening, and no outdoor storage of vehicles would be permitted, according to the proposal. Approval would establish the new I-3 zoning classification and then apply the district to Guerrini’s properties and adjacent properties, Frankland explained. There is currently detailing work being done in the building for BMW and Ford. The I–3 encompasses about 10 acres and is located in Ward 6. Passage would require a majority vote both citywide and in the affected ward. We thank Chagrin Valley Today for reprint permission.
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DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
“It is important for people and companies in the industry to work together to attract younger generations into the trade,” Jones noted. “The expectation was to bring members and guests together to continue working on our mission. We accomplish this by meeting monthly, developing goals and tasks that will keep
our organization healthy, and keeping a calendar of future events to attend that lead us toward our mission of creating career awareness.” WAC Treasurer Julie Hemann recently added an online store to the WAC Facebook page where t-shirts can be purchased. The proceeds benefit WAC’s mission to enhance industry awareness amongst students. WAC’s next meeting will be held on Nov. 13 at 5:30 p.m. at the Lewis and Clark Career Center.
Sherwin-Williams Joins CIECA
Based in Cleveland, OH, the company manufactures and distributes a complete line of advanced technology paint and coating systems for the automotive refinishing industry. “We are thrilled to join CIECA and its efforts to create an eCommerce-enabled collision industry,” said Phil Matisak, global color marketing director, Sherwin-Williams Automotive Finishes. “The standards promoted by CIECA are integral to the industry’s efficiency, from customer service to data integrity and security. “We are at all times developing products, processes and tools to help our customers improve their efficiency and effectiveness. Color is a major part of who we are and what we do, and excellent color service often comes down to efficient communication. That’s why we and so many of our partners, including body shops, insurance companies and parts providers, support CIECA.”
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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‘Autonomous Illinois’ Promises Economic Benefit, Public Goods by Colin Wood, StateScoop
A new initiative for connected and autonomous vehicles in Illinois will permit companies to pilot their transportation technologies and explore the industry’s reach as an engine for economic development, Gov. Bruce Rauner said in signing an executive order Oct. 25 to create the program. The initiative takes a form similar to those that had been launched by states and cities with growing regularity before an Uber-operated autonomous vehicle fatally struck a woman in Tempe, AZ, in March. The order establishes a framework for Illinois’ transportation department to work closely with other state agencies, local governments and private industry in pursuit of anticipated benefits around public safety, the economy and everyday convenience for residents. The death in Tempe gave leaders around the country pause, and though initiatives quietly continued in many places, it was with a renewed focus on safety. Some localities halted testing, including Arizona, though Gov. Doug Ducey signed an executive order in October establishing a pub-
lic-private research center to continue developing emerging transportation technologies. Rauner’s order cites the potential of the technology to “profoundly improve Illinois residents’ lives and communities.” In a press release, the governor said, “This technology is here and Illinois is ready to embrace it. Working with our public and private partners, we can make our roads safer, save lives, attract investment and create new high-tech jobs throughout the state.” The initiative, called “Autonomous Illinois,” charges the transportation department and its collaborators to review connected and autonomous vehicle research as it pertains to issues of privacy, law enforcement, environmental efforts, insurance coverage, liability, datasharing arrangements and the state’s infrastructure needs. Initiative leadership is also to evaluate current laws, inform the public of its findings and work closely with industry experts and other government bodies with a particular emphasis on improving safety and mobility for “the elderly, disabled and underserved populations.”
KABA Hosts Estimating Roundtable by Chasidy Rae Sisk
On Oct.16, the Kansas Auto Body Association (KABA) hosted an estimating roundtable in Hays, KS. According to KABA President Jeff Oldenettel, “The event went well with 12 different facilities and
15 industry professionals in attendance. Everyone was engaged and appreciative of KABA, and there were lots of discussions and conversation about the industry. It really exceeded my expectations.” KABA hosted this training event to help attendees better un-
derstand estimating procedures and processes. Specifically, they discussed how to procedurally document an accurate repair file for proper repairs. Oldenettel noted, “Many things are left off unintentionally just due to the depth of knowledge necessary to properly use estimating systems.” The purpose of the event was to enhance members’ knowledge and unify the group’s effort toward proper repairs. Oldenettel feels that the association and its events are important because it grants “local access to quality information that grows the industry within our state.” Next, KABA will host a trade show in Wichita from April 26–27, 2019. For more information about the association and its planned events, visit kansasaba.com.
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A pilot testing program outlines policies and procedures for companies interested in testing their technologies in Illinois. The program adds Illinois to a list of 39 other states that have either enacted some form of legislation or issued executive orders related to autonomous vehicles, according to data gathered by the National Conference of State Legislators. As in other states, Illinois officials are banking on the promise by the technology’s proponents that autonomous vehicles will improve public safety. According to the governor’s office, roadway accidents in Illinois killed more than 1,000 people in each of the past two years, with human error attributed as a major factor in 94 percent of fatal crashes. Yet this hope is paradoxically balanced with safety concerns—Tesla’s semi-autonomous driving technology, Autpilot, has been linked with two deaths and a handful of minor incidents underscoring the technology’s immaturity. But perhaps the biggest motivator for the state is the financial incentive. The governor’s office cites projections of an industry projected to gen-
erate $800 billion in annual economic benefit globally by 2050. “As the transportation hub for the entire country, Illinois is ideally situated to be a leader in the research of connected and automated vehicles,” Rauner said. If any state could use an economic boost, it’s Illinois; in October, the state was ranked by George Mason University as having the worst economy of any state in the nation. Illinois carries $130 billion in unfunded pension liabilities, and a political stalemate in the legislature has left the government without complete budgets for two fiscal years running. Illinois also holds the lowest credit rating of any state, flirting with junk status in recent months. We thank StateScoop for reprint permission.
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CIF Elects Scott Walton as New Trustee
The Collision Industry Foundation (CIF) recently elected Scott Walton to the Board of Trustees to carry on the foundation’s initiatives throughout the coming years. Walton has been in the industry for more than 15 years. He joins CIF from Sherwin-Williams, where he has worked for more than 20 years in various responsibilities. Sherwin-Williams is a long-time supporter of philanthropic activities for organizations such as CIF. Trustee Casey Steffen (SaintGobain Abrasives) said, “Scott has been a supporter of CIF for quite some time, and we are happy to have him on board. His experience in strategic planning, budgeting and being well-connected in the industry will surely add to CIF’s ability to assist collision professionals in need. He will be fully involved in CIF’s gala, which is scheduled for Jan. 17, 2019 in Palm Springs, CA.”
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KY Family-Run Auto Body Shop Destroyed a 2nd Time After Overnight Fire by Christian Hauser, WKRC
A northern Kentucky auto body shop went up in flames late the night of Oct. 10. It is the second time the family-run business has been destroyed. The first was in a tornado more than six years ago.
The family opened the shop more than 45 years ago. It took several months, but the family rebuilt.
Just when they were finally putting the tornado in the rearview mirror, devastation struck again. Butch’s Auto Body in northern Kentucky was destroyed a second time after an overnight fire. Credit: WKRC
Everyone in the Piner, KY, area remembers what it was like when an EF-4 tornado ripped through on March 2, 2012. “We lost everything on the farm. So he just rebuilt at the end of 2012 and reopened—and now this,” said Amber Hamm, the daughterin-law of the owner of Butch’s Auto Body.
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
Hamm saw flames coming from the shop late that Wednesday night. She got the family and pets to safety and then called 911.
“It was devastating. We knew the flames were just shooting out everywhere and there was nothing we could do to stop it,” Hamm said. “My husband went in and started pulling customers’ vehicles out of the burning building so he could at least save those, and that was pretty scary because soon after that, the roof collapsed in.” The building and just about everything inside was a complete loss, including tools that had been in the family for generations. “I feel like we’re becoming pros at starting over. We’re all pretty resilient after the tornado. That stuff does it to you. We will band together. The community will band together. We’ll rebuild and Butch will be back in business soon,” Hamm said. The family is raising money to help get back on their feet. We thank WKRC for reprint permission.
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Continued from Cover
Legislative Roundup
that CAA worked on this year, along with BAR activity. AB 2276 (Burke). Labor Rate Surveys. Oppose. The bill allows insurers to conduct “alternative labor rate surveys” but eliminates important standards set forth in Department of Insurance regulations that produce consistent, accurate and reliable labor rate survey results and instead allows insurers to skew the results in a manner that would suppress market rates. It died on the Senate floor, but is expected to be reintroduced next year. “This was the biggest bill of the year for CAA and the one we really worked hard to defeat,” Molodanof said. “The insurers were trying to create alternative labor rate surveys, but the way they drafted the bill, it would have led to a whole new set of problems. CAA stepped up and took an active role fighting this one, and that helped to defeat it. This was a reintroduction of a bill from last year, and we’re fairly confident that it will be coming back in one form or an-
other next year, but we’ll be prepared if and when that happens.” AB 2825 (Jones-Sawyer). Debt Collectors. Oppose unless Amended. The bill treats auto repair shops, including body shops, as “debt collectors.” Customer communications would be regulated and would poten-
tially subject shops to strict liability, fines and frivolous lawsuits. Status: The bill died in the Senate Appropriations Committee but is expected to be reintroduced next year. “This one is definitely going to come back next year in some form or another,” Molodanof said. “The bill was very complicated [and] farreaching with many unintended consequences. It would have treated the industry as debt collectors. Auto re-
pair businesses are not debt collectors; they service and repair vehicles for their customers. It’s good that it was defeated because otherwise it would have turned the industry upside down.” AB 3141 (Low). BAR. Support. This bill would include currently exempted maintenance service providers under BAR jurisdiction while maintaining oil changers’ business model. The bill also does not require a written estimate for preventative maintenance services as defined, if certain conditions are met. Status: Approved by governor. “Any company that does even minor services now has to be registered with BAR, which is good for consumers and the automotive industry,” Molodanof said. “We supported this bill because it protects consumers by unifying the automotive maintenance and repair industry in the state under the jurisdiction of BAR while preserving access to cost-effective preventative maintenance services.” AB 2908 (Berman). Tire Regulatory Fee. Oppose. The bill gives CalRecycle the ability to create a new tire fee up to $1, on top of the current
$1.75 per tire fee already charged. The bill was amended to allow a tire retailer to separately charge the new fee on the invoice. Status: Vetoed by governor but expected to be reintroduced next year. “CAA opposed the bill because CalRecycle has a surplus, so they don’t need the money,” Molodanof said. “We believe that recycling tires is a good thing and that the current $1.75 per tire is fair; there is no justification for giving CalRecycle the ability to add a new tire fee. CalRecycle should spend its existing money responsibly rather than impose a new tire fee on consumers.” AB 2392 (Santiago). Vehicles: Towing and Storage. Neutral. This bill requires all towing and storage fees to be reasonable and establishes criteria and presumption for reasonable towing and storage fees. Status: Approved by governor. “This bill was in reaction to the fact that some towing and storage facilities were gouging people,” Molodanof said. “We heard stories where people were illegally parked and their cars [were] towed, and when See Legislative Roundup, Page 60
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The Next Generation Speaks Out on Their Collision Repair Careers by Chasidy Rae Sisk
It is common knowledge in the collision repair industry that there is a shortage of incoming technicians. Over the past few years, many articles, educational seminars and programs have been dedicated to this dilemma. However, while many industry professionals have spoken about what shops can do to engage millennials and Generation Z (those born between 1995 and 2009), rarely does this information come with feedback from the young people in these age groups who have decided to join the industry’s workforce. Why did these young people pursue a career in the collision repair industry? What factors are most important when considering a company for which to work? What misperceptions have they encountered about the industry, and how can the industry’s image be improved to attract more of their peers? These are some of the questions that several young industry professionals graciously answered for Autobody News. Their responses will help their more seasoned peers better understand their generation in order to attract and maintain new employees. Like any other group, no two individuals are the same, and their responses vary as much as their personalities. However, there are some underlying similarities and themes across their responses. Most of those interviewed were interested in the industry from a young age. Travis Jeske, a UTI graduate who works for Caliber Collision, grew up in the automotive industry with a mechanic for a father, and he decided to pursue collision repair training so that he could open his own mechanic and body shop one day. Alex Casillas-Mendoza, another UTI graduate and Caliber employee, shared “I have a passion for cars and have always been intrigued by the engineering, assembly and disassembly of any vehicle.” Nineteen-year-old Meghan Grant worked in the garage with her dad when she was younger and developed a “passion for cars, trucks, bikes—you name it. Typical 16
father-daughter stuff. My mom, on the other hand, was very artistic, so I was always painting and doing arts and crafts with her. I love being able to create things on my own, so I figured, why not mix the two? I started dabbling in the collision repair industry when I was around 13 and started seriously pursuing the field when I was 15.” Shiloh Taft, an employee at Julian’s Auto Body and Frame, has “always enjoyed working with my
four more years when I could be out in the world doing something I love and making money,” she said. “Plus, college tuition prices have done nothing but increase. I was excited to find out there was a oneyear vocational school I could attend to put me in a career I actually wanted to do. [When seeking employment,] the most important factor to me was getting my student loans paid off within the next five to 10 years, so I didn’t apply to com-
long haul. I understand starting at the bottom and working your way up, but if you have the skills and they hold you back—you don’t need to work for a place like that.” Casillas-Mendoza agreed that the most important factor when considering a place of employment is “the opportunity to grow and build my career path progressively.” For others, the work environment plays a vital role in their decision-making.
hands and fixing things. It’s amazing to get something that’s broken and restore [it to] its original form.” ABRA’s Mackenzie Hanberry found the industry a little later in life when she was working in the car wash industry and became interested in learning body work as a response to customers asking her how to repair issues with their vehicles. Looking at what’s most important when considering a job, the young industry professionals were given five categories to prioritize: company culture, compensation and benefits, charity and community involvement, training opportunities and potential for advancement. Overall, training opportunities were the most important factor. Potential for advancement tied in second place with compensation and benefits, followed by charity and community involvement; company culture came in last. For Jeske, “All of these are about the same importance. What’s most important is a good process because without it, work becomes a nightmare. How the shop is managed and that quality repairs are being performed outrank everything else.” Student debt assistance was a very important consideration for Ashley Cambern of Woodlands Collision Center after she graduated school and began looking for employment. “After high school, I wasn’t prepared to go to college and study
panies that don’t offer student loan benefits, but luckily, I found a company that has decided to help me repay my student loans once my probation period ends.” Potential for advancement is also vital to Cambern, who stated, “I don’t want to work anywhere that I can’t get a better-paying job in the
Taft stated, “A good group of people can really make work flow more efficiently. It’s very important for me to work with people who have the same goals as I do so we can get the job done in a timely manner and do it right the first time.”
“I already love what I do, so the only thing that extremely concerns me is the work environment. I wouldn’t want to work somewhere that management was horrible and made me feel like I didn’t want to be there.” — Meghan Grant
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
See Next Generation, Page 24
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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Midwest Associations with Chasidy Rae Sisk
ASA-MI Hosts Training on ADAS, Calibration On Oct. 24, ASA-MI hosted a training session titled “ADAS and Calibration – You Don’t Know What You Don’t Know” in Grand Rapids, MI. The meeting was attended by more than 70 automotive industry professionals working in both collision and mechanical repair. According to ASA-MI President Ray Fisher, “Our objective was to create awareness about these newer safety systems and take away the fear of the unknown. These systems have been available on vehicles for the past few years and are no longer restricted to the high-end or highdollar vehicles. “As I mentioned when I opened the class, if you look at the data from the Insurance Institute for Highway Safety (IIHS), you’ll see that traffic fatalities in the United States in 2005 resulted in 43,443 deaths. By 2011, we reduced the number of deaths annually to 32,367, but by 2016, the
equipment and definitely crucial to the success of autonomous vehicles, resulting in decreased total losses and personal injury and increased volumes for repairable vehicles. Since we know they are not going to go away, nor should they, we feel it is important to educate our automotive repair professionals here in Michigan.” Before introducing the evening’s guest speakers, Fisher provided a brief overview of the Motor Vehicle Service and Repair Act. The act requires repair facilities and technicians to be licensed to demonstrate that the state legally sees them as the experts in the repair process. Fisher stated, “When you look at Michigan Compiled Law (MCL) 257.1336, it places liability on the repair facility for damage or injury. If you go to MCL 257.1337, it also places liability on the technician performing repairs; in both cases, the law defines the automotive repair industry here in Michigan as the ‘expert,’ not a warranty company reimbursing a customer for warranty repairs or an insurance carrier reimbursing a policy holder for their claim loss. In Michigan, your customer in ANY transaction is defined as the owner or operator of a motor vehicle, and hopeShaun O’Neill of Mobile Auto Solutions presented “ADAS fully, they have the right and Calibration – You Don’t Know What You Don’t Know” warranty company or insurto ASA-MI members ance carrier that will proplatest year for the data, traffic fatali- erly reimburse for these necessary ties rose to 37,461! Another article procedures. I know many of the bettitled ‘Real-World Benefits of Crash ter carriers and warranty companies Avoidance Technologies,’ published already do!” in May of this year, shows doubleBefore the evening’s main presdigit decreases in injuries using this entation began, Chuck Wilkinson, technology—a very positive out- sales consultant at Michigan Collicome. An article from 2013 showed sion Equipment, provided a demonthat by reducing the speed of impact stration of the Spanesi TouchPoint for two vehicles that were sampled, System. damage still occurred, but the repair He explained, “Not only do we costs were reduced from over have to make sure that we are within $28,000 to less than $6,000, while the vehicle manufacturers’ specified ultimately reducing injury. Moving tolerances when measuring three-diforward, many of these crash avoid- mensionally, [but] we now have to ance technologies will be standard be able to make sure that the angles
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DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
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.
Don’t Know What You Don’t Know” was then presented by Shaun O’Neill, technician and Michigan market manager for Mobile Auto Solutions. He began, “What Ray mentioned earlier about being the expert is so important. Tonight, we are going to take a look at some of the systems, the tools needed, the information needed, the processes and finally showing you the calibration setup.” Throughout his presentation, O’Neill demonChuck Wilkinson, sales consultant at Michigan Collision strated a variety of online Equipment, provided a demonstration of the Spanesi resources as well as softTouchPoint System ware resources that proaccuracy is extremely high. Make vide a repairer with a large amount sure that the measuring system you of information relative to the speuse is able to meet these new de- cific vehicle they are repairing. Urging attendees to validate information, mands for your repair facility.” “ADAS and Calibration – You he cautioned that key information are proper [too]. As you will hear tonight, there’s little (if any) adjustment on many of these sensors and cameras; therefore, the need for your
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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may occasionally be omitted from information providers. “For example, this provider gives you the exact same information that a vehicle manufacturer provides, but for whatever reason, these import no-
OEM1Stop.com for obtaining information. He stated, “Get yourselves into the practice of utilizing this information, whether it is your service advisor in a mechanical repair facility or an estimator in a collision repair facility, so that you have the necessary information prior to dispatching it to your technicians and hence, saving time.” The audience also received a demonstration of different targets and stands as well as a sampling of necessary requirements for proper vehicle calibration. O’Neill emphasized the imAttendees received a demonstration of the different targets portance of utilizing a clean, and their respective stands along with a sampling of the flat surface with plenty of requirements necessary to calibrate their vehicle properly room. tations are omitted from their pro“Each one of these performs the gram,” he said. “This is concerning necessary tasks required for proper because you may have a false belief vehicle calibration by the vehicle that you fixed the vehicle to the best manufacturer,” he said. “Make sure of your ability using this information, you follow the procedures as they are when it wasn’t all of the information laid out using the necessary space as that you needed!” required. For these advanced drive asO’Neill suggested using re- sistance systems to work properly sources such as NASTF.org and again, the measurements need to be
precise and the calibration needs to be precise in accordance to the manufacturer guidelines. Improper calibration could be as minor as a warning light to something as major as causing lane departure and possibly an accident with injury; neither one is something we want to deal with as professionals!” O’Neill’s presentation concluded with a Q&A session followed by walk-arounds of the vehicles used in the demonstrations and one-onone conversations with O’Neill and Wilkinson. Fisher stated, “A great deal of work went into this, and I need to thank Kent Career Technical Center for providing the learning venue along with the abundant space needed, Mobile Auto Solutions for providing the material and instructor, Michigan Collision Equipment for providing and demonstrating the importance of three dimensional AND angle measuring and the team of Todd Raible, Lee Morris and Rob Verhey from Fox Ford/Fox Honda for providing us a 2019 Ford F150 with 360° camera and a 2019 Honda Pilot with ADAS.”
Gerber Collision Opens New Locations in IN
Gerber Collision & Glass recently announced the Oct. 15, 2018 opening of two collision repair centers in Brownsburg and Greenwood, IN. These locations previously operated as Golden Chassis, with the Brownsburg location originating in 1987 and the Greenwood location opening the following year. Both of these cities are rapidly growing and included in the Indianapolis metropolitan area, with a population of approximately 2.4 million. Brownsburg is located 18 miles northwest of Indianapolis and Greenwood 15 miles south. “The addition of these locations will help us introduce our brand to new customers and better serve our insurance clients in central Indiana,” said Tim O’Day, president and COO of Gerber Collision & Glass. “We look forward to providing excellent customer service.”
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Continued from Cover
Appeal Dismissed
• Accused Progressive of not citing appellate case law before it rejected the appeal.
“By improperly restricting the scope of its own certiorari review, the circuit court did not engage in a meaningful analysis of the county court’s order and thus could not have concluded that there was no departure from the essential requirements of the law,” the panel said in court documents.
We thank glassBYTEs.com for reprint permission.
Your leading source for MIDWESTERN Collision Repair News! midwestern.autobodynews.com
Mike Anderson Visits ASA-OH for ‘Learn to Research, Research to Learn’ Training by Chasidy Rae Sisk
On Oct. 19 and 20, Collision Advice’s Mike Anderson taught ASA-OH members how to pull repair procedures directly from the source—the OEM—in his “Learn to Research, Research to Learn” workshop. The
workshop was held at Ohio Auto Kolor in Columbus, OH. According to ASA-OH Executive Director Matt Dougher, “Our members always enjoy having Mike Anderson as a speaker/instructor. The attendees all took something away from the workshop that will help them repair their customers’ cars more efficiently and effectively. Mike Anderson always exceeds expectations. All performance evaluations came back excellent.”
Anderson covered how to use OEM repair procedures’ websites to quickly and efficiently locate proper repair procedures and demonstrated on a number of OEM websites. He also emphasized the importance of repairing vehicles to OEM specifications. The workshop also featured a legal review of the Williams v. Sharron Woods Collision Center lawsuit. The review was delivered by David Miller of Buechner Haffer Meyers & Koeing Co, LPA, who explained the facts of the case and why the shop lost to help attendees understand how to avoid these types of lawsuits. The purpose of the meeting was “to assist members with becoming more familiar with OE repair procedures’ websites and how to use them more efficiently and effectively,” Dougher noted. “ASAOH’s main focus is to provide our members with the latest industry information that will assist them with becoming better repairers and putting customers back on the road in a safe vehicle.” ASA-OH will be hosting a workshop on “Maximizing Paint Booth Throughput,” taught by Jason Gar-
foot, senior technical advisor at Global Finishing Solutions, on Jan. 18 at Indiana Wesleyan University in West Chester Township. A second workshop will be held on Jan. 19 at the Ohio Auto Kolor in Columbus. Registration costs $39 for association members and $75 for non-members. Since the “Optimize Performance Through Repair Planning (Blueprinting) Workshop” planned for September had to be postponed because of a hurricane, ASA-OH will be hosting Robb Powers of PPG Industries on Feb. 6 for this educational seminar. Attendance costs $45 for members and $90 for nonmembers. For more information about ASAOH and its events, visit asaohio.org.
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Continued from Page 16
Next Generation
Grant added, “I already love what I do, so the only thing that extremely concerns me is the work environment. I wouldn’t want to work somewhere that management was horrible and made me feel like I didn’t want to be there.” These young professionals shared a lot of opinions about misperceptions of the industry. Cambern said she feels that many people believe “you have to be trained your whole life to work on a wrecked vehicle, but it’s really just about getting familiar with the types of materials used, understanding how they fit on the vehicle and learning how to do the repair.” Hanberry takes the opposite view. “One big misperception about this industry is that anyone can do this, and while technically that’s true, I feel it takes a certain type of skill set that needs to be required as a technician becomes more and more advanced,” she said. The largest misperception Grant has noticed “revolves around women in the industry. I’ve experienced first-hand people saying women can’t do it, and they’re awful at it and not strong enough. It really breaks my heart but also fuels it… whenever someone tells me women can’t work in this industry, I do my best to prove them wrong. The collision repair industry needs more women because women in this industry are amazing at what they do!” Taft shares a similar experience. “I always hear, ‘You don’t look like a collision repair technician.’ What is a technician supposed to look like?” she said. “Some men in this industry have also told me I shouldn’t be doing a man’s job. The only way to combat that is by proving them wrong and showing that we women can do just as well as they can.” The general consensus for improving the industry’s image is making sure the job is done well and the customer is happy. As Cambern pointed out, “Just one positive thing can go a long 24
way.” Hanberry added, “The better the repair, the more work will come in and the more money will be produced.” Public image is also a major factor that needs improvement. Casillas-Mendoza noted, “We are often portrayed as the bad guys. When insurance companies fight about repairs being done per OEM requirements, it delays vehicles getting repaired in a timely manner and results in customers getting upset with the shop. We need to regain control of our industry and not let insurance companies dictate how vehicles should be repaired to improve turn-around time and provide a better customer experience.” When asked how to attract more young people to the industry, Cambern and Hanberry agreed that money talks. According to Cambern, “People my age are going to college or just getting out, and paying for their student debt is the biggest thing on their mind. Also, tools are very expensive, and you can’t make money without them. I think more people would be interested in this industry if employers offered a $2,000 voucher for tools that could be repaid slowly through monthly payments.” Hanberry added, “I understand starting at the bottom, but as a technician gets better and learns more, their pay should increase. More people are flocking to work on computers, and few people see manual labor as rewarding.” Jeske believes the industry needs to work on attracting fresh blood at a younger age. “Most people my age have already decided what they want to do in life. We need to get kids interested in cars and ensure high schools keep having shop programs – that’s how I got into this industry,” he said. A big deterrent to pursuing a career in the industry is the view that more experienced professionals have of the younger generation. Hanberry shared, “Being a millennial, we have a really bad reputation of being lazy and not wanting to work for our money. That’s how the older generation sees us, but if they’d sit down and work with us,
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
they’d realize we are driven by hard work and being rewarded for that work.” Casillas-Mendoza believes the older generation should recognize “that we have a fresh outlook on the industry, and we’re ready to work hard and grow in experience to become the next great generation of technicians. One major thing older guys do is underestimate the new generation techs. They think we don’t have the drive it takes to succeed in this industry, but I work hard to achieve OE-approved repairs and prove to myself and others that our generation of technicians can do as well or better than the older generation of industry veterans.” According to Grant, “The biggest thing the older generation should know about us is that there are lots of us out here with a thirst for knowledge who want to get dirty, work hard and learn. Some of us might take a little more time than others to learn, but most of us have that drive, thirst and hunger for more knowledge so we can become the best we can be.”
Cambern hopes that established industry professionals will also recognize her generation’s need for advancement. “We’re capable of doing things they’ve been doing for a long time,” she said. “Many places that hire people from my generation often lose them because there’s no room for advancement. It seems that younger technicians are only promoted when an older guy retires or passes away. My generation likes to feel wanted and important; they strive to do their best when they feel like they have purpose, but if their job doesn’t provide those things and offers no room for advancement, they’ll move on because there’s no reason to stay in a job that gives them no purpose.” Brandon Eckenrode, director of development for the Collision Repair Education Foundation, agrees that the industry needs to focus on getting students involved in collision repair and showcasing the industry in a better light at middle school and high school levels. “The industry needs to take on See Next Generation, Page 41
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Continued from Cover
Price-Fixing Claims
action. The body shops in the MDL are in Kentucky, Missouri, New Jersey and Virginia. Although there are certain variations in the individual complaints, in general they allege the insurers have all agreed to follow a market rate established by State Farm, which is accused of using a method of ranking body shops by criteria, including number of employees, number of work bays and area density, which it then “manipulates” as it solicits businesses to be part of its direct repair program. If a body shop in the program tries to charge rates higher than those demanded by State Farm, they are met with an “ongoing pattern of coercion and implied threats” to enforce compliance, according to court filings. Shops not complying are dropped from the program, and customers are “steered” away by the insurer. In 2016, the five complaints at issue were dismissed for failure to state a claim, but a split panel re-
versed that ruling last year. The majority opinion was written by Judge Charles Wilson with the concurrence of Washington Western District Judge Barbara Rothstein, sitting by designation. Judge R. Lanier Anderson dissented. According to Wilson’s opinion, the complaints claimed that State Farm and the other defendants used unverified and manipulated market rates to depress costs. “They use tactics such as requiring a body shop to repair a faulty part rather than installing a replacement part, even when the shop strongly recommends against continued use of the faulty part; requiring a shop to install a used or recycled part, even when a new part is available and would be best; and requiring a shop to offer discounts and concessions, even if doing so will force the shop to operate at a loss,” Wilson wrote. The opinion noted that claims of horizontal price fixing based on inferred agreements rather than evidence of such deals must be bolstered by other evidence, or “plus factors.” Among those cited by the plaintiffs were routine notices from the other in-
surers that they would not pay any more for repair work than State Farm paid. Anderson said in a dissent that he agreed the described behavior might be “objectionable,” but that didn’t make it illegal. “With regard to the antitrust claims,” he wrote, “binding case law indicates to me that the allegations of these complaints do not give rise to the necessary reasonable inference of agreement or conspiracy and, therefore, fail to state a claim.” On Oct. 23, attorney Mark Shurtleff represented the lead plaintiff, Quality Auto Painting Center of Roselle Inc., along with colleague John Eaves of John Arthur Eaves Law Offices in Jackson, MS. Shurtleff began by arguing that the complaining body shops were acting in the best interest of their customers, while “the others’ loyalties lie with the insurance companies.” Several judges were skeptical, with Chief Judge Ed Carnes asking how the insurance companies’ behavior in matching each others’ rates was any different from other businesses.
“It happens in about every case,” said Carnes. “One raises it, they all raise it.” Shurtleff pointed to the “uniformity of prices” demanded by the insurers, noting that uncooperative body shops were targeted for criticism and boycotted. Judge Stanley Marcus wondered whether commonplace business activity, such as an insurer recommending one shop and disclaiming another, was enough to “nudge your case across the line” into illegal price fixing. Under questioning, Shurtleff agreed that the insurers did not necessarily prohibit their policyholders from utilizing a particular shop and that simply showing that the prices demanded by State Farm and then demanded by other carriers did not necessarily prove collusion in itself. The insurers were represented by three lawyers: Alston & Bird partner Michael Kenney for State Farm, Dentons partner Rick Fenton for Allstate, and Daniel Goldfine of Lewis Roca Rothgerber Christie for GEICO. The defense lawyers argued there
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was no direct evidence showing the insurers’ alleged action constituted price-fixing and urged the judges to hew closely to the U.S. Supreme Court’s 2007 decision in Bell Atl. Corp. v. Twombly. That decision toughened the standards for bringing price-fixing claims and established that a simple showing of “parallel conduct” was, without evidence of an an actual agreement, insufficient to support such claims. “There is no way here to show that what is alleged is anti-competitive activity,” Kenney said. Copyright 2018. ALM Media Properties, LLC. All rights reserved.
Republished with permission from the Daily Report.
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Bob Carter’s Auto Body Achieves I-CAR Gold Status in IL
Bob Carter’s Auto Body, a Downers Grove, IL, auto body repair shop, is in the top 20percent of car collision shops nationwide to achieve I-CAR Gold recognition.
This third-generation, familyowned auto body repair shop has validated its commitment to staying current with the proper way to repair cars. This designation comes as the result of numerous hours of training and testing by I-CAR, the Inter-Industry Conference on Auto Collision Repair. The I-CAR Gold Designation recognizes the shop for an outstanding commitment to proper and
safe auto body repair. In the course of almost a year, each technician was required to complete and pass a minimum of six hours of classes, while four specialists took and passed up to 12 or 14 hours of class. The type and location of classes varied, with some online, some virtual, some onsite at I-CAR training headquarters and some handson. Owner Bob Carter stated, “The classroom training is just as meaningful as the hands-on training because you need to know what you are doing; you need the technical knowledge to pass the class.” By undergoing the process to achieve I-CAR Gold, everyone at the shop deepened their already considerable knowledge of how to properly repair cars, including what’s recommended and how to determine and assess damage properly. They are also required to ensure that they have the appropriate person assigned to do the repair—someone who is qualified in that particular area. Because
of this, they are required to have four specialists: structural, non-structural, refinish and an estimator who knows how to assess damage, including hidden damage. For years, Bob Carter’s Auto Body had two specialized departments: body straightening and paint-
ing. This new addition of specialized departments was made in response to rapidly changing vehicle materials and technology. This I-CAR Gold recognition is conferred for a period of one year. During each year, the technicians and specialists are required to successfully complete additional classes to remain eligible for renewal of the designation. This assures drivers that no matter how technically advanced their vehicle is, I-CAR Gold status shops can make it roadworthy and safe after an accident.
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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National Associations 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.
CCRE’s Fall Seminar & Convention Teaches Body Shop Owners Another Way of Conducting Business On Sept. 28 and 29, the Coalition for Collision Repair Excellence (CCRE) held its Fall Seminar and Convention at the Embassy Suites at the Atlanta Airport. According to CCRE President Tony Lombardozzi, “Attendees hailed from all parts of the country, including Utah and Alaska. The room held a full house of eager-to-learn collision repair shop owners and other guests who wanted to learn another way of conducting business in our industry. Many of them have realized that the present system is not working and is not a profitable method of operation.”
the group strives for collision repair excellence and the right to operate as independent business owners without being influenced by a third-party entity. The presentation then continued to explain that the industry fell into this state through apathy, poor business management skills, inappropriate behavior, insurers’ influence and the industry’s poor image. Lombardozzi emphasized that the correct alignment of contracts is a repair shop having a contract with the vehicle owner while the vehicle owner has a contract with the insurance company. When the contractual rela-
trying to solve a difficult puzzle, but the goal is attainable; if you learn the process, the pieces will all fit together. It’s time to begin making money, not just repairing vehicles!” Next, Jeff Bryant of Autosport Body Works delivered a presentation on billing paint and materials using a cost accounting program. Lombardozzi recalled, “One of the highlights of his discussion was how he discovered that almost 50 percent of the materials he was using were never being billed or accounted for. After using a P and M invoicing program, the shop’s profits on those materials being used increased substantially.” Bryant explained that paint and materials are the cost of doing business, but that any costs incurred to produce repairs should be a profit center for the business. He explained, “The rate per hour
HYUNDAI
Steve Behrndt presented on job costing during CCRE’s Fall Seminar in Atlanta
The weekend commenced with Lombardozzi’s opening introduction, followed by a presentation on how the industry ended up in its current condition, where it is today and where it is headed in the future. He shared, “We spent a great deal of time discussing how we let go of the control of our industry and how we let insurers into the repair process.” Lombardozzi’s “An Educational and Networking Experience with Industry Peers” began by focusing on who CCRE is, how it has influenced the industry and what its future plans will entail. Future plans include development of state-by-state programs to develop a systematic resolution of day-to-day business issues, a network of attorneys for assistance in business-related situations and consumer issues, continued educational opportunities for shops and the teaching of the importance of documentation as 30
tionships become a “terrible triangle,” the repairer loses. Discussing insurer interference in the collision repair industry, Lombardozzi touched on hold harmless agreements that insulate insurers from liability, specified vendor purchasing, insurer supplements, the required use of crash guides for estimating and much more, predicting that the industry is in for an even tougher future if shops do not establish contracts with the vehicle owners directly, educate consumers, and remove the insurer’s third party influence from their businesses. One way to do this is by creating necessary procedures, for which attendees discussed some options. Lombardozzi shared some rules and tips for everyone to follow to take control of their businesses. He also advised, “Stop sharing information on social media, and quit bragging and boasting online; Big Brother watches everything! We are
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
system has no real basis in reality and is not profitable, so why do we still use and accept it? Because the insurance companies like it because it benefits them. You will never win as long as you play their game by their rules on their field!” Exploring the cost of the rate per hour method, Bryant walked attendees through some financial scenarios. He shared, “The first year Autosport implemented paint and material cost accounting and proper collecting, the results were an additional $67,000 collected. A 6–8 percent increase is huge considering most shops operate on a less than 5 percent net profit margin.” Bryant shared how to account for paint and material costs in the shop, how to account for allied materials and how to assist the vehicle owner in getting reimbursed from their insurer.
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“You have to be willing to hold the customer accountable for the charges. It is hard to argue with facts, so make it factual and be willing to defend it,” he said. The last presentation on Friday was “Managing Customer Expectations: CCRE Guide to Implementation,” delivered by Shane Coker of Cokers Auto Body in Alabama. He “discussed his new method of business and front office management that has made it easier and more relaxing for him and his family while at their facility. He also discussed the many documents and forms he has created and shared those documents with all those in attendance, and additionally, word tracks and proper nomenclature of operations were discussed,” Lombardozzi shared. Coker began by asking, “What does consumer choice mean to you? What should it mean? It’s not just about choosing your shop … It’s choosing in everything!” He went on to talk about scheduling your day, refusing to negotiate with the insurance company and the value of educating the consumer. “If the customer ‘hears’ what
the insurer may say beforehand, they are prepared to counter, plus it builds credibility for the shop when the customer is prepared for insurance company attempts to steer,” he said. Moving on to integrating customer forms, Coker talked about estimate authorization, including prequalifying the customer, recording the vehicle owner’s intentions, the level of repair and how the entire conversation with the customer presents an opportunity to educate them, even if they choose not to repair at your shop. He went on to discuss disassembly, diagnosis and the repair contract, which “sets the rules of the repair and expectations for payment, protects the customer and shop and explains the contract of insurance is between the vehicle owner and insurer. The repairer is not party to the contract of insurance.” After discussing how his shop now handles interactions with insurance companies, Coker advised, “Start with one or two customers each day, not everyone. Don’t kill yourself in the beginning by trying to educate everyone that comes through the door. Learn your script; become com-
fortable with your techniques and materials, find out what your customer wants and decide if you can deliver. Long-term, we need to separate the shop from the insurance company by taking control of our shops [and] educating customers so they become advocates of our shops and make the insurance company irrelevant in our businesses.” On Saturday morning, Steve Behrndt of Crawford’s Auto Center in Pennsylvania presented “CCRE Job Costing.” Lombardozzi explained, “Steve presented a job costing program that provided the reasons for using this type of system and how it could be implemented in even the smallest size shop. Knowing your costs will allow you to know what price to sell your services for and be profitable at doing so.” Asking how shops determine hourly rates and how they know the cost of doing business, Behrndt encouraged attendees to engage in job costing on each and every repair order. “Every other industry realizes the need to job cost. Manufacturers need to calculate labor, materials, ad-
ministrative, research and development costs, as do other businesses, to find their gross profit,” he said. “Why not body shops, or do we not want to know? Not wanting to know seems to be the normal reaction in the industry because we have been programmed to accept less, but the answer is right in front of us ... If you continue to do what you’ve always done, you will always get what you always got.” He questioned how shops can know that estimating databases are accurate if they do not job cost. In order to know an employee’s actual wages, shops need to track an employee’s individual labor tasks and then calculate their true labor cost, which includes their hourly rate as well as all benefits. Discussing the difference between an estimate and a repair order, Behrndt identified an estimate as a third-party’s supplied document, which is “a guesstimate of damages sustained, a rough calculation only.” He also emphasized that automated estimating programs are only guides. “These programs do not write repair orders,” he said. “They are only guides! The first step in taking control of your business is realizing you can-
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not operate your business profitability following an estimate prepared by a third party. The second step is to eliminate the third party’s estimate from your business, and the third step is knowing you cannot use an estimate as your final invoice. You cannot job cost by estimating, and you cannot estimate your job costing.” Reiterating that it is possible to make a profit in the industry, Behrndt told attendees that it begins with job costing each and every job. He explained how to calculate a shop’s average gross profit by tracking every order, including labor tasks performed, all parts utilized in the repair, sublets, mark-ups, return items and sales tax amounts. He said, “We want to help shop owners grasp the importance of tracking expenditures and become more profitable by helping you understand the true costs within your business vs. your operating costs.” Behrndt walked through examples and calculations to show how many shops operate at a financial loss. He talked about a variety of ways to track technicians, and he concluded by elaborating on the importance of ac-
curate, complete documentation. The final presentation, “Autosport Testimony and Customer Expectations,” was delivered by Shey Knight and Bryant, who shared their experiences working for Autosport Body Works, a former DRP shop that they eventually ran according to the CCRE philosophy. Lombardozzi noted, “They discussed how to meet your customers’ expectations and listen to what they are really asking of you. They discussed repair contracts and other documents that are in use at their facility and how these documents and processes have made them a more profitable business.” Autosport Body Works became a DRP for State Farm in 2001. The business enjoyed increased business and a good partnership until State Farm started expecting more and more for less money. According to Knight, “Our ‘partnership’ with State Farm started to look more like a dictatorship, and we started to hate the business we once loved.” Despite the belief that it was the way the industry had always been,
Knight and Bryant believed there had to be a better way. So, they started talking to other shops and got involved with CCRE to create a system that worked for them. Bryant shared, “So, what’s the problem with our industry? We all have different ideas and practices, but instead of working together, we fight amongst ourselves. We are all too busy to take the time to step out of our business so we can work ON our business. We are all at different stages in running our business, but I urge you to take your first step in becoming truly independent.” Knight and Bryant then went on to explain how they run their business. Vehicle owners contract with the shop, and insurance adjusters are not permitted to enter the shop or work areas; only after a vehicle has been disassembled and moved out of the shop can an adjuster sign in to see the vehicle on their lot. They refuse to accept insurer estimates and will not negotiate with the adjusters. Rather than write estimates in rates and hours, they bill in dollars, and they will not supplement insurer estimates; however, at the vehicle
owner’s request, they will provide a Notice of Deficiencies. Knight stressed, “The key to it all is the customer! You have to become customer-focused and remove the third party influence.” The presentation continued to cover customer expectations, the customer service process, obtaining the commitment, rejecting excuses and keeping the customer involved throughout the repair process. At the end of it all, Knight and Bryant emphasized that shops can get paid, saying, “Simplify. Educate yourself. Educate the consumer. Be persistent. Be patient. Get support. Have fun.” The seminar concluded on Saturday afternoon with breakout sessions and open discussions on a variety of topics pertaining to the industry, and attendees shared their challenges and the solutions they had found. Lombardozzi stated, “Judging by the feedback from those who attended, this was a very successful event for all.” For more information on CCRE, visit theccre.com.
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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.
Why OEM Certifications Are Critical to Remain in Business For those body shops still not con“The top insurance carriers are alvinced that obtaining OEM certifica- ready looking at their DRP programs tions is a critical component for and overlaying them with certification surviving in the future, Robb Young programs as a possible way to enhance of Assured Performance said, “Change and improve the 35-year-old business is necessary if you want to capitalize model,” said Young, who predicts this on the opportunity of the future. If you will continue in the future. continue to run your business the same As a result, he stressed the imporway you have been, five years from tance of getting certified to stay comnow your business will either be dying petitive. or be out of business.” “As Benjamin Franklin said, ‘By Young recently spoke to a group failing to prepare, you are preparing to of body shop owners and managers fail,’” said Young. Currently, approximately 10 perduring the AkzoNobel Acoat Selected North American Performance Group cent of shops across the United States meeting in San Diego, CA, have some type of certificaabout the “20/20 Vision: tion. The reason, according to Leveraging Your CertificaYoung, is they lack the proper tion.” That 20/20 Vision, actools, equipment, training and cording to Young, is the facilities to repair vehicles to point in which a shop has 20 OEM specifications for proper percent growth in its busifit, finish and safety. For exness and earns a 20 percent ample, out of the 6,000 shops Robb Young pretax net profit, an achievethat have applied for certificament made possible as a result of tion through Assured Performance NetOEM certification and executing a work over the last seven years, Young well-thought-out business strategy to said only 25–30 percent could obtain become an OEM Certified Collision certification. Care provider. Young is the director “If only 10 percent of the shops of strategic accounts for Assured Per- are experts, be one of those top 10 performance, a North American adminis- cent,” Young recommended. “Be the trator of OEM certification programs, local expert of choice.” network management platforms and He encouraged shop owners and collision repair business development managers to change their current line programs and tools. of thinking, begin exploring what sets During his training session, them apart from the shop down the Young discussed the new paradigm street and utilize OEM certification as taking place in the collision repair a marketing differentiator. industry and presented the case for Young mentioned how certificacertification from both revenue and tion not only differentiates a business, expense perspectives. but how it also can help with staff reHe identified the three main fo- cruitment, marketing, how customers cuses insurance companies have choose a shop, manage the company’s today: customer satisfaction, cost re- processes and with overall quality. duction and risk mitigation. OEM certification also provides “The paradigm is shifting and quality assurance for a facility in the they [insurance companies] are look- event there is litigation. He talked ing for ways to save money and re- about the importance of having a duce risk,” said Young, who had process in place and documenting that worked in the insurance industry and process on every single repair. automotive industry for 25 years prior “If you are pulled into a court of to joining Assured Performance Net- law, you’ll need to provide substantial work this year. Rather than viewing documentation to show how you folinsurance companies as customers, he lowed OE repair procedures by a suggested looking at them as strategic trained technician, using the correct partners. parts,” Young cautioned.
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He also mentioned the OE-QC tool inside Assured Performance’s ShopOps platform that every certified shop has access to. The first step is to set up basic rules and processes. This includes listing out the tool and equipment purchases necessary for the facility, allocating money toward training, marketing and researching the cost of certification fees. “Yes, there’s a cost to getting certifications,” explained Young. “You can’t buy them. You have to qualify. It’s a value proposition that must permeate your shop’s culture.” Although there is an investment necessary for certification, it has been shown to ultimately increase the amount of business coming to your doorstep. “Most of our shops see an increase in the number of vehicles they repair if they follow the process and
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the marketing strategies laid out through the OEM Certification programs,” Young said. Young also pointed out that OEMs are proactively communicating with insurance companies and marketing to consumers through Assured Performance’s locators and marketing tools available in ShopOps. “OEMs are increasingly directing traffic to shops that are certified,” he said. “Over the last 18 months, data has shown that a shop that follows OEM procedures has a lower cycle time and higher CSI score.” Once a shop receives certification, Young reminded shop owners and managers to let everyone know about it. “When you get certified, you have the right to carry that badge,” he said. “It’s an honor, so make sure to use them on all your marketing collateral.” See OEM Certifications, Page 47
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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.
Toyota’s Training Website Offers Free Information for Collision Repairers One of the occasional frustrations I experience is seeing the industry fail to make use of some of the great (and free!) resources shops have at their disposal. When you find, for example, something is missing or seemingly inaccurate in one of the estimating systems, please take a few minutes to submit an inquiry to the Database Enhancement Gateway (www.degweb.org). In October, for example, someone questioned why there was no paint time for the fender bracket for the 2017 Toyota 4Runner in the CCC estimating system; within a day, CCC responded that it was adding two-tenths of an hour of paint time for the part. The entire industry benefits from the few minutes it took someone to submit that inquiry to the DEG. If every shop in the country were to submit even just one or two inquiries a year, the estimating sys-
tems would be far more complete and accurate. Can’t find some specific collision repair information? There’s “Ask ICAR,” an excellent, searchable database of questions submitted by your colleagues and answered by the great
sion beams or bumper reinforcements? The answers are right at “Ask I-CAR” (https://rts.i-car.com /ask-icar.html). If your question isn’t there and already answered, you can submit it to be answered for you – likely helping others as well. (Full disclosure: There’s a subscription fee for I-CAR’s Repairability Technical Support resources, but it’s waived for any shop that is regularly training with ICAR.) But perhaps the free resource I most often see shops scribbling down in their notes when I talk about it in my classes is Collision The Toyota training website offers sections of information Repair & Refinish Training both for body technicians and painters (www.crrtraining .com), folks at I-CAR. Wondering if Hyundai which is packed with tools to help or Kia has sectioning procedures, for you repair Toyota and Lexus vehicles. example? What does I-CAR say It’s not a substitute for subscribing to about repairing damaged door intru- Toyota’s repair information website,
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but it offers tons of great information. Here are just a few portions of the website that I think shops should check out: • Start with the “News” tab at the top of the homepage. On the righthand side is a list of categories of content, including “Tech TIPS.” Divided up between “Painters Corner” and “Body Corner,” the Tech TIPS offer Toyota’s information and advice for your technicians on such topics as blending, decoding paint codes and sensor recalibration. • The “Training News” category is divided up further by topics including “paint,” “body,” “electrical” and “safety.” I usually suggest starting with the “recommended procedures” topic because you’ll probably find something of immediate use and interest, such as articles on zero point calibration, calibrating bird’seye view cameras and welding tech-
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are offered online through the website, and you can also find a complete schedule for the instructor-led courses Toyota offers at its three training facilities around the country. (A fourth location is “coming soon.”) • I also encourage shops to sign up to receive Toyota’s “Collision Pros” magazine. It’s a free quarterly publication that offers repairer information on Toyota’s newest vehicles, advice on finding the Toyota information you need and tips such as how to Videos on the site offer information on such topics as order replacement vehicle scanning Toyota vehicles information labels. You can Eric Mendoza walking you through sign to receive it using this link: the proper procedures for conducting https://tinyurl.com/CollisionPros. a “health check” (a diagnostic scan) But until you receive your first copy on a Toyota vehicle. (or if you ever want to see articles • If you haven’t already done so, from previous issues), some of the use the “CR&R Info” tab from the magazine’s content is available at the home page to register for the “Se- Toyota training website. cure Personal Identification Number” (SPIN) that you need to register I commend Toyota for creating all for any of the collision repair train- the content that they have to help the ing courses Toyota offers for both industry. Now it’s up to you to put dealership and independent shop the website to use to help your techtechnicians. Many of those courses nicians and your business. niques that minimize heat-effect. • The “Video” category includes about a dozen brief videos. One of the best videos features Toyota trainer
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responsibility. Many misperceptions about collision repair can be rectified simply by making shops and schools look professional,” Eckenrode suggested. “We need to address this at a local level by getting local employers involved to demonstrate the need for these programs. Career fairs are also helpful for showing there are plenty of jobs available for those who are properly educated.” Offering an example of a local industry-led program that has effectively engaged local students, Eckenrode noted, “Since the Atlanta I-CAR Committee got involved with their local high school, they’ve raised nearly $400,000 to reinvest in the programs, and enrollment has doubled. The Committee’s involvement with local collision repair programs and students has had a drastic impact on the school.” Gerry Poirier, chair of the Atlanta I-CAR Committee, recalled, “We got involved because we
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needed to do more than just try to get more techs into the industry. We reached out to Maxwell High School of Technology around seven years ago and approached the faculty to explain our goals. They had around 20 kids in their collision program at the time. We established an Advisory Board and started fundraising for them. We’ve donated nearly $100,000 in grants, scholarships and supplies, and their program now attracts around 80 students each year.” The Committee is also involved with Athens Tech, Chattahoochee Tech, Atlanta Tech and North Georgia Tech, all of which have received CREF’s Makeover Grant. Their next phase will include a signing day program that guarantees employment to good students. Poirier said, “We want to define career paths, help the schools determine if the paths are a good fit for their students and encourage students to follow the path.”
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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
The Fabulous ‘50s and Mr. O’Donnell’s Invention The decade of the ‘50s marked a golden era in the auto industry. American servicemen were back from the war. No longer were factories turning out bombs and bullets. It was time to build some cars that were destined to be classics—and time to introduce some new automotive technology. Mainstay models like the Chevy Corvette and Ford Thunderbird were introduced. The 1957 Chevy Bel Air became the quintessential classic car. Ford’s 1957 Fairlane became forgettable. It was also the decade that saw the emergence of the import car with names like VW, Triumph and Jaguar. Typically at the time, import cars were first characterized as vehicles that were difficult to repair and difficult to find replacement parts and refinish paint for. That stigma would remain until the 1970s. In 1950, with so many people hitting the roads after being limited for so long by gas and tire rationing and simply lacking a vehicle, vehicle miles traveled and the accident rate began to soar. In 1950, 34,763 highway deaths were reported. It was time to implement some safety measures. Wide curved-glass windows, front and rear, gave drivers an extra measure of safety to avoid accidents … and offered replacement window re-installers a new challenge. The new Chevy small-block V8 gave drivers safety in the way of more power on the new interstate freeways to pass and merge into traffic. Safety became more of an issue in the 1950s for body repairers, the motoring public and civil and safety engineers. Vehicle safety meant greater use of seat belts and padded dashboards. The concept of automotive safety airbags was developed in the 1950s, but they were not very practical. To deploy an airbag, a driver or passenger had to anticipate a collision and flick the “deploy” switch in time. Most people weren’t quick enough. Roads became safer with new legislation that called for more signs and lane separation. Civil engineers
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designed roads with a crown in the middle, allowing rain water to run off to the edges, leaving a better, less slippery surface. It was also the start of the interstate highway system, which promoted driving and led to more accidents and more need for body shops.
Some key events in the 1950s would lead to the industry’s first voice in the 1960s. In June of 1955, Emil Stanley founded Stanley Publishing, which produced two magazines: Transportation Supply News and Jobber Product News. Little did he realize, he would later be an innovator in the world of publishing for the collision repair industry. In 1962, Stanley would produce the first nationally distributed collision trade publication, Auto Body News and Good Car Care magazine. Finally, the collision repair industry in general, and shops in particular, had a voice. Auto body painters finally learned that breathing toxic paint fumes all day was just not good for their lungs, and great strides were made in the world of paint application and the paint-application environment. It was around this time that German engineers developed downdraft technology for rapid air movement and adapted it for use in paint booths. During the war, people and soldiers in Germany worked underground for protection and secrecy. German engineers devised a method of pushing fresh air underground to soldiers and workers and pulled spent air out the bottom along a trench and then exhausted to the outside. When
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
the industrial infrastructure of Europe was rebuilt, engineers turned to the downdraft method. This was a technology whose time had come because painter health and safety became more of an issue in the 1950s. The downdraft system could quickly and efficiently suck fumes and spray away from the painter and into a floor trench. Fire prevention also became more of an issue, which promoted improvements in spark and fume control and spark containment within the booth. However, not every shop had a booth or saw the need for a booth. Lacquer was the paint of choice in the ‘50s, a product that dried so fast that overspray didn’t go nearly as far as enamel. Besides, lacquer needed to be polished to a shine, so a little overspray that
settled on a freshly painted surface was not a problem. In the early 1950s, the average hourly rate for collision repair was $4 to $5 per hour. The average hourly wage for a body man was $1.75 per hour. This seems ridiculous today, but back then, bread was $0.12 per loaf, and 3 pounds of hamburger cost $0.89. An article appearing in a 1969 trade journal provided one long-time shop owner’s vision of the collision business over the past 20 years. He noted that 1949–1954 were the best years of his operation. There were few shops and plenty of work. He employed 15 body men—a huge shop for the time. Intrusion from the insurance companies was almost non-existent, and in fact, the insurance appraisers seemed most amiable. See The Fabulous ‘50s, Page 55
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OEM Summit
enough to cover the [Subaru] unitsin-operation in this country, so we will have to depend quite heavily on independent collision centers.” She said the requirements for the program—including KPIs that Subaru will be monitoring—are “relatively stringent” but do not include being sponsored by a dealership. “That was a very intentional decision,” she said. “As long as there are enough units-in-operation to go around, to make it worth being a certified collision center, we want any-
Mark Zoba of Nissan North America said that about 1,900 shops are in or have applied for the automaker’s certified collision shop program, but Nissan needs only about 1,650 shops in the program
one qualified who wants to raise their hand to be able to join. We want the best people on this initiative.” She said Subaru is working to ensure its “Starlink” vehicle telematics system will be integrated with the certified shop program to “make sure our customers feel the ‘Subaru love’ when they’ve been in a crash [and] have the help and guidance they need to get their car fixed to the way it was when they bought it.” Dealership shops, she said, will not be given priority over independents in the program when customers are told about certified shops. “There’s nothing in any kind of contract that says that dealers get first dibs,” Riedel said. “We’re doing it by proximity. And in the event that you [and the dealer are] both exactly 4.125 miles from [the customer], we’ll have to figure out what that secondary plan is to break that tie. But I imagine that will be more about your KPIs rather than whether you’re a Subaru retailer or not.” To request information on the program, send an email to info@ 44
subarucertifiedcollision.com. Nissan May Cull Number of Shops in Program Mark Zoba of Nissan North America said his company’s certified collision network has grown from fewer than 500 shops in 2014 to more than 1,500 today, with about 400 more applications in process. But, he said, 1,900 shops is more than the program likely needs or will maintain. “I don’t have a specific number, but what I need for full network buildout, to make sure there’s a light in every market, is about 1,650 shops,” Zoba said. “So I’ll be culling the herd a little bit, I think over time ending up at about that 1,650 number.” What will determine which shops are added or remain on the program? Zoba said the automaker is developing scorecards to “hold shops more and more accountable” on such metrics as documented research and use of Nissan repair procedures, OEM parts usage, cycle time and CSI. “The shops that are performing, obviously we want to keep in the network,” Zoba said. “If they’re not performing, we’re probably going to ask them to step aside.” He said the automaker is working to bring more value to the program for certified shops as well, including a refined shop locator and more Nissan-specific training. Zoba said Nissan worked with trainer Mike Anderson to develop a multiday “Collision Estimating Essentials” required course—launching this month—that covers researching Nissan procedures, technical aspects of Nissan vehicles that affect estimating, identifying single-use parts, etc. Also, as of January, any Nissan paint warranty claim must be handled by a certified collision center, even if that means a non-certified Nissan dealership shop has to send the work to a certified independent shop. Volvo To Require All OEM Parts Ken Park, manager of Volvo’s certified collision program, said that one important change in the program next year involves parts. “Currently, we require 95 percent OEM parts on all repairs. In 2019, we will require 100 percent,” Park said, drawing applause from attendees at the summit. “We do not allow any aftermarket or LKQ utilization, or re-
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
conditioned parts, on our vehicles.” He said that even though salvage parts may often be “OEM,” Volvo can’t know the history or condition of the part and so can’t stand behind its use.
to expand the network to as many as 350. The goal, he said, is to have a certified shop within 10 miles of its customers, although its roadside assistance program will tow a vehicle up to 50 miles after an accident. Unlike the Subaru program, Volvo does require independent shops to be sponsored by a Volvo dealer to join the program. He said the program includes audits of participating shops. That can include pulling 10 to 20 random repair files, for example, to check to see if Volvo repair procedures were researched Ken Park (left) of Volvo and Ben Cid of Mercedes-Benz responded to questions about their companies’ certified and documented within the shop programs at the Society of Collision Repair file. Specialists’ OEM Collision Repair Technology Summit “When we look at the in Las Vegas during SEMA data on how many [shops in Park said the automaker’s re- the industry] are actually researching search has found that 85 percent of the repair procedures, it’s pretty disVolvo drivers search online for a cer- mal,” Park said. “But as shops retified facility online after an accident. search the procedures more and “That’s a huge opportunity for more, they find they get very proficient at it. Right now, I think it’s more our facilities,” he said. There are currently just over of a hurdle just because they’re not 200 Volvo-certified shops across the regularly doing it. As shops spend the United States, but Park said he hopes See OEM Summit, Page 47
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Insurer Group Hammers Claim that CA Prop 103 Saved Drivers Billions by Staff, Insurance Journal
The insurance industry is taking exception to a new report commemorating the 30th anniversary of one of California’s primary auto insurance laws that claims the law has saved drivers billions of dollars. The Consumer Federation of America reported on Oct. 17 that Proposition 103, the insurance reform law passed by California voters in 1988, has saved drivers $154 billion on their auto insurance and that the law has lowered auto liability premiums in California by 5.7 percent since 1989, even as liability premiums rose across the rest of the country. Mark Sektnan, vice president of the Property Casualty Insurers Association of America, said it wasn’t Prop 103 that saved Californians all that money but other reforms that have been made since then. “California has a healthy and competitive auto insurance market despite Prop. 103,” Sektnan said. “The exorbitant liability and auto insurance costs plaguing California in the 1980s, which drove passage of Prop 103, were reduced through court de-
cisions, stronger highway safety laws, increased seat belt usage and safer car manufacturing. “No other state has adopted the same anti-competitive, restrictive regulatory system as Prop 103 since it was enacted in 1988.” According to Sektnan, insurers routinely work to keep auto insurance costs lower by advocating for
“California has a healthy and competitive auto insurance market despite Prop. 103,” — Mark Sektnan
auto safety laws, controlling liability costs and keeping auto body repair rates under control. “It is these actions to reduce underlying costs that have provided benefits to Californians, not Prop. 103,” he added. The CFA credited the savings and stability of rates to the provisions in Prop 103 that require insurance companies to justify and get approval for rate increases, allow the public to challenge unfair insurance company practices and excessive rates, and
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that made the insurance commissioner an elected post. Californians will elect a new insurance commissioner in November. “Three decades ago, California voters joined together with tens of thousands of small donations to put Proposition 103 on the ballot and pass it, despite an unprecedented $63 million campaign of lies and deception
by the insurance industry,” Harvey Rosenfield, the author of Proposition 103 and the founder of Consumer Watchdog, said in a statement. “$154 billion is a 30th birthday gift from Prop 103 to the people of California, rewarding a battle against insurance company overcharges and abuses that has been waged every day for the last three decades.” The CFA study showed that: •
Californians have saved $154
billion, or $6 billion a year, since Prop 103 took effect in 1989 compared to what premiums would have been had they followed the national average growth rate.
• Auto insurance liability premiums, excluding comprehensive and collision coverage, went down 7 percent in California since 1989; during the same period, liability premiums went up 58.5 percent nationwide. • Californians spent just $93.48 more on auto insurance in 2015 than they did in 1989; nationwide drivers spent $352.71 more. Proposition 103 was passed by California voters on Nov. 8, 1988. Among other provisions, Prop 103 requires that auto insurance rates be based primarily on a driver’s safety record, miles driven and driving experience. It requires all automobile rating factors be approved by the California Department of Insurance and prohibits rating factors like credit score, ZIP code and race. We thank Insurance Journal for reprint permission.
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Continued from Page 44
OEM Summit
time actually doing it, it’s going to become easier and easier … One thing I have seen work very well for some shops is assigning one person in their office to [be the one] who looks up these procedures. As they get more familiar with it, it becomes easier for them to navigate through it.” Mercedes-Benz Looking To Add More Shops Ben Cid, collision business manager for Mercede-Benz, said that like Volvo, it is looking to expand its certified shop network, which currently includes about 280 shops. “There are some areas where we need coverage,” he said. “We’re looking to be somewhere around 400 to 420 shops.” He said Mercedes has begun using its roadside assistance program and other means to connect its customers with certified shops in the event of an accident, so his main focus this next year will be to build
the network as needed to accommodate that. He said unlike some of the automakers, Mercedes has defined what a “certified repair” is, and repairers on the program can offer the customer “signed proof” that they followed Mercedes repair procedures. GM Defends Required Use of Mitchell Estimating John Eck of General Motors said more than 1,000 shops have already applied for its broader collision shop certification network, which officially launches next year. He defended the program’s required use of the Mitchell International estimating system, saying GM wanted a partner that could integrate the automaker’s repair procedures into the estimating system, eliminating the shop’s need to research those procedures as a separate process. (He noted those procedures are available for all Mitchell estimating system users, not just those in the certified shop network.) He said GM also needed an estimating platform available throughout North America. (CCC Information Services’ estimat-
Luther Bloomington Subaru R TER NTE YOUR SUBARU CAR PARTS CEN
ing system, for example, is not available in Canada.) Eck said efficiencies, rebate opportunities and other benefits for certified shops can also help offset the cost of adding another estimating system if a shop wishing to join the program needs to do that. “We made a choice and a business decision, and I think every repairer is in that same position,” Eck said. “They have to make the decisions that make sense for their business.” He said GM will be measuring and scoring certified collision shops based largely on their documented research and use of those procedures, along with customer satisfaction and cycle time. John Yoswick, a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (www .CrashNetwork.com). He can be contacted by email at john@CrashNetwork .com.
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OEM Certifications
5 tips on how to market your certifications: 1) Educate the “key holders.” Consumers are the ones who have the right to choose who repairs their vehicles. “Many people won’t know the name of your shop but will recognize the name of the OEM,” Young explained. 2) List all certifications on the company website and create a landing page with information. 3) Hold an open house and invite the community to attend. 4) Use email and direct email campaigns to reach out to former customers, insurance agents and others. 5) Share information about your certifications on social media. In closing, Young recommended getting certified over the next 12 months. “Just pick one and do it,” he said. “Change your reality and become a leader in the industry. Not only does this give customers confidence that you can get the job done, but it also demonstrates you are best in class.”
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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.
5 Key Steps to Implementing Practical Production Processes “Sometimes I think pushing a repair through a collision center is like putting a bag into the security scanner at the airport,” said John Shoemaker, business development manager for BASF Automotive Refinish Coatings North America. “You put the bag on the belt and hope it comes out the other end without any complications.”
John Shoemaker, business development manager for BASF Automotive Refinish Coatings North America
Shoemaker spoke to a group of body shop owners and managers during NACE Automechanika in Atlanta, GA, this past summer about practical production processes and how critical it is to incorporate them into your business. When Shoemaker walks into a body shop, he often notices half-repaired vehicles waiting for a missed part or sublet vendor to arrive. Dur-
that the car is ready to be repaired,” he said. “There are little things you are going to need as you work on that vehicle, and if you don’t have those things, your technicians are just staying busy working on cars but not being productive—completing repairs and getting them out the door.” His advice: “Don’t put a vehicle in production until you are 100 percent sure that it’s ready to be repaired and will go through the shop without any stoppage.” Shoemaker said that careful production planning can reduce the “chaos” of collision repair. Experience has shown that it can also help with productivity and reduce cycle time, improve touch time and ultimately improve overall customer service and a shop’s key performance indicators (KPIs). Shoemaker shared five key steps to repair production planning:
1) Systematic damage appraisal inspection – itemizing all operations necessary to repair the vehicle
The first step is to review the vehicle using a damage appraisal as a guide and disassemble the car to ensure all of the damage is identified. As you disassemble the vehicle, systematically list the parts that will be needed for any identified repairs. “A certified tech and damage appraiser should identify every single step that’s involved in repairing that vehicle on day one,” said Shoemaker.
John Shoemaker stressed the importance of putting a vehicle in production when you are 100 percent sure that it’s ready to be repaired
ing his presentation, he stressed the importance of ensuring that everything needed to repair the car is organized in advance. “Just because you have an estimate and a technician doesn’t mean
48
2) Focus on all parts, materials and sublet identified on the damage appraisal
Next, Shoemaker said to determine the type of part to be used, whether it’s OEM, aftermarket or recycled. “Not only should you have the parts necessary, but you should also have everything related to replacing
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
that part,” he advised. This includes accessory items such as fasteners; decals, emblems and labels; seam sealers, corrosion protection and sound pads; and pin-
to follow OEM repair procedures every time to learn exactly what is going to be needed for the repair and to reference Standard Operating Procedures (SOPs) from companies such as 3M. Another option is asking the dealer selling the parts to obtain the OEM procedure. “If you order a roof panel from somebody, ask them to send the repair procedures with it,” he said.
3) Validate available reference materials that were used Tim Rousseau, technician, at Tom Bush Collision Center to capture repair process opin Jacksonville, FL. Credit: Tom Bush Collision Center in erations During this stage, Jacksonville, FL Shoemaker said it’s critical to stripes. He said to pay close attention capture all operations using P-Pages, to validating internal/external repairs information from ALLDATA, the such as glasswork, key coding, me- SCRS Guide to Complete Repair Planning, the vehicle manufacturer repair chanical repairs and framework. Shoemaker encouraged attendees See 5 Key Steps, Page 51
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Day Job/Night Job
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
with Ed Attanasio
Industry Veteran Creates Vintage Wine Furniture He’s got mad skills when it comes to making furniture out of wine barrels and old wood that he finds or purchases for his creations. It’s something he does when he isn’t meeting with insurance companies as the director of insurance relations for Cook’s Collision. Frank Quadrato has 37 years of experience in the collision repair industry in northern California. He credits much of what he learned about the industry to Peter Lock, the former head instructor at Contra Costa College, where he graduated in 1986. After working for several independent shops as a technician to learn every facet of the industry, Quadrato was hired by Cook’s Collision nearly 20 years ago. Seven years ago, Quadrato began building furniture and other items such as tables, fire pits, chairs and other items that are in high demand.
But his first creation was something completely different. “My son Chris (then 14) and I wanted to buy an old truck and restore it,” Quadrato said. “To raise the
Frank Quadrato’s wine furniture gets rave reviews and sells quickly
money, we designed and manufactured what we called ‘Dream Falls,’ a water feature made out of metal and slate. It was a nice father-and-son
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project and an opportunity to teach Chris how to weld. We built a few of them and took them to the Clayton Wine Festival, and they were a hit. We did it the following year and got enough money to buy the truck. After we restored it, I was looking around for other projects, and that’s why I started making things out of wood.” To make the fire pits, Quadrato takes old wine barrels and re-purposes them. They’ve become a popular item and many of Quadrato’s friends and associates now have them on their patios and in their backyards. “I cut a hole in the barrel and put a fireplace insert in there and then make a small door for the gas hookup,” he said. “Then, I take winery box tops and attach them in a ring around the outside of the fire pit. People who love wine really appreciate the skills and craftsmanship that go into these fire pits, and I think
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they also like the fact that I am taking these old barrels and making them useful again.” The wine barrel fire pits take 8-10 hours on average to make and retail for $950. Quadrato sells them at wine festivals throughout the Bay Area and gets a lot of satisfaction with great reviews for his work. In addition to designing and building a wide range of other items, he is always looking for that next project and challenge. “I’ve made thousands of things now, including large tables, candlesticks, chairs, stools, cabinets and all types of furniture using old, stressed wood,” he said. “I recently made an 8-foot table out of wood that I got from an old barn. I build everything from scratch in my garage and then we sell them at shows. I was an iron worker for three years before I became a body man, so I know how to
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build things, which allows me to creatively combine wood and metal in many of my pieces.”
Lisa (left) and Frank Quadrato work together to make tables, fire pits, chairs and other items out of old wood and wine barrels
Building furniture is a family affair at the Quadrato house in Clayton, CA, because Frank’s wife, Lisa, helps him with the staining and finish work. “She is great and has an eye for detail. We work very well together,” Quadrato said. “We always seem to have at least one project going on here. Recently, we made wine tables and chairs and sold them at four East
Bay wine shows. We have the best wine in the world right here, and people love the fact that we are re-purposing wine barrels to make furniture.” A winery in St. Helena recently contracted Quadrato to make furniture after designing and building the vineyard’s sign. “I found an old barn in Martinez, CA, and disassembled it,” he said. “Then I took the wood and made picnic tables for AXR Vineyards out of it. I love using old and distressed wood because it has a distinct look and character.” Quadrato just turned 59. When the time comes for him to step down at Cook’s Collision, he knows that building his furniture will play a major role in his retirement. “It keeps me busy, and I like making things after fixing things for so many years. When I get a positive response from someone for a fire pit or a table, for example, it’s very satisfying and fulfilling,” he said.
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5 Key Steps
specifications and/or refinish procedures. “Make sure you have them attached to your damage appraisal,” Shoemaker recommended. “They should be systematically documented and work hand-in-hand so there are no questions down the line.” He said this outlines to everyone involved exactly what steps have to be taken for the repair and the process that is going to be used. The information can also be helpful in the event of litigation.
4) Review damage appraisal with paint team leader to validate refinish requirements The reason this is important, according to Shoemaker, is that team members often have differing opinions about what needs to be painted and how it should be accomplished. This may be related to paint code, validating blend areas and verifying the refinish process—whether it’s single
stage, base/clear, tri-stage, four-stage or matte finish. By having everyone involved from the onset, Shoemaker said, you’re closing the loop and ensuring all employees have a voice at the beginning of the process. “Using this method, you’re able to confirm everything that has to happen on that repair the first day of the repair,” he said. “This allows everything to move steadily through the shop without stopping.” 5) Validate with the production coordinator, parts specialist and lead body technician
After the repair has been validated, Shoemaker said it’s time to develop a repair plan for the management system. “Having an accurate repair plan will help you create timelines for each step, monitor the progression and allow all involved to understand what needs to be done,” he said. “Having a solid repair production plan will help keep your customers properly informed and is the first step in having them completely satisfied when the job is complete.”
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National Associations 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.
Dave Luehr Teaches WIN Members How To Develop a WINner’s Mindset On Wednesday, Oct. 10, the Women’s Industry Network (WIN®) hosted a webinar featuring Dave Luehr of Elite Body Shop Solutions, who presented “Developing a WINner’s Mindset (Pun Intended!).” “Right now is the greatest time to be in the collision repair business, but only for those with the right mindset,” he said. “But, what IS the right mindset? “When I think of the word ‘limitless,’ I’m immediately inspired by the beauty of human potential. It makes me think of a childlike quality that dares to dream big and live life to the fullest. No one said this business was going to be easy. Many people fail, but it’s those people who honor the struggle and dig deep to find the great opportunities that exist within the difficulties—it’s these people who are creating a life of their choosing. “Building a great business is an art. In the collision industry, great men and women have created great businesses through the power of their imaginations. I believe everyone has the power to create greatness. It has very little to do with a person’s situation in life compared to their attitude toward their situation. Bring back that child within you. I can promise you it won’t be easy, but nothing worthwhile ever is. With a structured approach and a childlike imagination, you truly are limitless.” Luehr welcomed attendees, thanked WIN for the forum and encouraged any non-members to join the organization. Beginning his presentation, he noted that there are two fundamental problems in the industry: Everyone seems to be looking for a magic solution to their problems instead of looking within themselves, and many people believe they can have anything they want in life as long as they work hard enough. “Hard work does not make you successful… working hard on the right things makes you successful!” he said. After sharing a story about his background in the industry, Luehr
52
talked about losing his first business after his mother’s death and how it shook his confidence for many years. He recalled difficult times in the industry during the first decade of the new millennium and noticing so many people who were succeeding. This led to him starting Elite Body Shop Solutions.
However, he said, “I still had to get out of my way. The only limitations that are keeping you from where you want to get in life are the ones you’re creating yourself. That was one of the greatest things to ever happen to me.” He identified four factors that contribute to developing a winner’s mindset: confidence, challenging limiting beliefs, personal responsibility, and finding the positive within the negative. Confidence “truly is at the foundation of whether we’re going to be successful or not. If you think you can be successful, you can because we get what we think in life, and confidence is at the very core of that,” Luehr emphasized. “You can have doubts and still have confidence that you’ll succeed. It’s really what you do in those moments of doubt that makes all the difference between success and failure. Why not you?” Confidence is only gained by doing—especially actions taken outside your comfort zone. Being afraid does not eliminate courage as long as you do it anyway. Explaining the confidence-competence loop, Luehr noted, “Every time you take an action that you’re a little fearful of, you become a little more competent. You know that you can do it and become better each time you do it. Don’t let your lack of knowledge about a certain subject
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
keep you from starting.” The second step to developing a winning mindset is to challenge limiting beliefs. Luehr observed that there are a lot of old beliefs that keep people stuck. “The majority of beliefs in our brains today were in place by the time we were 4 years old, so there could be faulty information in there. But many of us identify so much with our beliefs that it becomes part of who we are and can be difficult for people to swallow. Challenging your belief system does not make you wishy-washy; it makes you wise!” Luehr said. Moving on to personal responsibility, Luehr shared three tips for discovering your best self: exploring outside your current “truth,” determining the origin of those truths, and
avoiding the status quo. “Real freedom comes when you’re being your best authentic self,” Luehr encouraged. “Take responsibility for your successes and your failures.” He then discussed three types of people: Card players, who play the hand they’ve been dealt; card haters, who act like victims and complain; and card fighters, who “make it their personal mission to go out and fight what’s wrong in this world.” Finding the positive within the negative is the final step to developing a winning mindset. This means finding the opportunity in each chapter. “Every time something bad happens, we have to find the good hidden in it,” Luehr advised. “Failing is OK, but fail brilliantly! Once you know it’s okay to fail, that changes See WINner’s Mindset, Page 55
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920-468-3658 920-468-3673 Fax M-F 7 am - 7 pm Sat 7 am - 2 pm parts@gandrud.com
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
53
National News
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
with Ed Attanasio
PPG’s Jennifer Jarzembowski Discusses Impact of OEM Certifications National Account Manager, OEM After Sales Jennifer Jarzembowski from PPG advises shops all over the country on the advantages of attaining OEM certifications and helps shops obtain them.
Q:
nies?
Are OEM certifications important to insurance compa-
mand marketing, smart phone apps and the increased use of vehicle telematics give the OEM the advantage of the first notice of loss. OEM certification training, equipment and tooling can be costly. If a shop is dedicated enough to meet the requirements of a certification, a consumer can be reassured that the facility is doing safe and proper repairs.
OEM certification continues How can OEM certifications to grow, and existing prostrengthen shops’ relationships grams are becoming more and more with their DRPs? refined. The availability and required OEM certification can make a use of repair procedures and position facility less dependent on the statements make certified shops the authority on collision repair. The in- insurer. It can help leverage the insurance company authority is be- surer to allow the facility to repair coming less of a factor and there is the vehicle to the manufacturer standards (and in a timely manmore emphasis on the repair ner), allowing them to use method, OEM compliance OEM parts and get paid a and liability exposure rather fair rate. While a certified than alternative parts usage facility may still need to exand severity. I believe that plain the necessary costs to consistency in estimates and insurers, automakers are safe and proper repairs is bedoing a good job of educatcoming important to the inPPG’s National ing and keeping the insurers surance companies, and Account Manager, OEM After Sales informed regarding their challenging certified shops is therefore decreasing. They Jennifer Jarzem- certification requirements. bowski said that are showing interest in ac- OEM certifications Customers are being influcessing network manage- are an investment enced by the automakers to that many shops go to a certified facility, and ment systems that provide certified shop information might have to make they are much less likely (if and KPIs. Knowing who the to stay competitive at all) to be influenced to certified facilities are and knowing take the vehicle to a shop that is not the quality of their repairs makes it certified. Their trust has already been more likely that they will send work attained. Emerging legislation in several states will also drive consumer to them. consent and appropriate repair rates. Why are OEM certifications important to consumers? Shouldn’t a shop be discerning when pursuing an OE cerOEMs, consumer advocacy tification? organizations and media are When pursuing an OEM cereducating consumers on the importification, many factors need tance of identifying shops that meet OEM requirements, can assure a to be considered. It is absolutely esproper and safe repair of their vehicle sential that diligent research is done and will restore them to pre-collision, to ensure that there will be a return factory condition. OEMs are giving on investment (ROI). While I believe vehicle owners the level of confi- that ultimately it is an investment dence that they have identified quality that many shops might have to make shops at the point of vehicle purchase. to compete long-term, the proper exCertified shop locator sites, on-de- ecution of choosing a particular pro-
A:
Q: A:
Q: A:
Q: A:
54
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
gram or programs is essential. Some major points to consider are vehicles in operation in their market, relationships with the area dealers, and initial and ongoing investment for equipment and training (and budgeting for it) based on the program requirements and ROI, etc.
them make decisions in the process. Interested facilities should express interest with their local PPG territory manager, and we will work with that shop on a case-by-case basis to help them make informed decisions in pursuing certifications.
What role do you play at PPG in helping shops get signed up for OE certifications? What’s the process?
You recently made an offer at a CAA meeting that you would help shops in the certification process, even if they don’t use PPG. Is that true and if so, why?
A:
A:
Q:
Our OEM after sales team in PPG automotive refinish works with the manufacturers and their administrators regarding the growth of their programs, and we remain educated on the program requirements. While it is the responsibility of the shops to pursue certification, we can certainly provide them with the knowledge and tools to help
Q:
PPG is dedicated to working creatively to help solve not only our customers’ challenges, but those of our industry as a whole. We welcome the opportunity to collaborate with all shops where it makes sense, as well as all other industry associations in the interest of, and as an end goal of, producing a safe and See Jennifer Jarzembowski, Page 56
Audi dealers strive to make you an Audi Genuine Parts fan.
Illinois
South Dakota
Audi Exchange
Audi Sioux Falls
Highland Park 847.432.5880 847.432.5708 Fax
Sioux Falls 888.540.6399 605.221.0550 Fax
gorejel@audiexchange.com
parts@grahamauto.com
Missouri
Ohio
Kansas City Audi
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Kansas City 866.949.9500 Toll Free 816.941.4969 Direct 816.942.3156 Fax M-F 7am-6pm Sat 8am-5pm
Middleburg Heights 888.278.2400 216.898.5630 440.243.2795 Fax M-F 7:30am-6pm
cfowles@molleaudi.com
wholesaleparts@sunnysideauto.com
Continued from Page 42
The Fabulous ‘50s
As the industry as we know it today was taking shape, it was composed primarily of skilled auto body craftsmen—artisans who knew how to work metal. However, many lacked the leadership and professional skills to deal with the more business-savvy insurance companies and the changing landscape. They were craftsmen, not businessmen. According to a report done in 1969, almost 10 percent of those in business during the 1949–1954 period refused to change with the times and the changing industry dynamics. Instead of changing, they became bitter and frustrated, allowing the industry to be permeated with low-paying or no-paying work. This later paved the way for early industry leaders, such as Silvie Licetra, to conduct business training courses in the early 1960s, which became popular. Then, according to the industry veteran, from 1954–1959 things started to go downhill. Insurance
companies found it difficult to find good appraisers. They were illtrained and not experienced. They became argumentative. Out of frustration, this was the period auto body associations, some around since the early 1940s, began to be more prevalent. The only problem was that those shop owners in the association would say one thing at the association meetings and do the opposite at their shops the very next day. Shop owners began to ask insurance companies to be their “shop of choice,” setting the stage for the future DRP concept. As an incentive to the insurance companies, some shops offered a 10 percent parts discount on claims. However, many made the offer “tongue-in-cheek,” knowing that they would increase the labor charges to make up for it. Thus, the insurance company demand for parts discounts was on. Prior to this time, body lead was required to fill small imperfections in sheet metal. The lead was sold in 1pound bars, 20 bars to a box. It was heated and turned into a molten form, then worked into a fender or other sheet metal panel with a wooden
Think Genuine Subaru Parts.
spoon. It worked pretty well. But by about 1955, health and environmental issues raised with the use of lead spelled its demise. A Mr. J.C. O’Donnell invented body filler in 1955, but it would take another year before it was referred to as plastic body filler. Next to the development in 1956 of acrylic lacquer by DuPont Company and Rinshed-Mason, plastic body filler was one of the most profound developments of the collision repair world in the ‘50s. It didn’t take long before many simply referred to all plastic fillers by one of its most popular trade names: bondo. Plastic fillers were easier to use, enabling the shop to make a cheap and fast repair. The problem was, however, that early plastic fillers sometimes fell off the car, prompting either a redo of the repair or a very angry customer—or both. O’Donnell went on to found the Unican company on July 31, 1962, which is wellknown for its variety of body filler products. By the mid-1950s, the collision repair industry as we know it today was in full swing. MINNESOTA
Luther Bloomington Subaru Bloomington
(800) 451-5078
Direct (952) 887-0600
(952) 881-1787 Fax Mon 6:30-6; Tue-Fri 6:30-9; Sat 8-4 parts@bloomingtonsubaru.com www.bloomingtonsubaru.com OHIO
Brunswick Subaru Brunswick
Toll Free (888) 460-7080 Direct (330) 460-7080
(330) 460-7082 Fax Mon-Fri 8-6; Sat 8-4 www.brunswickautomart.com
We’re focused on getting you the Genuine Subaru Parts you need — fast and competitively priced. Put us to the test on your next Subaru repair or service job.
The following dealerships are eager to serve your needs. Call your local Subaru collision parts specialist today!
Ganley Westside Subaru North Olmsted
Toll Free (888) 850-0633 Direct (440) 788-7060
(440) 788-7085 Fax Mon-Fri 8-7 jtjoyce@ganleywestside.com
Continued from Page 52
WINner’s Mindset
everything in your life. Failure is a necessary part of the success process. You can’t have real success in your life unless you fail.” Concluding the webinar, Luehr shared a poem called “Our Deepest Fear,” written by Marianne Williamson. It begins, “Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness, that most frightens us.” Luehr reiterated, “Right now is the best time in history to be in the collision repair business!” before opening for questions from attendees. For more information on WIN, visit womensindustrynetwork.com. For more information on Luehr and Elite Body Shop Solutions, visit elitebody shopsolutions.com
www.autobodynews.com OHIO
Waikem Subaru Massillon
(800) 225-0281 x2189
(330) 478-2800 x2189 (330) 639-0140 Fax Mon 7:30-8; Tue-Fri 7:30-5:30; Sat 8-4 dandager@waikem.com www.waikem.com SOUTH DAKOTA
Courtesy Subaru Rapid City
(800) 658-3054
(605) 342-1178 Fax
Mon-Fri 7:30-5:30; Sat 8-Noon parts@courtesysubaru.com WISCONSIN
Wilde Subaru Waukesha
(800) 903-2434
(262) 544-1913 Fax Mon-Thu 7-7; Fri 7-5; Sat 8-4 parts@gowilde.com www.wildesubaru.com
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
55
CARSTAR Weighs in on the Hefty Costs of Hazardous Deer
Many deer find their way onto highways and into suburban neighborhoods during the autumn season. Both parties lose when car and deer collide, but a measure of defensive driving can reduce the risks. According to the Insurance Information Institute, during deer season, which generally runs from October through December, there is a dramatic increase in the movement
of the deer population. CARSTAR says that while the frequency of deer-related accidents is decreasing, the severity of these accidents is increasing because modern vehicles are filled with advanced technologies that need repairing. One out of 167 drivers will have a claim from a deer, elk, moose or caribou collision in 2018, according to State Farm, which is an improvement from the 2017 odds of 1 in 162. Those odds more than double during October, November and December, and there is an increased risk around dawn and dusk. State Farm estimates that Continued from Page 54
Jennifer Jarzembowski
quality repair for the consumer.
Jennifer Jarzembowski joined PPG automotive refinish in May 2018 as national account manager, OEM after sales. She works with OEMs on the growth of their certified collision programs, PPG product approvals and identifying opportunities for their field sales organization. Jarzembowski has more than 10 years of experience working with facilities on a national level and assisting them with achieving OEM certifications. She brings a wealth of knowledge in certification requirements, including equipment and training. Her goal at PPG is to help bring value and profitability to already-certified shops and those seek-
Don’t Miss the Weekly Industry NEWS Your Shop Needs. Sign Up Free Today! 56
animal collisions dropped slightly to 1.33 million between July 1, 2017 and June 30, 2018, compared with 1.34 million for the same period the previous year. “Deer-related accidents remain a tremendous risk, particularly in southern, midwestern and rural areas,” said Dean Fisher, chief operating officer for CARSTAR. “Deer-related accidents can be costly—nearly 70 percent of CARSTAR franchise partners estimate that the average cost of a deer-related collision repair is between $2,500 and $4,999, while many repairs are between $5,000 and $10,000. Most deer-related accidents involve front-end damage that can elevate the repair costs because you have to replace windshields, bumpers, front headlamps and all related advanced safety technology housed in these areas.” Drive Defensively to Avoid Deer Dangers This year, some 1.33 million drivers will hit a deer, and November is the peak month for deer-related accidents. But drivers can avoid an accident with a buck by following some smart driving tips this fall and winter.
ing certification. Prior to joining PPG, Jarzembowski worked with Assured Performance Network (APN) as director of certification integration and OEM account manager. Before APN, she spent 24 years with Axalta Coating Systems as a national account manager. In this role, she was responsible for various aftermarket collision programs, including building and maintaining program materials and managing a network of inspectors. She also held positions in managing color & technical service, regulatory, health & safety and product management. Her career also includes eight years as a Russian linguist and U.S. Naval petty officer, as well as four years as a licensed Part 135 and 121 aircraft dispatcher. She studied languages and world business at Eastern Michigan University.
Early morning and dusk are the worst times for deer accidents, as visibility is limited and deer are frequently on the move. It is important to drive defensively and anticipate the potential for deer in the road. The auto experts at CARSTAR, who repair thousands of vehicles each year from deer-related accidents, offer the following tips to reduce the deer danger: • Use extra caution at dawn and dusk as well as around golf courses, fields and wooded areas. • Remember that deer travel in packs—if you spot one, there are likely more behind it.
• Do not swerve to avoid striking a deer, as that increases the risk of hitting another vehicle or losing control of the car.
• If there is no opposing traffic, use high beams at night to better illuminate deer. • Do not rely on devices such as deer whistles to scare off animals. •
If a deer remains on the high-
www.autobodynews.com
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
• If an accident with a deer does occur, it pays to be protected. Many drivers do not realize that carrying only collision coverage does not cover damage from a deer accident, leaving them with a damaged vehicle and a large repair bill. To cover any potential damage, drivers should carry comprehensive insurance that covers such collisions. For those who drive an older vehicle and feel their cars aren’t worth the cost of the insurance, it is smart to keep an “accident fund” if something does occur.
If a driver ends up stranded with a damaged vehicle after a deer collision, they can always call 1-800CARSTAR. CARSTAR will send a tow truck, call the driver’s insurance company, arrange for a rental car and repair the vehicle. For more information and store locations, visit www .CARSTAR.com.
Genuine Nissan Parts
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NISSAN
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INFINITI ILLINOIS
INFINITI of Naperville Naperville
AUTOBODY
way after you strike it, report the incident to the game commission or a local law enforcement agency, as it can pose a danger to other motorists. If the deer is still alive, do not go near it because a wild animal with sharp hooves can inflict injuries.
866-874-6346
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MICHIGAN Kia of Lansing Lansing
(517) 393-5700 (517) 393-6767 Fax
Lou Fusz Kia
Akron
St. Louis
ILLINOIS
(314) 595-4942 Fax
M, W, F 7am-8pm; Tu, Th 7am-6pm Sat 7:30am-4pm fuszkiaparts@fusz.com www.kia.fusz.com
Napleton’s Mid Rivers Kia St. Peters
Hawkinson Kia Matteson
(708) 720-8972 (708) 720-0657 Fax
M, W, F 6am-5pm Tu, Th 6am-7pm; Sat 8am-2pm jmihas@hawkinsonnissankia.com www.hawkinsonnissan.com/ez-parts
Raymond Kia Antioch
(847) 395-3600 (847) 838-7997 Fax
M-F 7am-6pm; Sat 7am-2pm kweber@raymondchevrolet.com
IOWA
Kia of Des Moines Des Moines
(515) 727-1815 (515) 309-1412 Fax
M-F 7am-6pm; Sat 7:30am-4:30pm parts@kiadm.com www.kiadm.com
KANSAS Midwest Kia Wichita
(316) 652-2960 (316) 652-2992 Fax
M-F 8am-6pm; Sat 8am-2pm wsturm@midwestkia.com
(440) 934-5247 Fax
M-F 7:30am-6pm bgordon@gomontrose.com www.montrosekia.com
(877) 221-4151
*Genuine Kia replacement parts (except battery) sold by Authorized Kia Dealer under warranty are covered for the greater of (1) the duration of the New Vehicle Limited Warranty or (2) the first 12 months from the date of installation or 12,000 miles, whichever comes first. Labor charges not included when not installed by an Authorized Kia Dealer. Warranty is limited. See Kia’s Replacement Parts and Accessories Limited Warranty for further details.
Sheffield
(440) 934-6699
M-F 7:30am-6pm mattr@lansingisyoung.com www.kiaoflansing.com
MISSOURI
From headlights to tail lights, bumpers to fenders and hoods, there is no substitute for genuine. The only way to assure that you are getting Genuine Kia parts, backed by the Kia Warranty, is to order them from your local Authorized Kia Dealer. Contact your local Kia dealer for assistance and delivery of the parts you need.
OHIO
Montrose Kia
(888) 816-9729 (636) 926-0683 Fax
M-F 7am-6pm; Sat 7am-3pm bprinster@napleton.com pschnare@napleton.com www.midriverskia.com
Suntrup Kia St. Louis
(800) 727-8496 (314) 815-3060 Fax
M-F 7am-5pm www.suntrupkiasouth.com
NO. DAKOTA Kia of Fargo Fargo
(800) 728-7601 (701) 282-5924 Fax
M-F 7am-5:30pm; Sat 8am-5pm
VanDevere Kia
(330) 836-4064 (330) 836-4074 Fax
M-F 7:30am-5:30pm chevyparts@vandevere.com www.vandevere.com
Waikem Kia Massillon
(800) 225-0281 x1447 (330) 478-0900 (330) 478-9957 Fax M 7:30am - 8pm Tu-F 7:30am - 5:30pm Sat 8am - 4pm mmiller@waikem.com www.waikem.com
WISCONSIN Bergstrom Kia of Appleton Appleton
(920) 993-3000 (920) 749-1588 Fax
M, Tu, Th, F 7am-6pm; W 7am-8pm; Sat 8am-5pm anoldner@bergstromauto.com www.bergstromkiaappleton.com
Russ Darrow Kia of Waukesha Waukesha
(262) 896-1151 (262) 896-1188 Fax
Jeff.krueger@russdarrow.com www.kiaofwaukesha.com
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
57
AutoNation Embarks on New Parts Path by Gary Ledoux
The current dynamic for the collision repair industry is that parts have always been sourced from separate OEM & aftermarket providers. As a result of growing utilization of aftermarket parts, franchise dealers may have seen erosion of their OEM parts sales. “When an OE dealer’s parts department receives a collision parts order from a body shop, they only get 50 to 60 percent of what that car needs for replacement parts. The rest of the order, and the parts profit it generates, goes to the aftermarket or salvage,” said Tom Calloway, Vice President of Customer Care and Corporate Operations for AutoNation in a recent interview with Autobody News. AutoNation wanted to capture a greater share of the wholesale collision parts market, so it embarked with a new vision and business model to serve the collision repair industry. The goal: leverage its scale and expertise to deepen its market share by complementing the current OEM collision parts offering with aftermarket parts as well.
So in 2017, AutoNation set off to build the structure for its new offering – from sourcing and transporting parts from overseas to expanding its current wholesale distribution network to serve its cus-
Tom Calloway, Vice President of Customer Care and Corporate Operations for AutoNation
tomers. In keeping with the moniker of America’s largest automotive retailer, AutoNation continued to put
its scale to work in expanding its parts network. “With over 300 locations nationwide, representing most major brands, we were well positioned to take the business to the next level when we expanded both our distribution network and our parts offering,” Calloway said. In early 2018, AutoNation launched its expanded aftermarket parts distribution network in Washington, Northern California, Phoenix, Memphis, Dallas-Fort Worth and Orlando, with more markets scheduled for 2019. They also integrated into the industry’s top electronic ordering platforms. Along with the two-pronged offering of OE and aftermarket parts, AutoNation is supporting the new offering with single, consolidated deliveries. Although there are myriad logistics playing out behind the scenes, they will all be invisible to the shop ordering the parts. All they will see is the AutoNation truck delivering both their OE and aftermarket parts. Calloway explained that this will have a positive effect on a shop’s cycle time and margin improvement. Calloway commented that the
expanded OE/aftermarket parts solution has also helped its own collision network become more efficient. “One of our biggest customers to benefit from this is our own network of 80+ collision shops.” How has the industry embraced the new solution? Calloway explained that its own AutoNation collision centers, as well as current customers, like the new consolidated concept of OE and aftermarket, and early adoption is already demonstrating tangible benefits. Customers now reap the benefit of a new solution in the marketplace, supported by a backbone of experienced parts experts providing worldclass service. Calloway explained AutoNation’s reason for making this pioneering change. “With the marriage of OE and now aftermarket parts, we feel like we’ve created a winning combination for our customers, from MSOs to independents. By offering this new solution in the market, our network is creating efficiencies for doing business and enabling customers to lower costs. When they know ‘One Call Does it All,’ that’s a powerful partnership.”
AutoNation Launches New Theme Vehicle for Breast Cancer Awareness by Gary Ledoux
Every two minutes, a woman is diagnosed with breast cancer. AutoNation has a deep commitment through its Drive Pink initiative, and is committed to drive out cancer, through awareness and critical research. AutoNation is a proud supporter of the Breast Cancer Re-
Robin Adkison, also known as “Robin1000,” a street artisan turned custom vehicle painter, stands with this year’s AutoNation theme truck.
search Foundation and other cancer-related charities. Since 2013, AutoNation has raised and donated over $16 million to fund cancer research and treatment from coast to 58
coast. This year’s Drive Pink themed vehicle is a new Toyota 4Runner painted with … of all things … spray cans. Debuting such a vehicle at SEMA seems almost odd in a world of high-quality paint and exotic application processes. But you can’t argue with the results. Texasbased Robin Adkison, better known in the world of street artisans as “Robin1000,” was busy painting street murals on sidewalks and on the sides of buildings when he was selected by celebrity and vehicle builder/designer Jeff Allen with Flat 12 Gallery to paint AutoNation’s themed vehicle. “I’ve been painting and drawing since I was a little kid,” said Adkison. “I’ve used pencils, oil paints on canvas and spray cans on brick and concrete, but this was the first time using ‘rattle-cans’ on steel.” The vehicle was completely stripped of its finish, then, over the course of three days, Adkison went to town with spray cans. “[There’s] a fine line between graffiti and art,” Adkison said. “This is definitely art.”
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
OHIO
SOUTH DAKOTA
Brunswick Volkswagen Brunswick
Graham Automotive Sioux Falls
Toll Free: 330-460-7080
888-540-6399
Direct: 330-460-7080 Fax: 330-460-7082 M-F 8am-6pm; Sat 8am-4pm
Fax: 605-221-0550
www.brunswickautomart.com
parts@grahamauto.com
Fake Recall Notices Get Car Dealers in Trouble With FTC by David A. Wood, CarComplaints.com
We thank CarComplaints.com for reprint permission.
Fake recall notices have caused DCarea car dealers to settle a Federal Trade Commission (FTC) complaint that accuses the dealerships of mailing more than 21,000 fake “urgent recall” notices to consumers in 2015 and 2017. According to the FTC, the dealers and a marketing firm agreed to settle the deceptive advertising charges that allege the notices were mailed to convince car owners to visit the dealerships. The car dealers do business as Passport Toyota, Passport Nissan of Alexandria, VA, and Passport Nissan of Marlow Heights, MD. The marketing company, Temecula Equity Group, LLC, does business as Overflowworks.com and is located in California. Considering the huge number of vehicles on the roads that have open (unrepaired) recalls, the government has taken measures to combat fake recall notices sent by companies to convince owners to visit dealerships.
The National Highway Traffic Safety Administration (NHTSA) estimates 30 percent of drivers completely ignore recall notices, even if the safety defects could cost lives. In 2014, NHTSA announced that all manufacturers must use distinctive labels for recall mailings to consumers, using white, uppercase letters against a red background.
According to NHTSA, the recall label is intended to “help protect consumers from misleading sales and marketing materials that mimic, in their wording and presentation, legitimate safety recall alerts from manufacturers that can lead owners to purchase costly products and services that have no connection to a le-
Original Thought #78
YOU ONLY GET ONE CHANCE AT THE FIRST REPAIR. ILLINOIS
Laurel BMW of Westmont
Westmont 630-230-2890 Direct Wholesale M-F 7am-6pm Sat 8am-3pm www.laurelbmw.com
Patrick BMW
Schaumburg 847-605-4055 847-619-4511 Fax M-Sat 8am-5pm
INDIANA
Basney BMW
South Bend 800-274-8504 574-273-5075 M-F 7:30am-6pm parts@basneyimports.com www.basneybmw.com
KENTUCKY
BMW of Louisville
Louisville 502-499-4552 502-499-4476 Fax M-Sat 8am-5pm bmwparts@louisvillebmw.com
unrepaired recalls. In addition, the FTC says some of those car owners paid for repairs that had nothing to do with recalls. While the FTC alleges the notices were mailed to increase business at the service departments of the dealerships, Passport claims the fake recall notices were mailed in an attempt to “correct unrepaired vehicles subject to a recall and it was not our intention to mislead anyone.” But although Passport says it mailed the notices to “correct unrepaired vehicles subject to a recall,” the company also says “open recalls were unavailable to Passport or other dealerships.” Passport further says the language used on the fake recall notices “was not created by Passport—it was originated by a California company unrelated to our business.” By agreeing to settle the allegations, Passport and Temecula Equity Group are “permanently prohibited from misrepresenting, expressly or by implication: 1) whether any motor vehicle is subject to an open safety recall or service campaign, or 2) certain other material facts about motor vehicles.”
gitimate safety recall.” However, the FTC says the DCarea car dealers sent fake recall notices that used the same color scheme as official notices sent by automakers. The government says the vast majority of vehicles covered by the fake recall notices did not have open recalls, even though the notices said, “URGENT RECALL NOTICE” in large, boldfaced uppercase letters. On the reverse side, it said, “VEHICLE RECALL NOTICE” and “WARNING” in large red and black boldfaced, uppercase letters on a white background. The FTC complaint alleges Passport first sent about 7,000 Toyota fake recall notices in 2015, and then the dealers sent about 14,000 notices to Nissan customers in June 2017. Those fake notices were mailed even though numerous complaints were made after the first notices were sent in 2015. The government says hundreds of vehicle owners contacted the Passport dealerships and were told the cars needed to be brought to the dealers to learn whether the cars had
MICHIGAN
• Original BMW Parts & Accessories
Erhard BMW of Bloomfield
Bloomfield Hills 800-626-9787 248-642-0443 www.erhardbmw.com
Erhard BMW of Farmington Hills Farmington Hills 888-834-8635 248-699-3003
www.erhardbmwoffarmingtonhills.com
BMW of Okemos
Okemos 517-853-2600 517-853-2661 Fax M-F 7:30am-6pm mbedard@lovewhatyoudrive.com www.okemosautocollection.com
MISSOURI
Autohaus BMW
St. Louis 314-880-8426 314-880-8428 M-F 7am-6pm brian.fischer@bmwautohaus.com
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
59
Why Are Thieves Stealing Airbags From New Honda Civics and Accords? by Jay Traugott, CarBuzz
If you own a late-model Honda Civic or Accord, or any relatively new Honda or Acura model, you might want to pay attention to this. Perhaps it’s already too late for some. According to USA Today, criminals across the U.S. have been stealing airbags out of late-model Hondas to resell on the black market, be it online or to shady local repair shops. Both the driver and front passenger airbags are being targeted. Law enforcement agencies in cities such as New York, Miami and the Washington DC area have noticed an increased number of Honda airbag thefts lately. However, this is also a nationwide issue. Unfortunately, this type of theft is not easy to track because both the FBI and the National Highway Traffic Safety Administration don’t track airbag theft. The National Insurance Crime Bureau estimates about 50,000 airbags are stolen every year. However, the NICB doesn’t track specific trends, such as Hondas specifically being targeted for their airbags, so it’s Continued from Page 15
Legislative Roundup
they went to get them out, it cost $2,000 more, which was ridiculous. We had some concerns with the bill and wanted some amendments made to it, so we were neutral on it, but it did pass.” SB 993 (Hertzberg). Sales Tax: Services. Oppose. This bill is intended to make major tax reforms, including expanding the sales tax to services. A series of hearings on the measure are being planned that will include experts to do a “deeper dive” into the issue of taxing services. Status: The bill is dead for the year but expected to be reintroduced next year. “This one comes back every year, and we continue to oppose it,” Molodanof said. “It died again, but it will be coming back and we will fight it again. If this passed, it would definitely hurt the collision repair industry. Cars that are now repairable would be tipped over into the total loss category and increase the cost of fixing cars significantly. In California, 60
unable to provide an answer as to why this automaker is a higher risk. In Miami-Dade County, for example, thieves stole 875 airbags last year. In 2013, only 13 airbags were stolen. In the Virginia suburbs around DC, thieves recently smashed the windows of 10 Hondas at an apart-
ment building complex for the specific purpose of stealing the airbags. Turns out, some Honda airbags can go for as much as $500 a pop at chop shops. “Because of their portability, airbags can be easily removed and installed as ‘new’ by unscrupulous collision repair shops,” the NICB said. “These dishonest operators will then charge the vehicle owner or their insurer the full price for the replacement, thus committing insurance fraud.” We thank CarBuzz for reprint permission.
we used to make things, but now we’re a service industry and they’re losing that tax base as a result. They want to recoup some of that money by taxing services like some other states do, but we fight it every year and will continue to do so.” Electronic Documents and Authorization Approved. The BAR. Support. Electronic estimate and invoice authorization regulations took effect on Sept. 13, 2018. The regulations allow for electronic estimates and authorizations, transmission and storage of repair transaction documents; reorganization of estimate, work order and invoice provisions to more closely align with automotive repair transactions; and clarification of language as necessary. “This is a good thing because now electronic signatures and other electronic communications such as text message from consumers are legal and binding and help streamline the repair process,” Molodanof said. “It’s a faster and more convenient way to get customer authorization, and that’s a big reason why CAA supported it.”
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
CREF Fundraiser Co-Hosted by PPG Raises $130,000 The annual Collision Repair Education Foundation industry fundraiser, co-hosted by the automotive refinish business unit of PPG, raised $130,000 through the support of attendees and sponsors.
Sponsors and participants enjoyed a day of golf at the Trophy Club of Apalachee in Dacula, GA, on August 6, 2018. The funds raised from this event will go toward supporting scholarships and grants for collision schools and students. “PPG is proud to support an event of this caliber,” said Tom Wolf, PPG director of business development, automotive refinish. “It’s an honor to bring together industry professionals from around the country and to assist the foundation in making sure that collision repair students are well-prepared for entering our industry. With the Education Foundation staff working towards another great event
next year, I encourage industry members to participate through a sponsorship, by attending or by donating items for the raffle table and silent auction. This is a wonderful and important investment in our industry’s future.” “Through the generous support of sponsors, attendees and volunteers from the Atlanta I-CAR committee, we had another great golf fundraiser event that will increase the Education Foundation’s ability to support high school and college collision school programs. We must extend a special thanks to the automotive refinish professionals at PPG for their continued co-sponsorship of the event,” said CREF Director of Development Brandon Eckenrode. Next year’s event will take place July 23 in Indianapolis, IN, in conjunction with the events surrounding the Collision Industry Conference. Individuals and companies interested in getting involved with next year’s fundraiser should contact Eckenrode at (312) 231-0258 or Brandon.Eckenrode@ed-foundation .org.
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Number of Flooded Cars on the Road Jumps 47% Over Past Year That figure is a 47 percent increase— more than 150,000 additional cars— from 2017, when hurricanes Harvey and Irma devastated the Gulf Coast and Southeast. With two major hurricanes impacting the U.S. this year, the number of flooded cars cleaned up and resold will likely grow. CARFAX estimates that at least 107,000 vehicles were damaged during Hurricane Florence. To help protect consumers, CARFAX is letting them check for reported flood damage free of charge at CARFAX.com/flood. Vehicles reported as flood-damaged by a state’s Department of Motor Vehicles (DMV), Canadian province, insurance companies and more are in use in every state. These 10 states have the most flood-damaged vehicles (percent increase over 2017): 1. 2. 3. 4. 5. 6. 7. 8. 9.
Texas – 168,600 (230%) Florida – 34,400 (79%) Pennsylvania – 22,100 (11%) Kentucky – 21,700 (36%) Louisiana – 16,800 (-42%) Illinois – 15,500 (3%) South Carolina – 13,500 (4%) North Carolina – 12,400 (-5%) New Jersey – 11,900 (5%)
10. Michigan – 11,600 (6%)
The top five metropolitan areas with the most previously flooded cars back in use are Houston, New York City, Miami, Philadelphia and Dallas. “Our data suggests that severe weather events, especially historic ones like Harvey and Irma, have a nationwide impact. This surge in flood cars also underscores the importance of identifying these waterlogged wrecks before it’s too late,” said Dick Raines, president of CARFAX. “Flood cars can resurface no matter where you live, so we urge car buyers and sellers to use the resources available that will best protect them. Vigilance is key; start with a vehicle history report, mechanic’s inspection and thorough test drive to help prevent con men from ripping you off.” There are safety, health and financial concerns about flooded cars. Water can compromise the mechanical, electrical and safety systems of a vehicle, turning them into ticking time bombs. Hazardous mold and bacteria may develop in the soft parts of the car. Additionally, unsuspecting buyers often pay thousands more than a flooded car is worth.
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CREF Receives $100,000 Donation From Allstate Insurance Allstate Insurance Company has continued its strong commitment to the future of the collision industry by contributing $100,000 to the Collision Repair Education Foundation.
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Industry donations such as Allstate’s assist the Foundation in its ability to support high school and college collision school programs, instructors and students nationwide. “Collision repair education is exceptionally important in preparing the next generation of technicians,” said Allstate Claims Vice President Dave Prejna. “Contributing to the Collision Repair Education Foundation is an investment in the future and something we take great pride in at Allstate.” “Allstate’s continued support
has allowed the Collision Repair Education Foundation to support collision schools that graduate students who are productive, efficient and capable staff members [from] day one on the job within the collision industry,” said Clark Plucinski, executive director of the Collision Repair Education Foundation. “As repair facilities are seeking the next generation of technicians who will be safely repairing consumers’ collision-damaged vehicles, Allstate’s support assists in our ability to help high school and post-secondary collision instructors provide a quality technical education to their students.”
Industry members interested in joining the Collision Repair Education Foundation’s roster of supporters to assist high school and post-secondary collision school programs and students should contact Brandon Eckenrode, the Education Foundation’s director of development, at (312) 2310258 or Brandon.Eckenrode@edfoundation.org.
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