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OEM Guideline Legislation Introduced in New York by Emmariah Holcomb, glassBYTEs.com

A bill in the New York state legislature outlines guidelines for the use of original equipment materials and procedures (OEM) in collision repair shops. The bill, also known as A8050, was introduced in the Assembly and was sponsored by Assemblyman William Magnarelli. If passed it would “require vehicle repair shops to follow OEM guidelines for collision repairs and [would] forbid insurance companies from requiring repair shops to deviate from those guidelines.” A8050 also states, there should

not be any deviation from OEM guidelines without the written authorization from the vehicle owner or the vehicle owner’s authorized representative. “…no motor vehicle repair shop shall deviate from the collision repair guidelines, procedures, recommendations and service bulletins issued by a vehicle or original equipment manufacturer in the repair of a collision damaged vehicle without the written authorization from the vehicle owner or the vehicle owner’s authorized representative,” a portion of the proposed legislation reads.

by David Hurst, The Tribune-Democrat

Jackson Township, NJ, fire officials were dealing with a number of fallen trees, including ones that closed parts of Dishong Mountain and Blackburn roads on May 29 as storms continued to hit the region. Conemaugh Township Fire Department was sent to Quemahoning Dam Road, because wires were reported down along the roadway, while another fallen tree was removed from the area of Penn Avenue and Abex roads. “We’ve had residents call us re-

porting several trees falling on their properties—as many as ten,” Jackson Township Manager Dave Hirko said, blaming the combination of heavy rainfall and winds. At one point, Jackson Township Fire Department had water flowing into its own station bays, he added. “There’s just nowhere for the water to go,” Hirko said. A powerful thunderstorm on May 28 downed trees and utility lines, causing roadside issues across the region that responders continued working to address. See Body Shops Prepare, Page 12

Vol. 10 / Issue 4 / July 2019

Speaker Says Verdict Being Used by OEMs to Limit Use of Non-OEM Parts by John Yoswick

Automakers are pressing for state laws requiring the use of OEM collision repair procedures as part of their effort to limit the use of alternative parts, a representative of LKQ Corporation told a gathering of non-

See OEM Guideline, Page 4

Body Shops Prepare as Storms Go on Throughout the Northeast Region

AUTOBODYNEWS.COM

LKQ Corporation’s Ray Colas said automakers are using a verdict against a shop related to OEM repair procedures as part of their efforts to limit use of non-OEM parts

OEM parts manufacturers and distributors. “This is about money and profit,” Ray Colas, director of government affairs for LKQ Corporation, said at the Auto Body Parts Association (ABPA) convention held in May in Fort Lauderdale, FL. In the effort to pass state laws requiring the use of OEM procedures, automakers and repairers are pointing to the John Eagle Collision lawsuit, in which a dealership collision shop was successfully sued for not following OEM repair procedures on a vehicle in which a Texas couple, Matthew and Marcia Seebachan, were subsequently injured, Colas said. State lawmakers are being told that OEM procedure laws are needed See Non-OEM Parts, Page 22

SARC Brings Three State Associations Together to Address Common Concerns

his early experience with the industry when he was forced to personThe 2019 SARC meeting wrapped ally sue an insurer for seizing his up in New Orleans on Satproperty post accident. He urday, June 15, having enwas emphatic that this gaged attendees with talks opened his eyes to some of and panels featuring Jim the abuses routinely carried Hood, the Mississippi AG out by insurance compawho is currently running for nies. governor, Aaron SchulenOfficially hosted and orburg, Executive Director of ganized by MSCRA (MisAttorney General sissippi) and their Executive SCRS, as well as Pulitzer Jim Hood of Director, Ricki Garrett, and prize-winning political carMississippi President Doug White, the toonist Marshall Ramsey. Ramsey hosted a panel with event catered to repairers from MisBurl Richards, Doug White and sissippi, Louisiana and Texas in parMatt Parker on Mississippi’s Con- ticular, but all repairers and vendors sumer Guide to Insurance and Auto were welcome to attend then and in Body Repair, a document developed the future. by Hood’s Consumer Protection DiBurl Richards addressed The vision and available for download at John Eagle Case, recounting Attorwww .ago.state.ms.us. ney Todd Tracy’s efforts in the $42M See SARC 2019, Page 4 Attorney General Hood described by Autobody News Staff

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CONTENTS REGIONAL

NATIONAL

A Body Shop in Brockton, MA, Faces Code

‘Tesla Fighters’ Audi E-Tron, Jaguar I-PACE,

SkillsUSA, Planning VRS Seminars. . . . . . . . 23 AASP/NJ to Co-Sponsor First Installment in Estimating Seminar Series . . . . . . . . . . . 28 ACE Attracts Students to College Campus in Downingtown, PA . . . . . . . . . . . . . . . . . . 14 Adam Haddad of Shrewsbury, MA, Arraigned Again . . . . . . . . . . . . . . . . . . . . . 24 Body Shops Prepare as Storms Go on Throughout the Northeast Region . . . . . . . . . 1 Court Overturns Mashpee, MA, Body Shop Permit . . . . . . . . . . . . . . . . . . . . 18 High Technology Creates Roadblocks for Body Shop in Worchester, MA . . . . . . . . . 8 LIABRA, ABCG April Meeting Provides Safety System Clinic . . . . . . . . . . . . . . . . . . . 6 NABR Teaches AASP/NJ How to Win Labor Rate Battle With VRS . . . . . . . . . . . . . 20 OEM Guideline Legislation Introduced in New York. . . . . . . . . . . . . . . . . . . . . . . . . . 1 Owner Fatally Shoots Himself in Bethel Township, PA, After His Shop Burned. . . . . . 16 Several Support Calibration During Rhode Island Hearing . . . . . . . . . . . . . . . . . 28 Wellesley, MA, Veterans Parade Honorees: Haskins Automotive . . . . . . . . . . . . . . . . . . 24 Wilkes-Barre, PA, Dealer Slapped With AG’s Office Lawsuit . . . . . . . . . . . . . . . . . . . 10

Face Recalls Over Fire Risk, Faulty Brakes . . 70 3M, CREF Grant Collision Education Programs . 68 ABPA Voices Concern to Introduction of State Bills . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Acura and Honda Vehicles Recalled Again Over Takata Airbags. . . . . . . . . . . . . . 53 ASA Presents ‘Stop Reacting and Start Succeeding’ Webinar . . . . . . . . . . . . . . . . . 30 Auto Part Distributors Meet at the Latin Expo . . 24 California Appellate Court Affirms $1 Million Bad Faith Judgment Against GEICO . . . . . . . 30 Chrysler Recalls 343,000 Ram 1500 Trucks . . 63 CIECA Announces Executive Director Departure . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Claim Genius Joins CIECA as a Corporate Member . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 ClaimsCorp Inc. Renews Commitment to

INDEX OF ADVERTISERS

Violations After Drug Raid . . . . . . . . . . . . . . 26 AASP/NJ Looks to Future by Supporting

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Acura of Westchester . . . . . . . . . . . . . . . . . . 44

Long Automotive Group . . . . . . . . . . . . . . . . 52

Alloy Wheel Repair Specialists, LLC. . . . . . . . 20

Lynnes Auto Group . . . . . . . . . . . . . . . . . . . . 53

Audi Queens . . . . . . . . . . . . . . . . . . . . . . . . . 6

Malouf Chevrolet-Cadillac . . . . . . . . . . . . . . 34

Audi Wholesale Parts Dealers. . . . . . . . . . . . 61

Matrix Electronic Measuring. . . . . . . . . . . . . 25

AutobodyLaw.com . . . . . . . . . . . . . . . . . . . . 50

Mazda Wholesale Parts Dealers . . . . . . . . . . 60

CIECA Standards . . . . . . . . . . . . . . . . . . . . . 68

AutoNation Collision Parts . . . . . . . . . . . . . . 11

McGovern Chrysler-Jeep-Dodge-Ram . . . . . 12

Collision Hub Announces New Hires . . . . . . . . 18

Axalta Coating Systems . . . . . . . . . . . . . . 5, 13

Mercedes-Benz of Atlantic City. . . . . . . . . . . 49

Dave Luehr’s Body Shop Presents

Bical Auto Mall . . . . . . . . . . . . . . . . . . . . . . . 42

Mercedes-Benz of Fort Washington . . . . . . . 49

BMW Wholesale Parts Dealers . . . . . . . . 56-57

Mercedes-Benz of Paramus . . . . . . . . . . . . . 43

Cadillac of Mahwah . . . . . . . . . . . . . . . . . . . 26

Mercedes-Benz of West Chester . . . . . . . . . 49

Central Avenue Chrysler-Jeep-Dodge-Ram . 27

Mercedes-Benz of Wilmington . . . . . . . . . . . 32

Cherry Hill Dodge-Chrysler-Jeep-Ram . . . . . 22

Mercedes-Benz Wholesale Parts Dealers . . . 67

Classifieds . . . . . . . . . . . . . . . . . . . . . . . . . . 70

MINI Wholesale Parts Dealers. . . . . . . . . . . . 54

Colonial Automotive Group . . . . . . . . . . . . . . 47

MOPAR Wholesale Parts Dealers. . . . . . . 40-41

‘Human Triggers’. . . . . . . . . . . . . . . . . . . . . 28 Evaluating AI Tools and Applications: Tips From Tractable AI . . . . . . . . . . . . . . . . . 52 FIAT Chrysler Automobiles Submitted Proposal to Merge With Renault . . . . . . . . . 63 Fix Auto USA’s Paul Gange Named as a Finalist . . . . . . . . . . . . . . . . . . . . . . . . 20

Courtesy Kia . . . . . . . . . . . . . . . . . . . . . . . . 38

New Holland Chrysler-Dodge-Jeep-Ram . . . 14

Gerber Acquires Four Locations in NV and AZ . . 33

Courtesy Mitsubishi . . . . . . . . . . . . . . . . . . . 38

Nissan/Infiniti Wholesale Parts Dealer . . . . . 60

Gerber Collision Acquires Location in

Criswell Chrysler-Jeep-Dodge-Ram . . . . . . . 30

Northstar Kia . . . . . . . . . . . . . . . . . . . . . . . . 58

Trussville, AL . . . . . . . . . . . . . . . . . . . . . . . . 13

Dent Fix Equipment . . . . . . . . . . . . . . . . . . . 29

Nucar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

COLUMNISTS

GM Digital Vehicle Platform Debuts . . . . . . . . . 70

Diamond Standard Parts . . . . . . . . . . . . . . . 45

O’Reilly Auto Parts . . . . . . . . . . . . . . . . . . . . 35

Anderson - Vehicle Owner’s Manuals Help

Hail! Hail! to Paintless Dent Repair . . . . . . . . . 50

Eckler’s Automotive . . . . . . . . . . . . . . . . . . . 31

Porsche Wholesale Parts Dealers . . . . . . . . . 62

Louisiana Anti-Steering Bill Passes

ECS Automotive Concepts . . . . . . . . . . . . . . 16

PPG Refinish . . . . . . . . . . . . . . . . . . . . . . . . . 2

Empire Auto Parts . . . . . . . . . . . . . . . . . . . . 28

SATA Dan-Am Company. . . . . . . . . . . . . . . . 21

Equalizer Industries, Inc . . . . . . . . . . . . . . . . 23

Schultz Ford. . . . . . . . . . . . . . . . . . . . . . . . . 48

Educate and Negotiate Need for Various Procedures . . . . . . . . . . . . . . . . . . . . . . . . . 46 Attanasio - Are You as High-Tech as Your Customers?. . . . . . . . . . . . . . . . . . . . . 44 Ledoux - The 1970s - Part 2 - The OE’s Become Their Own Worst Enemy. . . . . . . . . 34 Ledoux - The 1970s - Trade Associations Become a Driving Force . . . . . . . . . . . . . . . 64 Ledoux - The HD Collision Market – Challenges and Opportunities . . . . . . . . . . . 58 Phillips - FCA Certified Collision Care Program Elevates the Focus on Proper Repairs . . . . . 32 Sisk - ASA Annual Business Meeting and Conference Exceeds Expectations . . . . . . . . 42 Yoswick - Consumer Advocate Gives Industry New Voice With Insurance Regulators . . . . . 38

House and Senate. . . . . . . . . . . . . . . . . . . . 18 Nissan Sides With Tesla on Camera-Based Self-Driving Approach . . . . . . . . . . . . . . . . . 62

Flemington Auto Group. . . . . . . . . . . . . . . . . 39

Security Dodge-Chrysler-Jeep-Ram . . . . . . . . 7

onPeak Returns as SEMA Show Provider. . . . . 50

Ford Wholesale Parts Dealers . . . . . . . . . . . . 66

Sorbothane Soft-Blow Mallet . . . . . . . . . . . . . 8

Recycled Rides Go to Three Moms . . . . . . . . . 54

Fred Beans Parts . . . . . . . . . . . . . . . . . . . . . 72

Spanesi Americas . . . . . . . . . . . . . . . . . . . . 10

SARC Brings Three State Associations

GM Wholesale Parts Dealers. . . . . . . . . . . . . 59

Subaru Wholesale Parts Dealers. . . . . . . . . . 63

GYS Welding USA . . . . . . . . . . . . . . . . . . . . . 14

Symach . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Together to Address Common Concerns . . . . 1 Speaker Says Verdict Being Used by OEMs

Healey Brothers . . . . . . . . . . . . . . . . . . . . . . 15

Tasca Automotive Group. . . . . . . . . . . . . . . . 51

to Limit Use of Non-OEM Parts . . . . . . . . . . . 1

Honda-Acura Wholesale Parts Dealers . . 36-37

Toyota Wholesale Parts Dealers . . . . . . . . . . 68

Tire Tax Bill AB 755 Defeated in CA . . . . . . . . . 68

Hyundai Wholesale Parts Dealers . . . . . . . . . 64

U.S. Chemical & Plastics . . . . . . . . . . . . . . . . 9

Veterans Encouraged to Become

Infiniti of Norwood . . . . . . . . . . . . . . . . . . . . 46

USI of North America . . . . . . . . . . . . . . . . . . 19

Entrepreneurs . . . . . . . . . . . . . . . . . . . . . . . 48

Kia Motors Wholesale Parts Dealers . . . . . . . 65

VIP Honda . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Your Future Self-Driving Car Will Be

Kundert Volvo. . . . . . . . . . . . . . . . . . . . . . . . 24

Volkswagen Wholesale Parts Dealers . . . . . . 69

Watching Your Every Move, Says

Launch Tech USA . . . . . . . . . . . . . . . . . . . . . 71

Westbury Jeep-Chrysler-Dodge-Ram-SRT . . 17

New Study . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Lexus Wholesale Parts Dealers. . . . . . . . . . . 68

Yonkers Kia . . . . . . . . . . . . . . . . . . . . . . . . . 54

autobodynews.com / JULY 2019 AUTOBODY NEWS

Continued from Cover

OEM Guideline

Vehicle calibration, as it relates to insurers, was also mentioned in the newly proposed legislation. According to the bill, there will also be guidelines that must be followed for recommended or required scans and recalibrations. “If a repair procedure or specification from a vehicle or original equipment manufacturer includes a directive to conduct a scan, calibration, diagnostic test of vehicle electronic systems before or after the commencement of repairs, such directive shall be considered as a required part of the repair procedure,” a portion of the bill reads. If this were to pass it would become effective January 1, 2020. Currently, the bill is being reviewed by the Assembly Insurance Committee. We thank glassBYTes.com for reprint permission. Continued from Cover

SARC 2019

judgment against the Texas body shop. Looming nearby was unheard but visible testimony, silently delivered by the now famous John Eagle Honda Fit. The car, delivered to the Jung Hotel, sat on a trailer outside the

meeting rooms and was frequently cited during the talks as a potent reminder of shops’ liability if an accident reveals an improper repair. The meeting was relatively small, with an estimated 400 in attendance along with approximately 50 exhibitors, but the energy was good and the speakers were prompted by the audience with questions. SCRS’ Aaron Schulenburg led an active panel discussion focusing on headlines in the media drawn from Repairer Driven News. Panel ists and industry veterans Burl Richards, John Mosley and Boyd Adams, gave 4

Your Future Self-Driving Car Will Be Watching Your Every Move, Says New Study by Loukia Papadopoulos, Interesting Engineering

Future autonomous car firms may choose to harness personalized customer information through geospatial and navigation technologies resulting in high surveillance. When we think of self-driving cars we think of the ease of not having to drive. We are transported where we want to go and can spend our time checking our email or even watching our favorite TV shows. However, self-driving cars come with one caveat and that is increased surveillance. By their very nature, the new autonomous cars would have access to all details about your whereabouts and possibly more. Harnessing personalized customer information Will car companies and others choose to harness personalized customer information through geospatial and navigation technologies? If so, your new comfortable ride becomes a very adept method of surveillance according to new research. “Self-driving cars will represent a new mode for surveillance. Through a self-driving car’s global positioning,

input. They emphasized the need for shops to focus on the important issues they have in common, and not on infighting for customers between shops. The message given was “the

system, navigational tools and other data collection mechanisms, companies will be able to gain access to highly contextual data about passengers’ habits, routines, movements and preferences,” explained Luis F. Alvarez León, an assistant professor of geography at Dartmouth. “This trove of personal, locational and financial data can be leveraged and monetized by companies, by providing a data-stream for companies to target customers through personalized advertising and marketing,” he added. It’s not just your locations that will be tracked. As autonomous vehicles enable passengers to spend more time engaging with media in a vehicle, the media you consume could also be tracked. Digital platforms for media companies This will also change the very nature of cars transforming “the car into a bundle of services rather than just a product.” “Automobile manufacturers may essentially become digital platforms for media companies, search engines, retailers, vendors and other companies, aiming to

gram KPIs and site audits. GM Partner Perks is a parts loyalty program that provides benefits extending beyond redeemable points to include national marketing sup-

The Seebachan’s burned out Honda Fit was shown live at the MSCRA-sponsored SARC Conference

threat is outside your shop, not from your competition down the street.” Mike Ganske gave a presentation on Cycle Time which was repeated due to popular demand. One particularly well-attended session was given by GM’s Sarah Booth on the GM Collision Repair Network and the associated Partner Perks program. Mitchell was also represented as it’s responsible for managing enrollment and reporting capabilities as it relates to the pro-

JULY 2019 AUTOBODY NEWS / autobodynews.com

port, training resources and business tools that GM says can help drive profitability, productivity and the bottom line. Benefits accrue from the first purchase. The focus of the GM Collision Repair Network is to:

offer services to passengers through a car’s infotainment system,” reveals the study. The growth of self-driving cars will see a merging of different technologies. “Through autonomous cars, the automotive and technology industries are likely to become more integrated with synergies across geospatial, navigation, artificial intelligence, ride-hailing, automotive and other industries and technologies,” said Alvarez Léon. However, this will make us all ever more vulnerable to tracking. Privacy and security concerns abound when it comes to self-driving cars. These are further exacerbated by the fact that specific governance mechanisms have yet to be defined by federal regulations. As the age of the autonomous car approaches, shouldn’t we be looking into effective legislation to ensure the privacy and safety of citizens? What do you think? Are selfdriving cars a more convenient form of transportation or an impending disaster of invasion of privacy?

www.autobodynews.com Create an engaged network of collision facilities that are focused on proper and safe repair of all GM vehicles Increase visibility into collision repairs for additional OEM parts sales Ensure technicians are properly trained and prepared to handle today’s complex vehicles Increase customer brand loyalty The GM Collision Repair Network will evaluate several KPIs that are not typically measured by other OEM collision certification programs. The major difference is that it will be metrics-driven and dynamic, meaning that the Dealer, MSO, or Independent Repair Facility will continuously undergo audit checks, ensuring that they maintain the proper requirements established for the GM CRN program. More information can be had at www .genuinegmparts.com

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LIABRA, ABCG April Meeting Provides Safety System Clinic events. He included news such as the states that have introduced legislation On April 17, the Long Island Auto- requiring insurers to follow OEM repair procedures and recbody Repairmen’s Associommendations, during the ation (LIABRA) and the appraisal process. KizenAutobody Craftsman’s Guild berger acknowledged, “Much (ABCG) held their April of this legislation has been General Meeting at the defeated by the insurance Melville Marriott Hotel in industry saying that this Melville, NY. The well-attype of legislation would tended meeting offered atJeffrey-Shaw radically increase insurance tendees a chance to receive premiums.” a three-hour General MoThe first guest speaker tors (GM) advanced safety was Jeffrey Shaw, field system post-collision servmanager for GM, who began ice and repair clinic. by asking,” How many of “The meeting was anyou would rather use an other example of LIABRA’s original equipment part verongoing program to educate sus an aftermarket part?” its members in the correct Ed Kizenberger Shaw received a unanimous OEM repair methods,” said response in the affirmative. LIABRA Executive DirecHe then shared on vehicle tor Ed Kizenberger. “As production, saying, “In the an industry, we should be next five years, there will be standing behind OEM remore new technology intropair standards and LIABRA duced than there has been in will introduce OEM repair the last 50 years and trainstandards legislation here in ing is going to be vital.” New York, shortly.” Bill Vallely Shaw added, “The premise At 7:30 p.m., Kizenberger called the meeting to order by of the General Motors collision repair reviewing industry news and current network is General Motors vehicles by Chasidy Rae Sisk

lane markers, and pedestrians, because of light detection and radar (LIDAR). Baker told attendees that equipment can be borrowed from their local GM dealers to reprogram any system modules that have been replaced during repairs. LIABRA Executive Director Ed Kizenberger announced the He assured them that association’s intention to pursue OEM repair procedure pedestrian impact deteclegislation in NY. Credit: Chasidy Rae Sisk tion system (PIDS) reBill Vallely, I-CAR Instructor, pair manuals will soon be available at reviewed the various types of equip- Eagle Chevrolet. Eagle Chevrolet Riverhead New York hosted ment required to participate the April meeting and proin Subaru’s new Repair Cervided dinner and refreshtification program, noting, ments to attendees. “This is a complex and inLIABRA’s next meeting tense program.” Vallely also will be held on Tuesday, reviewed the new I-CAR May 21 at 8 p.m. at DePalo program and warned that & Sons Auto Body in Huntthings are going to change ington, NY. Meeting sponsor rapidly. Michael Baker Metropolitan Car-O-Liner The final guest speaker of the evening was Michael Baker, will present “Today’s Repair Pracregional training operations manager tices,” featuring information on frame for Raytheon, who discussed GM Ad- alignment, electronic measuring, anvanced Safety Systems Post Collision choring, holding, jigging and joining. Service and Repair. Baker said soon cars will virtually see everything For more information on LIABRA, around them, including crosswalks, visit liabra.org. should be properly repaired using General Motors procedures and parts.”

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High Technology Creates Roadblocks for Body Shop in Worchester, MA by Cyrus Moulton, Telegram & Gazette

When mechanics at Ramstrom’s Service Center on West Boylston Street start work on a customer’s car, they reach first for the shiny blue tool chest. But the tool chest doesn’t contain wrenches. It holds thousands of dollars of computers. “We spend more time using this stuff than using wrenches now,” said Rick Ramstrom, the owner of the shop. Welcome to the new world of auto repair where computers shift gears and everything from keys to transmissions depends on the code. But in this new world, there is a dispute over who controls the information that code details. Independent auto repair shops interviewed, said they worry that the information needed to fix any problems with these codes may soon be unavailable, as wireless technology, called telematics, enables cars to communicate directly with manufacturers. The information available now also comes at a cost that some independent repair shops say may be prohibitive. As a result, independent repair shops, parts stores and consumer groups are reigniting the Right to Repair coalition. The coalition successfully pushed a 2012 ballot initiative and 2013 legislation giving independent auto repair shops the same access to diagnostic information as car manufacturers. The new push is for an update to the law to include telematics. The Legislature is also getting involved. Bills pending in the Legislature would require manufacturers to give vehicle owners access to all the wireless information, which consumers could then share with the independent shop of their choosing through a mobile-based app. But the auto industry is pushing back, saying an update is unnecessary. “Automakers are already required under the Right to Repair law passed in 2012 to provide all the information needed to diagnose and repair a vehicle,” said Wayne Weikel, senior director of state government affairs for the Alliance of Automobile Manufacturers, in a statement. “So, the issue at hand is not at all about where you can take your car for repairs; it’s about who has real8

time, remote access to your driving information. Automakers have and will continue to trust independent repair shops with the data they need to diagnose and repair vehicles that are in their shops. But there is simply no scenario in which real-time, remote access would be necessary for diagnosis or repair.” Meanwhile, consumers’ choices and wallets—independent shops bill themselves as cheaper alternatives to dealer service centers—may be affected. “I think I should have the choice as to whether I want to go to an independent or big dealer,” said Ramstrom’s customer Diane Driscoll of Worcester, a supporter of the proposed legislation. “Go local is my bottom line.” Ramstrom, while reaching for his computer, summed it up succinctly. “What this is all about really is the telematics—the information in the car,” Ramstrom said. “The question is do you own it, does General Motors own it or can I get the info out of the computer?”

2013 Right to Repair Law The Right to Repair Coalition successfully pushed a 2012 ballot question, which passed with 86% approval, and 2013 legislation that requires manufacturers to provide independent shops with the same access to information as the manufacturers give to their own dealerships. To access this repair and diagnostic information, cars come with an onboard diagnostic port. “You plug in the car, plug in the laptop and we’re off,” Ramstrom said, demonstrating the process on a Lincoln being repaired at the shop. The information comes at a price. Ramstrom estimated he had $20,000 worth of computers to access the diagnostic information. The software to read that information is also an expense. Ramstrom said he pays Ford roughly $900 annually for the software and updates for their cars. General Motors has a $40-pervehicle fee for two years, while it costs $180 to get the software for Nissans and $40 to $60 per vehicle to use the software, Ramstrom said. “It’s an investment, but as long as you have the customer flow of people not going to the dealers it’s

JULY 2019 AUTOBODY NEWS / autobodynews.com

worth it,” said Danielle Baker, owner of Baker Automotive on Southbridge Street in Worcester. But not all the information is available at every auto repair shop. Many shops use after-market equipment that is cheaper than the original equipment manufacturer’s hardware and software. Others use a combination of OEM and aftermarket scan tools based on the types of cars they most often service. Ramstrom and Baker both said independent auto repair shops with aftermarket equipment can access about 70% to 80% of the diagnostic information from a vehicle using the OBD II port. Baker said they sometimes have to send the car to the dealer after the repair is made, because they can’t readily get the information to shut the warning light off. Telematics But most concerning for advocates of updating the law is that the 2013 legislation excludes telematics, or systems that can transmit information wirelessly. This information includes everything from diagnostic informa-

tion about what is going wrong with your car, to notifications of crashes and airbags being deployed, to door unlocking, navigation and more, according to interviews. Baker said the high cost to access the data and the exclusion of telematics run counter to the intent of the 2013 Right to Repair Legislation. “They’re walking a fine line,” said Baker. “They’re coming right up to where they’re supposed to go and stepping up unto the boundary.” Tommy Hickey, director of the Right to Repair Coalition, said manufacturers have to be held accountable. “As manufacturers move to a wireless communications system, we have to continue that so that consumers’ choices are protected,” Hickey said in an interview. “As technology is advancing ... they are using telematics to get around the law. ... It took 15 years to get Right to Repair passed, and we don’t want to have these independent repairers to go under and out of business because they don’t have the informaSee Roadblocks, Page 14

autobodynews.com / JULY 2019 AUTOBODY NEWS

Wilkes-Barre, PA, Dealer Slapped With AG’s Office Lawsuit by Patrick Kernan, Times Leader

The Pennsylvania State Attorney General’s Office filed a suit in Luzerne County Court on Thursday, May 23, claiming a Wilkes-Barre, PA, auto dealer defrauded customers, knowingly selling them vehicles that wouldn’t pass inspection without making them aware. The suit names RCMS Auto Sales, which does business under the name Auto Now, as a defendant, along with its owner, Thomas Hashem. Filed by Juan P. Sánchez, senior deputy attorney general, the suit states the auto dealer has a registered business address in Scranton, but most recently operated at 141 Spring St., Wilkes-Barre. The company also operated locations in Moosic and Scranton. According to the suit, Hashem is the only active salesperson that works with the company. Sánchez is alleging that Auto Now, under the direction of Hashem, knowingly defrauded numerous customers. This fraud came by way of misrepresenting the condition of vehicles being sold, even failing to disclose that some vehicles would be unable

to pass inspection. Sánchez took issue with numerous things advertised by Auto Now:

Auto Now advertised that it had a credit restoration program, but Sánchez claims Auto Now had no such program. Additionally, the company claimed all vehicles were serviced by a licensed technician, but the

JULY 2019 AUTOBODY NEWS / autobodynews.com

suit says none were. The company also claimed a warranty was placed on every vehicle, but many were not “warrantable due to pre-existing mechanical issues that (Auto Now) knew or should have known existed.” The suit lays out a few specific examples, claiming one Lackawanna County customer purchased a vehicle in September 2014 from Auto Now for more than $7,000, including a $125 warranty. Shortly after purchase, in October 2014, the customer noticed a noise coming from the engine compartment. After contacting the warranty company, the vehicle was diagnosed as having pre-existing engine issues that caused serious engine failure. While the issue was pre-existing and thus disqualifying for a warranty claim, the warranty company paid $1,900 “as a form of good will,” the suit says. The Attorney General’s Office is seeking a court order to be filed against the company, hoping to have them slapped with numerous fines and other modes of relief. These include:

• Declaring the company’s conduct as being in direct violation of auto regulations and consumer protection law. • Directing the company to pay full restitution to all consumers harmed by its actions.

• Ordering penalties of $1,000 for each instance of violating consumer protection law and auto regulations, and tripling that fine for any instance harming a consumer 60 years of age or older. • Dissolving Auto Now and enjoining the company and Hashem from ever engaging in the auto business in Pennsylvania. • Ordering the company to forfeit its motor vehicle dealer license.

• Pay costs of prosecution and investigation. • Disgorge and forfeit all profits from violations of the law.

We thank Times Leader for reprint permission.

autobodynews.com / JULY 2019 AUTOBODY NEWS

Continued from Cover

Body Shops Prepare

While a tornado was spotted in the Penn Run area of Indiana County, 911 officials in Cambria and Somerset counties reported minor weather-related issues occurred throughout the region overnight. No injuries were reported, 911 supervisors said.

more later this week, Gov. Tom Wolf was urging Pennsylvania residents to stay alert—and be ready for the worst. “We know the threat of severe weather is real and Pennsylvanians need to be prepared,” Wolf said. “Please remember to use caution and stay tuned into weather reports for any important news as inclement weather develops.”

A storm caused a tree to fall across Killen School Road in Barr Township, PA, on Wednesday, May 29. Credit: John Rucosky, The Tribune Democrat

The storm was the latest in a series that have occurred over the past week—and with a familiar weather pattern creating an opportunity for

Rainy May The past few weeks have been very wet, but the center that tracks rainfall totals in the northeastern United States says the monthly total is typical for May. May is often the Johnstown region’s wettest month, with more than 4.5 inches falling on average. As of May 28, the Johnstown-Cambria County Regional Airport’s weather station had recorded 4.07

inches. Last May’s total topped that, but with a few days left in the month, including Tuesday, May 28 night’s

JULY 2019 AUTOBODY NEWS / autobodynews.com

rainfall still not counted, it’s possible totals could surpass the average, staff with the North East Regional Climate Center reported.

was new or used,” Thomas Team Honda’s General Sales Manager Tim McMinn said. “I’ve been in the business for 15 years and we’ve never had to deal with hail damage in that time.” Hail Sale The dealership is aiming to make Parts of Stonycreek Township in Cambria County, PA, and Geistown the best of it, he said. “Something like this happens ... were hit hard by hail in last week’s storm and that included Thomas and you have a hail sale,” McMinn said, noting that $2,000 price cuts Team Honda’s Bedford Street lot. have been added to every new car’s “best price,” as well as $1,500 from used vehicles. Insurance adjusters have already toured the lot to calculate damages and the dealership is fixing vehicles on an ongoing basis, but for now, bargains are available A swollen Blacklick Creek flows under Amadei Road in for those who aren’t conBarr Township, PA, on Wednesday, May 29. Credit: John cerned with the cosmetic Rucosky, The Tribune Democrat damage, McMinn said. VeNearly 220 vehicles—most of hicle titles remain unchanged and the dealership’s inventory—sustained full factory warranties still apply, he damage from hail, some of which re- added. Inside the dealership’s showportedly were the size of golf balls, room, one vehicle’s hood was repaired staff said. “Every vehicle outside on on one side to show that the comour lot was impacted—whether it pany’s body shop can fix the damage.

Laurel Auto Group was also advertising a “Hail Sale” in the wake of storm damage inflicted on its lot. Hail Help Several of the area’s insurance providers reported that hail claims surged in the days following the tornado on May 30.

seeing was too big for one building to handle,” Hollern said. Dentworks, which uses equipment to fix dents without harming a vehicle’s finish, responded by bringing in a hail damage repair team from Georgia to assist, he added. Hollern said the company is also partnering with insurance agen-

“Our area doesn’t get too much hail damage, but after last week’s storm, the influx of vehicles they were seeing was too big for one building to handle,” — Brian Hollern

Providers said many of those claims originated from the Geistown and Richland areas, but declined to provide estimates on their claim totals. Brian Hollern of Hollern and Sons Auto Sales on Scalp Avenue said his dealership partnered with Dentworks Paintless Dent Repair of Johnstown this week to serve as an emergency repair site for the region’s damaged vehicles. “Our area doesn’t get too much hail damage, but after last week’s storm, the influx of vehicles they were

cies, including Erie, to get damage corrected. He said the backlog of repairs should be completed over the next few weeks. Tornado Totals The National Weather Service in Pittsburgh sent a crew to the Penn Run area of Indiana County and was able to confirm a low-level EF-0 tornado touched down there. No structural damage was reported by the tornado.

But it’s the third twister in the county in a week. Before this month, only 13 were confirmed in Indiana County in the nearly 70 years prior, National Weather Service officials reported. A National Weather Service Meteorologist in State College said there were no indications of any tornado activity on the ground in the west-central Pennsylvania territory—Cambria County included— on May 28. There were several reports further east in the Lancaster area that were being reviewed. Pennsylvania, on average, records 16 tornadoes a year, and this year’s total is already at 20 through five months. Tornadoes are rated by speed on a six-level scale and as of May 28, none were higher than an F2 level, Mike Jurewicz, meteorologist, said. We thank The Tribune-Democrat for reprint permission.

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Gerber Collision Acquires Location in Trussville, AL

The Boyd Group Inc. announced on May 16 the acquisition of a collision repair center located in Trussville, AL. This location previously operated as Myers Auto Collision Repair, servicing this market since 1988 and from the current location since 1997.

Trussville is an eastern suburb of Birmingham and was included in Money magazine’s top 100 best places to live in America. The Birmingham Metropolitan Statistical Area is rapidly approaching 1.2 million people. “We’re excited to enhance our presence in this region and look forward to providing the excellent service customers in the Birmingham area have come to expect,” said Tim O’Day, president and COO of the Boyd Group. “We also look forward to better assisting our insurance partners in this growing market.”

autobodynews.com / JULY 2019 AUTOBODY NEWS

ACE Attracts Students to College Campus in Downingtown, PA by Staff, My ChesCo

Over 19 automotive collision industry businesses and organizations came together at the Technical College High School (TCHS) Brandywine Campus, in Downingtown, PA, on May 8 for the fifth annual Auto Collision Experience (ACE). Students were able to network with potential employers and participate in demonstrations that highlighted some of the latest technology available in the industry. Over 400 students from 17 technical high schools throughout the region attended this free event to learn about various career pathways the industry has to offer. Dave Purdy, assistant principal at TCHS Brandywine Campus, who has been involved with ACE since it started in 2015, said ACE helps students get a bigger picture of the industry. “There are so many career path options for students that I believe there is really something for each of them. From sales to marketing and beyond, this event allows them to see how they can fit and grow over time in the industry,” said Purdy. One of the unique features of ACE is that it gives industry partners access to students with skills that are

in high demand. Dean Benner, manager for 3D Auto Body and industry partner for ACE, notes that this event is unique in its ability to bring an entire industry together with educational partners to help students all

across the region. “I was involved last year and this year. It’s amazing how industry and education partners pull ACE off and how much the ACE planning committee strives to provide for the kids. TCHS works really hard to get students employed in the auto collision field. And, it’s not just Chester County students; it’s students in the greater Philadelphia area. ACE is pretty amazing,” said Benner. The auto collision industry is rapidly growing and is projected to grow 9 percent over the next seven years, according to the U.S. Bureau of Labor Statistics. With such large growth projected, employers in the region rely on ACE to help find the next generation of auto collision Credit: Courtesy of My ChesCo

Continued from Page 8

Roadblocks

tion to fix the car.” Hickey estimated that 60% of new cars include some sort of telematics today, and said that by 2022, more than 90% of new cars and trucks will transmit important real-time vehicle diagnostic and performance data to manufacturers, potentially leaving independent shops out. Baker gave the example of a BMW that, when it’s time for an oil change or another service, will notify the driver that it’s time for service and connect them with the nearest BMW dealer. “Maybe if they had a system where it can connect you to a shop of choice,” Baker suggested. “Just because it’s the dealer, doesn’t mean they do the best work. It doesn’t mean you’re going to get as good a job.” Ramstrom agreed. “Anything Ford can do, we can do better,” Ramstrom said. We thank Telegram.com for reprint permission. 14

JULY 2019 AUTOBODY NEWS / autobodynews.com

employees. Students who attended the event were given the opportunity to interview with industry partners and were then evaluated using a rubric. Students received their rubrics after the event to better gauge their interviewing skills. This unique networking opportunity is something that Owen J. Roberts School District and TCHS Pickering Campus student William Gallagher, who is in the Automotive Service Technology program at TCHS Pickering Campus, felt made ACE a great event. “This is my second time at this event and I have enjoyed that there are a lot of opportunities to network with people who have job openings. They’re giving us the opportunity to interview with them and that makes ACE fun. It’s a good way to meet people and open doors,” said Gallagher. Students aren’t the only ones who enjoy ACE for its networking opportunities. Gary Liquori, a sales representative from Innovative Solutions & Technology and former technician, enjoys participating in ACE because it helps give back to students who are just like him, he said. “ACE is a great opportunity for the students and I’m glad to be here. I come from a vocational school orig-

inally. I’ve been in this industry for the last 17 years and I decided to step out of it and do some training, instead of just doing the actual job. I’m happy to help kids by networking with them and then training them to get them into this industry,” said Liquori. Industry partners generously donated an estimated $10,000 worth of items to include in raffle baskets for the students, including: belt sanders, specialized tool kits, welding helmets, paint guns and other industryspecific gear. “The reality is that kids are going to walk out of here with thousands of dollars’ worth of tools from our sponsors, because these are the tools you need to work in the trade,” said Purdy. Industry partners also led demonstrations of the latest technologies in the industry. The demonstrations were designed to highlight the multitude of career paths available in the fast-growing and high-paying auto collision repair industry. From careers in graphic design and advertising to sales and customer service to repair work and management, there are many opportunities for success in this field. We thank mychesco.com for reprint permission.

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Owner Fatally Shoots Himself in Bethel Township, PA, After His Shop Burned by Steven Henshaw, Reading Eagle

Terry A. Naftzinger had to start over when his father died of natural causes at age 61, according to a close friend. Naftzinger’s father, Roger, operated R&T Engine Co. out of the family’s Jefferson Township residence for nearly three decades. Following the death of his father, Naftzinger lost the garage and his income. “He and his dad had a garage and his dad taught him everything he knew, and he lost everything shortly after his dad passed,” Rich Lorah said a day after the tragic death of the man he called his best friend. Naftzinger, 46, known as “Wrecker” to his longtime friends in northwestern Berks County, fatally shot himself shortly after the threebay garage where he operated his auto repair business on Camp Swatara Road in Bethel Township, PA, caught fire on Monday, May 20, state police said. “He put everything into this one [the garage] and to see it burning was too much for him,” said Lorah, 56, of Womelsdorf. “He had stupid thoughts

before, but he would always call me or message me and I would talk him through it.” Troopers from the Reading station said Naftzinger of Bethel Township was found about 100 yards from the fire with a handgun next to his body.

Terry A. Naftzinger of Bethel Township. Credit: Courtesy of Amie Jo Heffner and Reading Eagle

He was pronounced dead at the scene at 1:37 p.m. by Jason Kantner, Berks County deputy coroner. The death was ruled a suicide, officials said. Bethel Fire Company was dispatched at about 10:15 a.m. to the fire at 2790 Camp Swatara Road. The building was engulfed when

JULY 2019 AUTOBODY NEWS / autobodynews.com

they arrived. Bethel Township police initially responded, then requested assistance from state police. A state police helicopter spotted Naftzinger in a wooded area. Police on the ground went to the location and found Naftzinger deceased. The building that houses Naftzinger’s race cars, as well as some of his customers’ vehicles, was extensively damaged. Janssen Herb, a state police fire marshal, said investigators are still trying to determine the cause of the fire. “Everything he had was in there, that’s why he did it,” Lorah said. Lorah and his tight group of friends were devastated to learn Naftzinger had died. “I’ve known him since he was 7 or 8,” Lorah said, struggling to make sense of the sudden loss of his friend. Naftzinger is also survived by his girlfriend, Amie Jo Heffner, with whom he resided, and two daughters, who lived elsewhere, Lorah said. “He was an amazing man and a mechanical genius who would do

anything for anyone and I loved him for that and life without him is going to be hard,” Heffner said. Lorah said Naftzinger and his girlfriend moved to his girlfriend’s parents place. “His girlfriend’s dad gave him that garage and gave him another start,” Lorah said. “For years he struggled because his usual customers wouldn’t come out to Frystown.” Lorah said he and his buddy would get together every weekend for beers. But lately business was so brisk at the shop that Naftzinger couldn’t break free, he said. “There were several weekends that he was that busy,” Lorah said. “I would go there to him and hang out and have a few beers while he worked.” Lorah said he and Naftzinger and some of Naftzinger’s cousins were one big family, treating one another’s children as their own. “Now a big piece is missing,” he said. We thank the Reading Eagle for reprint permission.

autobodynews.com / JULY 2019 AUTOBODY NEWS

Court Overturns Mashpee, MA, Body Shop Permit by Wheeler Cowperthwaite, Cape Code Times

Five years after a vehicle repair shop in Hyannis received a special permit for a new operation in Mashpee, the state Appeals Court has vacated the permit and a Barnstable Superior Court judge’s decision to uphold it. The court ruled that Judge Gary Nickerson, who has since retired, erred when he upheld a special use permit granted to Accidental Auto Body, owned by Anthony Dupuis. The Mashpee Zoning Board of Appeals issued the permit in 2014. Four neighbors appealed the board’s decision in Superior Court, citing the environmental impact of the spray paint used at the shop. Nickerson entered his order Dec. 7, 2017, after a bench trial. Dupuis said he had no comment on the case but confirmed he has been unable to use the Mashpee property since the zoning board granted the permit. His shop needed a special use permit because the chemicals used to repaint vehicles would vent into the air. Christopher Senie, the attorney for the neighbors, said the proposed auto repair shop was in an industri-

ally zoned area but shared a property line with the residential area. He said the key to the case was who carried the burden of proof— the neighbors or the auto body shop. According to the Appeals Court opinion, Accidental Auto Body had the burden to prove that its painting would not “significantly decrease the air quality or have a significant adverse impact on neighboring properties.”

Nickerson, however, had flipped the burden to the neighbors to prove they would be harmed by the chemicals or the air quality would be reduced, according to the opinion. Nickerson found that the paint shop would release “harmful molecules” into the air that would be a danger to people for up to five minutes after being vented and that there was no “affirmative evidence” of a

Louisiana Anti-Steering Bill Passes House and Senate by Chasidy Rae Sisk

Louisiana House Bill 411, an antisteering bill which would require consumers to be notified of their right to choose a shop, passed the state’s House of Representatives and Senate in May. In order to become law, the bill merely needs to be signed by Gov. John Bel Edwards. According to an email written by Edwards’ communications director Shauna Sanford, “The Governor is inclined to sign the bill given the overwhelming support of the measure by the Legislature. There was no objection to the bill by the House or Senate.” House Bill 211 was introduced on March 29. Sponsored by Louisiana State Representative Terry Landry (D), along with 20 co-sponsors, House Bill 211 unanimously (88-0) passed the House of Representatives on May 15. It moved to the Senate without amendments. On June 1, the Senate also passed the bill unanimously (36-0). While Louisiana law already prohibits insurers from requiring policyholders to repair their vehicles at a specific shop, the bill adds lan18

guage, stating a carrier “shall not recommend the use of a particular motor vehicle service or network of repair services without informing the insured or claimant that the insured or claimant is under no obligation to use the recommended repair service or network of repair services.” Additionally, House Bill 211 prohibits insurers from using “any act or practice of intimidation, coercion, or threat to use a specified place of business for repair and replacement services.” If Gov. Edwards signs the bill into law, it will increase fines for steering. Current law fines up to $500 per offense, but under the new law, the Insurance Commissioner could fine an insurance company $1000 for the first offense, $2500 for a second offense within a year and up to $5000 for a third steering violation within the same 12-month period.

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decrease in air quality. Therefore, he said, federal and state regulations that govern auto body shops were enough. In a footnote, the Appeals Court wrote that typically, zoning boards and judicial findings are given deference by the courts, but the burden to prove a project will not hurt the public. Senie said he called a toxicologist as a witness who testified the chemicals were likely to cause harm, but Nickerson found the expert did not have the scientific evidence to prove that. The auto body shop did not provide its own expert to say the chemicals would not harm anyone. “We never set out to prove it’s dangerous, we set out to raise it as an issue,” Senie said. “The trial court said we didn’t do enough, but that’s not what the law says.” An air quality study could have been commissioned by the auto shop or required by the zoning board. “A study can be done that would answer the central question,” Senie said. “Nobody did that study.” We thank Cape Code Times for reprint permission.

Collision Hub Announces New Hires

Collision Hub is pleased to announce the addition of Jason Bartanen and Holly Goodwin, AIC. “After completing a two-year collision industry research project, it was clear there were needs that I couldn’t deliver,” said Collision Hub, CEO Kristen Felder. Bartanen will assume a new role within Collision Hub as Director of Collision Industry Relations. Working closely with industry stakeholders, Bartanen will bring an exciting line up of new products and services to market. “I’m most excited about the opportunity to reconnect with collision repair technicians from across the country, building products and services designed to help them excel,” Bartanen said. Goodwin will assume a new role as Director of Operations. Her primary responsibilities will be in supporting the infrastructures required for ongoing research, client services, product development and video training projects. “This is an incredible opportunity,” she said. For more information, please visit www.CollisionHub.com.

autobodynews.com / JULY 2019 AUTOBODY NEWS

NABR Teaches AASP/NJ How to Win Labor Rate Battle With VRS by Chasidy Rae Sisk

On May 22-23, AASP/NJ hosted two educational sessions featuring National AutoBody Research’s (NABR) Richard and Sam Valenzuela. The Valenzuela’s explained how the NABR Variable Rate System (VRS) can help collision repair industry professionals fight the ongoing labor rate battle. The May 22 session was held at the Holiday Inn in Totowa, while the May 23 event took place at the Clarion Hotel in Toms River. Sam stated, “Have you ever been told ‘we don’t pay for that’ or ‘no one is asking for that’? Well, that is not true. They will pay and we have the data as proof. We can change our mindset. If you think your industry is just the way it is and it’s never going to change, you probably won’t survive.” “Market rates are rates that you should determine,” Richard added. “Insurance companies don’t determine these rates unless you let them. What is interesting is that [the insurance companies] will never show you any data. They just tell you what the rates are in your market and you are supposed to believe them. It’s

time to stop operating under this belief and start fighting back with accurate data which puts ‘bullets in the chamber.’”

NABR’s VRS is a database comprised of posted rates and insurance documents from collision repair shops that can be used in shops’ fight to get paid what they deserve by citing the evidence provided in the system. Subscribers can search insurance documents to verify that certain procedures are being paid by specific insurers as a response to the infamous claim of “we don’t pay for that.” The Valenzuela’s accessed the database during the seminars to

JULY 2019 AUTOBODY NEWS / autobodynews.com

demonstrate the proof and the rates shops post for bodywork—results that were significantly higher than NJ’s supposed prevailing labor rate. “This is hard data,” Richard said. “We aren’t making this up. We are taking it right off the insurance documents. Data is the only way you are going to win this war.” NABR encouraged shops to complete the VRS survey found at laborratesurvey.com to share their posted rates based on the cost to properly repair vehicles. AASP/NJ said measures such as taking this survey are vital to unifying the industry. According to AASP/NJ President Jerry McNee, “If we all start bringing it up and stick together, we can make a change.” “With the Variable Rate System, shops now have a strong basis for their argument: the current labor rates being paid by most insurers does not reflect the fair and reasonable labor rates that shops deserve for the services they provide,” AASP/NJ Executive Director, Charles Bryant, said. For more information on AASP/NJ and its endeavors, visit aaspnj.org.

Fix Auto USA’s Paul Gange Named as a Finalist The San Diego Business Journal has named Paul Gange, Fix Auto USA’s president and CEO, as a finalist for the “CEO of the Year” award. As a finalist, Gange is recognized among San Diego’s business elite for propelling Fix Auto USA forward and driving the

business to new heights within the collision repair industry. “It’s quite an honor to be considered as a finalist for this award, especially given San Diego’s business community is quite large and brimming with other successful CEOs,” said Fix Auto USA President and CEO, Paul Gange. Gange was selected as a finalist for his professional achievements, contributions towards Fix Auto USA’s growth, innovation, marketing activities, and relationships with Franchise Partners, and the marketplace at large.

autobodynews.com / JULY 2019 AUTOBODY NEWS

Continued from Cover

Non-OEM Parts

to prevent insurers from calling for the use of non-OEM part and industry-accepted repair practices, he said. However, he said, the dealership shop sued by the Seebachans was “unable to provide evidence that [the repair process they used] was provided by the insurer.” “The insurer did not force them to follow a certain procedure,” Colas said. “They chose not to, because they didn’t feel they would get paid for the [automaker repair] process which is why the verdict was against the body shop. They chose profits over morals.” The reality, Colas said, is that nothing prevents body shops from following OEM procedures. The industry regularly uses “best practices” in the many situations in which a documents OEM procedure doesn’t exist. It is “hypocritical” of the repair industry to back legislation mandating insurers to pay for OEM repair procedures if shops aren’t also required to follow them, he said.

“There is no penalty against the body shop” in most of the proposed state bills, Colas said. “They’re going after the deep pocket—it’s the insurer’ fault.” Such legislation is being backed by automakers as part of their push for the use of OEM parts as called for in their position statements, he added. “Our position is, as creative as they are, with utilizing this mechanism to restrict the use of aftermarket parts,” Colas said. “Why don’t they use that same level of creativity to get paid [for following OEM procedures]?” Colas acknowledged that proponents of some of the state bills calling for the use of OEM procedures offered assurances that the legislation was meant to address repair procedures only, not to impact parts choice. The Alliance of Automobile Manufacturers said in December it views the OEM procedure issue as “separate and discrete from the question of what parts are used. In March, the alliance urged Connecticut lawmakers to amend the bill to make it clear it is not an effort to limit the use of non-OEM parts.

JULY 2019 AUTOBODY NEWS / autobodynews.com

Colas said opponents of such legislation “should have never trusted them,” because automakers and shops only sought to amend the bills after the non-OEM parts industry opposed the bills in several states. The proponents of OEM procedure legis-

CCC’s Bill Langley said results of a survey the company commissioned showed consumers feel uninformed about choosing a collision repair shop

lation want to use their own wording for any amendment related to parts rather than letting the alternative parts industry “write the exemption language” that it wants, he added. “The problem is we don’t understand the terminology they are using in different states, and what

loopholes they are creating [in the legislation],” Colas said. “They are several years ahead of us. They know what they’re planning to do— utilizing technology and processes five to ten years from now—whereas we don’t have that insight. So obviously we’re very concerned with anything they propose on our behalf. Let us propose what’s best for us and our industry.” Bill Langley, director of strategy at CCC Information Services, discussed a consumer survey commissioned by CCC that may signal the company is looking to play a larger role in how vehicle owners choose a collision repair shop. Langely said CCC worked with Magid to interview 7,000 consumers who had collision repairs to a vehicle in the previous two years. “They were very unsatisfied about finding a repair facility,” Langley said in summarizing the survey findings. “They were more satisfied with the end repair than with the process they were going through” in choosing a shop. Consumers were asked about their comfort level with getting a va-

riety of tasks accomplished, such as home or vehicle repairs. Nearly twothirds (64%) said they felt “knowledgeable” about getting a home structural repair, such as roof damage from hail or a fallen tree, handled. A similar percentage felt knowledgeable about dealing with a home appliance failure (63%), a vehicle failure that left them stranded (61%) or another major home repair such as a furnace or air conditioner failure (61%). However, only about half (54%) felt knowledgeable about how to handle vehicle body damage requiring a body shop. More than 21% of consumers said they felt “uninformed” about addressing vehicle body damage. Moreover, 15% felt uninformed about addressing a home structural repair and 17% felt uninformed about what to do when a home appliance or furnace failed. “What we’re trying to do is make the consumer process better,” Langley said.

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AASP/NJ Looks to Future by Supporting SkillsUSA, Planning VRS Seminars by Chasidy Rae Sisk

On April 13, AASP/NJ proudly supported the 2019 SkillsUSA State Conference collision repair competition. The conference took place at the Somerset County Vo-Tech School in Bridgewater, NJ, with student competitions demonstrating their skills in plastic repair, estimating, structure, welding and sheet metal. Jerry McNee, AASP/NJ president, who volunteered as a SkillsUSA judge, stated, “It’s good that we can give back to the industry. I’m glad we can donate to the cause, the winner and SkillsUSA. We need talent in this industry and this is one avenue where we can start.” Anibal Sierra (Passaic County Technical Institute) won the competition. Matt Brandner (Hunterdon County Polytech) won second place and Nicholas Donnadio (Somerset County Vocational and Technical School) won third place. In addition to winning a fully-stocked toolbox, Sierra will compete at the 55th Annual National Leadership and Skills Conference held in Louisville, KY, this June. Each competitor received a gift

bag thanks to the sponsors who made the event possible. This year’s sponsors included AASP/NJ, Auto Body Distributing Co, Inc., Bridgewater Collision Repair, Britland Autobody, Central Paint, J&E Auto Body and Ultimate Collision Repair. Volunteer judges included McNee, Chuy Barrera of Johnny’s Auto Body, Glenn Morello from Bridgewater Collision, Pete Ritter of Ritter Full Service, Berrs Rocha from Bridgewater Collision and Tyler Tallamy of Port Murray Auto Sales, Auto Body & Classic Restoration. Charity Ritter donated her time as event coordinator for the second year in a row, and Anthony Thompson served as donation coordinator. Next, AASP/NJ will hold two seminars focused on addressing labor rates and procedures issues using the Variable Rate System (VRS), created by National AutoBodyResearch, a research and consulting company committed to restoring free-market labor rate prices. Charles Bryant, executive director of AASP/NJ, shared, “This system provides the basics to demand fair pay and reasonable labor

rates. This is a must-attend meeting that no shop owner can afford to miss.” McNee added, “There are so many benefits to the Variable Rate System, and we need to support it. It’s the only independent market study out there that has anything to do with rates. We can’t depend on the insurance companies to determine our prevailing rates as they will just tell us what they want to pay. We have to stand up for our rights and at the end of the day, there is strength in numbers. Everyone should come to these sessions.” On May 22, the first VRS seminar will be held in the northern part of the state at the Holiday Inn in Totowa. AASP/NJ will move south on May 23 for the second seminar at the Clarion Hotel and Conference Center in Toms River. Both meetings start at 7:30 P.M. and will include food and beverages. Pre-registration is required and is free for association members; non-members pay $75. To register, call 732-922-8909. For more information about AASP/ NJ and its future events, visit aaspnj .org.

autobodynews.com / JULY 2019 AUTOBODY NEWS

Auto Part Distributors Meet at the Latin Expo

Thousands of auto part distributors attend the Latin Auto Parts Expo every year. This event provides a great opportunity to meet them. The sixth edition of the expo will be in the ATLAPA Convention Center in Panama July 17-19, 2019. Max Douglas of Berryman Products said about last year’s event, “The show buyer turnout was great! I was personally pleased with the results and leads accumulated for my aftershow follow-up. This show filled a niche for my distribution into the Latin American countries.” Registration is open and free. In this edition of the expo, it features new product categories, several training sessions and an increased number of educational conferences on new technologies in the automotive industry. For more information, view the conference schedule and visit the Expo’s website at https://www .latinpartsexpo.com.

Adam Haddad of Shrewsbury, MA, Arraigned Again by Elaine Thompson, Telegram & Gazette

Adam Haddad, who was indicted in connection with alleged insurance fraud, accused of using hammers and mallets to further damage customers’ vehicles he was to repair, was arraigned for a second time on May 21, in Middlesex Superior Court in Woburn, MA. Haddad, 42, is a licensed automotive appraiser who owns two auto repair shops, ADH Collision of Boston in Everett, MA, and Accurate Collision Inc. at 1051 Millbury St. He was indicted by a statewide grand jury March 28 after a twoyear investigation led by Attorney General Maura Healey’s office. He is charged with motor vehicle insurance fraud (18 counts), larceny by false pretenses over $1,200 (15 counts), attempted larceny (three counts), and malicious destruction of property (six counts). He was first arraigned in Middlesex Superior Court on April 16. A spokesman for the attorney general’s office said he was arraigned again in the Woburn court after Accurate Collision was added to the charges. The first pretrial confer-

Wellesley, MA, Veterans Parade Honorees: Haskins Automotive by Staff, Wicked Local Wellesley

Haskins Automotive received a special recognition award at the 2019 annual Wellesley Veterans Parade. The shop has been serving the automotive needs of the greater Wellesley area since 1929. We are Wellesley’s only full-service automobile dealership. Whether it’s an automobile service, used-car sale or auto body repair, we are capable of handling all of your automotive needs. Formerly Haskins Oldsmobile, we were the oldest family owned and operated Oldsmobile dealership in the United States. We are pleased to continue our family tradition and offer automotive services to the greater Wellesley and Metro West Boston area as an independent dealer. Our service department performs anything from routine maintenance to complex electrical repairs and engine replacements. Our technicians are ASE certified and we are an AAA approved service center. Our body shop handles all types of jobs, large and small. We are an I-CAR GOLD facility—less than 2 percent of the body shops in the country are able 24

to meet this rigorous training and equipment certification from the industry’s leading trade group. We are also a Honda and Acura ProFirst certified repair facility having the backing and trust of American Honda Motor Company North America. Our pre-owned sales department buys and sells used vehicles every day. If we don’t have something in stock, we will go out and find what you are looking for with our buyer purchase program. In addition, we have an on-site rental car agency and towing company for customer convenience. Our top priority is our customers and we strive every day to make sure our customers are completely satisfied. Our mission was identified by our founder Leslie T. Haskins and continues to prove true to this day: “Integrity is our greatest asset.” The entire Haskins Family would like to thank the town of Wellesley for their continued patronage over our 90 years of business in the Wellesley community. We thank Wicked Local Wellesley for reprint permission.

JULY 2019 AUTOBODY NEWS / autobodynews.com

ence is scheduled for June 25. The attorney general’s office began investigating Haddad in 2017 after a referral from the state Insurance Fraud Bureau. Investigators found that several vehicle own-

ers and 18 insurance companies had allegedly fallen victim to Haddad’s longtime complex motor vehicle fraud scheme, in which he used mallets and hammers to cause more damage to vehicles he was to repair in order to steal or try to steal $170,000 in fraudulent insurance claims. There have been “many” additional complaints filed since the indictment was made public on April 1, according to the attorney general’s office.

“Mr. Haddad did this to mislead the insurance appraisers into writing higher, and unnecessary, insurance repair estimates. In addition, after receiving payment from insurance companies on these appraisals, Mr. Haddad returned cars to customers with missing or broken parts, labor, bodywork, and/or paint services not completed,” the attorney general said in a written statement. On Aug. 9, police with a warrant searched the Everett repair shop and confiscated the shop’s internal video surveillance footage. The footage allegedly shows Haddad enter the shop in the early morning hours of July 31 and use mallets, sledgehammers and a piece of wood to damage four identified customers’ vehicles. Haddad has denied the charges. We thank Telegram.com for reprint permission.

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A Body Shop in Brockton, MA, Faces Code Violations After Drug Raid by Cody Shepard, Wicked Local Brockton

An auto body repair shop is facing licensing code violations after the owner was arrested on drug and ammunition charges when detectives raided the garage. The Brockton police narcotics unit executed a search warrant at D&G Auto Body, at 8 Perkins St., about 12:30 p.m. on Tuesday, May 28. Detectives applied for and were granted a warrant following a weekslong narcotics investigation. Brockton police detectives, state police, a state Department of Correction canine unit and a city police dog and his handler entered the garage armed with the warrant and found seven people. One of those men was identified by police as Gregorio Pereira, the 59-year-old owner of the auto body shop. Pereira and the other men, none of whom work at the business, according to police, were all detained as detectives executed the warrant. “Inside the office area of the repair shop, they found 30 .40-caliber rounds of ammunition under a counter within a tool bag,” said po-

lice Detective Sgt. Michael Dennehy. “They also located 22 7.26 rounds of rifle ammunition found under the counter.” Also under the counter, detectives located 10.8 grams of fentanyl inside a glove in that office, Dennehy said. Police also located a safe and digital scale under the filing cabinet, he said. Inside a filing cabinet in the office, detectives found 0.6 grams of crack cocaine in a pill bottle, Dennehy said. They also seized a box containing 23.5 grams of an unknown powder that will require further testing to determine what the drug is, he said. They found eight Seroquel tablets on a counter, he said. Inside another room, police found an additional digital scale and packaging materials consistent with narcotics distribution, Dennehy said. One of the men found inside the garage, 50-year-old Rui Vicente, was arrested on a warrant. The other five men were released after police say they were checked for potential drugs and weapons. Police say all the men beside the owner told de-

tectives they do not work at the shop and were only there “smoking marijuana.” Pereira, of 19 Wallace St., Brockton, was charged with trafficking fentanyl, illegal possession of ammunition, distributing a Class B drug and distributing a Class E drug. The garage is expected to face code violations and citations, including for the number of vehicles that were on the property. The owner may have to appear before the Brockton City Council at a later date to face potential penalties. Pereira pleaded not guilty Wednesday, May 29 during his arraignment in Brockton District Court. A prosecutor with the Plymouth County district attorney’s office asked for bail to be set at $25,000. Judge Mary Amrhein kept the $7,500 bail that Pereira posted at the police station to be released prior to his arraignment with the case. He is due back in court on July 31 for a pretrial hearing. We thank Wicked Local Brockton for reprint permission.

CIECA Announces Executive Director Departure CIECA announced on June 6, 2019, that Fred Iantorno, CIECA’s executive director, has officially resigned from his position effective July 31, 2019. “We are incredibly appreciative of the contributions that Fred has made to CIECA over the years and he will be truly missed,” said Steve Betley, CIECA’s chairman of the board. Iantorno became executive director of CIECA in July 2002. During his leadership, Iantorno helped build over 200 messages and all of the codes needed to provide meaning to those messages. In addition, he was instrumental in the implementation of the messages to improve the operation and bottom-line of CIECA’s member organizations. “Where I have taken CIECA has been an accomplishment of which I am most proud,” said Iantorno. “We are now a financially-viable organization playing key roles in impacting the industry.”

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Several Support Calibration During Rhode Island Hearing by Emmariah Holcomb, glassBYTEs.com

Representatives from Allstate Insurance and Safelite spoke at the Rhode Island Committee on Corporations hearing last week to voice concerns over vague language in proposed legislation regarding calibration. The two pieces of legislation referenced throughout the hearing were House Bill 6104 and Senate Bill 850. Both, if passed, would impact how repairs are done within the state and have the same section related to aftermarket glass and calibrations. “This chapter shall not apply to the repair or replacement of motor vehicle glass performed by licensed motor vehicle glass repair shops for non-collision related damage provided, the owner of the vehicle is notified in writing that installation of an aftermarket glass will require recalibration of safety-related systems, for which cost the insurer is responsible; provided, further, that an OEM glass is installed if specifically requested by the vehicle owner,” a section of House Bill 6104 reads. Although many, including the representative for Safelite, agreed on the need for vehicles with Advanced

Driver Assistance Systems (ADAS) to be calibrated regardless of the vehicle make and model and that customers should be made aware of the importance, there was one point that caused opposition. According to Scot Zajic, Safelite legislative affairs vice president, his company took a dim view of its vague language, references to different types of auto glass being superior to others and the need for vehicle calibration only for select vehicle models. “We have concerns about the language of this bill. First, it’s very vague and we fear it could, in a way, claw at the exemption we created last year and it could impact other glass shops and us for mobile repairs and replacements. Secondly, the language in the bill insinuates that one form of glass is better than another and we know that isn’t the case. And third, it states only certain cars with ADAS need to be calibrated when we know for a fact that all cars with ADAS need to be calibrated,” said Zajic. Allstate had similar issues with how the legislation is written. “What incentive is there not to have safety when it comes to windshields,” said

AASP/NJ to Co-Sponsor First Installment in Estimating Seminar Series AASP/NJ is co-sponsoring two upcoming seminars entitled “Estimating Accuracy Essentials,” presented by AASP/NJ President Jerry McNee and John Niechwiadowicz of QLC Inc. These will be the first in a multi-segment series on estimating topics.

“We all need to slow down,” McNee said. “These interactive classes will bring us back to our grass roots, allowing us to concentrate on tasks that we may overlook or take for granted in the simplest procedures. Everyone on the team needs the outcome to be the same. We can’t afford to miss a single item.” The seminars are scheduled for Tuesday, June 25 from 3-8 p.m. at the Hilton Garden Inn in Springfield, NJ, and on Tuesday, July 16 from 3-8 p.m. at the Hilton Garden Inn in Hamilton, 28

NJ. In addition to AASP/NJ, seminar sponsors include Central Paint, Innovative Solutions & Technology, Metropolitan Car-O-Liner, Reliable Automotive Equipment and Enterprise Rent-A-Car. The first segment in this series, designed for industry professionals with all levels of estimating experience, will focus on accurate diagnosis of all operations involved in one of the industry’s highest volume segments: light-damage, fast-track, single-panel repairs. Instructors will use interactive discussion and exercises to teach attendees how to write an effective, consistent repair plan that captures all billable hours. The cost to attend, which includes dinner, is $150 per person. Those who sign up for a new association membership at the seminar will receive a $100 discount on their association membership fee. Due to limited space, pre-registration is required. For more information or to register for a seminar, visit aaspnj.org.

JULY 2019 AUTOBODY NEWS / autobodynews.com

Tim Knapp, Allstate Northeast regional counsel. Knapp continued by saying the insurance company relies on its glass repairers to know if calibration is necessary and “we absolutely pay for that based on safety concerns and the expertise of the repairer.” “Our proprietary Bosch agreement gives Safelite the ability to calibrate 95% of vehicles on the road. So we know what we’re doing and we’re doing it right,” said Zajic. He also mentioned the company has performed more than 20,000 calibrations nationwide within a fortnight prior to the hearing. He noted that each typically takes 30 minutes to complete and costs around $300. Though Safelite maintained its opposition to some of the bill’s current language, Zajic said the company is “happy to keep working with stakeholders.” The hearing concluded with neither bill moving forward; however, they will be reviewed based on the comments made during the hearing. We thank glassBYTEs.com for reprint permission.

Dave Luehr’s Body Shop Presents ‘Human Triggers’

Dave Luehr’s Elite Body Shop Solutions announces the next installment of the FREE Elite Webinar Series. “Human Triggers: How to influence customers to choose your shop over the competition” will feature Ryan Taylor, CEO of BodyShop Booster, on Thursday, May 30, at 1 p.m. Central. To register, visit: https://events.genndi .com/channel/May2019EliteWebinar. Those who are unable to attend the live event can watch the recorded webinar by joining the Elite Body Shop Academy for free at http://www.elitebodyshop solutions.com/academy. This action-packed webinar will show attendees the fastest way to grow their shop by using behavioral triggers that will influence customers’ buying behavior. “This will be Ryan’s second time presenting with us on our Elite Webinar series,” said Luehr, founder of Elite. “The feedback from his last presentation received so much praise for its cuttingedge practical information.”

autobodynews.com / JULY 2019 AUTOBODY NEWS

California Appellate Court Affirms $1 Million Bad Faith Judgment Against GEICO by Autobody News Staff

On August 11, 2008, Michael Mazik, 24, was involved in a serious automobile accident on a highway in Riverside County. While driving about 45 to 50 miles per hour, he collided head-on with another car that was in his lane driving about the same speed. The other driver, who had crossed over double yellow lines in his attempt to pass slower traffic, was killed. Mazik received $50,000 from Mercury Insurance Company, the insurer for the driver of the other car who was at fault in the accident. That sum amounted to the full value of the driver’s policy. On December 31, 2009, Mazik’s attorney submitted a claim to GEICO under Mazik’s underinsured motorist policy, which had a policy limit of $100,000. The letter included medical records of Mazik’s treatment to date along with other supporting documentation. In light of the “severity of the damages” and the residual effects of the injuries, the letter requested compensation of $50,000, representing the full policy amount offset by the $50,000 payment Mazik

had already received. Mazik filed this action for bad faith against GEICO on May 7, 2014. The case was tried to a jury in July 2016. The jury returned a verdict in favor of Mazik and awarded compensatory damages of $313,508. The compensatory damages consisted of $300,000 for “[m]ental suffering, anxiety, and emotional distress” and $13,508 for “attorney’s fees and costs to recover the insured policy benefits.” The jury also awarded punitive damages of $4 million. Following a motion for a new trial, the trial court found that the punitive damages award was excessive in light of the ratio of punitive to compensatory damages and the fact that Mazik’s claim “relates to financial damages” rather than personal injury. The court reduced the amount of punitive damages to $1 million. Mazik v. GEICO (2019) 35 Cal.App.5th 455 involved a policyholder’s claim for the $50,000 limits under his underinsured motorist policy. After a jury found that GEICO had unreasonably delayed paying those limits, it awarded the policyholder $313,508 in compensatory damages and $4 million in puni-

JULY 2019 AUTOBODY NEWS / autobodynews.com

tive damages. The trial court reduced the punitive damages to $1 million, but GEICO appealed, arguing that: (1) the evidence was insufficient to prove that “any officer, director or managing agent” of GEICO had acted in bad faith, (2) the conduct did not constitute “oppression, fraud, or malice”, and (3) even the reduced punitive damages award was excessive. GEICO appealed only the punitive damages award. It argued that (1) the evidence is insufficient to show that any “officer, director, or managing agent” was involved in any act of bad faith (Civ. Code, § 3294, subd. (b));[1] (2) even if a managing agent was involved, the evidence is insufficient to show that such an agent personally engaged in “oppression, fraud, or malice,” or authorized or ratified such conduct by other employees, as required to support a punitive damages award (ibid.); and (3) the punitive

damages award was excessive, even as reduced by the trial court. The California Court of Appeal rejected GEICO’s arguments and affirmed the punitive damages, ruling “There is sufficient evidence to show that GEICO’s managing agent ratified conduct warranting punitive damages. In concluding that Mazik’s claim was worth far less than the policy limits, GEICO disregarded information provided by Mazik showing that he had a permanent, painful injury, and instead selectively relied on portions of medical records that supported GEICO’s position that Mazik had fully recovered. As reduced by the trial court, the $1 million in punitive damages (approximately three times the amount of compensatory damages) is within the constitutionally permitted range in view of the degree of reprehensibility of GEICO’s conduct.

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Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.

National Associations with Stacey Phillips

FCA Certified Collision Care Program Elevates the Focus on Proper Repairs Autobody News recently reached out to Fiat Chrysler Automobiles (FCA) to learn more about the FCA U.S. LLC Certified Collision Repair Program and the role of Assured Performance Network. FCA shared

how body shops can find out more information.

Can you please tell us what prompted Fiat Chrysler Automobiles to establish the FCA Certified Collision Care Program?

In 2011, we recognized the importance of assisting our Chrysler, Dodge, Jeep®, Ram and Fiat customers through every stage of the ownership cycle, including the unfortunate occurrence of an accident. With vehicles that feature ever-increasing levels of technology and complexity, it was important to offer customers a network to turn to for safe and proper collision repair. In July 2012, we launched the FCA U.S. LLC Certified Collision Repair Program. It is the first OE certification program managed through Assured Performance Network, the largest OE

The FCA U.S. LLC Certified Collision Repair Program was launched in July 2012. Credit: FCA

highlights about the program as well as the type of training offered and

certification group in the U.S. We currently have 1,847 shops that are part of the program.

shops have the right tools, equipment, training and modified facilities to be able to provide a proper repair. What are some of the highlights you would like to share with collision repairers and others in the industry about the program?

Mopar, established in 1937, is the official service, parts and customer care brand for FCA U.S. vehicles — Chrysler, FCA said its certified shops utilize the right tools to safely and properly repair vehicles to FCA standards Dodge, Jeep®, Ram and and procedures. Credit: FCA Fiat. Mopar’s top priority is to deliver owners the confidence and What is the role of Assured peace of mind that comes through rePerformance Network? pairs made at an FCA certified body shop with the use of OEM replaceAssured Performance Net- ment parts. Our program seeks to be work facilitates the program a convenient OE partner for repair on behalf of FCA and certifies that centers while requiring industry-

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leading adherence to OE repair methods. For example, FCA has developed a list of the necessary equipment that is driven more on capability specifications rather than specific brand name tools. For all of our vehicle owners, Mopar is there every step of the way on their customer journey, and that includes safe and proper collision repair through a trusted network.

Q: A:

vehicles to FCA standards and procedures. FCA works closely with our shops to spread the word that they are part of our trusted network, and we feel this is another great benefit of our program. We host a certified

What are the benefits of being part of the certified program?

Participation in the program elevates the focus on proper repairs. Through our partner network, we are able to require repair methods and training levels that only about 10-15 percent of the industry can meet, and we feel that’s a great service for our customers. Another benefit for our Chrysler, Dodge, Jeep®, Ram and Fiat owners is access to a network of shops where they can feel confident the focus is on safe and proper repair. Our certified shops have the right tools in their toolbox to safely and properly repair

Q: A:

What type of training is offered for certified shops?

For 2019, we have continued to invest in both web-based and in-person training on how to correctly repair, scan and recalibrate FCA vehicles. We are taking a closer look at our network’s performance/capabilities and ensuring we have the right shops in the network for our customer experience. How can collision repair facilities find out more details about the program?

For more information on the FCA U.S. LLC Certified Collision Repair Program, visit http:// www.certifymyshop.com/fca.

Mopar is the official service, parts and customer care brand for FCA U.S. vehicles. Mopar-modified Ram 2500 Heavy Duty and a Jeep Gladiator shown in photo. Credit: FCA

shop locator on the Mopar owner website and the owner mobile app. We also partner with certified shops to offer customized mailers to Chrysler, Dodge, Jeep®, Ram and Fiat vehicle owners in certain zip code proximity to their locations.

For more information about Assured Performance Network, visit https:// www.assuredperformance.net/.

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Gerber Acquires Four Locations in NV and AZ

The Boyd Group Inc. announced on May 16 the acquisition of four collision repair centers located in Nevada (three locations) and Arizona (one location). The shops are located in the Las Vegas area and Scottsdale.

These locations were previously branded New Look Collision Center, which originated in 2004 with a single shop. Additional locations opened in 2011, 2017 and 2018. “These acquisitions reinforce our brand and we are excited to continue providing high-quality service to customers in this region,” said Tim O’Day, president and COO of the Boyd Group. “We are eager to also better assist our insurance partners by expanding our footprint in this growing area.” Obtained via Newswire.

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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 1970s - Part 2 - The OE’s Become Their Own Worst Enemy See Part 1 in June, 2019

The American fleet had grown exponentially by the 1970s. This growth has led to an influx in business for many body shops. Vehicle manufacturers were all about new cars, new models and the next great gizmo to help sell more cars. However, little thought was given to parts and service. Manufacturers had developed their network of dealers—and, it was up to those dealers to take care of the customer after the sale. The problem was that there were not enough dealers with body shops to handle the level of business the new cars created. It would be years before the OE’s realized they had to provide better support to the industry and to independent shops. Availability of parts from automakers was limited and therefore, it was not an OE’s first priority. Fred Jones, Pennsylvania shop owner, testified before a Senate Subcommittee, investigating the high cost of auto repair states. Jones continued to say that repairers cannot depend on parts deliveries from the big three automakers. He said he waited 28 days for parts on a Ford, 69 days for Buick parts and 37 days for Plymouth parts. He noticed that many new parts came in damaged. The repairer can go back to the dealer who claims the damage was produced by the trucking company, but it is difficult to make a claim. Even if a claim is made, the trucking company may or may not pay it. If the dealer will not compensate the shop for the repair, the shop must eat the cost. Jones continued to share his input on pricing. He said many dealers now receive wholesale compensation to help defray their reduction in gross profit when they discount parts to the independent shop. However, many deals do no avail themselves of the program and continue to sell parts to shops at a price, which gives the dealer-owned shop an unfair advantage. At the time, a dealer could give an independent body shop a discount of 10% off the MSRP 34

price and 15% off if the shop was a great customer. Furthermore, insurance companies are having cars towed from Jones’ yard to have them repaired at other shops, for what is claimed to be a lower price, without knowing what his price was, Jones’ said. The pressure for American automakers to provide better parts availability began to surge in the spring of 1970. Roy Lovell, claims manager for Nationwide Insurance, instructed all of his field people to alert him of any parts delays. Lovell planned to document any delays and bring the information to Senator Phillip Hart, the man in charge of the Senate Subcommittee, investigating the automotive industry. The industry has made it clear: the need for expedient parts delivery to collision shops is increasing. American Motors Corporation (AMC) heard the industry’s cry and announced the creation of an expanded corporate parts distribution division. Michael Lonergan is now the division’s general manager. In March of 1971, AMC announced that they had a new computerized parts ordering system, which enabled them to maintain an order performance level of 92%–higher than any other domestic car company. A part ordered through the system can be in the dealer’s hands within 24 to 72 hours. This all sounds good, until one realizes that this was part of an intricate distribution system—driven at the OE dealer level—a level with less technology and sophistication. In the early 1970s, dealers had four different ways (and slight variations thereof) to generate a parts order: Computerized system – ADP and Reynolds and Reynolds (R&R) came up with similar programs designed to control inventory and generate parts orders. Expensive systems as such can be effective for those larger dealers who can afford them. Pad system – Both ADP and R&R had systems whereby the dealer’s entire parts inventory was up-

JULY 2019 AUTOBODY NEWS / autobodynews.com

loaded onto a computer along with the amount in stock. The results were printed on a “pad” of paper and delivered overnight to the dealer. The dealer then noted additions to and deletions from the inventory by placing “tick” marks in the proper column next to each part number. Periodically, the pad was returned to the computer at the company headquarters and a new, updated pad returned to the dealer. Based on parts movement, the system could then be used to generate a suggested parts order. This system was slow, prone to inaccuracies and not very efficient. Cardex system – Some of the smallest dealers kept track of their parts inventory by generating a 3X5 card for each part number in their inventory. Each day, a clerk would have to review every repair order and retail parts ticket generated the previous day, and mark on each card

what was sold, or what came into the inventory from an incoming parts order. Then, the clerk would review each card and determine if an order for the parts was needed. Seat of the Pants system (SOTP) – This system suggests that the dealer had no order-generating system at all. Except for the periodic ordering of some very fast moving items like oil filters or spark plugs, nothing was ordered until a customer requested it. The dealer also had a few different ways to order parts from their OE warehouse. Again, depending on the OE, these methods had different variations. Stock order – This order type was designed to allow the dealer to replenish their own stock. Typically, it provided the most benefits to the dealer—free freight, additional disSee Their Own Worst Enemy, Page 54

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HONDA CONNECTICUT

Lia Honda of Enfield Enfield

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Manchester Honda Manchester

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Schaller Honda New Britain

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Berlin City Honda South Portland

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Prime Honda Saco

207-391-7910 207-282-0900 Dept. Hours: M-F 7:30-6; Th. 7:30-7; Sat 7:30-4 klavalle@driveprime.com MARYLAND

Criswell Honda Ger mantown

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Acura of Boston Brighton

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Acura of Peabody Peabody

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JULY 2019 AUTOBODY NEWS / autobodynews.com

Please contact these dealers for your Honda or Acura Genuine parts needs. MARYLAND

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Dept. Hours: M-Thu 7-8; Fri 7-6; Sat 8-6; mschumer@madisonhonda.com

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Rossi Honda

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Honda of Turnersville Tur nersville

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Hudson Honda West New Yor k

866-483-6917 201-868-9500

Newton

800-842-0557 973-579-3500

Dept. Hours: M-F 8-5; Sat 8-4 kbennett@liacars.com

Dick Ide Honda R o ch e s t e r

800-462-0056 (N.Y.) 585-586-4919 Dept. Hours: M-Thur 8-8; Fri 8-5:30; Sat 8-5 parts@dickide.com

Lamacchia Honda S y ra c u s e

315-471-7278 Dept. Hours: M-F 7:30-5:30; Sat 9-1 parts@lamacchiahonda.com

Lia Honda of Albany Albany

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Apple Honda

Dept. Hours: M-F 7-6; Sat 7-4; Sun 10-4 applehondaparts@appleauto1.com

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800-682-2914 215-657-3301

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VER M O N T

802 Honda Berlin

802-223-9700 Dept. Hours: M-F 7:30-5; Sat 8-Noon hondaparts@802cars.com

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Acura Turnersville

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888-883-2884 856-516-6060

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Dept. Hours: M-F 8-5; Sat 8-4 kristen.powell@penskeautomotive.com

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Curry Acura

Maple Shade

856-722-9600 Dept. Hours: M-F 8-5; Sat 8-4 bmartinsen@group1auto.com

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718-507-3990

Dept. Hours: M-F 8-6; Sat 8-3 ron@parkaveacura.com

Wo o dside Dept. Hours: M-F 8-6; Sat 8-5; Sun 9-4 johnp@paragonacura.com

Sussman Acura

PENNSYLVANIA

Baierl Acura Wexford

800-246-7457 724-935-0800 Dept. Hours: M-F 8-5; Sat 8-1 johnsabella@baierl.com

Davis Acura Langhor ne

866-50-ACURA 215-943-7000 Dept. Hours: M-F 7-7; Sat 8-4 markh@davisacura.com autobodynews.com / JULY 2019 AUTOBODY NEWS

Industry Insight with John Yoswick

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

Consumer Advocate Gives Industry New Voice With Insurance Regulators Ohio attorney Erica Eversman, insurers, such as the health insurer who has long been an advocate for covering the costs of medical care consumers and collision repairers for the couple hurt in the accident in legal battles with insurers, has that led to the John Eagle lawsuit or recently become one of about 30 the garage-keepers’ insurer covering volunteer consumer liaisons to the the shop. National Association of Insurance Eversman said California InsurCommissioners (NAIC). The con- ance Commissioner Ricardo Lara sumer liaisons attend the NAIC’s seemed particularly receptive after three meetings per year that draw her presentation to work with her state insurance commissioners and “on solving some of these issues for their staff, along with inconsumers,” and she sensed surance industry represen“immediate opportunities to tatives. be able to make a change” The NAIC focuses on in New York, North Carinsurance regulatory issues, olina, Colorado and Missisoften drafting or, at least, atsippi. tempting to draft model leg“This is not to say other islation states may adopt. In states wouldn’t be interOhio attorney Erica the early 2000s, for examested, but I didn’t have any Eversman ple, the NAIC unsuccesspersonal interactions [at the fully attempted to draft a proposed NAIC meeting] with some of the regulation for states to consider the other states,” Eversman said. use of non-OEM parts. Mississippi is one state in which Eversman said the NAIC is now repairers shouldn’t have trouble being largely focused on healthcare issues. paid for OEM repair procedures, she “There is nothing going on right said. Following her presentation, now at the NAIC involving auto insur- Eversman spoke with Deputy Insurance, but we intend to change that,” ance Commissioner of the MissisEversman said. sippi Department of Insurance, Mark Presentations made at NAIC Haire. meetings help lead the organization “Our commissioner already manto have one of its committees take on dates the use of OEM procedures. We a particular issue, she said. She pre- don’t have that issue,” Eversman said sented at NAIC on the John Eagle Haire told her. “That was the first I’d Collision Center lawsuit. The lawsuit heard of that. That could be true, I referred to the dealership collision don’t know, but that was the position shop that was sued for not following they took.” OEM repair procedures on a vehicle, Eversman acknowledged that in which a Texas couple was injured many collision repairers and shop asby, she added. Eversman said she fo- sociations have become frustrated cused on the need “to have insurance with trying to get their state insurcompanies pay for OEM procedures ance regulators to address their conthat affect safety.” cerns about some claims practices by When asked if that would drive auto insurers. up insurance rates, Eversman said it “Unfortunately, as I think we’ve may or may not. all experienced, sometimes it seems “But even if it did, would you as if the insurance commissioners are rather have insurance rates go up or there to protect the insurance compawould you rather have unsafe cars go nies [rather than consumers],” Eversback out on the road just so we can man said. “I certainly have had that keep insurance rates down?” Evers- experience.” man asked. One message she said she reShe also said auto insurers de- ceived at an NAIC meeting centered clining to pay for “proper, safe re- on the idea that shops should file pairs” has repercussions for other complaints about insurer practices

JULY 2019 AUTOBODY NEWS / autobodynews.com

with their state regulators. “I told commissioners we sometimes get push-back—we’ve been told there are some states in which the department of insurance won’t take complaints from collision repairers—only from consumers,” Eversman said. “They told me no, that isn’t true.” She said if shops are told that, they should contact her so she can address it with the state agency involved. Complaints directly from consumers may be better, she said, “but how is the consumer supposed to know why a roof needs to be welded rather than glued? They can’t know that.” One state regulator told her they don’t have the authority to make factual determinations about who is at fault in some disputes, she said. Getting complaints from multiple shops around a state—rather than a lot

from one shop—can help demonstrate a pattern or practice and thus trigger an investigation, she added. When submitting a complaint about an insurer’s refusal to pay for a necessary OEM repair procedure, she recommended shops to stick to the facts. “Do not whine,” Eversman cautioned. “Tell them the proper way to repair the vehicle and let them know it’s a safety issue.” The NAIC website offers links to each state’s insurance regulatory agency, including a link that shows how to file a complaint in each state. Eversman also suggested that collision repairers support the re-election next year of Mike Causey, a retired life insurance executive and a former lobbyist for the North Carolina Autobody Association of Collision and Autobody Repair (NCACAR).

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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.

ASA Annual Business Meeting and Conference Exceeds Expectations On April 30-May 2, the Automotive Service Association (ASA) hosted its 2019 Annual Business Meeting and Conference at the Hurst Conference Center, in Hurst, Texas.

and where we are going. In addition, new officers are sworn in and election results are announced,” said Tony Molla, ASA vice president. The meeting began on Tuesday, April 30, with a joint meeting of ASA’s Board of Directors, Affiliate Executive Directors and Affiliate Board Chairman/President of Collision and Mechanical Opera-

Bob Cooper of Elite Worldwide presented a two-part class on pay plans. Credit: Chasidy Rae Sisk

“ASA’s Annual Business Meeting is a combination of business management and technical training. It allows members and leaders to network and to learn the latest information on what the association is doing

Roy Schnepper, ASA outgoing chairman (center), is flanked by his wife, Roseanna and Ray Fisher, ASA executive director, as he is presented with the traditional ASA Chairman’s Ring. Credit: Chasidy Rae Sisk

tions Committees. There was also an Advanced Driver Assist System (ADAS) calibration class for both collision and mechanical members, provided courtesy of Standard Motor Products.

Jeremy O’Neal of Advisor Fix did double duty at the meeting in serving as co-moderator of the Recruitment & Retention panel and providing two classes for the shop-owner attendees. Credit: Chasidy Rae Sisk

On Wednesday, April 30, additional training opportunities included a class on pay plans presented by

Bob Cooper of Elite Worldwide and a vehicle design and technology class taught by Tom McGee, courtesy of Spanesi USA. Sarah Fraser of Haas Performance Consulting provided a presentation on Generation Z—outlining the difference between Generation Z and millennials.

Sara Fraser from Haas Performance Consulting presented an informative session on the differences between millennials and Generation Z. Credit: Chasidy Rae Sisk

“The interesting takeaway here proved valuable as an employer and

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as a customer,” said Ray Fisher, ASA executive director. “It really helped you understand why their thinking process is different from boomers— not in a ‘bad way’ either, just different influences.” Molla moderated a Recruitment and Retention panel, on the afternoon of April 30, featuring panelists from TechForce Foundation, ASE

Education Foundation, AMi, Collision Repair Education Foundation (CREF) and the U.S. Department of Labor. Jeremy O’Neal of Advisor Fix also taught two informative sessions. In addition, a variety of board meetings and committee meetings were held throughout the conference. Lastly, ASA hosted its annual awards dinner on the evening of April 30. “The ADAS training and Recruitment and Retention Panel discussion was well received,” Molla

said. “We were glad to receive some suggestions for next year along with positive feedback. The event exceeded our expectations.”

ment, most of our news and information is delivered electronically. While this is certainly efficient, it can’t replace the value of personal interactions and networking as part of a robust involvement in the industry—it’s always better when you can put a name to a face.” During the ASA updates, Fisher announced the launch of its new ASA app, which can be found in any phone’s app store. The Recruitment and Retention panel explored the resources “We partnered with Moavailable from a variety of organizations to help shop owners bileSoft to develop a new find the talent they need. (l to r: Tony Molla, ASA VP of tool for our members to get Industry Relations; Christen Battaglia, CREF; Trish Serratore, ASE Education Foundation; Jeff Peevy, Ami news and information on President; Roxann Griffith, US Department of Labor; the go, with additional feaand Jennifer Maher, TechForce Foundation). Credit: tures like an ASA Member Chasidy Rae Sisk Shopfinder, industry events, The ASA’s goal is to advance legislative news and member beneexcellence in the service and repair fits,” said Molla. “MobileSoft can industries. Molla said one of the ben- also provide a customized mobile efits of the meeting, aside from the app for any ASA member business at training and education, is the ability a very affordable price as part of our member benefits.” to network with like-minded peers. “It’s important for our members to have the opportunity to meet face- For more information on ASA and its to-face at least once a year,” Molla future events, visit asashop.org/ansaid. “In today’s connected environ- nualmeeting.

Continued from Page 38

New Voice

Causey, a Republican, was in the news earlier this year after he alerted federal law enforcement about what he saw as an attempt to bribe him. The chairman of the Republican Party of North Carolina—one of four people indicted in the scheme—allegedly offered campaign contributions to Causey to help ensure special treatment for an insurance firm. All those indicted have denied the allegations. “Mike is the guy who wore a wire for the FBI” after he told authorities of the alleged bribery attempt, Eversman said. “Mike is a friend of this industry. He’s willing to help the industry, but we have to keep him there.” Eversman said that like the other consumer liaisons, she has a one-year term in the position at the NAIC, but can reapply this fall for another term. “Some of the consumer liaisons have been with NAIC for 15-plus years and really know the various departments and how they operate,” she said.

autobodynews.com / JULY 2019 AUTOBODY NEWS

Shop Management

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

with Ed Attanasio

Are You as High-Tech as Your Customers? No one wants to take their car to a body shop. The customer is either mad someone hit their car or embarrassed, thinking the accident was their fault. Collision repair is not an impulse buy, but it’s a service that is needed; so, people want the process to be fast and convenient. Now, collision repairers are leveraging technology to better accommodate customers. Consumers used to utilize any form of technology that made their collision repair easier. Nowadays, people expect technology to make their lives easier in every realm. Everyone—from seniors to millennials—are no longer afraid of cutting-edge technology they don’t understand, but do value, such as computer-based systems, automation, robotics, artificial intelligence and more. Tech-savvy customers are hard to impress. The true test of any new form of technology is when it becomes a daily part of our lives. Megan Williams, chief marketing manager at Lefler Collision & Glass Repair oversees marketing for this 66-year-old MSO with three locations in Indiana and one in Kentucky. “While the collision repair industry as a whole is outdated in terms of processes, we are experiencing a shift in service due to the addition of technological advancements,” she said. Technology is changing the world every day and body shops tapping into it are benefitting as a result. Body shops on the cutting-edge will excel, while late adopters will suffer. Below are three types of technology that can help make body shops become accountable and efficient while creating consumer confidence and trust.

Videos In the old days, you dropped off your car for repair and wouldn’t see it AUTOBODY

again, until the job was complete. Now, however, thanks to video technology, you can play a significant role throughout the entire repair process. Vehicle manufacturers are developing video technology that will empower car owners to find out about things such as scratches and dents that occur during transit, including the date and time of the incident while overseeing the repair process. Mercedes is a company that offers an IP solution, incorporating video surveillance software and IP cameras. Exterior cameras are able to record every aspect of the vehicle being loaded onto the showroom, including every license plate number. This technology allows users to access live video via the Internet instantaneously.

Apps People have an average of 35 apps on their devices. As a result, developers worldwide are clamoring to meet the demand. Collision repairers realize that apps used to transmit data about their various services and specials is a great way to get more business. Today’s car owners are more aware of technology; therefore, body shops are looking for ways to cater to today’s mobile customers. Apps are gaining momentum, Williams said. “Thanks to the ‘Amazon effect,’ consumers, like us, are looking for ways to incorporate technology into our everyday lives,” she said. “You can see this in our day-today behaviors such as ordering Starbucks from their app, so it is ready for us upon arrival, Prime shipping on Amazon and Target with their new order and drive-up service.” Apps help make body shops more responsive to their customers through software techmology such as UpdatePromise, the 3M Free Collision Repair App and Bodyshop Booster, among others. Williams sees value in the colli-

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JULY 2019 AUTOBODY NEWS / autobodynews.com

sion repair industry’s plethora of new apps. “Applications such as Bodyshop Booster make it possible for us to capture business during times where we are not open, but people still need to get in touch with us,” she said. “36 percent of individuals want to do business with us while we are closed, according to Mike Anderson’s research. We are seeing more individuals prefer to have text updates via CCC rather than phone calls, as it allows them to be updated more frequently and not have disruptions throughout their day.” Blogs Blogs are playing a major role now too, as shops educate consumers about their cars with helpful tips about different aspects of their vehicles and how to repair them. Blogs create a smarter customer—they have to tap

into technology to satiate their hunger for more. Experts forecast that the rapid evolution of in-car technology and consumer-focused mobile apps will place consumers firmly in the driver’s seat when it comes to repairing their cars. At the end of the day, technology makes our lives easier, but superior customer service remains crucial, Williams said. “As CCC reported in their 2019 Crash Course, consumers who are provided opportunities to ‘save a trip’ and make the collision repair process less of a hassle are more likely to return due to the superior service they received,” she said. “Other potential benefits include reduced cycle time due to the ability to plan for the vehicle prior to its arrival, increased employee productivity due to fewer phone calls and time spent writing estimates in person.”

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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.

Vehicle Owner’s Manuals Help Educate and Negotiate Need for Various Procedures My friend Danny Gredinberg at the Database Enhancement Gateway (DEG) recently made available a document that includes links to each automaker’s database of online vehicle owner’s manuals. I am blown away by how useful a tool this can be. If you haven’t taken some time to review some of these manuals, you’re missing out on awesome content that can help you or your estimators with damage analysis. I know from the “Who Pays for What?” surveys I conduct with CRASH Network that only about one-third of shops say they are being paid regularly to inspect seat belts when they do it—and bill for it—as a necessary and “not included” repair procedure. However, nearly half of all shops say they’ve never sought to be paid for this critical step. The owner’s manuals are a great tool to educate your customers about

the importance of this necessary step. For example, take a look at the owner’s manual for the 2017 Nissan Armada. It states that “All seat belt assemblies, including retractors and attaching hardware, should be in-

spected after any collision. Seat belt assemblies not in use during a collision should also be inspected and replaced if either damage or improper operation is noted.” If a seat belt pretensioner has activated, “it cannot be

The 2017 Nissan Armada owner’s manual indicates when seat belts should be inspected or replaced. Credit: Mike Anderson

INFINITI OF NORWOOD

reused and must be replaced together with the retractor.” Now, keep in mind, this doesn’t apply to every Nissan vehicle. The manuals are specific to the model and year of the vehicle. That’s why, like the OEM repair procedures themselves, the owner’s manuals can be more effective than automaker position statements at demonstrating the need for certain procedures to take place. I’m sure many of you have had an insurance company say they don’t want to pay for a vehicle scan, right? They may say, “I don’t care what the automaker’s position statement is.” So, again, take a look at that same owner’s manual for the 2017 Armada. It very clearly states: “If there is an impact to your vehicle from any direction, your Occupant Classification Sensor (OCS) should be checked to verify it is still functioning correctly.” The OCS, it says, “should be

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The owner’s manual for the 2017 Nissan Armada says the occupant classification sensor should be checked after any vehicle impact. Credit: Mike Anderson

A “Who Pays for What?” survey of more than 600 shops found that about 34% of those who bill to inspect seat belts are paid regularly for the procedure by the nation’s largest eight insurers. Credit: Mike Anderson

JULY 2019 AUTOBODY NEWS / autobodynews.com

checked even if no airbags deploy as a result of the impact. Failure to verify proper OCS function may result in an improper airbag deployment resulting in injury or death.” That’s a pretty strong statement. The only way to check your OCS is with a vehicle scan. Some automakers also require a scan as part of the seat belt inspection. I think you will be surprised by some of what you can find in the owner’s manuals. One of the things I would encourage you to do is review the owner’s manual for each vehicle with the owner when they are dropping it off for repairs. If you’re certified by the automaker and equipped to conduct the inspections, you can let the customer know you will do this as part of the repair, or you can let them know you will sublet it to a dealer. Using the owner’s manual is a great way to educate your customer early in the process. Furthermore, customers want to do business with someone they trust and this is a great way to help gain their trust. In my next column, I’ll dig more into the topic of building customer trust.

Veterans Encouraged to Become Entrepreneurs

Maaco Collision Repair and Auto Painting, the leader in the $43 billion automotive paint and collision industry, and a longtime supporter of our nation’s veterans, is proud to announce significant financial incentives for veterans who want to become entrepreneurs. A new franchisee who qualifies as a veteran will receive a substantial reduction on the initial franchise fee, as well as a reduction on the royalty fees during the first two years of a new Maaco center’s operations. “Veterans bring with them skills learned throughout their service - such as a strong work ethic, determination and a get-itdone attitude that make them successful entrepreneurs,” said Bob Benjamin, president of Maaco and former Colonel in the U.S. Army. To learn more about franchising opportunities with Maaco, visit: franchisewithmaaco.com or contact Mason Bennett at mbennett @maaco.com.

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Hail! Hail! to Paintless Dent Repair

storm takes place. He warns businesses to be prepared when a hailHail season is considered to be from storm comes. When hail happens, mid-April to mid-September. It is shop operations can get busy which during this time when body shops ex- is why PDR services are necessary, pect a rush of business with damaged he said. cars flooding in. Auto body shops are “Vehicles that require paintwork slammed with work as inclement can overload a shop’s paint booths, weather surfaces throughout the re- so working closely with the PDR gion. Shop owners are often looking company to minimize work blockage for ways to quickly repair these dam- is critical,” Volquardsen said. “Body aged vehicles. shops that offer hail repair should Paintless Dent Repair (PDR), consider operating two shifts to minused for hail damage, minimizes the imize the effect on the daily operasteps needed to perform a repair on tion and to expand their paint booth the body of a vehicle. Dentsmart, a capacity.” company that provides PDR, is comWilliams have seen the PDR inmitted to providing comprehensive dustry change in several important education on this process to all tech- ways that benefit both shops and nicians. customers. New technology and spe“PDR is a skilled process of man- cialized tools has changed the repair ually removing dents without damag- process, he said. ing the automobile’s finish,” “The introduction of said Jeff Williams, Dentspanel shrinking devices has mart partner. “While it is a caused heat to shrink and specialized repair process, a metal to stretch,” Williams majority of repairs are comsaid. “While effective, they pleted by hand. Standard can be intrusive.” tools include lights, hand PDR does require a techtools, glue-pulling systems nician to touch the vehicle Dentsmart’s and hammers.” physically, so we’ve seen litJeff Williams Keith Volquardsen, a tle to change the process; has witnessed PDR expert with The Claims technology change however, specialized tools the PDR industry Bridge, shows body shops have become available. on many levels how to make money per“Many of these tools come forming PDR services when a hail- in various shapes and sizes, different by Ed Attanasio

onPeak Returns as SEMA Show Provider The Specialty Equipment Market Association (SEMA) is partnering with onPeak to provide SEMA attendees with affordable and reliable housing options for the 2019 SEMA Show. Available through www.sema show.com/travel-and-lodging, hotel room reservations may be made at nearly 40 hotels throughout Las Vegas, NV. Housing in Las Vegas during the SEMA Show has been known to sell out and may be limited. Rooms booked through onPeak include

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guaranteed low rates, no hidden fees and may be canceled without penalty. “SEMA showgoers have options as to where to stay during the SEMA Show,” said Tom Gattuso, SEMA vice president of events. “Through onPeak, attendees have dozens of hotels from which to choose, all at the lowest possible cost.” The 2019 SEMA Show taking place Nov. 5-8, 2019, in Las Vegas, is the premier automotive tradeonly show in the world.

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JULY 2019 AUTOBODY NEWS / autobodynews.com

materials and have interchangeable load—to 100% over capacity when a hailstorm hits,” Haxton said. “There working surfaces,” he said. Technological advances do ben- are a lot of questions to be addressed. How to handle the calls from efit technicians and the incustomers and insurance dustry as a whole, but certain providers? How to efficiently advances make it harder for handle estimates and schedulPDR technicians to get a ing so you capture the job?” grasp of the tools required to Dentsmart and other PDR repair these cars, Williams companies are using new said. technology to serve its net“Dentsmart embraces Debbie Haxton at Dentsmart has work shops and provide betthese challenges,” he said. shown countless ter customer service, Haxton “Our advanced training probody shops said. grams not only include PDR throughout the “At Dentsmart, we derepair processes, estimating country on how to and customer service skills succeed and make veloped a proprietary hail but also advanced electronics a profit doing PDR management system—an and safety systems, structural design, automated estimating program that panel composition, position statements interfaces with the body shop’s estimating program,” she added. “We and OEM repair procedures.” Debbie Haxton, another partner also capture all of the photos during at Dentsmart, said a hailstorm can the estimating process.” So, the next time you see a hailmean more revenue, but it’s a lot more involved than just simply repairing storm coming your way, think about dents. There is havoc that begins in the PDR and how it can raise your bottom line. Adding another item to your front office, she said. “In a matter of minutes, a shop menu of services requires strategic can go from capacity—trying to han- planning and the correct training, tools dle their normal conventional work- and equipment to do the job right.

autobodynews.com / JULY 2019 AUTOBODY NEWS

Evaluating AI Tools and Applications: Tips From Tractable AI by Chasidy Rae Sisk

Technological advances in the collision repair industry are an ongoing challenge; however, when utilized properly, many of these advances, such as artificial intelligence (AI), can be a huge benefit during the repair process. Advances, such as Tractable, help develop AI for accident and disaster recovery. “Tractable’s market-leading tools use photos to automate damage appraisal—allowing partners to improve accuracy, reduce turnaround time and deliver a revamped customer experience,” said Ahmed Zifzaf, senior partnerships and marketing manager at Tractable. “One of Tractable’s AI tools is their ‘review product,’ which helps automate estimate desk reviews, by comparing the photos of a collision with the estimate that was written.” Although it’s common knowledge that AI photo-analysis solutions are increasingly being marketed across the industry and promise to lead to major changes in the repair

process, it isn’t always clear how well these solutions work. While it may seem daunting to determine how well an AI photo system works, Tractable’s educational video shares three simple steps collision facilities can use to test such solutions. The first step is to obtain a set of photos the AI has never seen. Secondly, upload the photos on the spot to the AI system and lastly, evaluate the results yourself. Tractable’s AI tool generates estimates of repair or replace decisions and a likely range of labor hours, based on the uploaded photos. During a demonstration earlier this year, Alex Dalyac, Tractable CEO, noted that the range is meant to address the “notoriously ambiguous task” of determining labor hours since experts will estimate different labor times for the same procedure. Users can configure their AI tool to specify the number of hours for a certain function. “Our AI can predict bodywork, R&I and paint time,” said Zifzaf. “In general, these need to be adjusted to

the client as opinion times vary greatly across North America (e.g. based on the type of insurer, repair facility, etc.). In the demo, our AI outputs a range of hours instead of specific hours, but in production, we calibrate to the particular client or market area.” When it comes to the decision of repair vs. replace, Tractable AI begins with part recognition, then moves onto damage assessment and then lastly, it makes a recommended decision based on its confidence level. The system’s confidence level will depend on part visibility, photo conditions and extent of the damage. This means the AI can also interact with the person taking photos to request specific additional photos on the spot. “Confidence level can be seen as a proxy for how certain the AI is making the correct decision,” Zifzaf notes. “The decisions made can be calibrated to specific geographic areas, carriers or shops.” Tractable’s AI technology specializes in exterior damage, but it can also be used to predict damage to

things like sensors via decoding the VIN and predicting the damage associated with an impacted panel. However, Tractable recommends that shops still perform a diagnostic scan on the affected components that are unseen by photos. “Our research is driven by visual algorithms, so we can get an accurate assessment of what happened to the exterior, but we recommend that shops still do their due diligence to see what other damage there may be internally,” said Zifzaf. Tractable’s AI software is able to “learn” from previous photos, said Zifzaf. “The AI is trained on millions of photos from opt-in customers and partners,” said Zifzaf. “Algorithms can work on any make and model to look at different photos and severities. This is how it learns to calculate the corresponding damage and labor hours in the future.” AI photo technology can benefit shops in several key ways. Shops can use AI for triage, Zifzaf explains, “It is inefficient for body shops to re-

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ceive vehicles that are total losses. AI total loss appraisals take seconds and can help ensure the right vehicles make it to the salvage yards instead of the shops.” AI technology can also be used for self-auditing purposes, especially for larger MSOs. Zifzaf says, “They can get started by augmenting or automating desk reviews using photo AI systems. This can allow shops to self-manage accuracy; while, allowing shop employees to spend more time focusing on customer needs and repairs. It can also help MSOs identify and promote top-performing shops.” Additionally, shops can use AI to automate and streamline estimate writing and interactions with insurers. “Body shops can calibrate AI to their accurate repair standards and reduce supplements and unnecessary interactions with the insurer,” according to Zifzaf. “This allows them to spend more time repairing cars and taking care of customers, instead of wasting precious time on other tasks that can be automated.” Zifzaf said using AI photo technology for audits can reduce risk and

liability “by increased compliance and standardization across estimates. As algorithms give consistent answers, it allows for consistent decisions to be made and therefore reduces risk and liability. A well calibrated and accurate AI is at the core of this.” Tractable is not the only AI technology available on the market. CCC offers an AI photo-estimating product, and in 2017, Audatex announced its partnership with hail photo-estimating provider CSI. When it comes to evaluating which system to invest in, Zifzaf advises, “As a first step, make sure the photoanalysis system really works. Ask to upload your own photos to the system and judge the results for yourself.” “Tractable was found in 2014 and is backed by $30M in venture capital,” said Zifzaf. “We are in production with top insurers globally and have processed over a million auto claims. Now, we are looking to engage with repair facilities on how our technology could best help them.” Feedback can be provided to ahmed@tractable.ai.”

Acura and Honda Vehicles Recalled Again Over Takata Airbags by David A. Wood, CarComplaints.com

Honda is recalling more than 19,000 vehicles with front passenger Takata airbag inflators that may have been installed incorrectly during replacement.

• • • • •

2009-2014 Acura TSX 2011-2013 Acura TSX Sport Wagon 2010-2012 Acura ZDX 2008-2012 Honda Accord 2010-2011 Honda Accord Crosstour

• •

• • • •

2012-2014 Honda Crosstour 2006-2011 Honda Civic (Includes Civic Hybrid and Civic NGV) 2007-2011 Honda CR-V 2009-2013 Honda Fit 2010-2013 Honda Insight 2009-2015 Honda Pilot

The passenger inflators were installed as replacements during previous recall repairs at numerous dealerships before May 2018. An airbag inflator that wasn’t installed correctly won’t deploy properly in a crash. The recall is expected to begin June 28, when Honda and Acura dealers will replace any affected passenger frontal airbag module assemblies. Customers with questions should call 888-234-2138. We thank CarComplaints.com for reprint permission.

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autobodynews.com / JULY 2019 AUTOBODY NEWS

Recycled Rides Go to Three Moms

Government Employees Insurance Company (GEICO), Caliber Collision and Enterprise combined their efforts to present three military moms with vehicles that were refurbished to like-new conditions. Receiving vehicles were Gloria Crothers, a volunteer and a member of the Maryland Chapter of Gold Star Mothers. Her son Michael Heed, Jr., Marine Sargent, was killed in action on July 13, 2009, serving in Afghanistan. Janice Chance, president of the Maryland chapter of Gold Star Mothers. Her son Jesse Melton III, Marine captain, was killed on September 9, 2008, serving in Afghanistan, and Lafreda Scurry who honorably served in the Army for eight years was the third recipient. “GEICO has a rich history of working with our military customers. This event is an example of our strong commitment to the military,” said Angela Rinella, vice president of GEICO’s claims operations.

Continued from Page 34

Their Own Worst Enemy

counts, etc. The downside was a slow processing and delivery time, and a far time in between ordering dates. A dealer may only be able to order parts once a week, or possibly once a month. Daily order – Some OE’s allowed a dealer to order parts on a daily basis, so the parts would arrive quicker. In order to do that, the dealer must give up additional discounts and pay for the freight. Vehicle off Road (VOR) – This is the most expedient way for a dealer to get parts. A part ordered via this method could arrive at the dealer within 24 to 48 hours. The only problem is, the dealer must forfeit any extra discount they may have received, and they must pay premium fright costs—sometimes way more than any gross profit they may have made on the part. So, despite what the OE’s did with their own internal parts systems, parts availability was no better than the dealer who invested in an equally

sophisticated system and a parts manager who knew how to use it. Parts pricing was also coming under scrutiny. According to a survey conducted by the Insurance Services Office, an insurance industry trade group, the price of auto parts had risen from 6% to 30% for 1972 models compared to 1970 models. The survey was broken into two broad categories—collision-related parts and wear-related parts—for three of the most popular models on the road: the Chevrolet Impala, the Plymouth Fury and the Ford Galaxie. For the collision category, the Chevrolet Impala recorded the highest change in prices at 30%, followed by the Ford Galaxie at 16% and the Plymouth Fury at 9%. For wear parts, the Ford Galaxie was the highest at 15%, followed by the Plymouth Fury at 9% and the Chevrolet Impala at 8%. To emphasize the high cost of OE parts, studies were conducted by various entities to see how much it would cost to build a car—from the ground up—with individual parts purchased from an OE dealer. Although that information from the 1970s could not be located, a simi-

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lar study in 1996 conducted by the Alliance of American Insurers. This study found that a 1996 Chevrolet Lumina with an MSRP of $19,340 would cost almost $73,000 if all the parts were purchased through the dealer network. Sadly, back in the 1970s, again in 1996 and in a similar exercise in 2001, no mention was made, by the OE’s or anyone else, about what contributed to those costs. There was no mention that parts get delivered to a car-building factory—hundreds or thousands at a time—decreasing shipping and handling costs. Conversely, no one mentioned that for a dealer to receive a part and make it available to a shop, each part must go through multiple levels of shipping and distribution, and each must be individually boxed and accounted for, all adding to cost. The price of an OE part will always present an issue. However, with the advent of the 1980s, the OE’s and dealers have increased parts availability and put a stop to shipping damage.

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When you repair a BMW, use the parts that are identical to those used in Series production and just as reliable. Choose Original BMW Parts and Accessories. Because you can’t repair your reputation. autobodynews.com / JULY 2019 AUTOBODY NEWS

Truck Topics with Gary Ledoux

The HD Collision Market – Challenges and Opportunities Most people in the auto collision industry agree that the collision industry was born around 1946. It was during this time that service men and women were returning from the European and the Pacific theater of operations. A lot of these men and women did not have existing jobs to return to, so they would start their own business. Oftentimes, it would be an auto and collision repair business. During the 1960s, each shop was on its own. Shop owners worked independently with little to no input from other shop owners, associations or industry leaders. No one knew what was going on in the industry, because there was no means of communication. It seems as though the HD collision market is facing similar challenges the industry faced over 70 years ago. However, there are a few distinct differences. First, at the time, there were fewer HD shops than auto shops. Unlike the auto shops that seemed to be at war with everyone, the truck shops seem to want to work together. The size of the market and the desire to work together should help push the industry along at a quicker pace. Chris Sterwerf is an industry leader who argues that HD shops work better together. Shops should cooperate and speak up when needed, he said. “Shops must paint a clear picture to vendors, equipment providers, OEMs and information providers on what is needed to make sure these behemoths operate safely,” said Sterwerf, chief finance and operations officer for Fairfield Auto and Truck Service in Fairfield, Ohio. Sterwerf, chairman of TMC’s Heavy Duty Collision Repair Guideline Task Force, mentioned that in the past, HD shops rarely shared information with competitors. “Car shops tended to collaborate with shops out of their market area,” he said. “HD 20 Groups and the HD Repair Forum are now helping to connect the dots to give HD

shops the megaphone that has been needed for decades. Technology is pushing the HD collision industry along and it won’t wait. Repairers won’t have years to catch up. Training is paramount and needed now. ADAS systems are installed on the majority of new Class 8 and 9 trucks and they need repair and recalibration. All-electric trucks

could also guide policy, creating organizations like I-CAR or TMC to create training for HD repairers.” Challenge: According to some in the trucking industry, ADAS systems threaten to make trucks completely autonomous—eliminating drivers and making accidents almost non-existent—greatly reducing the need for HD collision shops.

are now operating on our highways. An inexperienced or untrained technician, making the wrong move, working on such a truck could injure or kill the technician, Sterwerf said. “CNG, LNG, Hydrogen and Propane are explosive fuels that shops need to be trained on to keep employees, property and neighbors safe,” he added. “ELD (Electronic Log Data) equipment and tracking can be difficult to deal with. Safety systems must be integrated with the tractor/power unit from the trailer and, or utility bodies. HD collision technicians need to know how to deal with these systems.” Here are a few other challenges and opportunities HD shops create. Challenge: Within the HD collision world, there is little to no formal training available. Opportunity: I-CAR has created new training content. I-CAR has also adapted existing training materials to accommodate the HD collision world. In April, Penske Collision Repair in Norcross, GA, became the first HD shop to achieve Gold Class status. It is now up to the industry to support I-CAR’s efforts, allowing them to grow and expand. “It might be possible to get collaboration between I-CAR, ASE and TMC, so the wheel doesn’t have to be reinvented, possibly creating delegations from various associations,” Sterwerf said. “The HD Repair Forum

Opportunity: In her address to the HD Repair Forum held in April in Fort Worth, Texas, Susan Alt, senior vice president of public affairs for Volvo, said fully autonomous cars and trucks of sci-fi movies will be a

“Shops must paint a clear picture to vendors, equipment providers, OEMs and information providers on what is needed to make sure these behemoths operate safely,” — Chris Sterwerf

JULY 2019 AUTOBODY NEWS / autobodynews.com

IN ENU

TS PA R

m G t the e a g K i fit to

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long time coming, if ever. Alt said airplanes have had autopilot since the 1940s; yet, we still have pilots. Trains run on a very narrow pathway and can operate with little or no human intervention. However, engineers still are needed when negotiating populated areas or rail-switching yards. In addition, trucks can operate with little to no driver assistance on open highways; but, in a construction zone, warehouse yard or loading yard, a driver is still needed. The opportunity to make collision repairs will still exist, but the nature of the repairs will change. Gone will be the horrific crashes creating bent and twisted frames; much of the damage will be small. The biggest challenge will be the proper replacement of sensors, cameras, etc. to allow the ADAS system to operate properly. “Mother Nature—weather, animals, road infrastructure, etc.—still

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autobodynews.com / JULY 2019 AUTOBODY NEWS

damages vehicles and creates the need for HD shops,” Sterwerf added. “These trucks will always need corrosion protection and reimaging— operations performed by HD body shops.” Challenge: Communication and cohesiveness between HD shops, except for shops operating in the same city, seem to be lacking. There is a gap both in communication among shops and a lack of knowledge about what is happening within the industry. Opportunity: The auto side of the collision industry operated the same way from 1946 to the early 1960s. Three things happened almost simultaneously to promote communication and cohesion within the industry. One, trade magazines began to emerge giving the industry a voice. Two, trade associations began to emerge to represent an industry as a unit and three, leaders within the industry began to emerge. On the HD side, AutoBody News has begun to bring you news of the industry. It is one column per month, but it’s a start. Trade Associations such as the TMC has begun to recognize the collision side of the business. Leaders

like Joey Fassett and Chris Sterwerf have begun making strides towards consistent and safe collision repairs. Challenge: Currently, no codified collision repair procedures exist for the HD market, which is dangerous. Some shops may be making safe repairs, but others may not. Ultimately, the shop is responsible for the repairs they make and any subsequent problems that may arise. An example of this is exemplified in the following case. On October 2, 2017, a Texas jury awarded Matthew and Marcia Seebachan a $42M settlement for the botched repair on their Honda Fit. Repair procedures from Honda existed, but the shop chose to ignore them. Had they followed the correct procedure and the car crashed with the same or similar result, chances are there would have been no lawsuit. Opportunity: Every HD shop has the opportunity to work with and support the TMC’s HD Collision Task Force to create RP’s (Recommended Practices) for safe and complete HD collision repairs. Once these RP’s are established, it will be up to every shop owner to follow them and raise the repair standards within the industry.

Challenge: While several HD collision estimating systems exist, they all seem to be lacking parts and pricing information. During a panel discussion at the HD Repair Forum in Fort Worth, one shop owner said it could take him up to two weeks to get pricing and parts availability information from an OE dealer. Meanwhile, the truck is down, not generating any income for the company, exacerbating the cost of the repair. Also, some OE’s make parts pricing available online only to a select few independent shops, as determined by the OE dealer. Some OE’s make it available to anyone; some make it available to any estimate provider, while others do not. Opportunity: Estimating information, including parts pricing and availability, is a basic tenet of collision repair. It should be a priority for all OE’s to provide this information to estimating companies, dealers and independent collision repair shops. The OE’s would do their customers great service by ensuring that their truck can be repaired in the least amount of time possible. Challenge: After hearing several

OE truck representatives speak about their current and future products, there is no question that Advanced Driver Assistance Systems (ADAS) are installed on a majority of new trucks coming off the assembly line. Given their acceptance within the trucking community amongst fleet owners, managers and safety officials, these systems will soon be on every new truck, retrofitted to some older fleets and become more integrated into existing systems. Trucking and HD truck repair is going to get more complicated. Opportunity: The opportunity exists to create/grow a new kind of technician—someone who will learn ADAS systems and other new technology and will be able to repair, replace and recalibrate those systems. Performing these operations in-house will create a faster repair—saving time and money for your customer with less downtime for the truck. It could be a service element that separates your shop from every other shop. The entire HD collision industry is sitting at the on-ramp of the next phase of the industry’s growth. There are plenty of opportunities to “grab a gear” and move forward.

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JULY 2019 AUTOBODY NEWS / autobodynews.com

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autobodynews.com / JULY 2019 AUTOBODY NEWS

Claim Genius Joins CIECA as a Corporate Member

Claim Genius recently joined the Collision Industry Electronic Commerce Association (CIECA) as a corporate member. The company’s patent-pending GENIUS suite provides insurance carriers, salvage firms and car leasing companies with an integrated AI damage estimation platform. Raj Pofale, senior technology executive and product development leader at Claim Genius, said this enables clients an instant AI assessment of claims based on photos uploaded from a carrier’s mobile app. Claim Genius first learned about CIECA through another member and decided to join the organization shortly after. “We believe that bringing the best technology practices and standardization to the industry are great initiatives by CIECA and we are excited to contribute to this goal,” said Pofale. Pofale said CIECA standards are important for the industry because they make everyone’s jobs easier.

Nissan Sides With Tesla on Camera-Based Self-Driving Approach by Simon Alvarez, Teslarati

Japanese automaker Nissan Motor Co Ltd said on Thursday, May 16, that it would be using cameras and radar in the development of its full self-driving technologies. Seemingly siding with American electric car maker Tesla, Nissan argued that LiDAR, a key component in the autonomous driving systems of competitors such as GM and Ford, is too expensive for its capabilities. Nissan’s announcement comes roughly a month after Tesla held its Autonomy Day, where Elon Musk dubbed LiDAR a “fool’s errand.” During the event, Musk predicted that companies relying on the light-based sensors would likely abandon the technology in the future. For his part, Tetsuya Iijima, general manager of advanced technology at Nissan, noted in a statement to reporters that LiDAR’s capabilities currently fail to match up to advanced camera and radar solutions. “At the moment, LiDAR lacks the capabilities to exceed the capa-

bilities of the latest technology in radar and cameras. It would be fantastic if LiDAR technology was at the level that we could use it in our systems, but it’s not. There’s an imbalance between its cost and its capabilities,” Iijima said. Iijima’s statements about LiDAR are not just empty words from the Japanese carmaker, as Nissan has unveiled its own camera and radar-focused self-driving technology recently. Unlike Tesla’s current Autopilot system, which requires drivers to keep their hands on the steering wheel, Nissan’s system allows hands-free driving in single lanes on highways on predefined routes. To enable this technology, Nissan utilizes cameras, radar, and sonar sensors to compile three-dimensional mapping data, enabling the company’s vehicles to “see” their surroundings accurately. The Japanese carmaker is also developing a “TriCam” system that focuses on three points to the front and sides of a vehicle, allowing cars to capture a wide area of view.

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Nissan plans to roll out its selfdriving technology even to its lineup of affordable vehicles in the future. By doing so, the carmaker expects to see a boost in sales, enabling it to recover from a profit slump. Nissan’s earnings have been rough as of late, with the company noting during a recent report that it had hit “rock bottom” amidst the aftermath of a financial scandal related to its former chairman, Carlos Ghosn. Tesla’s full self-driving strategy, which uses cameras and artificial intelligence, was explained by Sr. Director of AI Andrej Karpathy during the electric car maker’s Autonomy Day event last month. Karpathy likened Tesla’s full selfdriving approach to the way humans operate a vehicle, even joking that the event’s attendees only used their biological cameras (eyes) and neural networks (brain) to drive to the event’s venue. “You all used your own neural network in your brains to get here. You didn’t shoot lasers from your eyes to drive,” Karpathy lightly said. We thank Teslarati for reprint permission.

Chrysler Recalls 343,000 Ram 1500 Trucks by David A. Wood, CarComplaints.com

A Ram 1500 recall has been ordered for nearly 343,000 trucks that need repairs to prevent the airbags and seat belt pretensioners from failing.

The 2019-2020 Ram 1500s have software problems related to the occupant restraint controllers which can disable the airbags. Nearly 296,000 of the recalled trucks are in the U.S., 38,884 Ram 1500s are recalled in Canada, another 1,817 will be repaired in Mexico and 6,154 trucks are recalled outside North America. Fiat Chrysler (FCA) says the 2019-2020 trucks have software with vulnerabilities “during powerdown memory clean-up events which can corrupt flash memory.” According to Chrysler, once

the truck ignition is turned off the occupant restraint controller begins under its own power, but data corruption is possible if the controller powers down and interrupts a memory erase process. However, the process doesn’t occur every time the ignition is turned off. If the problem does occur, a driver will see an illuminated airbag warning light, and the truck will result in fault codes internally. The real issue is the deactivation of the seat belt pretensioners and airbags. The model year 2019 trucks were built from October 31, 2017, to April 29, 2019, and 2020 model trucks were manufactured between April 8, 2019, to May 21, 2019. FCA says the recall is expected to begin July 20, 2019, when dealers will reprogram the occupant restraint controllers or replace them. Ram 1500 owners with questions should call 800-853-1403. Chrysler’s numbers for this recall are V61 and V71. We thank CarComplaints.com for reprint permission.

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FIAT Chrysler Automobiles Submitted Proposal to Merge With Renault Fiat Chrysler Automobiles N.V. has delivered on May 27 a non-binding letter to the Board of Groupe Renault proposing a combination of their respective businesses as a 50/50 merger.

The FCA proposal follows initial operational discussions between the two companies to identify products and geographies where they could collaborate, particularly as they develop and commercialize new technologies. These discussions made clear that broader collaboration through a combination

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would substantially improve capital efficiency and the speed of product development. The case for combination is also strengthened by the need to take bold decisions to capture at scale the opportunities created by the transformation of the auto industry in areas like connectivity, electrification and autonomous driving. The proposed combination would create a global automaker, preeminent in terms of revenue, volumes, profitability and technology, benefitting the companies’ respective shareholders and stakeholders. The combined business would sell approximately 8.7 million vehicles annually, would be a world leader in EV technologies, premium brands, SUVs, pickup trucks and light commercial vehicles and would have a broader and more balanced global presence than either company on a standalone basis.

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autobodynews.com / JULY 2019 AUTOBODY NEWS

In Reverse with Gary Ledoux

The 1970s - Trade Associations Become a Driving Force Auto body associations had been around since the 1940s. By the 1970s, like the rest of the industry, the associations were “coming of age.” During the 1970s, auto body associations were working even harder to improve the industry. An article in the July 1970 issue of a national trade magazine notes the “rebirth” of the industry association. The article said with the revival of associations, shop owners are no longer fearful of each other. Owners have come together to make the industry a better place to work. Back then, trade magazines were full of stories about new state-level associations popping up and joining with the Auto Body Association of America (ABAA) or Independent Garage Owners of America (IGOA), to get the benefits of national representation. Most shop owners came to the realization that there was strength in numbers, especially at a national level. Auto body associations became larger, better run and more influential within their own ranks, the government and other entities. Another article in a trade magazine, in August 1971, commented on the transition of IGOA and the future of the industry. “We are long past the day where we can view IGOA as a local civic club,” said Carl Chambers, the new president of the IGOA. “It is now a quarter-million dollar business enterprise under professional management. There’s no doubt in my mind that the future is ours.”

Uniform Accounting and Dealer Shops In February 1970, the IGOA adopted a uniform accounting and management system, specifically designed for body shops. The association encouraged all shops to use it. This was timely, since shop profitability began to emerge as a pressing issue. The system was a great idea, but shops wouldn’t embrace proper accounting practices for another ten years. Also, early in the 1970s, Michigan shop owner and head of the 64

IGOA body shop council, Robert Ramsey proposed all IGOA state affiliates to invite dealer-owned body shops to join their group. Ramsey said this was a good idea, since independents and dealer-owned shops have similar problems and can work together to fix them. Prior to this time, a deep rift existed between dealerowned shops and independents, so it was a brave move for Ramsey to suggest this idea.

Shop Owners and Insurance Executives Talk In February, shop owners and other members of the ABAA met in New York City with insurance company executives to discuss industry matters of mutual concern. Both shop owners and company executives were concerned about parts availability. Shop owners wanted to meet with car-maker executives. The OE’s had become their own worst enemy by ignoring the collision repair industry. Finding New Technicians Associations were starting to address the need for more trained collision repair technicians. By early 1970, soldiers were being trained for the auto body trade at Fort Bragg in North Carolina through a cooperative effort between the United States Army and the ABAA. The six-week course familiarized soldiers, close to their discharge date, with the collision repair industry. Combined Forces On the east coast, Malcom Slagel, president of the Washington Metropolitan Auto Body Association, and an active member of IGOA of Virginia, said the only way to solve auto body industry problems is with one voice. To achieve one voice, Slagel proposes the combining of IGOA and the ABAA—the two largest associations in the US at the time. In the early summer of 1970, members of the IGOA and ABAA met in Washington, D.C., to discuss joining the two organizations. Both associations realized they are after many of

JULY 2019 AUTOBODY NEWS / autobodynews.com

the same goals and can achieve more with one louder, single voice. IGOA and the ABAA left the meeting to discuss the issues with their respective board of directors. In the fall of 1970, members of both the ABAA and IGOA met again—this time in New York—and agreed that combining the two organizations was the right thing to do. Reasons given include: • One voice representing all industry people will have great influence in Washington, D.C. • Unification will eliminate covering the same ground twice. • Unification will establish positive certification and standardization. • One unified group will have a greater potential for growth. • Among non-members, there will be no question as to what association to join.

• Unification can establish better communications. • One voice will be better at solving many of the problems with the insurance industry. • Unification could make a national advertising program possible.

Despite the need for a single national association and among new statelevel auto body associations popping up, the ABAA said each state association must be strong. Many industry problems must be addressed with state legislators—a job best served by one state-level association as opposed to a national organization or a number of smaller, state-level associations. Among the items to be addressed at the state level are: licensing of shops, licensing of appraisers, certification of technicians and state aid for education for technicians in the auto body industry.

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autobodynews.com / JULY 2019 AUTOBODY NEWS

Trade Shows The California Auto Body Association announced that they will sponsor their second trade show and convention, known as the Western States Autobody Trade Show, at the Sheraton Palace Hotel in San Francisco. Around 6,000 people were expected to attend. Over 3,000 attended the first show held in Los Angeles in 1969. The trade show theme is “Total Involvement.” It was later reported that over 3,000 repairers and other industry people attended the show featuring 80 exhibitors with a number of companies conducting clinics. Starting perhaps in the 1950s and certainly into the 1960s, there were many small local and regional trade shows sponsored by the local auto body associations. They got little attention except in their local market, mainly because there was no national trade media. With the advent of the 1970s and nationwide coverage of the industry, these shows started to attract a larger audience. In the fall of 1970, the ABAA was getting ready for their fifth annual convention and trade show in Hollywood, Florida. They were ex-

pecting to have 125 booths exhibiting. The theme for the show was “Partners in Progress,” pulling together the three main components of the industry: manufacturers, body shops and jobbers. Manufacturers, in this case, refer to those who make auto body equipment. There was no mention of paint manufacturers or OE’s. However, it is not surprising about the

during a five-man panel was not so much the physical condition of the shop, but more about how shop customers are treated.

OE’s, since they were not on good terms with the collision industry. Parts availability and parts damage was still a problem.

nence as the outspoken president of the ABAA in 1967, 68 and 69. In 1970, Baffa wanted to take drastic measures to change the direction of the industry. According to Baffa, the body shop and car owner had been “under the thumb” of the insurance companies for the last 20 years and felt it is time to take stronger action. Baffa, along with as many vehicle owners and body shop owners as he could muster, planned to march in Washington, D.C., in April 1970 and demand reform. Baffa was receiving

Louis Baffa – Man of His Time Every decade seems to have its stand-out collision industry executive. In the 1970s, it was shop owner Louis Baffa who came to promi-

“It is now a quarter-million dollar business enterprise under professional management. There’s no doubt in my mind that the future is ours.” — Carl Chambers

Improved Public Image Shop owners were also beginning to become more conscious of their image and how they were perceived by the public. In the summer of 1970 at the IGOA convention in Texas, shop owners adopted a five-year plan to improve the image of shops to customers. Much of what was discussed

backing from the ABAA and the IGOA. A short time later, with the advent of several bills pending, Baffa called off his march. In February of 1972, collision industry associations, ABAA in particular, took a giant leap forward when Baffa was provided a new position at ABAA as administrative executive. He worked full-time for the ABAA, giving up his role as shop owner and collision equipment distributor, to dive into his new position. This is believed to be the first appointment of its type in the industry. Looking to the Future Early in 1972, the IGOA formed a new committee called Trends and Perspectives, designed to identify trends and possible future events, so the IGOA could act, rather than react to events. Ron Weiner of Denver, George “Bud” Merwin of Kansas, and Harry Wright of Georgia all served on the committee. Some of the challenges faced in 1972 are the same challenges faced today, almost 50 years later; but, it is associations that help push forward the industry.

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autobodynews.com / JULY 2019 AUTOBODY NEWS

Tire Tax Bill AB 755 Defeated in CA

The California Auto Body Association (CAA) is proud to announce that AB 755, a bill which would have increased the tire change fee from $1.75 to $3.25 per tire has died on the Assembly Floor. At the request of its sponsor, the bill was shelved on Wednesday, May 30.

The CAA and its allies have been working tirelessly to defeat the bill which would have negatively affected our industry and has been referred to as a “regressive” tax. We would like to thank our lobbyist Jack Molodanof who played a key role in the bill’s opposition and our membership that supported us by contacting their legislators in order to express their opposition to the bill. Our grassroots efforts make a difference.

3M, CREF Grant Collision Education Programs

ClaimsCorp Inc. Renews Commitment to CIECA Standards

The grant funds will be used to pay for tools and equipment to enhance the training opportunities they provide to the next generation of collision industry professionals studying in the schools. “We are excited about this opportunity to continue our support of CREF and the communities in which 3M has a large presence,” said Kelly Lunder, U.S. channel marketing manager for the 3M Automotive Aftermarket Division.

Wilder, president of ClaimsCorp, has been in the industry for 30 years and has been a CIECA member through various organizations, most recently the last four years with ClaimsCorp. ClaimsCorp is data-based and works closely with many systems. “CIECA has been a mainstay standardization solution and we value standardization, consistency, security and reliability when it comes to data we handle and pro-

3M and the Collision Repair Education Foundation (CREF) announced the establishment of the 3M and CREF Grant. The new grant program, funded by 3M, will provide two collision schools with $10,000 each. The two schools that will receive the grant include: • Greenville Technical College, a CREF Benchmark Tier 1 school in Greenville, S.C.; and • South Central College, a CREF Benchmark Tier 2 school in North Mankato, MN.

ClaimsCorp Inc. recently renewed its commitment to CIECA and the CIECA Standards. Established in 2004, the company’s executive ownership of Sam Malatesta, Tim Wilder and Francesco DiGiuseppe focus on industry-related data aggregation, analytics and business performance improvement.

tect for our customers,” said Wilder. “CIECA has helped provide a more productive and reliable way to structure, process and map our customers’ data to drive value to their business and staff.” Wilder said that randomness breeds inaccuracy and inconsistency, and CIECA helps to reduce the impact of having too many ways to do the same thing. “CIECA helps attract data interfacing and integration among insurers, shops, supply chain and consumers,” he said. “The more that can be done to increase the number of securely integrated partners, the more we increase the number of solutions to help improve what’s available to help shop owners and operators run their businesses and drive improvements for the industry stakeholders and vehicle owners.”

For more information about Claims Corp, visit http://www.claimscorp inc.com/cci./ For more information about CIECA, visit www.cieca.com

ABPA Voices Concern to Introduction of State Bills

through their use of repair procedures and position statements. These self-serving methods claim that only OE parts can be part of the official repair procedure. In 2019, there have been 13 states that have introduced OE Repair Procedure requirement bills. These include the states of CT, Hawaii, IL, IA, KY, LA, MN, MS, MT, NV, NH, Texas, & WV. This is in addition to similar bills in nine states in 2018 and six states in 2017. Comparable legislation will be introduced in 2020 in other states. “As always, the ABPA will continue to address any legislation that looks to restrict the aftermarket,” said Edward Salamy, ABPA executive director. “The ABPA would also like to stress that having a healthy aftermarket ensures competition and helps protect the wallets of American consumers.” Obtained via ABPA news.

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All The Genuine Lexus Parts You Need For A Lexus Finish i

The ABPA is concerned with the accelerated introduction of OE Repair Procedure bills in multiple states that are tying in the exclusive use of OE Parts. Though noble intentions were behind their origination, we are seeing an increase in the addition of anti-aftermarket language, which is not only detrimental to an important segment in the collision repair chain, but it will also affect the American consumer. “The current wave of OE Repair Procedure legislation many times contains embedded language that in effect limits repair competition” Christopher Northup, ABPA chairman, adds, “Consumer rights around safe, quality and economic repairs are threatened with these proposed bills. The result would be a detrimental effect on the cost of repair, the total loss valuation outcome and in time insurance premiums. All of which hurt consumers as well as threaten the vehicle repair supply chain.” Automobile manufacturers are becoming more assertive in their efforts to eliminate the aftermarket collision repair industry

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autobodynews.com / JULY 2019 AUTOBODY NEWS

‘Tesla Fighters’ Audi E-Tron, Jaguar I-PACE, Face Recalls Over Fire Risk, Faulty Brakes by Simon Alvarez, Teslerati.com

The Audi e-tron and the Jaguar IPACE were recently hit by twin recalls over potential safety concerns. Both companies have opted to proactively issue the safety recalls before reports of any untoward incidents concerning the vehicles emerged from owners. In the case of the Audi e-tron, water can get into the all-electric SUV’s highvoltage charging port, which could then make its way to the vehicle’s

electronics, resulting in a potential battery fire. Michael Forson, Audi etron owner and ServiceNow Director, recently noted on Twitter that not all of the electric SUVs are affected by the major electrical fault, but the German manufacturer is nonetheless taking the issue seriously. With this in mind, it would not be surprising if Audi ends up inspecting most, if not all, e-trons that have been delivered to customers thus far. The Jaguar I-PACE, on the other

hand, was recently hit by a recall over the vehicle’s regenerative braking system. According to investigators, the I-PACE’s regen brakes could ex-

hibit an “increased delay” between the point when a driver hits the brakes and when the vehicle actually begins slowing down. Jaguar is recalling all of the I-PACE that it has delivered so far, such as the 3,083 units it has sold in the United States. While Audi has yet to issue a statement about a potential fix to the e-tron’s major electronic safety issue, Jaguar has announced that it already has a solution to the I-PACE’s braking fault. According to the British carmaker, a software update is expected to address the increased delay in the all-electric crossover’s braking system, though this would not be rolled out through an over-the-air update similar to Tesla. Instead, the software update will be distributed through Jaguar’s dealer network at no cost to I-PACE owners. Jaguar is expected to

start implementing the firmware update next month. Both recalls being faced by Audi and Jaguar for the e-tron and I-PACE involves features that are among the fundamentals of electric vehicles. Charging port protection and regenerative braking systems, after all, are basics that more experienced EV makers such as Tesla, and GM for that matter (thanks to the Volt), have learned and mastered over the years. Ultimately, these recalls show that designing and producing electric cars are not as easy as Tesla skeptics might think. While credit must be given to Audi and Jaguar for recalling the e-tron and the I-PACE even before any untoward incidents happened, it should also be noted that Tesla had exhibited the same proactive reaction in the past. Last year, for example, the electric car maker voluntarily recalled 123,000 Model S built before April 2016 due to excessive corrosion in the aluminum power steering bolts supplied by Bosch. This issue, according to Tesla, could make steering the Model S heavier than usual due to the loss or reduction of power assist steering. We thank Teslerati.com for reprint permission.

GM Digital Vehicle Platform Debuts

Today, Mark Reuss, General Motors (GM) president, debuted the company’s all-new electronic platform necessary for its next-generation of vehicles, EVs, active safety, infotainment and connectivity features, and the evolution of the Super Cruise driver assistance feature. Debuting on the recently-unveiled 2020 Cadillac CT5 sedan, the electronic platform will go into production later this year and should be rolled out to most vehicles within GM’s global lineup by 2023. The new architecture also provides more rapid communications within the vehicle itself and to outside sources thanks to Ethernet connections of 100Mbps, 1Gbps, and 10Gbps. “The critical role of software and its importance to our vehicles, both now and for years to come, cannot be overstated,” said Reuss. “Our new digital vehicle platform and its eventual successors will underpin all our future innovations across a wide range of technological advancements, including EVs and expanded automated driving.”

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