May 2019 Southeast Edition by Autobody News

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Vol. 10 / Issue 3 / May 2019

Sponsor, Repairer: Texas Insurer-OEM Procedure Bill Needed to Give TDI Power

APCIA: OEM Procedure Bill Lacks Provision Preventing Body Shops Committing Fraud in Texas

by John Huetter, RepairerDrivenNews.com

The bill’s sponsor and the head of the Auto Body Association of Texas told a Texas House Insurance Committee on April 9, that House Bill 1348 was necessary following what they said was the Texas Department of Insurance’s view that it was powerless to check certain insurer behavior. HB 1348 will hold insurers to OEM repair procedures. It declares that a carrier can’t “disregard a repair operation or cost identified by an estimating system, including the system’s procedural pages and any repair,

process, or procedure recommended by the original equipment manufacturer of a part or product.” In addition to demanding insurers acknowledge repair procedure, the bill defines “(r)easonable and necessary amount” as “the amount determined by the original equipment manufacturer’s manufacturer and estimating systems required to repair a vehicle to the condition before the covered damage to the vehicle occurred.” It also defines “like kind and quality” for aftermarket parts and adSee TDI Bill Page 4

Body Shop Owners Can Sell Their Short Pays to StopShortPays.com by Chasidy Rae Sisk

The difficulty of obtaining full payment for a repair when a collision repair shop’s invoice differs from the insurer’s estimate is a common complaint among shop owners. Texas-based attorney Leroy Scott noticed the prevalence of this concern among the shops he represents. Deciding to do something about it, he established StopShort Pays.com. Scott shared, “At my law firm, I kept running into these situations where it seemed like insurance com-

panies were underpaying shops, and when I reached out to some shops I represent, I realized it’s a huge problem. Then I had to figure out which angle to approach it from, and that’s when I started StopShortPays.com in earnest in October 2018.” Scott recognized that many shops were accepting the payment dictated by the insurer’s estimate and were not pursuing short pays for the full rate of their work because the legal process was so difficult and time-consuming, especially for those who are unfamiliar with the system. See Short Pays, Page 27

An APCIA representative on April 9 testified against a Texas bill compelling insurers to pay for the cost of repairs done to automaker specifications, arguing that the measure lacked confirmation body shops used them and suggesting some repairers might lie about it. American Property Casualty Insurance Association state government relations Vice President Joe Woods’ questionable testimony opposing House Bill 1348 also described adjusters as the line of defense for repair quality. HB 1348 will hold insurers to

OEM repair procedures. It declares that a carrier can’t “disregard a repair operation or cost identified by an estimating system, including the system’s procedural pages and any repair, process, or procedure recommended by the original equipment manufacturer of a part or product.” In addition to demanding insurers acknowledge repair procedure, the bill defines “(r)easonable and necessary amount” as “the amount determined by the original equipment manufacturer’s manufacturer and estimating systems required to repair a vehicle to the condition before the covered damage to the vehicle ocSee APCIA Opposition Page 4

Truck Topics is a new series of articles by Gary Ledoux to appear periodically in Autobody News covering the collision side of the heavy-duty truck market, see pp. 42 & 54

New Car Technology Benefits Drivers, But How Does It Affect Body Shops? by Ed Attanasio

I was talking to a group of body shop owners the other day at a trade association meeting, and one said, “I’m not in the repair business anymore; I’m in the computer business! “These new cars are great for the consumers, but fixing them is getting tougher and more expensive.” In the end, diagnostics have quickly become a huge part of the collision repair process and a reality that shops need to accept. The ones that embrace the technology and become adept at using it will get more work while stragglers will eventually lose their spot in line. To find out about the present and future of automotive diagnostics, we

interviewed one of the country’s leading experts on the subject. Michael Flink, national trainer/commercial product sales manager, has more than four decades of aftermarket experience. He has spent the last seven years with Autel, one of the world’s leading manufacturers and suppliers of professional diagnostic tools, equipment and accessories in the automotive aftermarket.

pair?

When did diagnostics become such a big part of collision re-

In 1982, diagnostics really took off, even though the very first computer-controlled system hit

See New Car Technology, Page 52

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Pre- and Post-Scans are Required, OEMs Say

CONTENTS ASA-FL Attends AVI Training . . . . . . . . . . . . . . . 8 Coggin Nissan Plans New Collision Center, Sales Service Office Expansion in FL. . . . . . 12 Large Turnout at IGONC Triangle Chapter Meeting . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Mt. Juliet, TN, Chamber Hears About Autonomous Vehicles, Traffic . . . . . . . . . . . . 11 NABC Recycled Rides Gets Veterans Back on the Road in Lakeland, FL . . . . . . . . . . . . 20 NABC Recycled Rides, Charlotte Checkers Team Up to Surprise Air Force Vet With Car in NC . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Proposed Assignment of Benefits Bill May Impact Floridians. . . . . . . . . . . . . . . . . 11 SCACAR Hosts 1st Quarter Meeting of 2019 . . . 6 Speak at CIECA CONNEX 2019 in Charlottesville, VA . . . . . . . . . . . . . . . . . . . . 60 YANG Event To Be Held in Conjunction With ACA Spring Leadership Days in FL. . . . . . . . . 8

for Priming . . . . . . . . . . . . . . . . . . . . . . . . . 28 APCIA: OEM Procedure Bill Lacks Provision Preventing Body Shops Committing Fraud in Texas. . . . . . . . . . . . . . . . . . . . . . . . 1 Auto Industry: Blocking Trade With Mexico Would Be Disruptive . . . . . . . . . . . . . . . . . . 62 BMW Recalls 183,000 Vehicles for Takata Airbag Inflators . . . . . . . . . . . . . . . . . . . . . . 60 Body Shop Owners Can Sell Their Short Pays to Lawyer-Owned StopShortPays.com. . . . . . 1 CARSTAR Conference To Be Held July 10–12 . . 27 CARSTAR EPG Set To Drive Network Performance . . . . . . . . . . . . . . . . . . . . . . . . 19 Color Match 101: A Visit to Axalta’s

GEICO Files Lawsuit Against Auto Glass Shop Suspected of Fraud . . . . . . . . . . . . . . 12 Honda, Acura Recall 1.1 Million Vehicles Over Takata Airbags . . . . . . . . . . . . . . . . . . 29 House Republicans Push for Action on Self-Driving Vehicles Bill . . . . . . . . . . . . . . . 59

COLUMNISTS Anderson - Industry Misses 2 Important

How Will These Recalls Impact Your Auto Glass Customers? . . . . . . . . . . . . . . . . 60

Aspects of John Eagle Collision Case . . . . . 36

I-CAR Contributes $225,000 to CREF . . . . . . . 58

Attanasio - From Rock Star to Crash Star . . . . 40

Knoxville I-CAR To Host Golf Outing . . . . . . . . . 20

Ledoux - The 1970s - Part 1 - The Collision

KSI Donates $250,000+ to Support

Industry Starts to Mature . . . . . . . . . . . . . . 34 Ledoux - Truck Topics 1: Heavy Duty Events Address Collision Issues . . . . . . . . . . . . . . . 42 Ledoux - Truck Topics 2: Truck Vs. Auto Collision Repair – An Overview . . . . . . . . . . 54 Phillips - Best Practices When Interpreting & Documenting Scan Data, Trouble Codes & Calibrations. . . . . . . . . . . . . . . . . . 44 Sisk - ASA’s ‘Washington Watch’ Webinar Features Industry Association Leaders . . . . 48 Yoswick - Panel Discusses Strategies for Shops Dealing with ADAS with Sublet Vendors, Insurers . . . . . . . . . . . . . . . . . . . . 38

CREF’s Mission . . . . . . . . . . . . . . . . . . . . . . 12 Legislation To Enhance Cybersecurity Training . 53 Marcia Seebachan Joins Shops to Back Insurer -OEM Procedure Legislation in Texas . . . . . 22 Matrix Wand Joins CIECA as Corporate Member . 20 Modules Added to Estimatescrubber.Com . . . . 11 New Car Technology Benefits Drivers, But How Does It Affect Body Shops? . . . . . . . 1 Payscape, SCRS Partner on Member Benefit . . 58 PPG Honors CHC Paint & Body Shop Supplies . 56 Pre- and Post-Scans are Required, OEMs Say . . 3 Sponsor, Repairer: Texas Insurer-OEM Procedure Bill Needed to Give TDI Power . . . . . . . . . . . . 1 Travis County, TX, Body Shop Owner

NATIONAL ‘Who Pays for What?’ Surveys Find Growth in Shops Billing (& Being Paid) for Masking

sion Repair Specialists, Mike Anderson, Automotive Service Association, Mitchell and other sources for the presentation. The Q&A and discussion that followed included an actual example of a scan on an Acura MDX from Fountain Valley Bodyworks. After a bit of research, the shop learned that the mirror sensor recalibration involved a 10-minute drive rather than a trip to the dealership service department—proof that scanning, researching remedies and using OEM procedures save time and limit liability. The event was one of the largest and best-attended CAA meetings in Southern California. Search or See full article online at https://www.autobodynews.com/ index.php/wa/item/17463-prescans-post-scans-are-required-forall-collision-damaged-vehicles-oems -say.html

Customer Experience Center. . . . . . . . . . . . 30

Sentenced . . . . . . . . . . . . . . . . . . . . . . . . . 18 WIN 2019 Educational Conference To Focus on ‘Navigating Tomorrow Together’ . . . . . . . 19

INDEX OF ADVERTISERS

REGIONAL

On March 20, the California Autobody Association hosted a meeting in Anaheim, CA, on the importance of scanning. The meeting, titled “Why You Should Be Scanning and How to Properly Estimate Scanning Services,” drew a crowd of 85 attendees from all over Southern California. The meeting featured a presentation by Michael Quinn and Frank LaViola of AirPro Diagnostics. Quinn, SVP of business development, and LaViola, vice president of sales and marketing, flew in from out of state to discuss the importance of prescanning and post-scanning proper repairs to ensure customers and their families are safe once again and the vehicle will respond in any subsequent accident as the manufacturers engineered. Quinn and LaViola cited relevant information from AirPro customer surveys, Society of Colli-

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli, Gary Ledoux Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bill Pierce Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Rochelle Beckel Accounting Manager: Heather Priddy Editorial/Sales Assistant: Randi Scholtes

Serving Florida, Georgia, Alabama, Mississippi, Virginia, West Virginia, Tennessee, North Carolina, South Carolina and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2019 Adamantine Media LLC.

Accuvision-3D . . . . . . . . . . . . . . . . . . . . . 16 Alloy Wheel Repair Specialists, LLC. . . . . . 40 Audi Wholesale Parts Dealers . . . . . . . . . . 55 AutobodyLaw.com . . . . . . . . . . . . . . . . . . 26 Axalta Coating Systems . . . . . . . . . . . . . 5,11 Benchmark Chrysler-Dodge-Jeep-Ram. . . . 9 Blowtherm USA . . . . . . . . . . . . . . . . . . . . 39 BMW Wholesale Parts Dealers . . . . . . . . . 58 Braman Honda Miami . . . . . . . . . . . . . . . . . 8 Braman Honda of Palm Beach. . . . . . . . . . . 8 Braman Miami . . . . . . . . . . . . . . . . . . . . . 64 Classifieds . . . . . . . . . . . . . . . . . . . . . . . . 62 Coggin Deland Honda . . . . . . . . . . . . . . . . 47 Dale Earnhardt Jr. Chevrolet . . . . . . . . . . . 50 Dent Fix Equipment. . . . . . . . . . . . . . . . . . 43 Dent Magic Tools . . . . . . . . . . . . . . . . . . . 12 Diamond Standard Parts . . . . . . . . . . . . . . 45 Eckler’s Automotive . . . . . . . . . . . . . . . . . 29 ECS Automotive Concepts . . . . . . . . . . . . . 10 Equalizer Industries, Inc . . . . . . . . . . . . . . 35 GM Wholesale Parts Dealers . . . . . . . . . . . 61 Gus Machado Ford . . . . . . . . . . . . . . . . . . 27 GYS Welding USA . . . . . . . . . . . . . . . . . . . 22 Hendrick Automotive Group. . . . . . . . . . . . 49 Hendrick BMW/MINI . . . . . . . . . . . . . . . . . 23 Hendrick Honda Pompano Beach . . . . . . . 28 Hendrick Kia Cary . . . . . . . . . . . . . . . . . . . 52 Hendrick Kia Concord . . . . . . . . . . . . . . . . 52 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 31, 32-33 Hyundai Wholesale Parts Dealers . . . . . . . 56

Jim Cogdill Chrysler-Dodge-Jeep-Ram . . . 26 Jon Hiester Automotive . . . . . . . . . . . . . . . 36 Kernersville Lexus-CDJR-GM . . . . . . . . . . 53 Kia Motors Wholesale Parts Dealers . . . . . 57 Launch Tech USA . . . . . . . . . . . . . . . . . . . 63 Lexus Wholesale Parts Dealers . . . . . . . . . 60 Malco . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Mercedes-Benz. . . . . . . . . . . . . . . . . . . 7, 17 Mercedes-Benz Wholesale Parts Dealers . . 60 MINI Wholesale Parts Dealers . . . . . . . . . . 58 MOPAR Wholesale Parts Dealers . . . . . . . . 37 Porsche Wholesale Parts Dealers . . . . . . . 54 PPG Refinish. . . . . . . . . . . . . . . . . . . . . . . . 2 Prima Welds, Inc . . . . . . . . . . . . . . . . . . . . 34 Radley Chevrolet. . . . . . . . . . . . . . . . . . . . 42 Rick Hendrick Chevrolet Naples . . . . . . . . 44 Rick Hendrick MOPAR Southeast Wholesalers . . . . . . . . . . . . . . . . . . 14-15 Riverside Ford-Lincoln . . . . . . . . . . . . . . . 18 SATA Dan-Am Company . . . . . . . . . . . 24-25 Smith Kia . . . . . . . . . . . . . . . . . . . . . . . . . 51 Southside Kia . . . . . . . . . . . . . . . . . . . . . . 46 Spanesi Americas . . . . . . . . . . . . . . . . . . . 41 Spartanburg Chrysler-Dodge-Jeep-Ram . . 21 Subaru Wholesale Parts Dealers . . . . . . . . 59 Symach . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Tameron Hyundai . . . . . . . . . . . . . . . . . . . 38 U.S. Chemical & Plastics . . . . . . . . . . . . . . 13 Volkswagen Wholesale Parts Dealers . . . . 54 West Broad Hyundai . . . . . . . . . . . . . . . . . 48 YesterWreck . . . . . . . . . . . . . . . . . . . . . . . 20

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Continued from Cover

TDI Bill

dresses steering and questionable prevailing rate surveys. Bill sponsor state Rep. Travis Clardy, R-Nacogdoches, told the committee during his introduction of HB 1348 that he had thought steering and other issues including repairs were addressed in statute. However, the Texas Department of Insurance said it didn’t have enough specifics within existing law to deal with it Clardy said he had a “fundamental disagreement” with the TDI’s view of itself, arguing it should be an “advocate” and “protector” of consumers over insurers rather than a “go-between” for the two. Continued from Cover

APCIA Opposition

curred.” It also defines “like kind and quality” for aftermarket parts and addresses steering and questionable prevailing rate surveys. Woods told the Texas House Insurance Committee on Tuesday that no regulation confirms collision repairers will use the OEM repair procedures they’re billing for. “They’re gonna charge a $250 blueprint fee, which (they) do now,” Woods said, defining this as the time spent researching repair procedures. “They’ll do that, but there’s no guarantee anywhere that they actually will do that,” he said. “And most of ’em are gonna actually follow— I mean, 98, 99 percent are gonna follow the manual step by step. But you’re still gonna have folks out there that will glue a roof on, cover up the work, and send it back out on the road.” Fraud and un-‘workmanlike’ behavior Woods is essentially arguing that because 1-2 percent of shops commit fraud, insurers shouldn’t be required to reimburse consumers who patronize the honest 98-99 percent of shops billing for OEM repair procedures they execute. Let’s take it a step further for the sake of argument. The Insurance Information Institute reports a mix of 4

But in deference to the agency’s comments, Clardy was trying to provide that specificity in the bill, he said. Lawmakers had a chance to give TDI the authority to “do the right thing” with HB 1348, Clardy said. “We have exhausted every effort before we came here” with the bill, Auto Body Association of Texas President Burl Richards (Burl’s Collision Center) told the committee during the hearing. He mentioned three separate meetings with the TDI in 2018. “We continually were told that TDI has no jurisdiction, they have no authority and ‘You’re gonna have to pass legislation,’” Richards said. Richards said he was told repeatedly that TDI doesn’t recognize or enforce prevailing rate language but allows the term to appear in policies.

He said he was instructed to provide definitions. HB 1348 inserts a definition in state law that holds a “(p)revailing rate” to be a “transparent and unbiased” one “conducted by a third party” that uses the “posted retail labor rates and not direct repair program shop rates that operate under a contract with an insurer.” American Property Casualty Insurance Association state government relations VP Joe Woods argued that by excluding DRP rates, the law could capture “only the highest rates.” Houston Auto Body Association President John Kopriva (Kopriva Body Works) said DRP shops’ rates were excluded because those rates were part of an agreement with insurers. Repairers in direct repair pro-

grams often agree to artificially deflate direct repair program rates in exchange for a crack at referral volume from the insurers, so it’s apples-to-oranges to treat them as a reflection of the broader market. To use an example from another industry: If one hotel in town cuts a deal with a convention to rent a block of rooms for $100 less to lock in that business, it’s not like it’s reasonable for an average tourist to demand or expect to pay $100 less at every other hotel in town with no such guaranteed revenue stream. TDI was not among the agencies which responded to a Society of Collision Repair Specialists inquiry of every state department of insurance regarding regulators’ views of OEM repair procedures, based on the trade group’s website.

vendors and consumers contribute to what is an approximate 10 percent of loss costs being fraudulent across all insurance lines. Pretend that all auto insurance policyholders are completely honest and the entire 10 percent of loss fraud is committed by body shops. Woods’ argument still falls apart. Ninety percent of collision repairers and 100 percent of consumers still deserve to be covered frictionlessly for following the repair procedures developed by the manufacturer of the damaged car. Woods’ argument also backfires with a reference to the Seebachan v. John Eagle Collision center case, in which a Texas jury found a body shop responsible for much of the severity of a Honda Fit crash because the facility adhesive-bonded the vehicle’s roof. Jurors awarded $31.5 million; the plaintiffs and shop later settled for an unspecified amount. John Eagle Collision Center body shop director Boyce Willis in a deposition had agreed the facility bonded the roof with 3M 8115 adhesive despite little concrete evidence or engineering knowledge to support the decision—particularly as 3M and Honda instructions state otherwise. Honda OEM repair procedures demand a shop tack-weld the front and rear corner edges of the new roof and then perform a combination of two- and three-plate spot welds and MIG plug welds. More than 100 welds are required by the manufacturer, plaintiff Marcia Seebachan told

the committee during testimony supporting the bill. “It is unconscionable that companies can undermine this process by approving insufficient repairs,” Seebachan told the committee Tuesday. She said two of her injuries should have killed her, and another could have. The John Eagle case clearly shows shops who fail to follow OEM procedures in Texas can face consequences. Woods also forgets other checks on shops deviating from repair procedures and the appalling ones who go a step further and bill for OEM procedures they never did. First and foremost, the III reports that insurance fraud is indeed a criminal offense in Texas. Body shops in the state also can be sued by a consumer for breach of express or implied warranty under the Texas Deceptive Trade Practices Act. The Texas Supreme Court in Melody Home Manufacturing Company v. Barnes nailed down a vendor’s responsibility. “We hold that an implied warranty to repair or modify existing tangible goods or property in a good and workmanlike manner is available to consumers suing under the DTPA,” the court wrote. It proceeded to define the concept and declare it unwaivable: We define good and workmanlike as that quality of work performed by one who has the knowledge, train-

ing, or experience necessary for the successful practice of a trade or occupation and performed in a manner generally considered proficient by those capable of judging such work. We do not require repairmen to guarantee the results of their work; we only require those who repair or modify existing tangible goods or property to perform those services in a good and workmanlike manner. In this case, the breach of the implied warranty was plainly within the common knowledge of laymen and did not require expert testimony. The jurors had sufficient knowledge to find that the failure to connect a washing machine drain would not be considered good and workmanlike by those capable of judging repair work. Consistent with the trend in recent consumer protection legislation and sound public policy, we further hold that the implied warranty that repair or modification services of existing tangible goods or property will be performed in a good and workmanlike manner may not be waived or disclaimed. (Emphasis ours.) All three national collision trade groups and the national insurer and repair training organization I-CAR have said for years OEM repair procedures are the standard of care. Automakers, who develop repair instructions they’ve proven will fix the vehicles correctly, also hold shops should follow their procedures. Finally, some of the other 98-99

MAY 2019 AUTOBODY NEWS / autobodynews.com

See APCIA Opposition Page 26

autobodynews.com / MAY 2019 AUTOBODY NEWS

NABC Recycled Rides, Charlotte Checkers Team Up to Surprise Air Force Vet With Car in NC by Nicholas Niedzielski, Charlotte Checkers

On March 23, the Charlotte, NC, Checkers teamed up with a group of corporate partners—GEICO, Caliber Collision, Keffer Hyundai and Veterans Bridge Home—to surprise a local Air Force veteran with a newly restored Hyundai Sonata during the second intermission. Tech Sergeant Carissa Perry is in her 20th year in the military, including five in the Air Force and 15 in the Air National Guard, where she is currently active. Perry’s vehicle recently broke down, making it tough for her to find job opportunities and transport her daughter to her activities. Even so, Perry continues to find time to volunteer at Veterans Bridge Home, which took notice and nominated her for the car donation. “We’ve worked with Caliber Collision and the Checkers in the past, but we’ve never done anything this big or this special,” said Blake Bourne, executive director of Veterans Bridge Home. “We got to know Carissa and her family, and we knew she had some car trouble, so we reached out to Caliber Collision and

said we had a veteran who is more than deserving. We wanted to make sure we did something special for Carissa, and the first thing we thought of was the Checkers, so we asked them to be a part of this. It was great to see everyone come together and align the community around someone that’s served our country.”

Credit: Jacob Kupferman/Charlotte Checkers

The donation is a part of the National Auto Body Council’s Recycled Rides program, with several different companies coming together to make the surprise come true. “This is a program where GEICO partners with different providers country-wide,” said Jason Phelps of GEICO. “We always want to have a presence in our local communities and give back to veterans that have served so much, like Carissa. This

process started months ago with Steve at Veteran’s Bridge Home and working with Caliber Collision and Keffer Hyundai. This has been in the works for a long time. We’re very happy that GEICO was able to do this locally because they have very strong ties to the military in the Charlotte community. I’m a veteran myself, so this is just outstanding that this could come together so well.” Keffer Hyundai and Caliber Collision joined forces to provide the car and restore it for Perry. “At Caliber Collision, we strive to change the image of the collision repair industry and strive to be a big part of the community,” said Brandon Hawkins, VP of operations at Caliber Collision. “When we teamed up with Veteran’s Bridge and GEICO to make this happen, we thought the best thing we could do for Carissa— obviously you can see the joy and the happiness it brought her. That’s what hits us down to the core.” “The people from Caliber approached us and told us about this program,” said Jim Keffer. “We are huge fans of veterans and people in our military, so this was a no-brainer for us. I was really proud of my guys

In addition to speakers from SCACAR and its sister association, NCACAR, the meeting featured Mark Taylor of Axalta Coatings, who presented “The State of the Auto Body Repair Industry.” The meeting kicked off with Sarah Daniels, president of SCACAR, speaking on customer service. Daniels shared, “Several people spoke up with suggestions of what they do to help their customers with the repair process.” Next, Brian Davies, president of NCACAR, discussed having a solid direction to pay and shared details about the last task force meeting with the NCDOI, describing the tests conducted to deter6

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On March 14, the South Carolina Association of Collision and Autobody Repair hosted its first quarterly meeting at Lexington 2 Innovation Center in Cayce, SC.

mine the differences between aftermarket metal strength and OEM metal strength. Taylor then took the stage to provide statistics on the collision repair industry across the country from 2008 to 2018. Daniels stated, “Some of the statistics he provided were the number of collision shops, number of collision claims, number of deer claims, the number of employees by collision shop and many other statistics. It was a very informative presentation. Mark also discussed Mike Anderson’s website collisionadvice.com where Mike provides industry information. Some information is free, or you can sign up to become a member and get much more.” Daniels then briefly talked about I-CAR’s new requirements for becoming or maintaining Gold status. She said, “I-CAR has changed their pay structure and education structure, which will affect many shops. Please see I-CAR.com for more information.” For more information about SCACAR and its upcoming events, visit scacar.com.

We thank Charlotte Checkers for reprint permission.

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SCACAR Hosts 1st Quarter Meeting of 2019 by Chasidy Rae Sisk

for stepping up and providing the parts.” The Checkers are proud to be a part of the effort, which brought together companies from across Charlotte to help benefit a great cause. “A lot of people made a lot of sacrifices to bring this together,” said Phelps. “What is very uncommon about this donation is that it was a surprise to Carissa. We’ve really kind of kept up with Carissa’s life over the last few months through Steve and Blake at Veteran’s Bridge, so it’s been great to get weekly updates on how she’s doing and hearing her story progress, knowing how badly she needed this car and how big an impact this could make on her life.” “To me, it’s indicative of Charlotte,” said Bourne. “Charlotte is an amazing community, and to have as many organizations step up for this as [they] did shows the value that we put behind people that served our country. I’m really impressed and appreciative of the support of our community partners.”

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ASA-FL Attends AVI Training by Chasidy Rae Sisk

From March 21–23, ASA-FL attended AVI training in Fort Myers. According to ASA-FL Executive Director Mary Steele, “It was really educational and a lot of fun. Our members loved it. I honestly believe that the networking part of this business is so important. Training lets you take away knowledge, but meeting people in the business lets you leave with so much more.”

On Thursday and Friday, AVI hosted on-demand training classes with hospitality nights each evening, giving attendees a chance to network with their industry peers. On Saturday, a baseball game provided a fun outlet. “There was technical training and management training,” Steele shared. “Carm Capriotto was one of the trainers, and AVI turned their video training into live classes. People came from all over, and it

was nice and intimate with about 100 people present.” ASA-FL sponsored this educational event. Gary Keyes, treasurer of ASA-FL, and Ray Fisher, president of ASA National, were in attendance. ASA-FL will host an event in Melbourne at the end of April and is planning two ATSG events in Orlando for later this year, as well as a big Daytona Speedway event in November. Steele is most excited that the association is starting a collaborative donation for Handbags of Hope to support veterans. “In addition to networking, these events provide a great learning experience,” Steele said. “You’re never too old or too good to learn something new. Train big or stay home. It’s also great how the trainers want to give back; they learned a lot when they were younger, and now they want to pass that knowledge on to younger folks. This industry is great because there are so many parts to it—everyone brings a piece to the puzzle to create this beautiful picture, and it’s phenomenal.” For more information, visit asaflorida.org.

YANG Event To Be Held in Conjunction With ACA Spring Leadership Days in FL by Chasidy Rae Sisk

The Auto Care Association (ACA) is hosting its Spring Leadership Days at the Hyatt Regency Coconut Point in Bonita Springs, FL, from May 8–10. In conjunction with Spring Leadership Days, the Young Auto Care Network Group (YANG) will hold a Meet-Up on the evening of May 9 and then proceed with the 2019 YANG Leadership Conference from May 10–11. YANG’s events will also be held at the Hyatt Regency Coconut Point. The first day of the Leadership Conference will commence with a welcome and opening remarks, followed by a state of the industry presentation delivered by Bill Hanvey, president and CEO of ACA. Next, Mark Finestone, executive vice president of Merchandising, Marketing and Supply Chain for AutoZone, will present “Profiles in Leadership.” Nick Westergaard, chief brand strategist at Brand Driven Digital, will discuss “A Scrappy Look at the Future of Digital Marketing.” After a networking break, author and life coach

Bryan Falchuk will present “Do a Day – Work Life Balance of a Young Professional.” The educational portion of the day will conclude with “Five for Five: 5-Minute Presentations by YANG Members.” Attendees will spend the evening enjoying a boat ride and dinner at Doc Ford’s Rum Bar & Grille in Ft. Myers Beach. Saturday’s agenda will begin with a networking breakfast, opening remarks and “Think Like a Lawyer, Only Don’t” with Todd Allen, partner at Lindsay and Allen, PLLC. Jim Merle and Scott Shriber of Babcox Media will present “A Year in Aftermarket News.” Jeff Koviak, vice president and general manager, North American Aftermarket at Tenneco, Inc, will then discuss “Profiles in Leadership.” Following the final networking break, speaker and coach Stacy Nadeau will lead a workshop on “Leveraging Soft Skills for Success.” The event will conclude with closing remarks. For more information on YANG and its Leadership Conference, visit autocare.org/yang.

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Proposed Assignment of Benefits Bill May Impact Floridians by Emmariah Holcomb, glassBYTEs.com

A new Florida bill has been introduced in the House. If it passes, there could be changes ahead for assignment of benefits (AOB). The new bill, also referred to as H7065, provides term definitions and requirements and limitations for property insurance assignment agreements. If passed, auto glass shop owners could lose their right to sue an insurance company.

Some of the newly defined terms include: • Assignee: a person who is assigned post-lost benefits by a named insured through an assignment agreement • Assignment agreement: a written instrument by which post-loss benefits under a residential property insurance policy are assigned in whole or in part by the policy’s named insured to a person providing services to protect, repair, restore or replace the named insured’s property or to mitigate against further damage to the property • Disputed amount: the difference between the assignee’s pre-suit

settlement demand and the insurer’s pre-suit settlement offer. If the new bill passes, there are also two sections of additional text that must be included in future AOB agreements in bold type and in an 18-point font. This is to ensure it is clearly stated for the customer and auto glass shop.

“You are agreeing to give up certain rights you have under your insurance policy to a third party, which may result in litigation against your insurer. Please read and understand this document before signing it. You have the right to cancel this agreement without penalty within two calendar days after the date this agreement is executed. However, you are obligated for payment of

MAY 2019 AUTOBODY NEWS / autobodynews.com

any contracted work performed before the agreement is rescinded. This agreement does not change your obligation to perform the duties required under your motor vehicle insurance policy,” a portion of the text reads. The other key point glass shops should take note of in H7065 states that: “… An assignee may not seek payment from the assignor exceeding the applicable deductible under the policy unless the assignor has chosen to have additional work performed at the assignor’s own expense,” a portion of the bill reads. Based on the current text, if a customer chooses to assign the benefits of their auto policy to a shop, the shop can be paid directly from the insurance company. This means a glass shop would be unable to sue the insurance company for additional money if it believed the repair or replacement warranted more. If passed, the new bill will take effect July 1, 2019. We thank glassBYTEs.com for reprint permission.

Large Turnout at IGONC Triangle Chapter Meeting by Chasidy Rae Sisk

The Triangle chapter of the Independent Garage Owners of North Carolina (IGONC) hosted a meeting on March 5 at Logan’s Roadhouse in Garner, NC. The meeting was sponsored by Factory Motor Parts and Timken. According to IGONC Executive Director Bob Pulverenti, “The event went really well. There was a large turnout, and our members enjoyed getting to see one another. “The event gives our vendor members a chance to stay in touch with our shop owners and make them aware of product updates, discount programs and new technology. In an industry that changes as often as automotive, we need to stay on top of information to stay successful in business.” For more information on IGONC, visit igonc.com.

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Mt. Juliet, TN, Chamber Hears About Autonomous Vehicles, Traffic by Matt Masters, Lebanon Democrat

The Mt. Juliet, TN, Chamber of Commerce held its March chamber connection luncheon March 20 at Rutland Place Senior Living, where Dan Work, an associate professor of civil and environmental engineering, electrical engineering and computer science and the institute for software integrated systems at Vanderbilt University, spoke about the future of autonomous vehicles and traffic. Work’s presentation titled “Autonomous Vehicles: The End of Traffic?” detailed the future adaptations and challenges that face the increased move toward vehicle automation. “If it’s easy to travel, then we’re going to travel more,” Work told the crowd of more than 50 people. While the idea of people each having their own autonomous vehicle to travel in seems like the next step in American transportation, Work said it will take more than just a few autonomous vehicles to help change traffic issues. Work said a few autonomous vehicles on the road and those with adaptive cruise controls, which au-

going to be the most beneficial up front—the stuff in the trucking world,” Work said. “Anything that you can do to reduce the labor or reduce the fuel costs of operating those vehicles is direct money that makes your system more profitable. You can offer more services and so on. It’s probably not as attractive. You’re not going to see it in the national news every day, but it’s definitely where I think a lot of the smarter companies are betting on the technology development. Because the business proposition there is much more straightforward than convincing everybody in this room to basically buy a car that has Dan Work, an associate professor at Vanderbilt University, an $80,000 sensor on top of speaks to Mt. Juliet Chamber of Commerce members it.” about autonomous vehicles and the future of traffic in Work also said he beMiddle Tennessee. Credit: Matt Masters, Lebanon lieves the best opportunity Democrat for autonomous vehicles in fects of adaptive cruise control in traffic reduction will be in the shipreducing and eliminating phantom ping industry with autonomous tractor-trailers. traffic jams. “The thing that is most apparent to me is that the technologies that go We thank Lebanon Democrat for into freight are the ones that are reprint permission. tomatically slow down with traffic when cruise control is enabled, can help elevate phantom traffic jams. Work showed several videos of his work on analyzing traffic patterns. One of those videos was of the collaboration between Ford and Vanderbilt University that studied the ef-

Modules Added to Estimatescrubber.Com

VehicleOwnersGuide.com, a provider of technology, connectivity and information solutions to the Collision Repair market, announced the addition of customizable estimating SOP’s and consumer engagement modules to EstimateScrubber.com. Subscribers can now customize scrubber review results (SOP’s) using their shop specific verbiage and attached documentation in place of the default review results. Shops can create estimating SOP’s for individual insurance companies, vehicle manufacturers, fleet, walk-in or other customers. Estimating SOP’s leverage knowledge across all estimators in real time. It take the knowledge of the best shop estimator and makes it available to everybody. It also provides a mechanism for managers/ owners to provide instructions to their estimators. It has a place in small, large and MSO shops.

autobodynews.com / MAY 2019 AUTOBODY NEWS

KSI Donates $250,000+ to Support CREF’s Mission KSI Auto Parts has contributed over $250,000 in financial and in-kind support for collision repair schools through the Collision Repair Education Foundation. KSI contributed $25,000 to support CREF last year and initiated a program to donate parts to collision school programs. Through the parts donation program, the company has contributed $240,000 in parts to schools. The monetary contribution assists CREF’s ability to offer collision school tool and equipment grants and student scholarships across the U.S. At many schools, students have to practice on parts that have been in use for many years and practiced upon by previous students. The parts donations by KSI Auto Parts help students work on parts for newer vehicles that they are more likely to see when they join the collision industry workforce.

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Coggin Nissan Plans New Collision Center, Sales Service Office Expansion in FL as 111,484 square feet, with a provision to allow up to 115,000 square Avenues Motors Ltd., which oper- feet. Avenues Motors is a subsidiary ates as Coggin Nissan at the Avenues in Jacksonville, FL, wants to of Duluth, Georgia-based Asbury rezone the property at 10859 Philips Automotive Group Inc. Plans show the proposed colliHighway as a planned unit developsion center behind the Penske Truck ment. Rental facility, the sales building expansion to the north and a reconfiguration of display and parking. Parking for the inventory is 632 spaces and customer and employee parking is 310 spaces, totaling 942 spaces. The rezoning application seeks to rezone 20.63 acres from industrial light, residential Coggin Nissan at the Avenues at 10859 Philips Highway rural-acre and commuwants to rezone its property, add a collision center and nity commercial/generalexpand the sales and service building. Photo via Google 2 to PUD. A companion small-scale future The auto dealer’s conceptual plans include removing 29,146 land use map amendment will be resquare feet of the 50,888-square-foot quired to change a two-acre portion complex and adding 89,742 square of the property from low density resfeet for a new collision center and ex- idential to community/general compansion of the sales and service mercial. Kimley-Horn and Associates building. The total build-out is shown by Scott Sailer, Daily Record & Observer, LLC

GEICO Files Lawsuit Against Auto Glass Shop Suspected of Fraud To prove it has a zero-tolerance policy regarding insurance fraud, GEICO has filed a federal lawsuit in Arizona against an auto glass repair shop suspected of submitting fraudulent glass repair bills, according to a March 25 press release. GEICO seeks to recover damages under civil RICO statutes, as well as for unjust enrichment and fraud. GEICO says the Arizona action is also a preview of future lawsuits. GEICO alleges that its customers’ signatures were forged on invoices submitted by A & E Auto Glass for repairs that were never performed. Specifically, GEICO was billed for repairs associated with recalibration of advanced driver assistance systems using falsified documents. In many instances, such a system was not even available on the specific make and model of the vehicle being repaired. In addition to billing for services that were never provided, the suit alleges that the defendants submitted fabricated documents from Arizona automobile dealer12

ships for reimbursement of glass parts that were never purchased. “GEICO has a zero-tolerance policy when it comes to insurance fraud,” said Shane Wheeler, assistant vice president of claims in GEICO’s Tucson, AZ, office. “These incidents of fraud hurt consumers because they cause premiums to increase.” Wheeler went on to say that GEICO has a long history of seeking out individuals willing to commit fraud. GEICO intends to file future lawsuits to continue making every effort to protect its customers and the public from fraudulent glass repair operators. GEICO filed its case—Government Employees Insurance Company, et al. v. A & E Solheim, LLC, d/b/a A & E Auto Glass, et. al.—in the U.S. District Court for the District of Arizona. GEICO also seeks a declaration that any pending claims are not owed. GEICO is represented by Barry Levy, Rivkin Radler LLP and William Thorpe, Thorpe Shwer P.C.

MAY 2019 AUTOBODY NEWS / autobodynews.com

Inc. is the applicant and civil engineer for the project. Asbury Auto Group operates 83 dealerships, sells 29 domestic and foreign brands and operates 25 collision repair centers. Angela Hong, head of corporate communications with Asbury Automotive Group, said the request and submittal to rezone the nine parcels “is a first step in an effort to prepare ourselves for future expansion or reconstruction.” She said it is too soon to comment on job numbers, a timeline or specifics of the plan. “Asbury Automotive Group, parent company of Coggin Nissan at the Avenues, is continually evaluating projects with an eye toward the future of automotive retail while also exploring opportunities to improve customer and employee satisfaction,” she said in a statement.

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NORTHEAST 2019 Features OEM Panel on ‘The Changing Landscape in Certified Repair’ tablish relationships with local dealers because many OEMs require One of the highlights of the 2019 dealer sponsorships,” he said. NORTHEAST automotive services Reichen also noted that new show was the OEM repair panel on equipment may be needed as new “The Changing Landscape in Certi- models and materials emerge. fied Repair and Understanding the “Once you sign on, OEM certiOEM Repair Procedures.” fication is a journey, not a destinaModerated by Ron Reichen of tion,” he said. Clark emphasized the Precision Body & Paint and Barry importance of looking at equipment Dorn of Dorn’s Body & Paint, the specifications to avoid redundancies panel consisted of Aaron Clark whenever possible, though he admitfrom Assured Performance, Leigh ted that some OEMs require specific Guarnieri from Honda, Mark equipment. Allen from Audi, Kenneth Park Allen added, “When we revamp from Volvo, Dave Gruskos from our repair procedures, we try to mainReliable Automotive Equipment, tain relevance so new equipment isn’t and Rick Miller from Wadsworth necessary and we can help keep the International. budget in line.” After explaining the purpose Dorn asked panelists if there of the panel discussion, Reichen have been changes since last year rejumped right in with his first ques- garding how a shop’s ability to proption regarding how shops manage erly utilize equipment is monitored. the equipment required by certifiGuarnieri said Honda requires cation programs. that certain classes be taken and Gruskos explained, “There’s no added that training has improved camagic piece of equipment to keep pability. Gruskos added, “Reliable everyone happy. OEMs do a lot of puts a lot of effort into training our testing, so you have to get the spe- equipment because shops need to be cific list of equipment from the prepared to do it the right way. No OEM. Yes, things will change, and one wants the liability of performing more equipment will be required later a repair half-way.” because vehicles keep evolving, and Park said, “It comes down to the equipment has to evolve with the doing everything the right way. Cars cars. Before buying equiparen’t made the same way ment, do your research. Any they used to be, and they hastily made decision is a don’t take hits the same. Edbad decision.” ucate yourself [as] best [as] Allen agreed, noting that possible and invest wisely. OEMs crash-test around 75 The future is OE. There’s no vehicles per model and have such thing as simple repairs a whole subset of engineers Ron Reichen poses anymore, but OE certificaresponsible for testing collition gives shops a competiquestions to OEM repair panelists sion repair and documenting tive edge in their markets. the procedures along with OEs just ask that you repair providing a list of tools and the vehicles correctly. A equipment. After the initial lack of education and trainrepair, the vehicles are crashing will hurt you in the long tested again to ensure that the term and put your customers repaired vehicle holds up to in danger.” the OEM’s standards. Park also noted that it’s Reichen suggested that difficult to specialize in Moderator Barry shops determine which manmore than a couple OEs. Dorn asks how ufacturers they should seek “If you’re prideful in what shops’ ability to properly use certification from by looking you do, a few OE certificaequipment is in local parking lots to identions should be more than monitored by OEMs tify which brands are most enough. Most importantly, common. you want to be able to sleep at night “It’s important that you know because you know you’re doing the your market and research the preva- right thing. Safety has to be the top lent vehicles in your area. Then, es- priority,” he said. by Chasidy Rae Sisk

MAY 2019 AUTOBODY NEWS / autobodynews.com

Allen stressed that the most important tool in any shop’s toolbox is its technicians. “Why wouldn’t you keep upgrading that tool through edu-

Kenneth Park from Volvo, Leigh Guarnieri from Honda, and Dave Gruskos from Reliable Automotive Equipment

cation and training? Their shortcomings should be viewed as opportunities to bring them to greatness,” he said. Reichen added, “There have been a lot of changes in the collision repair industry, and it’s no longer a trade—it’s a skilled profession.” Miller expanded on that, explaining that during an assessment, Wadsworth International serves as an extension of the manufacturer. It evaluates the shop for a culture

change, including consistency in accepting changes. Clark added, “It’s a universal opinion that the bar has been raised, but there’s still a lot of room for improvement. Training is the biggest

Rick Miller from Wadsworth International, Mark Allen from Audi, and Aaron Clark from Assured Performance

deficiency of a lot of shops. While training may exist within the organization, it’s not being received by the person who actually repairs the vehicle. In the near future, shops can anticipate shifts in training requirements being reinforced for the individual actually touching the car.” The panelists encouraged shop owners to research equipment and buy

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the best they can by focusing on the capabilities of the equipment and how it can benefit the shop in the future. In response to Reichen’s question about how OEs and vendors ensure shops know how to use the equipment, Gruskos said, “When a shop buys our equipment, it comes with an instructor because we want to make sure the techs know what they’re doing, and we don’t want the liability of someone getting hurt because they don’t know how to use the equipment properly. I do my best to train everyone, but it can be challenging since techs want to do things their way. If we train them and they take OE classes, hopefully they’re using the equipment correctly.” Reverting the discussion back to shop culture, Guarnieri emphasized, “Nothing seems to [change a shop’s culture] quite as well as getting the techs to OE training facilities. They’ll come back with a different attitude because they see how it could be and recognize their bad habits. When you achieve that culture change, you’re going to have a really good shop without monitoring your team every second.” The

conversation then turned to paying technicians a flat rate. “Flat rates are a thing of the past,” Park said. When Clark’s shop switched from a flat rate, he shared, “I lost a little gross profit initially, but I earned it back and then some. It’s important to find the proper blend of productivity and quality to make your shop successful. An hourly rate allows you to allocate resources more fluidly, and anything you can do to improve the culture of training and learning is a win.” Gruskos reminded attendees, “We’re talking about people’s lives here, and you can’t put a guy on the clock and expect the same quality. The most important thing is a safe, proper repair.” Reichen added, “Highly skilled and trained people do highly skilled jobs. Your techs with the highest skill sets should be compensated at a higher level.” Gruskos noted, “Techs tell me they want to go to training but don’t want to be punished financially. Training should be rewarded, but many shops owners are fearful because they wonder how they’ll be able to protect their investment in a tech sent to training.” According to

Allen, shops should see training “as a development plan and a succession plan. You’ll need to replace the experienced technicians retiring in the near future. Hire and train multiple techs at once to reduce the loss of productivity. This is an investment in the longevity of your business and helps drive us forward as an industry.” Additional topics included certified pre-owned vehicles, OEMs’ desire for brand loyalty, and the role of dealerships as sponsors for OEM certification. The OE representatives in attendance urged shops to reach out to them if they are unable to locate repair procedures on their websites so the procedures can be created. Everyone on the panel agreed that they anticipate an increase in parts restrictions as technology continues to develop. The panelists concluded by giving attendees an opportunity to ask questions.

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Travis County, TX, Body Shop Owner Sentenced

A Travis County, TX, body shop owner was sentenced to 10 years of probation after Texas Department of Insurance investigators found he had reported wrecks that never took place and damaged vehicles to increase insurance payouts. The fraud took place over the course of about five years, during which Elias Zapata changed the body shop’s name several times to avoid bad reviews. Zapata pleaded guilty to a first-degree felony in February. He was sentenced March 13 to probation and ordered to repay more than $76,000. The case was prosecuted by Travis County Special Assistant District Attorney Brian Chandler, one of six prosecutors employed by TDI who work in district attorneys’ offices across the state to fight insurance fraud. TDI investigators are certified peace officers and work closely with law enforcement authorities around the state when investigating fraud cases. You can report suspected insurance fraud by calling 1800-252-3439.

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WIN 2019 Educational Conference To Focus on ‘Navigating Tomorrow Together’ by Chasidy Rae Sisk

The Women’s Industry Network (WIN®) will host its 2019 Educational Conference from May 6–8 at the Westin Fort Lauderdale Beach Resort in Fort Lauderdale, FL. This year’s theme is “Navigating Tomorrow Together” and will feature a

long list of renowned industry speakers as well as presenters from outside the industry. The conference will begin that Monday with registration, a registration reception and orientation sessions for first-time attendees. The afternoon’s sessions will include “The TIME is N.O.W. for Win,” presented by Darren Huggins, national collision director of Berkshire Hathaway Automotive, and G.B. Outlaw of T.E.A.M. Out-

law. Jessica Ekstrom, founder and CEO of Headbands of Hope, will present “That’s What She Said – Making Our Internal Dialogue Our Biggest Cheerleader.” The evening will conclude with a Welcome Reception. Tuesday will begin with WIN’s annual Scholarship Walk, followed by keynote speaker Connie Dieken. After lunch, attendees will choose from three breakout sessions: “Effectively Communicating During Times of Conflict to Achieve the Results You Want” with Spring Cutsforth of VECO Experts; “Technical Challenges for a New Generation of Technicians” with Keith Schieffer, technical team leader at Universal Technical Institute; and “Change Your Mind to Change Your Results,” presented by Sheryl Driggers, owner of Universal Collision Centers. The last session of the afternoon will be “Integrating Our Past to Transcend Our Future,” a presentation delivered by Roger Wright, founder and managing director of Vector Squared, LLC.

Tuesday evening, WIN will host its Annual MIW and Scholarship Winners Awards Dinner and Gala where the 2019 scholarship recipients and 2019 Most Influential Women will be honored. This year’s honorees are Kathy Mello, Yen Hoang, Erica Schaefer and Judy Folk. The final day of WIN’s 2019 Educational Conference will begin with an industry update, followed by a women’s panel. Richard Flint, CEO of Richard Flint International, will present “Navigating the Channels of Life and Business” before the event’s closing remarks concludes the conference. For more information on WIN or to register for the conference, visit womensindustrynetwork.com.

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CARSTAR EPG Set To Drive Network Performance The CARSTAR proprietary EDGE Performance Group will continue to drive performance improvements across the CARSTAR network through national repair processes, performance standards and focused training on delivering those standards. To provide handson training, CARSTAR hosts zone-aligned regional EDGE Performance Group (EPG) meetings to allow more CARSTAR franchise partners to participate in the valuable training program. The winter 2019 EPG meetings were hosted this February in Tampa Bay, FL; Dallas, TX; and Denver, CO. At the meetings, more than 85 CARSTAR franchise partners, managers and team members heard from their zonealigned corporate partners on important updates specific to their zone. These updates included marketing, insurance sales and development. CARSTAR’s analytics team also hosted a training breakout session on CARSTAR’s new EDGE Scoreboard.

autobodynews.com / MAY 2019 AUTOBODY NEWS

NABC Recycled Rides Gets Veterans Back on the Road in Lakeland, FL by Bobby Lewis, 10News WTSP

Alisha Rousset will not forget her daughter’s sixth birthday. “It was Dec. 21,” she said as she described her big surprise. “I started crying. Tears of joy. My life was about to change.” Little Gabriella wasn’t the only one to get a gift that day. Alisha, a mother of four and Army veteran, was given a free car from the family-owned CARSTAR auto body shop in Lakeland, FL. The 2011 Toyota Corolla had less than 30,000 miles on it. “We were Ubering and having to get rides from people,” said Alisha, who was without a car for nine months. “It was very hard.” The car is now hers because of a program called Recycled Rides that is overseen by the National Auto Body Council. Essentially, totaled cars are given to auto body shops to be fixed up and given away to veterans in need. Often, they come at just the right time. For the families at CARSTAR, the patriotic aspect makes participating in the Recycled Rides effort even more appealing. “We’re all about that,” said Patrick Cullaton.

In 2015, his son, Corey Cullaton, was looking for an Eagle Scout project. Inspired by his grandfather’s love for cars and work with Purple Heart recipients, Corey found a few old clunkers and restored them for a good cause. It reignited a passion at the family business to help others in need. “It seemed like a fixable car,” Corey recalled. “It was a definite pay[off] to see the two ladies that I gave the cars to, their expressions and their joy.” Since then, CARSTAR has been steady in its car giveaways to veterans. They find worthy recipients through organizations like the Purple Heart, Clarks House, and Society of St. Vincent De Paul. “You just feel it more and you know these people deserve it,” said Kevin Eggleston, whose son, Mark, is a 17-year Army veteran. “It’s a good feeling.” Eggleston has worked in the collision industry for over 50 years. He preps cars for painting and helps with odd jobs around the CARSTAR campus. CARSTAR in Lakeland has given away 10 cars to veterans over the years. “We wanted to help out our community,” said Heather Cullaton.

Matrix Wand Joins CIECA as Corporate Member Matrix Electronic Measuring, Inc. (MEM) recently joined CIECA as a Corporate Member. Founded in 2003 and based in Salina, KS, the

company developed the Matrix Wand, a patented, stereoscopic 3D computerized measuring system. The hand-held, portable, targetless stereoscopic imaging system uses photogrammetry and was designed to solve problems associated with structural collision repair, calibration and 3D vehicle integrity documentation. After learning about CIECA over the past year, MEM decided to join the organization and is cur-

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rently part of CIECA’s new Calibration Committee. “Matrix is passionate about collision repair and dedicated to the future of our industry,” said Jan Srack, founder of MEM. “Standards and calibrations are critical in the collision repair world, and CIECA is dedicated to both of these. Matrix is excited about the opportunity to work together.” Srack said 3D data is an important part of the industry and Artificial Intelligence (AI). “AI expects the vehicle to be perfect and may operate off a structurally imperfect sensor thinking it is perfect,” she said. “By evaluating the sensors and cameras where they need to be to operate correctly, it will help technicians repair the vehicle back to OEM specifications and give customers peace of mind about their safety. We believe that by working with CIECA, we’ll be able to help standardize our industry’s calibrations.”

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“Transportation and housing [are two] of the biggest struggles veterans have, especially those who have families. “I think we take it for granted, our transportation.” In addition to the new wheels, Alisha’s Corolla was filled with birthday and Christmas presents for her kids by the students in the Central Florida Aerospace Academy’s ROTC program. There were so many gifts that her kids wouldn’t fit in the car. It was a blessing that has led to a close relationship with the families at CARSTAR. Alisha served in the Army from 2006–2008. “It shows that people value our service,” she said, still shocked to be the owner of her silver car. “I would have taken purple with pink polka dots.” Alisha and Heather hugged in the parking lot. They hadn’t seen each other since that Dec. 21 giveaway. CARSTAR hopes to contribute 2–3 recycled rides per year. “I can’t wait until the next one,” said Heather. CARSTAR will give away its next Recycled Ride on April 12 in Orlando. We thank 10News WTSP for reprint permission.

Knoxville I-CAR To Host Golf Outing by Chasidy Rae Sisk

The Knoxville I-CAR Committee will host a golf outing on May 22 at Avalon Golf Course in Lenoir City, TN.

Proceeds from the event will benefit the Collision Repair Education Foundation. For more information, visit the Knoxville I-CAR’s Facebook page at facebook.com/ICARKnoxville/.

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Marcia Seebachan Joins Shops to Back Insurer-OEM Procedure Legislation in Texas as it caught on fire, burning his legs and “exposing the bone in some Marcia Seebachan, one of two oc- places,” she said. cupants who suffered severe injuries Seebachan said her husband following the crash of a vehicle re- couldn’t come to the hearing, doubtpaired outside of OEM procedures, ing that he could “endure this.” testified April 9 in support of a bill The jury largely agreed, holding requiring insurers to reimburse those the shop 75 percent responsible for procedures. their suffering and determining John Eagle Collision should pay the SeeSee cover stories this issue. She and her husband, Matthew bachans $31.5 million. (The couple Seebachan, were traveling in the Fit and shop later settled for an undison a 75 mph stretch of road in 2013 closed amount.) when a 2010 Toyota Tundra in the Honda OEM repair procedures other lane hydroplaned into their demand a shop tack-weld the front path, leading to the Fit striking the and rear corner edges of the new roof and then perform a combination of two- and three-plate spot welds and MIG plug welds. More than 100 welds are required by the manufacturer, Seebachan said. John Eagle Collision Center body shop director Boyce Willis in a deposition agreed the facility bonded the roof with 3M 8115 adhesive despite little concrete evidence or engineering knowledge to support the decision — particularly as 3M and Honda instructions state otherwise. Seebachan said testimony at the trial held that were the vehicle repaired correctly, Matthew and Marcia Seebachan were seriously injured her husband’s outcome after their 2010 Honda Fit collided with a hydroplaning would have just been a bro2010 Toyota Tundra. Credit: Tracy Law Firm via PRNewsFoto ken leg—the same limb “I right front quarter of the Tundra in a cleaned his bones on.” T-bone collision. “… It is unconscionable that Experts for the plaintiffs said in companies can undermine this court documents that the severity of process by approving insufficient rethe crash and the Seebachans’ in- pairs,” Seebachan told the commitjuries were the result of John Eagle tee. Doing so keeps Texans from Collision Center adhesive-bonding the Fit’s roof during a $8,500 hail re- making informed decisions, she said. pair for the prior owner. The Seebachans also had no “We were both seriously injured, idea the vehicle had received body and it is exceptional that we are alive work when they bought the Fit, as today,” Marcia Seebachan told the the CARFAX report only reflected Texas House Insurance Committee upholstery work, according to their on on Tuesday during a hearing on attorney Todd Tracy. House Bill 1348. Representatives The report was “completely infrom Texas auto body repair trade accurate,” for the vehicle had actugroups also testified in support. ally been “repaired poorly,” Marcia Seebachan said two of her in- Seebachan agreed. juries should have killed her, and anUsed car sales in Texas outnumother could have. ber new car sales, but those buyers “Matthew was not as fortunate,” are “no less deserving of the right to she said. He was trapped in the car be safe” and make informed deciby John Huetter, RepairerDrivenNews.com

MAY 2019 AUTOBODY NEWS / autobodynews.com

sions, she said. It would never be known how many times fatalities or injuries could have been prevented by a correct repair, but lawmakers could

done correctly,” she said. HB 1348 will hold insurers to OEM repair procedures. It declares that a carrier can’t “disregard a repair operation or cost identified by an estimating system, including the system’s procedural pages and any repair, process, or procedure recommended by the original equipment manufacturer of a part or product.” In addition to demanding insurers acknowledge repair procedure, the bill defines “(r)easonable and necessary amount” as “the amount determined by the original This 2010 Honda Fit burned following a collision with a equipment manufacturer’s hydroplaning 2010 Toyota Tundra. manufacturer and estimating stop some future harm by passing systems required to repair a vehicle to the bill and requiring OEM proce- the condition before the covered damage to the vehicle occurred.” dures. It also defines “like kind and Seebachan said her current vehicle has expereinced hail damage. quality” for aftermarket parts and adBecause of what happened to them, dresses steering and questionable they don’t feel capable of taking it prevailing rate surveys. The bill is currently pending in somewhere for repairs, she said. “We don’t know that it would be the Insurance Committee.

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autobodynews.com / MAY 2019 AUTOBODY NEWS

Continued from Page 4

APCIA Opposition

percent of shops Woods deemed honest and adhering to OEM procedures would probably be happy to post-repair-inspect their rivals’ work for a suspicious insurer or customer. Adjusters ensure repair quality? Woods’ testimony on repair procedures continued with another feat of logical gymnastics. He essentially made the case that insurers shouldn’t be compelled to pay for OEM repair procedures because the carriers are ensuring shops follow them. “So, this is a highly unregulated business,” Woods said. “The insurance adjusters are really the only people that … have any shot at regulating practices and quality.” Which is funny, because Nationwide just argued to the Pennsylvania Supreme Court in fall 2018 that it had no duty at all to verify quality (at least in Pennsylvania). “In the Bergs’ third question presented for this Court’s review, they seek to have this Court declare that

Nationwide itself had a duty under Pennsylvania law to verify that the vehicle, and presumably every vehicle that gets repaired pursuant to an insurance policy, was repaired properly and that its failure to do so is bad faith,” Nationwide wrote regarding Berg v. Nationwide. “This question does not warrant this Court’s review because no such duty exists, and even if it did exist it would not prove that Nationwide acted in bad faith.” (Emphasis Nationwide’s.) Earlier in its motion against the Supreme Court hearing the appeal, the carrier pointed out that it wasn’t necessarily checking for quality at all on the Jeep at the heart of the case. Those repairs were overseen by a Nationwide direct repair program shop. “Nationwide’s Steve Potosnak testified that Nationwide representatives typically went to Lindgren only to ensure that the repair shop was complying with its prior appraisals,” Nationwide wrote. “Potosnak specifically testified that he would review the quality of repairs ‘only if there was a complaint filed’ about a vehicle. Here, of course, there is no evidence whatsoever that any complaints

MAY 2019 AUTOBODY NEWS / autobodynews.com

were raised with Nationwide. Thus, it is not surprising that there is no evidence that Nationwide re-inspected the Jeep. Likewise, it makes perfect sense that there are no completed reinspection reports. Rather than supporting the Bergs’ argument, the lack of a completed re-inspection form corroborates, rather than undermines, the fact that no repair inspection took place and that Nationwide was unaware of any issues. While the Bergs argue that ‘reinspection reports should exist in the claim file,’ … they fail to cite any precedent holding that a failure to perform re-inspections constitutes bad faith, as opposed to mere negligence.” (Emphasis Nationwide’s.) And State Farm certainly doesn’t seem to have caught John Eagle Collision’ infamous incorrect hail repair that Woods cited moments before. Instead, that case raised a question of broader insurance industry behavior that directly seems to suggest a need for bills like HB 1348. According to Willis’ deposition: A: (Adhesive) is — it is a accepted repair alternative, based on our cars and insurance certifications. Q: All right. And let’s have an

agreement today that we don’t use the word “insurance.” Can we — is that cool? A: Well, unfortunately we’re guided by insurance.· So—the—if you brought your car into my shop, right, the insurance company’s going to dictate what—how we’re going to repair your car. Q: I understand. But the — but you — your — as a certified body shop, you have to — you — the — the insurance company cannot trump the OEM specifications, correct, sir? A: Yes, they can. Q: Where does it say that? A: By not paying the bill. Auto Body Association of Texas board member Chad Kiffe (Berli’s Body & Fine Finishes) acknowledged during the hearing that body shops have a responsibility to do the job right—it’s not just an insurer problem. He noted that many shops still didn’t use OEM repair procedures. “It’s within ourselves as well,” he said. “But we need to take out the excuse that we can’t get paid for it.” For more on this and related stories search this article title at repairerdrivennews.com.

Continued from Cover

Short Pays

By educating himself on the collision repair industry, Scott has been able to recover short pays for the shops. However, he recently came up with a new solution for shops that don’t want to wait months or even years to collect on short pays. Through StopShortPays.com, Scott purchases the right to collect on an insurer’s short pay from the shop. Because Scott pays the shop upfront, the process is quick and easy for the shops, eliminating the need to pursue lawsuits. According to Scott, “Once I purchase the right to collect on a shop’s short pay, it becomes my problem. If the insurance company doesn’t settle, I file a lawsuit, which may take a long time to pursue, but I’m used to it.” Scott will purchase short pays up to two years old. Although he’s based in Texas, he has worked with shops in Colorado and New Jersey and said he’s willing and able to buy short pays from shops anywhere in the country.

Of course, shops who sell the right to collect on short pays receive only a percentage of the original short pay amount, up to 60 percent, and this percentage varies based on the strength of the shop’s documentation. Scott explained, “Some short pays are easier to collect on than others. We need to see an invoice showing what work the shop performed, how much was charged, the amount paid and the outstanding balance. A lot of shops change their invoices to match the insurer’s estimates, making it difficult to pursue the short pay in court because it appears as though the shop was paid in full. “Some shops’ documentation states they ‘agree to repair per the insurer estimate,’ and I don’t like those because it sounds like they’re agreeing to accept what the insurer wants to pay. Other shops make it clear that they have established prices and will accept payment from the insurer but the customer is responsible for the balance. These are much easier to pursue and receive payment on.” If a shop’s documentation isn’t strong enough to hold up in court, Scott may offer a smaller percentage

of the short pay amount, or he may provide coaching on how to organize their documentation in the future. Scott offered advice to shops on ensuring their documentation is as strong as possible. “The customer should sign an authorization that the shop performing the repairs will bill the insurance company but is not waiving their right to collect payment in full,” he said. “The authorization should make it clear that the shop expects to receive the complete amount they invoice. Pre- and post-scanning documentation is helpful for proving what repairs were completed, but the invoice is the most important part and must clearly indicate what work was completed, the charges presented, the amount paid by the insurer, and the balance due.” The goal of StopShortPays.com is to help shops recover short pay losses without engaging in complicated, time-consuming legal processes. According to Scott, “Our process gives shops access to capital they didn’t think they had without the hassle of pursuing litigation themselves.” For more information, visit: StopShortPays.com.

CARSTAR Conference To Be Held July 10–12

As it celebrates its 30th anniversary, CARSTAR is planning a gathering in Chicago this summer. CARSTAR will host the CARSTAR Acceleration 2019 conference from July 10–12 on the shores of Lake Michigan at the Hilton Chicago. The 2019 CARSTAR conference is the third annual North American event that integrates the U.S. and Canadian conferences. CARSTAR Acceleration 2019 will kick off with a unique “Soul Stroll” walk for cystic fibrosis on Wednesday morning, where the organization will honor the top Shine Month fundraisers and walkers will experience beautiful Grant Park. Opening ceremonies will follow that afternoon, then CARSTAR Conference guests will suit up for an evening at legendary Wrigley Field, where attendees have the opportunity to take simulated batting practice, throw a few pitches and tour the Ivy Confines.

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Honda, Acura Recall 1.1 Million Vehicles Over Takata Airbags by David A. Wood, CarComplaints.com

We thank CarComplaints.com for reprint permission. Honda is recalling more than 1.1 million Honda and Acura vehicles that were previously recalled, or the airbags were used as replacements to prevent the inflators from exploding. • • • • • • • • • • • • • • • • • •

2003 Acura 3.2CL 2013-2016 Acura ILX 2013-2014 Acura ILX Hybrid 2003-2006 Acura MDX 2007-2016 Acura RDX 2002-2003 Acura 3.2TL 2004-2006 and 2009-2014 Acura TL 2010-2013 Acura ZDX 2001-2007 and 2009 Honda Accord 2001-2005 Honda Civic 2003-2005 Honda Civic Hybrid 2001-2005 Honda Civic GX NGV 2002-2007 and 2010-2011 Honda CR-V 2003-2011 Honda Element 2007 Honda Fit 2002-2004 Honda Odyssey 2003-2008 Honda Pilot 2006-2014 Honda Ridgeline

The vehicles were originally recalled to replace the driver’s side frontal Takata airbag inflators with different Takata inflators that con-

tained a desiccant to keep the chemical propellant dry. The chemical, ammonium nitrate, can become unstable when exposed to heat and moisture over time. Honda believed replacing the non-desiccated airbag inflators with desiccated inflators would solve the problem of ruptured inflators. But the crash of a 2004 Honda Odyssey altered that perception when the desiccated inflator exploded and injured the driver’s arm. The automaker opened an investigation and determined manufacturing errors occurred at a Takata plant in Mexico where the inflators were exposed to excessive moisture.

This can cause over-pressurized airbag deployments that send metal debris into the vehicle cabins and the occupants.

Honda says affected customers will be mailed recall notices April 17, but Honda and Acura dealerships already have the required replacement parts in stock. Owners shouldn’t wait to contact their Honda and Acura dealers to schedule appointments to have the driver-side inflators replaced. Free rental cars are available in the event replacement airbag inflators or airbag modules are temporarily unavailable. Honda owners with questions or concerns should call 888-2342138 and ask about recall number O41. Acura owners may call the automaker at 888-234-2138 and ask

for information about recall number U40. CarComplaints.com has complaints from owners of the Acura and Honda vehicles named in the Takata airbag recall: • • • • • • • • • • • • • • • •

Acura CL Acura ILX Acura ILX Hybrid Acura MDX Acura RDX Acura TL Acura ZDX Honda Accord Honda Civic Honda Civic Hybrid Honda CR-V Honda Element Honda Fit Honda Odyssey Honda Pilot Honda Ridgeline

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‘Who Pays for What?’ Surveys Find Growth in Shops Billing (& Being Paid) for Masking for Priming An upward trend in the percentage of shops across the United States regularly being paid by the eight largest national insurance companies to mask as necessary for priming continued this year. Back in 2015, a “Who Pays for What?” survey conducted by Collision Advice and CRASH Network found that less than 1 in 4 (24 percent) shops said they were paid “always” or “most of the time” when charging for the “not-included” labor required prior to the priming process to protect the vehicle from overspray. That grew to 37 percent in the last several years. But the same survey this past January found that 43 percent of the more than 600 shops responding to the question reported regularly being paid for masking during the priming process. Only about one-third of shops said they have never sought to be paid for that procedure. Mike Anderson of Collision Advice said the change is a good indication the industry is increasingly aware of the not-included procedures shops often perform without 28

seeking compensation. He said the latest of the four 2019 “Who Pays for What?” surveys, which focuses on “not-included” body labor operations, is open now through the end of April at: https://www.surveymonkey.com/ r/S3FQ8X3 Anderson said the survey, which will take about 15–25 minutes, can be completed by any shop owner, manager or estimator who is familiar with the shop’s billing practices and the payment practices of the largest national insurers. Each shop’s individual responses are kept confidential; only aggregated data is released. Survey participants receive a report with complete survey findings at no charge, broken down by region, insurer and DRP vs. non-DRP. The report also includes analysis and resources to help shops better understand and use the information presented. The results of previous surveys are also available online (https:// www.crashnetwork.com/collision advice).

MAY 2019 AUTOBODY NEWS / autobodynews.com

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autobodynews.com / MAY 2019 AUTOBODY NEWS

Color Match 101: A Visit to Axalta’s Customer Experience Center by Barbara Davies

On March 21, I attended Axalta’s Media Day on behalf of Autobody News at its customer experience center in Concord, NC. This was my third year attending the event, the focus of which was “Speed & Accuracy Without Sacrifice.” Dan Benton, Axalta’s color match manager, started the day by providing an overview of Axalta’s Color Match and Color Theory history. Benton explained that Axalta has a rich 153-year history of innovation: • In the 1920s, Axalta developed the first sprayable paint used at a production plant. This reduced paint time from days to hours. • In 1990, Axalta developed the “Vindicator,” the first digital tool used to select a color formula based on where the vehicle was manufactured. It’s basically the car’s “fingerprint” and identifies where and when a car was made. • In 2017, Axalta launched its latest innovation, the Acquire™ Quantum EFX spectrophotometer, with

Why Is Color-Matching So Important? Painters need a precise color formula so they can match the paint color the first time and mix the smallest amount of paint necessary to repair the vehicle. They don’t get paid to remix or paint more of the vehicle than what was damaged. The faster they can get it through the shop, the better for the customer and the shop. Why Is Color-Matching So Difficult? What surprised me most was the fact that even though an OEM plant may use the same color mix for a new car line in two different parts of the country, the actual paint color could vary based on the temperature and humidity of each plant. After the color history overview, Benton brought us outside the training center to get some hands-on experience with how color matching happens in the real world. Bob Little, Axalta’s customer experience center manager, let us use his own grey Chevy Silverado truck for the demos.

Hands-On Demonstration #1: Fan Deck Each of the five media participants got a chance to hold the fan deck up to the truck and try to determine the closest match. As easy as that sounds, it wasn’t easy at all. Depending on the angle you looked at the fan deck against the truck, a different paint color in the deck looked like the perfect match. Very frustrating! There was no consensus among the group on the best match. Demonstration #1: Barbara tries out the traditional color Even though this type of fan deck to match the truck color color-matching is a bit “lowWi-Fi connectivity. This tool allows tech,” many painters grew up with it painters to key in the VIN to gener- and still use it. They know how to ate the exact color formula specific make slight adjustments to come up to that vehicle. with the exact color match. This is a skill, and not everyone has it; hence Benton then went on to explain the the need for Demo #2. art and science of color-matching. I had never really thought about all the Hands-On Demonstration #2: color variations available to painters. Our next demo involved the use of All the new colors that we see with Axalta’s Acquire™ Quantum EFX their micro-flakes that reflect light so spectrophotometer, fondly referred beautifully in different lighting condi- to as “the camera.” We learned that tions also make it very difficult to de- one benefit of the camera over the fan termine the exact color match needed chip is that the camera has a database to repair a vehicle. of tens of thousands of colors, while 30

MAY 2019 AUTOBODY NEWS / autobodynews.com

fashion show of sorts for each of the OEM car manufacturers. In this presentation, they present a “color board” of what colors they believe will be the most popular 2–3 years down the road. The paint companies’ color teams track fashion trends and other style markers (possibly economic and Demonstration #2: Bob Little, Axalta’s customer experience center manager, assists Barbara with Axalta’s Acquire™ environmental factors, etc.) Quantum EFX spectrophotometer, fondly referred to as and present their color board “the camera,” to take a digital color reading of the truck to the OEM brand design team. After much back-andthe fan deck may only have 5,000 forth between the teams, certain colors total color chips. are selected from each manufacturer, and then each manufacturer is reBetter Wash It First! Little’s truck looked clean, but we quired to formulate each color so they were quickly informed that the first have it available for their shop custhing a shop needs to do is thoroughly tomers. clean the part of the vehicle on which • Ports of Entry: When a new model vehicle is released with a new the camera will be used. We each took a turn using the paint color, Axalta and the other paint camera to take a reading of a section manufacturers will have people from their laboratories go to rail head or of the car. Simple Process: Take the pic- shipping port points of entry and take ture and plug into the computer, and tens of thousands of camera readings on the actual vehicles coming off the it pulls up the color match. rails or ships. They do this to compare the actual new vehicle reading to what the formula stated so that they can “tweak” their paint formulas if necessary before they provide it to their customers.

Peter Maier in front of one of his paintings

Quick Results: The camera has Wi-Fi, so when we went inside the color-mixing room, the results were already there and provided the color mix formula that most closely matched the truck’s paint. This would allow the shop to then mix the specific formula without waste and paint just the section of the vehicle that was damaged. Very efficient! Axalta also offers an automated dispensing system for even greater mixing accuracy. Some other interesting facts from the day: • Color Fashion Show: Each year, the five major paint companies (of which Axalta is one) put on a color

After lunch, we met Peter Maier, who creates photorealist paintings of cars. A former employee of General Motors, Maier worked as a senior designer for Cadillac, Pontiac and Chevrolet and went on to pioneer the use of automotive paint in fine art. For example, “1959 Sting Ray” (1996), which is scaled to the exact dimensions of its subject, acquired its shine and saturation of color through more than 20 coats of metallic silver paint. His process of applying layers of color and clear varnish “produces an illusion of depth, surface and saturation not possible with traditional mediums,” Maier said. “Often, my cars and motorcycles look like they are under glass.” Not surprisingly, Maier uses Axalta paints.

autobodynews.com / MAY 2019 AUTOBODY NEWS

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

FLORIDA

Freeway Honda Birmingham

800-987-0819 205-949-5460 Dept. Hours: M-F 7:30-5 greg_thomas@freewayhondaal.com

FLORIDA

Braman Honda of Palm Beach

Hendrick Honda Pompano Beach

Gerald Jones Honda

Greenacres

Pompano Beach

888-479-0695 561-966-5185

954-425-8244

800-733-2210 706-228-7040

Dept. Hours: M-Fri 7-6; Sat 7-5; gerardbruno@hendrickauto.com

Dept. Hours: M-F 7:30-6; Sat 8-5 tdunn@geraldjoneshonda.com

Holman Honda of Ft. Lauderdale

Gwinnett Place Honda

Dept. Hours: M-F 7:30-6; Sat 8-4:30 parts@bramanhondapb.com

Jerry Damson Honda Huntsville

800-264-1739 256-382-3759 Dept. Hours: M-F 7-5:30; Sat 8-4 Rkeel@damson.com

Classic Honda Orlando

Ft. Lauderdale

888-893-4984 407-521-1115

888-792-7189 954-763-7157

Dept. Hours: M-F 7-7; Sat 8-4 parts@classichonda.com

Dept. Hours: M-F 8-5:30 rguido@holmanauto.com

FLORIDA

AutoNation Honda Clearwater C l e a r wa t e r

888-205-2564 727-530-1173 Dept. Hours: M-F 7-7; Sat 8-5; Sun 10-3 santosr1@autonation.com

AutoNation Honda Hollywood H o l l y wo o d

Honda Mall of Georgia 678-318-3155

877-544-2249

Dept. Hours: M-F 7-7; Sat 7-5 cdunlap@penskeautomotive.com

Dept. Hours: M-F 7:30-6; Sat 8-5 gbennett@cogginauto.com

Ed Morse Honda R i viera Beach

800-232-1098 561-844-8089

Dept. Hours: M-F 7-7; Sat 7-5; Sun 9-5 hernandeze@autonation.com

Headquarter Honda

Braman Honda Dept. Hours: M-F 7-7; Sat 7-4 calvarez@bramanhonda.com

Dept. Hours: M-F 7:30-6; Sat 8-5 gphwholesaleparts@hendrickauto.com

Davie

800-542-8121 954-964-8300

305-266-1915

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Rick Case Honda Dept. Hours: M-F 7-7; Sat 7:30-4 robbutton@rickcase.com

South Motors Honda Miami

888-418-3513 305-256-2240 Dept. Hours: M-F 8-7 mfranceschi@southhonda.com

Buford/Gwinnett

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770-534-0086 678-989-5473 Dept. Hours: M-F 7:30-6 robertthomas@mmhonda.com

Newnan

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Ed Voyles Honda Hendrick Honda Bradenton

Marietta

866-362-8034 770-306-4646

Bradenton

800-334-3719 770-933-5870 Direct

Dept. Hours: M-F 7:30-7; Sat 8-5 hondawp@nalleycars.com

Dept. Hours: M-F 7:30-7; Sat 8-4 Kris.kitzman@hendrickauto.com

Honda of Newnan Carey Paul Honda

877-706-2021 941-752-2123

Milton Martin Honda

GEORGIA

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Duluth

Deland

800-758-0007 386-626-1811

Augusta

Coggin Deland Honda

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Miami

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ACURA ALABAMA

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Jerry Damson Acura

Duval Acura

Jackson Acura

Huntsville

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Dept. Hours: M-F 7-5:30; Sat 8-4 Rkeel@damson.com

Dept. Hours: M-F 7-7; Sat 8-5 Cecil.adams@duvalacura.com

Dept. Hours: M-F 7-6; Sat 7:30-6 kmcmillan@jacksonacura.com

Dept. Hours: M-F 7:30-6; Sat 8-5 travis.morrison@southernmotors.com

Rick Case Acura

Nalley Acura

FLORIDA

Acura of Orange Park J a ck s o n v i l l e

888-941-7278 904-777-1008 Dept. Hours: M-F 7-8; Sat 7-5; Sun 9-3 msweeney@acuraoforangepark.com 32

FLORIDA

F o rt Lauderdale

Marietta

800-876-1150 954-377-7688

800-899-7278 770-422-3138

Dept. Hours: M-F 7:30-6; Sat 8-5 rubenramos@rickcase.com

Dept. Hours: M-F 7-7; Sat 7-5 byoung@nalleycars.com

MAY 2019 AUTOBODY NEWS / autobodynews.com

Southern Motors Acura

NO. CAROLINA

Flow Acura Winston-Salem

800-489-3534 336-761-3682 Dept. Hours: M-F 7:30-6; Sat 8-1 www.flowacura.com

GEORGIA

NO. CAROLINA

SO. CAROLINA

VIR G I N I A

Southern Motors Honda

Leith Honda

Midlands Honda

S ava n n a h

R a l e igh

Columbia

Norfolk

888-785-8387 912-925-1444

800-868-6970 919-790-8228

877-273-4442 803-691-8585

800-277-2122 757-687-3453

Dept. Hours: M-F 8-6; Sat 8-5 angela@southern-motors.com

Dept. Hours: M-F 7-7; Sat 7:30-5 parts@leithhonda.com

Dept. Hours: M-F 7-7; Sat 7-4 www.copytk.com

Dept. Hours: M-Sat 7:30-6 honda.checkeredflag.com

McKenney-Salinas Honda

Piedmont Honda

Colonial Honda

G a s t onia

Anderson

Chester

888-703-7109 704-824-8844 x 624

800-849-5057 864-375-2082

800-564-9836 804-414-1960

Dept. Hours: M-F 7:30-5:30 parts@mshonda.com

Dept. Hours: M-F 7:30-6; Sat 8-5 swhite@piedmontcars.com

Dept. Hours: M-F 8-7; Sat 8-4 rreese@i95honda.com

MISSISSIPPI

Patty Peck Honda Ridgeland

800-748-8676 601-957-3400 Dept. Hours: M-F 7:30-6; Sat 8-5 pmartin@pattypeckhonda.com NO. CAROLINA

Apple Tree Honda Asheville

800-476-9411 828-684-4400 Dept. Hours: M-F 8-5; Sat 8-4 appletreeparts@hotmail.com

Crown Honda Southpoint

Metro Honda I n d i a n Trail

866-882-9542 704-220-1522 Dept. Hours: M-F 6:30-6:30; Sat 7-4 www.copytk.com

Vann York Automall H i g h Point

336-841-6200 Dept. Hours: M-F 7:30-6; Sat 8-3

Durham

855-893-8866 919-425-4711 Dept. Hours: M-Thu 7-11; Fri 7-6 Sat 7-5; Sun 11-5 www.southpointhonda.com

Hendrick Honda Charlotte

800-277-7271 704-552-1149 Dept. Hours: M-F 7-7; Sat 8-5 rob.thomas@hendrickauto.com

SO. CAROLINA

Breakaway Honda G re e n ville

800-849-5056 864-234-6481 Dept. Hours: M-F 8-6; Sat 8-5 fmarshall@breakawayhonda.com

Hendrick Honda Easley

Hall Honda

TENNESSEE

Airport Honda Alcoa

800-264-4721 865-970-7792 Dept. Hours: M-F 7:30-6:30; Sat 7:30-5 parts@airporthonda.com

AutoNation Honda West Knoxville Knoxville

Virginia Beach

800-482-9606 757-431-4329 Dept. Hours: M-F 8-7; Sat 8-5 fox@hallauto.com

Valley Honda Staunton

800-277-0598 540-213-9016

800-824-1301 865-218-5461

Dept. Hours: M-F 7:30-5:30; Sat 9-5 bwimer@myvalleyhonda.com

Dept. Hours: M-F 7:30-6 rossd1@autonation.com

West Broad Honda

Bill Gatton Honda

800-446-0160 804-672-8811

Bristol

800-868-4118 423-652-9545

E a s l ey

Dept. Hours: M-F 7:30-5:30; Sat 8-1 hondaparts@billgattonhonda.com

888-513-5869 864-850-1200

Wolfchase Honda

Dept. Hours: M-F 7-6; Sat 8-5 christopher.gagnon@hendrickauto.com

Checkered Flag Honda

Richmond

Dept. Hours: M-Fri 7:30-6:30; Sat 8-5 wbhonda@aol.com

Bartlett

800-982-7290 901-255-3780 Dept. Hours: M-F 7-7 ekerr@wolfchasehonda.com

NO. CAROLINA

TENNESSEE

VIRGINIA

Hendrick Acura

Gary Force Acura

Charlotte

B re n t wood

Falls Church

800-768-6824 704-566-2288

800-653-6723 615-377-0500

800-550-5035 703-824-5785

Dept. Hours: M-F 7:30-6; Sat 8-5 justin.taylor@hendrickauto.com

Dept. Hours: M-F 7:30-6; Sat 8-2 jtrail@garyforceacura.com

Dept. Hours: M-F 7:30-6; Sat 8-6; Sun 10-5 jimgraf@radleyauto.com

Leith Acura Cary

800-868-0082 919-657-0460 Dept. Hours: M-F 8-6; Sat 8-4:30 parts@leithacura.com

Radley Acura

VIRGINIA

Karen Radley Acura Wo o d b ridge

800-355-2818 703-550-0205 Dept. Hours: M-F 7:30-5:30; Sat 8-3 coreythompson@radleyautogroup.com autobodynews.com / MAY 2019 AUTOBODY NEWS

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 1 - The Collision Industry Starts to Mature If the 1940s and 1950s marked the industry’s earliest “modern” beginnings and the 1960s signified the industry’s “grammar school” years, the 1970s could be seen as its teenage years. Changes were happening, signs of maturity were beginning to show, and yes… there were some “growing pains.” Veterans of that period claim it was like operating in the Wild West. After calling on a shop, one former insurance adjuster noted, it was not uncommon to return to one’s car to find an envelope stuffed with $100 bills over the visor to ensure continued “favorable treatment.” Another veteran noted that during that time, the collision estimating guides were competing for market share. Each one tried to outdo the other by building in repair times here and there and then showing the

prospective shop how much more time and money they could make with their brand of estimating guide. It was not until the insurance companies started writing their own estimates that they started noticing the differences. It was a time of what one industry veteran called the “Infamous Two-Man Shop.” Young technicians wanting to strike out on their own, either because they didn’t like the work they were being handed or because they thought they would make a bundle of money as an owner. They would leave their shop, rent a small garage and start their own business. It wouldn’t be long before they’d realize they needed some help and would recruit a buddy from their former shop. They then would go to all the old shop’s insurance contacts, tell them they would do the work a little cheaper, and the cars would start to

MAY 2019 AUTOBODY NEWS / autobodynews.com

roll in. Unfortunately, in those days before job-costing, the new shop never knew if they were profiting or not. Many simply went bankrupt and closed the doors. The 1970s saw the seeds sown for what would become the model for 21st century collision shops. Before the days of ABRA, CARSTAR and Caliber, Pittsburgh industrialist Ward Wickwire signed the first franchising agreement to open an American Way International body shop in Pittsburgh, an early model of the MSO concept. AWI never became a household name and was never nationally recognized, but this period would give rise to those who were. In 1972, Anthony A. Martino opened his first auto painting shop in Wilmington, DE. Using the first letter of his last name and first letter of his first and middle name, he called his new business Maaco Auto

Painting. He soon opened additional shops that provided a good overall paint job at a reasonable cost. By1977, he had almost 200 locations. Innovative ideas were popping up all over the place. Early 1972 saw a short trade magazine article suggesting that a car should be totally torn-down in order to write a complete and correct damage estimate. This was perhaps the first time this was mentioned in a trade magazine, indicating this might have been a “novel” concept. Industry associations were growing in numbers, strength, and savvy. State and regional associations were popping up all over the place and joining with national associations. The industry’s voice was getting louder. This was spurred by the growth in number and popularity of industry trade magazines. It was be-

coming easier for a shop owner to see what was going on outside his four walls and easier for them to take an active part in the industry. Traditional part jobbers had been carrying paint and related collision repair products since the 1930s. By 1970, of the roughly 25,000 full line automotive parts jobbers in the U.S., about 15,000 carried paint and body supplies to one extent or another, but only 2,000 or so actually promoted the sales of these items. This left the door wide open through the 1960s and early 1970s for a slightly different business model—that of the paint, body and equipment (PBE) jobber. The Automotive Service Industry Association (ASIA) defined a PBE jobber as a store for whom at least 70 percent of their sales come from paint, abrasives, tape, collision repair equipment and the like sold to body shops. At a 1972 industry show, ASIA recognized the PBE jobber as an official industry entity. Automotive technology continued to move forward—although it was not always a pretty sight. In 1973, the 5-mph bumper was intro-

duced. Still made of chromed steel, the bumper was supported on the frame by shock-absorber units allowing the bumper to move in and out. In 1974, similar bumpers became standard equipment for the rear of the car. The bumpers were described as “monstrosities” and appear to have been added to the car as an afterthought because essentially, they were. In the 1970s, vehicle engines and transmissions were more durable but lacked today’s e-coat to prevent rusting. An otherwise well-running car would rust out in 3–4 years, especially in areas where road crews used salt and sand on snow-covered roads. Salt, water, and sand, combined with exposed sheet metal all contributed to some serious rust problems. Fixing rust holes correctly and legitimately was time-consuming and expensive … and not covered by insurance. In many cases, the entire panel had to be replaced, including rocker panel rear quarters or front fenders. And even when panels were replaced, rust would break through someplace else. It was like a cancer.

Used-car dealers found themselves with lots full of otherwise good used cars—except for the rust holes—that they wanted fixed as quickly and cheaply as possible. Left to their own devices and being paid on a “percar” basis, creative body technicians found quick and easy, albeit non-permanent, ways to fill the holes and make the car look good—and just long enough to get it sold. This led to some sore customers, and a black eye for the used car industry and body repair industry. Paint technology started to change in the 1970s as well. Paints became more durable but had some unforeseen consequences. In the early 1970s, DuPont introduced its Centari line of paint—a polyurethane-based product that required an isocyanate hardener. Little thought was given at the time to safety measures and little was known about the effects of isocyanates. Suddenly, painters began experiencing asthma symptoms. Many ended up in their local hospital emergency room. Depending on their length of exposure or how they were exposed to it—either by inhaling it or being exposed by touch—the ill ef-

fects could have been short-lived or permanent. The ill effects of shooting Centari and paints with similar chemical properties were not the only hazards body shops faced in the ‘70s. In the days before we as a country and as a culture grew environmentally conscious, body shops had some horrendous ways of disposing of highly toxic waste products. Many times, leftover paint was stored for a while until it gelled, then was thrown in the trash. Other times, it would be thrown on waste paper and burned. Some shops threw all waste products, including paint, thinner and primer, into a 55-gallon drum. When the drum was full, it was dumped off in some remote area—sometimes with the drum and all, or sometimes just the contents were dumped and the drum was reused. Some poured the barrel’s contents on the gravel parts of their lots or driveways to keep the dust down. The Resource Conservation and Recovery Act (RCRA), enacted in 1976, was the principal federal law in the United States governing the disposal of solid See The 1970s, Page 36

autobodynews.com / MAY 2019 AUTOBODY NEWS

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.

Industry Misses 2 Important Aspects of John Eagle Collision Case In the 18 months since a Texas couple was awarded $42 million by a jury who found a dealership body shop had improperly repaired the vehicle in which the couple were injured in a subsequent accident, I’ve probably been asked about the case at least 20 times a week. Even now, I continue to get phone calls, emails and questions about it from those in my classes. Based on those exchanges, I think there are two important things related to what happened that a lot of people seem to miss. The first is a fundamental difference between a warranty and a liability. We all understand a warranty, defined as the “written guarantee issued to a purchaser.” Let’s say you repair Suzy Smith’s car, and she later sells that car to Joe Brown. Joe later notices the paint is starting to flake off the bumper, and he brings the car back to your shop. Under the terms of the warranties I see most shops providing to their customers, you can kick Joe to the curb. Most shop warranties say the work is guaranteed only to the customer who had the work done at the shop. It doesn’t transfer to any subsequent owners of

that vehicle. But liability, defined as “the state of being responsible for something,” is different. I will preface this by saying I’m not an attorney, but from my understanding, if you repaired Suzy Smith’s car and didn’t do something related to the safety of that vehicle, you could be held liable even if it’s Joe Brown, as a subsequent owner of that car, who is injured in the vehicle based in whole or in part on the repairs you did. That’s essentially what happened in the Texas lawsuit. Matthew and Marcia Seebachan purchased a used Honda Fit that had previously been repaired by the John Eagle Collision Center. If the Seebachans had decided the paint didn’t match and took it back to the dealership, John Eagle wouldn’t have to warranty the work, presuming the shop’s warranty extends only to the owner who had the work done to the car. But the shop was still found liable for the couple’s injuries in the subsequent accident. The jury ruled the repairs made to the vehicle before the Seebachans owned it weren’t performed correctly. The replacement roof the dealership had put on the vehicle

Continued from Page 35

gust 1971 issue of Automotive Service and Body News magazine noted that shop owners had to comply with federal inspectors who were able to stop in and inspect their shop at any time with fines for safety infractions reaching as high as $10,000. ASBN suggested 10 areas where inspectors were liable to look for safety hazards. The article also noted that the federal government was poised to “plague shop owners.” Shop owners now had something else to keep them awake at night.

The 1970s

waste and hazardous waste, which essentially ended shops’ practices of indiscriminant waste-dumping. And if managing hazardous waste wasn’t enough to give shop owners a headache, OSHA entered the industry lexicon in the early ‘70s as well. The Occupational Safety and Health Act of 1970 took effect April 28, 1971. An article in the Au-

was bonded rather than welded to the vehicle as called for by Honda—and the roof’s separation in the Seebachan’s collision, the jury found, led to the degree of their injuries. To my way of thinking, that means you’re still potentially liable for the repairs you made to a vehicle eight years ago, even if that vehicle has been resold two, three or 10 times since. I see too many shops confusing “warranty” and “liability.” I haven’t studied all the documents and transcripts from the case, but the second key point I think a lot of people miss is this: If you tout your shop as being certified by certain automakers, yet you fail to follow the repair procedures called for by those automakers, that could be construed as negligence, which is defined as “failure to take proper care in doing something.” Again, I’m not an attorney. But

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the legal argument that could be made goes something like this: As a car owner, I saw on your website, in your advertisement and on your signage at your shop that you’re certified by ABC Automaker. That tells me you are going to do everything ABC Automaker says to do in repairing one of their vehicles. If you deviate from that, that’s negligence on your part because you portrayed yourself as being certified and knowledgeable in repairing ABC Automaker’s vehicles. I think that could conceivably extend beyond just automaker certifications. Think about other ways you portray yourself as a qualified expert, whether it be the I-CAR Gold Class designation, or training or certifications from other organizations. Warranty, liability and negligence are three terms this industry really needs to understand.

John Hiester Chevrolet www.hiesterautomotive.com

3100 N. Main Street Fuquay-Varina, NC 27526

autobodynews.com / MAY 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.

Panel Discusses Strategies for Shops Dealing with ADAS with Sublet Vendors, Insurers Just getting a basic invoice from a dealership or other vendor for any advanced driver assistance systems (ADAS) calibration work that your shop sublets to those companies may not be adequate evidence that the work was done fully and correctly, two speakers said at the Collision Industry Conference (CIC) earlier this year. “Remember, the liability still remains with you since you chose that third-party,” Roger Cada of Accountable Estimating said. “Some third-party providers don’t do all the things you think they should be doing. So how do you keep records to show that it was done correctly?” Jake Rodenroth of asTech noted that many of these calibrations are new procedures for everybody: dealerships, glass providers, mechanical repair shops—even companies such as his that are establishing centers specifically to conduct calibrations.

Jake Rodenroth of asTech said shops shouldn’t presume dealerships or other sublet providers necessarily know all the necessary steps of ADAS calibrations

“Don’t assume that they did it right,” Rodenroth said. “You really need to audit them. To do that, you need to understand the requirements yourself. Just handing if off to a sublet is not good enough.” Those requirements for calibration of the blind-spot monitoring system on a 2018 Honda CR-V, for example, include ensuring the suspension has not been modified, that the tire size and pressure are correct, that the gas tank is full, that all excess cargo is removed, and that there are no objects on the instrument panel, 38

hood or windshield. Rodenroth suggests getting documentation that tire pressures were checked, getting a receipt for fuel that was purchased, and documenting vehicle mileage before and after calibration to help ensure required test drives were done. “If you’re using dealers or [any sublet provider], go there and take photos for the claim file of the vehicle actually set up with the targets,” Rodenroth advised. “That helps document and justify that it was done.” One panel discussion at the conference revolved around the relationship between insurers and repairers when it comes to the increasing technology of vehicles. There have been efforts in at least six states this year to enact legislation requiring shops to follow OEM repair procedures and for insurance companies to pay those shops accordingly. But one repairer said that while such mandates could be helpful, they won’t resolve all shop-insurer disputes, in part because in some instances those OEM procedures are somewhat vague. “We need some more help from the manufacturers with some clarity,” said Darrell Amberson of LaMettry’s Collision in Minnesota. “Getting into the calibrations, I’m seeing some wording, for example, that says calibrate a radar system if there’s an impact in the surrounding area. What is the ‘surrounding area’? Is that within a foot, 2 feet, 3 feet? We need some help on that.” He said other procedures call for a calibration of a particular system “in the event of a collision,” without further defining if that means any type of collision, no matter how minor. “What is a collision? I find myself often having discussions with insurance companies, testing us on that,” Amberson said. “At what severity do we do this step?” Panelists at CIC were asked how a shop can address an insurer who says that decisions about whether they pay for vehicle scanning are made on a “case-by-case basis,” given that au-

MAY 2019 AUTOBODY NEWS / autobodynews.com

tomaker repair procedures call for such scanning on virtually every vehicle shops are repairing. Amberson said that when he presses someone making

Darrell Amberson of LaMettry’s Collision in Minnesota said he addresses insurers saying they pay for scanning on a case-by-case basis by asking for their criteria in making those decisions

that statement, they “have a hard time articulating the standards.” “I ask them, ‘What’s the criteria? When do you pay for it and when do

you not?’ Often, they struggle to answer that,” Amberson said. “For us to come up with standards on our own, by our own assumptions, frankly just doesn’t make sense. When it comes to electronics, the only way to look at a system is through a scan tool. So under what circumstances do I look at it and when do I not? They struggle to answer that. So for our company, we have the philosophy that whether we get paid for it or not, we do a pre- and post-repair scan on every car. If nothing else, I can sleep at night by doing that.” Jason Bartanen, director of industry technical relations for I-CAR, compared scanning to 3-dimensional measuring, saying “it’s impossible to analyze all the damage on a vehicle” without it. Rodenroth said he tells shops to put the automaker position stateSee Dealing with ADAS, Page 58

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Day Job/Night Job with Ed Attanasio

From Rock Star to Crash Star

owner of 1Collision Network—but they nearly did. It all began when Keller saw the Beatles perform on “The Ed Sullivan Show” when he was 10 years old. “I knew right then that I wanted to be a musician and specifically a drummer,” he said. “I was immediately drawn to Ringo and shortly after that, I began drumming along to songs on the radio on an improvised drum set that consisted of two upside-down wastebaskets and a pair of rulers. I cut out a picture of a real drum set from a JCPenney catalog and taped it to the bathroom mirror, and I guess my parents got the hint because I The Baxters consisted of (from left) drummer Jim Keller, got an $89.95 three-piece lead guitarist Martin Krohne and bass player Greg Scott drum set for Christmas.” Keller learned how to monetize Things didn’t go exactly that way for Jim Keller, collision lifer and his love for the drums and entered In the song “Takin’ Care of Business” by Bachman-Turner Overdrive, the band offers their prescribed formula for rock star success: “Get a secondhand guitar, chances are you’ll go far if you get in with the right bunch of fellows.”

MAY 2019 AUTOBODY NEWS / autobodynews.com

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

the collision repair industry at the before joining a few local rock bands and playing cover songs by Jimi same time. “At 12, I was making $25 cash Hendrix and Savoy Brown. “We played a lot of blues-influon Saturday nights performing at weddings with a polka band,” he enced music and acid rock,” he said. said. “I was also working at my “A few years later, a friend of mine friend’s father’s body shop, sanding encouraged me to audition for a band called In a Hot Coma, and I cars, picking up supplies on got the gig.” my bike and driving cusGood things happened tomers home, even though I quickly for In a Hot Coma. obviously didn’t have my The band was soon asked to license yet. I made $40– open up for Cheap Trick right $100 weekly there, which before their debut album on made me the richest kid in Epic was released, Keller town.” Today, Keller is said. After taking some forthe owner of the After several years, mal lessons, Keller started 1Collision Network. The network has Keller left In a Hot Coma playing percussion for his 43 body shops and played in local bands, high school’s band, includand counting including a short stint playing marching band, jazz ening with Howie Epstein, who later semble and orchestra. To become a better drummer, became the longtime bass player for Keller practiced his drums for 90 Tom Petty and the Heartbreakers, as minutes in his basement every day well as The Shivvers, a popular Mil-

waukee power pop band. He then joined a Rockford-based pop group called The Names until he joined The Baxters with Martin Krohne on guitar and Greg Scott on bass. After capturing second place at a State Fair Battle Of The Bands competition in West Allis, WI, The Baxters made their debut at a popular

later, “Don’t Run Away” appeared on a CD featuring iconic Milwaukee band Great Lost Brew Wave, while “What Ya Gonna Do” made it onto a 2001 CD set called History in 3 Chords. In addition to Ringo Starr, Keller said, several other legendary drummers have influenced him over

punk club, Zak’s, Milwaukee’s first punk club, on New Year’s Eve. For the next two years, the trio wrote original songs and played shows in cities such as Rockford, Chicago, Milwaukee and Madison. With 200 original songs in their repertoire, The Baxters came up with two tunes that got some attention in 1980: “What Ya Gonna Do” and “Don’t Run Away,” both of which can be heard on YouTube. The band recorded the songs at Star Studios on National Avenue but couldn’t put together enough money to release a record. Seventeen years

the years, such as John Bonham (Led Zeppelin); Keith Moon (The Who) and Bun E. Carlos (Cheap Trick). Keller got to know Carlos when his band opened for Cheap Trick and helped him in one unique way. “I would use the same drumsticks over and over and beat them up because they’re not inexpensive,” he said. “One day, I came offstage and Bun E. saw that my sticks were all nicked up, so he got one of his roadies to give me a large box full of his used sticks. I used them for the next two years and will never forget Bun E. for that!”

“At 12, I was making $25 cash on Saturday nights performing at weddings with a polka band,” — Jim Keller

The Baxters broke up at the end of 1981. Keller opened a body shop and put his drumsticks down, while his two bandmates formed a top 40 band called Tommy Gunn. “It was the right time for me to give up my rock star dreams and pursue a career, as well as get married and have some kids,” he said.

Keller now plays the guitar and piano to relax and unwind

In 1985, Keller purchased his second shop and subsequently merged them with a large MSO and became a partner in a business that eventually operated 27 shops. He then got involved with Crash 1 and in 2013, it became 1Collision, which was headquartered in Milwaukee, WI. 1Collision has grown from eight

shops to 43, and Keller is signing up new ones all the time, he said. “We’ve proven that we can help our network shops by maintaining excellent relationships with our insurance company partners, processing claims quickly, using the latest claim processing and OEM repair technologies and processes by the implementation of our SMART Performance System. We also enable them to succeed by utilizing our marketing, business strategy, HR & recruiting, equipment and material purchasing programs, financial management programs, and utilizing O.E. parts. We also offer consumers a written, limited lifetime warranty,” he said. Although he is now a successful businessman who is well-known in the collision repair industry, Keller looks back fondly at his years as a rocker and still loves playing music, he said. “I play the guitar and the piano to relax and unwind, but not the drums anymore,” he said. “The Baxters never hit big, but it was a great experience, and I’m happy to know that people still listen to our songs almost 40 years later.”

autobodynews.com / MAY 2019 AUTOBODY NEWS

Truck Topics with Gary Ledoux

Truck Topics 1: Heavy Duty Events Address Collision Issues People have been repairing collisiondamaged trucks since August Fruehauf stuck a trailer behind a Ford Model T in 1914 to create the first semi-trailer rig. Oddly, it is only within the last year or so—over 100 years later— that the collision repair side of the trucking business started to coalesce as an industry. The industry’s development was recently accelerated by two key events.

TMC Event The Technology and Maintenance Council, better known simply as the TMC, has been around since 1956. It brings fleets, manufacturers, suppliers and other industry stakeholders together to solve the industry’s toughest

(l to r) Brad Keiterand and Nick Notte

problems regarding transportation equipment. The TMC is an integral part of the American Trucking Association, formed in 1933 to represent the nation’s motor carrier industry. The TMC’s latest event, dubbed “Beyond the Frontier of Maintenance,” was held at the Georgia World Congress Center in Atlanta from March 18–21. The main focus of the TMC has traditionally been fleet maintenance and mechanical repair, although a year ago the organization started looking at the complexities and dynamics of HD collision repair. Repair Roadmap Everyone knows that it’s bad enough 42

to be in a collision with the family car, even if there aren’t any injuries. But when a commercial truck is involved in a collision, there is a lot more to consider. This is explored in the “Repair Procedures Roadmap” initiative chaired by Joey Fassett, president of Al’s Auto and Truck Repair in Exeter, NH. The Roadmap begins with “preplanning” for an accident along a truck’s usual route. (Trucks are rarely near their home port when an accident occurs.) It also covers how to deal with damaged freight or preserving freight, how to preserve and deal with accident evidence, and more.

Collision Repair Guidelines Unlike the auto industry, the HD truck OE manufacturers do not provide collision repair procedures and guidelines, or even position statements on collision repair, for several reasons. The HD industry is then left to its own devices to create its own repair procedures based on best practices, accepted protocols and what information they can glean from the manufacturers of a truck’s component parts. Chris Sterwerf of Fairfield Auto and Truck Service in Fairfield, OH, is the chairman of TMC’s Heavy Duty Collision Repair Guideline Task Force and is leading the charge to create HD collision repair procedures. Currently, exploration and guidelines for frame repair and refinishing are on the table. During a break-out meeting at the TMC event, Sterwerf took several other suggestions for areas to explore, including how and when to check other chassis components such as steering mechanisms. HD Repair Forum Event On April 2 and 3, the second annual HD Repair Forum was held in Fort Worth, TX, drawing an enthusiastic crowd of about 250 HD repairers, shop owners, consultants, technical advisors and OE executives. It was founded in 2018 by Brian Nessen, perhaps best known for his work with the Stone Fort Group managing

MAY 2019 AUTOBODY NEWS / autobodynews.com

the auto collision industry’s NACE show, and long-time collision industry veteran Dan Risley, known for his work with Automotive Service Association and the Society of Collision Repair Specialists.

lision repair industry. Among those featured on the truck OE side were Bill Kahn, applications engineer for Peterbilt Motors; T.J. O’Hanlon, director of private label brands for Navistar; and Gregory Treinen, advanced technology marketing manager for Daimler representing Freightliner and Western Star Trucks. Also featured were presentations from Bob Morris of the Gas Technology Institute and Wally Dubno, sales managers for Clean Energy Fuels, who talked about the future of CNG and LNG as fuels for heavy trucks and some of the things about which repairers need to be cautious. Among the other presenters were two representatives from 3M who provided highly detailed presentations on practical repair of HD trucks, a representative from Chief who addressed HD truck damage analysis,

(l to r) Brian Nessen presents John Spoto with the Service Provider of the Year award

The Forum featured a wide array of speakers from several different disciplines within the truck and auto col-

See HD Events, Page 47

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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.

Tips for Busy Body Shops with Stacey Phillips

Best Practices When Interpreting & Documenting Scan Data, Trouble Codes & Calibrations Today’s vehicles and those manufactured over the last two decades contain a wealth of electronic information that can help shops effectively and efficiently perform a proper repair, according to Chuck Olsen, executive director of AirPro Diagnostics. “If we don’t look for all of the clues there are within the system, it will make the job much more difficult than it has to be,” he said. As a result, Olsen said, a capable scan tool is a critical component of strategy-based diagnostics. “They give order and method on how we diagnose, service and reprogram vehicle control modules on these increasingly complex inter-related systems to restore vehicles to sound operation condition,” he explained. With more than 40 years of experience in the automotive repair and technology industry, Olsen recently shared insights on interpreting and documenting scan data, trouble codes and calibrations during a CIECAst webinar. The following is a summary from the presentation:

scan tool data definitive or infallible. Understanding and being able to fully employ the functionality available to us with modern and emerging scan

Q: A:

What is essential to know about scan tools today?

For many in the industry, there’s a certain mystique in relation to using a scan tool and what they can do. Scan tools are engineered and designed to be directly connected to the vehicle utilizing the most current diagnostic software available. Depending on the tool, it might only read out diagnostic trouble codes (DLCs) or can have additional capabilities such as calibrating or programming modules. Most scan tools require a pass-through device with a subscription to an OEM provider to fully reprogram the modules. Scan tools have many functions and ways they can be used, but the most common is doing a pre-scan, post-scan or what is known as a health check of a car. This is always the starting point. By no means are scan tools and 44

you know what your tools can and cannot do. In certain instances, some functionality may have to be given up in order to achieve a lower price point or you’ll need to access the dealer tool. Be honest with yourself about what your shop cannot do and be prepared to sublet or decline the job if it’s the best option. Remember that honesty still resonates as a reason your customers do business with you.

What needs to be analyzed when you are going through a strategy-based diagnostics process?

First, it’s important to visually inspect the car and determine what is broken, damaged, leaking, etc. Next, look at the symptoms of what is not working properly, such as the malfunction indicator lamps or system functional checks. The third step is to reference the service information. This

Sean P at AirPro Diagnostics’ Calibration & Testing Center requests scans directly from his cell phone to complete a calibration on a 2019 Toyota

includes the inspection requirements, repair procedures, testing procedures, option content and calibration requirements. Finally, it’s time to check the electronic data from the vehicle. This includes using a capable scan tool to determine the DTCs, live data stream values and calibration verification.

What is important to know about accessing the raw electronic data from the scan tool?

The raw data is managed by several different specifications and can be characterized as languages that the vehicle must adhere to in order to communicate. You need a tool that can speak these languages. The software adopted by all OEMs allows the independent aftermarket the ability to reprogram, diagnose and access data from the electronic control units (ECUs) without the need for

tools are acquired skills. It’s important that our knowledge and skills keep pace with technology changes and the associated scan tool functionality. Can you share some of the differences between an aftermarket and OEM scan tool?

I’m often asked this question. Aftermarket top tier scan tools are now competitive with OEM dealer scan tools; however, they are not exactly the same. I’m not an advocate of one over the other. It’s necessary to understand their capabilities and the strengths and weaknesses of each. There is no one aftermarket or OEM scan tool that can do everything on all vehicles. The key is in the mix of vehicles that you are repairing or servicing. You’ll want to look at the brands your shop specializes in, if any, and then use the correct tool or service for the job at hand. There are certain functions, procedures and OEM certification requirements that will dictate when OEM scan tool applications are your only option. The one caveat is to make sure

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a dealer-only tool. The OEMs provide the scan tool application programs available for independent purchase with user license agreements.

Q: A:

Why should a shop always conduct research?

For every single repair, research is required. That can be sourced from the OEM as well as third-party suppliers that purchase the service information and repost it. There will be times you’ll have to go to the OEM direct subscription to obtain the latest updates. You must review every repair and procedure performed on a vehicle to identify calibration or programming procedures that will need to be performed with a scan tool and also to determine that the scan tool being used is capable of the procedure. Part of this is knowing that most times, scanning a car is not going to alert you that a calibration is needed or must be performed. This is almost always found in the service information. The only exception is if a component has been replaced that has never been calibrated. In this instance, we’ll often

see a code set for a calibration requirement, but you can’t count on it. It’s imperative that you review the repair procedures and find out if a calibration needs to be done. You’ll

Technicians test the calibrations on a 2019 Toyota at the Calibration & Testing Center

then need a capable scan tool and, in many cases, additional equipment such as targets or seat weights to execute that calibration.

Is it common for a scan tool to miss a DTC?

With the complexity of today’s vehicles, there is always the chance for a scan tool to miss control units or DTCs during a general health check. There are two distinct reasons for this. First is that the non-reporting control units can be filtered out by some scan tools. Although it is rare, you must be aware of it when using a scan tool independently or relying on a service. This is normally caused by an impact at or near the area of the control unit, damaged wiring harness, connector damage, blown fuses or poor ground connections. Another reason is due to a busy automotive network or the control unit returning information slowly because of a large amount of data stored in that module. Modules have timing parameters that must be adhered to, and at times while they are returning large trouble code records, that request can time out and the scan tool will move on and possibly miss something. This is when it is necessary to check systems individually on a vehicle or go back and rerun a scan

multiple times to make sure everything was received. Both OEM and aftermarket scan tools can be subject to this and is why there are so many update requirements with scan tools.

Why should repairers be aware of the build list in the software’s internal database?

When you are reading the scan tool data, be aware that the wrong options can sometimes be reported in the scan tool database. Where we usually see this happen is when there are added accessories or option modifications done by the dealership or the aftermarket. An example is if a customer wants foglamps installed at the dealership; these will not be included in the vehicle option content list and may or may not be accessible by a scan tool. As a result, you must do an inspection and pay close attention to what optional equipment is included.

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DTCs are just the starting point of drilling down the problem(s) on a vehicle. Each system is made up of a group of components, and it’s important to be aware of them during the diagnosis. We call it Component Level Scanning (CLS). This is much different than just reading trouble codes. With CLS, we get as close to the raw or live data as possible.

Once the car has been repaired, it’s crucial to document everything. This includes what we started with and what we found, what parts we replaced and/or repaired, as well as removed and reinstalled. Also, document what the OEM service information says, the diagnostic procedures and calibrations performed, the functional quality control test results, and even what we did not do—the non-related issues on a vehicle. Documentation helps protects the customer and your business.

What steps should my business take when it comes to privacy?

Chris C completes a scan on a Honda using the HDS software at the AirPro Diagnostics office

CLS gives us a complete picture of the health of the system. In fact, we can determine faults from data streams before they are reported as a DTC by the control unit.

What should be included in the documentation?

A customer needs to know you are going to be accessing data from their vehicle. My advice when it comes to privacy is to incorporate a statement for the customer into your work authorization form and let him or her know you are going to be accessing all types of data to repair the car properly and/or to make decisions on insurance, warranty or customers’ responsibilities.

Continued from Page 42

HD Events

and a representative from technology company Diesel Laptops who talked about HD truck scanning. In addition, about 25 vendors, including Axalta and PPG, featured table-top displays providing attendees a chance to talk directly with company representatives. Awards Presented During the event, three awards were presented. Nick Notte of I-CAR presented Brad Keiter, manager for Penske Collision of Norcross, GA, with a plaque designating him as the very first I-CAR Gold Class HD truck shop. This designation is now available to any HD truck shop that qualifies. Nessen and Risley presented two additional awards. John Spoto,

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national heavy duty truck commercial fleet manager for 3M, was presented with the Service Provider of the Year award for his part in creating a number of training classes for 3M and for his tireless help in the planning and creation of the HD Repair Forum. Additionally, Nessen and Risley awarded in absentia the Repairer of the Year award to Sterwerf for his work as the chairman of TMC’s Heavy Duty Collision Repair Guideline Task Force, his industry position as a recognized leader in the HD collision repair industry, and for his work in helping create and promote the HD Repair Forum. Based on the success of this year’s event and positive feedback from attendees, speakers and exhibitors, Nessen and Risley are already planning next year’s event, although exact dates and location are not yet available.

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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’s ‘Washington Watch’ Webinar Features Industry Association Leaders On March 20, the Automotive Service Association (ASA) hosted “Washington Watch with Robert L. Redding Jr.” as part of its Webinar Wednesdays series. Redding, ASA’s Washington, D.C., representative, was joined by Aaron Schulenburg, executive director of the Society of Collision Repair Specialists (SCRS); Roy Littlefield IV, director of government affairs for the Tire Industry Association (TIA); and Tom Tucker, director of state government affairs for the Auto Care Association (ACA). Tony Molla, ASA vice president of industry relations, welcomed attendees to the update on the 2019 state legislative sessions and promised they would learn about legislation impacting shop owners, the legislative agenda for 2019 and what’s of interest to the automotive industry. Redding’s first topic was OEM repair procedures. He explained that ASA and industry partners, including SCRS, kicked off legislation related to OEM repair procedures in August of 2018. He noted that multiple states are building support for this issue for 2020 and stressed that interest in the issue was somewhat stimulated by the 2017 Seebachan/John Eagle Collision case in Texas. However, interest had risen long before then. The OEM repair procedures draft states: “Any insurer licensed to issue policies of automobile insurance providing bodily injury, property damage liability, comprehensive or collision coverages shall not condition payment to any person conducting a collision repair upon the utilization of any repair procedure or specification if that repair procedure or specification is in conflict with the repair procedures and specifications for that vehicle as recommended by the original equipment manufacturer of such vehicle. If a repair procedure or specification from an original equipment manufacturer includes a directive to conduct a scan of vehicle electronic systems before or after the commencement of repairs, such directive shall be considered as a re-

quired part of the repair procedure.” Redding explained, “The draft language is meant to be a template for various states since this issue should be handled at the state, not federal, level. The bill language is intentionally very narrow and focuses on OEM

repair procedures only, with no discussion of parts or the mandated use of OE parts in the statement.” In 2018, legislation regarding OEM repair procedures was introduced in three states. Indiana Senate Bill 164 died in conference, and Illinois House Bill 4926 was not approved. Rhode Island Senate Bill 2679 was signed into law but is quite stringent and applies only to OE repair procedures on OE parts. Numerous bills on this issue have been introduced so far in 2019, including Connecticut House Bill 7266, New Hampshire House Bill 664, Minnesota House File 2234, Illinois Senate Bill 2104, Nevada Assembly Bill 173, Montana House Bill 252, and Texas House Bill 1348. “Interest in OEM repair procedures is not a new phenomenon, but this subject has generated a lot of attention in the past few years due to the increasing complexity of modern vehicles,” Schulenburg said. “SCRS and ASA worked collectively with partner groups in 2011 to address this topic. Collision repairers recognize OEM repair procedures as the documents for repair, but we need to be able to identify in a way that repairers can point to. Our groups collectively issued a statement that we recognize published repair procedures from OEMs as the official recognized standard for collision repair. “I think it will only become a bigger issue, especially as that technology increases and vehicles become more complex. Consumers want the

MAY 2019 AUTOBODY NEWS / autobodynews.com

technology, a lot of which is safetyrelated, and their interest drives the demand for it, which will continue to perpetuate the issue. It’s important to point out that the insurance industry is also pushing for technology. While the collision industry feels resistance to the necessary steps to restore functionality on the claims settlement side, the insurance industry is very supportive, if not driving, the development of these technologies to increase highway safety and reduce frequency.” Redding agreed that the interest in OEM repair procedures hasn’t lessened and reiterated the question he has heard from others about why it isn’t happening more quickly. Comparing the 2018 and 2019 bills, Schulenburg emphasized the importance of industry organizations documenting what is recognized as the industry’s standards and being the

voice of the industry when necessary. He noted, “In 2019, it’s important for the proposed language to be rather narrow and focused. When we see it coupled with other industry issues, such as claims practices, rates or parts, it opens the door for opposition that may not enter into the conversation if we were just focused on procedures. Disregarding documented procedures opens the industry to unnecessary liabilities, so it’s much more beneficial to propose narrow, focused legislation.” Schulenburg agreed that this has been the most pressing issue he has seen among SCRS members for quite some time now. “If you look at how frequently this conversation comes up, there’s no doubt that it’s one of the top issues our members face today,” he said. “Shops are challenged by the desire to perform a proper repair, and

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it impacts them on a daily basis, increasingly as the pace of technology advances. The largest challenge is that even regulatory bodies responsible for the insurance industry don’t have firm language guiding their responsibilities; there’s a general lack of understanding from regulators on what role procedures play in safety and proper repairs. Consumers deserve support from the industry and from their elected officials to ensure they receive a safe repair, and that requires us to put some language around these requirements so claims are settled in accordance with those specifications as well.” Redding then provided a brief history lesson on state vehicle safety inspections. He explained that federal law in the 1970s mandated states have some type of safety program to participate in federal programs. However, after Congress revoked that mandate, what started as more than 30 state vehicle safety programs was eventually reduced to just 15 state programs. Currently, the only states with vehicle safety inspection programs in place are Hawaii, Louisiana, Maine, Massachusetts, Maryland, Missouri, New Hampshire, North Carolina, New York, Pennsylvania, Rhode Island, Texas, Virginia, Vermont and West Virginia. Redding stated, “We are proud of these remaining programs and want to defend them. They are regularly attacked in state legislatures, and concerns have already been raised this year due to bills introduced to eliminate or significantly alter these programs.” Those bills include Missouri House Bill 451, Texas House Bill 3665, Hawaii House Bill 85, and Virginia House Bill 2068. Missouri House Bill 451 would repeal the requirement that all motor vehicles must obtain an inspection before the vehicle may be licensed. ASA, ACA and TIA all opposed the bill, stressing that periodic vehicle safety inspection programs help protect property and lives. “The Missouri bill is a mirror image of what was presented last year. We fought it in 2018, and the bill died in legislature, but each year, these bills get a little further. We’ve been banning together to stop the Missouri bill, but there are others,” Redding said. 50

Redding introduced Littlefield and Tucker, who expressed concerns with states trying to take safety programs away. Tucker stated, “ACA strongly believes in safety programs and regular vehicle maintenance and care. Vehicles are becoming more technologically sophisticated. My car affects your safety, and your car affects my safety, so if a car isn’t adequately

there was no good data to prove that the safety inspections save lives, but that’s because when there’s an accident, the first priority is getting the vehicle off the road so traffic can move. Public safety officials aren’t trained to look at the causes of these accidents. States aren’t required to report traffic accidents into the federal database unless there’s a fatality involved, so a lot of good data goes un-

repaired or inspected, we are all in danger. Every vehicle on the road should meet minimum safety standards, and that’s why these programs are so important. We need to rethink our strategies and become more proactive in the states where these programs are being attacked.” Discussing third-party evidence of how inspection programs impact vehicle safety, the group referenced the University of Texas – Austin study, which looked at economics and safety and affirmed that inspection programs save lives and enhance safety. Tucker pointed out, “You can’t get any better evidence than that. A safety inspection in Texas costs just $9, which is a small price to pay to ensure all vehicles on our roads are safe. Pennsylvania and Missouri also published reports that validate these findings. If we have three groundbreaking safety inspection studies that all say the same thing, the real question is: Why aren’t policymakers listening to real data instead of emotional arguments?” When Redding asked why we see such passion to eliminate these programs from some policymakers, Tucker suggested, “Most policymakers really try to be responsive to the needs of their constituents, so if a constituent brings a concern, the elected officials often try to pursue legislation to fix it, but that’s not always the best solution. “Also, we were missing effective data until the University of Texas issued their report last year. Opponents of the programs have often said

reported, leaving policymakers to believe the inspection programs are ineffective. We need to do a better job of educating elected officials with good data that demonstrates why these programs are effective.” Redding, Tucker and Littlefield discussed the need to get more people involved. Littlefield suggested, “Maybe it’s time to reunite and try to make a

“Interest in OEM repair procedures is not a new phenomenon, but this subject has generated a lot of attention in the past few years due to the increasing complexity of modern vehicles,” — Aaron Schulenburg

MAY 2019 AUTOBODY NEWS / autobodynews.com

run for it at the federal level. If we can change some minds in Washington, maybe we can work from the top down.” Tucker added, “Safety is the one thing that brings us all together.” The webinar concluded with a Q and A session, during which Schulenburg noted, “It’s important for the industry, regardless of the issue, to have collaboration. Consumers and the industry deserve a concerted effort to fix these problems.” On April 17, ASA will host its next Webinar Wednesday, titled “Increase Sales and Your Customer Value Proposition with Financing” and presented by Scott Schwalm, assistant vice president, relationship management for Synchrony Car Care. On April 24, ASE campus administrator Dave Capper will present “609 Certification” for technicians. ASA’s May 15th webinar, “Stop Reacting and Start Succeeding,” is intended for shop management and will be presented by Rick White of 180 Biz Solutions. For more information on ASA, visit asashop.org.

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Continued from Cover

New Car Technology

the market in 1979, when Chrysler introduced its Lean-Burn system in the K car (Aries, Reliant, LeBaron) An early computerized spark-advance control system consisted of three parts: the carburetor, the spark-control computer, and a group of eight external sensors. By the early or mid-80s, GM had the Electronic Spark Control System (ESC), which was the beginning of the computer age in cars with check engine lights , followed by OBD-II and then CAN (Controller Area Network) and then the beginning of ABS (Antilock Brake Systems) and TPMS (Tire Pressure Monitoring System). I witnessed all of these generations and evolution with those systems and now we’re going through it again with ADAS (Advanced Driver-Assistance Systems).

Are more and more shops joining the diagnostics world out of choice or necessity?

The collision repair industry is now going through the same thing the mechanical repair industry went through in the ‘90s and early 2000s. When OBD-II came around, shops realized that they had to have a scanner to do anything on these cars, and when CAN hit around 2004, it became more important for body shops. The collision repair industry has done a wonderful job within the last few years of pricing out any type of technician because body shops didn’t want to spend money for diagnostic time and the equipment required. They were subletting the work and battle with the insurance companies to get paid for it, and now it’s come home to roost in the middle of their world. So, the insurance companies are starting to pay for diagnostics and the body shops are going to have to have someone on their staff that has these abilities. The early adopters are going to make more money and lead the way, while the latecomers are forced to farm stuff out. It’s killing their cycle time because the dealerships have their own work and can

keep the shop’s cars there for 1–5 days, in many cases. The insurance companies are complaining that they have to pay these costs, whether the shop is farming it out or doing it inhouse. But if you’re subletting the diagnostics to the dealership, you have to pay for that rental car for an additional week, for example. The dealer’s own work is going to be a priority, so you never really know when you’re going to get the car back. As a result, the body shops that are doing their diagnostics in-house are favored by the insurance companies while those that are jobbing it out are not.

What are some of the newer systems that shops will have to be able to repair on newer vehicles?

These carmakers are coming up with new systems and features all the time, so the shops have to stay on top of it. Audi recently announced a new system called V2I (Vehicle to Infrastructure Communication) that will display the ideal speed to drive in order to make all the green lights. It’s only currently available in 13 cities, but if it works,

I imagine it will be introduced in every major city in the U.S. Tesla is constantly developing features associated with autonomous cars; Audi has always been a front runner and Mercedes has some interesting new stuff as well. I travel around the country a lot, so I get to play with all of the new technology, especially when it comes to the self-driving and safety stuff, and I am very surprised and impressed at what KIA and Hyundai are doing. Their lane departure technology seems to be fairly advanced in comparison to others. The supercruise systems from GM and Cadillac are up there with advancements, and Ford is focusing more on the technology in their SUVs and trucks where they’ve developed a system that gives Ford truck drivers (blind spot) trailer coverage, so that the driver can look further and wider with their backup systems. The radar is in the tail light so if you back into something, it’s more than just replacing the light. Carmakers are also further developing new facial recognition systems that deal with the driver’s eyes and where they’re looking and also by monitoring the position of the

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steering wheel. The ADAS system will attempt to steer the vehicle between the lanes, but if it doesn’t detect some kind of minimum resistance from your hands on the wheel or if it detects that you’re looking down and not at the road ahead. These systems are going to alert drivers with haptic messages that will cause the steering wheel or the seats to vibrate in order to alert the driver. Some of the OEMs are also working on heart rate monitors, so we will likely see a lot of new systems leveraging that.

By 2025, will a large percentage of the costs associated with a collision repair be more involved with software calibrations as opposed to actual paint and R & I?

Absolutely. Front collision avoidance, automatic emergency braking, lane departure warning, as well as all of the cameras, sonar, radar and LiDAR are all now connected to some of the braking and wheel speed sensors, brake pressure, electronic power steering, and all of these are reporting. So, it’s the cross-

pollination of these systems because it’s not just the ADAS part that’s involved. Active ADAS means that the system is doing something rather than just warning you, and that is where I think that area will really expand considerably within the next 2–3 years. A few years ago, many shops didn’t think that diagnostics were a must, but now they realize they’re becoming more important to fix cars, right?

Diagnostics is at an all-time high with body shops because now the insurance companies are requiring them to do pre- and postscans, which means they need to own at least one scanner. In the old days, we could just walk around the car and inspect it visually to write the estimate, but today we can’t see everything. What happened was that shops were writing estimates, but then while fixing the car they found out that one sensor was bad, this wire was pinched or module is going to be reset. So, now the shop has to write a bunch of supplements, which is a pain for the body shop and the insur-

ance company, plus it lengthens that cycle time. Another problem is with a car that is near its total threshold, and then the shop finds $1,000 in additional work. Had they done the proper diagnostics, the vehicle would have been totaled, but they’re already committed. That’s why the insurance companies started insisting on getting pre- and post-scanning on each car, so that now they can write estimates for additional sensors, labor time, programming, which allows the shop to write a more complete estimate to start off. By performing diagnostics, you get a definitive view instead of speculating and take all of the what-ifs out of the equation for both parties. Any shop working on cars made within the last four years is going to need at least one individual in-house who can perform diagnostics and have at least one full-functioning scan tool, not just a code reader. That’s the end game, but how do small independent shops get there affordably? Maybe they start out using a subscription service, and once they have someone on their crew who can do the diagnostics, they invest in a scanner. That seems to be a logical path to take.

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Two bills approved by a U.S. Senate committee in late March would provide ASA members one more tool to protect their shops from cyber threats. On March 27, the U.S. Senate Committee on Small Business and Entrepreneurship held its first markup of the 116th Congress approving three bills. Two of the bills being considered, S. 771, the Small Business Cyber Training Act and S. 772, the SBA Cyber Awareness Act, were both introduced by Chairman Marco Rubio (RFlorida). ASA wants to ensure its members have the best training and resources available to protect their shops and their customers from those who would do harm. If passed, the “two bills will give small businesses the tools they need to safeguard themselves against the growing cybersecurity risks of the 21st century,” Sen. Rubio said in a news release.

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Truck Topics with Gary Ledoux

Truck Topics 2: Truck Vs. Auto Collision Repair – An Overview We see them all the time—semi trucks, trailers, buses, RVs, dump trucks and other pieces of heavy equipment wrecked in what had to be a horrendous crash. So where does this heavy equipment go for collision repair—and how different is it from repairing an auto or pick-up truck? As one would imagine, there are some vast differences given the sheer size, weight, substrates used, and construction methods of such vehicles. But there are a few things that don’t change regardless of what vehicle is being repaired or who is doing it. For example, the phrase, “This is the way we’ve been doing it for 30 years… so why change?” is something heard in both camps and something industry leaders on both sides are trying to fight through education and awareness. One of the biggest differences between Class 8 and 9 trucks (commonly known as semi tractors) is the availability of repair information for both mechanical and especially collision repair. In the auto or light truck world, (thanks to the Right to Repair initiative started in 2001), one trip to an automaker’s website will give repairers pretty much everything they need to make a safe and proper repair. On the truck side, that information may or may not exist, and even if it does exist, it is difficult to find. The truck OE will likely refer the independent shop to the component manufacturer—who may or may not be able to provide the information. Most trucks are custom-built to a customer’s specifications, making component identification (such as axles, wheels, suspension parts) challenging. John “Jack” Legler is the technical director for the Technical and Maintenance Council (TMC) of the American Trucking Association (ATA). Its mission is to develop best practices and maintenance procedures for Class 8 (semi) trucks. The 65-year-old association has always been busy, but is now even more so as it tackles the proper way to make

collision repairs with the advent of new advanced driver assist systems (ADAS) and other new technologies—such as high-strength steel. They have only been looking at the collision side of things for the last year or so and are making headway. However, as Legler puts it, “We’ve seen more changes in the trucking industry in the last 10 years than the previous 35 years.” (Sounds a lot like the auto side!) The Technical and Maintenance Council’s “S-16” study group is working with OEs and companies that supply engines, transmissions, axles, springs, electronic components and others to come up with best practices and procedures for making safe and complete repairs. Legler noted, “Unlike the auto industry where the OE provides a one-stop place for all information regarding the vehicle, repair information for a heavy truck can come from a number of different sources and in several different formats. It’s often difficult to find and when found, can be rather vague or of little help. It is fortunate that we all get along and work together within the industry. Representatives of the OEs as well as other component providers all serve on our committees and study groups.” When asked what the biggest challenge was today in the world of collision repair for heavy trucks and equipment, Legler was quick to reply with, “New technology. It’s coming at us faster than we can deal with it. That includes electronics, new frame alloys and composite materials for the cabs. Some of the electronic components on these trucks hold a high electrical charge and if approached the wrong way can seriously hurt the truck and the technician.” (This should sound familiar to those on the auto and light truck side.) Legler went on, “Many of the latest trucks are aerodynamically designed to optimize fuel economy. Today’s body technicians need to restore that truck’s aerodynamic design for optimum fuel economy. That’s a big deal when that truck travels

MAY 2019 AUTOBODY NEWS / autobodynews.com

100,000 miles per year.” When asked how the industry was dealing with ADAS systems, Legler said, “We have only had to deal with that for the last couple of years. But we have to come up to speed quickly. It’s only a matter of time before autonomous trucks using these technologies start hitting the road.” Chris Sterwerf is the chief finance and operations officer for Fairfield Auto and Truck Service in Fairfield, OH, the chairman of TMC’s Heavy Duty Collision Repair Guideline Task Force and a noted industry leader. When asked about the issue of repair information, Sterwerf agreed with Legler that it was hard to come by. He noted, “About 20 years ago when the auto repair shops were pushing for the ‘Right to Repair’ act,

nobody on the heavy duty side went to their party, so we were left out.” He said the problem might have been due to the great diversity in the industry. “Under the umbrella of heavy duty, we have shops that fix only semi-trucks, or only buses, or only RVs,” he said. “Some shops can handle a heavy wreck from soup to nuts; some only do cosmetic work. The industry is very fragmented, and it shows. It makes things tough sometimes.” Collision shops on the auto side are still somewhat fragmented but nowhere near as much as they were before the advent of industry associations in the 1950s and trade magazines as a means of communication in the 1960s and 1970s. Sterwerf continued, “And then there are all the shops that don’t look like shops—large fleets that repair

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their own trucks that are not visible to the public or even within the industry.” On the auto side, it’s pretty easy to find an independent repair shop using an internet search engine. On the heavy truck side, some large fleets maintain their own mechanical and collision shops, which tend to stay off the “commercial radar.” When asked what the biggest challenges were in the industry, Sterwerf replied, “There are a few things. One is the challenge of getting parts and repair information. Conversely, some component manufacturers, such as Bendix has all kinds of information online—and it’s all free. Sadly, few people use it. “The other issue I hear from a lot of shop owners is finding people. It’s tough to work in an industry that is so dependent on experience and knowledge when you don’t have any. but it may be the culture of the shop. “From my perspective, there are a lot of heavy duty shops out there that are only existing. Their repair methods, equipment and mind-set are stuck in an industry that existed years ago. They are not keeping up with technology and not moving forward.” (Hmmm… this has a familiar ring to it.) One of the major differences between the heavy duty collision repair world and the auto collision repair world is who pays the bill. On the auto side, easily 90 percent of collision repairs are covered by an insurance company. Conversely, most fleets are self-insured, so the company foots the bill for repairs. Any shop working exclusively on the auto side would find this arrangement ideal because there would be no more

fighting with an insurance company over what they would or would not cover. Sterwerf explained the issues encountered with fleet-paid repairs. “Bigger fleets don’t mind paying to have the truck fixed correctly and safely. They know that skimping out on a repair now may mean a catastrophic failure later; which means more down time and possibly injury to a driver or other parties. Rather than try to fix something, it’s quicker and safer to replace the entire component—so that’s what we do. Then there is no question about [the repair being] right or not. Conversely, some managers of small fleets, operating on a small budget, want to do only what is absolutely necessary to put the truck back in service—despite the repair not being complete or even safe. I just tell those guys to keep going. I know the shop is still liable for those repairs regardless of what they say or want— and I don’t need the headaches.” When asked for an overall assessment of the industry, Sterwerf noted that as part of the Heavy Duty Collision Repair Task Force, he has met a lot of shop owners, many of which are considered to be some of the best in the industry. “But even among the best, there is a wide variation of skills, knowledge, experience and equipment,” he said. “We need to get more people involved and more people to take an active role in this industry to make it better and bring us all to the next level.” The equipment needed to work on heavy trucks carries a proportionally large physical size and cost. Getting into the business is not for the faint of heart. Some of the challenges

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MAY 2019 AUTOBODY NEWS / autobodynews.com

encountered while performing a heavy truck repair are conversely diminutive, yet equally important. Many truck bodies are made of aluminum to save on weight. (This should sound familiar to the auto repairers.) So when a lamp is attached to a body, or screws are needed to hold two body panels together, it’s crucial to use stainless steel screws to prevent galvanic corrosion. Just like the auto side, as one might expect, the paint companies have taken a lead role in supporting the HD collision repair industry. Axalta has its legendary Imron coating. Introduced in the early 1970s with about 12 different basic colors, it is now available in more than 25,000 colors and is the coating of choice for 5 out of 6 U.S.-based heavy duty truck manufacturers. Its coatings used on the production line and in the field are identical making an “original factory finish” possible in the field. Axalta also has what they call a “Business Council” in which noncompeting shop owners can come together, learn from each other, share experiences and receive words of wisdom from Ron Kuehn.

Sherwin-Williams has its own line of polyurethane topcoats specifically for heavy truck and equipment use. According to its website, in 1939, Sherwin-Williams was instrumental in devising the color we know today as school bus yellow as the standard color for all school buses. BASF has its own line of commercial paint and will even customcreate a special color for an individual fleet. In addition to its durable commercial coatings provided through its Sikkens brand, AkzoNobel provides analysis and recommendation for fleets to minimize down time for maintenance and repair and a coaching and training program for individual shop employees. To summarize … are there differences between heavy truck and auto collision repair? Sure. But it seems there are just as many similarities. Fortunately, in both truck and auto repair, there are a handful of dedicated industry leaders working toward the betterment of each side of the industry—to identify and find solutions to problems to effect a safe and complete repair for the customer.

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Continued from Page 38

Dealing with ADAS

ments on scanning away and instead pull the actual specific repair procedures for the job. “There’s a lot of opportunity to justify the diagnostic requirements [aside from] just the position statements.” Rodenroth said. Greg Potter of the Equipment and Tool Institute pointed out that you can’t go to your doctor’s office without them doing some basic screening. “If I go in there just to get a signature, I’m getting weighed and my blood pressure taken,” Potter said. “It’s unfathomable to me to think that you’re going to work on a vehicle and not [scan] it. If there’s something very wrong with it, and you give it back to the customer [without doing] anything about it, and then something happens, I think you’re going to have some explaining to do.” Cada, who had a 30-year career in insurance, said the key is tying the need for the scan to “the event” covered under the insurance policy.

“If you can relate that back by documentation to the types of damages on the car, then you’re going to have success,” Cada said. “But if you’re scanning and find that what’s in there is nothing that was related to this loss, then it’s going to have to fall back on somebody else, because it’s probably not covered by the contract.” Panelists were asked how a shop can address being challenged by an insurer on increases in total repair costs when such increases are largely being driven by factors, such as vehicle technology and materials, beyond the shop’s control. “I think the opportunity for repairers is to have more complete line notes that explain what you can and cannot do with those substrates or electronics,” Rodenroth suggested. He also suggested pointing to instances where the shop used OEM repair procedures—such as those offered by some automakers for repairing headlight brackets—rather than just installing a new part. “That way it doesn’t appear to be too one-sided,” Rodenroth said. “Bumper covers are another opportu-

nity. Some OEMs say no, you can’t repair that bumper cover because of ADAS technology. But GM and Audi, for example, give direction about what you can and cannot do with regards to repairs. When you encounter those repair opportunities, and it is a good repair supported by the repair manual, certainly bring it to the bill-payer’s attention.” Amberson offered his own straightforward suggestion. “My advice to the repairer is simply to do the right thing,” he said. “Fix the car properly. Pay attention to the repair procedures. And let the chips fall where they may. We’re businesses. We deserve to be paid for what we’re doing. Nothing more and nothing less. I know it’s a challenge sometimes to convince an insurer they have to pay for extra steps. Statistically, we know that shops that scan cars and perform calibrations [have] a little higher severity than other shops. Our cycle time is a little worse than some other shops. But we’re doing the right thing on a more sophisticated, safer car. It’s to be expected they’re not going to be as inexpensive to repair.”

Payscape, SCRS Partner on Member Benefit

Financial technology company Payscape has partnered with the Society of Collision Repair Specialists. Through this partnership, they will be able to provide members discounted processing rates and world-class financial technology to further streamline their business operations. “Payscape is excited to partner with SCRS,” said John Mills, vice president of Enterprise Sales at Payscape. “Given their initiative to provide members with trusted sources and advanced learning, we aim to enhance their financial technology portfolio and hope to progress both our organizations.” Through this strategic collaboration, SCRS will have the ability to negotiate more competitive credit card processing rates for the small to mid-size businesses that are members of its organization. Business owners will be able to expand their payment processing services through innovative software solutions and increase cash flow.

I-CAR Contributes $225,000 to CREF

I-CAR© recently expanded its support of collision schools and students by making a $225,000 donation to the Collision Repair Education Foundation. The contribution was made as part of I-CAR’s 40th Anniversary Volunteer & Instructor Conference held March 1–3 in Orlando, FL. The financial contribution by I-CAR is in addition to the support to the Education Foundation’s mission by local ICAR committees across the country. The monetary contribution assists Education Foundation’s ability to offer collision school tool, equipment and instructor training grants and student scholarships across the U.S. “On behalf of the industry, ICAR is pleased to make this contribution that helps bolster the Collision Repair Education Foundation’s ongoing commitment to providing students with grants and scholarships that launch their careers in the collision repair industry,” said I-CAR CEO & President John Van Alstyne. 58

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House Republicans Push for Action on Self-Driving Vehicles Bill by Eugene Mulero, Transport Topics

Three Republicans in the U.S. House of Representatives are ready to re-legislate on the technology for self-driving vehicles. And, to do so, they are asking the chamber’s new Democratic leadership to proceed with a bill. Energy and Commerce Committee ranking member Greg Walden of Oregon was joined by his colleagues, Reps. Bob Latta of Ohio and Cathy McMorris Rodgers of Washington, in calling on committee Chairman Frank Pallone (D-NJ) to set up the consideration of a comprehensive bill on self-driving technology. “We are at a critical moment in the development of self-driving technology. We have the opportunity to support life-saving technology, create mobility benefits for many communities, and support U.S. jobs and innovation against foreign competition,” the trio of Republicans wrote on March 13. “We have outdated standards and unnecessary barriers, which are slowing the development and deployment of self-driving technology.” The Republican lawmakers pointed to the technology’s potential

to enhance safety on the roadways through automation designed to reduce driver error. Also, such vehicles could likely be utilized to assist the elderly and people with disabilities to access convenience stores or medical

gressional session’s adjournment. In February, Senate Majority Whip John Thune (R-SD), who had championed the bill in the previous congressional session, said he was aiming to restart talks on a similar bill.

facilities. And establishing the country as a leader in the technology’s development could lead to myriad economic benefits, they added. Latta is ranking member of the Communications and Technology Subcommittee, and McMorris Rodgers is ranking member of the Consumer Protection and Commerce Subcommittee. The committee’s Democratic leadership has not issued an update on the legislation’s consideration. A self-driving car bill easily advanced in the House last year but failed to reach the Senate floor amid disputes over key safety provisions. The bill ended its run upon the con-

Amid the industry’s recent achievements in developing the technology, federal regulators have issued a series of guidelines. In the fall, the U.S. Department of Transportation emphasized that safety, technology neutrality, consistent regulations and a proactive preparation for automation were key aspects of updated guidance. Additionally, speaking to reporters March 11, Transportation Secretary Elaine Chao indicated there was “very good news” in President Donald Trump’s fiscal 2020 budget proposal regarding autonomous technology. According to the proposal,

“We have outdated standards and unnecessary barriers, which are slowing the development and deployment of self-driving technology.” — Greg Walden

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DOT “will continue efforts in 2020 to enable the safe testing and integration of autonomous vehicles within the nation’s transportation systems by reducing regulatory barriers and conducting research.” Meanwhile, the Alliance of Automobile Manufacturers urged federal lawmakers to craft autonomous policy. Mitch Bainwol, president of the alliance, wrote in February, “Many of the rules that currently govern the operation of a motor vehicle were created at a time when a self-driving vehicle was a science-fiction fantasy, rather than a technological breakthrough on our doorstep.” Meanwhile, groups such as the U.S. Chamber of Commerce and companies such as Amazon.com Inc., Waymo and Uber also press Congress to legislate on provisions that would govern autonomous vehicles. Used by permission of Transport Topics. Copyright Transport Topics, American Trucking Associations, Inc. For more information, visit www .ttnews.com

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How Will These Recalls Impact Your Auto Glass Customers? their customers to contact New Flyer’s customer service center if they have more questions at 1-204-2246706 or the NHTSA Vehicle Safety Hotline at 1-888-327-4236.

The National Highway Traffic Safety Administration (NHTSA) recently issued three recalls with implications for the auto glass industry. The recalls affect New Flyer Industries, Volkswagen Group of America and Porsche Cars North America.

Volkswagen Volkswagen’s recall impacts more than 4,000 2019 Beetle and Beetle convertible vehicles. The administration states the vehicle’s instrument cluster may not provide a visual warning if a driver has brake failure. The absence of a visual signal may increase the chances of that vehicle model getting into an accident.

New Flyer of America Hundreds of heavy-duty busses from New Flyer Industries are affected by the company’s latest recall. According to the NHTSA, the company is recalling vehicles due to the possibility of its rooftop glass panel shattering. The administration stated the glass breakage may affect driver visibility.

Industry professionals can assure their customers that their instrument cluster software will be updated as necessary, at no charge. Shop owners can advise their customers to contact Volkswagen customer service at 1-800-8935298 if they have further questions. Volkswagen states it will notify all affected owners of its latest recalls.

Glass shop representatives working on the recalled models can assure their customers that the tempered glass panel will be replaced for them at no cost. Shop owners can advise

BMW Recalls 183,000 Vehicles for Takata Airbag Inflators by David A. Wood, CarComplaints.com

We thank CarComplaints.com for reprint permission. https://www.carcomplaints.com/news/2019/bmwrecalls-183000-vehicles-takata-air bag-inflators.shtml BMW is recalling about 183,000 vehicles to replace Takata airbags at risk of exploding. More than 170,000 of those vehicles had their original steering wheels replaced with the optional sports steering wheels, which contain frontal Takata airbag inflators at risk of rupturing. •

2000-2003 BMW 525i

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• • •

Porsche More than 14,000 Porsche owners are affected by the company’s latest visibility and electrical recall. Two dozen of the company’s vehicle models are affected. The NHTSA stated that drivers are not visually made aware when their brake pads are worn out. This can result in the driver losing control of their vehicle and increasing the likelihood of getting into or causing an accident.

Porsche stated it will notify all affected vehicle owners of the issue. Shop owners can assure their customers their instrument cluster software will be updated, free of charge. If customers have additional questions, vehicle shop owners can advise them to contact Porsche customer service at 1-800767-7243. We thank glassBYTEs.com for reprint permission.

Speak at CIECA CONNEX 2019 in Charlottesville, VA

CIECA is looking for a few additional thought leaders and industry professionals to speak at the upcoming annual conference—CIECA CONNEX 2019—in Charlottesville, VA, Sept. 16–18. CIECA invites you to share your knowledge and expertise as we work together to explore emerging issues, forecast for the future and discuss ways to prepare for the road ahead. CIECA CONNEX is the one event where CIECA members and business professionals from all segments of the collision repair industry gather to network and learn from one another. They include repairers, insurers, OEMs, parts and material suppliers, information and software providers, car rental companies, towing companies, salvage and recycled parts providers, auto glass replacement facilities, subrogation providers, general service providers and property restoration providers.

Finish it like a Masterpiece

2000-2003 BMW 530i 2000-2003 BMW 540i 2000-2004 BMW X5

In a separate recall of 12,880 vehicles, BMW is recalling the 2015 X1 sDrive28i, X1 xDrive28i and X1 xDrive35i. These vehicles are equipped with driver’s side Takata airbag inflators used as original or replacement equipment. The recalls began March 4. Dealerships have been replacing the Takata airbag modules. Customers with questions should call BMW at 800-525-7417.

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MAY 2019 AUTOBODY NEWS / autobodynews.com

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

by Emmariah Holcomb, glassBYTEs.com

The Dealer Below is a Genuine Lexus Parts Distributor:

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888-583-0026 803-691-8034

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850-574-2034 Fax M-F 8 am - 6 pm

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Rick Hendrick Chevrolet Naples NAPLES

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Parks Chevrolet CHARLOTTE

800-722-3994 704-598-4020 704-596-9989 Fax M-F 7:30 am - 6 pm

tmorgan@parkschevrolet.com

autobodynews.com / MAY 2019 AUTOBODY NEWS

Auto Industry: Blocking Trade With Mexico Would Be Disruptive by Nora Naughton, The Detroit News

As President Donald Trump threatens to close the U.S.-Mexico border in an attempt to curb illegal immigration, some in the U.S. auto industry are warning the move could cause major disruptions. Trump told reporters March 29 he “could” close the U.S.-Mexican border to “all trade” as part of a larger effort to force Mexico to crack down on immigration from Central American countries. “If they don’t stop them, we are closing the border,” Trump said. “We’ll close it. And we’ll keep it closed for a long time. I’m not playing games.” The Alliance of Automobile Manufacturers, a Washington-based group that lobbies for most major automakers, pushed back April 1 against any closure to trade. “Automakers rely heavily on cross-border trade throughout the North American region,” the alliance said in a statement. “In many instances, auto parts can cross the border seven to eight times before being integrated into the final assembly of a vehicle.

“We urge all parties to work together to avert a border closing that would result in significant disruptions to the North American auto industry, because ultimately increased costs hurt customers.” Some 37 percent of all auto parts imported to the U.S. come from Mexico, the country’s third-largest trading partner. Cutting off U.S.Mexican trade could create a ripple effect in the industry that wouldn’t just slow or stop the delivery of vehicles—it could shut down entire plants in the United States. “Building a vehicle becomes very difficult if you don’t have all the pieces to make it work,” said Kristin Dziczek, vice president of Ann Arbor-based Center for Automotive Research. “Depending on how long a closure lasts, there could be some vehicle shortages. But the more immediate effect is shutting down U.S. plants.” In Michigan alone, some five plants stand to be affected if trade between the U.S. and Mexico is brought to a standstill. Among the most vulnerable are Fiat Chrysler Automobiles’ Warren Truck and Jefferson North Assembly

plants, and General Motors Co.’s Flint Truck plant, according to data provided by the Center for Automotive Research. Those three Michigan plants all source engines from plants in Mexico. GM and Fiat Chrysler declined to comment, deferring to the Alliance for Automobile Manufacturers. The American Automotive Policy Council, a different trade group that represents GM, Fiat Chrysler and Ford Motor Co., issued a strongly worded statement April 1. “Any action that stops commerce at the border would be harmful to the U.S. economy, and in particular, the auto industry,” said AAPC president Matt Blunt. “Access to Mexico’s market place and North American integration are critical to operations in the U.S.” The White House said April 1 that up to 2,000 inspectors who screen cargo and vehicles on the Mexican border may be reassigned to help handle the influx of migrants. That could slow the movement of goods even if trade isn’t cut off completely. Senior aides defended a border

closing on March 31 news shows, with acting White House chief of staff Mick Mulvaney saying it would take “something dramatic” to avoid the closure. Trump’s threats to close the border are part of the president’s longer-running effort to install a wall at the U.S.-Mexico border. After declaring a national emergency at the border in February, an attempt to access wall funding voted down by Congress, the president has said he would end aid to Guatemala, Honduras and El Salvador. As the industry braces for a possible closure of the Mexican border, several other trade issues hang in the balance. A proposed replacement for the North American Free Trade Agreement—known as the United State-Mexico-Canada Agreement— is still up in the air. And an investigation into whether the Trump administration can levy tariffs on imported cars and parts in the name of national security still sits with the president, who has until May to act on the report. We thank The Detroit News for reprint permission.

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The Largest BMW Store in the U.S. by Volume. The Largest Inventory of BMW Parts! Our parts department is always ready to assist you with original BMW parts & accessories.

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MAY 2019 AUTOBODY NEWS / autobodynews.com