May 2021 Southeast Edition by Autobody News

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Elon Musk Shares Update on Tesla’s In-House Collision Repair and Insurance Efforts by Maria Merano, Teslarati

Tesla CEO Elon Musk recently stated Tesla is building up its collision repair capabilities. He added Tesla Insurance would ensure collision repairs would make the experience smoother for customers. “Tesla is building up collision repair capability to help address the grief that you went through, but usually insurance companies make you go [to] their ‘approved’ collision repair partners. Tesla Insurance will make it smooth sailing,” Musk tweeted in response to a tweet from “Everyday Astro-

naut.” After Tesla Model 3 owner and SpaceX enthusiast Everyday Astronaut received his car from a Tesla certified body shop, he noticed the driver’s side mirror wasn’t working, and a loud whistling noise came out of his windshield. A Tesla Mobile Service technician fixed the side mirror and windshield in minutes. In 2018, Musk announced Tesla was bringing collision repairs in-house. He noted outside firms were taking too long on repairs, and it was “driving Tesla owners (and us) crazy.” Musk shared Tesla was aiming to complete repairs See Musk Shares Update, Page 10

GM, LG Energy Solution Investing $2.3 Billion in 2nd Ultium Cells Manufacturing Plant in U.S. Ultium Cells LLC, a joint venture of LG Energy Solution and General Motors, on April 16 announced a more than $2.3 billion investment to build its second battery cell manufacturing plant in the U.S. The facility will be located in Spring Hill, TN. Ultium Cells will build the new plant on land leased from GM. The new battery cell plant will create 1,300 new jobs. Construction on the approximately 2.8 million-square foot facility will begin immediately, and the plant is scheduled to open in late 2023.

Once operational, the facility will supply battery cells to GM’s Spring Hill assembly plant.

Early conceptual rendering of Ultium Cells LLC battery cell manufacturing facility in Spring Hill, TN. See GM, LG Energy Solution, Page 18

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President Biden’s $174 Billion EV Package Broken Down Dollar by Dollar by Joey Klender, Teslarati

President Joe Biden’s $174 billion aid package for electric vehicles has been broken down in an email sent by officials from the U.S. Department of Transportation. Biden’s plan to increase EV production and adoption across the U.S. is fueled by the massive spending package that aims to woo car buyers away from gas-powered engines, favoring electric cars instead. The $174 billion package can be broken down into several categories of different spending allocations.

The largest is the consumer rebates portion of the package, accounting for $100 billion of the $174 billion package, Reuters said. The rebates would be a significant boost to U.S. automakers, especially ones like Tesla and General Motors, who cannot offer $7,500 rebates when a vehicle is purchased. Previous limits axed the EV tax credit after manufacturers sold 200,000 electric cars. The reintroduction of the $7,500 tax credit would undoubtedly convince some car buyers to consider all-electric options, bringing down See $174 Billion EV Package, Page 18

Sales of Electrified Vehicles Jump Up 81% in the First Quarter of 2021 According to an analysis of the U.S. auto market by Cox Automotive and Kelley Blue Book, sales growth of both electric and hybrid vehicles outpaced overall market performance in the first quarter of 2021. Electrified vehicles—automobiles featuring large battery packs and electric motors in the propulsion system—accounted for 7.8% of the total U.S. market, up from 4.8% in Q1 2020. Electrified vehicle sales growth of 81% far outpaced industry growth. Sales of electric vehicles (EVs)—battery only—grew by 44.8% year over year, reaching nearly 100,000 sales in the quarter, a record. Sales of hybrid vehicles outpaced both the market and EVs, doubling to more than 200,000 in the quarter. The overall automobile market increased by 11.4% in Q1. The EV market continues to be dominated by Tesla, which sold an estimated 69,300 vehicles in Q1 and remains the only significant automaker in the U.S. with an EV-only lineup. Tesla accounted for 71% of total EV sales in the quarter, down from 83% share in Q1 2020.

The new Tesla Model Y is the best-selling EV in the U.S., followed by the Tesla Model 3. The Model 3 was the No. 1 best-selling EV in 2020, but sales in the U.S. market declined by more than 50% year over year in the first quarter of 2021. The Chevrolet Bolt was No. 3 on the EV list, with nearly 10,000 sales in the quarter. The all-new Ford Mustang Mach-E, which went on sale in December, was No. 4, outselling both the Tesla Model S and Model X. While sales of EVs are increasing, hybrid sales are increasing more quickly, according to the Cox Automotive analysis. Sales of hybrid and plug-in hybrid vehicles jumped by 106% in Q1. Toyota, a hybrid pioneer, delivered most of that growth, selling 124,449 electrified vehicles in Q1, up from 49,576 in Q1 2020. Nearly 25% of new Toyota vehicles are now hybrids. The Toyota RAV4 Hybrid is now the best-selling hybrid in the U.S., with sales of 32,263 vehicles in the first quarter. The new Toyota Sienna minivan, which is available excluSee Jump Up 81%, Page 12

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REGIONAL AutoNation and Inter Miami CF Partner to Drive Out Cancer ..........................................14 Boring Company LVCC Loop Inspires Miami Mayor to Expand Tunnel Project ....................14 Classic Collision Announces New Acquisition ......6 Florida Trans Am Shop Burns ............................14 Georgia Woman Buys Dodge Charger with COVID Money ..................................................8 Gerber Collision & Glass Acquires 3 Repair Centers in Tallahassee, FL .............................16 HGreg.com Named No. 1 Nissan Dealership in U.S..............................................................6 Maserati of Fort Lauderdale Ranks as Top Volume Dealer in the Southeast U.S. .............12 New Duluth Location for Athens-Based EZ Dent Auto Spa ............................................6 Newly Adopted Florida COVID-19 Liability Shield Law is Nation’s ‘Most Aggressive’.......16 Service King-Fredericksburg, GEICO Donate Refurbished Vehicle to Deserving Recipient .....8 State Farm Seeks Trial in $1.4 Million Suit Against Auto Glass Company .........................10 Three Masked Men Steal $1 Million Worth of Cars ..........................................................12

CCC’s 2021 Crash Course Report Offers a Glimpse of the ‘New Normal’.........................38 Chip Shortage Saga: Ford F-150 And Edge to Be Built Without Certain Electronic Modules ..26 Combat the Tech Talent Crisis with CREF...........24 Cox Automotive March Forecast: U.S. Auto Sales Pick Up Pace Heading into Spring ........53 Elon Musk Shares Update on Tesla’s In-House Collision Repair and Insurance Efforts .............1 Erie Insurance National Survey: Americans Eager to Take Road Trips in 2021 ..................54 EV Charging Tax Credit Set to Expand with Proposed Act ................................................51 EV Market Declined in 2020 ..............................26 Farmers Insurance Finds More Than Half of Drivers Admit to Using Cell Phones While Behind the Wheel ..........................................52 GM Airbag Investigation Launched After Injuries .........................................................45 GM Earns 2021 ENERGY STAR Award................51 GM, LG Energy Solution Investing $2.3 Billion in 2nd Ultium Cells Manufacturing Plant in U.S....1 Government Investigates Passenger Airbag Recalls..........................................................50 Honda Donates Portable Generators ..................21 It’s Official, Ferrari Will Have Its Fully Electric

COLUMNISTS Anderson - Have We Handcuffed Employees from Providing Extraordinary Customer Service? .......................................................32 Attanasio - 4C Collision Consulting Focuses on

Supercar in 2025 ..........................................25 KBB Names Brand Image Winners ....................35 Protect Kids ..................................................54 SEMA Show ..................................................50 Maaco Launches Online Estimating Tool............14

Sisk - ASA Bonus Webinar Explores Value of Return to Work Programs ..............................42 Sisk - Getting Paid Starts at the Beginning of the Process: MSCRA Hosts Collision Hub for Estimating Training ..................................46 Sisk - WIN Webinar Explores What’s NEXT for Auto Body in the Digital World ..................34 Yoswick - Deciding Between Leasing and Purchasing When Adding Shop Locations ......36

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. ©2021 Adamantine Media LLC.

Audi Wholesale Parts Dealers .......................... 49

John Heister Automotive ................................. 40

American Icon Automotive Finishes ................. 18

Kia Motors Wholesale Parts Dealers ................ 47

AutoNation Collision Part ................................... 9

KSI Auto Parts ................................................. 16

AutoNation Ford-Lincoln ................................. 20

Landers Chrysler-Dodge-Jeep-Ram .................. 8

BMW Wholesale Parts Dealers ........................ 50

LKQ Corporation ............................................... 5

Car-O-Liner..................................................... 11

Mazda Wholesale Parts Dealers ...................... 53

Certified Automotive Parts Association ............ 32

Mercedes-Benz of Cutler Bay.......................... 34

City Kia of Greater Orlando .............................. 42

Mercedes-Benz Wholesale Parts Dealers ........ 46

Classifieds ...................................................... 54

Miami Lakes Automall..................................... 21

Colad/EMM Specialties ................................... 56

MINI of Charleston .......................................... 42

Equalizer Industries, Inc. ................................... 6

MINI Wholesale Parts Dealers.......................... 50

Florida Filtration & Spray Booth Services......... 12

MOPAR Wholesale Parts Dealers ..................... 31

Ford Wholesale Parts Dealers .......................... 48

Pro Spot International ..................................... 13

GM Wholesale Parts Dealers ........................... 51

Rick Hendrick Chevrolet Naples ...................... 44

Gus Machado Ford .......................................... 25

Riverside Ford-Lincoln .................................... 43

Harper Volkswagen ......................................... 33

SATA Dan-Am Company .................................. 19

Hendrick Automotive Group............................. 37

Sherwin-Williams Automotive Finishes .............. 2

Hendrick BMW/MINI .......................................... 7

Southside Kia.................................................. 35

Hendrick Honda Pompano Beach .................... 36

Spanesi Americas ........................................... 15

Hendrick Kia Cary ........................................... 39

Sport Durst Automotive Group ......................... 41

Hendrick Kia Concord ..................................... 39

Steck Manufacturing Company ....................... 24

Hendrick Volvo Cars of Charleston................... 42

Subaru Wholesale Parts Dealers...................... 45

Honda-Acura Wholesale Parts Dealers .27, 28-29

Sunmight USA ...........................................22-23

Hyundai Wholesale Parts Dealers .................... 48

Tameron Hyundai ............................................ 38

Insta Finish ..................................................... 17

Volkswagen Wholesale Parts Dealers .............. 53

Autobody News P.O. Box 1516 Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

Las Vegas Ready to Welcome 2021

Growing MSOs Through Strategic Marketing .44

During COVID-19 ..........................................30

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, Norman Morano, (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bryan Malinski Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Abby Andrews Accounting Manager: Heather Priddy Permissions Editor: Randi Scholtes Office Assistant: Dianne Pray

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INDEX OF ADVERTISERS

CONTENTS

MINI Will Switch to Fully-Electric Vehicles By Early 2030s .............................................25 New Vehicle Inventory Continued to Dwindle in March: Edmunds .......................................55 Nominations Open for NABC Awards .................52 President Biden’s $174 Billion EV Package Broken Down Dollar by Dollar .........................1 Record-Breaking 78 AutoNation Dealerships Certified as J.D. Power 2021 Dealers of Excellence ....................................................26 Sales of Electrified Vehicles Jump Up 81% in the First Quarter of 2021 .............................1

NATIONAL

SEMA Scores State Legislative Victories ............52

‘Who Pays for What?’ Survey Finds More Than

Tesla Alleged ‘Driverless’ Crash in Texas:

Half of Shops Paid Regularly to Mask Engine Compartment................................................21 ASE Launches Redesigned Website...................18 asTech Acquires Red EU & Red Autocentres ......55 Audi Just Halted Development of New Combustion Engines .....................................20 Axalta to Host Virtual Capital Markets Day .........55 California Autobody Assn. Supports AB 471 for Accountability, Accessibility, Transparency .....40 CCC Announces Plan to Deliver on Industry Vision for Straight-Through Processing .........48

What is Known So Far ...................................49 Tesla Insurance Poised for Launch in Several More States ..................................................33 Tesla Owner Involved in $100K+ Legal Battle as Parking Garage Blames Autopilot for Model 3 Crash ................................................4 U.S. Auto Industry Pushes Biden to Move Forward with EV Adoption Plan........................4 Volkswagen Group Has Plans to Switch to Single Electric Car Platform ..........................26

Jim Cogdill Chrysler-Dodge-Jeep-Ram ........... 10

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Tesla Owner Involved in $100K+ Legal Battle as Parking Garage Blames Autopilot for Model 3 Crash by Simon Alvarez, Teslarati

A Tesla owner has found himself in the middle of a battle worth more than $100,000 in property damages after his Model 3 Performance crashed while being driven out of a valet parking garage. Despite being in the right and having the evidence to back up his claims, the Tesla owner has ended up in an uphill battle that could last for some time. It was supposed to be a routine process. After having his Model 3 parked at a multi-story garage, the Tesla owner asked for his vehicle to be returned. A valet then went on to retrieve the Model 3 from its parking spot. A Teslacam video of the valet driving the vehicle showed everything seemed normal, despite the parking garage employee driving a bit fast in such a cramped space. Moments later, the Tesla owner was shocked as part of the parking garage’s second-floor walls came crashing into the sidewalk below. Images taken by the owner after the incident revealed a vehicle had been partly pushed through the parking garage’s brick walls. Fearing the worst, the Tesla driver ran up to check on the valet and his Model 3. What he saw confirmed his fears. Smashed against two vehicles was his blue Tesla Model 3 Performance, its front end crushed as it collided with other parked cars. As the valet stumbled out of the Model 3, he promptly claimed the Tesla suddenly engaged Autopilot and drove itself into the other vehicles. The valet was not joking. While those inexperienced with Tesla’s tech may find it easy to blame Autopilot to avoid accountability when something terrible happens, those familiar with the driver-assist

system know Autopilot could not be engaged in a number of places. One of these is, of course, a multi-story parking garage. The Model 3 owner then knew something was amiss when the valet told him Autopilot suddenly drove the Tesla into the other vehicles. The parking garage company claimed innocence by stating the incident was caused by “unintended acceleration” on the Model 3’s part. The company refused to budge, and the Tesla owner decided to fight all the way. Being familiar with how Tesla stores its vehicles’ data, the Model 3 owner decided to gather so much evidence that there will be no way his insurance company could lose the case. In cases such as these, which involve a party claiming unintended acceleration through Autopilot, it is always best to have a Tesla’s Event Data Recorder (EDR) report. The EDR is like the car’s black box, recording everything that has happened in the vehicle. Everything, from the driver’s weight, the vehicle’s speed, which pedals were pressed and how far they are pressed, could all be determined in the EDR report. The Model 3 owner then contacted Tesla for help in retrieving his car’s records. Much to his chagrin, Tesla refused, citing legal reasons because he lives outside of California. In a statement to YouTube channel Wham Baam Teslacam, the Model 3 owner remarked he is not really sure why Tesla refused his request, though he thinks if it were his lawyer who contacted the electric car maker, the results would have been different. Disappointed but not deterred, the Model 3 owner ended up hiring an EDR technician to retrieve his Tesla’s report. The move cost him

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$1,300. The EDR report was damning. A look at the data from the Model 3 showed the valet was not even wearing a seatbelt while operating the Tesla. The vehicle was also moving reasonably fast for a car being driven out of a multi-story parking garage. But even more importantly, the EDR showed the valet had applied 100% pressure on the accelerator and 0% pressure on the brake pedal all the way up to the crash. With this data, the Model 3 owner figured he could ultimately prove the parking garage’s unintended acceleration claim was untrue. But despite the mountain of evidence provided by the EDR report, the parking garage company decided to dig their heels in the sand and stand by their claim of unintended acceleration. The Model 3 owner’s insurance company has paid out on the multiple claims for the damages that resulted from the incident and has pledged to reimburse him

after litigation is finished. But that process could take quite a while. The incident resulted in $24,000 worth of repairs to the Model 3 Performance. Adding on the damage to the other vehicles involved in the incident and the damage to the building itself, the total cost of property damage from the crash is estimated to be far beyond $100,000. Ultimately, the Tesla owner’s experience with the parking garage highlights two notable things. One, parking garages and valets should know it’s tough to lie about what one does in a Tesla since data from the EDR would most definitely show the truth. And second, Tesla’s service has a lot of space for improvement, so owners who approach the company for help after such a harrowing, aggravating incident would not be turned away. An EDR request, especially one by an owner involved in an accident, is better off approved, after all. We thank Teslarati for reprint permission.

U.S. Auto Industry Pushes Biden to Move Forward with EV Adoption Plan by Steven Loveday, Inside EVs

Large automakers, related companies and the United Auto Workers (UAW) made specific requests to the Biden Administration recently in a sixpage letter. The letter, dated March 29, asked for a push forward related to tax credits and incentives for the future of the EV industry. President Joe Biden has been talking about his $3 trillion infrastructure plan, which aims to speed up EV adoption in the U.S. by pulling a number of levers. If the plan plays out as proposed, it will include electric car tax credits, EV charging infrastructure build-out and much more. According to Reuters, via Autoblog: “As a candidate, Biden pledged to invest $2 trillion in infrastructure spending, including fixing highways, bridges and airports; encouraging fuel-efficient vehicle manufacturing; and installing 500,000 EV charging stations. The letter noted there are currently 100,000 public charging outlets nationwide.” With several automakers officially announcing plans to go “all in”

on EVs, Biden’s plan, if passed, will help alleviate their previous apprehension. It has been proven for years that electric cars are difficult and expensive to produce. Legacy automakers fear losses going forward; with the help of the federal government, it could be a huge win-win situation in the future. The letter points out there are 278 million passenger vehicles currently registered on our shores. Only 1.5 million are electric cars. EVs account for only 2% of vehicle sales in the U.S. today. “To fully transition is going to require an enormous effort across the economy in every sector,” said John Bozzella, head of the Alliance for Automobile Innovation. The letter highlights the need for a comprehensive plan based on reality. It points out in the current situation, there’s no way EV adoption can find success in the near term, and the possibility of transitioning to carbon-free transportation is not going to happen without a major change in policy and governmental support. We thank Inside EVs for reprint permission.

4 MAY 2021 AUTOBODY NEWS / autobodynews.com

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Classic Collision Announces New Acquisition Classic Collision, LLC, a leading national multi-site collision repair operator based in Atlanta, announced its newest acquisition in the Atlanta market of Bentley’s Collision Center. Classic Collision now has 31 Georgia locations and operates 66 centers total in Georgia, Florida, Alabama, South Carolina and California. Bentley’s Collision Center has been in business for more than 41 years. “Bentley’s has a deep relationship in the Walton County community and we look forward to serving the community under the Classic name,” said Alan Bentley, former owner of Bentley’s Collision Center. “We are pleased to welcome the entire Bentley’s team to the Classic Collision family,” said Toan Nguyen, CEO of Classic Collision. “We believe their expertise in the industry and long-standing reputation in the community will greatly contribute toward expanding our service offerings. Throughout the year we will continue to advance our presence and growth across the country.” Source: Classic Collision

HGreg.com Named No. 1 Nissan Dealership in U.S. HGreg.com ended March with the best-selling Nissan dealership in the U.S.

HGreg Nissan Kendall, located in Florida, earned the No. 1 spot in the U.S., of more than 1,000 dealerships. HGregoire Nissan Chomedey, in Quebec, also earned the top spot in Canada, of nearly 200 dealerships. “I could not be prouder of our team and the community of people we serve,” said John Hairabedian, president and CEO of HGreg.com and its parent company HGregoire. “Earning this title is rewarding, but it’s definitely a side effect of our mission to redefine the car buying experience through a customer and

tech-first approach. “We’re celebrating but, more importantly, we’re remaining focused on the customers who choose to visit us online or in person today for their new needs and dreams.” The Nissan dealership rankings are based on sales figures on a month-bymonth basis. This recent recognition comes on the heels of several other in-

time in its history. In January, HGregoire Nissan Chomedey announced it was named Largest Retailer of Nissan vehicles in Quebec—the second consecutive year it had earned the title. The dealership was also rewarded with the Best Priced Dealer Award for its commitment to transparency and fair pricing on autoTRADER.ca The car group has also introduced innovative new services and

“Earning this title is rewarding, but it’s definitely a side effect of our mission to redefine the car buying experience through a customer and tech-first approach.” — John Hairabedian dustry achievements for both dealerships. HGreg Nissan Kendall, under HGreg.com ownership for slightly more than a year and already a J.D. Power 2020 Dealer of Excellence, earned the distinction as America’s No. 1 Nissan dealership for the first

solutions including free same-day delivery, a contactless car-buying process, payment by cryptocurrency, easy returns and exchanges and a fully seamless omnichannel experience. Source: HGreg.com

New Duluth Location for Athens-Based EZ Dent Auto Spa EZ Dent, an automotive repair company founded in Athens, GA, brings a new shop, new services and new automotive jobs to Gwinnett County. The new Auto Spa is located at 3492 Satellite Blvd. #120 Duluth, GA 30096. Gwinnett County customers can expect exterior automotive services such as paintless dent repair (PDR), window tinting, ceramic coating, paint correction and more. EZ Dent’s hail damage repair service is an invaluable service during Georgia’s increasingly violent hail season. EZ Dent’s Auto Spa helps car owners repair and enhance their vehicle’s appearance without the time, hassles and costs of a traditional collision repair shop. “While time and cost savings are most important to our clients, we also exist as an eco-friendly alternative to body shops. We prevent car panels from being replaced or repainted―two conventional repair steps that can lead to more contamination of our environment,” said EZ Dent Duluth Manager Preston Burns, citing

his experience with the amount of waste and contaminants that traditional body shop processes produce. The new location also provides an opportunity to reinvest in Gwinnett County’s burgeoning automotive hub around Gwinnett Place Mall. The new location will be convenient to many of Gwinnett County’s largest car dealerships and specialty automotive parts stores. EZ Dent plans to continue its reinvestment in employee skills, local partnerships and customer service that they’ve become known for in Athens. “We like to build authentic relationships with our clients,” Owner Matt Moore said. “Even if the damage exceeds what PDR can fix, we strive to be a knowledgeable resource for anyone that walks in our door or reaches out to us.” Moore has more than 15 years of PDR expertise which helped him to rapidly grow the Athens location and create jobs for professionals looking to be on the automotive repair industry’s cutting edge. Source: EZ Dent Auto Spa

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Service King-Fredericksburg, GEICO Donate Refurbished Vehicle to Deserving Recipient Recently, Keesha Wright, a deserving Fredericksburg, VA, resident, experienced a life-changing event—the presentation of a 2015 Ford Fusion to provide her independence and the ability to work and take care of her family—thanks to Service King-Fredericksburg and car donor GEICO, along with the National Auto Body Council Recycled Rides program. The presentation was held recently at Rappahannock United Way’s office in Spotsylvania, VA. Steve Moore, general manger of Service King, attended and helped with unveiling the car. Janel Donohue, president of Rappahannock United Way, gave Wright the keys to her new car. The deserving recipient was nominated by Margaret Kennerly of Mary Washington Healthcare, who treated Wright’s daughter Chelsea, 27, after a car accident that totaled her car and left her disabled. Wright, formerly a security guard at Mary Washington Healthcare, left her position to be the fulltime caregiver for her daughter and her children. She moved to accom-

modate her growing family needs, which left her further from the city and more reliant on her car. When her car caught fire and was totaled, she was unable to afford a new vehicle. This meant she had to pay for local transportation to go to the grocery store, handle medical appointments and take care of family errands.

work outside the home while hiring someone through Medicaid to care for my daughter.” The process to refurbish the vehicle for Wright began last year, but was made challenging by the closure of local DMV offices due to COVID. Rappahannock United Way helped fill the gap by providing holiday gifts and decorations

“We’re honored to present this vehicle to Keesha Wright and her family, and hope it helps convey them on their continued path to independence and success.” — Sandi Freeman “This car will give me increased independence and financial stability for my family,” said Wright. “In addition to giving me transportation for my family, a car offers me the options to eventually get a better-paying job and get health benefits for myself and family. A car may offer me options to

and handling the sales tax, local tax and titling of the car. “Since the NABC Recycled Rides program was founded in 2007, we’ve been proud to present more than 2,600 vehicles to deserving recipients and their families,” said Sandi Freeman, program manager for the NABC Recycled Rides

Georgia Woman Buys Dodge Charger with COVID Money by Steven Symes, Motorious

A Georgia woman is accused of making up a fake business just to get government COVID-19 relief funds, which she used to buy a Dodge Charger, among other things. It’s similar to other stories we’ve covered in the past, demonstrating when the government is handing out money, there are those who will do just about anything to get as much as possible. According to federal prosecutors, Tracy Kirkland invented Kirklands Hair N Beauty, a salon she supposedly owned, employing three people. Using that information, she applied for a loan through the federal program set up to help business which have been struggling thanks to the government-imposed shutdowns. Since her fraud wasn’t initially caught, Kirkland received a $66,400 deposit in her bank account in August 2020. With that money burning a hole in her pocket, she bought a 2019 Dodge Charger, although the exact model wasn’t listed. Kirkland purchased other items and made large cash withdrawals

from her account. None of those expenses were related in any way to running a salon. That just created a nice paper trail for prosecutors once her fraud was uncovered. Rather than face an expensive, draining legal battle, Kirkland pled guilty to wire fraud in court. Not surprisingly, this isn’t Kirkland’s first trip around the block. Prosecutors say she’s a convicted felon. Through a plea deal, the Georgia woman is forfeiting her Dodge Charger to the government, the one we all paid for with tax dollars. She also has to return $16,250 in cash and repay the $66,400 she obtained fraudulently. Usually, the fraud charges would come with a maximum 30 years in prison and a $1 million fine, so she got off easy. Hopefully Kirkland has learned this time around crime ultimately doesn’t pay.

Program. “We’re honored to present this vehicle to Keesha Wright and her family, and hope it helps convey them on their continued path to independence and success.” “We applaud Service King, GEICO and the Rappahannock United Way for their diligence in guiding this vehicle through the unique titling process of our current time, and for continuing to provide support to Keesha and her family throughout.” NABC Recycled Rides is a unique program in which businesses representing all facets of the collision repair industry team up to repair and donate vehicles to individuals and families in need of reliable transportation. Since the inception of the NABC Recycled Rides program in 2007, members of the National Auto Body Council have donated more than 2,600 vehicles valued at more than $36 million. Additional partners in the NABC Recycled Rides® presentation included 1-800 Charity Cars. Source: NABC

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State Farm Seeks Trial in $1.4 Million Suit Against Auto Glass Company by Emmariah Holcomb, glassBYTEs.com

State Farm Mutual Automobile Insurance Company and State Farm Fire and Casualty Company, collectively State Farm, has filed a federal lawsuit in Florida’s Middle District Court against At Home Auto Glass LLC, William Camp and Nicholas Alexander. The insurance company alleges the defendants are responsible for fraudulent windshield replacement claims, and has requested $1.4 million in damages from the presiding judge. State Farm claims sales personnel for At Home Auto Glass solicited State Farm insureds at their homes or in other public places to agree to auto glass replacement services. According to the insurance company’s complaint, most of the defendant’s salespeople operated without the licenses it says are required by Florida law for door-todoor solicitations, and incentivized customers to agree to the services through inducements of gift cards or bonuses for referrals and the promise the work would be performed at no cost to the customer.

“At Home’s salespeople used forms to obtain the customer’s authorization to perform glass replacement services that concealed the exorbitant charges that would be submitted in connection with the customer’s claim,” a portion of the

complaint reads. “The salespeople also falsely claimed (or misrepresented) the services would be performed at no cost to the customer, despite the fine print on the documentation stating the customer was responsible for the charges.” State Farm also alleges At Home Auto Glass’s operations were designed to “create the appearance it was an actual auto-glass replacement company, but in reality, it was created to operate as a middle man

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with no more than one employee who did not perform any actual auto glass repairs.” State Farm stated the following reason to support its allegations against the defendants: violation of the Florida Deceptive and Unfair Practices Act, violation of the Florida Deceptive and Unfair Practices Act and unjust enrichment. At Home Auto Glass recently filed a motion to dismiss this case. “Because State Farm’s complaint fails to state a proper claim for relief as against Camp that is plausible on its face, it should be dismissed,” a portion of the motion to dismiss reads. “Camp respectfully requests the order of this court dismissing the complaint, with prejudice, and granting such other and further relief as is appropriate under the circumstances.” The presiding judge has yet to issue an order on At Home Auto Glass’s motion. Look to a future edition of glassBYTEs for continued updates on this case. We thank glassBYTEs.com for reprint permission.

within the same day or in under an hour. Having Tesla Insurance coordinate with the company’s in-house collision repair facilities would make the repair process more streamlined and convenient for EV owners. This could be a notable advantage for Tesla owners, as having a vehicle repaired after a collision is arguably one of the most stressful times in car ownership. A streamlined process between Tesla Insurance and the company’s in-house collision repair could be a game changer. Tesla has taken steps to expand its insurance program since Musk and Zachary Kirkhorn expressed the company’s intentions for expansion during the Q2 2020 earnings call. Tesla Insurance has expanded to Texas, Illinois and Washington in the U.S. The company has also set the board to launch Tesla Insurance in other countries, like Israel, China and some nations in Europe. We thank Teslarati for reprint permission.

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Three Masked Men Steal $1 Million Worth of Cars by John Puckett, Motorious

sively as a hybrid, is No. 2 with sales of 26,044. In all, there are more than 60 different hybrid or plug-in hybrid vehicles now available in the U.S. Honda is the No. 2 hybrid maker, with more than 22,000 hybrids sold in Q1. Honda’s electrified tally was 7.1% of its total Q1 sales volume, up from 3.5% in Q1 2020. Ford is the No. 3 player with more than 18,000 hybrids sold, including 7,176 F-Series pickups. Volvo sold more than 2,800 electrified vehicles in the first quarter, accounting for 11.5% of the brand’s total sales in Q1. “Electrified vehicle growth in the U.S. and around the world is shining a spotlight on battery development and sourcing,” said Cox Automotive Executive Analyst Michelle Krebs. “As the industry builds more vehicles with battery packs, sourcing of these parts and lifetime management of the battery cells is a critical hurdle the industry must clear.” Source: Cox Automotive

Do you remember back in the day when it was easy to tell if you were being robbed or not? If three men walked into your place of business with masks on, you immediately knew it. But today, in the age of COVID it is more out of the ordinary to be able to identify someone who may be up to no good. Don’t get me wrong, this new precaution is necessary but criminals are certainly taking full advantage of the new normality. According to North Carolina officials, investigators are on the lookout for three unidentified men who allegedly stole more than $1 million worth of new cars over the past few months. Pretending to be prospective customers, the men walked into dealerships and asked to look at a car. As soon as the sales person looked away, the men switched the keys with fakes. They then said the car is not for them and leave. With “keys” in hand, the salesperson was none the wis-

Maserati of Fort Lauderdale Ranks as Top Volume Dealer in the Southeast U.S. Maserati of Fort Lauderdale, part of Experience Auto Group’s roster of luxury dealerships across the eastern seaboard, has been recognized as the top volume Maserati dealer in Florida and second in the nation for 2020. Maserati of Fort Lauderdale has repeatedly proven to be a powerhouse in Florida, outperforming 13 Maserati dealers in Florida and 98 in the U.S. “We’re thrilled to boast the highest volume of Maserati’s unparalleled power and style in the Southeast region,” said Garrett Hayim, president and owner of Maserati of Fort Lauderdale. “This recognition is a testament to the passion and dedication of every team member at Maserati of Fort Lauderdale, ensuring our customers enjoy a personalized experience before and after they take home their iconic Italian car.” This is now the sixth time Maserati of Fort Lauderdale has earned the top volume title since its founding in 2002. The dealership’s continued achievement is driven by its commitment to delivering customers the highest level of ser-

vice and access to a robust collection of pre-owned and new luxury vehicles, including Maserati’s Quattroporte, Levante, Ghibli and the GranTurismo. The 2020 success was followed by the opening of Maserati of Fort Lauderdale’s brandnew flagship store in late 2019, which further elevated the luxury car-buying experience to include a 32,000-square foot showroom, a climate-controlled service area and a deluxe customer lounge and café. Despite last year’s COVID-19 pandemic, the dealership safely serviced an increasing number of customers by reinventing its approach to world-class service, offering virtual walk-throughs, sales consultations, inventory showings and more. Maserati of Fort Lauderdale is located at 5730 N. Federal Hwy., Fort Lauderdale, FL 33308. For more information call (954) 633-2490 or visit www.maseratifl. com. Source: Experience Auto Group

er and went about his or her day. The group of thieves then returned to the dealer later in the day and drove off in the very cars they looked at earlier.

Police say the suspects made off with a black 2018 Chevrolet Camaro ZL1 and a red 2020 RAM 1500 Rebel from Team Chevrolet of Creedmoor, NC, on Dec. 17. Three days later, the crew hit up Capital Chevrolet in Wake Forest, NC, and stole a yellow 2017 Chevrolet Corvette Stingray using the same tactics.

Both times, the men were seen driving a newer model silver Toyota Highlander to the scene and investigators have released images of it and two of the men, along with a reward of $1,000 for any information that leads to an arrest and conviction. But the pictures are likely to be of no help as the men are doing their part to prevent the spread of COVID. However, if you can identify these two men by looking at their eyeballs, investigators are seeking your help. Oh and, as far as the silver Toyota lead is concerned, this same group of guys is believed to be involved in multiple other cases that span two states, so it is likely stolen as well. Nevertheless, if you have a lead for the police, call the Creedmoor Police Department or Granville County Crime Stoppers. We thank Motorious for reprint permission.

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Boring Company LVCC Loop Inspires Miami Mayor to Expand Tunnel Project by Maria Merano, Teslarati

Miami Mayor Francis Suarez paid a visit to The Boring Company’s Las Vegas Convention Center (LVCC) Loop in Sin City over the weekend of March 20-21. “Today I had the opportunity to visit @boringcompany tunnels in Las Vegas. After seeing the innovative & outstanding work @ elonmusk & his team have done, I can’t wait to see what we can do for Miami,” the mayor wrote on Twitter. Suarez shared pictures of his productive trip to Las Vegas. He rode in a Tesla Model X and may have taken a trip through the LVCC Loop. He also commented a Boring Company Miami Loop would “revolutionize the modern-day, transit-oriented lifestyle” of Miami. As cities continue to grow, transit-oriented developments have become more relevant. According to the Institute for Transportation and Development Policy, tran-

Maaco Launches Online Estimating Tool Maaco now offers vehicle owners a new, unique and easy way to obtain estimates and book appointments to have their car painted and have minor dents, scratches or weather damages repaired with the Maaco online estimating tool. One of the first estimating services of its kind, the online tool allows customers to input information that generates an estimate for the services they need. It even has the flexibility to adjust pricing based on geography and the difference in regional labor rates. Once the estimate is generated, the vehicle owner can use the tool to book an online appointment, making the entire process fast, easy and able to be done from home on a phone or desktop.To get an online estimate, customers simply answer a few questions about their vehicle. Then they receive a preliminary estimate. From there, the customer can book an appointment to finalize the estimate on-site with their nearest Maaco facility. Source: Maaco

sit-oriented development focuses on designing urban spaces with easy walking, cycling connections and “near-excellent” transit services. In Miami, Suarez was interested in building a Boring Company tunnel to decrease congestion in a specific part of the city. He wants to build a 2-mile tunnel under the Miami River, thereby reviving the Brickell Tunnel Project proposed by former Mayor Maurice Ferré more than 40 years ago. After he visited Las Vegas, Suarez may have expanded his vision of a Boring Company project in Miami. During a press conference March 22, he shared his vision of a pedestrian transportation system with multiple stops between Brickell and Little Haiti, reported the Miami Herald. Based on his new concept, the potential Boring Company Miami Loop project has grown. We thank Teslarati for reprint permission.

Florida Trans Am Shop Burns by Steven Symes, Motorious

Fire claimed two classic cars at Trans Am Specialties of Florida during the final weekend of March. It broke out in the middle of the night, but thankfully the owner was able to push several Pontiac Trans Ams outside before they too were lost. Even better, nobody was hurt in the blaze. Despite the good news, the loss of a Pontiac Trans Am which was personally owned by the late Burt Reynolds is tragic. With the “Smokey and the Bandit” actor gone, and the impact the actor had on the Trans Am community, having one of the few connections to him destroyed is too much. The shop didn’t release information on the second Trans Am totaled in the fire; however, a member of Facebook group Rotting Musclecars and Old Tin claimed it was the first 1977 Pontiac Trans Am SE Y82 Smokey and the Bandit Special Edition Trans Am ever made. It also didn’t specify if any

of the cars pushed out the shop suffered damage, although a photo shows two sitting in the shop with pretty serious damage from heat, smoke and falling debris. Of the many cars saved from the fire was the only surviving Knight Rider KITT Super Pursuit Mode car created by Jay Orberg. While it’s sad the other two cars were destroyed, another piece of history was preserved for future generations to appreciate. Also suffering serious damage in the fire was the shop’s main offices and Trans Am memorabilia kept there. In a Facebook post, Trans Am Specialties of Florida said it would be able to get back to work soon after the cleanup process. We thank Motorious for reprint permission.

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AutoNation and Inter Miami CF Partner to Drive Out Cancer AutoNation, Inc., America’s largest automotive retailer, on April 9 announced it has partnered with Inter Miami CF, an American professional soccer club based in South Florida. AutoNation will be the official and exclusive automotive partner of Inter Miami, which includes naming rights of the stadium and branding on training kits. This partnership amplifies AutoNation and Inter Miami’s commitment to driving out cancer by leveraging the power of soccer and its strong fan base. In addition, the partnership includes extensive TV and digital exposure, with the entitlement of the Inter Miami Digital Live Stream via their Inter Miami App and the Inter Miami Spanish language streaming show. Aside from Spanish being one of the top two languages for its fans across social media during Inter Miami’s inaugural season, more than 60% of website traffic came from Latino dominant cities across the U.S. Also, 34% of Inter Miami’s registered mobile app us-

ers identified themselves as being of Hispanic/Latino descent. As a part of the multiplatform media campaign, AutoNation will become the sponsor of the “Saves” feature during Inter Miami matches. For every Inter Miami goalkeeper save, AutoNation and Inter Miami will donate up to $100,000 towards cancer research annually. “DRV PNK Stadium is about driving awareness of a proven mission that has raised over $26 million in the fight against cancer,” said Marc Cannon, AutoNation’s EVP and chief customer experience officer. “Our partnership with Inter Miami, one of the most dynamic soccer clubs, will help fund research. It allows for our collective support of organizations like the Breast Cancer Research Foundation, Cleveland Clinic and Moffitt Cancer Center at the national and local levels.” “Inter Miami is a purpose-driven organization, and we take great pride in partnering with AutoNation, No. 154 on the Fortune 500 and a South Florida-based company that is positively impacting our

community through a creative national campaign,” added Inter Miami Managing Owner Jorge Mas. “It’s important as a sports club to take our time to partner with the right brands who not only represent our values but also help us use our platforms and reach to amplify good causes.” Every October, associates from more than 300 AutoNation locations unite on DRV PNK Across America Day to deliver thousands of comfort bags to patients battling cancer at treatment facilities. This October, in honor of Breast Cancer Awareness Month and in conjunction with DRV PNK Across America Day, AutoNation will be the presenting sponsor at an Inter Miami home match. AutoNation and Inter Miami invite fans in attendance to support the cause and their home team by wearing pink. Source: AutoNation

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Newly Adopted Florida COVID-19 Liability Shield Law is Nation’s ‘Most Aggressive’ by John Haughey, The Center Square

Florida Gov. Ron DeSantis was rocking as he signed the first bill sent to his desk by lawmakers during their 2021 legislative session—a fast-tracked measure instantly installing COVID-liability protections for businesses and health care providers. Senate Bill 72, approved by the House on March 26 in an 8331 vote, was ceremoniously signed into law by the governor March 29 as a band played the Beatles’ “With A Little Help From My Friends” in a Capitol celebration. “We don’t want to be in a situation where people are scared of being sued just for doing normal things,” DeSantis said while flanked by House Speaker Chris Sprowls, R-Palm Harbor, Senate President Wilton Simpson, R-Trilby, and Chief Financial Officer Jimmy Patronis. “We want folks to be able to live their lives, provide opportunities for people to do different things and then let individuals make the decisions about what they want to do,” he added. SB 72, sponsored by Sen. Jeﬀ Brandes, R-St. Petersburg, was drafted from American Legislative Exchange Council (ALEC) model

legislation to extend COVID-19 protections to businesses, schools, nonprofits, religious institutions and health care providers that make “good-faith efforts” to follow government health guidelines. Under SB 72 and House companion, House Bill 7, filed by Rep. Lawrence McClure, R-Dover, a plaintiff filing a COVID-19 lawsuit must prove with “clear and convincing evidence” a defendant acted with “gross negligence.” The new law—which went into effect with DeSantis’ signature but does not apply retroactively to filed suits—requires plaintiffs obtain affidavits from physicians attesting defendants’ acts or omissions caused damages, injuries or deaths. In addition, the law raises the standard of proof in COVID-19 related lawsuits from the usual “preponderance of evidence” to “clear and convincing evidence” and requires cases be brought within one year of an alleged COVID-19-related problem. “This is the most aggressive COVID liability protection bill in the United States of America,” Sprowls said. Proponents, including business associations spearheaded by the Florida Chamber of Commerce, fear an avalanche of “predatory”

lawsuits could cripple economic recovery from the pandemic. “Florida’s businesses and health care facilities that continue to do their best to keep employees, customers and patients safe will no longer have to fear frivolous lawsuits as they continue relaunching Florida’s economy,” Chamber CEO Mark Wilson said. “By signing this bill into law, Florida has once again acted decisively, and demonstrated to the rest of the nation that states can protect consumers and allow the economy to continue to prosper,” Florida Council of 100 Chair Syd Kitson said in a statement. “As a result, Florida is attracting entrepreneurs and companies from other states.” Originally, SB 72/HB 7 precluded the health care industry with protections for providers, hospitals, clinics and physicians addressed in a separate Senate-House companion bill. That measure was merged by the Senate Rules Committee on March 11 into SB 72, which was

subsequently approved by the Senate, 24-15, on March 18, sending it to the House and, on March 29, to DeSantis’ desk. Incorporating SB 74’s health care protections into SB 72 was necessary expediency, Simpson said. “We had businesses, front line workers and health care that in the face of the tragedy they were facing last March, April and May had to go to work every day,” she said. “This bill was essential to protect those folks.” All state legislatures during 2020 and 2021 sessions have deliberated on COVID-19 liability protections for businesses with Louisiana the only exception this year because its legislature hasn’t convened yet. Florida’s SB 72 is similar to bills being considered or already adopted in Missouri, Nebraska, Montana, New Hampshire, North Dakota and Indiana. We thank The Center Square for reprint permission.

Gerber Collision & Glass Acquires 3 Repair Centers in Tallahassee, FL The Boyd Group Inc. announced the acquisition of three collision repair centers in Tallahassee, FL. These locations operated as Universal Collision, the first opening in 2001. Tallahassee is the state capital of Florida, county seat of Leon County and home to Florida State University and Florida A&M universities. With a population approaching 200,000 people, Tallahassee is the eighth largest city in Florida in a metropolitan area of approximately 390,000. “Acquiring these high-performing repair centers will help introduce our brand to new custom-

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ers and better serve our insurance partners,” said Kevin Burnett, COO of Gerber Collision & Glass. “We look forward to delivering high-quality collision and glass repair and outstanding customer service to this region.” The Boyd Group is continuously looking to add new collision repair locations to its existing network in Canada and the U.S. Interested collision repair center owners are asked to contact Jason Hope, vice president of business development and strategic projects, at (530) 774-3887 or jason.hope@ boydgroup.com. Source: The Boyd Group

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GM, LG Energy Solution “The addition of our second all-new Ultium battery cell plant in the U.S. with our joint venture partner LG Energy Solution is another major step in our transition to an all-electric future,” said GM Chairman and CEO Mary Barra. “The support of the state of Tennessee was an important factor in making this investment in Spring Hill possible and this type of support will be critical moving forward as we continue to take steps to transition our manufacturing footprint to support EV production.” “This partnership with General Motors will transform Tennessee into another key location for electric vehicle and battery production. It will allow us to build solid and stable U.S-based supply chains that enable everything from research, product development and production to the procurement of raw components,” said LG Energy Solution President and CEO Jonghyun Kim. “Importantly, I truly believe this coming

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$174 Billion EV Package their car’s cost by a significant amount in some cases. There have been rumblings of the $7,500 EV credit being bumped up to $10,000 per unit sold. While unconfirmed, several Washington D.C. sources have indicated the Biden administration is considering a $2,500 boost to the previous EV tax credit amount. Wedbush analyst Dan Ives commented on the possibility of the $10,000 amount earlier this week. “We are hearing from our contacts in the Beltway that $7,500 tax credit could potentially be $10,000 in terms of a credit and that’s going to be a massive catalyst not just for Tesla, but for the EV ecosystem in the U.S.,” Ives told Yahoo! Finance Live. With $100 billion out of the way and $74 billion remaining, it appears $15 billion will be used to accelerate the buildout of the electric vehicle charging infrastructure. Biden’s campaign is targeting at least 500,000 new EV charging stations.

together transcends a partnership as it marks a defining moment that will reduce emissions and help to accelerate the adoption of EVs.” The state-of-the-art Spring Hill plant will use the most advanced and efficient battery cell manufacturing processes. The plant will be extremely flexible and able to adapt to ongoing advances in technology and materials. GM’s proprietary Ultium battery technology is at the heart of the company’s strategy to compete for nearly every EV customer in the marketplace, whether they are looking for affordable transportation, luxury vehicles, work trucks, commercial trucks or high-performance machines. Ultium batteries are unique in the industry because the large-format, pouch-style cells can be stacked vertically or horizontally inside the battery pack. This allows engineers to optimize battery energy storage and layout for each vehicle design. Energy options range from 50 to 200 kilowatt hours, which could enable a GM-estimated range up to 450 miles One of the main concerns and points of non-EV owners is the lack of charging options available throughout the U.S. However, with more companies joining the EV sector, the focus on charging is becoming an evident focus of automakers moving forward. Tesla has started to plan for larger Supercharger stalls in highly populated areas. New companies like Rivian are just releasing their EV charging plans a few months ahead of their first vehicles being delivered to customers. The final $59 billion of the package will be divided into three subsections: $20 billion for electric school buses, aligning with Biden’s plan to electrify the government fleet, $25 billion for zero-emission transit vehicles, and the remaining $14 billion going to “other tax incentives.” Ultimately, the package will greatly benefit nearly any car company that will begin developing electric powertrains for the passenger or commercial market. We thank Teslarati for reprint permission.

or more on a full charge with 0-60 mph acceleration in 3 seconds. GM’s future Ultium-powered EVs are designed for Level 2 and DC fast charging. Most will have 400-volt battery packs and up to 200 kW fast charging capability while GM’s truck platform will have 800volt battery packs and 350 kW fast charging capability. With a 30-year history in the battery business, LG Energy Solution has made consistent, large-scale investments to accumulate enough stability, credibility and manufacturing experience to invent its own cutting-edge technologies. The company established its first research facility in the U.S. in the early 2000s. In 2010, the company built its first U.S battery plant in Holland, MI. Through Ultium Cells, LG Energy Solution and GM will merge their advanced technologies and capabilities to help accelerate automotive electrification. Source: GM

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ASE Launches Redesigned Website The National Institute for Automotive Service Excellence (ASE) has launched its newly redesigned website―ASE.com―to provide a centralized online gateway for technicians, employers, students, instructors and consumers. ASE is the pre-eminent independent non-profit organization, which since 1972 has worked to improve the quality of vehicle repair and service through testing and certifying automotive professionals. The new mobile-ready website features a totally new look and structure for easier navigation and robust content for enhanced functionality and learning. ASE. com is optimally organized to provide sought-after information, answers to frequently asked questions and helpful step-by-step instructions for all users. Source: ASE

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Audi Just Halted Development of New Combustion Engines by Brad Bergan, Interesting Engineering

Audi just halted the development of new combustion engines, according to an interview with CEO Markus Duesmann in a Frankfurter Allgemeine Zeitung (FAS) report. This decision came in response to the European Union’s (E.U.’s) plans for a more rigid Euro 7 emissions standard. “We will no longer develop a new combustion engine, but will adapt our existing combustion engines to new emission guidelines,” said Duesmann in the FAS report. The Euro 7 standard appears to be a “technically huge challenge with at the same time little benefit for the environment,” added the CEO. “This places extreme restrictions on the internal combustion engine,” added Duesmann. Duesmann didn’t say when Audi would sell its final new car housing an internal combustion engine. But the Audi CEO pointed to global regions where energy supply and charging infrastructure are underdeveloped during the FAS interview.

In light of these regions, Audi will continue selling combustion engines for several years, but will develop no further generations of gas or diesel engines.

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This puts Audi on a similar road to its rival auto manufacturer, Mercedes-Benz. Recently, Markus Schäfer, a board member accountable for Mercedes’ development, said his company will also develop no more combustion engines. “This means that the bulk of the investments can now really go into electromobility,” said Schäfer to Handelsblatt, according to an Elec-

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trive report. Audi plans to follow the same path, offering 20 all-electric vehicles in the next five years. Taking a cue from its parent company, Volkswagen’s, MEB, Audi hopes the Q4 e-tron will bring in new customer groups—since the large SUV e-tron and the Taycan-inspired e-tron GT were released. Audi intends the Q4 e-tron to be “affordable for many people and the entry into e-mobility at Audi,” said Duesmann in the FAS report. “It will sell well and ensure significant unit sales,” and will be assembled at the VW facility in Zwickau. During Volkswagen’s “Power Day,” Duesmann also said the electric sedan—which began as part of the Artemis project—would launch to the market at the end of 2024. He also suggested the vehicle would be the first in the group to use the new cell-to-pack technology of the unit battery cell, which

ultimately reduces the complexity of battery cells and lowers costs. Duesmann avoided definitive estimates of whether the new vehicle will be at the IAA this fall, in Munich for the first time, but not because of the vehicle’s development: “[T]he pandemic is progressing so unpredictably that my confidence is honestly limited at the moment.” The auto world is transforming as world governments push for more sustainable or all-electric mandates and regulations on the use of combustion engines and fossil fuels generally. While many consider Tesla the current leader in the all-electric rollout, the coming decade could see other major automotive players rapidly close this lead, as the full manufacturing power of heavy-hitting automakers pivots to 21st century technology. This was a breaking story and was regularly updated as new information became available. We thank Interesting Engineering for reprint permission.

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Honda Donates Portable Generators

‘Who Pays for What?’ Survey Finds More Than Half of Shops Paid Regularly to Mask Engine Compartment

Honda is donating its EG2800i portable electrical generators to state and county health departments to provide on-site power to vaccination clinics in Alabama, California, Georgia, Indiana, Ohio, North Carolina and South Carolina, where Honda has major operations. The portable generators will provide reliable power for lighting and computer usage, as well as refrigerators and freezers critical for maintaining COVID-19 vaccines within manufacturer-recommended temperature ranges. Honda is working with state and county officials to provide each state with 10 Honda EG2800i portable generators. The generators are being allocated to state or county health departments based on each state’s vaccination distribution plan. Portable generators can provide essential power for mobile vaccination centers that are being used to get vaccines to hard-to-reach areas and vulnerable or underserved populations. Source: Honda

When Collision Advice and CRASH Network conducted their first “Who Pays for What?” survey in 2015, only about one-third of shops said they were paid “always” or “most of the time” by the eight largest insurers for the labor necessary to mask a vehicle’s engine compartment when it was needed as part of refinishing. Since then, that figure has climbed 16 percentage points, with more than half—51%—of the more than 500 shops responding to the question in January of this year reporting they are being paid regularly for that labor operation. “I think our surveys have helped raise shops’ awareness of not-included procedures they may be doing without making an informed decision as to whether it’s something they will charge for,” said Mike Anderson of Collision Advice. The survey in January offered other indications more shops have become aware that estimating system labor allowanc-

es do not include time to apply masking to protect the inner area and bolted-on items during refinishing within the engine compartment. This is often necessary following repair or replacement of core supports, aprons, frame rails, firewalls, etc. In 2015, 36% of shops acknowledged they had never sought to be paid for that operation; this year, just 25% of survey respondents said that. Shops may have become better at explaining and documenting the need to mask the engine compartment because among those shops that bill for that labor, only 1 in 5 said they are never paid for it; double that percentage said that six years ago. “Just completing the survey can be a good reminder of a couple dozen such procedures, and the survey report we produce with the findings can be a good training tool for shop staff,” Anderson said. The latest quarterly “Who

Pays for What?” survey is now open through the month of April. It focuses on “not-included” body labor operations. Shops can take the survey at https://www.surveymonkey.com/r/NPKX7FW Survey participants receive a free report with complete survey findings along with analysis and resources to help shops better understand and use the information presented. Anderson said the survey, which will take about 15 to 20 minutes, can be completed by anyone in a shop familiar with the shop’s billing practices and the payment practices of at least some of the largest national insurers. Each shop’s individual responses are held in the strictest confidence; only aggregated data is released. The results of previous surveys are also available online at https://www.crashnetwork.com/ collisionadvice Source: CRASH Network, Collision Advice

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Combat the Tech Talent Crisis with CREF by Chasidy Rae Sisk

With the average technician age approaching 50, shops and other collision repair industry businesses are in desperate need of qualified entry-level staff to fill positions as technicians age out. The industry has a major problem, but by supporting the schools that educate future collision repair employees, the Collision Repair Education Foundation (CREF) offers the solution. CREF is a nonprofit organization that facilitates the industry’s generosity by investing in collision repair educational programs around the country, helping equip school shops and funding student scholarships, among many other endeavors that serve to attract, properly train and retain more qualified collision professionals.

Since 2009, CREF has been able to provide more than $300 million in support to schools and students through the industry’s donations. Supporting CREF’s initiatives is a lot easier—and less time-consuming—than industry professionals often realize. Because collision educational programs are frequently underfunded, instructors’ biggest needed are used parts, especially fenders, hoods and bumper covers— just like the ones discarded by shops every day. Most programs rely on older vehicle parts to train their students;

without being able to learn on current model vehicles, students do not receive the education necessary to become a useful and productive entry-level technician after graduation.

Schools also need updated tools and equipment to ensure students are learning on the same technology they’ll be using at their future shop, and when a shop upgrades, CREF can help identify a local school in need. Industry supporters can also promote the industry’s professionalism by sponsoring student uniforms, which include a company logo. Monetary donations help CREF fund school grants and student scholarships, and in addition to donations being tax-deductible, donors can feel confident their contributions make the desired impact, since CREF’s lean operations ensure 90% of all donations are invested in schools. CREF also offers initiatives to help the schools’ shops look more professional, even looking outside the industry for help with initiatives like providing new floors to combat the dungeon-like appearance of many shops. “Limited budgets don’t allow instructors to worry about the shop’s appearance, but to attract the best students, we need to present the best possible image of the collision repair industry and promote the professionalism of this career path,” said Brandon Eckenrode, director of development for CREF. “We have to change the public’s mindset about this being a viable career option.” Instructors have responded very favorably to the industry’s support,

which helps them better educate their students, but schools are always seeking guest speakers, shop tours, mentors and advisory committee members as well. CREF encourages industry professionals to get involved with their local schools to get in front of future industry professionals. Getting students employed after graduation is another important effort CREF has undertaken with the industry’s support. CREF hosts physical and virtual career fairs, where they offer interview workshops and resume advice to students. This also provides a great opportunity to introduce industry employers to recent graduates who are well-trained on current model vehicles using advanced equipment and modern tools, ready to start in their shop. When the industry invests in the schools training their future employees, everyone benefits. “There are roughly 1,000 collision education programs around the country, and they need the industry’s support to train the professionals

that will be working on our vehicles after an accident,” according to Eckenrode. “We want to make sure students are skilled before they start repairing vehicles, and then we want to get them employed so we can start addressing the industry’s aging workforce issue.”

For information on how to donate to programs supported by CREF, visit CollisionEducationFoundation.org or contact Brandon Eckenrode, director of development, at 312-231-0258 or Brandon. Eckenrode@ed-foundation.org. Source: CREF

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MINI Will Switch to Fully-Electric Vehicles By Early 2030s by Andrei Nedelea, Inside EVs

Automakers are scrambling these days to not only churn out more and more electric and electrified vehicles, but also to stop making fuel-burning vehicles as soon as possible. MINI seems like it’s one of the most ambitious in this regard, with the BMW-owned brand announcing its goal to launch its last-ever internal combustion-engined vehicle in 2025, and to not have any more of them for sale by the early 2030s. The news was broken by Oliver Zipse, BMW chairman, who mentioned it during the BMW Annual Conference 2021 that mainly focused on the reveal of the production spec BMW i4 electric sedan. If MINI does stay true to the claims, it will rid itself of ICE quicker than its parent brand, BMW, and it wants full EVs to account for half of its annual sales by the year 2027. Right now, MINI only has one

pure-EV in its roster, the Cooper SE two-door, which will eventually be joined by a four-door hatch variant. However, MINI plans to launch more EVs after 2023 when it expects to complete work on a new electric car platform which it is jointly developing with China’s Great Wall Motors. The first model to be underpinned by this new platform is believed to be the next-gen MINI Countryman, which will be sold both with ICE power as well as a fully-electric powertrain. BMW says this new Countryman crossover will debut in 2023 and will be assembled at BMW’s plant in Leipzig; electric MINIs will also be built in China starting the same year, through the collaboration with Great Wall. We thank Inside EVs for reprint permission.

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It’s Official, Ferrari Will Have Its Fully Electric Supercar in 2025 by Fabienne Lang, Interesting Engineering

At Ferrari’s annual shareholder meeting April 15, interim CEO John Elkann announced three new models will be revealed over 2021. And Elkann didn’t stop there: Ferrari will also unveil its first fully electric supercar in 2025. That’s right, Ferrari will be developing an electric vehicle, and Elkann’s excitement is palpable: “[...] You can be sure this will be everything you dream the engineers and designers at Maranello can imagine for such a landmark in our history.” We have no doubt about it, Ferrari. It’s a clear goal in Ferrari’s electrification strategy, as Elkann said, “We are continuing to execute our electrification strategy in a highly disciplined way.” It already showed its move toward EVs with its SF90 Stradale, the first-ever Ferrari to feature Plugin Hybrid Electric Vehicle. You’ll have to keep biting your nails in anticipation because that’s about all the information Elkann

and the Ferrari team disclosed about its upcoming EV. Regardless, it’ll surely be an impressive EV. What we do know, however, is Ferrari will be busy over the next few months as it unveils three new models into our midst. On top of that, Elkann reiterated the news the team will return to Le Mans in 2023. In his words, Elkann explained how “This presents another opportunity for us to compete at the highest levels, testing the boundaries of technology on the track and then transferring our knowledge to the matchless pedigree and driving experience of a new generation of Ferrari road cars. ”The company is also still searching for a new CEO, who will undoubtedly have their hands full with all the exciting upcoming work Ferrari has already set out. Ferrari has been known for its meticulous engineering and design, and there’s little doubt it’ll continue doing so. We’re just excited to see what will be unveiled in the coming months and years. We thank Interesting Engineering for reprint permission.

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EV Market Declined in 2020

Record-Breaking 78 AutoNation Dealerships Certified as J.D. Power 2021 Dealers of Excellence

While the fleet market took a hit like most other industries due to the pandemic, the electric vehicle sales declined by only 14% compared to the overall vehicle sales decline of 28% in 2020, said Beroe Inc. The fleet management companies and car leasing companies are steadily increasing their dependency on electric vehicles as large MNCs have started framing electric vehicle policies. These car fleet management companies are piloting EVs in multiple countries and providing incentives to their staff for adopting this more environment-friendly mode of travel. This trend will see an upward surge in the next couple of years. The reason for the thrust on electric vehicles comes from the increasing interest in investing in alternative fuel options, said the report. Governments are offering tax subsidies and incentives that have driven up EV sales. The debate on carbon emission has pressed organizations to look at zero-emission options. Source: Beroe, Inc.

Demonstrating its commitment to exceeding customer expectations, AutoNation, Inc., America’s largest automotive retailer, on April 15 announced 78 AutoNation stores have been certified in the J.D. Power 2021 Dealer of Excellence Program. This program recognizes a very selective number of retail dealerships throughout the U.S. that provide an exceptional customer sales experience and once again, AutoNation was the clear leader. “This certification is an outstanding accomplishment for our teams. Last year we set the bar with 54 stores receiving the J.D. Power Dealer of Excellence recognition. These 54 stores again received the recognition with 24 new stores added this year. We could not be prouder,” said Jim Bender, president and COO at AutoNation. “This recognition amplifies AutoNation’s commitment to providing a peerless customer experience as the clear industry leader and every member of our

Volkswagen Group Has Plans to Switch to Single Electric Car Platform by Steven Loveday, Inside EVs

According to Autocar, Volkswagen Group will move to a single EV platform for most cars from most brands in the future. The new platform will replace the current MBE and PPE architecture. VW is developing it via its Project Trinity. Autocar says VW launched Project Trinity with the specific intention to develop its upcoming Scalable Systems Platform (SSP), which is “heavily based” on the MEB and PPE architecture. VW calls the SSP architecture “fully digital and highly scalable.” Volkswagen doesn’t plan to implement the new SSP platform until 2024 or 2025. It will first launch as part of Audi’s Project Artemis. “The SSP platform will replace the existing platforms over a long period of time,” said VW Group Chief Herbert Diess in an interview with Autocar. “The start-up will begin with Artemis in 2024/2025. We’re taking what we’ve got with the MEB, and we’ll have cost improvement and stan-

dardisation of the battery, which goes hand-in-hand with a new electronic architecture providing more computing power to the vehicles. The SSP will eventually be the single backbone for the Group, we’re talking beyond 2035 here.” Keep in mind, we just reported the other day Diess wants VW to develop and produce its own in-house software, much like Tesla. He said third-party fixes are not the answer. The new SSP platform, while still far off, may serve as a major part of that plan. It has a focus on standardized platforms for software, batteries and mobility services among most VW Group future models. Diess pointed out this platform sharing will help increase economies of scale, which VW Group must lean on to succeed in the segment. The automaker has also made significant investments in its “Car. Software” division, with plans to launch a next-gen VW operating system to coincide with the SSP architecture. We thank Inside EVs for reprint permission.

team shares in this achievement.” Known for its “Voice of the Customer” research for more than 50 years, J.D. Power and, subsequently, its Dealer of Excellence Program help consumers identify leading retailers that will go the extra mile. According to J.D. Power, buying a vehicle is a significant financial transaction and can be stressful because there’s so much information to digest. The Dealer of Excellence Program assists auto buyers who are looking for an exceptional dealership where they can confidently buy a vehicle. Certified dealers also benefit by leveraging the J.D. Power brand and promoting their dealership’s commitment to an outstanding customer purchase experience. Dealer of Excellence is an exclusive program and not all dealerships can qualify. Those that do must pass a three-step process. As the first qualification criterion, J.D. Power limits the percentage of eligible dealerships by

nameplate based on each brand’s performance in the most recent J.D. Power U.S. Sales Satisfaction Index (SSI) Study. Thus, proportionally more dealerships from top-performing brands can become a J.D. Power Dealer of Excellence. Second, dealerships must rank among their brand’s top performers in key customer satisfaction areas consistent with measurements found in the SSI Study. Finally, qualifying dealers must pass an audit to show they meet or exceed J.D. Power sales best practices. Those best practices include, but are not limited to, listing vehicle inventory and pricing on the dealership website, negotiating in an efficient and transparent manner, offering a fair trade-in value and presenting a clear and easy-to-understand menu of finance and insurance products. Source: AutoNation

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Chip Shortage Saga: Ford F-150 And Edge to Be Built Without Certain Electronic Modules by Brad Anderson, CarScoops

Ford will produce the F-150 pickup truck and Edge SUV without certain parts due to the ongoing semiconductor shortage. A Ford spokeswoman has confirmed the automaker will build vehicles and hold them for several weeks until they can be completed and shipped to dealerships. The F-150 and Edge are being assembled without some electronic modules, although Ford did not specify the suppliers it sources these parts from. The same spokeswoman told Reuters the parts needed are used to operate functions like the windshield wiper motors and infotainment systems. In response to the shortage, Ford is also canceling the late Thursday shift and both Friday shifts at its Louisville Assembly Plant that builds the Ford Escape and Lincoln Corsair. Production will resume on short shifts March 22 and return to full capacity March 23. Ford is also idling produc-

tion at its Cologne, Germany site, where the Fiesta is built, on March 22, having previously idled production from March 1 through March 16.

Word of Ford producing the F-150 and Edge without some parts comes shortly after it was confirmed General Motors is building certain 2021 pickup trucks fitted with its 3.5-liter EcoTec3 V8 engine without its Active Fuel Management system that handles cylinder deactivation. This will lower the fuel economy of impacted models by one mile per gallon. Ford has previously committed to prioritizing and allocating chips to its highest-margin vehicles like the F-150 when possible. We thank CarScoops for reprint permission.

26 MAY 2021 AUTOBODY NEWS / autobodynews.com

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

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Freeway Honda Birmingham

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Nalley Honda

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28 MAY 2021 AUTOBODY NEWS / autobodynews.com

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with Ed Attanasio

Shop Strategies

Stacey Phillips is an award-winning 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.

with Stacey Phillips

How a Shop Owner Enhanced Employee Culture While Providing Outstanding Service During COVID-19

Body Shops Giving Back

We got stuck on all reading one Clay Hoberecht, owner of Best Body ing time looking at disaster loans or Shop in Kansas, said he is crazy about Paycheck Protection Program (PPP) book for a while, but now we’re loans and figuring out what the best choosing separate books. I’m readthree things: his with customers, their cars Stacey Phillips fit is. Other times, it is working on ing “Never Split the Difference” by and his team. “We want rabid fans, not just the shop flow, learning how to fix Chris Voss. A couple of guys just vehicles better, training or spending finished reading “Can’t Hurt Me” by satisfied customers,” said Hoberecht. David Goggins. With a passion for repairing ve- time with the team. We shut down for 40 days and Another good book is “The hicles correctly, Hoberecht said his team works hard to provide outstand- used that time as an opportunity Five Dysfunctions of a Team” by with Stacey Phillips ing customer service by maintaining to continue moving forward in our Patrick Lencioni. That author also wrote a book called “Geta culture of humility and expertise. ting Naked,” which is about “We are driven to succeed and being transparent with your have a hunger for knowledge,” he teammates. That one, in said. particular, has made a sigHoberecht and his wife, Barbanificant difference in our ra, started the Wichita business in a with Stacey Phillips shop’s culture. 2,700-square foot facility in 2014. Recently, I was talking Over the years, the operation exto Mike, my painter, about panded. They eventually purchased being vulnerable and transthe building next door, increasing parent with each other. We their space to 10,000 square feet both felt that our team now and focusing on collision repair, Clay and Barbara Hoberecht opened Best Body Shop in has a better level of trust body painting, paintless dent repair Wichita, KS, in 2014 with Victoria Antonelli than we ever had. There (PDR), car restoration, hail damage business and not retract it. During was obviously a milestone of educaand other services. Autobody News asked Hoberecht that 40 days, we rebuilt the en- tion that has made a major change in how the shop owner has enhanced tire shop, invested in new Spanesi our shop’s culture. his culture with employees during equipment and tools, and focused How did you adapt your busiCOVID-19 while providing outstand- on training and Standard Operating Procedures (SOPs). ness once it opened again? ing customer service. with Ed Attanasio Timothy W. Morgan, chief opWhen we opened the shop When the pandemic first erating officer at Spanesi Americas, back up to the public, it was broke out a year ago, how did was instrumental in helping Best Body Shop achieve this. Things are like a frenzy. We offered a discount you and your wife react? going exceptionally well right now. to customers, which was a big part of how we became busy really quickly. Without a shadow of a doubt, What steps did you take to That busy-ness stayed for quite a few the last year has been intense. with Gary build a team environment and months. Between the political issuesLedoux and During the presidential race, we COVID-19, the market has been how has it impacted the culture at your shop? noticed a major slump and the shop volatile. slowed down. There was a lot of tenThe No. 1 thing Barb and I did I wanted to get to know my sion in the air and I don’t think people right off the bat when we very first employees better and found cared about the aesthetics of their vestarted seeing a downturn in the economy is we immediately went this was a great opportunity to do hicle. Once that passed―whether or withwith Stacey Phillips that. As a team, we began to read a not you liked the results―it seemed into protection mode our business. We made the decision to have lot of books about culture, trust and there was a little bit of pressure reno retraction whatsoever and agreed building a team that can reply on one lieved in the market and business another. Then we discussed what we ramped up again. to move forward no matter what. We’ve also noticed a ramp-up From then on, we made sure learned. I shared my heart with the team in our production ability because of that every move we made was not a retraction. We were able to hold each and told them that I didn’t want to the trust we built with the employother accountable, and Mike the team was be the one picking out the books all ees. I felt like we had a strong culwith Anderson the time. This isn’t a school and I’m ture before, but it is mind-blowing able to hold us accountable. Sometimes, moving forward not their dad. I wanted to see their that enhancing it during COVID has doesn’t mean getting a lot of cars interest in personal growth and I’m made such a difference. It’s like we are a well-oiled machine. in the shop. It might mean spend- happy to say that we’ve seen that.

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From the Desk of Mike Anderson

What are some of the procedures you’ve implemented for customers?

We’ve had an appreciation for our customer base but that has grown over time, especially now. Customers come in and tell us that they want to support small businesses and we want to show our appreciation to them. As a result, we have done anything and everything we can to go above and beyond for customers. This includes providing a concierge service. We have been a lot more open to picking up and delivering people. Our customer service representative (CSR)’s main focus is to build relationships with customers. We spent a tremendous amount of time consistently going over what can we do that is above and beyond. Once a month, Barbara, myself and Josh, our CSR, sit down and pick five customers who have either referred work to our shop or had their car repaired here. We do tremendous research to find out what they like and purchase a gift for them. We’ve bought autographed jerseys, baseballs, barbecue kits and even a gun holster. We want to show our appreciation to those who are supporting our business. During times of extreme behavior, such as COVID-19, there are extremes on both sides. As a result, I’ve seen more giving hearts and more empathy and sympathy than I’ve ever seen. We want to be part of the solution and not part of the problem no matter what is going on that is creating this craziness in society. We have no desire to compete with other shops. We want to dominate and compete with ourselves.

What is your advice to other shop owners who are reinventing their business right now due to COVID-19?

I receive a tremendous amount of phone calls from shops across the country. Many people I See Service During COVID, Page 40

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with Stacey Phillips

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.

Have We Handcuffed Employees from Providing Extraordinary Customer Service? I’m concerned some of you may read the first paragraphs of this column, and presume it’s about customer satisfaction indexing (CSI)― it’s not―and decide to move on. Or you may think it’s about online reviews―it’s not, really―and decide to move on. So please stick with me here. I’m going to talk about CSI and online reviews, but only as an introduction. It’s no secret for years many insurance companies have conducted―or asked their direct repair shops to conduct―CSI surveys. Many body shops track CSI on their own, regardless of whether a job is done under a DRP or not. And in recent years, more automakers have added CSI requirements for the shops in their certification programs. It all makes sense. Insurers and automakers want to make sure the mutual customers they refer to shops are being kept informed during repairs, are receiving their repaired vehicle back in a timely manner, etc. They want to make sure their brand is being protected. For shop owners, CSI makes good sense as well, particularly as a shop’s volume or location count increases. When I owned multiple shops, I used CSI to help identify “blind spots” in my business. Since I couldn’t touch every single car, CSI results helped me ensure my employees were providing the same quality of repairs and customer service I would personally. So to be clear: CSI is useful and valuable. It’s helped our industry reach “net-promoter” scores that are better than those found in so many other industries. But I believe online reviews are becoming equally important for shops. Consumers increasingly have a “trust but verify” mentality. In a column I wrote a couple years ago, I shared a story about the time my friend Greg’s son and daughter-in-law didn’t go to a restaurant Greg had highly recommended, because that restaurant’s online reviews

weren’t as good as others the son looked up. Greg’s son used online reviews to verify whether his own father’s referral could be trusted. Given that, do you think consumers are going to trust a shop re-

ferral from an insurance company or an automaker without verifying by checking the shop’s online reviews? Maybe my 84-year-old father isn’t going to do check those reviews, but my niece in her 30s definitely will. So that makes online reviews increasingly important as these generational shifts continue. Part of what this brings to mind is something I learned from Ryan Taylor at Bodyshop Booster: “People are more afraid of making a wrong decision than they are of spending money.” Think about it: Have you ever passed over a lower-priced option for something you were buying because you were leery the cheaper one could be a mistake? Have you ever sorted your search results on Amazon based on average customer reviews rather than price? I know I have. And think about this: How much are online customer reviews influencing your ranking in search results? State Farm is among the insurance companies using a shop locator that now includes online review scores. Some of the automakers have done this as well. Anyone who Googles “best auto body shop near me” is going to see only shops with a four-star rating or better―even if others are closer. That search may bring up four or five shops, but if the consumer conducts a voice-activated search, their device is likely to suggest only the one shop―

the one with the best online reviews. I think connected cars are only going to accelerate the use of voice-activated search. Try it yourself: Ask your phone something like, “Hey, Siri, what’s the best auto body shop near me?” Is your shop the one that’s suggested? But as I said at the start, my message here is about something bigger than CSI scores and online reviews. It’s about figuring out how you can differentiate yourself by providing exceptional customer service, creating a memorable or―not to sound like Disney―a magical experience for your customers. Why? I think as an industry, most shops have developed ways to ensure customers will answer the three or four basic CSI questions positively.

We’ve found ways to keep them informed, to ensure their vehicle is returned on time, etc. That’s part of how CSI has made us better as an industry. And of course those things are, and will continue to be, very important elements to our business. But as we’ve crafted our customer service around just those things, I think we may have handcuffed our team, limiting how much they think outside the box in terms of providing exceptional, memorable service. That’s why I think the additional power of open-ended online customer reviews will open new opportunities for your business to set itself apart. What does that memorable or magical customer experience look like? I’ll be honest: I don’t know. In talking about this with my good friend Ray Chew at CCC In-

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formation Services, he told me he thinks it has to start from that first point of contact, when we first get that assignment or referral. From that point on, we need to be looking for opportunities to wow that customer, to turn what they might perceive as a bad situation into a great experience.

than I should have, I managed to drop one, cracking open a watermelon and most of a dozen eggs―the equivalent of “one-time-use parts” in the world of groceries. About 20 minutes later, there was a knock at my door. There was the young grocery delivery guy with another watermelon and carton of

“People are more afraid of making a wrong decision than they are of spending money.” — Ryan Taylor An example: How often have we had a customer call to say they left their sunglasses or phone charger in their car when they dropped it at the shop? Once you locate the item in the car, do you just tell them how late you are open if they want to pick it up―or does someone offer to drop it off at their home or work? It’s a little thing, but a kind, convenient gesture customers may well mention as part of a five-star online review. I can point to something similar in my own life recently. I had groceries delivered to my home, and in trying to pick up more of the bags

eggs for me. He wasn’t the person responsible for the busted groceries. He didn’t even work for the grocery store; he was a subcontractor who did this on his own. You better believe that turned an otherwise mundane transaction into a memorable experience to share in an online review. That’s the sort of thing your employees need to be empowered to do. It will be key to helping your business thrive as online reviews expand the customer experience beyond the basic building blocks of CSI.

Tesla Insurance Poised for Launch in Several More States by Simon Alvarez, Teslarati

Tesla seems to be hitting its stride with the rollout of its in-house insurance service, with the electric car maker looking to expand the business outside California. The first of these new states are Texas, Illinois and Washington. Tesla Insurance was launched in 2019 partly as a way to provide electric vehicle owners with an insurance option that is fair and tailored for sustainable cars. The service is available in California for now, though Tesla executives have noted there are plans to expand the service to the rest of the U.S. Tesla has also planned a rollout to other countries such as Israel, China and several areas in Europe. State National Insurance Company underwrites Tesla Insurance in California. Recent updates from S&P Global Market Intelligence reveal Texas and Illinois’ insurance regulators have already approved the rates and policies for Tesla Insurance. Washington has approved the initial forms for the local rollout of Tesla’s in-house insurance service.

As per a report from Forbes, Tesla is planning to issue its inhouse insurance service in Texas through Redpoint County Mutual Insurance. In Illinois, Tesla will be partnering with Midvale Indemnity Co., a subsidiary of American Family Insurance. Filings with Washington regulators from earlier this year note Tesla is looking to tap Homesite Insurance Co., another American Family Insurance subsidiary, for its in-house insurance rollout there. So far, Tesla Insurance coverage has not formally started in Texas, Illinois or Washington. Tesla Insurance may be a small part of the company’s business for now, but Tom Super, vice president of insurance intelligence at market research company J.D. Power, has noted the service has the potential to be a disruptor on its own. In a statement to the publication, Super remarked Tesla’s in-house insurance service could “represent a viable long-term threat” to traditional and veteran auto insurance firms like Allstate and GEICO. We thank Teslarati for reprint permission.

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Historical Snapshot with John Yoswick

Associations Assembling 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@gmail.com.

WIN Webinar Explores What’s NEXT for Auto Body in the Digital World

Southeast News

On International Women’s Day on hicles involved in accidents will be March 8, Elaina Farnsworth, CEO more expensive to fix. of The NEXTwith Education, shared Chasidy Rae Sisk“Range of vision is important to insights on “What’s NEXT for the think about as a repairer. We need to Future Autobody Worker in Our know how the sensors interact and Emerging Digital World,” during a what they’re expected to do,” Farnwebinar hosted by the Women’s In- sworth added. “Be careful of the dustry Network (WIN). sensors and the cameras when you “Never before have we seen repair connected vehicles―these with Rae Sisk such a change in how Chasidy transportation features provide enhanced safety has been done,” Farnsworth began. and mobility. Each have different re“We are experiencing a wonderful quirements for speed, security, disperiod of growth, and the industry tance and bandwidth.” needs as many women as Farnsworth believes it’s possible.” important for the collision Chasidy Rae Sisk repair industry to “underReferencingwith technologies, such as intelligent instand where we are today frastructure, self-driving and but also where we’re going. autonomous vehicles and A lot of development is beconnected cars, Farnsworth ing done around WiFi and pointed out, “If we Chasidy don’t Elaina Farnsworth with Rae Sisk 5G, which will come to fruhave technicians who really ition in the near future. It’s understand the technology, all this important to understand all the ways great technology is worthless. We fo- these vehicles communicate because cus on growing the person, who can it could impact your diagnosis. then become an agent of change and “Repairers will follow a differgrow the industry.” ent diagnostic process with these vewith Chasidy Rae Sisk Connected vehicles (CV) are hicles, and we need to think about cars that talk to one another. Many how we will need to diagnose them modern vehicles already include a differently as vehicles evolve.” variety of wireless communications, Although automated and auinformation and entertainment sys- tonomous vehicles (AVs) are often tems, such as GPS, smartphone grouped together, they are not the with ChasidylinkRae Sisk ing and automated incident reporting. same. CVs provide the ability to equip ve“Automated refers to vehicles hicles with bidirectional communica- that have a capability to steer, acceltion using any protocol connectivity erate and brake under certain road, wirelessly, as well as the ability to al- weather and traffic systems, while a withtoChasidy Rae Sisk low vehicles access both wireless fully autonomous vehicles does not and networked devices inside and require a driver for any road, weathoutside of the vehicle itself. er or traffic condition,” Farnsworth According to Frost & Sullivan, explained. “Currently, there are no 20% of vehicles in North America fully autonomous vehicles in the will have telematics capabilities by world; they are all level 4 and limitwith Chasidy Rae Sisk 2025, and nearly 80% of vehicles ed to dry, well-marked and generally will contain some sort of connected flat roads in good weather and usualcapability by 2030. ly light traffic.” Connectivity provides an opFarnsworth provided examportunity to optimize traffic man- ples of systems found in automatagement, reduce collisions and pro- ed vehicles. Adaptive cruise convide travel information, according to trol down to a stop builds on basic with Ed Attanasio Farnsworth. adaptive cruise control but allows “There are a lot of electronics the system to function down to a going on inside a connected vehicle, full standstill, “an important next and though the industry is likely to step to manage bumper-to-bumper see fewer collisions in the future, ve- traffic,” she said.

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Lane-center steering builds upon lane-departure steering assist, which only intervenes as a vehicle approaches or crosses the lane markings. The lane-center steering system actively centers the vehicle in its lane by tracking lane markings and/or the vehicle ahead. Although these systems can often navigate mild curves, they typically require the driver’s hands to remain on the wheel and will issue warnings and eventually deactivate if they sense a lack of steering force. Hands-free steering centers the cars without requiring the driver’s hands on the wheel, though it still requires the driver to pay attention. OEMs are currently leading development, with GM leading in execution for connected and automated vehicles, while Ford vaults ahead in strategy. “The news constantly reports

partnership announcements, as well as some mergers and acquisitions,” Farnsworth said. “In addition to the traditional OEMs, companies like Apple and Google are beginning to play a role in vehicle technologies; they’re even toying with the idea of building their own cars. Lots of new players are entering the market, and it’s definitely not going anywhere. As that segment of the industry grows, there will be more opportunities for others to join in.” Explaining why CVs and AVs matter to repairers, Farnsworth said, “Sensor-based blind zone and cross traffic alerts get knocked around in crashes, and ADAS are proliferating in lower-priced vehicles. All new light vehicles will have backup cameras, and the industry has agreed to make automatic braking and forward collision warning systems standard by 2022.

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with Ed Attanasio

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“Replacing a sensor torn off a car’s front end and swept up at a crash site can require a body shop diagnostic technician to go far beyond looking up a vehicle identification number to see what ADAS technology was original equipment.” Repairing AVs also requires knowledge about repair and replacement of sensors, knowledge of electrical theory and information technology, and understanding of ADAS technology. “ADAS assist drivers in driving and parking functions,” Farnsworth said. “Through a safe human-machine interface, ADAS increase car and road safety, using automated technology, such as sensors and cameras, to detect nearby obstacles or driver errors, and respond accordingly. ADAS are developed to automate, adapt and enhance vehicle systems for safety and better driving. Although cars with ADAS are involved in fewer collisions, these systems are the costliest to repair.” Discussing the number of sensors on a modern vehicle, which can exceed 100, Farnsworth pointed out even the headlights and tires con-

tain sensors, and she predicted more sensors will be added to vehicles as they evolve. The addition of so many sensors necessitates scanning and calibration procedures. “Sensors are the eyes and ears of ADAS, and when ADAS need to be serviced, it requires special equipment, operated by a specially trained technican,” she noted. “Many previously simple repairs now require ADAS calibration, which includes cameras, sensors and controllers, and requires specialized tooling and equipment.” Farnsworth reminded, “ADAS systems use multiple sensors, and all need to be validated to solve the problem. In addition to the increased cost, the vehicle often requires a recalibration of the entire system, an additional cost.” How does this impact the collision repair industry? “As connected, automated and autonomous and smart cars rapidly increase, so does the demand for knowledgeable leaders, certified and credentialed employees, and skilled workers with access to the latest information, since new technologies

are being released every day,” Farnsworth said. “Collisions are projected to reduce, but the cost to repair will increase. The repair process will include the need to recalibrate sensors, which requires consistent up to date information on new technologies and real-world experience to stay relevant.” Before ending with a Q&A session, Farnsworth encouraged attendees to “Get involved! Find out about the latest technologies available and where you can receive training. There are so many opportunities in this field, and we need to understand the various issues happening as we connect vehicles with 5G and satellites. Discover a new passion that will lead you into the new future of transportation.” For more information on The NEXT Education, visit thenexted. com. WIN will hold its 2021 Scholarship Walk virtually, April 18 through May 2. The 2021 WIN Educational Conference, also held virtually, is scheduled for May 4 and 5. For more information on WIN, visit www.womensindustrynetwork.com.

KBB Names Brand Image Winners Kelley Blue Book on March 30 announced the 2021 Brand Image Award winners, based on annual new-car buyer perception data. Award categories are calculated among luxury, non-luxury and truck shoppers. For the second year in a row and the fourth time in the past six years, Subaru wins Best Overall Brand for 2021 among non-luxury automakers. Subaru achieved the highest average score across all ratings of non-luxury models to win the Best Overall Brand. After making a notable Brand Image Awards debut last year, Tesla once again dominates among luxury automakers for 2021. Tesla wins Best Overall Luxury Brand for the second year running, achieving the highest average score across all ratings of luxury models to win the award. Toyota wins Best Overall Truck Brand in 2021 for the third year in a row. Toyota achieved the highest average score across all ratings of truck models and 12 weighted factors of importance. Source: Kelley Blue Book

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with Erica Schroeder

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.

Deciding Between Leasing and Purchasing When Adding Shop Locations

Shop Showcase

Here’s a tip: Investors might be in- ment play,” while larger MSOs conterested in buying your shop’s real sider “efficiency of capital”―what estate. will get them a greater financial rewith Ed Attanasio Gary Chou, executive vice turn. president of commercial real estate “There’s no right or wrong,” said brokerage firm Matthews Real Estate Chou, as long as someone purchasing Investment Services, said outside in- considers whether they would do betvestors such as real estate investment ter freeing up that money to open adtrusts (REITs) have recently begun to ditional shops. see collision shop properties “as a leWill Johnston, chief corporate with Ed Attanasio gitimate investment product.” development officer for Service King, “That’s helped push values of agreed there’s not one definitive ancollision properties up, because it swer to the purchase-vs-lease quesbasically increases the buyer pool tion. overall,” Chou said. “It really depends on where you Chou was speaking last fall are in your growth and how aggresduring the first MSO Symposium sively you’re growing,” Johnston with Ed Attanasio panel discussion in the event’s nine- said. “You may decide that your year history focused on issues relat- pace of growth is such you want

Social Media for Shops

SEMA Show Goes On

an acquisition, it’s the third-party landlords that can potentially really gum things up. Because they’re not the ones about to make a big payday. They may very well see it as their chance to renegotiate items within the lease.” Think carefully even about an arms-length lease you put in place with yourself or an affiliate LLC, Johnston said, because a buyer of your business may look at that lease and “expect those same terms.” Panelist Ben Hidalgo of Net Lease Development agreed, suggesting anyone leasing commercial property to or from others find an attorney who understands leasing for a specific use. A collision repair business that has even just one poorly crafted lease among its two or three or 10 locations can get “held hostage” to that, particularly at the time the owner hopes to sell the business.

Media and Publicity for Shops with Ed Attanasio

“Get a good attorney, not just a friend who does it,” Hidalgo said. “Don’t skimp on that. Get an expert in retail leasing, to get a lease that will protect you long-term.” An attorney with sufficient leasing experience will know what’s been problematic for other clients in the past, he said. Dean Fisher, president of Driven Brands’ collision group, which includes CARSTAR and Maaco, also offered his take on the purchase-vslease decision during the panel discussion. He said most of his company’s franchisees have fewer than 10 locations and tend to buy the real estate at most or all of their shops. “Most of them look at real estate as a form of the asset base that they’re building, utilizing the business to pay for the asset base,” he said. “So they’ll typically try to purSee Leasing and Purchasing, Page 43

Shop Strategies with Stacey Phillips

Body Shops Giving Back

John Walcher, top left, of Veritas Advisors moderated a panel discussion on real estate issues related to growing collision repair businesses

with Stacey Phillips

ed to real estate―and the speakers to lease that property because you focused on some topics that could be want to save capital to go after addiequally of interest to single-location tional shops. But if you’re growing collision repairers as well. with brownfields and take-overs and The new interest among inves- will be adding a lot of value to the tors in body shop real estate, for facilities you take over or that you with Stacey Phillips example, offers another option for build, you may want to benefit from a shop owner who sells the business the value [in the property] you put in to a large MSO―which is unlikely there as the operator.” to want to buy the real estate―and The terms of any lease can be wants to cash out the property rather very important, Johnston said, parthan continue as landlord. ticularly when you decide to sell Much of thewith discussion centered your business. Stacey Phillips around whether a collision repairer “The lease you’re negotiating adding a shop location―whether a now might be the lease that you’re second or 16th―should purchase assigning over to a buyer of your or lease the new location’s building business later,” he said. “It will afand real estate. fect the valuation [of the business] Chou said smaller MSOs often and certainly will affect the ease of view the purchased land as “a retire- getting that deal done. Typically in

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CCC’s 2021 Crash Course Report Offers a Glimpse of the ‘New Normal’ by Ed Attanasio

What will the “new normal” look like and how will it affect the collision repair industry? The COVID-19 pandemic has forced businesses to evaluate key issues such as supply-chain sourcing, telecommuting and how to work with insurance partners, vendors and customers. Get ready for increasing ADAS technology, fewer drivers on the road and more severe accidents due to speeding and reckless driving. In addition, more people will continue to work at home and, as a result, change the types of car insurance they choose. Recently, CCC Information Services, Inc. (CCC) unveiled its annual Crash Course report, the cumulation of a full year of research, analysis and looking for trends that can potentially impact the industry for many years to come. The person behind the report is CCC’s Director and Industry Analyst Susanna Gotsch, who authors the report every year. She wrote the first one in 1995, when ADAS was still in its infancy.Today, many shop owners worldwide covet the information presented in CCC’s Crash Course report. If you’ve been in the collision industry for more than a few years, you know CCC’s Crash Course report provides revealing industry-leading insights on the business, consumer, environmental and technology trends shaping the P&C insurance economy. This year’s report provides a substantive view of how COVID-19 reshaped the industry with shifts in driving behavior, attitudes toward personal mobility, adoption of telematics-enabled usage-based insurance, and exponential growth in the digitization of operations across the claims and repair experience. “Crash Course illustrates how COVID-19 impacted our industry and the trajectory of change moving forward,” Gotsch said. “CCC has published Crash Course for 26 years and this edition reveals unprecedented change. And though we expect some changes, like miles driven, to revert to pre-pandemic levels, we project other changes will

become the new baseline, as photos, mobile, AI and customer demands have reset expectations and changed how we work. “To help make sense of the rapidly changing market dynamics and accelerating innovations, the Crash Course team is evolving how we bring information to you,” she said. “We’re excited to deliver a unique Crash Course report each quarter in 2021, sharing the most current data

available and even timelier insights for the auto industry and related ecosystem, how people decide to buy, own, insure and drive their cars will determine, in part, how we move forward as an industry. “How these interconnected decisions and data points are shifting and changing as a result of the COVID-19 pandemic is important to monitor and frame in the reference of what we are seeing in the market right now.” The 130-page report draws insights from decades of experience from processing more than 200 million claims-related transactions, 50 billion miles of driving data and millions of auto BI and PIP/MedPay casualty claims. CCC is committed to providing the industry with information and data to create more visibility into what’s ahead, informing understanding to positively impact business outcomes. Key topics covered in Crash Course 2021 include: The rise of tech-enabled DIY customer experiences in insurance; how COVID-19 became the spark for consumers to take another look at usage-based insurance; why 2020 saw more severe accidents and the impact on the repair process; COVID-19’s impact on the casualty claims process and health care, and the role of vehicle technology in increasing repair costs. When people stopped driving

last March, Gotsch witnessed some very distinctive trends that appeared overnight. “Everything that happened was the byproduct of the fact that people stopped driving,” she said. “It meant that there was less congestion, which led to things such as erratic driving habits, speeding and more cases of distracted driving. “There were more younger drivers on the road than normal because elderly people were also driving less due to their compromised health and other reasons. Younger drivers equal more distracted driving, as well as drunk driving and drug-related driving. It led to a riskier, faster and more dangerous cocktail of driving behavior. “California and less-populated states such as Wyoming and Nebraska reported a huge spike in the total number of citations that were written for drivers who were driving in excess of 100 mph, for example.

“The numbers of people who die every year in this country are equivalent to a 747 crashing every day without any survivors, but people don’t seem to want to understand how broad the devastation actually is,” Gotsch said. “People say that it’s more dangerous driving to the airport as opposed to getting on a plane.” As previously noted, the COVID-19 pandemic led to a significant decline in claims and congestion, logically leading to fewer but more expensive claims. Consumer preference for light trucks and vehicles loaded with the newest technology forged ahead, further driving repair complexity and higher costs. When a claim did happen, insurers offered customers new curated digital capabilities embedded with AI, helping accelerate overall cycle time at the front end by enabling the customer to make faster and more informed decisions. In 2020, carmakers didn’t slow down when it came to developing new ADAS technology, which

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means shops have to be more knowledgeable than ever about the newer models in order to survive. “With rising repair complexity and costs, repair cycle times continue to grow,” Gotsch said. “Customer satisfaction with a repair typically falls as repair costs rise, as does a customer’s corresponding satisfaction with the insurer’s handling of the claim and the customer’s willingness to recommend that shop or insurer. As repair costs rise, consumers may need more frequent updates to feel informed, and potentially increase the average service score.” Post-pandemic changes in people’s lifestyles will directly affect shops’ car counts for many years to come. “No one really knows how long it will take before people will feel safe enough to return to something resembling pre-pandemic life; what is clear is that things are likely to be different,” Gotsch said. “With the option for more individuals to work from home in the future, people may choose to relocate to be closer to family, find less expensive housing or other reasons, as we saw early in

the pandemic. “This could potentially slow the shift toward urban areas that the U.S. experienced over the last decade. Many do anticipate some share of remote work in the U.S. will be permanent.” People will continue to work at home or virtually in 2021 and beyond. If approximately 40% of jobs could be done remotely, but workers chose to do so only one day per week, there would still potentially be an impact to daily travel. Overall miles driven and trips taken might not see a significant decline, but more telework would still lead to fewer rush hour trips, less congestion in urban areas and freer movement of remaining traffic, Gotsch said. “In many ways, the pandemic environment has actually given us some idea of what the future may look like, and what that means to our industry,” she said. “Despite an estimated $18 billion in auto premiums returned to customers because of the pandemic, the percent of consumers that indicated they were ‘very satisfied’ with their auto insurance carrier fell from 68% in late March 2020

to 56% by the end of August.” As of early December, a study conducted by ENGINE CARAVAN found 50% of vehicle owners continued to drive less, with 54% of those who reported driving less posting at least a 50% decline in miles driven, according to CCC’s Crash Course report. Not surprisingly, interest in user-based insurance (UBI) policies grew as people recognized they were driving less and wanted more transparency around how their policies were priced. In their annual reports submitted to NHTSA, automakers also showed just how far they have come toward equipping vehicles with the building blocks for full vehicle autonomy and ADAS. ADAS includes technologies such as front crash prevention or warning, lane departure warning, blind spot detection, park assist, back-over prevention, obstacle detection and autonomous emergency braking. The reports are submitted annually by the 20 manufacturers that pledged to equip at least 95% of their light-duty cars and trucks with a gross vehicle weight of 8,500 lbs. or less

with the crash avoidance technology by the production year of 2022. “When ADAS technology went mainstream a few years back, the collision repair industry was put out on the front lines first, versus mechanical repair, which is unusual,” Gotsch said. “The main challenges for body shops are daunting because the OEs have different names for these systems and with consumer demand high, they’re all packaged differently and operate differently. “So, understanding what’s going on with a car when it comes into your shop and then trying to fix it―these are some pretty significant challenges. The question is where and what should you invest in, or should you use a third-party company to do your diagnostics?” 2020 was a year of questions; will 2021 provide us with some of the answers as we emerge from these uncertain times? To find out more, get a hold of the CCC Crash Course report to anticipate trends before they affect you.

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CAA Supports AB 471 for Accountability, Accessibility, Transparency To this end, BAR has responded and has successfully developed AB 471 is a multi-faceted piece of the Auto Shop Locator, a new molegislation created to address con- bile-friendly search tool that alsumer protection and transparency lows consumers to perform locawithin the automotive repair indus- tion-based searches for automotive try. repair dealers, filter results by the Among other things, it will sig- type of services needed and quickly nificantly enhance state Bureau of verify if a licensee is on probation or Automotive Repair (BAR) programs the subject of a pending accusation. for consumers, protect consumers One of the goals of AB 471 will from unsafe salvage vehicle repairs, be to support and expand the consumer protection and transparency of this platform. Jack Molodanof, registered lobbyist for CAA and the president of Molodanof Government Relations in Sacramento, CA, has watched this bill as it’s gone through several reincarnations. Molodanof believes the California Assembly Member Evan Low authored AB 471 to bill will be good for all address consumer protection and transparency within the automotive repair dealers, automotive repair industry including auto body shops, improve the current citation and fine that go by the rules, while making regulatory program and allow for a shady operators responsible for submore efficient and expediated disci- par repairs. plinary processes. “One of the goals of AB 471 is The California Autobody As- to make it easier for consumers to sociation (CAA) supports this bill find out which shops have training because it protects consumers, im- and educational credentials to propproves the current BAR citation and erly and safely perform repairs befine process and streamlines disci- fore they decide where to take their plinary hearings while preserving vehicles,” he said. due process. AB 471 will allow BAR to colThe bill was authored by Cali- lect additional information from aufornia Assembly Member Evan Low tomotive repair dealer application, (28th Assembly District, San Jose including educational and training and Silicon Valley.) Last year, AB certifications that are nationally rec2454, also authored by Low, was in- ognized and generally accepted by the troduced but paused in order to allow auto repair industry―ASE, I-CAR, BAR to address the Trusted Dealer etc. It also will combine the current Certificate portion of that bill. brake and lamp program and rename by Ed Attanasio

Continued from Page 30

Service During COVID talk to struggle with how to fix a car correctly or find time for the training needed to learn how do it. Now is the time to do that. I see too many people utilizing this time as an excuse to fail. During the most challenging times over the last year, there were nerve-racking times. We reminded ourselves that the only way to fail was to quit. So, as long as we

it the vehicle safety inspection program, provide BAR the authority to develop additional inspection criteria standards for safety systems through regulations and allow for electronic transmittal of the brake and lamp certificates to DMV. Among other things, AB 471 will enable BAR to establish a fair appeal process for citation and fines by establishing an independent review panel that includes a consumer, BAR representative and representative from the auto repair industry. In addition, it will provide for an automotive repair shop that receives a citation to attend educational training, certified by BAR, which will remove the citation from BAR’s website, similar to traffic school. The bill will allow BAR to certify these remedial training providers. It will also allow administrative law judges to be pre-assigned to hear BAR cases. “This will allow for expediate hearings for auto repair shops rather than having to wait for years to resolve,” Molodanof said.

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didn’t quit, we should be good. And if we’re not, at least we left it all out on the field. Ultimately, that was a successful strategy for us. Throughout this time, I’ve grown a passion for helping the industry and I welcome other shops to reach out to me. We’re all in this together. www.autobodynews.com

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It will allow BAR to hire inhouse attorneys to handle preparation of accusations to revoke auto repair shop licenses, rather than the attorney general. “This will streamline the current process and resolve cases quicker while maintaining the auto body shop’s right to due process,” he said. AB 471 also clarifies a person required to have a valid BAR license shall not have the benefit of any lien for labor or materials, including the ability to charge storage fees or right to sue, unless the person possesses a valid BAR license. Along with CAA, these associations support AB 471 and applaud Low for his leadership in authoring this important legislation: Automotive Service Councils of California, California Automotive Wholesalers’ Association, Auto Care Association, Coalition for Automotive Repair Equality, Automotive Service Association, Automotive Aftermarket Suppliers Association and Motor and Equipment Manufacturers Association.

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Historical Snapshot with John Yoswick

Associations Assembling with Chasidy Rae Sisk

ASA Bonus Webinar Explores Value of Return to Work Programs

Southeast News

On March 31, ASA hosted a spe- according to DiCarlo. “This tends workers their thoughts on RTW praccial bonus webinar, “Importance of to create a stronger sense of loyalty tices to determine how much work a Return to Work Program for Your long-term. Also, employees are able will be needed. with Chasidy Rae Sisk Bottom Line,” featuring Nick Di- to maintain a productive mindset beThen, demonstrate a commitCarlo, vice president, regional sales cause they feel that they’re contribut- ment to early RTW, but be sure to director, AmeriTrust CONNECT. ing to the team, and that will benefit clarify the company is committed to Explaining the purpose of a them personally more than sitting the recovery process above all else. return to work (RTW) program, he around, doing nothing.” Create clearly defined goals and obdefined it as “a return to health and with Chasidy Rae Sisk happiness.” “Getting back to work and doing their job within their When employees are absent on workers’ compensation insurance, it physical limitations helps them recover faster and get impacts the productivity of the shop back to their regular duties quicker.” — Nick DiCarlo and the business’ bottom line. RTW programs allow employees to return Chasidy Rae SiskSo how can a shop put a RTW jectives for the program so employto their normalwith or modifi ed job duties as quickly and safely as possi- program in place? ees know what to expect, and appoint ble, minimizing the indemnity of a First, know the facts―conduct a team to lead the RTW initiative, setclaim. preliminary research about RTW ting expectations and communication In addition to lowering costs of programs to learn about the potential channels. workers’ compensation, studies have “In a small shop, the owner may for costs savings and how to adapt with Chasidy Rae Sisk proven allowing injured employees the programs to meet your compa- be the whole team,” DiCarlo acto return to their regular schedule ny’s needs. knowledged. and environment, albeit with possiDevelop a workflow chart that Next, gather data by asking coble limitations based on doctor recommendations, helps them get back to their normal with duties faster as well. Chasidy Rae Sisk HENDRICK VOLVO DiCarlo explained the benefits: CARS OF CHARLESTON “RTW programs reduce employee days away from work, enables them to recover more quickly, and it fosters a positive work environment, also showing other withemployees Chasidyhow Rae Sisk much you care. These programs reduce the financial impact of workplace injuries, improve your ability Choose Original to manage an injury claim and any 1464 Savannah Hwy. restrictions, and increase producMINI Parts. Charleston, SC 29407 with Rae Sisk tivity by getting yourChasidy experienced employees back to work. RTW proMINI of Charleston grams also allow you to keep in regu843-556-4604 Fax 1518 Savannah Hwy lar communication with your injured www.hendrickvolvocars.com Charleston, SC 29407 employees, while keeping them proM-F 7:30am-5pm ductive.” 855-831-0254 with Chasidy Rae Sisk The employee also benefits. With Sat 8am-5pm Hours: Mon-Fri 7:30-6 Sat 8-5 RTW programs, the employee retains rhminiparts@hendrickauto.com full earning capacity; in most states, Wide Delivery Area employees on workers’ compensation make about 66% of normal wagCompetitive es. They maintain their regular work Wholesale Pricing schedule, do notwith need to depend on a Ed Attanasio disability system and have a greater sense of security and stability. Volvo Genuine ©2021 MINI USA, a division of BMW of North “RTW programs make team America, LLC. The MINI name, model names Parts. members feel that you care about and logo are registered trademarks. them and getting them back to work,”

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outlines the RTW program, and use the workflow to identify the next steps, eliminating confusion in the RTW process. Next, develop and maintain a job bank to include a list of possible transition roles for injured employees returning to work. A communication and education plan is also needed to ensure employees are aware of their job responsibilities, both before and after an injury occurs, both while limited and following recovery. Keep a transitional duty database to measure the success of the program, making adjustments where needed. Finally, distribute the plan. Make sure the RTW program is easily accessible to all employees. “Make sure everyone understands it’s in place and how it works,” DiCarlo said. “Employees, including new hires, should sign and date ac-

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42 MAY 2021 AUTOBODY NEWS / autobodynews.com

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knowledgement forms to reduce the shop’s liability.” Being back at work aids in recovery. “Often, people on workers’ compensation are just sitting around, which doesn’t help them recover,” DiCarlo said. “Getting back to work and doing their job within their physical limitations helps them recover faster and get back to their regular duties quicker.” The employee’s doctor will determine what limitations exist and an appropriate guideline for them to return to work. The employee will agree to provide this information to the shop owner as part of the acknowledgements; however, the shop owner cannot reach out to the employee’s doctor directly. DiCarlo wrapped up: “RTW programs provide a positive financial impact on the company’s bottom line, which allows for things like raises and bonuses. It’s important to show your team that this benefits everyone, not just the business.” Before the webinar concluded, DiCarlo briefly mentioned the upcoming launch of Ameritrustcon-

nect.com, a new consumer portal being launched in conjunction with ASA, which allows shops to purchase workers’ compensation insurance online. “This is going to be great innovation we’re bring to associations that will save shops time and money,” he said. “You’re buying directly from us. Simple, fast and direct is the goal here.” On April 21, ASA’s next Webinar Wednesday, the first of a two-part series, will feature Rick Escalambre of Independent Contract Technical Training, as he talks about “Identifying Difficult-to-Run Monitors Using In-Use Performance Tracking.” For more information or to register, visit asashop.org/asa-webinars.

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Leasing and Purchasing chase the real estate as part of their retirement or sale model.” He said real estate in this industry is unique, often requiring many modifications to a property, lease-holder improvements that may make leasing less advantageous. “When you purchase a piece of property, often that mortgage is less than you would be leasing it for on a triple net lease,” he said. “There can be some profitability that you can specifically take out of that payment to yourself that creates some favorable tax opportunities for you.” All that said, there are some risks involved in purchasing the real estate, Fisher noted: EPA risks if it is a brownfield, zoning issues, easements, tying up too much wealth in the industry even if it’s in two different asset classes. “Too many don’t weigh the potential cost of all that,” he said. He also cautioned anything driving up real estate values does not automatically increase the lease payment

a shop owner who sells the business but retains the real estate can expect from the new shop operators. That remains “contingent big-time” on the cash flow of the business, so a period of business retraction “devalues the lease value” as well, Fisher said. Johnston said there is one set of circumstances when it is often in your best interest to purchase shop real estate: when your landlord on a property is considering selling to someone else. “You might have had a cozy relationship with that landlord. It might even be someone who sold you the business,” Johnston said. “But if they’re now flipping that real estate, you have to consider whether the person buying that real estate is buying it because they want you there as a long-term tenant, or if they are buying it because they want to redevelop that property. “It may be advantageous to you to consider buying it if you think there’s a risk of losing what is otherwise a very valuable operational asset. No one wants to have to go find another body shop and relocate a successful operation.”

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SEMA Show Goes On with Ed Attanasio

Media and Publicity for Shops

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

with Ed Attanasio

4C Collision Consulting Focuses on Growing MSOs Through Strategic Marketing Craig Camacho has seen it all in the collision repair industry, so I felt during his career in collision repair, at home working in a body shop,” he and has learned over the years what said. “The people at Collision SpecialStacey Phillips works and whatwith doesn’t. ties were continually shocked when To share his marketing, advertis- I could get the customer’s keys even ing and public relations skills gleaned before I even wrote the estimate. Sales by working for several MSOs, Cama- is the same regardless of the service or cho started 4C Collision Consulting, product I’m selling and, in this case, LLC to help large chains and small I realized I was selling myself and it with Stacey Phillips independents alike. was all about building trust with the Camacho, 55, discovered he customer.” had sales skills at age 10, and hasn’t For the next 22 years, Camacho looked back. held several job titles for dealer-related collision centers and mid-size and large MSOs. He learned from many of his employers and taught a with Stacey Phillips lot to some of them as well, he said. “I was lucky because in some cases, I was able to take the reins and create my own marketing systems and they worked. Whether it’s a big MSO or a small independent, the principles are still the same,” Camawith Stacey Phillips cho said. “Everywhere I worked, I stressed things like community involvement, team building events and charitable programs, while implementing unique and out-of-the-box Craig Camacho started 4C Collision Consulting marketing in the mix.” this year to help large chains and small indeAutobody News sat down recentpendents with their marketing, advertising and with Victoria Antonelli public relations ly with Camacho to glean some takeaways any shop can use. “First, I sold greeting cards and vegWhat are three things any etable seeds door-to-door and did shop should do as part of their very well,” he said. “When I turned 12, I started selling the Bulletin, the marketing, advertising and public/ premier daily newspaper in Phila- community relations? with Ed Attanasio delphia at the time. The Sunday ediCreating and maintaining a tion was so large, I had to load them Facebook social media page all in the front basket of my bicycle, which took two runs to get them all and enhanced website that engage your potential customers are the obvidelivered.” To find a career in which he ous ones that work well, but there are could use his ability to sell things, many other things that can be done. with Gary Ledoux Camacho looked at different forms Here are a few suggestions. Getting involved within the of retailing. First, he landed a job at a paint store and was the No. 1 guy communities where your shop or there rather quickly, then worked at shops reside―this can be done by a series of car dealerships, before hosting a weekend car wash and raiseventually migrating to the collision ing money for a local charity. Once I committed to doing this it became side. with aStacey Phillips an annual event, and both the charCamacho landed job at Collision Specialties in Glenolden, PA, as itable organization and the car wash an estimator and was quickly man- customers paid it back in dividends with their auto claims business! aging the shop. Becoming part of your local “I realized that it’s all about sales

Shop Strategies

Body Shops Giving Back

Tips for Busy Body Shops My SEMA

Chamber of Commerce, networking business groups and being on the board of charities proved to be very effective. These come with either annual low-cost dues or no fees at all, but they enable your shop’s representative to shine your business in the brightest of ways. Attending meetings and discussing challenges these organizations may be experiencing will illustrate the fact you and your team are problem-solvers and valuable members of the community.

What are some of the things shops are currently doing (marketing, advertising, special events, social media) that don’t work, and why?

Many shop owners believe spending money on radio and/or TV advertising will bring them customers. Advertising this

way may have an upside if you’re consistent and willing to invest in it, but advertising on the radio or TV is difficult to track when trying to calculate your ROI. Many shop owners take the time to create their own social media pages, but then they don’t maintain them, and it ends up doing more harm than good. Social media is more important than ever, so I always make sure I have someone who regularly posts articles, events and news. Anything we post is designed to keep our customers engaged and coming back for more.

If an MSO wants to grow, what are the most important things to keep in mind?

Most MSOs don’t become MSOs without relationships with insurance companies, also

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44 MAY 2021 AUTOBODY NEWS / autobodynews.com

with Mike Anderson Southeast_Issue_0521.indd 44

4/21/2021 5:14:18 PM

the ocial on’t doocial ever, mecles, post mers ore.

known as DRPs. These relationships can be very fruitful when looking to grow in different areas. Insurers will tell you where they need coverage, and as long as your shop produces the KPIs (key performance indicators) acceptable to them, they have the ability to add your new shop to their program. If the MSO wants to grow with the intention of being sought after and a target of a consolidator for an actual sale, paramount is making sure everything in the organization seems as one and all processes and people in place are hitting the mark. Once this is accomplished, duplication can then happen, and the growth can begin. Any MSO knows the due diligence required to find the right location is as important as the growth itself.

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ome hips also

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Is conventional advertising effective for body shops, such as radio/TV and print?

The only time this type of advertising is effective is when it is consistently done for brand

awareness, which ends up being very costly. Even when done correctly, it is the hardest marketing strategy to measure in terms of ROI.

If you entered a shop, as a consultant, and they were doing zero marketing, where would you steer them and why?

First and foremost, I would make sure they were properly branded. Branding is extremely important because it separates your business from the competition and creates a connection with your customers. Once accomplished, I would steer them to create an online presence ASAP. A great website, social media presence and some SEO go a long way and are very affordable in the big picture of a marketing budget. Making sure your shop or shops can be found on Google and other search engines is no longer an option but expected by those who are looking for reputable shops in their area. There are many other low costs avenues that can serve the independent shops and MSOs out there quite well.

GM Airbag Investigation Launched After Injuries by David A. Wood, CarComplaints.com

A GM airbag investigation has been opened following claims of injuries caused when the airbags failed to deploy in crashes. The National Highway Traffic Safety Administration (NHTSA) said it opened the General Motors airbag investigation after receiving 15 complaints alleging six severe crashes where the airbags failed to deploy. According to NHTSA, the six GM vehicles suffered “significant frontal collision damage,” and all six incidents caused injuries. Additionally, nine airbag complaints indicate the airbag warning lights were illuminated. Included in the GM airbag investigation are nearly 750,000 of these vehicles: 2020-2021 Chevrolet Silverado 2020-2021 Chevrolet Tahoe 2020-2021 Chevrolet Suburban 2020-2021 GMC Sierra 2020-2021 GMC Yukon 2020-2021 GMC Yukon XL 2020-2021 Cadillac Escalade 2020-2021 Cadillac Escalade ESV

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2020-2021 Cadillac CT4 2020-2021 Cadillac CT5 2020-2021 Cadillac XT4 GM issued technical service bulletin (TSB) 21-NA-005 in March regarding illuminated airbag warning lights associated with diagnostic trouble codes B0001-1B or B0012-0D. The GM airbag investigation will have federal safety regulators looking at what the automaker said in the TSB which was sent to dealerships. Specifically, GM told dealers rust particles in the connection terminal interface of the airbag inflator is what causes illuminated airbag warning light. It’s when the airbag warning light activates the airbag deactivates and won’t deploy in a crash. NHTSA said investigators will determine how severe and widespread the GM airbag problems are, and if the automaker should recall and repair the vehicles. CarComplaints.com will update our website with results of the GM airbag investigation. We thank CarComplaints.com for reprint permission.

Winston-Salem (800) 489-3534 (336) 725-3554 Fax Mon.-Fri. 8-5; Sat. 8-1 subarupartsws@flowauto.com www.flowsubaru.com

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autobodynews.com / MAY 2021 AUTOBODY NEWS 45

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Historical Snapshot with John Yoswick

Associations Assembling with Chasidy Rae Sisk

Getting Paid Starts at the Beginning of the Process: MSCRA Hosts Collision Hub for Estimating Training each vehicle requires 26 to 32 Southeast able; News measurements minimum, adding an-

“You get to decide what you want to charge and what line items to put on an estimate,” Kristen Felder Rae of with Chasidy Collision Hub said during an estimating training session, taught by Larry Montanez III of Collision Hub and hosted by the Mississippi Collision Repair Association (MSCRA). with Chasidy Rae “Getting paid is part of the process that has to start at the beginning when you write your preliminary estimate,” she said.

other 10 to 15 for suspension and at Sisk

least 10 more if there’s front damage.” Finally, the shop should classify the vehicle repair as fast, quick or extended. Fast repairs tend to be cosmetic, while a quick repair is something that “needs to be sent to Sisk the triage department and requires a bench measurement or quick tug to something before it gets repaired,” Montanez explained. “An extended repair is something like a frame rail or quarter panel. with Chasidy Rae Sisk Once you acquire all the data, you should be able to calculate how much time the car will need to be in the shop.” Next, research repair prowith Chasidy Rae Sisk cedures by VIN, and review the OEM’s build sheet, safety precautions, post-collision inspections and construction design, including substrates with Chasidy Rae Sisk and materials. It’s also important to be familiar with the ADAS systems installed in the vehicle and any specific repair protocols as well Referencing a 2007 Dodge Ram which required a bedside as mechanical and electrical panel replacement, Montanez compared photos of an with Chasidy Raeof Sisk information. original panel and a new panel, provided courtesy Logan Payne from Payne & Sons in Dallas, TX When starting to write the report, Montanez recMSCRA Executive Director ommends reading the p-pages, startJosh Kent introduced Montanez, who ing with the right group and then examined the six steps to completing staying in that group of operations with Chasidy Rae Sisk a damage report: gather information before moving to the next logical and data, look up procedures, report group and adding items for group by keeping it in the family, disassem- operations. Items that apply to the ble vehicle for review, adjust review entire vehicle should be placed report, and finalize report with team. in Miscellaneous Operations, and Gathering information and data notes should be made on operations with Chasidy Rae Sisk begins with learning the facts of as needed to ensure anyone on the the loss, including the weather and shop’s team can discuss with a condriving conditions, as well as taking sumer or insurer. Montanez also photographs and obtaining signed stressed the importance of shops unpaperwork. Additionally, technicians derstanding all the features offered must take paint film mil thickness by their system. readings, perform pre-repair scans Prior to disassembly, take photos with Ed Attanasio and take pre-repair measurements. of the vehicle before removing com“Make sure your technicians ponents to view hidden sustained know how to properly measure,” damage. Next, check for secondary Montanez noted. “Four to eight mea- or indirect sustained damage. surements on a vehicle is unacceptThe goal is “to complete your

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damage report on the first day, as accurately as possible. Your initial damage report should basically match the final bill, other than outsourced processes which you should still be able to approximate. Doing a complete, accurate initial estimate allows you to avoid multiple supplements,” Montanez said, also suggesting damaged components be stored in a specific area where they are ready to show to the insurer as needed. During the adjustment process, collision repair professionals will review the damage report to double check all operations and parts prices before reviewing the report with the team to make any adjustments. Save and print needed documents. Then, finalize the report with the team. “Make sure the damage assessor, foreman, parts manager, technician and everyone who touches the car is aware of what’s going on with

it. Review all operations and the repair plan to be sure they understand, and after you map the vehicle, it’s ready for the insurance inspection and parts arrival,” Montanez said, stressing, “Never start a repair order without receiving all the pertinent parts.” Referencing a 2007 Dodge Ram which required a bedside panel replacement, Montanez compared photos of an original panel and a new panel, provided courtesy of Logan Payne from Payne & Sons in Dallas, TX. He identified several not-included processes that must be performed, such as cleaning the work area of dirt and debris, removing adhesives and foams and repairing adjacent panels. Montanez went through the estimate line by line, offering efficiency tips on various processes while idenSee Getting Paid, Page 50

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46 MAY 2021 AUTOBODY NEWS / autobodynews.com

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Precise fit and finish, easy installation and a limited warranty direct from Kia—all genuine advantages of Genuine Kia Parts. Your local Kia retailer has all the parts you need.

autobodynews.com / MAY 2021 AUTOBODY NEWS 47

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CCC Announces Plan to Deliver on Industry Vision for Straight-Through Processing CCC Information Services Inc., a leading SaaS platform for the P&C insurance economy, announced it plans to deliver on the industry’s vision for straight-through auto claims processing with the launch of CCC® Estimate–STP. To be previewed at CCC’s conference in May, CCC Estimate–STP will employ advanced AI, insur-

signed to accelerate our insurance customers’ vision for straightthrough processing,” said Barrett Callaghan, executive vice president, markets and customer success, CCC. “Intelligent, automated, inclusive and actionable, we believe CCC Estimate–STP will deliver a significant leap forward, powering our customers’ ability to achieve

“CCC Estimate–STP is designed to accelerate our insurance customers’ vision for straight-through processing,” — Barrett Callaghan er-driven rules and CCC’s vast network connections to automatically initiate and populate predictive, detailed and actionable estimates in moments. CCC Estimate–STP is designed to fully digitize the estimating process for qualified repairable claims, expanding the digitization of auto claims, speeding processing time and elevating the customer experience. “CCC Estimate–STP is de-

claims personalization and differentiation.” CCC Estimate–STP will use a powerful combination of technologies, data and partner connections to generate a comprehensive estimate. Line-level detail, including parts, labor operations and hours, and taxes, for each repair are designed to make estimates actionable and to deliver speed and transparency to policyholders. CCC’s AI solutions will assess

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and visually depict vehicle damage, while estimating logic, derived from processing 16 million claims annually, will work with insurer-directed business rules to digitally generate estimates. The new offering will be configurable by insurer, including claim eligibility thresholds and policyholder experience objectives. CCC Estimate-STP will be part of the CCC Cloud, which creates connections and digital continuity among insurers, collision repairers, automakers and parts suppliers. “With the rollout of CCC Estimate–STP, we expect the industry will be able to realize automated estimating in mere minutes,” said Shivani Govil, chief product officer, CCC. “End-to-end digitization requires an advanced set of technologies and a highly orchestrated network of trading partners that we believe CCC is uniquely positioned to deliver. With broad adoption of our mobile and AI solutions, we’re excited to bring this next generation innovation to market and help transform how our clients operate and reimagine the customer experience.” Today, CCC’s network of 30,000

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customers use the company’s solutions to digitize operations, improve performance and deliver more seamless experiences to their policyholders across millions of claims annually. Insurer adoption of CCC’s advanced AI using deep-learning―an important element of CCC Estimate-STP―increased 50% year over year in 2020, and through 2020, more than 5 million unique claims have been processed using a CCC deep-learning AI solution. Today, more than 75 auto insurers are actively applying CCC’s advanced AI to their claims process to improve policyholder experiences. CCC Estimate–STP is designed to build on CCC’s track record of success and integrate seamlessly into the claim workflow of existing CCC clients. Learn more about CCC Estimate–STP at https://go.cccis.com/ estimate-stp Source: CCC

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www.downtownhyundainashville.com 48 MAY 2021 AUTOBODY NEWS / autobodynews.com

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Tesla Alleged ‘Driverless’ Crash in Texas: What is Known So Far by Simon Alvarez, Teslarati

On April 17, a tragic crash involving a 2019 Tesla Model S claimed the lives of two people, a 59-year-old and a 69-year-old, both of whom are yet to be identified. Considering the nature of the case and partly due to the involvement of a Tesla, the incident has been covered by both local and national media outlets. This became quite notable in social media platforms, where the crash has been linked to Autopilot. This guide presents what is currently known about the tragic incident, as well as some commentary and videos from EV owners who have attempted to replicate, at least to a degree, the alleged events that led up to the crash. What happened? On April 17, a 2019 Model S crashed into a tree at about 11:25 p.m. in the Carlton Woods Subdivision on Hammock Dunes Place in Houston, TX. According to authorities, the Model S crashed into a tree after failing to navigate a turn at high speed

near 18 Hammock Dunes Place. The collision resulted in a fire that took the local fire department about four hours and more than 30,000 gallons of water to extinguish. Investigators found two victims from the incident, one sitting on the passenger seat and another in the back seat. What did witnesses say? KPRC 2 reporter Deven Clarke spoke to one of the victims’ brother-in-law, who stated the Tesla owner and a friend simply wanted to take the car out for a spin. The brother-in-law said there were just two people in the vehicle. He also added the Tesla owner backed out of the driveway and then may have hopped in the back seat before crashing a few hundred yards down the road. The owner was reportedly the person found in the back seat of the car. What have the police said? In a statement to KHOU-11, Harris County Pct. 4 Constable Mark Herman said deputies who recovered the Tesla are certain the vehicle had

no driver when it collided with the tree. He also emphasized some of the authorities who responded to the incident were reconstructionists, and they were very confident there was no one driving the vehicle when it crashed. “They are 100% certain that no one was in the driver seat driving that vehicle at the time of impact. They are positive. And again, the height from the back seat to the front seat, that would be almost impossible, but again our investigators are trained. They handle collisions. Several of our folks are reconstructionists, but they feel very confident just with the positioning of the bodies after the impact that there was no one driving that vehicle,” Herman said. Was Autopilot involved? Despite the inflammatory social media posts from some media outlets, it has not been determined yet if Autopilot had been active in the Model S when it collided with the tree. It should be noted the roads in the Carlton Woods Subdivision on Hammock Dunes Place do not seem to have visible lane lines, which is

a requirement for Autopilot’s activation. Regular cruise control could be activated in such areas as per videos from Tesla owners, but Autopilot and Full Self-Driving features are generally inaccessible in a residential area, at least in their current state. Is the NTSB investigating the incident? In a statement to Bloomberg, National Transportation Safety Board spokesperson Chris O’Neil confirmed the NTSB does not plan to open a new probe about the tragic incident. What happens when Autopilot in engaged and a driver unbuckles the seatbelt? One suggested scenario is the driver might have activated Autopilot and jumped into the back seat. This would have been a tricky maneuver as the driver would have had to unbuckle himself, which results in Teslas engaging their alerts and eventually coming to a stop. We thank Teslarati for reprint permission.

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Audi dealers strive to make you an Audi Genuine Parts fan. autobodynews.com / MAY 2021 AUTOBODY NEWS 49

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Government Investigates Passenger Airbag Recalls by David A. Wood, CarComplaints.com

Incorrectly folded airbags have caused the National Highway Traffic Safety Administration (NHTSA) to open an investigation into previous recalls of vehicles equipped with the airbags. Airbag manufacturer Joyson said the front passenger airbags may not have been folded correctly during production and could possibly fail to unfold properly in a crash. The problem could occur during times of high temperatures when the internal pressure could increase in the airbags. A portion of the airbag material could be torn when the passenger airbag deploys, or the airbag plate which mounts the airbag to the assembly case could be damaged. Certain automakers recalled vehicles since 2019 to replace the passenger airbag assemblies, but NHTSA has concerns about the replacement airbags and how they were folded. In August 2019, Toyota recalled about 274,000 model year 2003-2008 Corolla and 2005-2008

Matrix vehicles to replace the passenger airbags because they may not have been folded properly. Included in the recall were 20052008 Pontiac Vibes manufactured by Toyota in cooperation with General Motors. And in March, about 26,000 model year 2006-2008 INFINITI FX35 and FX45 vehicles were recalled to replace front passenger airbags that could tear when they deployed. The cause was once again problems with how the airbags were folded. A total of 256,000 vehicles are included in the investigation, but the possible passenger airbag problems are not related to Takata airbags at risk of exploding. NHTSA will contact Joyson Safety Systems and the affected automakers to make them aware of the investigation and to ensure the recalls were adequate. CarComplaints.com will update its website with results of the federal investigation. We thank CarComplaints.com for reprint permission.

Las Vegas Ready to Welcome 2021 SEMA Show by SEMA Editors

With more than five weeks to go before the SEMA Show space agreement deadline, show management reports more than 1,000 exhibitors have already been confirmed for the 2021 event. The news is significant, and underscores the work Las Vegas and its businesses are doing to welcome back large-venue events like the SEMA Show. The Las Vegas Convention Center’s newly constructed West Hall, a 1.4-million square foot facility, was completed in January, and will house exhibitors from the Restyling & Car Care Accessories, Powersports & Utility Vehicles and Truck, SUV & Off-Road sections. As the city continues to ramp back up to host events, the buzz among exhibitors anticipating the return of the in-person SEMA Show for 2021 has increased significantly. “People are eager to get back to the SEMA Show and reestablish their in-person connections with colleagues and customers,” said Vice President of Events Tom Gattuso. “The groundswell of excitement among

exhibitors increases each day, and the show is the ‘main event’ that the industry is looking forward to in 2021.” The 2021 SEMA Show is a little more than seven months away, and show management continues to work closely with the convention center authorities and the state of Nevada to help deliver the best SEMA Show ever. SEMA Show Dates to Remember The Exhibitor Services Manual (ESM) will be live in May. The ESM contains all of the forms and applications required to prepare for the show: feature vehicles, new products, booth vehicles, celebrity appearances, etc. Deadline to submit Exhibit Space Rental Application and deposit is May 7. SEMA Show Space Selection: June 7-23. Reserve booth space for the 2021 SEMA Show at www.SEMAshow. com/exhibitor. For complete information about the 2021 SEMA Show, visit www. SEMAShow.com. Source: SEMA

Continued from Page 46

Getting Paid tifying processes shops frequently neglect to include on their damage reports. “Just the bed panel, no blends, just changing the bed panel alone, is a $7,800 job at $50 labor rate, $30 for materials and 5% tax. But what about the same damage to a 2019 RAM?” Montanez asked. Examining another preliminary estimate, Montanez revealed the same repair on a 2019 model is around $400 cheaper. He also explored what happens to the 2007 estimate if the panels are blended; the repair cost increases to $10,912. The estimating class concluded with a question and answer session. Collision Hub will be hosting its 2021 World Fair and Exposition at the end of April. For more information about MSCRA, visit https://mymscra.com/ or facebook.com/mscra1/.

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50 MAY 2021 AUTOBODY NEWS / autobodynews.com

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EV Charging Tax Credit Set to Expand with Proposed Act by Joey Klender, Teslarati

The Securing America’s Clean Fuels Infrastructure Act is being rolled out by a group of bipartisan senators. The bill would broaden the Alternative Fuel Vehicle Refueling Property Investment Tax Credit (30C) from $30,000 to $200,000. The four senators who co-sponsored the bill believe the current $30,000 tax credit “isn’t adequate for encouraging greater private investments in clean vehicle refueling infrastructure like electric charging stations and hydrogen refueling stations.” This is especially prevalent as some politicians are beginning to introduce new, environmentally-friendly bills and acts that would incentivize the expansion of EV infrastructure. The amount of money given in the credit isn’t the only thing being revised. It also would establish it can be applied to individual charging units rather than an entire location. For example, individual charging units, such as destination chargers, are used by some small businesses to provide a charging option for EV

drivers. Some small businesses do not have space for an entire loadout of EV charging units, but they do have the real estate to install single, low-power chargers that help EV owners gain supplemental range. The Securing America’s Clean Fuels Infrastructure Act would also extend the plan for another eight years, applying to any property that enters service by the end of 2029, The Hill reported. The main motivation behind the plan is to supplement the rollout of more electric cars on the road. Without sufficient charging infrastructure, EV drivers would likely be waiting for long periods to charge their cars, especially as electric cars become more popular. “For our automakers to be globally competitive and to meet our climate goals, we need millions more electric and fuel cell vehicles on our roads in the next decade,” said Senate Environment and Public Works Committee Chairman Tom Carper, a Democrat from Delaware. “By bringing down investment costs, our bill will ensure our nation starts building the necessary charging and

clean vehicle refueling stations today. “Many of our nation’s largest automakers are already pledging to electrify and clean up their fleets, but Americans must have far greater access in their communities to electric charging and fuel cell stations,” Carper continued. “We can’t have clean vehicles without clean vehicle fueling infrastructure―we must invest in both.” The act is gaining momentum, especially as President Joe Biden has set a goal of reaching net-zero emissions by 2050 and plans to implement 500,000 EV charging stations by 2030. Biden also plans to roll out a fully-electric fleet of government vehicles in the coming years. We thank Teslarati for reprint permission.

SUBSCRIBE TO OUR YOUTUBE CHANEL: Autobody News

GM Earns 2021 ENERGY STAR Award General Motors announced April 13 it has received the 2021 ENERGY STAR Partner of the Year Sustained Excellence Award from the U.S. Environmental Protection Agency and the U.S. Department of Energy for the 10th year. The Sustained Excellence Award is the highest honor bestowed by the ENERGY STAR program. In 2010, GM committed to a 20% reduction in carbon intensity by 2020, which was met early in 2017. And in January, GM Chairman and CEO Mary Barra announced accelerated energy goals, including the sourcing of 100% renewable energy to power GM facilities in the U.S. by 2030, and globally by 2035. The company also recently announced plans to become carbon neutral in its global products and operations by 2040 and its aspiration to eliminate tailpipe emissions from new light-duty vehicles by 2035. Source: GM

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Farmers Insurance Finds More Than Half of Drivers Admit to Using Cell Phones While Behind the Wheel The vast majority of drivers understand the danger cell phones present on our roadways, but survey data from Farmers Insurance reveals a significant gap between this belief and drivers’ actual behavior. According to the survey, 87% of drivers surveyed believe that people who use their phone behind the wheel pose a danger to others. Yet, 53% of those drivers admit to making a call behind the wheel and 45 percent admit to sending, reading or receiving a text message. Gen Z and Millennial drivers surveyed also admitted to participating in video chats (32% collectively), posting to or viewing social media (28%), playing a game (27%) and streaming video (24%) while behind the wheel, suggesting younger drivers could face continued driving distractions as technology continues to evolve. “It’s understandable that today’s drivers feel a conflict―people know that phones, and the distraction they introduce, pose a risk and can interfere with safe driving; however, phones can be tempting and pull our attention and focus,”

said Carolyn Wald, head of product innovation integration for Farmers. “With April being National Distracted Driving Awareness Month, we want to remind people that there are a few precautions and tools we can all use to help keep our attention focused where it belongs, and to help keep the roads safer for everyone.”

Farmers offers its safe-driving app, Signal, to help drivers recognize behaviors that may be taking their attention off the road and earn a discount for focused driving. The insurer also recently launched CrashAssist within the Signal app, a feature that can detect crashes and help connect drivers to emergency and support services. Signal users can receive push notifications should a crash be detected then be connected with emergency services, and get help reporting a claim. After 2020 saw an 8% spike in

traffic fatalities according to the National Safety Council, this month’s observance of National Distracted Driving Awareness Month hits even closer to home as all drivers share a responsibility to practice focused driving when behind the wheel. Wald recommends the following tips to help people stay safe when they hit the road: Make your car a “no phone zone”: It may seem like a no-brainer but limiting mobile phone use is one of the easiest ways to become a more focused driver. And don’t forget, hands-free calling and voice texting can still be a distraction while you’re on the road. If you find it helpful, use an app to silence phone calls and texts when you’re behind the wheel. Multitask later: The last place you should be multitasking is behind the wheel of a car. Avoid eating, glancing at your calendar, searching for dropped items or anything else that can take your attention away from the road. Chat light: Take a cue from the 33% of those surveyed who believe that talking to passengers, includ-

SEMA Scores State Legislative Victories by SEMA Editors

The 2021 state legislative sessions are in full swing and SEMA’s Government Affairs team is working non-stop to ensure positive outcomes for business.

Below is a summary of SEMA’s most recent hard-fought victories. To receive the latest breaking news from your home state, be sure to join the SEMA Action Network (SAN) for free. After receiving hundreds of opposition letters from SEMA-member companies and enthusiasts, the Nevada legislature did not act on a bill that would have restricted the registration of hobbyist vehicles. SEMA testified in opposition to a Nevada bill that would have

outlawed most vehicle exhaust modifications. The bill failed to advance prior to a key legislative deadline and cannot be considered again until 2023. In the face of SEMA’s opposition, the Wyoming legislature killed a bill that would have significantly restricted antique vehicle registration eligibility. Thanks to SEMA’s effort, Kansas Gov. Laura Kelly signed into law a version of SEMA’s model legislation to allow for the registration and on-road use of surplus military vehicles. The Kansas legislature passed a SEMA-supported bill to ease restrictions on antique vehicles. The bill is sponsored by SEMA State Automotive Enthusiast Leadership Caucus member Rep. Leo Delperdang and awaits Kelly’s signature or veto. After an outpouring of support from the industry and enthusiasts, Montana Gov. Greg Gianforte signed into law legislation to expand single license plate usage.

At the urging of SEMA, Virginia Gov. Ralph Northam signed into law legislation to expand imported foreign-market vehicle titling. With SEMA’s support, Idaho’s legislature passed a bill creating a new custom vehicle registration class. The bill awaits Gov. Greg Little’s signature or veto. With backing from the industry, Mississippi Gov. Tate Reeves signed into law SEMA-supported legislation to expand titling eligibility for older vehicles. * West Virginia approved SEMA-supported resolutions calling for the creation of an interstate off-highway vehicle trail system. The measures were sponsored by SEMA’s 2018 Stephen B. McDonald Legislator of the Year Award winner Sen. Mark Maynard and SEMA State Automotive Enthusiast Leadership Caucus Chairman Del. Gary Howell. For more information, contact Christian Robinson at christianr@sema.org. Source: SEMA

ing those in the back seat, poses a danger to others on the road. Save serious conversations and important news with passengers for when you’re off the road. Instead, keep the chatter light so you can focus on the road ahead. Buckle up children and pets: Make sure children and pets are properly secured in their seats before starting the ignition. In many cases, the safest place for your children and four-legged passengers is in the back seat of the car. Park it: Always pull over and park in a safe place before adjusting controls in your car, tending to a pet or child, sending a text or talking on your phone. Get an app for that: Consider downloading an app that rewards you for focused driving behaviors, like Signal from Farmers. Households who enroll in Signal will automatically have access to CrashAssist. A Signal discount is also available in some states. For more information, visit: https:// www.farmers.com/signal/. Source: Farmers Insurance

Nominations Open for NABC Awards The National Auto Body Council announced it is opening the nominations for its 2021 awards, the NABC Changing and Saving Lives Award and the NABC President’s Award. The NABC President’s Award is designed to honor the NABC member company that supports the vision of the National Auto Body Council through donation of their time and resources. Companies will be nominated by the NABC Board of Directors, and members at all levels of NABC membership are eligible. The NABC Changing and Saving Lives Award recognizes the individual in the collision repair industry who has delivered exemplary service in the NABC mission of Changing and Saving Lives Every Day, far beyond their role in the industry. Individuals may be nominated by a member of the NABC Board of Directors or by the public. The winners will be named during the annual SEMA Show in Las Vegas. Nominations will run through Aug. 15. Source: NABC

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Cox Automotive March Forecast: U.S. Auto Sales Pick Up Pace Heading into Spring March U.S. auto sales, when reported the last week of March, will show strong growth over February’s pace and a significant increase over last year’s pandemic hit numbers. The seasonally adjusted annual rate (SAAR) of sales this month is forecast by Cox Automotive to hit 16.5 million, up from February’s

were reported. The sales recovery has been choppy since September. The SAAR has bounced around between the upper-15 to mid-16 million levels over the past six months. A return to the higher end is expected in March. The sales pace should improve this month after being hampered by winter storms that disrupted much

“Supply chain disruptions that continue to plague the industry are adding to the short supply situation. — Charlie Chesbrough 15.7 million pace and well above last March’s dismal 11.4 million level. Sales volume is forecast to increase nearly 50% over last March and reach 1.48 million units. While sales in the first quarter have been healthy, they remain below pre-pandemic levels. Total sales in Q1 2021, forecast at 3.77 million units, will be up 8.7% versus Q1 2020 but down 4.9% from Q1 2019, when 3.97 million sales

of the country in February. With the deep freeze impacting markets as far south as Houston and disrupting millions of lives and businesses for days, many sales were likely delayed into early March. Also, the distribution of stimulus checks is well underway, and we’ve already noticed upward movement in our daily sales tracking numbers as a result. “Inventory levels are tight right now, though, and this could hinder

the market in coming months,” said Charlie Chesbrough, senior economist, Cox Automotive. “Supply chain disruptions that continue to plague the industry are adding to the short supply situation. Although lean inventories have not had much impact on buyers in the first quarter, that will likely change as we move into Q2. The production disruptions happening now will turn into even lower inventory in the months ahead.” March Sales Forecast Highlights • In March, new light-vehicle sales are forecast to increase by 490,000 units, or nearly 50%, compared to March 2020. When compared to last month, sales are expected to rise nearly 300,000 units, or 25.4%. • The SAAR in March 2021 is estimated to be 16.5 million, above last year’s 11.4 million level and an increase from last month’s 15.7 million pace. There are 26 selling days this month, one more than last year and two more than February, so additional time will also help lift sales. • Year-over-year comparisons will

become less relevant in the months ahead as large year-over-year increases are reported. Compared to March 2019, sales volume this month is forecast to be down by more than 8%. March 2019 had one additional selling day than March 2021. • First-quarter sales are forecast to be up 8.7% compared to Q1 2020 but down 4.9% versus Q1 2019. Cox Automotive Q1 2021 U.S. Auto Sales Webcast The Cox Automotive Industry Insights team will host a webcast at 11 a.m. ET March 29. During the event, the team will discuss key economic indicators driving the auto market, review the 2021 forecasts and offer analysis of new- and used-vehicle sales for March and the first quarter. The presentation will be followed by a Q&A session. RSVP to attend. Source: Cox Automotive

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Kia Recalls 2021 Telluride, K5, Forte to Protect Kids by David A. Wood, CarComplaints.com

Model year 2021 Kia Telluride, K5 and Forte vehicles may have problems with the occupant classification systems used to detect when children are in the front passenger seats. This could cause the front airbags to deploy when they shouldn’t, namely when children are in the seats. The airbag may cause injuries even if the crash doesn’t. The 142 recalled vehicles need their classification and detection systems replaced, but owners may call 800-333-4542. Kia’s number for this recall is SC207. We thank CarComplaints.com for reprint permission.

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Erie Insurance National Survey: Americans Eager to Take Road Trips in 2021 While the pandemic cancelled vacation plans in 2020, cooped-up travelers are planning more road trips this year, according to a new national survey from Erie Insurance conducted to support Distracted Driving Awareness Month in April. More than half of respondents plan to take at least one road trip this year. Another 30% say they would like to but it depends on the status of the pandemic. Of those planning to pack up their car, truck or SUV, more than half plan to travel more than 500 miles from home. “We commissioned this survey to better understand how the pandemic has impacted road travel, and what distractions are impacting driver safety,” said Jon Bloom, vice president of personal auto, Erie Insurance. “Based on data collected, there will likely be more people traveling by car who may be distracted by a number of factors, both inside and outside their vehicle. We want this to serve as a reminder for drivers to be safe and aware on the roads at all times.” What’s driving this year’s trav-

el trends? The urge to see family and friends is real. When asked where they plan on going during their road trip, the majority (41%) will visit loved ones, while many others are beach-bound (21%) or seeking outdoor adventure at a national park (12%). Most (76%) expect to travel with just one other person, typically their spouse or partner. Write-in destinations included many outdoor, socially spaced locations―likely a reaction from the pandemic―including campsites, lakeside resorts, lodges and cabins to partake in fishing, golfing, hiking and overall sightseeing activities. More than any other age group, the 65+ crowd expects to travel long distances this year―one-third plan to travel more than 1,000 miles. As the first age group to be fully vaccinated, they may feel safer to travel and are eager to finally hug their adult children and grandchildren again. Nearly half the respondents (44%) said they are distracted by other passengers in their vehicle

when driving. Of those, 40% say children distract them the most, followed by a spouse or significant other. The greatest distraction for drivers in the three older age groups (45-54, 55-64 and 65+) was their spouses or significant others complaining about their driving skills. In the three younger age groups (18-24, 25-34 and 35-44), their greatest distraction was noisy children. The older the age group, the less distracted drivers are by things inside their vehicle. Drivers 65+, for example, are distracted seven times more by what they see outside than they are by cell phones. Men and women responded similarly to all distractions except trying to eat and drink and using their phone’s GPS. Nearly twice as many men (23%) are most distracted by trying to eat or drink compared to women (13%), while twice as many women are distracted by their GPS (nearly 7%) compared to men (nearly 4%). Source: Erie Insurance

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asTech Acquires Red EU & Red Autocentres Repairify, Inc. d/b/a asTech, a portfolio company of Kinderhook Industries, LLC, announced March 24 the acquisition of Red (EU) Limited and Red Autocentres. Red (EU) Limited is a leading distributor of aftermarket electronic devices designed to run diagnostic tests and calibration services on automotive electrical systems, spe-

Red provides a complete suite of solutions for the service, maintenance and repair, collision and automotive insurance industries through diagnostic scan tools and automotive electrical system services. Services include local, car-side and remote diagnostics along with sensor calibration, programming and vehicle health support.

“Red is an exciting acquisition that enables asTech to further broaden its suite of global tools and solutions for customers.” — Paul Cifelli cifically advanced driver assistance systems (ADAS). Red Autocentres is a leading provider of automotive diagnostics, calibration and programming services for the collision and mechanical markets. The combined companies will operate as Red EU, and represent the 11th add-on acquisition for asTech and Kinderhook’s 105th automotive-related transaction. Financial terms of the transaction were not disclosed.

“Red is an exciting acquisition that enables asTech to further broaden its suite of global tools and solutions for customers. With demand for ADAS repair and calibration services rising, asTech looks forward to continuing to be the solution provider of choice for customers seeking to properly repair today’s sophisticated car parc,” said Paul Cifelli, managing director of Kinderhook Industries. “Repairify is thrilled to wel-

come Martin Brown from Red, who will be joining the Repairify team as technical director, Repairify Innovations,” said Cris Hollingsworth, president of Repairify. “Expanding into new markets and augmenting service offerings to better serve all customers is key to asTech’s global growth strategy. We look forward to integrating Red, a leading market expert in the United Kingdom, which will enable us to further execute on that strategy across the UK, Europe and internationally.” “The merger between Red and Repairify will provide tremendous value and benefits to all of our Red global customers,” said Brown, CEO of Red EU. “Red customers will benefit from having access to a complete portfolio of world class tools, products and services rapidly being integrated under the Repairify global solutions platform.” Mishcon de Reya LLP and Kirkland & Ellis LLP served as legal counsel to asTech. Source: asTech

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Axalta to Host Virtual Capital Markets Day Axalta invites investors, analysts and other stakeholders to a virtual Capital Markets Day, 8:30 a.m. to 12:30 p.m. ET May 5. CEO Robert Bryant and members of the Axalta leadership team will present the company’s growth strategy, the business and financial outlook and detail plans to drive long-term shareholder value. Presentations will be followed by a Q&A session where participants can post questions and engage with Axalta’s leadership team. Presentation materials will be posted to Axalta’s website at www.axalta.com/investors on May 5 prior to the event. A recording of the webcast will be made available following the event. Participants are requested to pre-register their attendance and can do so here: https://www. bigmarker.com/tv_/Axalta-Capital-Markets-Day For questions or more information, contact Axalta Investor Relations at Christopher.mecray @axalta.com. Source: Axalta

New Vehicle Inventory Continued to Dwindle in March: Edmunds Consumers in the market for a new vehicle will likely have a harder time finding what they want at an affordable price right now due to severe supply shortages affecting the automotive industry. According to the car shopping experts at Edmunds, new vehicle inventory on sale at dealerships nationwide was down by 36% in March compared to a year ago, and prices are rising for both new and used vehicles as a result. Edmunds analysts forecast the average transaction price (ATP) for new vehicles will climb to $40,563 in March compared to $38,601 a year ago; the ATP for used vehicles is expected to hit $22,663 compared to $20,273 last year. “The chipset shortage has snowballed into a bigger crisis for the automotive industry,” said Jessica Caldwell, Edmunds’ executive director of insights. “Major auto manufacturing plants are implementing temporary closures, and we’re seeing the industry being hit hard on both sides: Retail customers are being offered fewer choices and paying higher prices, while fleet customers

are likely seeing their orders delayed as auto manufacturers shift their focus to serving consumers.” Edmunds analysts note full-size trucks and large SUVs are among the vehicle categories most disproportionately affected by these shortages. According to Edmunds data, full-size truck inventory was down by 60% in March compared to a year ago; the average transaction price for new full-size trucks is expected to climb to $54,763 compared to $51,164 a year ago, while the average transaction price for used full-size trucks is expected to climb to $34,445 compared to $28,156 a year ago. Large SUV inventory decreased 56% in March compared to last year; the average transaction price for new large SUVs is forecasted to climb to $67,542 compared to $62,620 in March 2020, and the average transaction price for used large SUVs is expected to climb to $35,035 compared to $31,232 a year ago. “Full-size trucks and large SUVs have been a bright spot for automakers throughout the pandemic because of their profitability, but unsurprisingly these high-demand vehicles have

also been the quickest to fly off the lot,” said Caldwell. “Unfortunately, these supply shortages translate to a bigger financial hit for automakers, and the Detroit Three are likely the most affected.” In spite of these shortages, Edmunds analysts note affluent consumers have continued to drive a significant portion of financed purchases throughout the first quarter of the year, as indicated by increases in average down payments and the average amount financed for both new and used vehicle purchases. According to Edmunds data, the average down payment for new and used financed vehicle purchases is expected to climb to $4,729 and $3,345, respectively, in Q1 compared to $4,246 and $2,679 a year ago. The average amount financed for new and used vehicles is expected to climb to $35,040 and $23,958, respectively, in Q1 compared to $33,594 and $22,200 a year ago. “So far, automakers have been able to comfortably count on financially stable consumers focusing their spending on bigger-ticket vehicle purchases during the pandem-

ic,” said Caldwell. “But as vaccines continue to roll out and consumers crave new experiences and products to spend their money on, automakers and dealers will need to prepare to get more creative in marketing the limited inventory that they have on hand.” Edmunds experts advise consumers in the market for a new car to start shopping sooner rather than later, as they anticipate the chipset shortage is likely to affect pricing and inventory through at least the second half of 2021. “Americans looking forward to their newfound freedom this summer in the form of a road-trip vehicle should be doing their research now,” said Ivan Drury, Edmunds’ senior manager of insights. “The summer sales that consumers can typically look forward to might not look the same this year, and even with stimulus checks on the way, the only relief that price-sensitive car shoppers might find might be in lower interest rates and the increased value of their trade-in.” Source: Edmunds

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