February 2019 Southwest Edition by Autobody News

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Caliber Collision’s Changing Lanes Program Offers Ft. Carson, CO, Soldiers Employment, Toolbox The transition from a regimented military environment to the unpredictability of civilian life is one of the most stressful times for many soldiers. Four soldiers from Fort Carson, located near Colorado Springs, CO, graduated stress-free from Caliber Collision’s Changing Lanes Falcon Academy with a $12,000 toolbox and a secure employment offer of a new career in the fast-growing collision repair industry. Changing Lanes is an innovative, free training program for Fort See Changing Lanes, Page 3

The first Fort Carson graduates from the Changing Lanes Falcon Academy are (left to right): specialist Patrick Horn of Oakland, CA; specialist Adrian Jimenez Cruz of Salinas, CA; master sergeant Robert Apfelbaum and specialist McKinley Kerns, both of Colorado Springs

Speakers at SCRS’ Ideas Collide Discuss Their Visions for Industry’s Future by John Yoswick

An automated system that can detect tiny dents or other vehicle “anomalies” within seconds. Collision parts being ordered within minutes of a crash. A not-for-profit data repository that would ensure shops have long-term access to their job file records. These were among the topics covered in a unique TED Talk-style presentation at “Ideas Collide,” a new session that the Society of Collision Repair Specialists (SCRS) hosted during SEMA in Las Vegas in

AUTOBODYNEWS.COM

Vol. 37 / Issue 2 / February 2019

NABC F.R.E.E. Program Teaches Houston, TX, Firefighters New Rescue Skills More than 35 firefighters from various area fire stations gathered this fall at First Choice Collision’s Cypress, TX, location at 11638 Telge Rd. for a hands-on training on the latest techniques in emergency vehicle extrication. First Choice Collision was the first collision center in the Houston area to partner up with the National Auto Body Council’s First Responder Emergency Extrication™ (F.R.E.E.) program to bring this live event. “It was not a question of whether we would or would not have this event. As a family-owned business, we cherish our family, and if this event could help families in our community and our first responders in the area one day, we were glad to do it,” said Mike Matejek, First Choice Collision LLC co-owner.

In crashes where minutes can spell the difference between life and death, first responders to the accident scene need up-to-date information so they can act quickly and safely. Knowing specifically where and how to efficiently cut and extricate can make the difference in saving precious minutes and lives as well as the safety of the first responders. “We see first-hand what a vehicle can go through in an accident. Metal gets pushed around in all directions. It’s no surprise people can get trapped. Giving the first responders the opportunity to practice extrication techniques is the least we can do to give back to a group of men and women who put their lives on the line every day,” said Ronnie Johnston, First Choice Collision LLC coSee NABC F.R.E.E., Page 10

Challenges of Processing Hail or Other Catastrophe Claims Among Discussion at Recent CIC

timating system,” but McDonnell said “cat team” claims handlers aren’t With another hail season approach- always aware of that. ing, a panel discussion at last No“We had to go through that vember’s Collision Industry [PDR] company for a supConference (CIC) offered plement,” McDonnell said. insights from shops, insur“We sent it to them and they ers and paintless dent repair took off a significant amount. companies on reducing fricThey said, ‘We have an tion related to catastrophe agreement [with the insurer claims after a major storm. involved] and you don’t get paid for those things.’ I had Matthew McDonnell Montana shop to call them and tell them, of Big Sky Collision in Monowner Matthew tana described some of the McDonnell said not ‘We have a different regulaall those helping tion in Montana. You cannot challenges of working on an insurer handle disregard repair operations, such “cat team” claims, such catastrophe claims and I just want to let you as those managed by a paintafter a storm will know you’re inconsistent less dent repair company. be aware of laws and regulations in with Montana law.’ They Since 2011, for example, the state in which said, ‘Oh, I don’t have to Montana has had a law that they are working follow Montana law.’” prohibits an insurer from But although some states may “unilaterally disregard(ing) a repair operation or cost identified by an esSee Processing Hail, Page 18 by John Yoswick

Pete Tagliapietra of NuGen IT suggested the industry develop a not-for-profit data repository to give shops long-term access to their job file records and other data

November. SCRS invited 10 speakers to offer ideas or visions related to See SCRS’ Ideas Collide, Page 14

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FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

Changing Lanes

CONTENTS REGIONAL

(& Being Paid) Administrative Fee for Total

7 Accused of Insurance Fraud in Staged

Loss Processing . . . . . . . . . . . . . . . . . . . . . 16

Winter Weather-Related Accidents. . . . . . . . . 6 Caliber Collision’s Changing Lanes Program Offers Ft. Carson, CO, Soldiers Employment, Toolbox . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 HABA Shoots the Breeze (and More!) With Sponsors. . . . . . . . . . . . . . . . . . . . . . . . 8 Influx of Car Repairs After Icy Weather in Abilene, TX . . . . . . . . . . . . . . . . . . . . . . . . 9 NABC F.R.E.E. Program Teaches Houston, TX, Firefighters New Rescue Skills . . . . . . . . . . . 1 Owens Collision Files for Bankruptcy in LA; New Business Takes Its Place . . . . . . . . . . . . 6 Phillips - TX Body Shop Invests in Community, Technology, OEM Certifications . . . . . . . . . . 24 Regional Association Event Announcements: February 2019 . . . . . . . . . . . . . . . . . . . . . . 59 Service King Looks to TX State Technical College for Employees . . . . . . . . . . . . . . . . 12 Star of David Atop AZ Auto Body Shop Honors Jews of Mexico . . . . . . . . . . . . . . . . 16 Twomey Auto Works Embraces New Location on S. Congress Ave. in Austin, TX. . . . . . . . . 10 Unhappy AZ Residents Slash Waymo Tires, Derailing Self-Driving Cars, More . . . . . . . . . 4

AkzoNobel Becomes I-CAR Sustaining Partner . 4 AMi To Host FCA Certified Collision Network Online Training . . . . . . . . . . . . . . . . . . . . . . 56 ASA Appoints Ray Fisher to Serve as

Anderson - Automaker’s Increased Role in Claims Seems Just on the Horizon as Connectivity Happens . . . . . . . . . . . . . . . . . 38 Attanasio - Eric Newell Is Not Afraid to Serve His Community in Different Ways . . . . . . . . 42 Ledoux - Early DRP Programs of the 1960s. . . 34 Phillips - ALLDATA Showcases Diagnostic Scan Tool and Collision Repair Product . . . . 54 Phillips - General Motors Collision Repair Network Starts off With Strong Response from Industry . . . . . . . . . . . . . . . . . . . . . . . 48 Phillips - The Impact of Telematics and Connected Vehicles on the Collision Repair Industry . . . . . . . . . . . . . . . . . . . . . . 28 Sisk - ASA Hosts RepairPal’s Jill Trotta for Webinar on Transparency and Trust . . . . . . . 40 Sisk - Automotive Women’s Alliance Foundation Hosts Holiday Celebration . . . . . . . . . . . . . . 46 Sisk - Dave Luehr’s December Elite Webinar Features Brad Mewes Discussing ‘Financing Growth’ . . . . . . . . . . . . . . . . . . . 36

Savings on Motor Oils, Lubricants for Shops . . . . . . . . . . . . . . . . . . . . . . . . . . 22

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Standards . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Axalta, Plenham Form 3-Year Global Alliance. . 47 Chuck Olsen To Host CIECAst Webinar. . . . . . . 22 CO Navy Veteran Receives Refurbished Vehicle Through NABC Recycled Rides . . . . . . . . . . . 9 Collision Career Institute Celebrates One of Their First Technician Graduates . . . . . . . 44 Collision Works Utilizes Symach’s FixLine Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Concho Careers: What It Takes to Work at a Body Shop . . . . . . . . . . . . . . . . . . . . . . 10 Consumers Confused by Partially Automated Driving Features . . . . . . . . . . . . . . . . . . . . . 60 CREF Benchmark Grant Applications Available to Collision Schools. . . . . . . . . . . . . . . . . . . 60 CREF Career Fairs Pair Eligible Graduates With Transportation Industry Positions . . . . . 56 Student Safety Kits for Collision Programs. . 30 Dave Luehr’s Elite Body Shop Academy Launches Operations Monthly LIVE . . . . . . . 21 Ford Recalls 953,000 Vehicles for Airbag Flying Shrapnel Threat . . . . . . . . . . . . . . . . 58 GM To Double Resources for Electric, Autonomous Vehicles . . . . . . . . . . . . . . . . . 56 Industrial Finishes & Systems Names Vice Chairman. . . . . . . . . . . . . . . . . . . . . . . 21 Ledoux - Early DRP Programs of the 1960s. . . 34 Looks Like More Than the U.S. Government Is Shut Down . . . . . . . . . . . . . . . . . . . . . . . . 4 New Car Technology May Lead to Sticker Shock at Auto Body Repair Shops . . . . . . . . 52 SAAR in Canada Becomes Newest Association to Affiliate with SCRS . . . . . . . . . . . . . . . . . 44 Speakers at SCRS’ Ideas Collide Discuss Their Visions for Industry’s Future . . . . . . . . . 1 Study Pours Cold Water on AI Driving Algorithms . . . . . . . . . . . . . . . . . . . . . . . . . 22 Tesla Owners Go Behind-the-Scenes at a Certified Tesla Repair Center . . . . . . . . . . 58 Tractable Joins CIECA as Corporate Member . . . 4

Subaru Technical Information System

Up to $60 Million Is Available for Testing ADS . 55

– Part 2’ . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

Waymo Plans to Build Self-Driving Plant in Michigan. . . . . . . . . . . . . . . . . . . . . . . . . 54

‘Who Pays for What?’ Finds More Shops Billing

AUTOBODY

asTech Renews Commitment to CIECA

Sisk - Mike Anderson Presents ‘Using the

NATIONAL

Call or Email Now for Rates:

Executive Director. . . . . . . . . . . . . . . . . . . . 55 ASA Partners With Chevron to Provide

CREF Invites Industry Businesses to Sponsor COLUMNISTS

Carson soldiers nearing the completion of their military service to learn skills for a successful new career in the collision repair industry. Participants in the 18-week Changing Lanes program receive certification

WIN Begins Sponsorship Campaign for 2019 . . 27

INDEX OF ADVERTISERS

New Orleans Crash, LA Police Say. . . . . . . . 20 Amarillo, TX, Body Shops See Increase in

and employment opportunities prior to transitioning out of the U.S. Armed Forces. The first Changing Lanes Academy opened in 2017 with Ft. Bragg in Fayetteville, NC, followed by Ft. Hood in Killeen, TX. With the addition of Fort Carson, Caliber Collision expects to train 300 soldiers per year through Changing Lanes.

Continued from Cover

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

Serving Texas, Oklahoma, Louisiana, New Mexico, Arkansas, Colorado, Arizona, Utah and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2019 Adamantine Media LLC.

AkzoNobel Coatings, Inc. . . . . . . . . . . . . . 17 Alloy Wheel Repair Specialists, LLC . . . . . 27 Audi South Austin . . . . . . . . . . . . . . . . . . 38 Audi Wholesale Parts Dealers . . . . . . . . . 53 AutobodyLaw.com. . . . . . . . . . . . . . . . . . 24 AutoNation Chevrolet. . . . . . . . . . . . . . . . 28 AutoNation Chrysler-Dodge-JeepRam NRH . . . . . . . . . . . . . . . . . . . . . . 22 AutoNation Chrysler-Jeep-Dodge-Ram of North Phoenix . . . . . . . . . . . . . . . . . 14 AutoNation Collision Parts . . . . . . . . . . . . 23 Axalta Coating Systems . . . . . . . . . . . . 5, 15 Berge Ford . . . . . . . . . . . . . . . . . . . . . . . 47 Big Mike Naughton Ford . . . . . . . . . . . . . 43 BMW Wholesale Parts Dealers . . . . . . . . . 50 Bob Howard PDC. . . . . . . . . . . . . . . . . . . 45 Chevyland . . . . . . . . . . . . . . . . . . . . . . . . 36 Christopher’s Dodge World . . . . . . . . . . . 43 Christopher’s Mitsubishi . . . . . . . . . . . . . 43 Classic BMW . . . . . . . . . . . . . . . . . . . . . . 40 Classifieds. . . . . . . . . . . . . . . . . . . . . . . . 62 Courtesy Chevrolet-Isuzu. . . . . . . . . . . . . 34 Covert-Chrysler-Dodge-Jeep-Ram. . . . . . 26 Dallas Dodge. . . . . . . . . . . . . . . . . . . . . . 64 Dent Fix Equipment . . . . . . . . . . . . . . . . . 13 Dent Magic Tools. . . . . . . . . . . . . . . . . . . 12 Dominion Sure Seal. . . . . . . . . . . . . . . . . . 6 Don Carlton Auto Group . . . . . . . . . . . . . . 30 Eckler’s Automotive . . . . . . . . . . . . . . . . . 39 ECS Automotive Concepts . . . . . . . . . . . . 18 Emich Chevrolet . . . . . . . . . . . . . . . . . . . 43 Emich Volkswagen . . . . . . . . . . . . . . . . . 43 Equalizer Industries, Inc. . . . . . . . . . . . . . 21 Finnegan Chrysler-Jeep-Dodge . . . . . . . . . 2 Fisher Acura . . . . . . . . . . . . . . . . . . . . . . 43 Fisher Honda . . . . . . . . . . . . . . . . . . . . . . 43

Flatirons Subaru . . . . . . . . . . . . . . . . . 7, 43 Ford Wholesale Parts Dealers . . . . . . . . . 57 GM Wholesale Parts Dealers . . . . . . . . . . 61 Greeley Subaru . . . . . . . . . . . . . . . . . . . . 48 GYS Welding USA . . . . . . . . . . . . . . . . . . 16 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . . 32-33 Hyundai Motor America . . . . . . . . . . . . . . 29 Hyundai Wholesale Parts Dealers . . . . . . . 55 Kia Motors Wholesale Parts Dealers. . . . . 49 Killer Tools & Equipment Corp . . . . . . . . . 35 Larry H. Miller Chrysler-Jeep-DodgeRam/Sandy . . . . . . . . . . . . . . . . . . . . . 19 Launch Tech USA. . . . . . . . . . . . . . . . . . . 63 Matrix Automotive Finishes . . . . . . . . . . . 11 Mercedes-Benz of Littleton . . . . . . . . . . . 43 Mercedes-Benz Wholesale Parts Dealers . 59 Mitsubishi Wholesale Parts Dealers . . . . . 55 MOPAR Wholesale Parts Dealers . . . . . . . 37 North Freeway Hyundai . . . . . . . . . . . . . . 52 Part of the Club . . . . . . . . . . . . . . . . . . . . 43 Peak Kia . . . . . . . . . . . . . . . . . . . . . . . . . 43 Polyvance . . . . . . . . . . . . . . . . . . . . . . . . 20 Ray Huffines Chevrolet . . . . . . . . . . . . . . 41 RBL Products . . . . . . . . . . . . . . . . . . . . . 31 Rickenbaugh Volvo . . . . . . . . . . . . . . . . . 43 SATA Dan-Am Company . . . . . . . . . . . . . 25 South Pointe Chrysler-Jeep-Dodge . . . . . . . 8 Spanesi Americas . . . . . . . . . . . . . . . . . . . 9 Subaru of Little Rock . . . . . . . . . . . . . . . . 44 Subaru Wholesale Parts Dealers . . . . . . . 51 Toyota of Laredo . . . . . . . . . . . . . . . . . . . 42 Toyota Wholesale Parts Dealers . . . . . . . . 54 Volkswagen Wholesale Parts Dealers. . . . 58 YesterWreck . . . . . . . . . . . . . . . . . . . . . . 10 Young Chevrolet . . . . . . . . . . . . . . . . . . . 46

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Unhappy AZ Residents Slash Waymo Tires, Derailing Self-Driving Cars, More The advent of any new technology is accompanied with complaints, as seen with Wing’s delivery drones, but in the case of self-driving cars, there have been more radical expressions of discontent.

attacks since 2017 that range in severity from seemingly pure mischief to more serious acts. The most brazen incident took place in August 2018 when a man armed with a handgun tried to scare the safety driver in an autonomous Chrysler Pacifica. That man in ques-

As Waymo tests and operates vehicles in Phoenix, some Arizona residents have taken to threatening or even damaging the cars. A New York Times report on Dec. 31, 2018 followed up on incidents that were first brought to light by the Arizona Republic earlier that month. There have been at least 21

tion cited the Uber incident that killed a pedestrian earlier that year, and he was eventually charged with aggravated assault and disorderly conduct. Another safety driver was threatened with a PVC pipe, while other incidents involve people throwing rocks, blocking routes and slashing the tires of Waymo vehicles. There were also

by Abner Li, 9to5Google

Waymo Plans to Build Self Driving Plant in Michigan Google’s self-driving car spinoff Waymo said Jan. 22 it will bring a factory to Michigan, creating up to 400 jobs at what it describes as the world’s first plant “100%” dedicated to the mass production of autonomous vehicles. The company plans to spend about $13.6 million to retrofit a to-be-determined manufacturing facility in the Detroit area. In exchange, it will get a state incentive grant worth up to $8 million that was approved by the Michigan Strategic Fund Board. Waymo spokeswoman Alexis Georgeson said the company plans to hire up to 400 people to work at the factory, including engineers, operations experts and fleet coordinators. She said Waymo is looking for a site and hopes to open the plant in the middle of this year. A memo from the Michigan Economic Development Corp. says Waymo will create 100 jobs, with the potential for up to 400, and it chose Michigan despite a “high level of interest” from states in the Midwest, South and Southwest. 4

The company integrates its self-driving system into vehicles it buys from automakers and is currently testing autonomous Chrysler Pacifica minivans in a preferred rider program for passengers in the Phoenix area, but with human backup drivers on board. It plans to expand the service to the San Francisco area but has not given a time frame. Waymo previously announced plans to buy 62,000 Pacificas and 20,000 I-Pace electric SUVs from Jaguar. Waymo has a 20-employee facility in the Detroit suburb of Novi where it tests vehicles in snowy weather. It will locate the new factory in Wayne, Oakland or Macomb counties, where the auto industry dominates the economy with thousands of jobs from U.S. and foreign-based automakers as well as parts supply companies. “As we begin to commercialize our business and vehicle supply grows, we’re laying the foundation for a scalable, robust vehicle integration plan, starting in Michigan,” the company said in a blog.

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

AkzoNobel Becomes ICAR Sustaining Partner

attempts to derail the car while it was autonomously driving. One particular Jeep tried to run the Chrysler Pacificas off the road six times in 2017. In all these cases, Waymo or the safety drivers have not pressed charges. The Alphabet division directs its drivers to first contact the internal dispatch system during incidents. In fact, police contact is reportedly kept to a minimum, with one incident not being reported until four days after it took place. According to the NYT, Waymo in some cases is unwilling to provide footage of the attack. This defeats the benefit of self-driving vehicles always maintaining video of everything happening around the car. Waymo noted that these incidents only represent a small fraction of operation and pushed back against the narrative that it was trying to avoid bad publicity by not pursuing charges. The incidents have not turned Alphabet away, with Waymo noting how “over the past two years, we’ve found Arizonans to be welcoming and excited by the potential of this technology to make our roads safer.” We thank 9to5Google for reprint permission.

AkzoNobel is one of the first paint suppliers to become an I-CAR® Sustaining Partner™. “Technology is playing a bigger role in our industry, and that means we need welltrained technicians who can deliver safer, higher-quality repairs,” says Don Shearer, AkzoNobel Technical Service Manager, Automotive Coatings. “Through our pathyielding partnership with I-CAR, we are supercharging the successful education of our present and future collision repair technicians. At the end of the day, it’s about helping create a better tomorrow.” “The Sustaining Partner program was created to help control the cost of training for collision repair technicians and career and technical school students” says Nick Notte, I-CAR’s Senior Vice President, Sales. “It makes I-CAR training more readily available and affordable for collision repairers and schools. We appreciate AkzoNobel’s support for this important initiative, and look forward to a long and mutually beneficial relationship.”

Tractable Joins CIECA as Corporate Member Tractable recently joined CIECA as a Corporate Member. The company focuses on using AI and computer vision for accident and disaster recovery and offers technology that can write estimates based on photo analysis without the need for an appraiser.

Founded in 2014, Tractable has offices in London, England, New York and San Francisco. Braden Holstege, engagement manager at Tractable, said the company has a large focus on the auto collision space and was looking to

identify the best ways to access and produce data related to estimates. They found out about CIECA while researching BMS and EMS standards. “We joined CIECA as part of the company’s commitment to ensuring that our software is standardscompliant and in the interest of being a good partner to the broader ecosystem of insurers and collision repairers,” said Holstege. “We are looking forward to getting more involved with CIECA at both a business and a technical level.” Holstege said all members of the auto collision ecosystem should be able to freely and easily share data with their partners. “Standards that enable the free exchange of data are critical to our business and beneficial to the industry as a whole,” he added. For more information, visit https://tractable.ai/.

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autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

Owens Collision Files for Bankruptcy in LA; New Business Takes Its Place

Amarillo, TX, Body Shops See Increase in Winter Weather-Related Accidents

by Jeremy Krail and Melissa Moore, WBRZ

by Morgan Burrell, KVII

Owens Collision has filed for bankruptcy, but its building is now the home of an auto repair shop that was incorporated during the last week of December.

The filing comes after months of legal battles over harmful business practices the auto body shop reportedly employed. Last year, Louisiana Attorney General Jeff Landry filed suit against Owens, alleging that its practices and advertising were dishonest. Many customers complained about long and unpleasant dealings with the business, including overcharging for repairs and other exorbitant fees. The state’s suit also claimed Owens misrepresented the

contract customers signed and held vehicles longer than necessary “to increase non-repair fees.” Judge Todd Hernandez ordered the business to correct its “absurd” and “unethical” practices. Despite the recent filing, the business’s old location at 12525 Jefferson Highway appears to be bustling once again. An attorney representing Greg Owens told WBRZ that Owens Collision ceased operations after its bankruptcy filing on Dec. 21. However, bankruptcy documents show the property was donated from Owens Collision to GLO Investments, which is also run by Greg Owens. On Dec. 28, attorney Ashly Earl incorporated Allstar Affordable Collision and Service, LLC. It lists Allstar Collision Max, LLC as its only officer. Allstar Collision Max lists Greg Owens as its only officer. Some Owens Collision signs are still visible from outside the business. We thank WBRZ for reprint permission.

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

The slush left on roadways the morning of Dec. 29 was expected to freeze again overnight and create a slippery mess. Recent winter weather might have affected the number of crashes in the Amarillo, TX, area and made for dangerous driving conditions. There were nearly 150 wrecks in Amarillo from midnight Thursday, Dec. 27, until 6 a.m. Saturday, Dec. 29. The Amarillo Police said that is a lot more than the amount that took place during that same time in 2017, when they only worked 64 wrecks. While unfortunate for drivers, local body shops have been busy and hard at work. “So this one actually hit another car, and you see the result of it—suspension damage,” said Kenny Purkey, body shop manager at AutoNation. Purkey said he has seen a lot of cars towed to his body shop lately. “As of today, it’ll be 13,” said Purkey. “At this time, that’s very little because a lot of people don’t turn them in immediately. They try to figure out if

they want to pay for it out of pocket or have insurance cover it.” Terence Bernard, owner of Bernard’s Advanced Collision Body Shop, said he has seen a lot more traffic at his shop too. “Right now, the winter time is typically slow, but these winter events do cause a spike in business,” said Bernard. More traffic means each shop will have more work. “So every dollar, we have to work hard for; every job that comes in, we have to account for; every operation, we have to do,” said Bernard. Not everyone will bring their car into the shop after a minor slip and slide, but Purkey said skipping out on a simple check-up can be hazardous for the driver. “There may be stuff that happens within the computer system that codes, and that affects the next accident or operation, and the list goes on and on,” said Purkey. It is an extra step that could prevent your car from getting into a winter weather accident in the future. We thank KVII for reprint permission.

autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

HABA Shoots the Breeze (and More!) With Sponsors by Chasidy Rae Sisk

On Dec. 1, the Houston Auto Body Association (HABA) hosted a Sponsors Appreciation event at the Providence Plantation Ranch just outside of Houston, TX. According to HABA President John Kopriva, “Our main purpose was to let our sponsors know that we appreciate their continuing support. Without each one, we could not have accomplished the growth and changes that we made during 2018.

Attendees enjoyed a delicious meal of BBQ brisket, ribs, chicken and links as well as baked beans, potato salad, deviled eggs, coleslaw and more

“We had a great time, and everyone enjoyed the event. The event was well-attended, including spouses. This

was a great opportunity to mix, mingle, relax and enjoy the outdoors.” A delicious meal was prepared by one of HABA’s directors, David Kopriva, who was the “Pit Master” for the day. Food preparations began the night before, with BBQ brisket, ribs, chicken and links. The Pit Master cooked sides that included baked beans, potato salad, deviled eggs, coleslaw and more. John gave a brief history of the ranch, which comprised 6,000 acres and originated in the early 1800s. He shared, “The ranch was a sugar cane and cotton plantation, and the original plantation mansion was only taken down within the last year. Once cotton and sugar cane were harvested, they were transported utilizing the Brazos River, which adjoins the plantation. “History records that it was not unusual for the plantation to be frequently raided by marauding Indians. Today, the ranch is tranquil with towering 100-year-old oak trees and supports an abundance of white tail deer, wild hogs, quail and dove. Upon entering the ranch and driving towards the pavilion, everyone noticed two opposing 40-foot silos built and painted (one yellow, one green) to resemble

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

two Remington shotgun shells. It turns out that these two structures are skeet towers that are two of eight competition skeet ranges.”

HABA hosted a Sponsors Appreciation event at the Providence Plantation Ranch on Dec. 1

One of the day’s highlights was a friendly competition between some of HABA’s directors and sponsors that brought their shotguns to the skeet and trap ranges. Guests were treated to some professional and accurate shooting. “Ronnie Brush of Westside Lexus challenged Mike Fatter of Enterprise Rent-A-Car to skeet shooting, which was a fun challenge to watch,” John recalled. “A lot of the guys were amazed by how close the ranch is to Houston—less than 30 minutes away. Several noted that they have to travel

six hours or more to south Texas to find trophy deer that are frequently spotted grazing onsite near the ranch pavilion.” In a short business update, Larry Cernosek, legislative coordinator for HABA, shared an update regarding the upcoming 2019 Collision Day scheduled for Feb.12 in Austin, TX, at the State Capitol. This will be a joint effort with the Auto Body Association of Texas (ABAT). The purpose of the trip to the Capitol is to put repairers and other industry representatives in direct contact with state leaders. John noted, “The Texas collision repair industry is ready to stand up as a collective force for change, emphasizing ‘Safety and Enforcement of the Texas Consumer Bill of Rights.’” John wrapped up a fantastic day to explicitly thank an enthusiastic group of sponsors. “We have 26 devoted sponsors who each stand up for HABA to make these events and training meetings possible. We couldn’t be more grateful for their support,” he said. For more information about the Houston Auto Body Association, visit www .habaonline.org.

Influx of Car Repairs After Icy Weather in Abilene, TX by Nathan Greve, BigCountryHomepage.com

More than 150 accidents were reported Jan. 2—Jan. 3, which means a lot of people have some repairs on the horizon. For auto body shops, that means a busy few weeks are on the way.

“There will be an influx of business because of it, but it doesn’t happen immediately,” said Barrett Collision Center owner Rocky Champion. The influx is a sort of mirror of how road crews prepare for winter weather. Crews have a few days ahead of a storm to get ready, and the car collision centers have a few days after the storm as drivers and insurance companies sort through the accidents. Champion said, “A lot of

times there [are] a lot of wrecks reported, but there’s going to be double the amount of accidents that really happened because they’re not all reported.” The good news, Champion said, is that the majority of wrecks aren’t severe. “Someone just slides around a little bit, hits a curb, slides into the car in front of them because they can’t slow down fast enough,” Champion said. That is enough to create a big backlog. However, since many of those wrecks don’t leave cars a total loss, the work is usually scheduled in advance to keep drivers with their vehicle for as long as possible. “Usually maybe a week, two weeks, depending on how bad it is,” Champion said. We thank BigCountryHomepage .com for reprint permission.

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CO Navy Veteran Receives Refurbished Vehicle Through NABC Recycled Rides by Kelly Werthmann, CBS4 Denver

The holidays got a jump-start on Dec. 19 for Navy veteran Richard Shock in Longmont, CO. He was the recipient of a pretty large gift. “It’s blue! I was in the Navy— it’s blue, it’s perfect!” Shock said with a smile. Shock was given a practically brand-new car to help keep him on his road to recovery, thanks to GEICO and Caliber Collision. He spent the last several years rebuilding his life after struggling with addiction—losing his family and home along the way—but is now working for the VA to help other vets in need. “Helping them with transitional housing, helping them with health care needs, mental health needs,” Shock explained. While Shock is now able to support himself, he’s not at the point where he can afford a car. With the help of the nonprofit Soldiers Angels, Shock was selected to receive a 2017 Hyundai Sonata. The vehicle was donated by GEICO to Caliber Collision, where

a team of volunteers restored the once-totaled car to nearly new condition. “They come in on the weekends, come in on their days off, and they do the repairs on the vehicle themselves,” Joey Chiles with Caliber Collision told CBS4. Beyond the car, they also surprised Shock with a trunk full of gifts. Inside were all kinds of outdoor gear so Shock can reconnect and make memories with his kids. “We’re going on some climbing trips for sure,” Shock said. Shock said he’s overwhelmed by the generosity and knows he will treasure his new car and all the many gifts for years to come. “It’s going to improve the quality of life for me and my kids, for sure,” he said. Shock’s special gift is part of the National Auto Body Council’s Recycled Rides program, in which collision repair businesses repair donated cars to give to people in need. We thank CBS4 Denver for reprint permission.

autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

Twomey Auto Works Embraces New Location on S. Congress Ave. in Austin, TX by Taylor Jackson Buchanan, Community Impact Newspaper

In 1979, Don Twomey was repairing cars behind the Sigma Chi fraternity house at the University of TexasAustin. Forty years later, he is still fixing cars—in a South Austin, TX, collision and auto body repair shop that bears his name.

Don Twomey (r) runs Twomey Auto Works with his son, Tanner (l). Credit: Taylor Jackson Buchanan, Community Impact Newspaper

“This is something I grew up doing—tinkering with cars,” Don said. “Some people are just born to be car people, and I guess I’m one of them.” He said he started Twomey Auto Works from the ground-up with little money and simple equipment. The 40-year-old business spe-

cializes in repairing cars that have been damaged in a collision, dinged or scraped. Common services at the shop include fixing dents and hail damage and completing paint and frame-straightening jobs. Don also restores classic cars. He is working on a 1953 Cadillac and 1967 El Camino, he said. His son, Tanner, works at the shop as well. Like his father, Tanner said he grew up tinkering with cars and spending his summers learning the trade. “We’re trying to grow this as a family business,” Don said. “We started with a one-and-a-half car garage and expanded and expanded. There are 20 overhead doors now.” The Twomeys recently purchased a new lift and upgraded alignment machinery and a chamber for auto body painting. The new and upgraded equipment arrived on the heels of a move this fall to 4930 S. Congress Ave., four miles south of the previous shop. “We lost our lease,” Don said. “It got caught up in all that new development. We were getting pushed out.” Don has moved locations before. The shop has been located on North

Concho Careers: What It Takes to Work at a Body Shop by Erin Bailey, KLST-TV/KSAN-TV San Angelo, TX

To work in an auto body shop, going to a trade school can be beneficial. However, as long as you are somewhat mechanical, it is a job you can work towards. “If they can do some mechanical skills with their hands, then we can train them,” said Jim Osborn, owner of Concho Collision in San Angelo, TX. Along with having some mechanical skills, one must be very detail-orientated with a general knowledge of cars, and the rest can be taught. “Be able to look at a vehicle, disassemble it, repair it, put it back together, and put it back on the road. Cars are very complicated, and it’s not easy to fix them,” said Osborn. There are many different positions at a body shop, from a painter to glass repairer. It is a step-by-step process to get one’s car “disassembled, repaired, sent to the paint shop, painted, put back together, cleaned up and back on the road,” said Osborn. Osborn said it takes five to six years for someone to become a 10

skilled technician, which is hard to come by. Osborn said, “There are not a lot of trained technicians that do this, and it’s a really good profession. A good skilled technician can make upwards of $100,000 a year.” Being a skilled technician may take years to master, but it is a job that can provide for a lifetime. “It is a life-long career. Once somebody comes into this field—I mean, you can have an individual who doesn’t have any training, very little education, come in here, and if they’re able to use their hands and fix a car, they have a skill for the rest of their life [that] other companies will want to hire them [for]. It’s hard to come by—to find that individual.” We thank KLST-TV/KSAN-TV San Angelo, TX for reprint permission.

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Lamar Boulevard, Anderson Lane, and 12th and Lamar throughout the years. But after 28 years at 1009 S. Congress Ave., Twomey said the surrounding developments were so dense that it was difficult to operate a car shop on about a quarter of an acre.

Twomey Auto Works specializes in repairing cars that have been damaged in a collision, dinged or scraped. Credit: Taylor Jackson Buchanan, Community Impact Newspaper

The new building is bigger— sitting on multiple acres—and offers ample parking, a storage lot in the back and a parts delivery room. “You know how good things sometimes come out of bad things? Getting run out ended somewhat nicely,” he said. We thank Community Impact Newspaper for reprint permission.

Continued from Cover

NABC F.R.E.E.

owner. Keeping firefighters up-to-date on the latest new technology in vehicles is a challenge for every local fire department. The NABC’s F.R.E.E. program keeps first responders abreast of the rapid changes in vehicle design. High-strength steel, airbags, advanced restraint systems, onboard technology and safety around alternative fuel vehicles were all covered in the program. The dangers facing first responders if need arises to “cut” the vehicle for rescue were highly stressed. Along with First Choice Collision LLC’s commitment to bringing this program to Houston and facilitating the event, State Farm donated five vehicles for training use and Hurst Jaws of Life supplied the instructors and extrication demonstrations. Another valued partner included LKQ Corporation, who provided the towing services along with a delicious dinner for all the event guests. Through the efforts of all the parties involved, the event was a huge success.

autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

Service King Looks to TX State Technical College for Employees Blake Cole grew up reading automotive magazines and at 10 could eagerly recite facts about cars to anyone who would listen. As he grew up and began working, Cole also developed interests in accounting, fashion merchandising and restaurants. The 2003 Midway High School alumnus said his life became focused when he enrolled at Texas State Technical College and began taking classes in the Auto Collision and Management Technology program. He received an associate degree in 2008. “Once I went to TSTC, everything stuck,” he said. After graduation, he worked at L3 ISR Systems in Waco painting airplanes and later moved to Missouri to work in the auto collision field. “Just knowing I had learned something and could use it was helpful and a good feeling,” said Cole, now 34.

Clint Campbell, TSTC’s statewide department chair for Auto Collision and Management Technology, said there are goals for increasing the number of students studying in the program. “We need to be getting our faces in front of these high school students, probably sophomores and up,” Campbell said. The number of automotive body and glass repair jobs is expected to grow to about 195,000 nationally by 2026, according to the U.S. Bureau of Labor Statistics. Cole said the auto collision industry also needs people with electrical, welding and computer programming and networking experience. New hires at Service King are placed with experienced technicians in the company’s year-long apprenticeship program at select locations. Cole said company recruiters can build relationships with technical colleges to find potential employees. James McGee, 35, of Austin was hired by Service King in February and placed in its apprenticeship program. He received an associate degree from TSTC’s Auto Collision and Management Technology program in 2010. “Get in as early as possible if that’s what you want to do,” McGee said about making a career choice. “Shadow Blake Cole is a graduate of Texas State Technical College as many people as you want.” in Waco’s Auto Collision and Management Technology McGee already had some program and is general manager of Service King in Leander industry knowledge, havBeing hired at Service King ing worked at small body shops, but brought Cole back to Texas. He is said he was glad to learn about currently the general manager at the pulling techniques and heavy colliLeander location. sion work through Service King’s “Coffee keeps me motivated,” new hire initiative. Cole said. “But it’s always different. “Our job is mainly to problemI’m never going to come into the solve,” McGee said. “I like the peosame thing every day.” ple, and I like to fix things. I like the Cole said he has seen an employ- sense of accomplishment when it’s ment gap develop between workers in done. The field will drive you crazy their 20s and those in their 40s and at times and make you head-overolder who have been in the auto col- heels excited at other times.” lision industry for several years. As Cole said employees complete these workers age and retire, new work certifications through the employees are needed to fill posi- Inter-Industry Conference on Auto tions. Collision Repair, or I-CAR, which AUTOBODY

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provides training in all branches of the auto collision and management industry. Vincent James, 25, of Leander is a Service King technician who works primarily on tearing vehicles

was extremely hooked on it. There is something about body work that drew me into it.” James said he likes the hands-on work and making customers’ vehicles look good. Robert Castaneda, 29, of Jarrell graduated with an associate degree in 2012 from TSTC’s Auto Collision and Management Technology program. He said wrecks caused by bad weather tend to mean that he and his coworkers stay busy. He said the rise in aluminum exteriors will mean more training Robert Castaneda is a graduate of Texas State Technical and adaptation for workers College in Waco’s Auto Collision and Management in the future. Technology program and is a technician at Service King “I’m doing it until my in Leander body won’t let me do it down early in the repair process. He anymore,” Castaneda said about his is a 2015 graduate of TSTC’s Auto work. “Always listen and pay attenCollision and Management Technol- tion. There is more than one way to do things.” ogy program. “I like cars, and I like art. So I thought about auto collision as the For more information on Texas State melding of the two,” James said. “I Technical College, go to tstc.edu.

autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

Continued from Cover

SCRS’ Ideas Collide

the future of collision repair in 10 minutes or less. Dan Langford of the Nevada Center for Advanced Mobility, for example, said he envisions that telematics data from a vehicle involved in a crash, combined with OEM data and historical claims data, could enable the needed parts for the repair of that vehicle to arrive at the shop before the car itself does. “I’m willing to bet you can actually start getting a clear idea of estimating the cost of the damage in most crashes [just from the data],” Langford said. “So within an hour or half-hour of an incident happening, you have an understanding of what parts are going to be needed to repair that. It’s not completely crazy to think those parts could be ordered and shipped before the vehicle even arrives at your shop. The depth of data may not be quite there yet, but it’s an interesting direction to start heading in.” Langford also said he believes

that few people will personally own an autonomous vehicle and that such vehicles primarily will be used as part of “mobility fleets,” such as Lyft or Uber or other monthly subscription services that provide transporta-

Dan Langford of the Nevada Center for Advanced Mobility said telematics data from a vehicle could enable a parts order for a repair to be determined at the crash scene

tion on demand. (He noted that Lyft currently is operating dozens of autonomous vehicles in Las Vegas, shuttling passengers between properties on the Strip.) “By the time we have significant penetration of autonomous or highly automated vehicles, you won’t need one yourself,” Langford said. “It’s just not going to be cost-effective anymore.”

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

What will that mean for collision repairers? “Does that mean you should align yourselves with more fleet operators,” Langford asked rhetorically. “What role can you play on a regional basis in supporting these potentially nationwide fleets of vehicles?” He said collision repairers need to understand their role—and liability—in repairing what he called the “eyes and ears” of increasingly autonomous vehicles. “And I do say ears,” Langford said. “The Waymo autonomous vehicles operating in Phoenix are listening for things like emergency vehicles. The video and lidar sensors are the eyes of the vehicle. So if you’re replacing a panel and it’s incorrectly aligned, you’re potentially threatening the riders in that vehicle. Your role becomes incredibly important.” Not-for-Profit Data Repository In his “Ideas Collide” presentation, Pete Tagliapietra of NuGen IT suggested the industry develop a notfor-profit data repository that would

ensure shops have long-term access to their job file records (even if they have switched estimating or shop management systems) along with global industry data on such things as labor rates and cycle time. Tagliapietra compared such a database to the Property & Liability Research Bureau, to which participating insurers submit claims information. “I built a new home several years ago, and there was water damage when the patio doors blew open and it rained,” Tagliapietra said. “That information will stay with that home for as long as that home remains in existence. That’s not such a bad idea for the next insurer or the next owner who buys that house. Maybe we could do the same thing in automobiles and collision repair.” Tagliapietra said companies—including his—collect data from some shops that those companies are then able to “use internally to our company’s benefit,” but collision repairers in many cases get little in return for the data they give away. “Should insurance companies have the advantage of having all

that information available, while collision repairers really don’t have it?” Tagliapietra said. “Why shouldn’t everyone have the opportunity to have access to the benefits of that data?” He said a shop subscribing to such a database, for example, could see how they stack up in terms of cycle time with the industry as a whole. In theory, they could review documentation of prior repairs made to a particular vehicle or contact others who have made similar repairs on a make and model of a vehicle that is causing them challenges. Imagine, Tagliapietra said, being able to “speak to another repairer who has gone through a similar situation and understand what you are up against before you start the repair.” He said there are obvious benefits of having access to such a collection of data for other segments of the industry as well, including automakers, parts and paints suppliers, etc. “Less than a handful of companies [currently] really manage over 80 percent of that information,” Tagliapietra said. “I don’t believe that’s the right approach that this industry needs

to take in years to come.” Automated Damage Report in Seconds It might not be immediately clear why a representative of an Israeli company that has developed threatdetection security systems was a logical choice to speak at a collision

Amir Hever said a security system his company developed to detect vehicle anomalies could be used to spot collision damage quickly

repair industry event. But SCRS’ Aaron Schulenburg said he likes to bring in new voices with ideas that may have application within the industry, which is why Amir Hever, CEO of UVeye, was one of the 10 speakers during the “Ideas Collide” session.

Hever said that years ago when he was driving into a parking lot at a government building in Israel, a security guard used a mirror to look briefly under his vehicle; more than a decade later, he encountered the same process. “Nothing had changed in the past 15 years,” Hever said. “When I asked the security guard whether he could see something, he said, ‘No, but if something happens while you’re inside, they will check the cameras and see that I tried to do my job.’” That led Hever to develop a system that scans the underside of a vehicle traveling over it, immediately generating a 3D image, and using that information to identify any “anomalies in the undercarriage.” The potential application beyond security? UVeye has added cameras and microphones to collect similar data all around the rest of the vehicle to detect “everything from a small [2 mm] scratch or dent, to problems with the brakes or suspension, exhaust pipe, tires, everything.” Hever said such a system has obvious uses for automaker produc-

tion lines, rental car return lanes, dealership pre-delivery inspection stations—and possibly collision repair. “Think [about] how simple it [would] be if you [could] simply drive through a system and get a full report about the status of the vehicle,” he said. “Think [about] how it would shorten the time when you arrive at the dealership or garage, and by the time you get to the receptionist, they have a full report with everything that is not okay with the car.” The company’s website (www .uveye.com) includes a video of how the system can be used for security and information on how it could play a role in other types of vehicle inspections. John Yoswick, a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (www.CrashNetwork.com). He can be contacted by email at john@Crash Network.com.

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autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

Star of David Atop AZ Auto Body Shop Honors Jews of Mexico by Nick Enquist, Jewish News

There’s no shortage of auto body repair shops in the downtown Phoenix, AZ, area; so much so that it’s difficult to distinguish one from another. That is, with the exception of Miguel’s Auto Body on 16th Street between Van Buren and Monroe streets. Atop the business is a 5-foot-tall Star of David. One patron who frequents the Circle K next door said the star has been there since he’s been in the area. He just assumed the owners were Jewish—as have many people, undoubtedly, who have noticed the star as they’ve driven past. But the body shop’s owner, Miguel Lopez, is actually Catholic. So how did a Star of David end up perched above Lopez’s store for more than 30 years? Lopez was born in the state of Guanajuato, Mexico, and lived in Mexico City as a child. He grew up in an area called Tecamachalco, which has a large Jewish population. Lopez said he developed strong connections and became friends with many of his Jewish neighbors. In fact, he said those connec-

tions helped make him the man he is today—and he feels Jewish in his heart.

Credit: Nick Enquist

“I think that Jewish people are the hardest-working and smartest people I’ve met,” Lopez said. “I’ve tried to be like them as I’ve built my business.” Lopez was raised a Catholic, and he and his wife raised their children Catholic as well. But when Lopez first arrived in the U.S., he just didn’t feel as strong a connection to the Catholic community. “My father didn’t know anyone when he got here,” said Guillermo, Lopez’s son. “So he built the star as

‘Who Pays for What?’ Finds More Shops Billing (& Being Paid) Administrative Fee for Total Loss Processing An upward trend in the percentage of shops across the United States regularly being paid an administrative fee for processing total losses by the eight largest national insurance companies continued this past year. Back in 2015, a “Who Pays for What?” survey conducted by Collision Advice and CRASH Network found that less than half (46 percent) of shops that responded said they were paid “always” or “most of the time” when charging such a fee. That percentage grew to 53 percent in 2016 and to 57 percent in 2017. The same survey this past fall found that 59 percent of the more than 500 shops that responded to the question reported regularly being paid an administrative fee for processing total losses. At the same time, the percentage of shops that said they have never sought such an administrative fee declined from about 30 percent in 2015 to about 25 percent in 2018. Mike Anderson of Collision Advice said the growing prevalence of total loss administrative fees is not surprising as vehicle technology and insurer-required documentation re16

lated to totals continue to make the process more complex and timeconsuming. He said the first of the four 2019 “Who Pays for What?” surveys, which focuses on “not-included” refinish operations, is open now through the end of January at: https://www.surveymonkey.com /r/9TSMPXY. Anderson said the survey, which will take about 15–25 minutes, can be completed by any shop owner, manager or estimator who is familiar with the shop’s billing practices and the payment practices of the largest national insurers. Each shop’s individual responses are held in the strictest confidence; only aggregated data is released. Survey participants receive a report with complete survey findings at no charge. The findings are broken down by region, insurer and DRP vs. non-DRP. The report also includes an analysis and resources to help shops better understand and use the information presented. The results of previous surveys are also available online at https://www.crashnetwork.com/ collisionadvice.

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

a way to have a daily reminder of his Jewish connections.” The elder Lopez built the Star of David decoration himself using nothing more than seven pieces of long pine wood and some nails. He then wrapped it with white string lights so it could be lit at night. In the center of the Star of David is a flashing Chanukah ornament. “We never use it as a reason to attract anybody,” Guillermo said. “It’s not really something people comment on, either. In all the time I’ve worked here, maybe two or three people have noticed it. Although, we did have one Jewish customer who came to us because he heard about the star.” The star was originally mounted above the entrance to the auto body shop’s office, but it was later moved after heavy winds knocked it over. The elder Lopez has been in the auto body business since he was a teenager. He and his family moved to the United States in 1978, and that same year he opened up his auto

body repair shop in Phoenix. In 1982, he moved the shop to its current location at 101 N. 16th St. Since then, the Lopez family has expanded the auto body shop and now has multiple locations down the street. Guillermo joked that the only locations they couldn’t own are where a Jack in the Box and the Circle K sit. He said he wants to keep growing the business until all of 16th Street has Lopez auto body shops. When asked if they observed any Jewish traditions or holidays, Guillermo said they weren’t particularly religious and didn’t celebrate many Christian holidays, either. Both father and son said they are simply too busy to take any time off. “The store is my life; it’s my holiday,” Lopez said. “So I really want to spend my time on working on it.” We thank Jewish News for reprint permission.

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of initially working with a particular insurer, he brought in two seasoned adjusters to look at a hail-damaged vehicle. “These were 20-year guys,” waive their licensing requirement for adjusters who come into the states as Morrison said. “But before they even part of a “cat claim,” they don’t started writing the sheet, they both waive the requirement for state laws looked at each other and were saying, to be followed, McDonnell said. He ‘What do you see? Are those nickels? said shops should understand what Are they quarters?’ It was a debate, their state requires of those who and it shouldn’t be.” David Pinto of PDR Nation said come in temporarily to assist with another issue the industry faces is catastrophe claims. “Our [insurance] commissioner’s when his company is hired by a body office wants them to register with the shop to handle PDR claims originally state,” McDonnell said. “So they will estimated by another PDR company now follow Montana regulations. It’s that has a contract with a particular $100 [to register]. It’s not like it’s a insurance company. “So the customer is coming to big thing. But it’s the fact that we’re all playing by the rules. That’s a big me, but I have to send my supplements to a competitor,” Pinto said. deal to me.” “I’ve waited several weeks for a claim to get processed Handling supplements because it has to go through The other panelists at CIC my competitor who has no were asked to explain how incentive to put that claim collision repair shops should through. They’d rather hanhandle supplements on cat dle the claim themselves claim estimates prepared eifrom start to finish. They ther by PDR companies or Bo Opansyuk of Hi-Tech PDR said don’t want someone else insurer cat teams. his multi-location having it. So I have con“On all of our estimates company lists you will see an appraiser contact information cerns about the relationships that are being created. name and phone number, so on each estimate that’s usually who we’re as to who handles I think the repairers themany supplements selves need to be asking looking to be the contact for on that claim more questions as these rethat car,” Chris Andreoli of lationships evolve. It’s very compaProgressive Insurance said. Bo Opansyuk of Hi-Tech PDR rable to what’s happened in the glass said his multi-location company sim- industry. You know how things have ilarly lists an estimator name and changed in the glass industry. This is supplement direction on the estimate. what we’re looking at in the PDR in“If we write the estimate, we dustry, and that’s a concern for me.” McDonnell said his company would handle that supplement internally,” he said. “We have an internal now has PDR technicians on staff supplement division, and if there’s year-round, but has previously alstaff still out in the field, they will do lowed PDR suppliers to use shop space following major hailstorms. the follow-up visit to the shop to oversee that supplement from the begin- He said there are pros and cons for bringing in the outside help. ning to the end.” “There are some incrediMichael Morrison of ble advantages. It’s hundreds Catastrophe Solutions Interof claims for maybe one carnational said the subjective rier, and boom, they’re all in nature of hail claim PDR – your shop,” he said. “You based on different providers’ have the opportunity to fix standards and capabilities – results in a lot of unneces- Michael Morrison them [beyond the PDR work]. It’s almost like you sary supplements. said he’d like to “It really shouldn’t be a see less subjectivity can work on one carrier’s in terms of PDR cars and you’re busy.” debate,” Morrison said. “It is estimates But a potential downside, a dime-sized dent, so you write it for a dime. You don’t write it he said, is if vehicle owners don’t feel like they were choosing your shop but for a nickel or a quarter.” But he said as part of the process felt like they had to use your shop. Continued from Cover

Processing Hail

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

parts in a recent 12-month period, just 50,000 fewer than the number of used parts it paid for during that same time. The BAR more recently codified its rule that all parts must be identified only as new, used, rebuilt, At upcoming CIC meetings Based on input from CIC partici- reconditioned, OEM or non-OEM. Speaking at CIC in Novempants at CIC last fall, attenber, Scott Biggs of Assured dees at future CIC meetings Performance Network said this year likely can expect a it really should be an interreturn to the issue of “optindustry entity like CIC OE” and “alt-OEM” parts. that addresses the confuIt was a topic discussed at sion about “opt-OE” and several CIC meetings in “alt-OE” parts. 2016, at a time when the David Pinto said “Are we going to let anCalifornia Bureau of Auto- he’s concerned that as insurers form other body figure this out, motive Repair (BAR) anrelationships with or are we going to get our nounced that the unclear or PDR providers, one inconsistent use of “alt-OE” PDR provider may heads together and come up or “opt-OE” designations have to go through with a better plan and start a competitor to pushing it out to the legislameant the terms could no get a supplement tors or [regulators],” Biggs longer be used on customer handled said. “We talked about this estimates or invoices in that state without providing additional in- literally two years ago, [but] nothing formation about such parts, includ- has been done about it. So we waited for the BAR to do it. We can do beting what warranty they carry. That hasn’t appeared to slow the ter. This ought to be one of our principal objectives to address.” use of such parts; a Farmers InsurKen Weiss of SSF Imported ance executive last year said his company paid for 200,000 “opt-OE” Auto Parts agreed that the industry “They may feel like they were herded in and are just a claim to you,” he said. “When you go through that many customers, it’s hard to give that one-on-one attention.”

autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

needs to standardize part type definitions. “We have three estimating platforms, and several parts procurement portals, and they all call the same parts something different,” Weiss said. “I push our parts to a third-party administrator, and it’s like sausage: I have no idea how they will come out [described] on the other end. And I’m not necessarily happy with how they come out.” The next CIC meeting will be held April 17-18 in Nashville, Tenn. Check the CIC website (www.CIC link.com) for details. Tours of Nissan’s assembly plant in Smyrna, Tennessee (where the Altima, Maxima, LEAF, Pathfinder and Rogue are produced), are being organized in conjunction with the meeting; visit https://tinyurl.com/NissanTour to register. John Yoswick, a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (www.CrashNetwork.com). He can be contacted by email at john@Crash Network.com.

7 Accused of Insurance Fraud in Staged New Orleans Crash, LA Police Say by Laura McKnight, NOLA.com, The Times-Picayune

Seven New Orleans-area residents, mostly from St. Bernard Parish, have been arrested in an insurance fraud scheme involving a staged car crash, state police said Jan. 3. The recent arrests cap a roughly five-month investigation into the October 2016 crash in the Lower 9th Ward of New Orleans. According to investigators with Louisiana State Police, the group staged the crash and then made false insurance claims for injuries and property loss. Those arrested include:

• Davis Lee White, 31, of Chalmette • Stephanie Dubea White, 50, of Chalmette • Rachel Lynn White, 29, of Chalmette • Craig Michael Spadoni Sr., 47, of Meraux • Marvin Dale Walker, 27, of Violet • Dorothyjane Rose Hohensee, 25, of New Orleans • Lydia Dorothy Hohensee, 42, of Meraux

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

The investigation into the crash began in August after state police detectives were tipped by the Louisiana Department of Insurance about possible fraudulent insurance claims stemming from a 2016 crash. The crash was reported on Oct. 14, 2016 at the intersection of Law and Forstall streets and involved a rented 2016 GMC Sierra truck and a 2012 Chevrolet Malibu, state police spokeswoman Melissa Matey said. Following the crash, the seven suspects filed a crash report with the New Orleans Police Department and made insurance claims with the intention of receiving a monetary settlement, Matey said in a news release. State police did not say how investigators determined the crash was staged, but Matey said detectives obtained a confession. The group of seven was booked into the Orleans Justice Center jail, each with automotive insurance fraud, criminal damage to property with the intent to defraud, injuring public records and filing false public records. State police announced the investigation and arrests after making the final arrest Jan. 2. Booking photos of the accused were not available

the afternoon of Jan. 3. According to Orleans Parish court records, Spadoni was arrested Sept. 18, 2018, Stephanie White and Rachel White were booked Sept. 20, 2018, and Dorothyjane Hohensee was booked Sept. 27, 2018. Walker was arrested Oct. 30, 2018, court records show. Spadoni’s bond was set at $10,000. Bond for Stephanie White and Walker was set at $4,000 each, according to court records. Rachel White’s bond was set at $5,000. Dorothyjane Hohensee was released on her own recognizance. Orleans Parish court and jail records did not include information on Davis White or Lydia Hohensee. None of the group remains in the Orleans Justice Center jail, jail records show. Anyone with knowledge of a fraudulent scheme or the location of a stolen vehicle is asked to notify Louisiana State Police by emailing insurance.fraud.unit@dps.la.gov or using the Louisiana State Police online reporting system at www.lsp.org. Click on the “Suspicious Activity” link. We thank NOLA.com, The TimesPicayune for reprint permission.

Industrial Finishes & Systems Names Vice Chairman

Industrial Finishes & Systems Inc. is pleased to announce the appointment of Gay Brown as Vice Chairman. As the daughter of Industrial Finishes Chairman, Stuart Barr, Brown has extensive experience in the business and has previously filled many roles at the company. Industrial Finishes & Systems is a privately held company owned by the Barr family. Industrial Finishes & Systems President Glenn Duckworth said, “The Industrial Finishes management team is grateful to the Barr family for their unwavering support. The appointment of Gay Brown to this position reflects their commitment to our business and our continued growth.” Brown will be based in the Eugene and work with Industrial Finishes’ employees and customers in each of Industrial Finishes & Systems’ markets, including automotive, recreation vehicle, aerospace and industrial.

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Dave Luehr’s Elite Body Shop Academy Launches Operations Monthly LIVE Dave Luehr, collision repair industry expert and founder of Elite Body Shop Solutions, is excited to announce the release of the latest training from the Elite Body Shop Academy (www.elite bodyshopsolutions.com/academy).

The course, Operations Monthly LIVE, is specifically designed to help collision repairers receive interactive monthly training and support to reach their operational goals. Dave Luehr’s Elite Body Shop Academy was created in 2018 to provide collision shop personnel modern operational, leadership and general body shop education in an easy-toaccess online video format. People can sign up for free at the academy to access their own private content accounts.

“My observations lately indicate that body shop leadership and their teams work way too hard for the results they are getting.” said Luehr. “Shops that will thrive in the future desperately need a better approach. My purpose in launching Operations Monthly LIVE is to share these much-needed operational secrets with our industry.” Luehr is offering the first LIVECAST for free on Jan. 8, 2019, at 10 a.m. CST. During this one-hour training, he will share a simple system of operational goal-setting and execution that will help body shop executives proactively regain control and find operational success like never before. To attend this LIVECAST, visit www.elitebodyshopsolutions.com/ academy and sign up for Operations Monthly LIVE. Those who choose to subscribe to future monthly LIVECASTs will be given an opportunity to interact live with Luehr while learning worldclass operational techniques and much-needed leadership fundamen-

tals. This blend of educational content will allow participants to successfully implement and sustain the operational techniques learned each month.

“My observations lately indicate that body shop leadership and their teams work way too hard for the results they are getting.” — Dave Luehr

To learn more about how you can change your business for the better, check out www.elitebodyshop solutions.com/academy and look for Operations Monthly LIVE or email info@elitebodyshopsolutions.com.

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Chuck Olsen To Host CIECAst Webinar

Chuck Olsen, executive director of operations for AirPro Diagnostics, will host the next CIECAst webinar on Tuesday, Feb. 12 at 11 a.m. CST: “Interpreting and Documenting Scan Data, Trouble Codes, Calibration.” During his one-hour live broadcast, Olsen will discuss the proper application of Live Scan Data, DTCs and Service Information during the scan process for diagnostic and calibration decisions as well as the tools and equipment needed. Olsen has 40 years of experience in the automotive repair and technologies industry. His current focus includes operations and continued development of remote diagnostics, calibrations, programming procedures with data analysis for improved diagnostic results and documentation of confirmed electronic repairs and procedures. To register for the CIECAst, visit https://register.gotowebinar .com/register/835310128244 8106755

Study Pours Cold Water on AI Driving Algorithms by George Leopold, Datanami

A recent report emerging from the center of U.S. auto manufacturing is raining on the AI parade with research results claiming autonomous vehicle algorithms fare poorly in bad weather. The study by researchers at Michigan State University found that even light rain or drizzle can interfere with algorithms used in self-driving car cameras. That could mean future fleets might initially be restricted to sunny states such as Arizona, California and Florida. The Michigan State study determined that the core problem stems not from the cameras used as primary sensors for detecting obstacles but the algorithms used to sort through computer vision data. “When we run these algorithms, we see very noticeable, tangible degradation in detection,” Hayder Radha, a Michigan State University professor of electrical and computer engineering who oversaw the study, told Automotive News in late November. “Even low-intensity rain can really create some serious problems, and as you increase

ASA Partners With Chevron to Provide Savings on Motor Oils, Lubricants for Shops

Chevron has joined the Automotive Service Association as the association’s latest Sponsored Benefit Provider. Sponsored Benefit Provider companies of ASA provide special member services and products to member-shops to help offset their everyday business costs. Chevron national’s program paves the way for ASA members to receive average savings of 35 percent on Havoline Motor Oil and lubricants for their shops. “With Chevron Havoline Motor oils, you get a trusted national brand available nationwide with competitive pricing and tools that will help you improve your business,” said Ross Shircliffe, business development specialist for Chevron. Through this partnership with Chevron, ASA members will also receive: • A $250 signage allowance • Improved inventory management • Consumer promotions to help shops retain and attract customers • Product warranty on every gallon • Free PitPack Rack ($600 value) 22

• National promotions • Customer service • Product training and inventory management advisement

ASA Executive Director Ray Fisher is excited about the Chevron opportunity for ASA members. “Delivering world-class service and benefits to our membership is Job 1 at ASA,” Fisher said. “We are pleased to add Chevron to our list of outstanding Member Benefit Providers. In 2019, we will continue to make sure that our benefits portfolio is beneficial to the success of our members.” ASA Vice President Tony Molla added, “The most popular benefits ASA offers its members involve products and services they use every day. Oil is certainly one of them, and the savings offered by the Chevron program add even more return on investment for a shop’s ASA membership.” To take advantage of this special offer, shops must be members of ASA. To join, go to ASAshop.org or call (817) 514-2901.

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

the intensity, the performance of what we consider state-of-the-art mechanisms can almost become paralyzed.” The university researchers found that computer vision algorithms failed to detect about 20 percent of objects in light rain. The failure rate doubled when rain intensity was tripled. Additional factors such as seasonal changes—like reduced autumn foliage and colder weather—also affected other autonomous vehicle sensors like radar and lidar. Changing seasonal scenes underscored a need to update high-resolution maps used by autonomous systems. “I’d say now that challenging weather conditions are going to be a problem for many years to come,” Radha told the automotive website. Weather concerns have not dampened investor enthusiasm in autonomous systems startups. For example, Korean carmaker Hyundai announced in November that it is investing in Allegro.ai, an Israeli startup applying deep learning to computer vision for car navigation. Founded in 2016, Allegro.ai emerged from stealth mode in April upon completion of a Series A funding round that raised

$11 million. Hyundai Cradle, the auto manufacturer’s venture arm, entered into a strategic partnership with Tel Aviv-based Allegro.ai. It did not disclose the amount of its investment, saying only that the collaboration would help accelerate deployment of the startup’s AI technology. Among them is autonomous driving, which Hyundai and a growing list of automotive startups are pursuing with varying degrees of success. Hyundai said it expects to deploy Allegro.ai’s computer vision technology for auto applications like navigation and real-time decisionmaking. Others are taking interim steps in their efforts to deploy self-driving vehicles in controlled environments. For example, Boston-based Optimus Ride is using early investor Nvidia’s Drive AGX Xavier computing platform as part of a planned driverless fleet service in “geofenced” areas such as planned communities, campuses and other designated autonomous driving zones. We thank Datanami for reprint permission.

autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

Shop Strategies with Stacey Phillips

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

TX Body Shop Invests in Community, Technology, OEM Certifications Robert Walne’s grandfather, Herb Walne, founded Herb’s Paint & Body in 1956. The business encompassed a Humble Oil (Exxon) service station, a full-service mechanical shop, a drive-through car wash and a paint and body shop in northeast Dallas, TX. It quickly became known for its knowledgeable professionals, outstanding customer service and quality repairs. When Exxon purchased the mechanical shop in 1969, Herb focused his time and energy on the collision repair side of the business. Since then, the operation has grown at a fairly steady pace. When Herb passed away in 1986, his son, Alan, currently the chairman of Herb’s Paint &

we have 187 employees at our eight locations, and I serve as president and COO.

years?

To what do you attribute your company’s success over the

I think it’s a combination of our focus on the community and being a family business. Our core values and mission/vision are centered on these two aspects.

We are really passionate about being a family business and how we treat our employees. We have a motto that we treat them like family. They are part of the team. We often say, ‘You aren’t just a number; you are a name.’ That perspective was passed on by my dad. We have always been very much involved at the store level, being seen by employees and engaged in the business. Our employees are an extension of everything we do. If employees have an event and they ask us to The business originally consisted of a Humble Oil (Exxon) sponsor it, we do it on their service station, a full-service mechanical shop, a drivebehalf. through carwash and a paint and body shop Another element that sets Body, took over the business. Today, us apart as a company is doing the Herb’s Paint & Body has eight loca- right thing, whether that is in regard tions. Robert, president and COO, to customer service or taking care of manages the day-to-day operations our employees. We’re not going to compromise our core values for anywith a focus on strategic planning. Autobody News sat down with thing. It’s how we do business, treat Robert to learn more about how the business sets itself apart from others our employees and customers, supin the industry and its recent enroll- port the community and provide rement in the General Motors Colli- sources such as technology and tools. We attribute those things to our sucsion Repair Network. cess. How did you get involved in the family business? As avid community supporters, what is your motivation? I grew up working at Herb’s That’s at the heart of everyand spent most of my summers at the shops washing and workthing we do at Herb’s Paint & ing on cars. After I graduated from Body. The other thing my grandfaBaylor University in May 2004 with ther was very passionate about is that a BBA in finance and real estate, I if a community was going to do busijoined the company full-time. Today, ness with him and pay him for his

Q: A:

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

services, he felt he needed to provide back to that community for doing so. As a result, we’ve always been very passionate about that.

such as the Child Advocacy Center of Collin County, the Dallas Zoo and the Down Syndrome Guild of Dallas. We also sponsor high school booster clubs and sports teams and award community scholarships, for example, at the State Fair of Texas. We look for all possibilities to give back to the communities we serve. It has always been part of the fabric of how we do business, and we plan to always continue to do so through financial and time commitments. The collision repair business currently has eight locations We feel that the greatest imin Texas pact we could have is to The majority of our marketing reinvest in the areas we serve and efforts and what we do is very much make the communities we serve and at a local store level, whether it’s a live in better. We have that ability to nonprofit, high school or another do that, so we do. community organization. We support By working together as a team a wide range of local organizations with hard-working, highly trained

autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

employees and an attitude of charity, we will accomplish our goal to have a long-term, successful family-owned business.

Q: A:

What do you enjoy most about the collision repair business?

I think it’s the compassion/people side of it. Over the years, I’ve realized that we have the ability to turn an experience that nobody wanted to have into something that can be positive. We’re able to help

and he chose to run the collision repair shop, he realized that it gave him the ability to help somebody out. On the mechanical side, he was able to get somebody’s car running, but he never could see the impact of what was done and understand everything about it. The collision aspect gave him the ability to touch customers and let them feel the impact that was done, and I think that compassion plays a lot into what we do. It’s a driving force behind all of the decisions we make.

“We are really passionate about being a family business and how we treat our employees. We have a motto that we treat them like family. They are part of the team.” — Robert Walne

our customers understand that it’s going to be OK and we’re going to restore their vehicles. I also enjoy watching our employees grow, whether that is through training or providing a home for them to grow in our business. I learned that from my grandfather. When his business went through a transition

We are honored to have been named Best Body Shop by Dallas AList City Voter. Since 2009, we have received six first-place awards based on more than 24,000 votes from local experts.

Can you tell us about your recent decision to join the

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

General Motors Collision Repair Network?

We first found out about the program through Mitchell. We have been long-time customers of Mitchell’s since the 1990s. I was attending their conference in the fall of 2017 and John Eck, collision manager, GM Customer Care and Aftersales, talked about the company’s path of coming up with a certification program. I told John that as soon as we were eligible to sign up, we would be on the list. My grandfather’s strategy was always that he understood that an agent was taking premiums from customers. As soon as there was an accident, the individual who was taking the money was out of the picture. They couldn’t help make the experience go well for that customer. His motto was to make an unpleasant experience a pleasant one, and that’s what he preached from the moment he started. That’s still very much part of the culture and fabric of how we operate today. It goes back to the same idea of making an unpleasant experience a

pleasant one and determining how to accomplish that. By joining the General Motors Collision Repair Network, we felt that it was consistent

Herb Walne started Herb’s Paint & Body in 1956 in northeast, Dallas, TX

with our belief of doing the right thing in everything we do. In terms of being certified, it’s about doing the right thing for that vehicle and having the knowledge to understand the new technology. What did joining the General Motors Collision Repair Network entail?

We signed up when the program was first announced in August 2018 and submitted all of our paperwork a couple of months

ago. General Motors has a pretty comprehensive website where a shop can upload information. For us, it wasn’t a big undertaking simply because most of our locations are pretty much on the cutting-edge from a technology and tooling perspective, and we already had the majority of equipment necessary to perform the repairs. We also keep our technicians and employees trained in the latest and greatest from an I-CAR standpoint, so we didn’t have a huge to-do list. Also, with our existing relationship with Mitchell, the switch to Mitchell Cloud Estimating was straightforward.

Do you have any other OEM certifications? What is the benefit of having them?

In addition to GM, we are recognized by Assured Performance, FCA, Ford, Nissan, Infiniti and Hyundai. Overall, the biggest advantage is the ability to perform proper and safe repairs per the manufacturer’s requirements. The industry is definitely transition-

ing to that knowledge becoming more and more available. That has been a very large benefit for us to know and understand how these cars need to be repaired, not necessarily for the manufacturer, but for the vehicle owner. We understand retention from the standpoint that if the experience is not going well for a customer and we do a poor job, the likelihood that they are going to switch insurance carriers goes up. I think the same holds true for the manufacturer. Nobody wakes up with the idea that they want to get into an accident on a certain day. What we want to make sure of is that we’re doing everything that puts that vehicle in a safe condition going down the road. Ultimately, life happens, and we want to see that we’re there to make sure it goes smoothly for our customers and that their vehicles perform how they should if anything does happen again. We hope it doesn’t for that individual, but if it does, we want to be sure we’ve repaired it correctly and the way that GM intended for it to be repaired.

WIN Begins Sponsorship Campaign for 2019

The Women’s Industry Network (WIN®) recently announced that the 2019 Sponsorship Campaign began on Dec. 23, 2018. WIN is in its second decade as the network that drives industry sustainability by facilitating women’s career development through education and connections. To continue this mission, WIN depends on the support and generosity of individuals and organizations in the industry. WIN remains committed to finding new ways to recruit, retain and support women in the collision repair industry. Progress toward these initiatives in 2018 included:

• Record-breaking attendance at the annual Educational Conference • The presentation of scholarships to nine collision repair students

• The presentation of the Most Influential Women Award to four individuals • The growth of WIN’s Regional AUTOBODY

Networking Events, with five events being held across the United States

• A continued presence at career fairs and industry and company events in the United States and Canada

• Increases in WIN’s presence in industry publications and social media engagement Corporate Sponsorships are currently being sought to allow WIN to continue to expand its programs of education, networking and mentorship. Additionally, a variety of sponsorship opportunities is available to support the organization’s activities. Sponsors are recognized on the WIN website and in signage and verbal acknowledgments during the WIN Educational Conference, as well as during regional and industry events. Please contact Petra Schroeder at petra.schroeder@comcast.net for more information about sponsorship opportunities.

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The Impact of Telematics and Connected Vehicles on the Collision Repair Industry by Stacey Phillips

About five years ago, Mike Anderson, owner of Collision Advice, was at a conference where several vehicle manufacturers were in attendance. The OEMs discussed FNOL (First Notice of Loss) and how those in an accident typically call their insurance company first and are then referred to a DRP shop if they don’t already have a collision repair shop in mind. While this may be the process currently being followed after a collision, that is expected to change over the next few years. Instead of the driver contacting an insurer, the vehicle will utilize telematics and connected car systems with Internet access. Vehicles will be the ones to notify the OEM when an accident occurs, and a voice will be heard over the car’s sound system to ask if anyone is hurt and if the driver has a body shop to go to. “OEMs will have the ability to communicate with the consumer and assist with FNOL,” said Anderson. “Sometimes they will be the first point of contact, and in other cases, the OEMs may partner with insurers.” Anderson is often asked if vehicles currently have the ability to do this, and if so, what its impact on the industry will be. As a result, he recently discussed the impact of telematics and the connected car during a CIECAst webinar. “It’s really important that all stakeholders, whether that’s an insurance company, a shop, OEM, parts vendor or distributor, realize we live in a very connected world,” he said. He explained to webinar attendees that the age of the connected car began in 1996 with General Motors’ introduction of OnStar, the first wireless, in-car driver assistance system. Since then, the OEM has processed 5.5 million emergency services calls and 270 million turn-by-turn navigation requests and assisted 390 million with vehicle diagnostics. Twenty years after the introduction of OnStar, 250 companies joined the connected car and telematics space with over $38.7 billion in funding. By 2020, Anderson said, analysts project that the globally connected car industry will be a 28

$141 billion market. Telematics and connected car systems are expected to allow OEMs the ability to provide such services as vehicle diagnostics, roadside assistance, mobile WiFi and automatic accident messaging. “Today, they are predicting that the connected car market will spur innovation and growth among automotive and non-automotive industries alike,” said Anderson. “For compa-

sions, which led to the use of collision avoidance systems such as adaptive cruise control and autonomous braking. The second cause Toyota found was traffic lane departures, which spurred the development of blind spot monitoring systems. The third finding was poor night visibility, which resulted in new technologies with headlights. About a year ago, the fourthleading cause of death in North Amer-

nies willing to invest in the automotive industry of the future, the payback could be huge.” There are many vehicles on the road today offering this technology. Acura’s AcuraLink monitors airbag status, GPS location and collision sensor activity. If an airbag deploys, the Acura vehicle automatically sends a vehicle report to AcuraLink support. Hyundai BlueLink offers automatic collision notification and assistance. Other systems on the market include Toyota Safety Connect, BMW Connected-Drive/Assist, Mercedes-Benz MBrace, Lexus Safety Connect, Nissan Connect and Honda Link. “Consumers today want more comfort features in their vehicles and to be connected 24/7, but that is really not the driving force behind these rapid advancements,” said Anderson. Instead, he said, the driving force centers on vehicle fatalities. Anderson cited a World Health Organization statement from 2014 that noted that 1.24 million people die in traffic accidents every year. If nothing changed over the next 16 years, it was expected that car accidents would be the fifth-leading cause of death in the world by 2030, unless countermeasures were implemented. Toyota conducted research at that time to determine the leading causes of traffic accident fatalities. Anderson said the OEM found that the number-one cause of fatalities was vehicle-on-vehicle colli-

ica was found to be traffic accidents. Anderson said that globally, road traffic crashes are the leading cause of death for people ages 15–29 and claim more than 1.25 million lives each year. “What the World Health Organization thought would happen in 16

“When a vehicle is connected to the Internet and can notify the OEMs when there is an accident, it can transmit vehicle data instantly to first responders in an emergency,” — Mike Anderson

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years happened in less than four,” said Anderson. As a result, he said, the OEM’s primary function is to build vehicles that will prevent accidents where there are fatalities. Telematics and connected cars are expected to play a huge role in this. “When a vehicle is connected to the Internet and can notify the OEMs when there is an accident, it can transmit vehicle data instantly to first responders in an emergency,” said Anderson. “Not only will this help EMTs (Emergency Medical Technicians) dispatch quicker, but in the event of congestion or traffic, it can also help them determine the best route to take.” Another benefit associated with connected car technology is its ability to assist during a natural catastrophe. “It would be a lot easier to communicate with consumers in order to help them find shelter in the event of an emergency,” said Anderson. “At the end of the day, telematics and the connected car will save lives.” Anderson believes the industry

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will notice a significant shift over the next four years, when the majority of new vehicles built will be equipped with this technology. In the meantime, he said, three factors must occur before telematics and the connected car begin to gain traction and start to affect the collision repair industry:

1) Vehicles need to have the technology and be connected to the Internet. 2) There must be a generational shift, and the individual has to be comfortable having the car connected to the Internet. 3) The technology must be affordable. Currently, 32 percent of consumers said that telematics is a feature they are willing to pay for in their next vehicle, according to the Insurance Institute for Highway Safety (IIHS). Today, OEMs such as Nissan and Lexus offer these services for a specific amount of time at no charge.

Impact on Damage Analysis Process During the CIECAst webinar, An-

derson also discussed the impact of the connected car on the Damage Analysis Process. “As collision repairers, it’s important that we identify when vehicles are connected to a service such as Nissan Connect or GM OnStar because we have to disable those as more and more cars are connected to the Internet,” he explained. “If we do not, then customers will be alerted, and we’re going to end up with a lot of angry customers contacting us, which may result in a negative Customer Satisfaction Index (CSI) experience for the insurer, OEM and consumer.” He shared an example of a consumer who took a vehicle to a body shop to replace the door. The Lexus was connected to Lexus Safety Connect. The consumer received six emails from Lexus in one day noting there was a problem with the door. Anderson said the shop should have accessed Toyota Lexus’s OEM repair procedure website to find out if the vehicle was connected to the safety connect system and if it needed to be disabled. “As the industry changes and

CREF Invites Industry Businesses to Sponsor Student Safety Kits for Collision Programs The Collision Repair Education Foundation (CREF) is facilitating a student safety kit donation program between collision repair businesses and high school and college collision repair programs. The safety kit includes:

• New Cintas work shirt/pants

• Pair of safety glasses • Ear plugs

• Disposable dust mask

Each local student can be sponsored for $50. Businesses that sponsor 20 or more safety kits can have their corporate logo featured on a patch on the front of the uniform shirts. “The Collision Repair Education Foundation wants to make the return to school this spring safer and more professional for collision school students,” said Brandon Eckenrode, 30

director of development for CREF. “Through the generous support of our industry partners, we can provide the next generation’s workforce with the support they need to succeed.” Participating businesses can sponsor schools of their choice, or they can choose to be paired with a school in need by CREF. The donation program can lead to long-term relationships between professionals and school programs that are preparing the next generation of collision industry employees. Sponsorships and donations are facilitated through CREF, but sponsoring businesses are invited to visit the school to meet the students and distribute the new uniforms. Companies interested in sponsoring the uniform donation program through CREF for the 2018– 2019 school year should contact Eckenrode at Brandon.Eckenrode @ed-foundation.org or (312) 2310258.

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

we have more vehicles connected to the Internet, we are going to have to rethink our strategy on how we approach these vehicles to rate the Damage Analysis Process when writing the estimate, and more importantly when determining if we need to disable these systems,” he explained. As a result, Anderson advised attendees to start educating estimators and technicians about the names of the different connected services offered by OEMs, the proper way to identify if the vehicle is connected and how to disable the connected car subscription service before taking the car apart to begin the repair. The Future of Voice-Activated Searches Another upcoming trend he shared is the increasing use of voice-activated searches in vehicles. Anderson’s research has found that by 2020, voice searches will be the future for search engine optimization (SEO), and reportedly 50 percent of all searches will be voice searches. In a magazine article, SEO expert Bradley Shaw stated that 41

Don Carlton ACURA OF TULSA

918-627-6457 Fax

888-550-7278

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percent of adults conduct at least one voice search per day—and that number will keep rising. By 2020, voice searches are expected to account for 50 percent of all online queries, which will be up from 20 percent in 2016. Studies show that one of the most common search terms that people currently use when searching on the Internet is “best [xx] near me,” said Anderson. In an accident, an insurer may refer the driver to “ABC” body shop. Where a manual search may show the top five body shops, a voice-activated search might only show one. “As we start to see these connected vehicles offer voice-activated searches, it could affect the way people might find you or validate if you are a good referral from an OEM or insurer,” said Anderson. “I believe that as telematics and the connected car start to gain speed, it’s going to be critical that you show up at the top of the search engine when people do a voice-activated search because it will change the way consumers determine which collision repair facility they choose.”

Don Carlton

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918-392-9665 Fax

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800-234-4441 512-458-2910

Dept. Hours: M-F 7-7; Sat 8-5 www.bankstonhonda.com

Dept. Hours: M-F 8-6 srichardson@mcdavid.com

Dept. Hours: M-F 8-6 sales@wholesalepartsdirect.com

Fiesta Honda

Honda of San Marcos

Dept. Hours: M-F 7:30-5:30 hondaparts@walkerautomotive.com NEW MEXICO

Garcia Honda Albuquerque

800-677-6632 505-260-5002 Dept. Hours: M-F 7:30-6; Sat 8:30-5 Jscott@garciacars.com OKLAHOMA

Don Carlton Honda Tulsa

800-722-2379 918-622-9670 Dept. Hours: M-Sat 7-6 hondaparts@doncarlton.com

Fowler Honda Nor man

San Antonio

San Marcos

800-727-8705 210-340-0831

866-392-1313 512-392-1313

Dept. Hours: M-F 8-5; Sat 8-5 hondaparts@safiestahonda.com

Dept. Hours: M-F 7:30-6; Sat 9-5 csmith@hondasanmarcos.com

Cleo Bay Honda

Kelly Grimsley Honda

Killeen

Odessa

877-253-6229 254-699-2478

844-453-5594 432-334-6632

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

Dept. Hours: M-F 7:30-6; Sat 8-12 april@kellygrimsley.com

Honda Cars of McKinney

Russell & Smith Honda

McKinney

972-569-4276 972-569-4222

866-369-5376 405-573-5719

Dept. Hours: M-F 7-7; Sat 7-5 Gene.chenault@hendrickauto.com

Dept. Hours: M-F 7-9; Sat 8-4 parts@fowlerhonda.com

Honda of Frisco

Fenton Honda of Ardmore Ardmore

580-226-1000 Dept. Hours: M-F 7:30-6; Sat 7:30-2 travis.pierce@fentonmotors.com

LOUISIANA

Frisco

866-442-2711 972-731-3176 Dept. Hours: M-F 7-7; Sat 7:30-5:30 cedgar@mcdavid.com

Wholesale Parts Direct

Houston

800-833-0180 713-663-4266 Dept. Hours: M-F 8-6; Sat 7-4 ggregory@russellsmith.com

Rusty Wallis Honda Dallas

877-466-3272 214-328-3891 Dept. Hours: M-F 7-7; Sat 8-5 darryldotsy@rustywallis.com

TEXAS

UTAH

Acura of Baton Rouge

Autonation Acura

David McDavid Acura

Baton Rouge

League C i t y

Plano

Salt Lake City

866-733-2861 225-756-6166

800-749-6227 713-371-4700

972-964-6044

800-234-0875 801-323-0492

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

Dept. Hours: M-F 7-7; Sat 8-5 CarranzaB1@autonation.com

Walker Acura

David McDavid Acura

Metairie

Aust i n

800-359-8555 504-465-8555

800-575-3553 512-401-5976

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

Dept. Hours: M-F 7-7; Sat 8-5 mkratky@mcdavid.com

Dept. Hours: M-F 7-7; Sat 8-5 dgrajczyk@mcdavid.com

Sterling McCall Acura Houston

713-596-2337 713-596-2338 Dept. Hours: M-F 7:30-7; Sat 7:30-4 jlambert@sterlingmccallacura.com

Jody Wilkinson Acura Dept. Hours: M-F 7:30-6; Sat 8-5 rick@jodywilkinson.com

Mike Hale Acura Murray

800-292-4595 801-263-0202 Dept. Hours: M-F 7:30-6; Sat 7:30-5 pgoold@mikehale.com

OKLAHOMA

Don Carlton Acura of Tulsa Tu l s a

888-550-7278 918-664-2300 Dept. Hours: M-Sat 7-6 acuraparts@doncarlton.com

autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

In Reverse

Gary Ledoux is an industry veteran with 48 years’ experience in the automotive and OEM collision parts industry. His column appears exclusively in Autobody News. He can be reached at YesterWreck@yahoo.com

with Gary Ledoux

Early DRP Programs of the 1960s In the 1960s, the concept of a direct repair program took several twists and turns before it got to the model we recognize today. Here are a few variations of that theme. In the early 1960s, dealer-owned body shops were at odds with independent shops. Dealers saw the phenomenal growth of independent shops and felt threatened. In Tulsa, OK, in the early part of 1961, the area dealers decided to corner the market. A group of dealer-owned shops got together to offer insurance companies discounts on parts and labor if they sent more cars to their shops. The local insurance agents loved it and established what was then known as the “Approved Garage Plan,” or an early form of a DRP arrangement. Insurance agents and adjusters began telling claimants that they could bring their car to a nonpreferred shop if they liked, but the

vehicle would probably be “held up” because the insurance company did not have a “check bid” with the nonapproved shops. This deepened the rift between independents and dealers. Independents thought the dealers had an unfair advantage because it was thought that 1.) the dealer could handle a lower profit made from body work because they also had profits from their service departments and new cars sales, and 2.) because the dealer bought the parts from the car maker, they could sell them to the insurance company at the same price as what the shop would pay for them. In this particular case, a then-current trade magazine noted that one Tulsa shop owner decided he would rather get out of the business than succumb to insurance companies’ and dealer body shops’ tactics, so he sold his shop and opened a sal-

vage yard. One of the earliest forms of a DRP network emerged in 1961, but it was way different from what is known today, over 50 years later. In 1909, Grinnell Mutual Reinsurance Company was founded in Grinnell, IA. By 1961, it was serving customers in eight states and had a network of about 100 dealer-owned and independent shops to which they sent policyholder’s vehicles for repair. But Grinnell conducted their claims business very differently from how virtually every other insurance company did. Shops in their network did not bother to write estimates. Grinnell agents sent policyholders’ cars to the network shops. The shop simply repaired the car in a safe and proper manner and sent the bill to the Grinnell claims department. Grinnell’s policy was that the shop should

be trusted to repair the car properly and at a fair and competitive price, and in return, they would pay the claim in a timely fashion, and all the bickering and animosity would be removed from the equation. In the ensuing nine years of conducting business in this manner, only two shops were removed from the network. In addition to giving the shops its trust, Grinnell’s also loaned money to any of its network shops for new equipment or other business expansion purposes. In the early summer of 1963, 100 auto body repairmen attended a seminar in Iowa conducted by Farmers Mutual Reinsurance Company. During the all-day clinic, three damaged vehicles were repaired by equipment company representatives. The clinic, then unique in the automotive insurance industry, was part of Farmer’s program of working with

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body shops to maintain high standards of workmanship, facilities and integrity. In the course of the clinic, qualifying shops were appointed as approved repair centers, then started receiving work from the company’s claim section without a cost estimate being submitted. A Farmer’s representative said, “…such a system is practical, time-saving and efficient for the insured, the body shop and the company.” Unfortunately, not all shops conducted themselves with all insurance companies the way they did with Grinnell Mutual or Farmers Mutual in 1963. Many shops tried to profit fraudulently on the backs of insurance companies, causing many insurers to turn to the forerunners of the DRP program—informal agreements to give work only to “honest” shops. At that time, there was a symbiotic relationship between some shops and certain adjusters, mostly with independent adjusters /appraisers. When a potential customer came into a shop for an estimate, the shop would first try to determine which insurance company was involved. Based on that answer, the shop

would know who most likely would be coming out to inspect the damage. The shop would pad the estimate by 20 percent so the adjuster could cut it by 10 percent. The shop got some premium money, the adjuster/appraiser looked good to his superiors, the customer got a quality repair, and everybody was happy. Another trick some shops used was to keep a bin full of used parts from old jobs. If the shop owner wanted to make a few extra dollars on the job, he would pull an AC compressor or steering rack or something else that “might have been damaged” in the accident and put in a supplement to R&R that part. Another trick was to push for a complete panel replacement including parts and labor, and then fix the panel with some filler. Shop owners had another trick to garner more insurance company work—“low-ball pricing,” or what lawyers called “predatory pricing.” In the late summer of 1969, a bill introduced by Senator John Sparkman (D-AL) would address those body shops that used “predatory” pricing to carry favor with insurance companies and garner more work at

deeply discounted prices. John Killcullen, general counsel for the Conference of American Small Business Organizations, noted, “Loss leaders (selling one product at a loss and making up the difference with other goods or services, as many shops were doing at the time) is preventing new, independent firms from entering existing markets and forcing other small businesses out of the market.” Obviously, not every shop was guilty of the aforementioned subterfuge. There were plenty of standup shop owners who took pride in their craftsmanship and whose professional reputation were paramount. They took pride in their work and in their industry. Unfortunately, those who were around during that time maintain that under-handed practices were so widespread that they were described as pervasive. One former shop manager who was around during that time and was interviewed for this article called the late ‘60s and early ‘70s the “Wild West” period of the industry when “anything went.” The insurance companies needed a way to protect them-

selves against fraud. This gave advent to the insurance company appraiser or independent appraisers. In 1962, a trade magazine article written by C. A. “Art” Fox, president of the Independent Garage Owners of America, stated in part: “Let’s face the fact: Unethical shops (not the general run of body shops) in the beginning took advantage of insurance companies by increasing the cost of the job to cover the deductible. They did other work in conjunction with the immediate repair and added that cost to the collision job. In self-preservation, the insurance companies resorted to their own appraisers or used outside, so-called ‘neutral’ appraisers. This was a fairly workable plan for a while, but now the tail wags the dog; the appraisers are setting the cost for collision repairs without knowing the cost of the shop’s operation (and neither do many shop owners!). This has been going on for some years now, and most body shop operators are hypnotized into believing they have to work on the low estimate, regardless of who made them. This practice inSee Early DRP Programs, Page 42

autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

National News with Chasidy Rae Sisk

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.

Dave Luehr’s December Elite Webinar Features Brad Mewes Discussing ‘Financing Growth’ On Dec. 13, Dave Luehr’s Elite organic growth; efficiency and cost Body Shop Solutions’ free webinar reductions; new developments; and series featured an informative session acquisitions. Most small businesses titled “Financing Growth” discussed focus on organic growth by attracting by Brad Mewes, founder and princi- and retaining customers, and owners pal consultant at Supplement Advi- tend to focus on enhancing efficiency sory. and reducing cost. The goal of the webinar “The companies that was to share information on: grow the most turn their athow to finance growth, the tention to new developdifferent types of lenders ments and acquisitions, but and how companies can best these are less common beposition themselves to accause funding is a challenge cess these funds to facilitate in the industry,” he said. Brad Mewes, the growth of their business. “Focus on all four is imporfounder and Luehr began by talking principal consultant tant. The key factor here is at Supplement about the purpose of the that they all involve some Advisory webinars and encouraging sort of investment, whether shops to sign up for the Body Shop in time, energy or money. Growth reExecutive’s Performance Group on quires an investment, but the largest Facebook and the Elite Body Shop players in the industry are willing to Solutions Academy (elitebodyshop invest heavily in that growth.” solutions.com/academy). He also anCommon questions that Mewes nounced that he will be launching a received included how to: find the brand-new product, the Operations right lender, prepare financials, know Monthly Live, on Jan. 8, in which he how much is needed, minimize risk will be talking about goal-setting and and increase certainty of funding, how to build the operational business evaluate different loans and avoid of your dreams. making costly mistakes. After reminding attendees that “It’s not a lack of options that the webinar can be used towards slows us down. More likely, it’s too AMi credits and providing the an- many options that cause paralysis,” titrust guidelines, Luehr introduced Mewes advised. “Set a path to minMewes, who began his presentation imize the options, and that will inabout leveraging $638 billion worth crease the likelihood of success.” of assets to build the business you Talking about growth capital deserve. He began by providing a and funding for your business, brief description of his background, Mewes showed a video by Fix Auto including his lifelong involvement in that demonstrated the capital requirethe collision repair industry, which ments that go into running a modern has culminated in his current role as collision repair center. a business advisor working with inHe noted, “The amount of capivestors, analysts and bankers to help tal needed to be competitive in shops support expansions and im- today’s market is significantly higher provements. than it was even a few years ago.” “I’m privileged to work with a Forty percent of small business lot of businesses, allowing me to owners consider additional funding leverage a broad base of insights in for their business each year, yet 80 order to drive growth,” Mewes stated. percent of small business loan appli“Driving growth is the business phi- cations to traditional banks are relosophy at Supplement Advisory. We jected. Noting that 70 percent of are very growth-oriented and focused small business owners don’t realize on building and growing the business there are alternative sources to you deserve.” banks, Mewes discussed private eqFour primary ways to grow a uity and debt, explaining that $638 business (in terms of profit) include billion worth of private debt assets

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

were under management as of June 2017. This includes $236 billion in investible funds ready to be deployed. Mewes said, “While private equity assets under management have increased by approximately 90 percent since 2007, private debt assets under management have more than tripled in the same time period.” Turning to the most important things to think about when attempting to secure financing to grow your business, Mewes introduced attendees to the ABCs of financing: Assets, Business cash flow, and Credit—the factors that every lender will consider in order to determine a shop’s loan worthiness. He explained, “As you’re preparing to go out to the market place, one of the key things that every business needs is assets, or collateral, which is what the lender needs to be secure in

making a loan to the business. Part of the challenge is that if you’ve underinvested in assets over time, some lenders will balk at providing capital because they have nothing to secure that capital. “The next thing is business cash flow. Lenders like to see sufficient cash flow to service the debt they are providing, meaning the amount of money transferred into and out of a business. Lastly, a creditor is going to investigate business and personal credit.” Segueing into the five Cs of credit, Mewes gave examples of Character as reputation, Capacity as debt-to-income, Capital as equity, Collateral as personal assets, and Conditions as defining the purpose, providing examples of how to frame those conditions. Mewes advised, “When going to See Elite Webinar, Page 47

autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

From the Desk of Mike Anderson with Mike Anderson

Mike Anderson is the president and owner of Collision Advice, a consulting company for the auto body/collision repair industry. For nearly 25 years, he was the owner of Wagonwork Collision Center, an OEM-certified, full-service auto body repair facility in Alexandria, VA.

Automaker’s Increased Role in Claims Seems Just on the Horizon as Connectivity Happens It’s been about four years since the industry began talking about the automakers playing a larger role in helping vehicle owners after an accident—using telematics to contact the driver at the crash scene, for example, to ask if they need medical help or a tow arranged for them, or to see if they would like a referral to a nearby shop certified by that automaker. I frequently get asked, particularly by shops that have invested in OEM certifications, when that’s going to start to take place regularly. I believe there are three things that need to occur—and are about to happen—to make that a reality. I should say these are strictly my opinions based on what I’ve read, conferences I’ve attended, etc. But the first thing that needs to happen is to have more vehicles “connected” via internet access. That’s happening rapidly. From the research I’ve seen, just three years from now, in 2022, nearly 90 percent of new vehicles in North America will be equipped with telematics.

But being equipped to be connected and actually being connected are two different things. To have more consumers choose to be connected will require two other changes that I see beginning to occur. First, there’s a generational shift that has to happen. My 81-year-old 38

father does not want GM’s OnStar to always know where he is. He’s concerned about privacy. But my 20something-year-old niece, on the other hand, wants to stream music, so she wants to be connected to the internet 24/7. She wants her child to be able to watch movies while they are

for example, and working together on first notice of loss. In either case, I think that shops thinking about where they want to be three or four years from now need to be moving toward OEM certification, so that as that OEM connectivity to the vehicles increases, you’re there.

in the car. That generational divide may have slowed the adoption of vehicle connectivity, but that’s changing. The other factor that has to be addressed is affordability. Studies have found U.S. drivers aren’t willing to pay even $500 a year to have their vehicle connected, and Canadians are willing to pay even less—under $200 year. That’s why some recent announcements by automakers are convincing me that the connected car is about to become much more common very soon. There are automakers offering internet connectivity for $22 a month or even $17 a month. One automaker has said that in 2019 it will offer free internet connectivity for a number of years on its new cars. So the technology is there, the affordability is getting there, and the generational shift is happening. As those three things align, it starts to bring to fruition the ability for car manufacturers to handle first notice of loss after an accident. How will that look? Some automakers may offer their own insurance bundled with the car. They’ll want more control over their customer’s experience with that vehicle even throughout the claims process after an accident. Others may do something more jointly with insurance companies, partnering with them to provide the insurer with accident information,

Could this create some challenges in the meantime? You bet. OEM certification programs may have different parts use expectations than insurer direct repair programs, for example. That may mean giving up some margin by using only OEM parts or maybe stepping back from some DRPs. I think it’s conceivable that as automakers control more of the first notice of loss process, they

“Some automakers may offer their own insurance bundled with the car.” — Mike Anderson

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

could help a shop regain market share the shop may have lost by ending a DRP relationship. Some shop owners will question whether there’s a risk of not getting a return on their investment in OEM certification. What if this increased involvement of the automakers doesn’t occur, or doesn’t result in added business for certified shops? To me, that’s a little bit like asking, “What if I invest in a whole bunch of training for a technician who then leaves my shop?” My response to that question has always been: What if you don’t train that tech and they stay? What happens, in this case, if you don’t get OEM-certified, and the connected car scenario I foresee happening plays out—only by then, the automakers already have their certified shops in your market? What will you do then?

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autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

National Associations with Chasidy Rae Sisk

ASA Hosts RepairPal’s Jill Trotta for Webinar on Transparency and Trust On Dec. 19, the Automotive Service Association (ASA) hosted a webinar titled “Transparency & Trust: A Guide to Getting Customers and Keeping Them,” presented by Jill Trotta, vice president of industry advocacy and sales for RepairPal. Trotta, who boasts 25 years of industry experience, said the goal of the webinar was to share how RepairPal gains insight into consumer behavior and needs from its 5 million monthly website visitors as well as how shops can apply this information. ASA Vice President Tony Molla hosted the webinar. He welcomed attendees and introduced Trotta, who defined her key objectives as providing information on how to overcome price-sensitive customers, delivering data about price transparency and consumer behavior, and teaching about tools to work with the modern

auto care consumer. “RepairPal spends a significant amount of time trying to understand consumers who have changed more in the past five years than in previous decades,” Trotta explained. “Today’s consumer is tech savvy and uses mobile devices. They are better-educated and research prices online. They also value instant gratification.” When consumers were asked in 2017 if they felt they were charged a fair price for their last automotive repair, only 42 percent said yes, while 58 percent answered in the negative. This was a 6 percent increase in dissatisfaction from 52 percent in 2014. Trotta pointed out, “The majority didn’t feel like they got a fair deal.” Of the consumers who believed they were charged a fair price, 31 percent determined this based on comparisons to other shops; 31 percent reported a gut feeling; and 28

percent based their opinion on online research. When those who were unsatisfied with the price explained the reason, 36 percent reported that the issue was not resolved; 29 percent did online research; 18 percent compared to other shops; and 17 percent felt they received poor value. While 85 percent of consumers check prices, only 45 percent check them before authorizing the repair. Based on research of the 40 percent that check prices after authorization, Trotta shared, “For every 26 unhappy consumers, only one will complain directly to you. Most won’t call you and tell you, but they will call your competition, tell their friends or post reviews. Very few will actually call and tell you. We all know that retaining your customers is critical to the future success of your business.” An alarming trend Trotta noted is that 63 percent of Americans don’t

have enough savings to cover a $500 emergency, but automotive repair is one of the single biggest necessary expenses for today’s consumer and can throw their budget into a tailspin. This is why consumers are so often focused on price. According to Trotta, “Shop ads and websites that focus on price deliver 6–7 times better results than those that don’t. Some phrases that pay include: “straightforward and transparent pricing”; “upfront pricing”; “We never overcharge”; and “Happy to provide a good estimate.” “When you ask people if they want price or quality, they want quality, but they ask about price because they have no idea what else to ask. Unfortunately, explaining that a shop performs proper repairs doesn’t attract traffic to the website; you need to talk about pricing. At our core, RepairPal is focused on quality repairs

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and safe repairs for consumers, but the shops in our network have a proven track record that they are focused on the same. RepairPal is really focused on pricing in order to attract traffic to the website.” Explaining how to create a transparent experience for customers, Trotta said, “If a customer leaves the shop confused about what they experienced or unsure if they received high-quailty work or a fair deal, they are unlikely to return. “Do these three things: 1. Many shops focus so much on the initial conversion that they forget to check in with the consumer as they are leaving the shop. 2. Making sure the consumer is fully satisfied confirms understanding of what was done, why it was done and what any next steps might be. 3. Small gestures like leaving the car clean and tidy make a big difference.” Transparent customer communication should follow three steps: receive complaint and perform diagnosis, determine the cause and recommend the corrections. “Breaking out items in a way that the consumer can understand ex-

actly what they’re paying for is important,” Trotta stressed. After reviewing what she’d covered, Trotta reiterated the importance of mentioning price, noted that 46 percent of consumers will pay more for a two-year warranty as opposed to a one-year warranty and emphasized the importance of your value shining, because 30 percent of consumers will call more than one shop. Trotta explained that transforming price into value starts with presenting the diagnosis as a product. “Prices must be clearly attached to meaningful services and outcomes. Provide a clear and concise broken-down final RO with no ‘unexplainable’ charges. You may not be the cheapest shop, but you can offer the highest value,” she said. Trotta explained how RepairPal’s Fair Price Estimator works and how it benefits shops by building trust with consumers. “Removing questions from the customers’ mind is what’s going to retain customers,” she said. “We offer friendly customer explanations, and we provide a third-party voice that mirrors your own. Calling other shops

is a way to get a second opinion. When you direct consumers to RepairPal, we become the second opinion. Hopefully, the consumer goes to our site and experiments with our estimator instead of calling another shop. “Shops in our network are the top 20–25 percent of shops in the industry, and our estimator is built to reflect that. When compared to other estimators [in the] market, we generally have higher prices and we give more information. We are for fair pricing, not cheap pricing. We give the whole picture and promote the right repair.” To inspire customer loyalty, shops should communicate, be transparent, do a great job and ensure a smooth exit from the repair experience. They should also help the consumer evaluate their reputation and price, coordinate the consumer’s online and off-line experience and help them solve their problem as quickly as possible without sacrificing price, trust or convenience. It’s also beneficial to help the consumer understand pricing and repair decisions and make sense of any pricing differences

they may encounter when doing research. Trotta noted, “Explain what you need and why! People like to do business with other people.” She continued to talk about creating a transparent experience before providing information on RepairPal’s estimator widget that shops can place on their website. She also talked about the benefits of offering a two-year warranty. “This is a very inexpensive thing you can do for your customers. Most consumers see it as more valuable to have a longer warranty than a nationwide warranty,” she said. The webinar concluded with Trotta sharing RepairPal’s values and describing its involvement with the industry. Before ending with a questionand-answer session, Trotta observed, “We want to provide consumers with the best shops. We want to work together, constantly solicit feedback and improve our processes.” For more information about RepairPal, visit repairpal.com. For more information about ASA, visit asashop .org.

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Day Job/Night Job

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

with Ed Attanasio

Eric Newell Is Not Afraid to Serve His Community in Different Ways As a part-time firefighter, a member of his town’s Building and Planning Commission and an area marketing manager for asTech—a company that focuses on providing OEM diagnostics to collision repair shops nationwide—Eric Newell, 36, is adept at multi-tasking, to say the least. When he isn’t going into burning structures to save lives or working for asTech, he is making crucial decisions about the future of Lowell, IN—a town whose slogan is “A Friendly Town of Friendly People” with a population of approximately 9,000. Newell broke into the collision repair industry as an estimator for Cars Collision, an MSO with locations in Indiana and Colorado before the business was bought by Gerber Collision & Glass. He redirected his career from there and decided to become a full-time firefighter. “I’m in my 10th year now as a firefighter, and I love it because I can help people and play an important role,” he said. “I also love the brotherhood that exists between firefighters.” After completing his two-year training to become a paramedic and a firefighter, Newell was assigned to Fire Station 1 in Schererville, IN. He immediately took to his new job and excelled at his new role. “It’s an exciting and fascinating life with something new and different to do literally every day,” he said. “After two years, I was elected and became our union president of the Professional Firefighters of Schererville and subsequently became a member of the state organization’s board.” In 2013, Newell received the Firefighters’ Medal of Honor for savContinued from Page 35

Early DRP Programs

evitably leads to shoddy workmanship and unsafe collision repairs because the shop owner wants to make a profit. Correction of this situation, 42

ing a fellow firefighter in addition to several other citations over the years, he said. “An attic above us collapsed on a firefighter, and he wasn’t able to get out of the building, so I dragged him down three stories and got him out. I didn’t have any time to think about it,

Eric Newell is a member of the Building and Planning Commission of Lowell, IN, when he isn't working as an area marketing manager for asTech

and my adrenaline was pumping. I know he would have done the same for me if I was in his position, so my training kicked in and I got him out. I don’t fight fires for awards or medals, but it is nice to be recognized,” he said. After a while, an opportunity to re-enter the collision repair industry came his way. He decided to take it. “A friend of mine owns a sixshop MSO in northwest Indiana. They asked me if I would work for them part-time as a consultant, and I said yes,” he said. “I later became the company’s compliance manager and then was promoted to their COO. In July of [last] year, I was offered the job at asTech, and I decided to accept it. I cover three states (Indiana, Illinois and Ohio) for asTech, and it’s a in the estimate of this writer, is a matter of education.” Fox urged shop owners to ascertain their operating costs and learn to make better estimates so their work would be profitable but fair. Still, it would not stave off the advent of the modern DRP programs.

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

great place to be. We have some of the brightest minds in the industry and an incredible executive leadership team.” At the same time, Newell was appointed to a position in Lowell’s Office of Building and Planning Commission and accepted it without hesitation. “It’s a great role for the town, and I enjoy doing it,” he said. “If a new business wants to come into Lowell or if an existing business wants to change its structure, we have to review it and make a decision. I am now thinking of running for Town Council in the next election, which will be in November. It’s been very satisfying, so expanding my role is something I am definitely considering.” Now, Newell works full-time at asTech and covers at least one 12hour shift at the firehouse in addition to sitting on his town’s board. It’s a

hectic life, but he would not change it for anything. “Busy people are happy when they’re busy. It’s all about being organized, and that is why it works. People make the time they need to do what they want to do, and if you play a positive role, it fulfills you on many levels,” he said. One of the things he wants to do now is help asTech grow and to continue on his path to helping others, he said. “They would have to kick me out of the firehouse for me to stop, and that’s not going to happen anytime soon,” he said. “asTech is going through a hyper-growth stage, and I want to be instrumental in that. It’s an exciting time in my life, and if I can get enough leisure time to attend my 10-year-old son’s wrestling matches and play a little golf now and then, I am a happy man.”

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asTech Renews Commitment to CIECA Standards

asTech recently renewed its commitment to CIECA and the CIECA Standards. Founded in 2010, asTech® is based in Plano, TX, with additional corporate offices in Irving, TX, and Jacksonville, FL. The company is a nationwide provider of dealer-level OEM diagnostic and vehicle electronic repair services supported by ASE Certified Master Technicians. “Our mission is to protect lives through the proper repair of automotive electronic systems,” said Frank Terlep, asTech® senior VP of global innovation. asTech® has been a CIECA member since 2015. Terlep said he and Doug Kelly, asTech® CEO, are both very familiar with CIECA. Terlep was one of the original CIEDES (Collision Industry Electronic Data Interchange Subcommittee) members and a previous CIECA chairman. “asTech® believes CIECA plays an important role when it comes to the creation and management of industry standards,” said Terlep. ®

SAAR in Canada Becomes Newest Association to Affiliate with SCRS The Saskatchewan Association of Automotive Repairers (SAAR) closed out 2018 as the most recent collision repair association to affiliate with the Society of Collision Repair Specialists (SCRS) and as the third such association in Canada.

The Saskatchewan Association of Automotive Repairers is a nonprofit organization of automotive repairers and associated firms whose concerns are the promotion and development of their industry in all its aspects. The association also represents the collision repair industry to the Saskatchewan Government Insurance (SGI) and the public, while also providing programs, training

Collision Career Institute Celebrates One of Their First Technician Graduates by Chasidy Rae Sisk

On December 13, the Collision Career Institute (CCI) celebrated the graduation of Dillon Kendig from the CCI Body Technician Appren-

Dillon Kendig was one of the first technician graduates from CCI (l to r) Kathy Mello, Jason Cocco, Dillon Kendig and Scott Ingrahm

ticeship. Kendig trained at TGIF Body Shop in Fremont, CA, and according to CCI Chief Operations Officer Amber Ritter, “TGIF was dedicated to the process of Apprenticeship and giving Kendig the op44

portunity to train and develop his skills as a technician.” Kendig shared, “CCI is a great program to introduce new technicians to the new age collision repair.” Ritter added, “Kendig graduated the apprenticeship program with his I-CAR Pro-level 1 certification and a certificate from both the California Department of Apprenticeship Standards (DAS) and the Collision Career institute. This program is designed to educate future technicians while allowing them to earn money during their training.” The graduation ceremony was attended by trainer Scott Ingrahm and Verifacts Coach David Durham who conducted Kendig’s assessments, as well as TGIF owner Kathy Mello, general manager Jason Cocco and the shop employees. Kendig’s graduation was also attended by Jasmeen Karan, Associate Governmental Program Analyst for the Department of Industrial Relations Division of Apprenticeship Standards (DAS), and Charles Robertson, President of CCI.

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

and membership meetings and conferences. “Our industry is going through disruptive changes, and SAAR is looking to provide its members with as much information and training as it possibly can to help them make the necessary changes in their business in order to survive and thrive,” shared Tom Bissonnette, SAAR executive director. “After being associated with SCRS through events like CIC and SEMA, we have concluded that connecting with our counterparts in the States and affiliating with SCRS will give our members a great conduit to information that will help them meet the demands of the fast-changing collision industry. It is our hope that the relationship will promote a collaborative exchange of ideas and solutions to our mutual challenges in both countries and that we can use some of the really spectacular work SCRS has put together, with resources like Repairer Driven News, to share with our membership.” “It’s always a tremendous honor to have the ability to formally grow our network of groups interested in advancing the collision repair profes-

sion,” added Kye Yeung, SCRS chairman. “The fact that the work developed by our organization has international appeal to associations and across our borders further reinforces the global challenges that face our industry and the hope that lies in addressing those challenges through collaboration and communication. As that network of communication grows, both through added affiliate associations and through the addition of individual locations, the stronger the industry becomes as a result. On behalf of the SCRS Board of Directors, we welcome our colleagues in Saskatchewan and look forward to the good work we can do with one another.” If your business is interested in joining the largest national trade association dedicated to representing the collision repair professional, please contact the SCRS offices at info@scrs.com. For more information about SCRS, visit www.scrs.com.

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Associations Assembling with Chasidy Rae Sisk

Automotive Women’s Alliance Foundation Hosts Holiday Celebration On Dec. 5, the Automotive Women’s Alliance Foundation (AWAF) hosted its 2018 Holiday Event at the prestigious Whitney Mansion in Detroit, MI, one of the city’s most beautiful and historic venues. Sherry Muir Irwin, member of AWAF’s board of directors, noted, “It was a wonderful evening celebrating the culmination of another successful year for AWAF! The Whitney, all decked out in its holiday finery, provided a festive backdrop for AWAF’s sold-out signature year-end event. The evening began with the 125+ AWAF members and their guests enjoying delicious hors d’oeuvres and holiday cheer while mingling with fellow automotive professionals and friends. It was a wonderful conclusion to a great year!” The evening’s featured speaker was Joe Hinrichs, executive vice president and president of global operations for Ford Motor Company. He shared some of the insights and wisdom he’s gained during his extensive automotive industry career. “With one of his daughters now pursuing an automotive career, he has gained a new appreciation for the challenges faced by women in the industry and encourages us to speak up and use challenging situations as teachable moments,” Irwin recounted. “He’s told his daughter that ‘you either teach or tolerate’ when faced with negative circumstances and behavior—and encouraged us all to be teachers!” Next, Jane Bishop, co-chair of AWAF’s Scholarship Committee, announced the five deserving recipients of AWAF’s final 2018 scholarships. All of the recipients are pursuing undergraduate degrees in preparation for automotive industry careers. The scholarships were sponsored by Deloitte, Magna International, Adient, AWAF and the Elder Automotive Group’s scholarship in memory of Irma Elder, who was the matriarch of the Elder Automotive Group, one of the first female auto dealers, and a long-time supporter of AWAF.

Irwin noted, “With these five scholarships, AWAF is nearing the half-a-million-dollar mark in scholarships awarded since 2001.”

popular signature events, attendees of the 2018 Holiday Event enjoyed the camaraderie of fellow industry professionals and friends while ush-

AWAF members celebrate another successful year during the group’s annual Holiday Event in December

AWAF’s outgoing president, Linda Taliaferro, then announced the association’s 2019 board of directors, which included incoming President Susan Rokosz of Ford Motor Company, who has served on AWAF’s board since 2012. Taliaferro also announced the creation of a new VP of STEM office position as part of AWAF’s increased focus on STEM, a role that will be filled by Cathy Koch of K-Tec Systems, Inc. Irwin then expressed her appreciation for Taliaferro and the last two years she served as president. “Linda was a truly impactful, influential and inspirational leader for AWAF, and the organization is better for having had her at the helm!” Irwin stated. “The evening’s program concluded with a word of thanks to our annual sponsors: Faurecia, Magna, Deloitte, Leggett & Platt Automotive Group, Envisics, HELLA, Irvin Automotive and PlanteMoran, as well as the evening’s event sponsors Epitec and MB Jewelry. Appreciation was also expressed to the board of directors, the executive advisory council, committee members and the membership at large for all their contributions over the past year. And a special word of thanks to RoseAnn Nicolai and her team at Nicolai Events & Communication for their administrative support throughout the year—we couldn’t do all that we do without them! “Always one of AWAF’s most

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

ering in the holiday season! To add to the festivities, attendees had the opportunity to participate in a silent auction with the chance to be the winning bidder for a one-on-one lunch with two female Ford senior

executives or a beautiful necklace, courtesy of MB Jewelry Design & Mfg., Bloomfield Township, MI. “These events provide our members with opportunities to cultivate both professional and personal relationships, which are critical support mechanisms as one builds and navigates one’s career in the auto industry—or any industry, for that matter. As part of our value proposition, events provide educational and professional development opportunities as well.” On Jan. 28, AWAF will kick off 2019 with a post-NAIAS mixer at the Black Lotus in Clawson, MI. On Feb. 6, members can attend a Fireside Chat with Julie Martin, vice president of sales and marketing for HELLA USA.

For more information on AWAF, visit awafoundation.org.

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Financing includes seller finance and vendor finance, which may include prebates and investments, but there are also lenders that will finance acquisitions. Mewes then proceeded into a hypothetical prebate analysis in which he determined the cost of a prebate compared to a discount, considering the opportunity cost of the lost discount and the impact of taxation. He noted, “Prebates become very expensive money, and there are a lot of alternatives out there. There are times when prebates make perfect sense, but it also makes sense to understand your alternatives and pick the solution that works best for you.” Alternatives Mewes mentioned included equipment loans, lines of credit, M&A loans, unsecured working capital, AR factoring and/or ARbacked loans, SBA loans, real estate loans and sale leasebacks. When Mewes opened up the webinar to questions, he was asked if consolidation has opened the door for more independents. Mewes responded, “What consolidation has done is provide ‘role

models’ for potential investors because it allows you to demonstrate the viability of the industry when going for a loan. Finance folks are risk-averse, so having a case study is good for obtaining funding when presented appropriately.” Mewes graciously offered a free 15-minute, one-on-one consultation to webinar attendees who were interested in signing up. For more information about Supplement Advisory, visit supp-co.com /growth.

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Axalta, Plenham Form 3-Year Global Alliance

Axalta and Plenham Ltd announced a multi-year global partnership to help the worldwide collision repair industry share ideas for business improvement, drive best practices in innovation, and establish new processes and know-how through dynamic media and social interactions. “We are delighted to establish a long-term agreement with Axalta,” commented Jason Moseley, Plenham CEO. “Having forged a strong bond over the last year its clear we have a joint passion for improving the collision industry based on shared ethics and beliefs in ‘doing the right thing.’” Jim Muse, Axalta’s Vice President of Global Refinish Sales, said, “I am confident that this new alliance between Plenham and Axalta will significantly benefit our customers and the overall global collision repair industry.”

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General Motors Collision Repair Network Starts off With Strong Response from Industry by Stacey Phillips

Since launching the General Motor’s Collision Repair Network in August 2018, Kris Mayer, general director, wholesale channel of GM’s Customer Care and Aftersales, said the company has received a great response from the program. Over 1,300 dealers and collision repair facilities have already started the enrollment process, and more are signing up every day. When the company first set out to establish the Collision Repair Network, Mayer said GM wanted to ensure it offered repair facilities all the guidance needed to repair a vehicle properly, and customers could trust in the safety and integrity of the repair.

Prior OEM programs have put a strong emphasis on making sure collision repair facilities had the proper tools and training. With the introduction of the Collision Repair Network, GM has forged ahead by adding standards for pre- and post-scanning, repair procedures and ADAS calibration. In addition, the company provides positioning statements and recall notifications to keep repair facilities informed. “It’s important for a repair facility to have the right tools and training but that doesn’t necessarily mean that the vehicle has been repaired properly,” said Mayer. “We really want to ensure that repair facilities are following the correct repair procedures.” Mayer said it can often take a body technician several hours of research during a major repair, which can be a barrier to getting the job done appropriately and in a timely fashion. As a result, GM realized the importance of providing repair facilities easy access to repair procedures to allow for a more streamlined collision repair process. “We needed to work with a company that was going to capture the Key Performance Indicators (KPIs) and make sure those procedures were being done,” said Mayer. “Using an information provider made sense to us.” As a result, Mitchell was chosen 48

to be the administrator of the GM Collision Repair Network. “A little over two years ago, Mitchell realized that the biggest challenge facing the industry was the increasing vehicle complexity. We made a decision to completely rearchitect our product suite focusing on enabling proper and safe repairs,” said Jack Rozint, Mitchell’s vice president, sales & service, repair. “To be recognized by General Motors and be chosen to administer their collision repair network was truly gratifying and we’re really proud to be associated with General Motors and this program.” Rozint said the cultures of both companies are very closely aligned and the program is designed primarily around two major themes: proper and safe repairs and a positive experience for GM customers. “In order to deliver happy customers requires efficiency, which means shorter cycle times and efficient processes,” he said. “Those efficient processes also have good results for other industry stakeholders such as insurance carriers.” Participants will be able to manage all aspects of the repair through Mitchell Connect, the company’s cloud communication program. This includes pre- and post-repair diagnostic scans; utilizing Mitchell Cloud Estimating, which creates the estimates; the ability to reference GM repair procedures through the repair process; as well as perform qualitycontrol checks. When technicians are working on various components or sections of the vehicle, Rozint said Mitchell’s Integrated Repair Procedures communicates the specific repair procedures that apply to that component to the user right at their fingertips. The repair procedures can also be saved, printed and sent through email. Mitchell’s Freedom Platform enables this integrated repair procedure access at all stages of the job, beginning with teardown, throughout the repair and recalibration processes, and during the quality checks. “Mitchell’s software platform and expertise will help us make a difference for GM drivers and help the entire repair industry satisfy customers and run profitable, efficient

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

enterprises,” said Debbie Day, executive vice president and general manager, Auto Physical Damage Solutions at Mitchell. Herb’s Paint & Body Shops, with eight locations in Texas, recently enrolled in the General Motor’s Collision Repair Network. “As newer vehicles and technology come out, to be able to be trained and informed on how to handle those

The company was also already using Mitchell products. “We have a good relationship with Mitchell and the transition to Mitchell Cloud Estimating was pretty seamless,” he added. “Repairers who partner with General Motors in this program are going to gain assistance and direction with the delivery of proper and safe repairs and give customers an

technologies is extremely important,” said Robert Walne, president and COO of the company. “We felt the GM program would give us the ability to do that and perform proper and safe repairs.” Walne said it was relatively easy to become part of the GM Collision Repair Network. “For us, it wasn’t a huge undertaking because most of our locations are pretty advanced from a tool perspective as well as training,” he said.

extra level of security,” said Rozint. “I believe the most important thing is the sense of consumer confidence that will come out of this program that benefits everybody involved, especially the collision repairer.” Dealers and independent collision repair facilities interested in the GM Collision Repair Network can email GMCollisonRepairNetwork@GM .com or visit GenuineGMParts.com to enroll and learn more (click on the “For Professionals” tab).

“We really want to ensure that repair facilities are following the correct repair procedures.” — Kris Mayer

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Mike Anderson Presents ‘Using the Subaru Technical Information System – Part 2’ by Chasidy Rae Sisk

On Thursday, December 13, Mike Anderson of Collision Advice presented another webinar in his “Learn to Research, Research to Learn” series, during which he explored “Using the Subaru Technical Information System (STIS) – Part 2,” which focused on how to use the Subaru website to ensure safe and proper repairs. He was joined by John Lancaster, National Wholesale Parts Manager for Subaru of America, as well as Subaru technical service representative J. J. Marino and Rick Miller of Wadsworth International. The webinar was created by Collision Advice in collaboration with Subaru. After reading the antitrust guidelines, Anderson reiterated that he decided to host these webinars because the results of his annual “Who Pays for What?” surveys, conducted in conjunction with the Crash Network, led him to determine that shops are not researching OEM repair procedures 100 percent of the time as they should be. As a result of this finding,

Collision Advice has been hosting monthly webinars, each one focusing on a different OEM, to raise awareness of the resources each OEM offers to research repair procedures. Anderson plans to guide attendees on a step-by-step tour of each specific OEM’s website and advise on how to improve search results. He

ation of how to access Subaru’s paid site and conduct a search at techinfo .subaru.com. Anderson then proceeded to explore the tabs across the top of the page, explaining that the index allows users to search for particular section titles in the service manual. He demonstrated this by exploring the

will also demonstrate how to research some common procedures needed by collision repairers, explore the differences between an OEM scan tool and aftermarket scan tool and investigate OEM parts information and support tools. The second part of the Subaru webinar began with a recap of the first part, including a reminder that Subaru’s position statements can be found on oem1stop.com and a reiter-

battery section to reveal what procedures repairers must do when removing a battery and enumerating the many systems that will not work after a battery is removed if the proper procedures are not adhered to. He reiterated the importance of searching battery requirements several times during the remainder of the webinar, pointing out “It’s not just about scanning. It’s also about researching every time we disconnect a battery.”

“It’s important that we use OEM parts even on something as simple as a wiper blade because using an aftermarket wiper blade could cause this Eyesight feature not to work properly.” — Mike Anderson

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Moving to the DTC search tab, he demonstrated how to search the service manual for pages relating to a specific DTC. “I really love this feature because it gives you the ability to research DTCs,” Anderson noted. “I won’t tell you what you should charge for scanning, but I do believe you should separate your diagnostic time from your scanning time because what’s really time-consuming is the amount of time it takes to research the DTCs.” Anderson’s demonstrated showed the detailed diagrams available in the service manual, and he also explained how users can print any subsection or chapter. Anderson concluded with the Help tab which provides a walkthrough on how to navigate and interpret the STIS website. Looking at the gray tabs across the top, Anderson opened Service Manual, stating, “This is going to give you some repair precautions that you may need to know as a collision repairer – either as a technician or as an estimator. I’ve found that reviewing this anytime you go into STIS for

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that specific make and model is an absolute must.” Scrolling through the tab, Anderson pointed out several interesting tidbits such as the need to allow the vehicle to get to operating temperature prior to performing a diagnostic scan, the necessity of ensuring adhesives used are products approved by Subaru, and reiterating the importance of researching what to do after disconnecting a battery. He added, “Another thing we really liked was the pre-delivery inspection procedure. These are the items a dealership must check before selling a new vehicle, and I found these items to be a great addition to our quality control checklist.” Under Service Manual – Suspension, Anderson pointed out a caution that prohibits reuse of valves and screws, meaning that a new valve stem is required each time a new wheel is put on. In the Steering section of the Service Manual, he read the specific operation required for proper performance, adding, “I encourage you to go back and navigate STIS. Repetition is key.” While exploring air bag and seat

belt systems, Anderson noted that mounting bolts and nuts should not be reused and explored the listed parts that need to be removed before performing certain procedures as well as the “comprehensive list of systems that need to be checked and parts that need to be replaced if the vehicle is in a collision, even a slight collision.” “We need to make sure we do these things,” Anderson continued. “I understand that sometimes the insurance companies don’t want to pay for some items, but it starts with us. We must accept personal responsibility, and if you’re not educated, how can we blame the insurer for that? There are a lot of things we need to make sure we’re researching every time we work on a vehicle.” Under the Diagnostics tab, Anderson demonstrated where information can be found about the occupant detection system, noting that the manual instructs the user to connect the Subaru Select monitor. “The only way we can verify the safe and proper repair is to use the approved scan tool,” Anderson emphasized. “STIS walks us through the questions we need to ask ourselves. It’s a very interactive

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website and takes me to the next screen based on the options I select, directing me to things that I may need to ask the customer.” While looking at the Eyesight feature, Anderson showed where the manual insists only a Subaru windshield wiper blade can be used on the vehicle. “It’s important that we use OEM parts even on something as simple as a wiper blade because using an aftermarket wiper blade could cause this Eyesight feature not to work properly.” Anderson also explained that the BRZ service manual looks different than any manuals for other Subaru vehicles because the BRZ was a joint project between Subaru and Toyota. He briefly navigated through the BRZ manual and explored some details and variances with this model. Moving onto the Owner’s Manual where he explored some requirements about seatbelts and airbags as well as a warning against attaching anything to the windshield, Anderson noted, “During all the OEM webinars we’ve done, one of the things I’ve learned is the value of reviewing the owner’s manual with the veARIZONA

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hicle owner when they drop off the car. Reviewing the owner’s manual is a great way to earn that vehicle owner’s trust.” As Anderson finished reading from the Eyesight document, Marino interrupted to share, “With the Eyesight camera lenses, if anything gets on those lenses, even if it’s a fingerprint, they cannot be cleaned & the camera assembly must be replaced.” Anderson then showed the Tech Tips Newsletter, found under “What’s New” as well as the advanced search tab, which is published monthly and available as a PDF download. He encouraged shop owners to review this with their technicians and shared some interesting tips he found in recent editions. If a user cannot find what they are looking for, the last page of each newsletter contains a form that can be used to contact Subaru to request clarity. In Summary, Anderson responded to questions submitted on the first webinar before accepting questions from the day’s attendees. This webinar is available on the Collision Advice website and YouTube channel. ARKANSAS

Subaru of Little Rock Little Rock (888) 690-8030 (501) 725-4375 Fax Mon.-Fri. 7-6; Sat. 7-3 micah@subaruoflr.com www.subaruoflittlerock.com COLORADO

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Huffines Subaru Corinth (888) 928-2978 (940) 321-2679 (940) 497-2920 Fax Mon.-Fri. 7-7; Sat. 8-5 les.hickman@huffines.net

autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

New Car Technology May Lead to Sticker Shock at Auto Body Repair Shops by David Patch, Blade Staff Writer

Back-up cameras and lane-departure warnings may help people drive more safely, but they also drive up newer vehicles’ repair bills, the American Automobile Association reported in a recent study. And a driver need not have been in a crash to face a four-figure repair bill. Even something as innocuous as an unfortunately placed windshield chip can cost big money if it affects the performance of an on-board safety system, the auto club reported. “It’s just unbelievable,” said Steve Grabke, owner of Steve Grabke’s Body Shop on Angola Road in Holland, OH, about the complexity of repairing vehicles equipped with advanced driver-assistance systems. Grabke said he has spent thousands of dollars training his staff to work on such vehicles, and replacing parts is only one facet of such repairs. “You have to set up targets for calibration, and every vehicle is different,” said Gary Todd, the manager at Grabke’s shop. And repair of some systems must be referred to dealer shops because it involves technology that is proprietary to the vehicle manufacturers. Todd said Grabke’s has lost about 10 percent of its work to such situations. “It is not unusual for windshields to get chipped or cracked, especially for drivers who commute on a daily basis,” Bob Kazmierczak, AAA’s director of automotive services, said in the report. “This may be an eyesore, but when it falls in the line of sight of a camera or the driver, it becomes a safety issue that needs immediate attention by a facility qualified to work on these systems,” the report said. Cameras and radar and ultrasonic sensors built into bumpers, body panels and even side mirrors are also vulnerable. “While most drivers may not find themselves in a collision, these parts can easily be damaged when pulling out of a garage or bumping into objects,” the auto club’s report said. When a customer brings a vehicle to an independent repair shop and it has to refer some of the work to a 52

dealer shop, that becomes a “sublet repair” that eats up most, if not all, of the profit, Kazmierczak said in the study.

hook for their policies’ deductibles. “More and more cars are coming with other stuff on the windows besides the rear-view mirror,”

Cortney Mann repairs and puts on a new door on a 2014 Cadillac XTS at Steve Grabke’s Body Shop on Dec. 19, 2018. Credit: The Blade, Amy E. Voigt

And when a particular repair is referred to a dealer, Todd said, “then they [customers] feel that you’re telling them you can’t fix their car.” Rick Lawrence, a co-manager at Smitty’s Automotive on Jackman Road, said calibration is the biggest obstacle for independent repair shops. “I can’t even fix most of these now because of the reprogramming requirements,” Lawrence said. “You can fix it, but you can’t make it work.” Vehicle owners should verify whether any repair facility can properly repair damaged systems and request proof of work once it’s complete, AAA said. “As technology continues to evolve, drivers need to be better educated and more aware of their vehicles’ capabilities,” Kazmierczak said. “This includes understanding how the vehicle systems work as well as how much repairs may cost if damaged.” With 1 in 3 Americans unable to afford even $500 in unexpected repairs, AAA strongly urges consumers to consider the potential repair costs of these advanced systems as well as to perform an insurance policy review, the auto club said. Les Breininger, the owner of Sylvania Auto Restyling & Glass, said insurance so far has covered all of his shop’s customers’ technologyrelated windshield replacements, but his customers are often still on the

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

Breininger said. Manufacturers specify that any cameras or sensors associated with replacement glass need to be recalibrated, at a cost typically ranging be-

tween $150 and $230, Breininger said, and windshields have become significantly more expensive than they used to be. In an article published during the summer, Consumer Reports also noted that road grime or winter’s ice and snow also can interfere with navigation systems’ performance, especially devices that rely on cameras. While auto manufacturers are developing “self-cleaning” features for those systems, they are far from universal. And like improper calibration, dirt, frost or other interference may render safety systems inoperative or inaccurate. AAA based its research on repair costs for “three top-selling models in popular categories,” including a small sport utility vehicle, a medium sedan, and a full-size pickup truck. It did not disclose the models, but it did identify the manufacturers as Ford, Toyota and Nissan. We thank The Blade for reprint permission.

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autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

ALLDATA Showcases Diagnostic Scan Tool and Collision Repair Product by Stacey Phillips

Having direct access to OEM repair information has many benefits for those in the collision repair industry. Not only does it ensure a vehicle is repaired properly for the customer, but it can also potentially limit liability for a body shop and the insurance company, according to Satwinder Mangat, president of ALLDATA, an AutoZone Company. Established in 1986, ALLDATA provides OEM service and repair information to more than 400,000 technicians in 115,000 repair shops worldwide. Over the years, the company has expanded its product line to include factory-correct diagnostic, repair and collision information, business tools and support services for the automotive service and collision industries. During the 2018 SEMA Show in Las Vegas, NV, Autobody News sat down with Mangat and the ALLDATA team to learn about one of the company’s newest products, ALLDATA Diagnostics, which was introduced to the market in October 2017. They also shared information about some of the other solutions they offer customers. The ALLDATA Diagnostics scan tool enables shops to turn their Android or Windows 10 tablet into a professional-level scan tool. One of its unique features is the integration of repair information from ALLDATA Repair or ALLDATA Collision within the tool. As a result, shop owners, service writers and technicians can perform pre- and post-scans with exportable reports, and the codes link to ALLDATA’s OEM-direct repair information and procedures. A recent development to ALLDATA Diagnostics this year is QuickScan, which allows technicians to run a full-system vehicle scan report with just one click. “All of this data gives shops the information they need to create detailed estimates the first time,” said Mangat, who has three decades of experience in the software industry and holds six technology patents. “Following OEM procedures helps ensure that vehicles are repaired back to pre-accident OEM condition, a requirement being mandated more and 54

more often by insurers and OEMs.” Rather than having to purchase the device, collision repair shops pay a monthly subscription fee for either ALLDATA Repair or ALLDATA Collision Advantage and receive unlimited pre- and post-scans with no

cludes OEM procedures such as sectioning and structural repairs, handling of new materials and panel removal and replacements. ALLDATA Collision Advantage is a combination of ALLDATA Collision and ALLDATA Estimate Integra-

The ALLDATA team at the 2018 SEMA Show in Las Vegas, NV

per-scan charge. Part of the subscription fee also includes free software and data updates as wells as the Vehicle Connection Interface (VCI) device that attaches to the vehicle’s OBD port. “There are a lot of scan tools on the market,” said Mangat. “Our goal wasn’t to introduce another scan tool. The goal was to start integrating the repair information within the scan tool.” He said the integration makes it very convenient for shops to access OEM information and allows technicians to print out the reports to attach to the claim. This can help limit liability by demonstrating that the repair has been done properly. Also, by prescanning the vehicle with the ALLDATA Diagnostics scan tool, Mangat said shops can provide the necessary documentation to insurance companies to get paid for the work that was completed. “Shops need to get paid for what they do, and we want to make sure they have the documentation to prove it to the customer and also to the insurance company,” said Mangat. “We’re also helping shops be more profitable because they are getting paid for what they are repairing.” ALLDATA Repair provides shops with online OEM repair information with factory-direct diagrams, repair procedures, TSBs and DTCs. Mangat said the product offers upto-date repair information, fast navigation, unedited OEM information and tech-verified repairs. ALLDATA Collision also offers unedited, factory-direct mechanical repair information. In addition, it in-

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

tion. It integrates with the three major estimating systems—Audatex, CCC and Mitchell—and provides line-byline repair information. ALLDATA Collision Advantage can analyze an estimate and then display OEM procedures and alerts, vital repairs and manufacturer positioning statements. Mangat said that identifying the required repairs helps shops

save time as well as improve operations by ensuring the estimates are more accurate. In 2017, the ALLDATA Collision Advantage product received the SEMA New Products Showcase award in the Collision Repair and Refinish category. This year, the company received two innovation awards from PTEN magazine: one for ALLDATA Diagnostics in the Scan Tools category, and one for ALLDATA Collision Advantage in the Computers and Software category. Paul Marshall, senior product manager of ALLDATA Diagnostics, demonstrated a full vehicle scan during the 2018 SEMA Show. www.youtube.com/watch?v=bXb7B 4nnN5U&t=11s Mark Schaben, regional sales manager, collision sales, demonstrated ALLDATA’s Collision Advantage product. www.autobodynews .com/index.php/videos/item/16618-atsema-2018-mark-schaben-demonstrates -alldata-s-collision-advantage .html For more information, visit www .ALLDATA.com.

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ASA Appoints Ray Fisher to Serve as Executive Director

ASA has a new leader. Ray Fisher, executive director of ASA’s Michigan affiliate, was selected to head the Automotive Service Association as its executive director/president. His new position began Jan. 2. Fisher, AMAM, replaces Dan Risley, who left to pursue an opportunity in his home state of Illinois in July. Beth Risch served as ASA’s interim chief operating officer while the ASA Board of Directors conducted an extensive search. “I appreciate the opportunity that the ASA Board of Directors has afforded me, and I look forward to serving the independent automotive repair industry,” Fisher said about his new role leading the 67-year-old organization. “We are at a critical time in our industry where involvement plays an important role. Education and training are no longer an elective but required. Trade schools were forgotten, technology can be overwhelming, and we have an aging workforce that is faced with some difficult decisions. ASA can help lead the industry in addressing those challenges.”

ASA Board Chairman Roy Schnepper, AAM, said the board felt Fisher distinguished himself in several categories that led to his selection.

“The ASA National Board considered many variables in choosing our next executive director,” said Schnepper. “After reviewing approximately 80 resumes, the search committee of Bryan Kelly, Jim Keller, Robert Redding, Darrell Amberson and myself narrowed it down to three well-qualified candidates and presented this to the board of directors at the November board meeting in Las Vegas. Ray’s broad industry background and long association experience as executive director of the ASA-Michigan affiliate made him the best candidate. We welcome Ray to his

new role and look forward to working with him to grow the association through his knowledge and dedication to serving our members.” Fisher, who has served the industry in varied roles, has been president and executive director of ASA-Michigan since 2010. In addition, he served as a body shop manager for more than 20 years, assistant parts manager and an expert witness for a local law firm regarding collision repair and processes. With formal education in business administration, Fisher is an Accredited Automotive Manager (AAM) and an Accredited Master Automotive Manager (AMAM). He has extensive legislative experience, driving key issues for ASA-Michigan members on sales tax issues and shop licensing. His recognition and contributions to the organizations he served have resulted in numerous awards, including the ASA Affiliate of the Year Award in 2018, ASA Legislative Award in 2015 and 2016, as well as the I-CAR Founder’s Award.

Up to $60 Million Is Available for Testing ADS by Staff, Intelligent Transport

The U.S. Department of Transportation (USDOT) recently announced the availability of up to $60 million in federal grant funding for projects that test the safe integration of automated driving systems (ADS). The ADS Demonstration Grants aim to ensure significant data gathering and sharing of project data with USDOT and the public throughout the project in near-real time to inform rulemaking. They also aim to work with innovative state and local governments and private partners to create collaborative environments that harness the collective expertise, ingenuity and knowledge of multiple stakeholders. One of the main focuses of the grants is to test the safe integration of ADS into the nation’s on-road transportation system. Grant applications are due in March 2019 and awardees will be announced in the spring of 2019. Originally published on www .intelligenttransport.com.

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autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

CREF Career Fairs Pair Eligible Graduates With Transportation Industry Positions The new and improved version of the Collision Repair Education Foundation career fairs is going strong. Businesses across the transportation industries, including collision repair, automotive services, heavy duty auto and diesel automotive, are meeting their matches, and new graduates are finding their happily-ever-after careers.

Ricky’s skill grow tremendously over a short period, and he is the embodiment of what this company is about—doing a proper repair while trying to WOW our customers.” What makes these career fairs new and improved isn’t just the addition of hiring industries outside of collision repair, but also CREF’s new

Gerber, and I jumped on it because it was a good learning opportunity.” Each career fair hosts upwards of 400 students and a variety of hiring businesses in the transportation industries. The goal is to pair the brightest new graduates with the most lucrative entry-level positions in the industries.

“I got a young and enthusiastic tech out of [the career fair]” — Aleksei Keller, General Manager at Gerber Collision.

Enrique Dorantes, a Gerber Collision technician, was hired at a CREF career fair last year

“I got a young and enthusiastic tech out of [the career fair]” said Aleksei Keller, general manager at Gerber Collision. “We have seen

partnerships with TechForce Foundation and S/P2. Working with these partners allows CREF to help high school and college students and graduates prepare for the interviews they dream of getting as a result of the fair, facilitate onsite interviews and play a more active role in employment presentations. “I had an idea of what opportunities were available to me in collision repair from school,” said Enrique Dorantes, a Gerber Collision technician hired at a CREF career fair last year. “At the fair, I learned about the technician development program at

GM To Double Resources for Electric, Autonomous Vehicles by Sam McEachern, GM Authority

General Motors recently announced that it is doubling the amount of resources it will allocate toward the development of electric and autonomous vehicles over the next two years. The announcement came as part of the promotion of former head of product at General Motors, Mark Reuss, to president of the company. “Reuss has also been leading the transformation of the company’s global product development workforce and processes to drive world-class levels of engineering in advanced technologies and improve quality and speed to market,” GM said in a prepared statement. “He is doubling the resources allocated to electric and autonomous vehicle programs in the next two years.” GM CEO Mary Barra said Reuss has also “played a critical role in leading the development of the company’s award-winning vehicles while transitioning his team to prepare for growing electrification and autonomous technologies.” While no official monetary figure was provided by GM, the automaker is dumping quite a significant amount of money into the development of 56

electric and autonomous vehicles. Late last year, the automaker announced it would invest $28 million in its battery development and test lab. It has also spent more than $1 billion to acquire and expand its self-driving car subsidiary, Cruise Automation. GM recently axed one of its plug-in hybrid vehicles, the Chevrolet Volt, in order to make way for more battery electric vehicles. It also got rid of other aging, slow-selling product in order to free up cash to invest in EVs and AVs. GM models set to be discontinued include the Chevrolet Cruze, Chevrolet Impala, Buick LaCrosse, Cadillac XTS sedan and Cadillac CT6 sedan. GM Canada is rumored to be killing off the Chevrolet Sonic as well—a move that GM will eventually copy, we (GM Authority) imagine. The American automaker recently passed the 200,000-EVs-sold milestone, which means its EV customers will no longer be eligible to receive the $7,500 tax credit. The government will phase out the tax credit system for GM over the next 15 months. We thank GM Authority for reprint permission.

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

Dorantes said the opportunities he found in school all required more experience than his education provided, so prior to the career fair, he was looking at taking a low-paying job just to get his feet wet. “I needed more real-world experience. School was 80 percent textbook learning and 20 percent hands-on. Gerber offered me an opportunity to learn on the job and they provide tools, which isn’t something I could find just anywhere,” he said. Keller is ecstatic with Gerber’s hire just six months in. “Most young employees don’t ask a question, but

he is full of them on a daily basis [and] trying to expand his knowledge,” said Keller. “We were really impressed with his attitude.” Spring Career Fair Dates The Foundation is currently planning career fairs on the following dates next spring: • • • • • • • • • • •

Miami, FL (2/27) Tampa/Orlando, FL (2/28) San Antonio, TX (3/6) Phoenix, AZ (4/6) Atlanta, GA (TBD) Chicago, IL (TBD) Dallas, TX (TBD) Detroit, MI (TBD) Houston, TX (TBD) Northern VA (TBD) Northern and Southern CA (TBD)

Additional dates will be announced soon.

For more information on how to participate in a career fair or establish one in your community, contact Brandon Eckenrode, director of development, via phone at (312) 231-0258 or email at Brandon.Eckenrode@ed-foundation.org

AMi To Host FCA Certified Collision Network Online Training The Automotive Management Institute (AMi) announced it has been chosen to host the FCA Certified Collision Network’s nontechnical training in conjunction with industry-leading consultant and Collision Advice owner Mike Anderson.

The goals of the training program are to improve the return on investment for the FCA certified network shop, support accurate and safe repairs, and improve the FCA customer experience. The online courses will be available through AMi’s learning portal and focus on specific topics such as the proper use of Tech Authority, how to leverage the FCA certification and more. The FCA online courses are designed for individuals involved in administrative, management,

estimating and repair planning roles. Based on the topic, online courses will start the year as highly recommended or recommended by FCA to participate in its Certified Collision Network. The online courses, though intended for FCA Collision Network shops, will be available to anyone in the industry. “It is an honor to have FCA as our first OEM partner, and [we] have tremendous appreciation for their determination to ensure the FCA customer has a great collision repair experience and receives a safe and proper repair. The AMi next generation project positioned AMi to support organizations interested in improving their customers’ satisfaction,” said Jeff Peevy, AMi president. “I also want to acknowledge the incredible leadership and work Mike Anderson has provided on this project. The positive impact this initiative will have on the FCA Certified Collision Network and its customers will be substantial.”

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Ford Recalls 953,000 Vehicles for Airbag Flying Shrapnel Threat by Phoebe Wall Howard, Detroit Free Press

Ford Motor Co. issued a recall on Jan. 4 of nearly 1 million vehicles in North America with a risk of flying shrapnel caused by exploding Takata airbag inflators. The latest action involves more than 953,000 Ford vehicles worldwide—including 782,384 in the U.S. and its territories and 149,652 in Canada. Seven Ford and Lincoln vehicles are named in the recall: • • • • • • •

Ford Edge, 2010, built in Oakville Lincoln MKX, 2010 built in Oakville Ford Ranger, 2010 and 2011 built in the Twin Cities Ford Fusion, 2010 to 2012 built in the Hermosillo Assembly Plant Lincoln MKZ, 2010 to 2012 built in the Hermosillo Mercury Milan, 2010 and 2011 built in the Hermosillo Ford Mustang, 2010 to 2014 built in Flat Rock

Ford urges consumers to get their vehicles to dealers as soon as

monium nitrate to create an explosion that causes inflation. But heat and humidity can damage the integrity of the system and cause it to deteriorate and explode with too much force, blowing apart a metal canister designed to contain the explosion. Unrelated to Takata airbags, Ford also issued a safety recall on certain 2019 Ford Ecosport vehicles because the front seats haven’t been welded properly and may come loose. “A seat back with an inadequate weld may have reThe Flat Rock Assembly Plant stands with the ruby red duced strength ... potentially 2014 Mustang convertible that was the 1 millionth increasing the risk of injury Ford Mustang built at the Flat Rock assembly after in a crash,” Ford said in its an event marking the milestone in April 2013. Credit: release. Ryan Garza, Detroit Free Press Ford is not aware of any Ford said it has no reports of in- accidents or injuries resulting from juries involving these vehicles. But this condition. The recall impacts about 87 at least 23 people worldwide have been killed in incidents involving EcoSport vehicles in North America, Takata airbags, which led to one of including 63 in the U.S. and its territhe largest recalls in history involv- tories and 13 in Canada. Ford dealers will replace front seats on affected ing multiple carmakers. The Takata airbags, which are vehicles with new seats. We thank Detroit Free Press for intended to prevent or reduce injury upon impact, use the chemical am- reprint permission. possible for replacement. They will replace the passenger frontal airbag inflator or module at no cost.

Collision Works Utilizes Symach’s FixLine Process

Symach announced that the company has installed three new body shops for Collision Works of Oklahoma (CWO)—two in Tulsa and one in Oklahoma City—utilizing Symach’s FixLine process. The three locations are currently using Symach’s FixLine system, Drytronic technology and the Symach Paint Application Process (SPAP). Jake Nossaman, owner of the shops, said the company expects that the modern equipment and process will enable the repair facilities to cycle vehicles through the shops faster, reach their financial goals much easier and improve CSI scores. “We helped Collision Works customize their new locations using the FixLine Process, which will enable the state-of-the-art collision centers to optimize repair times and reduce labor costs by as much as four or five hours for each repair,” said Osvaldo Bergaglio, CEO of Symach.

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Tesla Owners Go Behind-the-Scenes at a Certified Tesla Repair Center by Kay Talley and EVANNEX for InsideEVs

Attendees from Denver Tesla Club experienced a unique opportunity to see damaged cars up close, personal and naked at Stuttgart Auto Body, a Tesla collision repair facility in Denver, CO.

They visited to gain insight into the structure of Tesla’s vehicles— and what can possibly go wrong while out on the road. Stuttgart is certified by Porsche, Mercedes and Tesla. The main focus of the Englewood facility is the lat58

ter. State Farm expert Austin Domsch was also on hand to explain coverage of the incident. Accidents happen. How they are taken care of is an eye-opener into the vehicle and the overall construction of Models S, X and 3. The crumple zone up front is a testament to its lifesaving abilities. Tesla is possibly the most complicated of vehicles to work on, but Stuttgart has made a massive investment in all Tesla-approved equipment necessary and continues to grow with the company to keep up with the electric carmaker’s continually evolving technology. Tesla Fremont handson trained technicians are passionate about returning a car to an owner in pre-accident condition and use only Tesla OEM and diagnostics. We thank InsideEVs for reprint permission.

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Regional Association Event Announcements: February 2019 by Chasidy Rae Sisk

See below for a list of regional automotive association events coming up in February: AASPI Annual Meeting To Feature Mike Anderson On Feb. 23, the Alliance of Automotive Service Providers of Illinois (AASPI) will be hosting its 2019 Annual Meeting at the Diplomat West in Elmhurst, IL, from 9 a.m. until 3:30 p.m. The event will feature a keynote presentation by Mike Anderson of Collision Advice as well as a presentation delivered by Eric Newell of asTech, an AASPI Elite Provider member. According to AASPI Executive Director Mike Lane, “We have also extended an invitation to Senator Tom Cullerton (D-23) and Representative Elizabeth Hernandez (D-24), who have shown interest in working with AASPI in the introduction of legislation mandating all estimates be written using OEM repair procedures.” Anderson’s presentation is ti-

tled “Positioning Yourself in the Collision Repair Industry” and will focus on what the future holds for collision repair professionals. Some of the topics that Anderson will cover during AASPI’s Annual Meeting include how telematics and connected vehicles will impact the damage analysis process, how telematics and connected vehicles will impact FNOL and when it will happen, how to prepare for the fact that 36 percent of consumers want services outside a shop’s normal business hours, and preparing for the prediction that 70 percent of claims will be handled by photo or video inspection by 2020. Anderson will also provide an overview of Collision Advice’s “Who Pays for What?” surveys and an update on OEM certifications as well as other relevant industry topics. Newell will present “Why is Post-Repair Calibration So Important?” He will demonstrate why it is vital for collision repair facilities to understand which systems may be impacted by the repair process because calibrating the ADAS is vital

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to a properly and safely functioning vehicle. AASPI’s Annual Meeting will also include the election of officers and directors. Current President Bob Gottfred of Erie LaSalle Body Shops will be re-elected, as will Vice President Doug Fiala from Douglas Auto Body and Secretary/Treasurer Paul Mason of AutoNation. Mayers Collision Center’s Joe Mayer will continue to serve as a director for the association alongside newly elected directors Tom Stiefbold of O’Hare Auto Body and Tim Paap from Paap Auto Body. Additional information and registration for the event will be available on the association’s website at aaspi.org or by calling the AASPI office at 217-528-5230. YANG To Host 2 Meet-Ups in MI and LA The Young Auto Care Network Group (YANG) will host two Regional Meet-Ups in February. On Thursday, Feb. 7, YANG will meet up in Grand Rapids, MI, in conjunction with the Auto Value Bumper to Bumper Tech Expo. This Meet-Up will be hosted by Auto Wares. On Wednesday, Feb. 27, YANG’s Meet -Up will be held in New Orleans, LA, in conjunction with the 2019 Women in Auto Care Leadership Conference. For more information about YANG and its scheduled events, visit autocare.org/what-wedo/professional-development/youngauto-care-network-group/ ASA-AZ Tucson Chapter To Host February Roundtable On Feb. 5, the Tucson Chapter of ASA-AZ will host an Automotive Roundtable from 6 p.m.–8:30 p.m. at El Corral Restaurant in Tucson, AZ. The goal of these meetings is to provide a platform for association members to share the challenges they face in their businesses and identify potential solutions. For more information on ASA-AZ, visit asaaz.org. HABA & ABAT To Host 2019 Collision Day The Houston Auto Body Association (HABA) scheduled a 2019 Collision Day for Feb. 12 in Austin, TX, at the State Capitol. This will be a joint effort in collaboration with the Auto

Body Association of Texas (ABAT). The purpose of the event is to put repairers and other industry representatives in direct contact with state leaders. The Texas collision repair industry is ready to stand up as a collective force for change emphasizing “Safety and Enforcement of the Texas Consumer Bill of Rights,” according to HABA Legislative Coordinator Larry Cernosek. For more information on HABA, visit haba online.org. AWAF To Host Fireside Chat The Automotive Women’s Alliance Foundation (AWAF) will host a Fireside Chat on Feb. 6 in a private residence, featuring Ms. Julie Martin, vice president of sales and marketing for HELLA USA. For more information on AWAF, visit awa foundation.org. ASA-OH To Host Repair Planning Workshop On Feb. 6, ASA-OH will host a workshop titled “Optimize Performance Through Repair Planning” presented by Robb Power, senior manager of business solutions for PPG’s Automotive Refinish division. Rescheduled from September due to a hurricane, the workshop is scheduled for 9 a.m.– 4 p.m. at Ohio Auto Kolor in Columbus, OH. Power’s presentation will focus on explaining how shops have the potential to deliver improved performance by utilizing the repair planning process. It will include an explanation of the impact the traditional estimating process has on work flow, knowledge of the benefits to the business for those who can successfully implement repair planning, detailed instructions on the repair planning process, and an in-depth exploration of the things to do and avoid in order to successfully implement repair planning. The cost to attend this workshop is $45 for association members and $90 for non-members. For more information about ASAOH and its events, visit asaohio.org.

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autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

CREF Benchmark Grant Applications Available to Collision Schools The application for the Collision Repair Education Foundation Benchmark Grant program, formerly the Ultimate Makeover Grant, is now available to schools teaching collision repair across the U.S. The grant program is in its 10th year. Instructors are advised to begin the application early, and industry professionals are encouraged to get involved with the Benchmark grant by working with their local school’s collision instructors to help them apply. The winning schools will be announced during the SEMA show in Las Vegas, NV, in November. Awards of up to $25,000 will be given. The school Benchmark Grant application is available online and is due by Friday, June 7, 2019. “Schools teaching the next generation of the collision industry’s workforce continue to face tremendous budgetary pressure. It is difficult for many to maintain their program at current capabilities, no less increase their abilities and improve the training they deliver to the industry’s future workforce,” said Melissa Marscin, director of operations/administration for the Foundation. “The Benchmark grant program is de-

signed to help collision schools get the much-needed tools, equipment and supplies to increase their capa-

bilities based upon industry-developed standards. Last year, every school that applied received some level of support through both grants and in-kind donations.” The Benchmark grant program incorporates the Foundation’s Collision School Career Readiness Benchmark that was launched in 2017. Under the program developed by the Foundation, schools are classified into three tiers: • Tier 1: Advanced • Tier 2: Proficient • Tier 3: Developing

The designation will be determined by the Foundation based upon information provided by schools about the capabilities of their program de-

tailed in the Collision Repair Education Foundation Benchmark grant application. The criteria for each level includes the number of hours of instruction and curriculum in place, along with what tools, equipment and supplies a school uses to prepare their students for employment in the collision industry.

line at: https://app.wizehive.com/app form/login/2019SchoolGrant The organization’s Board of Trustees Selection Committee will select the winners of the awards and determine which items off the wish lists each school will receive. Since 2009, schools have been able to apply for the grant to get much-needed tools, equipment and supplies. Over $4 million in cash and in-kind donations have been

If there is something that a school needs to advance to the next level, the Education Foundation’s grant application will allow a school to request that particular item. The goal is to help every school acquire the resources needed to eventually achieve a Tier 1: Advanced school designation. Schools at Tier 1 status can request support for items that further advance and expand their program. The application is available on-

given out to schools as a result of the grant, and more than 25,000 collision students have been impacted by the program. Collision repair facilities, insurance companies and suppliers interested in supporting school grants should contact Collision Repair Education Foundation Director of Development Brandon Eckenrode at Brandon.Eckenrode@ed-foundation .org or (312) 231-0258.

“Last year, every school that applied received some level of support through both grants and in-kind donations.” — Melissa Marscin

Consumers Confused by Partially Automated Driving Features by David A. Wood, CarComplaints.com

We thank CarComplaints.com for reprint permission. https://www.car complaints.com/news/2018/consumers -confused-by-partially-automateddriving-features.shtml What’s in a name? When it comes to partially automated driving systems, apparently a lot. The latest research from AAA indicates that 40 percent of U.S. consumers believe partially automated driving systems can do all the driving—a scary proposition for all drivers on the roads. Names such as Autopilot, Pilot Assist and ProPILOT allegedly confuse some drivers who don’t pay attention to their surroundings because they believe the cars handle all the driving chores. In addition to the confusing names used by some automakers, researchers at AAA also tested multiple systems in four vehicles and determined they suffered from serious problems when dealing with stationary vehicles, poor lane markings and unusual traffic patterns. To research partially automated vehicle capabilities, AAA conducted tests on the closed surface streets of 60

the Auto Club Speedway in Fontana, CA. Additional tests were conducted on highways and limited-access freeways in the Los Angeles area.

Researchers used a 2018 Mercedes-Benz S-Class, 2018 Nissan Rogue, 2017 Tesla Model S and 2019 Volvo XC40, all equipped with standard partially automated driving features. While driving on public roadways, the test vehicles had problems in moderate traffic, on curved roadways and when traveling streets with busy intersections. “Researchers noted many instances where the test vehicle experienced issues like lane departures, hugging lane markers, ‘ping-ponging’ within the lane, inadequate braking, unexpected speed changes and inappropriate following distances,”

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

stated AAA. According to researchers, the systems typically did best on open freeways and freeways with stop-andgo traffic. However, nearly 90 percent of events requiring driver intervention were caused by the inability of the test vehicle to maintain lane positions. Closed-track tests were conducted by using multiple driving conditions such as following an impaired driver and coming upon a tow truck or a vehicle that suddenly changed lanes to reveal a stopped vehicle was in the road. AAA said all the vehicles successfully maintained lane position and recognized and reacted to the presence of the tow truck with little to no difficulty. However, three of the four test vehicles required the drivers to intervene and take control to avoid an imminent crash when a lead vehicle changed lanes to reveal a stationary vehicle. Real-world examples exist, as drivers claimed they crashed due to believing their cars could take full control in all driving situations, even when the owners’ manuals clearly said otherwise. Within the past few months, Tesla

has been sued twice by drivers who crashed while not paying attention to the roads. In one crash, a Tesla Model S crashed into a stalled vehicle at 80 mph because the driver believed the car would stop on its own. A separate lawsuit alleges the driver was deceived by Tesla’s marketing of its Autopilot system, causing the driver to remove her hands from the wheel for 80 seconds just prior to the crash. AAA’s research isn’t the first to show how drivers can be confused by the different names used for similar features offered by various automakers. In a paper released by the Thatcham Research Center and the Association of British Insurers, researchers found consumers can easily fail to understand the differences between advanced driver assistance systems and fully automated driving technology. The confusion can cause drivers to ignore the reality of needing to stay fully alert to deal with all driving conditions. In addition, researchers said confused drivers can also lack the ability to understand that they may be completely legally responsible for any crashes that occur.

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