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Vol. 36 / Issue 12 / December 2018
2018 Legislative Roundup in California: It Was a Very Good Year
Progressive Corporation’s Appeal Dismissed by State Appeals Panel in FL
by Ed Attanasio
by Emmariah Holcomb, glassBYTEs.com
There were a lot of proposed bills this year that could have either helped or hurt the collision repair industry in California. But by working hard to support or oppose them, CAA lobbyist Jack Molodanof was able to say it was a productive and successful year, legislatively speaking. “The state legislature adjourned for the year, and the governor finished taking action on many bills,” Molodanof said. “CAA had a very successful legislative year, which
included supporting new laws that require preventative maintenance facilities to be registered with BAR and allowing customer authorizations through text message and other electronic means. CAA was also actively involved in stopping several pieces of legislation, including bills that would have: 1.) allowed insurers to conduct labor rate surveys in a manner skewing results and suppressing market rates; 2.) treated auto repair facilities as debt collectors and 3.) created new tires fees.” Below is a summary of key bills See Legislative Roundup, Page 12
Automakers at OEM Summit Offer Updates on Certified Collision Repair Center Programs by John Yoswick
The Society of Collision Repair Specialists’ (SCRS) day-long OEM Col-
Nicole Riedel of Subaru said the automaker’s certified shop program will be opening up for independent shop participation
lision Repair Technology Summit held in Las Vegas during SEMA included updates from a number of automakers on their collision shop certification programs. Nicole Riedel of Subaru of America, for example, said that independent shops will soon be added to her company’s shop certification program that was launched with dealership shops this past June. “We have a little over 600 retailers across the U.S., and of that, at most one-third have collision centers,” Riedel said. “That’s not nearly See OEM Summit, Page 24
Progressive Corporation’s appeal was dismissed by the state appeals panel in Florida in early November. The auto insurer has been accused of piling windshield replacement companies with the cost of insurance appraisals, according to court documents. Two years ago, four companies sued Progressive in a county court, claiming the company was in breach of contract for only paying a portion of covered windshield repairs. The four windshield replacement companies are: • • • •
SHL Enterprises LLC, Shazam Auto Glass LLC, Glassmetics LLC, and Lloyd’s of Shelton Auto Glass LLC
According to Progressive, its company policy includes an appraisal provision that works to resolve repair cost disputes. The windshield replacement companies claimed the appraisal provisions violated state law. According to the panel, the county court agreed and considered the provisions unenforceable because it requires windshield companies to pay for appraisal costs. The court claimed this was equivalent to a deductible. The appeals panel claimed the lower courts, who had previously viewed the case, misunderstood state laws after these instances:
• The lower courts referred to the company’s cost-shifting as a deductible, and See Appeal Dismissed, Page 17
11th Circuit Considers Whether to Reinstate Auto Insurance Price-Fixing Claims
ices by agreeing among themselves to pay a preset “market rate” and to enThe U.S. Court of Appeals for the force compliance by “steering” their Eleventh Circuit heard arguments Oct. insureds to businesses that play ball, 23 leveled by a group of auto body re- effectively boycotting other shops. pair shops claiming State Farm InsurIn addition to State Farm, the defendants include Allstate, Progressive, GEICO, Nationwide, USAA, Liberty Mutual and Hartford, among others. Sitting en banc, the judges were considering whether to keep alive multidistrict litigation that was tossed out by a district judge for failure to Mark Shurtleff (left) and John Eaves. Republished with state a claim, then revived by permission. Credit: John Disney, ALM/Daily Report a split panel last year. ance and a host of other national The cases have been combined carriers are conspiring to fix prices. in Florida’s Middle District, and the The plaintiffs say the insurers instant appeals represent five of 14 have conspired to drive down the similar complaints combined in the prices they’re charged for repair servSee Price-Fixing Claims, Page 10 by Greg Land, Daily Report
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DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
CONTENTS
BASF New Sponsor of Detroit Autorama Great 8
REGIONAL
NATIONAL
AMM Collision Earns Austin, TX, 2018 Top
11th Circuit Considers Whether to Reinstate
Workflow . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Auto Dealers Push Back on Proposed Lubbock, TX, Zoning Change . . . . . . . . . . . . 23 CO Hail Repair Shop Rips Off Customer, Service King Finishes the Job . . . . . . . . . . . 11 East Valley, AZ, in Spotlight in Bold Driverless Vehicle Plan . . . . . . . . . . . . . . . . . . . . . . . . 14 El Paso, TX, Gets Hit With Hail in the Borderland . . . . . . . . . . . . . . . . . . . . . . . . . 18 Hodges Collision Center Names Chris Ryland as Tomball Pkwy Location Manager in TX . . . 8 LA Auto Body Shop Warns of Blindly Trusting Car Repairs. . . . . . . . . . . . . . . . . . . . . . . . . . 6 Number of Flooded Cars on the Road Jumps 47% Over Past Year . . . . . . . . . . . . . 58 Study Shows Car Insurance Is Least Affordable in Louisiana . . . . . . . . . . . . . . . . 18 Tri-Lakes Collision’s Commitment to Community Grows With Expansion in CO . . . . . . . . . . . . . 6 TX Auto Collision, Management Technology Program Receives National Grant . . . . . . . . 17
Auto Insurance Price-Fixing Claims . . . . . . . . 1 2018 Legislative Roundup in California: It Was a Very Good Year. . . . . . . . . . . . . . . . . 1 Automakers at OEM Summit Offer Updates on Certified Collision Repair Center Programs . . 1 AutoNation Embarks on New Parts Path . . . . . 59 AutoNation Launches New Theme Vehicle for Breast Cancer Awareness . . . . . . . . . . . 59
Anderson - Toyota’s Training Website Offers Free Information for Collision Repairers. . . . 40 Attanasio - Industry Veteran Creates Vintage Wine Furniture . . . . . . . . . . . . . . . . 52 Attanasio - PPG’s Jennifer Jarzembowski Discusses Impact of OEM Certifications . . . 38 Ledoux - The Fabulous ‘50s and Mr. O’Donnell’s Invention . . . . . . . . . . . . . . . . . 42 Phillips - 5 Key Steps to Implementing Practical Production Processes . . . . . . . . . . 48 Phillips - Why OEM Certifications Are Critical to Remain in Business. . . . . . . . . . . 36 Sisk - ASA-CO Members Learn To Implement, Maintain Their Sales Machines . . . . . . . . . . 20 Sisk - CCRE’s Fall Seminar & Convention Teaches Body Shop Owners Another Way of Conducting Business . . . . . . . . . . . . 20 Sisk - Dave Luehr Teaches WIN Members How To Develop a WINner’s Mindset . . . . . . 50
The Detroit Autorama is celebrating its 67th anniversary in 2019 and will be held at Cobo Center in Detroit, Michigan March 1-3.
Under Pilot Project . . . . . . . . . . . . . . . . . . . . 4 AWAF Workshop Focuses on Finance, Accounting for the Non-Financial Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 BASF New Sponsor of Detroit Autorama Great 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 CARSTAR Weighs in on the Hefty Costs of Hazardous Deer . . . . . . . . . . . . . . . . . . . 28 CIF Elects Scott Walton as New Trustee . . . . . . 54 CREF Fundraiser Co-Hosted by PPG Raises $130,000. . . . . . . . . . . . . . . . . . . . . 60 CREF Receives $100,000 Donation From Allstate Insurance . . . . . . . . . . . . . . . . . . . . 58 Elon Musk Pledges to Improve Tesla’s Service Location Coverage Within 3−6 Months . . . . 22
COLUMNISTS
The Great 8 finalists are announced to great fanfare at the Ridler’s Ball on Friday evening during the Detroit Autorama.
Autonomous Vehicles May Hit U.S. Roads
Fake Recall Notices Get Car Dealers in Trouble With FTC . . . . . . . . . . . . . . . . . . . . . 56 Glasurit Best Paint Award Given at SEMA . . . . 18 Matrix Appoints Steve Lyon, VP of OEM Relations. . . . . . . . . . . . . . . . . . . . . . . . . . . 17 PPG to Acquire SEM Products, Inc. . . . . . . . . . 29 Progressive Corporation’s Appeal Dismissed by State Appeals Panel in FL . . . . . . . . . . . . . 1 Service King Opens Its 16th AZ Collision Repair Center . . . . . . . . . . . . . . . . . . . . . . . 16 The Next Generation Speaks Out on Their Collision Repair Careers . . . . . . . . . . . . . . . 44 Trump’s EPA Rattles Self-Driving Car Industry by Picking ‘Winners and Losers,’ Critics Claim . . 4 Why Are Thieves Stealing Airbags From New Honda Civics and Accords? . . . . . . . . . 60 WIN Announces Opening of Most Influential Women Nominations . . . . . . . . . . . . . . . . . . 54 Progressive Corporation’s Appeal Dismissed by State Appeals Panel in FL . . . . . . . . . . . . . 1
INDEX OF ADVERTISERS
Workplaces Award . . . . . . . . . . . . . . . . . . . . 8 ASA-CO Members Learn to Manage Shop
The Detroit Autorama is proud to announce that BASF is the new sponsor of the Detroit Autorama Great 8. The Great 8, which will now be known as the BASF Great 8, is composed of the eight finalists chosen each year to compete for Detroit Autorama’s prestigious Ridler Award. Being named as a Great 8 finalist is a highly sought-after achievement. Renowned custom car builders from across the U.S. bring their creations to the Detroit Autorama in the hope of being named to the Great 8 and ultimately competing for the Ridler Award.
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. ©2018 Adamantine Media LLC.
Audi South Austin . . . . . . . . . . . . . . . . . . 48 Audi Wholesale Parts Dealers . . . . . . . . . 57 AutobodyLaw.com. . . . . . . . . . . . . . . . . . 20 AutoNation Chevrolet. . . . . . . . . . . . . . . . 54 AutoNation Chrysler-Dodge-JeepRam NRH . . . . . . . . . . . . . . . . . . . . . . 18 AutoNation Chrysler-Jeep-Dodge-Ram of North Phoenix . . . . . . . . . . . . . . . . . 28 AutoNation Collision Parts . . . . . . . . . . . . 21 Axalta Coating Systems . . . . . . . . . . . . 5, 11 Berge Ford . . . . . . . . . . . . . . . . . . . . . . . 41 Big Mike Naughton Ford . . . . . . . . . . . . . 45 BMW Wholesale Parts Dealers . . . . . . . . . 52 Bob Howard PDC. . . . . . . . . . . . . . . . . . . 49 Car-Part.com. . . . . . . . . . . . . . . . . . . . . . 17 Chapman Chevrolet. . . . . . . . . . . . . . . . . 50 Chevyland . . . . . . . . . . . . . . . . . . . . . . . . 38 Chicago Pneumatic Compressors . . . . . . . 6 Christopher’s Dodge World . . . . . . . . . . . 45 Christopher’s Mitsubishi . . . . . . . . . . . . . 45 Classic BMW . . . . . . . . . . . . . . . . . . . . . . 40 Classifieds. . . . . . . . . . . . . . . . . . . . . . . . 62 Courtesy Chevrolet-Isuzu. . . . . . . . . . . . . 47 Covert-Chrysler-Dodge-Jeep-Ram. . . . . . 10 Dallas Dodge. . . . . . . . . . . . . . . . . . . . . . 64 Dent Magic Tools. . . . . . . . . . . . . . . . . . . 14 Dominion Sure Seal. . . . . . . . . . . . . . . . . 35 Don Carlton Auto Group . . . . . . . . . . . . . . 26 ECS Automotive Concepts . . . . . . . . . . . . 30 Emich Chevrolet . . . . . . . . . . . . . . . . . . . 45 Emich Volkswagen . . . . . . . . . . . . . . . . . 45 Equalizer Industries, Inc. . . . . . . . . . . . . . 29 Finnegan Chrysler-Jeep-Dodge . . . . . . . . . 2 Fisher Acura . . . . . . . . . . . . . . . . . . . . . . 45 Fisher Honda . . . . . . . . . . . . . . . . . . . . . . 45 Flatirons Subaru . . . . . . . . . . . . . . . . . 7, 45 Ford Wholesale Parts Dealers . . . . . . . . . 55
GM Wholesale Parts Dealers . . . . . . . . . . 61 Greeley Subaru . . . . . . . . . . . . . . . . . . . . 36 GYS Welding USA . . . . . . . . . . . . . . . . . . 12 Honda-Acura Wholesale Parts Dealers. 32-33 Hyundai Wholesale Parts Dealers . . . . . . . 59 Kia Motors Wholesale Parts Dealers. . . . . 51 Larry H. Miller Chrysler-Jeep-DodgeRam/Sandy . . . . . . . . . . . . . . . . . . . . . 15 Launch Tech USA. . . . . . . . . . . . . . . . . . . 63 Matrix Automotive Finishes . . . . . . . . . . . 27 Mercedes-Benz . . . . . . . . . . . . . . . 9, 25, 39 Mercedes-Benz of Littleton . . . . . . . . . . . 45 Mercedes-Benz Wholesale Parts Dealers . 60 Mitsubishi Wholesale Parts Dealers . . . . . 58 MOPAR Wholesale Parts Dealers . . . . . . . 37 North Freeway Hyundai . . . . . . . . . . . . . . 53 Part of the Club . . . . . . . . . . . . . . . . . . . . 45 Peak Kia . . . . . . . . . . . . . . . . . . . . . . . . . 45 Polyvance . . . . . . . . . . . . . . . . . . . . . . . . 23 Ray Huffines Chevrolet . . . . . . . . . . . . . . 34 RBL Products . . . . . . . . . . . . . . . . . . . . . 31 Rickenbaugh Volvo . . . . . . . . . . . . . . . . . 45 Robaina Industries, Inc . . . . . . . . . . . . . . 43 SATA Dan-Am Company . . . . . . . . . . . . . 19 Schmelz Countryside. . . . . . . . . . . . . . . . 45 Sherwin-Williams Automotive Finishes . . 13 South Pointe Chrysler-Jeep-Dodge . . . . . . 22 Spanesi Americas . . . . . . . . . . . . . . . . . . 16 Subaru of Little Rock . . . . . . . . . . . . . . . . 53 Subaru Wholesale Parts Dealers . . . . . . . 46 Symach. . . . . . . . . . . . . . . . . . . . . . . . . . 24 Toyota of Laredo . . . . . . . . . . . . . . . . . . . 44 Toyota Wholesale Parts Dealers . . . . . . . . 56 Volkswagen Wholesale Parts Dealers. . . . 56 YesterWreck . . . . . . . . . . . . . . . . . . . . . . . 8 Young Chevrolet . . . . . . . . . . . . . . . . . . . 42
Autobody News Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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Trump’s EPA Rattles Self-Driving Car Industry by Picking ‘Winners and Losers,’ Critics Claim by Joe Williams, Washington Examiner
Critics are blasting a new Environmental Protection Agency rule that they claim breaks the Trump administration’s commitment not to arbitrarily pick winners and losers in the self-driving car market. Tucked into the EPA’s proposed Safer Affordable Fuel-Efficient, or SAFE, Vehicles rule released in August is language that would give companies credit toward emissions standards for producing cars that include vehicle-to-vehicle communication capabilities—technology that allows autonomous cars to exchange speed and position information with each other to prevent accidents. The EPA and the National Highway Traffic Safety Administration are suggesting that the credit, which might be granted without a requirement for corroborating evidence that the technology reduces carbon dioxide output, be tied to a car’s ability to transmit data using dedicated shortrange communications, or DSRC, which relies upon a specific wireless spectrum to blast out signals. Shortly before President Trump
was sworn into office, the Obama administration released a controversial draft rule mandating that DSRC be used in autonomous cars. The Trump administration reportedly shelved the proposal, and some manufacturers are starting to use cellular communication instead, which proponents argue is more reliable and has a longer range. Companies such as Audi and Ford have embraced the technology and demonstrated it in vehicles earlier this year. Toyota and General Motors, meanwhile, have adopted DSRC, though it’s unclear why that system was chosen by the EPA. Neither manufacturer responded to inquires about whether it had lobbied for the provision. GM, which offered dedicated short-range communications in some 2017 Cadillac sedans, pledged in July to expand it to other vehicles. Other manufacturers such as Tesla and Mercedes-Benz raised concerns over the technology’s security vulnerabilities, however, and critics of the EPA proposal say the Department of Transportation, which encompasses the traffic safety administration and has repeatedly stressed that it would
take a technology-neutral approach to regulating self-driving vehicles, is reneging on its commitment. “If they were to go forward with this, this would violate the [agency’s] pledge to technology neutrality,” Marc Scribner, senior fellow at the Competitive Enterprise Institute, told the Washington Examiner. “What they are doing is picking technology winners and losers.” That might be happening at the expense of better, safer options. “It creates, inadvertently, technological lock-in,” Ryan Hagemann, senior director for policy at the Niskanen Center, said in an interview. “You are more likely to simply rest on your laurels and default to what the standard is rather than trying to improve on top of it.” Scribner said the provision could also spur other companies to “lobby to try to gain similar favors in the future for their particular technologies” and anger environmentalists who were already critical of the data EPA used to justify credits. “It could wind up putting a big target on the entire program’s back,” he said. The EPA directed inquiries to
Autonomous Vehicles May Hit U.S. Roads Under Pilot Project by Mario L. Major, Interesting Engineering
The U.S. DOT and NHTSA, two key agencies involved in the automotive industry, are both making efforts to be more inclusive of the emerging autonomous car industry.
Credit: Pexels
Autonomous cars, self-driving cars, unmanned cars, driverless cars ... Whatever we choose to name them, they are entering our lives in unprecedented numbers, with almost every major car company in the world dramatically stepping up efforts to enter the market or laying out concrete plans to do so via the ever-effective concept car unveilings. Although it is clear that the industry is on board with developing 4
autonomous vehicle technology, it is equally important to have healthy engagement and support from local governments. For this reason, the recent announcement of an autonomous vehicle pilot program being considered by the Trump Administration is drawing attention. According to the National Highway Traffic Safety Administration (NHTSA), the powerful agency that serves as the final authority on deciding which vehicles get to hit the roads in the United States, it is behind the initiative. In the report on the program, which calls for collaborative research with the U.S. Department of Transportation (U.S. DOT), the agency indicated the program was developed to understand “how best to foster the safe development and implementation of ADS vehicle technologies on our nation’s roadways.” This move also coincides with the announcement of a new set of vehicle safety ratings. The NHTSA already has in place a clear set of the six levels of driver assistance tech-
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
nology advancements, which is another endorsement of the technology, but this new program would play a big role in helping reduce some of the technical obstacles (lack of pedals or steering wheels), which seem to place heavier restrictions on automated car use. Agency Support Is Shifting in the U.S. The support, though reserved, of the NHTSA represents a strong official endorsement of the growing influence of autonomous vehicles and more importantly, offers the symbolic meaning of government and industry coming together around this vital technology. It also helps to quiet the critics, lobbyists and various members of government who voice opposition to the vehicles based on concerns about safety. Another positive development is a U.S. DOT-supported effort to simplify the legal frameworks surrounding autonomous vehicles. The U.S. DOT provided an 80-page document titled “Preparing for the Future of Transportation: Automated Vehicles 3.0.” “The safe integration of automated vehicle technology into our transportation system will increase
the Department of Transportation, which referred inquiries to the traffic safety administration. That organization said it would carefully consider all comments before enacting a final rule. The Alliance of Automobile Manufacturers, which counts GM and Toyota as members, also supported DSRC. Executives at the group met with officials from the transportation department, the EPA and the Office of Management and Budget in June to discuss the SAFE Vehicles rule. A spokesman for the group was unaware whether the provision was discussed. “If those types of credits were brought up, they would have played a very minor role in the discussion,” he said in an emailed response to inquiries. While self-driving technology is an unconventional means of reducing toxic emissions from vehicles, it is effective, he added. “The agencies should incentivize the adoption of these technologies and provide for possibly additional credit,” he said. We thank Washington Examiner for reprint permission.
productivity, facilitate freight movement and create new types of jobs,” said Secretary Elaine L. Chao. The goal of the program is to (1) provide a framework for communication between industry and the U.S. DOT, (2) identify in greater clarity any existing policy issues and (3) create a blueprint of multi-modal safety that incorporates autonomous vehicles. The agency also makes clear its commitment to overhauling the language it uses in order to create standards that take into account the new technological reality of autonomous vehicles: “U.S. DOT will modernize or eliminate outdated regulations that unnecessarily impede the development of automated vehicles or that do not address critical safety needs. Whenever possible, the department will support the development of voluntary, consensus-based technical standards and approaches that are flexible and adaptable over time.” We thank Interesting Engineering for reprint permission.
www.autobodynews.com
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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Tri-Lakes Collision’s Commitment to Community Grows With Expansion in CO by Breeanna Jent, The Tribune
Tri-Lakes Collision in Monument, CO, has served the community for years, and it’s only continuing to grow. When owner Bill Ellison moved the business from Black Forest to the Tri-Lakes in 2010, it started in a small, leased 1,200-square-foot space in Palmer Lake that he and his wife, Stephanie Ellison, expanded to 7,000 square feet. On Oct. 6, the shop cele-
Tri-Lakes Collision is now open at its new location at 2101 Wolf Ct. in Monument, CO. Credit: Courtesy photo
brated its grand opening in splendid style, debuting a new facility in Monument that is already larger than the first. “Right now, the facility is about 10,000 square feet,” Stephanie told
The Tribune. Construction on the second half began in October and is expected to be completed next spring. “When it’s completed, we will have about 20,000 square feet. It can’t come soon enough, because we are bursting at the seams,” she said. Opening the new space was a feat, as the Ellisons worked for six years to build it, she said. For years they navigated the building process, which included finding a suitable property, designing and constructing the facility and ensuring it complied with regional building codes and standards. After so long, the Ellisons’ work was celebrated during a grand opening celebration that featured food, vendors, exhibits, prizes, staff meet-and-greets and tours of the new shop at 2101 Wolf Ct. in Monument. While construction continues on the second half, the auto body shop will continue servicing its customers, new and current, with the same level of expertise and care it always has, Ellison said. The shop provides collision repair and hail damage repair through
LA Auto Body Shop Warns of Blindly Trusting Car Repairs by Connor Ingalls, MyArkLaMiss
Andrew Randall has seen plenty of cars come through Parker Auto Body in West Monroe, LA. He knows what can happen when customers blindly trust a repair. “The issue is the customer, out of good faith, got the car repaired at a dealership and where the insurance company has one of their select service crew,” Randall said. “So they assume the repair’s done correctly. It was done incorrectly. It was basically like a chop shop.” The car in reference is a GMC Yukon, sent to a separate shop by the owner’s insurance company for a bumper repair. But when they took it to Parker for a post-repair inspection, they got the news no car owner wants to hear. “You’ve got a lift gate that’s going to need to be replaced [and] a bumper that’s going to have to be replaced,” said Randall. “[There are] a whole list of issues that either weren’t repaired correctly or still need to be fixed.” And it doesn’t stop there. “The reverse system’s not working correctly,” Randall said. “The 6
rearview camera’s not working correctly. So they took it in good faith to where the insurance company told them to go. It was the dealership, so they assumed it would be done correctly, and it was spit out looking like this.” The biggest issue with these kinds of faulty repairs is that Randall says they could then cause an accident themselves. “There’s a blind spot monitoring system on the vehicle that’s not working correctly because it’s been zip-tied,” he said. “So now you’re assuming the car, what you’ve been used to, is telling you, alerting you when something’s to your left or right when you’re trying to get over. That could cause that to give you the wrong information—misinform you—and then you end up having another collision because of it.” Randall said the biggest thing you can do when you need a repair is your own research. “Vet the shop that you’re going to use,” he said. “Ask how they’re going to repair your vehicle. Get involved in the repair process.” We thank MyArkLaMiss for reprint permission.
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
traditional and paintless dent removal. Other services include detailing and restorations, and Bill personally supervises operations, according to the shop’s website. The shop is affiliated with every major industry association, its website says, and also does repairs and modifications on Lewis-Palmer School District 38 school buses, along with local fire and police department vehicles.
School. The family makes direct contributions to local school programs, and Tri-Lakes Collision is an active member of the Tri-Lakes Chamber of Commerce and the Pikes Peak Region Better Business Bureau. It’s this commitment to their community that has served them well, Ellison believes. “I grew up in a smaller town, and when you’re in a small town you have to be a part of your community. Peo-
“We do what we can and as much as we can for the people in this community,” Ellison said. Tri-Lakes Collision’s level of commitment and care to its customers and the Tri-Lakes area has resulted in its booming business, she said. “We are definitely expanding more and more, and we have been an active part of this community for a long time,” Ellison said. Bill sponsors and volunteers in the community. Both of their children are graduates of Palmer Ridge High
ple like to shop locally. They like to get their services locally. We try to do the same,” Ellison said. The shop is open Monday through Friday from 8 a.m. to 5:30 p.m. and Saturday from 9 a.m. to noon.
“We do what we can and as much as we can for the people in this community,” — Bill Ellison
For more information, visit Tri-Lakes Collision online at trilakescollision .com. To schedule an appointment, call 495-4508. We thank The Tribune for reprint permission.
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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ASA-CO Members Learn to Manage Shop Workflow by Chasidy Rae Sisk
On Oct. 18 and 19, ASA-CO hosted an educational seminar on “Managing Shop Workflow,” taught by Greg Marchand. As part of its 2017/2018 Professional Business Series, the workshop was held at Advance Auto Parts (CARQUEST) in Denver, CO, and included dinner. Twenty attendees participated in the evening. According to ASA-CO board member Darrin Barney, “It was great! Greg Marchand is an excellent instructor.” Marchand’s seminar focused on how workflow is critical to increased productivity, which leads to customer satisfaction. He shared ways to improve efficiency and identify inefficiencies in the shop. Barney recalled, “It went well, and lots of good information about how to improve shop efficiency was provided, such as making sure that your techs and team have all the tools needed to perform their work efficiently. It is a constant ‘work in process’ to ensure that your business is producing at its best. Look at current procedures, create new ones or im-
prove existing ones, including phones, parking, communication with vendors, customers, technicians, cleanliness of areas, customer shuttles, etc.”
ASA-CO’s training on “Managing Shop Workflow” attracted 20 attendees who wanted to learn about ways to improve efficiency in their shops
ASA-CO hosted this event to help shop owners and managers increase productivity in their facilities. The association believe these types of meetings are beneficial because they “help shop owners and managers improve their businesses and their lives,” Barney shared. “Continuing education is critical for our growth, both as businesses and individuals. ASA is great at helping you to succeed!” Barney said. For more information about ASA-CO, visit asacolorado.org.
Hodges Collision Center Names Chris Ryland as Tomball Pkwy Location Manager in TX
Steve Guinn, president/CEO of they can be,’ and that is the enthuHodges Collision Center, an- siasm we look for in our managenounced that Chris Ryland was ment team. Our positive customer named location manager of the experiences grow out of our confiHWY 249/1960 West shop in Hous- dent leadership. We are looking forward to working with ton, TX. Chris and his positive apRyland brings a great proach and experience.” deal of experience to Growing up in the Hodges Collision and has Houston area, Ryland now been in the auto body collives in Waller County with lision business for more his wife. He loves spendthan 20 years. He is also ing time with his chilan I-CAR instructor and dren: a daughter at Sam chairs the Houston I-CAR Chris Ryland Houston and a son at committee. Previously an EMT, he joined Hodges Collision Blinn. And his face lights up when he mentions being a grandpa! He is Center in December 2017. “We are pleased to have Chris definitely a family man and readily guiding our Hodges Collision Cen- admits that he works for them. He ter in Tomball,” noted Guinn. “He is also an avid hunter, competitive always says that he ‘is here to em- shooter and enjoys grilling and barpower [his] team to be the best that bequing.
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DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
AMM Collision Earns Austin, TX, 2018 Top Workplaces Award AMM Collision recently announced it received a 2018 Top Workplaces award from the Austin AmericanStatesman. The list of recipients is based solely on employee feedback gathered through a third-party survey administered by research partner Energage, LLC. The anonymous survey measures several aspects of workplace culture, including alignment, execution and connection, just to name a few. Employees at all four AMM locations in Austin, TX, (11740 Manchaca Rd., 1812 Rutland Rd., 10505 Burnet Rd., and 5316 Ed Bluestein Blvd.) participated in the anonymous survey. “We focus on providing a great work environment for our team, and we are proud to know that our employees feel AMM is one of the best places to work in Austin,” said Scott Craig, president of AMM Collision. “Our goal is to hire the best employees in the collision repair industry, and we believe our team is the best.” “Top Workplaces is more than just recognition,” said Doug Claffey, CEO of Energage. “Our re-
search shows organizations that earn the award attract better talent, experience lower turnover and are better equipped to deliver bottom line results. Their leaders prioritize and carefully craft a healthy workplace culture that supports employee engagement.” AMM began in 1991 and now has 12 locations across Central Texas with approximately 230 employees. In May 2018, AMM Collision joined the ProCare Collision family. Auto technicians at AMM receive training that meets the highest industry standards in automotive repair. AMM offers collision repair, auto paint services and paintless dent repair. “Becoming a Top Workplace isn’t something organizations can buy,” Claffey said. “It’s an achievement that organizations have worked for and a distinction that gives them a competitive advantage. It’s a big deal.” For more information about AMM’s services, please visit https://amm collision.com/.
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Price-Fixing Claims
action. The body shops in the MDL are in Kentucky, Missouri, New Jersey and Virginia. Although there are certain variations in the individual complaints, in general they allege the insurers have all agreed to follow a market rate established by State Farm, which is accused of using a method of ranking body shops by criteria, including number of employees, number of work bays and area density, which it then “manipulates” as it solicits businesses to be part of its direct repair program. If a body shop in the program tries to charge rates higher than those demanded by State Farm, they are met with an “ongoing pattern of coercion and implied threats” to enforce compliance, according to court filings. Shops not complying are dropped from the program, and customers are “steered” away by the insurer. In 2016, the five complaints at issue were dismissed for failure to state a claim, but a split panel re-
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versed that ruling last year. The majority opinion was written by Judge Charles Wilson with the concurrence of Washington Western District Judge Barbara Rothstein, sitting by designation. Judge R. Lanier Anderson dissented. According to Wilson’s opinion, the complaints claimed that State Farm and the other defendants used unverified and manipulated market rates to depress costs. “They use tactics such as requiring a body shop to repair a faulty part rather than installing a replacement part, even when the shop strongly recommends against continued use of the faulty part; requiring a shop to install a used or recycled part, even when a new part is available and would be best; and requiring a shop to offer discounts and concessions, even if doing so will force the shop to operate at a loss,” Wilson wrote. The opinion noted that claims of horizontal price fixing based on inferred agreements rather than evidence of such deals must be bolstered by other evidence, or “plus factors.” Among those cited by the plaintiffs were routine notices from the other
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
insurers that they would not pay any more for repair work than State Farm paid. Anderson said in a dissent that he agreed the described behavior might be “objectionable,” but that didn’t make it illegal. “With regard to the antitrust claims,” he wrote, “binding case law indicates to me that the allegations of these complaints do not give rise to the necessary reasonable inference of agreement or conspiracy and, therefore, fail to state a claim.” On Oct. 23, attorney Mark Shurtleff represented the lead plaintiff, Quality Auto Painting Center of Roselle Inc., along with colleague John Eaves of John Arthur Eaves Law Offices in Jackson, MS. Shurtleff began by arguing that the complaining body shops were acting in the best interest of their customers, while “the others’ loyalties lie with the insurance companies.” Several judges were skeptical, with Chief Judge Ed Carnes asking how the insurance companies’ behavior in matching each others’ rates was any different from other businesses.
“It happens in about every case,” said Carnes. “One raises it, they all raise it.” Shurtleff pointed to the “uniformity of prices” demanded by the insurers, noting that uncooperative body shops were targeted for criticism and boycotted. Judge Stanley Marcus wondered whether commonplace business activity, such as an insurer recommending one shop and disclaiming another, was enough to “nudge your case across the line” into illegal price fixing. Under questioning, Shurtleff agreed that the insurers did not necessarily prohibit their policyholders from utilizing a particular shop and that simply showing that the prices demanded by State Farm and then demanded by other carriers did not necessarily prove collusion in itself. The insurers were represented by three lawyers: Alston & Bird partner Michael Kenney for State Farm, Dentons partner Rick Fenton for Allstate, and Daniel Goldfine of Lewis Roca Rothgerber Christie for GEICO. The defense lawyers argued See Price-Fixing Claims, Page 20
CO Hail Repair Shop Rips Off Customer, Service King Finishes the Job by Eric Ross, KOAA News 5
Back in July, KOAA News 5 Investigates exposed a pop-up hail repair company accused of forging a customer’s signature to steal thousands of dollars from his insurance company in Colorado. News 5’s report caught the attention of Service King Collision Repair. The company decided to step up to the plate and fix the customer’s car for free. It’s a classic example to show there are good people committed to making things right when others do wrong. A three-month long problem for Vernon Jones has finally come to an end. “Service King put a brand-new top on my truck, a brand new hood, knocked out all the dents on the side and fenders and painted it,” Jones said. Jones’ nightmare began when he took his red Dodge pickup truck to AAG Auto Hail Repair on South Academy. Employees there never finished the work they promised and instead cashed Jones’ unsigned insurance check that they had collected up front.
“That is not my signature,” Jones told News 5. “I know how to spell my own name.” Two certified forensic document examiners told us the signature on
the check appears to be a forgery based on the stroke pattern and fact that Jones’ name was spelled wrong. Vernon’s known signatures are on the right. The alleged forgery is on the left. When News 5 showed up to AAG’s location to ask questions, employees were not eager to talk. One employee decided to wrap himself in a tarp to hide, while another employee grabbed News 5’s camera. “They ran from the camera,” Jones said. “They didn’t want to an-
swer your questions.” Hector Pinedo, the owner of AAG Hail Repair, couldn’t explain who signed Vernon’s name when News 5 confronted him. “You never want to go to the fly-by-night places,” said Rory Crosby with Service King Collision Repair. “He was taken advantage of when they cashed the check, and the story really bugged us.” Crosby and other workers saw News 5’s story and decided to fix Vernon’s truck— no questions asked. “He’s a veteran, and it [was] the right thing to do when we saw the story,” Crosby said. “We wanted to do a good deed. We actually evaluated the roof of the truck, and it was pretty heavily damaged. We ended up replacing the whole entire roof and the hood. It was probably about a $12,000 repair.” Jones said he won’t be visiting any pop-up repair tents in the near future. He also encourages people to make sure the repair center they go to is approved by their insurance carrier before forking over money. “I was really satisfied with the
job that was done to my truck by Service King,” Jones said. “ I want to give thanks to KOAA Channel 5 News because without you, this wouldn’t have ever happened.” Of course the folks at Service King are the real people to thank! Initially, Colorado Springs police would not take a case report for the alleged fraud and forgery involving AAG Auto Hail Repair, but News 5 started asking questions, and police opened a criminal investigation. Although no arrests have been made and there are no new updates, police maintain this case is part of an active, ongoing investigation. News 5 Investigates will be following up with police weekly for updates. We thank KOAA News 5 for reprint permission.
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Continued from Cover
Legislative Roundup
that CAA worked on this year, along with BAR activity. AB 2276 (Burke). Labor Rate Surveys. Oppose. The bill allows insurers to conduct “alternative labor rate surveys” but eliminates important standards set forth in Department of Insurance regulations that produce consistent, accurate and reliable labor rate survey results and instead allows insurers to skew the results in a manner that would suppress market rates. It died on the Senate floor, but is expected to be reintroduced next year. “This was the biggest bill of the year for CAA and the one we really worked hard to defeat,” Molodanof said. “The insurers were trying to create alternative labor rate surveys, but the way they drafted the bill, it would have led to a whole new set of problems. CAA stepped up and took an active role fighting this one, and that helped to defeat it. This was a reintroduction of a bill from last year, and we’re fairly confident that it will be coming back in one form or another next year, but we’ll be prepared if and when that happens.” AB 2825 (Jones-Sawyer). Debt Collectors. Oppose unless Amended. The bill treats auto repair shops, including body shops, as “debt collectors.” Customer communications would be regulated and would potentially subject shops to strict liability, fines and frivolous lawsuits. Status: The bill died in the Senate Appropriations Committee but is expected to be reintroduced next year. “This one is definitely going to come back next year in some form or another,” Molodanof said. “The bill was very complicated [and] farreaching with many unintended consequences. It would have treated the industry as debt collectors. Auto repair businesses are not debt collectors; they service and repair vehicles for their customers. It’s good that it was defeated because otherwise it would have turned the industry upside down.” AB 3141 (Low). BAR. Support. This bill would include currently exAUTOBODY
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empted maintenance service providers under BAR jurisdiction while maintaining oil changers’ business model. The bill also does not require a written estimate for preventative maintenance services as defined, if certain conditions are met. Status: Approved by governor.
“Any company that does even minor services now has to be registered with BAR, which is good for consumers and the automotive industry,” Molodanof said. “We supported this bill because it protects consumers by unifying the automotive maintenance and repair industry in the state under the jurisdiction of BAR while preserving access to cost-effective preventative maintenance services.” AB 2908 (Berman). Tire Regulatory Fee. Oppose. The bill gives CalRecycle the ability to create a new tire fee up to $1, on top of the current $1.75 per tire fee already charged. The bill was amended to allow a tire retailer to separately charge the new fee on the invoice. Status: Vetoed by governor but expected to be reintroduced next year. “CAA opposed the bill because CalRecycle has a surplus, so they don’t need the money,” Molodanof said. “We believe that recycling tires is a good thing and that the current $1.75 per tire is fair; there is no justification for giving CalRecycle the ability to add a new tire fee. CalRecycle should spend its existing money responsibly rather than impose a new tire fee on consumers.” AB 2392 (Santiago). Vehicles: Towing and Storage. Neutral. This bill requires all towing and storage fees to be reasonable and establishes criteria and presumption for reasonable towing and storage fees. Status: Approved by governor.
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“This bill was in reaction to the fact that some towing and storage facilities were gouging people,” Molodanof said. “We heard stories where people were illegally parked and their cars [were] towed, and when they went to get them out, it cost $2,000 more, which was ridiculous. We had some concerns with the bill and wanted some amendments made to it, so we were neutral on it, but it did pass.” SB 993 (Hertzberg). Sales Tax: Services. Oppose. This bill is intended to make major tax reforms, including expanding the sales tax to services. A series of hearings on the measure are being planned that will include experts to do a “deeper dive” into the issue of taxing services. Status: The bill is dead for the year but expected to be reintroduced next year. “This one comes back every year, and we continue to oppose it,” Molodanof said. “It died again, but it will be coming back and we will fight it again. If this passed, it would definitely hurt the collision repair industry. Cars that are now repairable would be tipped over into the total loss category and increase the cost of
fixing cars significantly. In California, we used to make things, but now we’re a service industry and they’re losing that tax base as a result. They want to recoup some of that money by taxing services like some other states do, but we fight it every year and will continue to do so.” Electronic Documents and Authorization Approved. The BAR. Support. Electronic estimate and invoice authorization regulations took effect on Sept. 13, 2018. The regulations allow for electronic estimates and authorizations, transmission and storage of repair transaction documents; reorganization of estimate, work order and invoice provisions to more closely align with automotive repair transactions; and clarification of language as necessary. “This is a good thing because now electronic signatures and other electronic communications such as text message from consumers are legal and binding and help streamline the repair process,” Molodanof said. “It’s a faster and more convenient way to get customer authorization, and that’s a big reason why CAA supported it.”
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East Valley, AZ, in Spotlight in Bold Driverless Vehicle Plan by Wayne Schutsky, Ahwatukee Foothills News
In his continued push to make Arizona a preeminent destination for autonomous vehicle companies and technology, Gov. Doug Ducey was in Scottsdale, AZ, in October to announce the establishment of the Institute for Automated Mobility. “This technology is here to stay, and our state, the state of Arizona, has chosen to embrace it,” Ducey said at the DesTechAZ technology conference on Oct. 11. The institute, also called IAM, is a partnership of state agencies, Arizona’s three state universities and private corporations that is designed to “shape the future of transportation science, safety and policy,” Ducey said. IAM’s founding partners include Intel, the state departments of Transportation and Public Safety, the Commerce Authority and the universities. This is the next step in Ducey’s long-term effort to make Arizona the self-driving car capital of the U.S. Arizona first allowed companies to begin testing their self-driving vehicles on Arizona roads in 2015. Since then, several major companies have located operations in the state, including Waymo, which has an operations center in Chandler. Chandler also has modified some zoning regulations for future development to accommodate driverless technology. Autonomous vehicle operations in Arizona are currently governed by regulations set forth by Ducey earlier this year. The governor also has signed legislation allowing 200-pound automated “personal delivery devices’’ to operate at up to seven miles per hour on sidewalks. Kirk Adams, the governor’s chief of staff, said it was not wrong to allow testing to occur here, even without answers to some of the questions his boss now wants the institute to resolve. He said it hasn’t been necessary until now to answer those questions. Take the issue of liability. A driverless vehicle that killed a pedestrian in Tempe was owned by Uber and had an Uber employee behind the wheel. “The line of liability is very clear in that case,’’ Adams said. 14
The situation is different, he said, if sometime in the future an Arizonan could go to a car lot and buy a fully autonomous vehicle. “It’s your vehicle; it’s titled in your name,’’ Adams said, but actually is being “driven’’ with technology created by the manufacturer and its suppliers. “Where does the liability go?’’ Then there are things like the design of streets and planning and zoning decisions.
which will be run by ADOT and Department of Public Safety and provide a place for collaboration with law enforcement and first responders. IAM also plans to build a 2.1mile test track that will include roadways, signage and traffic signals to test autonomous vehicles in various situations, including specific crash scenarios. Intel has also made an undisclosed financial investment in the institute. “We are looking to private sector members like Intel … who would like to join us in advancing science, policy and safety for automated vehicles and mobility,” Watson said. Though the institute is actively looking for private partners, autonomous vehicle operators will not be reArizona Governor Doug Ducey announces the new Institute quired to join the institute to for Automated Mobility at the DesTechAZ technology conference at the JW Marriott Scottsdale Camelback Inn. operate here, Watson said. Intel, which has its own autonomous vehicle research The goal of the institute arm, plays a big role in the new institute. Credit: Kimberly is to leverage the expertise Carrillo, Ahwatukee Foothills News Staff Photographer of its partners to influence “How do our roads need to be designed differently to accommodate more pull-outs for cars as people purchase subscription services for autonomous vehicles rather than own it themselves?’’ he asked. For example, Chandler City Council earlier this year modified regulations for parking stalls in new developments to accommodate the possibility that autonomous vehicle travel would require fewer spots. All of that is being done in anticipation of Level 5 automation, meaning absolutely no human interaction. That, in turn, goes to the testing procedures that the universities will set up with private companies, though the only private firm to sign up so far is Intel. The Arizona Commerce Authority has pledged $1.5 million towards the launch of the new institute. Those funds came from non-state dollars previously allocated to provide small businesses with loans that have now mostly been paid back, ACA President/CEO Sandra Watson said. Watson said that state transportation officials have secured dollars to fund the construction of IAM’s Traffic Incident Management Center,
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
future safety standards, policy, regulations and best practices for automated vehicles. Jack Weast, senior principal engineer at Intel and vice president of automated vehicle standards at Mobileye, said that testing autonomous vehicles is different from testing traditional cars. He said the institute will look to existing crash studies to understand what types of scenarios need to be tested to ensure they are safe. The results of these collaborations could affect laws and regulations governing self-driving cars in Arizona in the future. “The purpose of the Institute for Automated Mobility is to ensure that we are not only advancing science and safety protocols but also policy, so all of the work that is conducted through the institute will inform future policy decisions by the state of Arizona,” Watson said. The Commerce Authority will oversee the institute, though all founding members will sit on the board of directors and provide direction on research priorities.
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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IAM will contribute research and safety solutions to corporate and public partners to help develop best practices for the industry and influence new regulations and policy governing automated vehicles in Arizona and across the country.
goals and projects between corporate partners and researchers at universities. Intel, which already provides technology used by autonomous vehicle companies like Waymo, will provide IAM partners’ access to its
“We want to demonstrate that public safety will always remain at the very top of our priority list,” Ducey said. The universities will contribute research on various topics and provide access to a range of experts working in safety, public policy, law, business, engineering and transportation. “As you can imagine, this truly takes a village approach,” said Dr. Sethuraman “Panch” Panchanathan, who was named Ducey’s advisor for science and technology. In his role, Panchanathan, a vice president at Arizona State University, will help coordinate research
MobileEye Responsibility Sensitivity Safety Model as a building block for their own products. The MobileEye RSS uses mathematical formulas to create a model for safe decision-making by autonomous vehicles by defining unsafe situations, their causes and how to respond to them. What exactly the Institute for Automated Mobility will look like is anyone’s guess at this point. Beyond the test track and Traffic Incident Management Center, there are not concrete plans for what the institute will look like. Panchanathan said the institute will likely use a phased approach to
“This technology is here to stay, and our state, the state of Arizona, has chosen to embrace it,” — Doug Ducey
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DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
roll out facilities over time, and it could likely make use of existing research labs available at its partner universities. “It is going to be a multi-phased approach, and we are going to be listening to industry, and we are going to be looking at their needs, and we are going to continuously shape and build this,” Panchanathan said. Weast, the Intel executive, said it will take time to determine just what the testing facilities should look like. “The unique question here in this center is: What is the right type of test track or test facility that you need for the purposes of automated vehicle testing and safety verification?” he said. “We look forward to partnering with the state of Arizona on construction of a first-of-its-kind test facility that is focused on safety verification and not just trying to recreate a city in the middle of the desert.” Howard Fischer of Capitol Media Services contributed to this report. We thank Ahwatukee Foothills News for reprint permission.
Service King Opens Its 16th AZ Collision Repair Center
Service King Collision Repair Centers® recently announced the company has officially opened its 16th Arizona repair center. The new facility, located at 13820 W. Test Drive in Goodyear, AZ, continues Service King’s ongoing national growth strategy and strategic expansion. With more than 22,000 total square feet, the brand-new facility hosts approximately 17,000 square feet of production space. “We are proud to continue our steady growth across the state of Arizona as we expand our roster in Goodyear,” said Ryan Downs, Service King operations vice president. “We look forward to creating a bestin-class experience for our customers and insurance partners with the superior quality and service The Service King Promise is founded upon.” Service King, with more than 40 years of experience in the industry, now operates locations in 24 states across the U.S.
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Matrix Appoints Steve Lyon, VP of OEM Relations
Matrix Electronic Measuring, Inc. announced the appointment of Steve Lyon as Vice President of Original Equipment Manufacturer (OEM) Relations. Steve will
manage relationships with Matrix’s current network of equipment sales representatives and will seek new opportunities to extend the Matrix sales network. Prior to Matrix, Steve enjoyed a 37 year career with Snap-On Tools before his retirement in 2017. Though he held many positions in his time at Snap-On, most recently, Steve served as OEM Account Manager for American Honda for the past 11 years. Steve began his work with Matrix in November 2017 as a sales and marketing consultant. As a result of relationships made throughout his career, Steve was able to get Matrix’s flagship product, the Matrix Wand, certified by Snap-On Tools and by American Honda.
TX Auto Collision, Management Technology Program Receives National Grant
Texas State Technical College’s auto collision and management technology program will soon buy new equipment thanks to a recently awarded national grant. The program has received a $1,000 Ultimate Collision Education Makeover Grant from the Collision Repair Education Foundation. The announcement was made in late October at the 2018 SEMA Show in Las Vegas. The money will be available in January. High school and college auto collision programs undergo a rigorous application process to be considered for the grants. Clint Campbell, TSTC’s statewide auto collision and management technology chair, said it took two months to complete the application, which included information on the program’s budget and student job placement, as well as recommendations from industry representatives. “It’s a good deal for the program,” Campbell said. “It makes sure you are doing things correctly and for the right reasons.” Campbell said it is critical to the auto collision industry to not only teach students how to repair dents and paint, but also how to
use technology to reset collision avoidance systems being built for new vehicle models. Securing grants to purchase new equipment enables the program faculty to use money in areas where it is most needed. John McIntyre, 33, and Blake McIntyre, 28, both of San Angelo, are working toward auto collision refinishing certificates and are scheduled to graduate next summer. The brothers chose to attend TSTC to learn techniques to use for a restoration shop they want to open in their hometown after graduation. They want to purchase older models of trucks, rehabilitate them and sell them at automotive auctions. “Automotives are a passion,” John said. Blake said he had an extra source of motivation for pursuing the certificate: He had been dissatisfied with past automotive paint jobs. He said his favorite class so far has been Automotive Plastic and Sheet Molded Compound Repair. TSTC in Waco has about 90 students pursuing the program’s associate degrees and certificates. For more information on Texas State Technical College, go to tstc.edu.
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Appeal Dismissed
• Accused Progressive of not citing appellate case law before it rejected the appeal.
“By improperly restricting the scope of its own certiorari review, the circuit court did not engage in a meaningful analysis of the county court’s order and thus could not have concluded that there was no departure from the essential requirements of the law,” the panel said in court documents. We thank glassBYTEs.com for reprint permission.
Your leading source for SOUTHWESTERN Collision Repair News! southwestern.autobodynews.com
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Glasurit Best Paint Award Given at SEMA
A 1971 Ford Maverick owned by Jimmy Shaw and built by Greening Auto Company with Glasurit 55 Line finish, “Glasurit Go Fast Greening Gray,” developed through Color Ideation, was crowned the winner of the fourth annual BASF Glasurit Best Paint Award at the 2018 SEMA Show. Out of a field of more than 30
entries, the Maverick stood out for its immaculate detail, according to award judge and presenter Chip Foose. “The detail on the Maverick was magnificent,” said Foose. “The Greening team mastered an excellent fit and finish with sharp lines from the doors to the edges. It’s exciting to see builds top each other year after year through the Glasurit Best Paint competition. The care and precision taken on this project is apparent throughout the entire build.”
Study Shows Car Insurance Is Least Affordable in Louisiana by Staff, Auto Remarketing
The Insurance Research Council (IRC) might have uncovered another market challenge for buy-here, payhere operators who sell vehicles in Louisiana, which already ranks near the top for delinquencies.
According to a new study from the IRC, Louisiana ranks No. 1 on a list of least affordable states for auto insurance. Study orchestrators found that key cost drivers of the state’s high insurance rates include the frequency of auto accidents and resulting injury claims, as well as the prevalence of attorney involvement and litigation. IRC calculated that Louisiana’s affordability index (2.64 percent) was the highest in the U.S. from 2011 to 2015. The affordability
El Paso, TX, Gets Hit With Hail in the Borderland by Tatiana Favela, KTSM.com
Storms such as the ones that rolled through the Borderland in Texas on Oct. 30 could leave a lot of people surveying the damage left behind from the rain and hail. People could be facing damaged property, such as their vehicles, homes and outdoor property. State Farm Insurance Agent Cynthia Martinez told KTSM that it’s best for you to be careful when filing a claim for any damage and avoid paying up front for any repairs. “Any claim in any accident takes a toll on us emotionally; it’s our personal property. [Whether] it’s a brand-new car or maybe a house, you don’t want to see your personal property damaged, so just be very cautious of whom you’re using to fix your property,” Martinez said, “Get
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two or three options before you get your car or house fixed.” Martinez shared that most insurance companies have recommended auto body shops or companies that assist with fixing any damaged property. However, whether rain or shine, the message is still clear. “Drive extra safe whenever there’s weather happening. Not sunny El Paso weather; there’s always an accident. Whether it’s hail, rain or wind, be extra safe on the road, El Paso,” Martinez said. If you do notice your car or home is damaged, you can file your claim by going online, using an app or calling the 1-800 number your insurance has. We thank KTSM.com for reprint permission.
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index is the ratio of average expenditures on auto insurance to median household income. Also of note: The latest data from Experian Automotive showed Louisiana ranked second nationally for both 30-day and 60-day delinquency. Experian indicated that the 30-day delinquency rate in Louisiana during the second quarter was 3.28 percent. The 60-day rate stood at 1.08 percent. Turning back to the IRC study, the report again showed one factor behind the high cost of insurance in Louisiana is the frequency of auto accidents and resulting insurance claims. In 2017, Louisiana had the highest bodily injury (BI) liability claim frequency in the country (1.75 claims per 100 insured vehicles, almost double the countrywide rate of 0.9 claims per 100 insured vehicles). IRC went on to mention that another important factor is the propensity of Louisiana claimants to hire attorneys and file lawsuits. Among 2017 BI claims, 54 percent of Louisiana claimants hired attorneys, compared with 48 percent of claimants in other states. Moreover, Louisiana claimants
were 60 percent more likely to file lawsuits (16 percent compared with 10 percent countrywide). “The affordability of auto insurance is an important issue in Louisiana and many other states,” said Elizabeth Sprinkel, senior vice president of the IRC. “As policymakers seek to address this issue, it is vital to have an understanding of the cost drivers that underlie variations in the cost of auto insurance for consumers.” The report, “Auto Insurance Affordability: Cost Drivers in Louisiana,” combines information from IRC closed-claim research and other sources and is part of IRC’s ongoing research into the factors driving the affordability of auto insurance. We thank Auto Remarketing for reprint permission.
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Southwest Associations with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
ASA-CO Members Learn To Implement, Maintain Their Sales Machines From Oct. 2–4, ASA-CO hosted a three-day educational seminar, “Implement and Maintain Your Sales Machine,” designed for service advisors at the Kenz & Leslie BG Training Center in Wheat Ridge, CO. Although the seminar was intended for service advisors, this first
Jason Servidio with the Transformers Institute
session was only offered to shop owners to expose them to the material ahead of time and familiarize them with the approach. The seminar was taught by Jason Servidio, vice president of the Transformers Institute, who felt that the seminar went very well. He noted, “This was a sales class that opened shop owners’ eyes to what they could expect from a top advisor and how training sales and customer service techniques, not just technical knowledge, could increase Continued from Page 10
Price-Fixing Claims
there was no direct evidence showing the insurers’ alleged action constituted price-fixing and urged the judges to hew closely to the U.S. Supreme Court’s 2007 decision in Bell Atl. Corp. v. Twombly. That decision toughened the standards for bringing price-fixing claims and established that a simple
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profitability. It also showed them how to manage the conversation the advisors are having with customers, not just the advisors’ numbers. “The purpose was to show shop owners that they need to have an actual sales system in place designed to increase the odds of making a sale and assist their service advisors as well as to give shop owners the ability to offer solutions to their advisors after hearing bad phone calls or sales presentations. Many shop owners are not sales people at heart. They know when they hear something they don’t like from the advisors, but since they don’t always know a better way, they say nothing. This class gave them that better way and something specific they could instruct their advisors in.” Although Servidio noticed some skepticism when his class first began, the attitude changed as the class continued and attendees became interested, engaged and involved. In fact, the response was so positive that several attendees have already enrolled their service advisors in the full sales class offered by the Transformers Institute. One such attendee was Chris Shamis, co-owner of Dakota Ridge
showing of “parallel conduct” was, without evidence of an an actual agreement, insufficient to support such claims. “There is no way here to show that what is alleged is anti-competitive activity,” Kenney said. Copyright 2018. ALM Media Properties, LLC. All rights reserved. Republished with permission from the Daily Report.
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Auto, who plans to send two of his service advisors to Servidio’s class in the future. He shared, “I have two talented service advisors who work well with our customers, but I walked away from the class knowing two things: I have two guys who are good at what they do, and I have two guys who would appreciate learning a new perspective for giving customers what they want. It was a great class, and I think my guys can really learn a lot from Jason. Having a class for shop owners only was also a good idea since it allowed us to get familiar with the material and approach before our employees learn those things so we can hold them accountable. “This type of training is beneficial because it helps shops improve our interaction with customers, which improves the industry overall.
As the quality of shops improves, that improves the image of the industry as a whole. A lot of good comes out of these meetings, and I’m trying to encourage people who weren’t there to attend the next one.” Servidio feels that associationsponsored events are important “because they raise all shops. This topic actually came up at this event. We talked about how if all shops around our own were highly trained and used best practices, it would actually help us, not hurt us. They also remind people that they are not alone in this challenging business, and meeting other owners and service advisors prove that we are not enemies.” Servidio will be teaching another class for ASA-CO’s Denver chapter in a few months. For more information about ASA-CO and its events, visit asacolorado.org.
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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Elon Musk Pledges to Improve Tesla’s Service Location Coverage Within 3−6 Months by Simon Alvarez, Teslarati
In a recent announcement on Twitter, Elon Musk pledged to “fix” the existing gaps in the coverage of Tesla’s service locations. According to the CEO, Tesla will aim to expand the reach of its service centers to areas beyond big North American cities within the next 3–6 months. Musk also issued the same pledge to all countries in which Tesla will be operating by the end of next year.
Musk’s announcement on Twitter comes at a time when Tesla seems to be at the brink of reaching even more impressive milestones in vehicle
22
delivery and production. In 2019, for one, Tesla aims to produce 10,000 Model 3s per week, resulting in a yearly output of more than 500,000 vehicles. Such a fleet requires a strong network of service centers in all areas where Teslas are being sold. Tesla’s service centers are admittedly one of the company’s biggest points of improvement. Over the years, Tesla’s vehicles have developed the notorious reputation for being incredibly difficult to repair. Anecdotes from Tesla owners from the initial days of the Model S alone indicate that getting vehicles serviced, particularly for repairs, could become a taxing experience, partly due to the lack of spare parts and the number of certified body shops that can actually service the electric cars. Musk has since pledged to address this issue. In the 2018 Annual Shareholder Meeting, Musk discussed the expansion of Tesla Service Centers and authorized body shops. Addressing the company’s shareholders, Musk noted that year-over-year, Tesla
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
expects to see a doubling of service center capacity for Tesla. “We’re rapidly expanding service centers. Year over year, probably see a doubling of service center capacity for Tesla. We’re making major progress on the body-shop front.
This is quite a big deal. We’re creating Tesla body shop repair locations. We should have by the end of the month in at least the Top 10 metro areas in the US being able to be serviced by a Tesla body shop. This will be a dramatic improvement in the cost and time of body repair,” Musk said. Musk also teased the idea of launching in-house body repair shops to address damages from minor accidents quickly. Tesla launched the first set of in-house repair shops earlier this year, and so far, they seem to be working well. A Model 3 that was damaged from an accident in a parking lot, for one, was fully restored by an in-house body shop in just 25 hours. With that said, Tesla’s service network still has a long way to go,
particularly in foreign regions. Last July, reports emerged that Tesla owners from Norway were getting aggravated by the company’s slow service. Responding to the reports on Twitter, Musk admitted that “Norwegians are right to be upset with Tesla” considering that the electric car maker is having trouble expanding its service facilities in the region. As the impending global rollout of the Model 3 approaches, Tesla seems to be preparing itself for a massive influx of vehicles abroad. In Tilburg, Netherlands, for example, the company recently acquired an expansive facility located close to its assembly plant and delivery center. The facility, which spans 387,500 square feet (36,000 square meters), is speculated to serve as a hub where parts for vehicles are stored and distributed to surrounding regions. Considering that a shortage of parts is among the problems that plague owners, the Tilburg hub would likely play a vital role in ensuring that Tesla’s service networks are fully equipped and ready to address owners’ concerns in a timely manner. We thank Teslarati for reprint permission.
Auto Dealers Push Back on Proposed Lubbock, TX, Zoning Change by Matt Dotray, Lubbock Avalanche-Journal
The Lubbock, TX, City Council ended up punting on a proposed zoning amendment aimed mostly at businesses having to do with vehicle sales and vehicle repair shops. After nearly 15 people spoke out against the zoning amendment over the course of several hours, the council voted unanimously to table the item until January. Opposition came from car dealership owners, commercial real estate agents, owners of billboard companies and land owners. Their argument was that the amendment would stifle business and it wasn’t properly discussed or vetted before the vote. Mayor Pro Tem Jeff Griffith agreed with some of the arguments, saying after the meeting he couldn’t vote on the amendment in its current form. Councilman Steve Massengale, standing next to Griffith, agreed. “We’ll need to change the recommendation,” Griffith said. “It would have been rushed if we took it up.” The proposed zoning amend-
nesses that can go in C-4 districts— businesses such as automobile body shops, automobile sale shops, used car lots, bars, game rooms and dance halls. Currently these businesses are allowed “by right” in commercial districts. Billboards are also allowed in these districts. According to city staff, which recommended this change, these businesses are typically viewed as having a negative impact on the surrounding areas. These businesses either produce noise, heavy traffic or another effect on nearby residents, wrote the city. The Lubbock City Council met Nov. 1. Credit: Matt Dotray, The amendment up for Lubbock Avalanche-Journal a vote continues to allow cial districts, and C-4 zoning is scat- bars or lounges, dance halls and game rooms in C-4 districts, but as a tered across the city. C-4 zoning is most prevalent specific use, meaning they will need along Avenue Q between 34th Street approval from the city. The amendand I-27, West 19th Street past the ment would have not allowed busiloop, and East 19th Street and nesses such as car lots, auto garages, Broadway between the interstate and trailer rentals and RV services to opthe loop. There’s also some C-4 zon- erate in C-4 zones—only in interstate ing along South Loop 289 and some highway commercial, interstate highway industrial and manufacturing disthoroughfares. The zoning amendment would trict zones. “By pushing these commercial have placed limitations on busiment was aimed at C-4 zoning districts, which are commercial districts designed for heavy retail and wholesale commercial use. There are other commercial districts, like local retail districts and neighborhood commer-
businesses into (manufacturing zones), you’re almost pushing them out of business,” said one business owner. “They will not have the commercial traffic flow necessary to sustain their business. With that, the city will lose out, and the people of Lubbock will lose out.” Existing businesses would be grandfathered in if this amendment were to pass. The land would continue to be grandfathered unless it were to sit vacant for at least a year. Griffith, though, agreed the C-4 zoning code needs to be cleaned. He said there are too many acceptable uses for the zoning to be effective and protect nearby homeowners. The council and city staff said they will meet with stakeholders before the amendment comes back to the council in January. The item was tabled without much discussion from the council. We thank Lubbock AvalancheJournal for reprint permission.
www.autobodynews.com
UPDATED DAILY
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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Continued from Cover
OEM Summit
enough to cover the [Subaru] unitsin-operation in this country, so we will have to depend quite heavily on independent collision centers.” She said the requirements for the program—including KPIs that Subaru will be monitoring—are “relatively stringent” but do not include being sponsored by a dealership. “That was a very intentional decision,” she said. “As long as there are enough units-in-operation to go around, to make it worth being a certified collision center, we want any-
Mark Zoba of Nissan North America said that about 1,900 shops are in or have applied for the automaker’s certified collision shop program, but Nissan needs only about 1,650 shops in the program
one qualified who wants to raise their hand to be able to join. We want the best people on this initiative.” She said Subaru is working to ensure its “Starlink” vehicle telematics system will be integrated with the certified shop program to “make sure our customers feel the ‘Subaru love’ when they’ve been in a crash [and] have the help and guidance they need to get their car fixed to the way it was when they bought it.” Dealership shops, she said, will not be given priority over independents in the program when customers are told about certified shops. “There’s nothing in any kind of contract that says that dealers get first dibs,” Riedel said. “We’re doing it by proximity. And in the event that you [and the dealer are] both exactly 4.125 miles from [the customer], we’ll have to figure out what that secondary plan is to break that tie. But I imagine that will be more about your KPIs rather than whether you’re a Subaru retailer or not.” To request information on the program, send an email to info@ 24
subarucertifiedcollision.com. Nissan May Cull Number of Shops in Program Mark Zoba of Nissan North America said his company’s certified collision network has grown from fewer than 500 shops in 2014 to more than 1,500 today, with about 400 more applications in process. But, he said, 1,900 shops is more than the program likely needs or will maintain. “I don’t have a specific number, but what I need for full network buildout, to make sure there’s a light in every market, is about 1,650 shops,” Zoba said. “So I’ll be culling the herd a little bit, I think over time ending up at about that 1,650 number.” What will determine which shops are added or remain on the program? Zoba said the automaker is developing scorecards to “hold shops more and more accountable” on such metrics as documented research and use of Nissan repair procedures, OEM parts usage, cycle time and CSI. “The shops that are performing, obviously we want to keep in the network,” Zoba said. “If they’re not performing, we’re probably going to ask them to step aside.” He said the automaker is working to bring more value to the program for certified shops as well, including a refined shop locator and more Nissan-specific training. Zoba said Nissan worked with trainer Mike Anderson to develop a multiday “Collision Estimating Essentials” required course—launching this month—that covers researching Nissan procedures, technical aspects of Nissan vehicles that affect estimating, identifying single-use parts, etc. Also, as of January, any Nissan paint warranty claim must be handled by a certified collision center, even if that means a non-certified Nissan dealership shop has to send the work to a certified independent shop. Volvo To Require All OEM Parts Ken Park, manager of Volvo’s certified collision program, said that one important change in the program next year involves parts. “Currently, we require 95 percent OEM parts on all repairs. In 2019, we will require 100 percent,” Park said, drawing applause from attendees at the summit. “We do not allow any aftermarket or LKQ utilization, or re-
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
conditioned parts, on our vehicles.” He said that even though salvage parts may often be “OEM,” Volvo can’t know the history or condition of the part and so can’t stand behind its use.
to expand the network to as many as 350. The goal, he said, is to have a certified shop within 10 miles of its customers, although its roadside assistance program will tow a vehicle up to 50 miles after an accident. Unlike the Subaru program, Volvo does require independent shops to be sponsored by a Volvo dealer to join the program. He said the program includes audits of participating shops. That can include pulling 10 to 20 random repair files, for example, to check to see if Volvo repair procedures were researched Ken Park (left) of Volvo and Ben Cid of Mercedes-Benz responded to questions about their companies’ certified and documented within the shop programs at the Society of Collision Repair file. Specialists’ OEM Collision Repair Technology Summit “When we look at the in Las Vegas during SEMA data on how many [shops in Park said the automaker’s re- the industry] are actually researching search has found that 85 percent of the repair procedures, it’s pretty disVolvo drivers search online for a cer- mal,” Park said. “But as shops retified facility online after an accident. search the procedures more and “That’s a huge opportunity for more, they find they get very proficient at it. Right now, I think it’s more our facilities,” he said. There are currently just over of a hurdle just because they’re not 200 Volvo-certified shops across the regularly doing it. As shops spend the United States, but Park said he hopes See OEM Summit, Page 29
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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The Big Show Rolls On—Shots and Scenes from SEMA 2018
Don Carlton ACURA OF TULSA
918-627-6457 Fax
888-550-7278
Member of the Tulsa Parts Connection
26
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
Don Carlton
HONDA OF TULSA
918-392-9665 Fax
800-722-2379
Member of the Tulsa Parts Connection
Excellent service Competitive pricing
Knowledgeable staff First class service
4905 S. Memorial Dr. Tulsa, OK 74145
4141 S Memorial Dr. Tulsa, OK 74145
Parts Hours: Mon-Sat. 7:00am - 6pm
Parts Hours: Mon-Sat. 7:00am - 6pm
Parts Manager: Diane Finch acuraparts@doncarlton.com
Parts Manager: Nick Young hondaparts@doncarlton.com
www.doncarltonacura.com
www.doncarltonhonda.com
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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CARSTAR Weighs in on the Hefty Costs of Hazardous Deer Many deer find their way onto highways and into suburban neighborhoods during the autumn season. Both parties lose when car and deer collide, but a measure of defensive driving can reduce the risks. According to the Insurance Information Institute, during deer season, which generally runs from October through December, there is a dramatic increase in the movement
of the deer population. CARSTAR says that while the frequency of deer-related accidents is decreasing, the severity of these accidents is increasing because modern vehicles are filled with advanced technologies that need repairing. One out of 167 drivers will have a claim from a deer, elk, moose or caribou collision in 2018, according to State Farm, which is an improvement from the 2017 odds of 1 in 162. Those odds more than double during October, November and December, and there is an increased risk around dawn and dusk. State Farm estimates that
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animal collisions dropped slightly to 1.33 million between July 1, 2017 and June 30, 2018, compared with 1.34 million for the same period the previous year. “Deer-related accidents remain a tremendous risk, particularly in southern, midwestern and rural areas,” said Dean Fisher, chief operating officer for CARSTAR. “Deer-related accidents can be costly—nearly 70 percent of CARSTAR franchise partners estimate that the average cost of a deer-related collision repair is between $2,500 and $4,999, while many repairs are between $5,000 and $10,000. Most deer-related accidents involve front-end damage that can elevate the repair costs because you have to replace windshields, bumpers, front headlamps and all related advanced safety technology housed in these areas.” Drive Defensively to Avoid Deer Dangers This year, some 1.33 million drivers will hit a deer, and November is the peak month for deer-related accidents. But drivers can avoid an accident with a buck by following some smart driving tips this fall and winter.
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
Early morning and dusk are the worst times for deer accidents, as visibility is limited and deer are frequently on the move. It is important to drive defensively and anticipate the potential for deer in the road. The auto experts at CARSTAR, who repair thousands of vehicles each year from deer-related accidents, offer the following tips to reduce the deer danger: • Use extra caution at dawn and dusk as well as around golf courses, fields and wooded areas. • Remember that deer travel in packs—if you spot one, there are likely more behind it.
• Do not swerve to avoid striking a deer, as that increases the risk of hitting another vehicle or losing control of the car.
• If there is no opposing traffic, use high beams at night to better illuminate deer. • Do not rely on devices such as deer whistles to scare off animals. •
If a deer remains on the high-
way after you strike it, report the incident to the game commission or a local law enforcement agency, as it can pose a danger to other motorists. If the deer is still alive, do not go near it because a wild animal with sharp hooves can inflict injuries. • If an accident with a deer does occur, it pays to be protected. Many drivers do not realize that carrying only collision coverage does not cover damage from a deer accident, leaving them with a damaged vehicle and a large repair bill. To cover any potential damage, drivers should carry comprehensive insurance that covers such collisions. For those who drive an older vehicle and feel their cars aren’t worth the cost of the insurance, it is smart to keep an “accident fund” if something does occur.
If a driver ends up stranded with a damaged vehicle after a deer collision, they can always call 1-800CARSTAR. CARSTAR will send a tow truck, call the driver’s insurance company, arrange for a rental car and repair the vehicle. For more information and store locations, visit www .CARSTAR.com.
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OEM Summit
time actually doing it, it’s going to become easier and easier … One thing I have seen work very well for some shops is assigning one person in their office to [be the one] who looks up these procedures. As they get more familiar with it, it becomes easier for them to navigate through it.” Mercedes-Benz Looking To Add More Shops Ben Cid, collision business manager for Mercede-Benz, said that like Volvo, it is looking to expand its certified shop network, which currently includes about 280 shops. “There are some areas where we need coverage,” he said. “We’re looking to be somewhere around 400 to 420 shops.” He said Mercedes has begun using its roadside assistance program and other means to connect its customers with certified shops in the event of an accident, so his main focus this next year will be to build
the network as needed to accommodate that. He said unlike some of the automakers, Mercedes has defined what a “certified repair” is, and repairers on the program can offer the customer “signed proof” that they followed Mercedes repair procedures. GM Defends Required Use of Mitchell Estimating John Eck of General Motors said more than 1,000 shops have already applied for its broader collision shop certification network, which officially launches next year. He defended the program’s required use of the Mitchell International estimating system, saying GM wanted a partner that could integrate the automaker’s repair procedures into the estimating system, eliminating the shop’s need to research those procedures as a separate process. (He noted those procedures are available for all Mitchell estimating system users, not just those in the certified shop network.) He said GM also needed an estimating platform available throughout North America. (CCC Information Services’ estimat-
ing system, for example, is not available in Canada.) Eck said efficiencies, rebate opportunities and other benefits for certified shops can also help offset the cost of adding another estimating system if a shop wishing to join the program needs to do that. “We made a choice and a business decision, and I think every repairer is in that same position,” Eck said. “They have to make the decisions that make sense for their business.” He said GM will be measuring and scoring certified collision shops based largely on their documented research and use of those procedures, along with customer satisfaction and cycle time. John Yoswick, a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (www.CrashNetwork.com). He can be contacted by email at john@Crash Network.com.
www.autobodynews.com
PPG to Acquire SEM Products, Inc.
PPG announced that it has reached a definitive agreement to acquire SEM Products, Inc. The transaction is expected to close in the fourth quarter 2018, subject to customary closing conditions. Financial terms were not disclosed. SEM is a leading manufacturer of repair and refinish products used primarily for automotive and other transportation applications. The company is known for various flagship products that offer convenience, including Color Coat, the original flexible coating and mixing system; Bumper Coater, the first product to restore original equipment manufacturer (OEM) finishes on plastic bumpers and cladding; and Dual Mix, a two-part cartridge system for adhesives, fillers and sealers. “PPG’s acquisition of SEM will complement our current automotive refinish product offering and add specialized, value-added products that address the needs of distributors and body shops,” said Gary Danowski, PPG vice president, automotive refinish.
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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National Associations with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
CCRE’s Fall Seminar & Convention Teaches Body Shop Owners Another Way of Conducting Business On Sept. 28 and 29, the Coalition for Collision Repair Excellence (CCRE) held its Fall Seminar and Convention at the Embassy Suites at the Atlanta Airport. According to CCRE President Tony Lombardozzi, “Attendees hailed from all parts of the country, including Utah and Alaska. The room held a full house of eager-to-learn collision repair shop owners and other guests who wanted to learn another way of conducting business in our industry. Many of them have realized that the present system is not working and is not a profitable method of operation.”
the group strives for collision repair excellence and the right to operate as independent business owners without being influenced by a third-party entity. The presentation then continued to explain that the industry fell into this state through apathy, poor business management skills, inappropriate behavior, insurers’ influence and the industry’s poor image. Lombardozzi emphasized that the correct alignment of contracts is a repair shop having a contract with the vehicle owner while the vehicle owner has a contract with the insurance company. When the contractual rela-
Steve Behrndt presented on job costing during CCRE’s Fall Seminar in Atlanta
The weekend commenced with Lombardozzi’s opening introduction, followed by a presentation on how the industry ended up in its current condition, where it is today and where it is headed in the future. He shared, “We spent a great deal of time discussing how we let go of the control of our industry and how we let insurers into the repair process.” Lombardozzi’s “An Educational and Networking Experience with Industry Peers” began by focusing on who CCRE is, how it has influenced the industry and what its future plans will entail. Future plans include development of state-by-state programs to develop a systematic resolution of day-to-day business issues, a network of attorneys for assistance in business-related situations and consumer issues, continued educational opportunities for shops and the teaching of the importance of documentation as 30
tionships become a “terrible triangle,” the repairer loses. Discussing insurer interference in the collision repair industry, Lombardozzi touched on hold harmless agreements that insulate insurers from liability, specified vendor purchasing, insurer supplements, the required use of crash guides for estimating and much more, predicting that the industry is in for an even tougher future if shops do not establish contracts with the vehicle owners directly, educate consumers, and remove the insurer’s third party influence from their businesses. One way to do this is by creating necessary procedures, for which attendees discussed some options. Lombardozzi shared some rules and tips for everyone to follow to take control of their businesses. He also advised, “Stop sharing information on social media, and quit bragging and boasting online; Big Brother watches everything! We are
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
trying to solve a difficult puzzle, but the goal is attainable; if you learn the process, the pieces will all fit together. It’s time to begin making money, not just repairing vehicles!” Next, Jeff Bryant of Autosport Body Works delivered a presentation on billing paint and materials using a cost accounting program. Lombardozzi recalled, “One of the highlights of his discussion was how he discovered that almost 50 percent of the materials he was using were never being billed or accounted for. After using a P and M invoicing program, the shop’s profits on those materials being used increased substantially.” Bryant explained that paint and materials are the cost of doing business, but that any costs incurred to produce repairs should be a profit center for the business. He explained, “The rate per hour
system has no real basis in reality and is not profitable, so why do we still use and accept it? Because the insurance companies like it because it benefits them. You will never win as long as you play their game by their rules on their field!” Exploring the cost of the rate per hour method, Bryant walked attendees through some financial scenarios. He shared, “The first year Autosport implemented paint and material cost accounting and proper collecting, the results were an additional $67,000 collected. A 6–8 percent increase is huge considering most shops operate on a less than 5 percent net profit margin.” Bryant shared how to account for paint and material costs in the shop, how to account for allied materials and how to assist the vehicle owner in getting reimbursed from their insurer.
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P HONDA ARIZONA
L
Chapman Honda Tucson
800-461-6744 520-202-5770 Dept. Hours: M-F 7-6; Sat 8-4 carlkeefe@chapmantucson.com
Earnhardt Honda Avondale
h
N
800-350-6537 623-463-4380 Dept. Hours: M-F 7-9; Sat 7-6 gluna@earnhardt.com COLORADO
Honda of Greeley Greeley
D
O
888-903-1101 970-506-2795 Dept. Hours: M-F 7:30-7; Sat 8-4:30 parts@hondaofgreeley.com
Mile High Honda Denver
800-548-4730 303-369-7800 Dept. Hours: M-S 7-6 lhoover@autotree.net LOUISIANA
Superior Honda Har vey
F
800-943-4227 504-368-5687
D
Dept. Hours: M-F 7-5:30 parts@superiorhonda.net ACURA ARIZONA
Acura of Peoria Peoria
866-347-4507 623-792-2559 Dept. Hours: M-F 7-6; Sat 7-5 dcavanaugh@vtaig.com COLORADO
Mile High Acura Denver
800-548-4730 303-369-7800 Dept. Hours: M-S 7-6 lhoover@autotree.net
Pikes Peak Acura Colorado Springs
800-456-9568 719-955-1715 Dept. Hours: M-F 7-6; Sat 8-4 joe_benson@pikespeakacura.com
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DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
O
D
Please contact these dealers for your Honda or Acura Genuine parts needs. LOUISIANA
TEXAS
Walker Honda
Bankston Honda
McDavid Honda Irving
Alexandria
Lewisville
Ir ving
Austin
318-448-8255 318-445-6677
800-344-8611 972-219-0021
800-492-4464 972-790-6003
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
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“You have to be willing to hold the customer accountable for the charges. It is hard to argue with facts, so make it factual and be willing to defend it,” he said. The last presentation on Friday was “Managing Customer Expectations: CCRE Guide to Implementation,” delivered by Shane Coker of Cokers Auto Body in Alabama. He “discussed his new method of business and front office management that has made it easier and more relaxing for him and his family while at their facility. He also discussed the many documents and forms he has created and shared those documents with all those in attendance, and additionally, word tracks and proper nomenclature of operations were discussed,” Lombardozzi shared. Coker began by asking, “What does consumer choice mean to you? What should it mean? It’s not just about choosing your shop … It’s choosing in everything!” He went on to talk about scheduling your day, refusing to negotiate with the insurance company and the value of educating the consumer. “If the customer ‘hears’ what
the insurer may say beforehand, they are prepared to counter, plus it builds credibility for the shop when the customer is prepared for insurance company attempts to steer,” he said. Moving on to integrating customer forms, Coker talked about estimate authorization, including prequalifying the customer, recording the vehicle owner’s intentions, the level of repair and how the entire conversation with the customer presents an opportunity to educate them, even if they choose not to repair at your shop. He went on to discuss disassembly, diagnosis and the repair contract, which “sets the rules of the repair and expectations for payment, protects the customer and shop and explains the contract of insurance is between the vehicle owner and insurer. The repairer is not party to the contract of insurance.” After discussing how his shop now handles interactions with insurance companies, Coker advised, “Start with one or two customers each day, not everyone. Don’t kill yourself in the beginning by trying to educate everyone that comes through the door. Learn your script; become com-
fortable with your techniques and materials, find out what your customer wants and decide if you can deliver. Long-term, we need to separate the shop from the insurance company by taking control of our shops [and] educating customers so they become advocates of our shops and make the insurance company irrelevant in our businesses.” On Saturday morning, Steve Behrndt of Crawford’s Auto Center in Pennsylvania presented “CCRE Job Costing.” Lombardozzi explained, “Steve presented a job costing program that provided the reasons for using this type of system and how it could be implemented in even the smallest size shop. Knowing your costs will allow you to know what price to sell your services for and be profitable at doing so.” Asking how shops determine hourly rates and how they know the cost of doing business, Behrndt encouraged attendees to engage in job costing on each and every repair order. “Every other industry realizes the need to job cost. Manufacturers need to calculate labor, materials, ad-
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ministrative, research and development costs, as do other businesses, to find their gross profit,” he said. “Why not body shops, or do we not want to know? Not wanting to know seems to be the normal reaction in the industry because we have been programmed to accept less, but the answer is right in front of us ... If you continue to do what you’ve always done, you will always get what you always got.” He questioned how shops can know that estimating databases are accurate if they do not job cost. In order to know an employee’s actual wages, shops need to track an employee’s individual labor tasks and then calculate their true labor cost, which includes their hourly rate as well as all benefits. Discussing the difference between an estimate and a repair order, Behrndt identified an estimate as a third-party’s supplied document, which is “a guesstimate of damages sustained, a rough calculation only.” He also emphasized that automated estimating programs are only guides. “These programs do not write repair orders,” he said. “They are only guides! The first step in taking control of your business is realizing you can-
not operate your business profitability following an estimate prepared by a third party. The second step is to eliminate the third party’s estimate from your business, and the third step is knowing you cannot use an estimate as your final invoice. You cannot job cost by estimating, and you cannot estimate your job costing.” Reiterating that it is possible to make a profit in the industry, Behrndt told attendees that it begins with job costing each and every job. He explained how to calculate a shop’s average gross profit by tracking every order, including labor tasks performed, all parts utilized in the repair, sublets, mark-ups, return items and sales tax amounts. He said, “We want to help shop owners grasp the importance of tracking expenditures and become more profitable by helping you understand the true costs within your business vs. your operating costs.” Behrndt walked through examples and calculations to show how many shops operate at a financial loss. He talked about a variety of ways to track technicians, and he concluded by elaborating on the importance of ac-
curate, complete documentation. The final presentation, “Autosport Testimony and Customer Expectations,” was delivered by Shey Knight and Bryant, who shared their experiences working for Autosport Body Works, a former DRP shop that they eventually ran according to the CCRE philosophy. Lombardozzi noted, “They discussed how to meet your customers’ expectations and listen to what they are really asking of you. They discussed repair contracts and other documents that are in use at their facility and how these documents and processes have made them a more profitable business.” Autosport Body Works became a DRP for State Farm in 2001. The business enjoyed increased business and a good partnership until State Farm started expecting more and more for less money. According to Knight, “Our ‘partnership’ with State Farm started to look more like a dictatorship, and we started to hate the business we once loved.” Despite the belief that it was the way the industry had always been,
Knight and Bryant believed there had to be a better way. So, they started talking to other shops and got involved with CCRE to create a system that worked for them. Bryant shared, “So, what’s the problem with our industry? We all have different ideas and practices, but instead of working together, we fight amongst ourselves. We are all too busy to take the time to step out of our business so we can work ON our business. We are all at different stages in running our business, but I urge you to take your first step in becoming truly independent.” Knight and Bryant then went on to explain how they run their business. Vehicle owners contract with the shop, and insurance adjusters are not permitted to enter the shop or work areas; only after a vehicle has been disassembled and moved out of the shop can an adjuster sign in to see the vehicle on their lot. They refuse to accept insurer estimates and will not negotiate with the adjusters. Rather than write estimates in rates and hours, they bill in dollars, and they will not supplement insurer estimates; however, at the vehicle
owner’s request, they will provide a Notice of Deficiencies. Knight stressed, “The key to it all is the customer! You have to become customer-focused and remove the third party influence.” The presentation continued to cover customer expectations, the customer service process, obtaining the commitment, rejecting excuses and keeping the customer involved throughout the repair process. At the end of it all, Knight and Bryant emphasized that shops can get paid, saying, “Simplify. Educate yourself. Educate the consumer. Be persistent. Be patient. Get support. Have fun.” The seminar concluded on Saturday afternoon with breakout sessions and open discussions on a variety of topics pertaining to the industry, and attendees shared their challenges and the solutions they had found. Lombardozzi stated, “Judging by the feedback from those who attended, this was a very successful event for all.” For more information on CCRE, visit theccre.com.
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Tips for Busy Body Shops with Stacey Phillips
Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.
Why OEM Certifications Are Critical to Remain in Business For those body shops still not con“The top insurance carriers are alvinced that obtaining OEM certifica- ready looking at their DRP programs tions is a critical component for and overlaying them with certification surviving in the future, Robb Young programs as a possible way to enhance of Assured Performance said, “Change and improve the 35-year-old business is necessary if you want to capitalize model,” said Young, who predicts this on the opportunity of the future. If you will continue in the future. continue to run your business the same As a result, he stressed the imporway you have been, five years from tance of getting certified to stay comnow your business will either be dying petitive. or be out of business.” “As Benjamin Franklin said, ‘By Young recently spoke to a group failing to prepare, you are preparing to of body shop owners and managers fail,’” said Young. Currently, approximately 10 perduring the AkzoNobel Acoat Selected North American Performance Group cent of shops across the United States meeting in San Diego, CA, have some type of certificaabout the “20/20 Vision: tion. The reason, according to Leveraging Your CertificaYoung, is they lack the proper tion.” That 20/20 Vision, actools, equipment, training and cording to Young, is the facilities to repair vehicles to point in which a shop has 20 OEM specifications for proper percent growth in its busifit, finish and safety. For exness and earns a 20 percent ample, out of the 6,000 shops Robb Young pretax net profit, an achievethat have applied for certificament made possible as a result of tion through Assured Performance NetOEM certification and executing a work over the last seven years, Young well-thought-out business strategy to said only 25–30 percent could obtain become an OEM Certified Collision certification. Care provider. Young is the director “If only 10 percent of the shops of strategic accounts for Assured Per- are experts, be one of those top 10 performance, a North American adminis- cent,” Young recommended. “Be the trator of OEM certification programs, local expert of choice.” network management platforms and He encouraged shop owners and collision repair business development managers to change their current line programs and tools. of thinking, begin exploring what sets During his training session, them apart from the shop down the Young discussed the new paradigm street and utilize OEM certification as taking place in the collision repair a marketing differentiator. industry and presented the case for Young mentioned how certificacertification from both revenue and tion not only differentiates a business, expense perspectives. but how it also can help with staff reHe identified the three main fo- cruitment, marketing, how customers cuses insurance companies have choose a shop, manage the company’s today: customer satisfaction, cost re- processes and with overall quality. duction and risk mitigation. OEM certification also provides “The paradigm is shifting and quality assurance for a facility in the they [insurance companies] are look- event there is litigation. He talked ing for ways to save money and re- about the importance of having a duce risk,” said Young, who had process in place and documenting that worked in the insurance industry and process on every single repair. automotive industry for 25 years prior “If you are pulled into a court of to joining Assured Performance Net- law, you’ll need to provide substantial work this year. Rather than viewing documentation to show how you folinsurance companies as customers, he lowed OE repair procedures by a suggested looking at them as strategic trained technician, using the correct partners. parts,” Young cautioned.
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DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
He also mentioned the OE-QC tool inside Assured Performance’s ShopOps platform that every certified shop has access to. The first step is to set up basic rules and processes. This includes listing out the tool and equipment purchases necessary for the facility, allocating money toward training, marketing and researching the cost of certification fees. “Yes, there’s a cost to getting certifications,” explained Young. “You can’t buy them. You have to qualify. It’s a value proposition that must permeate your shop’s culture.” Although there is an investment necessary for certification, it has been shown to ultimately increase the amount of business coming to your doorstep. “Most of our shops see an increase in the number of vehicles they repair if they follow the process and
the marketing strategies laid out through the OEM Certification programs,” Young said. Young also pointed out that OEMs are proactively communicating with insurance companies and marketing to consumers through Assured Performance’s locators and marketing tools available in ShopOps. “OEMs are increasingly directing traffic to shops that are certified,” he said. “Over the last 18 months, data has shown that a shop that follows OEM procedures has a lower cycle time and higher CSI score.” Once a shop receives certification, Young reminded shop owners and managers to let everyone know about it. “When you get certified, you have the right to carry that badge,” he said. “It’s an honor, so make sure to use them on all your marketing collateral.” See OEM Certifications, Page 47
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National News
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
with Ed Attanasio
PPG’s Jennifer Jarzembowski Discusses Impact of OEM Certifications National Account Manager, OEM After Sales Jennifer Jarzembowski from PPG advises shops all over the country on the advantages of attaining OEM certifications and helps shops obtain them.
Q:
nies?
Are OEM certifications important to insurance compa-
mand marketing, smart phone apps and the increased use of vehicle telematics give the OEM the advantage of the first notice of loss. OEM certification training, equipment and tooling can be costly. If a shop is dedicated enough to meet the requirements of a certification, a consumer can be reassured that the facility is doing safe and proper repairs.
OEM certification continues How can OEM certifications to grow, and existing prostrengthen shops’ relationships grams are becoming more and more with their DRPs? refined. The availability and required OEM certification can make a use of repair procedures and position facility less dependent on the statements make certified shops the authority on collision repair. The in- insurer. It can help leverage the insurance company authority is be- surer to allow the facility to repair coming less of a factor and there is the vehicle to the manufacturer standards (and in a timely manmore emphasis on the repair ner), allowing them to use method, OEM compliance OEM parts and get paid a and liability exposure rather fair rate. While a certified than alternative parts usage facility may still need to exand severity. I believe that plain the necessary costs to consistency in estimates and insurers, automakers are safe and proper repairs is bedoing a good job of educatcoming important to the inPPG’s National ing and keeping the insurers surance companies, and Account Manager, OEM After Sales informed regarding their challenging certified shops is therefore decreasing. They Jennifer Jarzem- certification requirements. bowski said that are showing interest in ac- OEM certifications Customers are being influcessing network manage- are an investment enced by the automakers to that many shops go to a certified facility, and ment systems that provide certified shop information might have to make they are much less likely (if and KPIs. Knowing who the to stay competitive at all) to be influenced to certified facilities are and knowing take the vehicle to a shop that is not the quality of their repairs makes it certified. Their trust has already been more likely that they will send work attained. Emerging legislation in several states will also drive consumer to them. consent and appropriate repair rates. Why are OEM certifications important to consumers? Shouldn’t a shop be discerning when pursuing an OE cerOEMs, consumer advocacy tification? organizations and media are When pursuing an OEM cereducating consumers on the importification, many factors need tance of identifying shops that meet OEM requirements, can assure a to be considered. It is absolutely esproper and safe repair of their vehicle sential that diligent research is done and will restore them to pre-collision, to ensure that there will be a return factory condition. OEMs are giving on investment (ROI). While I believe vehicle owners the level of confi- that ultimately it is an investment dence that they have identified quality that many shops might have to make shops at the point of vehicle purchase. to compete long-term, the proper exCertified shop locator sites, on-de- ecution of choosing a particular pro-
A:
Q: A:
Q: A:
Q: A:
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DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
gram or programs is essential. Some major points to consider are vehicles in operation in their market, relationships with the area dealers, and initial and ongoing investment for equipment and training (and budgeting for it) based on the program requirements and ROI, etc.
them make decisions in the process. Interested facilities should express interest with their local PPG territory manager, and we will work with that shop on a case-by-case basis to help them make informed decisions in pursuing certifications.
What role do you play at PPG in helping shops get signed up for OE certifications? What’s the process?
You recently made an offer at a CAA meeting that you would help shops in the certification process, even if they don’t use PPG. Is that true and if so, why?
A:
A:
Q:
Our OEM after sales team in PPG automotive refinish works with the manufacturers and their administrators regarding the growth of their programs, and we remain educated on the program requirements. While it is the responsibility of the shops to pursue certification, we can certainly provide them with the knowledge and tools to help
Q:
PPG is dedicated to working creatively to help solve not only our customers’ challenges, but those of our industry as a whole. We welcome the opportunity to collaborate with all shops where it makes sense, as well as all other industry associations in the interest of, and as an end goal of, producing a safe and See Jennifer Jarzembowski, Page 41
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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.
From the Desk of Mike Anderson with Mike Anderson
Toyota’s Training Website Offers Free Information for Collision Repairers One of the occasional frustrations I experience is seeing the industry fail to make use of some of the great (and free!) resources shops have at their disposal. When you find, for example, something is missing or seemingly inaccurate in one of the estimating systems, please take a few minutes to submit an inquiry to the Database Enhancement Gateway (www.degweb.org). In October, for example, someone questioned why there was no paint time for the fender bracket for the 2017 Toyota 4Runner in the CCC estimating system; within a day, CCC responded that it was adding two-tenths of an hour of paint time for the part. The entire industry benefits from the few minutes it took someone to submit that inquiry to the DEG. If every shop in the country were to submit even just one or two inquiries a year, the estimating sys-
tems would be far more complete and accurate. Can’t find some specific collision repair information? There’s “Ask ICAR,” an excellent, searchable database of questions submitted by your colleagues and answered by the great
sion beams or bumper reinforcements? The answers are right at “Ask I-CAR” (https://rts.i-car.com /ask-icar.html). If your question isn’t there and already answered, you can submit it to be answered for you – likely helping others as well. (Full disclosure: There’s a subscription fee for I-CAR’s Repairability Technical Support resources, but it’s waived for any shop that is regularly training with ICAR.) But perhaps the free resource I most often see shops scribbling down in their notes when I talk about it in my classes is Collision The Toyota training website offers sections of information Repair & Refinish Training both for body technicians and painters (www.crrtraining .com), folks at I-CAR. Wondering if Hyundai which is packed with tools to help or Kia has sectioning procedures, for you repair Toyota and Lexus vehicles. example? What does I-CAR say It’s not a substitute for subscribing to about repairing damaged door intru- Toyota’s repair information website,
but it offers tons of great information. Here are just a few portions of the website that I think shops should check out: • Start with the “News” tab at the top of the homepage. On the righthand side is a list of categories of content, including “Tech TIPS.” Divided up between “Painters Corner” and “Body Corner,” the Tech TIPS offer Toyota’s information and advice for your technicians on such topics as blending, decoding paint codes and sensor recalibration. • The “Training News” category is divided up further by topics including “paint,” “body,” “electrical” and “safety.” I usually suggest starting with the “recommended procedures” topic because you’ll probably find something of immediate use and interest, such as articles on zero point calibration, calibrating bird’seye view cameras and welding tech-
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are offered online through the website, and you can also find a complete schedule for the instructor-led courses Toyota offers at its three training facilities around the country. (A fourth location is “coming soon.”) • I also encourage shops to sign up to receive Toyota’s “Collision Pros” magazine. It’s a free quarterly publication that offers repairer information on Toyota’s newest vehicles, advice on finding the Toyota information you need and tips such as how to Videos on the site offer information on such topics as order replacement vehicle scanning Toyota vehicles information labels. You can Eric Mendoza walking you through sign to receive it using this link: the proper procedures for conducting https://tinyurl.com/CollisionPros. a “health check” (a diagnostic scan) But until you receive your first copy on a Toyota vehicle. (or if you ever want to see articles • If you haven’t already done so, from previous issues), some of the use the “CR&R Info” tab from the magazine’s content is available at the home page to register for the “Se- Toyota training website. cure Personal Identification Number” (SPIN) that you need to register I commend Toyota for creating all for any of the collision repair train- the content that they have to help the ing courses Toyota offers for both industry. Now it’s up to you to put dealership and independent shop the website to use to help your techtechnicians. Many of those courses nicians and your business. niques that minimize heat-effect. • The “Video” category includes about a dozen brief videos. One of the best videos features Toyota trainer
Continued from Page 38
Jennifer Jarzembowski
quality repair for the consumer.
Jennifer Jarzembowski joined PPG automotive refinish in May 2018 as national account manager, OEM after sales. She works with OEMs on the growth of their certified collision programs, PPG product approvals and identifying opportunities for their field sales organization. Jarzembowski has more than 10 years of experience working with facilities on a national level and assisting them with achieving OEM certifications. She brings a wealth of knowledge in certification requirements, including equipment and training. Her goal at PPG is to help bring value and profitability to already-certified shops and those seek-
Don’t Miss the Weekly Industry NEWS Your Shop Needs. Sign Up Free Today!
ing certification. Prior to joining PPG, Jarzembowski worked with Assured Performance Network (APN) as director of certification integration and OEM account manager. Before APN, she spent 24 years with Axalta Coating Systems as a national account manager. In this role, she was responsible for various aftermarket collision programs, including building and maintaining program materials and managing a network of inspectors. She also held positions in managing color & technical service, regulatory, health & safety and product management. Her career also includes eight years as a Russian linguist and U.S. Naval petty officer, as well as four years as a licensed Part 135 and 121 aircraft dispatcher. She studied languages and world business at Eastern Michigan University.
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In Reverse with Gary Ledoux
Gary Ledoux is an industry veteran with 48 years’ experience in the automotive and OEM collision parts industry. His column appears exclusively in Autobody News. He can be reached at YesterWreck@yahoo.com
The Fabulous ‘50s and Mr. O’Donnell’s Invention The decade of the ‘50s marked a golden era in the auto industry. American servicemen were back from the war. No longer were factories turning out bombs and bullets. It was time to build some cars that were destined to be classics—and time to introduce some new automotive technology. Mainstay models like the Chevy Corvette and Ford Thunderbird were introduced. The 1957 Chevy Bel Air became the quintessential classic car. Ford’s 1957 Fairlane became forgettable. It was also the decade that saw the emergence of the import car with names like VW, Triumph and Jaguar. Typically at the time, import cars were first characterized as vehicles that were difficult to repair and difficult to find replacement parts and refinish paint for. That stigma would remain until the 1970s. In 1950, with so many people hitting the roads after being limited for so long by gas and tire rationing and simply lacking a vehicle, vehicle miles traveled and the accident rate began to soar. In 1950, 34,763 highway deaths were reported. It was time to implement some safety measures. Wide curved-glass windows, front and rear, gave drivers an extra measure of safety to avoid accidents … and offered replacement window re-installers a new challenge. The new Chevy small-block V8 gave drivers safety in the way of more power on the new interstate freeways to pass and merge into traffic. Safety became more of an issue in the 1950s for body repairers, the motoring public and civil and safety engineers. Vehicle safety meant greater use of seat belts and padded dashboards. The concept of automotive safety airbags was developed in the 1950s, but they were not very practical. To deploy an airbag, a driver or passenger had to anticipate a collision and flick the “deploy” switch in time. Most people weren’t quick enough. Roads became safer with new legislation that called for more signs and lane separation. Civil engineers
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designed roads with a crown in the middle, allowing rain water to run off to the edges, leaving a better, less slippery surface. It was also the start of the interstate highway system, which promoted driving and led to more accidents and more need for body shops.
Some key events in the 1950s would lead to the industry’s first voice in the 1960s. In June of 1955, Emil Stanley founded Stanley Publishing, which produced two magazines: Transportation Supply News and Jobber Product News. Little did he realize, he would later be an innovator in the world of publishing for the collision repair industry. In 1962, Stanley would produce the first nationally distributed collision trade publication, Auto Body News and Good Car Care magazine. Finally, the collision repair industry in general, and shops in particular, had a voice. Auto body painters finally learned that breathing toxic paint fumes all day was just not good for their lungs, and great strides were made in the world of paint application and the paint-application environment. It was around this time that German engineers developed downdraft technology for rapid air movement and adapted it for use in paint booths. During the war, people and soldiers in Germany worked underground for protection and secrecy. German engineers devised a method of pushing fresh air underground to soldiers and workers and pulled spent air out the bottom along a trench and then exhausted to the outside. When
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
the industrial infrastructure of Europe was rebuilt, engineers turned to the downdraft method. This was a technology whose time had come because painter health and safety became more of an issue in the 1950s. The downdraft system could quickly and efficiently suck fumes and spray away from the painter and into a floor trench. Fire prevention also became more of an issue, which promoted improvements in spark and fume control and spark containment within the booth. However, not every shop had a booth or saw the need for a booth. Lacquer was the paint of choice in the ‘50s, a product that dried so fast that overspray didn’t go nearly as far as enamel. Besides, lacquer needed to be polished to a shine, so a little overspray that
settled on a freshly painted surface was not a problem. In the early 1950s, the average hourly rate for collision repair was $4 to $5 per hour. The average hourly wage for a body man was $1.75 per hour. This seems ridiculous today, but back then, bread was $0.12 per loaf, and 3 pounds of hamburger cost $0.89. An article appearing in a 1969 trade journal provided one long-time shop owner’s vision of the collision business over the past 20 years. He noted that 1949–1954 were the best years of his operation. There were few shops and plenty of work. He employed 15 body men—a huge shop for the time. Intrusion from the insurance companies was almost non-existent, and in fact, the insurance appraisers seemed most amiable. See The Fabulous ‘50s, Page 54
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The Next Generation Speaks Out on Their Collision Repair Careers by Chasidy Rae Sisk
It is common knowledge in the collision repair industry that there is a shortage of incoming technicians. Over the past few years, many articles, educational seminars and programs have been dedicated to this dilemma. However, while many industry professionals have spoken about what shops can do to engage millennials and Generation Z (those born between 1995 and 2009), rarely does this information come with feedback from the young people in these age groups who have decided to join the industry’s workforce. Why did these young people pursue a career in the collision repair industry? What factors are most important when considering a company for which to work? What misperceptions have they encountered about the industry, and how can the industry’s image be improved to attract more of their peers? These are some of the questions that several young industry professionals graciously answered for Autobody News. Their responses will help their more seasoned peers better understand their generation in order to attract and maintain new employees. Like any other group, no two individuals are the same, and their responses vary as much as their personalities. However, there are some underlying similarities and themes across their responses. Most of those interviewed were interested in the industry from a young age. Travis Jeske, a UTI graduate who works for Caliber Collision, grew up in the automotive industry with a mechanic for a father, and he decided to pursue collision repair training so that he could open his own mechanic and body shop one day. Alex Casillas-Mendoza, another UTI graduate and Caliber employee, shared “I have a passion for cars and have always been intrigued by the engineering, assembly and disassembly of any vehicle.” Nineteen-year-old Meghan Grant worked in the garage with her dad when she was younger and developed a “passion for cars, trucks, bikes—you name it. Typical fatherdaughter stuff. My mom, on the other 44
hand, was very artistic, so I was always painting and doing arts and crafts with her. I love being able to create things on my own, so I figured, why not mix the two? I started dabbling in the collision repair industry when I was around 13 and started seriously pursuing the field when I was 15.” Shiloh Taft, an employee at Julian’s Auto Body and Frame, has “always enjoyed working with my hands and fixing things. It’s amazing to get
nothing but increase. I was excited to find out there was a one-year vocational school I could attend to put me in a career I actually wanted to do. [When seeking employment,] the most important factor to me was getting my student loans paid off within the next five to 10 years, so I didn’t apply to companies that don’t offer student loan benefits, but luckily, I found a company that has decided to help me repay my student loans once my probation period ends.”
Casillas-Mendoza agreed that the most important factor when considering a place of employment is “the opportunity to grow and build my career path progressively.” For others, the work environment plays a vital role in their decision-making. Taft stated, “A good group of people can really make work flow more efficiently. It’s very important for me to work with people who have the same goals as I do so we can get
something that’s broken and restore [it to] its original form.” ABRA’s Mackenzie Hanberry found the industry a little later in life when she was working in the car wash industry and became interested in learning body work as a response to customers asking her how to repair issues with their vehicles. Looking at what’s most important when considering a job, the young industry professionals were given five categories to prioritize: company culture, compensation and benefits, charity and community involvement, training opportunities and potential for advancement. Overall, training opportunities were the most important factor. Potential for advancement tied in second place with compensation and benefits, followed by charity and community involvement; company culture came in last. For Jeske, “All of these are about the same importance. What’s most important is a good process because without it, work becomes a nightmare. How the shop is managed and that quality repairs are being performed outrank everything else.” Student debt assistance was a very important consideration for Ashley Cambern of Woodlands Collision Center after she graduated school and began looking for employment. “After high school, I wasn’t prepared to go to college and study four more years when I could be out in the world doing something I love and making money,” she said. “Plus, college tuition prices have done
Potential for advancement is also vital to Cambern, who stated, “I don’t want to work anywhere that I can’t get a better-paying job in the long haul. I understand starting at the bottom and working your way up, but if you have the skills and they hold you back—you don’t need to work for a place like that.”
the job done in a timely manner and do it right the first time.” Grant added, “I already love what I do, so the only thing that extremely concerns me is the work environment. I wouldn’t want to work somewhere that management was horrible and made me feel like I didn’t want to be there.”
“I already love what I do, so the only thing that extremely concerns me is the work environment. I wouldn’t want to work somewhere that management was horrible and made me feel like I didn’t want to be there.” — Meghan Grant
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These young professionals shared a lot of opinions about misperceptions of the industry. Cambern said she feels that many people believe “you have to be trained your whole life to work on a wrecked vehicle, but it’s really just about getting familiar with the types of materials used, understanding how they fit on the vehicle and learning how to do the repair.” Hanberry takes the opposite view. “One big misperception about this industry is that anyone can do this, and while technically that’s true, I feel it takes a certain type of skill set that needs to be required as a technician becomes more and more advanced,” she said. The largest misperception Grant has noticed “revolves around women in the industry. I’ve experienced firsthand people saying women can’t do it, and they’re awful at it and not strong enough. It really breaks my heart but also fuels it… whenever someone tells me women can’t work in this industry, I do my best to prove them wrong. The collision repair industry needs more women because women
in this industry are amazing at what they do!” Taft shares a similar experience. “I always hear, ‘You don’t look like a collision repair technician.’ What is a technician supposed to look like?” she said. “Some men in this industry have also told me I shouldn’t be doing a man’s job. The only way to combat that is by proving them wrong and showing that we women can do just as well as they can.” The general consensus for improving the industry’s image is making sure the job is done well and the customer is happy. As Cambern pointed out, “Just one positive thing can go a long way.” Hanberry added, “The better the repair, the more work will come in and the more money will be produced.” Public image is also a major factor that needs improvement. Casillas-Mendoza noted, “We are often portrayed as the bad guys. When insurance companies fight about repairs being done per OEM requirements, it delays vehicles getting repaired in a timely manner and results in customers getting upset with the shop. We need to regain control
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of our industry and not let insurance companies dictate how vehicles should be repaired to improve turn-around time and provide a better customer experience.” When asked how to attract more young people to the industry, Cambern and Hanberry agreed that money talks. According to Cambern, “People my age are going to college or just getting out, and paying for their student debt is the biggest thing on their mind. Also, tools are very expensive, and you can’t make money without them. I think more people would be interested in this industry if employers offered a $2,000 voucher for tools that could be repaid slowly through monthly payments.” Hanberry added, “I understand starting at the bottom, but as a technician gets better and learns more, their pay should increase. More people are flocking to work on computers, and few people see manual labor as rewarding.” Jeske believes the industry needs to work on attracting fresh blood at a younger age. “Most people my age have alARIZONA
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ready decided what they want to do in life. We need to get kids interested in cars and ensure high schools keep having shop programs – that’s how I got into this industry,” he said. A big deterrent to pursuing a career in the industry is the view that more experienced professionals have of the younger generation. Hanberry shared, “Being a millennial, we have a really bad reputation of being lazy and not wanting to work for our money. That’s how the older generation sees us, but if they’d sit down and work with us, they’d realize we are driven by hard work and being rewarded for that work.” Casillas-Mendoza believes the older generation should recognize “that we have a fresh outlook on the industry, and we’re ready to work hard and grow in experience to become the next great generation of technicians. One major thing older guys do is underestimate the new generation techs. They think we don’t have the drive it takes to succeed in this industry, but I work hard to achieve OE-approved repairs and prove to myself and others that our generation of technicians can do as well or ARKANSAS
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better than the older generation of industry veterans.” According to Grant, “The biggest thing the older generation should know about us is that there are lots of us out here with a thirst for knowledge who want to get dirty, work hard and learn. Some of us might take a little more time than others to learn, but most of us have that drive, thirst and hunger for more knowledge so we can become the best we can be.” Cambern hopes that established industry professionals will also recognize her generation’s need for advancement. “We’re capable of doing things they’ve been doing for a long time,” she said. “Many places that hire people from my generation often lose them because there’s no room for advancement. It seems that younger technicians are only promoted when an older guy retires or passes away. My generation likes to feel wanted and important; they strive to do their best when they feel like they have purpose, but if their job doesn’t provide those things and offers no room for advancement, they’ll move on because there’s no reason to stay in
a job that gives them no purpose.” Brandon Eckenrode, director of development for the Collision Repair Education Foundation, agrees that the industry needs to focus on getting students involved in collision repair and showcasing the industry in a better light at middle school and high school levels. “The industry needs to take on responsibility. Many misperceptions about collision repair can be rectified simply by making shops and schools look professional,” Eckenrode suggested. “We need to address this at a local level by getting local employers involved to demonstrate the need for these programs. Career fairs are also helpful for showing there are plenty of jobs available for those who are properly educated.” Offering an example of a local industry-led program that has effectively engaged local students, Eckenrode noted, “Since the Atlanta I-CAR Committee got involved with their local high school, they’ve raised nearly $400,000 to reinvest in the programs, and enrollment has doubled. The Committee’s involvement with local collision repair programs
and students has had a drastic impact on the school.” Gerry Poirier, chair of the Atlanta I-CAR Committee, recalled, “We got involved because we needed to do more than just try to get more techs into the industry. We reached out to Maxwell High School of Technology around seven years ago and approached the faculty to explain our goals. They had around 20 kids in their collision program at the time. We established an Advisory Board and started fundraising for them. We’ve donated nearly $100,000 in grants, scholarships and supplies, and their program now attracts around 80 students each year.” The Committee is also involved with Athens Tech, Chattahoochee Tech, Atlanta Tech and North Georgia Tech, all of which have received CREF’s Makeover Grant. Their next phase will include a signing day program that guarantees employment to good students. Poirier said, “We want to define career paths, help the schools determine if the paths are a good fit for their students and encourage students to follow the path.”
Continued from Page 36
OEM Certifications
5 tips on how to market your certifications: 1) Educate the “key holders.” Consumers are the ones who have the right to choose who repairs their vehicles. “Many people won’t know the name of your shop but will recognize the name of the OEM,” Young explained. 2) List all certifications on the company website and create a landing page with information. 3) Hold an open house and invite the community to attend. 4) Use email and direct email campaigns to reach out to former customers, insurance agents and others. 5) Share information about your certifications on social media. In closing, Young recommended getting certified over the next 12 months. “Just pick one and do it,” he said. “Change your reality and become a leader in the industry. Not only does this give customers confidence that you can get the job done, but it also demonstrates you are best in class.”
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Tips for Busy Body Shops with Stacey Phillips
Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.
5 Key Steps to Implementing Practical Production Processes “Sometimes I think pushing a repair through a collision center is like putting a bag into the security scanner at the airport,” said John Shoemaker, business development manager for BASF Automotive Refinish Coatings North America. “You put the bag on the belt and hope it comes out the other end without any complications.”
John Shoemaker, business development manager for BASF Automotive Refinish Coatings North America
Shoemaker spoke to a group of body shop owners and managers during NACE Automechanika in Atlanta, GA, this past summer about practical production processes and how critical it is to incorporate them into your business. When Shoemaker walks into a body shop, he often notices half-repaired vehicles waiting for a missed part or sublet vendor to arrive. Dur-
that the car is ready to be repaired,” he said. “There are little things you are going to need as you work on that vehicle, and if you don’t have those things, your technicians are just staying busy working on cars but not being productive—completing repairs and getting them out the door.” His advice: “Don’t put a vehicle in production until you are 100 percent sure that it’s ready to be repaired and will go through the shop without any stoppage.” Shoemaker said that careful production planning can reduce the “chaos” of collision repair. Experience has shown that it can also help with productivity and reduce cycle time, improve touch time and ultimately improve overall customer service and a shop’s key performance indicators (KPIs). Shoemaker shared five key steps to repair production planning:
The first step is to review the vehicle using a damage appraisal as a guide and disassemble the car to ensure all of the damage is identified. As you disassemble the vehicle, systematically list the parts that will be needed for any identified repairs. “A certified tech and damage appraiser should identify every single step that’s involved in repairing that vehicle on day one,” said Shoemaker.
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2) Focus on all parts, materials and sublet identified on the damage appraisal
Next, Shoemaker said to determine the type of part to be used, whether it’s OEM, aftermarket or recycled. “Not only should you have the parts necessary, but you should also have everything related to replacing
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
to follow OEM repair procedures every time to learn exactly what is going to be needed for the repair and to reference Standard Operating Procedures (SOPs) from companies such as 3M. Another option is asking the dealer selling the parts to obtain the OEM procedure. “If you order a roof panel from somebody, ask them to send the repair procedures with it,” he said.
3) Validate available reference materials that were used Tim Rousseau, technician, at Tom Bush Collision Center to capture repair process opin Jacksonville, FL. Credit: Tom Bush Collision Center in erations During this stage, Jacksonville, FL Shoemaker said it’s critical to stripes. He said to pay close attention capture all operations using P-Pages, to validating internal/external repairs information from ALLDATA, the such as glasswork, key coding, me- SCRS Guide to Complete Repair Planning, the vehicle manufacturer repair chanical repairs and framework. Shoemaker encouraged attendees See 5 Key Steps, Page 53
1) Systematic damage appraisal inspection – itemizing all operations necessary to repair the vehicle
John Shoemaker stressed the importance of putting a vehicle in production when you are 100 percent sure that it’s ready to be repaired
ing his presentation, he stressed the importance of ensuring that everything needed to repair the car is organized in advance. “Just because you have an estimate and a technician doesn’t mean
that part,” he advised. This includes accessory items such as fasteners; decals, emblems and labels; seam sealers, corrosion protection and sound pads; and pin-
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National Associations with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
Dave Luehr Teaches WIN Members How To Develop a WINner’s Mindset On Wednesday, Oct. 10, the Women’s Industry Network (WIN®) hosted a webinar featuring Dave Luehr of Elite Body Shop Solutions, who presented “Developing a WINner’s Mindset (Pun Intended!).” “Right now is the greatest time to be in the collision repair business, but only for those with the right mindset,” he said. “But, what IS the right mindset? “When I think of the word ‘limitless,’ I’m immediately inspired by the beauty of human potential. It makes me think of a childlike quality that dares to dream big and live life to the fullest. No one said this business was going to be easy. Many people fail, but it’s those people who honor the struggle and dig deep to find the great opportunities that exist within the difficulties—it’s these people who are creating a life of their choosing. “Building a great business is an art. In the collision industry, great men and women have created great businesses through the power of their imaginations. I believe everyone has the power to create greatness. It has very little to do with a person’s situation in life compared to their attitude toward their situation. Bring back that child within you. I can promise you it won’t be easy, but nothing worthwhile ever is. With a structured approach and a childlike imagination, you truly are limitless.” Luehr welcomed attendees, thanked WIN for the forum and encouraged any non-members to join the organization. Beginning his presentation, he noted that there are two fundamental problems in the industry: Everyone seems to be looking for a magic solution to their problems instead of looking within themselves, and many people believe they can have anything they want in life as long as they work hard enough. “Hard work does not make you successful… working hard on the right things makes you successful!” he said. After sharing a story about his background in the industry, Luehr
50
talked about losing his first business after his mother’s death and how it shook his confidence for many years. He recalled difficult times in the industry during the first decade of the new millennium and noticing so many people who were succeeding. This led to him starting Elite Body Shop Solutions.
However, he said, “I still had to get out of my way. The only limitations that are keeping you from where you want to get in life are the ones you’re creating yourself. That was one of the greatest things to ever happen to me.” He identified four factors that contribute to developing a winner’s mindset: confidence, challenging limiting beliefs, personal responsibility, and finding the positive within the negative. Confidence “truly is at the foundation of whether we’re going to be successful or not. If you think you can be successful, you can because we get what we think in life, and confidence is at the very core of that,” Luehr emphasized. “You can have doubts and still have confidence that you’ll succeed. It’s really what you do in those moments of doubt that makes all the difference between success and failure. Why not you?” Confidence is only gained by doing—especially actions taken outside your comfort zone. Being afraid does not eliminate courage as long as you do it anyway. Explaining the confidence-competence loop, Luehr noted, “Every time you take an action that you’re a little fearful of, you become a little more competent. You know that you can do it and become better each time you do it. Don’t let your lack of knowledge about a certain subject
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
keep you from starting.” The second step to developing a winning mindset is to challenge limiting beliefs. Luehr observed that there are a lot of old beliefs that keep people stuck. “The majority of beliefs in our brains today were in place by the time we were 4 years old, so there could be faulty information in there. But many of us identify so much with our beliefs that it becomes part of who we are and can be difficult for people to swallow. Challenging your belief system does not make you wishy-washy; it makes you wise!” Luehr said. Moving on to personal responsibility, Luehr shared three tips for discovering your best self: exploring outside your current “truth,” determining the origin of those truths, and
avoiding the status quo. “Real freedom comes when you’re being your best authentic self,” Luehr encouraged. “Take responsibility for your successes and your failures.” He then discussed three types of people: Card players, who play the hand they’ve been dealt; card haters, who act like victims and complain; and card fighters, who “make it their personal mission to go out and fight what’s wrong in this world.” Finding the positive within the negative is the final step to developing a winning mindset. This means finding the opportunity in each chapter. “Every time something bad happens, we have to find the good hidden in it,” Luehr advised. “Failing is OK, but fail brilliantly! Once you know it’s okay to fail, that changes See WINner’s Mindset, Page 56
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Day Job/Night Job
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
with Ed Attanasio
Industry Veteran Creates Vintage Wine Furniture He’s got mad skills when it comes to making furniture out of wine barrels and old wood that he finds or purchases for his creations. It’s something he does when he isn’t meeting with insurance companies as the director of insurance relations for Cook’s Collision. Frank Quadrato has 37 years of experience in the collision repair industry in northern California. He credits much of what he learned about the industry to Peter Lock, the former head instructor at Contra Costa College, where he graduated in 1986. After working for several independent shops as a technician to learn every facet of the industry, Quadrato was hired by Cook’s Collision nearly 20 years ago. Seven years ago, Quadrato began building furniture and other items such as tables, fire pits, chairs and other items that are in high demand.
But his first creation was something completely different. “My son Chris (then 14) and I wanted to buy an old truck and restore it,” Quadrato said. “To raise the
Frank Quadrato’s wine furniture gets rave reviews and sells quickly
money, we designed and manufactured what we called ‘Dream Falls,’ a water feature made out of metal and slate. It was a nice father-and-son
project and an opportunity to teach Chris how to weld. We built a few of them and took them to the Clayton Wine Festival, and they were a hit. We did it the following year and got enough money to buy the truck. After we restored it, I was looking around for other projects, and that’s why I started making things out of wood.” To make the fire pits, Quadrato takes old wine barrels and re-purposes them. They’ve become a popular item and many of Quadrato’s friends and associates now have them on their patios and in their backyards. “I cut a hole in the barrel and put a fireplace insert in there and then make a small door for the gas hookup,” he said. “Then, I take winery box tops and attach them in a ring around the outside of the fire pit. People who love wine really appreciate the skills and craftsmanship that go into these fire pits, and I think
Original Thought #78
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they also like the fact that I am taking these old barrels and making them useful again.” The wine barrel fire pits take 8-10 hours on average to make and retail for $950. Quadrato sells them at wine festivals throughout the Bay Area and gets a lot of satisfaction with great reviews for his work. In addition to designing and building a wide range of other items, he is always looking for that next project and challenge. “I’ve made thousands of things now, including large tables, candlesticks, chairs, stools, cabinets and all types of furniture using old, stressed wood,” he said. “I recently made an 8-foot table out of wood that I got from an old barn. I build everything from scratch in my garage and then we sell them at shows. I was an iron worker for three years before I became a body man, so I know how to
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build things, which allows me to creatively combine wood and metal in many of my pieces.”
Lisa (left) and Frank Quadrato work together to make tables, fire pits, chairs and other items out of old wood and wine barrels
Building furniture is a family affair at the Quadrato house in Clayton, CA, because Frank’s wife, Lisa, helps him with the staining and finish work. “She is great and has an eye for detail. We work very well together,” Quadrato said. “We always seem to have at least one project going on here. Recently, we made wine tables and chairs and sold them at four East
Bay wine shows. We have the best wine in the world right here, and people love the fact that we are repurposing wine barrels to make furniture.” A winery in St. Helena recently contracted Quadrato to make furniture after designing and building the vineyard’s sign. “I found an old barn in Martinez, CA, and disassembled it,” he said. “Then I took the wood and made picnic tables for AXR Vineyards out of it. I love using old and distressed wood because it has a distinct look and character.” Quadrato just turned 59. When the time comes for him to step down at Cook’s Collision, he knows that building his furniture will play a major role in his retirement. “It keeps me busy, and I like making things after fixing things for so many years. When I get a positive response from someone for a fire pit or a table, for example, it’s very satisfying and fulfilling,” he said.
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Subaru of Little Rock
Continued from Page 48
5 Key Steps
specifications and/or refinish procedures. “Make sure you have them attached to your damage appraisal,” Shoemaker recommended. “They should be systematically documented and work hand-in-hand so there are no questions down the line.” He said this outlines to everyone involved exactly what steps have to be taken for the repair and the process that is going to be used. The information can also be helpful in the event of litigation.
4) Review damage appraisal with paint team leader to validate refinish requirements The reason this is important, according to Shoemaker, is that team members often have differing opinions about what needs to be painted and how it should be accomplished. This may be related to paint code, validating blend areas and verifying the refinish process—whether it’s single
stage, base/clear, tri-stage, four-stage or matte finish. By having everyone involved from the onset, Shoemaker said, you’re closing the loop and ensuring all employees have a voice at the beginning of the process. “Using this method, you’re able to confirm everything that has to happen on that repair the first day of the repair,” he said. “This allows everything to move steadily through the shop without stopping.” 5) Validate with the production coordinator, parts specialist and lead body technician
After the repair has been validated, Shoemaker said it’s time to develop a repair plan for the management system. “Having an accurate repair plan will help you create timelines for each step, monitor the progression and allow all involved to understand what needs to be done,” he said. “Having a solid repair production plan will help keep your customers properly informed and is the first step in having them completely satisfied when the job is complete.”
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CIF Elects Scott Walton as New Trustee
The Collision Industry Foundation (CIF) recently elected Scott Walton to the Board of Trustees to carry on the foundation’s initiatives throughout the coming years. Walton has been in the industry for more than 15 years. He joins CIF from Sherwin-Williams, where he has worked for more than 20 years in various responsibilities. Sherwin-Williams is a long-time supporter of philanthropic activities for organizations such as CIF. Trustee Casey Steffen (SaintGobain Abrasives) said, “Scott has been a supporter of CIF for quite some time, and we are happy to have him on board. His experience in strategic planning, budgeting and being well-connected in the industry will surely add to CIF’s ability to assist collision professionals in need. He will be fully involved in CIF’s gala, which is scheduled for Jan. 17, 2019 in Palm Springs, CA.”
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The Fabulous ‘50s
As the industry as we know it today was taking shape, it was composed primarily of skilled auto body craftsmen—artisans who knew how to work metal. However, many lacked the leadership and professional skills to deal with the more business-savvy insurance companies and the changing landscape. They were craftsmen, not businessmen. According to a report done in 1969, almost 10 percent of those in business during the 1949–1954 period refused to change with the times and the changing industry dynamics. Instead of changing, they became bitter and frustrated, allowing the industry to be permeated with low-paying or no-paying work. This later paved the way for early industry leaders, such as Silvie Licetra, to conduct business training courses in the early 1960s, which became popular. Then, according to the industry veteran, from 1954–1959 things started to go downhill. Insurance
companies found it difficult to find good appraisers. They were illtrained and not experienced. They became argumentative. Out of frustration, this was the period auto body associations, some around since the early 1940s, began to be more prevalent. The only problem was that those shop owners in the association would say one thing at the association meetings and do the opposite at their shops the very next day. Shop owners began to ask insurance companies to be their “shop of choice,” setting the stage for the future DRP concept. As an incentive to the insurance companies, some shops offered a 10 percent parts discount on claims. However, many made the offer “tongue-in-cheek,” knowing that they would increase the labor charges to make up for it. Thus, the insurance company demand for parts discounts was on. Prior to this time, body lead was required to fill small imperfections in sheet metal. The lead was sold in 1pound bars, 20 bars to a box. It was heated and turned into a molten form, then worked into a fender or other sheet metal panel with a wooden
spoon. It worked pretty well. But by about 1955, health and environmental issues raised with the use of lead spelled its demise. A Mr. J.C. O’Donnell invented body filler in 1955, but it would take another year before it was referred to as plastic body filler. Next to the development in 1956 of acrylic lacquer by DuPont Company and Rinshed-Mason, plastic body filler was one of the most profound developments of the collision repair world in the ‘50s. It didn’t take long before many simply referred to all plastic fillers by one of its most popular trade names: bondo. Plastic fillers were easier to use, enabling the shop to make a cheap and fast repair. The problem was, however, that early plastic fillers sometimes fell off the car, prompting either a redo of the repair or a very angry customer—or both. O’Donnell went on to found the Unican company on July 31, 1962, which is wellknown for its variety of body filler products. By the mid-1950s, the collision repair industry as we know it today was in full swing.
WIN Announces Opening of Most Influential Women Nominations
The Women’s Industry Network (WIN®) recently announced that nominations for the prestigious Most Influential Women (MIW) awards will open on Thursday, Nov. 1, 2018 and be accepted through Monday, Jan. 14, 2019. The winners will be recognized at a gala during the 2019 WIN Educational Conference being held May 6–8, 2019 in Fort Lauderdale, FL. Nominations of women working in any segment of the collision repair industry across the United States and Canada are welcomed. “I’d like to encourage you to nominate the women in our industry who you know are making a positive difference in their companies, communities and/or the industry at large,” requested Cheryl Boswell, who co-chairs WIN’s MIW Committee and was also named a MIW in 2015. “The MIW nomination process is a great way to recognize deserving women and let them know they are making a difference.” Since its inception in 1999, the Most Influential Women program has recognized more than 90 54
women who have enriched the collision repair industry with their leadership, vision and commitment to excellence. WIN acquired stewardship of the Most Influential Women program in 2013 and continues to evolve the program to align with WIN’s mission of “driving the future of collision repair by attracting, developing and advancing women.” “It is important to recognize women for their leadership. This award focuses on four areas: industry influence, professional accomplishments, mentoring and support for others in the collision repair industry, and going beyond the requirements of their professional lives to give back to their communities,” commented Michelle Sullivan, WIN chair and 2016 MIW honoree. Additional information about the MIW program and the 2019 nomination form can be found on the WIN website at http://www .womensindustrynetwork.com.
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DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
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autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
55
Fake Recall Notices Get Car Dealers in Trouble With FTC by David A. Wood, CarComplaints.com
We thank CarComplaints.com for reprint permission.
Fake recall notices have caused DCarea car dealers to settle a Federal Trade Commission (FTC) complaint that accuses the dealerships of mailing more than 21,000 fake “urgent recall” notices to consumers in 2015 and 2017. According to the FTC, the dealers and a marketing firm agreed to settle the deceptive advertising charges that allege the notices were mailed to convince car owners to visit the dealerships. The car dealers do business as Passport Toyota, Passport Nissan of Alexandria, VA, and Passport Nissan of Marlow Heights, MD. The marketing company, Temecula Equity Group, LLC, does business as Overflowworks.com and is located in California. Considering the huge number of vehicles on the roads that have open (unrepaired) recalls, the government has taken measures to combat fake recall notices sent by companies to convince owners to visit dealerships.
The National Highway Traffic Safety Administration (NHTSA) estimates 30 percent of drivers completely ignore recall notices, even if the safety defects could cost lives. In 2014, NHTSA announced that all manufacturers must use distinctive labels for recall mailings to consumers, using white, uppercase letters against a red background.
According to NHTSA, the recall label is intended to “help protect consumers from misleading sales and marketing materials that mimic, in their wording and presentation, legitimate safety recall alerts from manufacturers that can lead owners to purchase costly products and services that have no connection to a le-
gitimate safety recall.” However, the FTC says the DCarea car dealers sent fake recall notices that used the same color scheme as official notices sent by automakers. The government says the vast majority of vehicles covered by the fake recall notices did not have open recalls, even though the notices said, “URGENT RECALL NOTICE” in large, boldfaced uppercase letters. On the reverse side, it said, “VEHICLE RECALL NOTICE” and “WARNING” in large red and black boldfaced, uppercase letters on a white background. The FTC complaint alleges Passport first sent about 7,000 Toyota fake recall notices in 2015, and then the dealers sent about 14,000 notices to Nissan customers in June 2017. Those fake notices were mailed even though numerous complaints were made after the first notices were sent in 2015. The government says hundreds of vehicle owners contacted the Passport dealerships and were told the cars needed to be brought to the dealers to learn whether the cars had
unrepaired recalls. In addition, the FTC says some of those car owners paid for repairs that had nothing to do with recalls. While the FTC alleges the notices were mailed to increase business at the service departments of the dealerships, Passport claims the fake recall notices were mailed in an attempt to “correct unrepaired vehicles subject to a recall and it was not our intention to mislead anyone.” But although Passport says it mailed the notices to “correct unrepaired vehicles subject to a recall,” the company also says “open recalls were unavailable to Passport or other dealerships.” Passport further says the language used on the fake recall notices “was not created by Passport—it was originated by a California company unrelated to our business.” By agreeing to settle the allegations, Passport and Temecula Equity Group are “permanently prohibited from misrepresenting, expressly or by implication: 1) whether any motor vehicle is subject to an open safety recall or service campaign, or 2) certain other material facts about motor vehicles.”
Continued from Page 50
WINner’s Mindset
everything in your life. Failure is a necessary part of the success process. You can’t have real success in your life unless you fail.” Concluding the webinar, Luehr shared a poem called “Our Deepest Fear,” written by Marianne Williamson. It begins, “Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness, that most frightens us.” Luehr reiterated, “Right now is the best time in history to be in the collision repair business!” before opening for questions from attendees. For more information on WIN, visit womensindustrynetwork.com. For more information on Luehr and Elite Body Shop Solutions, visit elitebody shopsolutions.com
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UPDATED DAILY 56
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autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
57
Number of Flooded Cars on the Road Jumps 47% Over Past Year That figure is a 47 percent increase— more than 150,000 additional cars— from 2017, when hurricanes Harvey and Irma devastated the Gulf Coast and Southeast. With two major hurricanes impacting the U.S. this year, the number of flooded cars cleaned up and resold will likely grow. CARFAX estimates that at least 107,000 vehicles were damaged during Hurricane Florence. To help protect consumers, CARFAX is letting them check for reported flood damage free of charge at CARFAX.com/flood. Vehicles reported as flood-damaged by a state’s Department of Motor Vehicles (DMV), Canadian province, insurance companies and more are in use in every state. These 10 states have the most flood-damaged vehicles (percent increase over 2017): 1. 2. 3. 4. 5. 6. 7. 8. 9.
Texas – 168,600 (230%) Florida – 34,400 (79%) Pennsylvania – 22,100 (11%) Kentucky – 21,700 (36%) Louisiana – 16,800 (-42%) Illinois – 15,500 (3%) South Carolina – 13,500 (4%) North Carolina – 12,400 (-5%) New Jersey – 11,900 (5%)
10. Michigan – 11,600 (6%)
The top five metropolitan areas with the most previously flooded cars back in use are Houston, New York City, Miami, Philadelphia and Dallas. “Our data suggests that severe weather events, especially historic ones like Harvey and Irma, have a nationwide impact. This surge in flood cars also underscores the importance of identifying these waterlogged wrecks before it’s too late,” said Dick Raines, president of CARFAX. “Flood cars can resurface no matter where you live, so we urge car buyers and sellers to use the resources available that will best protect them. Vigilance is key; start with a vehicle history report, mechanic’s inspection and thorough test drive to help prevent con men from ripping you off.” There are safety, health and financial concerns about flooded cars. Water can compromise the mechanical, electrical and safety systems of a vehicle, turning them into ticking time bombs. Hazardous mold and bacteria may develop in the soft parts of the car. Additionally, unsuspecting buyers often pay thousands more than a flooded car is worth.
CREF Receives $100,000 Donation From Allstate Insurance
Allstate Insurance Company has continued its strong commitment to the future of the collision industry by contributing $100,000 to the Collision Repair Education Foundation.
Industry donations such as Allstate’s assist the Foundation in its ability to support high school and college collision school programs, instructors and students nationwide. “Collision repair education is exceptionally important in preparing the next generation of technicians,” said Allstate Claims Vice President Dave Prejna. “Contributing to the Collision Repair Education Foundation is an investment in the future and something we take great pride in at Allstate.” “Allstate’s continued support 58
has allowed the Collision Repair Education Foundation to support collision schools that graduate students who are productive, efficient and capable staff members [from] day one on the job within the collision industry,” said Clark Plucinski, executive director of the Collision Repair Education Foundation. “As repair facilities are seeking the next generation of technicians who will be safely repairing consumers’ collision-damaged vehicles, Allstate’s support assists in our ability to help high school and post-secondary collision instructors provide a quality technical education to their students.”
Industry members interested in joining the Collision Repair Education Foundation’s roster of supporters to assist high school and post-secondary collision school programs and students should contact Brandon Eckenrode, the Education Foundation’s director of development, at (312) 2310258 or Brandon.Eckenrode@edfoundation.org.
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
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AutoNation Embarks on New Parts Path by Gary Ledoux
The current dynamic for the collision repair industry is that parts have always been sourced from separate OEM & aftermarket providers. As a result of growing utilization of aftermarket parts, franchise dealers may have seen erosion of their OEM parts sales. “When an OE dealer’s parts department receives a collision parts order from a body shop, they only get 50 to 60 percent of what that car needs for replacement parts. The rest of the order, and the parts profit it generates, goes to the aftermarket or salvage,” said Tom Calloway, Vice President of Customer Care and Corporate Operations for AutoNation in a recent interview with Autobody News. AutoNation wanted to capture a greater share of the wholesale collision parts market, so it embarked with a new vision and business model to serve the collision repair industry. The goal: leverage its scale and expertise to deepen its market share by complementing the current OEM collision parts offering with aftermarket parts as well.
So in 2017, AutoNation set off to build the structure for its new offering – from sourcing and transporting parts from overseas to expanding its current wholesale distribution network to serve its cus-
Tom Calloway, Vice President of Customer Care and Corporate Operations for AutoNation
tomers. In keeping with the moniker of America’s largest automotive retailer, AutoNation continued to put
COLLISION
by Gary Ledoux
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expanded OE/aftermarket parts solution has also helped its own collision network become more efficient. “One of our biggest customers to benefit from this is our own network of 80+ collision shops.” How has the industry embraced the new solution? Calloway explained that its own AutoNation collision centers, as well as current customers, like the new consolidated concept of OE and aftermarket, and early adoption is already demonstrating tangible benefits. Customers now reap the benefit of a new solution in the marketplace, supported by a backbone of experienced parts experts providing worldclass service. Calloway explained AutoNation’s reason for making this pioneering change. “With the marriage of OE and now aftermarket parts, we feel like we’ve created a winning combination for our customers, from MSOs to independents. By offering this new solution in the market, our network is creating efficiencies for doing business and enabling customers to lower costs. When they know ‘One Call Does it All,’ that’s a powerful partnership.”
AutoNation Launches New Theme Vehicle for Breast Cancer Awareness
The RIGHT
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its scale to work in expanding its parts network. “With over 300 locations nationwide, representing most major brands, we were well positioned to take the business to the next level when we expanded both our distribution network and our parts offering,” Calloway said. In early 2018, AutoNation launched its expanded aftermarket parts distribution network in Washington, Northern California, Phoenix, Memphis, Dallas-Fort Worth and Orlando, with more markets scheduled for 2019. They also integrated into the industry’s top electronic ordering platforms. Along with the two-pronged offering of OE and aftermarket parts, AutoNation is supporting the new offering with single, consolidated deliveries. Although there are myriad logistics playing out behind the scenes, they will all be invisible to the shop ordering the parts. All they will see is the AutoNation truck delivering both their OE and aftermarket parts. Calloway explained that this will have a positive effect on a shop’s cycle time and margin improvement. Calloway commented that the
Every two minutes, a woman is diagnosed with breast cancer. AutoNation has a deep commitment through its Drive Pink initiative, and is committed to drive out cancer, through awareness and critical research. AutoNation is a proud supporter of the Breast Cancer Re-
Saint George 1405 S. Sunland Dr.
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Robin Adkison, also known as “Robin1000,” a street artisan turned custom vehicle painter, stands with this year’s AutoNation theme truck.
search Foundation and other cancer-related charities. Since 2013, AutoNation has raised and donated over $16 million to fund cancer research and treatment from coast to
coast. This year’s Drive Pink themed vehicle is a new Toyota 4Runner painted with … of all things … spray cans. Debuting such a vehicle at SEMA seems almost odd in a world of high-quality paint and exotic application processes. But you can’t argue with the results. Texasbased Robin Adkison, better known in the world of street artisans as “Robin1000,” was busy painting street murals on sidewalks and on the sides of buildings when he was selected by celebrity and vehicle builder/designer Jeff Allen with Flat 12 Gallery to paint AutoNation’s themed vehicle. “I’ve been painting and drawing since I was a little kid,” said Adkison. “I’ve used pencils, oil paints on canvas and spray cans on brick and concrete, but this was the first time using ‘rattle-cans’ on steel.” The vehicle was completely stripped of its finish, then, over the course of three days, Adkison went to town with spray cans. “[There’s] a fine line between graffiti and art,” Adkison said. “This is definitely art.”
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Why Are Thieves Stealing Airbags From New Honda Civics and Accords? by Jay Traugott, CarBuzz
If you own a late-model Honda Civic or Accord, or any relatively new Honda or Acura model, you might want to pay attention to this. Perhaps it’s already too late for some. According to USA Today, criminals across the U.S. have been stealing airbags out of late-model Hondas to resell on the black market, be it online or to shady local repair shops. Both the driver and front passenger airbags are being targeted. Law enforcement agencies in cities such as New York, Miami and the Washington DC area have noticed an increased number of Honda airbag thefts lately. However, this is also a nationwide issue. Unfortunately, this type of theft is not easy to track because both the FBI and the National Highway Traffic Safety Administration don’t track airbag theft. The National Insurance Crime Bureau estimates about 50,000 airbags are stolen every year. However, the NICB doesn’t track specific trends, such as Hondas specifically being targeted for their airbags, so it’s
unable to provide an answer as to why this automaker is a higher risk. In Miami-Dade County, for example, thieves stole 875 airbags last year. In 2013, only 13 airbags were stolen. In the Virginia suburbs around DC, thieves recently smashed the windows of 10 Hondas at an apart-
ment building complex for the specific purpose of stealing the airbags. Turns out, some Honda airbags can go for as much as $500 a pop at chop shops. “Because of their portability, airbags can be easily removed and installed as ‘new’ by unscrupulous collision repair shops,” the NICB said. “These dishonest operators will then charge the vehicle owner or their insurer the full price for the replacement, thus committing insurance fraud.” We thank CarBuzz for reprint permission.
AWAF Workshop Focuses on Finance, Accounting for the Non-Financial Manager by Chasidy Rae Sisk
On Oct. 19, the Automotive Women’s Alliance Foundation (AWAF) hosted its Fall 2018 Professional Development Workshop at the VisTaTech Center at Schoolcraft College in Livonia, MI.
Titled “Finance and Accounting for the Non-Financial Manager,” the four-hour workshop was taught by Jean Stenger, CPA and senior manager at DKSS CPAs and Advisors as well as treasurer for AWAF. Stenger’s educational, interactive and fun workshop focused on understanding the fundamentals of accounting and finance. She discussed how to read and understand critical financial reports as well as how to spot red flags and how to 60
use these reports to answer key questions about investments, business growth and more. Stenger also taught attendees to budget to add value, covered KPIs and lectured on projecting cash flow. Stenger stressed, “Own your financial statements. Know your number, talk your numbers and use your numbers to define your future—both professionally and personally. Become confident in your knowledge of the numbers, and never be afraid to ask questions!” Attendees included small business owners, professionals and managers in engineering, sales, program management, finance, purchasing, education and training. Participants agreed that the information Stenger shared was valuable, and interest was expressed in scheduling a fullday workshop on this topic.
For more information about AWAF and its events, visit awafoundation .org.
www.autobodynews.com
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
CREF Fundraiser Co-Hosted by PPG Raises $130,000 The annual Collision Repair Education Foundation industry fundraiser, co-hosted by the automotive refinish business unit of PPG, raised $130,000 through the support of attendees and sponsors.
Sponsors and participants enjoyed a day of golf at the Trophy Club of Apalachee in Dacula, GA, on August 6, 2018. The funds raised from this event will go toward supporting scholarships and grants for collision schools and students. “PPG is proud to support an event of this caliber,” said Tom Wolf, PPG director of business development, automotive refinish. “It’s an honor to bring together industry professionals from around the country and to assist the foundation in making sure that collision repair students are well-prepared for entering our industry. With the Education Foundation staff working towards another great event
next year, I encourage industry members to participate through a sponsorship, by attending or by donating items for the raffle table and silent auction. This is a wonderful and important investment in our industry’s future.” “Through the generous support of sponsors, attendees and volunteers from the Atlanta I-CAR committee, we had another great golf fundraiser event that will increase the Education Foundation’s ability to support high school and college collision school programs. We must extend a special thanks to the automotive refinish professionals at PPG for their continued co-sponsorship of the event,” said CREF Director of Development Brandon Eckenrode. Next year’s event will take place July 23 in Indianapolis, IN, in conjunction with the events surrounding the Collision Industry Conference. Individuals and companies interested in getting involved with next year’s fundraiser should contact Eckenrode at (312) 231-0258 or Brandon.Eckenrode@ed-foundation .org.
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