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Vol. 37 / Issue 5 / May 2019
Body Shop Owner ‘Tired & Sick’ of Lack of Accountability From CDI, Insurers
Rick Johnson Named CAA’s Newest Executive Director
by Ed Attanasio
by Ed Attanasio
Most of us are probably familiar with this famous line screamed by a TV ex-anchorman while on air in the film “Network” (1976): “I’m mad as hell, and I’m not going to take it anymore!” Doug Marshall, the owner of Autotrends in Oakland, CA, can relate. He has filed more than 100 complaints with the California Department of Insurance (CDI) in the last decade with little satisfaction. He reached his breaking point after a recent case involving Farmer’s Insurance.
He eventually won the case on behalf of his customer, but Marshall isn’t happy about how it went down. “All I want them to do is what they’re supposed to do,” he said. “The insurance companies know that there is no accountability or enforcement, so they aren’t worried about them. It’s a complete waste of time, and that’s why I have been filing fewer complaints altogether within the past two years.” Most shops don’t have the time to file complaints and go to court. There is the fear factor as well. See Tired & Sick, Page 6
Sponsor, Repairer: Texas Insurer-OEM Procedure Bill Needed to Give TDI Power by John Huetter, RepairerDrivenNews.com
The bill’s sponsor and the head of the Auto Body Association of Texas told a Texas House Insurance Committee on April 9, that House Bill 1348 was necessary following what they said was the Texas Department of Insurance’s view that it was powerless to check certain insurer behavior. HB 1348 will hold insurers to OEM repair procedures. It declares that a carrier can’t “disregard a repair operation or cost identified by an estimating system, including the system’s procedural pages and any repair,
process, or procedure recommended by the original equipment manufacturer of a part or product.” In addition to demanding insurers acknowledge repair procedure, the bill defines “(r)easonable and necessary amount” as “the amount determined by the original equipment manufacturer’s manufacturer and estimating systems required to repair a vehicle to the condition before the covered damage to the vehicle occurred.” It also defines “like kind and quality” for aftermarket parts and adSee TDI Bill Page 4
Rick Johnson, a former body shop owner who has been a leader in the collision repair industry for nearly 40 years, was named the new executive director of the California Autobody Association (CAA). After a statewide search for new leadership, Johnson recently accepted the position and is already formulating new and exciting plans for the future of CAA. Johnson has been involved with CAA since 1980 and is coming out of semi-retirement to assume the leadership role. “I have seen CAA grow as this industry has changed in many ways,
so I know how the organization can help body shops in the state on many levels,” Johnson said. “Adapting to those changes and embracing new technology to stay connected with our members and attracting new people are [some] of our main goals. I was CAA president in 1999, a board member for eight years and I ran its CARPAC for a decade, so I have an inside perspective of what’s going on within the organization and know how to motivate others to get onboard and achieve our goals.” CAA began looking for a new executive director starting at the end of 2017 to replace David McClune, who retired. Don Feeley stepped See Rick Johnson, Page 23
Truck Topics is a new series of articles by Gary Ledoux to appear periodically in Autobody News covering the collision side of the heavy-duty truck market, see pp. 50 & 66
APCIA: OEM Procedure Bill Lacks Provision Preventing Body Shops Committing Fraud in Texas by John Huetter, RepairerDrivenNews.com
An APCIA representative on April 9 testified against a Texas bill compelling insurers to pay for the cost of repairs done to automaker specifications, arguing that the measure lacked confirmation body shops used them and suggesting some repairers might lie about it. American Property Casualty Insurance Association state government relations Vice President Joe Woods’ questionable testimony opposing House Bill 1348 also described adjusters as the line of defense for repair quality. HB 1348 will hold insurers to OEM repair procedures. It declares
that a carrier can’t “disregard a repair operation or cost identified by an estimating system, including the system’s procedural pages and any repair, process, or procedure recommended by the original equipment manufacturer of a part or product.” In addition to demanding insurers acknowledge repair procedure, the bill defines “(r)easonable and necessary amount” as “the amount determined by the original equipment manufacturer’s manufacturer and estimating systems required to repair a vehicle to the condition before the covered damage to the vehicle occurred.” It also defines “like kind and See APCIA Opposition Page 4
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MAY 2019 AUTOBODY NEWS / autobodynews.com
CONTENTS REGIONAL
for Shops Dealing with ADAS with
ASA Northwest To Host May Meetings, Events . 29
Sublet Vendors, Insurers . . . . . . . . . . . . . . . 46
ASA Northwest’s ATE 2019 Sells Out for
Near San Benito, CA, County Line . . . . . . . . 12 Ben Clymer’s the Body Shop Donates Car to Yucaipa, CA, Family . . . . . . . . . . . . . . . . . 16 Body Shop Owner ‘Tired & Sick’ of Lack of Accountability From CDI, Insurers . . . . . . . 1 CAA Hosts ‘Why You Should Be Scanning’ . . . . 17 Couple Found Dead in Long Beach, CA, Auto Body Shop; Parents Suspect Murder-Suicide . . . . . . . . . . . . . . . . . . . . . . 30 Gerber Collision & Glass Acquires 7 Repair Centers in OR, WA . . . . . . . . . . . . . . . . . . . . 30 Gerber Collision & Glass Acquires Location in WA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 NABC Recycled Rides Donates Car to Prunedale, CA, U.S. Army Veteran . . . . . . . . 11 Permit Granted for CARSTAR Yokum’s Body Shop in Ukiah, CA. . . . . . . . . . . . . . . . 17 San Jose, CA, Veteran I-CAR Instructor Looks Back at 36 Years of Teaching . . . . . . 24 Santa Cruz, CA, Collision Repair Lifer Celebrates 2 Anniversaries . . . . . . . . . . . . . 18 Santa Cruz, CA, Identifies Parking Lot for Pilot Safe Sleeping Site . . . . . . . . . . . . . . . . 26 Technical Careers High School in ID Prepares Car To Be Donated to Family in Need. . . . . . 28
NATIONAL ‘ToyMakerz’ Star David Ankin Introduces Kids
Anderson - Industry Misses 2 Important Aspects of John Eagle Collision Case . . . . . 44 Attanasio - From Rock Star to Crash Star . . . . 48 Ledoux - The 1970s - Part 1 - The Collision Industry Starts to Mature . . . . . . . . . . . . . . 42 Ledoux - Truck Topics 1: HD Events Address Collision Issues . . . . . . . . . . . . . . . . . . . . . . 50 Ledoux - Truck Topics 2: Truck Vs. Auto Collision Repair – An Overview . . . . . . . . . . 66 NORTHEAST 2019 Features OEM Panel on
www.autobodynews.com
to Custom Vehicle-Building Process . . . . . . 72
in Shops Billing (& Being Paid) for Masking for Priming . . . . . . . . . . . . . . . . . . 73 Accuvision-3D Measuring Approved by APN . . 29 American Honda Enjoys Success at NORTHEAST 2019. . . . . . . . . . . . . . . . . . . . 35 APCIA: OEM Procedure Bill Lacks Provision Preventing Body Shops Committing Fraud in Texas. . . . . . . . . . . . . . . . . . . . . . . . 1 Auto Industry: Blocking Trade With Mexico Would Be Disruptive . . . . . . . . . . . . . . . . . . 76 Autonomous Cars Can't Recognize Pedestrians With Darker Skin Tones . . . . . . . . . . . . . . . . 32 BMW Recalls 183,000 Vehicles for Takata Airbag Inflators . . . . . . . . . . . . . . . . 76 CARSTAR Conference To Be Held July 10–12 . . 54 Color Match 101: A Visit to Axalta’s Customer Experience Center. . . . . . . . . . . . 68 GEICO Files Lawsuit Against Auto Glass Shop Suspected of Fraud . . . . . . . . . . . . . . 76 Honda, Acura Recall 1.1 Million Vehicles Over Takata Airbags . . . . . . . . . . . . . . . . . . 70 House Republicans Push for Action on Self-Driving Vehicles Bill . . . . . . . . . . . . . . . 74
Auto Glass Customers? . . . . . . . . . . . . . . . . 74 IACA Marches Into Spring With Industry Education . . . . . . . . . . . . . . . . . . . . . . . . . . 28 KSI Donates $250,000+ to Support CREF’s Mission . . . . . . . . . . . . . . . . . . . . . . 55 Legislation To Enhance Cybersecurity Training . 30 Marcia Seebachan Joins Shops to Back Insurer-OEM Procedure Legislation in Texas . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Matrix Wand Joins CIECA as Corporate Member . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
‘The Changing Landscape in Certified
Modules Added to Estimatescrubber.Com . . . . 30
Repair’ . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
New Car Technology Benefits Drivers, But
Phillips - Best Practices When Interpreting
AUTOBODY
ltedesco@autobodynews.com
‘Who Pays for What?’ Surveys Find Growth
How Will These Recalls Impact Your COLUMNISTS
800-699-8251
How Does It Affect Body Shops? . . . . . . . . . 52
INDEX OF ADVERTISERS
6th Straight Year . . . . . . . . . . . . . . . . . . . . . 10 Autonomous Vehicle Testing Facility Planned
Advertise in our Classified Section for $50 per column inch!
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 Alaska, California, Hawaii, Idaho, Montana, Nevada, Oregon, Washington and Wyoming. Autobody News is a monthly publication for the collision industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2019 Adamantine Media LLC.
Accuvision-3D . . . . . . . . . . . . . . . . . . . . . . . . 24
Industrial Finishes and Systems . . . . . . . . . . . 80
Alloy Wheel Repair Specialists, LLC . . . . . . . . 35
Kearny Mesa Subaru-Hyundai . . . . . . . . . . . . 54
Anchorage Chrysler-Dodge-Jeep-Ram. . . . . . 22
Kia Motors Wholesale Parts Dealers . . . . . 64-65
Audi Burlingame . . . . . . . . . . . . . . . . . . . . . . 47
Kia of Carson . . . . . . . . . . . . . . . . . . . . . . . . . 46
Audi Wholesale Parts Dealers. . . . . . . . . . . . . 75
Laramie Auto Center . . . . . . . . . . . . . . . . . . . 34
AutobodyLaw.com . . . . . . . . . . . . . . . . . . . . . 32
Launch Tech USA. . . . . . . . . . . . . . . . . . . . . . 79
AutoNation Chrysler-Jeep-Dodge-Ram-Fiat . . 28
Malco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Axalta Coating Systems . . . . . . . . . . . . . . . 5, 17
Mazda Wholesale Parts Dealers . . . . . . . . . . . 60
Blowtherm USA . . . . . . . . . . . . . . . . . . . . . . . 37
Mercedes-Benz . . . . . . . . . . . . . . . . . . . . 13, 25
BMW Wholesale Parts Dealers . . . . . . . . . . . . 66
Mercedes-Benz Wholesale Parts Dealers . . . . 68
Car Pros Kia. . . . . . . . . . . . . . . . . . . . . . . . . . . 6
MINI Wholesale Parts Dealers. . . . . . . . . . . . . 68
Chrysler-Dodge-Jeep-Ram of Seattle. . . . . . . 21
Mitsubishi Wholesale Parts Dealers . . . . . . . . 60
Classifieds . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
MOPAR Wholesale Parts Dealers . . . . . . . . . . 45
Collision 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Moss Bros. Chrysler-Jeep-Dodge. . . . . . . . . . 33
Colortone Automotive Paints . . . . . . . . . . . . . 26
Nissan/Infiniti Wholesale Parts Dealers. . . . . . 71
Courtesy Chevrolet San Diego . . . . . . . . . . . . 55
Pacific Best, Inc. . . . . . . . . . . . . . . . . . . . . . . 30
Cutter Chrysler-Dodge-Jeep-Ram . . . . . . . . . 36
Penske Hyundai . . . . . . . . . . . . . . . . . . . . . . . 50
Dave Smith Motors . . . . . . . . . . . . . . . . . . . . 63
Porsche Burlingame. . . . . . . . . . . . . . . . . . . . 47
DCH Auto Group Temecula . . . . . . . . . . . . . . . 48
Porsche Wholesale Parts Dealers . . . . . . . . . . 58
Dent Fix Equipment . . . . . . . . . . . . . . . . . . . . 51
PPG Refinish . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Dent Magic Tools . . . . . . . . . . . . . . . . . . . . . . 18
Prima Welds, Inc . . . . . . . . . . . . . . . . . . . . . . 10
Diamond Standard Parts . . . . . . . . . . . . . . . . 53
Puente Hills Subaru . . . . . . . . . . . . . . . . . . . . 52
Downtown Motors of LA (Audi, VW) . . . . . . . . 61
Sandberg Volvo Cars . . . . . . . . . . . . . . . . . . . 38
Eckler’s Automotive . . . . . . . . . . . . . . . . . . . . 31
SATA Dan-Am Company . . . . . . . . . . . . . . 14-15
ECS Automotive Concepts . . . . . . . . . . . . . . . 11
Sierra Chevrolet-Honda-Subaru . . . . . . . . . . . 49
Enterprise Rent-A-Car . . . . . . . . . . . . . . . . . . 44
Spanesi Americas . . . . . . . . . . . . . . . . . . . . . 16
Equalizer Industries, Inc. . . . . . . . . . . . . . . . . 43
Subaru Wholesale Parts Dealers. . . . . . . . . . . 67
First Auto Group. . . . . . . . . . . . . . . . . . . . . . . 56
Symach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Ford of Kirkland . . . . . . . . . . . . . . . . . . . . . . . 21
Tacoma Dodge-Chrysler-Jeep-Ram . . . . . . . . 39
Ford Wholesale Parts Dealers. . . . . . . . . . . . . 69
The Bay Area Automotive Group . . . . . . . . . . . 59
Autobody News P.O. Box 1516 Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com
& Documenting Scan Data, Trouble
Payscape, SCRS Partner on Member Benefit . . 35
Galpin Motors . . . . . . . . . . . . . . . . . . . . . . . . 57
Tonkin Parts Center . . . . . . . . . . . . . . . . . . . 8, 9
Codes & Calibrations. . . . . . . . . . . . . . . . . . 60
PPG Honors CHC Paint & Body Shop Supplies . 36
Glenn E. Thomas Dodge-Chrysler-Jeep . . . . . 19
U.S. Chemical & Plastics . . . . . . . . . . . . . . . . . 7
Pre-Scans & Post-Scans Are Required for All
GM Wholesale Parts Dealers . . . . . . . . . . . . . 77
USI of North America . . . . . . . . . . . . . . . . . . . 27
Honda-Acura Wholesale Parts
Vintage Flatz/Cumberland Products . . . . . . . . 42
Registration Is Open for AAPEX 2019. . . . . . . . 23 Rick Johnson Named CAA’s Newest Executive Director. . . . . . . . . . . . . . . . . . . . . 1 Sisk - ASA’s ‘Washington Watch’ Webinar Features Industry Association Leaders . . . . 56 Yoswick - Panel Discusses Strategies
Collision-Damaged Vehicles, OEMs Say. . . . 20 Speak at CIECA CONNEX 2019 in Charlottesville, VA . . . . . . . . . . . . . . . . . . . . 74 Sponsor, Repairer: Texas Insurer-OEM Procedure Bill Needed to Give TDI Power . . . . . . . . . . . . 1
Dealers . . . . . . . . . . . . . . . . . . . . . . . . 40-41
Volkswagen Wholesale Parts Dealers . . . . . . . 62
Hyundai of Kirkland . . . . . . . . . . . . . . . . . . . . 21
Volvo Wholesale Parts Dealers . . . . . . . . . . . . 72
Hyundai of Seattle . . . . . . . . . . . . . . . . . . . . . 21
YesterWreck . . . . . . . . . . . . . . . . . . . . . . . . . 12
Hyundai Wholesale Parts Dealers . . . . . . . . . . 73
autobodynews.com / MAY 2019 AUTOBODY NEWS
3
Continued from Cover
TDI Bill
dresses steering and questionable prevailing rate surveys. Bill sponsor state Rep. Travis Clardy, R-Nacogdoches, told the committee during his introduction of HB 1348 that he had thought steering and other issues including repairs were addressed in statute. However, the Texas Department of Insurance said it didn’t have enough specifics within existing law to deal with it Clardy said he had a “fundamental disagreement” with the TDI’s view of itself, arguing it should be an “advocate” and “protector” of consumers over insurers rather than a “go-between” for the two. Continued from Cover
APCIA Opposition
quality” for aftermarket parts and addresses steering and questionable prevailing rate surveys. Woods told the Texas House Insurance Committee on Tuesday that no regulation confirms collision repairers will use the OEM repair procedures they’re billing for. “They’re gonna charge a $250 blueprint fee, which (they) do now,” Woods said, defining this as the time spent researching repair procedures. “They’ll do that, but there’s no guarantee anywhere that they actually will do that,” he said. “And most of ’em are gonna actually follow— I mean, 98, 99 percent are gonna follow the manual step by step. But you’re still gonna have folks out there that will glue a roof on, cover up the work, and send it back out on the road.”
Fraud and un-‘workmanlike’ behavior Woods is essentially arguing that because 1-2 percent of shops commit fraud, insurers shouldn’t be required to reimburse consumers who patronize the honest 98-99 percent of shops billing for OEM repair procedures they execute. Let’s take it a step further for the sake of argument. The Insurance Information Institute reports a mix of vendors and consumers contribute to what is an approximate 10 percent of 4
But in deference to the agency’s comments, Clardy was trying to provide that specificity in the bill, he said. Lawmakers had a chance to give TDI the authority to “do the right thing” with HB 1348, Clardy said. “We have exhausted every effort before we came here” with the bill, Auto Body Association of Texas President Burl Richards (Burl’s Collision Center) told the committee during the hearing. He mentioned three separate meetings with the TDI in 2018. “We continually were told that TDI has no jurisdiction, they have no authority and ‘You’re gonna have to pass legislation,’” Richards said. Richards said he was told repeatedly that TDI doesn’t recognize or enforce prevailing rate language but allows the term to appear in policies.
He said he was instructed to provide definitions. HB 1348 inserts a definition in state law that holds a “(p)revailing rate” to be a “transparent and unbiased” one “conducted by a third party” that uses the “posted retail labor rates and not direct repair program shop rates that operate under a contract with an insurer.” American Property Casualty Insurance Association state government relations VP Joe Woods argued that by excluding DRP rates, the law could capture “only the highest rates.” Houston Auto Body Association President John Kopriva (Kopriva Body Works) said DRP shops’ rates were excluded because those rates were part of an agreement with insurers. Repairers in direct repair pro-
grams often agree to artificially deflate direct repair program rates in exchange for a crack at referral volume from the insurers, so it’s apples-to-oranges to treat them as a reflection of the broader market. To use an example from another industry: If one hotel in town cuts a deal with a convention to rent a block of rooms for $100 less to lock in that business, it’s not like it’s reasonable for an average tourist to demand or expect to pay $100 less at every other hotel in town with no such guaranteed revenue stream. TDI was not among the agencies which responded to a Society of Collision Repair Specialists inquiry of every state department of insurance regarding regulators’ views of OEM repair procedures, based on the trade group’s website.
loss costs being fraudulent across all insurance lines. Pretend that all auto insurance policyholders are completely honest and the entire 10 percent of loss fraud is committed by body shops. Woods’ argument still falls apart. Ninety percent of collision repairers and 100 percent of consumers still deserve to be covered frictionlessly for following the repair procedures developed by the manufacturer of the damaged car. Woods’ argument also backfires with a reference to the Seebachan v. John Eagle Collision center case, in which a Texas jury found a body shop responsible for much of the severity of a Honda Fit crash because the facility adhesive-bonded the vehicle’s roof. Jurors awarded $31.5 million; the plaintiffs and shop later settled for an unspecified amount. John Eagle Collision Center body shop director Boyce Willis in a deposition had agreed the facility bonded the roof with 3M 8115 adhesive despite little concrete evidence or engineering knowledge to support the decision—particularly as 3M and Honda instructions state otherwise. Honda OEM repair procedures demand a shop tack-weld the front and rear corner edges of the new roof and then perform a combination of two- and three-plate spot welds and MIG plug welds. More than 100 welds are required by the manufacturer, plaintiff Marcia Seebachan told the committee during testimony supporting the bill.
“It is unconscionable that companies can undermine this process by approving insufficient repairs,” Seebachan told the committee Tuesday. She said two of her injuries should have killed her, and another could have. The John Eagle case clearly shows shops who fail to follow OEM procedures in Texas can face consequences. Woods also forgets other checks on shops deviating from repair procedures and the appalling ones who go a step further and bill for OEM procedures they never did. First and foremost, the III reports that insurance fraud is indeed a criminal offense in Texas. Body shops in the state also can be sued by a consumer for breach of express or implied warranty under the Texas Deceptive Trade Practices Act. The Texas Supreme Court in Melody Home Manufacturing Company v. Barnes nailed down a vendor’s responsibility. “We hold that an implied warranty to repair or modify existing tangible goods or property in a good and workmanlike manner is available to consumers suing under the DTPA,” the court wrote. It proceeded to define the concept and declare it unwaivable: We define good and workmanlike as that quality of work performed by one who has the knowledge, training, or experience necessary for the successful practice of a trade or occu-
pation and performed in a manner generally considered proficient by those capable of judging such work. We do not require repairmen to guarantee the results of their work; we only require those who repair or modify existing tangible goods or property to perform those services in a good and workmanlike manner. In this case, the breach of the implied warranty was plainly within the common knowledge of laymen and did not require expert testimony. The jurors had sufficient knowledge to find that the failure to connect a washing machine drain would not be considered good and workmanlike by those capable of judging repair work. Consistent with the trend in recent consumer protection legislation and sound public policy, we further hold that the implied warranty that repair or modification services of existing tangible goods or property will be performed in a good and workmanlike manner may not be waived or disclaimed. (Emphasis ours.) All three national collision trade groups and the national insurer and repair training organization I-CAR have said for years OEM repair procedures are the standard of care. Automakers, who develop repair instructions they’ve proven will fix the vehicles correctly, also hold shops should follow their procedures. Finally, some of the other 98-99 percent of shops Woods deemed hon-
MAY 2019 AUTOBODY NEWS / autobodynews.com
See APCIA Opposition Page 8
autobodynews.com / MAY 2019 AUTOBODY NEWS
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Continued from Cover
Tired & Sick
“Most body shops are afraid to speak out against the CA-DOI, and they don’t want to rock the boat because they’re afraid to lose their DRPs,” he said. “I’ve tried to get someone else to talk on the record about this, but they all get cold feet. They have told me off the record that they agree with me 100 percent, but they don’t want to get involved.” The final straw involved a recent case in which Marshall was embroiled for more than a year. It led to six different court appearances before he won. “I don’t really feel like I can say that we won because in the end, all we received was the money that was owed to us,” he said. “We got a 2014 Hyundai here, and it required a new quarter panel that we included in our initial estimate. Farmer’s denied it and when they lost, they appealed, so we had to wrestle with them after two months of back-and-forth. The car should have been here in the shop for 7–10 days max, but it sat here for 60 days and the storage fees kept adding up. They also tried to make us use aftermarket parts, but the third-party claimant wanted his car returned back to OEM. It was a huge waste of time to receive what we should have gotten from the start.” Marshall built his case by consulting I-CAR and providing supporting documentation. “I told the people at Farmer’s that they didn’t follow two insurance regulations, but that didn’t change anything,” he said. “Department regulations are being treated by the insurers like they never existed and they’re obviously not enforced. Both parties ignore emails and phone calls and the idea is to wear you down and give up, but they got the wrong guy. The insurance companies aren’t worried at all about CA-DOI, and they lean on each other to make sure nothing happens.” Marshall has had to explain CADOI regulations to both the department and insurers more than a few times, he said. “On several occasions, I have had to explain a CA-DOI regulation 6
to someone from an insurance company, and I can tell they’re completely unfamiliar with what I’m talking about. If they don’t even know the regulations, how can they possibly be enforced?” he said. Marshall isn’t satisfied with his most recent decision because he knows there will be more cases just like it right around the corner. “The CA-DOI is supposed to be here to protect the consumer, and that’s the whole purpose of the regulations, obviously,” he said. “Shops
often get caught in the middle, but in the end all we want to do is perform a good repair and be fairly compensated for it. Their policies say ‘preaccident condition,’ but then the insurers wrestle with us when we try to do that. I’m tired of fighting with them, but I guess it’s necessary if you’re a body shop trying to do business in California.” The real loser in all of this is the consumer due to the lack of enforcement by the CA-DOI, Marshall said. “We expect the insurance companies to cut costs and save money, but if they’re going to ask us to take shortcuts that result in unsafe vehicles out on the road, that’s wrong,” he said. Below is a departmental response from the California Department of Insurance: “The California Department of Insurance (CDI) cannot comment on specific cases; however it takes its regulatory role very seriously. “Over the past several years the department has adopted significant and strong regulations addressing such issues as aftermarket parts, reasonable repairs, anti-steering and labor rate surveys in order to ensure that insurance consumers (and the repair shops they use) receive a reasonable and fair payment from insurers in order to properly and safely repair their damaged vehicles. We also successfully fought back legislation last year that would have weakened the labor rate survey and anti-steering regulations. While
MAY 2019 AUTOBODY NEWS / autobodynews.com
these efforts did not solve every dispute that may arise, they have gone a long way toward leveling the playing field between insurers and collision repair shops. “Not every dispute between insurers and repair shops can be resolved by CD—especially if it involves a difference of opinion on operations or procedures that involve technical judgment, or if the facts are in dispute. More often than not, both of these factors are central in disputes that come to the department. We strive to be impartial, equitable and fair. “Contrary to Mr. Marshall’s assertion, our records reflect that Mr. Marshall filed significantly less than 100 complaints in the last 10 years. Also, we disagree with Mr. Marshall’s description of the specific case he outlines and CDI’s participation in that case. We also disagree that Mr. Marshall ‘had to explain CA-DOI regulations to both the department and insurers.’ CDI drafted and adopted these regulations and are fully versed in them. “Over the years, we have met
with Mr. Marshall on several occasions to discuss his cases and the claims laws in general. From our contact with Mr. Marshall, it appears he may disagree with how these regulations should be interpreted or may misunderstand which types of disputes fall with these regulations. While our regulatory authority does not extend to resolve all cases brought to our attention, CDI is able to resolve a significant number of disputes we receive from collision repair shops. We encourage repair shops to continue to contact us with these disputes so we can work to mediate the issues and hold insurers accountable for compliance with insurance claims practices laws.”
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APCIA Opposition
est and adhering to OEM procedures would probably be happy to post-repair-inspect their rivals’ work for a suspicious insurer or customer. Adjusters ensure repair quality? Woods’ testimony on repair procedures continued with another feat of logical gymnastics. He essentially made the case that insurers shouldn’t be compelled to pay for OEM repair procedures because the carriers are ensuring shops follow them. “So, this is a highly unregulated business,” Woods said. “The insurance adjusters are really the only people that … have any shot at regulating practices and quality.” Which is funny, because Nationwide just argued to the Pennsylvania Supreme Court in fall 2018 that it had no duty at all to verify quality (at least in Pennsylvania). “In the Bergs’ third question presented for this Court’s review, they seek to have this Court declare that Nationwide itself had a duty under
Pennsylvania law to verify that the vehicle, and presumably every vehicle that gets repaired pursuant to an insurance policy, was repaired properly and that its failure to do so is bad faith,” Nationwide wrote regarding Berg v. Nationwide. “This question does not warrant this Court’s review because no such duty exists, and even if it did exist it would not prove that Nationwide acted in bad faith.” (Emphasis Nationwide’s.) Earlier in its motion against the Supreme Court hearing the appeal, the carrier pointed out that it wasn’t necessarily checking for quality at all on the Jeep at the heart of the case. Those repairs were overseen by a Nationwide direct repair program shop. “Nationwide’s Steve Potosnak testified that Nationwide representatives typically went to Lindgren only to ensure that the repair shop was complying with its prior appraisals,” Nationwide wrote. “Potosnak specifically testified that he would review the quality of repairs ‘only if there was a complaint filed’ about a vehicle. Here, of course, there is no evidence whatsoever that any complaints were raised with Nationwide. Thus, it
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is not surprising that there is no evidence that Nationwide re-inspected the Jeep. Likewise, it makes perfect sense that there are no completed reinspection reports. Rather than supporting the Bergs’ argument, the lack of a completed re-inspection form corroborates, rather than undermines, the fact that no repair inspection took place and that Nationwide was unaware of any issues. While the Bergs argue that ‘reinspection reports should exist in the claim file,’ … they fail to cite any precedent holding that a failure to perform re-inspections constitutes bad faith, as opposed to mere negligence.” (Emphasis Nationwide’s.) And State Farm certainly doesn’t seem to have caught John Eagle Collision’ infamous incorrect hail repair that Woods cited moments before. Instead, that case raised a question of broader insurance industry behavior that directly seems to suggest a need for bills like HB 1348. According to Willis’ deposition: A: (Adhesive) is — it is a accepted repair alternative, based on our cars and insurance certifications. Q: All right. And let’s have an agreement today that we don’t use the
word “insurance.” Can we — is that cool? A: Well, unfortunately we’re guided by insurance.· So—the—if you brought your car into my shop, right, the insurance company’s going to dictate what—how we’re going to repair your car. Q: I understand. But the — but you — your — as a certified body shop, you have to — you — the — the insurance company cannot trump the OEM specifications, correct, sir? A: Yes, they can. Q: Where does it say that? A: By not paying the bill. Auto Body Association of Texas board member Chad Kiffe (Berli’s Body & Fine Finishes) acknowledged during the hearing that body shops have a responsibility to do the job right—it’s not just an insurer problem. He noted that many shops still didn’t use OEM repair procedures. “It’s within ourselves as well,” he said. “But we need to take out the excuse that we can’t get paid for it.” For more on this and related stories search this article title at repairerdrivennews.com.
autobodynews.com / MAY 2019 AUTOBODY NEWS
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ASA Northwest’s ATE 2019 Sells Out for 6th Straight Year by Chasidy Rae Sisk
From March 22–24, ASA Northwest held its 2019 Automotive Training Expo (ATE) at the Doubletree by Hilton Hotel Seattle Airport. ATE is the largest automotive training event on the West Coast. This year’s ATE sold out for the sixth year in a row with a record 1,000+ industry professionals in attendance. Attendees included shop owners, managers, service advisors, technicians and auto instructors from around the region. Jeff Lovell, president/executive director of ASA Northwest, stated, “We had 25 ASA volunteers that helped put this event together; our volunteers are the ones who make it all happen, and it’s exciting to watch them come together.” The 2019 ATE featured more than 60 mechanical, collision and service classes presented by some of the top trainers in North America. “The ATE Committee did a great job of choosing seminars that the automotive industry needs,” said Butch Jobst, ASA Northwest chairman of the board and owner of B & B Automotive, Inc. in Aberdeen, WA.
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“ATE is one of the most affordable training events on the West Coast providing the tools necessary to help drive the success of our members and the industry at large.”
Not to ADAS, That is the Question,” a keynote presentation sponsored by CTI/WTI. CTI/WTI co-sponsored Sunday morning’s keynote, along with Perpetual Business, as Bob Ward presented “The Next Generation Shop Owners.”
Bill Haas presented “Stopping Long Enough to Consider What Lies Ahead” during breakfast on Saturday
Friday’s keynote speaker was John Burkhauser, who discussed “Your Passion – Is It Nowhere?” which was sponsored by Bolt On Technology. During breakfast on Saturday morning, the keynote presentation, sponsored by The Group Training Academy, was “Stopping Long Enough to Consider What Lies Ahead,” presented by Bill Haas. During lunch on Saturday, Chris Chesney discussed “To ADAS or
MAY 2019 AUTOBODY NEWS / autobodynews.com
Chris Chesney presented “To ADAS or Not to ADAS, That is the Question” during lunch on Saturday
During the three days of classes, ATE 2019 also featured an extensive trade expo with more than 60 industry vendors exhibiting their parts, products, equipment and services. The expo floor was open on Friday evening and included hands-on demonstrations of the industry’s latest products as well as door prizes.
Sponsors of the 2019 ATE included CTI / WTI, BOLT ON TECHNOLODY; Kukui Corporation; Advance Auto Parts; Autologic; BOSCH; Delphi Technologies; Federated Insurance, Hunter Engineering Company; The Group Training Academy; Interstate Batteries; RLO Training; ATI; LKQ Corporation; NASTF; O’Reilly Auto Parts; Synchrony Car Care; Tekmetric; Wholesale Leaders; Benefit Consultants Northwest; Shepard & Shepard; Seattle Automotive Distributing; Farmers Insurance; UniFirst Corporation; Perpetual Business; Transmission Re-manufacturing Company; Tacoma Dodge Chrysler Jeep; Intrepid Direct Insurance; Hybrid Automotive; Educational Seminars Institute; and Official Media Sponsor Parts & People Northwest. Lovell stressed, “ASA Northwest could not put on such a successful ATE event without the support of our sponsors.” For more information on ASA Northwest, visit asanorthwest.com.
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NABC Recycled Rides Donates Car to Prunedale, CA, U.S. Army Veteran by Eduardo Cuevas, The Salinas Californian
Through the noise of the California International Airshow Salinas, a small group gathered the afternoon of March 24 in the middle of the municipal airport’s tarmac to gift U.S. Army Green Beret veteran Lawrence Duke “Frosty” Frost a car.
Lawrence Duke “Frosty” Frost gets the keys to his Hyundai Sonata from Jason Piper, regional vice president of Caliber Collision, at the California International Airshow Salinas on March 24, 2019. Credit: Eduardo Cuevas
Frost, a 63-year-old Prunedale resident, served in the military for 23 years in special operations in Vietnam and as part of Desert Storm. At the gifting, Frost’s friends and family stood by as he received a salvaged 2016 Hyundai Sonata.
“This is going to put me back in the game,” he said of his new car. Frost, who has been without work for some time, said his new car will let him find more reliable jobs, including Uber or Lyft driving.
Lawrence Duke “Frosty” Frost gets into his Hyundai Sonata at the California International Airshow Salinas on March 24, 2019. Credit: Eduardo Cuevas
The donation was made in part for Frost’s volunteer service through the Monterey Bay Veterans, where he transports those with disabilities around the WeatherTech Raceway Laguna Seca despite his own trouble without a car. Frost had an older altered vehicle, but the engine died six months ago. Since then, he has had to rely on public transportation to get to events
and appointments. GEICO insurance and Caliber Collision partnered with the National Auto Body Council’s Recycled Rides program to restore Frost’s Hyundai.
Jason Piper, Lawrence Duke “Frosty” Frost and Kyle Strom pose in front of Duke's Hyundai Sonata at the California International Airshow Salinas on March 24, 2019. Credit: Eduardo Cuevas
The partnership donates about 300 cars per year, according to Kyle Strom, a manager in GEICO’s auto damage department. Repairs, on average, cost about $10,000. Jason Piper, regional vice president of Caliber Collision, said mechanics at the auto body repair shop worked to restore the car free of charge. For Maria Cid, assistant director of communications for the Sports Car
Racing Association of the Monterey Peninsula, Frost is fully deserving of the new car because of his time donated at Laguna Seca at every racing event, often working 12- to-14-hour days. “Without him and people like him, there’s no way we could do what we do,” Cid said. His niece, Jeanne Paynter, an Army veteran as well, traveled from Ft. Hunter Liggett to see Frost receive the car. Before serving in Afghanistan, Paynter said Frost saw her off to basic training and has helped her since her return. “This is awesome,” Paynter said. “He’s usually the one helping, not the one receiving help.” Next to Frost’s new car, a covered 2015 Sonata stood by at the airshow on March 24. Another veteran from the Hollister area set to receive the vehicle couldn’t make it to the gathering. We thank The Salinas Californian for reprint permission.
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autobodynews.com / MAY 2019 AUTOBODY NEWS
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Autonomous Vehicle Testing Facility Planned Near San Benito, CA, County Line “It would be for those coming in from Detroit or Europe or Japan who For years, there was an idea to build need a place to stay so they can do up to 10,000 homes along State Route their work there,” Espinosa said. “He 25 near the San Benito-Santa Clara mentioned you can’t really have a County line in California. housing project next to an automoBut now, it seems that idea is tive development because there’s being abandoned for something else: screeching tires and a lot of activity a massive testing facility for au- going on.” tonomous vehicles. According to a Floriani Ranch Almost exactly a year after Bris- project document packet provided tol SB LLC appeared before the San to BenitoLink by CAO, the vision Benito County Board of Supervisors for the project is to develop and for a housing project, the group manage a premier automotive proving ground facility near Silicon Valley, with an opportunity to build an engine for job creation in San Benito County that has easy access to the nearby talent pool. The proving ground would be used to conduct extreme tests safely; develop vehicles and technologies in a closed, secure environment; test and validate products The Newport Pacific Land Company’s promotional prior to introducing them to materials used a technology park in the United Kingdom to demonstrate what the proposed San Benito County the marketplace; and train aufacility might look like. Credit: Newport Pacific Land tomated vehicle drivers (at Company this time, a driver must be inswitched gears. It went before the side test vehicles). board on March 19 seeking an agreePrincipal Rob Oneto of Rugment to build an autonomous vehicle geri-Jensen-Azar, which represents testing facility on 2,770 acres of what the Floriani family’s interests, exis now called the Floriani Ranch proj- plained the primary purpose of the ect. testing facility would be for testing, Board Chairman Mark Med- research and development of the ina, who referred to the project as a many components of the autonomous racetrack, asked if it included any vehicle industry. homes. When County Counsel Bar“They need to be very secure and bara Thompson also called it a race- very private,” Oneto said. “It would track, Resource Management Agency not be compatible with a residential Director John Guertin stepped in. area, but there is a potential for hos“Let’s not call it a racetrack,” pitality facilities or a customer expeGuertin said. “It’s a research and de- rience center. It’s in the formative velopment facility for autonomous stage right now. The users all have vehicles. It’s a commercial develop- common uses, but are very different.” ment. Right now, the proposal is just Supervisor Jim Gillio said he for facilities for research and devel- supported the project in place of the opment. They may want to explore housing proposed in the past. hotels or workforce housing for the “I appreciate having the clarity site to try to mitigate traffic impacts.” in moving forward on this great ecoCounty Administrative Officer nomic opportunity, and I think it’s Ray Espinosa said he had contacted going to invigorate our economic enJohn Patterson, president of the gine here in the county,” Gillio said. Newport Pacific Land Company, The project would be located in which manages Bristol SB LLC, Supervisor Anthony Botelho’s disabout the possibility of housing. Es- trict along the San Benito River and pinosa said he was assured the group the county line. Botelho said he was was only interested in hospitality fa- enthusiastic about it and that while cilities. he accepted any workforce housing by John Chadwell, BenitoLink
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MAY 2019 AUTOBODY NEWS / autobodynews.com
or hospitality needs, he was not in favor of any residential housing. Supervisor Peter Hernandez said he wanted to make sure the project benefits San Benito County as much as the applicant. “I like what I’m hearing about the hospitality and tourism,” he said. “There [are] a lot of things we can capture. I don’t want to get too much into their business, but I’d like to know what their intent is. Are they going to stay here for a week at a time, working out of here? That will help us gauge what their focus is and see how we might be able to accommodate them with hospitality.” Supervisors unanimously approved the agreement, which will en-
sure the county’s general fund is reimbursed for any project-related costs during the preliminary review, specific plan approval, and California Environmental Quality Act preparation process. As part of the agreement, the developer is required to pay the county sufficient security deposits to ensure that if the project defaults there are monies available to reimburse for time and resources expended on the project up to that point, according to the resolution. Bristol SB LLC must deposit $20,000 within 30 days of execution of the agreement and increase the amount to $80,000 by May 31, 2019. We thank BenitoLink for reprint permission.
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autobodynews.com / MAY 2019 AUTOBODY NEWS
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autobodynews.com / MAY 2019 AUTOBODY NEWS
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Ben Clymer’s the Body Shop Donates Car to Yucaipa, CA, Family This year, the honor went to the Ross family of Yucaipa. Father Marvin The rain stayed away long enough Ross suffers a medical condition that on Thursday, March 21 to allow for requires many hospital and doctor a huge celebration as Ben Clymer’s visits. The family car was outdated, the Body Shop gave away another unreliable and unsafe, causing missed appointments. car to a needy family. “Being a true recipient is the big thing,” said Bryan Clymer. “It’s hard to find a recipient because often times they don’t feel they deserve it.” AAA of Southern California and Enterprise RentA-Car work in collaboration with Clymer’s to completely restore a wrecked or damaged car. This year, the car was a 2017 loaded Honda Accord. School board trustee Rosilicie Bogh, Yucaipa Councilman Dick Riddell, Marvin, Stephanie, Jason, Jasmine and “This is a fresh start, and Jessica Ross and Mayor Bobby Duncan take a moment it’s been a long road,” said to pause in front of the car. Credit: Rachael Gustuson car recipient Stephanie. “We had a vehicle that conBen Clymer Jr. welcomed the stantly broke down and couldn’t afford crowd at the body shop for the 11th to buy a new one. I am overwhelmed annual presentation of the Benevo- right now. I cannot say thank you lence Car Giveaway. For over a enough. I’m genuinely moved.” Marvin said with a smile, “I am decade, Ben Clymer’s has been presenting a “new” used vehicle to a de- so looking forward to riding in that serving individual or family in town. new car.” by Rachael Gustuson, News Mirror
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MAY 2019 AUTOBODY NEWS / autobodynews.com
In addition to the new car, the Ross family received one year of auto insurance. The family also had a big surprise when the trunk revealed a variety of food and snacks for maybe a beach trip. Bryan Clymer mentioned the children had never visited the beach and hoped to do it soon in the new family car. Yucaipa Mayor Bobby Duncan said he was happy for the family and that it was a great day. Council member Dick Riddell concurred. Representative for California State Assemblyman Chad Mayes and school board trustee Rosilicie Bogh thanked the Clymer family for their ongoing generosity and presented them with a certificate. Following the ceremony, the Clymer family hosted a complimentary lunch by Big Easy Sandwich for all in attendance. “I’m genuinely over the moon right now,” said Stephanie. We thank News Mirror for reprint permission.
www.autobodynews.com
Gerber Collision & Glass Acquires Location in WA
Gerber Collision & Glass recently announced the March 18 acquisition of a repair center in Richland, WA. This location previously operated as Atomic Auto Body and Detail and has served the community for 53 years from the same location. Richland is located at the junction of the Yakima and Columbia rivers and is part of the TriCities market, which also includes Pasco and Kennewick. This new repair center is approximately 15 minutes northwest of Gerber’s Kennewick location. We are excited to strengthen our presence in the state of Washington with this acquisition,” said Tim O’Day, president and COO of Gerber Collision & Glass. “This opening also allows us to better assist our insurance clients.” Gerber Collision & Glass is continuously looking to add new collision repair locations to its existing network in Canada and the U.S. Interested collision repair center owners are asked to contact Stephen Boyd at (204) 594-1776 or stephen.boyd@boydgroup.com for more information.
Permit Granted for CARSTAR Yokum’s Body Shop in Ukiah, CA by Justine Frederiksen, Ukiah Daily Journal
After determining its appearance would meet the city’s design guidelines, the city’s Planning Department granted a permit for an auto body repair shop to open in an empty building on Talmage Road at Airport Park Boulevard in Ukiah, CA. Zoning administrator Craig Schlatter, who also serves as the city’s community development director, approved a permit earlier in March for Jeff Yokum of Willits to operate an “auto body shop for auto repairs, towing and car rental services” in the existing 7,000-squarefoot building at 550 Talmage Rd. The building was previously occupied by a muffler shop, welding shop and a towing company before Triple S, which closed late last year. Yokum has operated Yokum’s Auto Body in Willits since 1991 and seeks to open a second location in Ukiah. He plans to install more than a dozen work stations for repairs, painting and disassembly to allow for 14 vehicles to be worked on at once. City staff noted that “all repair work and painting will be conducted within the building, and each work station is designed with a system to fully con-
tain all paint fumes and debris.” Yokum said the business will be part of the “CARSTAR chain of auto body shops” and will be called CARSTAR Yokum’s Body Shop. Yokum added that most of the businesses in the chain are painted with a “two-tone” mix of a deep red and dark gray.
Credit: Justine Frederiksen, Ukiah Daily Journal
“When I looked at the application, everything looked pretty good, but it wasn’t clear to me what the front of the building looked like, and that would be the part facing Talmage Road,” said Schlatter, describing the building as being “in a very visible part of our city, in one of our gateways” off Highway 101. “Our understanding is that (the section facing Talmage Road) would look similar to the rest of the building
because the colors would wrap around the building,” said planning manager Michelle Irace, adding that the building was originally going to be painted “red and darker colors, but it was adjusted later to be more harmonious” with the other buildings in the area. “Historically, something like this would go to our design review board, and I’m not super comfortable about making an approval without seeing any drawings of the front, given the visibility of this location,” said Schlatter, adding that while he was granting approval, he was adding a condition that “given the visibility of this location, I want renderings (of the front of the building facing Talmage Road) to be submitted to staff, who will evaluate whether they are compatible with the city’s design guidelines. And if there are any questions from staff, then the project will be referred to the design review board.” Schlatter said the plans have been submitted, his staff has reviewed them and the project has been approved without needing to go before the design review board. We thank Ukiah Daily Journal for reprint permission.
CAA Hosts ‘Why You Should Be Scanning’
On March 20, the California Autobody Association hosted a meeting in Anaheim, CA, on the importance of scanning. The meeting, titled “Why You Should Be Scanning and How to Properly Estimate Scanning Services,” drew a crowd of 85 attendees from all over Southern California. The meeting featured a presentation by Michael Quinn and Frank LaViola of AirPro Diagnostics. The Q&A and discussion that followed included an actual example of a scan on an Acura MDX from Fountain Valley Bodyworks. After a bit of research, the shop learned that the mirror sensor recalibration involved a 10-minute drive rather than a trip to the dealership service department—proof that scanning, researching remedies and using OEM procedures save time and limit liability. The event was one of the largest and well-attended CAA meetings in Southern California. The meeting took place from 5:30 p.m. to 9 p.m. and was hosted at the Phoenix Club in Anaheim.
autobodynews.com / MAY 2019 AUTOBODY NEWS
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Santa Cruz, CA, Collision Repair Lifer Celebrates 2 Anniversaries by Ed Attanasio
David Mello recently celebrated two notable anniversaries: his 30th as the owner of Anderson Behel in Santa Clara, CA, and his 40th in the collision repair industry.
David Mello (left) and his sales manager, Bill Brady, recently celebrated Anderson Behel’s 30th anniversary in Santa Clara, CA
While many independent shops in Silicon Valley have come and gone, Mello has made all the right moves to thrive in a highly competitive market. Mello has held almost every leadership position available in the California Autobody Association (CAA) over the past 26 years and has worked hard to make a real difference in the collision industry since day one. Mello’s love for cars while growing up in Santa Cruz, CA, led to a career in collision repair. “My dad was a dairy farmer who eventually ran a creamery. I always loved cars more than I liked cows, so when I was in high school, I got a job at a service station where I could mess with vehicles,” he said. “While I was attending junior college, I got a job as a parts guy at a local Oldsmobile dealership where I was making $600 a week—decent money for a kid out of school. I was promoted to parts manager and then was hired at a body shop. I worked there for 10 years and then in 1989, I purchased Anderson Behel, a shop that had been there since 1960.” Mello has changed with the times, gravitating more toward working with car dealerships while shedding DRPs, he said. “We’ve always depended on dealership referrals and a healthy amount of repeat customer business. Dealership referrals are great because once you’ve proven yourself, they will hand you more and more 18
work. We still work with all of the insurance companies, of course, but we don’t have any DRPs, and that’s why we don’t have to discount our prices as a result,” he said. Regarding DRPs, Mello has been there, done that. Those days are over at Anderson Behel, he said. “The pressure to contain prices from the insurance industry will always be there, just like with the medical health industry,” he said. “It makes it hard for a lot of shops that rely on DRPs because many of them are less than informed about charging, so they accept the insurance company’s price pressure. I mean, if you’ve got a $1,200 repair and they offer you $800, and you accept it, you’re falling right into their trap. Now you’ve fixed it to their price point rather than back to OEM standards. They’re trying to apply costsaving [tactics] rather than what it really takes to do a safe repair.” Mello realized five years ago that OEM certifications were going to become more valuable, especially for an independent shop like Anderson Behel. “We recently added Porsche and Volvo and also have certifications with Honda, Acura, Nissan and Subaru, as well as most of the domestics,” he said. “They give the consumer peace of mind, [as they] know we have the training and tools to fix their car right. It also helps our image because customers say ‘I see all these Porsches here, so they must be a good shop.’” Mello has seen some improvement in the industry within the last eight years and credits much of it to the state’s former insurance commissioner, David Jones. “We finally got someone that really seemed to care about our industry and wasn’t just straddling the fence like his predecessors,” he said. “Jones helped us with things such as steering and labor rate surveys and addressed the dance between aftermarket vs. factory parts.” Steering is still prevalent and will always be a hot topic, he said. “Yes, steering is indeed still alive and well, even though it’s illegal in California,” he said. “It’s a two-sided sword because if we get the job, we call it a referral. But if we lose it to
MAY 2019 AUTOBODY NEWS / autobodynews.com
another shop for whatever reason, we call it steering. I admit that we play both sides of this, but my ideology is that it should be a free market and that customers should be able to take their vehicle to the shop of their choosing.”
A longtime officer at CAA on both the local and statewide level, Mello participated in CAA Legislative Day for many years. Here, he represents the industry while talking with former State Senator Leland Yee about an aftermarkets bill in 2015
Mello, who is treasurer for CAA at the state level, has seen his local chapter go dormant due to apathy. “There are several reasons for it,” he said. “The big MSOs feel that they don’t really need associations like CAA. They’re big enough to create their own environment, and as independent shops, we can’t com-
pete with that unless we stick together. I’ve been involved with CAA for 26 years now. I joined my local chapter’s board (Santa Clara chapter) in 1992, and I’ve been on the board ever since then. I served as president in 1997, and then in 2007, I became CAA state president, which means I served for six years on the executive committee. I have also been the treasurer for our chapter probably for the last 15 years. So, I’ve seen firsthand how the CAA can make a difference, as long as shops are willing to step up to make it happen.” With no concrete plans to retire, Mello admits that he’s a collision lifer and proud of it. “What would I do if I retired? I do own a Harley Fat Boy and enjoy being a support person every other year for the Cannonball Run that covers almost 3,000 miles,” he said. “In addition, I still want to serve my community for my local Rotary Club (Santa Cruz Sunrise chapter), but at this point, I still like this industry and want to stick around for at least a little longer.”
autobodynews.com / MAY 2019 AUTOBODY NEWS
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Pre-Scans & Post-Scans Are Required for All Collision-Damaged Vehicles, OEMs Say
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MAY 2019 AUTOBODY NEWS / autobodynews.com
to reach operating temperature (note: antilock brake controllers can be temperature-sensitive) • Locating and connecting battery support • Locating and connecting scan tool • Cycling the key • Submit the scan request (which includes data entry of items like the vehicle and collision information) • Reviewing the scan report “Scan” not-included operations: • Resetting and clearing stored faults • Testing and diagnostics • Liftgate / door relearns • Adjusting passenger seat for seat weight sensor • Test-driving the vehicle in accordance with the OEM’s repair procedures • “Wiggle” test wiring harness to uncover short or ohm change on readings of live data • Fuel level • Check / adjust Tire Pressure • Wheel speed sensors: through
live data, voltage signal can be inspected - if faulty sensor is suspected shop may need to R&I wheel and inspect wheel sensors (common on suspension damage) • Rear parking sensors: start vehicle and have a second person walk behind vehicle to ensure integrity of sensors • ‘360 Camera’s: start vehicle and have a second person walk around vehicle to ensure integrity of sensors • Initialization of modules • Reprogramming of modules • 4W Alignment BEFORE any steering angle sensor calibration or ADAS calibrations • ADAS Calibrations • Calibrations of radar • Calibrations of sensors • Calibrations of cameras • Calibration of 360 camera systems • Calibration of adaptive headlamps • Calibration of seat weight sensor – SWS • Calibration of forward-looking cameras
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lion vehicles manufactured in 2018. It is necessary for body shops to Two representatives from AirPro Di- scan because it is “simply not possiagnostics led the Southern California ble” for a vehicle to illuminate a Autobody Association (CAA) meet- warning light for all of these differing on Wednesday, March 20 at The ent systems and codes, stated Quinn. Phoenix Club in Anaheim, CA. Performing pre-scans and postMichael Quinn, SVP of busi- scans on every collision-damaged ness development, and Frank vehicle is a mandatory procedure for LaViola, vice president of sales and many OEMs, he added. However, marketing, flew in from out of state to less than 3 percent of body shops discuss the importance of pre-scan- employ qualified OEM-trained diagning and post-scanning proper repairs nosticians. And not just any scan tool will do: 92 percent of tools sold today do not cover all 2019 model vehicles, according to Quinn. “Recent court decisions have held collision shops liable for the processes, parts and procedures they use during the course of damage repair,” said Quinn. “An improper repair can come back to haunt a shop years later, Eighty-seven people attended the CAA March 20 meeting like with the Honda Fit to ensure customers and their families [John Eagle Collision case].” are safe once again and the vehicle Quinn added that much of the will respond in any subsequent acci- liability exposure stems from a shop dent as the manufacturers engineered. using outdated or improper repair Quinn and LaViola gathered rel- procedures. “Technology also plays evant information from AirPro cus- a role,” he said. “Modern ADAS systomer surveys, Society of Collision tems, such as adaptive cruise control, Repair Specialists, Mike Anderson, lane keep, blind spot monitoring and Automotive Service Association, other systems using cameras, sonar, Mitchell and other sources for the radar and LIDAR sensors require presentation. The speakers described calibration after replacement or retheir product as a true OEM-compli- pair. ant, dealer-level remote scanning and “Even a minor collision can calibration solution that is advanced cause damage to these systems bedriver assist systems (ADAS)-ready. It cause they are not protected by ultrahas been approved by Honda, General high strength steel enclosures, but Motors and Subaru, with more OEMs rather located right on the exterior of in the process of signing on. the vehicle.” The meeting began with netThis is why a comprehensive working at 5:30 p.m., followed by din- estimating process now demands a ner at 6:30 p.m. Speaker introductions, pre-repair scan of the vehicle to idenled by VP of business development tify any trouble codes and a post-reand sales at Craftsman Collision, pair scan to verify that these systems Melanie Allan, began around 7 p.m. are all functioning properly, exQuinn took the podium first. plained Quinn. Quinn started his portion of the Quinn then shared a slide on slideshow with statistics on the what is included and not-included in “Technical Tsunami” that has en- pre-scans and post- scans. gulfed the collision repair industry. According to Ward’s Auto, cited “Scan” included operations: on Quinn’s first slide, ADAS and ad- • Locating the keys, vehicle and vanced electronics, such as rear cam- repair order eras, rear parking sensors and lane • Moving the vehicle to a desigdeparture warning systems, were in- nated area stalled in the majority of the 17 mil- • Running the vehicle long enough by Victoria Antonelli
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Quinn indicated this list is not allinclusive and will grow as vehicle complexity increases. He concluded his portion by sharing several examples of vehicles that require complex procedures for seemingly simple repairs, such as the 2017 Honda HRV. “Simple repairs such as replacing a passenger mirror may now require software updates, lane departure calibration, marrying-in and functional tests to confirm proper operation,” he added. LaViola began the second half of the presentation by reviewing specific OEM requirements for scanning. For example, pre-scans and post-scans are required for Subaru vehicles model year 2004 and beyond that have been involved in a collision. Ford Motor Company also requires pre-scans and post-scans for vehicles model year 2010 and beyond. Several other major OEMs, including General Motors and American Honda, require scans for all vehicles involved in a collision, regardless of model year. LaViola then shared questions, answers and comments from Mike Anderson’s “Who Pays for What?” survey and a
22
survey of AirPro customers. According to the results, only 21 percent of shops perform post-repair scans on every vehicle. Fifty-three percent of shops stated this is because “the level of damage does not warrant a postscan.” Eighty-seven percent utilize OEM position statements and 57.4 percent utilize I-CAR information to receive compensation for scans. Forty percent of shops feel only half the adjusters they encounter understand the importance of scanning vehicles.
LaViola shared Mike Anderson’s “keys to reimbursement”: • Research each vehicle based on the build data and that specific vehicle’s safety and comfort option • Determine what is fair and reasonable - This can vary based on the OEM scan tool and the amount of fault codes or DTCs • Determine what is included versus what is not included in your labor time • It is not just about scanning! Think calibrations, initializations, relearns, etc. • Understand the key search terms
MAY 2019 AUTOBODY NEWS / autobodynews.com
in the OEM repair procedures • Build a repair plan you can defend: - Use photos - Use line notes - Use OEM repair procedures - Capture freeze frame data (aka snap shot data, key cycles, etc.) - Measurements –scans and alignments LaViola also discussed his purchasing criteria for scanning tools. At a minimum, he said, every shop should own an “OBD-II Enhanced” scan tool that is connected directly to the vehicle with the OEM software resident at the vehicle or “local,” as required by GM. The AirPro system can perform pre-scanning, postscanning, programming, flashing, basic system calibrations and ADAS calibrations and includes a cloudbased diagnostic management system, among several other features. LaViola’s presentation also included survey results from shops currently using AirPro services. In addition to insurance companies providing reimbursement for the AirPro invoice, 46 percent of shops said they
were paid 25 percent or more markup. Sixty-seven percent of shops were reportedly compensated at a mechanical labor rate, while 39.6 percent were compensated at a body labor rate. Around 70 percent of shops also reported being reimbursed for a halfhour of labor for both pre-scans and post-scans. According to the survey comments, some insurance companies do pay a full hour of labor. Lastly, almost 31 percent of shops reported that scanning, in-house programming and calibrations with the AirPro tool reduced their cycle time by two days, followed closely by 25 percent that stated it improved cycle time by more than two days. LaViola and Quinn concluded by sharing their contribution to the Collision Industry Foundation (CIF) and encouraging others to get involved. CIF aids industry members affected by natural disasters and other crises. To learn more, visit www.collisionindustryfoundation.org For further questions, Michael Quinn can be reached at Michael.Q @AirProDiag.com and Frank LaViola can be reached at Frank.L@AirPro Diag.com.
Continued from Cover
Registration Is Open for AAPEX 2019 Registration is now open for AAPEX 2019, the world’s gathering place for the more than $1 trillion global automotive aftermarket industry. AAPEX 2019 will take place Tuesday, Nov. 5 through Thursday, Nov. 7, at the Sands Expo in Las Vegas. To register, attendees should visit the AAPEX 2019 website, aapexshow.com.
With more than 2,500 exhibiting companies, AAPEX is the showcase for the latest products, services and technologies that keep the world’s 1.3 billion vehicles on the road. More than 48,000 targeted buyers are expected to attend, including automotive service professionals, auto parts retailers, warehouse distributors (WDs), service chains, automotive dealers, fleet buyers and engine builders. Approximately 162,000 automo-
tive aftermarket professionals from 126 countries are projected to be in Las Vegas during AAPEX and the SEMA Show. Online registration is $40 (U.S.) through Friday, Oct. 11 and attendees are encouraged to use the new live chat feature for assistance. Registration includes access to the AAPEX trade show, as well as AAPEXedu sessions, the Advanced Driver Assistance Systems (ADAS) Forum, New Product and New Packaging Showcases, Mobility Garage underhood and alternative fuel vehicle training, the Technology of Tomorrow section, Let’s Tech presentations, the Virtual Vehicle Challenge and the Service Professionals Summit. The fee for registering via fax or mail is $65 (U.S.) through Oct. 11. Beginning Saturday, Oct. 12, online and onsite registration will be $90 (U.S.), and $115 (U.S.) for fax or mail registrations. With the AAPEX badge, attendees also can visit the SEMA Show taking place the same week in Las Vegas. Registration for approved and credentialed media also is now open on the AAPEX website, aapexshow.com/media/.
Rick Johnson
down from CAA’s executive committee at that time to become the volunteer non-paid interim executive director while an ad hoc committee was formed to search for a permanent full-time executive director. Johnson owned B & J Body Shop in the Sacramento area for 35 years before selling the business to his managers in 2009 and then took a break from the industry. “I’ve never really retired completely,” Johnson said. “Once this business is in your blood, it’s hard to step away. When the people at
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San Jose, CA, Veteran I-CAR Instructor Looks Back at 36 Years of Teaching by Ed Attanasio
Although he sees himself as an ICAR instructor first and a body shop owner second, Doug Roach, 66, has been wearing both hats successfully for the last 36 years. As the owner of Collision Repair Specialists in San Jose, CA, and an I-CAR instructor since 1983, Roach is well-known and highly respected in the collision repair industry for having the knowledge to repair cars to OE standards and using it to teach countless collision professionals to do the same. The numbers are impressive— Roach has taught thousands of technicians in approximately 25 different states over the years. He has conducted 1,700 classes, not including special training sessions. Each class normally lasts four hours, so Roach has taught his students for approximately 6,800 hours—more than 283 days total. As I-CAR celebrates its 40th year, Roach looks back at how the organization and the industry have changed. It all began when he was inspired to pursue a teaching career back in 1970 while a senior at Irvington High School in Fremont, CA. “One of my shop teachers suggested that I might be a good instructor, something I never thought about until then,” Roach said. “So after graduating from San Jose State University, I earned a California life teaching credential and began my professional career at age 21 teaching auto mechanics and metal shop at the high school level and for adult education.” In 1983, Roach left his teaching position at Leigh High School in San Jose to work at the family shop and then began teaching I-CAR classes, he said. He later opened his own shop, Collision Repair Specialists, with a partner in 1987. He enjoyed the challenge of building a business, but never lost his passion for passing his knowledge on to collision repair professionals. “I’ve always considered myself a teacher first and a shop owner second,” Roach said. “When I can find someone who is hungry for information and really seems to get it, teaching is so satisfying. Teaching is not 24
financially rewarding and it takes me away from running my shop, but I love it. My parents taught me to give back, and teaching is a great way to do it. I’ve taught and mentored a lot of people over the years, but now they’re all retired. I tell my students that knowledge is a tool, just like a piece of equipment that they can use to be better at their jobs.”
Doug Roach started Collision Repair Specialists in 1987 and recently celebrated 36 years as an I-CAR instructor
Roach hasn’t altered his teaching style, but the technology changes literally every day—new metals, advanced driver assistance systems (ADAS) and more sophisticated equipment, tools and processes are taking over the industry. “A lot of things have changed, especially within the last 5–6 years, but I tell my students that you still have to learn the basics first,” he said. “To stay up-to-date with today’s vehicles, the learning can never stop, and training is more valuable than ever as a result.” In 1989, a major change took place: I-CAR began providing special classes for the insurance companies, primarily at the middle and upper management levels, Roach said. “The insurers realized that their people needed to know more about these cars and the technology if they were going to be effective,” he said. “I have to give them credit for wanting to do a better job and encouraging that the shops have to maintain a certain level of training to work with them.” The body shop business climate has also changed dramatically since Roach began, he said. “Back when I started, there were a lot of shops in San Jose, but now there is a lot of competition in this area, and that has changed the business environment in many ways,” he said. “The MSO managers
MAY 2019 AUTOBODY NEWS / autobodynews.com
feel like they’re working more for their accounting department now, so it’s all about the numbers. It’s push, push, push when it comes to production, and they’re taking the McDonald’s approach.” Getting young people in the collision repair industry now is tougher because the high schools are no longer teaching shop classes, Roach said. “The schools are cutting all of the industrial studies programs, including drafting, woodworking, metal shop and all of the classes that teach people how to work with their hands,” he said. “So that is why body shops, for example, are having problems finding qualified people to fill these positions. It’s happening in all the trades, and that’s why we have a huge need for plumbers, electricians and mechanics, for example. I tell parents with high school kids that they need to push the school boards and school district administrators and let their voices be heard because if they don’t do anything, the schools and the politicians will eventually eliminate these curriculums alto-
gether if they haven’t already.” Thirty-six years ago, when Roach became a part-time teacher at I-CAR, there were only a few instructors on staff, and the curriculum was continually evolving. “I-CAR was established in 1979, and I got involved in 1983, so I was there at the beginning,” Roach said. “There were only seven classes back then. [They were] in the process of developing class numbers eight and nine, and I took them all. During the breaks, I started talking to the instructor. He found out that I was fairly knowledgeable, so he invited me to co-teach with them. The first class I taught was at a body shop in San Jose in front of 20–30 people, and it grew from there. I remember having to turn people away back then because we limited the attendance to 60, and the classes were popular. Eventually, I helped develop many of the early classes and trained several other instructors along the way.” In 2004, Roach and his wife, Brenda, adopted four children from See I-CAR Instructor, Page 29
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Santa Cruz, CA, Identifies Parking Lot for Pilot Safe Sleeping Site by Jessica A. York, Santa Cruz Sentinel
A city parking lot may soon be converted into a pilot “dusk-till-dawn” safe sleeping program, the latest effort to provide alternatives to a large unsanctioned city homeless encampment near Highway 1 and River Street in Santa Cruz, CA. During a special meeting the afternoon of March 19, six potential sites around the downtown “core” were narrowed to the city-owned “lot 24,” a long rectangular property north of Depot Park, between Chestnut and Washington streets. Staff from the
Perrigo’s Auto Body Shop owner Dan Foy threatened to sue the city of Santa Cruz if a homeless encampment were opened in the parking lot next to his shop. Credit: Dan Coyro, Santa Cruz Sentinel
city manager’s office suggested the city pursue a 50-person sleeping program taking over about 52 parking spaces from about 9 p.m. to 6 a.m., run by a nonprofit or faith-based organization, that will be broken down during the daytime. Officials said they did not have time to engage with community members about the alternative model, a full-blown 24/7 “transitional” encampment. If the homelessness effort goes as planned, the safe sleeping and storage program would open at the same time as a planned 60-space Salvation Army-run tent encampment at the former River Street Camp, 1220 River St., by April 17. Helping to expedite the effort will be an updated homeless shelter crisis declaration, updated and approved by the council March 19. April 17 has also been set for the closure of an unsanctioned tent encampment of more than 150 people behind the Gateway Plaza, dubbed by some as “Camp Ross” after the nearby shopping center’s anchor tenant and closest camp neighbor, Ross Dress for Less. No Perfect Site 26
Prior to the March 19 decision, city officials gave the Santa Cruz City Council an extensive list of factors leading each site’s identification, from compatibility with the surrounding environment and physical constraints to environmental impact and access to transit. None, however, said city Economic Development Director Bonnie Lipscomb, is a “perfect site,” nor, said Assistant to the City Manager Susie O’Hara, will the program serve as a “silver bullet” for homelessness. “I think one of the challenges of looking at the central core is that, I mean you could say that all of these sites are going to have some impact to schools or daycare, preschool facilities,” Lipscomb said. “These sites, particularly, being in city control and looking at adjacent uses, we felt were the best suited, with those considerations in mind. But we can’t say for certain any site is completely not impacted.”
Long-Term Solutions The council’s latest homeless program decision came a day ahead of longer-term solutions. Santa Cruz County, leading the region’s Homeless Action Partnership, announced March 20 nearly $10 million in emergency homeless state grant awards. More than $2.6 million of the money is set aside to buy land for and to build a new North County year-round emergency homeless shelter, plus another $1 million to run the Salvation Army’s South County “navigation center” shelter and services. The existing Homeless Services Center’s Paul Lee Loft also will receive $555,000, one of a total of 22 project recipients named. Santa Cruz’s proposed safe sleeping pilot program, on the other hand, was approved for just a 30-day trial period, after which time the council would need to review the effort’s impacts and successes before considering renewing it. O’Hara said a safe sleeping and storage program—which would maintain only temporary fencing and sanitary facilities onsite during the day—was more transient and flexible than its alternative. Upper Westside resident Bradley Olin told the council March 19 that there is a “disconnect” be-
MAY 2019 AUTOBODY NEWS / autobodynews.com
tween what the city is planning and how much of which the community is aware. “Let’s face it; those three sites that are left are all next to public spaces where children play. And yeah, maybe they’re not playing at 9 o’clock at night, but right now, from what I’ve heard, I don’t know how those overnight camps are going to be run. All I’ve got in my head is Camp Ross,” Olin said. “So, even if you say it’s going to be regulated, we don’t know what that means, as the public, and we’re all really spooked about it. So I think if you’re going to propose park sites and you’re going to put it where there’s lots of kids and families around, you’ve gotta bring us all into the fold and bring us on board by helping us be comfortable with the safety.” New Neighbors More than 50 people spoke on the city’s planned program March 19 in addition to more than 950 pages of letters sent to the City Council. Dan Foy, Perrigos Auto Body Shop owner,
said his business at 251 Washington St. is immediately adjacent to the proposed encampment. Foy predicted the council’s decision would “destroy his shop,” and later in the evening, yelled from the audience that he planned to sue the city.
Dan Foy (right), owner of neighboring Perrigo’s Auto Body Shop. Credit: Dan Coyro, Santa Cruz Sentinel
“The parking lot is full every weekend from beach-goers. It’s a very high-use area. There [are] tons and tons of apartments and city neighborhoods all around and right behind me,” Foy told the council. “It’s unbelievable that you’ve chosen this spot. Please reconsider. It seems like where it used to be, down behind the county courthouse, that made sense. All the officials in that building See Sleeping Site, Page 32
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IACA Marches Into Spring With Industry Education by Chasidy Rae Sisk
The Idaho Auto Body Craftsman Association (IACA) kicked off March with two educational seminars. According to IACA President Matt Thornton, “We had over 50 people attend these informative seminars.” On March 8, IACA hosted an educational seminar with Billy Walkowiak of Collision Safety Consultants at the Oxford Suites in Boise, ID, from 6 p.m. until 9 p.m.
liability and diminished value.” On March 9, IACA welcomed Mike Anderson of Collision Advice for “Positioning Yourself in the Industry,” during which he focused on technology and how it impacts
Mike Anderson of Collision Advice presented “Positioning Yourself in the Industry” at IACA’s March meeting
Billy Walkowiak of Collision Safety Consultants provided an overview of postrepair inspections, OEM procedures, repairer liability and diminished value
Thornton shared, “Billy gave us an overview of post-repair inspections, OEM procedures, repairer
28
shops. Aaron Clark of the Assured Performance Network also presented a seminar on the importance of documenting repairs and following OEM procedures. Representatives from Podium were also in attendance to present their customer texting and review request platform tools.
For more information about IACA and its events, visit idahocraftsman.org or call (208) 344-3582.
MAY 2019 AUTOBODY NEWS / autobodynews.com
Technical Careers High School in ID Prepares Car To Be Donated to Family in Need by Tristan Lewis, Local News 8
On March 14, Technical Careers High School in Bonneville School District 93 in Idaho Falls, ID, was finishing up the last few touches on a car to be donated to a family in need. The high school works closely with Intermountain Auto Body Supply throughout the year. On March 13, the company asked the school if they could fix up an old car for a family that did not have one. The collision repair and refinishing class was asked to paint the car and have it ready for delivery by March 16. Students came to school at 8
a.m. March 14 to get it stripped and ready to be painted. “When [the students] heard the story and they heard what was going on, they were all on board,” said Todd Smith, an instructor. “I did not have to talk anyone into it; they [wanted] to work on it and were like, ‘Let’s go.’ They wanted to be the first ones out here.” Smith said the turnaround for a project like this was much quicker than what his students were used to; 10 students were involved in helping refurbish the car. The class worked on putting the car back together March 15. We thank Local News 8 for reprint permission.
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ASA Northwest To Host May Meetings, Events by Chasidy Rae Sisk
ASA Northwest has many chapter meetings and events scheduled for May. • May 2 – Pierce County Chapter Meeting at LaQuinta in Tacoma, WA • May 4 – Tri-Cities Community Car Care Event at Tri-Tech Skills Center in Kennewick, WA. From 9 a.m. until 2 p.m., community members can visit for complimentary vehicle inspections performed by automotive students and local service shops. Inspections include lights, wipers, tire pressures and fluids. This event is sponsored by the Tri-Cities Chapter of ASA Northwest. • May 8 – Eugene Chapter Meeting at Izzy’s Grill in Eugene, OR • May 9 – Spokane Chapter Celebration of Excellence at Spokane Community College will celebrates students in the school’s automotive curriculum, and two lucky students will receive automotive scholarships. Raffles and prizes will also be available.
• May 14 – Vancouver/Portland Chapter Meeting at AG Diesel Repair in Portland, OR • May 14 – Whatcom/Skagit Chapter Meeting at Park Bowl Restaurant in Bellingham, WA • May 14 – Yakima Chapter Meeting, Location to be determined • May 15 – Tri-Cities Chapter Meeting, Location to be determined • May 16 – Spokane Chapter Meeting at Mirabeau Hotel and Convention Center, Lilac Room, in Spokane Valley, WA • May 16 – South Sno-King Chapter Meeting at Bellevue Brewing Company in Bellevue, WA • May 27 – Southwest Washington Chapter Meeting at South Puget Sound Community College in Olympia, WA • May 28 – Olympic Peninsula Chapter Meeting at Kitsap Golf and Country Club in Bremerton, WA • May 28 – Yakima Chapter Meeting at River Ridge Golf Course in Selah, WA For more information, visit asanorthwest.com.
Continued from Page 24
Accuvision-3D Measuring Approved by APN
The Accuvision-3D measuring system from Arslan Automotive Canada Ltd., has now received approval from Assured Performance Network, Laguna Hills, CA for bodyshop Certification programs in the USA. Assured Performance Network works with the top Auto Manufacturers in North America to identify, certify, and promote thousands of best-in class repair shops through one joint-effort program. This recognition is one more step in Arslan Automotive’s expansion plans in the US market. At present Accuvision-3D has established sales coverage in 24 states and continues to build its’ USA dealer network. Increase production, save time and money with Accuvision3D, the most accurate, quickest, and simplest 3-D measuring system. For more information, contact Arman Gurarslan at 800-4658575 or visit Accuvision-3D.com.
I-CAR Instructor
Siberia, Russia and homeschooled them for many years. Pasha “Paul” Roach, 26, is the shop’s general manager, and his brother, Artem “Arthur,” 20, works part-time at the shop. “They’re fourth-generation because my wife’s grandfather started a body shop back in 1949 in San Jose,” Roach said. “Paul is very hands-on, and Arthur is a fast learner.” Roach is proud when he looks at what I-CAR has achieved in the last four decades. “It’s a huge business now, and we’re still the industry leader,” he said. “There are a handful of smaller independent schools out there and some of the MSOs are training their people in-house, but they’re not recognized like I-CAR. I still love teaching the classes and have no plans to stop because I can see we’re still a strong organization that is doing positive things for this industry.”
www.autobodynews.com
autobodynews.com / MAY 2019 AUTOBODY NEWS
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Legislation To Enhance Cybersecurity Training
Two bills approved by a U.S. Senate committee in late March would provide ASA members one more tool to protect their shops from cyber threats. On March 27, the U.S. Senate Committee on Small Business and Entrepreneurship held its first markup of the 116th Congress approving three bills. Two of the bills being considered, S. 771, the Small Business Cyber Training Act and S. 772, the SBA Cyber Awareness Act, were both introduced by Chairman Marco Rubio (RFlorida). ASA wants to ensure its members have the best training and resources available to protect their shops and their customers from those who would do harm. If passed, the “two bills will give small businesses the tools they need to safeguard themselves against the growing cybersecurity risks of the 21st century,” Sen. Rubio said in a news release.
Modules Added to Estimatescrubber.Com
VehicleOwnersGuide.com, a provider of technology, connectivity and information solutions to the Collision Repair market, announced the addition of customizable estimating SOP’s and consumer engagement modules to EstimateScrubber .com. Subscribers can now customize scrubber review results (SOP’s) using their shop specific verbiage and attached documentation in place of the default review results. Shops can create estimating SOP’s for individual insurance companies, vehicle manufacturers, fleet, walk-in or other customers. Estimating SOP’s leverage knowledge across all estimators in real time. It take the knowledge of the best shop estimator and makes it available to everybody. It also provides a mechanism for managers/ owners to provide instructions to their estimators. It has a place in small, large and MSO shops.
Gerber Collision & Glass Acquires 7 Repair Centers in OR, WA Gerber Collision & Glass recently announced the March 29 acquisition of seven repair centers in Oregon and Washington.
The Oregon shops are located in Beaverton and Portland. Five shops are located in Washington— two in Seattle and one each in Burien, Kent and Olympia. These repair centers were all previously operated by Noel Pennington, who started the business in 2005 with a single Seattle location. Gerber Collision & Glass continues to build on its brand in this region. Portland is the largest city in Oregon with approximately 2.4 million people within the metropolitan area. Seattle remains one of the fastest-growing areas in the United States with a population of nearly 3.9 million. 30
“These acquisitions enhance Gerber’s established presence in the Pacific Northwest. We look forward to providing the highquality service that customers and insurance clients there have come to expect,” said Tim O’Day, president and COO of Gerber Collision & Glass. Gerber Collision & Glass is continuously looking to add new collision repair locations to its existing network in Canada and the U.S. Interested collision repair center owners are asked to contact Stephen Boyd at the (204) 594-1776 or stephen.boyd@boydgroup.com for more information.
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MAY 2019 AUTOBODY NEWS / autobodynews.com
Autobody News
Couple Found Dead in Long Beach, CA, Auto Body Shop; Parents Suspect Murder-Suicide by Jeremiah Dobruck, Long Beach Post
The man and woman found dead March 31 in an industrial area of Long Beach, CA, had been a couple for nine years, according to relatives who suspect they died in a murder-suicide. The husband had been texting his family overnight saying goodbye, his father, Oscar Hilario Montoya, said. Montoya and the wife’s mother, Ines Iraheta, said they went looking for their children after the texts. When they checked the couple’s auto body shop on 14th Street near Oregon Avenue on March 31, they found their cars outside, Iraheta said. Montoya said he broke the lock and, inside, they found their children: 42-year-old Blanca Estela Dominguez and 37-year-old Oscar Montoya Tejada. The couple, who didn’t have children, worked and slept at the shop, according to the parents. They’d recently been having problems, Montoya said. After they called for help around 3:20 p.m., rescuers from the Fire Department were the first to the scene, ac-
cording to authorities. Fire crews called in police, who shut down the block and brought in homicide detectives. Dominguez had been stabbed multiple times, and Oscar Montoya Tejada had apparently shot himself, according to police, who are treating the situation as a murder-suicide. Police said there weren’t any previous reports of domestic violence between the two. A search warrant left at the auto body shop said police found a knife, two guns and a spent round. Oscar Hilario Montoya said the gun was his son’s. “He has no words to say,” a worker from a nearby truck garage said, translating for the father. “This just feels really, really bad. He cannot believe what happened.” Looking around the cramped auto shop packed almost entirely with car frames and equipment, Oscar Hilario Montoya said he doesn’t know what to do next. Near the front of the shop, Iraheta dug through a box of cleaning supplies, sobbing. We thank Long Beach Post for reprint permission.
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Autonomous Cars Can’t Recognize Pedestrians With Darker Skin Tones by Jessica Miley, Interesting Engineering
A new report shows that the systems designed to help autonomous cars recognize pedestrians may have trouble recognizing people with darker skin tones. The worrying research has been uploaded to the preprint server arXiv. Evidence already existed that some facial recognition software struggled to work with darker skin tones. But the results of the study on autonomous cars have a potentially deadly outcome. World’s Best Show Bias Researchers from Georgia Tech investigated eight AI models used in state-of-the-art object detection systems to complete their study. These systems allow autonomous vehicles to recognize road signs, pedestrians and other objects as they navigate roads. They tested these systems using two different categories based on the Fitzpatrick scale—a scale commonly used to classify human skin color. Darker Skin at Higher Risk Overall, the accuracy of the system Continued from Page 26
Sleeping Site
can look at it and see what you guys have created, ‘til you figure it out.” Community members concerned with proposed sites around the city asked the council for reassurances that one unsanctioned encampment would not be cleared, only to be refilled with more out-of-town visitors seeking support from Santa Cruz. Others asked how neighbors to these sites would know if sex offenders were now living in the area, or how a new encampment would impact local tourism. Several pointed to a faction of the community’s struggles with drug addiction. Drug Abuse Fears Reign Melissa Freebairn, identifying herself as a registered nurse, criticized clean intravenous needle handouts taking place at the unsanctioned encampment. “We don’t have a shelter crisis; we have a drug crisis in this town,” Freebairn said to loud audience applause. 32
decreased by 5 percent when it was presented with groups of images of pedestrians with darker skin tones. And according to the published paper, the models showed “uniformly poorer performance” when confronted with pedestrians with the three darkest shades on the scale. These results take into consideration whether the photo was
Credit: Wikimedia Commons
taken during the day or night. In summary, the report suggests that people with darker skin tones will be less safe near roads dominated by autonomous vehicles than those with lighter skin. Bias-Elimination Starts With Diversity in Research The report thankfully gives a brief
Scotts Valley resident Suzanne McLean, a member of the leadership board for the Association of Faith Communities, said that the city is proposing a safe sleeping program that differs greatly from the existing unregulated encampment behind Gateway Plaza. “It’s gonna have structure; it’s gonna have security,” McLean said. “It’s going to have a lot more of those things that help us feel safe and not afraid; I just wanted to make a point that I hear that, and I hear that and keep going.” Downtown resident Carol Reid said the city was moving fast on the pilot program without incorporating public input. “I live downtown, my car is broken into, glass is on the street, [and] I walk by people shooting drugs,” Reid said. “It is a drug problem, and the whole county needs to be involved.” We thank Santa Cruz Sentinel for reprint permission.
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MAY 2019 AUTOBODY NEWS / autobodynews.com
outline on how to remedy this unfathomable reality. This starts with simply increasing the number of images of dark-skinned pedestrians in the data sets used to train the systems. Engineers responsible for the development of these systems need to place more emphasis on training the systems with higher accuracy for this group. The report, which the authors say they hope gives enough compelling evidence to address this critical issue before deploying these recognition systems into the world, is another reminder of the general lack of diversity in the AI world. Unfortunately, this isn’t the first report of potentially deadly racism in AI-powered systems. In May of 2018, ProPublica reported that software used to assist judges in determining the risk a perpetrator posed of recommitting a crime was biased against black people. Racial Profiling Is Lethal The system is used by judges in criminal sentencing; it provides a score based on whether the person is
likely to reoffend. A high score suggests they will reoffend; a low score suggest it is less likely. The investigative journalists assessed the risk score assigned to more than 7,000 people in Broward County in Florida in 2013 and 2014 and then watched to see if the same people were charged with any new crimes in the next two years. The algorithm not only proved to be unreliable—only 20 percent of the people predicted to commit violent crimes did so—but also racially biased. Black defendants were more likely to be flagged as future criminals, wrongly labeling them at almost twice the rate of white defendants, while white defendants were mislabeled as a low risk more often than black defendants. The AI development community must come together and take a public stand against this sort of massively damaging bias. We thank Interesting Engineering for reprint permission.
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autobodynews.com / MAY 2019 AUTOBODY NEWS
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NORTHEAST 2019 Features OEM Panel on ‘The Changing Landscape in Certified Repair’ by Chasidy Rae Sisk
One of the highlights of the 2019 NORTHEAST automotive services show was the OEM repair panel on “The Changing Landscape in Certified Repair and Understanding the OEM Repair Procedures.” Moderated by Ron Reichen of Precision Body & Paint and Barry Dorn of Dorn’s Body & Paint, the panel consisted of Aaron Clark from Assured Performance, Leigh Guarnieri from Honda, Mark Allen from Audi, Kenneth Park from Volvo, Dave Gruskos from Reliable Automotive Equipment, and Rick Miller from Wadsworth International. After explaining the purpose of the panel discussion, Reichen jumped right in with his first question regarding how shops manage the equipment required by certification programs. Gruskos explained, “There’s no magic piece of equipment to keep everyone happy. OEMs do a lot of testing, so you have to get the spe-
“It’s important that you know cific list of equipment from the OEM. Yes, things will change, and your market and research the prevamore equipment will be required later lent vehicles in your area. Then, establish relationships with because vehicles keep evolvlocal dealers because many ing, and the equipment has to OEMs require dealer sponevolve with the cars. Before sorships,” he said. buying equipment, do your Reichen also noted that research. Any hastily made new equipment may be decision is a bad decision.” needed as new models and Allen agreed, noting that OEMs crash-test around Ron Reichen poses materials emerge. “Once you sign on, OEM 75 vehicles per model and questions to OEM repair panelists certification is a journey, not have a whole subset of engia destination,” he said. Clark neers responsible for testing emphasized the importance collision repair and docuof looking at equipment menting the procedures specifications to avoid realong with providing a list of dundancies whenever possitools and equipment. After ble, though he admitted that the initial repair, the vehicles some OEMs require specific are crash-tested again to enequipment. sure that the repaired vehicle Moderator Barry Allen added, “When we holds up to the OEM’s stanDorn asks how shops’ ability to revamp our repair procedards. Reichen suggested that properly use equip- dures, we try to maintain relment is monitored evance so new equipment shops determine which by OEMs isn’t necessary and we can manufacturers they should seek certification from by looking in help keep the budget in line.” Dorn asked panelists if there local parking lots to identify which have been changes since last year rebrands are most common.
garding how a shop’s ability to properly utilize equipment is monitored. Guarnieri said Honda requires that certain classes be taken and added that training has improved capability. Gruskos added, “Reliable puts a lot of effort into training our equipment because shops need to be prepared to do it the right way. No one wants the liability of performing a repair half-way.” Park said, “It comes down to doing everything the right way. Cars aren’t made the same way they used to be, and they don’t take hits the same. Educate yourself [as] best [as] possible and invest wisely. The future is OE. There’s no such thing as simple repairs anymore, but OE certification gives shops a competitive edge in their markets. OEs just ask that you repair the vehicles correctly. A lack of education and training will hurt you in the long term and put your customers in danger.” Park also noted that it’s difficult to specialize in more than a couple OEs. “If you’re prideful in what you See Changing Landscapes, Page 36
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American Honda Enjoys Success at NORTHEAST 2019 by Ed Mayer
American Honda is pleased to announce its recent success at AASPNJ’s NORTHEAST 2019. “We’ve participated since I arrived at Honda five years ago, and the show has grown and matured each time,” said Ed Mayer, Honda collision group market manager. For the third straight year, Honda held its exclusive “Power Up With ProFirst” standing-roomonly guest speaker sessions for its ProFirst Certified shops. One-hundred-sixty lucky ProFirst shop representatives heard from a wide array of Honda dignitaries during two sessions, including Leigh Guarnieri, national collision group marketing manager; Rossana Alvarez, ProFirst certification assistant manager; Kirk Adams, collision parts assistant manager; and Duane Plankell, Honda service information systems manager. The speakers discussed Honda’s collaboration with CCC Information Systems’ Collision Parts Promote platform. “With Promote, repairers have significantly better opportunity to include OEM parts in the repair mix,”
noted Guarnieri, who described CPP as “tremendously effective.” Plankell’s real-time demonstration of service information access gave a live view of what Honda expects the ProFirst facilities to do when setting up and executing a repair plan. Mark Claypool, founder of Optima Automotive and a keynote speaker, gave a presentation titled “Maximizing Your Online Visibility and Honda ProFirst Certification.” During the segment, Claypool pointed out the advantages and ROI of actively managing your online presence and the unfortunate pitfalls of not doing so. Participants learned about specific strategies and several available resources to assist them in their pursuit of profitability and growth. Industry veteran Mike Anderson presented “Positioning Your ProFirst Facility in the Collision Repair Industry: How to Thrive and Not Just Survive,” a two-hour look at industry trends, how to stay on top of them, and how to be competitive in that environment. “Thirty-six percent of consumers prefer to do business with
you when you are closed. How are you positioned to capture those opportunities?” Anderson asked. He showed the shops specific areas for improvement and cited where the industry is today. “What you’ve done to become successful today is not what will make you successful in the future,” he said. As usual, Anderson’s sessions drew significant group participation. Several participants provided feedback saying the Power Up sessions were beneficial. “I come to these every year,” noted Claudio Tommolillo of Classic Auto Body in Paterson, NJ. “You learn something every time, and that’s what it is all about.” Larry Jaskowiak of Gerber Collision & Glass commented, “Honda has built a solid network of locations with an exceptional support team.” Honda thanks AASP-NJ for the opportunity to have participated and looks forward to 2020.
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Payscape, SCRS Partner on Member Benefit
Financial technology company Payscape has partnered with the Society of Collision Repair Specialists. Through this partnership, they will be able to provide members discounted processing rates and world-class financial technology to further streamline their business operations. “Payscape is excited to partner with SCRS,” said John Mills, vice president of Enterprise Sales at Payscape. “Given their initiative to provide members with trusted sources and advanced learning, we aim to enhance their financial technology portfolio and hope to progress both our organizations.” Through this strategic collaboration, SCRS will have the ability to negotiate more competitive credit card processing rates for the small to mid-size businesses that are members of its organization. Business owners will be able to expand their payment processing services through innovative software solutions and increase cash flow.
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Continued from Page 34
Changing Landscapes
do, a few OE certifications should be more than enough. Most importantly, you want to be able to sleep at night because you know you’re doing the right thing. Safety has to be the top priority,” he said.
Kenneth Park from Volvo, Leigh Guarnieri from Honda, and Dave Gruskos from Reliable Automotive Equipment
Allen stressed that the most important tool in any shop’s toolbox is its technicians. “Why wouldn’t you keep upgrading that tool through education and training? Their shortcomings should be viewed as opportunities to bring them to greatness,” he said. Reichen added. “There have been a lot of changes in the collision repair industry, and it’s no longer a trade—it’s a skilled profession.” Miller expanded on that, explaining that during an assessment, Wadsworth International serves as an extension of the manufacturer. It evaluates the shop for a culture change, including consistency in accepting changes. Clark added, “It’s a universal opinion that the bar has been raised, but there’s still a lot of room for improvement. Training is the biggest deficiency of a lot of shops. While training may exist within the organ-
ization, it’s not being received by the person who actually repairs the vehicle. In the near future, shops can anticipate shifts in training requirements being reinforced for the individual actually touching the car.” The panelists encouraged shop owners to research equipment and buy the best they can by focusing on the capabilities of the equipment and how it can benefit the shop in the future. In response to Reichen’s question about how OEs and vendors ensure shops know how to use the equipment, Gruskos said, “When a shop buys our equipment, it comes with an instructor because we want to make sure the techs know what they’re doing, and we don’t want the liability of someone getting hurt because they don’t know how to use the equipment properly. I do my best to train everyone, but it can be challenging since techs want to do things their way. If we train them and they take OE classes, hopefully they’re using the equipment correctly.” Reverting the discussion back to shop culture, Guarnieri emphasized, “Nothing seems to [change a shop’s culture] quite as well as getting the techs to OE training facilities. They’ll come back with a different attitude because they see how it could be and recognize their bad habits. When you achieve that culture change, you’re going to have a really good shop without monitoring your team every second.” The conversation then turned to paying technicians a flat rate. “Flat rates are a thing of the past,” Park said. When Clark’s shop switched from a flat rate, he shared, “I lost a little gross profit initially, but I earned it back and then some. It’s important to find the proper blend of productivity and quality to make your shop successful. An hourly rate allows you
PPG Honors CHC Paint & Body Shop Supplies PPG announced that its automotive refinish business has named CHC Paint & Body Shop Supplies of Toronto, Canada, its 2018 Platinum Distributor of the Year. The annual award honors the distributor that demonstrates outstanding performance, loyalty, product knowledge, and customer service and support. John Parran, PPG director, Platinum Distributor program, U.S. and Canada, presented the award at 36
the annual PPG Platinum Distributor Conference held Feb. 21–24 at the Loews Royal Pacific Resort in Orlando, Florida. The annual conference brings together PPG Platinum Distributors from across the United States and Canada. Pino Chiappetta, CHC president, and the company’s senior leadership and regional managers accepted the award on behalf of the CHC organization.
MAY 2019 AUTOBODY NEWS / autobodynews.com
to allocate resources more fluidly, and anything you can do to improve the culture of training and learning is a win.” Gruskos reminded attendees, “We’re talking about people’s lives here, and you can’t put a guy on the clock and expect the same quality. The most important thing is a safe, proper repair.”
Rick Miller from Wadsworth International, Mark Allen from Audi, and Aaron Clark from Assured Performance
Reichen added, “Highly skilled and trained people do highly skilled jobs. Your techs with the highest skill sets should be compensated at a higher level.” Gruskos noted, “Techs tell me they want to go to training but don’t want to be punished financially. Train-
ing should be rewarded, but many shops owners are fearful because they wonder how they’ll be able to protect their investment in a tech sent to training.” According to Allen, shops should see training “as a development plan and a succession plan. You’ll need to replace the experienced technicians retiring in the near future. Hire and train multiple techs at once to reduce the loss of productivity. This is an investment in the longevity of your business and helps drive us forward as an industry.” Additional topics included certified pre-owned vehicles, OEMs’ desire for brand loyalty, and the role of dealerships as sponsors for OEM certification. The OE representatives in attendance urged shops to reach out to them if they are unable to locate repair procedures on their websites so the procedures can be created. Everyone on the panel agreed that they anticipate an increase in parts restrictions as technology continues to develop. The panelists concluded by giving attendees an opportunity to ask questions.
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Marcia Seebachan Joins Shops to Back Insurer-OEM Procedure Legislation in Texas as it caught on fire, burning his legs and “exposing the bone in some Marcia Seebachan, one of two oc- places,” she said. cupants who suffered severe injuries Seebachan said her husband following the crash of a vehicle re- couldn’t come to the hearing, doubtpaired outside of OEM procedures, ing that he could “endure this.” testified April 9 in support of a bill The jury largely agreed, holding requiring insurers to reimburse those the shop 75 percent responsible for procedures. their suffering and determining John Eagle Collision should pay the SeeSee cover stories this issue. She and her husband, Matthew bachans $31.5 million. (The couple Seebachan, were traveling in the Fit and shop later settled for an undison a 75 mph stretch of road in 2013 closed amount.) when a 2010 Toyota Tundra in the Honda OEM repair procedures other lane hydroplaned into their demand a shop tack-weld the front path, leading to the Fit striking the and rear corner edges of the new roof and then perform a combination of two- and three-plate spot welds and MIG plug welds. More than 100 welds are required by the manufacturer, Seebachan said. John Eagle Collision Center body shop director Boyce Willis in a deposition agreed the facility bonded the roof with 3M 8115 adhesive despite little concrete evidence or engineering knowledge to support the decision — particularly as 3M and Honda instructions state otherwise. Seebachan said testimony at the trial held that were the vehicle repaired correctly, Matthew and Marcia Seebachan were seriously injured her husband’s outcome after their 2010 Honda Fit collided with a hydroplaning would have just been a bro2010 Toyota Tundra. Credit: Tracy Law Firm via PRNewsFoto ken leg—the same limb “I right front quarter of the Tundra in a cleaned his bones on.” T-bone collision. “… It is unconscionable that Experts for the plaintiffs said in companies can undermine this court documents that the severity of process by approving insufficient rethe crash and the Seebachans’ in- pairs,” Seebachan told the commitjuries were the result of John Eagle tee. Doing so keeps Texans from Collision Center adhesive-bonding the Fit’s roof during a $8,500 hail re- making informed decisions, she said. pair for the prior owner. The Seebachans also had no “We were both seriously injured, idea the vehicle had received body and it is exceptional that we are alive work when they bought the Fit, as today,” Marcia Seebachan told the the CARFAX report only reflected Texas House Insurance Committee upholstery work, according to their on on Tuesday during a hearing on attorney Todd Tracy. House Bill 1348. Representatives The report was “completely infrom Texas auto body repair trade accurate,” for the vehicle had actugroups also testified in support. ally been “repaired poorly,” Marcia Seebachan said two of her in- Seebachan agreed. juries should have killed her, and anUsed car sales in Texas outnumother could have. ber new car sales, but those buyers “Matthew was not as fortunate,” are “no less deserving of the right to she said. He was trapped in the car be safe” and make informed deciby John Huetter, RepairerDrivenNews.com
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MAY 2019 AUTOBODY NEWS / autobodynews.com
sions, she said. It would never be known how many times fatalities or injuries could have been prevented by a correct repair, but lawmakers could
done correctly,” she said. HB 1348 will hold insurers to OEM repair procedures. It declares that a carrier can’t “disregard a repair operation or cost identified by an estimating system, including the system’s procedural pages and any repair, process, or procedure recommended by the original equipment manufacturer of a part or product.” In addition to demanding insurers acknowledge repair procedure, the bill defines “(r)easonable and necessary amount” as “the amount determined by the original This 2010 Honda Fit burned following a collision with a equipment manufacturer’s hydroplaning 2010 Toyota Tundra. manufacturer and estimating stop some future harm by passing systems required to repair a vehicle to the bill and requiring OEM proce- the condition before the covered damage to the vehicle occurred.” dures. It also defines “like kind and Seebachan said her current vehicle has expereinced hail damage. quality” for aftermarket parts and adBecause of what happened to them, dresses steering and questionable they don’t feel capable of taking it prevailing rate surveys. The bill is currently pending in somewhere for repairs, she said. “We don’t know that it would be the Insurance Committee.
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HONDA CALIFORNIA
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MAY 2019 AUTOBODY NEWS / autobodynews.com
Please contact these dealers for your Honda or Acura Genuine parts needs. CALIF O R N I A
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In Reverse with Gary Ledoux
Gary Ledoux is an industry veteran with 48 years’ experience in the automotive and OEM collision parts industry. His column appears exclusively in Autobody News. He can be reached at YesterWreck@yahoo.com
The 1970s - Part 1 - The Collision Industry Starts to Mature If the 1940s and 1950s marked the industry’s earliest “modern” beginnings and the 1960s signified the industry’s “grammar school” years, the 1970s could be seen as its teenage years. Changes were happening, signs of maturity were beginning to show, and yes… there were some “growing pains.” Veterans of that period claim it was like operating in the Wild West. After calling on a shop, one former insurance adjuster noted, it was not uncommon to return to one’s car to find an envelope stuffed with $100 bills over the visor to ensure continued “favorable treatment.” Another veteran noted that during that time, the collision estimating guides were competing for market share. Each one tried to outdo the other by building in repair times here and there and then showing the
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prospective shop how much more time and money they could make with their brand of estimating guide. It was not until the insurance companies started writing their own estimates that they started noticing the differences. It was a time of what one industry veteran called the “Infamous Two-Man Shop.” Young technicians wanting to strike out on their own, either because they didn’t like the work they were being handed or because they thought they would make a bundle of money as an owner. They would leave their shop, rent a small garage and start their own business. It wouldn’t be long before they’d realize they needed some help and would recruit a buddy from their former shop. They then would go to all the old shop’s insurance contacts, tell them they would do the work a little cheaper, and the cars would start to
MAY 2019 AUTOBODY NEWS / autobodynews.com
roll in. Unfortunately, in those days before job-costing, the new shop never knew if they were profiting or not. Many simply went bankrupt and closed the doors. The 1970s saw the seeds sown for what would become the model for 21st century collision shops. Before the days of ABRA, CARSTAR and Caliber, Pittsburgh industrialist Ward Wickwire signed the first franchising agreement to open an American Way International body shop in Pittsburgh, an early model of the MSO concept. AWI never became a household name and was never nationally recognized, but this period would give rise to those who were. In 1972, Anthony A. Martino opened his first auto painting shop in Wilmington, DE. Using the first letter of his last name and first letter of his first and middle name, he called his new business Maaco Auto
Painting. He soon opened additional shops that provided a good overall paint job at a reasonable cost. By1977, he had almost 200 locations. Innovative ideas were popping up all over the place. Early 1972 saw a short trade magazine article suggesting that a car should be totally torn-down in order to write a complete and correct damage estimate. This was perhaps the first time this was mentioned in a trade magazine, indicating this might have been a “novel” concept. Industry associations were growing in numbers, strength, and savvy. State and regional associations were popping up all over the place and joining with national associations. The industry’s voice was getting louder. This was spurred by the growth in number and popularity of industry trade magazines. It was be-
coming easier for a shop owner to see what was going on outside his four walls and easier for them to take an active part in the industry. Traditional part jobbers had been carrying paint and related collision repair products since the 1930s. By 1970, of the roughly 25,000 full line automotive parts jobbers in the U.S., about 15,000 carried paint and body supplies to one extent or another, but only 2,000 or so actually promoted the sales of these items. This left the door wide open through the 1960s and early 1970s for a slightly different business model—that of the paint, body and equipment (PBE) jobber. The Automotive Service Industry Association (ASIA) defined a PBE jobber as a store for whom at least 70 percent of their sales come from paint, abrasives, tape, collision repair equipment and the like sold to body shops. At a 1972 industry show, ASIA recognized the PBE jobber as an official industry entity. Automotive technology continued to move forward—although it was not always a pretty sight. In 1973, the 5-mph bumper was intro-
duced. Still made of chromed steel, the bumper was supported on the frame by shock-absorber units allowing the bumper to move in and out. In 1974, similar bumpers became standard equipment for the rear of the car. The bumpers were described as “monstrosities” and appear to have been added to the car as an afterthought because essentially, they were. In the 1970s, vehicle engines and transmissions were more durable but lacked today’s e-coat to prevent rusting. An otherwise well-running car would rust out in 3–4 years, especially in areas where road crews used salt and sand on snow-covered roads. Salt, water, and sand, combined with exposed sheet metal all contributed to some serious rust problems. Fixing rust holes correctly and legitimately was time-consuming and expensive … and not covered by insurance. In many cases, the entire panel had to be replaced, including rocker panel rear quarters or front fenders. And even when panels were replaced, rust would break through someplace else. It was like a cancer.
Used-car dealers found themselves with lots full of otherwise good used cars—except for the rust holes—that they wanted fixed as quickly and cheaply as possible. Left to their own devices and being paid on a “percar” basis, creative body technicians found quick and easy, albeit non-permanent, ways to fill the holes and make the car look good—and just long enough to get it sold. This led to some sore customers, and a black eye for the used car industry and body repair industry. Paint technology started to change in the 1970s as well. Paints became more durable but had some unforeseen consequences. In the early 1970s, DuPont introduced its Centari line of paint—a polyurethane-based product that required an isocyanate hardener. Little thought was given at the time to safety measures and little was known about the effects of isocyanates. Suddenly, painters began experiencing asthma symptoms. Many ended up in their local hospital emergency room. Depending on their length of exposure or how they were exposed to it—either by inhaling it or being exposed by touch—the ill ef-
fects could have been short-lived or permanent. The ill effects of shooting Centari and paints with similar chemical properties were not the only hazards body shops faced in the ‘70s. In the days before we as a country and as a culture grew environmentally conscious, body shops had some horrendous ways of disposing of highly toxic waste products. Many times, leftover paint was stored for a while until it gelled, then was thrown in the trash. Other times, it would be thrown on waste paper and burned. Some shops threw all waste products, including paint, thinner and primer, into a 55-gallon drum. When the drum was full, it was dumped off in some remote area—sometimes with the drum and all, or sometimes just the contents were dumped and the drum was reused. Some poured the barrel’s contents on the gravel parts of their lots or driveways to keep the dust down. The Resource Conservation and Recovery Act (RCRA), enacted in 1976, was the principal federal law in the United States governing the disposal of solid See The 1970s, Page 44
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From the Desk of Mike Anderson with Mike Anderson
Mike Anderson is the president and owner of Collision Advice, a consulting company for the auto body/collision repair industry. For nearly 25 years, he was the owner of Wagonwork Collision Center, an OEM-certified, full-service auto body repair facility in Alexandria, VA.
Industry Misses 2 Important Aspects of John Eagle Collision Case In the 18 months since a Texas couple was awarded $42 million by a jury who found a dealership body shop had improperly repaired the vehicle in which the couple were injured in a subsequent accident, I’ve probably been asked about the case at least 20 times a week. Even now, I continue to get phone calls, emails and questions about it from those in my classes. Based on those exchanges, I think there are two important things related to what happened that a lot of people seem to miss. The first is a fundamental difference between a warranty and a liability. We all understand a warranty, defined as the “written guarantee issued to a purchaser.” Let’s say you repair Suzy Smith’s car, and she later sells that car to Joe Brown. Joe later notices the paint is starting to flake off the bumper, and he brings the car back to your shop. Under the terms of the warranties I see most shops providing to their customers, you can kick Joe to the curb. Most shop warranties say the work is guaranteed only to the customer who had the work done at the shop. It doesn’t transfer to any subsequent owners of
that vehicle. But liability, defined as “the state of being responsible for something,” is different. I will preface this by saying I’m not an attorney, but from my understanding, if you repaired Suzy Smith’s car and didn’t do something related to the safety of that vehicle, you could be held liable even if it’s Joe Brown, as a subsequent owner of that car, who is injured in the vehicle based in whole or in part on the repairs you did. That’s essentially what happened in the Texas lawsuit. Matthew and Marcia Seebachan purchased a used Honda Fit that had previously been repaired by the John Eagle Collision Center. If the Seebachans had decided the paint didn’t match and took it back to the dealership, John Eagle wouldn’t have to warranty the work, presuming the shop’s warranty extends only to the owner who had the work done to the car. But the shop was still found liable for the couple’s injuries in the subsequent accident. The jury ruled the repairs made to the vehicle before the Seebachans owned it weren’t performed correctly. The replacement roof the dealership had put on the vehicle
Continued from Page 43
gust 1971 issue of Automotive Service and Body News magazine noted that shop owners had to comply with federal inspectors who were able to stop in and inspect their shop at any time with fines for safety infractions reaching as high as $10,000. ASBN suggested 10 areas where inspectors were liable to look for safety hazards. The article also noted that the federal government was poised to “plague shop owners.” Shop owners now had something else to keep them awake at night.
The 1970s
waste and hazardous waste, which essentially ended shops’ practices of indiscriminant waste-dumping. And if managing hazardous waste wasn’t enough to give shop owners a headache, OSHA entered the industry lexicon in the early ‘70s as well. The Occupational Safety and Health Act of 1970 took effect April 28, 1971. An article in the Au-
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was bonded rather than welded to the vehicle as called for by Honda—and the roof’s separation in the Seebachan’s collision, the jury found, led to the degree of their injuries. To my way of thinking, that means you’re still potentially liable for the repairs you made to a vehicle eight years ago, even if that vehicle has been resold two, three or 10 times since. I see too many shops confusing “warranty” and “liability.” I haven’t studied all the documents and transcripts from the case, but the second key point I think a lot of people miss is this: If you tout your shop as being certified by certain automakers, yet you fail to follow the repair procedures called for by those automakers, that could be construed as negligence, which is defined as “failure to take proper care in doing something.” Again, I’m not an attorney. But
the legal argument that could be made goes something like this: As a car owner, I saw on your website, in your advertisement and on your signage at your shop that you’re certified by ABC Automaker. That tells me you are going to do everything ABC Automaker says to do in repairing one of their vehicles. If you deviate from that, that’s negligence on your part because you portrayed yourself as being certified and knowledgeable in repairing ABC Automaker’s vehicles. I think that could conceivably extend beyond just automaker certifications. Think about other ways you portray yourself as a qualified expert, whether it be the I-CAR Gold Class designation, or training or certifications from other organizations. Warranty, liability and negligence are three terms this industry really needs to understand.
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Industry Insight with John Yoswick
—John Yoswick is a freelance writer based in Portland, Oregon who has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
Panel Discusses Strategies for Shops Dealing with ADAS with Sublet Vendors, Insurers Just getting a basic invoice from a dealership or other vendor for any advanced driver assistance systems (ADAS) calibration work that your shop sublets to those companies may not be adequate evidence that the work was done fully and correctly, two speakers said at the Collision Industry Conference (CIC) earlier this year. “Remember, the liability still remains with you since you chose that third-party,” Roger Cada of Accountable Estimating said. “Some third-party providers don’t do all the things you think they should be doing. So how do you keep records to show that it was done correctly?” Jake Rodenroth of asTech noted that many of these calibrations are new procedures for everybody: dealerships, glass providers, mechanical repair shops—even companies such as his that are establishing centers specifically to conduct calibrations.
Jake Rodenroth of asTech said shops shouldn’t presume dealerships or other sublet providers necessarily know all the necessary steps of ADAS calibrations
“Don’t assume that they did it right,” Rodenroth said. “You really need to audit them. To do that, you need to understand the requirements yourself. Just handing if off to a sublet is not good enough.” Those requirements for calibration of the blind-spot monitoring system on a 2018 Honda CR-V, for example, include ensuring the suspension has not been modified, that the tire size and pressure are correct, that the gas tank is full, that all excess cargo is removed, and that there are no objects on the instrument panel, 46
hood or windshield. Rodenroth suggests getting documentation that tire pressures were checked, getting a receipt for fuel that was purchased, and documenting vehicle mileage before and after calibration to help ensure required test drives were done. “If you’re using dealers or [any sublet provider], go there and take photos for the claim file of the vehicle actually set up with the targets,” Rodenroth advised. “That helps document and justify that it was done.” One panel discussion at the conference revolved around the relationship between insurers and repairers when it comes to the increasing technology of vehicles. There have been efforts in at least six states this year to enact legislation requiring shops to follow OEM repair procedures and for insurance companies to pay those shops accordingly. But one repairer said that while such mandates could be helpful, they won’t resolve all shop-insurer disputes, in part because in some instances those OEM procedures are somewhat vague. “We need some more help from the manufacturers with some clarity,” said Darrell Amberson of LaMettry’s Collision in Minnesota. “Getting into the calibrations, I’m seeing some wording, for example, that says calibrate a radar system if there’s an impact in the surrounding area. What is the ‘surrounding area’? Is that within a foot, 2 feet, 3 feet? We need some help on that.” He said other procedures call for a calibration of a particular system “in the event of a collision,” without further defining if that means any type of collision, no matter how minor. “What is a collision? I find myself often having discussions with insurance companies, testing us on that,” Amberson said. “At what severity do we do this step?” Panelists at CIC were asked how a shop can address an insurer who says that decisions about whether they pay for vehicle scanning are made on a “case-by-case basis,” given that au-
MAY 2019 AUTOBODY NEWS / autobodynews.com
tomaker repair procedures call for such scanning on virtually every vehicle shops are repairing. Amberson said that when he presses someone making
Darrell Amberson of LaMettry’s Collision in Minnesota said he addresses insurers saying they pay for scanning on a case-by-case basis by asking for their criteria in making those decisions
that statement, they “have a hard time articulating the standards.” “I ask them, ‘What’s the criteria? When do you pay for it and when do
RN SOUTHE
you not?’ Often, they struggle to answer that,” Amberson said. “For us to come up with standards on our own, by our own assumptions, frankly just doesn’t make sense. When it comes to electronics, the only way to look at a system is through a scan tool. So under what circumstances do I look at it and when do I not? They struggle to answer that. So for our company, we have the philosophy that whether we get paid for it or not, we do a pre- and post-repair scan on every car. If nothing else, I can sleep at night by doing that.” Jason Bartanen, director of industry technical relations for I-CAR, compared scanning to 3-dimensional measuring, saying “it’s impossible to analyze all the damage on a vehicle” without it. Rodenroth said he tells shops to put the automaker position stateSee Dealing with ADAS, Page 55
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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
From Rock Star to Crash Star
owner of 1Collision Network—but they nearly did. It all began when Keller saw the Beatles perform on “The Ed Sullivan Show” when he was 10 years old. “I knew right then that I wanted to be a musician and specifically a drummer,” he said. “I was immediately drawn to Ringo and shortly after that, I began drumming along to songs on the radio on an improvised drum set that consisted of two upside-down wastebaskets and a pair of rulers. I cut out a picture of a real drum set from a JCPenney catalog and taped it to the bathroom mirror, and I guess my parents got the hint because I The Baxters consisted of (from left) drummer Jim Keller, got an $89.95 three-piece lead guitarist Martin Krohne and bass player Greg Scott drum set for Christmas.” Keller learned how to monetize Things didn’t go exactly that way for Jim Keller, collision lifer and his love for the drums and entered In the song “Takin’ Care of Business” by Bachman-Turner Overdrive, the band offers their prescribed formula for rock star success: “Get a secondhand guitar, chances are you’ll go far if you get in with the right bunch of fellows.”
the collision repair industry at the before joining a few local rock bands and playing cover songs by Jimi same time. “At 12, I was making $25 cash Hendrix and Savoy Brown. “We played a lot of blues-influon Saturday nights performing at weddings with a polka band,” he enced music and acid rock,” he said. said. “I was also working at my “A few years later, a friend of mine friend’s father’s body shop, sanding encouraged me to audition for a band called In a Hot Coma, and I cars, picking up supplies on got the gig.” my bike and driving cusGood things happened tomers home, even though I quickly for In a Hot Coma. obviously didn’t have my The band was soon asked to license yet. I made $40– open up for Cheap Trick right $100 weekly there, which before their debut album on made me the richest kid in Epic was released, Keller town.” Today, Keller is said. After taking some forthe owner of the After several years, mal lessons, Keller started 1Collision Network. The network has Keller left In a Hot Coma playing percussion for his 43 body shops and played in local bands, high school’s band, includand counting including a short stint playing marching band, jazz ening with Howie Epstein, who later semble and orchestra. To become a better drummer, became the longtime bass player for Keller practiced his drums for 90 Tom Petty and the Heartbreakers, as minutes in his basement every day well as The Shivvers, a popular Mil-
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waukee power pop band. He then joined a Rockford-based pop group called The Names until he joined The Baxters with Martin Krohne on guitar and Greg Scott on bass. After capturing second place at a State Fair Battle Of The Bands competition in West Allis, WI, The Baxters made their debut at a popular
later, “Don’t Run Away” appeared on a CD featuring iconic Milwaukee band Great Lost Brew Wave, while “What Ya Gonna Do” made it onto a 2001 CD set called History in 3 Chords. In addition to Ringo Starr, Keller said, several other legendary drummers have influenced him over
punk club, Zak’s, Milwaukee’s first punk club, on New Year’s Eve. For the next two years, the trio wrote original songs and played shows in cities such as Rockford, Chicago, Milwaukee and Madison. With 200 original songs in their repertoire, The Baxters came up with two tunes that got some attention in 1980: “What Ya Gonna Do” and “Don’t Run Away,” both of which can be heard on YouTube. The band recorded the songs at Star Studios on National Avenue but couldn’t put together enough money to release a record. Seventeen years
the years, such as John Bonham (Led Zeppelin); Keith Moon (The Who) and Bun E. Carlos (Cheap Trick). Keller got to know Carlos when his band opened for Cheap Trick and helped him in one unique way. “I would use the same drumsticks over and over and beat them up because they’re not inexpensive,” he said. “One day, I came offstage and Bun E. saw that my sticks were all nicked up, so he got one of his roadies to give me a large box full of his used sticks. I used them for the next two years and will never forget Bun E. for that!”
“At 12, I was making $25 cash on Saturday nights performing at weddings with a polka band,” — Jim Keller
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The Baxters broke up at the end of 1981. Keller opened a body shop and put his drumsticks down, while his two bandmates formed a top 40 band called Tommy Gunn. “It was the right time for me to give up my rock star dreams and pursue a career, as well as get married and have some kids,” he said.
Keller now plays the guitar and piano to relax and unwind
In 1985, Keller purchased his second shop and subsequently merged them with a large MSO and became a partner in a business that eventually operated 27 shops. He then got involved with Crash 1 and in 2013, it became 1Collision, which was headquartered in Milwaukee, WI. 1Collision has grown from eight
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shops to 43, and Keller is signing up new ones all the time, he said. “We’ve proven that we can help our network shops by maintaining excellent relationships with our insurance company partners, processing claims quickly, using the latest claim processing and OEM repair technologies and processes by the implementation of our SMART Performance System. We also enable them to succeed by utilizing our marketing, business strategy, HR & recruiting, equipment and material purchasing programs, financial management programs, and utilizing O.E. parts. We also offer consumers a written, limited lifetime warranty,” he said. Although he is now a successful businessman who is well-known in the collision repair industry, Keller looks back fondly at his years as a rocker and still loves playing music, he said. “I play the guitar and the piano to relax and unwind, but not the drums anymore,” he said. “The Baxters never hit big, but it was a great experience, and I’m happy to know that people still listen to our songs almost 40 years later.”
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Truck Topics 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
Truck Topics 1: Heavy Duty Events Address Collision Issues People have been repairing collisiondamaged trucks since August Fruehauf stuck a trailer behind a Ford Model T in 1914 to create the first semi-trailer rig. Oddly, it is only within the last year or so—over 100 years later— that the collision repair side of the trucking business started to coalesce as an industry. The industry’s development was recently accelerated by two key events.
TMC Event The Technology and Maintenance Council, better known simply as the TMC, has been around since 1956. It brings fleets, manufacturers, suppliers and other industry stakeholders together to solve the industry’s toughest
(l to r) Brad Keiterand and Nick Notte
problems regarding transportation equipment. The TMC is an integral part of the American Trucking Association, formed in 1933 to represent the nation’s motor carrier industry. The TMC’s latest event, dubbed “Beyond the Frontier of Maintenance,” was held at the Georgia World Congress Center in Atlanta from March 18–21. The main focus of the TMC has traditionally been fleet maintenance and mechanical repair, although a year ago the organization started looking at the complexities and dynamics of HD collision repair. Repair Roadmap Everyone knows that it’s bad enough 50
to be in a collision with the family car, even if there aren’t any injuries. But when a commercial truck is involved in a collision, there is a lot more to consider. This is explored in the “Repair Procedures Roadmap” initiative chaired by Joey Fassett, president of Al’s Auto and Truck Repair in Exeter, NH. The Roadmap begins with “preplanning” for an accident along a truck’s usual route. (Trucks are rarely near their home port when an accident occurs.) It also covers how to deal with damaged freight or preserving freight, how to preserve and deal with accident evidence, and more.
Collision Repair Guidelines Unlike the auto industry, the HD truck OE manufacturers do not provide collision repair procedures and guidelines, or even position statements on collision repair, for several reasons. The HD industry is then left to its own devices to create its own repair procedures based on best practices, accepted protocols and what information they can glean from the manufacturers of a truck’s component parts. Chris Sterwerf of Fairfield Auto and Truck Service in Fairfield, OH, is the chairman of TMC’s Heavy Duty Collision Repair Guideline Task Force and is leading the charge to create HD collision repair procedures. Currently, exploration and guidelines for frame repair and refinishing are on the table. During a break-out meeting at the TMC event, Sterwerf took several other suggestions for areas to explore, including how and when to check other chassis components such as steering mechanisms. HD Repair Forum Event On April 2 and 3, the second annual HD Repair Forum was held in Fort Worth, TX, drawing an enthusiastic crowd of about 250 HD repairers, shop owners, consultants, technical advisors and OE executives. It was founded in 2018 by Brian Nessen, perhaps best known for his work with the Stone Fort Group managing
MAY 2019 AUTOBODY NEWS / autobodynews.com
the auto collision industry’s NACE show, and long-time collision industry veteran Dan Risley, known for his work with Automotive Service Association and the Society of Collision Repair Specialists.
(l to r) Brian Nessen presents John Spoto with the Service Provider of the Year award
The Forum featured a wide array of speakers from several different disciplines within the truck and auto col-
lision repair industry. Among those featured on the truck OE side were Bill Kahn, applications engineer for Peterbilt Motors; T.J. O’Hanlon, director of private label brands for Navistar; and Gregory Treinen, advanced technology marketing manager for Daimler representing Freightliner and Western Star Trucks. Also featured were presentations from Bob Morris of the Gas Technology Institute and Wally Dubno, sales managers for Clean Energy Fuels, who talked about the future of CNG and LNG as fuels for heavy trucks and some of the things about which repairers need to be cautious. Among the other presenters were two representatives from 3M who provided highly detailed presentations on practical repair of HD trucks, a representative from Chief who addressed HD truck damage analysis, See HD Events, Page 62
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New Car Technology Benefits Drivers, But How Does It Affect Body Shops? by Ed Attanasio
I was talking to a group of body shop owners the other day at a trade association meeting, and one said, “I’m not in the repair business anymore; I’m in the computer business! “These new cars are great for the consumers, but fixing them is getting tougher and more expensive.” In the end, diagnostics have quickly become a huge part of the collision repair process and a reality that shops need to accept. The ones that embrace the technology and become adept at using it will get more work while stragglers will eventually lose their spot in line. To find out about the present and future of automotive diagnostics, we interviewed one of the country’s leading experts on the subject. Michael Flink, national trainer/commercial product sales manager, has more than four decades of aftermarket experience. He has spent the last seven years with Autel, one of the world’s leading manufacturers and suppliers of professional diagnostic tools, equipment and accessories in the automotive aftermarket.
Q:
pair?
When did diagnostics become such a big part of collision re-
In 1982, diagnostics really took off, even though the very first computer-controlled system hit the market in 1979, when Chrysler introduced its Lean-Burn system in the K car (Aries, Reliant, LeBaron) An early computerized spark-advance control system consisted of three parts: the carburetor, the spark-control computer, and a group of eight external sensors. By the early or mid-80s, GM had the Electronic Spark Control System (ESC), which was the beginning of the computer age in cars with check engine lights , followed by OBD-II and then CAN (Controller Area Network) and then the beginning of ABS (Antilock Brake Systems) and TPMS (Tire Pressure Monitoring System). I witnessed all of these generations and evolution with those systems and now we’re going through it again with ADAS (Advanced Driver-Assistance Systems).
A:
52
Are more and more shops joining the diagnostics world out of choice or necessity?
Q:
The collision repair industry is now going through the same thing the mechanical repair industry went through in the ‘90s and early 2000s. When OBD-II came around, shops realized that they had to have a scanner to do anything on these cars, and when CAN hit around 2004, it be-
A:
to be able to repair on newer vehicles?
These carmakers are coming up with new systems and features all the time, so the shops have to stay on top of it. Audi recently announced a new system called V2I (Vehicle to Infrastructure Communication) that will display the ideal speed to drive in order to make all the green lights. It’s only currently
A:
“The collision repair industry is now going through the same thing the mechanical repair industry went through in the ‘90s and early 2000s.” — Michael Flink
came more important for body shops. The collision repair industry has done a wonderful job within the last few years of pricing out any type of technician because body shops didn’t want to spend money for diagnostic time and the equipment required. They were subletting the work and battle with the insurance companies to get paid for it, and now it’s come home to roost in the middle of their world. So, the insurance companies are starting to pay for diagnostics and the body shops are going to have to have someone on their staff that has these abilities. The early adopters are going to make more money and lead the way, while the latecomers are forced to farm stuff out. It’s killing their cycle time because the dealerships have their own work and can keep the shop’s cars there for 1–5 days, in many cases. The insurance companies are complaining that they have to pay these costs, whether the shop is farming it out or doing it inhouse. But if you’re subletting the diagnostics to the dealership, you have to pay for that rental car for an additional week, for example. The dealer’s own work is going to be a priority, so you never really know when you’re going to get the car back. As a result, the body shops that are doing their diagnostics in-house are favored by the insurance companies while those that are jobbing it out are not.
Q:
What are some of the newer systems that shops will have
MAY 2019 AUTOBODY NEWS / autobodynews.com
available in 13 cities, but if it works, I imagine it will be introduced in every major city in the U.S. Tesla is constantly developing features associated with autonomous cars; Audi has always been a front runner and Mercedes has some interesting new stuff as well. I travel around the country a lot, so I get to
play with all of the new technology, especially when it comes to the selfdriving and safety stuff, and I am very surprised and impressed at what KIA and Hyundai are doing. Their lane departure technology seems to be fairly advanced in comparison to others. The supercruise systems from GM and Cadillac are up there with advancements, and Ford is focusing more on the technology in their SUVs and trucks where they’ve developed a system that gives Ford truck drivers (blind spot) trailer coverage, so that the driver can look further and wider with their backup systems. The radar is in the tail light so if you back into something, it’s more than just replacing the light. Carmakers are also further developing new facial recognition systems that deal with the driver’s eyes and where they’re looking and also by monitoring the position of the steering wheel. The ADAS system will attempt to steer the vehicle between the lanes, but if it doesn’t detect some kind of minimum re-
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sistance from your hands on the wheel or if it detects that you’re looking down and not at the road ahead. These systems are going to alert drivers with haptic messages that will cause the steering wheel or the seats to vibrate in order to alert the driver. Some of the OEMs are also working on heart rate monitors, so we will likely see a lot of new systems leveraging that.
By 2025, will a large percentage of the costs associated with a collision repair be more involved with software calibrations as opposed to actual paint and R & I?
Q:
Absolutely. Front collision avoidance, automatic emergency braking, lane departure warning, as well as all of the cameras, sonar, radar and LiDAR are all now connected to some of the braking and wheel speed sensors, brake pressure, electronic power steering, and all of these are reporting. So, it’s the cross-pollination of these systems because it’s not just the ADAS part that’s involved. Active ADAS means that the system is doing something
A:
rather than just warning you, and that is where I think that area will really expand considerably within the next 2–3 years. A few years ago, many shops didn’t think that diagnostics were a must, but now they realize they’re becoming more important to fix cars, right?
Q:
Diagnostics is at an all-time high with body shops because now the insurance companies are requiring them to do pre- and postscans, which means they need to own at least one scanner. In the old days, we could just walk around the car and inspect it visually to write the estimate, but today we can’t see everything. What happened was that shops were writing estimates, but then while fixing the car they found out that one sensor was bad, this wire was pinched or module is going to be reset. So, now the shop has to write a bunch of supplements, which is a pain for the body shop and the insurance company, plus it lengthens that cycle time. Another problem is with
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a car that is near its total threshold, and then the shop finds $1,000 in additional work. Had they done the proper diagnostics, the vehicle would have been totaled, but they’re already committed. That’s why the insurance companies started insisting on getting pre- and post-scanning on each car, so that now they can write estimates for additional sensors, labor time, programming, which allows the shop to write a more complete estimate to start off. By performing diagnostics, you get a definitive view instead of speculating and take all of the whatifs out of the equation for both parties. Any shop working on cars made within the last four years is going to need at least one individual in-house who can perform diagnostics and have at least one full-functioning scan tool, not just a code reader. That’s the end game, but how do small independent shops get there affordably? Maybe they start out using a subscription service, and once they have someone on their crew who can do the diagnostics, they invest in a scanner. That seems to be a logical path to take.
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Dealing with ADAS
ments on scanning away and instead pull the actual specific repair procedures for the job. “There’s a lot of opportunity to justify the diagnostic requirements [aside from] just the position statements.” Rodenroth said. Greg Potter of the Equipment and Tool Institute pointed out that you can’t go to your doctor’s office without them doing some basic screening. “If I go in there just to get a signature, I’m getting weighed and my blood pressure taken,” Potter said. “It’s unfathomable to me to think that you’re going to work on a vehicle and not [scan] it. If there’s something very wrong with it, and you give it back to the customer [without doing] anything about it, and then something happens, I think you’re going to have some explaining to do.” Cada, who had a 30-year career in insurance, said the key is tying the need for the scan to “the event” covered under the insurance policy.
“If you can relate that back by documentation to the types of damages on the car, then you’re going to have success,” Cada said. “But if you’re scanning and find that what’s in there is nothing that was related to this loss, then it’s going to have to fall back on somebody else, because it’s probably not covered by the contract.” Panelists were asked how a shop can address being challenged by an insurer on increases in total repair costs when such increases are largely being driven by factors, such as vehicle technology and materials, beyond the shop’s control. “I think the opportunity for repairers is to have more complete line notes that explain what you can and cannot do with those substrates or electronics,” Rodenroth suggested. He also suggested pointing to instances where the shop used OEM repair procedures—such as those offered by some automakers for repairing headlight brackets—rather than just installing a new part. “That way it doesn’t appear to be too one-sided,” Rodenroth said. “Bumper covers are another opportu-
nity. Some OEMs say no, you can’t repair that bumper cover because of ADAS technology. But GM and Audi, for example, give direction about what you can and cannot do with regards to repairs. When you encounter those repair opportunities, and it is a good repair supported by the repair manual, certainly bring it to the bill-payer’s attention.” Amberson offered his own straightforward suggestion. “My advice to the repairer is simply to do the right thing,” he said. “Fix the car properly. Pay attention to the repair procedures. And let the chips fall where they may. We’re businesses. We deserve to be paid for what we’re doing. Nothing more and nothing less. I know it’s a challenge sometimes to convince an insurer they have to pay for extra steps. Statistically, we know that shops that scan cars and perform calibrations [have] a little higher severity than other shops. Our cycle time is a little worse than some other shops. But we’re doing the right thing on a more sophisticated, safer car. It’s to be expected they’re not going to be as inexpensive to repair.”
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National Associations with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
ASA’s ‘Washington Watch’ Webinar Features Industry Association Leaders On March 20, the Automotive Service Association (ASA) hosted “Washington Watch with Robert L. Redding Jr.” as part of its Webinar Wednesdays series. Redding, ASA’s Washington, D.C., representative, was joined by Aaron Schulenburg, executive director of the Society of Collision Repair Specialists (SCRS); Roy Littlefield IV, director of government affairs for the Tire Industry Association (TIA); and Tom Tucker, director of state government affairs for the Auto Care Association (ACA). Tony Molla, ASA vice president of industry relations, welcomed attendees to the update on the 2019 state legislative sessions and promised they would learn about legislation impacting shop owners, the legislative agenda for 2019 and what’s of interest to the automotive industry. Redding’s first topic was OEM repair procedures. He explained that ASA and industry partners, including SCRS, kicked off legislation related to OEM repair procedures in August of 2018. He noted that multiple states are building support for this issue for 2020 and stressed that interest in the issue was somewhat stimulated by the 2017 Seebachan/John Eagle Collision case in Texas. However, interest had risen long before then. The OEM repair procedures draft states: “Any insurer licensed to issue policies of automobile insurance providing bodily injury, property damage liability, comprehensive or collision coverages shall not condition payment to any person conducting a collision repair upon the utilization of any repair procedure or specification if that repair procedure or specification is in conflict with the repair procedures and specifications for that vehicle as recommended by the original equipment manufacturer of such vehicle. If a repair procedure or specification from an original equipment manufacturer includes a directive to conduct a scan of vehicle electronic systems before or after the commencement of repairs, such directive shall be considered as a re-
56
quired part of the repair procedure.” Redding explained, “The draft language is meant to be a template for various states since this issue should be handled at the state, not federal, level. The bill language is intentionally very narrow and focuses on OEM
repair procedures only, with no discussion of parts or the mandated use of OE parts in the statement.” In 2018, legislation regarding OEM repair procedures was introduced in three states. Indiana Senate Bill 164 died in conference, and Illinois House Bill 4926 was not approved. Rhode Island Senate Bill 2679 was signed into law but is quite stringent and applies only to OE repair procedures on OE parts. Numerous bills on this issue have been introduced so far in 2019, including Connecticut House Bill 7266, New Hampshire House Bill 664, Minnesota House File 2234, Illinois Senate Bill 2104, Nevada Assembly Bill 173, Montana House Bill 252, and Texas House Bill 1348. “Interest in OEM repair procedures is not a new phenomenon, but this subject has generated a lot of attention in the past few years due to the increasing complexity of modern vehicles,” Schulenburg said. “SCRS and ASA worked collectively with partner groups in 2011 to address this topic. Collision repairers recognize OEM repair procedures as the documents for repair, but we need to be able to identify in a way that repairers can point to. Our groups collectively issued a statement that we recognize published repair procedures from OEMs as the official recognized standard for collision repair. “I think it will only become a bigger issue, especially as that technology increases and vehicles become more complex. Consumers want the
MAY 2019 AUTOBODY NEWS / autobodynews.com
technology, a lot of which is safetyrelated, and their interest drives the demand for it, which will continue to perpetuate the issue. It’s important to point out that the insurance industry is also pushing for technology. While the collision industry feels resistance to the necessary steps to restore functionality on the claims settlement side, the insurance industry is very supportive, if not driving, the development of these technologies to increase highway safety and reduce frequency.” Redding agreed that the interest in OEM repair procedures hasn’t lessened and reiterated the question he has heard from others about why it isn’t happening more quickly. Comparing the 2018 and 2019 bills, Schulenburg emphasized the importance of industry organizations documenting what is recognized as the industry’s standards and being the
voice of the industry when necessary. He noted, “In 2019, it’s important for the proposed language to be rather narrow and focused. When we see it coupled with other industry issues, such as claims practices, rates or parts, it opens the door for opposition that may not enter into the conversation if we were just focused on procedures. Disregarding documented procedures opens the industry to unnecessary liabilities, so it’s much more beneficial to propose narrow, focused legislation.” Schulenburg agreed that this has been the most pressing issue he has seen among SCRS members for quite some time now. “If you look at how frequently this conversation comes up, there’s no doubt that it’s one of the top issues our members face today,” he said. “Shops are challenged by the desire to perform a proper repair, and
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it impacts them on a daily basis, increasingly as the pace of technology advances. The largest challenge is that even regulatory bodies responsible for the insurance industry don’t have firm language guiding their responsibilities; there’s a general lack of understanding from regulators on what role procedures play in safety and proper repairs. Consumers deserve support from the industry and from their elected officials to ensure they receive a safe repair, and that requires us to put some language around these requirements so claims are settled in accordance with those specifications as well.” Redding then provided a brief history lesson on state vehicle safety inspections. He explained that federal law in the 1970s mandated states have some type of safety program to participate in federal programs. However, after Congress revoked that mandate, what started as more than 30 state vehicle safety programs was eventually reduced to just 15 state programs. Currently, the only states with vehicle safety inspection programs in place are Hawaii, Louisiana, Maine, Massachusetts, Maryland, Missouri, New Hampshire, North Carolina, New York, Pennsylvania, Rhode Island, Texas, Virginia, Vermont and West Virginia. Redding stated, “We are proud of these remaining programs and want to defend them. They are regularly attacked in state legislatures, and concerns have already been raised this year due to bills introduced to eliminate or significantly alter these programs.” Those bills include Missouri House Bill 451, Texas House Bill 3665, Hawaii House Bill 85, and Virginia House Bill 2068. Missouri House Bill 451 would repeal the requirement that all motor vehicles must obtain an inspection before the vehicle may be licensed. ASA, ACA and TIA all opposed the bill, stressing that periodic vehicle safety inspection programs help protect property and lives. “The Missouri bill is a mirror image of what was presented last year. We fought it in 2018, and the bill died in legislature, but each year, these bills get a little further. We’ve been banning together to stop the Missouri bill, but there are others,” Redding said. 58
Redding introduced Littlefield and Tucker, who expressed concerns with states trying to take safety programs away. Tucker stated, “ACA strongly believes in safety programs and regular vehicle maintenance and care. Vehicles are becoming more technologically sophisticated. My car affects your safety, and your car affects my safety, so if a car isn’t adequately
there was no good data to prove that the safety inspections save lives, but that’s because when there’s an accident, the first priority is getting the vehicle off the road so traffic can move. Public safety officials aren’t trained to look at the causes of these accidents. States aren’t required to report traffic accidents into the federal database unless there’s a fatality involved, so a lot of good data goes un-
repaired or inspected, we are all in danger. Every vehicle on the road should meet minimum safety standards, and that’s why these programs are so important. We need to rethink our strategies and become more proactive in the states where these programs are being attacked.” Discussing third-party evidence of how inspection programs impact vehicle safety, the group referenced the University of Texas – Austin study, which looked at economics and safety and affirmed that inspection programs save lives and enhance safety. Tucker pointed out, “You can’t get any better evidence than that. A safety inspection in Texas costs just $9, which is a small price to pay to ensure all vehicles on our roads are safe. Pennsylvania and Missouri also published reports that validate these findings. If we have three groundbreaking safety inspection studies that all say the same thing, the real question is: Why aren’t policymakers listening to real data instead of emotional arguments?” When Redding asked why we see such passion to eliminate these programs from some policymakers, Tucker suggested, “Most policymakers really try to be responsive to the needs of their constituents, so if a constituent brings a concern, the elected officials often try to pursue legislation to fix it, but that’s not always the best solution. “Also, we were missing effective data until the University of Texas issued their report last year. Opponents of the programs have often said
reported, leaving policymakers to believe the inspection programs are ineffective. We need to do a better job of educating elected officials with good data that demonstrates why these programs are effective.” Redding, Tucker and Littlefield discussed the need to get more people involved. Littlefield suggested, “Maybe it’s time to reunite and try to make a
“Interest in OEM repair procedures is not a new phenomenon, but this subject has generated a lot of attention in the past few years due to the increasing complexity of modern vehicles,” — Aaron Schulenburg
MAY 2019 AUTOBODY NEWS / autobodynews.com
run for it at the federal level. If we can change some minds in Washington, maybe we can work from the top down.” Tucker added, “Safety is the one thing that brings us all together.” The webinar concluded with a Q and A session, during which Schulenburg noted, “It’s important for the industry, regardless of the issue, to have collaboration. Consumers and the industry deserve a concerted effort to fix these problems.” On April 17, ASA will host its next Webinar Wednesday, titled “Increase Sales and Your Customer Value Proposition with Financing” and presented by Scott Schwalm, assistant vice president, relationship management for Synchrony Car Care. On April 24, ASE campus administrator Dave Capper will present “609 Certification” for technicians. ASA’s May 15th webinar, “Stop Reacting and Start Succeeding,” is intended for shop management and will be presented by Rick White of 180 Biz Solutions. For more information on ASA, visit asashop.org.
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Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.
Tips for Busy Body Shops with Stacey Phillips
Best Practices When Interpreting & Documenting Scan Data, Trouble Codes & Calibrations Today’s vehicles and those manufactured over the last two decades contain a wealth of electronic information that can help shops effectively and efficiently perform a proper repair, according to Chuck Olsen, executive director of AirPro Diagnostics. “If we don’t look for all of the clues there are within the system, it will make the job much more difficult than it has to be,” he said. As a result, Olsen said, a capable scan tool is a critical component of strategy-based diagnostics. “They give order and method on how we diagnose, service and reprogram vehicle control modules on these increasingly complex inter-related systems to restore vehicles to sound operation condition,” he explained. With more than 40 years of experience in the automotive repair and technology industry, Olsen recently shared insights on interpreting and documenting scan data, trouble codes and calibrations during a CIECAst webinar. The following is a summary from the presentation:
scan tool data definitive or infallible. Understanding and being able to fully employ the functionality available to us with modern and emerging scan
Q: A:
Q:
What is essential to know about scan tools today?
For many in the industry, there’s a certain mystique in relation to using a scan tool and what they can do. Scan tools are engineered and designed to be directly connected to the vehicle utilizing the most current diagnostic software available. Depending on the tool, it might only read out diagnostic trouble codes (DLCs) or can have additional capabilities such as calibrating or programming modules. Most scan tools require a pass-through device with a subscription to an OEM provider to fully reprogram the modules. Scan tools have many functions and ways they can be used, but the most common is doing a pre-scan, post-scan or what is known as a health check of a car. This is always the starting point. By no means are scan tools and 60
you know what your tools can and cannot do. In certain instances, some functionality may have to be given up in order to achieve a lower price point or you’ll need to access the dealer tool. Be honest with yourself about what your shop cannot do and be prepared to sublet or decline the job if it’s the best option. Remember that honesty still resonates as a reason your customers do business with you.
What needs to be analyzed when you are going through a strategy-based diagnostics process?
Q:
First, it’s important to visually inspect the car and determine what is broken, damaged, leaking, etc. Next, look at the symptoms of what is not working properly, such as the malfunction indicator lamps or system functional checks. The third step is to reference the service information. This
A:
Sean P at AirPro Diagnostics’ Calibration & Testing Center requests scans directly from his cell phone to complete a calibration on a 2019 Toyota
tools are acquired skills. It’s important that our knowledge and skills keep pace with technology changes and the associated scan tool functionality. Can you share some of the differences between an aftermarket and OEM scan tool?
I’m often asked this question. Aftermarket top tier scan tools are now competitive with OEM dealer scan tools; however, they are not exactly the same. I’m not an advocate of one over the other. It’s necessary to understand their capabilities and the strengths and weaknesses of each. There is no one aftermarket or OEM scan tool that can do everything on all vehicles. The key is in the mix of vehicles that you are repairing or servicing. You’ll want to look at the brands your shop specializes in, if any, and then use the correct tool or service for the job at hand. There are certain functions, procedures and OEM certification requirements that will dictate when OEM scan tool applications are your only option. The one caveat is to make sure
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includes the inspection requirements, repair procedures, testing procedures, option content and calibration requirements. Finally, it’s time to check the electronic data from the vehicle. This includes using a capable scan tool to determine the DTCs, live data stream values and calibration verification.
What is important to know about accessing the raw electronic data from the scan tool?
Q:
The raw data is managed by several different specifications and can be characterized as languages that the vehicle must adhere to in order to communicate. You need a tool that can speak these languages. The software adopted by all OEMs allows the independent aftermarket the ability to reprogram, diagnose and access data from the electronic control units (ECUs) without the need for
A:
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a dealer-only tool. The OEMs provide the scan tool application programs available for independent purchase with user license agreements.
Q: A:
Why should a shop always conduct research?
For every single repair, research is required. That can be sourced from the OEM as well as third-party suppliers that purchase the service information and repost it. There will be times you’ll have to go to the OEM direct subscription to obtain the latest updates. You must review every repair and procedure performed on a vehicle to identify calibration or programming procedures that will need to be performed with a scan tool and also to determine that the scan tool being used is capable of the procedure. Part of this is knowing that most times, scanning a car is not going to alert you that a calibration is needed or must be performed. This is almost always found in the service information. The only exception is if a component has been replaced that has never been calibrated. In this instance, we’ll often
see a code set for a calibration requirement, but you can’t count on it. It’s imperative that you review the repair procedures and find out if a calibration needs to be done. You’ll
Technicians test the calibrations on a 2019 Toyota at the Calibration & Testing Center
then need a capable scan tool and, in many cases, additional equipment such as targets or seat weights to execute that calibration.
Q:
Is it common for a scan tool to miss a DTC?
With the complexity of today’s vehicles, there is always the chance for a scan tool to miss control units or DTCs during a general health check. There are two distinct reasons for this. First is that the non-reporting control units can be filtered out by some scan tools. Although it is rare, you must be aware of it when using a scan tool independently or relying on a service. This is normally caused by an impact at or near the area of the control unit, damaged wiring harness, connector damage, blown fuses or poor ground connections. Another reason is due to a busy automotive network or the control unit returning information slowly because of a large amount of data stored in that module. Modules have timing parameters that must be adhered to, and at times while they are returning large trouble code records, that request can time out and the scan tool will move on and possibly miss something. This is when it is necessary to check systems individually on a vehicle or go back and rerun a scan
A:
multiple times to make sure everything was received. Both OEM and aftermarket scan tools can be subject to this and is why there are so many update requirements with scan tools.
Why should repairers be aware of the build list in the software’s internal database?
Q:
When you are reading the scan tool data, be aware that the wrong options can sometimes be reported in the scan tool database. Where we usually see this happen is when there are added accessories or option modifications done by the dealership or the aftermarket. An example is if a customer wants foglamps installed at the dealership; these will not be included in the vehicle option content list and may or may not be accessible by a scan tool. As a result, you must do an inspection and pay close attention to what optional equipment is included.
A:
Q:
How can they overcome these issues?
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DTCs are just the starting point of drilling down the problem(s) on a vehicle. Each system is made up of a group of components, and it’s important to be aware of them during the diagnosis. We call it Component Level Scanning (CLS). This is much different than just reading trouble codes. With CLS, we get as close to the raw or live data as possible.
A:
Once the car has been repaired, it’s crucial to document everything. This includes what we started with and what we found, what parts we replaced and/or repaired, as well as removed and reinstalled. Also, document what the OEM service information says, the diagnostic procedures and calibrations performed, the functional quality control test results, and even what we did not do—the non-related issues on a vehicle. Documentation helps protects the customer and your business.
A:
What steps should my business take when it comes to privacy?
Q:
Chris C completes a scan on a Honda using the HDS software at the AirPro Diagnostics office
CLS gives us a complete picture of the health of the system. In fact, we can determine faults from data streams before they are reported as a DTC by the control unit.
Q:
What should be included in the documentation?
Continued from Page 50
HD Events
and a representative from technology company Diesel Laptops who talked about HD truck scanning. In addition, about 25 vendors, including Axalta and PPG, featured tabletop displays providing attendees a chance to talk directly with company representatives. Awards Presented During the event, three awards were presented. Nick Notte of I-CAR presented Brad Keiter, manager for Penske Collision of Norcross, GA, with a plaque designating him as the very first I-CAR Gold Class HD truck shop. This designation is now available to any HD truck shop that qualifies. Nessen and Risley presented two additional awards. John Spoto, national heavy duty truck commercial fleet manager for 3M, was presented with the Service Provider of the Year award for his part in creat62
A customer needs to know you are going to be accessing data from their vehicle. My advice when it comes to privacy is to incorporate a statement for the customer into your work authorization form and let him or her know you are going to be accessing all types of data to repair the car properly and/or to make decisions on insurance, warranty or customers’ responsibilities.
A:
ing a number of training classes for 3M and for his tireless help in the planning and creation of the HD Repair Forum. Additionally, Nessen and Risley awarded in absentia the Repairer of the Year award to Sterwerf for his work as the chairman of TMC’s Heavy Duty Collision Repair Guideline Task Force, his industry position as a recognized leader in the HD collision repair industry, and for his work in helping create and promote the HD Repair Forum. Based on the success of this year’s event and positive feedback from attendees, speakers and exhibitors, Nessen and Risley are already planning next year’s event, although exact dates and location are not yet available.
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Matrix Wand Joins CIECA as Corporate Member Matrix Electronic Measuring, Inc. (MEM) recently joined CIECA as a Corporate Member. Founded in 2003 and based in Salina, KS, the
company developed the Matrix Wand, a patented, stereoscopic 3D computerized measuring system. The hand-held, portable, targetless stereoscopic imaging system uses photogrammetry and was designed to solve problems associated with structural collision repair, calibration and 3D vehicle integrity documentation. After learning about CIECA over the past year, MEM decided to join the organization and is curAUTOBODY
rently part of CIECA’s new Calibration Committee. “Matrix is passionate about collision repair and dedicated to the future of our industry,” said Jan Srack, founder of MEM. “Standards and calibrations are critical in the collision repair world, and CIECA is dedicated to both of these. Matrix is excited about the opportunity to work together.” Srack said 3D data is an important part of the industry and Artificial Intelligence (AI). “AI expects the vehicle to be perfect and may operate off a structurally imperfect sensor thinking it is perfect,” she said. “By evaluating the sensors and cameras where they need to be to operate correctly, it will help technicians repair the vehicle back to OEM specifications and give customers peace of mind about their safety. We believe that by working with CIECA, we’ll be able to help standardize our industry’s calibrations.”
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Truck Topics 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
Truck Topics 2: Truck Vs. Auto Collision Repair – An Overview We see them all the time—semi trucks, trailers, buses, RVs, dump trucks and other pieces of heavy equipment wrecked in what had to be a horrendous crash. So where does this heavy equipment go for collision repair—and how different is it from repairing an auto or pick-up truck? As one would imagine, there are some vast differences given the sheer size, weight, substrates used, and construction methods of such vehicles. But there are a few things that don’t change regardless of what vehicle is being repaired or who is doing it. For example, the phrase, “This is the way we’ve been doing it for 30 years… so why change?” is something heard in both camps and something industry leaders on both sides are trying to fight through education and awareness. One of the biggest differences between Class 8 and 9 trucks (commonly known as semi tractors) is the availability of repair information for both mechanical and especially collision repair. In the auto or light truck world, (thanks to the Right to Repair initiative started in 2001), one trip to an automaker’s website will give re-
(ATA). Its mission is to develop best practices and maintenance procedures for Class 8 (semi) trucks. The 65-year-old association has always been busy, but is now even more so as it tackles the proper way to make collision repairs with the advent of new advanced driver assist systems (ADAS) and other new technologies—such as high-strength steel. They have only been looking at the collision side of things for the last year or so and are making headway. However, as Legler puts it, “We’ve seen more changes in the trucking industry in the last 10 years than the previous 35 years.” (Sounds a lot like the auto side!) The Technical and Maintenance Council’s “S-16” study group is working with OEs and companies that supply engines, transmissions, axles, springs, electronic components and others to come up with best practices and procedures for making safe and complete repairs. Legler noted, “Unlike the auto industry where the OE provides a one-stop place for all information regarding the vehicle, repair information for a heavy truck can come from a number of different sources and in
pairers pretty much everything they need to make a safe and proper repair. On the truck side, that information may or may not exist, and even if it does exist, it is difficult to find. The truck OE will likely refer the independent shop to the component manufacturer—who may or may not be able to provide the information. Most trucks are custom-built to a customer’s specifications, making component identification (such as axles, wheels, suspension parts) challenging. John “Jack” Legler is the technical director for the Technical and Maintenance Council (TMC) of the American Trucking Association
several different formats. It’s often difficult to find and when found, can be rather vague or of little help. It is fortunate that we all get along and work together within the industry. Representatives of the OEs as well as other component providers all serve on our committees and study groups.” When asked what the biggest challenge was today in the world of collision repair for heavy trucks and equipment, Legler was quick to reply with, “New technology. It’s coming at us faster than we can deal with it. That includes electronics, new frame alloys and composite materials for the cabs. Some of the electronic components on these trucks hold a high elec-
“We’ve seen more changes in the trucking industry in the last 10 years than the previous 35 years.” — John Legler
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MAY 2019 AUTOBODY NEWS / autobodynews.com
trical charge and if approached the wrong way can seriously hurt the truck and the technician.” (This should sound familiar to those on the auto and light truck side.) Legler went on, “Many of the latest trucks are aerodynamically designed to optimize fuel economy. Today’s body technicians need to restore that truck’s aerodynamic design for optimum fuel economy. That’s a big deal when that truck travels 100,000 miles per year.” When asked how the industry was dealing with ADAS systems, Legler said, “We have only had to deal with that for the last couple of years. But we have to come up to speed quickly. It’s only a matter of time before autonomous trucks using these technologies start hitting the road.” Chris Sterwerf is the chief finance and operations officer for Fair-
field Auto and Truck Service in Fairfield, OH, the chairman of TMC’s Heavy Duty Collision Repair Guideline Task Force and a noted industry leader. When asked about the issue of repair information, Sterwerf agreed with Legler that it was hard to come by. He noted, “About 20 years ago when the auto repair shops were pushing for the ‘Right to Repair’ act, nobody on the heavy duty side went to their party, so we were left out.” He said the problem might have been due to the great diversity in the industry. “Under the umbrella of heavy duty, we have shops that fix only semi-trucks, or only buses, or only RVs,” he said. “Some shops can handle a heavy wreck from soup to nuts; some only do cosmetic work. The industry is very fragmented, and it
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shows. It makes things tough sometimes.” Collision shops on the auto side are still somewhat fragmented but nowhere near as much as they were before the advent of industry associations in the 1950s and trade magazines as a means of communication in the 1960s and 1970s. Sterwerf continued, “And then there are all the shops that don’t look like shops—large fleets that repair their own trucks that are not visible to the public or even within the industry.” On the auto side, it’s pretty easy to find an independent repair shop using an internet search engine. On the heavy truck side, some large fleets maintain their own mechanical and collision shops, which tend to stay off the “commercial radar.” When asked what the biggest challenges were in the industry, Sterwerf replied, “There are a few things. One is the challenge of getting parts and repair information. Conversely, some component manufacturers, such as Bendix has all kinds of information online—and it’s all free. Sadly, few people use it.
“The other issue I hear from a lot of shop owners is finding people. It’s tough to work in an industry that is so dependent on experience and knowledge when you don’t have any. but it may be the culture of the shop. “From my perspective, there are a lot of heavy duty shops out there that are only existing. Their repair methods, equipment and mind-set are stuck in an industry that existed
shop working exclusively on the auto side would find this arrangement ideal because there would be no more fighting with an insurance company over what they would or would not cover. Sterwerf explained the issues encountered with fleet-paid repairs. “Bigger fleets don’t mind paying to have the truck fixed correctly and safely. They know that skimping
years ago. They are not keeping up with technology and not moving forward.” (Hmmm… this has a familiar ring to it.) One of the major differences between the heavy duty collision repair world and the auto collision repair world is who pays the bill. On the auto side, easily 90 percent of collision repairs are covered by an insurance company. Conversely, most fleets are self-insured, so the company foots the bill for repairs. Any
out on a repair now may mean a catastrophic failure later; which means more down time and possibly injury to a driver or other parties. Rather than try to fix something, it’s quicker and safer to replace the entire component—so that’s what we do. Then there is no question about [the repair being] right or not. Conversely, some managers of small fleets, operating on a small budget, want to do only what is absolutely necessary to put the truck back in service—despite the
“We need to get more people involved and more people to take an active role in this industry to make it better and bring us all to the next level.” — Chris Sterwerf
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repair not being complete or even safe. I just tell those guys to keep going. I know the shop is still liable for those repairs regardless of what they say or want—and I don’t need the headaches.” When asked for an overall assessment of the industry, Sterwerf noted that as part of the Heavy Duty Collision Repair Task Force, he has met a lot of shop owners, many of which are considered to be some of the best in the industry. “But even among the best, there is a wide variation of skills, knowledge, experience and equipment,” he said. “We need to get more people involved and more people to take an active role in this industry to make it better and bring us all to the next level.” The equipment needed to work on heavy trucks carries a proportionally large physical size and cost. Getting into the business is not for the faint of heart. Some of the challenges encountered while performing a heavy truck repair are conversely diminutive, yet equally important. Many truck bodies are made of aluminum to
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Color Match 101: A Visit to Axalta’s Customer Experience Center by Barbara Davies
On March 21, I attended Axalta’s Media Day on behalf of Autobody News at its customer experience center in Concord, NC. This was my third year attending the event, the focus of which was “Speed & Accuracy Without Sacrifice.” Dan Benton, Axalta’s color match manager, started the day by providing an overview of Axalta’s Color Match and Color Theory history. Benton explained that Axalta has a rich 153-year history of innovation: • In the 1920s, Axalta developed the first sprayable paint used at a production plant. This reduced paint time from days to hours. • In 1990, Axalta developed the “Vindicator,” the first digital tool used to select a color formula based on where the vehicle was manufactured. It’s basically the car’s “fingerprint” and identifies where and when a car was made. • In 2017, Axalta launched its latest innovation, the Acquire™ Quantum EFX spectrophotometer, with
Why Is Color-Matching So Important? Painters need a precise color formula so they can match the paint color the first time and mix the smallest amount of paint necessary to repair the vehicle. They don’t get paid to remix or paint more of the vehicle than what was damaged. The faster they can get it through the shop, the better for the customer and the shop. Why Is Color-Matching So Difficult? What surprised me most was the fact that even though an OEM plant may use the same color mix for a new car line in two different parts of the country, the actual paint color could vary based on the temperature and humidity of each plant. After the color history overview, Benton brought us outside the training center to get some hands-on experience with how color matching happens in the real world. Bob Little, Axalta’s customer experience center manager, let us use his own grey Chevy Silverado truck for the demos.
Hands-On Demonstration #1: Fan Deck Each of the five media participants got a chance to hold the fan deck up to the truck and try to determine the closest match. As easy as that sounds, it wasn’t easy at all. Depending on the angle you looked at the fan deck against the truck, a different paint color in the deck looked like the perfect match. Very frustrating! There was no consensus among the group on the best match. Demonstration #1: Barbara tries out the traditional color Even though this type of fan deck to match the truck color color-matching is a bit “lowWi-Fi connectivity. This tool allows tech,” many painters grew up with it painters to key in the VIN to gener- and still use it. They know how to ate the exact color formula specific make slight adjustments to come up to that vehicle. with the exact color match. This is a skill, and not everyone has it; hence Benton then went on to explain the the need for Demo #2. art and science of color-matching. I had never really thought about all the Hands-On Demonstration #2: color variations available to painters. Our next demo involved the use of All the new colors that we see with Axalta’s Acquire™ Quantum EFX their micro-flakes that reflect light so spectrophotometer, fondly referred beautifully in different lighting condi- to as “the camera.” We learned that tions also make it very difficult to de- one benefit of the camera over the fan termine the exact color match needed chip is that the camera has a database to repair a vehicle. of tens of thousands of colors, while 68
MAY 2019 AUTOBODY NEWS / autobodynews.com
it pulls up the color match. Quick Results: The camera has Wi-Fi, so when we went inside the color-mixing room, the results were already there and provided the color mix formula that most closely matched the truck’s paint. This would allow the shop to then mix the specific formula without waste and paint just the secDemonstration #2: Bob Little, Axalta’s customer experience center manager, assists Barbara with Axalta’s Acquire™ tion of the vehicle that was Quantum EFX spectrophotometer, fondly referred to as damaged. Very efficient! Ax“the camera,” to take a digital color reading of the truck alta also offers an automated dispensing system for even the fan deck may only have 5,000 greater mixing accuracy. total color chips. Better Wash It First! Little’s truck looked clean, but we were quickly informed that the first thing a shop needs to do is thoroughly clean the part of the vehicle on which the camera will be used. We each took a turn using the camera to take a reading of a section of the car. Simple Process: Take the picture and plug into the computer, and
Some other interesting facts from the day: • Color Fashion Show: Each year, the five major paint companies (of which Axalta is one) put on a color fashion show of sorts for each of the OEM car manufacturers. In this presentation, they present a “color board” of what colors they believe will be the most popular 2–3 years down the road.
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The paint companies’ color teams track fashion trends and other style markers (possibly economic and environmental factors, etc.) and present their color board to the OEM brand design team. After much back-and-forth between the teams, certain colors are selected from each manufacturer, and
Peter Maier in front of one of his paintings
then each manufacturer is required to formulate each color so they have it available for their shop customers. • Ports of Entry: When a new model vehicle is released with a new paint color, Axalta and the other paint manufacturers will have people from their laboratories go to rail head or shipping port points of entry and take tens of thousands of camera readings on the actual vehicles coming off the
rails or ships. They do this to compare the actual new vehicle reading to what the formula stated so that they can “tweak” their paint formulas if necessary before they provide it to their customers.
After lunch, we met Peter Maier, who creates photorealist paintings of cars. A former employee of General Motors, Maier worked as a senior designer for Cadillac, Pontiac and Chevrolet and went on to pioneer the use of automotive paint in fine art. For example, “1959 Sting Ray” (1996), which is scaled to the exact dimensions of its subject, acquired its shine and saturation of color through more than 20 coats of metallic silver paint. His process of applying layers of color and clear varnish “produces an illusion of depth, surface and saturation not possible with traditional mediums,” Maier said. “Often, my cars and motorcycles look like they are under glass.” Not surprisingly, Maier uses Axalta paints.
An Overview
save on weight. (This should sound familiar to the auto repairers.) So when a lamp is attached to a body, or screws are needed to hold two body panels together, it’s crucial to use stainless steel screws to prevent galvanic corrosion. Just like the auto side, as one might expect, the paint companies have taken a lead role in supporting the HD collision repair industry. Axalta has its legendary Imron coating. Introduced in the early 1970s with about 12 different basic colors, it is now available in more than 25,000 colors and is the coating of choice for 5 out of 6 U.S.-based heavy duty truck manufacturers. Its coatings used on the production line and in the field are identical making an “original factory finish” possible in the field. Axalta also has what they call a “Business Council” in which noncompeting shop owners can come together, learn from each other, share experiences and receive words of wisdom from Ron Kuehn.
Honda, Acura Recall 1.1 Million Vehicles Over Takata Airbags by David A. Wood, CarComplaints.com
We thank CarComplaints.com for reprint permission. Honda is recalling more than 1.1 million Honda and Acura vehicles that were previously recalled, or the airbags were used as replacements to prevent the inflators from exploding. • • • • • • • • • • • • • • • • • • 70
2003 Acura 3.2CL 2013-2016 Acura ILX 2013-2014 Acura ILX Hybrid 2003-2006 Acura MDX 2007-2016 Acura RDX 2002-2003 Acura 3.2TL 2004-2006 and 2009-2014 Acura TL 2010-2013 Acura ZDX 2001-2007 and 2009 Honda Accord 2001-2005 Honda Civic 2003-2005 Honda Civic Hybrid 2001-2005 Honda Civic GX NGV 2002-2007 and 2010-2011 Honda CR-V 2003-2011 Honda Element 2007 Honda Fit 2002-2004 Honda Odyssey 2003-2008 Honda Pilot 2006-2014 Honda Ridgeline
The vehicles were originally recalled to replace the driver’s side frontal Takata airbag inflators with different Takata inflators that con-
tained a desiccant to keep the chemical propellant dry. The chemical, ammonium nitrate, can become unstable when exposed to heat and moisture over time. Honda believed replacing the non-desiccated airbag inflators with desiccated inflators would solve the problem of ruptured inflators. But the crash of a 2004 Honda Odyssey altered that perception when the desiccated inflator exploded and injured the driver’s arm. The automaker opened an investigation and determined manufacturing errors occurred at a Takata plant in Mexico where the inflators were exposed to excessive moisture.
MAY 2019 AUTOBODY NEWS / autobodynews.com
Sherwin-Williams has its own line of polyurethane topcoats specifically for heavy truck and equipment use. According to its website, in 1939, Sherwin-Williams was instrumental in devising the color we know today as school bus yellow as the standard color for all school buses. BASF has its own line of commercial paint and will even customcreate a special color for an individual fleet. In addition to its durable commercial coatings provided through its Sikkens brand, AkzoNobel provides analysis and recommendation for fleets to minimize down time for maintenance and repair and a coaching and training program for individual shop employees. To summarize … are there differences between heavy truck and auto collision repair? Sure. But it seems there are just as many similarities. Fortunately, in both truck and auto repair, there are a handful of dedicated industry leaders working toward the betterment of each side of the industry—to identify and find solutions to problems to effect a safe and complete repair for the customer.
Continued from Page 67
This can cause over-pressurized airbag deployments that send metal debris into the vehicle cabins and the occupants.
Honda says affected customers will be mailed recall notices April 17, but Honda and Acura dealerships already have the required replacement parts in stock. Owners shouldn’t wait to contact their Honda and Acura dealers to schedule appointments to have the driver-side inflators replaced. Free rental cars are available in the event replacement airbag inflators or airbag modules are temporarily unavailable. Honda owners with questions or concerns should call 888-2342138 and ask about recall number O41. Acura owners may call the automaker at 888-234-2138 and ask
for information about recall number U40. CarComplaints.com has complaints from owners of the Acura and Honda vehicles named in the Takata airbag recall: • • • • • • • • • • • • • • • •
Acura CL Acura ILX Acura ILX Hybrid Acura MDX Acura RDX Acura TL Acura ZDX Honda Accord Honda Civic Honda Civic Hybrid Honda CR-V Honda Element Honda Fit Honda Odyssey Honda Pilot Honda Ridgeline
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escnissanparts@mossy.com autobodynews.com / MAY 2019 AUTOBODY NEWS
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‘ToyMakerz’ Star David Ankin Introduces Kids to Custom Vehicle-Building Process by Stacey Phillips
David Ankin, a former stunt driver and racer, recently traveled to San Diego, CA, from his hometown of Reidsville, NC, to attend a special event aimed at showing kids that more is out there than their screens.
More than 30 kids came out to Speed Circuit, a new in-door go-kart facility in San Diego, to help promote the season three premiere of Ankin’s series on HISTORY®. During the event, Ankin shared his message “If you can dream it, you can build it” and demonstrated ways to keep kids’ screen time down and activity up. He also showed his support for the cancer charity Team Parker for Life by partnering with The Speed Circuit to donate 20 percent of the night’s proceeds to the charity. Team Parker for Life works to boost the morale of kids battling cancer, raise awareness of the disease and be a voice for the children in their fight. The new season of “ToyMakerz” premiered March 10 at 9 a.m. ET/PT on HISTORY® during the DRIVE block, an auto enthusiast programming block on A+E Networks, then again for an encore airing the following Saturday, March 16 at 10 p.m. ET/PT on FYI®. During each episode, Ankin leads his team in crafting one-of-a-kind custom automotive builds, from hot rods and classics to muscle cars, trucks and motorcycles. “‘ToyMakerz’ gives car lovers across America a front-row seat to the incredible building process behind these powerful and unique machines,” said Ankin. “It’s going to be an exciting season of builds for sure … some of the fastest and most unique cars and motorcycles ever made, and then driven to the extreme!” Autobody News recently reached out to Ankin to find out more about the new season of “ToyMakerz” and 72
how he is spreading his message to kids.
Q: A:
How did you get involved in the industry?
Growing up, we didn’t have a lot of money. We spent a lot of time finding interesting cars to work on and figuring out how to make them drive. This industry was a natural fit. My father was a tinkerer and built hot rods and cars, and my grandfather did the same before him. I guess it was in my blood. My favorite car when I was young was probably a ‘69 Z28 Camaro, the DZ car. It was really prevalent, but at the same time it was a rare car. You see Z28 cars, but very seldom do you see a DZ 302 car. My dad happened to have one, as well as our next-door neighbor. It was what I always wanted when I grew up. Congratulations on season three of “ToyMakerz.” What can viewers expect to see on the show?
Q:
This year, we’re constantly pushing the envelope on the show. We have been creating several specialty vehicles that people are going to not only enjoy, but never forget. We have a real feel for the types of big engine toys that people like to see, and we’re ready
A:
queen Sarah Edwards. We couldn’t be more excited about the new season. Your readers can tune in to season three of “ToyMakerz” every Sunday at 9 a.m. ET/PT or on FYI Saturday nights at 10 p.m. ET/PT starting March 10.
Q: A:
What was the inspiration for the show’s name?
I’m not prejudiced. I like motorcycles, cars and trucks— they are all toys to me. I’m just a big kid living in a dream world, and I don’t want to limit myself to anything. As the industry changes and we grow, the show is about real toymakers. I believe we’re all toymakers in some form.
Q: A:
Can you tell us about your team?
They are amazing—Boe Wood, Ashley Robertson, Billy Leavy, Charles Joyner and Jason Hensley. I’m very, very for-
MAY 2019 AUTOBODY NEWS / autobodynews.com
Can you tell us about your message, “If you can dream it, you can build it”?
Q:
I think that’s life. You should never think you can’t do it. Why can’t you do it if somebody else can? The only reason is that you haven’t put in the time or you haven’t had the desire to do so. I’m a normal guy from a normal world. I had an incredible family but a very normal upbringing. I went to a public school, and I didn’t have a silver spoon in my mouth. From the time I was a child, I worked very hard
A:
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So. California to tackle those projects from the ground up. This includes monster trucks, tanks, racecars, drones and fully customized, never-before-seen exhibition cars. As a self-described “extreme” vehicle fabricator, I’m constantly on the search for the coolest, newest techniques and features to build that one-of-a-kind motor machine. This year on the show, we’ll have special guest appearances by NASCAR legend Richard Petty, actor Dean Cain and drag racer
tunate to have them. My business partner, David Young, has a keen interest in specialty vehicle manufacturing and is CFO of Tanom Motors, a reverse trike manufacturer in Virginia. I appreciate all of the help my behind-the-scenes team provides as well, which includes the film crew and editing team. I have a major team behind me that I wouldn’t be able to survive without.
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and believed. This is a great country, but life is not handed to you. You have to go out and get what you want. If you truly put in the effort, you can do anything in life. You just have to have a little bit of faith and perseverance and work hard. This is true if you’re painting a wall, laying bricks, building a motor or driving a car.
How are you inspiring and motivating kids to take a break from screen time?
senses you can get them in tuned with, the more you can teach children, and then they don’t even think about screen time anymore. For example, Brayden often lends a hand in my shop.
Q:
I understand that times have changed and kids aren’t doing the same things that I was when I was younger. I really enjoy being hands-on, and they’ve taken that opportunity out of many schools. Any time you can get kids hands-on things and show that it can make difference, I think that is a good thing. My 13-year-old son, Braydon, like others, grew up around computers, and I know screen time is very common. I think it’s important to try and reach our kids’ other senses as well: to get them to feel it, hear it and touch it. I think the more
A:
Getting kids excited about racing, such as the event we held at Speed Circuit in San Diego, is another way of doing that. It was great to be able to teach them a few things about paying attention to corners, speed and braking, and then watching their lap times become faster.
What advice can you offer young men and women considering a career in this industry?
Q: A:
If you are good at what you do, there is always an oppor-
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What are some of the changes you’ve seen over your career repairing vehicles?
Q:
It’s immense. It’s happening everywhere on every level. The computer age is amazing. The new vehicles are beautiful machines and so computerized. Everything is at the touch of a button, and it’s absolutely incredible. It almost takes it out of the hands of a mechanic. Although, I have to admit, at times I struggle with it. With today’s cars, you use a computer to tune a
A:
car. I used to use my ear, but you can’t do that anymore with advances in technology.
What are your thoughts about electric and autonomous vehicles?
Q:
I know it’s coming, and the technology is amazing. We actually might have some EVs on the show, and I plan to put my own spin on them. When it comes to autonomous cars, I don’t like being in the passenger seat with anybody, even those I trust driving, so to let the computer drive is still baffling to me. I still want to be able to get in my car and hear it rumbling underneath me. I like to drive myself around. I don’t listen to my radio; I listen to my exhaust system.
A:
For more information about the show, visit ToyMakerz.com and follow David Ankin on Instagram @real DavidAnkin
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‘Who Pays for What?’ Surveys Find Growth in Shops Billing (& Being Paid) for Masking for Priming
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An upward trend in the percentage of shops across the United States regularly being paid by the eight largest national insurance companies to mask as necessary for priming continued this year. Back in 2015, a “Who Pays for What?” survey conducted by Collision Advice and CRASH Network found that less than 1 in 4 (24 percent) shops said they were paid “always” or “most of the time” when charging for the “not-included” labor required prior to the priming process to protect the vehicle from overspray. That grew to 37 percent in the last several years. But the same survey this past January found that 43 percent of the more than 600 shops responding to the question reported regularly being paid for masking during the priming process. Only about one-third of shops said they have never sought to be paid for that procedure. Mike Anderson of Collision Advice said the change is a good indication the industry is increasingly aware of the not-included procedures shops often perform without
seeking compensation. He said the latest of the four 2019 “Who Pays for What?” surveys, which focuses on “not-included” body labor operations, is open now through the end of April at: https://www.surveymonkey.com/ r/S3FQ8X3 Anderson said the survey, which will take about 15–25 minutes, can be completed by any shop owner, manager or estimator who is familiar with the shop’s billing practices and the payment practices of the largest national insurers. Each shop’s individual responses are kept confidential; only aggregated data is released. Survey participants receive a report with complete survey findings at no charge, broken down by region, insurer and DRP vs. non-DRP. The report also includes analysis and resources to help shops better understand and use the information presented. The results of previous surveys are also available online (https:// www.crashnetwork.com/collision advice).
autobodynews.com / MAY 2019 AUTOBODY NEWS
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How Will These Recalls Impact Your Auto Glass Customers? by Emmariah Holcomb, glassBYTEs.com
The National Highway Traffic Safety Administration (NHTSA) recently issued three recalls with implications for the auto glass industry. The recalls affect New Flyer Industries, Volkswagen Group of America and Porsche Cars North America. New Flyer of America Hundreds of heavy-duty busses from New Flyer Industries are affected by the company’s latest recall. According to the NHTSA, the company is recalling vehicles due to the possibility of its rooftop glass panel shattering. The administration stated the glass breakage may affect driver visibility.
Glass shop representatives working on the recalled models can assure their customers that the tempered glass panel will be replaced for them at no cost. Shop owners can advise
their customers to contact New Flyer’s customer service center if they have more questions at 1-204-2246706 or the NHTSA Vehicle Safety Hotline at 1-888-327-4236.
Volkswagen Volkswagen’s recall impacts more than 4,000 2019 Beetle and Beetle convertible vehicles. The administration states the vehicle’s instrument cluster may not provide a visual warning if a driver has brake failure. The absence of a visual signal may increase the chances of that vehicle model getting into an accident.
Industry professionals can assure their customers that their instrument cluster software will be updated as necessary, at no charge. Shop owners can advise their customers to contact Volkswagen customer service at 1-800-8935298 if they have further questions. Volkswagen states it will notify all affected owners of its latest recalls.
Porsche More than 14,000 Porsche owners are affected by the company’s latest visibility and electrical recall. Two dozen of the company’s vehicle models are affected. The NHTSA stated that drivers are not visually made aware when their brake pads are worn out. This can result in the driver losing control of their vehicle and increasing the likelihood of getting into or causing an accident.
Porsche stated it will notify all affected vehicle owners of the issue. Shop owners can assure their customers their instrument cluster software will be updated, free of charge. If customers have additional questions, vehicle shop owners can advise them to contact Porsche customer service at 1-800767-7243. We thank glassBYTEs.com for reprint permission.
House Republicans Push for Action on Self-Driving Vehicles Bill by Eugene Mulero, Transport Topics
Three Republicans in the U.S. House of Representatives are ready to re-legislate on the technology for self-driving vehicles. And, to do so, they are asking the chamber’s new Democratic leadership to proceed with a bill. Energy and Commerce Committee ranking member Greg Walden of Oregon was joined by his colleagues, Reps. Bob Latta of Ohio and Cathy McMorris Rodgers of Washington, in calling on committee Chairman Frank Pallone (D-NJ) to set up the consideration of a comprehensive bill on self-driving technology. “We are at a critical moment in the development of self-driving technology. We have the opportunity to support life-saving technology, create mobility benefits for many communities, and support U.S. jobs and innovation against foreign competition,” the trio of Republicans wrote on March 13. “We have outdated standards and unnecessary barriers, which are slowing the development and deployment of self-driving technology.” The Republican lawmakers pointed to the technology’s potential 74
to enhance safety on the roadways through automation designed to reduce driver error. Also, such vehicles could likely be utilized to assist the elderly and people with disabilities to access convenience stores or medical
gressional session’s adjournment. In February, Senate Majority Whip John Thune (R-SD), who had championed the bill in the previous congressional session, said he was aiming to restart talks on a similar bill.
facilities. And establishing the country as a leader in the technology’s development could lead to myriad economic benefits, they added. Latta is ranking member of the Communications and Technology Subcommittee, and McMorris Rodgers is ranking member of the Consumer Protection and Commerce Subcommittee. The committee’s Democratic leadership has not issued an update on the legislation’s consideration. A self-driving car bill easily advanced in the House last year but failed to reach the Senate floor amid disputes over key safety provisions. The bill ended its run upon the con-
Amid the industry’s recent achievements in developing the technology, federal regulators have issued a series of guidelines. In the fall, the U.S. Department of Transportation emphasized that safety, technology neutrality, consistent regulations and a proactive preparation for automation were key aspects of updated guidance. Additionally, speaking to reporters March 11, Transportation Secretary Elaine Chao indicated there was “very good news” in President Donald Trump’s fiscal 2020 budget proposal regarding autonomous technology. According to the proposal,
“We have outdated standards and unnecessary barriers, which are slowing the development and deployment of self-driving technology.” — Greg Walden
MAY 2019 AUTOBODY NEWS / autobodynews.com
Speak at CIECA CONNEX 2019 in Charlottesville, VA
CIECA is looking for a few additional thought leaders and industry professionals to speak at the upcoming annual conference—CIECA CONNEX 2019—in Charlottesville, VA, Sept. 16–18. CIECA invites you to share your knowledge and expertise as we work together to explore emerging issues, forecast for the future and discuss ways to prepare for the road ahead. CIECA CONNEX is the one event where CIECA members and business professionals from all segments of the collision repair industry gather to network and learn from one another. They include repairers, insurers, OEMs, parts and material suppliers, information and software providers, car rental companies, towing companies, salvage and recycled parts providers, auto glass replacement facilities, subrogation providers, general service providers and property restoration providers.
DOT “will continue efforts in 2020 to enable the safe testing and integration of autonomous vehicles within the nation’s transportation systems by reducing regulatory barriers and conducting research.” Meanwhile, the Alliance of Automobile Manufacturers urged federal lawmakers to craft autonomous policy. Mitch Bainwol, president of the alliance, wrote in February, “Many of the rules that currently govern the operation of a motor vehicle were created at a time when a self-driving vehicle was a science-fiction fantasy, rather than a technological breakthrough on our doorstep.” Meanwhile, groups such as the U.S. Chamber of Commerce and companies such as Amazon.com Inc., Waymo and Uber also press Congress to legislate on provisions that would govern autonomous vehicles. Used by permission of Transport Topics. Copyright Transport Topics, American Trucking Associations, Inc. For more information, visit www .ttnews.com
www.autobodynews.com
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autobodynews.com / MAY 2019 AUTOBODY NEWS
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Auto Industry: Blocking Trade With Mexico Would Be Disruptive by Nora Naughton, The Detroit News
As President Donald Trump threatens to close the U.S.-Mexico border in an attempt to curb illegal immigration, some in the U.S. auto industry are warning the move could cause major disruptions. Trump told reporters March 29 he “could” close the U.S.-Mexican border to “all trade” as part of a larger effort to force Mexico to crack down on immigration from Central American countries. “If they don’t stop them, we are closing the border,” Trump said. “We’ll close it. And we’ll keep it closed for a long time. I’m not playing games.” The Alliance of Automobile Manufacturers, a Washington-based group that lobbies for most major automakers, pushed back April 1 against any closure to trade. “Automakers rely heavily on cross-border trade throughout the North American region,” the alliance said in a statement. “In many instances, auto parts can cross the border seven to eight times before being integrated into the final assembly of a vehicle.
“We urge all parties to work together to avert a border closing that would result in significant disruptions to the North American auto industry, because ultimately increased costs hurt customers.” Some 37 percent of all auto parts imported to the U.S. come from Mexico, the country’s third-largest trading partner. Cutting off U.S.Mexican trade could create a ripple effect in the industry that wouldn’t just slow or stop the delivery of vehicles—it could shut down entire plants in the United States. “Building a vehicle becomes very difficult if you don’t have all the pieces to make it work,” said Kristin Dziczek, vice president of Ann Arbor-based Center for Automotive Research. “Depending on how long a closure lasts, there could be some vehicle shortages. But the more immediate effect is shutting down U.S. plants.” In Michigan alone, some five plants stand to be affected if trade between the U.S. and Mexico is brought to a standstill. Among the most vulnerable are Fiat Chrysler Automobiles’ Warren Truck and Jefferson North Assembly
GEICO Files Lawsuit Against Auto Glass Shop Suspected of Fraud To prove it has a zero-tolerance policy regarding insurance fraud, GEICO has filed a federal lawsuit in Arizona against an auto glass repair shop suspected of submitting fraudulent glass repair bills, according to a March 25 press release. GEICO seeks to recover damages under civil RICO statutes, as well as for unjust enrichment and fraud. GEICO says the Arizona action is also a preview of future lawsuits. GEICO alleges that its customers’ signatures were forged on invoices submitted by A & E Auto Glass for repairs that were never performed. Specifically, GEICO was billed for repairs associated with recalibration of advanced driver assistance systems using falsified documents. In many instances, such a system was not even available on the specific make and model of the vehicle being repaired. In addition to billing for services that were never provided, the suit alleges that the defendants submitted fabricated documents from Arizona automobile dealer76
ships for reimbursement of glass parts that were never purchased. “GEICO has a zero-tolerance policy when it comes to insurance fraud,” said Shane Wheeler, assistant vice president of claims in GEICO’s Tucson, AZ, office. “These incidents of fraud hurt consumers because they cause premiums to increase.” Wheeler went on to say that GEICO has a long history of seeking out individuals willing to commit fraud. GEICO intends to file future lawsuits to continue making every effort to protect its customers and the public from fraudulent glass repair operators. GEICO filed its case—Government Employees Insurance Company, et al. v. A & E Solheim, LLC, d/b/a A & E Auto Glass, et. al.—in the U.S. District Court for the District of Arizona. GEICO also seeks a declaration that any pending claims are not owed. GEICO is represented by Barry Levy, Rivkin Radler LLP and William Thorpe, Thorpe Shwer P.C.
MAY 2019 AUTOBODY NEWS / autobodynews.com
plants, and General Motors Co.’s Flint Truck plant, according to data provided by the Center for Automotive Research. Those three Michigan plants all source engines from plants in Mexico. GM and Fiat Chrysler declined to comment, deferring to the Alliance for Automobile Manufacturers. The American Automotive Policy Council, a different trade group that represents GM, Fiat Chrysler and Ford Motor Co., issued a strongly worded statement April 1. “Any action that stops commerce at the border would be harmful to the U.S. economy, and in particular, the auto industry,” said AAPC president Matt Blunt. “Access to Mexico’s market place and North American integration are critical to operations in the U.S.” The White House said April 1 that up to 2,000 inspectors who screen cargo and vehicles on the Mexican border may be reassigned to help handle the influx of migrants. That could slow the movement of goods even if trade isn’t cut off completely. Senior aides defended a border
closing on March 31 news shows, with acting White House chief of staff Mick Mulvaney saying it would take “something dramatic” to avoid the closure. Trump’s threats to close the border are part of the president’s longer-running effort to install a wall at the U.S.-Mexico border. After declaring a national emergency at the border in February, an attempt to access wall funding voted down by Congress, the president has said he would end aid to Guatemala, Honduras and El Salvador. As the industry braces for a possible closure of the Mexican border, several other trade issues hang in the balance. A proposed replacement for the North American Free Trade Agreement—known as the United State-Mexico-Canada Agreement— is still up in the air. And an investigation into whether the Trump administration can levy tariffs on imported cars and parts in the name of national security still sits with the president, who has until May to act on the report. We thank The Detroit News for reprint permission.
BMW Recalls 183,000 Vehicles for Takata Airbag Inflators by David A. Wood, CarComplaints.com
We thank CarComplaints.com for reprint permission. https://www.carcomplaints.com/news/2019/bmwrecalls-183000-vehicles-takata-air bag-inflators.shtml BMW is recalling about 183,000 vehicles to replace Takata airbags at risk of exploding. More than 170,000 of those vehicles had their original steering wheels replaced with the optional sports steering wheels, which contain frontal Takata airbag inflators at risk of rupturing. •
2000-2003 BMW 525i
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2000-2003 BMW 530i 2000-2003 BMW 540i 2000-2004 BMW X5
In a separate recall of 12,880 vehicles, BMW is recalling the 2015 X1 sDrive28i, X1 xDrive28i and X1 xDrive35i. These vehicles are equipped with driver’s side Takata airbag inflators used as original or replacement equipment. The recalls began March 4. Dealerships have been replacing the Takata airbag modules. Customers with questions should call BMW at 800-525-7417.
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