MAGAZINE LEADERS IN THE SALE OF QUALITY
January 22-25, 2009
NADA 2009 Update Page 2
Also In This Issue
PARTS
November 2008
Parts Performance Group Meets in So. Carolina Pages 3-5 MMG Vendor Committee Meets with Reynolds & Reynolds Page 8
Marketing 101 Reynolds & Reynolds Dealers Edge Headlines RI Supreme Court Considers Survey Case CA: New Labor Rate Survey Rules The Biggest Change in Your Life Fuel Efficiency is Coming Obama Directs Team to Consider Options Tracy Industries OEConnection Storage Consultants of America Enlightened Perspective Global Gourmet Crossword Progressive Ins. vs. North State Dismissed Most Influential Women Honors Five Nebraska A/B Association Asks‌ MMG Committees
Page 6-7 Page 9 Page 10 Page 11 Page 12 Page 13 Page 16-18 Page 18 Page 19 Page 20-22 Page 23 Page 24-25 Page 26 Page 27 Page 28 Page 29 Page 30
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NADA 2009 January 22‐25 NADA and the MMG meeting dates: Thursday January 22nd – Sunday January 25th
January 22-25, 2009
***Tentative schedule***
•
nd
Thursday January 22 rd • Friday January 23 th • Saturday January 24 th • Saturday January 24 th • Sunday January 25
Arrival and check in, Executive committee meeting @TBD MMG business and Tier 1 Vendor presentations 7:30‐5:00pm @ TBD Cocktail reception 7:00pm to 10:00pm @ TBD MMG business and Vendor Fair 7:30‐5:00pm @ TBD Evening Open to explore New Orleans! Open to explore the Convention Floor or depart for home
(There will be no Super Performance Group Meeting) If you wish to stay on Sunday night you must make your own accommodations!
We are expecting 25+ managers to attend. Please watch for a listing of attendees in our early January 2009 Issue of the Mopar Masters Magazine!
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Parts Performance Group Meeting September, 2008 Myrtle Beach, SC Submitted by Ole Olson - Elk River Dodge Jeep
The Mopar Masters Guild has proven once again that it takes more than hurricanes or tropical storms to keep us from meeting. As almost 5” of rain fell on Myrtle Beach, we convened Thursday, September 25 for our 2008 Performance Group meeting. We did discover that hard economic times are the one thing that can slow this group down. Originally, 38 people had registered for the meeting. By Thursday morning we were down to 25 members. Included in the group were 3 Service Managers and 2 Parts & Service Directors. We began the morning with a Mopar 5300/ARO update from Tom Gianfermi. Tom explained that several D2D screens would soon be consolidated in DealerConnect (this happened about October 1). We could now find a list of ARO Guaranteed parts under the Suggested Returns tab. Tom explained that in mid-October ARO would start an “ARO+ dealer” category. This will be similar to the current “Collision Class Dealers” that we already have. Tom also gave us a preliminary look at Dealer Rewards for 2009. Vehicles-In-Operation (VIO) and CSI will be out of the equation. We will be rated on sales volume, loyalty, Service retention, and bonuses (specific targets to be announced later). There was also a discussion on future changes for returns and obsolescence. Many metrics are still undecided by Mopar – stay tuned! Tom can be contacted at tjg2@chrysler.com or at 586-755-9751. Tom has promised us an article in this magazine before NADA. (Continued on page 4)
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Next on the agenda was Brian Riddleberger, the Southeast Rep for Tracy Industries. Brian thanked us on behalf of Tracy nationwide for all the business and support. He reviewed their various promotions such as Tracy Dollars. Brian encouraged everyone to take advantage of the current display credit program because it will be going away soon. If anyone has questions about any Tracy program, contact Brian at briddleberger@tracyind.com or 336-589-5851. Next up was our resident parts guru, Jim Jackson of LearnStuffNow.com, with our main meeting topic of “How to gain Service and Parts profit through the Service drive.” Jim started with some background to help us track our success rate by explaining the “DMAIC” principle. The process is as follows: D = Define M = Measure A = Analyze I = Implement C = Control The key to this principle is to define better output. “If you don’t like the output, change the input” where output is a function of input. The remainder of the day was spent discussing various strategies to build Service drive business for both departments. Some of the many ideas were: ♦ Never turn a customer away because you’re too busy. Use “triage” techs to generally assess vehicle problems. ♦ Always give a customer at least 2 choices for repair (i.e. Value‐Line vs. OEM). ♦ Parts to refer Wholesale customers to Service for Flashes or Powertrain repairs ♦ Print a copy of Service ROs in Parts to allow for pre‐pulling needed parts or estimating ♦ “A Day at the Spa” for your car ♦ Think in a “manufacturing” context. Orders(ROs) and Materials(Parts) are brought to an operator(tech) and the end result is a product(repaired vehicle). Friday morning brought a bit of a “wake-up” call from Jim. He reminded us that over the years, the Mopar Masters Guild has raised a number of issues but then was also very good at offering solutions to them. Jim had noticed that in our last couple of meetings, we seem to (collectively) have lost our enthusiasm. Have we gotten complacent? Have we let the present economic downturn get us down? Or just worn out? Jim reminded us that we have billed ourselves as “the Best of the Best” and challenged us to “get the spark back!” Jim finished the morning with one of his motivational discussions entitled “Leading the Way”. Jim explained that he had two main purposes for this presentation. First, to explore the dynamics of change and the experience of people who are going through it. Second, to learn a leadership model that can be used to manage change more effectively. We all know that our business is changing. To be truly effective leaders we must manage change. Studies show that most people would rather live with a problem they can’t solve than accept a solution they don’t understand. Jim explained the Seven Dynamics of Change: 1. People will feel awkward, ill‐at‐ease and self‐conscious. 2. People will think about what they have to give up. 3. People will feel alone even if everyone else is going through the change. 4. People can only handle so much change at one time. (Continued on page 5)
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5. People are at different levels of readiness for change. 6. People will be concerned that they don’t have enough resources (i.e. time, skills, etc). 7. If you take the pressure off, people will revert back to old behaviors. Each of these steps has a corresponding strategy to help implement them. Jim then explained the five steps to helping people change: Tell, Show, Let them try, Observe, and Praise progress. Obviously, Jim’s presentation was much more in-depth then I have room for here. To find out first hand, you’ll have to attend our next Mopar Masters Performance Group. Plan now for September 24 & 25, 2009. The exact location has not been determined yet. Watch for updates in this publication. If you have questions, contact Ole Olson at oolson@erfdj.com or 800-441-2301 x3362. We concluded our meeting with a fabulous “Low Country Barbeque” at the beach house of Paul and Barbara Allred in Myrtle Beach. Hors d’oeuvres, fried Grouper, low country boil (shrimp, sausage, potatoes, and corn), and hush puppies were just some of the Carolina delicacies served up. Paul was at his best with apron and spatula in front of a deep fryer. Check out the accompanying pictures.
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MARKETING 101 Submitted by Claire Cummings - Go Chrysler Jeep West In economic times like these we all struggle to see any lift to our business. It’s usually the slow times when people really start to think about marketing their business, when in fact we all should be developing a plan that allows us to market to our customers through the good and bad times. When we have set a marketing plan in place this will help provide a steady stream of cus‐ tomers coming to us during those slow times everyone talks about. The marketing plan can also provide a direction for the department, keeping them busy and focused on the next task at hand. In the following issues of the Mopar Master Guild Magazine I will be discussing marketing how to’s, when to’s, who to’s, what to’s and where to’s. I want to be able to provide all of our Mopar dealers with ideas to increase awareness of our brand as well as create a loyalty with those customers and to bring business in, so we won’t like other businesses, have to talk about the “slow times”. I encourage anyone reading these articles to email me with questions or there ideas they feel comfortable sharing, that we can display in the magazine. This will provide feedback to many others who may have similar questions or ideas but may not know how to get started. When it comes to Marketing the opportunities can be endless if you allow them to be. Whether it is the parts manager, a parts advisor or an outside source that is controlling the marketing it is important to have a direction and a target market that you are focusing on. Honing in on a particular group, product, etc. makes it easier to track your re‐ sults. With those results, variations can be made to the plan to create greater opportunities in other areas. Here are my suggestions on how to get started with your personalized marketing plan. 1st: Determine who will lead on the marketing programs. I feel strongly that whoever that person may be, it should be someone who is working in the department, directly involved in the parts business. This person will then have an idea of what goes on with your customers on a day to day basis, they will know about products and current promo‐ tions and have first hand knowledge about them that an outside source would not be as in tune to. By having direct per‐ sonnel involved with the marketing they will also be able to get a better read on what the market and current customers are experiencing and be able to forecast their possible needs for future business. 2nd: Identify your target market. Who are your customers, who do you want to be your customers? If you cur‐ rently have a customer base it is strongly encouraged to continue marketing to them. It is a way to continue building and maintaing a relationship with the shop. Target markets should be chosen with a thought process of having a product or service to offer them that would be of value. For example, if a parts department wanted to expand their services by of‐ fering performance parts, it would be wise to then target the high performance customer (i.e. racers, hot rod owners, car shows, etc). Some examples of target markets are: ♦ Performance Enthusiasts ♦ Collision Shops ♦ Mechanical Shops ♦ Specific vehicle enthusiasts ♦ New car owners 3rd: Brainstorming sessions always add value. As the nominated marketing manager, gather your people for a thirty minute to an hour long meeting. Comprise questions or thought starters that you can ask in the meeting. Have someone available as the “note taker” who can jot down all words, ideas or answers as your staff is rattling them off. No answer is a wrong answer and no idea is a stupid idea. Enforce that slogan to your staff so that nothing is held back, it is very important that people put ideas out there because that idea could turn into the most profitable one. The informa‐ tion that is taken from this brain storming session can be reviewed and made into new marketing ideas, new target mar‐ kets and areas of opportunities. Here are some examples of a brain storming session: Question 1: What comes to mind when you think of a Jeep? ♦ Off‐Road (Continued on page 7)
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♦ ♦ ♦ ♦ ♦ ♦
American Made Toys/Accessories Outdoors/ Camping Trails Ice Racing Army From the answers that were given, these are the marketing ideas: ♦ Sponsor a trail ride or an ice racing event. Put banners with your name all over the event, set up a booth where information can be handed to potential customers. This is a smart way to brand yourself and the parts depart‐ ment‐ MAKE PEOPLE REMEMBER WHO YOU ARE! ♦ Create a flier about the accessories that you offer for Jeeps. Cater to that market by telling them on the flier what products you have to offer them for a better “4‐wheeling experience”. Send these fliers to new and used Jeep owners. The sales staff or service department should have a list that you can pull from. ♦ Team up with an outdoor community group. There are listings of groups in your area that you can pull from the web or even from magazines, who have specific interest in the outdoors. Some examples of these groups may be; 4‐wheeling clubs, hiking or biking clubs, extreme sports, etc. Contact the group leader and see how you can become involved. This can be a networking opportunity for your department that can bring worlds of opportu‐ nity. 4th: Marketing communications, how will your department put themselves out there? There are many ways to communicate with your customers and most of the time we do them all, just not effectively. To effectively reach your customers it’s all about consistency! We have all heard the term over‐communicate; provide the customer with more information than they may need. When we do this we can hit a secret spot with our customer. For example, we may have several products or services available but they may not all appeal to our customer, if we continue to market to them different ways and with different product we can be sure that one of those items will strike a chord within our cus‐ tomer that can make them a customer for life. Some examples of different ways to communicate with marketing are: ♦ Fliers distributed by an outside sales rep, by your parts drivers or even posted in high traffic areas ♦ Develop an online website ♦ Mailers ♦ Develop a brochure of products and/or services ♦ Publish a newsletter for customers and prospects (something simple and inexpensive will work) ♦ Include a feedback survey with any communication mailers sent to your customers that can provide you infor‐ mation about how to become better, ways to communicate to prospects and ideas from the customer about your business ♦ Business Cards!!! PASS THEM OUT TO EVERYONE‐ this is a great way to market! Give prospects two, one for them and one for them to pass on ♦ Produce a poster or calendar that can be given to customers and prospects ♦ Come up with a slogan or logo. Utilize it on everything that goes out; letterhead, emails, banners, receipts. ♦ Include testimonials in your literature or marketing material ♦ Use colored or off sized envelopes for any direct mail, this will separate you when your customer or prospect is sifting through junk mail ♦ Events or vendor booths There is no limit to marketing. Everywhere there are opportunities waiting to be sought after. We just need to be ready with the right tools to approach each situation. I truly hope that this 1st edition of Marketing 101 will reach out to all of you in some way so that we all can grow our businesses and make Mopar a stand out brand. Any questions or comments please don’t hesitate to call or email: 303‐384‐4512 or cummingsc1@autonation.com.
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Mopar Masters Guild Vendor Committee Meet in Tampa with Reynolds & Reynolds The Reynolds & Reynolds committee attended our annual meeting with the host site being at their Service Price Guide headquarters in Tampa, Florida Friday October 24th. John Gilbert, Tom Watson, Rick Cutaia and myself were the Guild members in attendance. The host from Reynolds were Jason Sideris (Director, Fixed Operations Planning), Craig Owen (Manager, Product Planning) and we were fortunate to have Jon Strawsburg ( Vice President, Product Planning) in attendance as well. The meeting was a full day including a working lunch that took place in their conference room at the SPG site. Jason kicked off the meeting serving as the moderator. Jon began the meeting by covering Reynolds’s strategic direction. It is evident that they are focused on customer service and retention. Several of our members commented that we see more Reynolds support people at the dealership level than we have ever seen before! This is a good thing in my opinion. We shared with the group the Chrysler dealer’s issues with ARO, managing guarantees, the need for electronic packing slips to post back into the DMS systems, etc. All guild members should take on the task of communicating to Chrysler our needs and their responsibility to provide the data to all DMS providers to allow them to assist us. There was discussion about user security and what level is needed. I’m sure all of you have experienced tracing information back to an individual who replies, “I didn’t take that part off the ticket”. We covered all of the enhancements that are coming on 8.5 in January 2009 plus the topics of future enhancements. We were asked about “Deposit fee parts”. It is apparent through a request from Chrysler for the DMS providers to create the data transfer that we will see core deposits on new parts some time in the future. A topic that surfaced in our conversations was about the link in myreyrey.com. If you don’t have a log on you need one! Log into my reyrey, Click on “Online support” at the top, Look down the left column under Services and click on ERA product suggestion. Fill out the form and send it! This is one of their measuring devices that determine how enhancements get prioritized! USE IT! While we were there Jason gave us a tour of the facility and we all met the Chrysler Team. It was great to match faces to voices. So many of their staff has helped my store on many occasions. Merri Bass, Jeff Ness, Gene Beard and Gary Amacher are just a few. If you are not fully utilizing SPG, get in touch with these folks. They are eager to assist you. If you don’t subscribe to SPG, you are missing the boat! You need to pursue the application! The icing on the cake was that we concluded the day by attending an Employee Appreciation Banquet Friday night at a local country club. We saw first hand what makes this group as well as the Reynolds & Reynolds company a great business partner. All of these employees and
their significant others were engaging in an event that showed the team work, camaraderie and commitment to their work was special. It surely is the foundation that produces the level and support of their company that we enjoy! I was impressed! Paul Allred Mopar Masters Guild Reynolds & Reynolds Committee
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“The nation’s new-car dealerships are facing their toughest times in 30 years, as an increasingly fragmented industry, high real estate costs and pressures from the manufacturers freeze cash flows or cause ledger books to bleed red ink.” DealersEdge Daily Headlines 10/24/2008 The headline and sub-head from an UPI article in the Philadelphia Inquirer, dateline June 11, 1989 – just in case you thought this time is different as compared to any other economic slowdown. Most car dealers survived the slowdown reported in 1989 and most will survive this one too. It’s easy to get caught up in all the negativity being published in the mainstream press about the auto industry, but for as long as I have been in this business, (and that’s a long time), the cyclical nature of the car trade, with its soaring highs and sometimes devastating lows, has been nothing but a constant. When times are good, you can be sure it won’t last. And when times look bleak and you are headed down a dark tunnel of despair, you can also be sure that that tunnel has a back door that will lead to a new uptick that will make you forget about the bad times very quickly. Just to underscore that thought, here are a few nuggets from the 1989 article referenced above:
• “… J.D. Power & Associates…predicts that as many as 2,000…dealerships will go out of business in the next • • • • • • •
two years, with domestic dealerships, especially those selling General Motors Corp. products, being hit the hardest.” “The makeup of U.S. dealerships also will change dramatically within the next decade as Asian automakers building cars both here and abroad establish new franchises. Much of that new business may result from domestic car dealers switching to or adopting import brand…” “…analysts caution that many of those “multifranchises” are heavily leveraged operations that could tumble like the proverbial house of cards if the auto business becomes much worse.” “Dealer profits have dwindled despite a relatively stable market of about 15 million new cars and trucks sold each year since the early 1980s.” A quote from then NADA President, Ron Tonkin, “ Most dealers last year did not average more than 1 percent in after-tax profits, and for the first quarter of 1989, more than half were in the red.” “Proliferation of new models during the last two decades is part of the problem, as new brands appear and more types of vehicles are offered to fill every buyer niche. That has fragmented the market both by volume and geographic territory, reducing per-dealer business. “The real estate people have also forced tremendous inflation in land costs, making it almost prohibitive to start or acquire a new dealership,” said Thomas O’Grady of Integrated Automotive Resources Inc., of Wayne. PA. “Automakers have made their dealers an endangered species by transferring their costs to the back of dealers,” said Tonkin…”
So if you are tempted to believe that the financial and economic crisis of 2008 – some 19+ years later – is somehow the beginning of the end of the retail car business – well history just does not support your theory. The mid to late 1990s were a great time to be in the car business. This suggests that, while we can never be sure how long the “bad days” will last, we can be sure that a brighter and more robust business climate is somewhere around the corner. In my years of experience observing and reporting on the good times and bad times of this nation’s auto dealers, you can never count them out. Whatever the challenges and threats thrown their way, this class of business men and women has demonstrated an innate sense of what it takes to survive. Some are sure to perish for a variety of reasons, but the core of the U.S. dealer body will survive and in the coming decade will make a lot of money, employ a lot of people and better the communities in which they trade. Submitted by Dan Murphy
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RI Supreme Court Will Consider Labor Rate Survey Case The Rhode Island Supreme Court Wednesday agreed to hear the appeal of a recent case decided by the Superior Court that would have forced insurers to conduct a labor rate survey and use this information as the sole determinant of the prevailing auto body labor rate. The Court also moved to stay the lower court's decision. The case, Auto Body Association of Rhode Island (ABARI) vs. State of Rhode Island Department of Business Regulation (DBR), stems from the department's interpretation of a 2006 Rhode Island law regarding labor rates surveys. The DBR initially interpreted the legislation to mean that a labor rate survey is not the sole determinant of the prevailing labor rate; rather, it is only one factor which insurers are to consider in determining such a rate. The DBR claimed that the legislation was ambiguous in its use of language and the DBR therefore was required to interpret the law as best it could. ABARI appealed DBR's decision to the Superior Court claiming that the law does require the labor rate survey to be the sole determining factor in setting prevailing labor rates. The repairer association also claimed that the legislation was not ambiguous and did not allow any interpretation by the DBR. The Property Casualty Insurers Association of America (PCI) intervened and made a filing in the case asking the court to affirm DBR's decision. The Superior Court judge ruled in favor of ABARI and both the DBR and PCI filed appeals to the Supreme Court. Now the Supreme Court has consolidated the appeals and will hear the case. Frank O'Brien, PCI's vice president and regional manager, said the Superior Court ruling removed any checks and balances regarding the establishment of a reasonable labor rate. He said, "ABARI wants to circumvent the role of competition in setting prices and force insurers to pay whatever amount is reported to them in the Auto Body Labor Rate Survey." The Rhode Island Supreme Court will be deciding whether or not the Superior Court judge made an error of law when she ruled in her decision that the auto body labor rate surveys are the sole determinant in the labor rate. Jina Petrarca-Karampetsos, attorney for ABARI, said the association is pleased that the Supreme Court decided to take the case. "We are confident that the court will uphold the judge's earlier decision and we will have some finality on this issue." Reprinted with permission of CollisionWeek (www.collisionweek.com)
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California: New Labor Rate Survey Rules Expected Soon The California Department of Insurance is inching closer to releasing long-awaited rules to clarify how insurers may use labor rate surveys in adjusting claims. At the same time, the California Bureau of Automotive Repair (BAR) is considering changing its shop information survey to ask shops what rates they charge for labor. The Collision Repair Association of California (CRA) is working with both authorities to ensure that any outcome will result in a fair market for repairers. However, the CRA is concerned that any attempt by the BAR to initiate a labor rate survey before any final rules are adopted by the DOI would only cause more controversy in the market. The CRA opposes using labor rate surveys to set labor rates. However, the Department of Insurance has presented draft rules to a working group of insurer and repairer lobbyists, including Richard Steffen representing the CRA, and has scheduled a meeting on October 17 to consider a labor rate survey proposal. The CRA believes that labor rate surveys that meet specific standards may be considered in adjusting the cost of repairs but they should not be used by insurers to set a prevailing rate. The CRA is adamant that insurers may adjust a written estimate of repairs by an ARD (automotive repair dealer), but insurers cannot write the initial estimate. Just some of the standards that surveys should meet, according to the CRA, include: -DRP rates or negotiated discount rates should not be included -Sample size of the survey must be statistically significant -Survey must be limited to shops registered with the BAR and possessing certain minimum equipment -The insurer must disclose publicly who was surveyed CRA lobbyist Richard Steffen, who has participated in all working group meetings, offered the following insights, "The process is slow, tedious and important. The future of claim disputes can turn on one word. The CRA believes labor rate surveys should not include DRP or other discounted rates and that the survey should be representative of the rates of quality shops in a specific market area. Sounds simple, but finding consensus among repairers and insurers is a challenge." Meanwhile, on October 9, 2008, the BAR presented its proposal to add a question about labor rates in the BAR's periodic survey of industry information. The BAR has never before included labor rates in these information surveys and the CRA is concerned about the timing of such a change. In a letter to BAR Chief Sherry Mehl, CRA representative Alan Wood states, "Our objection is not because it is B.A.R. that is doing the survey. In fact we would welcome such assistance at a more appropriate time. We however recognize that to do so now will create a survey that just starts another controversy. The CRA believes it is critical to adopt specific rules needed to accompany any survey process as the outcome will have severe ramifications to the industry. The mere collection of reported rates without rules will not advance the cause of fair claims adjustment in collision repair." In his letter, Wood also explains the many difficulties with a labor rate survey process specific to the collision repair industry. CRA reported that the BAR Chief has indicated that due to the controversy, the rate question might be removed; however, removal was not a full certainty. Reprinted with permission of CollisionWeek (www.collisionweek.com)
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The Biggest “Change” In Your Life Won’t Be Decided On November 4 It’s The Economy, Stupid Vote for me!!! This election season, we are deluged with information that says we as voters need to make an informed decision. This makes me think of how our customers "vote". Why do they choose one retailer over another? Do they cast their vote in your favor because your repair facility is clean and accessible? Is it because there is coffee in the waiting room, a morning newspaper and possibly a TV set to help pass the time? In traveling to dealerships around the country, I hear again and again that the customer wants the personal relationship that caring, well trained service representatives provide. Like the old Cheers song, they want to go "where everybody knows your name". Now that does not mean the service advisor needs to memorize each customer's name. What it means is that we need to have the processes and people in place to make sure the customer feels different about the service experience they receive. Not radically different, but just enough so they really want to come back and see us. In other words, they cast a vote of confidence for us. Voter confidence begins in service with a good reservation system that says "we were expecting you". The ability and willingness to handle the customer that just "stops in" for maintenance is also important. A prepared service department has the information needed for today's business at their fingertips. Spending an extra minute with each customer to understand their concerns also sets you apart. Going to the vehicle and making notes of all the customer's wants and needs will help ensure that the right information gets to the technician, all work necessary is completed, and the vehicle is fixed right the very first time. And even identifying obvious needed repairs and maintenance are appreciated, allowing the customer to make a decision based on their specific situation. In other words, give the customer plenty of reasons to vote for your dealership! The route we take to build the relationship with our customers is making commitments and living up to them. Successful politicians usually keep their promises. When we tell the customer we will call them, we need to make the call. When we offer to do a complimentary inspection on the vehicle, the results need to be shared, whether the vehicle needs work or not. All these actions show the customer that we are committed to their satisfaction and ultimately, our success too. Where we choose to do business is dependant on many factors. My "vote" goes to the retailer or service person that cares about my needs. See you at the polls!
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Our Supporting Vendors Support those who support you
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Our Supporting Vendors Support those who support you
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Fuel efficiency is coming — it just takes time Look to 2010 for wave of fuel-efficient vehicles Rick Kranz Automotive News
Wait till next year. Or, rather, 2010. When gasoline prices hit an all-time high in July, consumers wanted fuel-efficient cars yesterday. But the rules of product development and testing mean that automakers need at least two years to launch a new fuel-efficient car. Companies had been working on higher-mileage cars for years, but those efforts went into overdrive in early 2008. Last December, the federal government passed a new energy law raising corporate average fuel economy standards substantially. Under the new law, fuel economy must increase steadily until the industrywide fleet averages at least 35 mpg in the 2020 model year. When the law was passed, cars had to get an average of 27.5 mpg and light trucks 22.5 mpg. Oct. 1, 2010, marks the beginning of the 2011 model year, when the tougher new CAFE standards kick in. The next month, the much-anticipated Chevrolet Volt plug-in hybrid arrives. The Volt is perhaps the highest-profile member of the debutant class of 2010. That year will see the debut of vehicles engineered to meet the new rules and customers' newfound interest in fuel economy. Some will feature new technologies. Others will bring in higher volumes of technologies that already are trickling into the market. To be sure, few vehicles will have exotic, cutting-edge technologies that leapt from the laboratory to the street. The short deadline to meet CAFE demands means that most automakers are relying on the tried-and-true. "I don't see a whole lot new coming down the pike," says Jeff Jowett, manager of North American powertrain forecasts at CSM Worldwide. "I just see higher volumes of what we have today." Still, there's no doubt that 2010 will mark the beginning of a sea change in what we drive. Here's a rundown of technologies to watch for in or by 2010. Higher mpg Here's how much various technologies can improve fuel economy. TECHNOLOGY Diesel engine Gasoline direct injection plus turbocharging Dual-clutch transmission Cylinder deactivation Continuously variable valve timing Stop-start system 5-speed transmission
Gasoline engine
PERCENT IMPROVEMENT IN FUEL EFFICIENCY 25-30%
Multiport fuel injection
up to 12%
Automatic transmission Using all 8 cylinders Fixed valve settings Idling 4-speed
up to 10% 7% 5% 5% 3-4%
COMPARED WITH
Automatic transmission Six-speed automatics will become commonplace over the next few years. Until recently, four-speed automatics have been the norm, with five-, six- and seven-speed transmissions generally limited to premium and luxury models. Generally, fuel economy increases 3 to 4 percent when a five-speed transmission is used vs. a four-speed. Switching from a five-speed to a six-speed transmission adds a similar percentage gain. "Earlier upshifts, earlier lockup times keep the engine speeds low and improve the efficiency of the engine," says Roger Clark, senior manager for General Motors' energy center. Ford Motor Co., GM and Hyundai Motor Co. are among the automakers switching to six-speed automatic transmissions. If six speeds are good, are seven and eight better? Yes and no. For now, the added cost likely will limit such transmissions to luxury brands. Mercedes-Benz offers a seven-speed, and the Lexus LS 460 and BMW 7-series sedans have an eight. The overall boost in fuel economy is about 1.5 percent if an automaker switches to a seven-speed from a six. You get another 1.5 percent by going to an eight-speed. (Continued on page 17)
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Dual-clutch transmission A dual-clutch transmission is essentially a manual transmission shifted electronically. The transmission has two clutches. Power to the wheels is not interrupted between shifts — unlike a conventional automatic transmission, which wastes milliseconds and fuel between shifts. The dual-clutch transmission can provide up to a 10 percent increase in fuel economy vs. a four-speed automatic. Audi offers a dual-clutch transmission. Ford, Land Rover and Mazda also plan to offer the transmission.
Diesel engine A diesel engine can provide a 25 to 30 percent increase in fuel economy compared with a comparably sized gasoline engine. Although German automakers are either offering or adding models with diesel engines, CSM's Jowett does not expect the number of diesel offerings to jump. Diesels cost more than gasoline engines. And in some regions, the fuel can be 90 cents a gallon higher than unleaded regular gasoline. Says Jowett: "The consumer sees that and has got to ask himself, 'Why am I going to pay more for a vehicle, more for a diesel engine, when all the efficiencies I am getting I am losing at the pump?' So that is a tough sell. "If diesel prices get back down, close to gasoline, that changes the business equation significantly." Diesels could account for 15 percent of the U.S. light-vehicle market by 2015, says Peter Marks, CEO of Robert Bosch LLC, the North American arm of the world's largest automotive supplier. Bosch is a leader in developing common-rail diesel injectors, the critical component in modern clean diesels. "The diesel price is strictly right now a demand-and-capacity imbalance," Marks says. "According to our sources in the oil industry, we think that by 2010 onward, this capacity shortage will be resolved," allowing the price of diesel to move back closer to that of gasoline. Drivers then will see the advantage of getting more miles per gallon with diesel, Marks predicts. Toyota has a diesel engine arriving in a year or so for its full-sized SUVs. "Certainly we recognize that if customers are looking to save operating cost, that price differential is a serious obstacle to overcome," says Mike Love, national manager of regulatory affairs at Toyota Motor Sales U.S.A. "It really can sort of wipe out the increased efficiency of diesel."
Stop-start The stop-start system automatically turns the engine off when a vehicle stops, then restarts the engine when the driver takes his foot off the brake. The stop-start feature can generate about a 5 percent fuel savings by essentially eliminating idling. That's a hefty improvement at a cost that is barely a sliver of what it costs to develop and build an electric or hybrid vehicle. Today, the system is limited to cars with a manual transmission. The Mini sold in Europe offers stop-start. The Mini Cooper is expected to offer that feature here in the near future. Mazda Motor Corp. will offer the system next year. Engineering hurdles must be overcome to create a version of stop-start for an automatic transmission. "I think you will see a lot of applications of start-stop" in the industry, says Toyota's Love. The automaker offers the system on a handful of models sold in Japan and Europe. Love would not say whether Toyota will offer it in the United States.
Cylinder deactivation This system deactivates some of the cylinders when they are not needed by stopping the flow of fuel to those cylinders. For example, Eight- and six-cylinder engines can operate in a four-cylinder mode. The fuel savings is estimated at about 7 percent. Cylinder deactivation is expected to expand beyond such companies as Chrysler LLC, GM and Honda Motor Co.
Gasoline direct injection Gasoline direct injection — especially when combined with turbocharging — lets smaller engines work like bigger engines. The secret is the way gasoline and air are mixed, resulting in a potential 12 percent savings in fuel when direct injection is offered with turbocharging, according to the U.S. Department of Energy. In multiport injection systems, fuel is injected into the port and mixed with air before the fuel-air mixture is pumped into the cylinders. In a direct-injection system, fuel is injected directly into the cylinder so that the timing and amount of fuel can be precisely controlled. The result is higher compression and lower fuel consumption. "We already have direct injection" engines, says CSM's Jowett. "I think you will see more of that with and without the combination of turbo-chargers." GM, Mazda and Volkswagen AG are among the automakers offering direct injection. Ford's next generation of V-6 engines arriving in 2009 will incorporate direct injection.
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Continuously variable valve timing Valves control the flow of air and fuel into the cylinders. When and how long the valves open (called timing) and how much the values move (referred to as "lift") affect engine efficiency. Optimum timing and lift settings are different for high and low engine speeds. But the compromise for traditional designs has been a fixed setting for high and low speeds. Continuously variable value timing systems automatically change engine timing and lift to the best setting for engine speed. The result is a 5 percent fuel savings, says the Energy Department. Almost every new engine introduced these days adds or refines variable valve timing.
Tires Tires with less rolling resistance save fuel, but not all vehicle models will be treated the same. The gain is about 1 mpg within a vehicle segment, says GM's Clark. "But if you start comparing different segments and performance tires" against nonperformance tires, "it can be up to 2 mpg difference." Tires with less rolling resistance will be adapted to GM's entrylevel models within a product line, but not necessarily an entire model line, Clark says. The fuel-saving tires cost more, and carmakers have to keep an eye on the other tasks that tires perform. "We have to be able to maintain the stopping distance, handling and all the other attributes of the tire," Clark says.
Underbody shield Improving the flow of air under a vehicle is not new. Automakers such as Porsche have spent years on underbody aerodynamics, reducing drag and boosting top speed. Carmakers are designing front air dams that are longer and a bit closer to the ground. The purpose is to direct air away from the engine compartment, where air can be trapped, increasing drag and decreasing fuel economy. For GM, the rear underbody will be targeted on the Chevrolet Cruze, the replacement for the Cobalt small car, and on other vehicles. The Cruze had been expected in 2010 but now could be delayed. "If you got a really good (front) air dam, adding a shield under the engine doesn't help a lot," Clark says. "Toward the back of the vehicle, behind the rear wheels, there is more shielding going on. The Volt will have that — almost a complete belly pan under the whole vehicle."
Obama directs team to consider 'options' for auto industry Harry Stoffer Automotive News November 7, 2008 Barack Obama, in his first news conference as president-elect, today called the auto industry "the backbone of American manufacturing." Obama said he has asked his transition economic advisory team to work on "additional policy options" to help the struggling industry, but offered no specifics. Obama said economic stimulus legislation, which has been eyed as the vehicle for more federal aid to the industry, should be enacted "sooner rather than later." But if it does not get done in the lame-duck session of Congress scheduled to begin Nov. 17, it will be the first undertaking of his administration, Obama vowed. He took only a handful of questions from reporters gathered in Chicago. None dealt with the crisis facing the auto industry.
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ENLIGHTENED PERSPECTIVE If you will take the time to read these, I promise you'll come away with an enlightened perspective. The subjects covered affect us all on a daily basis: They're written by Andy Rooney,a man who has the gift of saying so much with so few words. Enjoy....... I've learned.... That the best classroom in the world is at the feet of an elderly person. I've learned.... That when you're in love, it shows. I've learned.... That just one person saying to me, 'You've made my day!' makes my day. I've learned.... That having a child fall asleep in your arms is one of the most peaceful feelings in the world. I've learned.... That being kind is more important than being right. I've learned.... That you should never say no to a gift from a child. I've learned.... That I can always pray for someone when I don't have the strength to help him in some other way. I've learned.... That no matter how serious your life requires you to be, everyone needs a friend to act goofy with. I've learned.... That sometimes all a person needs is a hand to hold and a heart to understand. I've learn ed.... That simple walks with my father around the block on summer nights when I was a child did wonders for me as an adult. I've learned.... That life is like a roll of toilet paper. The closer it gets to the end, the faster it goes. I've learned.... That we should be glad God doesn't give us everything we ask for. I've learned.... That money doesn't buy class. I've learned.... That it's those small daily happenings that make life so spectacular. I've learned... That under everyone's hard shell is someone who wants to be appreciated and loved. (Continued on page 25)
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I've learned.... That to ignore the facts does not change the facts. I 've learned.... That when you plan to get even with someone, you are only letting that person continue to hurt you. I've learned.... That love, not time, heals all wounds. I've learned.... That the easiest way for me to grow as a person is to surround myself with people smarter than I am. I've learned... That everyone you meet deserves to be greeted with a smile. I've learned.... That no one is perfect until you fall in love with them. I've learned... That life is tough, but I'm tougher. I've learned.... That opportunities are never lost, someone will take the ones you miss. I've learned.... That when you harbor bitterness, happiness will dock elsewhere. I've learned.... That I wish I could have told my Mom that I love her one more time before she passed away. I've learned.... That one should keep his words both soft and tender, because tomorrow he may have to eat them. I've learned.... That a smile is an inexpensive way to improve your looks. I've learned.... That when your newly born g randchild holds your little finger in his little fist, that you're hooked for life. I've learned.... That everyone wants to live on top of the mountain, but all the happiness and growth occurs while you're climbing it. I've learned.... That the less time I have to work with, the more things I get done. Submitted by Dan Murphy
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Across 1. Port 5. Interval 9. Hooded creature 14. The Segway has one 15. Tower town 16. Use 17. Swedish ___ 19. Anvil Chorus composer 20. Backseat feature, maybe 21. Kitchen worker's headgear 23. Whistle blower? 24. Island, beverage, and computer language 25. Creed 28. Astray 33. Sound of 9 Across 36. Mythological ferryman 38. Buck ender 39. Irish ___ 41. English ___ 43. Leeds' river 44. Tennis player, Roscoe 46. ___ Moines 47. Team's luck bringer 49. Part of a stair 51. ___ Linda, CA 53. Planted 57. Go gaga over, in Great Britain 61. Type of reaction 26. Certain urban areas 63. Israeli desert 27. Yucatan settler 64. Swiss ___ 29. Ump 66. Russian ballet great, Diaghilev 30. Anti-perspirant brand 67. Fossil fuel 31. What the fourth little piggy got 68. The 24th and 31st 32. Chuck 69. Lock 33. Took a dip 70. Turkish title 34. Sunni counterpart 71. Hideouts 35. Titles of knighthood 37. Dodge model, once Down 40. Word on a wine bottle 1. Buddhist priests 42. Mural 2. Wield 45. Org. for Heston 3. Sweetheart, symbolically 48. Spanish ___ 4. Foursome 50. Oats, often 5. Things with springs 52. Pilgrim's destination 6. Medieval combat 54. Make a mat 7. Immigrant's course 55. Consumed 8. Ottoman ruler 56. Prepare game 9. Russian ___ 57. Tech. coll. 10. Done 58. Tractor company symbol 11. Animal house? 59. Grimm character 12. Do dressage 60. Endurance, slangily 13. Dismounted 61. Big boat builder 18. Treat with contempt 62. Westwood campus 22. Park and 5th 65. Be greedy 24. Preserve, in a way
Global Gourmet Crossword Puzzle Solution on Page 29
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Progressive Insurance v. North State Dismissed Trial ends before defense even presented their case After three weeks of trial before a New York jury, Supreme Court Judge Mary Smith on Tuesday dismissed Progressive Insurance's fraud claims against Greg Cocarro and his Bedford Hills collision repair business North State Custom. Coccaro had been accused by Progressive of committing fraud in the charges for work performed on a customer's vehicle. After the plaintiffs, Progressive Insurance, finished presenting their case to the court, the judge found that Progressive did not present sufficient and credible evidence to support their claims of fraud against Coccaro and dismissed the case before the defense even called their first witness. Progressive's legal team, headed up by Michael Nelson of Nelson Levine de Luca & Horst, finished presenting their case on Tuesday morning. Coccaro's attorneys, Anthony Mamo and Erica Eversman, then moved for a Direct Verdict. Their motion was granted Tuesday afternoon and all claims brought by Progressive were dismissed with prejudice. The Judge agreed that Progressive failed to demonstrate that their claims against North State had legal merit. After Judge Smith issued her ruling from the bench, Coccaro said he was "‌elated with the Judge's decision. "Coccaro said he was looking forward to getting back to his business and that he is "...extremely grateful and touched by all of the support and encouragement shown by fellow members of the collision repair industry." Witnesses called to testify included Cocarro, Mike West (Southtowne Auto Rebuild in Tukwila, WA) and Progressive Insurance personnel. Mike Orso, President of the New York State Auto Collision Technicians Association (NYSACTA) said, "On behalf of our whole association and its membership, we congratulate Greg in this result. That was a true David and Goliath battle. This is a huge win for the little guy and a huge win for our industry. If Progressive could do this to Greg, they can do it to anyone." Orso, was scheduled to testify as an expert witness for the defense regarding the repairs completed by North State, as well as to offer an opinion on the invoicing. "I was retained early in this case and had not known Greg previous to this matter, other than as a face at NYSACTA meetings. When I traveled to NYC to inspect the car, I had no idea what I was in store for. After 15 years of Wreck Check post repair inspections, I have about seen it all. This Mercedes was as close to original as humanly possible. Right down to the texture of the vinyl coating on the underside of the floor," Orso said. Orso concluded, "It is my hope that every shop and association around the world take notice. This case was very costly and if we all pitch in a little, it will mean a lot to Greg. Reach in your pocket and send him a check because tomorrow you may be the one they pick to whip." With this case behind him, Coccaro still has pending litigation against Progressive. In that case, filed by Coccaro, the complaint alleges that Progressive has engaged in a scheme to injure North State and the public by engaging in deceptive business practices- including telling customers that North State inflates estimates, does shoddy work, and is a problem shop. That case is still in the discovery phase and a trial date has not yet been scheduled. Reprinted with permission of CollisionWeek (www.collisionweek.com)
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Most Influential Women in the Industry honors five LAS VEGAS – The theme of AkzoNobel’s 10th annual Most Influential Women in the Collision Repair Industry awards ceremony was “Defining moments.” This year’s recipients were honored for moving from industry participants to leaders who are all providing a fresh vision for collision repairers. Recipients for 2008 are:
• Judell Anderson, Executive Director of the Alliance of Automotive Service Providers, Minn.
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(AASP-MN). AASP-MN represents over 600 independently-owned mechanical and collision repair shops. This year, Anderson represented their interests to state legislators who passed a law proposed by AASP-MN that prohibits insurers from disregarding costs and repair operations identified by an estimating system. She also helped prevent a measure that would have increased the number of vehicles that insurers can write off as a total loss. Denise Caspersen, Collision Division Manager of the Automotive Service Association. Caspersen is active in I-CAR, Collision Industry Electronic Commerce Association (CIECA), Collision Industry Conference (CIC) and serves on the URG Recycler’s Board, promoting automotive recycling. Caspersen also is active in her community, initiating a campaign to repave the streets in her neighborhood as part of a community rejuvenation. Lillian Maimone, Chief Executive Officer of Marco’s Auto Body in Monterey Park, Calif. Maimone joined her husband’s business in 1984 and helped drive it to be an eight-location business with 180 employees. Honored as a Pepperdine distinguished alumna and an inspiration to others, Maimone was invited to speak at a graduation ceremony. She speaks frequently at high schools and colleges and has mentored women who are pursuing careers in the auto body industry. Gloria Mann, Vice President of Industry Relations for Media Matters Inc. in Thornhill, Ontario. Mann publishes Collision Repair magazine. Mann has turned much of her attention to auto recycling, leading insurers on educational tours of recycling yards and launching a new magazine on the auto recycling industry, Canadian Auto Recycler. She also has helped start up Waterworx, a Web site and special magazine supplement devoted to the promotion of the ease of conversion to low-VOC refinishes. Rochelle Wicklund, co-owner of Wicklund CARSTAR Collision in Liberty. Mo. Wicklund’s shop became the first member of the CARSTAR franchise in 1989, receiving the CARSTAR Franchisee of the Year Award in 2006. Her shop has held I-CAR Gold Professional Training Status for 15 years. Wicklund is on the KC I-CAR Central Committee, which is responsible for planning and bringing classes to Missouri.
Speaking at the ceremony, Marcy Tieger of Symphony Advisors presented advice for the industry to both improve shops and level the playing field for women and anyone wanting to work in collision repair. “Run your business like a business. Fearlessly hire the best people,” she says.
Source: www.abrn.com
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Nebraska Autobody Association Asks Who Determines Labor Rates? The Nebraska Autobody Association (NABA) is hoping to find out whether or not insurance companies are actually surveying collision repair facilities to establish prevailing labor rates in the state. The association is asking shops to complete a survey telling the association which insurers have contacted them as part of a labor rate survey process. The simple yes or no survey asks shops to indicate, for both collision and windshield repair, whether or not any of the insurers listed have contacted them. The survey lists nearly 50 insurers and may be filled out online or faxed in to the association. To make the survey process even easier, there is also a simple checkbox that states, "No Insurer or Claims Processor Contacted My Shop During The Survey Period." The survey period is defined as January 1, 2008 through June 1, 2008. Reprinted with permission of CollisionWeek (www.collisionweek.com)
Global Gourmet Crossword Puzzle Solution
THE GUILD MOTTO
“THE EXCHANGE OF INFORMATION BY LIKE SIZE DEALERS IN A NON COMPETITIVE ENVIRONMENT� This is the reason the Guild exists. The strength of our existence relies not on the voices of a select few, but on the combined knowledge of all. With this in mind, everyone should remember to become as pro-active as possible. The Guild is YOURS, be proud of it and be part of it!
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2008 Mopar Masters Guild Committees President Vice President Treasurer Secretary
Mike Gerber Brent Hoge Steve Hofer Mike Mulkins
Chrysler Jeep Dodge of Bellevue Larry Miller Chrysler Jeep Dodge Park Chrysler Jeep Go Chrysler Jeep West
Executive Committee
All of the above and: Gerry Oakes Paul Allred Rick Monteiro Marvin Windham Alan Yancey Roy Benner Dan Hutton 1st Alternate Robbie Jackson 2nd Alternate
Baxter Chrysler Jeep Metrolina Chrysler Jeep Dodge Jack Powell Chrysler Dodge Don Drennen Motors Hayes Chrylser Dodge Jeep Allen Samuels Dodge Tom O’Brien Chrysler Salsbury’s Dodge City
Membership Committee Brent Christensen (West) Steve Hofer (North) Doug Price (East) Robbie Jackson (South)
Ken Garff West Valley CJD Park Chrysler Jeep Security Dodge Chrysler Salsbury’s Dodge City
Vendor Chairman
Paul Allred
Metrolina Chrysler Jeep Dodge
Newsletter
Don Cushing Mike Mulkins Claire Cummings
Bald Hill Dodge Chrysler Go Chrysler Jeep West Go Chrysler Jeep West
Performance Group
Ole Olson
Elk River Chrysler
Finance Committee
Roy Benner Brent Hoge
Allen Samuels Dodge Larry Miller Chrysler Jeep Dodge
Reynolds & Reynolds
Paul Allred Tom Watson John Gilbert Rick Cutaia
Metrolina Chrysler Jeep Dodge Performance Chrysler Jeep Dodge Preston Chrysler Jeep Rick Hendrick Dodge
ADP
Jim Stoneman Roy Benner Steve Hofer Mike Mulkins Casey Brown
Westoaks Chrysler Dodge Allen Samuels Dodge Park Chrysler Jeep Go Chrysler Jeep West Allen Samuels Dodge Katy
Snap-On OEConnection Dealer Tire
Dan Hutton Tom O’Brien Chrysler Brent Hoge Larry Miller Chrysler Jeep Dodge Rick Monteiro Jack Powell Chrysler Dodge Brian Joynt Power Chrysler Jeep (Dan, Brent, Rick and Brian are the Chairs for Snap-On, OEConnection and Dealer Tire)
Noble
Casey Brown
Allen Samuels Dodge Katy
Hanel
Susan McDaniel Rich Schott Terry Doll
Bill Luke Chrysler Jeep Dodge Moore Chrysler Jeep Earnhardt Dodge
Interstate
Tom Watson
Performance Chrysler Jeep Dodge
NADA 2009 Planning
Robbie Jackson Dan Hutton
Salsbury’s Dodge City Tom O’Brien Chrysler
Website Chairmen
Marvin Windham Don Cushing
Don Drennen Motors Bald Hill Dodge Chrysler