December 2012 Great Lakes Edition by Autobody News

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SCRS Claims SEMA Now the Premier Show for Collision Repairers, Citing Traffic, Exhibitors Half a decade ago, the SEMA Show was less than a blip on the collision repair industry’s radar. Those days are long gone as the show continues to solidify its standing as the premier event for the industry, with filled aisles, packed booths, a burgeoning number of collision-repair-related industries on the show floor, and an infectious energy that collision repairers just can’t seem to resist. “From our vantage point in the booth, you can’t help but notice the enthusiasm of the collision repair customers walking the aisles,” said Brian Shenk, director of marketing services

for Sherman-Williams Automotive Finishes. “I think it’s because the Show is infused with the colorful, cool fun of the custom car segment, which carries over to collision repair participants. Two years ago, we moved our booth to the North Hall, home to the collision repair section, and we haven’t looked back since. Having a presence here has really paid off, and our custom paint group is totally on board, as well.” The SEMA Show is attracting increasing numbers of collision repairers and exhibitors for a variety of practiSee SCRS on SEMA, Page 10

Sandy’s Total Economic Damage May Reach $50 Billion, 250,000 Flood-Damaged Vehicles

Toyota Develops and Announces ‘Predictive Estimating’ Tool—Called ‘Game-Changer’ by John Yoswick

Representatives of Toyota drew multiple rounds of applause at the Collision Industry Conference (CIC) in Las Vegas in November as the automaker previewed what it is referring to as a “predictive estimating” system for its vehicles. Toyota’s Jerry Raskind called the system a “game-changer” in that rather than having an estimator start from a blank page and add line items based on what they know or can locate about OEM procedures, the new system begins with a complete estimate that incorporates all necessary parts and Toyota-recommended procedures, along with links to all related Toyota bulletins and published documentation. The system allows the user to ad-

just the estimate, such as changing the type of part to be used or omitting a procedure not necessary based on the actual damage to the vehicle. Repairs can be substituted for parts replacement. But Toyota believes the system will help ensure estiJerry Raskind mates are more likely to be completed based on the automakers’ prescribed procedures. “They’re more likely to include all the appropriate repair methodologies, procedures and parts, and won’t miss any of the key repair items,” Raskind said. As demonstrated, the system reSee Predictive Estimating, Page 18

SEMA Panel Discussion Reviews InsurerBacked Parts Ordering in Other Countries by John Yoswick

A parking lot full of yellow cabs is flooded as a result of superstorm Sandy on Tuesday, Oct. 30, 2012 in Hoboken, NJ. (AP Photo/Charles Sykes)

$3 billion to its already substantial debt. Eqecat said that the damage from the storm will likely be far worse than See Sandy Damages, Page 27

Change Service Requested

P.O. BOX 1516, CARLSBAD, CA 92018

Widespread power outages and subway shutdowns, added to the tremendous physical damage to property, may make Superstorm Sandy the second most expensive storm in U.S. history, according to the forecasting firm Eqecat. That would rank it right behind Hurricane Katrina. Estimates also suggest that Hurricane Sandy will rank as the nation’s second-worst storm for claims paid out by the National Flood Insurance Program. With 115,000 new claims submitted and thousands more being filed each day, the cost could reach $7 billion at a time when the program is allowed, by law, to add only an additional

VOL. 1 ISSUE 4 DECEMBER 2012

The Society of Collision Repair Specialists (SCRS) held a variety of training sessions and panel discussions aimed at collision repairers during the SEMA show in Las Vegas in November. Among the best-attended was one entitled, Bidding Wars, in which collision industry representatives from Australia, New Zealand and Canada discussed what they have seen in their countries after an insurer mandated use of a particular David Newton-Ross electronic parts procurement system. “We’re not going to tell you what’s going to happen here in the United States,” David Newton-Ross, editor of a trade publication in Aus-

tralia, said as he opened the session. “We’re going to tell you what’s happening in other countries. What happens here is up to you.” Rex Crowther, who sold his two New Zealand shops in 2008 and is now editor and publisher of a collision repair trade magazine in that country, said PartsTrader launched there in 2005, and use of it was manRex Crowther dated initially by one large insurer. With no domestic automakers and a vehicle population that averages 13.5 years in age (compared to 11 years in the U.S.), used parts dominate the New Zealand market, accounting for between 55% and 65% of all parts used, Crowther said. Mark-up on those parts dropped from 25% to 20% See Other Countries, Page 22

Presorted Standard US Postage PAID San Bernardino, CA Permit #2244

2 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Contents Foundation Donations . . . . . . . . . . . . . . 4

2013 Race for Automotive Education

Education Foundation Awards $50,000

AASP-MN Annual Meeting and Convention

Guilty of Junk Thinking? ‘How to

Adams Collision Achieves I-CAR Gold

Honda’s ProFirst Shop Recognition

Andy’s Auto Body and Car Care

Hottest Car, Sport Compact, Truck and 4x4

Brian Bane Autobody Opens in

How Marketing Can Help

Car Crashes into Body Shop . . . . . . . . . . . 4

Many NJ and NY Shops Still Closed

set for April . . . . . . . . . . . . . . . . . . . . . . 8

Recognition . . . . . . . . . . . . . . . . . . . . . . 8

Expands in Alton, Illinois . . . . . . . . . . . 38

Gibson City, Illinois . . . . . . . . . . . . . . . . 8

Cars vs Deer Crashes Increase with

Mating Season in Wisconsin . . . . . . . . . 6

City Approves Shop Expansion. . . . . . . . . . 4

Makeover Grants at SEMA . . . . . . . . . . 30 Think Better’ at SEMA 2012 . . . . . . . . . 34 Program Puts Shops First . . . . . . . . . . 44

SUV Announced at 2012 SEMA Show . 40 Customer-Pay Sales . . . . . . . . . . . . . . 17 in Aftermath of Sandy . . . . . . . . . . . . . 27

Matrix Wand Captures Top New Product

Award at SEMA Show . . . . . . . . . . . . . 36

Collision Shop Spiffs Up Fire Chief’s

MD’s Mark’s Body Shop Releases

IABA to Rollout New Consumer Program . . 4

New Alabama Association to Kick off

Official Vehicle . . . . . . . . . . . . . . . . . . . . 4

Illinois Warns on Flood Damaged

Car Sales. . . . . . . . . . . . . . . . . . . . . . . 10

IN Body Shop’s New Location . . . . . . . . . 10

Car-O-Liner Video . . . . . . . . . . . . . . . . 39

Advertising Campaign . . . . . . . . . . . . . 22

New Mitchell ITR Trends Report Looks at

Rising Deductibles and Severity Trends. 41

Michigan Auto Supplier Adds Jobs

PartsTrader Produces Video of MI Shop

Michigan Deer Wreak Havoc, but

Repairer-Only Meeting at SEMA

for Corvette Parts . . . . . . . . . . . . . . . . 10 Keep Shops Busy . . . . . . . . . . . . . . . . . 7

NMBSA Hosts Repair Advocate Attorney . . 8

Owner Who Likes PartsTrader . . . . . . . . 3 2012 Provides Forum for

Unfiltered Discussion . . . . . . . . . . . . . . 40

Shop Owner Destroys Building for

Rich Evans and Crew Unveil 2004

Timken High School Auto Body

Safelite Group To Acquire Southern

Restaurant . . . . . . . . . . . . . . . . . . . . . . . 4

Students Restore Army Humvee

for Police Department . . . . . . . . . . . . . . 7

WMBA Elects Officers . . . . . . . . . . . . . . . 10

Zara’s Collision Named ProFirst by Honda . 8 COLUMNISTS

Attanasio: My Crazed 36 Hours at SEMA . 14 Franklin: What’s the Value of a Lifetime

Customer? . . . . . . . . . . . . . . . . . . . . . 47

Insider: Customer Service Has the Power—

Don’t Perfume the Pig . . . . . . . . . . . . . 46

NATIONAL

American Suzuki OK’d for $45M

H2 Hummer at SEMA 2012 . . . . . . . . . 42

Glass & Plastics . . . . . . . . . . . . . . . . . 41

Sandy’s Economic Damage May Reach $50 Billion, 250,000

Flood-Damaged Vehicles . . . . . . . . . . . . 1

SCRS Claims SEMA Now the Premier

Show for Collision Repairers . . . . . . . . . 1

SEMA Awards Best New Cutting-Edge

Automotive Products . . . . . . . . . . . . . 28

SEMA in Pictures: Car Candy . . . . . . . . . . 20

SEMA Panel Discussion Reviews Insurer-Backed Parts Ordering

in Other Countries . . . . . . . . . . . . . . . . . 1

SEMA Seeks “Collector Car Appreciation

Day” Federally . . . . . . . . . . . . . . . . . . . 41

to Close US Dealers . . . . . . . . . . . . . . . 10

Seven Experienced Auto Dealers

2012 Event . . . . . . . . . . . . . . . . . . . . . 16

Shelby Tribute Held at SEMA 2012 . . . . . . 16

ASRW Releases Numbers from

Automaker, OEM and Recall News . . . . . . 26

BASF and Finishmaster Win New

Trial in Paint Lawsuit . . . . . . . . . . . . . . 22

Chess Teaches How to Make More Money

Without Spending $$$$ . . . . . . . . . . . . 32

David Brunori of Matrix System

Boosts Collision Repair Education

Elected to Congress. . . . . . . . . . . . . . . 41

State Farm Donates $70K to Collision

Repair Schools . . . . . . . . . . . . . . . . . . 40

Toyota Develops and Announces

‘Predictive Estimating’ Tool—Called

‘Game-Changer’ . . . . . . . . . . . . . . . . . . 1

WD-40 Keeps on Truckin’ When

it Comes to Helping Others . . . . . . . . . 43

way to incorporate that in my sales process so I don’t have to give an estimate on site to the customer while they are standing there waiting. I will do my preliminary notes and come back in at my convenience and write the estimate and send it off for a quote request. It allows me at that point to free up myself to do other things internally, and then I go and review the estimate or quote…I can review it and export it back into my estimating software, and if I’ve already booked the job, I can go on after hours and order the parts for the estimate to the customer and keep moving. It has given me a lot of flexibility in my day. I really believe that this software is going to level the playing field for us smaller operators against the MSOs and some of the big players. I can do more in a day now than I was able to do before. With PartsTrader, I found a way to carve more time out of my day and truly operate more efficiently.” To view the PartsTrader video, go to www.autobodynews.com and search “likes Partstrader”. Steve Tomaszewski is a member of the “industry advisory council” that PartsTrader created last summer.

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Melanie Anderson Contributing Writers: Tom Franklin, John Yoswick, Janet Chaney, Toby Chess, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman, Jay Lukes (800) 699-8251 Sales Assistant: Kristy Navarro Art Director: Rodolfo Garcia

Indexof Advertisers

set for January . . . . . . . . . . . . . . . . . . . 8

PartsTrader recently produced a video titled “PartsTrader Feedback from MI Owner” which features Steve Tomaszewski who has 36 years experience in the industry. Tomaszewski started out working in a small car dealership before getting a university degree in auto body repair and eventually owning his own business. In the 3:21 minute video, music plays and the words “First Impressions of PartsTrader” briefly scan across the screen before Tomaszewski starts to speak. “I worry about the future and the sustainability of a business model my size...,” Tomaszewski says, “My initial thoughts were panic. Something new, something forced upon me by an insurance carrier…I was frustrated and angry…It was clunky and clumsy…” The video suddenly stops, then flashes the words “After Using PartsTrader” and Tomaszewski is now making positive comments about PartsTrader: “I like the program, I like the concept. I like the efficiency that it gives me as a smaller repair facility. It gives me time to work the estimate and order parts on my schedule. I find that it takes away work. I’ve found a

Great Lakes

REGIONAL

PartsTrader Produces Video of MI Shop Owner Who is Also on its Industry Advisory Council

Serving Illinois, Indiana, Michigan, Ohio, Wisconsin and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2012 Adamantine Media LLC.

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Auto Data Labels. . . . . . . . . . . . . . . 11 BASF . . . . . . . . . . . . . . . . . . . . . . . . . 5 BMW Wholesale Parts Dealers . . . . 30 Brunswick Auto Mart . . . . . . . . . 12-13 BSFco . . . . . . . . . . . . . . . . . . . . . . . 34 Car-Part Pro. . . . . . . . . . . . . . . . . . . . 6 Chief Automotive. . . . . . . . . . . . . . . . 7 Classifieds. . . . . . . . . . . . . . . . . . . . 47 Dent Tools Direct USA . . . . . . . . . . 28 Equalizer . . . . . . . . . . . . . . . . . . . . . 27 Erhard BMW of Bloomfield Hills . . . 16 Erhard BMW of Farmington Hills . . 16 Ford Wholesale Parts Dealers . . . . 43 Garmat . . . . . . . . . . . . . . . . . . . . . . 18 GM Wholesale Parts Dealers . . . . . 41 Graham Auto Mall . . . . . . . . . . . . . . 17 Haydell . . . . . . . . . . . . . . . . . . . . . . 32 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 24-25 Hyundai Wholesale Parts Dealers . 39 Infiniti of Lisle . . . . . . . . . . . . . . . . . 22 Jack Phelan Dodge of Countryside. 29 K & M Northfield Dodge-Ram . . . . . . 9

K & M Suzuki. . . . . . . . . . . . . . . . . . . 8 Laurel Auto Group of Westmont . . . 19 Lexus Wholesale Parts Dealers . . . 46 Mazda Wholesale Parts Dealers . . . 44 Milosch’s Palace Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . . 23 Mitsubishi Wholesale Parts Dealers. 40 MOPAR Wholesale Parts Dealers . . 37 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 36 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Preval . . . . . . . . . . . . . . . . . . . . . . . 35 Reliable Automotive Equipment . . . 33 Rick Case Wholesale Parts Division. 31 Scion Wholesale Parts Dealers. . . . 45 Solution Finish . . . . . . . . . . . . . . . . 42 Star-A-Liner . . . . . . . . . . . . . . . . . . . 48 Subaru Wholesale Parts Dealers . . 38 Toyota of Grand Rapids . . . . . . . . . . 4 Toyota Wholesale Parts Dealers . . . 45 Van Horn Hyundai-Mazda. . . . . . . . 15 Volkswagen Wholesale Parts Dealers. 10

www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 3

Collision Shop Spiffs Up Fire Chief’s Official Vehicle

In Hermantown, MN, the fire chief’s official car is sporting a new paint job, thanks to Auto Care Collision Center, who donated their services to spiff up the service vehicle. Fire Chief Mike Marshall had originally contacted Auto Care for a quote for repainting a de-commissioned police vehicle they had received to match the current fire department fleet colors. When owner Dennis Adamski heard it was for the fire department, he decided to donate the service. “The fire department does so much for our community,” Adamski said. “This was the least we could do to give back to the people that help to keep our friends and neighbors safe. We’re glad our services could help out such a valuable resource.” The vehicle is used to aid in the response time of the fire chief to emergency calls, including medical, fires, and all other calls for assistance within the community. For the project, Auto Care’s technicians repainted the vehicle to reflect the fire department’s color scheme. Auto Care utilizes green waterborne paint technology. “We’re thankful for Auto Care’s generosity,” said Marshall.

IABA to Rollout New Consumer Program

The Indiana Autobody Association hosted several meetings in November in preparation of rolling out a new consumer program. The IABA hosted meetings in Fort Wayne, New Albany, Bloomington, Merrillville and Indianapolis to rollout their new consumer program, “A Shop You Can Trust.” The program begins Jan. 1 “and we expect it will change the industry in Indiana,” said Tony Passwater, IABA director. The meetings discussed how ‘steering’ or deceptive referrals affect your business and how shops can create stronger customer loyalty and consumer awareness in today’s environment. The meetings will also introduce the association’s ‘short pay process’ and explain the process to collect those items insurers refuse to pay that shops are entitled to and that are required for a proper repair. The special guest speaker was Michael Stacy from Verifacts who provided insight in facility verification and consumer trust. For more information or to register, see IABAmeetings.com or call Tony Passwater at (317) 290-0611.

David Brunori of Matrix System Boosts Collision Repair Education Foundation Donations

David Brunori, executive vice president/GM of Matrix System Automotive Finishes, and Collision Repair Education Foundation Board of Trustees member, recently was recognized for boosting contributions to the Collision Repair Education Foundation. He helped coordinate a $11,000 donation in equipment to the collision program at Oakland Schools Tech Southwest Campus in Wixom, David Brunori MI, and also personally donated $5,000 to the Foundation. The $11,000 donation provided to the school’s collision program was the effort of several industry organizations. Dedoes Industries donated a paint mixing machine system, various cabinets and additional painting supplies. Matrix Systems supplied all the automotive refinish paint to the school, and The CRC Line Inc. donated masking paper, plastic sheeting and mixing cups. Brunori’s personal donation of $5,000 will help purchase requested

tools, equipment and supplies for a Michigan school that applied for the Education Foundation’s 2012 Ultimate Collision Education Makeover school grant, as well as assist with the organization’s Collision Repair Education Campaign general operating fund. “We have been very lucky to receive these donations. In times where there is very little money available for our collision program, it is great to know that there are companies that can help,” said David Hollinger, collision instructor at Oakland Schools Tech Southwest Campus. “It is amazing to me how a few gallons of paint can make a huge difference to a group of teachers and students,” said Brunori. “Technical campuses around the United States are in desperate need of corporate and personal donations to ensure our industry continues to educate the next generation of technicians. One could say it is our corporate responsibility to get involved. I knew immediately our donations were deeply appreciated just by the looks on the kids’ faces. It is a great feeling to know you made a difference.”

4 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Shop Owner Destroys Building for Restaurant

Auto body shop owner Jin Hwan Park is destroying his building to make way for the new Japanese restaurant he’s planning there. Demolition of the old Jin’s Pro Auto Body building at First Street and Springfield Avenue in Champaign, IL, should begin soon. “I hope to finish the building by April and am looking to open up in May,” he said. The new building will be two stories, with a restaurant on the first floor and a bar and karaoke lounge upstairs, Park said. The restaurant is expected to be called Sakanaya, which Park said means ‘fish store’ in Japanese. Sakanaya will primarily serve Japanese food, but also some Korean food, such as Korean-style barbecue, he said. The restaurant will have outside seating overlooking the Boneyard Creek basin north of Springfield Avenue and east of First Street. Upstairs patrons should also have a good view since the bar will feature balcony seating. Sakanaya’s decor will be contemporary, with lots of windows, Park said. He expects the restaurant to be open for lunch and dinner seven days a week.

Car Crashes into Body Shop

Police said that a crash on High Street in Columbus, OH, forced a car into several parked vehicles and into a body shop on Oct. 25. The crash, around 3 p.m., caused the car to hit the Fine Line Auto Body North along High Street. Several cars parked at the body shop were also damaged. The woman who was driving the car was transported to Riverside Hospital in stable condition. Authorities are investigating what caused the crash.

City Approves Shop Expansion

Parma City Council in Ohio has approved a plan by A Touch of Class Auto Body Inc., 1611 Brookpark Road, to expand its existing business and construct a second building for auto-body detailing. A Touch of Class will add 1,400 square feet to its existing 6,347-square-foot building. The new detailing building will measure 1,225 square feet. The plan included several zoning variances, including those for maximum lot coverage. Under code, buildings and hard surfaces can cover just 30% of a lot. The percentage will be 44% for A Touch of Class.

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www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 5

Cars vs Deer Crashes Increase with Mating Season in Wisconsin Because deer aren’t in the habit of looking out for cars, especially during mating season, drivers need to be aware of high traffic deer areas. In Wisconsin, drivers have a 1-in79 chance of colliding with a deer any month of the year, but during this time of year, the odds go up as the fleetfooted, white-tailed creatures hunt for mates during the fall mating season also known as rutting season. During October, Fond du Lac County Sheriff’s Office deputies responded to more than 100 deer-related crashes. “In a two-hour period between 6 and 8 a.m. on Oct. 31, we recorded four deer vs. vehicle crashes,” said Capt. Rick Olig. “We know the rut has started when all of a sudden on one shift we’re inundated with car/deer crashes.” Wisconsin ranks seventh in the new State Farm Insurance company annual ranking of states where drivers are most likely to strike deer. Last year, the Department of Transportation says Wisconsin law enforcement agencies reported a total of 18,176 deer versus motor vehicle crashes, resulting in five deaths, 427 injuries and

$186,975,600 in economic losses, which take into account the financial impact of death, injury and property damage. The number of crashes and property damage is probably much higher, since law enforcement agencies are not obligated to report losses of under $1,000 to the state, Olig said. The economic impact of the crashes in Fond

du Lac County last year was estimated at $5,846,600, according to DOT statistics. Of the 694 crashes recorded in the county, 13 people sustained reportable injuries. Mating season means more business for auto body shops and towing services. Tom Schubert, owner of Jack’s Auto Body, says four of the six vehicles in his shop recently were involved in deer crashes.

6 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Schubert said the average cost to repair a deer strike runs between $2,000 and $4,000. However, the owner of a Lexus in for repairs will end up forking over $8,300. It’s not uncommon for insurance companies to deem heavily damaged cars a total loss, he said. “Insurance companies have a set price when determining if the vehicle is a total loss. If the vehicle is over seven years, they will go up to 100% of what the car is valued at. If it’s newer than that, they only go up to 80% of what the car is valued at,” Schubert said. “According to a federal law, (insurance companies) are not allowed to repair the vehicle after those cut-off points so that people are not driving vehicles that should never have been repaired in the first place.” Dave Whealon and his crew are often called out to the scene of deer strikes to fetch vehicles with shattered windshields, deployed airbags or punctured radiators. “Most of the damage we see is to the front end of the vehicle. But there are times when deer run right

into the side,” said Whealon, owner of Whealon Towing and Service. “We’ve seen semis disabled when deer get caught up under the vehicle which creates a bunch of havoc, too.” Chief Warden Randy Stark of the Department of Natural Resources, says increased deer movement, both day and night, requires drivers to be especially cautious through December. This is particularly true at dusk and at dawn. Olig said motorcyclists are especially vulnerable when deer bound into their paths. “Motorcyclists have little protection and striking a deer creates a violent impact,” Olig said.

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Michigan Deer Wreak Havoc, but Keep Shops Busy

Thank goodness for seatbelts and airbags. Those safety precautions help keep drivers and passengers safe, but body shops know how hitting a deer wreaks havoc on vehicles. Pete’s Auto Body of Mt. Pleasant, MI, is getting flooded with business due to deer-related collisions. Owner Pete Rogers says that his business is already seeing average of 30 cars a week from deer collisions. “This is the beginning of our busy season,” Rogers said. “With deer accidents and with winter on it’s way, we are averaging 30 to 40 cases a week related to deer accidents.” For 34 years, Rogers has seen just about everything come through his business. Collisions of any kind with a deer can be costly, and even more so when safety technology is factored in. “The average cost to repair a vehicle after a collision with a deer is about $4,000,” Rogers said. “Depending on how fast you are going and the year of your vehicle can play a factor.” “Most people don’t know that your seat belts explode like your air bag,” Rogers said. “They’re called pre-tensioners. The belt will pull tighten up on you on its own upon impact with a little bit of an explosion like the air bags. Once you change

those out, your looking at a couple of hundred dollars. You’ve also got two air bags, an airbag monitor and an airbag sensor. Most vehicles, you could be looking as much as $2,500 just in air bags before you’ve done anything else to the vehicle.” “A lot of these accidents can be as much as $8,500 to $10,000,” Rogers said. “You don’t have to be driving that fast either to create that much damage. I just had a brand new truck come in that cost $10,000. The deer wasn’t even large but it was the safety components that made it so costly.” Another technology factor to take into consideration are the black boxes placed in vehicles. “With the black box, we can determine just how fast you were going during the accident and even if you applied the break,” Rogers said. “The black box can also give us feedback as to which sensor went off first.” The technology provides feedback to the auto companies and to the police investigating the accident. Black boxes can also help deter insurance fraud.

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Timken High School Auto Body Students Restore Army Humvee for Canton Police Department In Canton, OH, auto body students at Timken High School are restoring the police department’s new U.S. Army Humvee. Teacher Rick Gerber and his auto body students are dismantling, sanding and painting the newest addition to the Canton Police Department. “We’re pulling all the plating off of it so that we can do a nicer job painting,” Gerber said.

Some sophomore students helped pull off the armor plating, he said, but the juniors and the seniors will do the majority of the restoration work. The 2007 vehicle features armored plating that enables police to use it “for tactical operations with the SWAT team and for officer rescue in high-risk operations, such as armored confrontations,” said Police Lt. Les Marino. Marino applied for the Humvee,

through the Ohio Department of Public Services, which obtained it through the Ohio Law Enforcement Support Office, whose mission is to help law enforcement agencies obtain surplus military property. It had been used as a training vehicle at Fort Campbell, KY, he said. Valued at about $35,209, the vehicle came to Canton in “like-new condition,” with only 7,300 miles on it, Marino said. “We picked it up in May, but we’re just now getting around to getting it serviced,” he said. “We’ll have to order ballistic glass to replace the plastic glass.” Gerber and his students discovered two plates missing. The 1/4-inch plates were used to shield the windows. The school’s welding shop class is constructing new ones. Gerber said the doors, which were removed, weigh about 250 pounds apiece. The gun turret on top of the vehicle was about 300 pounds. Eight students worked to disassemble the turret so that it could be painted and reinstalled, he said, adding that the ballistic glass is about three inches thick, and the vehicle itself is in great shape, he said.

www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 7

NMBSA Hosts Repair Advocate Attorney

Brian Bane Autobody Opens in Gibson City, Illinois

The Northern Michigan Body Shop Association recently hosted repair advocate attorney Erica Eversman at its annual membership meeting Oct. 26 in Traverse City, MI. The presentation focused on “Parts Procurement” and the impact it will have on the collision industry. According to Eversman, the State Farm parts procurement pilot program has recently expanded and while there have been many associations speaking out against the program, many shop owners are still unaware of the negative consequences. Approximately 45 collision repairers and vendors heard Eversman describe how the parts procurement process would further affect the repairers’ loss of business control, reduce facility profit margins, and potentially lead to other types of “procurement type processes.” Expansion of this process into other profit centers within a repair facility, such as paint and material, will only further erode shop operations and margins. She explained the future of the industry hinges on what happens now and those who participate in these types of programs have little or no concern for the future of this industry.

Brian Bane opened his new business, Brian Bane Autobody, located at 601 W. Eighth Street in Gibson City, IL, in mid September. The business is located at the former location of Styck’s Brian Bane Body Shop. Bane brings 15 years of experience to the new venture explaining how he had worked for Bob Styck “forever.” The new business offers a complete line of body work with free estimates and 24-hour towing service.

2013 Race for Automotive Education set for January

AASP-MN Annual Meeting and Convention set for April

The 11th Annual Race For Automotive Education is planned for January 15 & 16, 2013, at ProKart Indoor Racing, in Burnsville, MN. The event, sponsored by the Alliance of Automotive Service Providers, Minnesota (AASP-MN), serves as the primary fundraiser for the AASP-MN Automotive Education Fund, which provides financial resources to support automotive students, enhance automotive programs and raise awareness of career opportunities in the automotive service industry. Since its inception, the fund has disbursed nearly $129,000 directly to students enrolled in automotive programs through the Association’s scholarship program and Skills USA competition. Teams of AASP-MN members and other industry supporters will compete in kart racing at speeds of up to 40 miles per hour. When the final checkered flag waves, the Race For Automotive Education is expected to raise over $6,000. The majority of that money is earmarked to fund scholarships for students entering the second year of a two-year, NATEFcertified automotive program (collision or mechanical) in Minnesota.

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The Alliance of Automotive Service Providers of Minnesota (AASP-MN) is pleased to announce its Annual Meeting and Convention will be held April 11 & 12, 2013, at the Crowne Plaza Minneapolis West, Plymouth. The 1 ½ day line-up will include programs for mechanical and collision repair shop owners, managers and technicians, as well as industry suppliers. In addition to the seminars, AASP-MN will provide several opportunities for attendees to network and socialize with their peers. Thursday evening will feature industry vendors displaying their new products and services and dinner and a show at Plymouth Playhouse. For additional details, log on to the Association’s website, www.aaspmn.org or call the AASPMN office at 612-623-1110. Alliance of Automotive Service Providers of Minnesota is an association of independently-owned automotive service businesses and industry suppliers dedicated to improving the state’s automotive service industry and the success of its members.

8 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Zara’s Collision Named ProFirst by Honda

Zara’s Collision Center has been named a ProFirst Collision Repair Facility by Honda. Zara’s is the only ProFirst Level 3 shop in the Springfield, IL, area by achieving I-CAR Gold Class status, the highest available. “Honda recognizes a body shop because of the shop’s higher level of customer satisfaction through training and technology,” said Brad Zara, president. “Besides achieving the industry’s I-CAR Gold Class designation, a ProFirst shop has completed the I-CAR training course, Collision Repair for Honda and Acura Vehicles. It’s a huge compliment to the entire Zara’s team to be named a ProFirst Level 3 shop.” Collision repair facilities receiving I-CAR’s highest level of training are awarded the I-CAR Gold Class Professionals designation for their dedication and commitment to training staff involved in the repair process. Businesses who have earned this designation not only achieve a high level of training for each employee, but also maintain annual training to provide their customers with efficient, safe and highquality services.

Adams Collision Achieves I-CAR Gold Recognition

Adams Collision in Lake in the Hills and Harvard, IL, has achieved the ICAR Gold Class Professionals designation. The designation is among the highest recognitions for training available to businesses in the collision repair inter-industry. According to I-car.com, businesses that have earned this designation not only achieve a high level of training for each employee, but also maintain annual training to provide their customers with efficient, safe, and high-quality services. Adams Collision owner Dennis Adams said more than 90% of Adams Collision employees go through I-CAR certification. Adams Collision also announced new winter hours. Both locations at 8559 Pyott Road, Lake in the Hills, and 1520 N. Division St., Harvard, are open Monday through Friday from 7:30 a.m. to 5:30 p.m. Saturday hours in Lake in the Hills are 9 a.m. to noon, and by appointment in Harvard. For more information, call 815356-0192 in Lake in the Hills, or 815-943-7390 in Harvard.

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Michigan Auto Supplier Adds Jobs for Corvette Parts

WMBA Elects Officers

IN Body Shop’s New Location

A Michigan auto supplier, Continen- the Indiana Economic Development The West Michigan Body Shop AsBrad’s Motor Marketplace relocated tal Structural Plastics, which makes Corp. “However, the industry is on sociation recently elected and welacross town in Lafayette, IN, and now exterior body panels and structural the rebound with Indiana leading the comed the new 2013 Board of business is booming. Previously, the composites components, announced recovery thanks to our work in preDirectors. shop was located on South Beck matters affecting the industry. Want pro-business to Contribute Southwest Edition? Nov. 13 that it plans to expand its op- serving a low-tax, envi- to this Serving as Chairperson is Cheryl Lane, but now the business address is erations in Huntington, IN, creating ronment,” Hasler said. Blish, Star Collision Carstar; Presioff Veterans Memorial Parkway on up to 50 new jobs by 2015. CSP currently has 286 full-time dent Scott Baker, Pfeiffer Collision Builder Drive. Shop owner Brad HeThe Michigan-based company employees in Huntington and has alCenters; Vice-President Tim Jones, imbach said sales have picked up will invest $6.3 million to renovate ready begun hiring additional producQuality Collision Services, Treasurer about 20% since the move in May. utobodynews.com publisher@autobodynews.com and equip its 203,000-square-foot tion, logistics, engineering and Diane Rodenhouse, Rodenhouse “We outgrew our old place,” HeHuntington facility to accommodate a administrative associates. Body Shop; and Secretary Heather imbach said. “If Lafayette is growing, new production line for the 2015 Founded in 1969, today CSP emOdren, Ed Koehn Chevrolet. it’s over here, even though we always Corvette model body panels. Renova- ploys more than 1,890 people at six The WMBA will be working on did well on Beck Lane.” Promote your business awith Promote your business with tions on the facility, which currently production facilities across the Midvariety of industry issues in 2013 The company has been in an exclusive article featuring an exclusive manufactures products for other Gen- west. including: Feather Prime and article Block- featuring Lafayette since 1992. It offers tuneeral Motors and Ford vehicles, is exThe Indianayour Economic Developing repair process; Consumer Awareups, scheduled maintenance and products or services. your products or services. pected to be operational by next ment Corporation offered CSP up to ness of Bill HB-5362 Mini Tort work on air conditioning, brakes, To advertise y spring. increase to $1,000; Sponsoring suspension, electrical, fluid changes, call Joe Momber at: $300,000 in conditional tax credits ry “CSP’s growth reflects the and up to $50,000 in training grants Skills USA Michigan Region 1 and computer analysis and engine repair. 800-699-8251 proven strength of the Hoosier State’s based on the company’s job creation State Competition, I -Car Welding “We try to be the dealership alautomotive industry, e-mail: a sector hard hit plans. The city of Huntington will Standards, and Member Events internative,” he said. “We’ve got the the jmomber@autobodynews.com sluggish national economy,” consider additional property tax for details! cluding our Annual Golf and technology.” CALL: Joe Momber CallOuting, for details! 51 by said Dan Hasler, Secretary of Com- abatement at the request of HuntingMember Family Night. The company has kept its old www.autobodynews.com merce and chief executive officer of ton County Economic800-699-8251 Development. For more information about the customers while attracting several 800-699-8251 WMBA, please visit wmbaonline. or new clients—60 in just the past six n. www.facebook.com/wmba2012. weeks, he said.

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Illinois Warns on Flood American Suzuki OK’d for Damaged Car Sales $45M to Close US Dealers Register Your Email for Our Illinois Secretary of State Jesse American Suzuki Motor Corp. won in-

White has issued a warning to conterim court approval to borrow as much sumers that flood-damaged cars as $45 million as it shuts auto dealermight be popping up for sale in Illiships and revamps motorcycle and boat nois, saying people at havewww.autobodynews.com been floodsales under bankruptcy protection. ing East Coast car dealerships in the Suzuki Motor Corp. will try to wake of Sandy. avoid long court battles with its 216 With special manufacturer’s disdealers by offering cash payments counts, New York resident Jerry Alwithin 10 days if they voluntarily iberti planned to replace both of the scrap their franchise agreements. cars he lost to Sandy. He described The company will also offer his trade-in: “The seats are all dealers the option to become parts soaked. They’re just inundated with and service outlets, including warthis muck, this dirty water that infilranty work, for Suzuki customers. trated the car.” Water damaged hurVarious state laws normally proricane cars can end up on the market tect dealers when auto manufacturers in the midwest. White said it’s a real try to force them to shut down, threat, pointing to all the waterlogged Richard Pachulski, another Americars that hit the market after Hurrican Suzuki lawyer, said in court. cane Katrina. On Nov. 5, Suzuki put the distrib“When you had Katrina, there utor into bankruptcy to end U.S. losses, were 325,000 cars that we alerted the avoid the costs of tightening federal public to. Now we’re dealing with regulations and to shut down a sales 250,000 automobiles,” White said. network in which 69% of dealers sell He said his office will red flag fewer than five cars a month, according cars that come to Illinois from Hurrito company attorney James Stang. cane areas, and give them a second U.S. Bankruptcy Judge Scott C. look when the owner issues an IlliClarkson gave the company interim nois title. authority to borrow the money.

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SCRS on SEMA

cal reasons, too. At the top of the list is the search for alternative revenue streams, as more and more collision repairers understand the need to think out of the box when considering products and services that can increase their bottom line. At the show, they get ex-

posure to these kinds of options, like customization and specialty paint work that often can be accomplished with a collision repairer’s existing tools. Vendors of products and services that align with a repairer’s core work, such as those related to mechanical repair, are also well represented at the SEMA Show. “Repairers that keep their eyes

See SCRS on SEMA, Page 18

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My Crazed 36 Hours at SEMA with Ed Attanasio

The late writer Hunter S. Thompson (known as the father of “gonzo journalism” and a long-time contributor to Rolling Stone magazine) wrote that he feared and loathed Las Vegas, yet he consistently returned there to get in various forms of trouble and test the limits of acceptable behavior. Thompson would have loved SEMA and other automotive industry shows, because they’re great events for reporters to cover and offer a wide range of opportunities to get into mischief. I know, because I have covered quite a few of these shows for many years as a freelance writer specializing in collision repair. I’m proud to say I survived them all. One year, I covered three in a row—SEMA, AAPEX and NACE, all in Las Vegas—and it nearly killed me. I know firsthand why many shops never attempt this schedule. After eight crazy 15-hour days and walking show floors for miles, I came down with a kind of walking pneumonia, which sidelined me for several weeks afterward. I’m not saying shows like SEMA aren’t fun. In fact, they’re a blast, but they can also be exhausting and if you don’t pace yourself, you can get sick just like I did. Because industry shows, in many ways, are races with the clock running. You have a lot to achieve in a very limited period of time (in SEMA’s case, five days), coupled with a plethora of fun events—like dinPeter MacGillivray ners, shows, cocktail parties, luncheons and even some wining and dining of clients or colleagues, in many instances. Show burnout is a common ailment. Too little sleep, not enough liquids (or maybe too many of the wrong type), sleep exchanged for gambling or other endeavors, too much walking in the opposite direction, fast food, caffeine and sugar, and it all leads to either mental or physical exhaustion if not handled properly. Peter MacGillivray is the vicepresident of events and communications for SEMA. He has attended

every show since 1987, so he has stories to tell and advice to offer. To avoid the feared SEMA burnout scenario, MacGillivray shares a few helpful tips. “We tell our people to get humidifiers and put them in their hotel rooms,” he said. “The air

Celebrities are always a big part of any SEMA show. Here I am with former Chicago Bears NFL star William “The Fridge” Perry as he represents Big Ass Fans (yes, that’s their brand name.)

here in Las Vegas is very dry, so it will help them to sleep. I always have one running in my room. Also get comfortable shoes, because you’re going to be walking miles and miles. And dress comfortably. We loosened up our dress code for SEMA employees two years ago and got rid of those suits. Now our staff wears buttondown shirts and they look and feel much more relaxed.” When you think about it, everyone at SEMA has a different agenda. As a writer, I need to find interesting things to write about. As an exhibitor, your goal is to sell product and meet with as many customers as you possibly can in a very limited time. As a body shop owner, you want to learn about all of the newest products out there in the market and purchase the ones that are right for your business. Since SEMA is not open to the general public (although many sneak in) everybody here has a distinct motive and plays a unique role. Trying to find a particular booth is like playing the board game Battlefield. I was guessing most of the time and walking in exactly the long direction without fail. Every time I was in the North Hall, the next booth I

14 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

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

wanted to visit was in the South Hall. I know SEMA has its own app, but why can’t they invent a GPS for directionally-challenged people like me? A handheld unit telling you that booth 17884 is approximately eight miles from where you’re currently standing and maybe design a route for you so you don’t have to zig-zag all over the Las Vegas Convention Center would be nice. One topic that seems to come up every year at SEMA involves the use of attractive (usually scantily clad) women to help exhibitors as they promote their products and services. Do they attract the kind of customers companies want, or are people simply flocking to your booth to ogle these beautiful ladies? MacGillivray explained that it’s a Catch-22, because the women will create traffic. But does it result in sales and/or can it damage the company’s reputation? “We encourage exhibitors to let their products speak for themselves. Anyone is going to appreciate a beautiful woman standing next to a car, lift or paint booth—but is it really beneficial to your bottom line? Many companies still use them and report it’s a useful marketing vehicle, but lately more and more are moving away from that strategy.” Celebrities are a big part of SEMA—with many doing appearances. MacGillivray said, “We get the big names who want to attend and in most cases, they get in. Tim Allen,

“The King of the Kustomizers” George Barris is always nice and spends time with everyone

Jay Leno, Snoop Dogg, the guys from ZZ Top, race announcer Dave McClelland, the “Voice of NHRA,” and many more apply for tickets and we always accommodate them be-

cause they add a little buzz to the whole affair.” I always like to go around and see the celebrities representing exhibitors at their booths. This year I met former football star William “The Refrigerator” Perry (representing a company called Big Ass Fans), comic/ventrilo-

Pretty girls are always used for marketing purposes at SEMA and always attract crowds of mostly men. These ladies were working the KIA booth as the carmaker unveiled its Super Hero Street vehicles

quist Jeff Dunham, race drivers Danica Patrick (she’s even prettier in person and talked to me for at least 10 minutes), Dario Franchitti (3-time Indy 500 winner) and Mario Andretti; “The King of the Kustomizers” George Barris, the legendary custom

Mitch (at right) and Tom Kelly from Crazy Paint proudly displayed their ’57 Chevy Blue Heaven creation at SATA’s SEMA booth. See Autobodynews.com for background on this vehicle

car builder Gene Winfield and all of what I call the “paint/rebuilder stars” such as Mitch and Tom Kelly from Crazy Paint, Chip Foose, Rich Evans (who appeared at no less than five different booths) and Mickey Harris. Meeting them is always a thrill and every time I like to ask them at least one fun question. Any interest in tackling a buffet after the show? I asked the Fridge. (He chuckled, but declined). Are you smarter than the dummy? I asked See 36 Hours at SEMA, Page 16

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Continued from Page 14

36 Hours at SEMA

Jeff Dunham. (He smiled weakly— not my best question, I admit). Wasn’t the original Batmobile just a Lincoln Futura with a few bells and whistles? I asked George Barris. (He www.autobodynews.com agreed.) CHECK IT OUT! Overall, I would have to say that my 36 hours of SEMA was a fun and fruitful adventure. When I got back from the show, my wife asked me ‘Did everything stay in Vegas?’ I thought about it and told her at this stage in my life only thing I left in Tothe advertise Sin City my phone charger and callwas Advertising Sales at: about 200 business cards, most of 800-699-8251 which are probably already residing e-mail: in trash containers. Oh well. At least advertising@autobodynews.com I did win enough money playing www.autobodynews.com poker to pay for my trip and got this fun story assignment as well. See you next year at SEMA.

See the

ASRW Releases Numbers from 2012 Event

Shelby Tribute Held at SEMA 2012

With the passing of Carroll Shelby meant to them. Above the wall, a on May 10, 2012, the automotive in- large screen displayed historical imAutomotive Service & Repair Week dustry lost one of its most legendary ages depicting Shelby, his career and (ASRW) released its final numbers entrepreneurs. His creative efforts and his creations.Want Severalto iconic Shelby from its 2012us event in New Orleans,on matters Give your opinion affecting the industry. Contribute t partnerships resulted in a legacy of vehicles, courtesy of Ford Motor LA, highlighted by 43 new exhibitunmatched high performance—lead- Company, were also on display. ing companies. ing many to consider him not only the “Carroll Shelby was among the “By all standards and measureman behind the term “American mus- greatest game-changers in the perments, ASRW 2012 was a successful publisher@autobodynews.com publisher@a cle,” but a driving force for the spe- formance automotive industry. He event,” Ron Pyle, president of the cialty-equipment market as well. was one of our true living legends and Automotive Service Association, said will always be a tremenin a statement from ASRW. “We condous inspiration to enthutinue to adjust the content and activisiasts, Promote racers, designers your busin ties to best meet the needs of today’s and those who revel in repair professional.” an exclusive article f making horsepower,” said ASRW featured 237 exhibiting products SEMA your President and or se companies, with 43 new exhibitors To advertise The source for timely CEO Chris Kersting. and 16,652 attendees. call Joe Momber at: “He shared with so many By contrast, the 2011 event information thatsold every his passion for performmore than 20,000 tickets to its industry 800-699-8251 body shopall-access needs! ance, customization and sessions and more than 1,000 e-mail: style. And he set himself super passes, as was reported last year. fo jmomber@autobodynews.com apart CALL: not onlyJoe withMomber interThe CALL strong showing in 2011 800-699-8251 national racing breakearned ASRW a place on Trade Show www.autobodynews.com Start Your FREE throughs, but800-699-82 by bridging News Network’s Fastest 50 list for Throughout this year’s Show, the gap between hot rodders and augrowing trade shows. Mail Subscription. SEMA honored Shelby with a special tomakers, turning stock vehicles into exhibit entitled, “The SEMA Shelby supercars of global renown.” Tribute.” Located in the northwest “Carroll Shelby was inducted corner of the Las Vegas Convention the SEMA Hall of Fame in 1986. NEW Register Your into Email for Our Center’s North Hall, the exhibit in- His life and accomplishments meant a cluded a large wall where attendees lot to the automotive aftermarket,” could write their own personal re- said SEMA Show Director Tom Gatmarks about Shelby and what he tuso.

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How Marketing Can Help Customer-Pay Sales Shop owners and managers learned how to market to self-paying consumers in a presentation led by Steve Trapp and Robert Rick at SEMA 2012 in Las Vegas. Steve Trapp, Program Manager at DuPont Performance Services and DuPont Performance Alliance, and Robert Rick, President of RR Custom Solutions Training and Consulting, presented “Marketing to Consumers Supporting Customer-Pay Sales Efforts.” Current statistics show that 35-40% of customers are asking repairers to write a customerRobert Rick paid estimate, with a historical 50% closing ratio on these estimates. Improving sales skills for these more price-sensitive customers is key. This SCRS Repairer Driven Education course reviewed the advisory sales process and how it uniquely applies to this segment of prospective

customers. “Customer pay is going up,” said Rick. “People are freaked out about turning in an insurance claim because consumers are afraid of being dropped or having their premiums go up.” Because most shop owners don’t have a marketing degree, Trapp and Rick presented a mini “Marketing 101” class to teach shop owners and managers the basics of marketing techniques. In layman terms, marketing is getting someone to contact you or bringing someone to your door. “Marketing happens when someone comes into your shop or when you pick up the phone,” said Rick. “How much time and money is spent getting people in the door? When your phone rings, how many people in your repair shop look at the ringing phone like it’s the devil?” Rick said he wishes he could change the sound of a ringing phone into dollar signs because the person on the other end of the phone could be your next $2,000 customer. Trapp added, “They are already in the door, so why not close them?” Depending on your shop size, increasing closing sales ratio by 5% on customer

self-pays could increase annual repair center sales by $200,000. “Getting work to the door is most repairers biggest need,” said Rick. “At the end of the day, we are here to bring in more customers.” Estimators don’t want to see customer pays because they are comfortable with DRPs, said Rick. But, with customer-pays, “your market opportunities to close are limitless,” he said. Trapp suggested that shops call their sales advisors ‘service advisors

or customer care advisors.’ “Earn your customers’ trust by giving good advice,” Trapp said. “Get rid of the E-word,” Rick agreed. “Stop using the ‘estimator’ word.” Shops need to remember that the key needs of a customer are convenience, empathy, needing a trusted advisor and superior service. The average consumer reports an insurance claim every 10 years. They don’t know the

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Continued from Cover

Predictive Estimating

quires the user only to select the damaged portions of the vehicle (left front fender, for example), and all items related to that section of the vehicle are automatically listed, including such item as one-time use fasteners, necessary information labels, and procedures such as color sand and polish (with a link to Toyota’s bulletin indiRick Leos cating that is a procedure necessary even at the factory). “Everything you need to fix our cars correctly and to our standards is there,” Toyota’s Rick Leos said. “I don’t need all kinds of opinions on how to fix our cars when I have engineers who are telling me how to fix our cars. That’s who I’m relying on. So now if someone wants to challenge this stuff, we have engineers to give them the answers. It’s no longer just you and your opinion, and the guy down the street who ain’t doing it.” Leos, who said he is in discussions about the system with CCC Information Services (and has contacted the other estimating system providers), used the system at the meeting to prepare a $10,000 estimate in two minutes. He said he hopes to have the system completed on Toyota’s top four vehicles during the first quarter of 2013, and he said other automakers are interested in working on the project as a joint venture.

Response to Toyota tool When asked about insurer response, Leos said he believes the system will help smooth out some of the variances in estimating. “We have had some talks with inContinued from Page 10

SCRS on SEMA

open to opportunity can walk the aisles of the show and get any number of ideas to diversify their businesses,” said Frank Terlep, owner of Summit Software Solutions Inc. “Reduced claims and increased consolidation are dictating that repairers refine their business model; this is the place to get inspired to do it,” said

surance companies…and they’re not negative on this at all,” he said. Herb Lieberman of LKQ Corporation called the system “the right thing to do,” but asked Leos about what he termed the “unintended consequence” of more cars being totaled but ending back on the road after being rebuilt to no standard. Leos pointed out that the system allows the user to adHerb Lieberman just the estimate, for example, to use alternative parts. “But what if a car totals because we’re going to fix it right? Then that’s probably where it needs to be,” Leos said. “I can’t stop the rebuilders in this industry. They’ve been around for years. They always will be. Salvage value will actually go down, not up, if that’s the case. So the insurance company might want to throw a little more money into fixing that car.” One shop owner at CIC told Leos this could reduce both the number of estimators he needs and the experience level they would need to prepare thorough estimates. Iowa shop owner Bob Jones said he had considered something similar in years past, perhaps ordering everything needed for a corner hit as kit, for example, but that insurers would balk if the unneeded items included initially were removed from the bill later in the process. Leos reiterated that he envisions an estimator taking the estimate that the system generates out to the car to omit parts or procedures not needed for that vehicle’s particular damage. Some of the groups who earlier this year called on automakers to help the industry establish OEM procedures as the industry’s “repair standards” praised Toyota for getting shops this easy access to the company’s repair procedures. “We really appreciate what you’ve done to lead the pack,” Scott Biggs of

Terlep. Jonathan Barrick, marketing manager for Global Finishing Solutions, has similar feelings. “Basically collision repair owners and managers can come to this show and find everything they need to improve their business,” he stated. “This includes the quality educational material that SCRS provides and promotes through Repairer Driven Education (RDE). Our See SCRS on SEMA, Page 42

18 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Assured Performance Network told the Toyota representatives. “You opened the door for us,” Raskind told the groups who have pushed for OEM procedures as the industry’s repair standards. “We’re now taking a bold step through it.”

New chairman offers perspective Also in Las Vegas, Mike Quinn of Caliber Collision completed his final meeting as chairman of CIC, and George Avery of State Farm offered his thoughts as the incoming chairman. Avery acknowledged that his selection to lead CIC, which was made by those who have previously chaired the conference, has not been universally popular—particularly among those discussing it on “social media”—given his role at State Farm. “The past chairs did select George Avery, not necessarily the company that he works for,” Avery said. “The George Avery that accepted was the one who started as a painter’s helper and over the years has made his way through the collision industry.” Avery’s career at State Farm has now spanned more than 30 years. He is not the first insurance company representative to chair CIC. Joe Landolfi

chaired the conference in 1995 and 1996 when he was an executive with Kemper Insurance. And Roger Wright joined AIG Insurance several months into his two years as CIC chairman in 2003 and 2004. Avery in Las Vegas reiterated his believe in the value of CIC, noting that the industry in Canada used CIC as a model for a similar organization in that country, and that the restoration industry on the property insurance side is “desperately today trying to get a CIC to get all stakeholders in the room.” “So we can’t lose sight that CIC is a place where we can all talk,” Avery said, “We all go to meetings with our own folks, our own disciplines, and that’s healthy and good. But having an opportunity to all get together is very important.” Avery said he is working on a system to give more participants at CIC “a voice” even if they don’t get up to the microphone at the meetings. He will chair his first CIC meeting on January 24–25 in Palm Springs, CA. That meeting is CIC’s biennial “planning meeting” at which the committees and broad subject matter for the coming two years are developed.

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Some Car Candy from SEMA

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www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 21

Continued from Cover

Other Countries

under PartsTrader, Crowther said, and shops found themselves having to buy from many more different suppliers (Newton-Ross said he spoke with one New Zealand shop that now has 300 suppliers rather the 30 the shop bought from previously). Some suppliers were dumping low-quality parts through the system, Crowther said. The insurer offered a $3 increase in labor rates, but Crowther said that had been the first increase in three years and did not offset the loss of parts profit. In his own $4 million business in 2006, he estimated that use of the PartsTrader system accounted for a decline in margins equal to about 4% of his sales. He cautioned that the PartsTrader system used in New Zealand is different than the one being mandated by State Farm in some U.S. markets. Insurers in New Zealand (almost all of which have now adopted the use of PartsTrader), for example, can see all prices quoted in the system there. And much to Crowther’s surprise, he said, an online survey that his magazine conducted in late 2011 found that 53% of shops (and 48% of suppliers) felt that PartsTrader had had a positive effect on their business. “I tried to find these people, but I can’t find them,” Crowther said.

Canadian shops face challenges John Norris, executive director of Collision Industry Information Assistance, a trade association in Ontario, Canada, said a major insurer in that market now requires use of an John Norris electronic parts

New Alabama Association to Kick off Advertising Campaign

Alabama repairers are forming a new collision association called ALARISE (Alabama Automotive Repair Industry Society of Excellence) and are working on a new advertising campaign (TV and radio) during December aimed at consumer awareness. The association is also finalizing the details for a meeting for its charter/founding members, and planning a membership drive. For more information contact Steve Plier at (205) 623-9307 or email info@alarise.com.

procurement system. The insurer has about 22% market share overall (for comparison, State Farm has about 18% market share in the United States, and Allstate has about 10%), but as much as 50% market share in Northwestern Ontario. Norris said the parts system is forcing some participating shops to endure delays in delivery of parts from sometimes distant suppliers because only suppliers willing to pay the insurer a fee (generally 3% of the part price) on every part sold may participate. The insurer contends the system has reduced parts returns from 15% of all parts ordered to just 10%. “The program supports our (direct repair) shops in reducing cycle time and improving the overall cost of repair,” the insurer told a Canadian trade magazine. Norris is unconvinced, however. He cited a shop in Sault Ste Marie, Ontario, that used to walk across the street to pick up parts from a Honda dealer but now must wait three to five days for parts to be trucked from a Honda dealer nearly 400 miles away. “He cannot go across the road and buy a part even if at the same price,” Norris said. “If the other supplier that is working with the insurer has that part, he must buy it from that dealer.” Norris said a shop in Thunder Bay, Ontario, has had to buy used parts from a supplier in Welland, Ontario, 933 miles away. Hamilton, Ontario, has a population of about half a million people, but shops there—Norris said—must order General Motors parts out of Niagara Falls, Ontario, which is 43 miles away; the delivery trucks pass 11 other GM dealers while bringing the parts to Hamilton shops.

Attendees share their views A brief question-and-answer session

BASF and Finishmaster Win New Trial in Paint Lawsuit

On Aug. 30, a federal jury awarded Custom Car Crafters of Austin, TX, $1.5 million from BASF and $750,000 from FinishMaster. Custom Car Crafter’s was also awarded $1.5 million in compensatory damages. However on Nov. 5 the court reversed itself and agreed with BASF and FinishMaster that the jury’s verdict was inconsistent. It has ordered a new trial, vacating the misrepresentation and fraud claims of Custom Car Crafters.

22 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

following the panel discussion included a variety of comments from attendees. Charles Lukens, co-founder of APU Solutions, a web-based parts procurement system company recently acquired by Solera (parent company of Audatex), said he felt the panelists lumped all parts systems together, unfairly indicating they all have a negative impact on shops. “Not in any scenario are we increasing cycle time and decreasing margins, so I think it’s an unfair statement to say all parts procurement solutions are doing that,” Lukens said. Bobby Price of Prices Collision Centers, which operates five shops in Tennessee, said he is currently on State Farm’s “Select Service” program but “expects not to be” if the PartsTrader mandate comes to his market. “I don’t need State Farm telling me how to run my business,” Price said. “I believe that that’s what this is about.” Price said he is working to build his company’s brand directly to consumers through increased marketing and advertising. Newton-Ross cautioned that shops in the United States should view the issue as something larger than just

State Farm and PartsTrader. “It’s every insurer,” he said. “Because if State Farm is successful with what they do, do you think the other insurers are going to sit there and let them have an edge in the marketplace? No, they’re going to have their own deal with PartsTrader or someone else.”

SEMA Attracts 60,000 Buyers SEMA organizers acknowledged that attendance at this year’s event was curtailed somewhat by Hurricane Sandy-related impacts on the East Coast. Still, SEMA CEO Chris Kersting said as the event was ending that close to 60,000 “buyers” attended SEMA, with about an equal number of others at the event, including exhibitors representing more than 2,250 companies, returning the show to about pre-recession levels. The “collision repair and refinishing” section of the show, now in its third year, featured about 160 companies, with many of the paint manufacturers and equipment vendors that sell to the industry located elsewhere on the massive show floor. SEMA will return to Las Vegas next year on November 5-8.

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www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 25

AUTOMAKER, OEM, AND RECALL Autobody News

Toyota to Recall 2+ Million Vehicles Worldwide for Steering, Water Pump Problems Toyota Motor Corp. said it will recall 2.77 million vehicles worldwide, including some of its popular Prius hybrid cars, for steering and water pump problems. It is the carmaker’s second multimillion-car recall in a little more than a month. Toyota is recalling the vehicles to fix a steering component that could be damaged by wear and tear, and 630,000 gasoline-electric hybrid vehicles to replace water pumps, company spokesman Joichi Tachikawa said. Many vehicles are targeted by both recalls, resulting in overlap. The recall affects 496,000 vehicles in Europe, 670,000 vehicles in the United States and 1.5 million vehicles in Japan. The defects, which Toyota said had caused no accidents and could each be fixed in an hour or so, could cost hundreds of millions of dollars to repair, according Deutsche Securities autos analyst Kurt Sanger. While the recall is widespread, the flaws are less serious and any damage to Toyota’s reputation would likely be limited compared with massive recalls in 2009 to 2011 when unintended acceleration problems in Toyota vehicles were the suspected cause of fatal crashes in the United States.

Jaguar Recall for XF Model

Jaguar is recalling certain model year 2010-2012 XF vehicles equipped with a 5.0L gasoline engine. The affected vehicles may have a fuel tank fuel outlet flange that may crack. The cracked flange may result in fuel leakage onto the ground. This leaking fuel, in the presence of an ignition source, may result in a vehicle fire. Jaguar will notify owners, and dealers will replace the affected fuel tank fuel outlet flanges, free of charge. The recall is expected to begin on, or before, December 7, 2012. Owners may contact Jaguar at 1-800-452-4827.

MICHIGAN • OHIO • INDIANA • ILLINOIS • WISCONSIN

Mack Trucks Get Recalled

Mack Trucks is recalling certain model year 2008-2009 GU, LEU, and MRU trucks, manufactured from Dec. 12, 2007, through May 8, 2008 and equipped with a certain focal mounted retarder control box. The control box may lose its electrical ground. If the control box loses ground, it may have localized overheating. This could lead to a vehicle fire. All affected vehicles, 260, were sold to one customer that has already been notified. An official owner notification letter was mailed to the one customer in early November 2012. Mack will replace the suspect control box on the affected vehicles, free of charge. Owners may contact Mack Trucks at 1-800-866-1177.

BMW Recalling 7-Series Cars Over Software Glitch

BMW AG is recalling 7,485 2005-07 7Series vehicles that may have a software glitch that may allow the doors to inadvertently open when they appear closed. BMW says “the door may unexpectedly open due to road or driving conditions or occupant contact with the door. The sudden opening may result in occupant ejection or increase the risk of injury in the event of a crash.” The German automaker said the recall covers vehicles equipped with both Comfort Access and Soft Close Automatic options, and built from August 2004 through September 2007. The automaker says no crashes or injuries have been reported related to the condition. The recall is taking place five years after BMW recalled vehicles in Japan and five years after the National Highway Traffic Safety Administration first asked BMW about the issue. Even though BMW didn’t think it was a safety issue, it ultimately recalled the vehicles in Japan in September 2007. BMW made a software update as part of production change in 2007 to address the issue. In February, BMW agreed pay a $3 million penalty for failing to recall vehicles in a timely fashion.

26 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Chrysler Recalls Jeeps for Airbag Deployment Concern

Chrysler is recalling certain model year 2002 and 2003 Jeep Liberty vehicles manufactured Jan. 9, 2001, through March 28, 2003, and 2002 through 2004 Jeep Grand Cherokee vehicles manufactured Feb. 13, 2001, through May 23, 2003. A component in the air bag control module may fail causing the front airbags, side curtain airbags, and/or seatbelt pretensioners to deploy inadvertently while the vehicle is being operated. The recall covers Jeep Grand Cherokee and Liberty SUVs for a part in airbag control modules that may fail, according to documents filed with the U.S. National Highway Traffic Safety Administration and Chrysler. A failure of that module could cause the front airbags or side curtain airbags to deploy inadvertently while the SUVs are being operated, increasing the risk of injury or accident, according to NHTSA documents. Of the vehicles recalled, 744,822 were in the United States; 49,430 in Canada; 21,828 in Mexico; and 103,465 outside North America, Chrysler said.

GM Investing $450 Million in Argentina Facility

General Motors Co. said recently it will invest $450 million to build an all-new global Chevy vehicle at its Rosario Automotive Complex in Argentina. The Detroit-based automaker said it would make the investment between 2013 and 2015. “We are pleased to be making this investment in Argentina, which remains a very important market for us,” GM Chairman and CEO Dan Akerson said in a statement. “We have a long, proud history here dating to 1925 and our latest investment is certainly good news for our GM Argentina employees, our extensive dealer and supplier network and the local economy.” The Rosario facility produced more than 136,000 vehicles in 2011.

www.autobodynews.com

December 2012

GM Unveils Faster, Fuel Efficient Engine for Corvette

General Motors Co. recently debuted its faster, more fuel-efficient small block, LT1 6.2-liter V-8 engine, which will power the new 2014 Chevrolet Corvette. In what GM is calling the most significant redesign in its history, the fifth-generation small block for the Corvette will include a direct-injection fuel system, continuously variable valve timing and active fuel management, or cylinder deactivation, all of which will help give owners more miles out of a gallon of gas. The biggest fuel saver for the Corvette is active fuel management, which GM has said can boost fuel economy up to 12% in cars. It saves fuel by deactivating four of the eight cylinders in light load situations, such as coasting on an exit ramp or cruising on the highway.

VW to Build New SUV in U.S.

VW Chief Executive Martin Winterkorn said the company expects to build an all-new SUV in the U.S. designed for American customers after the success of the new Passat sedan. A final decision is expected next year. Strong demand for the Passat, also designed for Americans, has transformed the U.S. into a growth hub for VW, which faces rough conditions in Europe. The company recently said its profit margins narrowed in the third quarter as pricing and demand for cars deteriorated. While operating profits were down for the first time this year, its results exceeded expectations. “Many of us wondered if VW’s long period of outmaneuvering and outperforming the horrible European market was going to come to an end,” said analyst Max Warburton at Bernstein Research. “Yet third-quarter results show little evidence of such pressure.” For the year to date, VW’s operating profit is up 2% at 9 billion euros, or $11.7 billion, and VW retained its forecast for slightly higher sales revenue and flat earnings this year.

Many NJ and NY Shops Still Closed in Aftermath of Sandy

by Chasidy Rae Sisk

When Hurricane Sandy struck the Caribbean and Eastern United States in late October, she left behind $52.4 billion in damage and a couple of hundred fatalities. Sandy touched land in Atlantic City, NJ, and wrought havoc on the Jersey shoreline and throughout New York City, causing severe flooding and a loss of electricity. With such a vast amount of damage, collision shops in the area affected have taken a huge hit. Ed Kizenberger, Executive Director of LIABRA (Long Island Auto Body Repairmen’s Association), notes that Hurricane Sandy was “one of the most catastrophic, weather-related events that the collision industry has had to endure.” He notes that many shops in the NYC area are still closed, due not only to flooding and a lack of electricity, but also because of the damage sustained to equipment, computers, etc. The largest challenge that owners currently face is the fact that many live near their shops, so they are working on restorations for both their businesses and their homes. In addition to facing up to six feet of water, shops also have to contend with the partially or fully repaired vehi-

cles in their facilities that were flooded during the hurricane. Most of the vehicles that sustained damage from the storm have been declared total losses, but there are some more fortunate whose vehicles were damaged by felled trees and debris, and undamaged shops are starting to process these repairs, though there is a devastating backlog due to the sheer volume of damaged vehicles. Though Sandy hit hardest in NJ and NY, her effects were also felt farther north. While Al Brodeur’s Auto Body, Inc. of Marlborough, MA, never lost power, Molly Brodeur notes, “We have definitely noticed an uptick in business since the storm—a lot of damaged panels from debris, but we haven’t had any issues with parts or receiving products in a timely manner since the storm.” According to Jeff McDowell, President of AASP/NJ, many shops in NJ have suffered severe damage as a result of the storm. All low-lying areas were hammered, and many continue to be closed due to lack of power even now, three weeks later. Recovery efforts are still ongoing. McDowell notes that tens of thousands of vehicles were affected by the storm, causing an extreme back-up in repairs, especially

since so many shops are currently out of operation. Many of these vehicles have been declared total losses and have been moved to parking lots pending processing while recovery efforts are being made. As a result of such a large quantity of lost vehicles, rental cars are in an extreme shortage, and many people are without transportation at the moment since importing rentals from nearby states still is not enough to maintain supply for the demand of rentals. Despite the many challenges caused by Hurricane Sandy, NJ shops are determined to rebuild. Many AASP/ NJ members’ shops managed to escape damage from the storm, and these owners have volunteered their services to help their peers in the industry. McDowell states, “That’s one thing you can always count on. As much as we compete, we are all part of the same brotherhood. Sometimes the worst brings out the best in us. We have seen a lot of that since the storm, and I am proud of those who have stepped up.” Anyone interested in helping the NJ victims can send donations to Hurricane Sandy New Jersey Relief Fund, P. O. Box 95, Mendham, NJ 079450095. Continued from Cover

Sandy Damages

it initially predicted, largely a result of Sandy hitting the most densely populated part of the country. The firm doubled its previous estimate for the total bill and now says Sandy may have caused between $30 billion and $50 billion in economic losses, including property damage, lost business and extra living expenses. The cost to insurance companies could run as low as $10 billion and as high as $20 billion. The new numbers square with an earlier estimate from IHS Global Insight. IHS said Sandy could cause about $20 billion in property damages and between $10 billion and $30 billion in lost business. The firm pointed to two reasons that Sandy will leave a bigger bill than it first thought. Power outages are more widespread than in a typical Category 1 storm, Eqecat said. Sandy knocked out electricity for more homes and businesses than any other storm in history, according to the Department of Energy. The lack of subway service in New

York City and blocked roadways will also push the total cost higher, Eqecat said. Before the storm hit, Eqecat had estimated that total economic losses from Sandy could range as high as $20 billion and that losses to insurance companies could reach $10 billion. Payouts for insurance claims are typically a fraction of the overall cost to the economy. If the damages hit $50 billion, it would make Sandy the second-costliest U.S. storm after Katrina in 2005. Katrina’s overall costs were $108 billion. Taking inflation into account, that works out to $128 billion in today’s dollars. Even after adjusting for inflation, the high end of Eqecat’s damage estimates for Sandy would be higher than those caused by previous major storms. Andrew, which struck in 1992, cost $44 billion in today’s dollars, and the Ike storm of 2008 cost $32 billion. Estimates by a California-based risk modeling firm have placed insurer losses from Hurricane Sandy to as high as $25 billion. Risk Management Solutions projected that insurers may face losses between $20 billion and $25 billion. Initial estimates on property and casualty claims from the hurricane by Fitch Ratings were roughly $5 billion, similar to that of last year’s Hurricane Irene. RMS said that it has two reconnaissance teams out surveying the damage. The firm has offices in Hoboken, N.J., where floodwaters stranded thousands of people. Eqecat’s estimates only cover private losses, not costs covered by the government through the National Flood Insurance Program administered by the Federal Emergency Management Agency. Max Mayfield, the hurricane center director during Katrina, said the costs to FEMA can be $2 to $2.5 for every dollar of losses covered by private insurance. A FEMA official said the government-backed flood insurance program expects to take a $6 billion to $12 billion hit from Hurricane Sandy, making it very likely the heavily indebted program will soon turn to Congress to raise its borrowing authority. Ed Connor, deputy associate administrator at FEMA’s Federal Insurance and Mitigation Administration, told the Treasury Department’s Federal Advisory Committee on Insurance that he estimates that Sandy would inundate the program with about 143,000 claims. Flood claims from Hurricane See Sandy Damages, Page 47

www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 27

SEMA Awards Best New Cutting-Edge Automotive Products The Specialty Equipment Market Association announced the winners of the New Products Showcase Awards held at the 2012 SEMA Show on Oct. 30. The event recognized the most cutting-edge automotive products on the market or about to hit the market. This year, more than 2,000 new products were submitted for consideration. Criteria that ranked high on the judges’ selection for the New Product Showcase Awards included superiority of innovation, technical achievement, quality and workmanship, consumer appeal and marketability. The 2012 New Product Award Winners are:

Collision Repair & Refinish Product Winner: Matrix Wand 3-D Blueprinting System, Matrix Wand 3-D Blueprinting and Discovery System Runner Up: Goliath Carts, D1-A ‘Mobile Detailer’ Detail Cart Runner Up: PRO-TECH-IT, PROTECH-IT Reusable Covers

The Matrix Wand 3-D Blueprinting and Discovery System wand has cameras on both ends, and when passed in front of a damaged car, identifies damaged and ‘trusted’ areas. It allows for three-dimensional XYZ measurements, while the repair analysis software allows comparison of any two XYZ points. The D1-A “Mobile Detailer” from Goliath Carts utilizes the standard Goliath technology of a “closed system” that provides security and control of all tools and materials required by the detail and car wash departments of a collision repair shop. The cart is designed to minimized contaminants on the paper rolls and detailing supplies. Power tools can be connected on a mounted power strip. Pro-Tech-It was also granted a runner up spot for the Collision Repair and Refinish category for its magnetic car covers. The durable, reusable covers are designed to replace disposable car covers, reducing both costs and waste. SEMA recognizes a wide array of products, many of which aren’t confined to the collision repair industry.

Engineered New Product Winner: Mastershift, Magnum Paddle and Sequential Type Shifter Runner Up: Detroit Speed, 1964.51970 Mustang Aluma-Frame Runner Up: MSD Performance, MSD

Atomic LSTM, EFI for LS Engines

Exterior Accessory Product Winner: Husky Liners, Husky® 5th Wheel Tailgate w/ Backup Camera Mount Runner Up: Rampage Products LLC, Self Contained Electric mirror and power supply Runner Up: Hornblasters Inc., HornBlasters Jackass 228VX Interior Accessory Product Winner: Edge Products/Superchips, TrailDash Runner Up: Xtreme Outfitters, Cargo Assault Mount Runner Up: U-Ace Inc./Formosa Saint Jose Corp., 3D MAXDURA FLOOR LINER

Merchandising Display Winner: Extang/Truxedo/UnderCover, UnderCover Flex Runner Up: AMP Research, PowerStep POP Runner Up: Extang/Truxedo/UnderCover, UnderCover SwingCase

Mobile Electronics Product Winner: INTRAPHEX, Smartphone Integration Device (S.I.D.) Runner Up: Auto-i (Canada) Corp., Special OE Fit Camera for Commercial Van Runner Up: Brandmotion, Loftlite LED Interior Lighting Kit

Off-Road/4-Wheel Drive Product Winner: BedRug Inc., BedRug and BedTred for Jeep® Runner Up: Fuel-Tool, Fuel-Tool PT500 Fuel Transfer System Runner Up: Hi-Lift Jack Co., Hi-Lift Off-Road Base

Packaging Display Winner: Edge Products/Superchips, TrailDash Runner Up: MSD Performance, MSD Atomic EFITM, Master Kit Packaging Runner Up: Solution Finish Trim Restorer, Solution Finish, Rich Evans DIY Kit

Performance-Racing Product Winner: ATI Performance Products, ATI Cast Aluminum T-400 SuperCase Runner Up: Lingenfelter Performance Engineering, CTAP-001 Clutch and Throttle Activation Position Switch Runner Up: Zeitronix Inc., Ethanol Content Analyzer with Flow Through Sensor

28 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Performance-Street Product Winner: COMP Performance Group, COMP Cams 4-Pattern Camshafts Runner Up: ProCharger, ProCharger i-1® supercharger Runner Up: COMP Performance Group, Inglese Sidedraft EFI System

Powersports Product Winner: K&N Engineering Inc., K&N Street Metal Intake System Runner Up: Warn Industries Inc., WARN Vantage 3000-S Powersports Winch Runner Up: AMSOIL Inc., AMSOIL DOMINATOR Octane Boost

Street Rod/Custom Car Product Winner: MSD Performance, MSD Atomic LSTM, EFI for LS Engines Runner Up: Powertrain Control Solutions (PCS), 6 SPEED VALVE BODY Runner Up: Circle Racing Wheels Inc., ORIGINAL EQUIPMENT STYLE BILLET WHEEL

Tire and Related Product Winner: Pirelli Tire North America, Pirelli Cinturato P7 All-Season Runner Up: Mickey Thompson Per-

formance Tires & Wheels, ET Street Radial Pro Runner Up: Mickey Thompson Performance Tires & Wheels, Street Comp

Tools & Equipment Product Winner: Miller Electric Manufacturing Co., MultimaticTM 200 TIG/MIG/Stick Welder Runner Up: Del City, Brake Line Wrench Kits Runner Up: Wray Products, The Stand Hand Plus

Van/Pickup/Sport-Utility Product Winner: CURT Manufacturing LLC, Easy Mount Electrical Brackets Runner Up: AnzoUSA, 2007 and up Chevrolet Silverado/GMC Sierra 5 Function LED Tailgate Spoiler Runner Up: Elephant Stand, Elephant Stand Swivel Hitch

Wheel and Related Product Winner:Hotchkis Sport Suspension, Hotchkis Performance Wheels Model - H Sport Runner Up:Concept One/Klutch Wheels, Concept One Executive CSL5.5 Runner Up:Enkei Wheels, COMPE

www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 29

Education Foundation Awards $50,000 Makeover Grants at SEMA by Melanie Anderson

The Collision Repair Education Foundation announced the two winning schools who will each receive a $50,000 Ultimate Collision Education Makeover grant. The winners were surprised at an Oct. 30 reception held at the Las Vegas Hotel during SEMA. This year, for the first time, both a secondary and a post-secondary school received a $50,000 makeover grant. The two winning schools are

Nichols Career Center in Jefferson City, MO, (a secondary school) and Manhattan Area Technical College located in Manhattan, KS. The Education Foundation awarded two grants so secondary and post-secondary schools didn’t have to compete with each other. Seventy schools from 31 states applied for the 2012 Makeover grant. Over the next several months, the Education Foundation will be working to fulfill the two schools’ collision programs $50,000 wish lists of needed tools, equipment and supplies. Although he was unable to attend the reception due to Superstorm Sandy, Collision Repair Education Foundation Executive Director Clark Plucinski later noted, “It was great bringing the collision industry together during our industry reception to not only highlight the support the organization has provided to collision school programs through the generosity of our industry donors, but also to surprise both of these instructors that their collision programs will have their $50,000 wish lists fulfilled. We look forward to working together with not only the two winning schools but also focusing support on all of the ap-

plicant schools, as they took the time and effort to let us know their specific collision needs. Congratulations again to both Nichols Career Center and Manhattan Area Technical College!” The two instructors attending the late-night Las Vegas reception were awestruck when they learned they had won the makeover grants for their schools. The $50,000 for tools and equipment means their programs, barely surviving on miniscule budgets, can now offer the newest and latest in industry technology for their students. Dennis Bruemmer, instructor at Nichols Career Center Automotive Collision Technology in Jefferson City, MO, said he was “totally overwhelmed” when the announcement was made that his school was one of the winners. “Before being hired as their instructor in 1998, I had served on the Nichols Career Center Automotive Collision Advisory Board,” Bruemmer said. “My personal goal has always been to improve the quality of education for the students in this program. Winning this grant will help tremendously in my quest to achieve this goal. I am extremely grateful to those involved for choosing my program to receive this award.” The Automotive Collision Technology program at Nichols Career Center has been in existence for 36 years, from its inception during the 1976-1977 school year. “I am proud to say I was a student in that first class at Nichols Career Center,” said Bruemmer. “My instructor at that time was Fred Bremmerkamp, who now runs a successful collision repair business. He, as well as many other area collision repair facilities, have participated in internships and shop tours for our students. These internships have led to full-time positions for some of our students, as well as encouraged others to continue their education in collision repair after they have graduated from our program.” The collision repair program at Nichols currently has 27 students. The Manhattan Area Technical College in Kansas has offered their automotive program to students since the 1970s. Typically, the program has 1820 students, but this year, only nine are enrolled. With a budget of only $8,600, instructor Linn Schroll can’t buy much in the way of materials, tools or equipment. Due to the constrained budget, students get hit with lab and material

30 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

fees. He plans to spend some of the Makeover grant money to beef up his program and attract more students. “Winning the Ultimate Makeover grant from the Collision Repair Education Foundation was one of the biggest surprises of my life,” said Schroll. “My wife and I were standing at the back of

Instructors Dennis Bruemmer, left, and Linn Schroll, right, accepted $50,000 makeover grants from the Collision Repair Education Foundation for their schools

the room because I don’t win these kind of things, so why move up in the room? When they started reading part of the application letter for the postsecondary winner, I looked at my wife and said, ‘Holy cow, that is my writing, I think I just won.’ I am not really sure how I made it to the stage.”

Even though he’s had time to digest the news, Schroll said his head is “still spinning. I still can’t believe that we won but I am excited about what it will mean to this program. I have put many hours into this program over the last six years and it feels really good to be recognized for my efforts on a national level. I am also very pleased that so many things that I have wanted for the program will be completed because of this Makeover grant. I think most teachers who are committed to improving a program donate so much of their own time and money to help make a program better, but with limited resources, there is only so much you can do out of your own pocket. “By winning the Makeover grant, I will be able to accomplish in a short time what would have taken years to accomplish, if at all. We are being contacted by vendors who are donating materials and the Foundation is making contact with a lot of people to get things moving. I can’t thank the selection committee and the Foundation enough for what this will mean to the school, students and myself,” Schroll said. Original BMW Parts

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Chess Teaches How to Make More Money Without Spending $$$$ by Melanie Anderson

I-CAR instructor, Autobody News columnist, and shop consultant Toby Chess, AAM, entertained and taught a small crowd at SEMA about how to make more and spend less within the normal daily operations of a collision repair shop. In the industry since 1969, Chess’ background includes wrecking, restoration and collision. Falling asleep in Chess’ class wasn’t an option as he kept the presentation lively, heckling those attendees who were sitting in the back of the room and pulling out the ‘ladder of success’ from his attaché bag to

A Few Toby Tips:

kick off the talk. Make More Money Without Spending an Arm and a Leg focused on how businesses can cultivate positive changes without spending a huge amount that many shops can’t justify in the current economy. Chess presented simple, straightforward tips to help shop owners and managers streamline operations and increase profits by reducing waste and expenses. “For collision repair businesses, there is a ton of opportunity to improve your business with very little investment if you know where to look,” said Chess. “This session offers a number of proven ideas that will decrease cycle time, reduce comebacks

• Belong to an association, such as SCRS, to become more powerful as a group. • All owners and managers should be asking ‘why’ if something isn't right. • Write your goals down. If it's not written down, it's just a dream.

and increase quality; and the investment costs will be under $500. Forget about learning fancy buzzwords associated with process improvement. This session will give time-tested examples of ways to improve your business and make more money for very little, if any, up front expense.” And with that promise, Chess was off to the races, touching on several topics including time wasters, setting goals and developing SOPs. To set the tone, Chess re-defined the industry by saying, “You do not fix or repair cars. You re-manufacture cars.” Chess got the audience involved by asking the question, “How much is spent on a supplement?” Most of the

• It takes 30 days to develop a new habit. • Don't put a car up on the frame racks without having all the parts there. • A waste of time is the devotion to useless activity. • Take advantage of training and seminars by vendors. • Organize your shop. Clutter in a shop is a waste of energy. • List the items needed in the tear down stall.

32 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

shop owners and managers thought the cost of adding a supplement to an estimate was $40 or $50. Some said $100. One brave soul said $300 and Chess zeroed in on him wanting a firm

Toby Chess always gets the audience to participate. In this scenario, Chess simulates a car needing a push.

commitment to his answer and the gentleman didn’t waver. Chess then turned the classroom into a spontaneous live production, getting audience members to role play a scenario where a supplement is needed. Turns out, according to Chess and his theater demonstration, that chasing down a See Make More Money, Page 47

Continued from Page 17

Marketing Can Help

claims process. Your job is to help them get through it. It’s important to do what you can to get your customers to remember you. Create a story so your customers remember you. Build a relationship.

Steve Trapp and Robert Rick reprise their NACE talk

One way to do that is to always thank your customers. Don’t send an email—that’s too impersonal and they get deleted. A mailed handwritten note is best. What should your marketing budget be? For new shops just starting out, spending 10% of your budget on marketing is best. For

shops that are five years or less into the business and growing, spending 5% of your budget on marketing is good. And for shops that are more mature and have been in business longer than five years, only 3% of your budget is needed for marketing. Social media is a whole other subject, but Trapp and Rick briefly spoke on website presence. Your website is your virtual lobby that is open 24 hours a day. It manages your virtual branding. Basically, a website should provide directions, answer frequently asked questions, provide status updates and include an amateur video to boost website content and interest. The website content should be relevant and current. Don’t let it become stale. Remove outdated information.

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• One marketing tool that really stands out is a lighted exterior sign. “A new standard sign does not stand out after a week. It becomes a tree,” Trapp said. Instead, he suggests shops invest in a lighted sign that includes the time and temperature because it becomes a landmark in your town. “As you drive around your town, do you know what businesses display the time and temperature?” he asked. Everyone in the room raised their hand. • If you have the customer’s attention and they decide to call you, do not waste the opportunity with a mundane greeting and impersonal phone interaction. This is your next customer, so treat them like your mother, Rick said. • To brand your business, make sure people see a sign outside of the building and another sign the first thing they see when they walk in. Every member of the team also needs to be wearing a name badge. Trapp suggests shops invest in interior foam logo signs and exterior fabric banner signs to help support sales and shop branding. • Posters showing photos of a step-by-step repair process help customers understand how much work is involved in their repair. Use the posters as a visual when talking to your customers about their repair. Trapp said DuPont will

customize these posters for their customers and other paint companies offer similar posters. • Don’t use lingo and acronyms that customers won’t understand. • Giving customers a shop tour will help close the sale. • Customers, especially younger people, love text messages for status and updates. • Use an iPad and hand it to your customer for the CSI, so you know it’s done immediately. When you get a negative remark on the CSI, call the customer and try to resolve the problem. • Develop a plan to stay in touch with customers for five years. Ideas include sending periodic enewsletters, offering special coupons for seasonal services, such as spring detail or headlight aiming, offering a 24-month paint protection plan, or mailing out letters a year or two after service offering lifetime warranty or a coupon. Mail a lottery ticket and ask for a referral. • Create good will and public relations opportunities by holding community events at your location. Community events can include teen driver nights, ladies’ nights, vehicle extractions and participating in the NABC Recycled Rides program. • And the #1 marketing tool body shops should use, Trapp said, is to have solid customer service and using customer relationship management to maintain a relationship.

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www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 33

Guilty of Junk Thinking? ‘How to Think Better’ at SEMA 2012 by Melanie Anderson

Two powerhouse thinkers thought they could change the way we think and so presented “Change the Way You Think at a CORE Level” at SEMA 2012 in Las Vegas. The purpose of the presentation was to provide a clear understanding of what junk thinking is, show evidence of existence of junk thinking in the market, and provide a clear direction to depart from the junk Byron Bissell thinking environment. According to speakers Bill Park and Dr. Byron Bissell, junk thinking is responsible for at least 80% of the problems in one’s business. “The lack of quality thinking has led to enormous disasters and disappointments. And it’s not only thinking through the solutions to the gnarly problems. More often than not, it’s the painful reality you’re working on the wrong problems,” said Dr. Bissell.

Dr. Bissell is a retired associate professor of business from the University of Arizona and is currently a blogger for mPowerU, a website dedicated to providing insight and information to the auto body collision repair industry. His background includes working as a manager, an educator, scholar, academic administrator, behavioral consultant, psychiatric social worker and child welfare caseworker. He holds a PhD in business and a Master’s degree in psychiatric social work and in public administration. Bill Park currently trains and consults small to medium sized businesses in the automotive collision repair industry. His passion is to “Add value. Period.” Bill also has founded and operated multiple businesses over the years, ranging from small, 2-3 person entities, to a medium sized 100employee corporation. Bill has over 20 years experience in all facets of business development, including, but not limited to: green-field and startups, process development, venture capital, financial literacy, acquisitions and disposition. He also holds an

MBA and previously owned four collision repair locations in Arizona that were sold three years ago to Gerber Collision & Glass. “The purpose of this presentation is to identify junk thinking, act on it, change it, and improve business thinking,” said Park. In short, junk Bill Park (l) and Dr. Byron Bissell (r) encouraged SEMA attendees to thinking is “think- stop junk thinking and to think better ing that leads to a train wreck.” sell said. “Good thinking takes effort, Junk thinking is a major reason discipline, and learning how to have why businesses fail. The top 5 reasons good thinking. Good thinking doesn’t a business fails are: come naturally. Start the journey to 1) lack of experience good thinking first by admitting to en2) insufficient capital gaging in junk thinking.” 3) poor location An example of junk thinking, 4) poor inventory management Park said, is that employers will often 5) over-investment in fixed assets hire workers based on their work “The commonality here is junk skills, which is only 20% of their thinking,” Park said. total skills—the other 80% being Junk thinking happens because “soft skills”—such as how they get it’s easier. “Thinking is hard,” Dr. Bis- along with people, their work ethic,

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attitude, presentation. Basic job description skills can be taught, especially for those employers who want their people to follow particular standards. Other examples of junk thinking include crisis management, wishful thinking, biased thinking, and denial. Dr. Bissell described how our brain thinks. Our five senses capture data from an external environment and our brain interprets the data and processes it. The brain then identifies what the information means to us and selects the behavior we will engage. In a nutshell, Bissell and Park said there are two types of thinking. The first is called System 1 and is the type of thinking we do lightning fast, that is automatic and effortless. For example, we automatically stop at a red light. We don’t have to think about it. System 2 thinking is slower, methodical, deliberate, controlled and ruled-governed. It uses up a lot of energy and it’s a lot of work. Most of us avoid that type of thinking. To visualize System 2 thinking, think of a turtle working on a Rubik’s Cube. When an event happens, we take about a nano-second to compartmentalize it. System 1 thinking is, do we

pay attention to it, ignore it, deal with it now or later? If it’s later, we move it into System 2, where we give it a great deal of thought later. In System 2 thinking, we pull information from memories and beliefs. “The reality is, knowledge is based on beliefs,” said Dr. Bissell. System 2 thinking comes into play when we ask ourselves, “Is what I know enough?” If you say yes, then you take action. If you tell yourself no (which we rarely do because it takes strength to admit we don’t know enough), we move on to System 2 thinking and seek more information. Junk thinking is a result of System 1 thinking when we should be using System 2 thinking. “The trick is to know when to activate System 2 thinking,” said Bissell. “If the costbenefit ratio of time and energy to use System 2 thinking is positive, then engage it.” Success in the auto repair industry starts with good System 2 thinking, and tuning up your CORE, Bissell said. CORE thinking is an acronym for: Cognition (the way you think) Organization (how information is stored and retrieved)

Reference (based on your identity, who you think you are) Energy (mental)

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To think better, prepare yourself to make thinking changes. Change the way you think; change what you believe; change your perception of who you are; change how you direct your mental energy. “We seem to have a prime directive inside all of us that says ‘we shall not change,’” Bissell said. “In order to change, you have to be willing.”

“What we can do better from a business perspective is better understand the real business we are in, which, by the way, is not fixing cars,”said Park. “People feel stuck, they don’t have the control they want. A business has to be under constant experimentation and testing based on sound thinking principles.” Park asked the audience to speak up and admit to a major mistake they had made based on junk thinking. A shop owner from Hawaii said he made a million dollar expansion to his business without utilizing the knowledge and expertise of others, particularly vendors. The owner didn’t design the expansion properly and ended up changing the shop layout, which cost him time and money. Assumptions and emotions can get in the way of good thinking. We think we know best. Bissell cautioned that emotion is an important part of decision making but needs to be controlled, not eliminated. Dr. Bissell pointed out that we need to think about what could go wrong. We need to do due diligence. “You have to be willing to hear what you don’t want to hear,” he said.

www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 35

Matrix Wand Captures New Collision Product Award at SEMA by Ed Attanasio

The Specialty Equipment Market Association (SEMA) announced its New Products Showcase Awards on the eve of its 2012 show to recognize the world’s most cutting-edge automotive products in the collision industry today. With more than 2,000 new products submitted for consideration, only a handful received accolades and the trophies that accompany them. It’s the Oscar, the Emmy and the Lombardi Trophy of collision combined and surely one of the most coveted awards out there, because it comes with the SEMA stamp of approval and all of the benefits associated with it. First place in the Collision Repair & Refinish Product division went to the Matrix Wand 3-D Blueprinting and Discovery System, manufactured by Matrix Electronic Measuring, Inc., a company that was founded in 2003 and is located in Salina, KS. Judged on its superiority of innovation, technical achievement, quality and workmanship, consumer appeal and marketability, the Matrix Wand was launched in April 2012 and received positive reviews almost immediately. This handheld, electronic measuring system accurately and precisely measures collision damage so that a body shop can repair a vehicle back to factory specifications. Consisting of the wand, cameras, computer, and software, the Matrix Wand collects measurements and data utilizing stereoscopic photo documentation and archives all of the information electronically for retrieval and subsequent analysis. Three feet long and weighing about 12 pounds, the device is extremely precise and easy to operate. By passing it over the vehicle like a magician’s imaging wand, technicians can complete the entire process in 15 minutes or less. Jan Srack is the co-founder and president of Matrix Electronic Measuring Inc. and a 25-year veteran of the collision industry. She’s obviously pleased about winning the award and has great plans for the product’s potentially bright future. “We’ve got the Matrix Wand currently in body shops from Hawaii to Connecticut and soon it will be available internationally. This is an exciting time for us because the industry has embraced the Wand and without that, we wouldn’t be where we are right now. The fact is

that so many people have supported and assisted us in our success. Without them, we wouldn’t be where we are today and I sincerely mean that. It takes so many levels within this industry to make a product successful. ”

and acceptance within the industry? operation, Srack said. “Our customers are justifying the “The documentation in 3-D is instrumental,” Srack explained. “It’s a win- cost after just six months, in most win-win all the way around, because cases. How often can you buy a piece of equipment and say that you’ll refrom the body shop owner to the estimator to the technician and onto the coup all your money within half a customer and the insurance year? One of the advantages of innovative technology, even in a poor econcompany, this product benefits all of them and makes omy, is that people will still invest in cutting-edge technology.” their lives easier. The MaHow is the Matrix Wand different trix Wand decreases the friction between the shops than laser measuring systems out there and the insurers, and takes on the market? “Most lasers are twodimensional, but our imaging is threethe drama out of the blueprinting and measuring dimensional and you have access to the information much easier, within 15 process, because it provides accurate information minutes or less with the Matrix Wand. that every party involved Without our product, it takes 1.5 hours can rely on. That’s an ideal on average to do the job, and you’re situation and how often still guessing because you don’t have does it really happen in any three dimensions to refer to. By discovering the structural damage upRon Chiles, director of sales and marketing at Matrix Electronic industry, let alone collision Measuring, Inc. poses with the Matrix Wand system and the front, body shops can quantify it and repair?” trophy for first place in the Collision Repair & Refinish Product triage the car throughout the shop, Costing approxidivision from SEMA. mately $31,000 each—but meaning that cycle times are greatly SEMA’s award kicked off a great with an affordable lease option, the improved. For the first time, the insurshow for the company and Srack complete Matrix Wand system is a subance companies have 3-D validation of hopes to ride that momentum into stantial investment for any shop, but by the damage on their customers’ vehi2013, she said. “To share our victory paying for itself within a reasonable pecles. This is not a CAD drawing or an with our team was really wonderful. riod of time, it makes sense for any size See Matrix Wand, Page 45 We always knew there was a need for effective electronic measuring in this Genuine Nissan and Infiniti OEM industry, and the Wand provides it. Wholesale Parts are superbly crafted to We’ve been developing this product strict quality standards. The following since 2008, so it hasn’t happened dealers proudly stock genuine parts. Call your local distributor today! overnight. We introduced it to the collision industry in April 2012 after much work, because we wanted to make sure it was dynamic and marketShift into Genuine Nissan ready before we made it available to 2012 GT-R and Infiniti OEM Parts body shops. We got the call from SEMA at 10 p.m. on Monday, October 29 to tell us that we had won, so it ILLINOIS was a thrill. There were a lot of great products in consideration, so it means even more to us to be recognized.” The Matrix Wand’s journey from Infiniti of Lisle conception to completion took a total LISLE of 4.5 years, but it has paid off with the SEMA award and burgeoning 866-874-6346 sales. “There was a lot of work in(630) 241-3087 Fax volved in developing it and testing it,” M-F 7-8, Sat. 8-3 Srack said. “We received approval retryan@auto-plaza.com cently on our three patents, which is www.infinitioflisle.com huge, so this award was even more meaningful to us and our distributors nationwide. SEMA is a great organization, so being a part of that is significant. This industry is full of amazing companies and people, so it definitely means a lot.” What are some of the main reasons for the Matrix Wand’s success

36 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 37

Andy’s Auto Body and Car Care Expands in Alton, Illinois Andy’s Auto Body in Alton, IL, has been serving the community for more than 40 years and recently celebrated a major expansion with a ribbon cutting Nov. 1 at its new location. Andy’s Auto Body expanded by 10,000square-feet as it took over the building formerly occupied by Sears Tire and Auto Center at Alton Square Mall. The new store is called Andy’s Auto Body and Car Care, is a NAPA Auto Super Center, and will offer mechanical work. The store held its grand opening on Nov. 10. Chuck Tucker, an Alton native, was named the store’s man-

ager, the Alton Telegraph reported. Mark and Diane Anderson, owners of Andy’s Auto Body, saw the empty building as an opportunity to grow the automotive care and retail side of their business in the 10,000square-foot space. The Anderson’s have a five-year lease with another five-year option. They put $500,000 into the new venture at Alton Square Mall. In addition to the new expansion, Andy’s operates auto body shops at 3444 E. Broadway and 4822 Fosterburg Road in Alton and at 14 Schiber Court in Maryville, with mechanical

Andy’s Auto Body Shop Wins ‘Captains’ Award

Andy’s Auto Body and Car Care in Alton, IL, was recently recognized by the RiverBend Growth Association with an award called “Captains of the RiverBend” for its commitment in community services, along with public and economic enhancement. “These awards are presented to businesses, bodies of government and individuals that have demonstrated outstanding commitment to public enhancement, community service and economic enhancement of the region,” said Martha Warford, chair of the RBGA and Mark Anderson, center, is surrounded by family and friends executive director of Beverly Farm FounNov. 1 as he cuts the ribbon to dation. open their new 10,000-squarefoot Andy’s Auto Body and Car Mark Anderson accepted an award for Care. About 200 people came to Andy’s Auto Body for community involvethe event to show their support for the Anderson’s fourth business ment. in the Metro East Warford said that whenever there is a community project, Anderson, his staff, family and friends are sure to get involved. “He is not only generous with his time, he offers his talents and treasure,” she said. Anderson, who serves on the Pride Inc. board, is past president of Rotary of the Riverbend, and recruits other board members, employees and individuals to get involved in community service projects such as Bucket Brigade. Anderson also raised money annually for 5A’s animal shelter by hosting a golf tournament. He serves Thanksgiving dinner to the needy in the community and assists local non-profit organizations, including Crisis Food Center, Riverbend Head Start and Senior Services Plus. “He is the embodiment of true stewardship,” Warford said. Anderson said the good thing about owning a business is that it affords you the ability and flexibility to become involved in the community. 38 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

shops at both the East Broadway and Maryville locations. “This location will be as big as any of the auto body centers. It makes sense for us to diversify and expand Andy’s presence in the community,” Anderson said. “We took a vacant building, and I am hoping this will entice others to come in and see the mall growing and not declining,” Anderson said. “We will do strictly mechanical work here, and we will do tires, alignment, tuneups, brakes, check engines, anything the dealers can do. I hope to get the ball rolling there and keep it rolling and see the mall take off.” The ribbon-cutting event was ‘amazing,’ Anderson said. “I can’t believe how many people came out. We thought it was just going to be a small, intimate group of people in the community that I get involved with.” Instead, approximately 200 people showed up, including Alton Mayor Tom Hoechst, Godfrey Mayor Mike McCormick and state Sen. William Haine, D-Alton. The ribbon-cutting event raised more than $2,500 for the Riverbend

Head Start, an agency that helps lowincome children prepare to enter school. “I try to get some organization involved to benefit from something like

this,” Anderson said, noting that past events he has sponsored benefited the 5A’s Humane Society. “I’m getting more involved with Riverbend Head Start. I like animals and kids.” For the new location, the Andersons purchased state-of-the-art equipment, including a fully-digitized alignment rack that provides greater accuracy and a 60-inch big-screen menu board that doubles as an informational tool. The spacious showroom will allow Andy’s to have more than 400

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sets of tires and wheels in stock, along with a complementing array of struts, shocks, belts, hoses and brakes, among other items. There also will be an estimating bay on site that is tied into their other stores’ systems. “We want to be service-oriented, where people can use the new leather chairs, big-screen television, Wi-Fi, specialty coffees, pastries, and get their cars worked on,” he said. “We’ll be able to offer our customers a nationwide reach but with a local flair,” Anderson said. “Our customers will still be going to Andy’s, so our philosophy will be the same— do the right thing—and they will now get the same warranty as a national chain.” At the new facility, Anderson said he hopes to hold monthly open houses to explain various aspects of car maintenance to take away any mystery of how the systems work. “We plan to have one car on a lift and one on the ground, so people can see for themselves,” he said. “The other advantage of the computerized menu board is that it can show animations that also explain different components.” The goal, Tucker said, is to ex-

plain how a car works in laymen’s terms. “Most people don’t know why they need what are told they do,” the store manager said. “The understanding makes them feel better about spending a lot of money.” Andy’s hired six new staff members and hopes to add more mechanics as the business becomes established. Don McElroy has been hired as chief service adviser. “We hope to spark growth in the area,” Anderson said. “We’ll be open a lot of hours, so we’ll need people to be here to take care of our customers. “We want people to feel welwww.autobodynews.com come,” he said. “Andy’s has been in the community CHECKfor IT more OUT! than 40 years, so no one is a stranger here.”

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MD’s Mark’s Body Shop Releases Car-O-Liner Video

Mark’s prior video showed a post Mark’s Body Shop of Baltimore, MD, an Auto Damage Experts coaching/ repair inspection of a poorly perconsulting client, released a new informed repair. “Such aspects will be the necesformational video in their ongoing efforts to help inform and educate sary equipment, quality parts, materials, training and knowledge which are consumers. Mark Schaech, owner and Pres- required to perform a repair that will ident of Mark’s Body Shop’s said, restore a vehicle’s original safety, per“Through our relationship with Auto formance, appearance and value to the Damage Experts, we have learned the best of human ability. A level of repair importance of continually edifying that unfortunately fewer consumers consumers within our marketplace are receiving today. We want to help and beyond to enable them a better consumers to understand it is their understanding of the benefits of property and it is their choice of reGive us your opinion on matters affecting the industry. proper and thorough repairs and to pairer and help them to make the right help prepare them to make informed choices.” “It’s interesting that upon release decisions before the need arises. Most consumers are just not prepared to of the video, we were contacted by make the importantpublisher@autobodynews.com decisions on mat- Car-O-Liner corporate and they asked ters that often affect their personal if they could show our Car-O-Liner safety and economic welfare when it video during the recent NACE and comes to the repair of the damaged SEMA expositions and their training vehicle. They oftentimes rely upon the seminars. We were very gratified in advice of others, whose interest may this request and of course authorized not be in the overall best interest of their use of the video. We have heard many positive comments since their the consumer.” advertise said. Schaech the as- showing it,” SchaechTo Thecontinued, source“With for timely The videocall canJoe be Momber viewed at at: sistance of Lee Emmons of Absolute information that we every Perfection Tinting & Graphics, are http://www.marksbodyshop.com/car800-699-8251 putting together videos on accident-repairs-auto-collision-spebodya series shopofneeds! e-mail: the various aspects of collision repair cialists jmomber@autobodynews.c and issues consumers should be aware CALL 800-699-8251 of.”

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Repairer-Only Meeting at SEMA 2012 Provides Forum for Unfiltered Discussion In a packed, standing-room only venue, the second in a series of repairer-only meetings was held Nov. 1 at the 2012 SEMA Show in the LVH Hotel Conference Center. Assured Performance Network (APN), the OEM Roundtable, and the Society of Collision Repair Specialists (SCRS) sponsored the event. This special event for representatives of collision repair businesses was designed to provide a place where collision repairers could engage in candid conversation about the challenges facing their industry, without any undue influence from opposing agendas. The unanimous feedback at this event, and other recent assemblies of repairers, was to hold a ‘repairer only’ forum-assembly in conjunction with other industry events on a quarterly basis starting with Palm Springs events in late January. According to Scott Biggs, CEO of Assured Performance Network, “Repairers have overwhelmingly expressed their interest to make the repairers only forum-assembly an ongoing organized event to ensure there is always a place for repairers to express their opinions openly and without filters and interference.” “There was a lot of emotion and passion as repairers articulated their

concerns and discussed solutions,” said Jordan Hendler, Executive Director of the Washington Metropolitan Auto Body Association. “This was a great start to bring repairers and repairer groups together to talk specifically about repairer issues and how to collectively resolve some long-standing problems.” The forum is not a replacement or competition for participation in other inter-industry events. While the Las Vegas gathering had no set agenda, the open discussion agenda provided for lively and passionate discussions covering a wide range oftopics. Insurer-mandated parts procurement programs dominated conversation, but a variety of other issues surfaced during the course of the twohour event highlighting the mounting frustration felt by repairers. “We attended the first two repairer meetings and were overwhelmed by the experience of the repairers that attended,” said Eddie Okahara, President of Oka’s Auto Body, Hawaii. “This type of meeting, where repairers attend to share common challenges from the perspective of one repairer to another, is refreshing. This industry changes so quickly, and it is a great benefit to talk with others that are involved in the day-

Hottest Car, Sport Compact, Truck and 4x4 SUV Announced at 2012 SEMA Show in Las Vegas This year’s SEMA Award for the top trending vehicle models in four categories were announced Oct. 30 at the SEMA Show in Las Vegas. The Ford Mustang was named Hottest Car, the Scion FR-S took the Hottest Sport Compact honors, the Ford F-Series won Hottest Truck and the Jeep Wrangler received the Hottest 4x4-SUV award.

“The SEMA Show has always been about innovative products and trends,” said Chris Kersting, SEMA president and CEO. “The SEMA Award amplifies the industry’s special ability to identify and set trends that consumers follow.” The SEMA Award recognizes ve-

hicle models that specialty-equipment manufacturers believe are the best platforms for accessorization and that showcase the year’s coolest products. It also underscores the cooperative relationship between the automakers and SEMA-member companies. “The SEMA Award helps guide consumers toward the hottest-trending and most accessory friendly vehicles on the market,” added Kersting. “Our SEMA Show exhibitors are industry visionaries who determine the winners of the SEMA Award based on the vehicles they showcase in their booths. Each booth vehicle represents a ‘vote’ and the most prominent models in each category are the winners.” The 2012 SEMA Show features more than 2,000 exhibiting companies that manufacture thousands of products designed to improve performance, safety and convenience, as well as those that enhance appearance and comfort. While products are available for every make and model, exhibitors are investing more in the Ford Mustang, Scion FR-S, Ford F-Series, and Jeep Wrangler than any other vehicles. Consumers, therefore, can expect to find great specialty products for accessorizing these vehicles.

40 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

State Farm Donates $70K to Collision Repair Schools

to-day business of repairing and refinishing vehicles safely based on the manufacturers specifications; rather than former employees of repairers, retired owners, or people that have moved on to teaching or consulting and are no longer directly involved as we are.” SCRS was an integral part of the forum’s formation. “I was impressed with the turnout at this event and the level of participation from all that were in attendance,” said SCRS Chairman Aaron Clark. “Every major organization, including SCRS, has a forum to discuss their issues. This style of repairer-only meeting that is not organization specific seems to provide a great opportunity to allow repairers the time and place to talk openly and without filters or other interests muting the opinions. The repair industry has identified a hunger for ongoing repairer-only meetings and the industry responded.” The next repairer-only meeting will take place in conjunction with the industry events scheduled for Jan. 23-25 in Palm Springs, CA. For more information, contact SCRS Executive Director, Aaron Schulenburg (aaron@scrs.com) or APN Executive Director, Liz Stein (liz.stein@assuredperformance.net).

State Farm Insurance recently donated $70,000 to the Collision Repair Education Foundation to help the organization provide financial support to collision repair schools and students nationwide. The Education Foundation said State Farm’s donation will be used for annual student scholarships, school grants and the annual Ultimate Collision Education Makeover $50,000 school grant. “State Farm’s support of collision repair education is consistent with our long-term commitment to education overall,” said Russ Hoffbauer, claims director for State Farm. “Collision repair education is very important to State Farm and to our customers. As technology in the automotive industry changes rapidly, it is critical to have students entering the field and learning the latest repair methods to be able to provide remarkable service to our customers.” Clark Plucinski, executive director of the Education Foundation, said State Farm has donated nearly $1 million to the organization overall since it was created.

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Seven Experienced Auto Dealers Elected to Congress

All seven current and former auto dealers running for seats in the U.S. House of Representatives won on Election Day. Winners include Roger Williams, R-Texas, a former Texas secretary of state who runs a Chrysler-Dodge-Jeep-Ram store in suburban Fort Worth, and Jim Renacci, R-Ohio, the co-owner of a Chevrolet dealership that was rejected as General Motors went through bankruptcy. True to form in Ohio, the race included heated debate about Washington’s handling of the auto industry. Winning re-election by more comfortable margins were: • Scott Rigell, R-Va, who owns Ford and Volvo dealerships. • Mike Kelly, R-Pa., who owns a Chevrolet store. • Vern Buchanan, R-Fla., who has sold some of his several dealerships and had his Dodge dealership rejected during the Chrysler bailout. • John Campbell, R-Calif., who sold several dealerships, including one of the first Saturn stores, when elected in 2004. • Bill Shuster, R-Pa., who sold his Chrysler dealership when first elected in 2000.

SEMA Seeks “Collector Car Appreciation Day” Federally

SEMA and its Automotive Restoration Market Organization (ARMO) and Hot Rod Industry Alliance (HRIA) Councils announced that the next “Collector Car Appreciation Day” will be celebrated on July 12, 2013. The date marks the fourth consecutive commemoration in what has become an annual event to raise awareness of the vital role automotive restoration and collection plays in American society. SEMA and its Councils will once again seek a Congressional resolution to recognize the day’s significance. The industry endeavors to preserve our nation’s automotive heritage while providing well-paying, high-skilled jobs nationwide. Collector Car Appreciation Day is a singular tribute to the collector car industry and the millions of hobbyists it supports. “The U.S. Senate helped launch Collector Car Appreciation Day by passing Resolutions each year at our request,” said SEMA Vice President of Government Affairs Steve McDonald. “Collector Car Appreciation Day is quickly taking on a global character, with events held in the United States, Canada, and Australia.”

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Safelite Group To Acquire Southern Glass & Plastics

Safelite® Group, the nation’s leading vehicle glass company, has reached an agreement to acquire substantially all of the vehicle glass division assets of Southern Glass & Plastics. The deal is expected to be finalized by November 17, 2012 at 12:01 a.m. Southern Glass is a well-respected company with a prominent vehicle glass repair and replacement brand in Georgia, North Carolina and South Carolina since 1990. Owned by Alan Epley, the company employs 25 people and operates five retail locations: Savannah, GA; Charlotte, NC; Charleston, SC; Columbia, SC; North Augusta, SC The acquisition is the continuation of Safelite AutoGlass’s mission to profitably grow in the U.S. and to become the customer’s “natural choice” for vehicle glass repair and replacement services. “While much of our growth has come organically from expanding the company’s existing sales and profit base, we’ve also had various strategic, targeted acquisitions in the last several years,” said Tom Feeney, president and CEO of Safelite® Group. “We expect that Southern Glass’s clients, customers, business partners and employees will benefit from our commitment to be the leader in the vehicle

glass industry.” Safelite® Group is a subsidiary of Belron®, the world’s largest and most successful retail vehicle glass repair and replacement company. Belron® operates in 34 countries. Southern Glass’s owner Alan Epley will continue as a consultant during the transition before he officially retires. In addition, general manager David Packett will play a significant role in the integration. With their vehicle glass repair and replacement expertise, they will offer excellent contributions to the Safelite® team. “Even though we have been healthy competitors in the past, Safelite® offered the best option for me and my employees, particularly in today’s challenging economic times. I look forward to my upcoming retirement after the transition period,” said Epley.

The latest quarterly Industry Trend Report from Mitchell features the article, “Are Rising Deductibles Driving Severity Trends?” by Greg Horn. The article examines the link between flat collision repair severity and the rise in deductibles over the past six years. Consumers are opting for raised deductibles in an effort to cut expenses, but are then reticent to seek repairs for which they will shoulder more of the financial cost. This data is in alignment with data from Enterprise, which found the average rental time remained consistent across the U.S. in the third quarter of 2012. Mitchell expects an increase leading into the fourth quarter of the calendar year as weather and holidays come into play. “While higher deductibles are good for the insurance industry since consumers carry more of the repair bill, this is not as positive for the repair shops or rental car companies, which are seeing less business. It’s important to examine whether there is a causal relationship here, or if other factors are influencing the severity trends,” said Horn. “Our latest ITR explains our findings on which factors do and do not have the greatest influence on the rise in repairable severity.”

The Auto Casualty Edition article, “Coping with Compliance in the Property & Casualty Industry” by Mitchell’s Vice President of Information Management & Client Services Michele Hibbert-Iacobacci, discusses the increasing challenges P&C insurance carriers face due to new or changing legislation. Federal regulations and Accountable Care Organizations require skilled navigation and following arduous processes for compliance and success, while maintaining a focus on quality and service. Carriers must stay informed and continuously analyze the impact of such initiatives on their policyholders and businesses. “Most legislation is put in place to benefit the consumer, but it’s difficult to predict the impact on any party once it becomes law,” said Hibbert-lacobacci. “Changes to processes are often relevant in the areas of billing, payment models and privacy. Even when the intent is well meaning, many causal relationships arise when laws change. The latest Mitchell ITR guides P&C carriers in their quest to learn from the past and gain better insight into what changes may come.” See mitchell.com/industry-trends-report.

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www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 41

Rich Evans and Crew Unveil 2004 H2 Hummer at SEMA 2012 Rich Evans and crew unveiled this 2004 H2 Hummer at SEMA 2012. The H2 Hummer was built in 10 days in Canada for the first taping of Evans’ new show, “World Wide Car Building.” All nine U.S. builders were there, as well as the Canadian team from Curtis Customs.

Continued from Page 18

SCRS on SEMA

company likes being here because the attendees seem so open to learning about new products. That makes the SEMA show the perfect place to illustrate what our company is all about. It’s a venue that allows us to show our personality and make a good brand impression. We’ve increased our booth space every year.” The benefits of expanded markets resonate throughout the exhibitor side, as well. “Our company has been coming to this show for many years,” noted PPG Senior Manager Business Solutions/Industry Relations Domenic Brusco, “primarily as a well-received provider of custom finishes for hot rods, motorcycles and other specialty vehicles. The traction that is growing in the collision repair section—which I think can be attributed in part to the work SCRS has done to build the industry’s identity at the show—is great for us because it also gives us the opportunity to connect with our collision refinish business customers. It’s a nice synergy.” SEMA also exhibits a set of intangibles that adds to its allure. “The

show brings together everyone that is an auto enthusiast, which makes it unique,” said Jeff Kern, president of Car-O-Liner, another company that has increased its booth size every year and was one of the first collision repair vendors to host a booth on the SEMA show floor. “Attendees get a sense of ‘we are all in this together’ and feel a part of a greater automotive-related whole, perhaps, they never would have gotten to experience otherwise.” SCRS Board Member Kye Yeung likewise sees benefit in the distinctive nature of the show. “Because the SEMA show includes all auto-related businesses, it provides a kind of neutral background which, for some reason, seems to encourage networking between shop owners,” he said. “I guess you could say it takes us out of the day-to-day mindset we fall into as we are grinding away in the trenches, so we can look at our competitors more objectively and appreciate what they have to offer.” Top-notch education of the type SCRS provides through RDE is yet another reason repairers find the show compelling—explaining why so many collision repair vendors have stepped up to support the program.

42 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

WD-40 Keeps on Truckin’ When it Comes to Helping Others by Ed Attanasio

We know how many uses there are for WD-40® and you’ve probably been using it for many years. But are you aware of all the charity outreach that the company performs every year, through its SEMA Cares vehicles program?

Here is the initial mockup of the WD-40®/SEMA Cares Foose ’53 Ford F-100

After the last three WD40®/SEMA Cares vehicles raised a combined $400,000 for children’s charities during previous shows, Chip Foose and WD-40® Company teamed up this year one more time to build two more custom trucks, a 1953 Ford F100 and a 2012 Ford F-350, that will eventually be auctioned off to benefit the SEMA Cares program. This year’s first project vehicle,

the WD-40®/SEMA Cares Foose ’53 Ford F-100, was created to commemorate the 60th anniversary of WD-40®. Six decades ago, engineers in San Diego, CA, developed this product to displace moisture on the Atlas missile, and today WD-40® is sold in 187 countries worldwide. Featuring a vintage “shop truck” look with an updated drive train and suspension, one-off Foose wheels and custom paint, this one-of-a-kind pickup truck looks similar to the truck used to deliver the first case of the product in the early ‘50s, back when the company was called Rocket Chemical Company. Proceeds from the auctioned vehicle will benefit two SEMA Cares charities—Childhelp®, an organization that provides services to abused and neglected children, and Victory Junction, which provides life-changing camping experiences to special needs and chronically ill children. WD-40® Brand Manager Shannon Edwards passionately believes in supporting causes that help children while strengthening the automotive industry in the process, she said. “Victory with our Genuine Ford Parts

Junction is a great organization and Childhelp offers a wide variety of services to abused and neglected children, as well as to treatment counselors, educators, parents, foster care families the community and law enforcement professionals.”

vehicle represents the new WD-40® Specialist line of products that help skilled trade professionals get their specific jobs done with ease. Following its debut at the 2012SEMA Show inside the WD-40® Company booth, this vehicle will hit the

The WD-40®/SEMA Cares Foose ’53 Ford F-100 commemorates the 60th anniversary of WD-40®

Leading aftermarket manufacturers and other companies that chipped in to build and promote the vehicle include: Foose Design, Street Scene Equipment, Barrett-Jackson, LMC Truck, L&R Automotive, Egge, MHT Wheels, Pirelli Tires, BASF Paint, American Auto Wire, Painless Performance, Quiet Ride, K&N Filters, Red Kap and McGard.

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road for several months making special appearances before being auctioned to help fund the SEMA Cares scholarship fund. Leading aftermarket manufacturers and other companies that chipped in to build and promote the vehicle include: Foose Design, Street Scene Equipment, Ford, Source Interlink Media, Icon Vehicle Dynamics, DynaTrac, Custom Truck Shop, BFGoodrich, Magnaflow, Takit, Husky Liners, LEER, Katzkin, Pro Comp, Polk Audio, Audio Innovations and PowerBass.

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The WD-40® Specialist/SEMA Cares Foose Ford F-350 is a custom 2012 Ford Super Duty work truck

“This year, we’re upping the ante and building two vehicles – one that pays tribute to WD-40® Company’s history, and one that celebrates some of its newer specialty products that help auto pros like me get the job done right,” Foose explained. “With the help of some great aftermarket partners and a lot of WD-40® brand products, we’ll be able to build two vehicles that honor those who work hard every day.” The second project vehicle, the WD-40® Specialist/SEMA Cares Foose Ford F-350, is a custom 2012 Ford Super Duty work truck that includes Foose-inspired front and rear wheel flares, side rockers, and custom bodywork, among other upgrades. The

Chip Foose is a crowd pleaser wherever he goes. Here he signs WD-40®’s Asia Simonella’s shirt at 2012 SEMA

After its unveiling at SEMA, both vehicles will embark on a tour at automobile shows and other events throughout the West, before being auctioned for charity at the Barrett-Jackson Collector Car Auction in Scottsdale, AZ, Jan. 13–20, 2013. Edwards is happy to work with Chip Foose for a wide range of reasons. See WD-40, Page 45

www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 43

Honda’s ProFirst Shop Recognition Program Puts Shops First and knowledge provide a platform for business and personal excellence, generating benefits for both the organization and the customer, including increased operational efficiencies, reduced cycle times, minimized repair mistakes, and most importantly, complete and safe repairs.” Honda said all shops that qualify as a ProFirst shop will receive a plaque, free access to Honda and Acura parts catalogs and bulletins, access to service and repair information, and placement on the company’s shop-locator tool on its consumer website: collision.honda.com.

by Ed Attanasio

he fixes a lot of Hondas in his part of main goals and we achieved it.” “Once a shop becomes a ProFirst Connecticut. “We see at least 50 Hondas a month, shop, we offer them the advantage of which is essenbeing listed in our shop locator site, tially 20% of all which is attached to our new conthe vehicles we resumer site (Collision.Honda.com) that pair. We use Colliwe launched in mid-September,” sionLink at least Ledoux said. “Shops are very inter50–60 times every ested in this aspect of the consumer month as well and site, because it gives them more expoDan Stander we’re proud to say sure to an automobile brand with a we’re an I-CAR Gold shop with all of large number of units in operation.” Bob McSherry, owner of North our 14 production technicians trained Haven Auto Body in North Haven, CT, on Honda and Acura. That’s why we was the first shop to sign up for ProFirst last October. “As a body shop, I would have to say it is pretty slick,” he said. “The parts catalog is very helpful and we understand that Honda is going to be promoting both sites pretty quickly here, so that will be instrumental. It’s a win-win, because what Honda is saying is that shops that do the right thing are going to get recognized for it.” ProFirst is an excellent The site’s Shop Locator will allow customers to find tool, said McSherry, because Honda-approved body shops in their respective regions

When American Honda Motor Co. Inc. launched its ProFirst (ProFirst.Honda.com) body shop recognition program on Oct. 17, the automaker was pleased with the positive feedback it received from dealerowned and independent collision repair facilities alike. Representing Honda’s updated approach to online information, ProFirst is fueled with the newest technology, partnered with names like OEConnection and I-CAR and backed by the power of one of the nation’s most popular automotive nameplates. The program’s mission is to promote comprehensive and safe repairs of Honda and Acura vehicles, and to provide support to shops that have demonstrated a commitment to high levels of customer satisfaction. There are a few requirements that shops must fulfill in order to qualify for the ProFirst program including use of OEConnection’s Collision Link tool and meet a level of IThe landing page for Honda’s new ProFirst website is CAR training. designed to help and market body shops that qualify Give your customers what they deserve... The Best. Participating shops must also be designated as I-CAR Gold “As the new Honda and Acura Genuine Mazda parts are specifically designed, engineered and tested Class Professional businesses and models become more and more sofor Mazda vehicles. Customers and repair professionals prefer the have a minimum of one technician phisticated and technologically adquality and satisfaction that only comes from genuine Mazda parts. who hasaffecting completed I-CAR’s Collision vanced, it Want requiresto a collision repair to this Southwest Edition? matters the industry. Contribute Repair for Honda and Acura Vehicles technician with higher knowledge and course (HON01), according to Gary skills to properly repair them,” Ledoux, the Assistant National ManLedoux said. “Partnering with I-CAR ager of Wholesale Parts Marketing for in this context helps promote training autobodynews.com publisher@autobodynews.com American Honda Motor Co. and thus promote safe and complete These requirements are a big in- repairs of Honda and Acura automogredient and one reason why I-CAR is biles. Promote business with Promote your business with pleased to be a part “With a new programyour involving an exclusive article featuring an exclusive article of the ProFirst pro- hundreds and hundreds of shops, we featuring gram and Honda’s needed a new way to manage it and your products or services. your products or services. To advertise approach to train- the ProFirst website really kicks it up ly calling Joeand Momber recogni-at: a notch,” Ledoux added. ry tion. “It’s meant to “Profirst.honda.com makes it RX-8 2012 800-699-8251 ! elevate the cusquick and easy for the shop to enroll, e-mail: tomer experience and then after qualifying, easy wayfor details! CALL: JoeanMomber Call for details! WISCONSIN jmomber@autobodynews.com OHIO 51 Gary Ledoux and enable shop through which to access the parts cat800-699-8251 Brunswick Mazda Van Horn Mazda to work up to their full po- alog and service and800-699-8251 repair informaE employees www.autobodynews.com Brunswick Sheboygan tential,” said John Van Alstyne, prestion. Automating the enrollment and n. ident and CEO of I-CAR. “Training administration process was one of our Toll Free 888-460-7080 800-236-9888

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joined right away and are happy to be involved is such a new program.” Dan Stander is the owner of Fix Auto Highlands Ranch in Littleton, CO. Stander is active in the national industry associations such as NACE and was one of the first body shops to achieve Honda’s Level 3 and is happy

to be a part of ProFirst, he said. “The repair updates are excellent and perfect for us. We repair as many as 50 Hondas every month, so updated collision repair data is essential to our success. If we can’t find it in our estimating system, we know we can go there to find it. We’re excited to be a Level 3 shop on ProFirst and know it will make us a better shop as a result.” As the carmaker’s website manager, Ledoux’s job is now a little easier with the new site and its added technology. “We receive updated information from I-CAR and OEConnection every night. As soon as a shop becomes an I-CAR Gold Class shop, we know it right away. We also track a shop’s Collision Link usage on a daily basis so as soon as they qualify for ProFirst, we know that right away as well. The process is quick and easy for us, quick and easy for the shop, and the best part is, ProFirst costs Once the user inputs their zip code or address, they will the shop nothing. It’s a winfind a list of ProFirst Honda collision facilities within the parameters they’ve set, both quickly and easily win for everyone.”

WD-40

Continued from Page 43

“He lives our values and makes a lasting impression in everything he does. The way we run our company and the way Chip operates his business are very similar, and that’s why we’re very pleased to be associated with him, especially on great projects like this one.” Ford Motor Company sold WD40® its Ford F-350 for one dollar, Edwards said, and in just eight months it went from blueprint to reality. “Ford stepped up and Foose with Mike Spagnola from Street Scene Equipment in Costa Mesa, CA, made this truck a oneof-a-kind vehicle. By using some of the best of the best in this industry, we were Continued from Page 36

Matrix Wand

overlay; this is really the actual customer’s vehicle. Mobility is another benefit of using this product, because it’s a handheld device and you don’t have to worry about the car being level. With the complexity of these cars today, the Matrix Wand is more essential than ever.” SEMA’s Vice-President of Events

able to get two amazing trucks that efficiently communicate our message while capturing a point in the company’s history with the ’53 Ford F-100.” WD40®’s marketing VP thanked everyone involved, with special kudos for Foose and his finished product. “These charity vehicles would not have been possible without the hard work and vision of Chip Foose and his team, as well as the time, energy, dedication and resources of our build partners,” said Tim Lesmeister, vice president of marketing for WD-40® Company. “After raising a combined $400,000 for SEMA Cares with our last three project vehicle builds, we expect these trucks to turn a lot of heads and continue to help a great cause.”

and Communications Peter MacGillivray discussed the importance of the award and how it impacts the industry worldwide. “The number one reason why people go to the show is for new products. These product awards are judged by industry peers and that’s why they mean so much to the winners. We always announce them before the show begins, so that the winners can enjoy the benefits of this very special achievement.” tC 2011

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www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 45

Inside Insurance

The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com

Customer Service Has the Power—Don’t Perfume the Pig with The Insurance Insider

Customer service has taken on a life ate the desired result. There have been unto itself. If you don’t have a job in a few success stories, but far more exwhich customer service is Priority amples exist of money wasted for 30 with Rae seconds Sisk of air time. Number One, then you Chasidy won’t be employed for very long. Why? Because As a result, companies are now your company will lose business and eventually downsize or go out of business. We’ve become a society where outstanding customer service is no longer just expected. demanded. withIt’s Chasidy Rae Sisk And it’s demanded NOW! Remember that old slogan at Burger King: “Have It Your Way.” To elaborate how extensive the desire to please the customer goes, here’s my embarrassing tale of my teenage grandson. He was visiting the other day and told me that he’d gone into a “BK” the day before and immediately after orevaluating whether or not spending the dering had asked them to make fresh ridiculous amounts of money on marFrench fries because he didn’t want the keting and advertising pays dividends. ones already made. And I suppose their Buying customers through trendy adanswer will be anti-climactic at this vertising still requires you to deliver an point: They did it. exemplary product and service. My I asked him why? Were the fries dad used to say, “Son, you can’t put old? He said, acting very surprised, that perfume on a pig.” The pig may smell they weren’t at all. But they told me, he nice but he’s just as dirty and sloppy as said, that “I can have it my way.” Wow. he was before. The bottom line is that I wish I could employ those tactics at he is still a pig. I think that’s what conhome with my wife. It’s never my way. sumers have experienced with those Customer service seems to be the companies that have spent significant primary driver and motivation for viramounts of their annual budget to attually every large corporation today. At tract but not retain. times, profitability seems almost secSo, you may ask, if companies ondary. Okay, maybe not quite, but the aren’t growing, what are they doing to fact is that customer service motivates retain business? They’re doing a myrcompanies to take action and change. iad of things but let’s focus on their diJD Powers and Associates’ customer rect repair programs (DRP). As a direct service reports seem to draw the same repairer for a given insurance company, focus as quarterly earnings reports. Exdo you have any idea the power you ecutives await the results to see if their have to influence the customer’s perattempts to drive results have become a ception? If you don’t, you are missing reality. Employees await the congratuthe best opportunity you have to grow latory email or a call-to-action to imyour business. prove results. You aren’t really in the business of In the shrinking market for auto repairing vehicles, nor are we insurers insurance, carriers are focused on gainin the business of paying for their loss. ing and retaining their customer base. All of us are in the business of providWe spend millions of dollars on maring service in a time of need. The easiketing to new customers. Has that est thing any of us can do is help the translated into new policyholders? The customer through something that hapresults have been mixed. If it was that pens once every seven or so years on easy, even a caveman would do it. If it average. We should be providing rewas as easy as throwing money to crespect, courtesy, information, updates, ate commercials and trendy gimmicks, smiles, reassurance and comfort to everyone would be following that name a few things. The cost to provide model AND reporting record sales. those items? Nothing. Assuming that Spending millions hasn’t proven to creyou don’t charge for effort, care and

Northeast News Shop Showcase

compassion. The sooner you realize that, the sooner you can win the game. Customers and insurers expect the car to be repaired properly and on time. We both demand customer service. Depending upon the carrier, the vehicle owner will spend more time in your facility and interacting with your staff than they will with their insurance company. If you wow the customer, the customer is going to be satisfied with you and more than likely the insurance company. If they don’t like you, you can bet your last customer service survey that they don’t have a lot of nice things to say about us either. In my opinion, insurance carriers allow the repair facility to have too much influence on the customer experience. Carriers have become acclimated to pushing additional responsibilities onto the shops. Customer service is something that insur-

Mainstream Media

46 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

ance companies need to reclaim more of a share in. Unfortunately, insurance companies are beset with shrinking budgets and are reducing staff because of the lack of growth and fierce competition. That’s good news for shops. It creates an opportunity, obvious or not. Find a way to deliver consistently outstanding customer service, and your direct repair business is going to grow exponentially because insurance carriers need you. Don’t try putting perfume on the pig. You can’t fake good customer service. You either create a culture of service in your business or you will be left behind with the other swine. “The Insider” is an auto insurance company executive who wishes to remain anonymous. This column reflects solely the opinion of The Insider as it offers an unvarnished look at various issues impacting the collision industry.

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On Creative Marketing

Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin

What’s the Value of a Lifetime Customer with Thomas Franklin

his unique book on marketing, “Getting What is the value of a lifetime cusEverything You Can Out of All You’ve tomer? Let’s just take 15 years. A typical driver has some sort of vehicle Got,” author Jay Abraham says: damage once every three to five years. “Until you identify and understand exIf we count little parking lot scrapes actly how much combined profit a and minor dents, three years may be client represents to your business for the just about right. That means a good life of that relationship, you can’t begin customer might visit the shop five to know how much time, effort and ... times in 15 years, but at least three expense you can afford to invest to acwith Dick Strom quire that client in the first place.” times. How important is it that this customer becomes a repeat customer? Of Cable, phone and other similar compacourse that depends on the size of the nies offer a low rate for the first year to shop, the referral sources the shop regain new users. It’s well known that relies on, and the number of repeat cuspeat buyers and users become far more tomers the shop relies on to maintain a profitable as time goes on. How can this steady, profitable business. A shop with approach apply to a body shop? many DRPs providing a steady flow of Visiting many shops over the years, new customers may not be as conI’ve often heard the viewpoint that fixcerned with repeat customers as a small ing dings and small dents is a losing to medium sized shop that needs at proposition. They say the time and efleast half of all customers to come back fort just generating the paper work costs withagain Leeand Amaradio Jr.than the small profit made for the again—and hopefully again. more In just those 15 years, a repeat cusrepair. Obviously this viewpoint is not tomer might generate $5,000 worth of taking into account the lifetime value of business, and possibly much more. In a customer. It also overlooks the habit principle that says the number of repeat experiences determines how deeply a AUTOBODY habit is ingrained in an individual. Just getting someone to come to the shop MARKETPLACE multiple times (without having a bad experience) will accustom that person to Body Shop Business having a repetitive relationship with the

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supplement wastes a lot of time and takes people away from work, thereby costing the shop about $288 per supplement. Chess also touched on the importance of Standard Operating Procedures, or SOPs. SOPs are not needed for every operation, he explained, but for those Chaneyareas where there are problems. “Look at what obstacles are blocking production,” he said. He stressed the importance of creating the SOPs with shop employees so they have a buy-in to the new procedure. “The number one thing an employee wants is to be treated with respect, and the best way to do that is to ask for their input,” Chess said. He went on to give an example of how he helped a shop in Gardenia, CA, go

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shop. How deeply the habit is ingrained will also determine how resistive the customer will be to being pressed by his or her insurance company to go to their selected DRP shop. For many people, a strong, personal relationship is necessary to be willing to reject their insurer’s insistence on using a different shop than yours. So, how far would you go to get many, if not most, customers to become lifetime friends and customers? Jay Abraham says it starts with viewing the person as a ‘client’ rather than as a ‘customer.’ A customer is one who purchases a product or service, but Jay notes that a client is defined as “a person who is under the protection of another.” He advises becoming a trusted adviser who they can look to for protection—in our case from predatory shops seeking obscene profits or making fraudulent claims, or insurance companies directing them to a shop that is more to the advantage of the insurance company than to the customer/client. I’ve seen the length some shops will go to, to find a less costly part or to provide service above and beyond what is generally expected. The customer/client loyalty to these shops is quite remarkable. But is there some-

from $88,000 in the red to more than $100,000 in profit and one of the things he did was implement an Employee Appreciation Month. The benefits of creating Standard Operating Procedures include: • reducing system variations • facilitating training • facilitating cross training • reducing waste • creating regular evaluation of work • improving work activity As an example of a SOP, Chess shared what information he marks on a windshield when a car comes into the shop: • Repair order number • Customer last name • Insurance information or COD • Date of arrival • Target date of repair completion • Name of estimator • Name of technician • Any sublets needed (such as alignment) • Note whether pictures have been taken.

thing more a shop can do to cement a lifetime relationship during that first visit to the shop? Many businesses now provide customers with a ‘reward’ card and department stores provide customers with a credit card only good at their store. Most reward cards just accumulate points for gifts or to apply credit against a future purchase. I’ve heard of a few shops that were in the process of creating a similar card to give to first time repair job customers. But the card could also be used for car washes, detailing, pin-striping and other vehicle related services. A completely different approach is providing an estimator with special incentives to build a more personal relationship with first time customers. If a shop has a long-term estimator who can be counted on to stay with the shop far into the future, the personal touch is often key to getting people to come back. Letting the estimator be the good guy, cutting some costs or speeding up repair time, can endear him or her to the customer. Many people come back simply because they like and trust a specific person at a place of business. When future business is taken into account, a shop is always wise to calculate profits in the long run. Continued from Page 27

Sandy Damages

Sandy are expected to cost the National Flood Insurance Program at least $8 billion, far above the roughly $4 billion the government-backed insurance program can currently pay, according to the Consumer Federation of America. According to the consumer group, Hurricane Sandy will give rise to 200,000 claims for wind damage and an additional 200,000 claims for flood damage.

Flood Damaged Vehicles While most reports say Sandy flooddamaged cars will not exceed 250,000, Black Book’s Ricky Beggs said Superstorm Sandy will have an even bigger industry impact than Hurricane Katrina did seven years ago, which he estimated at 640,000 units destroyed. The National Insurance Crime Bureau estimates than Katrina damaged ‘only’ 325,000 vehicles.