May 2019 Midwest Edition by Autobody News

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Vol. 8 / Issue 8 / May 2019

Sponsor, Repairer: Texas Insurer-OEM Procedure Bill Needed to Give TDI Power

APCIA: OEM Procedure Bill Lacks Provision Preventing Body Shops Committing Fraud in Texas

by John Huetter, RepairerDrivenNews.com

The bill’s sponsor and the head of the Auto Body Association of Texas told a Texas House Insurance Committee on April 9, that House Bill 1348 was necessary following what they said was the Texas Department of Insurance’s view that it was powerless to check certain insurer behavior. HB 1348 will hold insurers to OEM repair procedures. It declares that a carrier can’t “disregard a repair operation or cost identified by an estimating system, including the system’s procedural pages and any repair,

process, or procedure recommended by the original equipment manufacturer of a part or product.” In addition to demanding insurers acknowledge repair procedure, the bill defines “(r)easonable and necessary amount” as “the amount determined by the original equipment manufacturer’s manufacturer and estimating systems required to repair a vehicle to the condition before the covered damage to the vehicle occurred.” It also defines “like kind and quality” for aftermarket parts and adSee TDI Bill Page 4

Body Shop Owners Can Sell Their Short Pays to StopShortPays.com by Chasidy Rae Sisk

The difficulty of obtaining full payment for a repair when a collision repair shop’s invoice differs from the insurer’s estimate is a common complaint among shop owners. Texas-based attorney Leroy Scott noticed the prevalence of this concern among the shops he represents. Deciding to do something about it, he established StopShort Pays.com. Scott shared, “At my law firm, I kept running into these situations where it seemed like insurance com-

panies were underpaying shops, and when I reached out to some shops I represent, I realized it’s a huge problem. Then I had to figure out which angle to approach it from, and that’s when I started StopShortPays.com in earnest in October 2018.” Scott recognized that many shops were accepting the payment dictated by the insurer’s estimate and were not pursuing short pays for the full rate of their work because the legal process was so difficult and time-consuming, especially for those who are unfamiliar with the system. See Short Pays, Page 61

An APCIA representative on April 9 testified against a Texas bill compelling insurers to pay for the cost of repairs done to automaker specifications, arguing that the measure lacked confirmation body shops used them and suggesting some repairers might lie about it. American Property Casualty Insurance Association state government relations Vice President Joe Woods’ questionable testimony opposing House Bill 1348 also described adjusters as the line of defense for repair quality. HB 1348 will hold insurers to

OEM repair procedures. It declares that a carrier can’t “disregard a repair operation or cost identified by an estimating system, including the system’s procedural pages and any repair, process, or procedure recommended by the original equipment manufacturer of a part or product.” In addition to demanding insurers acknowledge repair procedure, the bill defines “(r)easonable and necessary amount” as “the amount determined by the original equipment manufacturer’s manufacturer and estimating systems required to repair a vehicle to the condition before the covered damage to the vehicle ocSee APCIA Opposition Page 4

Truck Topics is a new series of articles by Gary Ledoux to appear periodically in Autobody News covering the collision side of the heavy-duty truck market, see pp. 42 & 52

New Car Technology Benefits Drivers, But How Does It Affect Body Shops? by Ed Attanasio

I was talking to a group of body shop owners the other day at a trade association meeting, and one said, “I’m not in the repair business anymore; I’m in the computer business! “These new cars are great for the consumers, but fixing them is getting tougher and more expensive.” In the end, diagnostics have quickly become a huge part of the collision repair process and a reality that shops need to accept. The ones that embrace the technology and become adept at using it will get more work while stragglers will eventually lose their spot in line. To find out about the present and future of automotive diagnostics, we

interviewed one of the country’s leading experts on the subject. Michael Flink, national trainer/commercial product sales manager, has more than four decades of aftermarket experience. He has spent the last seven years with Autel, one of the world’s leading manufacturers and suppliers of professional diagnostic tools, equipment and accessories in the automotive aftermarket.

pair?

When did diagnostics become such a big part of collision re-

In 1982, diagnostics really took off, even though the very first computer-controlled system hit

See New Car Technology, Page 48

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MAY 2019 AUTOBODY NEWS / autobodynews.com

CONTENTS

KSI Donates $250,000+ to Support CREF’s Mission

REGIONAL

NATIONAL

AASP-MN Legislative Initiative Cut Short . . . . . 14

‘Who Pays for What?’ Surveys Find Growth

Focuses on I-CAR Updates . . . . . . . . . . . . . 10 At Jerry’s Body Shop in Mankato, MN, Going Green Has Always Been a Focus . . . . . . . . . 22 Collision Repair Shop Owner Returns to Avon, IN, as a Top Custom Car Builder . . . . . . 8 Earl Kleckner Has Run Kleckner’s Collision Center for 42 Years in Danville, KY. . . . . . . . 18 High Pothole Repair Costs Lead to Facebook Page Warning Drivers in NE. . . . . . . . . . . . . 11 Lincoln, NE, Auto Body Shop Planning 2nd Location. . . . . . . . . . . . . . . . . . . . . . . . 12 Midwest Association Events - May 2019 . . . . . . 6 NABC Recycled Rides Donates 4 Refurbished Vehicles to Student, Charities in KS . . . . . . . . 6 WACTAL’s 2019 Conference Is an Educational and Networking Success . . . . . . . . . . . . . . 16 Women in Automotive & Collision Holds Feb. Meeting at North County Tech . . . . . . . . . . . 12

COLUMNISTS Anderson - Industry Misses 2 Important Aspects of John Eagle Collision Case . . . . . 38 Attanasio - From Rock Star to Crash Star . . . . 40 Ledoux - The 1970s - Part 1 - The Collision Industry Starts to Mature . . . . . . . . . . . . . . 34 Ledoux - Truck Topics 1: Heavy Duty Events Address Collision Issues . . . . . . . . . . . . . . . 42 Ledoux - Truck Topics 2: Truck Vs. Auto Collision Repair – An Overview . . . . . . . . . . 52 Phillips - Best Practices When Interpreting & Documenting Scan Data, Trouble Codes & Calibrations. . . . . . . . . . . . . . . . . . 44 Sisk - ASA’s ‘Washington Watch’ Webinar Features Industry Association Leaders . . . . 56 Yoswick - Panel Discusses Strategies for Shops Dealing with ADAS with Sublet Vendors, Insurers . . . . . . . . . . . . . . . . . . . . 30

in Shops Billing (& Being Paid) for Masking for Priming . . . . . . . . . . . . . . . . . . . . . . . . . 54 Accuvision-3D Measuring Approved by APN . . 11 APCIA: OEM Procedure Bill Lacks Provision Preventing Body Shops Committing Fraud in Texas. . . . . . . . . . . . . . . . . . . . . . . . 1 Are You Unwittingly Driving A Salvaged Car? . . 10

across the U.S. At many schools, students have to practice on parts that have been in use for many years and practiced upon by previous students. The parts donations by KSI Auto Parts help students work on parts for newer vehicles that they are more likely to see when they join the collision industry workforce.

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UPDATED DAILY

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

Serving Illinois, Iowa, Indiana, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, 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. ©2019 Adamantine Media LLC.

Accuvision-3D . . . . . . . . . . . . . . . . . . . . . . . . 22

Luther Bloomington Acura-Subaru . . . . . . . . . 41

Alloy Wheel Repair Specialists, LLC . . . . . . . . 26

Malco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Audi Wholesale Parts Dealers. . . . . . . . . . . . . 57

Maplewood Toyota-Scion . . . . . . . . . . . . . . . . 35

AutobodyLaw.com . . . . . . . . . . . . . . . . . . . . . 24

Mazda Wholesale Parts Dealers . . . . . . . . . . . 60

Axalta Coating Systems . . . . . . . . . . . . . . . 5, 19

McGrath City Hyundai . . . . . . . . . . . . . . . . . . 50

Billion Automotive . . . . . . . . . . . . . . . . . . . . . 17

Mercedes-Benz . . . . . . . . . . . . . . . . . . . . . 9, 23

Blowtherm USA . . . . . . . . . . . . . . . . . . . . . . . 39

Mercedes-Benz Wholesale Parts Dealers . . . . 61

I-CAR Contributes $225,000 to CREF . . . . . . . 50

BMW Wholesale Parts Dealers . . . . . . . . . . . . 52

MINI Wholesale Parts Dealers. . . . . . . . . . . . . 50

KSI Donates $250,000+ to Support

Bob Hook Chevrolet . . . . . . . . . . . . . . . . . . . . 40

MOPAR Wholesale Parts Dealers. . . . . . . . 36-37

Brunswick Auto Mart . . . . . . . . . . . . . . . . . . . . 7

Morrison’s Auto Parts. . . . . . . . . . . . . . . . . . . 30

Classic Chevrolet . . . . . . . . . . . . . . . . . . . . . . 51

Nissan/Infiniti Wholesale Parts Dealers. . . . . . 54

Classifieds . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

Patrick BMW MINI . . . . . . . . . . . . . . . . . . . . . 46

Courtesy Subaru . . . . . . . . . . . . . . . . . . . . . . 47

Patrick Hyundai . . . . . . . . . . . . . . . . . . . . . . . 42

Dent Fix Equipment . . . . . . . . . . . . . . . . . . . . 43

PPG Refinish . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Dent Magic . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Prima Welds. Inc . . . . . . . . . . . . . . . . . . . . . . . 6

Diamond Standard Parts . . . . . . . . . . . . . . . . 45

Richfield-Bloomington Honda. . . . . . . . . . . . . 44

Eckler’s Automotive . . . . . . . . . . . . . . . . . . . . 29

SATA Dan-Am Company . . . . . . . . . . . . . . 20-21

ECS Automotive Concepts . . . . . . . . . . . . . . . 10

Shaheen Chevrolet Parts Warehouse . . . . . . . 11

Equalizer Industries, Inc. . . . . . . . . . . . . . . . . 27

Spanesi Americas . . . . . . . . . . . . . . . . . . . . . 18

Gandrud Parts Center. . . . . . . . . . . . . . . . . . . 25

Subaru Wholesale Parts Dealers. . . . . . . . . . . 56

GM Wholesale Parts Dealers . . . . . . . . . . . . . 55

Symach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

on ‘The Changing Landscape in

GYS Welding USA. . . . . . . . . . . . . . . . . . . . . . 28

The Porsche Exchange. . . . . . . . . . . . . . . . . . . 8

Certified Repair’ . . . . . . . . . . . . . . . . . . . . . 24

Honda-Acura Wholesale Parts Dealers . . . 32-33

The Sharpe Collection of Automobiles . . . . . . 34

Hyundai Wholesale Parts Dealers . . . . . . . . . . 53

Toyota Wholesale Parts Dealers . . . . . . . . . . . 60

Infiniti of Naperville . . . . . . . . . . . . . . . . . . . . 48

U.S. Chemical & Plastics . . . . . . . . . . . . . . . . 13

Jack Phelan Chrysler-Dodge-Jeep-Ram

VanDevere Chevrolet . . . . . . . . . . . . . . . . . . . 15

Would Be Disruptive . . . . . . . . . . . . . . . . . . 60 BMW Recalls 183,000 Vehicles for Takata Airbag Inflators . . . . . . . . . . . . . . . . . . . . . . 58 Body Shop Owners Can Sell Their Short Pays to Lawyer-Owned StopShortPays.com. . . . . . 1 CARSTAR Conference To Be Held July 10–12 . . 14 CARSTAR EPG Set To Drive Network Performance . 8 Color Match 101: A Visit to Axalta’s Customer Experience Center. . . . . . . . . . . . . . . . . . . . 28 GEICO Files Lawsuit Against Auto Glass Shop Suspected of Fraud . . . . . . . . . . . . . . 61

INDEX OF ADVERTISERS

AASP-MO Gateway Collision Chapter Meeting

KSI Auto Parts has contributed over $250,000 in financial and inkind support for collision repair schools through the Collision Repair Education Foundation. KSI contributed $25,000 to support CREF last year and initiated a program to donate parts to collision school programs. Through the parts donation program, the company has contributed $240,000 in parts to schools. The monetary contribution assists CREF’s ability to offer collision school tool and equipment grants and student scholarships

Autobody News Box 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

CREF’s Mission . . . . . . . . . . . . . . . . . . . . . . . 3 Legislation To Enhance Cybersecurity Training. . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Modules Added to Estimatescrubber.Com . . . . 16 MWACA TTEF Awards Four $1,000 Scholarships . . . . . . . . . . . . . . . . . . . . . . . . 19 New Car Technology Benefits Drivers, But How Does It Affect Body Shops? . . . . . . . 1 NORTHEAST 2019 Features OEM Panel

Payscape, SCRS Partner on Member Benefit . . 54 PPG Honors CHC Paint & Body Shop Supplies . 19 Speak at CIECA CONNEX 2019 in Charlottesville, VA . . . . . . . . . . . . . . . . . . . . 61 Sponsor, Repairer: Texas Insurer-OEM Procedure Bill Needed to Give TDI Power . . . 1

of Countryside . . . . . . . . . . . . . . . . . . . . . . 31

VanDevere Kia . . . . . . . . . . . . . . . . . . . . . . . . 15

Kelly BMW . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Volkswagen Wholesale Parts Dealers . . . . . . . 58

Kia Wholesale Parts Dealers. . . . . . . . . . . . . . 59

YesterWreck . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Launch Tech USA. . . . . . . . . . . . . . . . . . . . . . 63

Zimmer Chrysler-Dodge-Jeep-Ram . . . . . . . . 64

Laurel Auto Group of Westmont . . . . . . . . . . . 49

autobodynews.com / MAY 2019 AUTOBODY NEWS

Continued from Cover

TDI Bill

dresses steering and questionable prevailing rate surveys. Bill sponsor state Rep. Travis Clardy, R-Nacogdoches, told the committee during his introduction of HB 1348 that he had thought steering and other issues including repairs were addressed in statute. However, the Texas Department of Insurance said it didn’t have enough specifics within existing law to deal with it Clardy said he had a “fundamental disagreement” with the TDI’s view of itself, arguing it should be an “advocate” and “protector” of consumers over insurers rather than a “go-between” for the two. Continued from Cover

APCIA Opposition

curred.” It also defines “like kind and quality” for aftermarket parts and addresses steering and questionable prevailing rate surveys. Woods told the Texas House Insurance Committee on Tuesday that no regulation confirms collision repairers will use the OEM repair procedures they’re billing for. “They’re gonna charge a $250 blueprint fee, which (they) do now,” Woods said, defining this as the time spent researching repair procedures. “They’ll do that, but there’s no guarantee anywhere that they actually will do that,” he said. “And most of ’em are gonna actually follow— I mean, 98, 99 percent are gonna follow the manual step by step. But you’re still gonna have folks out there that will glue a roof on, cover up the work, and send it back out on the road.” Fraud and un-‘workmanlike’ behavior Woods is essentially arguing that because 1-2 percent of shops commit fraud, insurers shouldn’t be required to reimburse consumers who patronize the honest 98-99 percent of shops billing for OEM repair procedures they execute. Let’s take it a step further for the sake of argument. The Insurance Information Institute reports a mix of 4

But in deference to the agency’s comments, Clardy was trying to provide that specificity in the bill, he said. Lawmakers had a chance to give TDI the authority to “do the right thing” with HB 1348, Clardy said. “We have exhausted every effort before we came here” with the bill, Auto Body Association of Texas President Burl Richards (Burl’s Collision Center) told the committee during the hearing. He mentioned three separate meetings with the TDI in 2018. “We continually were told that TDI has no jurisdiction, they have no authority and ‘You’re gonna have to pass legislation,’” Richards said. Richards said he was told repeatedly that TDI doesn’t recognize or enforce prevailing rate language but allows the term to appear in policies.

He said he was instructed to provide definitions. HB 1348 inserts a definition in state law that holds a “(p)revailing rate” to be a “transparent and unbiased” one “conducted by a third party” that uses the “posted retail labor rates and not direct repair program shop rates that operate under a contract with an insurer.” American Property Casualty Insurance Association state government relations VP Joe Woods argued that by excluding DRP rates, the law could capture “only the highest rates.” Houston Auto Body Association President John Kopriva (Kopriva Body Works) said DRP shops’ rates were excluded because those rates were part of an agreement with insurers. Repairers in direct repair pro-

grams often agree to artificially deflate direct repair program rates in exchange for a crack at referral volume from the insurers, so it’s apples-to-oranges to treat them as a reflection of the broader market. To use an example from another industry: If one hotel in town cuts a deal with a convention to rent a block of rooms for $100 less to lock in that business, it’s not like it’s reasonable for an average tourist to demand or expect to pay $100 less at every other hotel in town with no such guaranteed revenue stream. TDI was not among the agencies which responded to a Society of Collision Repair Specialists inquiry of every state department of insurance regarding regulators’ views of OEM repair procedures, based on the trade group’s website.

vendors and consumers contribute to what is an approximate 10 percent of loss costs being fraudulent across all insurance lines. Pretend that all auto insurance policyholders are completely honest and the entire 10 percent of loss fraud is committed by body shops. Woods’ argument still falls apart. Ninety percent of collision repairers and 100 percent of consumers still deserve to be covered frictionlessly for following the repair procedures developed by the manufacturer of the damaged car. Woods’ argument also backfires with a reference to the Seebachan v. John Eagle Collision center case, in which a Texas jury found a body shop responsible for much of the severity of a Honda Fit crash because the facility adhesive-bonded the vehicle’s roof. Jurors awarded $31.5 million; the plaintiffs and shop later settled for an unspecified amount. John Eagle Collision Center body shop director Boyce Willis in a deposition had agreed the facility bonded the roof with 3M 8115 adhesive despite little concrete evidence or engineering knowledge to support the decision—particularly as 3M and Honda instructions state otherwise. Honda OEM repair procedures demand a shop tack-weld the front and rear corner edges of the new roof and then perform a combination of two- and three-plate spot welds and MIG plug welds. More than 100 welds are required by the manufacturer, plaintiff Marcia Seebachan told

the committee during testimony supporting the bill. “It is unconscionable that companies can undermine this process by approving insufficient repairs,” Seebachan told the committee Tuesday. She said two of her injuries should have killed her, and another could have. The John Eagle case clearly shows shops who fail to follow OEM procedures in Texas can face consequences. Woods also forgets other checks on shops deviating from repair procedures and the appalling ones who go a step further and bill for OEM procedures they never did. First and foremost, the III reports that insurance fraud is indeed a criminal offense in Texas. Body shops in the state also can be sued by a consumer for breach of express or implied warranty under the Texas Deceptive Trade Practices Act. The Texas Supreme Court in Melody Home Manufacturing Company v. Barnes nailed down a vendor’s responsibility. “We hold that an implied warranty to repair or modify existing tangible goods or property in a good and workmanlike manner is available to consumers suing under the DTPA,” the court wrote. It proceeded to define the concept and declare it unwaivable: We define good and workmanlike as that quality of work performed by one who has the knowledge, train-

ing, or experience necessary for the successful practice of a trade or occupation and performed in a manner generally considered proficient by those capable of judging such work. We do not require repairmen to guarantee the results of their work; we only require those who repair or modify existing tangible goods or property to perform those services in a good and workmanlike manner. In this case, the breach of the implied warranty was plainly within the common knowledge of laymen and did not require expert testimony. The jurors had sufficient knowledge to find that the failure to connect a washing machine drain would not be considered good and workmanlike by those capable of judging repair work. Consistent with the trend in recent consumer protection legislation and sound public policy, we further hold that the implied warranty that repair or modification services of existing tangible goods or property will be performed in a good and workmanlike manner may not be waived or disclaimed. (Emphasis ours.) All three national collision trade groups and the national insurer and repair training organization I-CAR have said for years OEM repair procedures are the standard of care. Automakers, who develop repair instructions they’ve proven will fix the vehicles correctly, also hold shops should follow their procedures. Finally, some of the other 98-99

MAY 2019 AUTOBODY NEWS / autobodynews.com

See APCIA Opposition Page 27

autobodynews.com / MAY 2019 AUTOBODY NEWS

Midwest Association Events - May 2019 by Chasidy Rae Sisk

AASP-MO Gateway Collision Chapter To Host May Meeting AASP-MO’s Gateway Collision Chapter will host its monthly meeting on May 8, sponsored by Cooper Color and PPG, at Helen Fitzgerald’s in Saint Louis, MO. The meeting will feature a presentation by Stuart Pope of CCC1 on tips and tricks for writing estimates that positively impact a shop’s bottom line. Pope will teach attendees how to research, document and defend p-pages as well as best practices for using CCC1 to write fast, complete estimates. For more information, visit aasp-mo.org. IABA To Host May Meetings The Indiana Auto Body Association (IABA) has scheduled two chapter meetings for May so far. The Northwest Indiana chapter will meet on May 9 at Buddy and Pals in Crow Point. The meeting will feature a presentation from I-CAR on “Profit from Repairs Procedures.” On May 16, the Fort Wayne chapter will meet at the Lucky Moose Grille in Fort Wayne.

NABC Recycled Rides Donates 4 Refurbished Vehicles to Student, Charities in KS Two Kansas City charities and one deserving local college student recently experienced a life-changing event—the presentation of vehicles that will provide the student independence and the ability to attend class and provide the charities with the ability to support their constituents.

The donation was made possible by the National Auto Body Council’s Recycled Rides ™ program, Farmers Insurance®, Berkshire Hathaway Automotive, CARSTAR Cunningham Auto & Collision and Collision Works. The presentation was held at Farmers Insurance office in Olathe, KS. “Farmers Insurance® is dedicated to serving others and building stronger communities where our employees, customers and agents

MAY 2019 AUTOBODY NEWS / autobodynews.com

live and work,” said Brian Siegel, logistics manager for the Farmers Catastrophe Response Team. “We at Farmers® are honored to donate vehicles to organizations making a positive impact in our local community. We hope the reliable transportation will serve individuals and help meet their various needs.”

Schools Foundation, received a 2016 Ford Fiesta. This vehicle was also repaired by CARSTAR Cunningham Auto & Collision.

• Veterans Community Project in Kansas City, MO, received two vehicles: a 2010 Ford Fusion repaired by

NABC Recycled Rides™ is a unique program in which businesses representing all facets of the collision repair industry team up to repair vehicles to be donated to individuals and families in need of reliable transportation. Since the inception of the Recycled Rides™ program

CARSTAR Cunningham Auto & Collision and a 2016 Chevy Trax repaired by Collision Works in Wichita, KS. • The Boys & Girls Clubs of Greater Kansas City–Olathe Unit received a 2008 Jeep Liberty repaired by Van Chevrolet, a Berkshire Hathaway Automotive repair facility. • Carolyn Wing, a Pittsburg State University student who was nominated by the Olathe Public

in 2007, members of the National Auto Body Council have donated more than 2,000 vehicles valued at more than $36 million. Contributing partners to the program were Andy’s Tow, Auto Tow & Recovery, Auto Zone, Blue Springs Ford, 3M Automotive Aftermarket Division, Copart, 800 Charity Cars, ColorVision, Howard PDC, Alloy Wheel, KC Bumper Services, Keystone, PPG, Safelite and Van Chevrolet Service Dept.

“We at Farmers are honored to donate vehicles to organizations making a positive impact in our local community” — Brian Siegel

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autobodynews.com / MAY 2019 AUTOBODY NEWS

Collision Repair Shop Owner Returns to Avon, IN, as a Top Custom Car Builder by Melissa Gibson, Hendricks County Flyer

Quint Walberts, owner of Kustom Kolors Collision Repair, Inc. in Avon, IN, drove home from Detroit, MI, in March as one of the top eight custom car builders in the world. What started eight years ago as a continuation of his lifelong hobby resulted in a 1941 Willys, with fourstage pearl paint, hand-fabricated interior and an AA5 engine backed with a TH400 and Moser Wavetrac rear with 4:11 gears. The 67th Meguiars Detroit Autorama has been widely recognized as one of the top car competitions in the world. Out of the 21 cars eligible for the Great 8 recognition and ultimately, the Riddler award, Walberts placed in the top eight. “I couldn’t believe it. When they pick you for the Great 8, you’re already a winner,” Walberts said. “I was competing against $1 millionplus cars and didn’t have near that in my car. I relate it to the Grammys in Hollywood; there’s nothing better. I don’t think anyone from Indiana has ever made the Great 8.” Walberts has owned and operated his own collision repair shop for the past 28 years.

“Ever since I’ve been a teenager, I’ve been doing it,” he said. “I just like taking something and making it look like something great; something most people can’t do. I like working with my hands and my hobby, more or less, became my job.”

The four-stage pearl custom paint job makes the car appear violet, blue or magenta, depending on environment and lighting

He’s always enjoyed bringing his custom builds to local hot rod shows and the Danville Cruise-In Fridays, but this is the first time that Walberts created something he thought was ready for the big time. “I had been up there to the show just to check it out,” he said. “I started thinking about competing and thought maybe I’d have a chance. A lot of them in competition are guys that have hired someone to build a car, just to

CARSTAR EPG Set To Drive Network Performance

The CARSTAR proprietary EDGE Performance Group will continue to drive performance improvements across the CARSTAR network through national repair processes, performance standards and focused training on delivering those standards. To provide handson training, CARSTAR hosts zone-aligned regional EDGE Performance Group (EPG) meetings to allow more CARSTAR franchise partners to participate in the valuable training program. The winter 2019 EPG meetings were hosted this February in Tampa Bay, FL; Dallas, TX; and Denver, CO. At the meetings, more than 85 CARSTAR franchise partners, managers and team members heard from their zonealigned corporate partners on important updates specific to their zone. These updates included marketing, insurance sales and development. CARSTAR’s analytics team also hosted a training breakout session on CARSTAR’s new EDGE Scoreboard. 8

MAY 2019 AUTOBODY NEWS / autobodynews.com

win the Riddler. A lot of them couldn’t believe I had built it myself and I was the owner of the car. The rumor was that the car that won the Riddler took 12 years to build, and they put about $3 million in the car.” Building it himself, Walberts said, allowed him to have a little over $100,000 in the car, but if he had built it for someone else or hired someone, it would have cost closer to $500,000. The Great 8 was announced in late March before the Riddler (top prize) was announced a few days later. Walberts wasn’t even in the room when his car was “flagged” as a winner. “When we walked in the door Friday morning, the flags weren’t displayed yet, so we sat by the car for about a half-hour or so, and I didn’t know if I wanted to sit there and watch the judges put the flags in the displays,” he said. “We left and went to breakfast and when we came back an hour later, I had a flag in my display. That’s when the media started swarming.” He rests on knowing he’s one of the best custom car builders out there. The accolades have also helped his business. “After I made it, it opened a lot of doors,” Walberts said.

“McGuire’s Products wants to sponsor me for a year and I was invited to the Builders Showcase in Louisville, KY, in a few weeks. If you receive an invite, you can advertise your shop.” Walberts created a custom color by experimentation. The blue/violet color of the Willy stands out. Walberts said, “People just gravitated to it. I’m even impressed with it. I knew it looked neat but didn’t really grasp how neat it would look on the car. “It’s crazy how it works; inside it looks like a blue or violet color but outside it looks violent and magenta when the sunlight hits it. It’s from the different pearls that I used to create the four-stage effect.” Now that the car has been in competition, Walberts said he’ll continue the indoor circuit for a year and eventually switch to outdoor events, but he’s already got another project in the works. “Eventually, I’ll enjoy this one more and drive it down the road,” he said. “At that point, in a few years, I’ll be ready for a new one.” Kustom Kolors is at 9233 E. U.S. 36, Avon, IN. We thank Hendricks County Flyer for reprint permission.

autobodynews.com / MAY 2019 AUTOBODY NEWS

Are You Unwittingly Driving A Salvaged Car? by Suzanne Potter, Public News Service-MO

Thousands of drivers in Missouri could be driving cars that have been previously totaled in an accident and never even know it. That’s because current law says that if the car is more than 6 years old, the title does not have to be stamped as salvage. In March, a proposed new law that would change that—SB 369—is expected to get a hearing in the state Senate Transportation, Infrastructure and Public Safety Committee. Jason Levine, executive director at the Center for Auto Safety, said drivers have a right to know what they’re buying—no matter how many years the vehicle has been on the road. “People should know that a car has been beyond 80 percent or more damaged,” Levine said. “And this is particularly of concern when things like flooded cars are at risk. It’s really a consumer education bill.” SB 369 would remove the age limit on salvage vehicles, so any car that has been totaled will forever have “salvage” on its title. Levine said some salvage cars can be repaired so they are safe to drive, but many can have invisible damage to the sensors and

rot from the inside out. Opponents of the bill say consumers can already get the necessary information with a title search and that the change could hurt sales of pre-owned cars. Levine said that after Hurricanes Harvey and Irma, lots of cars that had been flooded ended up for sale in states with weak salvage title rules. “After there’s a flood somewhere else in the country—and we certainly saw this the summer before last in Houston, TX—a lot of those vehicles unfortunately get shipped around the country,” he said. “Some of them are fine, but some of them should probably never be driven again.” Missouri just declared a state of emergency because of flooding, and the spring rainy season is just getting under way. So there will likely be a lot of salvage vehicles coming out of the ShowMe State and across the Midwest in the coming months. Experts advise consumers to buy a report showing a vehicle’s entire history and to get the car checked out by a mechanic before purchasing a used vehicle. We thank Public News Service-MO for reprint permission.

MAY 2019 AUTOBODY NEWS / autobodynews.com

AASP-MO Gateway Collision Chapter Meeting Focuses on I-CAR Updates by Chasidy Rae Sisk

On March 13, AASP-MO’s Gateway Collision chapter held a meeting at the Post Sports Bar & Grill in Creve Coeur, MO.

Attendees had an opportunity to network before and after the meeting presentation on March 13

The event was sponsored by Enterprise Rent-A-Car and attracted more than 20 attendees. According to AASP-MO Executive Director Ron Reiling, “We always want more attendees to benefit from our programs. The attendees said it was a very worthwhile evening.”

The meeting began with a meet-and-greet during dinner, giving attendees the opportunity to network with their peers. Tricia Belz of Enterprise Rent-A-Car then provided an update on Enterprise and its ARMS program. Robbie Saladino, I-CAR’s business development manager for the south central region, updated attendees on what’s new and exciting at ICAR and discussed what to expect from its updated website, which will roll out April 1. He also taught attendees how to navigate the site. Reiling believes it’s important for industry professionals to come together to get updated information on what’s impacting their businesses. He shared, “Getting the word out and providing the information shops need to know to be the most professional and the best they can be. Unity is a key component to change. No one person knows as much or can accomplish as much as all of us working together.” For more information on AASP-MO, visit aasp-mo.org.

High Pothole Repair Costs Lead to Facebook Page Warning Drivers in NE Potholes repair is booming business right now for Omaha, NE, auto repair shops. Mechanics at Charlie Graham Great Plains Auto Body said if you hit one hard enough, fixing your damaged wheels and tires could cost you hundreds of dollars.

damage. “You’re talking $400 or $500 for a standard wheel,” he said. “If you have one of the fancy wheels, they’re closer to $700 or $800 per wheel.” People around the city have taken matters into their own hands. Many have called the city to com-

Because of all the potholes in Omaha, NE, mechanics said they have received around 15 to 20 orders over the past three weeks. The repairs are going to cost drivers a hefty price, ranging between $400– $800 per wheel. “I think this is about the worst year I’ve ever seen,” said Greg MCcary, who has worked as a mechanic for more than 40 years. He said the majority of work orders he’s received over the past three weeks have been for pothole

plain, but one man decided to create the “Potholes of OMAHA” Facebook page for people to post their pictures and videos. “It’s kind of like an avenue for people to vent,” said creator Ryan Brackett. “People can complain or show damage to their vehicle.” Brackett said it only took a month for the page to gain traction. He said he experienced around $1,200 of damages to make his car drive-able and complained to the city.

by Jenna Liston, FOX42

“I think this winter really exposed the city on how they maintain these roads.” “You know, blaming the weather is really deflecting responsibility.” — Ryan Brackett

“I think this winter really exposed the city on how they maintain these roads,” said Brackett. “You know, blaming the weather is really deflecting responsibility.” The page gives almost 3,000 followers the chance to warn one another about what is on the roads. Many of the photos and videos have been turned into memes to joke about how severe the damages are. “You can say whatever you want to say; this is a voice for everybody,” said Brackett. Mechanics said that for now, the best way to try to avoid damaging your car from these potholes is to not brake right away and to slowly cross over them. As of the afternoon of March 12, the city announced that the most recent closure for pothole repairs is the south lane in Elmwood Park. The closure was expected to be lifted sometime later evening. We thank FOX42 for reprint permission.

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Accuvision-3D Measuring Approved by APN

The Accuvision-3D measuring system from Arslan Automotive Canada Ltd., has now received approval from Assured Performance Network, Laguna Hills, CA for bodyshop Certification programs in the USA. Assured Performance Network works with the top Auto Manufacturers in North America to identify, certify, and promote thousands of best-in class repair shops through one joint-effort program. This recognition is one more step in Arslan Automotive’s expansion plans in the US market. At present Accuvision-3D has established sales coverage in 24 states and continues to build its’ USA dealer network. Increase production, save time and money with Accuvision3D, the most accurate, quickest, and simplest 3-D measuring system. For more information, contact Arman Gurarslan at 800-4658575 or visit Accuvision-3D.com.

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Women in Automotive & Collision Holds Feb. Meeting at North County Tech by Chasidy Rae Sisk

Women in Automotive and Collision (WAC) held its first lunch meeting on Feb.19 at North County Technical High School in Florissant, MO. The school’s collision instructor, Jason Buchheit, hosted the meeting. According to WAC President Shelly Jones, “The attendance was good for our first lunch meeting, so we will alternate lunch and dinner meetings every other month this year. “Mr. Buchheit shared information about the school’s transportation program, which includes automotive and collision programs. In attendance were WAC members, North Tech Principal Wallace, eight students from Mr. Buchheit’s senior class and representatives of companies that sponsor the group. That’s a perfect mix of industry collaborating with students and educators. It will take a group effort to get the word out.” WAC members discussed the group’s initiatives for 2019 and announced they will close their Facebook group to focus on their Facebook page: Facebook.com/WACstl. Sponsorship is another important initiative for 2019. WAC Secre-

tary Kelle Oeste has begun announcing the association’s new sponsors on the Facebook page to thank them and introduce them to WAC’s followers. WAC Vice President Jess Crump has been adding sponsors to the new website.

Jason Buchheit, collision instructor, presents to WAC members during their Feb. 19 meeting at North County Tech

Jones shared, “We have included a corporate membership with most sponsorship levels. A corporate membership allows one person from a sponsoring company to participate in meetings and events. This membership follows the company and not the individual. Individual membership follows the person and is $50.” WAC’s primary focus is “to engage young people with an interactive

Lincoln, NE, Auto Body Shop Planning 2nd Location by Staff, Lincoln Journal Star

A Lincoln, NE, auto body shop is planning to expand with a second location.

allow the company to complete repairs more quickly. “Over the past several years, we have carefully examined all the inefficiencies in the auto body repair process and have created a system to remedy them all,” Dan Morrow,

Morrow Collision Center is planning a second location at 84th and Adams. Credit: Morrow Collision Center Facebook page

Morrow Collision Center, which has been at a location near 22nd Street and Cornhusker Highway since 2002, said it plans to build another location at 84th and Adams streets. The new shop, which will be on the southwest corner of the intersection, will have 26,000 square feet of space, which is about five times larger than the current location. Morrow plans to break ground this spring and hopes to have the new location open sometime this fall. Morrow said in a news release that the new facility is being designed with efficiency and reduction of waste in mind and should 12

Morrow Collision Center President Dan Morrow and his family sign documents to complete the purchase of land for the company’s new location at 84th and Adams streets. Courtesy photo

Morrow Collision Center president, said in the news release. “This new facility is designed around that process.” We thank Lincoln Journal Star for reprint permission.

www.autobodynews.com

MAY 2019 AUTOBODY NEWS / autobodynews.com

booth at job fairs and other events,” Jones explained. “We will also continue to look for opportunities to speak with parents and educators.” On Feb. 22, Jones and WAC Treasurer Julie Hemann presented to educators at St. Louis Community College during a panel on recruiting women into nontraditional occupations. The panel took place at the Shaping the Talent of Tomorrow conference, hosted by the St. Louis School – Business Partnership. According to Jones, “Around 75 educators from St. Louis County schools attended the conference, and nearly all schools were represented. The opportunity fits our WAC mission perfectly. Not only were there educators in attendance, but also representatives from other large organizations. While there, Julie and I had conversations with representatives from Ameren, Project Lead the Way and Girl Scouts of the USA. There will be follow-up meetings to learn how we can work together to engage female students in the automotive industry.” During the SkillsUSA contest hosted by Ranken Technical College, WAC member Gene Slattery and WAC sponsor coordinator Sheena

Wagner, who is a parent of a Ranken collision student, promoted the association and assisted by interviewing students in the competition. WAC’s next membership meeting will be held on March 19 at 5:30 p.m. Jones shared, “We have many job fairs and a car show to attend in the next couple of months, plus WAC members are working on setting up road trips to vo-tech schools outside of the St. Louis area. The goal would be to learn about their automotive programs and how we can help encourage more students to seek jobs in the industry. “Followers of our Facebook page will start seeing potential events posted with a request for WAC members to sign up if they would like to work the event on behalf of WAC. People within the industry may see these events posted and decide to have their company participate as well. Imagine the impact of not only having a WAC booth at a middle school job fair but also 10+ industryrelated companies. Now that would make quite a statement!” For more information on WAC, visit wacstl.com.

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USC hem m.com m autobodynews.com / MAY 2019 AUTOBODY NEWS

CARSTAR Conference To Be Held July 10–12

As it celebrates its 30th anniversary, CARSTAR is planning a gathering in Chicago this summer. CARSTAR will host the CARSTAR Acceleration 2019 conference from July 10–12 on the shores of Lake Michigan at the Hilton Chicago. The 2019 CARSTAR conference is the third annual North American event that integrates the U.S. and Canadian conferences. CARSTAR Acceleration 2019 will kick off with a unique “Soul Stroll” walk for cystic fibrosis on Wednesday morning, where the organization will honor the top Shine Month fundraisers and walkers will experience beautiful Grant Park. Opening ceremonies will follow that afternoon, then CARSTAR Conference guests will suit up for an evening at legendary Wrigley Field, where attendees have the opportunity to take simulated batting practice, throw a few pitches and tour the Ivy Confines.

AASP-MN Legislative Initiative Cut Short The AASP-MN proposal to make an insurance company refusing payment for a repair procedure that is called for by an original vehicle manufacturer an unfair claims practice was recently pulled from the House Commerce Committee agenda, effectively ending prospects for passage this legislative session. The bill initially sought to clarify that an insurer’s obligation to assume all costs for the “satisfactory repair” of a vehicle includes completion of vehicle repairs consistent with OEM specifications. After two meetings with representatives of the insurance industry and an exchange of proposed amendments, the repair industry refocused its attention on adding a new provision to the unfair claims practices established at Minn. Stat. § 72A.201. The new language, to be introduced as an “Author’s amendment,” would have made an insurer’s denial of payment for repair operations and procedures performed in accordance with the original vehicle manufacturer’s documented technical procedures an unfair claims practice. The proposal would not have changed current law regarding the types of

MAY 2019 AUTOBODY NEWS / autobodynews.com

parts to be used in the repair of a damaged vehicle. The bill, House File 2234, was scheduled for hearing on March 15 in the House Commerce Committee. However, late on March 14, the Alliance was contacted by the bill author, Representative Ruth Richardson, who shared concerns of the committee chair, Representative Laurie Halverson, regarding the lack of agreement between the insurance industry and the repair industry. The chair opted to pull the bill from the committee agenda in favor of continuing discussions between the two industries with the intention of trying to find accord. While it was disappointing to have the bill pulled just hours before the hearing, the author, Representative Richardson, has indicated a willingness to secure additional time with Chair Halverson to more thoroughly brief her on the importance of AASP-MN’s proposed change. There has also been discussion about having an “informational hearing” to better educate the committee as a whole about the repair industry’s issues and concerns. AASP-MN extends its thanks

to members Will Latuff (Latuff Brothers Auto Body, St. Paul) and Darrell Amberson (LaMettry’s Collision, Twin Cities), who were prepared to testify in support of House File 2234. AASP-MN also worked closely with the Alliance of Automobile Manufacturers, Automotive Service Association and Society of Collision Repair Specialists, who provided counsel and prepared letters and supporting documentation for the hearing. “We want to maintain those good working relationships and expand our network of contacts at the Capitol in hopes of pressing forward with this issue in the coming months. We will continue to work with legislators to push this approach and provide context,” said Kevin Walli, AASP-MN lobbyist. “I appreciate that several associations are working closely on this worthwhile effort for the benefit of our industry and its consumers. I remain optimistic that we can sooner or later accomplish our goal of legislation that protects the collision repair shop’s inclination to repair vehicles properly, according to vehicle manufacturer procedures,” added Amberson.

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WACTAL’s 2019 Conference Is an Educational and Networking Success by Chasidy Rae Sisk

From March 15–16, the Wisconsin Auto Collision Technicians Association (WACTAL) hosted its 2019 WACTAL Conference at the Best Western Green Bay Inn Conference Center. As usual, the event agenda was jam-packed with educational and networking opportunities throughout the conference.

reception at the automobile gallery. Peterson recalled, “A vintage VW Bus, 1919 Dort Speedster, 1972 Chevelle, 1932 Cadillac Coupe and

task at hand—scan each of the six vehicles set up for the program. “Thank you to Mark Williams, Williams Auto Body, for the use of his shop for the hands-on program. And a big thank you to Broadway Automotive and LeMieux Toyota for providing some vehicles for the program.”

A 1972 Chevelle was just one of the classic vehicles on display during Friday night’s reception at The Automobile Gallery

WACTAL’s 2019 Conference commenced with “Building a Profitable Business,” presented by Bill Kinnard, president of Grandy & Associates. WACTAL’s Sue Peterson shared, “Are wages a fixed or variable overhead? Actually, wages can be both. Overhead, cash flow v. profit and loss; billable and non-billable hours, and much more were discussed during Bill Kinnard’s presentation.”

I-CAR senior vice president Nick Notte provided an I-CAR update

Next, I-CAR senior vice president Nick Notte provided an I-CAR Update, which was followed by a WACTAL membership meeting. The evening concluded with a

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Kempfer’s scan class allowed attendees to break into small groups for some hands-on practice

Sponsors included Acuity Insurance, BASF, Broadway Automotive, Finishmaster, Gandrud Chevrolet, Keystone Automotive, LeMieux Toyota and PPG. For information on WACTAL, visit wactal.com.

VehicleOwnersGuide.com, a provider of technology, connectivity and information solutions to the Collision Repair market, announced the addition of customizable estimating SOP’s and consumer engagement modules to EstimateScrubber.com. Subscribers can now customize scrubber review results (SOP’s) using their shop specific verbiage and attached documentation in place of the default review results. Shops can create estimating SOP’s for individual insurance companies, vehicle manufacturers, fleet, walk-in or other customers. Estimating SOP’s leverage knowledge across all estimators in real time. It take the knowledge of the best shop estimator and makes it available to everybody. It also provides a mechanism for managers/ owners to provide instructions to their estimators. It has a place in small, large and MSO shops.

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SYMACH IS READ A Y TO RETROFIT T YOUR BODYSHO OP CONVENTIONAL SPRAY AY BOOTH BOO Ken Kempfer taught a hands-on class on preand post-repair scanning at Williams Auto Body

On Saturday, Ken Kempfer taught a hands-on class on pre- and post-repair scanning at Williams Auto Body. Peterson said, “The hands-on scanning program led by Ken Kempfer provided attendees the opportunity to scan several vehicles, look up and discuss the various codes, and determine how to proceed with repairs. Ken started out the morning with a brief explanation of what P, C, B, and U codes relate to; the difference between current, history and pending codes; and how/where to look up information. Attendees then broke into small groups and moved forward with the

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Bill Kinnard, president of Grandy & Associates, presented “Building a Profitable Business”

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To Our Loyal Customers Billion Automotive and our partners at General Motors, Ford Motor Company, and Chrysler would like to take this opportunity to apologize for the services provided this past winter. Many issues such as inclement weather, truck malfunctions and personnel issues hindered the customer service you know and come to expect from Billion Automotive. We have documented the issues and put processes in place to fix the issues before next winter arrives. Your shop needs accurate and speedy delivery from us and we are working towards that level of business you deserve. - Dale Zimmer

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Earl Kleckner Has Run Kleckner’s Collision Center for 42 Years in Danville, KY by Robin Hart, The Advocate-Messenger

The guys at Kleckner’s Collision Center love cars and trucks. “That’s what makes it more fun than work,” said Loren Arth as he seam-sealed a Jeep’s back panel before painting it. The Jeep had been struck by a dump truck, which crushed the back end, Arth said. They’ve been working on the vehicle for about two weeks and are ready to paint it so that it will look brand-new. Earl Kleckner started his body shop business 42 years ago in a small garage on North Second Street in downtown Danville, KY. He built a much larger, safer and environmentally friendly garage about 14 years ago on Thoroughbred Drive off of Perryville Road and now has three professional technicians working with him to repair and paint damaged vehicles. On March 4, a massive pickup truck used to haul cattle was nearly ready to be driven out the door after extensive repair work was done. Thanks to the expert talents of Wayne VonLinger and Arth, the truck will be better than ever, Kleckner said.

The entire interior had to be removed along with the bed and all the doors so that repairs could be assessed and made.

The guys at Kleckner's Collision Center are, from left, Loren Arth, Earl Kleckner Jr., Wayne VonLinger and Earl Kleckner Sr. Credit: Robin Hart

As VonLinger lay on the concrete floor attaching a running board, he said as he’s gotten older, he can still do the work; “it just takes a little longer.” Kleckner made a final alignment inspection and explained how the new bed had been placed on the truck. He made sure everything was aligned perfectly and demonstrated just how gently the tailgate could shut without slamming it. “It’s a perfect fit,” he said proudly.

MAY 2019 AUTOBODY NEWS / autobodynews.com

Kleckner said Arth is “an exemplary painter” and VonLinger is excellent with heavy mechanical work. They make a great team, Kleckner said. Kleckner’s son, who’s also named Earl, is new to the business. He has a degree in communications, but he’s learning the body shop business, especially working with customers, suppliers and insurance adjusters and how to handle lots of paperwork, his father said. Traditionally, late winter is a slow time around the shop, Kleckner said. “A lot of people like to wait until spring to repair damage from the winter.” The two most common incidents that bring vehicles in for repairs are backing into a car that’s not ordinarily parked in a person’s driveway and hitting a deer. “They’re all over.” Kleckner said he’s a “self-taught” body repairman and became intrigued with working on vehicles at a young age, as his father tinkered with them when he was just 10. When Kleckner was 12, he saved up $25 from his newspaper route and purchased his first car—a 1947 Plymouth—without his parents’ knowl-

edge. He said he and his brother hid the car in a field near their home in Ohio. “It was our little dirt tracker. We had it about a year before our parents found out about it.” When they did learn about the car, “They weren’t real thrilled,” but were glad the boys knew better than to ever take it out on the roads, Kleckner said, laughing. One day, Kleckner hopes to “semi-retire” and leave the business side of the body shop to his son and his expert team to continue doing what they do best. For years, he hasn’t had time to fly his model airplanes, and he wants to do a little fishing. In August, Klecker will turn 71. “I don’t feel like it. It’s kind of sticker shock,” he said. “It comes fast.” We thank The Advocate-Messenger for reprint permission.

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MWACA TTEF Awards Four $1,000 Scholarships by Chasidy Rae Sisk

On March 3, the Midwest Auto Care Alliance Technicians of Tomorrow Educational Foundation (MWACA TTEF) presented four $1,000 scholarship checks to vo-tech and college students pursuing automotive careers during the VISION Celebration of Independents Awards Dinner. The scholarship recipients were Zach Cypert, Jarod Hile, Carter Kabus and Kelsy Luers.

Kelsy Luers, Carter Kabus, Jarod Hile and Zach Cypert were each awarded a $1,000 scholarship from MWACA TTEF

Scholarship applications were accepted from high school, vo-tech and college students throughout the year. The scholarships are funded through donations TTEF receives. To qualify, a student must be pursuing a career in the automotive serv-

ice industry. Students are selected based on their academic accomplishments, including a recommendation from their automotive instructor, as well as financial need and their goals and pursuits within the industry. Cypert is a student at Oklahoma State University Institute of Technology and began his college career in October 2018. He is focused on learning about the industry’s latest technology, enjoys exploring complex diagnostic problems and hopes to own his own diagnostics business. His instructor, Ryan Lasarsky, joined him on stage to accept his scholarship check. Hile, also an Oklahoma State University Institute of Technology student, started his career as a United States Marine. He is passionate about the automotive industry and aspires to own his own shop. In addition to being a devoted husband and father of four, Hile spends a lot of his time at after-school ASE study groups and volunteering for veterans. Kabus, a full-time Washburn Tech student with a 4.0 GPA, attends school full-time and works part-time

at Doug’s Service Center in Topeka, KS. However, he still donates his time to volunteer efforts with Recycled Rides through his school. His leadership skills and eagerness to learn have impressed his instructors. Luers, a student at South East Community College, dreams of working on cars and would like to own her own shop or become an educator someday. She particularly enjoys working on engines and transmissions. As a female in a male-dominated industry, Luers works hard to overcome stereotypes and hopes to be an example to other women interested in the industry. She said, “I am going to work hard to be the best technician I can be and always strive for more.” Scholarship applications for the 2020 school year will be available in Fall 2019. MWACA encourages students pursuing an automotive industry career to apply. The association is always seeking industry support to fund future scholarships, and donations are tax-deductible because MWACA TTEF is a 501(c3) not-forprofit organization. For more information, visit mwaca.org.

PPG Honors CHC Paint & Body Shop Supplies

PPG announced that its automotive refinish business has named CHC Paint & Body Shop Supplies of Toronto, Canada, its 2018 Platinum Distributor of the Year. The annual award honors the distributor that demonstrates outstanding performance, loyalty, product knowledge, and customer service and support. John Parran, PPG director, Platinum Distributor program, U.S. and Canada, presented the award at the annual PPG Platinum Distributor Conference held Feb. 21–24 at the Loews Royal Pacific Resort in Orlando, Florida. The annual conference brings together PPG Platinum Distributors from across the United States and Canada. Pino Chiappetta, CHC president, and the company’s senior leadership and regional managers accepted the award on behalf of the CHC organization.

autobodynews.com / MAY 2019 AUTOBODY NEWS

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At Jerry’s Body Shop in Mankato, MN, Going Green Has Always Been a Focus by Dan Greenwood, The Free Press

Going green as a business strategy comes in many different forms. Some of the more obvious examples are recycling and using energy-efficient light bulbs or solar panels.

Kyle Reedstrom does a video chat on his phone with an adjuster in the shop at Jerry’s Body Shop. Credit: Pat Christman, The Free Press

Jerry’s Body Shop, which has been a Mankato, MN, mainstay to a loyal network of customers since 1971, has built a reputation for its innovative approaches to being environmentally friendly. The big change the body repair shop made was incorporating the use of water-based paints instead of solvents whenever possible. Solvents have been shown to be a key contributor to ground level ozone, according to the U.S. Environmental Protection Agency (EPA), exacerbating damage to the lungs and throat. “With the waterborne paint, we’re about 75 percent less hazardous waste disposal on the paint,” said Geri Kottschade, who co-owns Jerry’s Body Shop with her husband, Jerry Kottschade. “We’ve been waterborne for about seven years now and have definitely seen a decrease in the byproducts and the gun washer as well. You don’t have that harsh chemical going through the gun.” There has been an uptick in demand for waterborne paint in the automotive industry as states have lined up to curb the uses of industrial solvents. Eleven states currently regulate the amount of volatile organic compounds that solvents emit into the air, although Minnesota is not included. Cathy Rusnak, segment communications manager for PPG Industries, the company that supplies waterborne paint to Jerry’s Body Shop, said many companies are making the switch without any regulations requiring them to do so. “What’s amazing to us is it 22

began as a way to meet regulations, but we have a lot of shops that don’t have to meet regulations that have adopted the waterborne technology,” said Rusnak. “It’s a way to become more sustainable but also it’s a great product for color-matching capability, and it’s easy to use.” Jerry’s Body Shop originally opened a shop on Rock Street at what used to be an old carriage repair shop. Fifteen years later, they realized they had outgrown the downtown space and decided to relocate in 1987 to their current location at 1671 E. Madison Ave. in Mankato. At the time, that part of upper Mankato was composed of soybean fields. It was an unusual business move to relocate there at the time and build from the ground up, said Jerry Kottschade. “When we moved up here, the word on the street was we wouldn’t make it six months,” Jerry Kottschade said. “They thought we’d go broke, too much money spent.”

Geri Kottschade, who co-owns Jerry’s Body Shop with her husband, Jerry Kottschade. Credit: Pat Christman, The Free Press

More than three decades later, they continue to enjoy a reputation for being one of the most popular auto body shops in the area. A walk into the main office feels like a greenhouse, with tropical plants and palm trees that the couple says have thrived there for years. Another change they made around the same time as switching to waterborne paints was adding solar panels to their roof. Other businesses in town that added solar panels for electricity have said the move made financial sense, but Jerry Kottschade said that was not their initial reason for installing them. “It was the right thing to do,” he said. Some environmentally minded changes they’ve made have actually cost them more. The clear coat paint they use is still the thicker, solventbased application. Those filters are

MAY 2019 AUTOBODY NEWS / autobodynews.com

changed quarterly, and even though the EPA doesn’t deem them as hazardous waste because the paint is dry, the Kottschades opt to incinerate them rather than put them in a landfill. “[Getting] rid of the filters is probably about $2,800 to dispose of them that way versus just putting them into the garbage can,” Geri Kottschade said. Geri Kottschade said when they installed the solar panels, got rid of Styrofoam cups and began reusing and recycling office supplies, they advertised those changes, but their longevity gives them an advantage. A sizable portion of their customers return after having their car body repaired at the shop. “30–40 percent are repeat customers, and word-ofmouth is just about as big,” she said. The recycling spreads to the vehicles themselves as well. About onethird of their customers who come in to have parts replaced following an accident will get a door, fender or roof from another donated vehicle dropped off at a salvage yard. Geri Kottschade said that a lot of people

get nervous about putting a recycled part on their car, but if it’s a good quality part—clean of rust and damage—it’s a good, viable option.

Darrell Lowe straightens a bent part of a truck. Credit: Pat Christman, The Free Presss

“I remember years ago, I had a gal that came in that had a car that was beyond repair; we couldn’t fix it for her,” Geri Kottschade said. “It was emotional for her to get rid of the car, very difficult. She goes, ‘What’s going to happen to it?’ I said, ‘It will probably become a donor car. The parts will be used on another car going down the road.’ It made her feel so much better; it’s almost like organ donating.” We thank The Free Press for reprint permission.

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NORTHEAST 2019 Features OEM Panel on ‘The Changing Landscape in Certified Repair’ tablish relationships with local dealers because many OEMs require One of the highlights of the 2019 dealer sponsorships,” he said. NORTHEAST automotive services Reichen also noted that new show was the OEM repair panel on equipment may be needed as new “The Changing Landscape in Certi- models and materials emerge. fied Repair and Understanding the “Once you sign on, OEM certiOEM Repair Procedures.” fication is a journey, not a destinaModerated by Ron Reichen of tion,” he said. Clark emphasized the Precision Body & Paint and Barry importance of looking at equipment Dorn of Dorn’s Body & Paint, the specifications to avoid redundancies panel consisted of Aaron Clark whenever possible, though he admitfrom Assured Performance, Leigh ted that some OEMs require specific Guarnieri from Honda, Mark equipment. Allen from Audi, Kenneth Park Allen added, “When we revamp from Volvo, Dave Gruskos from our repair procedures, we try to mainReliable Automotive Equipment, tain relevance so new equipment isn’t and Rick Miller from Wadsworth necessary and we can help keep the International. budget in line.” After explaining the purpose Dorn asked panelists if there of the panel discussion, Reichen have been changes since last year rejumped right in with his first ques- garding how a shop’s ability to proption regarding how shops manage erly utilize equipment is monitored. the equipment required by certifiGuarnieri said Honda requires cation programs. that certain classes be taken and Gruskos explained, “There’s no added that training has improved camagic piece of equipment to keep pability. Gruskos added, “Reliable everyone happy. OEMs do a lot of puts a lot of effort into training our testing, so you have to get the spe- equipment because shops need to be cific list of equipment from the prepared to do it the right way. No OEM. Yes, things will change, and one wants the liability of performing more equipment will be required later a repair half-way.” because vehicles keep evolving, and Park said, “It comes down to the equipment has to evolve with the doing everything the right way. Cars cars. Before buying equiparen’t made the same way ment, do your research. Any they used to be, and they hastily made decision is a don’t take hits the same. Edbad decision.” ucate yourself [as] best [as] Allen agreed, noting that possible and invest wisely. OEMs crash-test around 75 The future is OE. There’s no vehicles per model and have such thing as simple repairs a whole subset of engineers Ron Reichen poses anymore, but OE certificaresponsible for testing collition gives shops a competiquestions to OEM repair panelists sion repair and documenting tive edge in their markets. the procedures along with OEs just ask that you repair providing a list of tools and the vehicles correctly. A equipment. After the initial lack of education and trainrepair, the vehicles are crashing will hurt you in the long tested again to ensure that the term and put your customers repaired vehicle holds up to in danger.” the OEM’s standards. Park also noted that it’s Reichen suggested that difficult to specialize in Moderator Barry shops determine which manmore than a couple OEs. Dorn asks how ufacturers they should seek “If you’re prideful in what shops’ ability to properly use certification from by looking you do, a few OE certificaequipment is in local parking lots to identions should be more than monitored by OEMs tify which brands are most enough. Most importantly, common. you want to be able to sleep at night “It’s important that you know because you know you’re doing the your market and research the preva- right thing. Safety has to be the top lent vehicles in your area. Then, es- priority,” he said. by Chasidy Rae Sisk

MAY 2019 AUTOBODY NEWS / autobodynews.com

Allen stressed that the most important tool in any shop’s toolbox is its technicians. “Why wouldn’t you keep upgrading that tool through edu-

Kenneth Park from Volvo, Leigh Guarnieri from Honda, and Dave Gruskos from Reliable Automotive Equipment

cation and training? Their shortcomings should be viewed as opportunities to bring them to greatness,” he said. Reichen added, “There have been a lot of changes in the collision repair industry, and it’s no longer a trade—it’s a skilled profession.” Miller expanded on that, explaining that during an assessment, Wadsworth International serves as an extension of the manufacturer. It evaluates the shop for a culture

change, including consistency in accepting changes. Clark added, “It’s a universal opinion that the bar has been raised, but there’s still a lot of room for improvement. Training is the biggest

Rick Miller from Wadsworth International, Mark Allen from Audi, and Aaron Clark from Assured Performance

deficiency of a lot of shops. While training may exist within the organization, it’s not being received by the person who actually repairs the vehicle. In the near future, shops can anticipate shifts in training requirements being reinforced for the individual actually touching the car.” The panelists encouraged shop See Changing Landscapes, Page 26

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Continued from Page 24

Changing Landscapes

owners to research equipment and buy the best they can by focusing on the capabilities of the equipment and how it can benefit the shop in the future. In response to Reichen’s question about how OEs and vendors ensure shops know how to use the equipment, Gruskos said, “When a shop buys our equipment, it comes with an instructor because we want to make sure the techs know what they’re doing, and we don’t want the liability of someone getting hurt because they don’t know how to use the equipment properly. I do my best to train everyone, but it can be challenging since techs want to do things their way. If we train them and they take OE classes, hopefully they’re using the equipment correctly.” Reverting the discussion back to shop culture, Guarnieri emphasized, “Nothing seems to [change a shop’s culture] quite as well as getting the techs to OE training facilities. They’ll come back with a different attitude because they see

how it could be and recognize their bad habits. When you achieve that culture change, you’re going to have a really good shop without monitoring your team every second.” The conversation then turned to paying technicians a flat rate. “Flat rates are a thing of the past,” Park said. When Clark’s shop switched from a flat rate, he shared, “I lost a little gross profit initially, but I earned it back and then some. It’s important to find the proper blend of productivity and quality to make your shop successful. An hourly rate allows you to allocate resources more fluidly, and anything you can do to improve the culture of training and learning is a win.” Gruskos reminded attendees, “We’re talking about people’s lives here, and you can’t put a guy on the clock and expect the same quality. The most important thing is a safe, proper repair.” Reichen added, “Highly skilled and trained people do highly skilled jobs. Your techs with the highest skill sets should be compensated at a higher level.” Gruskos noted, “Techs tell me they want to go to training but don’t want to be punished financially.

MAY 2019 AUTOBODY NEWS / autobodynews.com

Training should be rewarded, but many shops owners are fearful because they wonder how they’ll be able to protect their investment in a tech sent to training.” According to Allen, shops should see training “as a development plan and a succession plan. You’ll need to replace the experienced technicians retiring in the near future. Hire and train multiple techs at once to reduce the loss of productivity. This is an investment in the longevity of your business and helps drive us forward as an industry.” Additional topics included certified pre-owned vehicles, OEMs’ desire for brand loyalty, and the role of dealerships as sponsors for OEM certification. The OE representatives in attendance urged shops to reach out to them if they are unable to locate repair procedures on their websites so the procedures can be created. Everyone on the panel agreed that they anticipate an increase in parts restrictions as technology continues to develop. The panelists concluded by giving attendees an opportunity to ask questions.

Legislation To Enhance Cybersecurity Training

Two bills approved by a U.S. Senate committee in late March would provide ASA members one more tool to protect their shops from cyber threats. On March 27, the U.S. Senate Committee on Small Business and Entrepreneurship held its first markup of the 116th Congress approving three bills. Two of the bills being considered, S. 771, the Small Business Cyber Training Act and S. 772, the SBA Cyber Awareness Act, were both introduced by Chairman Marco Rubio (RFlorida). ASA wants to ensure its members have the best training and resources available to protect their shops and their customers from those who would do harm. If passed, the “two bills will give small businesses the tools they need to safeguard themselves against the growing cybersecurity risks of the 21st century,” Sen. Rubio said in a news release.

Continued from Page 4

APCIA Opposition

percent of shops Woods deemed honest and adhering to OEM procedures would probably be happy to post-repair-inspect their rivals’ work for a suspicious insurer or customer. Adjusters ensure repair quality? Woods’ testimony on repair procedures continued with another feat of logical gymnastics. He essentially made the case that insurers shouldn’t be compelled to pay for OEM repair procedures because the carriers are ensuring shops follow them. “So, this is a highly unregulated business,” Woods said. “The insurance adjusters are really the only people that … have any shot at regulating practices and quality.” Which is funny, because Nationwide just argued to the Pennsylvania Supreme Court in fall 2018 that it had no duty at all to verify quality (at least in Pennsylvania). “In the Bergs’ third question presented for this Court’s review, they seek to have this Court declare that

Nationwide itself had a duty under Pennsylvania law to verify that the vehicle, and presumably every vehicle that gets repaired pursuant to an insurance policy, was repaired properly and that its failure to do so is bad faith,” Nationwide wrote regarding Berg v. Nationwide. “This question does not warrant this Court’s review because no such duty exists, and even if it did exist it would not prove that Nationwide acted in bad faith.” (Emphasis Nationwide’s.) Earlier in its motion against the Supreme Court hearing the appeal, the carrier pointed out that it wasn’t necessarily checking for quality at all on the Jeep at the heart of the case. Those repairs were overseen by a Nationwide direct repair program shop. “Nationwide’s Steve Potosnak testified that Nationwide representatives typically went to Lindgren only to ensure that the repair shop was complying with its prior appraisals,” Nationwide wrote. “Potosnak specifically testified that he would review the quality of repairs ‘only if there was a complaint filed’ about a vehicle. Here, of course, there is no evidence whatsoever that any complaints

were raised with Nationwide. Thus, it is not surprising that there is no evidence that Nationwide re-inspected the Jeep. Likewise, it makes perfect sense that there are no completed reinspection reports. Rather than supporting the Bergs’ argument, the lack of a completed re-inspection form corroborates, rather than undermines, the fact that no repair inspection took place and that Nationwide was unaware of any issues. While the Bergs argue that ‘reinspection reports should exist in the claim file,’ … they fail to cite any precedent holding that a failure to perform re-inspections constitutes bad faith, as opposed to mere negligence.” (Emphasis Nationwide’s.) And State Farm certainly doesn’t seem to have caught John Eagle Collision’ infamous incorrect hail repair that Woods cited moments before. Instead, that case raised a question of broader insurance industry behavior that directly seems to suggest a need for bills like HB 1348. According to Willis’ deposition: A: (Adhesive) is — it is a accepted repair alternative, based on our cars and insurance certifications. Q: All right. And let’s have an

agreement today that we don’t use the word “insurance.” Can we — is that cool? A: Well, unfortunately we’re guided by insurance.· So—the—if you brought your car into my shop, right, the insurance company’s going to dictate what—how we’re going to repair your car. Q: I understand. But the — but you — your — as a certified body shop, you have to — you — the — the insurance company cannot trump the OEM specifications, correct, sir? A: Yes, they can. Q: Where does it say that? A: By not paying the bill. Auto Body Association of Texas board member Chad Kiffe (Berli’s Body & Fine Finishes) acknowledged during the hearing that body shops have a responsibility to do the job right—it’s not just an insurer problem. He noted that many shops still didn’t use OEM repair procedures. “It’s within ourselves as well,” he said. “But we need to take out the excuse that we can’t get paid for it.” For more on this and related stories search this article title at repairerdrivennews.com.

autobodynews.com / MAY 2019 AUTOBODY NEWS

Color Match 101: A Visit to Axalta’s Customer Experience Center by Barbara Davies

On March 21, I attended Axalta’s Media Day on behalf of Autobody News at its customer experience center in Concord, NC. This was my third year attending the event, the focus of which was “Speed & Accuracy Without Sacrifice.” Dan Benton, Axalta’s color match manager, started the day by providing an overview of Axalta’s Color Match and Color Theory history. Benton explained that Axalta has a rich 153-year history of innovation: • In the 1920s, Axalta developed the first sprayable paint used at a production plant. This reduced paint time from days to hours. • In 1990, Axalta developed the “Vindicator,” the first digital tool used to select a color formula based on where the vehicle was manufactured. It’s basically the car’s “fingerprint” and identifies where and when a car was made. • In 2017, Axalta launched its latest innovation, the Acquire™ Quantum EFX spectrophotometer, with

Why Is Color-Matching So Important? Painters need a precise color formula so they can match the paint color the first time and mix the smallest amount of paint necessary to repair the vehicle. They don’t get paid to remix or paint more of the vehicle than what was damaged. The faster they can get it through the shop, the better for the customer and the shop. Why Is Color-Matching So Difficult? What surprised me most was the fact that even though an OEM plant may use the same color mix for a new car line in two different parts of the country, the actual paint color could vary based on the temperature and humidity of each plant. After the color history overview, Benton brought us outside the training center to get some hands-on experience with how color matching happens in the real world. Bob Little, Axalta’s customer experience center manager, let us use his own grey Chevy Silverado truck for the demos.

Hands-On Demonstration #1: Fan Deck Each of the five media participants got a chance to hold the fan deck up to the truck and try to determine the closest match. As easy as that sounds, it wasn’t easy at all. Depending on the angle you looked at the fan deck against the truck, a different paint color in the deck looked like the perfect match. Very frustrating! There was no consensus among the group on the best match. Demonstration #1: Barbara tries out the traditional color Even though this type of fan deck to match the truck color color-matching is a bit “lowWi-Fi connectivity. This tool allows tech,” many painters grew up with it painters to key in the VIN to gener- and still use it. They know how to ate the exact color formula specific make slight adjustments to come up to that vehicle. with the exact color match. This is a skill, and not everyone has it; hence Benton then went on to explain the the need for Demo #2. art and science of color-matching. I had never really thought about all the Hands-On Demonstration #2: color variations available to painters. Our next demo involved the use of All the new colors that we see with Axalta’s Acquire™ Quantum EFX their micro-flakes that reflect light so spectrophotometer, fondly referred beautifully in different lighting condi- to as “the camera.” We learned that tions also make it very difficult to de- one benefit of the camera over the fan termine the exact color match needed chip is that the camera has a database to repair a vehicle. of tens of thousands of colors, while 28

MAY 2019 AUTOBODY NEWS / autobodynews.com

it pulls up the color match. Quick Results: The camera has Wi-Fi, so when we went inside the color-mixing room, the results were already there and provided the color mix formula that most closely matched the truck’s paint. This would allow the shop to then mix the specific formula without waste and paint just the secDemonstration #2: Bob Little, Axalta’s customer experience center manager, assists Barbara with Axalta’s Acquire™ tion of the vehicle that was Quantum EFX spectrophotometer, fondly referred to as damaged. Very efficient! Ax“the camera,” to take a digital color reading of the truck alta also offers an automated dispensing system for even the fan deck may only have 5,000 greater mixing accuracy. total color chips. Better Wash It First! Little’s truck looked clean, but we were quickly informed that the first thing a shop needs to do is thoroughly clean the part of the vehicle on which the camera will be used. We each took a turn using the camera to take a reading of a section of the car. Simple Process: Take the picture and plug into the computer, and

Some other interesting facts from the day: • Color Fashion Show: Each year, the five major paint companies (of which Axalta is one) put on a color fashion show of sorts for each of the OEM car manufacturers. In this presentation, they present a “color board” of what colors they believe will be the most popular 2–3 years down the road. See Color Match 101, Page 60

autobodynews.com / MAY 2019 AUTOBODY NEWS

Industry Insight with John Yoswick

—John Yoswick is a freelance writer based in Portland, Oregon who has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.

Panel Discusses Strategies for Shops Dealing with ADAS with Sublet Vendors, Insurers Just getting a basic invoice from a dealership or other vendor for any advanced driver assistance systems (ADAS) calibration work that your shop sublets to those companies may not be adequate evidence that the work was done fully and correctly, two speakers said at the Collision Industry Conference (CIC) earlier this year. “Remember, the liability still remains with you since you chose that third-party,” Roger Cada of Accountable Estimating said. “Some third-party providers don’t do all the things you think they should be doing. So how do you keep records to show that it was done correctly?” Jake Rodenroth of asTech noted that many of these calibrations are new procedures for everybody: dealerships, glass providers, mechanical repair shops—even companies such as his that are establishing centers specifically to conduct calibrations.

Jake Rodenroth of asTech said shops shouldn’t presume dealerships or other sublet providers necessarily know all the necessary steps of ADAS calibrations

“Don’t assume that they did it right,” Rodenroth said. “You really need to audit them. To do that, you need to understand the requirements yourself. Just handing if off to a sublet is not good enough.” Those requirements for calibration of the blind-spot monitoring system on a 2018 Honda CR-V, for example, include ensuring the suspension has not been modified, that the tire size and pressure are correct, that the gas tank is full, that all excess cargo is removed, and that there are no objects on the instrument panel, 30

hood or windshield. Rodenroth suggests getting documentation that tire pressures were checked, getting a receipt for fuel that was purchased, and documenting vehicle mileage before and after calibration to help ensure required test drives were done. “If you’re using dealers or [any sublet provider], go there and take photos for the claim file of the vehicle actually set up with the targets,” Rodenroth advised. “That helps document and justify that it was done.” One panel discussion at the conference revolved around the relationship between insurers and repairers when it comes to the increasing technology of vehicles. There have been efforts in at least six states this year to enact legislation requiring shops to follow OEM repair procedures and for insurance companies to pay those shops accordingly. But one repairer said that while such mandates could be helpful, they won’t resolve all shop-insurer disputes, in part because in some instances those OEM procedures are somewhat vague. “We need some more help from the manufacturers with some clarity,” said Darrell Amberson of LaMettry’s Collision in Minnesota. “Getting into the calibrations, I’m seeing some wording, for example, that says calibrate a radar system if there’s an impact in the surrounding area. What is the ‘surrounding area’? Is that within a foot, 2 feet, 3 feet? We need some help on that.” He said other procedures call for a calibration of a particular system “in the event of a collision,” without further defining if that means any type of collision, no matter how minor. “What is a collision? I find myself often having discussions with insurance companies, testing us on that,” Amberson said. “At what severity do we do this step?” Panelists at CIC were asked how a shop can address an insurer who says that decisions about whether they pay for vehicle scanning are made on a “case-by-case basis,” given that automaker repair procedures call for such scanning on virtually every vehi-

MAY 2019 AUTOBODY NEWS / autobodynews.com

cle shops are repairing. Amberson said that when he presses someone making that statement, they “have a hard time articulating the standards.”

Darrell Amberson of LaMettry’s Collision in Minnesota said he addresses insurers saying they pay for scanning on a case-by-case basis by asking for their criteria in making those decisions

“I ask them, ‘What’s the criteria? When do you pay for it and when do you not?’ Often, they struggle to answer that,” Amberson said. “For us to

come up with standards on our own, by our own assumptions, frankly just doesn’t make sense. When it comes to electronics, the only way to look at a system is through a scan tool. So under what circumstances do I look at it and when do I not? They struggle to answer that. So for our company, we have the philosophy that whether we get paid for it or not, we do a pre- and post-repair scan on every car. If nothing else, I can sleep at night by doing that.” Jason Bartanen, director of industry technical relations for I-CAR, compared scanning to 3-dimensional measuring, saying “it’s impossible to analyze all the damage on a vehicle” without it. Rodenroth said he tells shops to put the automaker position statements on scanning away and instead pull the actual specific repair proceSee Dealing with ADAS, Page 50

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autobodynews.com / MAY 2019 AUTOBODY NEWS

In Reverse

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

with Gary Ledoux

The 1970s - Part 1 - The Collision Industry Starts to Mature If the 1940s and 1950s marked the industry’s earliest “modern” beginnings and the 1960s signified the industry’s “grammar school” years, the 1970s could be seen as its teenage years. Changes were happening, signs of maturity were beginning to show, and yes… there were some “growing pains.” Veterans of that period claim it was like operating in the Wild West. After calling on a shop, one former insurance adjuster noted, it was not uncommon to return to one’s car to find an envelope stuffed with $100 bills over the visor to ensure continued “favorable treatment.” Another veteran noted that during that time, the collision estimating guides were competing for market share. Each one tried to outdo the other by building in repair times here and there and then showing the

prospective shop how much more time and money they could make with their brand of estimating guide. It was not until the insurance companies started writing their own estimates that they started noticing the differences. It was a time of what one industry veteran called the “Infamous Two-Man Shop.” Young technicians wanting to strike out on their own, either because they didn’t like the work they were being handed or because they thought they would make a bundle of money as an owner. They would leave their shop, rent a small garage and start their own business. It wouldn’t be long before they’d realize they needed some help and would recruit a buddy from their former shop. They then would go to all the old shop’s insurance contacts, tell them they would do the work a little cheaper, and the cars would start to

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roll in. Unfortunately, in those days before job-costing, the new shop never knew if they were profiting or not. Many simply went bankrupt and closed the doors. The 1970s saw the seeds sown for what would become the model for 21st century collision shops. Before the days of ABRA, CARSTAR and Caliber, Pittsburgh industrialist Ward Wickwire signed the first franchising agreement to open an American Way International body shop in Pittsburgh, an early model of the MSO concept. AWI never became a household name and was never nationally recognized, but this period would give rise to those who were. In 1972, Anthony A. Martino opened his first auto painting shop in Wilmington, DE. Using the first letter of his last name and first letter of his first and middle name, he called his new business Maaco Auto

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Painting. He soon opened additional shops that provided a good overall paint job at a reasonable cost. By1977, he had almost 200 locations. Innovative ideas were popping up all over the place. Early 1972 saw a short trade magazine article suggesting that a car should be totally torn-down in order to write a complete and correct damage estimate. This was perhaps the first time this was mentioned in a trade magazine, indicating this might have been a “novel” concept. Industry associations were growing in numbers, strength, and savvy. State and regional associations were popping up all over the place and joining with national associations. The industry’s voice was getting louder. This was spurred by the growth in number and popularity of industry trade magazines. It was be-

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coming easier for a shop owner to see what was going on outside his four walls and easier for them to take an active part in the industry. Traditional part jobbers had been carrying paint and related collision repair products since the 1930s. By 1970, of the roughly 25,000 full line automotive parts jobbers in the U.S., about 15,000 carried paint and body supplies to one extent or another, but only 2,000 or so actually promoted the sales of these items. This left the door wide open through the 1960s and early 1970s for a slightly different business model—that of the paint, body and equipment (PBE) jobber. The Automotive Service Industry Association (ASIA) defined a PBE jobber as a store for whom at least 70 percent of their sales come from paint, abrasives, tape, collision repair equipment and the like sold to body shops. At a 1972 industry show, ASIA recognized the PBE jobber as an official industry entity. Automotive technology continued to move forward—although it was not always a pretty sight. In 1973, the 5-mph bumper was intro-

duced. Still made of chromed steel, the bumper was supported on the frame by shock-absorber units allowing the bumper to move in and out. In 1974, similar bumpers became standard equipment for the rear of the car. The bumpers were described as “monstrosities” and appear to have been added to the car as an afterthought because essentially, they were. In the 1970s, vehicle engines and transmissions were more durable but lacked today’s e-coat to prevent rusting. An otherwise well-running car would rust out in 3–4 years, especially in areas where road crews used salt and sand on snow-covered roads. Salt, water, and sand, combined with exposed sheet metal all contributed to some serious rust problems. Fixing rust holes correctly and legitimately was time-consuming and expensive … and not covered by insurance. In many cases, the entire panel had to be replaced, including rocker panel rear quarters or front fenders. And even when panels were replaced, rust would break through someplace else. It was like a cancer.

Used-car dealers found themselves with lots full of otherwise good used cars—except for the rust holes—that they wanted fixed as quickly and cheaply as possible. Left to their own devices and being paid on a “percar” basis, creative body technicians found quick and easy, albeit non-permanent, ways to fill the holes and make the car look good—and just long enough to get it sold. This led to some sore customers, and a black eye for the used car industry and body repair industry. Paint technology started to change in the 1970s as well. Paints became more durable but had some unforeseen consequences. In the early 1970s, DuPont introduced its Centari line of paint—a polyurethane-based product that required an isocyanate hardener. Little thought was given at the time to safety measures and little was known about the effects of isocyanates. Suddenly, painters began experiencing asthma symptoms. Many ended up in their local hospital emergency room. Depending on their length of exposure or how they were exposed to it—either by inhaling it or being exposed by touch—the ill ef-

fects could have been short-lived or permanent. The ill effects of shooting Centari and paints with similar chemical properties were not the only hazards body shops faced in the ‘70s. In the days before we as a country and as a culture grew environmentally conscious, body shops had some horrendous ways of disposing of highly toxic waste products. Many times, leftover paint was stored for a while until it gelled, then was thrown in the trash. Other times, it would be thrown on waste paper and burned. Some shops threw all waste products, including paint, thinner and primer, into a 55-gallon drum. When the drum was full, it was dumped off in some remote area—sometimes with the drum and all, or sometimes just the contents were dumped and the drum was reused. Some poured the barrel’s contents on the gravel parts of their lots or driveways to keep the dust down. The Resource Conservation and Recovery Act (RCRA), enacted in 1976, was the principal federal law in the United States governing the disposal of solid See The 1970s, Page 38

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From the Desk of Mike Anderson with Mike Anderson

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

Industry Misses 2 Important Aspects of John Eagle Collision Case In the 18 months since a Texas couple was awarded $42 million by a jury who found a dealership body shop had improperly repaired the vehicle in which the couple were injured in a subsequent accident, I’ve probably been asked about the case at least 20 times a week. Even now, I continue to get phone calls, emails and questions about it from those in my classes. Based on those exchanges, I think there are two important things related to what happened that a lot of people seem to miss. The first is a fundamental difference between a warranty and a liability. We all understand a warranty, defined as the “written guarantee issued to a purchaser.” Let’s say you repair Suzy Smith’s car, and she later sells that car to Joe Brown. Joe later notices the paint is starting to flake off the bumper, and he brings the car back to your shop. Under the terms of the warranties I see most shops providing to their customers, you can kick Joe to the curb. Most shop warranties say the work is guaranteed only to the customer who had the work done at the shop. It doesn’t transfer to any subsequent owners of

that vehicle. But liability, defined as “the state of being responsible for something,” is different. I will preface this by saying I’m not an attorney, but from my understanding, if you repaired Suzy Smith’s car and didn’t do something related to the safety of that vehicle, you could be held liable even if it’s Joe Brown, as a subsequent owner of that car, who is injured in the vehicle based in whole or in part on the repairs you did. That’s essentially what happened in the Texas lawsuit. Matthew and Marcia Seebachan purchased a used Honda Fit that had previously been repaired by the John Eagle Collision Center. If the Seebachans had decided the paint didn’t match and took it back to the dealership, John Eagle wouldn’t have to warranty the work, presuming the shop’s warranty extends only to the owner who had the work done to the car. But the shop was still found liable for the couple’s injuries in the subsequent accident. The jury ruled the repairs made to the vehicle before the Seebachans owned it weren’t performed correctly. The replacement roof the dealership had put on the vehicle

Continued from Page 35

gust 1971 issue of Automotive Service and Body News magazine noted that shop owners had to comply with federal inspectors who were able to stop in and inspect their shop at any time with fines for safety infractions reaching as high as $10,000. ASBN suggested 10 areas where inspectors were liable to look for safety hazards. The article also noted that the federal government was poised to “plague shop owners.” Shop owners now had something else to keep them awake at night.

The 1970s

waste and hazardous waste, which essentially ended shops’ practices of indiscriminant waste-dumping. And if managing hazardous waste wasn’t enough to give shop owners a headache, OSHA entered the industry lexicon in the early ‘70s as well. The Occupational Safety and Health Act of 1970 took effect April 28, 1971. An article in the Au-

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was bonded rather than welded to the vehicle as called for by Honda—and the roof’s separation in the Seebachan’s collision, the jury found, led to the degree of their injuries. To my way of thinking, that means you’re still potentially liable for the repairs you made to a vehicle eight years ago, even if that vehicle has been resold two, three or 10 times since. I see too many shops confusing “warranty” and “liability.” I haven’t studied all the documents and transcripts from the case, but the second key point I think a lot of people miss is this: If you tout your shop as being certified by certain automakers, yet you fail to follow the repair procedures called for by those automakers, that could be construed as negligence, which is defined as “failure to take proper care in doing something.” Again, I’m not an attorney. But

the legal argument that could be made goes something like this: As a car owner, I saw on your website, in your advertisement and on your signage at your shop that you’re certified by ABC Automaker. That tells me you are going to do everything ABC Automaker says to do in repairing one of their vehicles. If you deviate from that, that’s negligence on your part because you portrayed yourself as being certified and knowledgeable in repairing ABC Automaker’s vehicles. I think that could conceivably extend beyond just automaker certifications. Think about other ways you portray yourself as a qualified expert, whether it be the I-CAR Gold Class designation, or training or certifications from other organizations. Warranty, liability and negligence are three terms this industry really needs to understand.

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Day Job/Night Job

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

with Ed Attanasio

From Rock Star to Crash Star

owner of 1Collision Network—but they nearly did. It all began when Keller saw the Beatles perform on “The Ed Sullivan Show” when he was 10 years old. “I knew right then that I wanted to be a musician and specifically a drummer,” he said. “I was immediately drawn to Ringo and shortly after that, I began drumming along to songs on the radio on an improvised drum set that consisted of two upside-down wastebaskets and a pair of rulers. I cut out a picture of a real drum set from a JCPenney catalog and taped it to the bathroom mirror, and I guess my parents got the hint because I The Baxters consisted of (from left) drummer Jim Keller, got an $89.95 three-piece lead guitarist Martin Krohne and bass player Greg Scott drum set for Christmas.” Keller learned how to monetize Things didn’t go exactly that way for Jim Keller, collision lifer and his love for the drums and entered In the song “Takin’ Care of Business” by Bachman-Turner Overdrive, the band offers their prescribed formula for rock star success: “Get a secondhand guitar, chances are you’ll go far if you get in with the right bunch of fellows.”

the collision repair industry at the before joining a few local rock bands and playing cover songs by Jimi same time. “At 12, I was making $25 cash Hendrix and Savoy Brown. “We played a lot of blues-influon Saturday nights performing at weddings with a polka band,” he enced music and acid rock,” he said. said. “I was also working at my “A few years later, a friend of mine friend’s father’s body shop, sanding encouraged me to audition for a band called In a Hot Coma, and I cars, picking up supplies on got the gig.” my bike and driving cusGood things happened tomers home, even though I quickly for In a Hot Coma. obviously didn’t have my The band was soon asked to license yet. I made $40– open up for Cheap Trick right $100 weekly there, which before their debut album on made me the richest kid in Epic was released, Keller town.” Today, Keller is said. After taking some forthe owner of the After several years, mal lessons, Keller started 1Collision Network. The network has Keller left In a Hot Coma playing percussion for his 43 body shops and played in local bands, high school’s band, includand counting including a short stint playing marching band, jazz ening with Howie Epstein, who later semble and orchestra. To become a better drummer, became the longtime bass player for Keller practiced his drums for 90 Tom Petty and the Heartbreakers, as minutes in his basement every day well as The Shivvers, a popular Mil-

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waukee power pop band. He then joined a Rockford-based pop group called The Names until he joined The Baxters with Martin Krohne on guitar and Greg Scott on bass. After capturing second place at a State Fair Battle Of The Bands competition in West Allis, WI, The Baxters made their debut at a popular

later, “Don’t Run Away” appeared on a CD featuring iconic Milwaukee band Great Lost Brew Wave, while “What Ya Gonna Do” made it onto a 2001 CD set called History in 3 Chords. In addition to Ringo Starr, Keller said, several other legendary drummers have influenced him over

punk club, Zak’s, Milwaukee’s first punk club, on New Year’s Eve. For the next two years, the trio wrote original songs and played shows in cities such as Rockford, Chicago, Milwaukee and Madison. With 200 original songs in their repertoire, The Baxters came up with two tunes that got some attention in 1980: “What Ya Gonna Do” and “Don’t Run Away,” both of which can be heard on YouTube. The band recorded the songs at Star Studios on National Avenue but couldn’t put together enough money to release a record. Seventeen years

the years, such as John Bonham (Led Zeppelin); Keith Moon (The Who) and Bun E. Carlos (Cheap Trick). Keller got to know Carlos when his band opened for Cheap Trick and helped him in one unique way. “I would use the same drumsticks over and over and beat them up because they’re not inexpensive,” he said. “One day, I came offstage and Bun E. saw that my sticks were all nicked up, so he got one of his roadies to give me a large box full of his used sticks. I used them for the next two years and will never forget Bun E. for that!”

“At 12, I was making $25 cash on Saturday nights performing at weddings with a polka band,” — Jim Keller

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The Baxters broke up at the end of 1981. Keller opened a body shop and put his drumsticks down, while his two bandmates formed a top 40 band called Tommy Gunn. “It was the right time for me to give up my rock star dreams and pursue a career, as well as get married and have some kids,” he said.

Keller now plays the guitar and piano to relax and unwind

In 1985, Keller purchased his second shop and subsequently merged them with a large MSO and became a partner in a business that eventually operated 27 shops. He then got involved with Crash 1 and in 2013, it became 1Collision, which was headquartered in Milwaukee, WI. 1Collision has grown from eight

shops to 43, and Keller is signing up new ones all the time, he said. “We’ve proven that we can help our network shops by maintaining excellent relationships with our insurance company partners, processing claims quickly, using the latest claim processing and OEM repair technologies and processes by the implementation of our SMART Performance System. We also enable them to succeed by utilizing our marketing, business strategy, HR & recruiting, equipment and material purchasing programs, financial management programs, and utilizing O.E. parts. We also offer consumers a written, limited lifetime warranty,” he said. Although he is now a successful businessman who is well-known in the collision repair industry, Keller looks back fondly at his years as a rocker and still loves playing music, he said. “I play the guitar and the piano to relax and unwind, but not the drums anymore,” he said. “The Baxters never hit big, but it was a great experience, and I’m happy to know that people still listen to our songs almost 40 years later.”

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800-451-5078 952-887-0600 952-881-1787 autobodynews.com / MAY 2019 AUTOBODY NEWS

Truck Topics with Gary Ledoux

Truck Topics 1: Heavy Duty Events Address Collision Issues People have been repairing collisiondamaged trucks since August Fruehauf stuck a trailer behind a Ford Model T in 1914 to create the first semi-trailer rig. Oddly, it is only within the last year or so—over 100 years later— that the collision repair side of the trucking business started to coalesce as an industry. The industry’s development was recently accelerated by two key events.

TMC Event The Technology and Maintenance Council, better known simply as the TMC, has been around since 1956. It brings fleets, manufacturers, suppliers and other industry stakeholders together to solve the industry’s toughest

(l to r) Brad Keiterand and Nick Notte

problems regarding transportation equipment. The TMC is an integral part of the American Trucking Association, formed in 1933 to represent the nation’s motor carrier industry. The TMC’s latest event, dubbed “Beyond the Frontier of Maintenance,” was held at the Georgia World Congress Center in Atlanta from March 18–21. The main focus of the TMC has traditionally been fleet maintenance and mechanical repair, although a year ago the organization started looking at the complexities and dynamics of HD collision repair. Repair Roadmap Everyone knows that it’s bad enough 42

to be in a collision with the family car, even if there aren’t any injuries. But when a commercial truck is involved in a collision, there is a lot more to consider. This is explored in the “Repair Procedures Roadmap” initiative chaired by Joey Fassett, president of Al’s Auto and Truck Repair in Exeter, NH. The Roadmap begins with “preplanning” for an accident along a truck’s usual route. (Trucks are rarely near their home port when an accident occurs.) It also covers how to deal with damaged freight or preserving freight, how to preserve and deal with accident evidence, and more.

Collision Repair Guidelines Unlike the auto industry, the HD truck OE manufacturers do not provide collision repair procedures and guidelines, or even position statements on collision repair, for several reasons. The HD industry is then left to its own devices to create its own repair procedures based on best practices, accepted protocols and what information they can glean from the manufacturers of a truck’s component parts. Chris Sterwerf of Fairfield Auto and Truck Service in Fairfield, OH, is the chairman of TMC’s Heavy Duty Collision Repair Guideline Task Force and is leading the charge to create HD collision repair procedures. Currently, exploration and guidelines for frame repair and refinishing are on the table. During a break-out meeting at the TMC event, Sterwerf took several other suggestions for areas to explore, including how and when to check other chassis components such as steering mechanisms. HD Repair Forum Event On April 2 and 3, the second annual HD Repair Forum was held in Fort Worth, TX, drawing an enthusiastic crowd of about 250 HD repairers, shop owners, consultants, technical advisors and OE executives. It was founded in 2018 by Brian Nessen, perhaps best known for his work with the Stone Fort Group managing

MAY 2019 AUTOBODY NEWS / autobodynews.com

the auto collision industry’s NACE show, and long-time collision industry veteran Dan Risley, known for his work with Automotive Service Association and the Society of Collision Repair Specialists.

(l to r) Brian Nessen presents John Spoto with the Service Provider of the Year award

The Forum featured a wide array of speakers from several different disciplines within the truck and auto col-

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lision repair industry. Among those featured on the truck OE side were Bill Kahn, applications engineer for Peterbilt Motors; T.J. O’Hanlon, director of private label brands for Navistar; and Gregory Treinen, advanced technology marketing manager for Daimler representing Freightliner and Western Star Trucks. Also featured were presentations from Bob Morris of the Gas Technology Institute and Wally Dubno, sales managers for Clean Energy Fuels, who talked about the future of CNG and LNG as fuels for heavy trucks and some of the things about which repairers need to be cautious. Among the other presenters were two representatives from 3M who provided highly detailed presentations on practical repair of HD trucks, a representative from Chief who addressed HD truck damage analysis, See HD Events, Page 47

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Tips for Busy Body Shops with Stacey Phillips

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

Best Practices When Interpreting & Documenting Scan Data, Trouble Codes & Calibrations Today’s vehicles and those manufactured over the last two decades contain a wealth of electronic information that can help shops effectively and efficiently perform a proper repair, according to Chuck Olsen, executive director of AirPro Diagnostics. “If we don’t look for all of the clues there are within the system, it will make the job much more difficult than it has to be,” he said. As a result, Olsen said, a capable scan tool is a critical component of strategy-based diagnostics. “They give order and method on how we diagnose, service and reprogram vehicle control modules on these increasingly complex inter-related systems to restore vehicles to sound operation condition,” he explained. With more than 40 years of experience in the automotive repair and technology industry, Olsen recently shared insights on interpreting and documenting scan data, trouble codes and calibrations during a CIECAst webinar. The following is a summary from the presentation:

scan tool data definitive or infallible. Understanding and being able to fully employ the functionality available to us with modern and emerging scan

Q: A:

What is essential to know about scan tools today?

For many in the industry, there’s a certain mystique in relation to using a scan tool and what they can do. Scan tools are engineered and designed to be directly connected to the vehicle utilizing the most current diagnostic software available. Depending on the tool, it might only read out diagnostic trouble codes (DLCs) or can have additional capabilities such as calibrating or programming modules. Most scan tools require a pass-through device with a subscription to an OEM provider to fully reprogram the modules. Scan tools have many functions and ways they can be used, but the most common is doing a pre-scan, post-scan or what is known as a health check of a car. This is always the starting point. By no means are scan tools and 44

you know what your tools can and cannot do. In certain instances, some functionality may have to be given up in order to achieve a lower price point or you’ll need to access the dealer tool. Be honest with yourself about what your shop cannot do and be prepared to sublet or decline the job if it’s the best option. Remember that honesty still resonates as a reason your customers do business with you.

What needs to be analyzed when you are going through a strategy-based diagnostics process?

First, it’s important to visually inspect the car and determine what is broken, damaged, leaking, etc. Next, look at the symptoms of what is not working properly, such as the malfunction indicator lamps or system functional checks. The third step is to reference the service information. This

Sean P at AirPro Diagnostics’ Calibration & Testing Center requests scans directly from his cell phone to complete a calibration on a 2019 Toyota

includes the inspection requirements, repair procedures, testing procedures, option content and calibration requirements. Finally, it’s time to check the electronic data from the vehicle. This includes using a capable scan tool to determine the DTCs, live data stream values and calibration verification.

What is important to know about accessing the raw electronic data from the scan tool?

The raw data is managed by several different specifications and can be characterized as languages that the vehicle must adhere to in order to communicate. You need a tool that can speak these languages. The software adopted by all OEMs allows the independent aftermarket the ability to reprogram, diagnose and access data from the electronic control units (ECUs) without the need for

tools are acquired skills. It’s important that our knowledge and skills keep pace with technology changes and the associated scan tool functionality. Can you share some of the differences between an aftermarket and OEM scan tool?

I’m often asked this question. Aftermarket top tier scan tools are now competitive with OEM dealer scan tools; however, they are not exactly the same. I’m not an advocate of one over the other. It’s necessary to understand their capabilities and the strengths and weaknesses of each. There is no one aftermarket or OEM scan tool that can do everything on all vehicles. The key is in the mix of vehicles that you are repairing or servicing. You’ll want to look at the brands your shop specializes in, if any, and then use the correct tool or service for the job at hand. There are certain functions, procedures and OEM certification requirements that will dictate when OEM scan tool applications are your only option. The one caveat is to make sure

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a dealer-only tool. The OEMs provide the scan tool application programs available for independent purchase with user license agreements.

Q: A:

Why should a shop always conduct research?

For every single repair, research is required. That can be sourced from the OEM as well as third-party suppliers that purchase the service information and repost it. There will be times you’ll have to go to the OEM direct subscription to obtain the latest updates. You must review every repair and procedure performed on a vehicle to identify calibration or programming procedures that will need to be performed with a scan tool and also to determine that the scan tool being used is capable of the procedure. Part of this is knowing that most times, scanning a car is not going to alert you that a calibration is needed or must be performed. This is almost always found in the service information. The only exception is if a component has been replaced that has never been calibrated. In this instance, we’ll often

see a code set for a calibration requirement, but you can’t count on it. It’s imperative that you review the repair procedures and find out if a calibration needs to be done. You’ll

Technicians test the calibrations on a 2019 Toyota at the Calibration & Testing Center

then need a capable scan tool and, in many cases, additional equipment such as targets or seat weights to execute that calibration.

Is it common for a scan tool to miss a DTC?

With the complexity of today’s vehicles, there is always the chance for a scan tool to miss control units or DTCs during a general health check. There are two distinct reasons for this. First is that the non-reporting control units can be filtered out by some scan tools. Although it is rare, you must be aware of it when using a scan tool independently or relying on a service. This is normally caused by an impact at or near the area of the control unit, damaged wiring harness, connector damage, blown fuses or poor ground connections. Another reason is due to a busy automotive network or the control unit returning information slowly because of a large amount of data stored in that module. Modules have timing parameters that must be adhered to, and at times while they are returning large trouble code records, that request can time out and the scan tool will move on and possibly miss something. This is when it is necessary to check systems individually on a vehicle or go back and rerun a scan

multiple times to make sure everything was received. Both OEM and aftermarket scan tools can be subject to this and is why there are so many update requirements with scan tools.

Why should repairers be aware of the build list in the software’s internal database?

When you are reading the scan tool data, be aware that the wrong options can sometimes be reported in the scan tool database. Where we usually see this happen is when there are added accessories or option modifications done by the dealership or the aftermarket. An example is if a customer wants foglamps installed at the dealership; these will not be included in the vehicle option content list and may or may not be accessible by a scan tool. As a result, you must do an inspection and pay close attention to what optional equipment is included.

How can they overcome these issues?

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DTCs are just the starting point of drilling down the problem(s) on a vehicle. Each system is made up of a group of components, and it’s important to be aware of them during the diagnosis. We call it Component Level Scanning (CLS). This is much different than just reading trouble codes. With CLS, we get as close to the raw or live data as possible.

Once the car has been repaired, it’s crucial to document everything. This includes what we started with and what we found, what parts we replaced and/or repaired, as well as removed and reinstalled. Also, document what the OEM service information says, the diagnostic procedures and calibrations performed, the functional quality control test results, and even what we did not do—the non-related issues on a vehicle. Documentation helps protects the customer and your business.

What steps should my business take when it comes to privacy?

Chris C completes a scan on a Honda using the HDS software at the AirPro Diagnostics office

CLS gives us a complete picture of the health of the system. In fact, we can determine faults from data streams before they are reported as a DTC by the control unit.

What should be included in the documentation?

A customer needs to know you are going to be accessing data from their vehicle. My advice when it comes to privacy is to incorporate a statement for the customer into your work authorization form and let him or her know you are going to be accessing all types of data to repair the car properly and/or to make decisions on insurance, warranty or customers’ responsibilities.

Continued from Page 42

HD Events

and a representative from technology company Diesel Laptops who talked about HD truck scanning. In addition, about 25 vendors, including Axalta and PPG, featured table-top displays providing attendees a chance to talk directly with company representatives. Awards Presented During the event, three awards were presented. Nick Notte of I-CAR presented Brad Keiter, manager for Penske Collision of Norcross, GA, with a plaque designating him as the very first I-CAR Gold Class HD truck shop. This designation is now available to any HD truck shop that qualifies. Nessen and Risley presented two additional awards. John Spoto,

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national heavy duty truck commercial fleet manager for 3M, was presented with the Service Provider of the Year award for his part in creating a number of training classes for 3M and for his tireless help in the planning and creation of the HD Repair Forum. Additionally, Nessen and Risley awarded in absentia the Repairer of the Year award to Sterwerf for his work as the chairman of TMC’s Heavy Duty Collision Repair Guideline Task Force, his industry position as a recognized leader in the HD collision repair industry, and for his work in helping create and promote the HD Repair Forum. Based on the success of this year’s event and positive feedback from attendees, speakers and exhibitors, Nessen and Risley are already planning next year’s event, although exact dates and location are not yet available.

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Continued from Cover

New Car Technology

the market in 1979, when Chrysler introduced its Lean-Burn system in the K car (Aries, Reliant, LeBaron) An early computerized spark-advance control system consisted of three parts: the carburetor, the spark-control computer, and a group of eight external sensors. By the early or mid-80s, GM had the Electronic Spark Control System (ESC), which was the beginning of the computer age in cars with check engine lights , followed by OBD-II and then CAN (Controller Area Network) and then the beginning of ABS (Antilock Brake Systems) and TPMS (Tire Pressure Monitoring System). I witnessed all of these generations and evolution with those systems and now we’re going through it again with ADAS (Advanced Driver-Assistance Systems).

Are more and more shops joining the diagnostics world out of choice or necessity?

The collision repair industry is now going through the same thing the mechanical repair industry went through in the ‘90s and early 2000s. When OBD-II came around, shops realized that they had to have a scanner to do anything on these cars, and when CAN hit around 2004, it became more important for body shops. The collision repair industry has done a wonderful job within the last few years of pricing out any type of technician because body shops didn’t want to spend money for diagnostic time and the equipment required. They were subletting the work and battle with the insurance companies to get paid for it, and now it’s come home to roost in the middle of their world. So, the insurance companies are starting to pay for diagnostics and the body shops are going to have to have someone on their staff that has these abilities. The early adopters are going to make more money and lead the way, while the latecomers are forced to farm stuff out. It’s killing their cycle time because the dealerships have their own work and can keep the shop’s cars there for 1–5

days, in many cases. The insurance companies are complaining that they have to pay these costs, whether the shop is farming it out or doing it inhouse. But if you’re subletting the diagnostics to the dealership, you have to pay for that rental car for an additional week, for example. The dealer’s own work is going to be a priority, so you never really know when you’re going to get the car back. As a result, the body shops that are doing their diagnostics in-house are favored by the insurance companies while those that are jobbing it out are not.

What are some of the newer systems that shops will have to be able to repair on newer vehicles?

These carmakers are coming up with new systems and features all the time, so the shops have to stay on top of it. Audi recently announced a new system called V2I (Vehicle to Infrastructure Communication) that will display the ideal speed to drive in order to make all the green lights. It’s only currently available in 13 cities, but if it works, I imagine it will be introduced in every major city in the U.S. Tesla is constantly developing features associated with autonomous cars; Audi has always been a front runner and Mercedes has some interesting new stuff as well. I travel around the country a lot, so I get to play with all of the new technology, especially when it comes to the selfdriving and safety stuff, and I am very surprised and impressed at what KIA and Hyundai are doing. Their lane departure technology seems to be fairly advanced in comparison to others. The supercruise systems from GM and Cadillac are up there with advancements, and Ford is focusing more on the technology in their SUVs and trucks where they’ve developed a system that gives Ford truck drivers (blind spot) trailer coverage, so that the driver can look further and wider with their backup systems. The radar is in the tail light so if you back into something, it’s more than just replacing the light. Carmakers are also further developing new facial recognition systems that deal with the driver’s eyes and where they’re looking and also by monitoring the position of the steering wheel. The ADAS system

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it’s not just the ADAS part that’s involved. Active ADAS means that the system is doing something rather than just warning you, and that is where I think that area will really expand considerably within the next 2–3 years.

will attempt to steer the vehicle between the lanes, but if it doesn’t detect some kind of minimum resistance from your hands on the wheel or if it detects that you’re looking down and not at the road ahead. These systems are going to alert drivers with haptic messages that will cause the steering wheel or the seats to vibrate in order to alert the driver. Some of the OEMs are also working on heart rate monitors, so we will likely see a lot of new systems leveraging that.

A few years ago, many shops didn’t think that diagnostics were a must, but now they realize they’re becoming more important to fix cars, right?

Diagnostics is at an all-time high with body shops because now the insurance companies are requiring them to do pre- and postscans, which means they need to own at least one scanner. In the old days, we could just walk around the car and inspect it visually to write the estimate, but today we can’t see everything. What happened was that shops were writing estimates, but then while fixing the car they found out that one sensor was bad, this wire was pinched or module is going to be reset. So, now the shop has to write a bunch of supplements, which is a pain for the body shop and the insurance company, plus it lengthens that

By 2025, will a large percentage of the costs associated with a collision repair be more involved with software calibrations as opposed to actual paint and R & I?

Absolutely. Front collision avoidance, automatic emergency braking, lane departure warning, as well as all of the cameras, sonar, radar and LiDAR are all now connected to some of the braking and wheel speed sensors, brake pressure, electronic power steering, and all of these are reporting. So, it’s the crosspollination of these systems because

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cycle time. Another problem is with a car that is near its total threshold, and then the shop finds $1,000 in additional work. Had they done the proper diagnostics, the vehicle would have been totaled, but they’re already committed. That’s why the insurance companies started insisting on getting pre- and post-scanning on each car, so that now they can write estimates for additional sensors, labor time, programming, which allows the shop to write a more complete estimate to start off. By performing diagnostics, you get a definitive view instead of speculating and take all of the whatifs out of the equation for both parties. Any shop working on cars made within the last four years is going to need at least one individual in-house who can perform diagnostics and have at least one full-functioning scan tool, not just a code reader. That’s the end game, but how do small independent shops get there affordably? Maybe they start out using a subscription service, and once they have someone on their crew who can do the diagnostics, they invest in a scanner. That seems to be a logical path to take.

Continued from Page 30

Dealing with ADAS

dures for the job. “There’s a lot of opportunity to justify the diagnostic requirements [aside from] just the position statements.” Rodenroth said. Greg Potter of the Equipment and Tool Institute pointed out that you can’t go to your doctor’s office without them doing some basic screening. “If I go in there just to get a signature, I’m getting weighed and my blood pressure taken,” Potter said. “It’s unfathomable to me to think that you’re going to work on a vehicle and not [scan] it. If there’s something very wrong with it, and you give it back to the customer [without doing] anything about it, and then something happens, I think you’re going to have some explaining to do.” Cada, who had a 30-year career in insurance, said the key is tying the need for the scan to “the event” covered under the insurance policy. “If you can relate that back by documentation to the types of damages on the car, then you’re going to

have success,” Cada said. “But if you’re scanning and find that what’s in there is nothing that was related to this loss, then it’s going to have to fall back on somebody else, because it’s probably not covered by the contract.” Panelists were asked how a shop can address being challenged by an insurer on increases in total repair costs when such increases are largely being driven by factors, such as vehicle technology and materials, beyond the shop’s control. “I think the opportunity for repairers is to have more complete line notes that explain what you can and cannot do with those substrates or electronics,” Rodenroth suggested. He also suggested pointing to instances where the shop used OEM repair procedures—such as those offered by some automakers for repairing headlight brackets—rather than just installing a new part. “That way it doesn’t appear to be too one-sided,” Rodenroth said. “Bumper covers are another opportunity. Some OEMs say no, you can’t repair that bumper cover because of ADAS technology. But GM and Audi, for example, give direction about what

you can and cannot do with regards to repairs. When you encounter those repair opportunities, and it is a good repair supported by the repair manual, certainly bring it to the bill-payer’s attention.” Amberson offered his own straightforward suggestion. “My advice to the repairer is simply to do the right thing,” he said. “Fix the car properly. Pay attention to the repair procedures. And let the chips fall where they may. We’re businesses. We deserve to be paid for what we’re doing. Nothing more and nothing less. I know it’s a challenge sometimes to convince an insurer they have to pay for extra steps. Statistically, we know that shops that scan cars and perform calibrations [have] a little higher severity than other shops. Our cycle time is a little worse than some other shops. But we’re doing the right thing on a more sophisticated, safer car. It’s to be expected they’re not going to be as inexpensive to repair.”

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I-CAR Contributes $225,000 to CREF

I-CAR© recently expanded its support of collision schools and students by making a $225,000 donation to the Collision Repair Education Foundation. The contribution was made as part of I-CAR’s 40th Anniversary Volunteer & Instructor Conference held March 1–3 in Orlando, FL. The financial contribution by I-CAR is in addition to the support to the Education Foundation’s mission by local ICAR committees across the country. The monetary contribution assists Education Foundation’s ability to offer collision school tool, equipment and instructor training grants and student scholarships across the U.S. “On behalf of the industry, ICAR is pleased to make this contribution that helps bolster the Collision Repair Education Foundation’s ongoing commitment to providing students with grants and scholarships that launch their careers in the collision repair industry,” said I-CAR CEO & President John Van Alstyne. 50

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Truck Topics with Gary Ledoux

Truck Topics 2: Truck Vs. Auto Collision Repair – An Overview We see them all the time—semi trucks, trailers, buses, RVs, dump trucks and other pieces of heavy equipment wrecked in what had to be a horrendous crash. So where does this heavy equipment go for collision repair—and how different is it from repairing an auto or pick-up truck? As one would imagine, there are some vast differences given the sheer size, weight, substrates used, and construction methods of such vehicles. But there are a few things that don’t change regardless of what vehicle is being repaired or who is doing it. For example, the phrase, “This is the way we’ve been doing it for 30 years… so why change?” is something heard in both camps and something industry leaders on both sides are trying to fight through education and awareness. One of the biggest differences

between Class 8 and 9 trucks (commonly known as semi tractors) is the availability of repair information for both mechanical and especially collision repair. In the auto or light truck world, (thanks to the Right to Repair initiative started in 2001), one trip to an automaker’s website will give repairers pretty much everything they need to make a safe and proper repair. On the truck side, that information may or may not exist, and even if it does exist, it is difficult to find. The truck OE will likely refer the independent shop to the component manufacturer—who may or may not be able to provide the information. Most trucks are custom-built to a customer’s specifications, making component identification (such as axles, wheels, suspension parts) challenging. John “Jack” Legler is the technical director for the Technical and

Maintenance Council (TMC) of the American Trucking Association (ATA). Its mission is to develop best practices and maintenance procedures for Class 8 (semi) trucks. The 65-year-old association has always been busy, but is now even more so as it tackles the proper way to make collision repairs with the advent of new advanced driver assist systems (ADAS) and other new technologies—such as high-strength steel. They have only been looking at the collision side of things for the last year or so and are making headway. However, as Legler puts it, “We’ve seen more changes in the trucking industry in the last 10 years than the previous 35 years.” (Sounds a lot like the auto side!) The Technical and Maintenance Council’s “S-16” study group is working with OEs and companies that supply engines, transmissions, axles,

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springs, electronic components and others to come up with best practices and procedures for making safe and complete repairs. Legler noted, “Unlike the auto industry where the OE provides a one-stop place for all information regarding the vehicle, repair information for a heavy truck can come from a number of different sources and in several different formats. It’s often difficult to find and when found, can be rather vague or of little help. It is fortunate that we all get along and work together within the industry. Representatives of the OEs as well as other component providers all serve on our committees and study groups.” When asked what the biggest challenge was today in the world of collision repair for heavy trucks and equipment, Legler was quick to reply with, “New technology. It’s coming at us faster than we can deal with it.

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That includes electronics, new frame alloys and composite materials for the cabs. Some of the electronic components on these trucks hold a high electrical charge and if approached the wrong way can seriously hurt the truck and the technician.” (This should sound familiar to those on the auto and light truck side.) Legler went on, “Many of the latest trucks are aerodynamically designed to optimize fuel economy. Today’s body technicians need to restore that truck’s aerodynamic design for optimum fuel economy. That’s a big deal when that truck travels 100,000 miles per year.” When asked how the industry was dealing with ADAS systems, Legler said, “We have only had to deal with that for the last couple of years. But we have to come up to speed quickly. It’s only a matter of time before autonomous trucks using these technologies start hitting the road.” Chris Sterwerf is the chief finance and operations officer for Fairfield Auto and Truck Service in Fairfield, OH, the chairman of TMC’s Heavy Duty Collision Repair Guideline Task Force and a noted industry

leader. When asked about the issue of repair information, Sterwerf agreed with Legler that it was hard to come by. He noted, “About 20 years ago when the auto repair shops were pushing for the ‘Right to Repair’ act, nobody on the heavy duty side went to their party, so we were left out.” He said the problem might have been due to the great diversity in the industry. “Under the umbrella of heavy duty, we have shops that fix only semi-trucks, or only buses, or only RVs,” he said. “Some shops can handle a heavy wreck from soup to nuts; some only do cosmetic work. The industry is very fragmented, and it shows. It makes things tough sometimes.” Collision shops on the auto side are still somewhat fragmented but nowhere near as much as they were before the advent of industry associations in the 1950s and trade magazines as a means of communication in the 1960s and 1970s. Sterwerf continued, “And then there are all the shops that don’t look

like shops—large fleets that repair their own trucks that are not visible to the public or even within the industry.” On the auto side, it’s pretty easy to find an independent repair shop using an internet search engine. On the heavy truck side, some large fleets maintain their own mechanical and collision shops, which tend to stay off the “commercial radar.” When asked what the biggest challenges were in the industry, Sterwerf replied, “There are a few things. One is the challenge of getting parts and repair information. Conversely, some component manufacturers, such as Bendix has all kinds of information online—and it’s all free. Sadly, few people use it. “The other issue I hear from a lot of shop owners is finding people. It’s tough to work in an industry that is so dependent on experience and knowledge when you don’t have any. but it may be the culture of the shop. “From my perspective, there are a lot of heavy duty shops out there that are only existing. Their repair methods, equipment and mind-set are stuck in an industry that existed

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years ago. They are not keeping up with technology and not moving forward.” (Hmmm… this has a familiar ring to it.) One of the major differences between the heavy duty collision repair world and the auto collision repair world is who pays the bill. On the auto side, easily 90 percent of collision repairs are covered by an insurance company. Conversely, most fleets are self-insured, so the company foots the bill for repairs. Any shop working exclusively on the auto side would find this arrangement ideal because there would be no more fighting with an insurance company over what they would or would not cover. Sterwerf explained the issues encountered with fleet-paid repairs. “Bigger fleets don’t mind paying to have the truck fixed correctly and safely. They know that skimping out on a repair now may mean a catastrophic failure later; which means more down time and possibly injury to a driver or other parties. Rather than try to fix something, it’s quicker and safer to replace the entire component—so that’s what we do. Then

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Hyundai Parts Dealers: autobodynews.com / MAY 2019 AUTOBODY NEWS

there is no question about [the repair being] right or not. Conversely, some managers of small fleets, operating on a small budget, want to do only what is absolutely necessary to put the truck back in service—despite the repair not being complete or even safe. I just tell those guys to keep going. I know the shop is still liable for those repairs regardless of what they say or want—and I don’t need the headaches.” When asked for an overall assessment of the industry, Sterwerf noted that as part of the Heavy Duty Collision Repair Task Force, he has met a lot of shop owners, many of which are considered to be some of the best in the industry. “But even among the best, there is a wide variation of skills, knowledge, experience and equipment,” he said. “We need to get more people involved and more people to take an active role in this industry to make it better and bring us all to the next level.” The equipment needed to work on heavy trucks carries a proportionally large physical size and cost. Getting into the business is not for the faint of heart. Some of the challenges

encountered while performing a heavy truck repair are conversely diminutive, yet equally important. Many truck bodies are made of aluminum to save on weight. (This should sound familiar to the auto repairers.) So when a lamp is attached to a body, or screws are needed to hold two body panels together, it’s crucial to use stainless steel screws to prevent galvanic corrosion. Just like the auto side, as one might expect, the paint companies have taken a lead role in supporting the HD collision repair industry. Axalta has its legendary Imron coating. Introduced in the early 1970s with about 12 different basic colors, it is now available in more than 25,000 colors and is the coating of choice for 5 out of 6 U.S.-based heavy duty truck manufacturers. Its coatings used on the production line and in the field are identical making an “original factory finish” possible in the field. Axalta also has what they call a “Business Council” in which noncompeting shop owners can come together, learn from each other, share experiences and receive words of wisdom from Ron Kuehn.

Sherwin-Williams has its own line of polyurethane topcoats specifically for heavy truck and equipment use. According to its website, in 1939, Sherwin-Williams was instrumental in devising the color we know today as school bus yellow as the standard color for all school buses. BASF has its own line of commercial paint and will even customcreate a special color for an individual fleet. In addition to its durable commercial coatings provided through its Sikkens brand, AkzoNobel provides analysis and recommendation for fleets to minimize down time for maintenance and repair and a coaching and training program for individual shop employees. To summarize … are there differences between heavy truck and auto collision repair? Sure. But it seems there are just as many similarities. Fortunately, in both truck and auto repair, there are a handful of dedicated industry leaders working toward the betterment of each side of the industry—to identify and find solutions to problems to effect a safe and complete repair for the customer.

Payscape, SCRS Partner on Member Benefit

Financial technology company Payscape has partnered with the Society of Collision Repair Specialists. Through this partnership, they will be able to provide members discounted processing rates and world-class financial technology to further streamline their business operations. “Payscape is excited to partner with SCRS,” said John Mills, vice president of Enterprise Sales at Payscape. “Given their initiative to provide members with trusted sources and advanced learning, we aim to enhance their financial technology portfolio and hope to progress both our organizations.” Through this strategic collaboration, SCRS will have the ability to negotiate more competitive credit card processing rates for the small to mid-size businesses that are members of its organization. Business owners will be able to expand their payment processing services through innovative software solutions and increase cash flow.

‘Who Pays for What?’ Surveys Find Growth in Shops Billing (& Being Paid) for Masking for Priming An upward trend in the percentage of shops across the United States regularly being paid by the eight largest national insurance companies to mask as necessary for priming continued this year. Back in 2015, a “Who Pays for What?” survey conducted by Collision Advice and CRASH Network found that less than 1 in 4 (24 percent) shops said they were paid “always” or “most of the time” when charging for the “not-included” labor required prior to the priming process to protect the vehicle from overspray. That grew to 37 percent in the last several years. But the same survey this past January found that 43 percent of the more than 600 shops responding to the question reported regularly being paid for masking during the priming process. Only about one-third of shops said they have never sought to be paid for that procedure. Mike Anderson of Collision Advice said the change is a good indication the industry is increasingly aware of the not-included procedures shops often perform without 54

seeking compensation. He said the latest of the four 2019 “Who Pays for What?” surveys, which focuses on “not-included” body labor operations, is open now through the end of April at: https://www.surveymonkey.com/ r/S3FQ8X3 Anderson said the survey, which will take about 15–25 minutes, can be completed by any shop owner, manager or estimator who is familiar with the shop’s billing practices and the payment practices of the largest national insurers. Each shop’s individual responses are kept confidential; only aggregated data is released. Survey participants receive a report with complete survey findings at no charge, broken down by region, insurer and DRP vs. non-DRP. The report also includes analysis and resources to help shops better understand and use the information presented. The results of previous surveys are also available online (https:// www.crashnetwork.com/collision advice).

MAY 2019 AUTOBODY NEWS / autobodynews.com

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autobodynews.com / MAY 2019 AUTOBODY NEWS

National Associations with Chasidy Rae Sisk

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

ASA’s ‘Washington Watch’ Webinar Features Industry Association Leaders On March 20, the Automotive Service Association (ASA) hosted “Washington Watch with Robert L. Redding Jr.” as part of its Webinar Wednesdays series. Redding, ASA’s Washington, D.C., representative, was joined by Aaron Schulenburg, executive director of the Society of Collision Repair Specialists (SCRS); Roy Littlefield IV, director of government affairs for the Tire Industry Association (TIA); and Tom Tucker, director of state government affairs for the Auto Care Association (ACA). Tony Molla, ASA vice president of industry relations, welcomed attendees to the update on the 2019 state legislative sessions and promised they would learn about legislation impacting shop owners, the legislative agenda for 2019 and what’s of interest to the automotive industry. Redding’s first topic was OEM

repair procedures. He explained that ASA and industry partners, including SCRS, kicked off legislation related to OEM repair procedures in August of 2018. He noted that multiple states are building support for this issue for 2020 and stressed that interest in the

issue was somewhat stimulated by the 2017 Seebachan/John Eagle Collision case in Texas. However, interest had risen long before then. The OEM repair procedures draft states: “Any insurer licensed to issue policies of automobile insurance providing bodily injury, property damage liability, comprehensive

or collision coverages shall not condition payment to any person conducting a collision repair upon the utilization of any repair procedure or specification if that repair procedure or specification is in conflict with the repair procedures and specifications for that vehicle as recommended by the original equipment manufacturer of such vehicle. If a repair procedure or specification from an original equipment manufacturer includes a directive to conduct a scan of vehicle electronic systems before or after the commencement of repairs, such directive shall be considered as a required part of the repair procedure.” Redding explained, “The draft language is meant to be a template for various states since this issue should be handled at the state, not federal, level. The bill language is intentionally very narrow and focuses on OEM repair procedures only, with no dis-

cussion of parts or the mandated use of OE parts in the statement.” In 2018, legislation regarding OEM repair procedures was introduced in three states. Indiana Senate Bill 164 died in conference, and Illinois House Bill 4926 was not approved. Rhode Island Senate Bill 2679 was signed into law but is quite stringent and applies only to OE repair procedures on OE parts. Numerous bills on this issue have been introduced so far in 2019, including Connecticut House Bill 7266, New Hampshire House Bill 664, Minnesota House File 2234, Illinois Senate Bill 2104, Nevada Assembly Bill 173, Montana House Bill 252, and Texas House Bill 1348. “Interest in OEM repair procedures is not a new phenomenon, but this subject has generated a lot of attention in the past few years due to the increasing complexity of modern

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vehicles,” Schulenburg said. “SCRS and ASA worked collectively with partner groups in 2011 to address this topic. Collision repairers recognize OEM repair procedures as the documents for repair, but we need to be able to identify in a way that repairers can point to. Our groups collectively issued a statement that we recognize published repair procedures from OEMs as the official recognized standard for collision repair. “I think it will only become a bigger issue, especially as that technology increases and vehicles become more complex. Consumers want the technology, a lot of which is safetyrelated, and their interest drives the demand for it, which will continue to perpetuate the issue. It’s important to point out that the insurance industry is also pushing for technology. While the collision industry feels resistance to the necessary steps to restore functionality on the claims settlement side, the insurance industry is very supportive, if not driving, the development of these technologies to increase highway safety and reduce frequency.” Redding agreed that the interest in OEM repair procedures hasn’t

lessened and reiterated the question he has heard from others about why it isn’t happening more quickly. Comparing the 2018 and 2019 bills, Schulenburg emphasized the importance of industry organizations documenting what is recognized as the industry’s standards and being the voice of the industry when necessary.

Schulenburg agreed that this has been the most pressing issue he has seen among SCRS members for quite some time now. “If you look at how frequently this conversation comes up, there’s no doubt that it’s one of the top issues our members face today,” he said. “Shops are challenged by the

He noted, “In 2019, it’s important for the proposed language to be rather narrow and focused. When we see it coupled with other industry issues, such as claims practices, rates or parts, it opens the door for opposition that may not enter into the conversation if we were just focused on procedures. Disregarding documented procedures opens the industry to unnecessary liabilities, so it’s much more beneficial to propose narrow, focused legislation.”

desire to perform a proper repair, and it impacts them on a daily basis, increasingly as the pace of technology advances. The largest challenge is that even regulatory bodies responsible for the insurance industry don’t have firm language guiding their responsibilities; there’s a general lack of understanding from regulators on what role procedures play in safety and proper repairs. Consumers deserve support from the industry and from their elected officials to ensure

“Interest in OEM repair procedures is not a new phenomenon, but this subject has generated a lot of attention in the past few years due to the increasing complexity of modern vehicles,” — Aaron Schulenburg

they receive a safe repair, and that requires us to put some language around these requirements so claims are settled in accordance with those specifications as well.” Redding then provided a brief history lesson on state vehicle safety inspections. He explained that federal law in the 1970s mandated states have some type of safety program to participate in federal programs. However, after Congress revoked that mandate, what started as more than 30 state vehicle safety programs was eventually reduced to just 15 state programs. Currently, the only states with vehicle safety inspection programs in place are Hawaii, Louisiana, Maine, Massachusetts, Maryland, Missouri, New Hampshire, North Carolina, New York, Pennsylvania, Rhode Island, Texas, Virginia, Vermont and West Virginia. Redding stated, “We are proud of these remaining programs and want to defend them. They are regularly attacked in state legislatures, and concerns have already been raised this year due to bills introduced to eliminate or significantly alter these programs.”

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Those bills include Missouri House Bill 451, Texas House Bill 3665, Hawaii House Bill 85, and Virginia House Bill 2068. Missouri House Bill 451 would repeal the requirement that all motor vehicles must obtain an inspection before the vehicle may be licensed. ASA, ACA and TIA all opposed the bill, stressing that periodic vehicle safety inspection programs help protect property and lives. “The Missouri bill is a mirror image of what was presented last year. We fought it in 2018, and the bill died in legislature, but each year, these bills get a little further. We’ve been banning together to stop the Missouri bill, but there are others,” Redding said. Redding introduced Littlefield and Tucker, who expressed concerns with states trying to take safety programs away. Tucker stated, “ACA strongly believes in safety programs and regular vehicle maintenance and care. Vehicles are becoming more technologically sophisticated. My car affects your safety, and your car affects my safety, so if a car isn’t adequately repaired or inspected, we are all in

danger. Every vehicle on the road should meet minimum safety standards, and that’s why these programs are so important. We need to rethink our strategies and become more proactive in the states where these programs are being attacked.” Discussing third-party evidence of how inspection programs impact vehicle safety, the group referenced the University of Texas – Austin study, which looked at economics and safety and affirmed that inspection programs save lives and enhance safety. Tucker pointed out, “You can’t get any better evidence than that. A safety inspection in Texas costs just $9, which is a small price to pay to ensure all vehicles on our roads are safe. Pennsylvania and Missouri also published reports that validate these findings. If we have three groundbreaking safety inspection studies that all say the same thing, the real question is: Why aren’t policymakers listening to real data instead of emotional arguments?” When Redding asked why we see such passion to eliminate these programs from some policymakers, Tucker suggested, “Most policymak-

ers really try to be responsive to the needs of their constituents, so if a constituent brings a concern, the elected officials often try to pursue legislation to fix it, but that’s not always the best solution. “Also, we were missing effective data until the University of Texas issued their report last year. Opponents of the programs have often said there was no good data to prove that the safety inspections save lives, but that’s because when there’s an accident, the first priority is getting the vehicle off the road so traffic can move. Public safety officials aren’t trained to look at the causes of these accidents. States aren’t required to report traffic accidents into the federal database unless there’s a fatality involved, so a lot of good data goes unreported, leaving policymakers to believe the inspection programs are ineffective. We need to do a better job of educating elected officials with good data that demonstrates why these programs are effective.” Redding, Tucker and Littlefield discussed the need to get more people involved. Littlefield suggested, “Maybe

it’s time to reunite and try to make a run for it at the federal level. If we can change some minds in Washington, maybe we can work from the top down.” Tucker added, “Safety is the one thing that brings us all together.” The webinar concluded with a Q and A session, during which Schulenburg noted, “It’s important for the industry, regardless of the issue, to have collaboration. Consumers and the industry deserve a concerted effort to fix these problems.” On April 17, ASA will host its next Webinar Wednesday, titled “Increase Sales and Your Customer Value Proposition with Financing” and presented by Scott Schwalm, assistant vice president, relationship management for Synchrony Car Care. On April 24, ASE campus administrator Dave Capper will present “609 Certification” for technicians. ASA’s May 15th webinar, “Stop Reacting and Start Succeeding,” is intended for shop management and will be presented by Rick White of 180 Biz Solutions. For more information on ASA, visit asashop.org.

BMW Recalls 183,000 Vehicles for Takata Airbag Inflators by David A. Wood, CarComplaints.com

We thank CarComplaints.com for reprint permission. https://www.carcomplaints.com/news/2019/bmwrecalls-183000-vehicles-takata-air bag-inflators.shtml BMW is recalling about 183,000 vehicles to replace Takata airbags at risk of exploding. More than 170,000 of those vehicles had their original steering wheels replaced with the optional sports steering wheels, which contain frontal Takata airbag inflators at risk of rupturing. •

2000-2003 BMW 525i

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• • •

2000-2003 BMW 530i 2000-2003 BMW 540i 2000-2004 BMW X5

In a separate recall of 12,880 vehicles, BMW is recalling the 2015 X1 sDrive28i, X1 xDrive28i and X1 xDrive35i. These vehicles are equipped with driver’s side Takata airbag inflators used as original or replacement equipment. The recalls began March 4. Dealerships have been replacing the Takata airbag modules. Customers with questions should call BMW at 800-525-7417.

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www.autobodynews.com

MAY 2019 AUTOBODY NEWS / autobodynews.com

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autobodynews.com / MAY 2019 AUTOBODY NEWS

Auto Industry: Blocking Trade With Mexico Would Be Disruptive by Nora Naughton, The Detroit News

As President Donald Trump threatens to close the U.S.-Mexico border in an attempt to curb illegal immigration, some in the U.S. auto industry are warning the move could cause major disruptions. Trump told reporters March 29 he “could” close the U.S.-Mexican border to “all trade” as part of a larger effort to force Mexico to crack down on immigration from Central American countries. “If they don’t stop them, we are closing the border,” Trump said. “We’ll close it. And we’ll keep it closed for a long time. I’m not playing games.” The Alliance of Automobile Manufacturers, a Washington-based group that lobbies for most major automakers, pushed back April 1 against any closure to trade. “Automakers rely heavily on cross-border trade throughout the North American region,” the alliance said in a statement. “In many instances, auto parts can cross the border seven to eight times before being integrated into the final assembly of a vehicle. Continued from Page 28

Color Match 101

The paint companies’ color teams track fashion trends and other style markers (possibly economic and environmental factors, etc.) and present their color board to the OEM brand de-

Peter Maier in front of one of his paintings

sign team. After much back-and-forth between the teams, certain colors are selected from each manufacturer, and then each manufacturer is required to formulate each color so they have it available for their shop customers. • Ports of Entry: When a new model vehicle is released with a new paint color, Axalta and the other paint manufacturers will have people from their laboratories go to rail head or 60

“We urge all parties to work together to avert a border closing that would result in significant disruptions to the North American auto industry, because ultimately increased costs hurt customers.” Some 37 percent of all auto parts imported to the U.S. come from Mexico, the country’s third-largest trading partner. Cutting off U.S.Mexican trade could create a ripple effect in the industry that wouldn’t just slow or stop the delivery of vehicles—it could shut down entire plants in the United States. “Building a vehicle becomes very difficult if you don’t have all the pieces to make it work,” said Kristin Dziczek, vice president of Ann Arbor-based Center for Automotive Research. “Depending on how long a closure lasts, there could be some vehicle shortages. But the more immediate effect is shutting down U.S. plants.” In Michigan alone, some five plants stand to be affected if trade between the U.S. and Mexico is brought to a standstill. Among the most vulnerable are Fiat Chrysler Automobiles’ Warren Truck and Jefferson North Assembly

shipping port points of entry and take tens of thousands of camera readings on the actual vehicles coming off the rails or ships. They do this to compare the actual new vehicle reading to what the formula stated so that they can “tweak” their paint formulas if necessary before they provide it to their customers.

After lunch, we met Peter Maier, who creates photorealist paintings of cars. A former employee of General Motors, Maier worked as a senior designer for Cadillac, Pontiac and Chevrolet and went on to pioneer the use of automotive paint in fine art. For example, “1959 Sting Ray” (1996), which is scaled to the exact dimensions of its subject, acquired its shine and saturation of color through more than 20 coats of metallic silver paint. His process of applying layers of color and clear varnish “produces an illusion of depth, surface and saturation not possible with traditional mediums,” Maier said. “Often, my cars and motorcycles look like they are under glass.” Not surprisingly, Maier uses Axalta paints.

MAY 2019 AUTOBODY NEWS / autobodynews.com

plants, and General Motors Co.’s Flint Truck plant, according to data provided by the Center for Automotive Research. Those three Michigan plants all source engines from plants in Mexico. GM and Fiat Chrysler declined to comment, deferring to the Alliance for Automobile Manufacturers. The American Automotive Policy Council, a different trade group that represents GM, Fiat Chrysler and Ford Motor Co., issued a strongly worded statement April 1. “Any action that stops commerce at the border would be harmful to the U.S. economy, and in particular, the auto industry,” said AAPC president Matt Blunt. “Access to Mexico’s market place and North American integration are critical to operations in the U.S.” The White House said April 1 that up to 2,000 inspectors who screen cargo and vehicles on the Mexican border may be reassigned to help handle the influx of migrants. That could slow the movement of goods even if trade isn’t cut off completely. Senior aides defended a border

closing on March 31 news shows, with acting White House chief of staff Mick Mulvaney saying it would take “something dramatic” to avoid the closure. Trump’s threats to close the border are part of the president’s longer-running effort to install a wall at the U.S.-Mexico border. After declaring a national emergency at the border in February, an attempt to access wall funding voted down by Congress, the president has said he would end aid to Guatemala, Honduras and El Salvador. As the industry braces for a possible closure of the Mexican border, several other trade issues hang in the balance. A proposed replacement for the North American Free Trade Agreement—known as the United State-Mexico-Canada Agreement— is still up in the air. And an investigation into whether the Trump administration can levy tariffs on imported cars and parts in the name of national security still sits with the president, who has until May to act on the report. We thank The Detroit News for reprint permission.

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Continued from Cover

Short Pays

By educating himself on the collision repair industry, Scott has been able to recover short pays for the shops. However, he recently came up with a new solution for shops that don’t want to wait months or even years to collect on short pays. Through StopShortPays.com, Scott purchases the right to collect on an insurer’s short pay from the shop. Because Scott pays the shop upfront, the process is quick and easy for the shops, eliminating the need to pursue lawsuits. According to Scott, “Once I purchase the right to collect on a shop’s short pay, it becomes my problem. If the insurance company doesn’t settle, I file a lawsuit, which may take a long time to pursue, but I’m used to it.” Scott will purchase short pays up to two years old. Although he’s based in Texas, he has worked with shops in Colorado and New Jersey and said he’s willing and able to buy short pays from shops anywhere in the country.

Of course, shops who sell the right to collect on short pays receive only a percentage of the original short pay amount, up to 60 percent, and this percentage varies based on the strength of the shop’s documentation. Scott explained, “Some short pays are easier to collect on than others. We need to see an invoice showing what work the shop performed, how much was charged, the amount paid and the outstanding balance. A lot of shops change their invoices to match the insurer’s estimates, making it difficult to pursue the short pay in court because it appears as though the shop was paid in full. “Some shops’ documentation states they ‘agree to repair per the insurer estimate,’ and I don’t like those because it sounds like they’re agreeing to accept what the insurer wants to pay. Other shops make it clear that they have established prices and will accept payment from the insurer but the customer is responsible for the balance. These are much easier to pursue and receive payment on.” If a shop’s documentation isn’t strong enough to hold up in court, Scott may offer a smaller percentage

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Speak at CIECA CONNEX 2019 in Charlottesville, VA

CIECA is looking for a few additional thought leaders and industry professionals to speak at the upcoming annual conference—CIECA CONNEX 2019—in Charlottesville, VA, Sept. 16–18. CIECA invites you to share your knowledge and expertise as we work together to explore emerging issues, forecast for the future and discuss ways to prepare for the road ahead. CIECA CONNEX is the one event where CIECA members and business professionals from all segments of the collision repair industry gather to network and learn from one another. They include repairers, insurers, OEMs, parts and material suppliers, information and software providers, car rental companies, towing companies, salvage and recycled parts providers, auto glass replacement facilities, subrogation providers, general service providers and property restoration providers.

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of the short pay amount, or he may provide coaching on how to organize their documentation in the future. Scott offered advice to shops on ensuring their documentation is as strong as possible. “The customer should sign an authorization that the shop performing the repairs will bill the insurance company but is not waiving their right to collect payment in full,” he said. “The authorization should make it clear that the shop expects to receive the complete amount they invoice. Pre- and post-scanning documentation is helpful for proving what repairs were completed, but the invoice is the most important part and must clearly indicate what work was completed, the charges presented, the amount paid by the insurer, and the balance due.” The goal of StopShortPays.com is to help shops recover short pay losses without engaging in complicated, time-consuming legal processes. According to Scott, “Our process gives shops access to capital they didn’t think they had without the hassle of pursuing litigation themselves.” For more information, visit: StopShortPays.com.

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Mercedes-Benz of Cincinnati Cincinnati

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To prove it has a zero-tolerance policy regarding insurance fraud, GEICO has filed a federal lawsuit in Arizona against an auto glass repair shop suspected of submitting fraudulent glass repair bills, according to a March 25 press release. GEICO seeks to recover damages under civil RICO statutes, as well as for unjust enrichment and fraud. GEICO says the Arizona action is also a preview of future lawsuits. GEICO alleges that its customers’ signatures were forged on invoices submitted by A & E Auto Glass for repairs that were never performed. Specifically, GEICO was billed for repairs associated with recalibration of advanced driver assistance systems using falsified documents. In many instances, such a system was not even available on the specific make and model of the vehicle being repaired. In addition to billing for services that were never provided, the suit alleges that the defendants submitted fabricated documents from Arizona automobile dealer-

ships for reimbursement of glass parts that were never purchased. “GEICO has a zero-tolerance policy when it comes to insurance fraud,” said Shane Wheeler, assistant vice president of claims in GEICO’s Tucson, AZ, office. “These incidents of fraud hurt consumers because they cause premiums to increase.” Wheeler went on to say that GEICO has a long history of seeking out individuals willing to commit fraud. GEICO intends to file future lawsuits to continue making every effort to protect its customers and the public from fraudulent glass repair operators. GEICO filed its case—Government Employees Insurance Company, et al. v. A & E Solheim, LLC, d/b/a A & E Auto Glass, et. al.—in the U.S. District Court for the District of Arizona. GEICO also seeks a declaration that any pending claims are not owed. GEICO is represented by Barry Levy, Rivkin Radler LLP and William Thorpe, Thorpe Shwer P.C.

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MAY 2019 AUTOBODY NEWS / autobodynews.com