April 2024 Southeast Edition

Drivers See Auto Insurance Rates Spike Due To Secret Data Sharing

Drivers are finding themselves at the mercy of their own vehicles’ data-sharing capabilities, leading to unexpected hikes in their car insurance rates, according to a report from the New York Times.

granular driving data. This data, which includes trip durations, distances and driving behaviors like hard braking or rapid acceleration, is used to formulate a risk score for insurers.

Kenn Dahl , a Seattle-based software company owner who drives a Chevrolet Bolt, encountered a bewildering 21% increase in his car insurance premium, despite a clean driving record. The root cause was a detailed data trail of his driving habits, unbeknownst to him, shared by General Motors with LexisNexis, a global data broker.

Dahl’s experience illuminates a growing concern among vehicle owners about privacy and consent. LexisNexis, under its “Risk Solutions” division, traditionally monitored vehicular accidents and violations but is now into analyzing

This practice, while enhancing personalized insurance offerings, raises questions about transparency and consent. Many drivers, like Dahl, are unaware of the extent of data collection and its implications on their insurance costs.

Dahl got quotes from other insurers and found they were also high – the LexisNexis data had been shared with eight insurance companies.

“It felt like a betrayal,” Dahl told the New York Times. “They’re taking information that I didn’t realize was going to be shared and screwing with our insurance.”

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Scout Motors Breaks Ground on $2B EV Plant in South Carolina

Scout Motors Inc. held a ceremony Feb. 15 to officially break ground on its Production Center in Blythewood, SC.

“Today is less about construction and a building and more about a calling and a community,” said Scout Motors President and CEO Scott Keogh. “We’re here to celebrate the

revitalization of an American icon and the reshoring of American jobs. On this land – with our hands and with our technology – we will build great vehicles.”

The groundbreaking ceremony featured several original Scout vehicles and members of the Scout community, as well as a 3D model of the Production Center and virtual content that brought the future factory to life.

“Today’s groundbreaking marks another milestone for Scout Motors and the entire state as we continue to move forward with this project that will supercharge the Midlands’ economy,” said South

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Crash Champions Acquires 9-Location Performance Collision Centers

Crash Champions announced March 6 the acquisition of Performance Collision Centers and its nine locations across Virginia, South Carolina and Georgia. The acquisition officially closed March 1, with operations transitioning immediately to Crash Champions.

“This acquisition represents tremendous positive momentum as we welcome a proven organization to Crash Champions,” said Matt Ebert, founder and CEO of Crash

Drivers of certain GM cars said they had no idea they were enrolled in OnStar Smart Driver, a free feature in GM brands’ connected car apps. Image via Shutterstock.

REGIONAL NEWS

Leading Collision Shop Operators Share Innovative Business Strategies

By John Yoswick Autobody News

One can’t-miss way collision shop owners can find some potentially great business ideas is to ask other shop owners about changes they’ve made recently. Understanding what prompted the changes, how they were implemented, and what the outcome has been can help inspire changes within your own shop.

Here’s a round-up of changes some collision business operators have made in past year or two.

Tiffany Silva of Accurate Auto Body in Richmond, CA, points to staffing changes she’s made at her 25-employee shop that are enabling her to better “work on my business,

same time. So I always have a backup person.

“I like to [quality control check] every vehicle before it leaves my shop, but that’s not always possible,” Silva said. “So having a production team gives us someone based behind the computer, someone out on the shop floor directing traffic, and someone who can always QC vehicles for me. It’s been working out great.”

Dropping DRPs, Adding Co-Pays

Sue Black, who co-owns Dean’s Auto Body in Sheboygan, WI, with her son, said she has eliminated some direct repair programs and negotiated new labor rates with some insurers.

“We have been able to work on that and really pay our technicians what they deserve to be paid so that we can retain them and also train them and keep them qualified to repair the vehicles coming to us,” Black said. She said the shop also has started to sometimes charge customer co-pays.

not in it.” She promoted an existing employee to assist the shop’s production manager, and added a third person to that team in a role she’s calling repair planner.

“She’s helping with [locating] and emailing procedures to the techs and making sure everybody has everything they need to get right on that job, and helping with scheduling,” Silva said of the new hire, whose cousin is a longtime employee at Silva’s shop. “She just graduated [from college] and needed some direction, so we brought her in.”

Despite not knowing anything about the industry, the new employee is “into technology and she can figure out anything we need,” Silva said. “She’s doing all our pre- and post-repair scanning, and arranging the calibrations done by an outside company.”

The employee promoted to assistant production manager had worked in both the paint and body departments at various times while at the shop, “so he’s respected by the entire team,” she said. “They are tag-teaming production. He’s done everything excepting estimating, so he’s learning CCC, and they know they can’t both be on vacation at the

commercial work.

“Because we’ve got a couple accounts now that we’ve groomed in the last couple of years to pay a sizably higher labor rate,” Ricci said.

“We basically made some decisions on what is our fight and what’s not our fight.”

WILL LATUFF LATUFF BROTHERS AUTO BODY

Like Silva, he’s also made some management personnel changes that have been “very fruitful for morale and production.” He came to realize his production manager “wanted to play fireman, but we didn’t want fires,” so he promoted another person to that position. One of the shop’s three estimators now oversees that team and works with the production manager.

“So that removed me a lot more from the day-to-day,” Ricci said. “But

they can see the transactions and what goes on when a supplement is submitted, really lets them know how hard you’re working for them, to get them taken care of.”

The transparency helps keep customers up to date, he said.

“We give them copies of what was submitted [to the insurer], letting them know the deficiencies when it comes back, letting them know what their potential out-of-pocket could be,” Latuff said. “They see we submit a repair plan that’s vastly different than the photo estimate the insurance company created, and it comes back with an initial difference, which is usually pretty large, but by the time we get down to the final bill and the gap is reduced substantially, you’re the hero. They’re happy for everything that you did throughout the repair.”

Better Triaging of Jobs

“We’ve just explained to them: This is what your insurance company is willing to pay for the repair of your vehicle, but here is the research that says that this, this and this needs to be done on your vehicle, and we want to make sure that your vehicle is getting back on the road properly, and in order to do that, you might have to pay some out-of-pocket expense,” Black said. “And because we sit down and really explain the situation to our customers, a lot of them are willing to pay extra to have their vehicle repaired the correct way.”

She said the most common co-pay is to cover the use of OEM parts.

“Consumers really don’t know when they’re buying an insurance policy, what that policy really all entails,” Black said. “I always explain to my customers that the insurance companies are qualified to sell insurance, but we’re qualified to repair your vehicle. I wish we could work together with the insurance companies to really create a safe policy for our consumers to have their vehicles repaired the proper way.”

Personnel Changes, Adding Transparency

it also increased production because of the right attitude of the right two people, as co-managers.”

Will Latuff, president of Latuff Brothers Auto Body in St. Paul, MN, said his company is another one that has “parted ways with several DRPs.”

“We basically made some decisions on what is our fight and what’s not our fight,” Latuff said. “And

Tom Ricci, owner of Body & Paint Center in Hudson, MA, said he’s been pursuing more non-insurance

I think it’s actually helped us support the consumer more. Because keeping them more involved and more updated, and peeling things back so

As the manager of Pacific BMW Collision Center in Glendale, CA, Andrew Batenhorst said parts delays can be significant for BMW parts out of Germany.

“Anything that’s coming from that side of the world is four to six weeks away in some cases,” Batenhorst said. “So what’s been really helpful for us is being very aggressive with how we triage or job sort, deciding what cars are going to come into the shop, and which ones we will keep on the road as long as possible. So on certain job sizes, we can do a quick inspection on them, maybe loosen up the bumper or use an inspection camera to check out possible hidden damage, and we can get a repair plan that’s maybe 85% to 95% of the way through. We can get the parts pre-ordered and arrived, and we can cut the repair time down immensely because we’ve maybe also gone through a supplement approval at that point, too.”

He said one hurdle with this is the amount of space involved in storing more pre-ordered parts than they have in the past.

“So we’ve adapted our logistics to be able to handle it, and it’s worked really well,” he said. “We’ve had a lot of positive feedback from clients. If the car’s just cosmetically damaged, then they’re typically okay with us doing that for them. Now, if it’s not drivable, we’ll have to go ahead and get the car in. But for probably 40% to 50% of our work, we can minimize the downtime here, and it does pay off in the long run.”

Tiffany Silva said personnel shifts within her shop have enabled her more time to work on the business rather than just in the business

Andrew Batenhorst said his shop is better triaging jobs, getting as much of the repair estimate as possible while allowing the customer to keep driving it until parts arrive

Hyundai Announces Earlier Production Start Date At Georgia EV Plant

Hyundai Motor Group plans to begin production at its upcoming Metaplant America facility in Bryan County, GA – its first dedicated EV mass-production plant – in the last quarter of this year. Previously, Hyundai said it would start in the first quarter of 2025.

The announcement was made during an event celebrating the Korean automaker’s impact on Georgia, attended by state officials and Hyundai executives. The General Assembly also passed a resolution recognizing Feb. 26, 2024, as Hyundai Day at the State Capitol.

Hyundai and Genesis electric vehicles, including the IONIQ 5, IONIQ 6, GV60 and electrified GV70, along with the hydrogenpowered XCIENT Fuel Cell Truck, to be used for logistics needs between Hyundai’s manufacturing facilities and suppliers, were on display outside of the State Capitol.

“Georgia is like a second home to us,” said José Muñoz, president and global COO, Hyundai Motor Company, and president and CEO, Hyundai and Genesis Motor North America. “On behalf of all of us at

Hyundai Motor Group, we are very proud that Hyundai’s investments in Georgia will create tens of thousands of great paying American jobs and bring tens of billions of dollars in economic impact for decades to

exactly what kind of historic benefits a project like this would bring to hardworking Georgians when we first began talks with HMG,” said Gov. Brian Kemp. “Hyundai is with us at the table, helping us

come. Thank you to our partners and to the great people of Georgia for your support and for making us feel so much at home.”

“For decades, Hyundai Motor Group has been an incredible partner to our state, and we knew

Ford Demands Dealership Service Training Compliance Amid Repair Concerns

Ford Motor Co. is imposing a training requirement on its dealership technicians, aimed at enhancing the quality of field service actions (FSA), including crucial air bag repairs, to rectify systemic issues that have surfaced, the Detroit Free Press reported.

Ford’s decision came after it determined only 46% of its repair technicians have completed the necessary training to carry out FSAs effectively. These actions, encompassing recalls and customer satisfaction programs, are vital for maintaining vehicle integrity and safety.

In a letter dated Jan. 29, Ford told dealerships they have until April 1 to get the other 54% of technicians up to speed on the training, which includes a new course on supplemental

restraints, covering air bags and seat belt pretensioners.

A recent investigation by the Detroit Free Press uncovered lapses in air bag repair procedures. Ford is currently reevaluating the work on 41,600 vehicles whose air bags were replaced by technicians, dubbed “rogue” by a Ford spokesperson, who failed to complete repairs adequately despite claiming to have done so. Another 232,000 Rangers have been recalled in which replacement air bags may not have been installed correctly because technicians failed to follow instructions.

This training mandate also addresses concerns raised by a whistleblower, who spoke up about an issue with repair fraud and a dilution of standards within Ford’s repair processes.

recruit businesses, giving back to our communities, and working with our world-class colleges and universities to connect more Georgians with great opportunities. We share a focus on the future, and we’re excited for what our long-term

partnership will bring for the coastal region and all of Georgia.”

Hyundai Motor Group is investing $7.6 billion to develop the facility, which will create 8,500 direct jobs. Additionally, Hyundai and SK On are building a $5 billion EV battery cell plant in Bartow County that will employ 3,500 workers. According to a recent Center for Automotive Research study, Hyundai’s investments in Georgia are expected to create nearly 40,000 jobs and create $4.6 billion in individual earnings every year.

The Metaplant America facility is continuing its hiring efforts and has developed educational partnerships with area colleges to create a pipeline for future employment, including the Electric Vehicle Professional Technical Certificate (EVP TCC) being offered at four area technical colleges. Students who successfully complete the program receive preferred status when applying for a position at the new plant.

Those interested in a career at Hyundai Motor Group Metaplant America can apply at careers. HMGMA.com.

Georgia Gov. Brian Kemp, along with other state and Hyundai leaders, celebrate Hyundai Motor Group’s positive impact on the state during Hyundai Day at the State Capitol, Feb. 26, 2024.

Poor-Quality Collision Repairs Cost Everyone, Study Finds

by John Yoswick Autobody News

In an effort to highlight the cost – to shops, insurers, consumers and automakers – of poor-quality collision repairs, the Collision Industry Conference (CIC) Industry Relations Committee earlier this year shared the findings of its study of 26 “relatively late model” vehicles for which significant repair problems were found during post-repair inspections around the country.

In all of the cases, the customer found something they didn’t like about the repair, and therefore had a reinspection done. More than 90% of the 26 were deemed total losses after the post-repair inspection, said Daniel Rosenberger of BASF, a committee member.

“About 50% of them had moderate to severe frame issues that were unaddressed,” he said.

For the subset of the vehicles for which repair cost data was collected, he said, the cost for re-repairs averaged 3.5 times the initial repair cost.

Committee member Erin Solis shared photos and details related to one of the vehicles, a 2016 Subaru WRX for which original repairs cost about $7,000, and the cost for rerepairs was pegged at about $18,500.

“The customer originally went to the [second] shop [after repairs] for some masking lines, some paint matching issues and stuff like that,” Solis said. “The shops doing these post-repair inspections get a copy of the final bill of what was done originally. So they noticed [the original repairer] had billed for framework, yet there was no evidence of any kind of clamping marks or anything to indicate that the vehicle had been up on a rack, or even measured, or pulled properly. The steering column was also not addressed as instructed in the OEM procedures for post-collision. And I believe that this [repair invoice] did not indicate any kind of post-collision inspection requirements, so it was more than just the steering column. And then there was a lot of fitment issues with some of the parts that were used in the repair.”

The committee said there were similar problems found with many of the vehicles.

“Obviously starting with paint flaws, the lack of pre- and postrepair [safety] inspections was prevalent, lack of a pre-alignment or a secondary alignment after the repairs were done, calibrations just

simply overlooked,” committee member Ron Reichen said. “Failure to recognize OEM repair procedures and following a defined process throughout. There were numerous components that were marked on the repair plan as replaced that were either not replaced, or repaired or just simply overlooked. So that’s a lot of what we saw.”

were made under a direct repair program, but she noted, “I can tell you that all of the ones that I personally went through were not fixed in an OEM-certified repair center.”

But Stein said no one should think poor quality repairs are a problem limited to only DRP shops, uncertified shops or MSOs.

“One job that I was alerted to was a certified shop that left [broken] glass in the back seat and in a [child] car seat, and thought that that was OK, that that was acceptable,”

Stein said. “This is a certified shop. So I’m just saying this is a universal problem. It’s easy for us to throw stones, but this is a problem that we are having all over the board. And a good shop can make a mistake. And if you don’t have consistent quality processes

and a quality control system lined out, then you’re playing Russian roulette every time.”

She offered the solutions to the issue of poor quality repairs include a robust quality control system in place at shops.

The committee’s presentation focused on the costs of bad repairs to everyone involved. The notes associated with one of the repairs, for example, indicated the customer had brought the vehicle back to the shop that repaired it nine times to try to have the problems addressed.

“That means nine times that customer had to pause whatever was going on in their life to go address something that continuously wasn’t fixed,” committee member said. “It creates frustration, it creates anger, and it creates suspicion and resentment.”

The automakers, she said, developed certified shop programs in part to help avoid such issues. “When there’s a collision repair event, that tests the manufacturer’s brand,” she said. “So when there’s a poor repair experience, that could mean that the customer has a negative brand impression.”

“The repair facility is either spending money to redo the vehicle, or to buy the vehicle back,” Reichen added. “And at the [insurer] level, what happens if that substandard repair isn’t caught and then that vehicle ends up in another loss? The bill-payer now is paying for previously substandard repairs because of this second loss.”

The committee was asked if there were any commonalities among the shops where the poor quality work was done.

“They were all repaired at what we consider legitimate or licensed repair facilities,” Reichen said.

Solis said the committee did not determine whether or not the repairs

“They were all repaired at what we consider legitimate or licensed repair facilities.”

RON REICHEN

COMMITTEE MEMBER

“Making sure that, no matter what, your people are empowered at any point in the process to stop and say, ‘Hey, wait a minute, this isn’t right,’” Stein said. “That if your painter gets something that looks like a train wreck, he’s supposed to send it back to the technician, and that he’s not penalized for stopping the process. Also, that there’s checklists to make sure all procedures were followed.”

Solis Reichen Rosenberger: A CIC presentation on the costs of poor-quality repairs was given by, from left, Erin Solis, Ron Rechein and Daniel Rosenberger.

Panel moderator Liz Stein said no one should think poor quality repairs are a problem limited to just DRP shops, uncertified shops or MSOs.

Download the Repair Planning Field ReportV3

Discover the ways RepairLogic is improving repair safety by helping repairers adapt to Electric Vehicles and track OEM procedure changes.

What are you waiting for?

Raleigh Debuts First Automotive Museum With Unique Cultural Twist

Raleigh, NC, has welcomed its first automotive museum, The Museum at Car Space, a new cultural hub aiming to transcend traditional museum experiences by integrating car exhibits with a sophisticated cocktail lounge, engaging storytelling and accessible membership options.

“Our mission is to allow everyone in the Triangle to experience and enjoy the legacy of these cars and the memories they evoke,” said co-founder Anthony You. “We believe that cars and art have the power to bring people together and foster both personal and business relationships.”

The Museum introduced two new membership tiers starting at $200 per year. Non-members can also enjoy the museum through single-day admission tickets.

A standout feature of The Museum is its cocktail lounge, where each beverage pays homage to the automobiles on display. For example, the Black Magic cocktail is inspired by the story of Robert Montgomery celebrated MGM actor who served

Secret Data Sharing

The automotive industry is increasingly integrating internetenabled features that offer convenience but also pave the way for extensive data collection. While some programs offer optin mechanisms for usage-based insurance, there’s a growing concern over “stealth enrollment” and the lack of clear disclosure about third-party data access.

Kia, for instance, announced an agreement with LexisNexis in February to “allow eligible customers who have enrolled in Kia Connect Services to opt in to share their driving behavior data to receive a personalized driving experience and to be more informed drivers.” LexisNexis also supplies that data to insurance companies.

in World War II, and the original owner of a 1939 Rolls Royce Wraith showcased in the museum.

The Museum promises an ever-

through exhibits, cocktails and the ambiance we create,” said Dave Younts, CEO of Car Space.

The Museum’s inclusive approach

changing array of exhibits, with the current collection celebrating automotive history until the second week of April. Upcoming exhibits will focus on ‘60s and ‘70s muscle cars, incorporating

extends to its membership and admission options. The base membership offers unlimited access to car exhibits, cocktails and simulators, while the Collector Membership includes privileges

Trueclaim.ai has joined CIECA as a new corporate member. Established in 2021 and based in Montreal, Canada, the company was founded by Elie Lloyd, a software engineer and certified architect.

Lloyd’s parents owned a body shop for more than 25 years before the family began supplying collision repair products to body shops.

Trueclaim.ai was created to detect vehicle damage and estimate parts, operations and the price for repairs using artificial intelligence (AI), and integrates with car rental companies, car auctions and car salvage systems.

“The goal is to help shops communicate the damage accurately to insurers so they can get paid faster and more efficiently for the repairs done

Cost-Effective OEM Quality: Inside Car-Rep’s 2K Game Changer

2024A Leap in Technology: Wise 2K®

Ever wish you could do OEM quality spot repair without the need to mix or activate 2K and waste expensive materials? Dream no longer, Car-Rep’s revolutionary Wise 2K® aerosol paint technology delivers a 2-component smart repair solution requiring no activation or mixing. More importantly, and unlike the traditional 2K systems it offers a revolutionary unlimited pot life. This isn’t just good news for waste reduction; it’s a game changer in expediting your workflow and reducing material costs while achieving OEM quality results.

How Does it Work?

Car-Rep’s patented Wise 2K® technology features a deactivated hardener and the resin packed in the same compartment. The 2K reaction happens when the product is sprayed: first the hardener activates when it meets humidity in the air and second, the components crosslink. With no reaction in the can you can use all the contents without the worry of product waste. Car-Rep’s 2K Smart Repair System feature both epoxy and polyurethane technologies, and create a great opportunity to eliminate 1K aerosols which do not meet OEM performance standards.

Meeting OEM Quality Standards for Corrosion Resistance with Car-Rep® 2K Epoxy eCoats and Primer Sealers

“You must apply 2K epoxy to all bare metal surfaces prior to applying any seam sealer, body filler, or other refinishing products,” mandates Honda similar to all OEMs. Car-Rep 2K Epoxy Primer Sealers and eCoats provide optimal corrosion protection and adhesion. They are ideal for use on any bare metal (exterior skin or inner structures), between spot welded panels (Weld Thru), as a sealer before base coat or urethane primer as well as under seam sealers and body fillers.Since sanding is not needed and recoat window is 48 hours Car-Rep® 2K epoxies are ideal for reducing booth bottle necks and maximizing efficiency in shop operations without sacrificing OEM quality.

As the first and only 2K epoxy aerosol eCoats Car-Rep® 2K truly deliver the performance to match the original factory ecoating. Available in 5 original manufacturer colors and sheen these eCoats are like powder coating in the can and make it possible to do fast spot repairs on the shop floor without sacrificing quality or value.

Featured in the builds of John Wargo at SEMA 2022 and 2023 Car-Rep® 2K Epoxy DTM Top Coats are quickly becoming the top choice for custom builders and painters. With single stage application on practically all substrates these 2K epoxies are ideal for chassis refreshments, engine bays and suspension parts as well as replacing 1K trim paints in a single-stage application. Car-Rep 2K top coats make it easy to achieve scratch, corrosion, chemical and UV resistance with strong adhesion.

Still using 1K Clear for spot repair or quick check for spray outs? Car-Rep 2K Polyurethane Clear Coat with unlimited potlife delivers a professional and realistic solution for spray out cards, small parts, door jambs, mirror covers, headlight restoration and more.

Boosting Shop Efficiency

Car-Rep®’s 2K Smart Repair System transforms collision repair shops for the better. The advanced solution contributes to a more efficient workflow, allowing for less expensive, quicker and more effective repair completion. This increase in efficiency doesn’t just mean happier customers due to faster service; it also means a higher volume of jobs completed without compromising on quality.

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Crash Champions

Champions. “The Performance Collision Centers team and its nine locations have a strong legacy of delivering consistent, highquality repair service across the Southeast. We look forward to the great value they will add as we continue forward in our strategic growth plan.”

With the acquisition, Crash Champions expands its overall national network to more than 625 locations in 37 states across the U.S. It also adds a lineup of nine high-quality repair centers that have consistently garnered certifications from many of the nation’s top automotive manufacturers.

“We are extremely proud of the legacy Performance Collision has created by delivering bestin-class quality and service to our customers across the Southeast,” said Michael Sifen , owner of Performance Collision Centers. “It speaks volumes about our team to join Matt Ebert and the premier founder-led MSO in the industry. I’m confident that this next chapter will provide our team and customers with exponential opportunities.”

Kia Settles For Up To $145M Over Theft Claims

Hyundai Motor Co., which owns the Hyundai, Genesis and Kia brands, and Kia Corp. have agreed to a settlement potentially worth up to $145 million to resolve allegations that certain Kia vehicles were manufactured with design flaws making them easy targets for theft and damage.

The resolution comes after a series of class action lawsuits claimed the vehicles lacked essential engine immobilizers, rendering them susceptible to thefts, especially those propagated via social media platforms like TikTok.

The settlement encompasses a wide range of Kia models purchased or leased between 2011 and 2022 in the U.S. and its territories, including Puerto Rico, the U.S. Virgin Islands and Guam. The agreement does not preclude claims related to personal injury, death or subrogation by licensed insurers, maintaining the rights of individuals affected by these issues beyond the scope of theft and damage.

Under the terms of the settlement, eligible class members,

specifically owners of certain models ranging from the 20112022 Kia Forte to the 2020-2022 Kia Soul, can benefit from various forms of compensation. These

may receive up to $300 in reimbursement per vehicle for antitheft measures. The settlement outlines compensation for out-ofpocket and uncompensated losses

include a free software upgrade designed to prevent the vehicles from starting without the key present -- a response to the method of theft popularized on social media. Additionally, reimbursements for the purchase of steering wheel locks or similar anti-theft devices, as well as for the installation of glass-breakage alarms or other aftermarket anti-theft systems, are available to those impacted.

For vehicles ineligible for the software upgrade, owners

resulting from theft or attempted theft, including up to 60% of the vehicle’s value for total loss and up to $3,375 or 33% for damage incurred.

The settlement establishes a fund ranging from $80 million to $145 million to cover these claims. The deadline to opt out of or object to the settlement is May 3, 2024. The final fairness hearing in the Kia theft settlement is July 15, 2024. The deadline to submit a claim is Jan. 11, 2025.

Mike Anderson

— From the Desk of Mike

Anderson

Common Situation in Shops Leads to Unintended Damage to Vehicle Interior

Earlier this year, a collision shop owner shared a story with me about something he experienced at his shop that really surprised me. Since it involved a common situation – a vehicle sitting in the shop’s lot crashwrapped because of a broken sunroof – that led to additional damage to the vehicle, I thought I’d share his story as a caution to the rest of the industry.

Kris Wyatt said the truck was in the lot of his shop, Wyatt’s Paint & Body in San Bernardino, CA. It rained shortly after the truck was crashwrapped, and then a few days later, the sun came out.

“The rain had gathered in the crash wrap, creating a small pool of water,” Kris told me. “Then the sun shone through that water, which acted like a magnifying glass. That actually burned the seat and the door trim panel. I would never have thought this would happen.”

As Kris joked, the crash wrap did its job by keeping the water out, but, man, that combination of the pool of water and the sun did a number on

the interior of the truck. It might be a one-time freak occurrence, but it’s a situation you might want to warn your employees to keep an eye out for.

I want to thank Kris for sharing this with me, and if other readers have experiences that might be helpful for

other shops to know about, send them to my assistant, Tiffany Driggers, at tiffany@ collisionadvice.com, and she will get them to me.

“That actually burned the seat and the door trim panel.”

KRIS WYATT ATTRIBUTION ATTRIBUTION

A small pool of rain water on the crash wrap protecting a truck with a broken sunroof unexpectedly led to interior damage to the vehicle at a California shop.

A pool of water acted as a magnifying glass for sunlight, resulting in heat damage to an interior trim panel.

The sunlight magnified through a small pool of water on the crash wrap on top of a vehicle caused burn damage to one of the vehicle’s seats..

Technology Can Improve Collision Repair Process – But Only If It’s Used

By Abby Andrews Autobody News

The collision repair industry should embrace new technology to improve collaboration between repairers, insurers, parts distributors and customers, according to Mike Anderson, who presented “Embracing Technology to be Successful in the Collision Industry,” a CIECA webinar on Feb. 22.

A replay of the 47-minute presentation is available on CIECA’s YouTube channel.

Anderson is a former Virginia-based MSO owner, who now owns Collision Advice.

Anderson said the collision repair industry lags behind many others in using technology, and he thinks it boils down to a lack of trust.

“Let’s talk about what can be accomplished if we had full transparency and trust between all stakeholders,” he said.

Consumers

Shops need to ensure customers’ personal identifying information is erased from total loss vehicles before they go to a salvage yard. Anderson said he is also concerned about how often he sees shops sharing pictures on social media that show a vehicle’s license plate.

“I appreciate techs want to post the quality of their work but at the end of the day, it’s about consumer privacy,” he said.

Anderson said it might be time to rethink the customer survey experience. Customers in a recent focus group reported “survey fatigue”: after filling out one survey, be it from the rental car company, insurer or shop, they tended to feel more negative toward the rest.

“Do we need to have all these different entities doing surveys, or can we just agree on one common solution that can be accepted by all parties?” Anderson said. “We have to ask ourselves if we want to continue with surveys, or are online reviews going to be the survey of the future?”

Customer Service

Anderson said technology can make shops “available” 24/7 to receive estimate requests or schedule an appointment, through their websites or Google business listing. An AIpowered chat feature could be used to answer questions, or to answer calls for a tow.

Estimators

According to a recent “Who Pays for What?” survey, only 31% of shops

research OEM repair procedures “all the time” and 29% “most of the time.” Anderson said the most common reasons for not doing that are “I don’t have enough time” followed by “I don’t know how.” Neither are acceptable excuses, Anderson said.

The industry should embrace solutions that allow a vendor to export an invoice back into a shop’s management system, Anderson said.

“There are some management systems do that today but the problem is on the wholesale parts department

“That’s very scary for me on behalf of the consumer,” he said.

However, he acknowledged, there can be 300 to 400 documents to research just to replace a quarter panel.

“We need to use technology to figure out how can we speed up this process,” Anderson said. “I would like to see technology that can figure out the difference in estimates when a collision repairer comes up with one figure and the insurance carrier or third-party payer comes up with another.”

Another issue is the fact onetime use parts are not identified in electronic parts catalogs, only in electronic service manuals or repair procedures, so estimators must look up those parts separately.

“OEMs could supply info to thirdparty estimators to find symbols or words like ‘replace’ or ‘discard,’” Anderson said “I have to believe technology could do that.”

AI can be best put to use by giving it a shop’s historical data to figure out its optimum Work in Progress (WIP), to streamline the scheduling process to increase throughput.

“Listen, throughput benefits everyone,” Anderson said. “But what’s holding us back is getting down to trust – between other software companies, equipment companies. We all need to learn how to play in the sandbox together.”

Parts Departments

Estimating systems are not 100% accurate at identifying one-time use parts, Anderson said. Improving that would help parts employees so they don’t have to research them.

Insurance Carriers

A focus group of about 40 field appraisers working for a top 10 carrier said they would appreciate, when they get an assignment, being told details like there are dogs at the customer’s house.

They also said they want the ability to figure out electronically the difference between their and the shop’s estimates, because it takes a lot of time to do so manually.

Refinish Suppliers

Anderson said shops buy parts from their jobber or distributor in as many as 13 different “buckets,” double the number from eight to 10 years ago.

“We need to talk about how we reclassify some of these things, what is actually paint materials and what is not,” he said.

OEMs

side – if there’s a part that’s not ordered from me, that throws the whole system out of whack. Let’s stop the madness,” he said.

He also suggested a website where a shop’s accounting department could go to find a missing parts credit, instead of having to spend time on the phone tracking it down, and programs to show inventory at the warehouse so repairers can make more accurate decisions on when to schedule a vehicle.

Accounting and Human Resources

Anderson suggested getting dealership accounting software companies involved in CIECA, so they can see how to make it integrate with body shop management systems.

There is also no software system for the industry specific to HR. Anderson, who conducts OEM certification training, said he often gets emails from shops whose technicians’ certifications are near expiration and need to get them in a class on short notice. A program could auto generate reminders to update certifications.

Software systems could also provide a more modern onboarding experience to anyone who comes to work in the industry.

Wholesale Parts Vendors

Shops want wholesale parts distributors that accept electronic parts ordering, process credits in a timely manner, have good inventory, great communication and the ability to scrub parts order by VIN, Anderson said. Dealerships also want electronic parts ordering, as well as distributors that pay bills on time and have minimal returns.

“Electronic is the common theme,” Anderson said.

There is a need for a program to streamline the process to write a repair estimate for a vehicle damaged during transportation, Anderson said.

OEMs also need to get the electronic parts catalog division to talk to the electronic service manual division so one-time use parts are identified, then push that to estimating systems.

A lot of shops are purchasing OEM scan tools but not getting the training to use them properly, Anderson said. Online training on using those tools would be helpful.

Equipment Manufacturers

Anderson said technology could be used to automate updates for equipment, as those can be critical to consumer safety. Network management tools could push out notifications to update equipment as needed.

Final Thoughts

“Software can be used for the good of the industry, to save people time and give them quality of life and a better consumer experience, it can be used to ensure safe and proper repairs and increase profitability,” Anderson said.

Anderson acknowledged technology comes with questions, like the morality of using parts pricematching software or the risk of data pumps that report estimates to vehicle history report generators like CARFAX.

“I just want to help everyone in our industry so that their team, or your staff, has a better quality of life,” he said. “The key to that is what can we do to help our industry go back to where people trust each other again? Let’s use technology to help our industry keep up with others.”

Technology can save time and improve the customer experience. Image via Shutterstock.

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ProColor Collision Expands To East Coast With North Carolina Shop

The first ProColor Collision in North Carolina now serves the greater Greensboro area as part of ProColor Collision’s growing family of advanced collision repair facilities in the U.S. The new location is owned and operated by Russ Morgan, who has spent more than 30 years in the collision repair industry.

Located at 3125 Spring Garden St., ProColor Collision Greensboro West, formerly Phoenix Body and Paint LLC, is I-CAR Gold certified and equipped with state-of-theart facilities, a dedicated customer service team and technicians who provide customers a positive experience from beginning to end.

“After serving in the military in Desert Storm, I decided to pursue my lifelong interest in automobiles and trained to be a collision technician,” said Morgan. “After spending more than 25 years doing auto body work, I opened my own business and built this shop from the ground up.”

What started seven years ago as one bumper job and a focus on the future grew into a thriving business thanks to the efforts of

Carolina Gov. Henry McMaster

“We applaud Scout Motors for their commitment, which will continue to move South Carolina towards a future defined by innovation and prosperity.”

The site spans approximately 1,600 acres, with the plant itself occupying 1,100 acres. Bordered by I-77 and Blythewood Road, it will be located less than 20 miles north of Columbia and near major cities and talent hubs such as Charleston, Charlotte, Greenville and Atlanta. This proximity gives Scout Motors access to major highways, ports of Charleston and Savannah, and colleges and universities focused on automotive engineering.

Vehicle production is targeted to begin by the end of 2026, with the first retail sales of trucks and SUVs occurring soon thereafter.

During the ceremony, Jim Poiry , a

Morgan’s son, Ryan, and the rest of the dedicated team. With steady growth came the challenges of managing customer needs and supplier relationships, developing strategies to work with various insurers, and providing resources and benefits for a growing team.

“After talking with a few organizations that wanted to purchase my successful business, I learned about ProColor Collision,” said Morgan. “They provide the perfect combination of support and resources to help us continue to grow. I remain a business owner but now have the backing of an international organization that provides buying power,

former plant manager at the original Scout factory in Fort Wayne, IN, presented a brick from that factory to the Scout Motors team. The brick, generously gifted to Scout Motors by Harvester Homecoming and the Tippman family, will help build the foundation for the new Production Center.

“We could not be more proud to build our Production Center, workforce and vehicles here in Blythewood, SC,” said Dr. Jan Spies Scout Motors chief production officer. “At our peak capacity, we plan to produce 200,000 vehicles a year here – that’s 40 per hour.”

relationships with insurers, proven business tools, ongoing training and the ability to offer benefits that most small independent shops aren’t able to provide. I know we haven’t reached our peak yet and with this added support, the future is bright for the employees and customers of ProColor Collision Greensboro West.”

ProColor Collision Greensboro West appreciates its community members and supports the greater Greensboro community’s veterans, first responders, hospital employees and University of North Carolina Greensboro students with a 10% discount on all services.

“We couldn’t have asked for a better shop owner and team to be the first ProColor Collision location in North Carolina,” said  Scott Bridges, senior vice president of Fix Network, ProColor Collision USA. “We are confident Russ and his team will be a successful part of our family of accomplished collision repair facilities and will meet the auto body repair needs of private and commercial customers through the greater Greensboro area.”

Scout Motors’ trucks and SUVs will be built on a newly designed all-electric platform, engineered to deliver capability and off-road prowess, with a focus on ground clearance, approach angles, robust axles, payload capacity, all-electric range and new digital features.

Scout Motors has now hired nearly 350 employees since its inception in 2022.

kcashman@autobodynews.com

WIN Conference Announces Speakers, Programming

The Women’s Industry Network (WIN) announced a full slate of in-depth professional collision repair industry programing, inspiring keynote speakers, and networking and mentoring opportunities 2024 Annual Conference, themed Dream Out Loud, set for May 6-8 at the Hyatt Regency Newport Beach, CA, offering both inperson and virtual attendance opportunities.

The conference will celebrate women in the industry by raising funds for collision repair student scholarships, recognizing scholarship winners, taking part in community giveback, and honoring this year’s Most Influential Women recipients.

WIN is excited to announce an extensive curriculum during the event, as this year’s conference offers multiple timely topics presented by several prominent speakers.

To see the agenda and register, visit thewomensindustrynetwork. site-ym.com/page/Conference

IIHS TOP SAFETY PICKs Met New Higher Criteria

The Insurance Institute for Highway Safety is making it harder to earn its TOP SAFETY PICK and TOP SAFETY PICK+ awards in 2024, challenging manufacturers to offer better protection for back seat passengers and improve their pedestrian crash avoidance systems.

However, 71 models qualify for 2024 awards. Of those, 22 earn TOP SAFETY PICK+, and 49 earn TOP SAFETY PICK.

“We followed the tougher requirements we introduced last year with another major update to the award criteria in 2024,” said IIHS President David Harkey. “This year’s winners are true standouts, offering the highest level of protection for both vehicle occupants and other vulnerable road users.”

Last year’s biggest change was the replacement of the original side crash test with an updated version that uses a heavier barrier traveling at a higher speed. Initially, an acceptable or good rating was enough to garner the lowertier TOP SAFETY PICK award. In 2024, a good rating is required for either TOP SAFETY PICK or TOP SAFETY PICK+.

In addition, vehicles now need an acceptable or good rating in a revised version of the pedestrian front crash prevention evaluation to qualify for either award. The new version replaces the earlier daytime and nighttime tests with a single evaluation that includes some test runs in daylight and some in the dark. Last year, vehicles could earn the lower-tier award regardless of whether they could detect and avoid pedestrians in the dark.

In an even bigger change, the updated moderate front overlap test has replaced the original evaluation in the 2024 TOP SAFETY PICK+ requirements. Vehicles now need an acceptable or good rating in the updated evaluation, which adds a second dummy seated behind the driver and emphasizes back seat safety. A good rating in the original moderate overlap test is still needed for the base TOP SAFETY PICK award.

As before, to earn either award, a vehicle must offer good protection in a small overlap front crash, in which 25% of the vehicle’s width on either side collides with another vehicle or a stationary object. This year, the driverside and passenger-side evaluations have been combined into a single rating. The test is performed on both the driver and passenger sides, and the rating is equivalent to the lower of the two results.

Award winners also must have good or acceptable headlights equipped on all trim levels.

Hyundai Motor Group, which includes the Genesis, Hyundai and Kia brands, has the most 2024 awards overall – six TOP SAFETY PICK+ and

10 TOP SAFETY PICK awards for a total of 16. Toyota Motor Corp., which includes the Toyota and Lexus brands, has the next highest total with one TOP SAFETY PICK+ and 12 TOP SAFETY PICK awards. Mazda earns the most TOP SAFETY PICK+ awards of any single brand, with five, as well as one TOP SAFETY PICK.

By class, small SUVs, midsize SUVs and midsize luxury SUVs are tied for the most TOP SAFETY PICK+ awards, with five each. Midsize luxury SUVs, which qualify for an additional 12 TOP SAFETY PICK awards, earn the most awards overall. Relatively few cars and pickups qualify for either award.

“The high number of SUVs that earn awards probably reflects the dominance of those vehicles in the U.S. market,” said Harkey. “But it’s disappointing that only four pickups and four midsize cars earn awards, considering the popularity of those classes.”

The changes to the 2024 award criteria are designed to push automakers to pursue higher levels of safety.

IIHS introduced the original moderate overlap front test in 1995. At the time, most vehicles earned ratings of poor or marginal. For the past decade, virtually every vehicle tested has earned a good rating thanks to stronger vehicle structures, the introduction of front and side-curtain airbags and a series of improvements in seat belt technology.

That represents a big win for safety. An analysis of 14 years’ worth of crash data involving IIHS-rated vehicles shows that a driver of a model rated good in the original moderate overlap test is 46% less likely to die in a head-on crash with a similar vehicle, compared with a driver of a model rated poor.

IIHS introduced the updated test to encourage similar advancements in the back seat. Once, second-row occupants were substantially safer than those seated in the front because of the greater distance between them and the impact in a frontal crash. In today’s vehicles, though, there is barely any deformation of the occupant compartment in the moderate overlap test. In addition, automakers have added airbags and advanced seat belts in the front seats but not often in the rear. As a result, in vehicles from model year 2007 onward, the risk of a fatal injury is higher for belted occupants in the rear seat than in the front.

To spur automakers to address that gap, the updated test includes an additional dummy positioned in the second row behind the driver and uses new metrics that focus on the injuries most frequently seen in rearseat occupants. Many automakers have made substantial progress since the first group of ratings was released in

December 2022. Making an acceptable or good rating a requirement for TOP SAFETY PICK+ is the next step in accelerating those improvements.

The tougher standards for pedestrian front crash prevention systems are grounded in similar progress. In 2019, when IIHS launched the daytime vehicle-to-pedestrian evaluation, only 21% of the vehicles tested earned the highest rating of superior, while 44% of new models didn’t even offer the technology. By 2023, 59% of vehicles earned superior ratings in the daytime test, and 40% also earned superior ratings in the nighttime evaluation, which was introduced a year earlier.

An advanced or superior rating in the daytime test was required for a 2023 TOP SAFETY PICK award, and an advanced or superior rating in the nighttime test was necessary to earn the “plus.” For 2024, IIHS has combined the two tests into a single evaluation, making nighttime performance essential for either award. The

2024 TOP SAFETY PICK+ Winners

Small Cars

Acura Integra

Mazda 3 hatchback

Mazda 3 sedan

Toyota Prius

Midsize Cars

Honda Accord Hyundai IONIQ 6

Large Luxury Car

Genesis Electrified G80

Small SUVs

Genesis GV60

Honda HR-V

Hyundai Kona

Mazda CX-30

Mazda CX-50 (built after August 2023)

Midsize SUVs

Ford Explorer

Kia Telluride

Mazda CX-90

Nissan Pathfinder (built after November 2023)

Subaru Ascent

Midsize Luxury SUVs

Acura MDX

BMW X3

Genesis GV80 (built after August 2023)

Mercedes-Benz GLE Class (with optional front crash prevention)

Tesla Model Y

2024 TOP SAFETY PICK Winners

Small Cars

Hyundai Elantra

Subaru Impreza

Toyota Prius Prime

Midsize Cars

Subaru Outback

Toyota Camry

Large Car

Toyota Crown

Midsize Luxury Cars

BMW 5 series

Mercedes-Benz C-Class

Large Luxury Cars

Genesis G80

Genesis G90

superior/advanced/basic/no credit scale has been replaced by the good/ acceptable/marginal/poor scale used for other IIHS evaluations. This subtle change recognizes that technology that detects and brakes for pedestrians should be expected on all vehicles.

Pedestrians represent an increasingly large share of crash deaths, and pedestrian fatalities are currently at their highest level since the early 1980s. Most pedestrian crashes occur during the day, when there are more people on the roads, but threequarters of fatal pedestrian crashes happen at night.

“There’s still progress to be made in the protection that vehicles provide for their occupants, as the introduction of the updated moderate overlap test shows,” Harkey said. “But many of the biggest gains of the future will come from automakers and policymakers, along with all of us as car buyers and drivers, taking steps to protect everyone on the road, not just our own families.”

Small SUVs

BMW X1

Honda CR-V

Hyundai IONIQ 5

Hyundai Tucson

Kia Sportage

Lexus UX

Lexus RZ Subaru Solterra

Midsize SUVs

Honda Pilot

Hyundai Palisade

Jeep Grand Cherokee

Jeep Grand Cherokee L

Mazda CX-90 PHEV

Nissan Ariya

Toyota Highlander

Volkswagen Atlas

Volkswagen Atlas Cross Sport

Large SUVs

Audi Q7

Audi Q8 e-tron

Audi Q8 Sportback e-tron

Rivian R1S

Midsize Luxury SUVs

Acura RDX

Audi Q4 e-tron

Audi Q4 Sportback e-tron

Genesis Electrified GV70

Genesis GV70 (built after November 2023)

Infiniti QX60

Lexus NX

Lexus NX Plug-in Hybrid

Lexus RX

Mercedes-Benz GLC

Volvo XC90

Volvo XC90 Recharge

Minivans

Honda Odyssey

Toyota Sienna

Small Pickup

Hyundai Santa Cruz

Large Pickups

Rivian R1T crew cab

Toyota Tundra crew cab

Toyota Tundra extended cab

Toyota Alabama To Build i-FORCE Engine Line For

Toyota Alabama announced the start of production on its i-FORCE 2.4-liter turbo engine line for the all-new Tacoma, powered by a previous investment of $222 million.

Globally, Toyota continues to go big in its commitment to carbonreducing and carbon-neutral products, with plans to invest more than $70 billion in vehicle electrification through 2030.

“The completion of the i-FORCE 2.4-liter turbo engine line marks a significant milestone for Toyota Alabama and further supports job stability for our 2,000 employees,” said Jason Puckett, president of Toyota Alabama. “Now, with Tacoma offering a hybrid option, every line at our plant includes engines for hybrid vehicles. It’s our team and their skills that have paved the way for this plant to play a critical role in Toyota’s electrified future.”

The i-FORCE 2.4-liter turbo engine line marks the plant’s sixth building expansion and brings Toyota Alabama’s total investment to $1.5 billion. In 2023, the plant achieved record production, assembling more than 777,000 engines for Toyota vehicles manufactured in North America. The plant produces four- and six-cylinder engines for popular Toyota vehicles such as the Tundra, Sequoia, Corolla, Corolla Cross, Tacoma, Highlander, Sienna and RAV4.

New Tacoma

The new line demonstrates Toyota’s commitment to long-term employment and the success of its operational communities. Last year, Toyota announced two key initiatives: a $49 million solar array, in partnership with Huntsville Utilities and Toyota Tsusho, to supply more than 70% of Toyota Alabama’s energy needs when completed; and grants of up to $6.7 million to help prepare Huntsville City Schools’ students for future STEM careers. The grants are part of Toyota USA Foundation’s Driving Possibilities initiative and will fund a five-year phased rollout of programming in select schools.

“The completion of the i-FORCE 2.4-liter turbo engine line marks a significant milestone for Toyota Alabama and further supports job stability for our 2,000 employees,”

JASON PUCKETT, PRESIDENT OF TOYOTA ALABAMA

AkzoNobel announced the nationwide availability of the Modern Classikk by Kindig custom automotive paint line at select Advance Auto Parts and Carquest Auto Parts stores. This collaboration brings together AkzoNobel’s advanced Sikkens base coat technology with the design expertise of Dave Kindig from Kindig-It Design and the popular television show, “Bitchin’ Rides.”

Currently, nearly 400 Advance and Carquest stores offer the Modern Classikk paint line, with additional locations being added regularly. Customers can check the availability of the product at their nearest store by visiting Modern Classikk’s website or contacting their local Advance or Carquest store team. The paint products are also accessible online at ModernClassikk.com.

Each store will provide literature and paint chip fan decks. Once customers select their preferred colors, store personnel will place an order, and AkzoNobel will deliver the customized paint order to the nearby Advance or Carquest store for convenient pickup.

State Lawmakers Consider Bills Related To Parts, Labor Rates, Appraisal Clauses

By John Yoswick Autobody News

State legislatures around the country are reviewing proposed laws that could have a variety of impacts on the collision repair industry.

A House committee in Massachusetts in February gave a thumbs up to H 4412, a bill that calls for establishing a minimum reimbursement body shop labor rate by adjusting the labor rate in effect in 1988 by the rate of inflation since then.

During a House committee hearing in Washington state earlier this year, lawmakers heard testimony for and against HB 2011, a bill that would give policyholders the right to call for an independent appraisal when there’s a disagreement about repair costs. Jeff Butler, a Seattle shop owner who also operates as an independent adjuster through Collison Consulting of Washington, told lawmakers the amounts he helps consumers recover because of underpaid claims averages $7,200.

“That’s 78% more than the insurer’s last offer [and] 19% more than on total loss cases…and I won those cases using the insurance company’s umpire,” Butler testified.

“This is a pattern and practice in Washington state.”

SB 2745, introduced in Mississippi, would define a “proper repair” as one performed “pursuant to the OEM repair procedures and using OEM or OEM-equivalent parts that have been properly tested…to meet the manufacturer’s specifications.” It would prohibit an insurer from stating or suggesting an insured must use a particular shop, or a

shop “identified on a preferred list compiled by an insurer.” It would require these provisions be “clearly and prominently” stated “on the face of the insurance policy.”

The Automobile Body Parts Association (ABPA), which represents manufacturers and distributors of non-OEM parts, submitted testimony

opposing the bill, focusing on another portion of the bill, which states, “Restoration of the vehicle to its condition prior to the loss includes repair processes.” The bill defines those as “as the explicit processes, tolerances and other technical requirements or instructions for the repair of a motor vehicle…that the motor vehicle manufacturer makes generally available to dealerships, independent repair shops and insurers.” The bill states it does not mandate an insurance company pay for OEM parts “except to the extent that the use of alternate parts would fail to restore the vehicle to its condition prior to the loss.”

The ABPA, however, told lawmakers “any bill language restricting the use of alternative parts, in favor of self-serving repair processes that primarily benefit OEM manufacturers, could lead to a monopolistic environment detrimental to consumers.”

The ABPA also testified at a February hearing in Idaho opposing

recommend “that you consult with a qualified industry expert or repair shop before making any decisions regarding the use of non-OEM crash parts.”

The ABPA also is opposing a Rhode Island bill, H 7264, that would prohibit an insurer from denying the use of OEM parts on vehicles four to six years old if the repairer has written consent from the vehicle owner to

“This is a pattern and practice in Washington state.”

JEFF BUTLER COLLISON CONSULTING OF WASHINGTON

install OEM parts. Existing state law there prohibits the required use of non-OEM parts for vehicles up to four years old unless the repairer has written consent from the vehicle owner.

The Automotive Service Association has created a webpage where Oklahomans can quickly send a letter to their state legislators to

Apple Ends EV Project As Consumer Preferences Shift

Apple has officially stopped development of its electric car, a project that began a decade ago and aimed to revolutionize the automotive industry.

The decision comes amid broader economic challenges and a shift in consumer demand affecting the electric vehicle (EV) market.

A decade after initiating Project Titan, its ambitious endeavor to enter the automotive sector, Apple cancelled the project, part of a realignment in response to the current economic climate and industry trends. Shares of Apple saw a slight increase of 0.7% in afternoon trading Feb. 27, after news of the project’s demise was reported, recovering from earlier losses.

The cessation of the electric car project has led to the reassignment of several team members to Apple’s artificial intelligence division, as reported by Bloomberg News.

Apple declined to comment.

Rising interest rates aimed at

curbing inflation has dampened consumer enthusiasm for high-priced electric vehicles, prompting not only Apple but also established automakers to reassess their strategies. Companies like Tesla have scaled back investments, with a growing focus on hybrid models over fully electric vehicles.

The journey of Project Titan was marked by ambition as well as challenges. Initially sparked by the Silicon Valley craze for self-driving technology, Apple aimed to redefine transportation. Reuters reported in 2020 the possibility of an Apple vehicle launch by 2024 or 2025. However, the path was fraught with obstacles, including a major workforce reduction in 2019. As recently as January, Bloomberg reported Apple was still planning to launch its own EV in 2028, but one featuring “limited autonomous driving,” instead of a fully driverless vehicle.

Majority of Workers At Mercedes-Benz Alabama Plant Support Unionization

A majority of workers at the Mercedes-Benz U.S. International (MBUSI) plant in Vance, AL, have expressed their intention to unionize under the United Auto Workers (UAW), part of a growing trend among non-union autoworkers to organize for better conditions and wages.

“A majority of our coworkers at Mercedes here in Alabama have signed our union cards and are ready to win our union and a better life with the UAW,” said Jeremy Kimbrell , a Mercedes worker, in a video message.

The workers’ push for unionization at MBUSI, which began in January, is driven by several critical issues, including prolonged periods without meaningful raises, a divisive two-tier wage system, and the exploitation of temporary workers. These concerns mirror the grievances that fueled the UAW’s Stand Up Strike last year against the

Big Three, and have ignited a wave of organizing activity among America’s non-union autoworkers.

“There comes a time when enough is enough,” Kimbrell said. “Now is that time. We know what the company, what the politicians, and what their multi-millionaire buddies will say. They’ll say now is not the right time. Or that this is not the right way. But here’s the thing. This is our decision. It’s our life. It’s our community. These are our families. It’s up to us.”

The union support at MBUSI represents the second plant in February to reach a majority in favor of unionizing, following a similar achievement by Volkswagen workers in Chattanooga, TN. More than 10,000 non-union autoworkers across 14 auto companies have initiated efforts to join the UAW, riding the wave of the historic victories achieved through the Stand Up Strike.

New Vehicle Inventory Rising Again

February saw a resurgence in new vehicle inventory, from 2.54 million units in January to 2.69 million units, coupled with a noteworthy decrease in pricing, according to data from Cloud Theory, a provider of real-time automotive data insights. The surge also surpassed the December figures of 2.64 million.

Following a temporary decline in January, new vehicles sold also saw a strong recovery in February, reaching 1.06 million, a 13% month-over-month increase.

Cloud Theory anticipates this upward trend to continue, forecasting a movement of 1.10 million vehicles in March, matching the peak levels observed over the past year.

While inventory and movement are on the rise, vehicle pricing is experiencing a downward trajectory. For the first time in more than a year, prices have dipped below the $50,000 mark, although the rate of decline has decelerated over the recent months.

“As expected, the new vehicle market shook off the January declines that are typically seen as a new year kicks off,” said Rick Wainschel, vice president, data science and analytics at Cloud Theory. “The growth in both supply and demand is a welcome sign, though the former is still increasing faster than the latter over the long haul, which points to a selling environment that will continue to be challenging.”

Cloud Theory’s proprietary Inventory Efficiency Index reveals a stable month-overmonth scenario, with Toyota maintaining its lead, followed by Honda and Cadillac. General Motors, with Chevrolet rising to seventh and GMC to eighth, demonstrates efficiency across its diverse portfolio.

“GM’s performance is a testament to an OEM’s ability to achieve efficiency, regardless of its size,” said Ron Boe , chief revenue officer at Cloud Theory.

Orlando Mazda Dealership Has Cool Technicians

Classic Mazda in Orlando, FL, has dramatically cut its energy expenses by more than 40% while enhancing employee morale and retention, thanks to its recent investment in solar energy and air conditioning.

“We’ve always known our mechanics were cool,” Rogers said with a smile. “Providing them with a climate-controlled workspace is part of our ongoing commitment to reward and retain this region’s best and brightest auto technicians.”

“By installing rooftop solar panels along with an air conditioning system, we not only reduced our carbon footprint and energy costs, we also experienced a rise in technician efficiency, morale and retention,” said General Manager Chad Rogers

The installation comprised

630 solar panels, each with a capacity of 480 watts, enabling the facility to generate more than 440,000 kilowatt hours annually.

ESA Solar, a Florida-based clean energy corporation, collaborated with the dealership on this project.

“Together we’re reducing costs and driving sustainability in a tangible way that resonates with modern consumers,” said ESA Account Executive Anne Shirley Lewis

U.S. House Holds Hearing on EV Fire Challenges

The U.S. House Science, Space & Technology Committee’s Investigation and Oversight Subcommittee held a hearing Feb. 29 on the growing concern over electric vehicle fires, revealing the distinct and formidable challenges they present compared to traditional vehicle fires. The discussion emphasized the necessity for advanced research and specialized training for emergency responders to effectively tackle these incidents.

Subcommittee Chairman U.S. Rep. Jay Obernolte, R-CA, noted in his opening remarks that, “as the presence of these vehicles continues to grow on our roads, so does the threat and danger of the fires that they can produce. EV fires are fundamentally different from traditional internal combustion engine fires…EV fires burn at temperatures far hotter than regular vehicle fires. They produce copious amounts of toxic chemical gases.”

He added that, “when an EV either experiences an incident due to a manufacturing defect or is damaged in an accident, the battery that powers that vehicle often has a remaining charge,” which “provides

the fuel to keep a battery burning for hours, regardless of how much water is poured on it in an attempt to extinguish it. Unfortunately, the federal government has been deficient in providing guidance and resources…”

During the hearing, lawmakers explored potential solutions and preventative measures to mitigate the risks associated with EV fires.

“I believe there are tremendous opportunities for scientific research to reduce these risks by advancing our understanding of why lithium-ion batteries react in these ways, how the design of lithium-ion batteries can be improved to lessen the risk of fires, and what innovative tools and techniques can be developed,” said

Virginia Supreme Court Reinstates Verdict in Classic Car Conversion Case

The Supreme Court of Virginia reinstated a jury verdict in favor of Bryant McCants, whose 1970 Ford Mustang was wrongfully declared abandoned and sold by a repair shop owner. This decision comes after the Court of Appeals of Virginia had previously found the shop owner’s actions were protected under Virginia’s abandoned-vehicle law.

According to Virginia Lawyers Weekly, the saga began when McCants entrusted his Mustang to Maaco Collision Repair and Auto Painting, where part-owner Hanson Butler oversaw the vehicle’s repairs. After a series

Ranking Member U.S. Rep. Valerie Foushee, D-NC.

Full committee Ranking Member U.S. Rep. Zoe Lofgren, D-CA, added, “as with any emerging technology, we need to make sure we understand and adapt to the unique challenges that arise from its widespread adoption… over the decades, we’ve developed best practices to extinguish internal combustion fires as safely and quickly as possible. Now, we need to give that level of attention and support to research into electric vehicles.”

Testimonies from experts like Dan Munsey, fire chief for San Bernardino County in California, highlighted the practical implications of EV fires. Munsey estimated a substantial $3 billion would be required to train all U.S. firefighters to effectively handle EV-related emergencies.

Dr. Judy Jevarajan introduced the idea of developing methods for remote access to vehicle data to identify and address potential risks, while also acknowledging the cybersecurity concerns associated with such solutions.

Automotive Service Association Board of Directors Chairman Scott Benavidez thanked the committee

for holding a hearing on this important topic.

“Independent auto repairers simultaneously constitute one of the groups most adversely impacted by EV fires, yet also one of the groups in the best position to help address them,” Benavidez said. “There are numerous instances in which damaged EVs have caught fire and caused damage to the repair facility at which it was being held, as well as other vehicles in its vicinity. Due to these risks, repair shops are now encouraged to allocate space in their facility where they can isolate EVs for safe storage.

“At the same time, repairers possess high baseline expertise in automotive issues, which make us ideal partners for first responders trying to prevent or extinguish EV fires,” Benavidez continued. “ASA calls on the federal government to coordinate with the independent automotive repair industry in its efforts to address the growing concerns surrounding fires caused by EVs. Assuring that repair shops receive proper training to handle EVs safely should be a top priority for policymakers.”

of misunderstandings and miscommunications, Butler used Virginia’s abandoned-vehicle process to obtain the title to the Mustang and sold it.

The jury originally sided with McCants, awarding him $78,500 in compensatory damages, a verdict the Court of Appeals later overturned. However, the Supreme Court found substantial evidence supporting the jury’s decision, noting discrepancies in Butler’s claims and emphasizing the credibility judgments that juries are tasked with making.

Justice D. Arthur Kelsey, writing for the court, said the issue was whether Butler wrongfully used the abandoned-vehicle process to sever McCants’s ownership rights, thereby converting the vehicle for his own use. The Supreme Court’s scrutiny of the evidence and legal standards led to the reinstatement of the jury’s verdict, affirming the vehicle was indeed wrongfully converted.

Credit: Image via Shutterstock.

St. Johns County Fire Rescue in Florida shared to Facebook this photo of a 2023 Mercedes-Benz EQE 350+ sedan that caught fire in a home garage in August 2023.

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Please contact these dealers for your Honda or Acura Genuine parts needs.

HONDA

ALABAMA

Carlock Honda

Birmingham

800-987-0819

205-949-5457

Dept Hours: M-F 8-6 robert thompson@carlockcars com

FLORIDA

AutoNation Honda

Clearwater

Clearwater

888-205-2564

727-530-1173

Dept Hours: M-F 7-7; Sat 8-5; Sun 10-3 santosr1@autonation com

AutoNation Honda

Hollywood

Hollywood

800-542-8121

954-964-8300

Dept Hours: M-F 7-7; Sat 7-5; Sun 9-5 hernandeze@autonation�com

Classic Honda

Orlando

888-893-4984

407-521-1115

Dept Hours: M-F 7-7; Sat 8-4 parts@classichonda com

Headquarter Honda

Clermont

800-497-2294

407-395-7374

Dept Hours: M-F 8-7; Sat 8-5 pepe guevara@headquarterhonda com

ACURA

FLORIDA

Acura of Orange Park

Jacksonville

888-941-7278

904-777-1008

Dept� Hours: M-F 7-8; Sat 7-5; Sun 9-3 msweeney@acuraoforangepark com

Duval Acura

Jacksonville

800-352-2872

904-725-1149

Dept Hours: M-F 7-7; Sat 8-5 Cecil adams@duvalacura com

FLORIDA

Hendrick Honda

Pompano Beach

Pompano Beach

954-425-8244

Dept Hours: M-Fri 7-6; Sat 7-5; gerardbruno@hendrickauto com

Holler Honda

Orlando

407-442-1938

Dept Hours: M-F 7-6; Sat 7-4 parts@hollerhonda com

Rick Case Honda

Davie

877-544-2249

Dept Hours: M-F 7-7; Sat 7:30-4 robbutton@rickcase com

South Motors Honda

Miami

888-418-3513

305-256-2240

Dept Hours: M-F 8-7 mfranceschi@southhonda com

GEORGIA

Ed Voyles Honda Marietta

800-334-3719

770-933-5870 Direct

Dept Hours: M-F 7-7; Sat 7-6 hondaparts@edvoyles com

FLORIDA

Rick Case Acura

Fort Lauderdale

800-876-1150

954-377-7688

Dept Hours: M-F 7:30-6; Sat 8-5 rubenramos@rickcase com

GEORGIA

Jackson Acura

Roswell

877-622-2871

678-259-9500

Dept Hours: M-F 7-6; Sat 7:30-6 kmcmillan@jacksonacura com

GEORGIA

Gerald Jones Honda

Augusta

800-733-2210

706-228-7040

Dept Hours: M-F 7:30-6; Sat 8-5 tdunn@geraldjoneshonda com

Honda Mall of Georgia

Buford/Gwinnett

678-318-3155

Dept Hours: M-F 7-7; Sat 7-5 cdunlap@penskeautomotive com

Milton Martin Honda

Gainesville

770-534-0086

678-989-5473

Dept Hours: M-F 7:30-6 robertthomas@mmhonda com

Honda of Newnan

Newnan

678-423-8183

Dept Hours: M-F 7-6; Sat 7-4 samuel trapani@henrickauto com

Nalley Honda

Union City

866-362-8034

770-306-4646

Dept Hours: M-F 7:30-7; Sat 8-5 hondawp@nalleycars com

MISSISSIPPI

Patty Peck Honda

Ridgeland

800-748-8676

601-957-3400

Dept Hours: M-F 7:30-6; Sat 8-5 pmartin@pattypeckhonda com

GEORGIA

Nalley Acura Marietta

800-899-7278

770-422-3138

Dept Hours: M-F 7-7; Sat 7-5 byoung@nalleycars com

NO. CAROLINA

Flow Acura

Winston-Salem

800-489-3534

336-761-3682

Dept Hours: M-F 7:30-6; Sat 8-1 www flowacura com

NO. CAROLINA

Apple Tree Honda

Asheville

800-476-9411

828-684-4400

Dept Hours: M-F 8-5; Sat 8-4 appletreeparts@hotmail com

McKenney-Salinas Honda

Gastonia

888-703-7109

704-824-8844 x 624

Dept Hours: M-F 7:30-5:30 parts@mshonda com

Vann York Automall

High Point

336-841-6200

Dept Hours: M-F 7:30-6; Sat 8-3

SO. CAROLINA

Fred Anderson Honda

Greenville

864-234-6481

Dept Hours: M-F 7:30-6; Sat 8-5 hgrparts@anderson-auto net

Piedmont Honda

Anderson

800-849-5057

864-375-2082

Dept Hours: M-F 7:30-6; Sat 8-5 swhite@piedmontcars com

VIRGINIA

Karen Radley Acura

Woodbridge

800-355-2818

703-550-0205

Dept Hours: M-F 7:30-5:30; Sat 8-3 coreythompson@radleyautogroup com

TENNESSEE

Airport Honda

Alcoa

800-264-4721

865-970-7792

Dept Hours: M-F 7:30-6:30; Sat 7:30-5 parts@airporthonda com

AutoNation Honda

West Knoxville

Knoxville

800-824-1301

865-218-5461

Dept Hours: M-F 7:30-6 rossd1@autonation com

Wolfchase Honda

Bartlett

800-982-7290

901-255-3780

Dept Hours: M-F 7-7 ekerr@wolfchasehonda com

VIRGINIA

Checkered Flag Honda

Norfolk

800-277-2122

757-687-3453

Dept Hours: M-Sat 7:30-6 honda checkeredflag com

Hall Honda

Virginia Beach

800-482-9606

757-431-4329

Dept Hours: M-F 8-7; Sat 8-5 fox@hallauto com

VIRGINIA

Valley Honda

Staunton

800-277-0598

540-213-9016

Dept Hours: M-F 7:30-5:30; Sat 9-5 bwimer@myvalleyhonda com

West Broad Honda

Richmond

800-446-0160

804-672-8811

Dept Hours: M-Fri 7:30-6:30; Sat 8-5 wbhonda@aol com

Honda and Acura Genuine Parts is an online ordering portal for repair facilities to order parts directly from the Honda/Acura Dealer(s) of their choice.

North Carolina High School Students Earn Scholarships To Technical Institute

By Mike Barnhardt Davie County Enterprise Record

Two Davie County High School students, senior Rylan Koontz and sophomore Jackson Barrett, competed in Universal Technical Institute’s Top Tech Challenge on

The Davie duo competed individually in a series of five hands-on assessments and a 50-question written exam to test their knowledge of automotive tools, systems, and repair procedures. The team competed against 23 other high school teams.

Feb. 24 at the Mooresville, NC, campus. The challenge is made up of two-person teams from high schools across North Carolina, South Carolina and Virginia.

www.autobodynews.com

Both were awarded $1,000 scholarships to the Universal Technical Institute for their sixth place finish. Koontz and Barrett competed in the North Carolina SkillsUSA Regional Rally.

Universal Technical Institute is a leading provider of postsecondary education for students seeking career opportunities in the automotive, diesel, collision repair, welding and machining industries.

Mitchell, an Enlyte company, and Classic Collision, LLC, one of the top four largest MSOs in the nation, on Feb. 29 announced they have signed a multi-year agreement. The enterprise licensing agreement gives all current and future Classic Collision locations access to Mitchell Cloud Estimating with Integrated Repair Procedures as well as the company’s Paintless Dent Repair (PDR) calculator.

A Mitchell customer since 2013, Classic Collision already has nearly 100 repair facilities using Mitchell Cloud Estimating. The remaining locations will be onboarded by the end of Q1 2024.

“Classic Collision has experienced exponential growth over the last few years, and we are thrilled to support the organization’s ongoing expansion,” said Debbie Day, executive vice president and general manager of Mitchell’s Auto Physical Damage division. “With the aid of Mitchell’s innovative technology, Classic Collision can take advantage of new tools designed to help return customers to the road safely while continuing

to grow its U.S. footprint.”

Released in 2017, Mitchell Cloud Estimating allows repairers to write comprehensive appraisals of collision-damaged passenger, commercial and specialty vehicles. They can then upload photos, submit estimates and communicate with insurance partners and customers using the Mitchell platform.

Created to significantly reduce time spent on research, Mitchell Cloud Estimating features Integrated Repair Procedures that surface OEM information critical to restoring the vehicle to preaccident condition as the estimate is written. With the company’s PDR calculator, estimators can also quickly determine the cost of minor dents, dings and body creases and add them to the appraisal.

Classic Collision is the second U.S. MSO to sign an enterprise license agreement for Mitchell Cloud Estimating. Additional information about the solution is available at www.mitchell.com/ solutions/auto-physical-damage/ estimating/cloud.

Classic Collision Expands in Florida

Classic Collision announced the acquisition of three key auto repair facilities in Florida: Empire Auto Body in Pompano Beach, Factory Certified Collision in Oakland Park, and Southeast Collision Center in Boca Raton.

The move increases Classic Collision’s footprint in the Florida market to 52 locations.

“Our company vision was to help people get back to their routine and lives with ease of mind, and I know the Classic family will uphold that commitment to our customers,” said Anthony Morello, former owner of the acquired centers.

We are thrilled to welcome all three locations to the Classic Family, expanding our Florida market to 52 locations,” said Toan Nguyen, CEO of Classic Collision. “We recognize their high customer service standards and look forward to furthering that in our Florida market. We are just beginning our 2024 aggressive growth plan and look forward to sharing those future announcements as they unfold.”

The U.S. Department of Transportation (DOT) opened applications for a funding initiative aimed at bolstering roadway safety across the nation. A total of $1.3 billion is being offered to cities, towns, counties, Tribal governments and Metropolitan Planning Organizations (MPOs) through the Safe Streets and Roads for All (SS4A) grant program.

This initiative, a key component of President Joe Biden’s Bipartisan Infrastructure Law, is designed to support local projects geared towards reducing the number of deaths and serious injuries occurring on the nation’s highways, streets and roads.

“Every community knows some intersection or stretch of road that is dangerous to approach – now we have an opportunity to make them safer,” said U.S. Transportation Secretary Pete Buttigieg. “The Biden-Harris administration is proud to make over $1.2 billion available for projects that can save lives on our roads, from highway redesigns to protected bike lanes, and we invite communities of

every size to apply.”

This announcement comes on the heels of last year’s allocation of $1.7 billion in grants under SS4A, which impacted roadway safety for approximately 70% of the U.S. population, addressing more than 60% of traffic fatalities recorded between 2017 and 2021. With

“Every community knows some intersection or stretch of road that is dangerous to approach – now we have an opportunity to make them safer,” PETE

more than $1 billion available this year, the DOT is encouraging communities, especially those that have not previously applied, to take advantage of this opportunity. The program is placing a special emphasis on communities with higher fatality rates, offering them additional award considerations.

The SS4A initiative not only

supports the development of road safety action plans but also facilitates the implementation of interventions aimed at improving unsafe roadway corridors. This includes experimenting with safety features like separated bicycle lanes and curb extensions at intersections.

The application process has been designed to increase accessibility, especially for smaller communities, Tribal governments and newcomers to federal funding. This includes a simplified application process, multiple deadlines, a pre-application review to determine eligibility for implementation funding, and specific guidance for using Tribal Transportation Program funds as a local match.

Applications for implementation grants are due May 16. Planning and demonstration grant applicants will have three opportunities to apply — the deadlines are April 4, May 16 and Aug. 29.

For further information, visit www.transportation.gov/grants/ SS4A.

Survey Shows Collision Repair Techs Looking For Advancement Opportunities, Benefits, Training

In response to the growing challenges faced by the collision repair industry in retaining and attracting skilled technicians, I-CAR, in collaboration with the Society of Collision Repair Specialists (SCRS), engaged with  Ducker Carlisle, a global consulting firm, to conduct a technician satisfaction survey researching their opinions on compensation, culture and career opportunities.

This comprehensive white paper showcases the unique perspective of collision repair technicians and aims to better understand their sentiments and career outlook while identifying key factors influencing their workplace satisfaction.

This survey, which was conducted in 2023 and involved more than 800 collision repair technicians, provided valuable insights into various aspects of the profession. Ducker Carlisle’s comprehensive experience in the automotive space and their history of surveying, analyzing and benchmarking the perspective of diesel and mechanical technicians was instrumental in helping the collision repair industry understand recruitment and retention challenges.

The survey also allowed a basis for comparison between those two automotive service sectors which often compete with the collision repair industry for technician talent.

“The white paper’s groundbreaking results shed light on critical areas that need attention within our industry,” said  Dara Goroff, vice president of planning and industry talent programming. “We’re already starting to provide solutions that address the issues contributing to attrition with the goal of enhancing technician satisfaction to help the industry attract, engage, educate and retain the top talent that will foster the industry’s sustainability, growth and success.”

The white paper sheds light on critical areas, including:

Overall satisfaction: While collision techs express higher satisfaction than dealer service counterparts, more than a quarter are still considering leaving their roles. They are are also hesitant to recommend the career to others.

Compensation and Pay Plans:

High earning potential exists, as a large portion of tenured techs earn more than $100,000 per year, but disparities

based on experience and shop type create barriers for newer techs. More than 60% of techs are on flat rate pay plans, which is also very unpopular –flat rate technicians overwhelmingly would not recommend the career.

Benefits Offerings: Lack of clear offerings or awareness poses a challenge in attracting and retaining talent. Health insurance and paid time off are only offered by about 15% of shops.

Career Outlook & Progression: Nearly half are dissatisfied with or unaware of advancement opportunities. This is a problem for the industry – opportunity for career advancement is very strongly correlated with overall technician satisfaction. In addition, technicians who may be looking for other opportunities don’t have to look far, as they are regularly being recruited by competing shops.

Technical Training: Average dissatisfaction highlights the need for improved and consistent training options. Investing in training opportunities is an important way for shops to demonstrate they value their technicians and want to provide strong growth and career paths. Of course, improved training offerings

also benefit the shop as the shop gains a higher skilled workforce – it’s a win-win.

New Technology: Collision techs express excitement about working on emerging technologies, offering a potential recruiting advantage.

“The industry recognizes that collision repair technicians are indispensable to our business operations. Their pivotal role is evident, and the current industry landscape, marked by an annual turnover rate of 30% to 40% among technicians, underscores the challenges we face,” added Aaron Schulenberg, executive director of SCRS. “In light of the pressing technician retention crisis, understanding the sentiments and career outlook of our skilled technicians has become a paramount concern for the industry’s sustained success.”

While recruiting new technicians is important, retaining those already employed is just as, if not more important.

For more detailed findings and insights, the complete white paper is available for viewing at info.i-car. com/I-CAR/media/ICarMain/PDF/ Collision-Technician-Survey.pdf.

EV Prices To Undercut ICE Vehicles by 2027, Gartner Finds

Market research firm Gartner announced March 7 that battery electric vehicles (EVs) are set to become more cost-effective to produce than comparable internal combustion engine (ICE) vehicles by 2027, Reuters reported. The milestone is attributed to innovative manufacturing methods poised to drastically reduce production costs.

Gartner’s research showed these cost reductions will outpace the decreasing costs of EV batteries, which currently represent about 40% of an electric vehicle’s price.

“Innovations that simplify production costs, such as centralized vehicle architecture or the introduction of gigacastings, are pivotal in reducing manufacturing costs and assembly time,” the firm stated.

Gigacastings, a technique popularized by Tesla, involve large casting machines that manufacture substantial single pieces of vehicle underbodies. This method not only

streamlines production but also minimizes the labor required from robots, enhancing overall efficiency.

“This [new technology] means BEVs will reach ICE cost parity much faster than initially expected, but at the same time, it will make some repairs of BEVs considerably costlier,”

PEDRO PACHECO VICE PRESIDENT OF RESEARCH AT GARTNER

“This [new technology] means BEVs will reach ICE cost parity much faster than initially expected, but at the same time, it will make some repairs of BEVs considerably costlier,” Pedro Pacheco , vice president of research at Gartner, told Reuters.

However, the report also highlights a potential downside to these advancements. The

average cost of repairing an EV’s body and battery after a severe accident is projected to surge by 30% by 2027. This increase could result in more vehicles being declared total losses after collisions, as repair costs may exceed their residual values.

Consumer apprehension regarding the high repair costs of EVs has already been noted as a concern. Gartner warns of a potential backlash if production cost savings lead to escalated repair expenses. Additionally, the firm anticipates a consolidation in the EV industry, with an estimated 15% of EV companies founded in the last decade facing acquisition or bankruptcy by 2027.

Despite these challenges, Pacheco remains optimistic about the EV sector’s future. “This does not mean the EV sector is crumbling. It is simply entering a new phase where companies with superior products and services will prevail,” he said.

Wayne Kelly Returns To Abra As VP of Operations

Abra announced Wayne Kelly has made a return to the network where he began his career. Now serving as the vice president of operations, Kelly’s homecoming is timed with Abra’s 40th anniversary.

When Kelly started out as a technician at a young age, in Minnesota, Abra was a fledgling brand. As it grew – and began franchising in 1987 – Kelly grew with them, running locations, managing operations and recruiting new franchise owners. A member of the original Abra family, he took great pride seeing Abra evolve into a powerful brand in the collision repair industry.

Under the larger umbrella of Driven Brands since 2019, Abra has benefited from enhanced resources, operational expertise and educational opportunities. In his new position, Kelly will capitalize on these advantages, focusing on operational improvements, leadership development and strategic expansion. The introduction of the Driven Brands EPG (EDGE Performance Groups) is one initiative aimed at bolstering Abra owners.

“Se Habla Espanol ”

Car ADAS Solutions’ Calibration Tech Certification Program Recognized by I-CAR

Car ADAS Solutions announced its ADAS Calibration Technician Certification Program has been qualified by I-CAR for Industry Training Alliance course credits, becoming one of only 20+ such alliance partners nationwide. Car ADAS Solutions’ program was developed in 2020 as part of the company’s ADAS solution for the industry.

“As an I-CAR sustaining partner, we are proud to have our program be recognized as an I-CAR Industry Training Alliance course,” said Greg Peeters , CEO of Car ADAS Solutions. “Utilizing I-CAR’s online courses as a prerequisite for our 80-hour hands-on training program allows us to focus on tactile learning, including calibration, programming, diagnostic and repair skills.”

Peeters said this enables Car ADAS Solutions to develop a solid technical foundation that team members continue to build on through the company’s technical support and quality assurance programs.

“We value our partnership with I-CAR, their leadership, and the great work they are doing for our industry,” he added.

“We stand for quality training, not just I-CAR training,” said John Van Alstyne , CEO and president of I-CAR. “As we proactively respond to the changes ADAS is driving in the collision repair industry, we embrace the opportunity to add our sustaining partner, Car ADAS Solutions, to the I-CAR Industry Training Alliance. This recognition allows technicians and shops that invest their resources into training to apply their achievement to the

Platinum and Gold Class.”

The I-CAR Industry Training Alliance acknowledges the accomplishments of training through qualified providers. Technicians can train with I-CAR and alliance partners, receiving credits for approved courses, and facilitating their attainment of Platinum and Gold Class certifications. There is no additional cost to the learner or collision repair facility.

ultimate designations of I-CAR

“Not only does this reduce

redundant training, but it also greatly benefits individuals and businesses by simplifying the education process and improving overall industry efficiency while encouraging a continuous learning mindset for the ultimate benefit and safety of the consumer,” explained Van Alstyne. “It is a winwin for the industry.”

To qualify, alliance partners must be I-CAR sustaining partners and hold accreditation from a recognized third-party accreditor, like International Accreditors for Continuing Education and Training (IACET), Accrediting Council for Continuing Education & Training (ACCET) or Learning and Performance Institute (LPI), or be an Automotive Service Excellence (ASE)-accredited trainer.

They must also offer courses that meet the nonprofit organization’s industry knowledge and skills protocol. The protocol sets educational knowledge and skills objectives necessary to perform complete, safe and quality repairs, as defined by the collision repair industry in cooperation with I-CAR.

“Through Industry Training Alliance partnerships with Car

ADAS and other collaborators, I-CAR strives to improve and simplify access to education opportunities, ensuring technicians possess the knowledge and skills needed to adapt to industry changes,” said Van Alstyne.

In recognition of the increasing significance of ADAS expertise in the industry, I-CAR introduced a professional development path for ADAS technicians in 2022, offering Platinum recognition under the newly launched ADAS technician role. Van Alstyne said this acknowledged the growing importance of ADAS-related roles and provided a structured path for technicians to enhance their skills in this area, underscoring the need for specialized training in response to the prevalence of ADAS-equipped vehicles.

It is currently an “optional role” not required for shop’s Gold Class achievement; Gold Class does require a selection of foundational ADAS-related courses to help ensure shops are aware of repair requirements.

“Through partnerships with industry leaders like Car ADAS, technicians have more opportunities to stay updated on the latest technology developments, aligning with I-CAR’s ongoing

efforts to attract and deploy skilled technician talent throughout the industry,” he added.

For individuals striving to achieve Platinum as evidence of their expertise in the growing field of ADAS, Van Alstyne said having options for completing the capstone course requirement of a hands-on course is an advantage that collision repair professionals deserve.

“I-CAR champions technical education like Car ADAS Solutions provides that supports and complements the nonprofit organization’s vision that every person in the collision repair industry has the information, knowledge and skills required to perform complete, safe and quality repairs for the ultimate benefit of the consumer,” noted Van Alstyne.

He said addressing the demands of ADAS repairs, one of the fastest growing and most technically demanding aspects of the collision repair industry, underscores the importance of preparedness among repair shops nationwide.

“Shops prioritizing ADAS training and related competencies will be well-positioned to lead repair services in their local markets,” he said.

Survey Reveals Deep Mistrust in Car Dealership Pricing

The U.S. The 2024 KPA Dealership Trust Survey, conducted by The Harris Poll, found about one-third of Americans have experienced things like deceptive selling, hidden fees or dishonest salespeople. Yet more than three-quarters of Americans –76% – don’t trust dealerships to be honest about pricing.

Regarding experience with dealerships:

• 34% have felt pressured to purchase add-ons

• 30% agreed on the price and when they went to sign the paperwork found there were hidden fees

• 28% felt like the salesperson was trying to “trick” them into a deal

• 29% left one dealership and went to another because they didn’t think they were being honest in their pricing

Regarding perceptions of dealerships:

• 86% are concerned about hidden fees when buying/leasing a vehicle

• 76% don’t trust car dealerships to be honest about pricing

• 84% say price transparency is

lacking at most car dealerships

The survey results come on the heels of the announcement of the Federal Trade Commission’s (FTC) Combating Auto Retail Scams (CARS) Rule, which would protect consumers from deceptive selling or leasing practices. Over the past year, the FTC enacted additional rules for dealerships around pricing transparency, financing, unnecessary add-ons and keeping customer information secure. Dealerships that don’t follow these laws and regulations can face heavy fines from the FTC at more than $50,000 per violation, which is roughly equal to the cost of an average car ($48,000) on the sales lot. Beyond fines, violations can also make dealers appear less trustworthy to potential customers.

“Buying or leasing a vehicle is a major financial decision for many Americans,” said Chris Fanning, CEO of KPA. “KPA partners with dealerships to help them operate in compliance with current regulations while also building trust with their customers and earning their dollars.”

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alternative to BEVs: Recently, news reports have suggested that plug-in hybrid vehicles could solve many of the issues plaguing BEVs, such as range limitations and lack of public charging availability. However, this year’s study finds that owners of PHEVs are, on the whole, much less satisfied with their vehicle than are owners of BEVs. Overall satisfaction with PHEVs is 629, while mass market BEVs (718) and premium BEVs (750) score much higher.

“Plug-in hybrids may not be the simple solution to solving early issues with full battery electric vehicles,” Gruber said. “Expected lower running costs is a top purchase reason for EVs but satisfaction with the cost of ownership is much lower for plug-in hybrids. Plug-in hybrids retain the costs of maintaining a traditional powertrain yet without the benefit of the extended electric driving range found in full battery electric vehicles.”

Study Rankings

BMW i4 ranks highest overall and highest in the premium BEV segment with a score of 800. Rivian R1T (789) ranks second and Rivian R1S (778) ranks third.

MINI Cooper Electric ranks highest in the mass market BEV segment for a second consecutive year, with a score of 770. Ford Mustang Mach-E (764)

ranks second and Hyundai IONIQ 6 (759) ranks third.

The number of award-eligible models in the premium segment has grown from five to eight year over year. Award-eligible mass market models have increased from 10 to 14. Satisfaction among owners of premium EVs averages 750, while satisfaction among mass market EV owners averages 718.

The U.S. Electric Vehicle Experience (EVX) Ownership Study, now in its fourth year, focuses on the crucial first year of ownership. The overall EVX ownership index score measures electric vehicle owner satisfaction in both premium and mass market segments. The 2024 study includes 10 factors (in alphabetical order): accuracy of stated battery range; availability of public charging stations; battery range; cost of ownership; driving enjoyment; ease of charging at home; interior and exterior styling; safety and technology features; service experience; and vehicle quality and reliability.

The study is conducted in collaboration with PlugShare, an EV driver app maker and research firm. Survey respondents for the 2024 study include 4,650 owners of 2023 and 2024 model-year BEVs and PHEVs. The study was fielded from August through December 2023.

Since joining Driven Brands in January 2022, Auto Glass Now has been rebranding all of the acquired locations under its name and refreshing the locations with bright, welcoming customer service lobbies and the latest tools and equipment. Each Auto Glass Now location has a team of highly trained experts in auto glass repair, replacement and Advanced Driver Assistance Systems (ADAS) calibration.

Auto Glass Now, with a history spanning more than three decades, now has more than 200 physical locations and more than 700 mobile units, due to strategic acquisitions and a series of new openings, making Auto Glass Now one of the fastest-growing entities in the sector.

Each Auto Glass Now location has a team of specialists proficient in a wide range of services, ensuring customers receive toptier service, irrespective of their auto glass needs.

“Drivers want a national brand they can trust for high-quality, reliable auto glass repair, no matter where they travel, along

with a national warranty to protect their repairs,” said Nick Ouimet, president of Auto Glass Now.

“Now, whether they move to a new city, go on a road trip or have an incident on their daily drive to work, they can rely on having an Auto Glass Now location or mobile service nearby to repair their damage and replace their windshield.”

Now part of the Auto Glass Now family, brands previously known as All-Star Glass, Horizon Auto Glass, A1 Auto Glass, Auto Glass Fitters and Discount Auto Glass have been rebranded and remodeled to Auto Glass Now’s brand identity.

“Auto Glass Now continues to grow and polish our customer experience by making auto glass servicing increasingly fast, reliable and convenient,” said Ouimet. “We’re proud to continue the legacy of our local experts to build a respected nationwide brand. Through our national network, Auto Glass Now delivers the kind of scale and efficiency that only a nationwide company can offer.”

Auto Retailers Face Shrinking Profits Amid Price Cuts

Several U.S. auto retailers have reported a downturn in profits in the last quarter of 2023, largely attributed to the implementation of price cuts and incentives aimed at attracting buyers in an uncertain economic environment, which has subsequently impacted newvehicle margins, Reuters reported.

Over the past few years, auto dealers enjoyed elevated prices, benefiting from a strong demand for new vehicles coupled with limited supplies due to supply chain disruptions. However, the scenario has changed with higher vehicle production smoothing out supply issues, thus reducing dealer margins, according to statements made by auto retail chain executives.

A report by Cox Automotive highlighted the growing trend of discounts and incentives on new vehicles, which is exerting a downward pressure on both pricing and profitability for dealers and automakers.

“Discounts and incentives on new-vehicles continue to rise, and that is putting downward pressure on pricing and profitability for dealers and automakers alike,” the report noted.

Despite the lowered prices and increased incentives, the pace of U.S. new-vehicle sales has decelerated in the initial month of the year. The automotive sector is also grappling with challenges related to electric vehicles (EVs), which necessitate higher marketing expenses due to their higher maintenance costs and lower resale values. Adding to the industry’s woes, EV prices in the U.S. have seen significant reductions over the past year, predominantly driven by price cuts at leading manufacturers like Tesla.

On the financial front, AutoNation’s CEO Mike Manley revealed during an earnings call that new vehicle margins continued to decline, albeit at a modest rate of about $120 per month in

the fourth quarter, a slower pace compared to previous quarters. Lithia Motors also experienced a dip in new vehicle margin to 7.9%.

Despite these challenges, retailers are finding a silver lining in their aftermarket service units, which have boosted profits from maintenance services for new vehicles. The increasing complexity of vehicles, due to advanced technology and software, has augmented the demand for specialized maintenance services.

The impact of these industrywide trends was evident in the stock market, with shares of Sonic Automotive, which fell short of fourth quarter estimates, witnessing a 5% decline. Meanwhile, AutoNation’s shares saw a marginal decrease, and Lithia’s shares experienced a slight uptick, reflecting the mixed responses from the investment community to the ongoing developments in the automotive retail sector.

PPG Ranked on Barron’s Sustainability List

PPG is the only coatings company to earn a spot on Barron’s 100 Most Sustainable Companies list, ranking 43rd among the 1,000 largest publicly traded U.S. firms, recognizing PPG’s dedication to environmental, social and governance (ESG) excellence.

To make the list, Barron’s and Calvert Research and Management rank companies on their performance in five primary categories: shareholders, employees, customers, community and the planet, across 230 ESG performance indicators. Companies receive a score from zero to 100 based on their performance within each category. PPG received a final score of 70, placing it in the top 5% of all evaluated companies.

PPG’s journey toward sustainability includes being the first U.S.-based coatings company to have its 2030 greenhouse gas emissions reduction targets validated by the Science Based Targets initiative (SBTi). The company has also demonstrated a commitment to employee engagement, with Gallup noting a rate of engagement growth three times faster than that of comparable companies.

DCR Systems is excited to announce the addition of Maria Stump as people development manager. In her new role, Stump focuses on all aspects of working with employees, including hiring and retention, setting up processes, managing training programs and employee development.

Stump graduated from John Carroll University in Cleveland, OH, in 2020 with a management and human resources degree. Her experience includes recruitment and retention, human resources, employee development, business operations, financial services and customer service.

With her interest in people, Stump was looking for an opportunity to assist a company with coaching and development. When she learned about the position at DCR Systems, it sounded like a great fit.

Joining the company without prior knowledge of the collision repair industry, Stump visited five of seven DCR Systems’ locations to introduce herself and explain how she was there to support employees.

Tractable Accuses CCC of Limiting Choice, Raising Prices

Tractable has accused CCC Intelligent Solutions of violating federal antitrust laws in a court filing March 11, alleging CCC is using its 85% market share of the estimatics market to limit customer choice and raise prices that ultimately impact the consumer.

Estimatics products can be used to identify automotive damage, diagnose necessary repairs and estimate the costs of such repairs.

Tractable leveled the charges in its motion for leave to file an amended answer and counterclaim, filed as part of ongoing litigation between the two companies in the U.S. District Court for the Northern District of Illinois.

“Today, Tractable took legal action against CCC, challenging what Tractable believes is anticompetitive conduct that harms the auto collision ecosystem. Tractable took this legal action to enable choice and best-of-breed technologies in the ecosystem: for insurers, repairers, service

providers and everyday Americans, who pay for auto insurance as a life necessity,” said Alex Dalyac , founder and CEO of Tractable.

The litigation originated in October 2018, when CCC filed a lawsuit against Tractable, claiming it used a fake company named “JA Appraisals” and a person named “Jason Chen” — an alias for Xing Xin, Tractable’s former head of product development — to get a license to gain access to CCC’s proprietary platforms, including CCC ONE.

CCC alleged over the next 14 months, Tractable used CCC ONE to create test files with fictitious inputs to generate unusual estimates that did not follow “the conventional appraiser workflow.” Instead of finalizing the estimates in the “workfiles” and transmitting them to insurers, CCC alleged Tractable created the files to “replicate (at least in part) CCC ONE’s proprietary information and algorithms,” in violation of JA Appraisal’s

licensing agreement, which was “conditioned on the independent appraiser working on an assignment related to an insurance claim for the purpose of generating an estimate of vehicle damage.” CCC terminated its license with JA Appraisal on Oct. 26, 2018.

Tractable was charged with seven counts, including violation of the Computer Fraud and Abuse Act, violation of the Defend Trade Secrets Act of 2016, violation of the Illinois Trade Secrets Act of 2016, trademark infringement in violation of the Lanham Act, false designation of origin in violation of the Lanham Act, violation of the Illinois Uniform Deceptive Trade Practices Act, and common law fraud.

In September 2022, Tractable was granted a motion to dismiss two of those counts: violation of the Computer Fraud and Abuse Act and violation of the Illinois Uniform Deceptive Trade Practices Act.

New Vehicle Prices Dipped Slightly Again in February

The average transaction price (ATP) for new vehicles in February 2024 was $47,244, only a 0.1% decrease from the revised January ATP, but a 2.2% decrease from February 2023 and a 5.4% drop from the peak observed in December 2022, according to data from Kelley Blue Book, a Cox Automotive company.

Despite these declines, the cost of new vehicles remains significantly higher than it was three years ago, with prices 14% above those in February 2021.

With new-vehicle inventory continuing to rise in the U.S., downward price pressure and higher incentives appear to be key drivers of the market’s current momentum. At the start of February, new-vehicle inventory in the U.S. stood near 2.61 million units, a 50% increase from one year earlier. Sales last month picked up from January and, with a seasonally adjusted annual rate (SAAR) of sales of 15.8 million, kept 2024 on track for the best new-vehicle sales year since 2019.

“While everyone may applaud that prices are coming down, even marginally for the moment, affordability is still challenging the market,” said Erin Keating, executive analyst for Cox Automotive. “Most shoppers have not seen their incomes

increase as quickly as vehicle prices, so affording a new vehicle remains difficult. We should also note that despite rising inventory, which is good for consumers, the levels are muted, not alarming.”

Higher Incentives Help Keep Prices in Check

New-vehicle incentives in February averaged 5.9% of transaction price, up from 5.7% in January and significantly higher than the average of 3.1% recorded in February one year ago. Incentives hit bottom in the fall of 2022 – 2.1% of ATP in September of that year – and, along with inventory, have increased steadily since.

Luxury vehicle incentives continue to be more generous than non-luxury. In February, incentives in the luxury market averaged 6.1% of ATP, down from January but nearly twice the level seen one year ago. The luxury ATP in February was $61,424, an increase from January. Non-luxury vehicle incentives averaged 5.9% in February, an increase from 5.5% in January. Non-luxury vehicle ATPs last month were $44,052, generally unchanged from January, when prices were estimated at $44,062.

Incentive packages continue to be highest with Infiniti, Audi, Mini

and Polestar, all over 10% of average transaction price, according to Kelley Blue Book estimates. On the other end of the scale, Lexus, Toyota, Porsche and Land Rover had some of the lowest incentives last month, all 3.0% or lower. Incentives at Land Rover averaged only 2.0% of ATP, according to the Kelley Blue Book estimates. Still, the average price paid for a new Land Rover last month was over $102,000.

“While everyone may applaud that prices are coming down, even marginally for the moment, affordability is still challenging the market,”

Affordability Continues to Fade

In February, of the roughly 275 different models available in the U.S. market, only nine had transaction prices below $25,000 and only two transacted for less than $20,000. The Kia Rio and Mitsubishi Mirage were

the two most affordable vehicles in the U.S. last month, and both are being dropped from the market.

While vehicle price increases have slowed in the past year, the industry’s vehicle mix and shift toward luxury has tilted the U.S. auto market away from affordability. In February 2021 — three years ago — there were 29 vehicles with transaction prices routinely below $25,000, including eight different models transacting below $20,000.

The market is in a new place now. Last month, the top of the market was more crowded than ever: Among mainstream brands, 30 different vehicles posted average transaction prices of more than $100,000, with the Mercedes-Benz G-Class on top with an ATP of $203,154. In fact, the February Kelley Blue Book report shows significantly more vehicles in the U.S. transact at prices above $75,000 (sales of more than 81,000) than below $25,000 (nearly 52,000).

According to the latest Cox Automotive/Moody Analytics Vehicle Affordability Index, new-vehicle affordability has improved in recent months but remains far worse today than it was in 2019.

Kelley Blue Book estimates exclude exotics from brands including Ferrari,

According to newly revised electric vehicle (EV) transaction price data, the average price paid for an electric vehicle in February was $52,314, down from a revised $54,863 in January, according to Cox Automotive and Kelley Blue Book estimates. EV transaction prices in February were lower year over year by 12.8%, an accelerating decline compared to January when prices were lower year over year by 11.6%.

“Our research continues to show that price remains a significant barrier for consumer adoption,” said Stephanie Valdez Streaty, director of Industry Insights at Cox Automotive.

“While the higher inventory levels and increased competition continue to drive down the price premium of EVs, it’s important to acknowledge that EVs remain priced above mainstream non-luxury vehicles by nearly 19%.”

The market’s general EV price decline has been led in part by the two most popular EVs in the U.S. -- the Tesla Model 3 and Model Y. Transaction prices for the Model Y last month, estimated at $49,363, were the lowest on record and were lower versus February 2023 by 16.2%. Model 3 transaction prices last month, at $43,614, were lower year over year by 12% and near the lowest level on record. High incentives and discounts on most models also continue to play a major role in lower EV prices.

The U.S. government’s recent shift to offer immediate electric vehicle tax credits at the point of sale has led to a $135 million disbursement to auto dealers within just over a month, Reuters reported.

In previous years, U.S. auto buyers could only benefit from the $7,500 new EV credit or $4,000 used EV credit at tax filing time the following year.

The new policy, which went into effect Jan. 1, allows consumers to transfer the credits directly to car dealers at the time of sale, effectively reducing the purchase price of the vehicle on the spot. The IRS has processed advance payment requests for 17,500 new EVs and 2,000 used vehicles, with more than 11,000 U.S. auto dealers registered for the program.

“One month into implementation of this provision, there is strong demand for this new upfront discount, which will continue momentum in growing this industry in the United States,”

Deputy Treasury Secretary Wally Adeyemo said in a statement.

However, the transition has not been without its challenges. In January, the eligibility for tax credits was revised for several EVs due to new battery sourcing rules, impacting popular models like the Nissan Leaf, some Tesla Model 3s, Chevrolet Blazer EV, Cadillac LYRIQ, Ford Mustang Mach-E and Ford E-Transit. These guidelines, issued by the Treasury in December, aim to decrease the U.S. EV supply chain’s reliance on China, reducing the number of EV models qualifying for tax credits from 43 to 19 at the start of the year.

The August 2022 Inflation Reduction Act law introduced these changes to the EV tax credit system, mandating vehicles must be assembled in North America to qualify and setting income and vehicle price restrictions to ensure the credits benefit a broader range of consumers while promoting domestic production.

The Collision Industry Electronic Commerce Association (CIECA) announced its 15th annual conference, CONNEX 2024: “The Intersection of Data & Mobility,” will be held Sept. 24-25 at the MGM Grand Detroit hotel in Detroit, MI.

During the two-day event, insightful speakers will discuss where technology and businesses are headed and what the collision industry can do to prepare. A highlight of the event will be an exclusive tour of the American Center for Mobility. The conference will also include networking opportunities, a vehicle gifting as part of the National Auto Body Council Recycled Rides® program, and a celebration of CIECA’s 30th anniversary of creating data integration standards.

All industry stakeholders, including CIECA members and non-members, are invited to attend. The conference agenda will be announced in the spring.

For information about early bird conference registration rates, visit cieca.zohobackstage.com/ CONNEX2024#/tickets?lang=en.

USAA Faces Lawsuits Over Denied Medical Claims

In a lawsuit filed in Washington State, USAA is facing accusations of systematically denying medical payments to its members involved in auto accidents, reported the San Antonio Express-News.

USAA relies on a third-party contractor, Auto Injury Solutions Inc., to assess which medical bills should be paid. This process, according to USAA, aims to filter out excessive, unrelated and duplicate charges, thereby keeping coverage costs affordable for its members. However, critics argue this method, which heavily involves automated computer processes, undermines the insurer’s duty to conduct thorough and independent investigations into claims.

The lawsuit, filed by two women insured under different USAA subsidiaries, challenges the insurer’s delegation of claim evaluations to the thirdparty contractor. They argue this approach leads to unjust reductions or outright denials

of payments for necessary health care expenses, based on reviews they deem a “sham.” The plaintiffs are seeking to make the lawsuit, which has been moved to a federal court in Washington, a class action lawsuit.

USAA insists its procedures are designed to protect members by identifying unwarranted charges, thus preserving insurance limits for legitimate medical expenses. Critics, including attorneys for the plaintiffs and consumer advocacy groups, argue such practices prioritize cost savings over patient care, often leaving insured members to bear the brunt of unpaid medical bills.

This is not the first time USAA has faced such allegations. Over the past two decades, the insurer has been involved in numerous lawsuits accusing it of similar practices. While many of these cases have been dismissed, arbitrated or settled, the recurring theme of denied claims has attracted regulatory attention and public scrutiny.

PGW Auto Glass, LLC, announced it acquired AutoglassCRM, a provider of VIN decoding and point-of-sale software, to equip automotive glass installers with cuttingedge tools necessary to thrive in a competitive market.

“This acquisition supports our strategic mission to provide our customers with the best technologies to compete in this increasingly complex industry,” said Todd Fencak , CEO of PGW Auto Glass. “We are excited to announce the launch of ‘Everything Autoglass,’ a comprehensive set of business tools that will help our customers succeed. Everything Autoglass was created to provide installers with a lowcost, advanced technology that encompasses all aspects of shop management.”

“Everything Autoglass” promises a low-cost, advanced technology solution that covers all aspects of shop management. Visit www.

EV Collision Claims

A recent report by Mitchell, an Enlyte company, showed a sharp increase in electric vehicle collision claims in the U.S. and Canada. A year-over-year analysis in “Plugged-In: EV Collision Insights” revealed a more than 40% surge in EV claims volume in 2023.

“2023 was a record year for electric vehicles,” said Ryan Mandell, Mitchell’s director of claims performance. “Not only did the frequency of EV collision claims rise to historic levels, but the U.S. also surpassed 1.2 million in new EV sales for the first time ever. As long as consumer adoption remains strong, EVs will continue to have a significant impact on the auto insurance industry – creating challenges for everything from underwriting to the delivery of proper and safe repairs.”

In addition to tracking 2023 claims volume, the Mitchell report compares EVs to automobiles with an internal combustion engine (ICE), highlighting differences in:

Grew by 40% in 2023

for ICE alternatives, a difference of $1,322. This represents a yearover-year decrease of 5% for EVs and an increase of 3% for ICE vehicles. In Canada, severity was $6,795 for EVs versus $5,122 for

ICE-powered options, jumping 8% from 2022 to 2023.

Vehicle complexity: For 2020 and newer collision-damaged automobiles, EV repairs were 50% more likely to include an operation associated with the sensors used in advanced driver assistance systems (ADAS) based on 2023 data than ICE vehicles – which also rely on ADAS.

Parts repairability: EVs are more likely to use parts made of lightweight materials, which can impact repairability. In 2023, on average only 12% of EV parts were repaired versus replaced. For ICEpowered options, the percentage of parts repaired was closer to 15%.

Material construction: EVs tend to be heavier than ICE automobiles due to the battery weight. That may be one reason why they had a higher frequency of air bag deployments (3.62%) than ICE options (2.45%) last year, adding to repair costs.

Claims severity: Last year, average severity in the U.S. for repairable EVs was $6,018 compared to $4,696

“2023 was a record year for electric vehicles. Not only did the frequency of EV collision claims rise to historic levels, but the U.S. also surpassed 1.2 million in new EV sales for the first time ever. As long as consumer adoption remains strong, EVs will continue to have a significant impact on the auto insurance industry – creating challenges for everything from underwriting to the delivery of proper and safe repairs.”

RYAN MANDELL MITCHELL’S DIRECTOR OF CLAIMS PERFORMANCE

The publication also details the top North American regions and vehicle models associated with EV collision claims in 2023.

Motor-Vehicle Deaths Decrease 4% in 2023 Despite Higher Mileage

In a year when Americans hit the road more than the last, the National Safety Council (NSC) has reported a counterintuitive trend: a significant decrease in motor-vehicle deaths in 2023. Despite a 2.1% increase in mileage from 2022, fatalities dropped by 4%, totaling 44,450 deaths in 2023, down from 46,270 the previous year. This decline in deaths comes alongside a decrease in the estimated mileage death rate, which fell to 1.36 deaths per 100 million vehicle miles traveled, marking a 6.2% decrease from 2022 and a notable 9.3% drop compared to 2021.

The National Center for Health Statistics (NCHS) reports the official mortality estimates for the U.S. and is used as a comparison to judge the accuracy of NSC preliminary estimates. The publication of NCHS final mortality estimates generally lags about one year or more. The most recent NCHS final estimate shows 46,980 deaths occurring in 2021. This compares to the NSC initial estimate of 46,020, with a difference of 2%.

State-specific data reveal a

contrast across the country. Twelve states experienced a decrease in motor-vehicle deaths by 10% or more, with Alaska leading the way at a 31% reduction. Meanwhile, seven states and Washington, D.C., saw increases of 10% or more, with D.C. witnessing a 42% surge in fatalities. The NSC’s methodology for calculating these estimates involves collecting data from all 50 states and D.C., relying on state Department of Transportation offices and data reporters who also contribute to the National Highway Traffic Safety Administration s Fatality Analysis Reporting System (FARS). This comprehensive approach ensures the NSC’s estimates are both timely and reflective of trends across the nation.

The reduction in motor-vehicle deaths, despite an increase in overall mileage, may reflect the impact of safer vehicle technologies, improved road safety measures, or changes in driver behavior. However, the increase in fatalities in certain states highlights the ongoing challenges in achieving nationwide road safety improvements.

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ASE Announces World Class Technicians

The Auto Care Association and the National Institute for Automotive Service Excellence (ASE) recently announced the newest recipients of the World Class Technician Award. This annual accolade recognizes professional technicians who have achieved ASE certification in 22 specific areas. Out of the estimated 887,000 technicians in the U.S., about 250,000 hold ASE certification, yet only 2,289 have achieved the distinguished title of World Class Technician over the past three decades. The 2024 class of World Class Technicians includes individuals from across the nation, each with a unique story and a shared dedication to automotive excellence.

The Auto Care Association conducted surveys with this year’s award recipients to learn about their career paths, motivations and the significance of this achievement.

It has always been a personal goal of mine to be the best at what I do. Attaining ASE World Class Technician Certification provides me a valuable tool to incorporate into the toolbox of my career, said Chaira, of UPS/Pima Community College in Tucson, AZ.

Sometimes people don’t have paid work experience or a resume to show what they may know or

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have experience with,” said Klebeck, of Harper Infiniti, in Knoxville, TN. By becoming ASE certified you demonstrate that you have the knowledge and experience in many areas, not just the ones that pay you 9-5 or show up on your resume. This helps to demonstrate your broad experience and how well-rounded of a technician you are. When I was told there was another level above master technician called World Class Technician, I made it a personal goal to get to this level,” said Monnier, of Davids Automotive, The Colony, TX. “It is important to stay on top of today’s modern technology. To work on today’s cars, one needs curiosity, patience and information. Becoming a World Class Technician is like giving myself a little pat on the back along with helping to spread the word in getting the younger generation interested in this business.

Becoming a World Class Technician is a status that I believe shows your dedication to excellence in the industry,” said Schoessler, of Christian Brothers Automotive in Grimes, IA. “I strive to be as knowledgeable as possible to help teach and inspire those around me. Becoming a part of this exclusive group of technicians is something I can truly be proud of.

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Karl Koenigstein, Piedmont, SC

Kevin Taylor Bryant, Augusta, GA

Kyle Hadley, Springfield, MA

Kyle Slater, Grand Blanc, MI

Lance Newcomb, Commerce City, CO

Larry W. Yates, St. Peters, MO

Lyman Parsell, Nashville, TN

The

Matthew Keresey, Portland, ME

GEORGIA

Matthew Klebeck, Knoxville, TN

Matthew Russell, St. Petersburg, FL

Michael Mastalski, Painesville, OH

Michael Shuker, St. Louis, MO

Mike Reynolds, Charleston, SC

Norman Ng, Basking Ridge, NJ

Patrick Roehrer, Columbus, OH

Paul Mihalick, St. Louis, MO

Paul Murray, Appling, GA

Randy Riggan, Hamilton, OH

Richard E. Shetler, Orrville, OH

Richard M. Davis, St. Louis, MO

Ryan C. Mason, Pekin, IL

Ryan Stazak, Addison, IL

Sergio Chaira, Tucson, AZ

Steven Loglisci, Roselle, NJ

Taurayi Sewera, Harare, Zimbabwe

Timonthy Walz, North Richland Hills, TX

Travis Karpf, Antigo, WI

Victor Avila, Wake Forest, NC

William Leavell, Katy, TX

Stivers Decatur

Subaru

Decatur (404) 248-1888 Fax (404) 425-5800

Mon.-Fri. 7:30-6; Sat. 9-5 dway@stiversonline.com www.stiverssubaru.com

Subaru of Gwinnett

Duluth (678) 475-7245

Mon.-Fri. 8-5; Sat. 8-3 parts@subaruofgwinnett.com www.subaruofgwinnett.com

Troncalli Subaru

Cumming (770) 889-8951

Direct (678) 341-4220

Fax (678) 341-4221 www.troncallisubaru.com

Jim Armstrong

Subaru

Hickory (888) 905-6135 (828) 322-9372 opt 5

Mon.-Fri. 8-5 parts@jimarmstrongsubaru.com www.jimarmstrongsubaru.com

Parkway Subaru

Wilmington (800) 424-9434 (910) 793-8710 Fax

Mon.-Fri. 7-6; Sat. 8-2

’re

Honda on Feb. 27 announced the 2025 Honda CR-V e:FCEV, set to become America’s first production plug-in hydrogen fuel cell electric vehicle.

A compact CUV that received a 270-mile EPA driving range rating, CR-V e:FCEV combines an all-new U.S.-made fuel cell system along with plug-in charging capability designed to provide up to 29 miles of EV driving around town with the flexibility of fast hydrogen refueling for longer trips.

“Leveraging Honda fuel cell technology expertise continues to play a critical role in our global goal to achieve carbon neutrality for all products and corporate activities by 2050,” said Mamadou Diallo, senior vice president of auto sales, American Honda Motor Co. “Honda has laid out an electrification strategy leading to 100% zeroemission automobile sales by 2040, including the introduction of both battery-electric and fuel cell electric vehicles like this new CR-V e:FCEV model.”

The 2025 Honda CR-V e:FCEV will be available for customer leasing in California beginning later

NISSAN

FLORIDA

Reed Nissan Orlando

407-295-7379

(407) 291-2541 Fax

M-F 7:30-6, Sat. 7:30-5 parts@reedmotorsinc com www reednissan com

Sutherlin Nissan

Vero Beach

772-778-3600

(772) 778-1927 Fax

M-F 7:30-6, Sat. 8-3 wstevens@sutherlinautomotive�com

this year.

Standard features include HondaLink® with expanded capabilities including hydrogen station information in addition to charging and power supply data. For

with hydrogen fuel cell vehicles began with introduction of the Honda FCX in December 2002, the world’s first zero-emission fuel cell electric vehicle (FCEV) to receive certification for everyday use from

additional convenience, the included Honda Power Supply Connector uses a 110-volt power outlet that can deliver up to 1,500 watts of power, turning CR-V e:FCEV into a power source capable of running small home appliances, portable air conditioners, power tools, camping equipment and more.

Honda’s market experience

both the EPA and the California Air Resources Board (CARB), as well as the first FCEV leased to individual customers.

The CR-V e:FCEV will be built at Honda’s Performance Manufacturing Center in Marysville, OH.

The five-passenger CUV is the first application of the secondgeneration Honda Fuel Cell

Module, which is produced at Fuel Cell System Manufacturing, LLC (FCSM) in Michigan, offering improved durability, higher efficiency, increased refinement and lower cost compared to Honda’s previous generation fuel cell system.

Co-developed with General Motors, the next-generation Honda Fuel Cell Module leverages the knowledge, know-how and economies of scale of both companies and will reduce the cost by two-thirds compared to the cost of the fuel cell system in the Honda Clarity Fuel Cell. The cost reduction was achieved by various measures including the adoption of innovative materials for electrodes, advancement of a cell sealing structure, simplification of the supporting equipment and the improvement of productivity.

Moreover, the durability of the system has doubled by the application of corrosionresistant materials and controlled suppression of deterioration, and low temperature performance was also improved significantly.

GEORGIA

Infiniti of Gwinnett Duluth

678-812-8545

M-F 8-5, Sat. 8-3 iogparts@gmail�com www Infinitiofgwinnettparts com

WIN Scholarship Walk Aids Women in Collision Repair

The Women’s Industry Network (WIN) is once again holding its Scholarship Walk during the 2024 Annual Conference, scheduled for 7 a.m. PT May 7 for both in-person and virtual participants. This initiative is not just a walk; it’s a stride towards empowering the future of women in the collision repair industry.

This year’s conference, themed “Dream Out Loud,” is dedicated to fostering professional growth and providing financial assistance to women pursuing careers in collision repair. The conference, taking place May 6-8 at the Hyatt Regency Newport Beach, CA, will offer a robust agenda including industry programming, keynote speakers and networking opportunities, as well as the Scholarship Walk.

“It is important to raise money so we are able to continually increase both scholarship dollars and tool kit supplies amounts,” said Laura Kottschade, WIN Student Relations co-chair. “Because of the excellent fundraiser last year, we were able to provide five additional tools to each

additional tier levels planned out, which will expand our scholarship reach once again! In fact, with additional fundraising, we’re planning one to include a new scholarship specifically for techs already in the

evolved to accommodate wider participation, allowing individuals to join virtually or through community walks.

“This year we have separated the Scholarship Walk and the

industry,” Kottschade continued. “All these monies raised increases industry retention rates because once students are out of school, they can utilize their new knowledge and

Scholarship Fundraiser to simplify it for participant involvement,” according to April Keim and Christina Sepulveda, WIN Scholarship Fundraising cochairs. “This will allow those who simply want to network and join in the Scholarship Walk to be

able to while contributing to the scholarship fund with their entry fee. Additionally, we partnered with RallyUp and created the WIN Warriors Scholarship Fundraising that is free to join and will allow those inspired to raising money for the future women technicians of collision to do so as a team or solo and have some added fun with a team competition.”

Last year’s walk set a new benchmark, raising close to $8,000 and drawing more than 130 participants and donors. The top three student winners and four leading industry teams were celebrated for their contributions.

For the 2024 Walk, the top fundraising teams will again be recognized with fun prizes, included in a national collision repair industry news release, and social media posts on all of WIN’s various platforms. Teams will be recognized for total dollars, creativity and more. To register and fundraise on behalf of a team, visit this link.

Find more information at thewomensindustrynetwork.siteym.com/page/Scholarship.

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Nathan Gregory

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Paul Stepanek

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Abby Andrews

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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.

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AirPro, BMW Partner on Repairs

AirPro Diagnostics has been officially selected by BMW North America as the approved provider of the Integrated Services Technical Application (ISTA) software, a crucial tool in the BMW Collision Repair Network’s arsenal.

The integration of ISTA software with AirPro’s diagnostic services allows technicians to access detailed vehicle information, diagnostic procedures and BMW’s precise repair instructions. This ensures repairs meet the manufacturer’s standards, leading to improved diagnostic workflows, increased repair accuracy and ultimately, higher customer satisfaction.

AirPro Diagnostics stands out in the industry for its cost-effective scanning and ADAS calibration solutions, including the innovative AUGGIE device.

For more information, visit www. airprodiagnostics.com.

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General Motors has significantly expanded the reach of its handsfree driving technology, Super Cruise, now encompassing about 750,000 miles of compatible roads across the U.S. and Canada – the largest truly hands-free operating domain in North America, nearly six times the coverage of its closest competitors.

“GM is all-in on safely deploying Super Cruise as we make the technology available on more vehicles, more roads and for more people to enjoy,” said Anantha Kancherla, GM vice president of ADAS. “A key part of that is expanding the road network– in this case nearly doubling it again -- with LiDAR mapped highways. High precision LiDAR mapping gives us an operating domain where we are confident in Super Cruise’s abilities.”

Since its launch in 2017 as the industry’s first true hands-free ADAS, Super Cruise has seen incremental expansions, the most recent of which extended the network to 400,000 miles. The latest extension includes not

only divided highways and major highways but also minor highways that connect smaller cities and townships, enabling hands-free driving between more rural areas.

This expansion is particularly significant for those who enjoy recreational activities, as Super Cruise now includes trailering capability, a feature that is being added to models like the 2024 Chevrolet Traverse and 2024 GMC Acadia. More than 80% of surveyed owners with Super Cruise have reported it makes driving more relaxing, highlighting the technology’s impact on enhancing the driving experience.

More than 160 million miles have been driven accident-free using Super Cruise. The technology’s new or enhanced features include Lane Change on Demand, Automatic Lane Change, Enhanced Navigation and Collaborative Steering, among others.

The ongoing updates are being rolled out incrementally over-theair at no additional charge and will continue through 2025.

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