Autobody News March 2011 Western Edition

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CA Paint Jobber NDI Sues BMW North America After the Automaker Implemented its own BMW Paint Line Nicolosi Distributing Inc. (NDI), a paint jobber in the San Francisco bay area, filed a lawsuit against BMW of North America earlier this year alleging intentional interference with a contract with a BMW-certified shop.

NDI accuses BMW of North America of interfering with a contract the jobber had with a BMW-certified shop for paint supplies. The suit pertains to a contract signed between NDI and German Motor Collision Center, a BMW-certified collision center connected to the BMW of San Francisco dealership in May of 2005.

The contract was a multi-year agree-

ment that BMW of North America was aware of before German Motors Collision Center signed it.

NDI contends that “BMW intentionally interfered with NDI’s contractual relationship with German Motors Collision Center... by the following conduct: BMW has decided to product its own paint line ... BMW requires auto body shops painting a BMW automobile to only use BMW paint. BMW forced German Motors Collision Center to enter into a written agreement ... which requires German Motors to use BMW paint on

Jordan Hendler, executive director of the Washington (D.C.) Metropolitan Auto Body Association, averted a suicide attempt in January by physically intervening when she encountered a teenage girl threatening to jump Jordan Hendler from a freeway overpass. Hendler called 911 as she approached the girl on the edge of the overpass, then kept talking to her, pleading with her not to jump.

“I told her something my father (CIC Administrator Jeff Hendler) always told me about suicide: “This is a permanent solution to a temporary prob-

lem.’” Jordan Hendler kept talking to the girl as another by-passer approached from the other end of the overpass. Together they restrained the girl and pulled her from the barrier she had climbed over. Hendler said it took both of them to hold the hysterical girl down until emergency responders arrived about four minutes after the call to 911. “It seemed like an eternity, a lot longer,” Hendler said. She said she knows nothing about the girl other than she looked to be about 14 or 15, and lives in a group home for teenagers. “You don’t know that one day you’ll be called upon to do the right thing at the right moment, but when the time comes, if you have your heart open, you will know exactly what to do,” Hendler said.

See Jobber Lawsuit, Page 6

Jordan Hendler Averts Teenager’s Suicide Attempt

VOL. 29 ISSUE 3 MARCH 2011

Class Action Judgments: GEICO Wins Appeal vs.

Greenberger & Progressive Wins 2/6 vs. Blue Ash Inc. Two collision-related class action lawsuits against major insurers have recently been decided in favor of the insurers. In the GEICO case on appeal partially due to lack of evidence (the vehicle).

In the Progressive case a summary judgment was returned on two of Erica Eversman six counts charged. comments on The plaintiffs in Progressive vs. the Progressive Blue Ash et. al. case have decided to drop the remaining existing charges to facilitate an appeal of the summary judgment.

Don’t Give Away the Evidence The January 10, 2011 GEICO decision pertains to a Chicago law professor’s prospective class action suit accusing the insurance company of deliberately omitting repairs from its estimates. He lost the case in part because he gave away the car (the evidence) before the case was resolved.

On July 4, 2002, Greenberger, a professor and administrator at a Chicago law school, was involved in an automobile accident, and his 1994 Acura sustained damage to its

bumper, steering box, suspension, and lower body. The next day, a GEICO insurance adjuster inspected the car at Greenberger’s home and wrote him a check for $3,284.69 ($3,784.69 minus a $500 deductible).

Greenberger cashed the check but did not repair his car. Five months later, a stranger approached Greenberger in a parking lot and expressed interest in buying the car. Greenberger permitted this prospective buyer to take the Acura to a friend’s body shop for an estimate of what it would cost to repair it. The buyer’s technician, Sarkit Tokat of Lake Side Auto Rebuilders, delivered an estimate of $4,938.65, about $1,150 higher than GEICO’s estimate. The sale was not made, however, and in December 2002 Greenberger donated the car to charity without making any repairs.

Exactly three years after accepting GEICO’s payment on his claim, Greenberger filed a proposed classaction lawsuit in Cook County Circuit Court alleging breach of contract, violation of the Illinois Consumer Fraud and Deceptive Practices Act, and common-law fraud. He claimed that GEICO systematically underpays on its auto-accident claims by omitting See Class Actions, Page 20

REGIONAL STORIES in this issue...

CA Paint Jobber NDI Sues BMW North America . . . . . . . . . . . . . .p. 1

Attanasio—Crozat’s G&C Autobody Seizes Opportunity . . . . . . .p. 48

Second CAA Meeting Involving EEEC Coming in March . . . . . . .p. 12

CAA San Diego Hosts Mitchell’s Greg Horn . . . . . . . . . . . . . . . . .p. 20

AQMD to Workshop NOx Reductions for Spray Booths . . . . . . .p. 24

NATIONAL and COLUMNS in this issue...

CREW Hosts New CIC Chairman Mike Quinn in Webcast . . . . . .p. 18

Toyota Probe Finds No Electronic Flaws . . . . . . . . . . . . . . . . . . . .p. 26

Danalevich—Insurance Appraiser Bootcamp . . . . . . . . . . . . . . . .p. 16

Insurance Insider Talks DRP Referrals . . . . . . . . . . . . . . . . . . . . .p. 32

Amaradio—Setting the Record Straight on Parts Testing . . . . . .p. 53

Change Service Requested

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2 MARCH 2011 AUTOBODY NEWS | www.autobodynews.com

Contents

COLUMNS Amaradio - Setting the Record Straight on Ford vs. Aftermarket Parts Testing . . . . . . 53 Attanasio - G&C Autobody Seizes Opportunity to Expand in Northern California . . . . . . . . 48 Danalevich - “It’s a Misunderstanding”— Insurance Appraiser Boot Camp . . . . . . . . 16 Franklin - ‘Consistency’ May be Boring—But It’s Also Profitable . . . . . . . . . . . . . . . . . . 52 Insurance Insider - Not All “Referrals” are Created Equal. . . . . . . . . . . . . . . . . . . . . . 32 McGee - Using Manufacturer TSBs and Recalls in Collision Shops . . . . . . . . . . . . 38 Schroeder - John Eagle Collision Center in Dallas, TX, Focuses on Luxury Brands . . . 30 Schroeder - Sal’s Premium Auto Collision in Los Angeles, CA — A Lesson in Versatility. 44

NATIONAL $7,500 EV Credit May Change . . . . . . . . . . . 24 ABPA Says Aftermarket Bumper Outperformed Ford Counterpart in Crash Test . . . . . . . . . 47 AK Leg to Ban Cell Phone Usage in School, Work Zones . . . . . . . . . . . . . . . . . . . . . . . 39 Allstate Astrology Release a “Joke” . . . . . . . . 39 Allstate to Add Hundreds of Agents in CA . . . 55 ASRW Names New Chairs . . . . . . . . . . . . . . 35 Audatex to Reintroduce Labor Times for Unprimed Bumper Covers. . . . . . . . . . . . . 45 BASF Official Show Sponsor of NORTHEAST 2011 . . . . . . . . . . . . . . . . . . 54 Chief Advises on High-Strength Steel in OEMs. 25 Chrysler Group’s Mopar Division to Expand Accessories Portfolio in 2011. . . . . . . . . . 27 Class Action Judgements: GEICO Wins Appeal vs. Greenberger & Progressive Wins 2/6 vs.

Blue Ash Inc. . . . . . . . . . . . . . . . . . . . . . . . 1 CREW Hosts New CIC Chairman Mike Quinn in Webcast . . . . . . . . . . . . . . . . . . . . . . . . 18 Diamond Standard Says All its Rear Step Bumpers Are Now NSF Certified . . . . . . . . 36 Feds to Decide on Vehicle Grades by July 2011. . . . . . . . . . . . . . . . . . . . . . . . . 24 Ford to Ax Another 100 Lincoln Dealers . . . . . 6 General Motors January 2011 Sales Rise 23 Percent . . . . . . . . . . . . . . . . . . . . . . . . 41 George to Chair Insurance Institute for Highway Safety . . . . . . . . . . . . . . . . . . . . . 4 GM May Undergo Dealer Overhaul on East, West Coasts. . . . . . . . . . . . . . . . . . . . . . . 10 House Votes to Block E15 from Pumps Due to Potential Engine Failure. . . . . . . . . . . . . . . 26 Houston Auto Body Association Hosts Legislative Breakfast for Texas Reps . . . . . 37 Hyundai’s 25th Anniversary in U.S., Lifts Southeastern Job Market Economy with Kia. 51 J.D. Power Reveals Top Manufacturer Websites . . . . . . . . . . . . . . . . . . . . . . . . . 13 Jordan Hendler Averts Teenager’s Suicide Attempt . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 NICB Issues 2010 Suspicious Claims Report. 39 Repair Standards Advisory Committee Requests Consultant to Help Draft Standards . . . . . . 51 The Auto Body Guru Answers Questions on Online Marketing . . . . . . . . . . . . . . . . . . . 13 Toyota Unintended Acceleration Probe Finds No Electronic Flaws . . . . . . . . . . . . . . . . . 26

rounding communities but travel to down towns to work. Thus, his bill would prohibit a city, including a charter city, county, district, municipal corporation, or public authority from charging a fee to any person, regardless of residency, for the expense of an emergency response.

Colorado House Bill 1059, would similarly ban local governments from imposing a fee or seeking reimbursement for costs incurred by police officers, firefighters, and other first responders in connection with responding to a motor vehicle accident, with exceptions for certain costs for cleaning up hazardous materials and costs incurred in connection with providing ambulance service.

A recent Harris Interactive poll on crash taxes for the Property Casualty Insurers Association of America found the majority of consumers believe their taxes cover the time and services provided by emergency response providers following a traffic accident.

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies

Serving California, Nevada and Arizona, Autobody News is a monthly publication for the autobody industry. Per-

Contributing Writers: Tom Franklin, David Brown, John

Yoswick, Lee Amaradio, Rich Evans, Janet Chaney, Toby

in Autobody News must be obtained in writing from the publisher. ©2011 Adamantine Media LLC.

Sales Assistant: Kristy Mangum Art Director: Rodolfo Garcia

www.autobodynews.com Email: news@autobodynews.com

Editorial Assistant: Erica Schroeder

Chess, Mike Causey, Tom McGee, Ed Attanasio Advertising Sales: Joe Momber, Sean Hartman (800) 699-8251

Audi Wholesale Parts Dealers . . . . . . .49

Auto Body Guru . . . . . . . . . . . . . . . . . .13

Western

The Rich Evans Designs-Mopar Kit for Dodge’s Challenger, Part 2 . . . . . . . . . . . . 50 Weaver - When it Comes to Diagnostics, First, The Basics. . . . . . . . . . . . . . . . . . . . 46 Yoswick - New CIC Committee to Focus on Shop Data’s Capture, Use, Sale, and Reports. . . . 34 Yoswick - Ten Things to Consider When Designing a New Shop, Remodel, or Expansion . . . . . . . . . . . . . . . . . . . . . . . . 42

Legislators in both California and Colorado have proposed laws that would prohibit communities from charging a fee when police and fire personnel respond to an accident, according to Insurance Journal.

The city of Sacramento recently adopted just such a “fire recovery charge” on out of town automobile drivers. Sacramento’s “crash tax” imposes a fee on out-of-town drivers who get into auto accidents in order to fund the fire department’s response services. The fee would be imposed on non-resident drivers if insurers find them at fault in the accident. But business owners who live outside the city but have property inside are exempt.

But Sen. Tony Strickland, RMoorpark, who introduced Senate Bill 49, banning such crash taxes, said “The availability and use of emergency response resources throughout the state is an issue of statewide concern and not a municipal affair,” he said, noting it is unfair to penalize residents who live in sur-

Indexof Advertisers

REGIONAL Air Quality Management District to Workshop NOx Reductions for Spray Booths. . . . . . . 22 AZ Hail Storm Damage Tally up to $15 Million. 4 AZ Insurance Dept Increases Auto Property Damage Threshold . . . . . . . . . . . . . . . . . . 10 CA Insurance Commissioner Wants Insurance Companies to Invest in Communities . . . . 23 CA Paint Jobber NDI Sues BMW North America After the Automaker Implemented its own BMW Paint Line . . . . . . . . . . . . . . . 1 CAA San Diego Holds First Meeting of 2011 With Mitchell’s Greg Horn. . . . . . . . . . . . . 20 California Air Chief Blasts Auto Trade Group Over Clean Cars . . . . . . . . . . . . . . . . . . . . 49 California Expected to be Biggest U.S. Market for Plug-In Vehicles . . . . . . . . . . . . . . . . . 14 California, Colorado Consider Banning ‘Crash Taxes’ . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Copart Auto Parts Moving to TX . . . . . . . . . . . 9 Findlay Automotive Group Acquires Flagstaff Honda . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Hyundai Sending 71 Orange County Jobs to Texas, Georgia . . . . . . . . . . . . . . . . . . . . . . 9 Move to Repeal 1099 Reporting Mandate for Small Businesses . . . . . . . . . . . . . . . . . . . . 4 Murietta, California May Donate Red Light Camera Fines . . . . . . . . . . . . . . . . . . . . . . 4 Nevada Publishes Guides to Insurance . . . . . 23 New ‘Smart City’ San Diego Partnership Targets Electric Vehicles in Smart Grid Technologies . . . . . . . . . . . . . . . . . . . . . . . 4 Ringleader Arraigned on Conspiracy Charges in a $1.2 Million CA Car Theft Ring . . . . . . 14 Roseville, Calif. Crash Tax Fails To Deliver Revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Sacramento Approves ‘Crash Tax’ on Non-City Residents. . . . . . . . . . . . . . . . . . . . . . . . . . 8 Second CAA Meeting of 2011 Involving the EEEC Coming in March. . . . . . . . . . . . . . . 12 Sun Devil Auto Offers Expanded Services: Free Car Care Clinics . . . . . . . . . . . . . . . . 18

California, Colorado Consider Banning ‘Crash Taxes’

mission to reproduce in any form the material published Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 721-0253 Fax

GM Wholesale Parts Dealers . . . . . . . .41

Harbor Hyundai . . . . . . . . . . . . . . . . . .10

Autoland Scientech . . . . . . . . . . . . . . .27

Honda/Acura Wholesale Parts Dealers .48

BMW Wholesale Parts Dealers . . . . . . .31

Kia Motors Wholesale Parts Dealers . .33

Automotive ID . . . . . . . . . . . . . . . . . . . .30

British Motor Car Distributors . . . . . . . .34 California Superstores Chrysler-Jeep-

Hyundai Wholesale Parts Dealers . . . .45

LKQ . . . . . . . . . . . . . . . . . . . . . . . . . . . .56

Mazda Wholesale Parts Dealers . . . . . .52

Dodge . . . . . . . . . . . . . . . . . . . . . . . . .7

Mitsubishi Wholesale Parts Dealers . . .54

Classifieds . . . . . . . . . . . . . . . . . . . . . . .55

Nissan/Infiniti Wholesale Parts Dealers .37

Crevier BMW . . . . . . . . . . . . . . . . . . . . .23

PPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

Carlsen Volvo . . . . . . . . . . . . . . . . . . . .18 Completes Plus . . . . . . . . . . . . . . . . . . . .4 Downtown Motors of LA

(Audi, VW, Porsche) . . . . . . . . . . . . .22

MOPAR Wholesale Parts Dealers . . . . .21

Power Chrysler-Jeep-Dodge . . . . . . . .17

RBL Products . . . . . . . . . . . . . . . . . . . .32

Replica Plastics . . . . . . . . . . . . . . . . . . .43

Drew Hyundai-Volkswagen . . . . . . . . . .47

Riverside Metro VW-Honda-Hyundai-

Elk Grove Toyota . . . . . . . . . . . . . . . . . .16

Sherwin-Williams . . . . . . . . . . . . . . . . . . .9

DuPont . . . . . . . . . . . . . . . . . . . . . . . . . .5

Nissan-Mazda . . . . . . . . . . . . . . . . . .36

Enterprise Rent-A-Car . . . . . . . . . . . . . .53

Sierra Chevrolet-Honda-Mazda-Subaru .24

Ford Wholesale Parts Dealers

Timmons VW-Subaru . . . . . . . . . . . . . .39

Equalizer Industries . . . . . . . . . . . . . . . .6

AZ, CA, & NV . . . . . . . . . . . . . . . . . .19

Galpin Motors . . . . . . . . . . .25, 28-29, 35

Subaru Wholesale Parts Dealers . . . . .12

Toyota Wholesale Parts Dealers . . . . . .44

VIM Tools . . . . . . . . . . . . . . . . . . . . . . . .51

Garmat USA . . . . . . . . . . . . . . . . . . . . .14

Volkswagen Wholesale Parts Dealers .42

Global Finishing Solutions . . . . . . . . . . .8

Weatherford BMW . . . . . . . . . . . . . . . . .15

Glenn E. Thomas Chrysler-Jeep-Dodge .11

Volvo Crash Wholesale Dealers . . . . . .46

www.autobodynews.com | MARCH 2011 AUTOBODY NEWS 3

Move to Repeal 1099 Reporting Mandate for Small Businesses The House Small Business Committee has held its first hearing in the 112th session of Congress on the 1099 reporting mandate of the new health care law. The reporting mandate would require small businesses to file a 1099 form with the IRS for every vendor they pay more than $600 in a year. Sam Graves, R-Mo., House Small Business Committee chairman, who led the hearing, said, “This new 1099 requirement will cause an avalanche of additional 1099 forms to be filed, and affect more than 36 million entities. At a time when we should be making it easier to create jobs, promote growth and invest in our economy, small firms don’t need yet another costly and burdensome mandate.” During his testimony, Rep. Dan Lungren, R-Calif., said, “I would suggest to the committee that Section 9006 conveys the worst possible message to the small business community.

It reflects a disconnect with the day-today reality faced by the men and women involved with companies in each and every one of our districts. As one small businessman recently related to me, ‘This is what you would expect from someone who has never laid awake at night worrying about making

a payroll.’ He’s right, and we shouldn’t be adding to the worries of those who run small business enterprises.”

More at www.TakingTheHill.com.

Arizona Hail Storm Damage Tally up to $15 Million

Damage from last October’s hail storm is costing the Maricopa County, Ariz., government and taxpayers millions, according to reports made by Claims Journal.

Officials say the storm that dumped large hail in some areas damaged about 450 county-owned vehicles.

Some vehicles had cracked and broken windshields.

The county says others had damaged and dented hoods and mirrors on cars, buses, vans and forklifts.

The county says the cost of repairs will be partially picked up by insurance carriers but tens of thousands of dollars in repair costs will be passed on to taxpayers.

The Arizona Republic reports the county estimates total real-property damage costs from the Oct. 5 storm range from $15 million to $20 million.

George to Chair Insurance Institute for Highway Safety

AAA Northern California, Nevada and Utah, announced that Steve George has been elected as the new chairman of the board of directors for the Insurance Institute for Highway Safety.

George is the executive vice president of insurance services at the California State Auto Group, a major provider of AAA-branded insurance in 23 states and the District of Columbia.

The Insurance Institute for Highway Safety (IIHS) is a nonprofit organization dedicated to reducing deaths, injuries, and property damage that result from crashes on the nation’s roads.

In his role as executive vice president of insurance services, George is responsible for delivering a portfolio of relevant and competitive insurance products and services to nearly 15 million AAA members in states across the country, including members in Northern California, Nevada and Utah.

Prior to joining AAA, George served as senior vice president for property and casualty underwriting at USAA and worked at Nationwide Insurance for 21 years.

New ‘Smart City’ San Diego Partnership Targets Electric Vehicles in Smart Grid Technologies Fresh on the heels of new data that shows business leaders are prioritizing collaboration as the gateway to innovation and growth, a new partnership launched February 1 in San Diego, California to accelerate the rollout of smart grid technologies, clean energy, and one of the most comprehensive electric vehicle infrastructure plans in the country.

The new Smart City San Diego, unveiled in February at UC San Diego, is designed to position the San Diego region as a leader in energy management, with the eventual goal of driving more efficient, reliable, and sustainable energy into everyday living.

The partnership is a collaboration among the City of San Diego, utility San Diego Gas & Electric, UC San Diego, nonprofit CleanTECH San Diego and GE. The idea behind the initiative is that by combining the skills of a mix of innovators—from government, business, education and non-profit sectors—the region can speed adoption of key technologies and benefit from the latest thinking.

At the heart of the partnership is a series of EV initiatives that include demonstrating smart technologies that

better manage grid power loads in order to enable rapid EV growth; streamlining home and public charging permitting processes to speed adoption of EVs; and leveraging UC San Diego’s extensive solar and fuel cell renewable energy work to find new ways to draw on clean power sources.

The partners will also quantify the economic impacts of the EV initiatives—such as the business and job growth that result—and they’ll study consumer behavior to better understand decisions and to identify other potential EV initiatives.

The new push comes just as California set a target of generating 33 percent of its energy from renewables by 2020—and San Diego itself is prepping for one of the largest initial deployments of EVs in the country.

On the plus side, EVs could reduce U.S. oil importation by 52 percent, and electricity costs per mile are expected to be approximately onequarter to one-third the cost of gasoline per mile.

However, grid reliability and consumer acceptance and education have to be tackled first in order to ensure that the integration happens seamlessly.

4 MARCH 2011 AUTOBODY NEWS | www.autobodynews.com

Murietta, Calif. May Donate Red Light Camera Fines

Murietta may donate red light camera fines to local charities in an effort to convince skeptics that safety is the motive behind the cameras, not a money grab.

A recent red light camera study by the Insurance Institute for Highway Safety said cameras indeed save lives, according to reports made by Insurance Journal.

Murietta Councilman Rick Gibbs suggested the charity idea when the city leaders decided earlier this month to expand the red light camera program from three intersections to five.

Gibbs says the cameras have led to complaints the city uses the cameras to make money.

Mayor Randon Lane told the Riverside Press-Enterprise that the city would pursue the idea and donate any future revenue to local charities that apply for federal Community Development Block Grant money.

The Police Department saidthe city got $261,750 from the 8,500 red light tickets issued during the fiveyear program.

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www.autobodynews.com | MARCH 2011 AUTOBODY NEWS 5

Continued from Page 1

Jobber Lawsuit

any BMW car painted at German Motors.”

“BMW North America told German Motors that they had to buy from them under this new program, no matter what other contracts they had, or else they would lose their certification” said NDI’s owner, Tony Nicolosi.

German Motors Collision Center’s contract with NDI stated: “All paint materials, DPC products and supplies will be purchased exclusively through Nicolosi Distributing Inc. Materials purchased by BMW of San Francisco will not be bought through any other vendor.”

German Motors Collision Center in San Francisco

Under this new program BMW North America does not allow any of their certified body shops or dealerships to paint BMW vehicles with any other paints, blocking jobbers across the country out of the market of sell-

ing paint supplies to these places.

Nicolosi said that NDI sells DuPont paints, and the BMW paint is also made by DuPont.

“A lot of jobbers across the country lost a lot of business because of this,” said Nicolosi.

NDI is also accusing BMW North America of interfering with a prospective economic advantage, violation of California’s Anti-Competition Act, Business and Professions Code Section 17200 and violation of Business and Professions Code Section 16727 in which a business’s actions lessen competition and create a monopoly on a trade or line of commerce.

Nicolosi is asking for damages of $75,000 for the first and second claim, exemplary damages from Federal Court, injunctive relief from the third and fourth claims, attorneys fees, other relief from the Business and Professions Code violations, court costs and other relief as judged by the court.

On February 7, 2011, BMW of North America filed a motion for judgment on the pleadings, which sought to dismiss the entire action.

The Court Denied the motion in

Ford to Ax Another 100 Lincoln Dealers

Ford Motor Co. confirmed February 6 it wants to cut another 100 Lincoln dealers as it pares back its luxury brand network.

In October, published reports quoted dealers as saying Ford wanted to shrink its 500 dealers in 130 major markets to 325. Ken Czubay, Ford’s U.S. sales chief, said the company said the 500 dealers in 130 major markets had been reduced to 434 as of Dec. 31, and he confirmed the 325-dealer target for the major markets.

“That’s our evaluation of the marketplace,” Czubay said. Ford is offering buyouts to Lincoln dealers.

“We’re working with every dealer to help them evaluate their business plan. We’re not forcing anyone out. This is strictly voluntary,” Czubay said. “It’s a tough personal decision that they have to make.”

Most luxury brands in the United States have 250 to 300 dealers. Lincoln has 1,200 — and it has the oldest

average buyer among luxury brands — older than 60.

Lincoln is introducing seven new or refreshed products over the next three years. Sales were down 21 percent for Lincoln in January, but its market share in the luxury market grew by 5.6 percent.

Czubay said Ford wants to be “well on our way to completion” of paring its Lincoln dealer network by year’s end. Ford says it is necessary to reduce the number of dealers to make the remaining Lincoln dealers more profitable. Ford is setting higher standards for dealerships and their staffs.

The Dearborn-based automaker is giving cash to all Lincoln dealers as part of an effort to boost dealerships. Dealers will start getting measured on April.

After an Oct. 1 snapshot, if they don’t meet a certain compliance percentage, they will lose the new cash from Ford. Ford will send all of its Lincoln dealers details of the program this month.

6 MARCH 2011 AUTOBODY NEWS | www.autobodynews.com

part, and granted the motion in part.

US District Judge Susan Illston ruled that the intentional interference with a contract, interference with a prospective economic advan-

Nicolosi Distributing Inc.’s San Carlos location

tage and unfair competition complaints would go ahead to court, while the claim for an unlawful tying agreement was dismissed with leave to refile, which Nicolosi will do on February 25, according to NDI’s lawyer Herman Franck.

According to Franck, NDI will amend the complaint to describe the particulars of an illegal tying arrangement whereby BMW of North America coerces body shops into purchasing BMW branded pain products by withdrawing BMW certification unless they purchase BMW

branded paint products. This issue applies only to BMW automobiles, and does not apply to non-BMW automobiles.

Franck went on to say that the coercion in the industry is that it is “unthinkable not to have that (BMW) certification” according to German Motors Collision Center, so the BMW certification is really tied to using BMW-certified paint.

When asked about the litigation

by Autobody News, BMW North America’s legal representative Stephen Bledsoe said, “It is BMW’s policy not to comment on any pending litigation.”

The trial date is set for October 24, 2011 at 8:30 a.m.

Nicolosi is expecting other jobbers who feel they have lost business because of this program to come forward and join the lawsuit.

Nicolosi Distributing Inc. San Jose location: (408) 573-7146 San Carlos location: (650) 413-0150 Email: NicolosiCo@aol.com

Stephen Bledsoe- representing BMW (816) 561-7007

www.autobodynews.com | MARCH 2011 AUTOBODY NEWS 7

Sacramento Approves ‘Crash Tax’ on Non-City Residents The Sacramento City Council has adopted a city ordinance approving a “crash tax” on out of town automobile drivers.

The City Council voted 5-4 on Tuesday night to join a growing list of cities across the state that charge out-of-towners hundreds of dollars when they’re in an automobile crash that requires a Fire Department response, according to reports made by Insurance Journal and the Sacramento Bee. The “fire recovery charge” will impose a fee on out-of-town drivers who get into auto accidents in order to fund the fire department’s response services.

The fee would be imposed on non-resident drivers if insurers find them at fault in the accident. But business owners who live outside the city but have property inside the city would be exempt from the tax.

The fee will be billed through drivers’ insurance companies.

The Association of California Insurance Companies opposed the tax.

“Given the difficult economy, it is un-

derstandable why the City of Sacramento is looking for new revenue sources.

However, putting this burden on out-of-town drivers is unfair,” said Sam Sorich, ACIC president.

Supporters of the fees say the charges represent a fair piece of the costs that cities incur responding to thousands of wrecks each year.

The fees are not taxes, city officials said, because they will not provide the city with revenue beyond what is spent on the Fire Department’s response.

City officials said they were hopeful the fees would help avoid some future cuts to the Fire Department.

But critics – including a state senator who has written legislation proposing to ban the fees – describe the programs as “double taxes” levied against out-of-towners whose sales tax contributions already pay for fire service.

Several states, including Florida and Pennsylvania, have outlawed the programs.

8 MARCH 2011 AUTOBODY NEWS | www.autobodynews.com

The city Fire Department responds to 3,600 accidents a year, city officials said. One-third of those involve drivers who live outside the city.

Under the city’s adopted fee scale, nonresidents will be charged $495 if they are involved in a typical incident in the city. Those crashes involve “scene stabilization” by the Fire Department, as well as a cleanup of gasoline or oil.

Crashes in which a helicopter is required to evacuate a victim will run $2,275.

All nonresidents involved in crashes in the city will receive bills for Fire Department service.

Insurance companies will in turn determine who was at fault in those wrecks and then who will be on the hook for the fees.

While city officials are counting on insurance companies to pay the bills, Sorich said that the “typical auto insurance policy was never intended to cover these fees.”

Sacramento Fire Chief Ray Jones told the council that the purpose

of the ordinance was “not to secure revenue, but rather to recover reasonable costs” incurred when the department responds to an auto wreck.

Still, Jones said the fees collected through the program would help maintain the department’s service levels.

Budget cuts in the past two years have led to two Fire Department rigs getting placed on rolling closures and Jones said the department was “trying to find ways not to have three, four, five.”

City officials projected the program will generate between $300,000 and $500,000 each year.

The ordinance debated Tuesday night was similar to one first floated last summer.

But after the city attorney’s office questioned the legality of only charging nonresidents, a new ordinance was discussed that would have also charged residents for Fire Department response.

That proposal was eventually tossed out in favor of the latest version.

Roseville, Calif. Crash Tax Fails To Deliver Revenue Roseville city leaders said they want to ditch the city’s crash tax because it’s not living up to expectations, according to reports made by ABC10 News Roseville.

In 2009, Roseville approved an ordinance that allows the city to collect fees for emergency services from non-resident drivers found “at fault” in crashes.

But Roseville City Manager Ray Kerridge said the crash tax has failed to deliver a promised financial windfall.

“The projections were that it would produce $100,000 (a year) plus and more. And when we did the tally, it only brought in about $40,000,”

Kerridge said. Apparently emergency crews and business owners also complained about the law.

Kerridge said the crash tax forces fire fighters and paramedics to spend more time at accident scenes.

“They have to go check insurances, licenses. What happens if somebody doesn’t have insurance or a license,” Kerridge asked. “It was taking our rigs out of rotation when they should have been out answering other calls.”

Kerridge contends the crash tax generated an anti-business climate.

Chuck Bartlett, who owns Bartlett Flowers & Gifts, agreed.

He said, “The economy is bad

enough. If there’s something else that’s causing people not to want to shop here or do business here, that’s not a good thing.”

The city of Sacramento recently generated a firestorm of complaints when it approved a crash tax.

Officials from Yolo County and surrounding cities have talked about possibly boycotting Sacramento and said the emergency fee creates the perception that the city isn’t friendly.

Kerridge said Roseville doesn’t want to foster that kind of ill will and will consider repealing the crash tax at next week’s city council meeting.

He said, “It’s a failed experiment. It’s time to get rid of it.”

Copart Auto Parts Moving to TX

A California auto parts company said February 4 that it plans to move its corporate headquarters to Dallas, according to the Dallas Morning News.

Fairfield-based Copart Inc.’s head office and a divisional processing center will relocate to the Dallas area next year.

“This change will position us closer to our customers geographically, resulting in improved customer service and greater operational efficiencies,” said Jay Adair, Copart’s CEO. Copart sells salvage vehicles and parts on the Internet.

The company, which was founded in 1982, said it plans to set up three processing centers in Fairfield, Grand Prairie and Hartford, Conn.

Hyundai Sending 71 Orange County Jobs to Texas, Georgia

Hyundai Capital America, the Korean auto company’s financing arm, is transferring 71 jobs from Irvine to its offices in Dallas and Austell, Ga., a spokesman has confirmed.

Chris Hosford, a Hyundai Motor America spokesman, said Hyundai Capital would maintain a presence in Irvine but that collections and customer service positions would be moved.

“The jobs are being transferred because they are focusing more of their efforts in the South and Southwest through Hyundai’s existing operations in those two cities,” Hosford said.

He said the people in Irvine who are affected have been notified and those jobs will end March 31.

“All the employees who are qualified have been offered to apply for the positions and encouraged to do so,” Hosford said.

He did not know how many people will make the move. Hyundai Capital’s website says it has about 500 people in Irvine, Fountain Valley and Austell. The company provides financing to Hyundai and Kia dealers and vehicle buyers. Some of the Irvine workers have applied for other jobs with the company in California.

“For some people, the opportunity to move to an area of the country where housing costs are lower could be a good thing,” he said.

Hosford said the job transfers are unrelated to Hyundai Motor America’s plans to more than double the size of its North American headquarters off the I-405 in Fountain Valley.

The company plans to begin hiring this year and expects to double the staffing at its headquarters to about 1,400 people. www.autobodynews.com | MARCH 2011 AUTOBODY NEWS 9

GM May Undergo Dealer Overhaul on East and West Coasts General Motors Co.’s North American President Mark Reuss wants to overhaul locations of some automaker’s dealerships that are in key markets on the East and West coasts of the country, according to reports made by the Detroit News Washington Bureau.

Reuss told reporters the automaker could add additional dealerships in key markets on the east and west coasts.

He said, “we know that our footprints on the coasts have been destroyed” through GM’s 2009 bankruptcy, the 2008-09 financial crisis and what Reuss admits are “20 years of bad product.”

GM’s strongest market in the Midwest and its sales on the East and West coasts have suffered for decades as imports have taken a growing share.

But Reuss said the company could opt to move dealers from underperforming areas to stronger areas, rather than actually open new dealers.

He said the first thing to boost sales in California was to make sure it had the right size dealer network and dealers in the right places.

“Not in all cases is it adding dealers, it would be getting the dealer that may be in that place in the right place,” Reuss said. “There’s a lot of work to do there.”

Findlay Automotive Group Acquires Flagstaff Honda

The Findlay Automotive Group on January 28 said it acquired Flagstaff Honda in Flagstaff, Ariz., and renamed the dealership Findlay Honda Flagstaff, according to reports made by the Las Vegas Review-Journal.

Financial terms weren’t disclosed.

In a statement, the group said the dealership, at 5199 Test Drive in the Flagstaff Auto Park, consists of a 23,000 square-foot sales and service center that was built in 2008.

This is the third Findlay Automotive dealership in Flagstaff and is adjacent to Findlay Toyota Flagstaff and Findlay Volkswagen Flagstaff.

Findlay Honda Flagstaff is the 23rd dealership owned by the Findlay Automotive Group.

The organization has headquarters in Henderson also owns dealerships in Arizona, Nevada, Utah and Idaho.

For more information please visit www.findlayauto.com.

Reuss and GM’s vice president for U.S. sales Don Johnson said GM hasn’t been strong in California and other markets and both coasts.

“The message is clearly we have to be in the right places if we’re going to be successful,” Johnson said. “We know there are areas where we should be that we’re not.”

Johnson said Los Angeles and San Francisco were two markets “we need to perform better overall.”

Reuss said his message wasn’t that GM was about to add a bunch of dealers.

“We’re saying we need to get the right distribution on these coasts and we don’t have it right now… We may have enough but they are very poorly distributed,” he said.

He named Long Island as another market where GM doesn’t have enough dealers.

Asked if GM had the right product mix to attract California buyers, Reuss said: “Not yet.”

“There’s some stuff that we need to have that we don’t have, but I’m not going to expose our future product portfolio,” he said.

Johnson said GM had turned off customers in the Golden State. “We were irrelevant in California. We’re becoming more relevant,” Johnson said.

Arizona Insurance Department Increases Property Damage Threshold for Autos to $2400

The Arizona Department of Insurance has adjusted the threshold amount of property damages insurers may use to non-renew private passenger auto policies to $2,400, according to Insurance Journal.

According to the DOI, A.R.S. 20-1631(E) governs the limits on an insurer’s ability to cancel or nonrenew a personal automobile policy after it has been in effect for 60 days, and A.R.S. 20-1631(E) lists additional conditions and limitations for cancellations and non-renewals, including a provision that: “An insurer shall not fail to renew more than onehalf of 1 percent of its policies annually.”

For accidents occurring after Jan. 2, 2000, the ADOI must annually adjust and publish the threshold amount. Because the U.S. Department of Labor Bureau of Labor Statistics Consumer Price Index for urban consumers is 1.6 percent, ADOI has increased the threshold.

10 MARCH 2011 AUTOBODY NEWS | www.autobodynews.com

Reuss also said more than 90 percent of the automaker’s 4,500 U.S. dealers are profitable.

Reuss praised the remarkable turnaround, noting that less than 40 percent of GM’s 6,200 dealers at the end of 2009 were profitable.

Asked if GM had the right overall number of dealers at present, Johnson said it could still decline over time. “We are doing a thorough assessment of our network,” he said, saying it was a priority to address the coasts.

As a result of fewer dealers and GM’s increase in sales, average sales at dealers are up. GM is also using the same advertising budget to tout its four remaining U.S. brands, compared with 8 brands in early 2009.

About 1,000 of its dealers this year are improving their facilities.

Chrysler CEO Sergio Marchionne said Friday more than 80 percent of its dealers are profitable today — the highest level since 2000.

Reuss also said GM has no plans to buy its own dealerships.

He said GM will build 10,000

Volt vehicles in this model year and 40,000 in the 2012 model year.

Reuss said the company is targeting growth in subprime lending for the less-than-optimal credit score that 40 percent of Americans have.

About four percent of GM’s business was in leasing in 2010; last month it was 14 percent.

GM acquired AmeriCredit for $3.5 billion late last year and renamed it GM Financial. It started a subprime leasing trial in Ohio of the Cruze and is rolling it out to seven Northeast states and will expand to Canada in the second quarter.

“We have leases but we’re not competitive (in Canada),” Reuss said.

Johnson said GM Financial is so far “only putting its toe in the water.”

Asked if GM will get a PR boost in withdrawing a request for up to $14.4 billion in Energy Department retooling loans, Reuss said he didn’t know.

“I know that it will prevent our competitors from making T-shirts that say things about it, which would be helpful perception wise,” Reuss said.

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www.autobodynews.com | MARCH 2011 AUTOBODY NEWS 11

Second CAA Meeting of 2011 Involving the EEEC Coming in March The Economic & Employment Enforcement Coalition (EEEC) will speak at their second annual CAA Meeting this year in March. The meeting will be on March 10th, 2011 at the Holiday Inn in Torrance, CA. Networking & Registration will run from 6:00 -6:30 pm and the dinner meeting will follow from 6:30 8:00 pm.

The EEEC is going to begin making unannounced inspections of auto

body shops this year. They will review your business records and interview your employees. They will inspect your shop for compliance of labor laws, health & safety regulations and tax compliance.

This meeting will cover what you need to know about these inspections and the EEEC will explain to attendees what type of violations they look for and why.

The EEEC (Economic & Employment Enforcement Coalition) is a

government enforcement unit comprised of investigators and inspectors from several state agencies including EDD (payroll), OSHA (safety), Labor Commissioner's Office (employee rights) and more.

This year, they are stepping up these unannounced inspections in the Autobody industry for compliance.

The cost for the meeting is $40.00 for members at the door and $100.00 for non-members.

SO. CALIFORNIA

Subaru of Glendale Glendale (818) 550-1500 (818) 549-3850 Fax Mon.-Fri. 7-6; Sat. 8-4 parts@glendalemitsu.com www.subaruofglendale.net

Sierra Subaru of Monrovia Monrovia (626) 359-8291 (626) 932-5660 Fax Mon.-Fri. 7-6; Sat. 8-4 parts@sierracars.com www.sierraauto.com

Timmons Subaru

The following dealerships are eager to serve your needs. Call your local Subaru collision parts specialist today!

Galpin Subaru

SO. CALIFORNIA

Van Nuys (818) 778-2005 (818) 778-2090 Fax www.galpin.com

Kearny Mesa Subaru San Diego (800) 548-9124 (858) 300-3331 Fax Mon.-Fri. 7-6 cguth@kmhyundaisubaru.com www.kearnymesasubaru.com/parts

12 MARCH 2011 AUTOBODY NEWS | www.autobodynews.com

Long Beach (888) 489-5001 (562) 426-3550 Fax Tue. 7-8; Mon., Wed.-Fri. 7-6; Sat. 8-4, Sat. No Delivery Parts@timmonslongbeach.com www.timmonssubaru.com

Marin Subaru

San Rafael (415) 257-4690 (415) 257-4684 Fax Mon.-Fri. 7:30-5:30; Sat. 8-4 marinmazdasubaru@yahoo.com www.marinsubaru.net

RSVP to Cindy Shillito at radiatorgirl@socal.rr.com or call 714-9444028.

See the next edition of Autobody News for more about this meeting.

www.autobodynews.com CHECK IT OUT!

NO. CALIFORNIA

Subaru of Santa Cruz Santa Cruz (800) 549-8490 (831) 420-1402 (831) 420-1923 Fax Mon.-Fri. 7:30-6; Sat. 8-5 parts@santacruzsubaru.com www.santacruzsubaru.com

ARIZONA

Anderson Subaru Lake Havasu City (928) 764-5177 (928) 764-2574 Fax Mon.-Fri. 7:30-5:30; Sat. 8-2 www.andersondeals.com www.andersondealssubaru.com

Power Subaru

Scottsdale (480) 425-2950 (480) 425-2948 Fax Mon.-Fri. 7-6; Sat. 7-4

The Auto Body Guru Answers Questions on Online Marketing Q: It’s a new year and I am evaluating all my current marketing. Should I be investing more money in print Yellow Pages?

A: Great Question! While its true that print Yellow Pages was a great way to market your business many years ago the marketing climate has changed and the way your potential customers are searching for auto body and paint services has changed. In fact, just over 70% of searches for local goods and services are conducted online via major search engines and directories like Google, Yahoo!, Bing and many more and usually at a fraction of the cost.

Q: I get mostly insurance work now.

How can marketing my business online help?

A: This comes up a lot and online marketing is actually a great complement for your existing work. In most cases when people are searching online for repair shops they are doing

this because they are not aware of their options. If you’re showing up in top results online you’re just increasing your exposure and also the number of jobs that may be going to your competition now. Also, you may have complementary businesses like towing or auto repair that can also benefit from making sure your business is visible online.

Q: I have a website so I’m all set right?

A: Actually, No. A website is a needle in a haystack unless its front and center on search engines and mobile phones. It’s like designing an amazing business card and never passing a single one out. It doesn’t do you much good if nobody sees it. Making sure you business and website is visible on search engines, directories, mobile phones, gps devices, plus other online venues is the key for your business’s future growth.

Q: I have people calling me everyday

claiming to be from Google, Yahoo!, or Bing and trying to sell me online marketing, is this for real?

A: Unfortunately, like other industries the online marketing industry can be plagued by companies who claim something they are not. The fact of the matter is that Google, Yahoo!, or Bing do not actively market or solicit businesses. In fact, they warn that anyone claiming to be them is a scam. Even Auto Body Guru doesn’t have a direct line to these search engines.

every click or view of your site.

This can be a great method of marketing but it’s never going to be a fixed cost that makes sense. Instead, organic or natural search engine optimization is a much better return on investment. It takes 2–3 months to generate real results in search engines but they are more permanent and have longevity.

For additional information about how to increase your business through online marketing, contact:

Q: I have companies who say they can deliver results in 24–48 hours. Is this for real?

A: Yes and No. They are using a marketing program called Pay Per Click. It means they can get your business on the first page quickly but you are required to pay for

Auto Body Guru (888) 335-2226 rmirzaians@softlinesolutions.com www.softlinesolutions.com

J.D. Power Reveals Top Manufacturer Websites This year, J.D. Power and Associates thinks Honda’s site does the best job delivering the best information and providing a consistently satisfying experience across all points of entry.

That’s the finding of J.D. Power’s 2011 Manufacturer Website Evaluation Study — Wave 1, which was released earlier this month.

The semiannual study now in its 12th year measures the usefulness of automotive manufacturer websites during the new-vehicle shopping process by examining four key measures: speed, appearance, navigation and information/content.

J.D. Power determined Honda ranked highest with a score of 836 on a 1,000-point scale. Analysts thought Honda’s site performs particularly well in the information/content, navigation and speed measures.

Rounding out the top five automaker websites as ranked by J.D. Power: —Mazda: 818 —Mini: 815 —Porsche: 814 —Acura: 813 “Certain brands that perform consistently well among users who enter at the home page and through model pages — such as Mini and Porsche — have navigation schemes that remain the same throughout the website,” explained Arianne Walker, director of marketing and media research at J.D. Power.

“This makes it possible for website users to access relevant information from anywhere on the site,”

Walker continued. “This certainly reinforces the fact that automotive brand websites need to be intuitive and should reduce the number of clicks it takes for the user to get to their desired destination.”

J.D. Power went on to reveal that the most improved brands in 2011 include Cadillac — which jumped by 15 rank positions — and Porsche — which climbed by 14 rank positions.

According to Walker, much of Cadillac’s improvement in 2011 comes from improved navigation, which was added on top of image and branding updates that were initiated early in 2010. She pointed out Porsche’s improvement from 2010 was primarily due to changes in navigation and design that provide users with clearer, more readable page layouts.

“Whenever a website incorporates image and brand changes, it involves a certain amount of risk; however, taking these risks allows manufacturers and marketers to take advantage of the dynamic, changeable nature of the Internet,” Walker said.

“Compared with changing the design of a vehicle model, changing a website provides a relatively low-cost opportunity to experiment, and even allows for reversal of the changes if the experiment doesn’t work,” she went on to say. “However, it’s important to keep in mind that changes should include some reasonable payoff for the website user. In fact, users will be more accepting of experimentation if the payoff is See JD Power, Page 40

www.autobodynews.com | MARCH 2011 AUTOBODY NEWS 13

California Expected to be Biggest U.S. Market for Plug-In Vehicles California is likely to become the biggest U.S. market for new plug-in and electric cars, accounting for more sales of these high-tech, clean vehicles than the five next largest states combined, according to a new study, according to reports made by the Detroit News.

The Center for Automotive Research in Ann Arbor said in its study that demand for plug-in and electric cars, such as the Chevrolet Volt and Nissan Leaf, is likely to follow a similar pattern to hybrid car sales.

The leading markets for these new, cleaner vehicles tend to be the

more populous states, but California also leads in density of hybrid owners, with more than 50 per 10,000 residents, compared with fewer than 26 per 10,000 in Texas or Michigan.

General Motors Co. and Nissan Motor Co. are ramping up deliveries and production of the Volt and Leaf, respectively.

Ford Motor Co. is expected to introduce an electric Focus before the end of the year, while several other carmakers are rolling out their own electric offerings: the Mitsubishi i-Miev, a Tesla Model S, a Fisker Karma, a Coda sedan, a Mini

E, Toyota RAV-4 and electric Smart Fortwo.

“California is an initial launch state for the Volt, Leaf and Focus Electric — likely due to its position as the largest automobile market in the United States, as well as its relatively high penetration of hybrids, and regulatory environment conducive to electric vehicle adoption,” the study said.

Fuel-cell vehicles, now leased in tiny numbers, are expected to increase from 2015 as more models become available.

According to industry estimates cited in the study, combined U.S. sales

of electric, plug-in and fuel-cell vehicles is expected to nearly double from 77,000 in 2012 to 140,000 in 2015. By then, the number of electrics and plugins on U.S. roads is expected to reach close to 500,000.

According to the CAR report, key factors underpinning demand for these new and cleaner technologies include tax or other incentives, the provision of priority parking spaces and the installation of charging outlets.

States offering the biggest array of incentives include Florida, Colorado, Massachusetts, Maryland, New York, Utah and California.

Martin Vasquez, 43, one of the ringleaders of a million-dollar Southern California car theft ring that employed phony DMV documents and stolen driver’s license numbers, was arraigned earlier this month in Los Angeles Superior Court.

All three men named in a complaint filed by the state Department of Justice have now been taken into custody and arraigned on multiple counts of theft and conspiracy in connection with the use of fraudulent DMV documents to clear the titles of two dozen vehicles so they could be sold at auction or to individuals. The estimated value of the stolen cars was $1.2 million.

Luis Marroquin, 64, of Huntington Park was also arraigned in Los Angeles County Superior Court. Marroquin’s bail was set at $700,000. He is being held in Los Angeles County Jail.

Marroquin and Kirsio Cruz, 46, of Norco were arrested after an investigation by the California Highway Patrol and the Department of Motor Vehicles. Cruz was released shotly after on $150,000 bail after arraignment.

Vasquez was arrested at a coffee shop in Southgate. His bail was set at $355,000.

Vasquez and Marroquin ran a smog shop and a fraudulent registra-

tion service called Latinos Smog in the Boyle Heights section of Los Angeles, according to documents filed in the case. To advance their scheme, they used fraudulent California driver’s licenses, Social Security cards, notary stamps and CHP and DMV rubber stamps to “wash” vehicles of their lien holders.

Their use of stolen driver’s licenses and Social Security numbers put innocent, and unwitting, citizens at risk of further identity theft abuses and loss of credit.

Here’s an example of how the scheme worked: In October 2007, a phony DMV release of lien holder form was filed, removing Toyota Motor Credit as the lien holder for a 2005 Toyota Camry registered to an Inglewood man.

That “washed” a lien of $27,261.16 on the car, unbeknownst to Toyota Credit, which tried to repossess the car and then wrote off the vehicle when it could not be located. It was later recovered by Oakland police.

In another instance, a 2005 BMW 645i was purchased using a stolen driver’s license and a stolen Social Security number belonging to innocent citizens.

The company that financed the purchase then had its lien removed through a forged document filed with

DMV, a process that allowed the car to be sold at auction by the car thieves.

A silver metal briefcase and other containers found in a Ford Taurus parked at Latinos Smog, according to a CHP inventory, contained at least 125 stamps, including stamps for Hawthorne, Pasadena and several

other DMV locations; notary public #48012714 stamp; a CHP stamp; a stamp for Toyota Motor Credit; stamps for various other auto financing agencies; and stamps for auto auctions in Fontana, Riverside and elsewhere in Southern California.

The investigation into the car theft ring continues.

Ringleader Arraigned on Conspiracy Charges in a $1.2 Million CA Car Theft Ring

See the NEW

Autobody News Website www.autobodynews.com 14 MARCH 2011 AUTOBODY NEWS | www.autobodynews.com

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parts@weatherfordbmw.com www.autobodynews.com | MARCH 2011 AUTOBODY NEWS 15

Shop Strategies for Savings

Walter Danalevich, AAM, has been the owner of Santa Barbara Auto Refinishing since 1979. Contact him at: sbarbody@earthlink.net.

“It’s a Misunderstanding”—Insurance Appraiser Boot Camp with Walter Danalevich

Those of us who are active in the auto body industry understand there is much skill involved negotiating with insurance company appraisers in arriving at an “acceptable” (profitable) repair bottom line.

During my 30 year auto body career, I have written thousands of auto body repair estimates mastering the “the art” of negotiating with a variety of insurance appraisers. It’s only natural to have a preference of which insurance appraisers we welcome into our auto body shops. Commonly we find some insurance appraisers are consistently easier to work with and arrive at a profitable “bottom line.” Then there are those appraisers that make us feel as though they are paying for the repairs out of their own pockets.

Recently, our body shop in Santa Barbara, Calif., had an insurance claim where the issuance of the supplement was an experience I have never encountered in over thirty years of owning and managing a body shop.

On the day the insurance appraiser representing a well known company arrived, I noted this appraiser had never been assigned an appraisal inspection at our shop before. Therefore I had some concern we did not have any history of a working relationship.

The insurance appraisal inspection involved a 2002 BMW 323cic.

Upon introducing herself the appraiser began taking photos of the claimant’s vehicle and making notes pertaining to the damaged left rear door and quarter panel. I listened attentively to the often heard we-can-only-pay-forthis-procedure speech.

Days later, we completed the repairs and submitted a supplement to the insurance appraiser. During my follow up on the supplement confirmation, I received a phone call from the appraiser saying her supervisor has now decided not to pay for the rear $130 bumper molding she had originally approved to be replaced on her preliminary insurance estimate.

By the way, the “non returnable” part has been installed on the customer’s vehicle. My initial reaction was I could not believe what I was hearing.

If this was ten years ago I feel certain this appraiser would have been on the

receiving end of some colorful language. Instead, I phoned the vehicle owner and informed him there is an insurance delay in delivering his car today. I said it appears the insurance company does not mind paying for “additional” rental car expenses over the weekend because of an unsettled new policy which I never experienced before. I explained the “we would pay for it yesterday but not today” response. The vehicle owner phoned the insurance appraiser expressing his concern about the delay as he needed his car returned for an upcoming trip.

That same day I received a phone call from the insurance appraiser who stated I would need to call their company’s supplement hotline to “negotiate” an agreement for full payment concerning the $130 molding.

I thought to myself there is nothing to negotiate here—the insurance company owes us full price for the part! On Monday morning I then phoned the insurance company’s 1 (800) SCREW U hotline. I’m sure many of you know the supplement hotline which I am referring to. This particular hotline did not have a human voice, only a voice recording instructing you to fax your supplement to 1(800) SCREW U 2. Feeling frustrated, I then phoned the insurance appraiser and learned she had this Monday and Tuesday off, probably for meeting the insurance company’s quota of withdrawing parts and labor from the original written estimates.

Near mid-day Monday, I received a phone call from the insurance supervisor who appeared to be “shadowing” this claim. He told me the claimant had phoned seeking his assistance to arrive at a settlement which resulted in unnecessary delays in releasing the vehicle to the claimant. I explained to the insurance supervisor the problem initiated by their appraiser, specifically, the $130 bumper molding part which had been withdrawn from their proposed supplement. Upon further discussion the claim supervisor replied his decision of withdrawing allowance for the part was based upon thinking the part in question was a door side molding not the bumper molding! Say What!?

At that point, I had to ask how long his

16 MARCH 2011 AUTOBODY NEWS | www.autobodynews.com

appraiser, has been employed. He replied about “Two months”! Like, No Kidding!

According to the insurance supervisor’s explanation this was all a “misunderstanding”!

Is it a misunderstanding or a mistake when hiring someone who is not experienced enough for the position to make confident decisions? As a result of my efforts in standing up to the insurance supervisor we were paid in full ($181) for supplement parts and labor pertaining to the withdrawn bumper molding from the original insurance repair estimate.

Have you ever had a 1 800 SCREW U 2 “misunderstanding”?

If so, drop me a line I would welcome you to share your memorable insurance “misunderstanding” experiences.

Walter Danalevich sbarautobody@earthlink.com www.sbautobody.com

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www.autobodynews.com | MARCH 2011 AUTOBODY NEWS 17

CREW Hosts New CIC Chairman Mike Quinn in Webcast The February webcast of the Collision Repair Executive Webcast (CREW) hosted new Collision Industry Conference (CIC) Chairman Mike Quinn.

Quinn also owns 911 Collision Centers with 7 locations in Arizona.

The webcast detailed Quinn’s goals for his 2011-2012 term at CIC Chairman. Quinn’s main goals are to increase attendance and participation, increase trust, make CIC a place for people to voice issues without fear of Mike Quinn criticism, create a process where committees can develop work product that is valued by the industry and formulate processes to improve the overall effectiveness and efficiency of CIC as a body.

Quinn further explained what he means by process by using the class A standard of a work facility that came from CIC previously as an example. He also mentioned the effectiveness of CIECA and their work with electronic commerce as a good process that was

brought by a committee before his term.

Quinn said he would like to make CIC helpful in creating a solution or finished product that can help solve a problem, not just a floor for people to vent their issues and opinions.

“We’ve paired down a few of the committees,” said Quinn. CIC steamlined a few of their committees this term in order to make sure each committee had a specific and attainable goal.

“We’re going to create a voting standard for the adoption of practices,” said Quinn. The hope is that new processes for solving issue within the industry can be voted on by committees, presented to the whole CIC to vote, then to the entire industry before attempted adoption.

Quinn said he would like to see a repair standards committee take a similar route as compared to CIECA. “We’ve worked very closely with Thatcham... we’re hoping to discuss their repair standard at the July meeting,” said Quinn.

Quinn also talked about promoting respect and new leadership at CIC meetings and in committees.

Sun Devil Auto Offers Expanded Services: Free Car Care Clinics The new-year brought growth and expansion to Sun Devil Auto, a leader in the automotive aftermarket industry.

The Higginbotham family-owned and independently operated chain boasts twenty-one locations in Arizona, four in Nevada and three in Texas.

Sun Devi Auto is often referred to as the “alternative to the dealership” and since 1978 has successfully serviced tens-of-thousands of vehicles in the retail and commercial fleet markets.

Given the current economic climate, and with more people holding on to their vehicles rather than buying new, the Sun Devil Auto team launched a new Car Care Clinic program to 1) help consumers learn some basics about their vehicle; 2) identify what could be the beginning of a minor mechanical issue, 3) get out into the community and relate one-toone with their customers.

The program has been well-received, and to-date, has been “tested” in a variety of settings such as Homeowner’s Associations, RV Resorts, women’s groups and organizations.

When asked about the relevance to this program, veteran store manager and creator of the program Dave McCombs stated, “I enjoy talking to people about their vehicles -- it’s that

simple. As automobile owners, we know that when we take care of the small preventative maintenance issues, chances are, the major problems won’t necessarily occur. In this economy, spending a little to prolong the life of one’s vehicle makes good sense and even if a key mechanical issue needs attention, in the long-run it’s still more cost-effective to replace a transmission than it is to buy a new vehicle.”

Any organization or community interested in Sun Devil Auto’s free Car Care Clinic Program is encouraged to contact one of the company’s twenty-one locations. Sun Devil Auto is an Arizona-grown, family-owned and operated auto-repair company offering complete repair in the automotive aftermarket industry. Established in 1978, the company has successfully established an Arizona presence with 21 locations and recently has expanded into the NV and TX markets.

Visit www.SunDevilAuto.com for more information.

“All segments of the industry need to be represented, respected and able to participate,” said Quinn.

New guidelines and a code of conduct were released at the Palm Springs meeting held on January 12, 13, 14 to increase respect and encourage communication.

“We’re reaching out to a number of the top 10 insurers and others to participate,” said Quinn, “And repairers as well as vendors.”

Quinn also spoke about the close vote during the Palm Springs meeting between whether to hold the November 2011 meeting at NACE or SEMA; SEMA won out by one vote.

“The vote was 99 to 98 in favor of SEMA, that really shows how divided this industry is over this issue,” said Quinn.

Quinn also spoke about how this split is the beginning of a big change in how people conduct business and whether or not they attend trade shows, largely thanks to technology.

Quinn was asked whether or not the CIC meetings should be televised or streamed live by webcast, and he

expressed that it was a good idea although CIC has some concerns about privacy and people continuing to be open with their opinions when they know they are being broadcasted worldwide.

“It’s inevitable for the mere reason we’re talking about it,” said Quinn, who is positive technology will influence future meetings.

Quinn also plans to engage younger people in the industry to participate in CIC, he said that he is already doing this through some of the people he has elected to chair certain committees and by reaching out to repairers to attend.

“The only way we’re going to get new leadership ... is to have the leaders in the industry reach out to the younger people and bring them forward to participate,” said Quinn.

Upcoming meetings for the CIC are: March 17 in Newark, NJ, July 20 in Salt Lake City, UT and November 2 and 3 in Las Vegas, NV. For more information please visit www.ciclink.com or www.crewwebcast.com.

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CAA San Diego Holds First Meeting of 2011 With Mitchell’s Greg Horn The CAA San Diego Chapter kickedoff the New Year with their 1st 2011 Chapter Meeting on January 25th at Tom Ham’s Lighthouse in San Diego.

The guest speaker at the event was Greg Horn, Vice President, Industry Relations, Mitchell International.

The meeting was well attended with over 80 CAA members and guests.

The meeting started with the swearing in of the 2011 San Diego Chapter officers.

Continued from Page 1

Class Actions

necessary repairs from vehicle-damage estimates. This practice, he alleged, violates GEICO’s contractual promise to restore the insured’s vehicle to its preloss condition and constitutes statutory and common-law fraud. GEICO removed the case to federal court under the Class Action Fairness Act (“CAFA”).

The district court dismissed the statutory consumer-fraud claim without prejudice. Greenberger amended his complaint and again the court dismissed the statutory claim, this time with prejudice (meaning it could not be refiled), and also denied Greenberger’s motion to file a third amended complaint. Greenberger’s other claims, however, were allowed to proceed. The court eventually granted GEICO’s motion for summary judgment on the breach-ofcontract and common-law fraud claims, and accordingly did not address the issue of class certification.

After an unsuccessful motion for reconsideration, Greenberger appealed.

Greenberger’s suit seeking class status alleged, in the court’s words, that GEICO “systematically underpays on its auto-accident claims by omitting necessary repairs from vehicle-damage estimates,” which Greenberger said “violates GEICO’s contractual promise to restore the insured’s vehicle to its preloss condition and constitutes statutory and common-law fraud.”

The court ruled that the fact that the one piece of physical evidence, Greenberger’s car, is long gone means that the suit cannot proceed.

After the swearing in of the officers, Greg Horn provided an indepth presentation that presented information on the state of the collision industry in terms of auto accident facts, the size of the US collision industry, trends in the Property and

Casualty business, new vehicle designs and the changing technologies that will affect repairers in 2011 and beyond.

At the end of the presentation Greg took numerous questions from the audience and invited attendees to sign up for his free quarterly Industry Trends Report by going to: www.mitchell.com.

For additional information about the CAA and membership benefits, contact Hop Sanchez at: SanchezH@Finishmaster.com

the promise to restore the policyholders vehicle to its preloss condition.

The district court sidestepped the class-certification question, dismissed the statutory consumer-fraud claim, and then entered summary judgment for GEICO on the breach-of-contract and common-law fraud counts.

Perhaps the most puzzling aspect of the case from the plaintiff’s perspective, is that he should have known better. Greenberger graduated from Yale Law School and currently works as an Associate Professor, and Associate Dean, at DePaul Law School in Chicago. In addition, Greenberger once worked as a clerk for the Seventh Circuit, the court that eventually threw out his case.

to pay for necessary repairs on behalf of consumers.

The case is currently in the hands of Attorneys Bill Markovits and Terry R. Coates of Waite, Schneider, Bayless & Chesley. Markovits told Autobody News that the gist of the claims was Progressive’s failure to pay for standard procedures as taught in any auto body tech program or textbook. Essentially Progressive was saying “we’ll pay for steps one, two, and five, but not for three and four.”

When the case was originally filed, plaintiff’s attorney Stan Chesley of Waite, Schneider, Bayless & Chesley, said, “This case is corporate arrogance at its worst. Progressive just walks all over these independent shops, and is trying to prevent them from performing the repairs that any reasonable consumer would expect.”

On January 19, Hamilton County Judge Steven E. Martin entered a summary judgment in favor of the insurer on two of the six counts claimed in the suit. Those two counts, claiming breach of contract and unjust enrichment, primarily claimed that Progressive increases its profits at the expense of repairers by refusing to pay, or severely underpaying, for specific repair procedures that are commonly required to repair collision damaged vehicles.

The judgment will be appealed by the shops however, and according to attorney Erica Eversman, some legal maneuvering was necessary in preparation for an appeal, including dropping the remaining four counts against Progressive.

Eversman explained, “We wanted the decision to be immediately appealable. A judge can put that language in an order, that it is immediately appeal-

(l to r) San Diego CAA Leaders: Stacey Landry, Larry Houk, Hop Sanchez, Louis Pieper and Monty Etherton

“Greenberger gave away his car, and without it, he cannot prove that what GEICO paid him was inadequate to restore the car to its pre-loss condition,” the court wrote in its opinion.

The court cited Avery v. State Farm, a decision out of the Illinois Supreme Court, in ruling that Greenberger could not preclude on his claim. “Among other important holdings, Avery established the commonsense proposition that a policyholder’s suit against his insurer for breach of its promise to restore his collisiondamaged car to its pre-loss condition cannot succeed without an examination of the car. Greenberger gave away his car, and without it, he cannot prove that what GEICO paid him was inadequate to restore the car to its preloss condition,” the court wrote.

Avery also made clear that fraud claims must contain something more than reformulated allegations of a contractual breach. Greenberger alleged that GEICO never intended to restore his car to its preloss condition and failed to disclose that it regularly breaches this contractual promise.

These are breach-of-contract allegations dressed up in the language of fraud. They cannot support statutory or common-law fraud claims.

Among the repairs not included in GEICO’s original estimate were “masking openings to prevent overspray,” “covering the vehicle to prevent overspray onto glass,” “checking seatbelts to ensure they worked properly,” and “cleaning the car for delivery to customer.”

Though legally distinct, Greenberger’s contract and fraud claims are all premised on the same basic factual allegation: that GEICO systematically omits necessary repairs from its collision-damage estimates in violation of

20 MARCH 2011 AUTOBODY NEWS | www.autobodynews.com

Progressive vs. Blue Ash et. al.

Prepped for Appeal The Progressive vs. Blue Ash case has resulted in a summary judgment on two of the six counts filed against it by a group of independent body shops in Ohio. The shops have also agreed to dismiss the remaining four claims against Progressive, but the suit will continue.

In 2009, Blue Ash Auto Body, Finney Automotive, and Valley Paint and Body filed suit against Progressive claiming that independent repairers (those not part of the insurer’s DRP program) are injured by Progressive’s claims handling practices. The shops charged that Progressive’s actions include illegally steering consumers to its network shops, illegal suppression of price, interfering with professional collision repair judgment, misusing estimating database information (including the use of a special version of the Mitchell estimating system created by Mitchell specifically for Progressive’s use), and the refusal

See Class Actions, Page 45

www.autobodynews.com | MARCH 2011 AUTOBODY NEWS 21

Air Quality Management District to Workshop NOx Reductions for Spray Booths The South Coast Air Quality Management District (AQMD) declared a notice of public workshop and CEQA scoping meeting about the proposed amended Rule 1147 – NOx reductions from miscellaneous sources at their January meeting.

The AQMD has also scheduled a public workshop regarding Proposed Amended Rule 1147 – NOx Reductions from Miscellaneous Sources.

PAR 1147 is scheduled for a Public Hearing before the AQMD Governing Board on May 6, 2011.

Rule 1147 – NOx Reductions from Miscellaneous Sources is designed to reduce NOx emissions from a wide variety of combustion sources including, but not limited to, ovens, dryers, furnaces, kilns and most importantly to auto body shops, the gas heaters. Non-resettable gas meters on paint spray booths deadline has been extended to December 2011, for installation.

Rule 1147 was adopted by the AQMD Governing Board on December 5, 2008 and established nitrogen oxide (NOx) emission limits for new and existing combustion equipment that are not regulated by other AQMD NOx rules.

Rule 1147 achieves emission reductions of 50 to 75 percent from ovens, dryers and furnaces by meeting lower NOx emission limits of 30 to 60 ppm (at 3% oxygen).

Compliance dates for emission limits are based on the date of equipment manufacture and emission limits are applicable to older equipment first.

Owners of equipment are provided at least 15 years before they must modify or replace existing equipment to meet the new emission limits. A time table may be changed after the Rule 1147 workshop on these dates.

Rule 1147 also established test methods and provides alternate compliance options including a process for certification of equipment NOx emissions through an approved testing program. Other requirements include equipment maintenance, fuel and time meters and recordkeeping.

Proposed amendments and objectives to the rule caused the AQMD staff to recommend delaying of the NOx emission limit compliance dates for existing (in-use) permitted equipment.

The proposed rule also limits the requirement for gas fuel meters to equipment that comply with the NOx emission level using pounds per million Btu. Staff is also proposing to eliminate the requirement for time meters if the gas line is fed directly to the paint booth and has no other operating equipment on it.

PAR 1147 will result in delayed emissions reductions from equipment subject to this rule. PAR 1147 is expected to result in a maximum of 1.4 tons per day of NOx emission forgone in 2011. However, PAR 1147 would achieve the same reductions as the existing rule by 2014.

Pursuant to the California Environmental Quality Act (CEQA) and SCAQMD’s Certified Regulatory Program (Rule 110), the SCAQMD is preparing a Notice of Preparation/Initial Study (NOP/IS) for the proposed amendments to Rule 1147.

The NOP/IS serves two purposes: 1) to solicit information on the scope of the environmental analysis for the proposed project, and 2) to notify the public that the SCAQMD will prepare a Draft Environmental Assessment (EA) to further assess potential environmental impacts that may result from implementing the proposed project.

The proposed project may have statewide, regional or area-wide significance; therefore, a CEQA scoping meeting is required (pursuant to Public Resources Code §21083.9(a)(2)).

The public workshop will serve as a CEQA scoping meeting for the proposed actions.

Comments received at the public workshop/CEQA scoping meeting on the environmental analysis will be considered when preparing the EA. When released, the NOP/IS will be available for public comment and review for 30 days.

A sidebar coalition that has been developed comprising representatives See AQMD, Page 35

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CA Insurance Commissioner Wants Insurance Companies to Invest in Communities

California Insurance Commissioner Dave Jones is offering insurance companies $4.67 million in tax credits to invest in underserved communities.

In a letter to company CEOs, Jones pushed for insurers to place a portion of the $4 trillion in investments they hold into the California Organized Investment Network (COIN), administered by the California Department of Insurance (CDI).

Each year, the DOI allocates $2 million in tax credits to support $10 million in community development investments. Because this program has been underutilized in recent years, CDI’s COIN currently has $4.67 mil-

lion in tax credits available to support $23.7 million in community development investments. Insurers have until July 1, 2011 to place investments in the program. After that date, the program is open to other investors as well.

Under the program, investors place a minimum of $50,000 on deposit with a Community Development Financial Institution (CDFI) for 60 months at zero percent interest. In exchange, the investor receives a 20 percent state tax credit, with an approximately 4.5 percent annual percentage rate of return.

The CDFIs then provide loans to small businesses and non-profits that

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serve economically disadvantaged communities. CDFIs help bridge the growing gap between the loans and services available to the economic mainstream and those offered to lowincome people and communities.

They provide access to credit in economically disadvantaged communities by providing development services or technical assistance along with the loans and investments they make.

These CDFIs include community development loan funds, credit unions, banks, microenterprise funds, corporation-based lenders and venture funds.

“This is a critical program that benefits some of California’s most

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underserved communities, and so I want to encourage insurance companies to give back by investing in these communities,” Commissioner Jones said.

“The state tax credit to encourage these investments has been underutilized in recent years, and it is long overdue that we get this program back on track. I call on all California insurers to examine their investment portfolios and invest in this program before June 30.”

There are 81 CDFIs certified by COIN and eligible to participate in the tax-credit program.

Through the CDFI Tax Credit Program these CDFIs have invested more than $100 million into some of California’s most underserved communities from 1997 through 2009. In the recent past, CDFIs across the state have made notable investments, including: • A mortgage loan for a nonprofit residential alcohol treatment facility; • Micro-loans of $500 to $5,000 to self-employed business owners; • Loans for six childcare centers to serve 500 low-income children; • Pre-development loans to Habitat for Humanity to construct affordable homes; • A loan to a church to build a child care center for lower income residents; • A loan for 953 water hook-ups in two small, rural communities; and • A short-term loan to close escrow on housing for low-income foster youth.

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The Nevada Division of Insurance has created a series of consumer guides to help make choosing homeowners, auto, etc. insurance easier, according to Insurance Journal. The DOI also has published a “Frequently Asked Questions” list on the use of credit information in insurance premium determination.

Commissioner of Insurance Brett J. Barratt said it’s important for Nevadans to maintain an adequate amount of insurance coverage.

The Auto Insurance Guide describes common auto insurance coverages and includes 30 Nevada-licensed private passenger automobile insurers for each hypothetical example.

Download the guides from http://doi.nv.gov/consumer.aspx.

www.autobodynews.com | MARCH 2011 AUTOBODY NEWS 23

Feds to Decide on Vehicle Grades by July 2011

The Environmental Protection Agency plans to decide by the end of July whether to require vehicle emissions grades on all new vehicles, according to reports madeby the Detroit News Washington Bureau.

Margo Oge, the director of the EPA’s Office of Transportation and Air Quality, said the agency was sympathetic to concerns raised about the proposed “A” through “D” grades that the EPA and the Transportation Department may require on all new vehicles.

“We want to make sure we give the auto industry plenty of lead time, no matter what the decision is,” Oge told The Detroit News after a forum in Washington.

The timetable suggests that the new labels won’t appear on new vehicles until the 2013 model year, which would begin in the fall 2012. Oge declined to confirm when the new labels would appear on vehicles.

The labels — first proposed in August as one of two possible revisions — would give 40 percent of the vehicles on the roads C’s and D’s.

Automakers oppose the grading system and back a more modest redesign that’s also under consideration.

The final decision is up to EPA administrator Lisa Jackson and Transportation Secretary Ray LaHood, Oge said.

Environmentalists back the grades and say they will prod more people into buying more fuel efficient models. They compare them to grades for restaurant cleanliness in changing behavior.

In December, more than 50 members of Congress sent a letter urging the EPA and Department of Transportation to stick with fuel efficiency labels that highlight miles-per-gallon on stickers.

Rep. Steven LaTourette, ROhio, called the grades “some loopy new green curve they’ve devised where cars are graded from A+ to D based on fuel economy and greenhouse gas levels.”

“Those who live in planet reality might need a minivan or SUV to haul around four kids in child and booster seats, and have room for luggage and

a family dog. Thanks to the EPA, they’ll be lucky to find a vehicle that gets a C.” Rep. Dale Kildee, D-Flint, said the grades would “tip the scales unfairly against many fuel efficient SUVs and trucks, relegating them to a C or C+ grade.”

Separately, Oge noted that as EPA works with the National Highway Traffic Safety Administration on 2017-2025 fuel economy and emissions requirements, she said the government hasn’t made any decisions. It has said it’s reviewing a range of requirements — from setting a fleetwide average of 47 to 62 mpg by 2025.

“There are environmental groups on one side calling for 62 mpg, and the last time I checked, they hadn’t done any work to show why that’s the case,” Oge said.

Gloria Bergquist, spokeswoman for The Alliance of Automakers, the trade association representing Detroit’s Big Three, Toyota Motor Corp. and eight others, said: “We all want to put the most fuel-efficient vehicles as possible on the road, but for the 2017-

2025 rulemaking, policymakers still need to gather and analyze much data to determine the maximum feasible fuel economy standards that avoid negative impacts on affordability, safety, jobs and vehicle utility. No one knows what the 2025 target should be yet, and the data needs to drive the rulemaking.”

$7,500 EV Credit May Change

You might have heard it during the State of the Union address January 25, but President Barack Obama's wanting 1 million electric vehicles on the road by 2015 is more than just a talking point.

January 26 the White House released a plan to achieve this goal, and at the top of the list is a giant incentive for prospective EV buyers. The Obama administration wants to turn the current $7,500 EV tax credit into a straight-up $7,500 rebate you get at the point of purchase. That would drastically alter the confusion around how the current tax credit is applied.

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Chief Advises on High-Strength Steel in OEMs In their quest to make passenger vehicles even safer and more fuel-efficient, manufacturers continue to incorporate increasing amounts of advanced steel in new car and truck designs. And while the use of high-strength steel (HSS) makes the vehicles lighter and stronger, it can also make repairing them more complex.

Many modern vehicles, regardless of sticker price, are built with more than 50 percent advanced steel.

The Ford Fusion hybrid, for example, contains 55 percent HSS, and the Ford Fiesta uses more than 60 percent HSS. After a collision, most advanced steel can’t be repaired by traditional pulling or heating methods. The most efficient way to reverse the vehicle damage is through multiple, simultaneous pulls using equalized pressure. This technique applies the same amount of pressure across multiple points of the damaged area at the exact same time, to prevent ripping, tearing, bending or rolling the steel.

“In many cases, the advanced steel components of a vehicle are

strong enough and peripheral to the primary impact zone that they remain undamaged in a collision — the weaker steel around them absorbs the majority of damage,” explains Mike

The most efficient way to reverse collision damage in vehicles made with advanced steel is through multiple, simultaneous pulls using equalized pressure as provided by pulling systems like the Chief Titan-360

Cranfill, vice president of collision for Chief Automotive Technologies. “By using multiple, simultaneous pulls with equalized pressure, the center section of the vehicle can be squared.

Then the mild steel damage can be corrected or sectioned as defined by

OEM repair procedures. In contrast, pulling just a single area at a time, or pulling multiple areas without equalized pressure can actually put more damage into the vehicle.”

Chief offers a range of pulling systems that can be used for multiple, simultaneous pulling with equalized pressure, including its Impulse™E/VHT, Goliath™ and Titan™-360.

Each of these products features an electric-over-hydraulic system to equalize pressure to all towers in use.

These Chief pulling systems also provide 10 tons of pulling power at the hook. Since advanced steels make it necessary for shops to use more pressure than ever before, this is an important differentiator. Other systems may use 10-ton rams, but by the time the pressure gets to the hook and the vehicle it’s attached to, the pressure could have dropped to as little as four tons.

The Chief Impulse-E/VHT, Goliath and Titan-360 pulling systems are compatible with Chief’s Vector, Velocity and VelocityMAX measuring systems, featuring Chief’s exclusive vehicle measurement data.

For more information about any of the pulling or measuring systems available from Chief Automotive Technologies, contact your local Chief distributor, call 877-644-1044 or visit www.chiefautomotive.com.

About Chief Automotive Technologies Chief Automotive Technologies, a Vehicle Service Group (VSG) brand, is one of the world’s largest manufacturers of high-quality collision repair products and services, including framepulling equipment, vehicle anchoring systems, computerized measuring systems, and vehicle frame specifications.

Chief is also a leading provider of comprehensive training on structural analysis, repair and collision theory.

VSG brings together several top brands of vehicle service and repair equipment, including Chief and Rotary Lift®. Based in Madison, Ind., VSG has operations worldwide. VSG is part of the Industrial Products segment of Dover Corporation (NYSE: DOV), a multi-billion dollar, global producer of innovative equipment, specialty systems and value-added services.

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Toyota Unintended Acceleration Probe Finds No Electronic Flaws Western Edition

CALIFORNIA • NEVADA • ARIZONA

March 2011

An intensive 10 month investigation into possible causes of unintended acceleration in Toyota cars found no fault with the automaker’s electronic throttle control systems, the Department of Transportation announced February 8, according to reports made

by CNN Money and the Los Angeles Times.

U.S. Transportation Secretary Ray LaHood said, “We enlisted the best and brightest engineers to study Toyota’s electronics systems, and the verdict is in. There is no electronicbased cause for unintended highspeed acceleration in Toyotas.”

NHTSA enlisted the help of NASA scientists and engineers. The agency said their expertise in areas such as computer controlled electronic systems, electromagnetic interference and software integrity would be a big help.

Despite a string of recalls for other problems Toyota has long insisted that the electronic controls in its cars are safe.

Toyota recalled nearly 8 million vehicles in 2008 and 2009 for defects related to gas pedals — including sticky pedals and floor mat obstruction — as a result of complaints of unwanted acceleration.

Some critics of the automaker, at the time. were not satisfied that those two problem were the only ones to blame for for the growing number of

reports that Toyotas were accelerating out of control and pointed to the electronic throttle control system as another possible culprit.

A common feature in newer vehicles, electronic throttle control uses sensors and computer chips to pass commands between the vehicles’ gas pedal and the engine to control a car’s speed instead of the simple mechanical connection used in older cars.

Congress ordered the DOT to investigate whether there might be a problem with those electronic controls. The study was launched last spring.

As part of the study, the agencies ran tests at a Chrysler Group LLC testing facility in Auburn Hills, Mich. headquarters in which researchers bombarded Toyota vehicles with electromagnetic radiation to see if they could cause any malfunctions that might lead to unintended acceleration.

Toyota Motor Co. has also provided NASA software engineers with “unrestricted access” to the computer code used to control the electronic throttle control systems. The software engineers have been combing through the code looking for anything that might cause a car to accelerate out of control under any circumstances, NHTSA said.

Also, scientists at NASA’s Goddard Space Flight Center and NHTSA East Liberty, Ohio, research center have been examining cars and Toyota throttle systems, searching for any defects that might cause unwanted acceleration.

This summer, NHTSA released the results of some investigations into Toyota sudden acceleration incidents.

Those investigations specifically looked into 58 alleged unintended acceleration cases. These investigations suggested that drivers themselves may have been partly at fault. At that time the agency stressed that the results were preliminary.

Although Toyota sales have suffered much of the automaker’s sales decline is due to an aging model lineup more than concerns over safety problems, analysts say.

Toyota now includes “brake override” on all its new vehicles. This system automatically cuts engine power as soon as the brake pedal is pressed in order to prevent unwanted acceleration.

Toyota is currently facing hundreds of lawsuits over alleged unintended acceleration, most of which have been grouped together in a single California court. Toyota Motor Corp. will also use the results of the

study as evidence that a sudden acceleration class action suit against it should be dismissed.

In a filing in federal court in Santa Ana this month, the automaker argued that the study is proof that its vehicles have no defects and the lawsuits are therefore without merit.

“Plaintiffs are chasing a phantom theory of defect that only last week NASA and NHTSA, after an extensive investigation, jointly confirmed does not exist,” Toyota outside counsel Lisa Gilford wrote in a motion filed on Feb. 14.

She asked judge James Selna to dismiss the suit, which consolidates scores of claims from Toyota and Lexus owners alleging that the presence of defects in their vehicles negatively affected the value of their vehicles.

Even if the NASA and NHTSA findings hold up in court, plaintiff attorneys argue that Toyota still could be on the hook for the lack of a brake override feature in its vehicles, which is designed to prevent sudden acceleration in cars with electronic throttle.

That technology has been employed by other automakers, including Nissan and Volkswagen, for years, but Toyota did not begin adopting it until last year.

A hearing to review the dismissal motion is scheduled for April 29, court filings show.

The U.S. House voted overwhelmingly to bar the Environmental Protection Agency from moving ahead with allowing a higher blend of ethanol in the nation’s gas tanks, according to reports made by the Detroit News Washington Bureau.

February 19 the House voted 286-135 to block the EPA from spending any money to carry out a waiver to allow E15 to be sold at the nation’s

fueling stations. Currently, most gas stations sell E10 — which is 10 percent ethanol. The EPA has granted a waiver to allow a blend of 15 percent of ethanol to be sold for vehicles from the 2001 model year and newer.

Rep. John Sullivan, R-Oklahoma, introduced an amendment to the bill to fund government operations through Sept. 30, to block EPA from moving ahead.

“The EPA has completely ignored calls from lawmakers, industry, environmental and consumer groups to address important safety issues raised by the 50 percent increase in the ethanol mandate issued over the past year. Putting E15 into our general fuel supply could adversely impact up to 60 percent of cars on the road today leading to consumer confusion at the pump and possible engine failure in

the cars they drive,” Sullivan said.

Automakers have expressed concerns about using a higher percentage of the ethanol blend that could corrode engines.

Before E15 can be sold, the EPA must finalize a labeling rule to warn consumers that the higher blend is only for certain vehicles.

All major automakers filed suit in December in the U.S.

House Votes to Block E15 from Pumps Due to Potential Engine Failure

26 MARCH 2011 AUTOBODY NEWS | www.autobodynews.com

Chrysler Group’s Mopar Division to Expand Accessories Portfolio in 2011 Vehicle buyers are spending more and more to personalize and accessorize their rides. Consumer spending for Mopar accessories on Chrysler, Dodge, Jeep and Ram vehicles nearly doubled in 2010.

“More of our customers are driving out of our dealerships with Mopar accessories on their vehicle,” said Pietro Gorlier, President and CEO of Mopar, Chrysler Group’s service, parts and customer-care brand.

Mopar currently offers more than 8,000 proven, quality-tested accessories. Following is a list of Mopar’s top-10 selling accessories in 2010: 1. Wheel Lock Kit: Wheel locks are available for most models and have an exclusive key code for maximum protection. Available in one- and twopiece styles, kits include four or five chrome-plated locking nuts, and one exclusive Mopar key. The kit protects against wheel and tire theft without affecting wheel balance.

2. Roadside Safety Kit: Safety kit includes flashlight, fleece blanket, six-gauge jumper cables, safety triangle, screwdrivers, pliers, two bungee

4. Mopar Electronic Vehicle Tracking System (EVTS): lMopar’s industry-first Electronic Vehicle Tracking System (EVTS) works 24/7 with nationwide coverage to keep track of your vehicle.

This GPS-enabled real-time tracking system includes a $1,000 Theft Protection Warranty and is transferable. Optional upgrade plans provide Emergency Service Dispatch and an OnCall™on-board panic button. Features such as setting speed and distance parameters with text alerts, unlimited online tracking, and full concierge service are also offered.

5. Premium Carpet Floor Mats: Thick, durable and colormatched for a strong, inMopar Electronic Vehicle Tracking System (EVTS) works 24/7 tegrated appearance. with nationwide coverage to track your vehicle Front mats feature a rublate a fuel-efficient route, integrated ber-nibbed backing to keep them hands-free Bluetooth® wireless techfirmly in place and are custom-connology with a built-in microphone and toured for an exact fit. speaker, integrated FM traffic re6. Slush Mats: Custom-fit mats feaceiver, and free lifetime traffic upture deep grooves that help prevent dates. water, snow, and mud from ruining cords and gloves.

3. Mopar Portable Navigation System: This Garmin nuvi® 1490T premium system packs a ton of features into a slim design with a 5-inch screen. The system includes lane-assist with junction view, pre-loaded maps, pedestrian navigation options, traffic alerts, ecoRoute™ that calcu-

vehicle’s carpet. Mats are available for front and rear compartments depending on vehicle model.

7. Molded Splash Guards: Mopar splash guards offer long-lasting durability. They are custom-contoured for a stylish flare and deflect gravel, salt and other road debris away from the vehicle.

8. Mopar Bedliners: Skid Resistor bedliner’s ribbed construction helps keep cargo from shifting and promotes drainage from bed. Mopar liners are molded of a high-density polyethylene blend for added durability. Tailgate cover also included. Also available for Ram 1500 RamBox. 9. Chromed Tubular Side Steps: Mopar’s heavy-duty premium steps are built to last and are available in chrome or black depending on vehicle.

Side steps feature slip-resistant step pads for easy vehicle entry and exit.

10. Hitch Receivers and Towing Accessories: In addition to hitch receivers for a range of vehicles, Mopar also offers hitch balls, receiver plugs, and ball-mount adaptors.

Visit www.mopar.com.

www.autobodynews.com | MARCH 2011 AUTOBODY NEWS 27

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Shop Showcase

Erica Schroeder is a writer and editorial assistant for Autobody News in Oceanside, CA. She can be reached at eschroeder@autobodynews.com.

with Erica Schroeder

John Eagle Collision Center in Dallas, TX, Focuses on Luxury Brands John Eagle Collision Center in Dallas, TX, was opened in 1962 by current owner John Eagle’s father. The Eagle family of industry services has

The front of John Eagle Collision Center

grown immensely since the original collision center opened, there are currently several dealerships and another body shop in Texas bearing the same name.

The massive bays area

also do some high-end training,” said Cunningham, “This year some of us are going to carbon-fiber training in England; we usually go once a year for luxury training.”

John Eagle Collision Center is a manufacturer certified repair facility for Aston Martin, Bentley and Jaguar, among other luxury brands — as well as economy brands like Honda and Toyota.

Being a certified repair center allows John Eagle to uphold factory standards and have access to factory structural parts.

John Eagle Collision Center is a very large facility, totalling over 72,000 square-feet and containing 42 employees, 52 bays and 10 Garmat spray booths.

The business also grosses $7.2 million per year, some of their business can be attributed to the network of John Eagle dealerships locally that refer customers to the body shop and the 9 insurers they are a Direct Repair Shop for.

John Eagle Collision Center’s second location, called John Eagle Body Shop, in Houston is a smaller facility that does not specialize in luxury car repair, but was opened in 1991 to assist the Dallas location with their high volume of customers.

John Eagle Collision Center in Dallas really focuses on repairing high-end, luxury brands to pre-accident conditions.

“Our high-end service is what makes us a little different,” said Body Shop Manager Brian Cunningham.

John Eagle’s technical staff not only has an average of 20 years of industry experience per technician, they also A technician works on alignment promote continuing education for all employees.

John Eagle Collision Center uses “We train through I-CAR and we a Global Jig frame machine for the

30 MARCH 2011 AUTOBODY NEWS | www.autobodynews.com

luxury vehicles they service, and has been spraying waterborne paint for over 5 years.

Body shop managers Trace Conn, Brian Cunningham and Boyce Willis

John Eagle also utilizes a ‘Quality Check’ procedure to ensure cars return to owners with everything repaired correctly. Cars undergo quality checks throughout the repair process and are also subject to a final quality inspection after all work is complete before being returned to their owners.

Onsite at John Eagle Collision is a Hertz rental car office, 24-hour security and Wi-Fi equipped waiting rooms.

Customers can also enjoy a lifetime warranty on all workmanship and refinish work done at John Eagle.

John Eagle offers email and text updates to customers through My Repair Tracker as soon as 24 hours after the vehicle is dropped off at the collision center.

For more information please visit www.johneaglecollision.com.

John Eagle Collision Center 6125 Peeler St Dallas, TX 75235 214-353-3570 John Eagle Body Shop 910 Highway 6 South Houston, TX 77079 281-589-2639

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www.autobodynews.com | MARCH 2011 AUTOBODY NEWS 31

Inside Insurance with The Insurance Insider

Not All “Referrals” are Created Equal I want to thank everyone who took the time to respond to my previous column on steering. I hope to address some of those comments and questions in future columns.

A related issue is understanding what a referral is. “Referral” carries many meanings—positive or negative —depending on who you are talking to.

Shops that participate in direct repair programs consider referrals to be as natural as the air we breathe. Simply stated, shops that are heavily-laden with direct repair work would die without the referrals, just as we would suffocate without air. With that dependence, they typically forget who their customer is, and how to market to consumers.

Shops that don’t rely on work from direct repair programs view referrals as taking food off their table.

They define a referral as a process in which the vehicle owner is potentially illegally steered to another body shop.

What’s ironic is that the insurance industry (health care providers in particular) uses the word referral as a means for a patient to gain prior approval to see a particular doctor. Why don’t we view that type of referral as illegal or unjust when it’s essentially the same thing? You are told which doctors you can see and if you want to go outside of the network it may cost you more money. Hmmmm, sounds like a direct repair program.

While there is a fine line between referring and steering, the latest direct repair programs to hit the industry can be viewed as referrals-on-steroids. It’s one thing to refer a customer to a particular shop. It’s quite another thing to completely remove the shop from its own business. Many insurance companies have immersed themselves into the collision repairer’s business like no other time in the industry’s history.

Why? The business of insurance has become extremely competitive and costly as evidenced by the ungodly sums of money spent to entertain us with the gecko, Flo and Mayhem. The bottom line is the button line: In a shrinking market, you better retain your existing customers and try to steal some of the competition’s policyholders.

All of that said, “If you want something done right, do it yourself.” Insurers believe that they can do a better job of servicing the customer’s needs than the

repairer. Having spent time on both sides of this fence, I believe there may be some truth to that. But one fact that can’t be argued is that there is a direct correlation between the vehicle owner’s experience with the body shop and their perception of the insurance company. This was probably a motivating factor for Allstate

buying Sterling. Allstate believed that if it could control the customer’s repair experience, they probably would see an increase in CSI and policyholder retention.

The Progressive (Concierge) and GEICO (RX) direct repair programs have taken things to a completely different level. In the Progressive model, unless customers ask, they may not have any interaction with the shop. The Concierge program virtually eliminates the shop from the entire process other than the actual repair work.

This is not a typical referral. This is more indicative of slave-master relationship. We, the insurer, will give you the cars we want to and you will do what we say. If you don’t agree, we will give the work to another body shop that appreciates the work.

While many of you may say that’s the case with all direct repair programs, I can assure you that this is different. If as a shop you don’t have the ability to build a relationship with the customer, you not only lose that person as a potential future customer, but also any residual benefit from their word-ofmouth advertising for your shop. I personally would not recommend any repair facility building their business on repairing vehicles through a Concierge-like program. Here today, gone tomorrow!

The GEICO RX program is a little more palatable. In this model, the customer actually drops his or her vehicle

32 MARCH 2011 AUTOBODY NEWS | www.autobodynews.com

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

off at the shop where there is a GEICO adjuster with a desk and office who handles the GEICO customer from drop-off to pick-up. Although the interaction with the shop is limited, the integrity of the shop and vehicle owner relationship is somewhat maintained.

The challenge with this model is how quickly a shop becomes beholden to GEICO. GEICO virtually doubles the shops revenue overnight. Larger-producing RX shops can expect to get eight or more referrals per day.

This quickly creates an imbalance for most shops where GEICO becomes greater than 50 percent of their business. As you can imagine, the shop has limited ability to negotiate with GEICO, and the master-slave relationship becomes a reality.

The shop is working for GEICO and not the vehicle owner.

What’s the answer? There isn’t

one. The fact is insurance companies are going to continue to trend in this direction for several reasons. First and foremost, insurers are a copycat industry. Second, to be competitive you need to be innovative and change in a shrinking market as evidenced by the activities of some of the industry’s largest carriers.

Repairers need to look at referrals as one means of growing their businesses. I’m not advocating for or against direct repair programs. The majority of the people reading this article rely on referrals for business. But if you are going to live by the sword, make sure you don’t die by it. Referrals can be healthy for a body shops business. If you want referrals, make sure that you never forget who your real customers are, how to market to your customers, and how not to lose yourself in the process.

More on direct repair programs in my next column.

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www.autobodynews.com | MARCH 2011 AUTOBODY NEWS 33

Industry Insight with John Yoswick

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

He can be contacted by email at jyoswick@SpiritOne.com.

New CIC Committee to Focus on Shop Data’s Capture, Use, Sale, and Reports Arizona shop owner Mike Quinn opened his first Collision Industry Conference (CIC) as chairman of the quarterly gathering, held in January in Palm Springs, CA, by asking outgoing I-CAR CEO John Edelen to introduce new I-CAR chair John Van Alstyne, who takes the helm of the training organization this month.

Quinn followed Van Alstyne’s brief remarks by praising Edelen’s efforts at transitioning I-CAR over the past three years. “If I’m able to engage the industry as much as John Edelen has engaged the indusMike Quinn try in the last several years, I’ll be successful as CIC chair,” Quinn said.

The first meeting of a new CIC chairman’s term is generally set aside as a “planning meeting,” one in which participants discuss the issues they’d like to see CIC address in the coming year or two, and form the committees to which those issues are assigned.

In Palm Springs, about 10 committees were approved to move ahead with their proposals of what they would work to accomplish in the coming year or two.

A “Data Privacy Committee,” for example, was formalized based on a taskforce that CIC created last year to address issues related to the use of shop estimate and other data. The issue has continued to grow in imScott Biggs portance as the information providers shift toward “cloud computing” systems, in which estimates and even shop management system data are stored on the vendor’s computers rather than the shop’s.

Tony Passwater, who chairs the new committee, said part of what it will do is identify how shop data is being “captured, used, distributed, sold or reported on.” The committee, he said, also would seek to recommend guidelines or standards to protect the rights of shops, insurers and

vehicle owners when this information is being captured or used in any way.

Currently, Passwater said, shops have little in the way of choice about such issues, basically having to subscribe to an estimating system service, for example, under the terms offered.

“If they do subscribe, they really don’t have any control of whether or not their data is used beyond their own internal use,” Passwater said. “I think the issue the collision repair industry

Outgoing I-CAR Chair John Edelen (l) and John Van Alstyne, the new I-CAR Chair

has is that there should be some rights for the individual subscriber that this data cannot be used outside of their own internal use.”

Scott Biggs of Assured Performance Network said he’d also like to see the committee address the issue of the shop’s access to its own historical data once they no longer subscribe to that particular vendor’s service, for example, or if they want to access their current data through another service or application.

its plate for 2011. It will be co-chaired

by Chris Northup, a former Keystone Automotive executive who continues to work in the non-OEM parts industry, and Chris Caris of PCG Campbell, a marketing and Tony Passwater communications firm whose clients include several automakers.

In a first for a CIC committee, the Parts Committee will also have an “executive board,” that will consist of a representative from various segments of the industry (repairers, insurers, automakers, alternative parts and paint/materials).

Several CIC participants offered ideas on issues the committee could address. Aaron Lofrano of F. Lofrano & Son Collision Centers in San Fran-

cisco, said he’d like the committee to address the issue of insurers asking shops to code parts in ways that don’t correctly identify them, as is required in some states.

Biggs said he’d like to see the committee develop some industry “ground rules” on when it is and isn’t appropriate to use certain types of parts. “Establishing some practical logic instead of just arbitrary rules that someone throws on you to use ‘X’ amount of this and ‘X’ amount of that,” Biggs said.

Rick Tuuri, who last year chaired the “Repairer-Insurer Relations Committee” said that group has already been asked for revisions to the “digital imaging best practices” document finalized just last year.

Ron Guilliams, who had chaired the CIC Definitions Committee, received a standing ovation at the See CIC Committees , Page 36

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Continued from Page 22

AQMD

from different associations including the California Autobody Association (CAA) was also present at the workshop. The coalition is hoping to communicate directly with members of the AQMD’s Board about their concerns with Rule 1147.

“Rule 1147 is just not going to work in its current form,” said Linda Holcomb, representing the CAA. “The NOx that the autobody industry emits is very minimal ... we feel we should be exempt from this rule,” said Holcomb.

Holcomb went on to say that only an estimated half of paint booth in the AQMD district have heaters, and maybe 10% of those are old paint booths from the ‘80s (which would need to be retrofitted to meet new guidelines). She also said that waterborne paint spraying systems have drastically cut down the amount of time body shops use their heaters for curing cars, so in essence the shops have greatly reduced their NOx emissions already.

“To me they’re really barking up the wrong tree,” said Holcomb.

Upon completion of the public review and comment period for the NOP/IS, responses to comments received relative to the NOP/IS will be prepared and incorporated into the Draft EA that will be subsequently prepared and circulated for a 45-day public review and comment period.

Comments and suggestions regarding the CEQA analysis for the proposed project should be directed to: Ms. Barbara Radlein - CEQA Section Planning, Rule Development & Area Sources SCAQMD 21865 Copley Drive Diamond Bar, CA 91765. Phone (909) 396-3324. Email: bradlein@aqmd.gov.

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ASRW Names New NACE-CARS Chairs Ron Nagy, president and owner of Nagy’s Collision Center, will serve as the event chairman for the International Autobody Congress & Exposition (NACE); and Mitch Schneider, owner and operator of Schneider’s Automotive, will return for a second term as the event chairman for the Congress of Automotive Repair & Service (CARS).

Each chairman is responsible for representing his segment of the industry and its respective show during Automotive Service & Repair Week (ASRW), which, is scheduled Oct. 6-8 (with an education conference beginning Wednesday, Oct. 5) at the Orange County Convention Center in Orlando, Fla. Nagy replaces Jerry Burns who has concluded a two-year term as NACE chairman from 2009-2010. His diligent service the past two years is sincerely appreciated by the ASA and ASRW staff.

school. He and his brother/business partner, Dan, purchased the shop from their father in 1995 and today Nagy’s Collision Centers celebrate 38 years of business in six locations throughout northeast Ohio. Recognized for excellence, Nagy’s Collision Centers were the recipients of the 2008 Wooster Small Business Award and the 2010 Fox 8 Best Body Shop Award.

Nagy, who serves as president over the I-CAR certified gold multi-location shop, holds an I-CAR platinum designation, is certified as a master ASE collision technician and holds the Accredited Automotive Manager (AAM) designation from the Automotive Management Institute (AMI). He has also served in various leadership positions within the Automotive Service Association (ASA), including local chapter president, state president-elect, chairman of the government affairs committee, crash parts subcommittee and government affairs committee; ASA affiliate director, secretary and current chairmen-elect to the national board of directors. Additionally, Nagy is also a member of the Certified Automotive Parts Association (CAPA) IT committee. Nagy has attended NACE since 1996.

About Ron Nagy, NACE 2011 Event Chairman: Nagy, an active member of the collision repair industry, is a second generation owner/technician whose industry experience began in 1982 when he went to work in his father’s shop after high

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Diamond Standard Says All its Rear Step Bumpers Are Now NSF Certified

Diamond Standard has announced that it is the only “U.S. manufacturer to have all its alternative primed and plated front steel bumpers certified.

“Specifically, 571 Diamond Standard parts/applications have reached Certification status in the NSF program,” says Geoff Crane, Business Development Manager of Diamond Standard.

Additionally, all 280 Diamond Standard rear step bumper full assemblies are now Certified as meeting the Federal Standard of VESC V-5 towability by MGA Research Corporation of Burlington, Wisconsin, an independent, 17025 accredited test facility to the automotive industry. VESC V-5 functional performance testing is the only Federal requirement for step bumper assemblies. Diamond Standard’s Manufacturing Group also supplies USA made replacement steel/aluminum hoods and bumper top pads which are CAPA certified.

“I am proud to announce that CAPA certification of Diamond Stan-

dard bumpers is moving forward. Diamond Standard Brand is poised to accelerate the introduction of new model car parts across all categories beginning this month and we’ll be adding new part categories within the year,” said O’Neal.

“Dynamic and destructive comparative testing by industry experts proving equal functional performance is a demonstrated core competency of our Company and an assurance to the industry and vehicle owner that use of Certified Diamond Standard parts provide an acceptable alternative part without compromising safety and damageability.

Diamond Standard Structural parts are available through limited quality distributors nationwide including the AQRP program at Keystone, an LKQ company.

For more information visit www.diamondstandardparts.com or contact Geoff Crane at geoff@diamondstandardparts.com, or (901) 398-5759.

Continued from Page 34

CIC Committees

first meeting he has attended in more than a year. Guilliams, who was seriously ill and in a coma for a number of months in 2010, thanked CIC participants for the support he and his family received during his illness and recovery. “I’m really Ron Guilliams glad to be here,” Guilliams said, drawing laughter from CIC attendees. “I can guarantee you I wouldn’t be standing here today with the same outlook and view of life if it wasn’t for all the support from you in this room. I just want to thank you from the bottom of my heart.”

He said he would serve as vicechair of the Definitions Committee in 2011, and that the committee planned to review CIC’s long-established definition of a “Class A shop,” would work to define a “green shop,” and would review CIC’s glossary of in-

dustry terms. The committee also may develop some best practices or guidelines for the communication to customers from shops and insurers.

“Is it, for example, right for the shop to be the one who informs someone their vehicle is a total loss, or that damage is not related to this particular claim,” Guilliams said. “In many instances, those lines of responsibility have been blurred. So one of the things the committee has been asked to look at is to try to get consensus on both sides on what really is the best practice, so we can standardize that.”

Other existing CIC committees that will continue in 2011 will include “Education and Training,” “Governmental and Regulatory,” and “Human Resources.”

CIC’s ad-hoc Marketing Committee reported in Palm Springs that its surveys after CIC’s last two meetings found that 87 percent of those responding said the presentations at the meetings had “good” or “very good” value for their business. More than 91 percent said the quality of the meeting content and the networking opportunities at the meetings were good or very good.

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Houston Auto Body Association Hosts Legislative Breakfast for Texas Reps The Houston Auto Body Association (HABA) hosted a legislative breakfast event on February 16 at the Capitol Grill in the Texas State Captiol.

The event allowed attendees from the collision

Trey Perdue and his wife with David Walla of Walla & Co

HABA members got a chance to chat with their Texas representatives at the event

repair industry to meet and discuss issues with their state representatives.

The entire legislature was invited to the event that ran from 8:30am to 10:30am.

“On a side note, the Automotive Service Association (ASA) was there and making their rounds trying to gain support for HB 429 concerning the Franchise Tax law revision which would allow Independant Automotive and Collision shops to be taxed at the same rate as Dealer owned Automotive and Collision Shops which we support as well,” said Brown.

Breakfast was Chuck Greer of Parts Express talking to legislative staff included in the “The breakfast was a success event which was sponsored by HABA with around 200 in attendance, we and the Automotive Parts and Service also visited all 150 State Representa- Association. tives offices and all 31 State SenaFor more information please visit tors,” said HABA’s President James www.habaonline.org.

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HABA passed out individual letters to each representative that detailed HABA’s mission and code of ethics, along with gift bags containing www.autobodynews.com a coaster and acrylic car with HABA’s CHECK IT OUT! website and logo on them.

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ALL OEM Information

Tom McGee is National Account Manager for ALLDATA Collision. He has had a long career with I-CAR, including as President & CEO. Tom is an ASE certified Master Collision Repair/Refinish Technician. He has also run his own collision facility and been a career and technical school instructor. He can be reached at Tom.McGee@alldata.com. For other Tom McGee articles in Autobody News, go to: http://www.autobodynews.com/tom-mcgee/index.php

Using Manufacturer TSBs and Recalls in Collision Shops with Tom McGee

As I continue to visit collision repair facilities across the country, I see very few that are utilizing Technical Service Bulletins (TSBs) and recall notices in their business. These can be very important tools in the shop for a number of reasons. For example, vehicle manufacturers use technical service bulletins to update service information which can be beneficial when conducting repairs on a vehicle, post collision.

Collision repair facilities can use TSBs to diagnose problems on a vehicle that may not have been noticed by the vehicle owners prior to a collision.

Regardless of whether it was caused by the collision damage, the vehicle owner would expect for your facility to make the repair and by having the TSB in hand, the repair would be relatively simple, rather than trying to track it down.

Use TSBs to upsell additional work while the vehicle is in your business. ALLDATA organizes TSBs by “Customer Interest.” These are bulletins that have symptoms that the vehicle owner can see, feel, hear, touch, or smell. Examples are wind noise, water leaks, console doors that don’t operate properly, glove box doors that fall open, etc. Generally, these types of problems annoy the vehicle owner, but they are not going to make a special trip, and not have access to their vehicle, to take it back to the dealer for correction. The great part with TSBs is they generally tell the shop the symptom, cause, correction, required parts, and sometimes the labor time. This is a great way for a collision repair business to add some additional revenue to the repair.

Recall notices are another key tool in collision repair facilities nowadays that are not being used to their full extent. Recall notices inform the vehicle owner of potential problems with their vehicle and if the vehicle owner is not aware of an issue when the vehicle comes into your shop, these notices can be a great way to boost the business’ credibility. Many times, a vehicle owner is not aware of recall due to a change in ownership in the vehicle and recalls can then be another way to separate your shop from

the shop down the street that may not be using these to educate vehicle owners.

Below is an example of a problem that one of our customers encountered that was solved using a recall notice. The problem was not related to the collision, but was noticed once the collision repairs had been completed and the vehicle returned to the owner. http://collision.alldata.com/alldata/article/display.action?componentId=610 &iTypeId=100&vehicleId=42056&no nStandardId=783863&tocParent=true 2006 Pontiac G6 L4-2.4L VIN B Lighting and Horns

TSB Title: 08317 02/10/2009 Recall Brake Lamps Not Working Properly

# 08317: Product Safety - Brake Lamps Not Working Properly - (Feb 10, 2009) Subject: 08317 -- Brake Lamps Not Working Properly Models: 2005-2006 Pontiac G6

Condition General Motors has decided that a defect, which relates to motor vehicle safety, exists in certain 2005-2006 model year Pontiac G6 vehicles.

Some of these vehicles have a condition where the brake lamps may not operate properly because of fretting corrosion in a wiring connector. Fretting corrosion in the connector could

depressed, or the lamps may not illuminate when the brake pedal is depressed. In addition, the cruise

Involved are certain 2005-2006 model year Pontiac G6 vehicles built within these VIN breakpoints:

Important: Dealers are to confirm vehicle eligibility prior to beginning repairs by using the GM Vehicle Inquiry System (GMVIS). Not all vehicles within the above breakpoints may be involved.

control may not engage, or greater brake pedal force may be required to shift the vehicle out of PARK. Brake lamps that are not operating properly may not warn a driver in a following vehicle of the braking status and could lead to a crash without prior warning.

cause the brake lamps to illuminate when the brake pedal has not been

38 MARCH 2011 AUTOBODY NEWS | www.autobodynews.com

2. Locate the C2 connector on the BCM.

3. Unlatch the C2 connector and disconnect the C2 connector from the BCM.

Correction Dealers are to apply a dielectric lubricant to the connector to repair and prevent fretting corrosion.

Vehicles Involved For dealers with involved vehicles, a listing with involved vehicles containing the complete vehicle identification number, customer name, and address information has been prepared and will be provided through the GM GlobalConnect Recall Reports. Dealers will not have a report available if they have no involved vehicles currently assigned.

The listing may contain customer names and addresses obtained from Motor Vehicle Registration Records.

The use of such motor vehicle registration data for any purpose other than follow-up necessary to complete this recall is a violation of law in several states/provinces/countries. Accordingly, you are urged to limit the use of this report to the follow-up necessary to complete this recall.

Parts required to complete this recall are to be obtained from General Motors Service and Parts Operations (GMSPO). Please refer to your “involved vehicles listing” before ordering parts. Normal orders should be placed on a DRO = Daily Replenishment Order. In an emergency situation, parts should be ordered on a CSO = Customer Special Order.

* One unit of lubricant will service 25 vehicles.

1. Remove the right side front floor console side trim panel to access the body control module (BCM).

Parts Information Service Procedure

4. Apply dielectric lubricant on the BCM C2 pins (apply with a oneinch (25 mm) nylon bristle brush) on all the C2 connector pins. This will treat the pins against fretting corrosion.

5. Reconnect the C2 connector back on the BCM and re-latch.

6. Reinstall the right side front floor console side trim panel.

Customer Reimbursement - For US

All customer requests for reimbursement of previously paid repairs for the recall condition will be handled by the Customer Assistance Center, not by dealers.

Important: (For GM US Only) Refer to the GM Service Policies and Procedures Manual, section 6.1.12, for specific procedures regarding customer reimbursement and the form.

See TSBs and Recalls, Page 40

Allstate Astrology Release a “Joke”

Allstate Corp. retracted a press release this month that was meant to be a joke, displaying the accident rates of drivers according to their zodiac signs.

“We recently issued a press release on zodiac signs and accident rates, which led to some confusion around whether astrological signs are part of the underwriting process,” said the insurer, in its retraction. “Astrological signs have absolutely no role in how we base coverage and set rates.”

Allstate (ALL, Fortune 500) also said, “We deeply apologize for any confusion this may have caused.”

The insurance company’s original press release claimed that Scorpios, who have a “perfectionist nature,” were the safest drivers in 2010, because they were involved in only 26,833 accidents. Virgos on the other hand, which Allstate characterized as “worried and shy,” were involved with 211,650 accidents, making them the worst offenders, according to the company.

“Over the past year, Virgos were nearly 700% more likely to be in a car accident when compared to the determined and aware Scorpio,” said the original press release, which de-

scribed Scorpios as having “overly cautious and timid driving habits.”

The press release was apparently inspired by recent revisions to the zodiac calendar, which changed the range of birth dates for the different signs. Allstate declared Opiuchus, the new sign added for people born Nov. 29 to Dec. 17, to be the second-safest group of drivers.

The data that Allstate used was real, based on the birthdays of customers actually involved in accidents.

But the company’s conclusion was tongue in cheek.

Unfortunately, enough people took the press release seriously to create a public relations mess for Allstate. Company spokeswoman Laura Strykowski said the press release was yanked from the company site and she refused to provide a copy of the offending release to CNNMoney. But the document was available via the Nexis database.

“Rating by astrology would not be actuarially sound,” said Allstate, in its retraction.

“Rating by astrology would not be actuarially sound. We realize that our hard-working customers view their insurance expense very seriously. So do we.”

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NICB Issues 2010 Suspicious Claims Report The National Insurance Crime Bureau (NICB) just released its 2010 questionable claims (QC) referral reason analysis in which it cites auto glass fraud and inflated towing/storage bills as the top two reasons for claims to raise a possible red flag in vehicle claims.

The NICB Vehicle QC analysis reports that glass fraud rose 450 percent and inflated towing/storage bills rose 116 percent over their 2009 numbers.

Questionable claims are those claims that NICB member insurance companies refer to NICB for closer review and investigation based on one or more indicators of possible fraud.

A single claim may contain up to seven referral reasons. The analysis is based only on these “questionable” claims referred to NICB from its member insurance companies, not on actual fraud found.

Questionable claims categorized as Auto Repair/Body Shop ranked number three by percentage rise since 2009. NICB says 1,939 QC were submitted in this category compared to 1,480 in 2009, a 31 percent rise.

Overall, Vehicle Referral Reasons increased 4 percent from 2009 to 2010. However, the NICB points out in its full report that all of the top three

reasons in 2010 (Auto Glass Fraud, Inflated Tow Bill/Storage, Auto Repair/Body Shop) are body shop related and comprise 14 percent of the total referral reasons for the Vehicle insurance category.

In 2009, a total of 84,407 QCs were referred to the NICB in all insurance categories, an increase of 8.7 percent.

AK Leg to Ban Cell Phone Usage in School, Work Zones

The Arkansas Legislature has given final approval to a ban on drivers using hand-held cell phones in school and work zones, according to reports made by Insurance Journal.

The House has approved the legislation on a 52-41 vote. The proposal would exempt the use of hands-free phones and GPS devices.

A violation would be a secondary offense, meaning drivers could only be cited if they were first pulled over for a primary offense. It would apply to school zones during school hours when children are present, and highway work zones when a highway worker is present.

The law would take effect Oct. 1 is signed by the governor.

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Continued from Page 38

TSBs and Recalls

Customer Canada

Reimbursement

-

For

Customer requests for reimbursement of previously paid repairs for the recall condition are to be submitted to the dealer by February 28, 2010.

All reasonable customer paid receipts should be considered for reimbursement. The amount to be reimbursed will be limited to the amount the repair would have cost if completed by an authorized General Motors dealer.

When a customer requests reimbursement, they must provide the following: ^ Proof of ownership at time of repair. ^ Original paid receipt confirming the

Refer to the GM Service Policies and Procedures Manual, section 6.1.12, for specific procedures regarding customer reimbursement verification.

Courtesy Transportation The General Motors Courtesy Transportation program is intended to minimize customer inconvenience when a vehicle requires a repair that is covered by the New Vehicle Limited Warranties. The availability of courtesy transportation to customers whose vehicles are within the warranty coverage period and involved in a product program is very important in maintaining customer satisfaction. Dealers are to ensure that these customers understand that shuttle service or some other form of courtesy transportation is available and will be provided at no charge. Dealers should refer to the General Motors Service Policies and Procedures Manual for Courtesy Transportation guidelines.

The US National Traffic and Motor Vehicle Safety Act provides that each vehicle that is subject to a recall of this type must be adequately repaired within a reasonable time after the customer has tendered it for repair.

A failure to repair within sixty days after tender of a vehicle is prima facie evidence of failure to repair within a reasonable time. If the condition is not adequately repaired within a reasonable time, the customer may be entitled to an identical or reasonably equivalent vehicle at no charge or to a refund of the purchase price less a reasonable allowance for depreciation.

To avoid having to provide these burdensome remedies, every effort must be made to promptly schedule an appointment with each customer and to repair their vehicle as soon as possible. In the recall notification letters, customers are told how to contact the US National Highway Traffic Safety Administration if the recall is not

Submit a Product Recall Claim with the information indicated below:

Repair Performed

Apply Dielectric Lubricant to C2 Connector

Courtesy Transportation for vehicles within the New Vehicle Limited Warranties (US & Canadian GM Dealers) Customer Reimbursement (Canadian Dealers/US CAC)

Part Count

Part No.

Parts Allow N/A

N/A

N/A

N/A

N/A

0

N/A

MA-96

Labor Op

V2044

Labor Hours

Net Item

N/A

MA-96

**

N/A

***

N/A

MA-96

V2045

0.2

****

CC-FC

0.2

*

* The amount identified in the “Net Item” column should represent the actual sum total of the current GMSPO Dealer net price for the dielectric lubricant needed to perform the required repairs, not to exceed $0.33 USD, $0.40 CAD, plus applicable Mark-Up.

** Submit courtesy transportation using normal labor operations for courtesy transportation as indicated in the GM Service Policies and Procedures Manual for vehicles within the New Vehicle Limited Warranties. *** The amount identified in the “Net Item” column should represent the actual dollar amount for courtesy transportation.

**** The amount identified in the “Net Item” column should represent the dollar amount reimbursed to the customer.

Refer to the General Motors WINS Claims Processing Manual for details on Product Recall Claim Submission.

amount of repair expense(s) that were not reimbursed, a description of the repair, and the person or entity preforming the repair.

Claims for customer reimbursement on previously paid repairs are to be submitted as required by WINS. Important:

Continued from Page 13

JD Power

clear to them.”

For the first time since its inception in 2000, J.D. Power's study examined differences in satisfaction between auto

Claim Information

completed within a reasonable time.

Customer Notification General Motors will notify customers of this recall on their vehicle (see copy of customer letter in this bulletin).

Dealer Recall Responsibility For US (US States, Territories, and Possessions)

All unsold new vehicles in dealers' possession and subject to this recall must be held and inspected/repaired per the service procedure of this recall bulletin before

manufacturer website users who entered through the home page and those whose point of entry was a model-level page.

The firm discovered that, overall, website users who accessed a website through a model page are significantly more satisfied with their experience than those who entered through the home page.

Walker also insisted websites that achieve the highest levels of overall satisfaction and usability perform consistently well among both sets of shoppers.

In contrast, for some of the lowestperforming websites, J.D. Power noticed significant gaps in satisfaction between users who entered the site through the home page and those who

40 MARCH 2011 AUTOBODY NEWS | www.autobodynews.com

Dealer Recall Responsibility - All

customers take possession of these vehicles.

Dealers are to service all vehicles subject to this recall at no charge to customers, regardless of mileage, age of vehicle, or ownership, from this time forward.

Customers who have recently purchased vehicles sold from your vehicle inventory, and for which there is no customer information indicated on the dealer listing, are to be contacted by the dealer. Arrangements are to be made to make the required correction according to the instructions contained in this bulletin. A copy of the customer letter is shown in this bulletin for your use in contacting customers. Recall follow-up cards should not be used for this purpose, since the customer may not as yet have received the notification letter.

In summary, whenever a vehicle subject to this recall enters your vehicle inventory, or is in your dealership for service in the future, you must take the steps necessary to be sure the recall correction has been made before selling or releasing the vehicle. © 2011 ALLDATA, LLC. All Rights Reserved. Terms of Use (Version 2.0.10164) For more information on OE repair information, please visit: www.alldata.com/collision.

NOTE: This Repair/Service Procedure is excerpted from a recall notice published by the vehicle manufacturer, and is intended for use by trained, professional technicians with the knowledge, tools and equipment to do the job properly and safely. It is recommended that this procedure not be performed by “do-it-yourselfers.”

Search:

Autobody News on Facebook gained entry through a model page.

J.D. Power reiterated that its 2011 Manufacturer Website Evaluation Study — Wave 1 is based on evaluations from more than 10,200 new-vehicle shoppers who indicate they will be in the market for a new vehicle within the next 24 months. The study was fielded in November of last year.

General Motors January 2011 Sales Rise 23 Percent General Motors dealers in the United States reported 178,896 total sales in January, a 23-percent increase from a year ago for the company’s four brands. The gain was driven by solid retail sales which were 36 percent higher than a strong January a year ago.

For the month, overall GM fleet sales were down 7 percent with sales to rental fleets declining 11 percent, while sales to commercial customers

rose 7 percent. Retail sales of GM’s cars, trucks and crossovers all rose 34 percent or more during the month, up 39 percent, 34 percent and 35 percent, respectively.

“January was a good month and signaled a solid start to the new year for each of our divisions,” said Don Johnson, vice president, U.S. Sales Operations.

“Our results were driven by gains across the board in all segments, with

our newest models leading the way,” Johnson said.

Combined sales for GM’s newest vehicles – Chevrolet Equinox, Silverado HD, Cruze and Volt; Buick LaCrosse and Regal; GMC Sierra HD and Terrain; and Cadillac SRX, CTS Wagon and CTS Coupe – increased 31 percent, while retail sales surged 61 percent for the month.

Month-end dealer inventory in the United States stood at about

510,000 units, which is about 1,000 lower compared to December and about 124,000 higher than January 2010.

For more information please visit www.gm.com.

www.autobodynews.com

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4811 Madison Ave. Sacramento, CA 95841

Hours: Mon-Fri 7:30 AM - 5:30 PM parts@performancechevy.com

www.performancechevy.com

Serving Contra Costa, Alameda, San Joaquin Counties.

An Authorized Saturn Wholesaler.

www.gmgoodwrench.com ©2010 GM Corp. All rights reserved

Wholesale Direct: 925-828-8251 Fax: 925-829-2941 Hours: Mon. - Fri. 7am - 6pm Sat. 8am - 4:30pm 4200 John Monego Ct., Dublin, CA 94568 Chevrolet•Cadillac•GMC•Buick•Pontiac Oldsmobile•Saab•Saturn•Hummer

www.autobodynews.com | MARCH 2011 AUTOBODY NEWS 41

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

He can be contacted by email at jyoswick@SpiritOne.com.

Industry Insight with John Yoswick

Ten Things to Consider When Designing a New Shop, Remodel, or Expansion hicle under cover or out of the eleAnyone who has worked in a shop for even just a matter of months can prob- ments? Is there adequate customer ably quickly list a half dozen or more parking close to the office? things that workwith reallyEd well in that Attanasio shop in terms of its physical design and layout—and a equal number of things they’d change about it if given the opportunity.

Whether building a new shop from the ground-up, or preparing to expand or remodel an existing facility, here are 10 things to consider when The office and customer areas mapping out your plans.

1. Think about the customer ex- often seem to be an afterthought in perience. As early in the process as many shops where production space is possible, consider the entire design considered paramount. But in addition and layout from the perspective of to staff office space, consider including a quiet area for customers to wait how a customer will interact with it.

Is the building situated on the site to with adequate furniture and amenities maximize visibility and “curb appeal” like a water cooler, television, customer-only restrooms, children’s play from the street? Is it clear where a customer enters the property and where area or work space for those wanting they are to park or leave their vehicle? use of a phone, computer or Internet access.

Can they drop-off or pick-up their ve-

Shop Showcase

2. Take noise into account. Some shop processes—like grinding—and some equipment—like air compressors—are particularly noisy. Try to situate these processes in a way that isolates the noise from the office and rest of the shop. A compressor room, for example, should be placed at the rear or the building or if possible in an external space. Noise-deadening material should be included in the walls surrounding these types of noisy equipment.

3. Get adequate lighting, air supply and electrical sources. Technicians rarely complain that a shop has too much light.

Consider the use of skylights and high-efficiency lighting that will reduce power consumption and in some cases (if replacing existing light sources) offer opportunity for tax credits that offset part of their cost (check with your utility or state energy

department).

Electrical and air supply drops at each stall allow for maximum technician efficiency—and far fewer trip hazards or potential damage to cords and hoses stretched across the shop floor.

In stalls where resistance spot welding will take place, 3-phase power is required.

For the office, dedicated electrical circuits for computer equipment will help protect computers and peripherals from spikes, sags and other power fluctuations. High-end surge protectors are still recommended, with

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FAX: 213-222-1272 Ask for Carlos or Erasmo

an uninterruptible power supply (UPS)—which serves as a short-term battery back-up, allowing for safe shutdown in the case of a power outage—for key computer servers.

Keep in mind, too, that communication cables for phones or linking computer networks can be subject to electrical interference, so such cables should not be run parallel with electrical wiring or near lighting fixtures.

Choose a compressor and air drying system adequate for your current air supply needs—plus a little more as growth or unexpected needs arise.

Discuss with suppliers how it should be set up to ensure that heavy use of air—by a paint booth, for example, doesn’t lead to inadequate air elsewhere in the system.

4. Get the bay size right. Although the natural inclination is to get as many working bays or stalls in a building as possible, those bays need to give technicians adequate space to safely and efficiently move themselves and tools, equipment and parts around the vehicle.

For bays with surface or aboveground lifts, a minimum bay size of 12 feet by 25 feet is generally sufficient, but for work on larger vehicles, a 13foot width is ideal. In-ground lifts can generally be accommodated in bays that are 11 feet or wider. If your market includes a lot of full-size pick-ups, you may want at least some larger bays, with a 14-foot width and 27-foot length.

Some equipment, like frame racks, generally require longer or wider bays, so get the specifications of the equipment you plan to install and choose locations for this equipment accordingly.

Allow 24 feet wide by 27 feet long for each paint booth.

5. Get the proportions right. One paint company shop layout consultant uses a 10-2-1 ratio: For every 10 body stalls, there should be two paint prep stalls and one booth.

6. Leave room for parts. Shop layout consultants recommend an area equal to about 10 percent of a 15,000square-foot collision repair center be dedicated for parts. (This percentage could drop for larger shops.)

7. Keep safety in mind. Employee and customer safety must be key considerations in planning any new or expanded facility. Access to the production area by customers should be carefully controlled, and areas where customers can walk be should be clearly delineated.

essary. Time spent moving one car just to get another out of a stall or to another part of the shop is wasted time.

While more overhead doors allow easier vehicle access in and out of the building, they also make it more difficult to maintain a comfortable working temperature in the shop during hot or cold weather. Where adequate aisle space within the building is available, fewer doors are needed.

A building width of at least 70 feet allows the shop to have 23-feetlong stalls on one side, 26-feet-long

Adequate ventilation for exhaust and solvent fumes is required.

Many fire extinguishers are rated to handle only two or three of the four types of fires that could occur. Shops should have extinguishers rated for Class A (wood and paper), Class B and C (flammable fluids and electrical) and Class D (special agents, combustible metals). Make sure there’s an extinguisher no more than 50 feet away from any point in the shop, that signage clearly indicates where they are, and that they are easily accessible (mounted between 36 and 60 inches off the floor).

Also plan for smoke and carbon monoxide detectors, and one or more eye-wash stations.

8. Consider parking needs.

When planning building size, consider how much external parking will be needed for customers, vehicle storage and vendors (for deliveries).

If inclement weather or concerns about theft or vandalism are issues at your location, some outdoor parking could be sacrificed in order to have more indoor space for vehicle storage. Or consider whether rooftop parking—or multi-level vehicle storage units—can help increase your capacity without expanding your property’s footprint.

9. Go with the flow. One of the keys to shop efficiency is minimizing the movement of vehicles that is nec-

stalls (to allow for larger equipment, for example) on the opposite side and still an adequate center aisle (21-feet wide) down the middle. A 25-foot wide aisle will even more easily accommodate the turning radius of larger vehicles.

10. Think green. A new shop or expansion offers a great opportunity to incorporate “green building practices” or equipment and systems that will help you tread easier on the environment—while saving money and providing a potential marketing opportunity.

Easy access to overhead door closure switches, for example, can help encourage technicians to reduce heat loss in cold weather. Tax incentives often are available that can help make installation of solar or other alternative energy sources competitive with traditional sources. Waste water collection systems can not only meet local ordinances but also include oilwater separators, or allow reuse of “grey water” for landscaping or other uses. Consider the energy-efficiency of the various brands and models of equipment you are purchasing.

Check the website of the nonprofit Coordinating Committee for Automotive Repair (www.ccar-greenlink.org) for more information on building and operating a “green” shop —and an opportunity for earning national recognition for doing so.

www.autobodynews.com | MARCH 2011 AUTOBODY NEWS 43

Shop Showcase

Erica Schroeder is a writer and editorial assistant for Autobody News in Oceanside, CA. She can be reached at eschroeder@autobodynews.com.

Sal’s Premium Auto Collision in Los Angeles, CA — A Lesson in Versatility with Erica Schroeder

Out-sourcing certain aspects of the job when it comes to collision repair has become a popular choice for many body shops.

Sal Hurtado felt that training each of them to be able to do every aspect of the job was better than hiring a technician who is only specialized in one area.

Industry Insight with John Yoswick

Shop Showcase with Ed Attanasio

Sal’s Premium Auto Collision on Crenshaw Blvd in Los Angeles

The cost of training and hiring individuals capable of doing all aspects of the job can seem daunting and costly to some collision repair shops.

The front desk area

This also cuts down on their cycletimes and increases internal profits.

“Usually we get them all trained through I-CAR or at Cerritos College,” said Hurtado.

Cerritos College is a local community college that offers courses on automotive collision and mechanical repair.

Sal’s is I-CAR gold certified and several of their employees are also DuPont certified paint technicians.

Sal opened the shop in 1999 with his wife, Elizabeth. The shop quickly grew to its current size at over 25,000 square feet and has grown revenues to about $700,000 annually.

“I used to work with my dad, he used to have a body shop. Then in 1999 I decided to go into business for myself,” said Hurtado.

Unfortunately this leaves out a lot of potential opportunities for long-term revenue as well.

Sal’s Premium Auto Collision in Los Angeles has found that training employees to be capable of doing every aspect of a collision repair job can not only be very profitable for the shop, but it also allows them to oversee every aspect of the job to make sure the car is repaired to their standards in a timely fashion.

Sal’s has 7 employees and owner Co-owner and Estimator Elizabeth Hurtado (l) starts an estimate

44 MARCH 2011 AUTOBODY NEWS | www.autobodynews.com

Sal’s does everything from cosmetic collision repair, frame work, mechanical work, airbag work, AC condenser repair and replacement, wheel alignment, factory and custom painting (including rims), upholstery work on leather, vinyl and cloth, glass repair and replacement, 24-hour towing and on site rental cars.

“We do a lot of auto collision repair and custom paint work,” said Sal, “We do candies, pearls, graphics— we can really do anything.”

Sal’s also has a wide array of equipment to provide their of services.

Two Chief S21 frame machines and a Velocity by Chief straightening machine in the Bay area. The DuPont colornet mix system in their downdraft spray booth’s enclosed mixing and prep room help techinicans to serve as many customers as possible using their eight complete workstations.

Hurtado’s motto is, “At Sal’s you don’t have to pay extra for high quality. You get high quality for the same price.”

Inside the bays area

For more information please visit www.salspremiumautocollision.com.

Sal’s Premium Auto Collision 4242 South Crenshaw Blvd Los Angeles, CA 90008 323-299-4242

THESE DEALERS ARE GENUINE WHOLESALE PARTS SPECIALISTS. C ALIFORNIA

Elk Grove Toyota ELK GROVE

916-405-4700 800-952-5307

916-405-8045 Fax

Mon. - Fri. 7am - 7pm; Sat. 8am - 5pm www.elkgrovetoyota.com

Continued from Page 20

Class Actions

able, but the appellate court doesn’t have to accept that. Sometimes they don’t and send it back down to the trial court and tell the appealing party to wait until the entire case is over. So in order to make those two claims immediately appealable, we agreed with Progressive that we would “voluntarily dismiss the remaining claims without prejudice” which means we can refile them later, depending on the outcome of the appeal.

The four claims that were dis-

About the Avery vs. State Farm Case Avery was a nationwide class action against State Farm challenging the company’s practice of not using OEM parts to repair vehicles. The plaintiffs claimed that using aftermarket parts breached State Farm’s promise to restore vehicles to their preloss condition. The Illinois Supreme Court

reversed a lower court ruling in favor of the plaintiffs, holding that in order to establish a breach of contract, the plaintiffs would have to show that the parts specified or used by State Farm did not restore the vehicle to its preloss condition.

That case was watched very closely by the collision industry at the time, because the initial Avery verdict seemed to vindicate repairer concerns about aftermarket parts quality and would have established a more stringent standard for insurance companies relative to returning a vehicle to its preloss condition.

In the GEICO case, the final

Avery verdict was used to refute all of Greenberger’s claims, particularly since his vehicle was no longer available for examination. “Among other important holdings, Avery established the common-sense proposition that a policyholder’s suit against his insurer for breach of its promise to restore his collision-damaged car to its preloss condition cannot succeed without an examination of the car,” said the 7th Circuit ruling in the Greenberger case.

The court also noted that the higher estimate issued by the body shop did not establish a breach of contract, although it would be admissible as supporting evidence.

modifications to the version of the calculation introduced in September.

According to Rick Tuuri, Vice President of Industry Relations, Audatex will reintroduce the feature in March, 2011. The feature will be implemented as a pop up box to enter labor time for refinishing an unprimed bumper cover. The box will be prepopulated with a labor amount equal to 20 percent of the refinish time for

the bumper cover, or a minimum of .3 hours, whichever is greater.

The pop up box will appear whenever a bumper cover is selected that will be supplied in an unprimed condition, including those from Toyota and Lexus.

Tuuri also said that the box will only show up in the cases where Audatex knows the part comes from the OEM raw and unprimed. In cases

where the part sometimes comes unprimed and sometimes it does not, the part will not automatically appear in the edit box but can be manually entered.

“We know there are other raw and unprimed parts on the car,” said Tuuri. “This, we think, is a good a start, the way that we have started to address the raw and unprimed plastic parts,” said Tuuri.

missed include: Count 1: Deceptive Trade Practice (primarily involving tactics used to steer customers); Count 4: Tortious Interference; Count 5: Civil Conspiracy, Use of Unregistered Body Shops; and Count 6: Civil Conspiracy, Unlawful Conduct with DRP Shops.

Audatex to Reintroduce Labor Times for Unprimed Bumper Covers In September 2010, Audatex introduced new functionality in its estimating system to provide a refinish labor time for raw, unprimed bumper covers. The feature was short lived.

After receiving feedback from the collision industry, the information provider removed the feature the following month until further review.

Audatex is now getting ready to re-introduce the feature with slight

See these Hyundai dealers below for all your collision parts needs!

SO. CALIFORNIA

Drew Hyundai SAN DIEGO

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Kearny Mesa Hyundai

L AS VE GAS - METRO AREA

949-586-5104 Fax 949-586-7093 Fax

702-565-9643

Mon-Fri 7am - 7pm Sat 8am - 5pm snielsen@tuttleclick.net www.tuttleclick.com

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800-469-9731 858-300-3331 Fax Mon-Fri 7am - 6pm Sat 8am - 5pm cguth@hyundaisubaru.com www.kearnymesahyundai.com

www.autobodynews.com | MARCH 2011 AUTOBODY NEWS 45

This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com. See his book “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Gonzo at Gonzosae@aol.com

Gonzo’s Toolbox

When it Comes to Diagnostics, First, The Basics with Gonzo Weaver

Let’s talk diagnostics. Do you follow electrical problem.” OK, somehow, any kind of diagnostic procedure, or I’m getting involved now. do you just throw darts on a wall, or “Sure, bring it over,” I told them. play “pick-a-part” and hope you fix it Well, they towed it over with a with Richard Arnold before you or the customer runs out of strap pulled by an F250 diesel truck. cash? I hope you don’t do that. That The F250 looked like a toy truck commight work some of the time, but it’s pared to this behemoth. With a push not a good way to get to the source of and a shove from the F250 the guys problems quickly or accurately. got it lined up and into one of my One of the tire shops that I do service bays. business with dropped offAttanasio a 2003 The big concern was the IDM with Ed F450 with a 7.3 diesel for me to look relay, it kept chattering like a machine at. It’s one of their service trucks that gun. Instead of checking codes I died on the highway. thought it best just to start with a comThese guys are super, I’ve known plete wire to wire check to determine them for years, and they’ve got a great if there was some lost signal that was reputation and excellent work force. causing the problem, or a wire that Erica In fact, I buy allwith my tires there,Schroeder and was scraped and grounding out. Rethey do all my alignments. They try to moving the inner fender on the driver fix their own trucks “in-house” and side I could gain access to the Injecsometimes, well…the repair/diagnos- tor module (IDM) and the PCM tics are a little out of their comfort (Power control module). Seemed easzone. This was one of those times. ier to start here than any place else. It Now, they don’t try to keep up didn’t take long before I tracked down with the scanning or diagnostics on a problem. On pin #71 of the (new) with Erica Schroeder most cars and trucks. It’s a tire shop PCM there should have been 12 volts that specializes in tires. They stick to from the ignition. No voltage at the what they do best, tires, wheels, and terminal. undercarriage stuff. The only “techy” Tracing the wiring diagram stuff they get into is with the TPM through its maze led back to the in-car systems. Most generally, when it fuse box on fuse #22. I grabbed my comes to their vehicles they’ll go with test light and checked the fuse… with Ed Attanasio(Rolling the tried and true… “throw a dart and my eyes about now) the whatever it hits we’ll change.” Of fuse,… oh man… the fuse is blown. course they’ll ask around first, but you Good grief… all this for a blown fuse. know, second-hand information Well, I better change the fuse, and hardly ever gets the job done these see if it starts. Sure enough; it fired days. right up… sounded great, good throtThey had it at one of their stores tle response, and no service lights. with Ed Attanasio in another town for about three weeks Now the big challenge, what trying to solve the problem. When that blew the fuse in the first place? Foldidn’t work they decided to tow it up lowing the wiring diagram again…. I to another one of their stores, and see traced out all the components on the if the guys there had a better dart. An- fuse circuit. There was one that caught other couple of weeks and several my eye as the likely culprit. The brake darts later, all they had Chasidy were holes in with Rae cut-off Sisk switch mounted on the master the wall and no truck running. Then cylinder. (It’s the one that had the big my phone rang. recall a few years ago.)

“Can you program a PCM on a The updated replacement piece F450?” the shop asked. was in place but somebody forgot to “No, sorry I don’t do those, but I secure the wires. The replacement know who does. I’ll call him and see if piece has a newer style connector and Danalevich he can come overwith and doWalter that for you,” an adapter connector to allow you to I told them. attach it to the original style fastener.

A day or two went by and the Which makes it a little longer than it phone rang again. “Hey, this thing still originally was from the factory. It was doesn’t start. The guy that pro- hard to tell where the new wire and grammed it said it sounded like an connector started, and the old one

Jobber Journal

ended, because the whole thing was lying on the exhaust manifold, and had melted down to a glob of wire and plastic.

Looking around under the hood there were all kinds of new parts installed. The nicest part: they were all installed correctly. There were no other wires out of place, or any signs of scraps or melted wiring.

The important thing is that it runs, and the truck can go back to doing what it needs to do. I think the biggest thing that threw everyone on this job was the chattering relay.

It sounded bad, sounded expensive… but, all it turned out to be was a loss of proper voltage to the PCM, because a fuse blew from a lead that grounded out. This was due to the improper installation of one small component.

The PCM couldn’t spread enough voltage and ground signals to all the

Shop and Product Showcase Shop Showcase Shop Snapshot

necessary systems when it was missing the voltage it needed. As the relay would engage, the voltage drop was too much to keep the relay engaged.

The IDM would pull more signal voltage as the relay would come to life.

Then the PCM would have to drop the ground signal to the IDM relay to compensate for the loss of voltage. All this was going on very rapidly … on and off, on and off… making the machine gun sound coming from the IDM relay.

The guys at the tire store were extremely grateful that I got the job done, so they could use the truck again. For me, it’s another day at the shop. I’ve got nothing but good things to say about the guys at the tire shop.

Hey they tried, I’ll give them that.

But one thing I wish they would do next time --- CHECK THE BASICS—BEFORE BUYING PARTS! It’s cheaper that way…

volvo Genuine parts Right Part. Right Price.

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Your Source for Wholesale Volvo Parts

Company Connections

Shop Strategies for Savings Inside Insurance

46 MARCH 2011 AUTOBODY NEWS | www.autobodynews.com

with The Insurance Insider

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Trust your order to the collision parts specialists at these fine Dealers

ABPA Says Aftermarket Bumper Outperformed Ford Counterpart in Crash Test

ABPA says a laboratory crash test performed in December 2010 by MGA Research Corporation determined that an aftermarket bumper reinforcement bar outperformed its original equipment supplied (OES) equivalent, the Automotive Body Parts Association (ABPA) announced.

The trial involved sled-testing a pair of 2007 Ford Mustangs into a front-end barrier at 5 mph (the same test presented by Ford at the Collision Industry Conference last November), measuring the effectiveness of the reinforcement bars and estimating the costs of repair to the aftermarket and OES-equipped vehicles.

“We decided to incur the expense of further testing to illustrate comparable performance and to disprove the claim that it costs more to repair aftermarket-equipped vehicles than those with only OEM or OES parts,” said Eileen A. Sottile, co-chair of the ABPA Legislation & Regulation Committee. “Tests have consistently demonstrated that aftermarket parts perform just as well as

original equipment components, and consumers should feel good about having these parts on their vehicles.”

While both parts effectively absorbed the impact and protected the vehicle occupants, a piece of the bumper fell off of the Mustang outfitted with an OES reinforcement bar. The low-speed test did not result in the deployment of the air bag systems on either vehicle.

Two repair shops which ABPA says are “highly regarded” were asked to calculate the costs of repair to the test vehicles without knowledge of the parts used in the crash test. One of the shops gave an identical estimate for repairs, while the other (a Ford dealer body shop) estimated that it would cost approximately $200 less to repair the aftermarket-equipped vehicle than the one with original equipment parts, which sustained more damage, according to ABPA.

“When aftermarket and OEM parts performed equally well in trials at 35 mph, some industry members complained that the tests were conducted at too high a rate of speed, making all rebars ‘toast’ even though the government requires tests at 35 mph in order to test for occupant safety,” said Sottile.

“Now that this low-speed test has vindicated the aftermarket in terms of quality, safety and damageability, the focus should return to preventing more cars from becoming total losses, which means everyone wins — the repairer, the insurer and, most importantly, the vehicle owner.”

Sottile has previously said “The aftermarket industry is a thriving part of the American economy and will continue to be," declared Sottile.

"Consumers benefit when they have choice about which parts they use for car repairs, and competition prevents car company monopolies from charg-

ing excessive prices to line their pockets.”

The ABPA says it will perform additional testing and also make those results public.

About the ABPA The more than 150 members of the Automotive Body Parts Association (ABPA) occupy more than 415 separate collision parts distribution, bumper sales, recycling facilities and manufacturing plants. Collectively, they are responsible for distributing more than 75 percent of independently produced aftermarket collision replacement parts sold to the collision repair trade. ABPA members warrant the products they sell and endorse the concept of Complete Customer Satisfaction which not only extends to the quality of the product lines but also encompasses product availability, product service, product price and service after the sale. Visit www.autobpa.com.

See www.autobpa.com and www.mgaresearch.com.

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Hours:

Hours:

Monday - Friday: 7:00 am - 6:00 pm Saturday: 8:00 am - 5:00 pm

Monday - Friday: 7:00 am - 6:00 pm Saturday: 8:00 am - 5:00 pm

8850 Grossmont Boulevard La Mesa, CA 91942

8850 Grossmont Boulevard La Mesa, CA 91942 www.autobodynews.com | MARCH 2011 AUTOBODY NEWS 47

Shop Showcase

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

G&C Autobody Seizes Opportunity to Expand in Northern California with Ed Attanasio

While many body shops in the country are battening down their hatches financially, operating with skeleton crews and going into survivor mode, Gene Crozat, the multiple location owner of G&C AutoBody in Marin and Sonoma counties, CA, is buying land, building new facilities, and signing up more DRPs. Crozat is aggressively looking to gain more of the market, while exploring further expansion opportunities in areas where he sees potential for growth and profitability.

With six body shops, another one in construction and a large mechanical repair shop, G&C AutoBody is Northern California’s largest collision repair chain north of the Golden Gate Bridge. G&C has been family-owned and operated since 1972, and has become synonymous with quality repairs and exceptional service, according to G&C’s Director of Public Relations Peter Bizaca.

The company did $20 million in 2010, up from 2009; employs 65 people and fixes more than 500 cars monthly, Bizaca reported.

eran knows that timing is everything.

“Some see a recession as a time to sit back, but I see it as an opportunity instead of an obstacle,” Crozat reasons. “You can sit around all day

of the available business in each region.

While the business environment is waning across the board, Crozat and his team are looking at the pos-

G&C Autobody’s newest shop in Windsor, CA. is betting on a city that is poised for double-digit growth in the next decade

long, frightened and paralyzed by this tough economy, or you can use it to your advantage, and that’s what we’ve done. In 1999, we also went through a recession, and I opened new shops during that time as well.”

While many body shops have experienced substantial downturns since 2008, G&C’s volume is up and growing. In the last two years, their business is up 23%, while the national average in collision repair is down 30% across the board, Crozat said. After doing extensive market research, Crozat’s team determined that Windsor was a prime situation for their newest location.

“There are 26,000 G&C has spent more than $6 million to buy the land and built their people in Windsor newest shop in Windsor, California and it will double in A good example of Crozat’s “exsize within the next decade. We dispand rather than contract” approach covered that the entire town had just can be illustrated by its newest locaone body shop and many of our Santa tion in the small town of Windsor, CA. Rosa customers were coming from Crozat bought the land at a recession Windsor. So, it was an ideal situasale price and has built the 15,000 tion—a growing area with a need and square-foot facility from the ground prime real estate available at a good up at an enormous overall savings, he price.” said.

Simply finding good locations for Some body shop owners consid- new shops isn’t the only way to sucered him insane for building new ceed, Crozat says. By embracing the shops in a recession without any relief communities in which he operates, in sight, but the 50-year industry vet- G&C is able to capture a lion’s share

48 MARCH 2011 AUTOBODY NEWS | www.autobodynews.com

itives rather than the negative reports we hear almost every day in the media.

“Other body shops out there are cutting costs and laying people off, so

we’re asking ourselves, who is going to fix all these cars? Just because the economy is sluggish doesn’t mean drivers are going to suddenly avoid getting into accidents.”

The prices of real estate, construction, labor and even advertising are at all-time lows, Crozat has realized. “We’re saving 35–40% across the board over what it would have cost us to do the same thing four years ago.

Interest rates are way down and the construction bids were extremely tight, because contractors are hungrier than ever.”

Timing is everything in any industry, but even more so in collision, Crozat said. “The best time to buy a boat is in January, not in June. Tight times are the perfect time to buy and build. It behooves us to take a chance during a down economy, because I know that if I can build a world-class shop in a prime location where the

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business environment is healthy, it’s an easy decision.”

Part of the G&C plan involves getting onboard with each community they open a new shop in, for several reasons, Bizaca explained.

“We are involved in a wide range of community groups in every city in which we operate, because we don’t just want to be a business that takes money from the residents without giving something back. We want to be part of the fabric of the community rather than a just a company doing business there.”

To that end, G&C is already involved with several community organizations, local schools, and planning to sponsor Little Leagues teams in Windsor, even though they’ve only been open since December, Bizaca said.

“We’ve already been out to the schools talking to the students and we invited the band at Windsor Middle School to play at our grand opening,” Bizaca said. “Seventy children and their teachers, as well as many of their parents came to the event attended by more than 400 Windsor residents.

We’re also working closely with the

Rotary Clubs, the Chamber of Commerce and doing other forms of community outreach.

“Don’t just work in the town, be part of the town,” Crozat advocates.

“It’s just a philosophy. Everyone looks at life from a different paradigm, but I’ve always thought that if we don’t do

With 15,000 square feet, G&C’s facility is hoping to fix 50-70 cars monthly at its new Windsor, Calif. location

it, then who will? It’s good for us business-wise obviously, but it also gives our industry as a whole a better name.”

“Get the best buying power in the marketplace and pass it on to the consumers and to the insurance companies as well. If you do whatever

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everyone else is doing, you’ll just be another one of them. And that’s why I have always gotten the best equipment, top technicians and the best products I can find. You can’t do today’s work with yesterday’s tools.”

Building top-quality facilities also helps G&C to get DRPs and re-

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tain them over the long run, Crozat argues.

“People say they don’t like DRPs, but they represent 90% of the work. Why wouldn’t you cater to these insurance companies that are trying to get the best prices they can, in order to keep their rates down? We have two full-time in-house reps who work full-time dealing with the insur-

ance companies and their agents, because DRPs are a big part of our business. I learned many years ago—don’t fight the direction of the DRPs. Instead, provide them with the best deal in the marketplace, by providing the best service, the best cycle times and the best image you can establish.

That’s why we have cycle times that average six days, while the national average is 14 days.”

Gene Crozat has always maintained that if any other body shop owners want to visit his facilities to see what he’s doing and glean information from his business model, he’s anxious and pleased to help them in any way he can.

“People don’t believe it when I say it, but there have never been secrets or closed doors around here. I won’t be in this business forever and if I can make the industry better overall, it will benefit my children and my grandchildren down the road. Give me a call and I’ll do everything and anything I can to help you. I’ve done it many times before and that will never change.”

Call Santa Rosa shop: 707-5253520.

E-mail: Peter Bizaca: pbizaca@gandcautobody.com.

California Air Chief Blasts Auto Trade Group Over Clean Cars

California Air Resources Board Chairman Mary D. Nichols wrote to seven major automobile manufacturers, accusing their trade group, the Alliance of Automobile Manufacturers, of misrepresenting the state’s efforts to cooperate with federal officials on rules to curb greenhouse gas emissions from cars and trucks, according to the Los Angeles Times.

She asked the companies to “distance” themselves from the Washington-based group’s efforts to “undermine ... standards that will provide American consumers with cleaner and more efficient vehicles.”

“For the Alliance to suggest we are no longer committed to a cooperative effort is disingenuous at best, and incorrect,” she wrote in a letter to the automaker CEOs, which was copied to the leaders of the congressional committees that oversee auto regulations.

Nichols’ forceful rebuke comes as California, which has the right under the federal Clean Air Act to develop its own car emission standards, has pledged to coordinate its regulations for post-2016 car models with a parallel federal effort to hike fuel-efficiency standards.

But the issue has become more highly politicized than ever in the wake of the Republican takeover of the House of Representatives, with GOP members of Congress raising doubts about climate science and questioning the need for stricter curbs on carbon dioxide emissions.

Scientists say that C02 and other greenhouse gases are trapping heat in the atmosphere and changing Earth’s climate, leading to rising sea levels, more intense droughts and extreme weather events. California in 2006 passed the nation’s most sweeping law to curb greenhouse gases, but federal legislation died in Congress last year.

In a Jan. 11 letter to Reps. Darrell Issa (R-Vista) and Fred Upton (R-Minn.), the auto alliance charged that California is undertaking “unilateral action” in a “rushed effort toward a state rulemaking” that “is not on the spirit of a collaborative effort to develop a single national program for fuel economy/ghg standards.”

California has also announced that it would delay issuing rules for 2017-2025 model years until September, rather than a scheduled March date, to accommodate the federal regulatory schedule.

www.autobodynews.com | MARCH 2011 AUTOBODY NEWS 49

Custom Corner with Rich Evans

Rich Evans is the owner of Huntington Beach Bodyworks and an award winning painter and fabricator. He offers workshops in repair and customization at his facility to share his unique talents. For contacts and design samples visit www.huntingtonbeachbodyworks.com

The Rich Evans Designs-Mopar Kit for Dodge’s Challenger, Part 2 I don’t get the blotchiness with a high This article is a continuation from build. I’ll do a half trigger using 27 Rich’s column last month. For an psi. I do six coats to get a nice, dark, archive of Rich’s columns please visit even feel. I’m painting everything in www.autobodynews.com/columpieces so it needs to match. You’ve nists/Rich Evans.

A lot of times when I’m taking got to remember how you’re applying parts off the car and putting them it, how close your gun is, to be able to back on, from mock up position I’ll paint cars in pieces. It gives me a betwith Thomas Franklin go into the doors and the hinges and ter result. drill two 1/8th inch holes. That way I After adding my six coats of the can stick two 1/8th inch dowels True Blue Pearl, now I de-mask everything, and add six coats of House of Kolor’s clear. Six good coats allows me to cut two coats off and not have any edges on my graphics.

I’m ready for color, sand, and buff. On with Dick Strom my color sanding method I will use all 3M products. I start with 800 grit sand paper, then 1000 grit, 1200, then 1500, through, tighten up the parts and then 2000, then to 2500. they’re right back to where I was beAlso I am using Soft-Sanders fore so I don’t have to take the time blocks along with their new sand to re-line everything up. That way paper. All their sand paper is wet when I do my graphics, they’re going from 800 all the way on up, and it’s to line up. So I do the same with the sticky-back so that is a great time hood, deck lid; I really don’t have to saver. Visit softsanders.com and worry about the fenders—on some check with Lee Amaradio Jr. out the sandpaper products. projects you do, but on this one I They don’t wrinkle up, last a long don’t. time, and you can get them all the So after getting the graphics way from 400 grit up. Their blocks layed out, it’s time to tear it back are also great, good for sanding out down again. Now I’m ready for my scratches and unbeatable for getting graphic color, True Blue Pearl part into curves. number PBC36AB. On the silver I applied three coats. I just do that on all my projects, I have a system and I apply it with a SATA 1.4 tip gun and I use 27 psi, 3 heavy coats, then I seal it with a with Sheila Loftus House of Kolor sealer. The reason for using three coats is so if it ever got in a wreck and I had to redo this job I know how I did it so I do that routinely on all my vehicles.

If for some reason I change my patterns from normal spraying I’ll write it on the back of the file so when the car comes back in I can repeat exI use the combination of 3M and actly what I did and get to as close of Soft-Sanders products. 3M doesn’t a color match as possible. have the sticky-back sand paper all With the True Blue, I’m going to the way up to 2500 grit so Softdo six light coats just for coverage so Sanders is the way to go. I burned

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through a lot of sandpaper on this project.

I’m ready for buffing, I do use the 1-2-3 step from 3M. That gives the fastest and best results that I have come across to date. Check out 3m.com and check out the 1-2-3 step buffing process. It’ll save you time and give you best results.

lenger with just adding these inserts.

They look cool and you can order them to color or just plain aluminum as you see them on my original.

Visit Richevansdesigns.com and get your grill inserts, your scoop, your wing, your lower front spoiler, left and right rocker, left and right flares, your rear bumper lower spoiler, your rear

We created a headliner and I’m going to send it over to Rivo at Stitchcraft Interiors. I sent them a design to use in Katzkin Leather.

I’m looking forward to seeing how it comes out and they’re also going to do the door panels. Katzkin styled me out with doing Rich Evans designed seats for this and Katzkin just does a phenomenal job.

Visit www.katzkin.com and stitchcraftinteriors.com. They’re both great individuals to work with.

I’m at the point when I’m ready to put this project together and get it over to SEMA. I called Mike Curtis over at Curtis Speed Equipment. I had him cut me off some one-off wheels, created a center cap for it, and then gave it to Mike. He’s just over the top in his wheel cutting experience. I collaborated with Mike on the grill. You can just bolt these grills right on top of yours. It takes only eight screws to and you can change the whole look of your Chal-

wing and your hood scoop. Even your headliner and grill inserts can be found at huntingtonbeachbodyworks.com and richevansdesigns.com and we’ll have these parts available for you.

At the Mopar booth at 2010 SEMA, the Challenger was on stage on the turntable and people were loving it. I had a great time working with the Mopar Aftermarket team and I had a great time working with all the sponsors and utilizing the Mopar parts on this build — it just brought this Challenger to a whole other level.

If you want to give this project a name it would be “modern muscle to the max.” We ended up with a name, calling it the Beast; 451 CID HEMI, pushing over 550 horsepower. Visit my site for more photographs or you can visit Mopar’s site and find some photographs on there.

The car is on tour with Mopar for the next nine months. If you guys want me to turn your car into a modern muscle car, look me up. I hope you guys enjoyed the build, I definitely enjoyed every minute of the 3-month build. See you next month!

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50 MARCH 2011 AUTOBODY NEWS | www.autobodynews.com

Hyundai’s 25th Anniversary in U.S., Lifts Southeastern Job Market Economy with Kia Hyundai Motor America celebrated its 25th anniversary in the U.S. the weekend of Feb. 19th. The automaker reports that it has sold 6,608,208 models in the U.S. in that time, and more than 4,350,000 units still are on the road today.

Last year, Hyundai recounted that its sales surpassed 538,000 units, making the Korean company the sixth best-selling brand in the country behind only Toyota, Honda, Nissan, Ford, and Chevrolet.

To handle demand, the company has expanded production capacity to more than 400,000 units—specifically the Sonata, Elantra and Santa Fe that are manufactured in modern assembly plants in Montgomery, Alabama, and in Georgia. Hyundai pointed out that its engines and transmissions are produced in the U.S., too.

U.S. employment now includes more than 4,000 workers, with total employment including suppliers and dealers coming in at more than 45,000.

Hyundai has declared that its commitment to the U.S. market includes engineering, design, testing, production,

sale and marketing. In all, Hyundai's investments in the U.S. total $1.7 billion.

Local Presence Boosts SE Economy Few people in Mongomery, AL, 800 miles south of Detroit cared much about the auto industry until Hyundai announced it would build cars here nine years ago, according to reports

just across the Georgia state line, have brought thousands of well-paying jobs to the region and even helped nurture a little Korean culture in Montgomery, the first capital of the old Confederacy. Hyundai is running its Montgomery plant almost nonstop. Rarely do more than a few weeks pass without word that another parts supplier

made by the New York Times.

At Hyundai‘s Montgomery plant, rarely do more than a few weeks pass without word that another parts supplier has dozens of new positions to fill, typically offering good benefits and double the pay that the average Alabaman earns.

Hyundai and its sister company, Kia, which opened a plant last year

has dozens of new positions to fill, typically offering good benefits and double the pay that the average Alabaman earns.

Hyundai, which will observe its 25th anniversary selling vehicles to American drivers on Sunday, was little more than an ambitious, secondtier brand when it chose to build its first United States car factory just

south of Montgomery. But during the recent recession, the South Korean company thrived as Americans sought out cheap cars just as Hyundais were improving in quality.

In 2010, Hyundai and Kia each posted their highest sales in the United States and, taken together, surged ahead of Ford Motor to become fourth-largest automaker worldwide.

Hyundai built 300,000 cars in Montgomery last year and sold most of them in the United States.

“If folks looked deeply at how far we’ve gone so quickly, from having no U.S. production five years ago to where we are today, it’s amazing,” John Krafcik, chief executive of Hyundai Motor America, said. “I don’t know that any company has gotten to such a high level of local assembly as Hyundai that fast.”

While Michigan’s dependence on the auto industry caused it to have one of the nation highest unemployment rates in recent years, the presence of Hyundai and Kia has helped Alabama keep its jobless rate among the lowest See Hyundai, Kia, Page 54

Repair Standards Advisory Committee Requests Consultant to Help Draft Standards The Repair Standards Advisory Committee, formed by the Collision Industry Conference (CIC) to address the desire for standards in the United States collision repair industry, announced the next step it is taking to form the standard setting body proposed at the July 2010 CIC Meeting.

In support of this effort, the committee has posted a Request for Proposal (RFP) for a consultant to assist the group in the preparation of a business case statement for the new organization.

“As the committee is comprised entirely of volunteers, the group believed the time was right to engage a consultant to assist the committee in its work to define and establish the proposed standards organization,” Russell Thrall III, chair of the Repair Standards Advisory Committee.

The business case will be used by the organization to define the demand for repair standards based upon interviews and research with collision repairers, insurers, equipment manufacturers, paint system manufacturers vehicle manufacturers and others.

The business case will also define the scope of the new organization and how it will develop standards, how

the standards will be used by the collective industry and how the organization will be staffed, governed and funded.

The work will build upon the efforts by the previous CIC Repair Standards Committee.

“Many individuals, businesses and groups have expressed support for the formation of the proposed institute and the committee believes the creation of the business case will serve to define and help communicate the benefits of collision repair standards for both the industry and the consumer,” said Thrall. “The business case will define the scope and goals of the proposed collision repair standards institute and build upon the excellent work of the CIC Repair Standards Committee.”

The RFP is available to download from the CIC website at www.ciclink.com. Questions can be directed to Russell Thrall III, rthrall@collisionweek.com; 570-629-8010.

www.autobodynews.com CHECK IT OUT!

www.autobodynews.com | MARCH 2011 AUTOBODY NEWS 51

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Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses.

He can be reached at (323) 871-6862 or at tbfranklin@aol.com.

See Tom’s columns at www.autobodynews.com under Columnists > Franklin

‘Consistency’ May be Boring—But It’s Also Profitable with Thomas Franklin

As we get rolling in this New Year, we ued has gone and we must go in More Than One Way To Communicate ered with photos was one effective see a multitude of new ways to marsearch of a new place that will service way to communicate that consistency.

Consistency ket the shop: A website, e-mail, Faceus in the manner we have come to ex- I was startled, one day, when I walked That same shop owner gives the cusbook and other social media sites, like pect. into an auto body shop office in an tomer a before and after photo when Twitter. Should we ignore these new Chances are that you can deliver outlying area. The walls were com- the job is finished as a reminder of the ways to reach potential customers? consistency. You’ve been there a long pletely covered with photos of before quality of work that has been proCertainly not, but there can be a tentime. You’ve built a good customer and after repair jobs. It would have vided. dency to discard tried and true ways base. They know what to expect from taken hours to examine the multitude Some shops have a photo album when we jump on the bandwagon for you. All you have to do is make cerin the waiting area with before and of before and after photos this shop with Dick Strom tain That you don’t change what your owner had accumulated over the after photos. One shop I visited had an the new ones. And that can be a serious mistake. clients or customers value most, and years. While it’s unlikely there would album filled with impressive letters Customers who have been com- that you let them know that, in a be many shop owners who would from satisfied customers who owned ing to your shop for years may now world of fleeting consistency, you are adopt this approach to displaying a BMW, a Porsche, a Mercedes Benz, be getting a bit older. And they may still here delivering the same pre- proof of consistency in repair, it is a a Lamborghini or a Rolls-Royce. The not all share the younger generadictable message and quality you al- sound idea to somehow convey the unspoken but obvious message was tion’s enthusiasm for these new ap- ways have! enormous number of quality repairs “we do a consistent, superior job on proaches to communication and the ultimate in high-end cars.” that a shop has done. media. If they have kept coming Your website, e-mail, Facebook This is the idea behind the mesConsistency: Promoting Your Business back, they must have liked whatever Think about the advertising power of sage that McDonald’s “has served page and Twitter feed can also be used it was you were doing to stay in the consistency of major brands. How to communicate your consistency more than five hundred million hamtouch with them. You may not know long have we heard “You’re in Good without neglecting to emphasize your burgers.” Publicizing a long history of withthat Leewas Amaradio Jr. With Allstate” or “BMW, The high volume seems to convey a mes- new qualities and awareness of the immediately what that Hands pleased them, but of course you can Ultimate Driving Machine?” Even sage of consistency although it may new communication tools we have at always ask. You can also be fairly though the specific ad may change, not necessarily be true. That wall cov- hand. certain that they are like consumers these consistent messages are always of other services. There are some present. standards that never change.

What is your consistent message?

Give your customers what they deserve... The Best.

Do you have one? Shops that have Genuine Mazda parts are specifically designed, engineered and tested been in business a long time are wise What Keeps Customers Coming Back? for Mazda vehicles. Customers and repair professionals prefer the As I noted in an article more than ten to capitalize on that longevity in their quality and satisfaction that only comes from genuine Mazda parts. years ago, if there’s one thing that advertising and promotion. A line that customers value in a business, it’s says “Quality Collision Since Give us your Repair opinion on matters affecting the industry.

Want to Contribute t consistency. We go back to the same 1981” tells a customer at a glance that withhair-dresser, Sheila Loftus restaurant, the same the you have survived in business for 30 samewww.autobodynews.com mechanic over and over because years. The clear implication is that we come toCHECK know what to expect of you must have been doing something publisher@autobodynews.com publisher@a IT OUT! them. We know the level of service right to be around that long. If you are we’ll receive for the price we expect relatively new in business, it’s still to pay. When a place changes hands, probable that you have been somePromote your busin we dread the changes we’ll probably where in the industry for a while. You encounter. The menu we enjoyed sud- may be able to use a line like: “SerMazda 3 ‘11 an exclusive article f denly no longer has the choice items vice by professionals with more than your products or se ToThe advertise To advertise we preferred. barber or hair20 years of experience.”

If you The source for have timely call at:on survived in this industry for any call Joe Momber at: dresser weAdvertising liked best hasSales moved information that every because 800-699-8251 he or she didn’t get along length of time, you must have some 800-699-8251 body shop with the new owner. And the rep- element of consistency in how needs! you ape-mail: e-mail: utable mechanicwith we trusted to do an proach collision repair. That consisJanet Chaney CALL: Joe Momber fo advertising@autobodynews.com SO.jmomber@autobodynews.com CALIFORNIA CALL 800-699-8251 honest job on our car has been re- tency may be the most valuable www.autobodynews.com www.autobodynews.com placed by a fast-talking, slick sales commodity you have Your to sell. Now is Start FREE Galpin Mazda Neftin Westlake Mazda800-699-82 type who wants to sell us unneeded the time to capitalize on it in your adVan Nuys Thousand Oaks Mail Subscription. extras. The consistency that we val- vertising and promotion!

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Lee Amaradio, Jr. is the president and owner of “Faith” Quality Auto Body Inc. in Murrieta, California. Lee is president of the CRA as well as an advocate for many other industry groups. He can be contacted at lee@faithqualityautobody.com

Setting the Record Straight on Ford vs. Aftermarket Parts Testing with Lee Amaradio Jr.

I read about the aftermarket parts test- probably take it one step further and start testing headlights and other parts ing conducted by ABPA (ABPA Says with Outperformed Lee Amaradio Jr. the poor consumer has been because Aftermarket Bumper Ford Counterpart in Crash duped into thinking that the manufacTest—Page 47 this issue) and I have to turer’s parts are best for the safe repair say that I expected as much. Not un- of their vehicle.

There is only one problem that like CAPA certification, the results will always favor the aftermarket part. we still need to address and that is to In the article they stated that is some with Sheila Loftus“test” the actual test results. I mean cases the aftermarket performed “bet- before I go to the Insurance Commissioner’s Office and tell him that I have ter than the OEM.” Wow, I guess I will need to re- been wrong all along about the safe think my standards regarding all af- repair of vehicles today I better know my facts. So a couple of questions termarket safety-related parts, and maybe we should all lobby to have the come to mind that maybe the comwith Sheila OEM’s recall their vehicles so weLoftus can pany that did the testing should aninstall these superior aftermarket swer first.

1) Ford showed up at a public parts. We know that the consumers’ safety is our primary concern so now gathering and came equipped with that the cat is out of the bag what photos, videos, sensor reading data.

They even brought their engineers to should we do? After all, I have been installing OEM rebars that have been answer questions. Plus they brought with Janet Chaney in the actual parts so we all could see “proven” (?) to be inferior to the afwith our own eyes what was being extermarket rebars. I think we should

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posed. Ford was willing to answer questions (and did a very good job), they also made their test results public and published them on CIC’s website (www.ciclink.com). Where is ABPA’s evidence? I need to see this first hand so I can quit making a fool of myself.

2) The article (this issue) said that part of the OEM-rebarred Mustang’s bumper fell off? This baffles me because if they actually did the testing as they claim then they should know there is no part that can fall off. What part could fall off? There is nothing to this part but a beam and two brackets and the bolts go all the way through.

This makes me question all the testing they describe.

3) Ford ran two separate tests, both a set of 5-mph crash tests and a set of 8-mph test. Ford’s 5-mph crash test showed there was more intrusion damage and a higher cost of repair with the Aftermarket verses the OEM vehicle, which contradicts the ABPA test. Ford’s 8-mph test with the aftermarket bumper beam revealed the most dangerous evidence of “AIRBAG DEPLOYMENT” when it “SHOULD NOT DEPLOY.” Why didn’t ABPA do the 8-mph test? This raises concerns for me, (it’s not ‘apples to apples’.) Does the term “like kind and quality” come to mind? It’s uspicious at best.

4) Ford’s damage estimates were very detailed, listing all of the parts used. The ABPA report glosses over these details completely, “the

truth lies in the details,” and who wrote the damage assessments?

Some “highly regarded” shop? What kind of answer is that? Why aren’t they identified?

5) Ford videotaped the entire teardown process and created some serious evidence which contradicts the ABPA test. Where is their video? I want to see it made public. After all, they are implying that Ford is the one with the skewed results. ABPA needs to put its money where its mouth is.

6) I know that Ford didn’t modify anything but it is possible to modify an entire vehicle to make it crash better (look at Nascar reinforcements for racing safety, for example).

We need to see this so-called ABPA evidence made public and give Ford and the other OEMs a chance to rebut it. Maybe we should present both tests to Congress and let them decide. After all, this is a serious safety issue.

What I have read in this article seems like another effort to mask the truth. The facts are the facts and I say let’s compare apples to apples and bring everything out in the open.

Then we can give the information to the public and let them decide. But this question still remains: “Why are we using these parts when we know they have not been tested nor proven to be equal to the original manufacturer’s specifications as the law “requires.”

We are assuming an awful lot with respect to someone else’s safety.

Industry Insight with John Yoswick

Industry Insight with John Yoswick

Industry Interview with Janet Chaney www.autobodynews.com | MARCH 2011 AUTOBODY NEWS 53

Continued from Page 51

Hyundai, Kia

in the Southeast even as textile mills continue to close.

“As far as the pay, nobody else around here can compete with them,” said Richard Watson, a former auto mechanic who was out of work for a year and a half before getting a temporary job at the Kia plant in West Point, GA, last fall. He said some of his co-workers drove two hours each way because the plant’s jobs were in such demand.

Hyundai is running its Montgomery plant, which employs 2,650, around the clock on weekdays and occasional Saturdays to keep up with demand. Last summer, it moved production of its Santa Fe sport utility vehicle 95 miles northeast to the Kia plant to free capacity in Montgomery.

Kia recently hired 600 additional workers to operate a second shift for the Santa Fe and plans a third, with 1,000 more jobs.

Both carmakers expect to easily top their 2010 sales in the United States this year.

Hyundai’s sales were up 22 percent in January; Kia’s rose 25.6 percent, the highest among the industry’s larger players. Together, the two sold more than 65,000 vehicles, about 5,000 short of surpassing Chrysler.

Hyundai makes its own engines in Montgomery, and transmissions for its cars come from a Hyundai-owned company, Powertech, which is attached to the Kia plant. Alabama lists 138 suppliers that support the Hyundai plant, directly or indirectly. (Some also do business with the Honda and Mercedes plants near Birmingham and the Toyota engine plant in Huntsville.)

“These jobs have good salaries and good fringe benefits, and are more self-fulfilling” than the ones that have left the area, said Seth Hammett, director of the Alabama Development Office. “The automobile business has really been good for Alabama.”

Near the car plant on the south edge of town, a Hyundai subsidiary that makes electrical transformers is building a factory that was originally supposed to create about 500 new jobs. Even before construction began last year, the company had doubled that estimate, to 1,000.

BASF Official Show Sponsor of NORTHEAST 2011 The Alliance of Automotive Service Providers of New Jersey (AASP/NJ) has announced that BASF Automotive Refinish has signed on as the official show sponsor of their 34th Annual NORTHEAST(TM) Automotive Services Show at the Meadowlands in Secaucus, New Jersey. NORTHEAST 2011 takes place March 18,19, and 20.

“Having BASF come on board to sponsor NORTHEAST 2011 just adds to the national influence and perception our show is gaining,” AASP/NJ President Jeff McDowell said from his shop in Fords, New Jersey.

“BASF's decision to be the official show sponsor of NORTHEAST 2011 was really an easy one,” explained Darlene Eilenberger, Marketing Director for BASF Automotive Refinish.

“We have displayed at NACE and SEMA, but we're well aware that there is also a very important customer base who may not always be able to travel to Las Vegas. The NORTHEAST show is an optimal place for us to catch up with our customers in the Northeast region while showcasing our newest products.

Given the increasing growth and influence of NORTHEAST, we wanted to show our support of this year's event in a big way,” Eilenberger continued.

BASF is also looking forward to participating in the educational portion of the show.

“With environmental legislation pending in the Northeast region,” Eilenberger added, “we felt 2011 was the perfect year to actively participate in NORTHEAST — not only to increase visibility on our line of waterborne refinish products, but also to educate and network with the thousands of repair professionals who will be directly impacted by it. We are very excited to showcase our brands and meet with NORTHEAST Show attendees.”

“This is the first time in all the show’s years that we have had a sole event sponsor for NORTHEAST,” McDowell said. “We are honored that such a prestigious company as BASF would incorporate its brand with NORTHEAST 2011, and we hope this is the start of a long and prosperous tradition.”

For more information on the NORTHEAST 2011 show and AASP/NJ, visit www.aaspnjnortheast.com and www.aaspnj.org.

The factory will undoubtedly receive a crush of job applications, much as Hyundai did when it was first increasing production.

“It was like a rock star was coming to town,” said Ashley Frye, vice president of production for Hyundai Motor Manufacturing Alabama. Mr. Frye said that when he wore his Hyundai jacket or shirt around town, people often approached him to ask, “Are you hiring? What can I do to get a job out there?”

For more than a year, workers at the Hyundai plant have been putting in 10 hours of overtime a week as part of their regular schedule, plus occasional Saturdays. With an average regular wage of about $20 an hour, the additional overtime hours mean workers here are earning more than many workers at the unionized plants up north.

The United Automobile Workers union has long tried to organize plants in the United States operated by foreign carmakers, most of which are in the South, but has yet to succeed anywhere.

For 2011, Hyundai is working to increase the plant’s output by an addi-

tional 10 percent, or 30,000 vehicles, Mr. Krafcik, the chief executive, said.

The plant builds the Sonata midsize sedan and the newly redesigned Elantra compact car.

Hyundai is opening its new stateof-the-art headquarters in Fountain Valley, CA, late next year. Officials said the new campus doubles the size and capacity of the current building, “giving Hyundai and its employees an environment conducive to growth as it prepares to help write the next chapter of a great American success story.”

John Krafcik reminisced that “As far as we’ve come since 1986, we still feel we're in the early stages of connecting the Hyundai brand to the U.S. consumer.

“We’ve always challenged convention—from our powertrain strategies, to our consumer partnership programs, to our unique Genesis and Equus retail approach,” Krafic stated.

“It’s authentically Hyundai to question the status quo and pursue our own vision of how things should be in order to best serve our customers. This willingness to challenge convention will continue to guide us these next 25 years.”

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