Autobody News January 2014 Great Lakes Edition

2 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

REGIONAL

of Gaithersburg, MD. . . . . . . . . . . . . . . 28

AASP-IL 2013 Owners Summit &

Caliber Collision Acquires Store in Temple, TX,

Arrest Made in Theft from Racine

Canadian Equity Pension Fund Buys

ASA-Michigan to Address Industry

CARSTAR Relocates Corporate

ASA-Ohio Supports Mechanical Shop

Central Collision Donates 5000+ Items

DOJ Says Grand Jury Indicts Two

CIC Panel Sees Benefits of Electronic Parts

Annual Meeting . . . . . . . . . . . . . . . . . . 23 Auto Parts Store . . . . . . . . . . . . . . . . . 11 “Short Pays” at Jan. 18 Event . . . . . . . . 7 Registration Legislation . . . . . . . . . . . . . 7 Automotive Parts Suppliers for Price

Fixing of Anti-Vibration Parts . . . . . . . . 27

Makes 36th New Store in 2013 . . . . . . . 4

Caliber Collision. . . . . . . . . . . . . . . . . . 29

Headquarters to Leawood, KS . . . . . . . 30 to Food Pantry . . . . . . . . . . . . . . . . . . . 23 Ordering, but Not Mandates for One

System . . . . . . . . . . . . . . . . . . . . . . . . . 1

MI Auto Parts Maker Expands Operations,

I-CAR Announces Partnership with IBM

Ohio State Bill Will Require Mechanical Shops

I-CAR Launches Introduction to

Undocumented Immigrants Start Testing for

LendDeck.com Says SBA Loans for

Adds 120 . . . . . . . . . . . . . . . . . . . . . . 11

to Register as Collision Repairers Now Do . 1

Illinois Drivers Licenses, 10 States Now

Kenexa to Develop New CMS . . . . . . . . 25

Carbon Fiber Online Course . . . . . . . . . 29

Body Shops at All-time Low. . . . . . . . . 28

Have No Doc Driving Law . . . . . . . . . . . 6

LKQ Contributes $25K to the Education

Makeover Grant . . . . . . . . . . . . . . . . . . . 3

LKQ Corp Buys Keystone Automotive

WCC Auto Body Program Secures $50,000

COLUMNISTS

Attanasio - For Body/Paint Tech Keenan

Foundation. . . . . . . . . . . . . . . . . . . . . . 24

Ops for $450M . . . . . . . . . . . . . . . . . . 26

LKQ Issues Aftermarket Wheel Recall,

Focus is on State of Connecticut . . . . . 24

Mitchell International Becomes Associate

Innovations Center is State-of-the-Art . . 14

Montana Body Shop Fined by OSHA

Mess it Up! . . . . . . . . . . . . . . . . . . . . . 15

NABC Announces 2014 Board of Directors. 31

Attanasio - The SEMA Garage-Industry Franklin - You Got the Sale—Don’t

Insider - Saying That Insurers Force Shops To Repair Cars Improperly is Nothing

More Than ‘Crying Wolf’ . . . . . . . . . . . 18

Member of ARA . . . . . . . . . . . . . . . . . . 29 Following Fatal Fire-Explosion. . . . . . . . 27

NHTSA Announces Tesla Battery Fire Probe. 28

NHTSA Says Safety Ratings Cannot

Exceed 5 Stars. . . . . . . . . . . . . . . . . . . 29

Yoswick - January Retrospective:

Professional Parts Group Earns NSF

NATIONAL

Progressive Insurance Chairman,

ASA Position, CAPA, CIC . . . . . . . . . . . 22

A Look Back at the Key Industry Events

and News of 2013 . . . . . . . . . . . . . . . . . 1

ABPA Files Suit Seeking to Overturn

Ford Design Patents . . . . . . . . . . . . . . . 26

Advance Auto Parts Gets New President,

Michael Creedon . . . . . . . . . . . . . . . . . 30

Artists for Education Has Donated $24K

to Education Repair Foundation . . . . . . 31

Asbury Automotive Group Donates

$120K in Parts . . . . . . . . . . . . . . . . . . 31

ASE Awards Top Scorers on

Certification Tests . . . . . . . . . . . . . . . . . 6

Attanasio - Are the Yellow Pages Truly Dead? . 8

Axalta Coating Systems Presents ASE Refinish

Technician of the Year Award to Leonard King

International Auto Collision Parts

Distributor Certification . . . . . . . . . . . . 26

Peter Lewis, Dies at Age 80 . . . . . . . . . 28

Safelite Group Acquires ‘Substantially All’ of Guardian Auto Glass LLC, Not Including

RV Glass Management. . . . . . . . . . . . . 27

San Antonio Repairer Tells TV News He’s Blowing the Whistle on Insurance

Companies Pressuring Shops to

Use Substandard Parts . . . . . . . . . . . . 19

Seidner’s Wins Completely Elite

Award for CSI Scores . . . . . . . . . . . . . 29

Walcom Puts Body Shop Owner in

a Good Mood. . . . . . . . . . . . . . . . . . . . 13

Woman Fights Ticket for Driving with

Google Glass . . . . . . . . . . . . . . . . . . . . 25

would allow the program to grow and expand. He noted that the new booth will particularly allow students to gain more experience at using waterborne paints.

“We now will have the technology to take our students into the 21st Century,” MacDonald said.

Each year, students in the program receive the opportunity to learn while repairing about 80 collision-damaged vehicles supplied by local vehicle owners.

Suzette Murray, dean for Business and Career Technologies at Waubonsee, said the new equipment should be installed before the beginning of the 2014–15 school year.

Murray said the grant “allows for much-needed equipment to be installed when our ordinary budget couldn’t support the purchase.”

In a letter to the Foundation in support of the Waubonsee program’s application, Rick Jarvis, vice president of Fox Valley Auto Paints in Aurora, Ill., said the Waubonsee program is already among the best at producing students whose skills are second to none, but acknowledged new equipment could help.“New booths would help the program get to the next level of excellence,” Jarvis said.

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

Indexof Advertisers

Hons Life is Reality TV on Fast ‘N Loud . 20

One of Illinois’ best auto body repair education programs soon will get even better, after Waubonsee Community College’s program became one of four nationwide to secure a $50,000 grant from the Collision Repair Education Foundation.

The Auto Body Repair Program at Waubonsee has been selected to receive the Foundation’s 2013 Ultimate Collision Education Makeover. The award will allow the program to install a new, modern automotive paint spray booth in which students can learn and train using state-of-the-art equipment.

The award was announced during the annual SEMA Show, held by the Specialty Equipment Manufacturers Association, Nov. 4–8 in Las Vegas.

The competitive process drew applications from more than 125 collision repair education programs from across the US. The top prizes of $50,000 were awarded to just four collision repair education programs.

Waubonsee will use the grant to upgrade its auto body repair facilities, adding a new paint room and a new clear-curtained auto body paint booth, a project estimated to cost more than $48,000. Andrew MacDonald, assistant professor of Auto Body Repair at Waubonsee, said the new facilities

Great Lakes

Contents

WCC Auto Body Program Secures $50,000 Makeover Grant

Serving Illinois, Indiana, Michigan, Ohio, Wisconsin and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2014 Adamantine Media LLC.

Autobody News

Box 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com Email: news@autobodynews.com

Audi Wholesale Parts Dealers . . . . 27

Jake Sweeney Chevrolet . . . . . . . . 10

Certified Automotive Parts

Lexus Wholesale Parts Dealers . . . 26

BMW Wholesale Parts Dealers . . . . 20 Association (CAPA). . . . . . . . . . . . 9

Classifieds. . . . . . . . . . . . . . . . . . . . 30

Creative Metal Manufacturing. . . . . . 4

Erhard BMW of Bloomfield Hills . . . 11

Erhard BMW of Farmington Hills . . 11

Laurel Auto Group of Westmont . . . 32 Loaner & Rental Insurance

by Northland . . . . . . . . . . . . . . . . 12

Malco. . . . . . . . . . . . . . . . . . . . . . . . . 5

Mazda Wholesale Parts Dealers . . . 31 MOPAR Wholesale Parts Dealers . . 21

Ganley Auto Group, Inc . . . . . . . . . 19

Morrison’s Auto Parts . . . . . . . . . . . . 8

Graham Auto Mall . . . . . . . . . . . . . . 15

Subaru Wholesale Parts Dealers . . 24

GM Wholesale Parts Dealers . . . . . 23 Griffin Automotive Group . . . . . . . . . 7 Honda-Acura Wholesale Parts

Dealers. . . . . . . . . . . . . . . . . . 16-17

Hyundai Wholesale Parts Dealers . 25

I-CAR . . . . . . . . . . . . . . . . . . . . . . . . 30

Intertape Polymer Group . . . . . . . . . 6 Jake Sweeney BMW . . . . . . . . . . . . 10

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

Toyota of Grand Rapids . . . . . . . . . 19

Toyota Wholesale Parts Dealers . . . 22

U.S. Body Products . . . . . . . . . . . . 18 Volkswagen Wholesale Parts

Dealers . . . . . . . . . . . . . . . . . . . . 29

Walcom USA . . . . . . . . . . . . . . . . . . 13

www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 3

Continued from Cover

Ohio’s SB 232

lipo said, noting that it’s “just taking a long time to get there.”

Collision repair shops have had to register with what is now the Ohio Board of Motor Vehicle Repair since 1997. The state slowly has been expanding the types of auto repair providers subject to the registration requirement, adding shops such as window tint operations since then.

Bob Redding, the Washington, D.C., representative for the Automotive Service Association, said the trade group has used Ohio’s collision repair legislation as a template for other states interested in implementing similar measures. It’s substantial, proconsumer and allows shop input, Mr. Redding said.

Michael Greene, executive director of the Ohio Board of Motor Vehicle Repair, said he believes the economy has led to greater support for expanding the existing law to include providers of mechanical repairs. As people keep their cars longer and put more money into repairing them, they want dependable mechanics.

“They just want to know that they can trust the people they take their car to,” Greene said.

Under SB 232, all relevant auto shops that perform more than five repairs a year would be required to register with the board. The current guidelines require a registrant to pay a fee for the registration and to provide proof of its taxpayer identification number, its vendor’s license numbers, its workers’ compensation and unemployment information, and its Environmental Protection Agency hazardous waste generator number, if applicable.

The shops also must have insurance with general liability and garagekeepers coverage, and show proof of that coverage. Registration would be $200 a year if the bill is passed as is, which would lower the cost by $25 annually for those already required to register. The board has officers that investigate and enforce the registrations.Registration is not a lengthy or difficult process, Greene said, but it is meant to assure that service providers are operating based on the same standards.

In addition to extending the registration requirement to mechanics, SB 232 would expand the motor vehi-

cle repair board’s ability to set standards, giving it room to look in the future at issues such as individual technician certification.

Charged-up mechanics Rad Air Complete Car Care and Tire Centers is a local company that would be required to register if the bill passes. Its president and CEO, Andy Fiffick, is all for it. “Our industry really needs to be brought into the 21st century,” Fiffick said.

Forcing companies to register could help to reduce the number of people working on cars without the appropriate training, Fiffick maintains. He said Rad Air requires its technicians to be ASE-certified—a designation of the National Institute of Automotive Service Excellence—but that such certification is voluntary throughout the business. He said he would support individual certification across the board.

Mark Cole, owner of Cole’s Garage Inc. in Akron, also would be required to register for the first time if SB 232 passes, and he’s a fan of the proposal. It would add credibility to the auto repair business, he said, possibly helping to shut down backyard mechanics. It also would put companies on a more level playing field because everyone registered as a mechanical auto repair shop would need to pay the same taxes and disposal fees.

Ron Meister, owner of Shaker Quality Auto Body in Cleveland, said he thinks registration for all auto repair shops is an excellent idea. His shop does both body and mechanical work, so it has been registered for years under the existing law.

Right now, anyone who can hang a sign can be a mechanic, which is a problem, especially with today’s hightech cars, Meister said. Mechanics also should be able to follow all the rules and regulations, he said, mentioning EPA requirements among them.

“If you can’t do that, you shouldn’t be working on these vehicles,” Meister said.

Ron Meister is among those shop owners who said they would like to see the state go a step further after shops are required to register and ask for certification or minimum qualifications from those working on vehicles.

Enough is enough But not everyone agrees. Floyd Bowen, a service manager at Corco-

4 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

ran’s Auto Repair Service in Hudson, wasn’t familiar with SB 232, but said he did know he’s opposed to additional oversight by the state.

Bowen said companies already are required to register with the state when they apply for a vendor’s license.

Bowen said while many legitimate businesses feel undermined by those mechanics working out of their garages or a small rented space, he thinks the more skilled companies can offer services the amateurs can’t. That means those competitors usually are here today but gone tomorrow, he said.

Sanfillipo of the Automotive Service Association said a big hurdle in the past to adding mechanical repair shops to the businesses subject to registration has been getting past the appearance that registration would add more regulations to small businesses.

And he noted some push-back to this latest proposal in a follow-up email to Crain’s, citing new and used car dealers who believe they are covered by the current licensing requirements, and by tire dealers. Sanfillipo said his group believes the bill would ensure mechanical repair shops were complying with tax laws and safety regulations.

Caliber Collision Acquires Store in Temple, TX, Makes 36th New Store in 2013

Caliber Collision Centers continues its expansion in 2013 with the announcement that it has acquired Temple Collision, a 23,500 sq. ft. facility located at 2702 West Avenue M, Temple, Texas. and reopened the location as Caliber’s new Temple center. This most recent acquisition marks Caliber’s 36th new location in 2013.

“Today’s opening of our new Temple center increases our total locations in the Texas market to 57 as we continue to grow organically and through strategic acquisitions across the western U.S.” said Steve Grimshaw, Caliber Collision Centers’ Chief Executive Officer. “We are committed to adding centers in every Caliber market that provide customer choice and industry-leading metrics.”

“Our new Temple center brings Caliber Collision’s locations to 158 as we continue to grow as the collision repair provider of choice in every community we serve,” added Mark Sanders, President and Chief Operating Officer for Caliber Collision Centers.

Caliber operates collision repair centers in Ariz., Calif., Colo., Nev., Okla., and Texas.

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Undocumented Immigrants Start Testing for Illinois Drivers Licenses, 10 States Now Have No Doc Driving Law Undocumented immigrants in Illinois have begun taking road tests to qualify for driver’s licenses, starting a process expected to be closely watched by other U.S. states that are preparing to implement similar laws.

Illinois is the largest U.S. state to implement legislation allowing undocumented immigrants to get licenses following in the steps of New Mexico and Washington. Ten states in 2013 including Illinois enacted laws allowing unauthorized immigrants to receive driver’s licenses or permits, according to the National Conference of State Legislatures. Implementation dates vary—California, the largest state by population, won’t begin issuing licenses until 2015.

“They represent a growing trend toward inclusive state policies that recognize that immigrants are part of our community,” said Melissa Keaney, an attorney with the National Immigration Law Center. “If someone’s going to drive, we want them to be sure they know the rules of the road.”

Keaney said “all eyes will be on Illinois” to see how their program works. About 25 states considered the issue in their 2013 legislative sessions, the NCSL said.

Supporters of the Illinois law said some 250,000 undocumented immigrants are already driving in the state, the fifth most populous. The new law requires them to take driver’s tests and have liability insurance, thus making the roads safer, the supporters said.

Illinois started taking appointments for testing Nov. 12, and has scheduled 5,500, according to Dave Druker, a spokesman for the Illinois Secretary of State.

Undocumented immigrants seeking a license in Illinois must show proof of insurance and, like other residents, must take a road test, a written test and a vision test. They also need to show they have lived in Illinois for a year by providing a rental agreement or other documents.

Druker said the program is starting slowly, with just four testing centers throughout the state and just six appointments in the Chicago office a day, to make sure everything goes smoothly.

The special licenses cost $30 and will have a purple border, as opposed to the red border of ordinary licenses, Druker said. They will be good for three years not four, and will be used for driving only—they can’t be used

6 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

to buy guns or board an airplane, he said.

The Illinois Association of Chiefs of Police opposed the law because it did not require fingerprinting, which would identify whether someone applying for a license has committed any crimes, association executive director John Kennedy said. Kennedy also said the group did favor requiring undocumented immigrants to take driving tests and get insurance.

The Illinois Highway Safety Coalition said unlicensed uninsured drivers are involved in almost 80,000 accidents in the state each year, resulting in $660 million in damages.

Unlicensed immigrant drivers account for $64 million in damage claims.

Licenses for undocumented immigrants have faced criticism. New Mexico Republican Governor Susana Martinez has repeatedly sought to repeal that state’s law, arguing it is dangerous and enables fraud.

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ASE Awards Top Scorers on Certification Tests

Forty-five automotive professionals were recognized at the fall board meeting of the National Institute for Automotive Service Excellence (ASE) held at the Fairmont Hotel in Newport Beach, CA. The annual awards banquet spotlights top scorers on the ASE certification tests.

Thirty-eight different companies from both OEM and aftermarket segments sponsored the individual technician recognition awards in the auto, truck, collision and parts categories, along with three instructor awards. In addition to looking for top scores on ASE tests, award sponsors examine on-the-job excellence, community service and other factors when selecting honorees. “ASE has been honoring the best of the best in our industry for more than 40 years, and this year we recognized fortyfive outstanding individuals from all across the nation,” said Tim Zilke, ASE president and CEO. “We couldn’t do this without the support of our many award sponsors, whose ranks include some of the best-known names in the industry. Their commitment to excellence is reflected in the talented individuals we recognize each year.”

ASA-Michigan to Address Industry “Short Pays” at Jan. 18 Event

ASA-Michigan has announced that Ray Gunder of Gunder’s Auto Center in Lakeland, FL, along with his attorney Brent Geohagen and attorney John Eaves Jr., will speak on short pays and PartsTrader on Jan. 18 at the Suburban Collection Showplace in Novi, MI. The meeting is open to any and all collision repairers who wish to attend.

Gunder and Geohagen will discuss their successful litigation efforts against numerous insurers, and Eaves will give an update on the injunction he filed in Mississippi against PartsTrader.

“Our responsibility as an association is to inform and educate the automotive repair industry to ensure that consumer vehicles are repaired properly and to the guidelines set forth by the vehicle manufacturer for their safety,” said Ray Fisher, president of ASA-Michigan. “There is a big difference between being cost effective on processing a claim and downright failure or refusal to pay for necessary work performed.

“The State of Michigan, under PA 300 of 1974 (the Motor Vehicle Service Repair Act), acknowledges that the automotive repair facility is the ‘expert’ when repairing a motor vehicle in the State of Michigan. The escalation of ‘short pays’ these past

years is threatening the collision repair industry here in Michigan and we’ve been looking for help on changing that. Many of our members have been watching what Ray Gunder has been accomplishing in Florida, feeling the similar ‘bullying’ and wanting to seek options – and so we did. I applaud the committee for putting this together with me.

“It’s unfortunate that our repair industry feels that lawsuits are the only remedy for proper compensation, especially when most of the differences are actually documented procedures, costs, materials or repair techniques that are needed. When you say, ‘We don’t pay for that,’ the next question is, ‘Then who does?’ The repair facility didn’t have the accident, the consumer bought a policy which contracted with a carrier what would be covered in the event of a loss, it’s damaged and it wasn’t before, so I kind of think, ‘Yeah, you do need to pay for that,’ right? In addition, if the repair facility is competitive, since when is ‘We only pay this’ meant to be acceptable? Can I buy an insurance policy the same way while getting the same coverage? No, because there are variables that cost money for the risks involved.”

ASA-Ohio Supports Mechanical Shop Registration Legislation

by ASA staff

Ohio State Sens. Edna Brown (D-11), Tom Patton (R-24) and Peggy Lehner (R-6) recently introduced Ohio Senate Bill 232, legislation establishing a mechanical shop registration program in their state. The bill has been referred to the Senate Committee on Commerce and Labor.

Ohio Senate Bill 232 extends the jurisdiction of the Motor Vehicle Repair Board to anyone who performs mechanical repairs on motor vehicles, requires motor vehicle repair facilities to register with the board, creates the Motor Vehicle Repair Operator Vendor’s License Suspension Fund, makes changes to the Motor Vehicle Repair and Window Tint Operator Law, and dissolves the existing Motor Vehicle Repair Board and replaces it with a new board of the same name.

“Mechanical repair” is defined as “Any alteration or maintenance, diagnostic or repair service procedures that are performed on and affect or potentially affect the operation of a motor vehicle.”

Jamie Chilcoat, president of ASA-Ohio from C&C Tire in Harrison explained, “Collision repair facilities have been registered with the Motor

Vehicle Repair Board for over a decade; however, the mechanical side of the industry currently has no oversight or professional board. We feel that registering mechanical repair shops with the board would help legitimize the mechanical repair industry.”

Chilcoat also believe that the bill will benefit consumers. “Improper automotive repair is one of the leading consumer complaints filed with the Ohio Attorney General’s office. Automotive repair shops that choose to break the law pose a significant threat to consumers,” said Chilcoat. “If SB 232 is passed, customers will be able to identify those automotive repair facilities that are registered with the Board and they will have peace of mind knowing that they are dealing with a legitimate repair facility that has met the criteria to be registered to do business in Ohio.”

Joe Sanfillipo, ASA-Ohio past president and current board member, said: “We have been very pleased with our state collision shop registration bill and ASA believes the next step is to put in place a mechanical shop registration law for the state of Ohio. We encourage repairers to contact their state legislators asking that they support this bill.”

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Social Media for Shops

Are the Yellow Pages Truly Dead? with Ed Attanasio

Many people predicted that movie theaters would close right and left when VHS tape players started appearing in stores, but you know how that went. With 3D and IMAX, movie theaters are more popular than ever and buying a ticket to see one of the newest super hero films will cost you an arm and a leg. When digital book reading devices came out, experts were claiming that real books printed on paper were soon going to be obsolete, but that hasn’t happened either.

So, when I keep hearing that the Yellow Pages are dead and body shops aren’t using them anymore, I’m hesitant to jump on that bandwagon, at least for now. I’m not going to be one of the industry’s pallbearers until I know the facts and talk to some experts. So, I did my due diligence and polled advertising professionals and marketing gurus from different parts of the country. I even tried to talk to the people at the Yellow Pages, but after leaving multiple phone messages, they never called back. I gave them a chance to make their case, but they chose not to, which might tell you something right there.

Last month, the Yellow Pages landed on our porch and I promptly recycled the book again. This ancient directory is delivered to my house several times a year and it always ends up in the trash almost immediately.

But honestly, am I the only one who does this? It seems like such a waste.

Every time the new Yellow Pages arrive, I also notice that they’re smaller and smaller. Back in its heyday, the phone book was huge and big enough to use as a chair booster for my niece or act as an effective door jam. But, now my niece is grown up and the phone book does not weigh enough to keep any door open. At 1,200 to 1,500 pages, the phonebook was a big part of every American household as recently as 10–12 years ago, but the one that arrived the other day contained only about 500 pages.

Yes, the phonebooks are a little thinner, but the new ones get delivered every year like clockwork, so why is everybody declaring the demise of the Yellow Pages? Is it propaganda disseminated by Google, or is it actually

true? Today with the Internet, cell phones and other smart devices, information about businesses and their phone numbers are so much easier to find. Back in the day, we had to rely on the Yellow Pages and hoist around a huge book while turning countless pages. Now with a couple clicks, we can get this information and a lot more within literally seconds. Plus, it’s a greener alternative because trees don’t have to die as a result.

I talked to an individual recently who has been selling ads for the Yellow Pages for the past 15 years and his mantra was “If it ain’t broke, don’t fix it!” He chose to remain anonymous.

“Everyone is saying we’re going online and the actual phonebooks are archaic, but you should ask all my clients that,” he said. “My faithful Yellow Page advertisers who know how to use the medium are tracking great results. One reason is that many of their competitors have opted for other forms of advertising. So, they can now dominate their market. People who are still willing to spend money and choose to market themselves to local businesses use the Yellow Pages and their numbers are keeping them in the book.”

Jim Schriver is a media consultant who works with small to mediumsize companies in the San Diego, CA, area, advising them on emerging media and online marketing. Schriver says that the Yellow Pages are no longer effective for body shops and that’s why they’re opting out right and left.

“If you’re a landscaping company, a plumber or you clean pools, the old school phone books are probably a good fit for you, because believe it or not, people still refer to them for services such as these,” Schriver said. “Even small retail operations with 1–2 locations, such as florists, tuxedo rental companies and clothing stores will get some significant response from the Yellow Pages.

But for body shops, I would say they’re not an ideal match. In a DRPdriven environment, the process for finding a body shop usually goes through an insurance company. It’s rare that someone would go to the Yel-

8 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

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

low Pages to find a shop, because their insurer has already provided a list of their preferred shops. The money that a collision repairer is spending on the Yellow Pages can be spent much better elsewhere, such as online advertising, outdoor advertising and/or broadcast. The overall goal is to get your name out there, so that when the potential customer gets in an accident, they remember your name—it’s basic branding. But the Yellow Pages don’t achieve that and that’s why I tell body shop owners to stay away.”

Larry Sawyer owns Da Bomb Media in Phoenix, AZ, a company that helps companies on web site development, SEO and social media.

Sawyer is advising all of his clients to bail out of the Yellow Pages yesterday, if possible. “One of my clients was spending $1,300 every month on the Yellow Pages and back in the 1980s it got him a ton of business,” Sawyer explained. “But now, it’s a

waste of money, because people are relying on the Internet. The Yellow Pages tried to develop an online entity, but it was too late and Google has already claimed that spot. So, I took my customer’s $1,300 and invested it in a lot of online advertising programs, offered by Yelp, Google, Facebook and other forms of social media. As a result, they’re getting some amazing results and that $1,300 is going a long way. I can’t say that the Yellow Pages are dead, but they sure are limping along!”

David DeClue owns a marketing company called Tah Dah! in Muncie, Indiana. Even though most of his clients can’t be considered technically savvy, they still know that the Yellow Pages are experiencing their final days.

“Sure, some companies are still hanging on to the old days and advertising in the Yellow Pages, but most of See Yellow Pages Dead?, Page 25

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Continued from Cover

A Look Back

tion of standards. He said CIC, by its published mission statement, is solely a forum where “industry stakeholders come together to discuss issues, build broad understanding, find common ground and communicate…findings and possible solutions.”

“We’re not going to saw sawdust any more with the topic,” Avery said.

“Because CIC comes up to a point and stops. Then if companies want to take it from there and create inspections and verifications and programs, that’s for them to figure out and offer to the repair industry. That’s someone else’s bailiwick.”

May A memorial service was held in early May for Matthew Ohrnstein, managing director of the Symphony Advisors consulting firm and the former CEO of Caliber Collision Centers, who died at age 57. Ohrnstein pioneered consolidation and the entry of Wall Street investment in the collision repair industry, adding 68 Caliber shops during his 7-year tenure with

the firm, thanks in part to investment capital from insurance companies and private equity funds. Ohrnstein went on to be involved in many of Matt Ohrnstein the shop mergers and acquisitions in the industry after he left Caliber in 2004.

June Ten years after the Auto Body Association of Connecticut (ABAC) filed a class action lawsuit against The Hartford, a Connecticut Superior Court judge awarded them $20 million in punitive damages. This was in addition to the $14.7 million in compensatory damages a jury in the lawsuit awarded the repairers (about 1,500 are represented in the class) in 2009.

The suit charged that The Hartford suppressed labor rates by using unfair and deceptive trade practices to steer customers to its DRP shops, and by pressuring appraisers to enforce artificially low labor rates.

“The court has placed the entire (insurance) industry on notice that forcing their appraisers to violate the

code of ethics by writing estimates at unreasonably low labor rates must stop,” attorney David Slossberg, who represented the repairers in the case, said.

The Hartford is appealing the ruling. The ABAC has a similar lawsuit pending against Progressive.

July Despite a last-ditch effort by insurers calling for a veto, Rhode Island Gov. Lincoln Chafee signed into law unique legislation that requires a vehicle-owner’s written consent before a vehicle is declared a total loss if the cost of repairs is less than 75 percent of its value.

Rhode Island shop owner John Petrarca had this advice for shops working on legislation in their own states.

“You have to get engaged and stick with it. Nothing gets done in a day,” Petrarca said. “We had so many disappointments so many times. But you know what? We picked ourselves up, we got back in there, we kept informing. I believe the only way we can correct our industry is through legislation. Because the other side will absolutely do nothing unless you have

legislation.”

August PartsTrader last summer began eliminating the “fax-only” option which had allowed shops to use the system to buy from vendors not participating in PartsTrader. Also in August, the Mississippi Collision Repair Association and more than two dozen body shops, dealers and other parts suppliers in that state filed suit in an effort to prevent State Farm’s mandated use of PartsTrader. The suit alleges that State Farm’s implementation of PartsTrader tortiously interferes with existing business relationships shops have with their parts vendors.

September State Farm’s PartsTrader mandate also led to actions by both ASA and SCRS last fall. SCRS issued a new position statement, condemning insurer mandates, “particularly those that specify required vendors, business platforms or internal processes that must be followed.”

And ASA’s Risley sent a letter to State Farm saying the association is “taking a firm stance against insurance company mandates that limit a

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repairer’s right to choose their vendors, distributors and suppliers.” Risley wrote that State Farm’s mandated use of a vendor “that solely financially benefits State Farm is more dictatorship than partnership.”

October ASA then went a step further and sent a letter to state insurance regulators and attorneys general, asking if State Farm’s mandate to use PartsTrader violates state law.

“We believe this mandatory parts procurement program stifles competition and harms both the consumer and the small businessperson,” Risley said.

November A year after Toyota introduced the concept of “predictive estimating,” the automaker announced a partnership with Mitchell International to deliver Toyota recommended procedures and bulletins within Mitchell’s new mobile/online estimating system in early 2014.

When a user adds a part to an estimate, all of the appropriate Toyota vehicle information will automatically appear, including related Toyota bulletins or procedures and information on such things as one-time use fasteners.

Toyota’s Rick Leos said he expects other automakers to make similar announcements in 2014.

December The Automotive Body Parts Association (ABPA) last month filed suit against Ford Motor Company, challenging the validity of the automaker’s design patents on collision repair parts.

The suit alleges that Ford “uses design patents on automotive body repair parts to limit their distribution and increase cost of the repair parts.”

In 2009, Ford settled two of the legal battles it waged to protect its design patents through an agreement making LKQ Corporation the only distributor allowed to sell certain nonOEM parts for Ford vehicles. In exchange, LKQ paid a royalty fee for each of the parts it sold, and agreed not to challenge the validity of Ford’s design patents.

John Yoswick is a freelance writer and has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (visit www.CrashNetwork. com). He can be contacted by email at: jyoswick@SpiritOne.com.

MI Auto Parts Maker Expands Operations, Adds 120 Mayco International LLC, a designer and manufacturer of auto parts, plans to spend $2.9 million to renovate and expand operations at its plant in Hartford City, IN, creating 120 jobs by 2016.

The upgrades to the 110,000square-foot facility will allow the Sterling Heights, MI-based company to fulfill increased client orders for sunshades and other automotive parts for interior trim, the company said Thursday. New equipment for the plant should be installed and operational by February.

The facility currently employs 18 workers, which have focused on interior car elements such as floor panels and arm rests, plant manager Dan Stiehl. Employment at the facility in recent years has vacillated from as

much as 50 to 100 workers, depending on the requirements of contracts from clients.

The plant in Hartford City, which is located about 80 miles northeast of Indianapolis, already has begun hiring production operators and maintenance associates for its expanded operations, Stiehl said.

The Indiana Economic Development Corp. has offered Mayco up to $880,000 in tax credits and $80,000 in training grants based on the company’s job creation plans. The tax credits are performance-based, meaning they cannot be claimed until jobs are filled.

Mayco is a supplier of car parts with more than 6,000 employees in 47 plants across the U.S., China, India, Russia, South Africa, South Korea and Australia.

Arrest Made in Theft from Racine Auto Parts Store A 25-year-old Racine, WI, man was arrested minutes after grabbing two bank bags full of cash from a nearby auto parts store, police said. The man walked into Gordon Auto Parts, 1401 King Drive, and inquired about some merchandise. The man shoved the owner, grabbed the bags and fled. Min-

utes later a man matching the robber's description was taken into custody. The store owner suffered minor injuries, and police recovered the bank bags and cash. Anyone with information on the robbery is asked to call the Racine Police (262) 635-7756, or Racine Crimestoppers, (262) 636-9330.

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Continued from Cover

CIC Panel

tronic parts procurement itself. Darren Huggins, national collision director for of the Van Tuyl Auto Group, which operates 37 body shops and 75 dealerships in 10 states, said parts procurement systems give shops for the first time a transparent tool to measure vendor performance.

“When was the last time we really focused on holding parts suppliers accountable for our customer satisfaction, quality, cost and speed?

It’s never happened,” Huggins said. “My own dealerships struggle sometimes to get parts off the shelf and to me in a timely manner.

Darren Huggins The insurers are mandating that we perform. But we’ve never ever made the parts supplier perform like they have to perform today. We’re finally putting the parts department on the dime. If nothing else, there’s a silver lining there.”

“As a former shop owner, I know I had only anecdotal evidence of how well my suppliers were performing,” agreed Mike Quinn, now president of uParts, an electronic parts procurement system that went live in Southern California last year.

Quinn said uParts provides objective reporting of performance it offers suppliers, shops and, if a shop wishes, its insurer partners. This “procurement efficiency index,” he said, will help shops improve their performance by choosing vendors with high scores based on objective measurements such things as fill rates, delivery time and order accuracy.

Supplier Sees Benefits Terry Fortner of LKQ Corporation said that as electronic parts procurement systems integrate with supplier inventory systems, they will reduce the problem of what he called “ghost inventory,” a supplier suggesting they have a part when in fact they don’t or it is “three states away.” It will also reduce the need for companies like his to have 1,400 sales people answering calls because only 10 prevent of the orders it currently receives come in electronically.

“What I will tell you is that the industry, in my opinion, is behind the

curve,” Fortner said. “The efficiency [of the systems] is not to a point where we would like to see it, but we know that every electronic order we get, we see our internal credits and allowances dramatically decrease. “That is a big win for us. It’s a big win for the industry.”

Randy Stabler, who operates six Pride Auto Body shops in Southern California, agreed that he sees an upside to the industry ferreting out those shops that order parts to get an invoice only to return the part. He said he chose an electronic parts Randy Stabler procurement system that would best allow his company to “get all the right parts but also be able to demonstrate which of our suppliers are more efficient.” He said he’s anxious to have the systems better integrate with his company’s accounting and other technology systems (as well as those of his suppliers) but he likes the idea that the systems may shed some light on “the costs that our industry has absorbed” when using alternative parts.

“I’ve got no problem with alternative parts as long as they work on the car, as long as I get them in a timely manner, and as long as if something goes wrong with them, someone else pays the costs to rectify that problem rather than me,” Stabler said.

“The electronic parts procurement engines will allow for us to have transparency on that.”

Mandates Questioned But the panel was less positive when it came to the subject of insurers mandating the use of a particular system.

Without naming the companies involved, Jim Sowle, body shop director of Sewell Lexus in Dallas, Texas, said he recently chose to drop a direct repair program because of its mandated use of a particular Jim Sowle system.

“Running a system that we’re forced to use that’s going to add additional time and has no value-added just doesn’t make sense to us,” Sowle said, noting that his shop orders most of its parts from the dealership’s own parts department.

12 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

During the panel discussion, between 50 and 75 repairers at the meeting responded to several survey questions about electronic parts procurements systems. Although 12 percent said they don’t currently use such a system, 40 percent said they use a system of their choice, 4 percent said they use a system only based on agreements they have with insurers, and 44 percent said they do both.

Of those using a system of their choice, 78 percent said it has had a positive effect on their efficiency (another 12 percent said they have seen no change in efficiency). But 92 percent of those using a system due to an insurer agreement said they have seen a negative impact on efficiency.

Nick Bossinakis of Overall Parts Solutions said that 92 percent fits with his experience of not being able to locate a shop or vendor with much positive to say about PartsTrader. As the developer of a competing parts procurements system, it may not be surprising that Bossinakis predicted it will “take another three or four years…and millions and millions of dollars” to get PartsTrader “to where you (repairers) want to get it.”

But Bossinakis did praise State Farm for pushing for a needed change in the industry.

“How are we sitting here in 2013 and still phoning and faxing orders,” Bossinakis said. “At some point, whether we agree or disagree, you have to respect the process of change.

My hat is off to State Farm and to PartsTrader, because the way I look at it, sometimes you have to regress to progress. Maybe I’m idealistic and maybe I’ll be out of business five years from now. Who knows? But there is value to what has happened.”

“My personal opinion is we’ve been regressing for far too long in this industry, and I think it’s time to stop,” shop owner Dingman said, drawing applause from some CIC attendees.

John Yoswick, a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also 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

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Walcom Puts Body Shop Owner in a Good Mood In 1977, Shawn Moody, 53, was a junior in high school and opened the first of the Moody’s Collision Centers in Gorham, ME. Now his business consists of eight locations that repair approximately 12,000 vehicles annually. “In 2001, Moody’s opened our second location, and now we open a new one roughly every other year.”

Moody’s Collision opened its first location in 1977 and today the company consists of eight locations

One reason for Moody’s explosive growth can be credited to his company’s employee ESOP stock ownership plan. “Our co-worker owners have a strong desire to embrace new technology,” Moody said. “But, you have to stay up on it and continually integrate it into your business, or

you’ll get left behind. We really do our homework to make sure any new piece of equipment makes sense for us. We just don’t rush to buy it just because it’s the newest thing.”

Moody’s due diligence when researching new technology starts by polling other shops that are already using the technology. When Moody found out about Walcom® USA, LLC ThermoDry Technology (TD) system distributed by Collision Design Center, LLC, he travelled to another state to see it in action, he said. “We went up to a shop in New Hampshire and asked to talk to their painter. I didn’t want to talk to anyone else. I know that it’s the guy who uses it every day who’s going to give me a straight answer. He said he really liked it and told us that it decreased his drying time. He said he was using less product and the clear laid out better with the TD3 PRO.” In simple terms, the TD3 PRO system heats the paint and atomizes it more efficiently than cold-compressed air. The machine regulates the heat right at the spray gun inlet, so that there’s less static pressure at the spray gun nozzle. When painters find out

that the system minimizes die back, alleviates modeling, and saves materials, they immediately prefer it over the old way of applying paint. Once they learn how to use it, they’ll realize that things they used to have to do—such as denibbing and buffing— are minimized, while consistently getting a superior finish on every vehicle.

After testing the TD3 PRO,

Moody has purchased seven Walcom units, all of which are paying big dividends for this burgeoning MSO

Moody purchased seven TD3 PRO units, all of which are paying big dividends in their locations.

Moody is seeing the results in both the bottom line and the finished product.

“We’re saving at least 15 percent on paint and labor efficiency. Before we got

these machines, we were waiting 10-12 minutes for the waterborne to flash between coats, but now the TD3 PRO cuts that down about five minutes. When we did the math, we figured we’re saving 1,000 hours on drying time by using this machine. That’s phenomenal!” In addition, Moody said, “The paint and the clears are drying so much faster that there’s less chance for dirt in the paint, which results in less buffing.”

Moody’s painting staff is already adept at using the TD3 PRO units, he said. “Our painters worked with the Walcom unit for a couple days, and they adapted quickly. Once they get a feel for the proper air pressure and decreased flash times, there is a very shallow learning curve. If you’re interested in this equipment, I would suggest getting it in your shop for a full day and have someone there from Walcom demonstrate firsthand the labor and material savings. Seeing is believing!”

Read more about Moody’s Collision Centers at http://www.moodyscollision.com, Collision Center Design at www.collisioncenterdesign.com, and Walcom USA at: http://www.walcom-usa.com.

www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 13

SEMA Show Goes On

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

The SEMA Garage-Industry Innovations Center is State-of-the-Art with Ed Attanasio

The modern automotive garage first appeared in the 1920s and, in addition to parking cars in them, inventors began to utilize them for different purposes. Walt and Roy Disney started making cartoons in a Hollywood garage in 1923 and in 1938. William Hewlett and David Packard rented their own garage space in Palo Alto, CA. Apple Computer started in a garage and bands like Metallica and Van Halen were originally formed in garages. Worldchanging innovaSEMA’s tions take shape Vice-President of every day and OEM and Product many have hapDevelopment pened in a garage.

Programs Mike That’s why it’s apSpagnola runs the propriate that organization’s SEMA has a SEMA Garage-InGarage-Industry dustry Innovations Innovations CenCenter ter, a facility where tomorrow’s new products will be developed today in this state-of-the-art facility.

Located adjacent to the SEMA headquarters in Diamond Bar, CA, the 15,000 sq. ft. SEMA Garage contains more than $2 million in tools and equipment and was specifically designed as a resource to help SEMA members fast track the process of getting new automotive products from the drawing board to market. Eleven automotive professionals work at the facility full-time, each carefully handpicked for their knowledge, skills and experience.

Containing four different sections (known as “cells”) the SEMA Garage-Industry Innovations Center has been opening in stages since the spring of last year. The SEMA Garage’s ‘cell one’ is a complete emissions-certification lab containing a chassis dyno. Cell two is a fullyloaded garage with an extensive array of tools and cutting-edge equipment and cell three is a media center containing a photo cove that can accommodate a full-size vehicle for photography. Cell four is a large meeting room to perform training.

The facility is under the direction of SEMA’s Vice-President of OEM and Product Development Programs Mike Spagnola, who has 40 years of specialty auto parts experience, including more than 20 years of product development and project-vehicle work. With a focus on heightening SEMA’s services to its members, Spagnola was hired early last year to collaborate with the SEMA OEM and vehicle technology departments while serving as a resource and liaison for members and automakers.

Spagnola is obviously proud of the SEMA Garage and anxiously looks forward to all of the future possibilities it will facilitate in the future, he said. “When this position presented itself, I jumped all over it. This facility is going to change the industry and that’s why I had to be involved.

Things that SEMA members could not do easily or affordably previously will enable them to get an edge on the market by using the SEMA Garage.”

One of the main functions of the SEMA Garage is to serve as the main location for most of SEMA’s measuring sessions—a SEMA and OEM partnership that provides members with access to upcoming vehicles before they hit dealerships, in most cases. Members take their turns scanning, examining and measuring the vehicles for accurate, hands-on specs used to begin prototyping. In the past, measuring sessions required manufacturers to travel to various locations, typically within a two-day timeframe, and carry the gear needed to record accurate vehicle data. Those who have previously attended SEMA measuring sessions will notice a significantly enhanced set of assets for developing new products at the SEMA Garage, according to Spagnola.

Several exciting things have already taken place at the SEMA Garage, according to Spagnola.

“We’ve already held some pretty significant events here, including our first-ever Mega Measuring Session in July, which featured five popular vehicles for members to preview—the Chevrolet Silverado, Toyota Tundra, Ford Focus ST, Toyota HiLux and

14 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

Ford Ranger ST. In addition, we held the Honda/Acura Measuring Session

junction with Foose Design and WD40 Co. and through a partnership with the Alex Xydias Center for Automotive Arts. “This was a great experience and I know we’ll be doing more things like this here at the garage,” Spagnola said. “It was great to see some of the leading SEMA manufacturers working alongside underprivileged teens and young adults to complete the truck The SEMA Garage’s classroom can hold about 80 people as part of the SEMA Cares and is ideal for training, product seminars and media events Charities program.” here, featuring 14 versions of the At the SEMA Garage, members Honda Grom, CTX700 and Goldwing will be able to not just measure, but F6B motorcycles, the Pioneer SXS also tear down and work on the all-terrain vehicle and Odyssey mini- newest vehicles coming to the marvan. The ‘14 Acura MDX midsize ketplace and then use the facility’s 3D SUV and RLX mid-luxury sedan printer as well. “With their own measwere also available for members to urements and CAD files, members explore in 2013.” can use our 3D printer to build test Spagnola sees the SEMA products and install them on the vehiGarage’s role as being an idea incu- cle, Spagnola said. “This cutting edge bator where new products will germiprinter is an amazing tool and memnate and grow. “It’s all about bers are already excited about using information and these measuring ses- it.” sions are so valuable for any company For members who want to train that wants to develop products for dealers or consumers on their newest these vehicles,” Spagnola said. “In products and systems, a full classroom facility is available for their use at the SEMA Garage.

Holding approximately 80 people, it is ideal for training, product seminars and media events. Members can also do installation training in the garage and perform dyno runs to show off the newly developed products. Video Measuring a vehicle using the latest tools at the SEMA photography can also be acGarage-Industry Innovations Center in Diamond Bar, CA complished in the garage, addition, body shops and collision cove, and classroom or dyno room, accenters that work on specific brands cording to Spagnola. can come here and measure these cars SEMA members are encouraged before they even hit the market. So, to take advantage of this industrywhen a 2014 vehicle comes into their owned facility for product developshop, for example, they’ve already fa- ment, fitment, research and much miliarized themselves with it. They more. For more information about the now have an advantage and can be SEMA Garage—Industry Innovations more efficient when they’re writing Center, including upcoming events estimates.” and availability, contact Mike SpagThe SEMA Garage was also re- nola at mikes@sema.org. cently used as the installation hub for the exclusive WD-40/SEMA Cares www.autobodynews.com Foose Ford F-150. The build was perCHECK IT OUT! formed at the SEMA Garage, in con-

On Creative Marketing

Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses.

He can be reached at (323) 871-6862 or at tbfranklin@aol.com.

See Tom’s columns at www.autobodynews.com under Columnists > Franklin

You Got the Sale—Don’t Mess it Up! with Thomas Franklin

A while back I was sitting in a body shop waiting area, waiting to present a new product. I watched a potential customer pull up in a relatively new BMW. He came in and took a seat.

Front desk people were handling paper work and one customer. Estimators were busy in another room.

The guy waited for about 20 minutes and got up and drove off. Most people hate to wait, but even more than that, they hate to be ignored. I wasn’t a customer. I was there to make a sale so I didn’t mind waiting. But this guy was clearly a good potential customer and his business was lost because of an enormous sales error.

The fact that this guy walked into the shop and wasn’t instantly turned off by an offensive smell, loud noise, or chaotic appearance so that he immediately turned around and left, means he was already half sold on using the shop’s services. When a potential customer walks into a shop, he

or she is the end result of many possible marketing efforts. He or she might have been one of many who saw the shop’s advertising and was responding. Or he may have been referred by one of the shop’s prior customers. Or a dealership or insurance company could just have sent him. Or possibly he saw the shop’s signs and decided to come in. But whatever brought him to the door, he was the one who responded. Dozens of others who saw ads, signs or referrals didn’t come in.

The fact that he did come in made him an incredibly valuable prospect. Losing that one customer wasted all of that marketing effort. And worse than that, since existing customers can be a shop’s best source of new business, all of the additional prospects this customer could have referred are also lost to the shop.

There are three things people hate when it comes to contacting a business: inattention, waiting and inter-

ruptions. There is a difference between waiting and inattention. Waiting is generally a finite length of time defined by some observable element, like a line of people. The phone company will generally tell a caller how many calls are ahead, or how long the wait will be until one’s call is handled.

Inattention feels like one is being ignored, as though they are not even there at all. The guy with the BMW got that impression. Shops should take a tip from doctor’s offices: When you come in, they hand you some forms to fill in. They may not tell you how long you will wait, but at least you know you’re in process. Many shops are already remiss in not getting customer information forms filled out to provide future marketing information.

Someone coming into a shop should, at the very least, immediately be given a form to fill in.

Some businesses have become aware of how much customers hate in-

terruptions. In a clothing store, a sales lady is waiting on a customer when a rude shopper interrupts her sales presentation asking a question. A welltrained sales lady will immediately say, “You’ll have to wait a minute. My customer has priority here.” And that customer will be highly gratified by that courtesy, treated with the respect and dignity deserved by her being there first. A shop estimator who accepts phone calls and other interruptions while writing an estimate for a customer sitting there, risks alienating that customer and losing the sale.

No matter how good a shop’s marketing may be, a customer who is unhappy with the sales process when actually in the shop never says to herself or himself, “I don’t like the way they’re handling me, but I liked the advertising and marketing so much I’ll stay here and give them my business.” There are several phases to

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www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 17

Inside Insurance with The Insurance Insider

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

Saying That Insurers Force Shops To Repair Cars Improperly is Nothing More Than ‘Crying Wolf’ Shops repair vehicles and insurance companies reimburse insureds for their loss. That is a simple explanation as to what happens after an accident.

So how is it possible that something so simple can be so confusing, challenging and rife with accusations of impropriety?

pair shops actually know how to do a proper and safe repair.

I would challenge any shop in the United States to produce ONE single example of an insurance company refusing to pay for the proper repair or replacement of a safety related component or structural repair. If you do have an ex-

After the most recent series of industry meetings, rants, press releases and whining sessions about insurance companies forcing shops to repair cars improperly, I offer you two words: get real. This is the most pathetic, unsubstantiated claim I’ve ever heard. My compadres in the insurance industry are equally fed up with this biased, unprofessional and unfounded allegation. There’s been more crying and sniffling than you would hear in most nurseries and daycares across the country. I’m inclined to start producing “No Crying” buttons to be passed out at the industry’s next event.

In the movie, “A League of Their Own,” Tom Hanks’ character said ‘there’s no crying in baseball.’ I am here to say that there is ‘no crying in the collision industry.’

If you are not familiar with the crying that I’m talking about, let me explain. Some collision repair shops are trying to convince the media and industry that insurance companies refuse to pay for a safe and proper repair, and that that’s what leads to bad repairs. The only thing more ridiculous than that is saying all collision re-

ample, please also include the name and contact information of your customer so I can let them know that you knowingly repaired their car wrong because their insurer wouldn’t pay.

I think it’s time we truly identify the root cause of all this noise and melodrama. There are items that shops and insureds are negotiating that shops aren’t being reimbursed for – items that have nothing to do with the safety of the repair. That is the issue.

Nobody is asking you to section a part in an incorrect location. Nobody is telling you not to replace a damaged safety related component so the insurance company can save money. Nobody is telling you to straighten a part that requires replacement when it has been compromised.

The grandstanding that is taking place is unproductive and playing out worse than an episode of “All My Children.” Which, by the way, was cancelled.

The fact is there are some bad actors in the industry who are more interested in being on the pulpit and acting like they are auditioning for a role in “Desperate Housewives” than they are in trying to resolve real prob-

18 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

lems. I suppose not resolving the problem allows them to stay in the limelight and at the forefront of controversy. Crying wolf usually will get the attention of someone once, maybe twice. But the third time is usually the end of the road.

I’m suggesting that you may have hit that end. So you have a few choices. Keep crying and become more irrelevant. Turn around with your tail between your legs and find something else to champion. Or perhaps travel a different road and look to find ways to help resolve some of the inherent conflicts that even I am willing to acknowledge exist.

I would also request that if you are going to send me an example of an insurance company not paying for a safe and proper repair, don’t focus on aftermarket parts. Aftermarket parts aren’t the Second Coming of Satan.

They have been installed on millions of cars since the late 1970s and early 1980s. Please provide me a list of the

deaths and lawsuits won where it was proven that aftermarket parts were the cause. It shouldn’t be that hard if it’s as prevalent an issue as many of you seem to think. You have your choice of millions of cars on the road with aftermarket parts.

Having a tough time thinking of even one? That’s kind of what I thought.

Nobody listened to the boy in the old story who cried wolf, and I’m fairly confident nobody is listening to the current crop of industry whiners.

Identify what your true issues are and stop trying to mask them with rants of “safety” and “someone is going to die.”

If I completely missed the mark and insurers are refusing to pay for safe repairs, you have a responsibility to your customer and business to do the right thing. Share your story with “60 Minutes” and maybe you can retire a very rich person. The boy who cried wolf but was right… now who wouldn’t pay for that story?

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San Antonio Repairer Tells TV News He’s Blowing the Whistle on Insurance Companies Pressuring Shops to Use Substandard Parts A San Antonio collision repair shop owner says he is blowing the whistle on car insurance companies and was interviewed by Local News Reporter Emily Baucum of News 4. The news report was broadcast on Nov. 28.

Dale Tabaka says insurance companies are pressuring body shops to use parts from junkyards to fix the most important parts of your car—the steering and suspension.

Tabaka says the way a major insurance company wants to fix an elderly woman’s car is just plain irresponsible.

Inside Dale’s Collision Repair, there’s a baby blue Chevy Cruze that was rear-ended a few months ago.

“This car is owned by a little old lady who could literally be your mother or your grandmother,” Tabaka says. He says she’s insured by the number-one company. The company will pay for a new axle—but as [News 4 reported], not all axles are created equal.

“We not only want to fix it right,” Tabaka says. “We want to fix it according to industry standards.” He showed News 4 a brand-new part

from the factory that meets those standards. “This part is approximately $1,100,” Tabaka says. But for half the price, the insurance company wants him to use a rusted part it got from a salvage yard, he said.

Dale Tabaka is Interviewed by News 4

“One of these ears on the axle is bent in,” Tabaka showed News 4.

He said he can’t guarantee that when the car’s on the highway, the rusted axle won’t break and put lives in danger. “I’ve had cases where other shops have called me and said, ‘Hey, I put this junkyard part on the way the insurance company wanted us to, and as we were driving, the hub bearing froze up,’ ” Tabaka said. So he told the insurance company he’ll use their junkyard axle, but only if

he can replace all the moveable parts so it meets industry standards.

“They turned a blind eye,” Tabaka says. “They said they don’t recognize those standards.”

“The shocking truth is,” said the news report, “most car policies allow the insurance company to use whatever part they want.”

“Pretty much all the insurance companies are doing it,” Tabaka says. “And what scares me is, the average consumer has no knowledge of it.” He’s fed up, and becoming an advocate for customers like the elderly woman who owns the Chevy.

“At the beginning of the month I actually put her in a rental car on my own dime,” Tabaka says. He’s going to bat with her insurance company and educating drivers, one car at a time.

Read More and see the interview at: http://www.news4sanantonio.com/ news/features/top-stories/stories/collision-repairman-blows-whistle-junkyard-repairs-6133.shtml. See also http://www.youtube.com/watch?v=mBezBiei2Y&feature=youtube

Continued from Page 15

Franklin

marketing, but the last phase may well be the most important of all. When a prospective customer comes in, or at least responds, this final phase of marketing begins. Assuming just because the prospect responded or came in means the sale is done, is a dangerous assumption. This is the time the real sale begins. Every effort has to be made to welcome the prospect and overcome any doubt or skepticism that he or she has come to the right place. In stores, prospective customers walk in and turn around and walk out all the time. Stores expect shoppers like these to come and go. But a collision center can’t afford to lose prospects that come in. The price of getting them this far is much too high and the loss of having them leave without buying is far too costly. No one comes in and buys just because they liked the advertising or marketing. They have to be sold.

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Media Matters

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

For Body/Paint Tech Keenan Hons Life is Reality TV on Fast ‘N Loud with Ed Attanasio

Twenty-six years old and already a reality TV show star? For Body/Paint Tech Keenan Hons, his 15 minutes of fame happened fast and randomly.

One day, he was working at a body shop and the next day he was on Fast ‘N Loud (Discovery Channel), a hit reality show starring motor mastermind Richard Rawlings and mechanical prodigy Aaron Kaufmann, as they search up and down through Texas and surrounding states for forgotten and derelict classic cars to buy and restore at their Gas Monkey Garage in Dallas, TX. In each episode, Richard, Aaron and his crew work day and night to finish a classic car and deliver it to auctions with the goal of making money and turning heads. But the same question seems to come up every time they do a build—will their blood, sweat and beers translate into cold hard cash?

Each episode starts when Richard wheels and deals for a good price on a vehicle, and then it’s back to the Gas Monkey Garage to come up with the design plan and begin the major teardown. Then, the major work (and all of the fun and confusion) begins. It’s always a race against the Keenan Hons, 26, clock to get these went from a cars finished bebody/paint tech to time is reality show star lit- cause erally overnight, money at Gas when he landed a Monkey Garage job on Fast ‘N Loud and the faster they (Discovery Channel) finish their cars, the quicker they can get them to auction. That’s the basic premise of Fast ‘N Loud, a show that has gained in popularity and was recently picked up for its third season.

For Hons, he might as well call the show Fast ‘N Unexpected, Fast ‘N Radom or surely Fast Money, because Keenan works full-time at the Gas Monkey Garage and gets paid twice— as a body tech restoring some of the finest cars in the world and as a reality star as well. Not bad for a guy who just turned 26. We sat down with Keenan recently to discuss his role on the show and how it has changed his life.

Q: You’re not listed on Wikipedia yet? Every reality star gets their own Wikipedia page.

A: Maybe I should write one?

Q: If the show keeps getting good ratings, they’ll get someone to do it for you (both laugh).

A: That’ll be fun.

Q: Tell us how it all happened from being a barely paid body/paint tech to a reality star?

A: I started going to my local community college Tarrant Community College (TCC) in Fort Worth, TX to study paint and body right out of high school. I’ve always been a car guy and my best friend Kenny and I would work on cars all the time. We both decided to go to school to study paint and body, but he died in a motorcycle accident shortly after moving to Fort Worth. I went through their whole collision repair program—taking body classes the first year and paint the second year. I always liked the paint side of the business, but I realized you have to do the body work first, so I did the body [training] first, but my heart was in paint. When I went to Fort Worth to attend school about seven years ago, I moved into a house that was just two blocks away from KC Mathieu’s house. (KC is the painter on Fast ‘N Loud) I noticed he had a few hot rods out front, so one day I just went over there and started talking to him. It was a total coincidence that he’s a painter and I was studying paint in school at that time.

Once I got to know KC, I saw that he was always working on something interesting, either at his place or at his dad’s shop, so I began going over there to make a little money on the side.

After that, KC opened up his own shop and there was more work for me to do.

Q: At that time, Fast ‘N Loud was still not in the picture, correct?

A: Yes, the whole thing was so random. KC and I would joke all the time saying we should have our own reality show, but we never even suspected it would come to this. I worked with KC for almost two years at KC’s Paint Shop after getting out of school.

After a while, KC wanted to get away from the shop and pursue other things,

20 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

so I got a job as an assistant manager at a MAACO location. I did that for almost a year and it was a very fastpaced environment and then later I got a job at Richards Paint & Body Shop.

KC and I worked there together and we were still doing work on the side.

KC left Richards and I kept working

the scenes. Finally, they put me on for the final show of the first season (The Apache episode). That was really exciting!

Q: You had never been on TV before?

A: No. At first, seeing myself on TV was strange, but now I’m used to it and it feels normal. I think everyone on the show was shocked when it started getting great ratings. When I gave two weeks notice and quit my job at Richards, I figured I would give this reality show thing a three-month shot. The failure rate of reality shows is very high, but right off the bat this show Hons is always right in the middle of all the craziness feawas a hit. The numbers just tured on Fast ‘N Loud kept climbing and the buzz about the show started to build. This is there and doing side jobs for KC. something big, I thought. I don’t have Then, he got on the show and I started to go back to fixing cars—at least for prepping cars for the first season of See Reality TV, Page 24 Fast ‘N Loud off-camera and behind Original BMW Parts

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Historical Snapshot

—John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988.

He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.

January Retrospective: ASA Position, CAPA, CIC with John Yoswick

20 years ago in the collision repair industry (January 1994) The Automotive Service Association (ASA) Collision Division has developed a position paper to reiterate the fundamental rights of the collision repair facility when purchasing parts and materials.

ASA’s position is that the collision repair facility retains the right to select and purchase parts and materials from the supplier of its choice without restrictions, limitations or control by other parties.

The position was developed to help preserve and protect the rights of collision repair facilities as the industry phases in electronic date interchange, enhanced automation and electronic parts sourcing. These technology advances will benefit the industry. However, depending on how they are implemented, they could jeopardize the amount of control the collision repair facility has in the parts, materials and vendor selection process.

—From an ASA press release.

15 years ago in the collision repair industry (January 1999) Non-OEM fenders received equal or higher ratings than their OEM counterparts in the latest parts demonstration held at the Collision Industry Conference (CIC).

“This is a very good day for CAPA,” Jack Gillis of the Certified Aftermarket Parts Association (CAPA) said, noting the difference in the outcome of the latest demonstration compared to one held last fall, which he had termed, “Not one of our better days.”

Over the course of the meeting in Palm Springs, CA, two right fenders, one made by Ford and one made by non-OEM parts manufacturer Tong Yang, were installed on a 1996 Ford minivan. Nine out of 10 CIC participants, without know which part was which, gave a “thumbs up” to both parts; both were given almost identical ratings in terms of fit, finish and “salability.”

Similarly, two left fenders were hung on the vehicle during the meeting, and while neither part received

high marks, the non-OEM fender made by Jui Li outshone the Ford fender, particularly in terms of fit.

When asked, Could you sell it to your customer? 63 percent of CIC participants answered “yes” about the nonOEM part; less than half said they could sell the Ford replacement part.

The demonstration, the third conducted at CIC recently, was the first “blind” test and the first to compare OEM replacement parts and non-OEM parts. All of the parts’ packaging and labels were removed or concealed from both the installing technician at a Palm Springs shop, and from the CIC participants rating the parts on a scale of 1 to 5.

California shop owner Kelly Roe, who organized the demonstration, said she purposely chose to replace non-adjacent panels rather than a hood and fender as in past demonstrations.

“People in the past were saying the hood doesn’t fit because the fender is wrong, or the fender doesn’t fit because there’s a problem with the hood,” Roe said. “We were trying to get away from that sort of argument.

We also were trying to do a blind test so we could get away from some of the perceptions created by people knowing what the parts were.”

—As reported in Autobody News.

CIC continued to conduct these parts demonstrations at several more of its meetings, with OEM parts generally outscoring non-OEM parts when judged by CIC participants.

10 years ago in the collision repair industry (January 2004) The Collision Industry Conference (CIC) halted its plans for an independent audit of the effectiveness of programs that purport to certify the quality of non-OEM parts.

At two CIC meetings in 2003, the CIC Parts and Airbags Committee described its plans to ask such organizations as the Certified Automotive Parts Association (CAPA), the Manufacturer’s Qualification and Validation Program (MQVP) and parts distributor Keystone Automotive – each of which certifies or brands certain nonOEM parts as superior – to fund and participate in an independent audit by

22 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

Participants at the CIC meeting held in Palm Springs, CA, in January of 1999, evaluated OEM and non-OEM parts that were installed on a vehicle during the meeting

a qualified third-party.

But participants at CIC in Palm Springs voted 40-6 (with at least an equal number not voting) to scrap the

plan just days before it was set to launch.

“There are several non-OEM parts entities in our industry that are

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telling us that they provide a superior part for ‘x’ reasons,” said Rod Enlow, co-chairman of the CIC Parts Committee, saying there is confusion about which programs’ parts are actually comparable to OEM. But opponents to the plan said the resulting report could be perceived as a CIC endorsement or indictment of one or more of the programs.

“There’s no reason that CAPA, MQVP, Keystone or whoever wants to participate can’t do exactly what you’re saying [without CIC’s involvement],” Rick Sherwood, owner of the Detroit-based consulting firm OEM Collision Repair Resources, said at CIC in Palm Springs. “My concern is CIC is going to be in the position at the end of the audit of having MQVP, CAPA and Keystone or whoever participates saying, ‘The CIC audit process proved we deliver quality parts...’ CIC is not in a position to have that happen.”

For his part, Enlow said he hopes the committee’s efforts will result in an audit even without CIC’s involvement.

“If not, it’s going to put to us right back to square one, where you read the rhetoric, you go to the websites, you make your decision on who makes

good parts and you use them,” he said.

– As reported in CRASH Network (www.CrashNetwork.com), January 18, 2004. No such audit ever took place. The MQVP certification program no longer exists, but a new certification program operated by NSF International, was launched in 2010.

5 years ago in the collision repair industry (January 2009) In the same week in January the Collision Industry Conference (CIC) was held in Scottsdale, AZ, State Farm distributed a new Select Service agreement to participating shops nationwide, and the company’s George Avery spent several minutes at CIC to discuss the new agreement.

He described the changes as primarily “minor” or “editorial,” and that unlike the transition from State Farm’s “Service First” to “Select Service” program, the change in the agreement was not coinciding with a reduction in the number of shops participating in the program.

Wording in the agreement has been changed, he said, to give shops the option of conducting a more thorough tear-down of a vehicle before uploading an initial estimate (provided

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The indemnification section of the agreement had been “too onesided,” Avery said, and it has been changed to say that both the shop and State Farm will each “hold the other party fully harmless against any lost, damages, claims or expenses” sustained as a result of negligent or intentional acts or omissions of the other.

Several changes that Avery did not discuss at CIC revolve around parts and pricing. The term “prevailing competitive price” no longer appears in the document, a change Avery later said the insurer made because it felt that was term that might not be clear to

some repairers. Instead, the agreement only references “pricing identified through State Farm’s survey process.”

As in the previous agreement, State Farm says it may enter into agreements with manufacturers, distributors and suppliers of automotive parts. The new agreement states that “any part pricing agreements negotiated by State Farm are in addition to the price offered” by the shop and that “State Farm shall receive the benefit of both” the shop’s offered pricing and “the price or discount negotiated through any part pricing agreements” with manufacturers or suppliers.

—As reported in Autobody News.

Central Collision Donates 5000+ Items to Food Pantry Central Collision Center, a multi-location collision repair company serv-

Mike and Nancy Caruso, owners of Chicago-based Central Collision, delivered the company’s donations on Monday, Nov. 25 with the help of Central Collision employees and Alicia’s House volunteers

ing the Chicago area, delivered 5,413 items collected through its annual

Thanksgiving food drive to Alicia’s House Food Pantry, a local non-profit organization that strives to alleviate hunger.

The company asked employees, customers and their business partners to donate non-perishable food items and unopened toiletries from Nov. 121. During that time frame, the company collected a total of 2,572 items.

Central Collision then provided a 100 percent match on all donations plus additional food items, yielding its final donation total.

“I’m so impressed that our team was able to nearly double our donation total from last year’s food drive,” said Mike Caruso, president and owner of Central Collision. “That just shows you the type of people they are—caring and committed, whether it’s at work or working to help others.”

AASP-IL 2013 Owners Summit & Annual Meeting

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On Saturday, November 23, AASP-IL held their 2013 Owners Summit and Annual Meeting at Pheasant Run, located at 4051 E. Main St. in St. Charles, IL. Executive Director Michael Lane believes “the meeting went extremely well.” There were 156 attendees present at the meeting, nearly triple the amount that attended last year’s event. Lane notes “we expected to expand the awareness of the collision industry in Illinois on the pervasive issues prevalent in the PartsTrader system and how it is creating a tortuous interference between shops and their suppliers.” Lane believes that the highlight of the event was the presentation given by attorneys John Eaves and Brent Geohagan who spoke about injunctions to stop PartsTrader in MS and FL, in addition to

discussing their efforts to seek restitution for short pays by insurers. Lane believes that association-sponsored events are very important and beneficial to the collision repair industry as a whole; “too many shops think the problems and concerns they are having are limited to their market area.

These meetings let shops know they are not alone in this battle to ensure the wellbeing of their shop, and there are answers out there that the industry atlarge can rally around… Without these types of meetings, it is difficult to get a unified message out to a large segment of the industry.” AASP-IL will continue their efforts to support their member shops and the entire industry in 2014 when they host a series of seminars geared toward providing solutions to marketing, estimating, workforce and other key issues to operating a profitable collision repair shop.

www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 23

LKQ Issues Aftermarket Wheel Recall, Focus is on State of Connecticut On October 30, LKQ Corporation and Keystone Automotive Industries Inc., collectively known as LKQ-Keystone, initiated a recall on a specific

that purchased this wheel to alert them to the recall. The company will replace the wheel on consumers’ vehicles at no charge, and they have also

aftermarket replacement aluminum wheel, part number ALY63934U20N, identified on the inside of the wheel’s casting as ALY99435U20N, likely sold between September 1, 2010 and April 30, 2013.

The recall is being conducted because of potential defects that could cause the wheel to fail and which could, in turn, lead to an accident resulting in serious injury or death.

The recalled part is a 7-spoke wheel design, containing the TWC logo, and the inside of one of the spokes will reflect part number ALY99435U20N. LKQ-Keystone sent letters to consumers and collision repair shops

informed shops that are affected that the company will replace the part and reimburse them for the costs associated with this replacement.

Thus far, the recall only seems to have affected shops and consumers in the state of Connecticut, and Tony Ferraiolo, President of the Auto Body Association of Connecticut (ABAC), feels that dissemination of information pertaining to this hazard is “extremely important to the consumer and the shop that installed this wheel.

National attention to the potential dangers of using inferior wheels is also important at this time since wheel failures such as this can result in serious injuries or death.”

Continued from Page 20

Reality TV

now.

Q: I’ve heard there’s no reality in reality television, is that true?

A: Not on Fast ‘N Loud. Everything we do is real and nothing is fake, but in certain cases we’ll do something and they won’t’ get it on film, so we have to reenact if for the camera.

The camera crew has us re-do it, but it’s not like we’re making it up. It’s definitely reality, but it might be shown in a different order from what it actually took place.

Q: The two main stars of the show are Richard Rawlings and Aaron Kaufman and they seem like a formidable duo. Rawlings finds the cars and Kaufman manages the restoration and they get into some heated discussions.

What’s your relationship with Richard and Aaron?

A: Let’s put it this way—Richard enjoys his life and frankly, I can’t keep up with him! The older ladies are in love with him and it cracks me up. If you look at the show’s Facebook page, you can see he’s got quite a following.

Aaron is very meticulous about the

cars and they seem to work well together. The biggest arguments they’ve gotten into revolve around time and money, of course. Aaron wants the best build he can and Richard is always watching the time. Both Richard and Aaron act the same on-screen and off-screen. Both of them have a lot going on, so it can get crazy at the shop. Flipping these classic cars is a crapshoot, and you can see that they don’t always make money. Now with the popularity of the show, we’re getting trade-offs with the cars from companies that are sponsoring the builds, so the risk is not as much as it was during season one. It helps making the build less risky, but it still is a gamble every time we do a car.

Q: Has the show changed your feelings about collision repair?

A: Yes, definitely. Meeting KC and getting on Fast ‘N Loud really got me excited about collision repair and painting cars, because for a while there I was seriously thinking of getting out of it. I was planning to go back to school and study computer science, honestly, but the experience of being on a show like this re-ignited my passion for this industry. And the rest is history.

24 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

Though the specific reason for the recall has not been released, ABAC is trying to determine what prompted the recall. Shops that may have installed one of these wheels should contact their customers to inform them of the recall.

Questions and concerns about the recall should be addressed with LKQKeystone’s Milford location at 800330-3745. For general questions regarding this recall, please contact LKQ at 877-539-7322.

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LKQ Contributes $25K to the Education Foundation

LKQ Corporation has contributed $25,000 to the Collision Repair Education Foundation. LKQ’s contribution enhances the Education Foundation’s ability to offer grants and scholarships to career and technical schools and colleges and their students. By increasing educational opportunities, the students of today become tomorrow’s industry professionals. The $25,000 gift from LKQ will support the Collision Repair Education Campaign fund which provides annual student scholarships, school grants, and the annual Ultimate Makeover $50,000 school grant. CREF Executive Director Clark Plucinski noted, “LKQ has been a consistent supporter of the Collision Repair Education Foundation on several levels. Through LKQ’s part donations to collision school programs, monetary donations, and having representation on our Board of Trustees, LKQ’s has shown a strong commitment to assisting the future professionals of the collision industry.

It is only through this continued support that CREF can help collision instructors in producing productive, efficient entry-level staff for the industry. We thank LKQ for their continued support.”

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I-CAR Announces Partnership with IBM Kenexa to Develop New CMS I-CAR has announced a $2.6 million partnership with IBM Kenexa to design a new content management system(CMS) that will streamline and improve the development, delivery and quality of collision repair training across the United States.

I-CAR launched its new training system on Dec. 9, with the debut of its all-new Introduction to Carbon Fiber Online course. An additional 40 courses, spanning all I-CAR training delivery methods, will follow shortly on Dec. 16. All future courses will be developed and delivered in this training system, and the entire I-CAR curriculum of over 100 courses will be updated and enhanced by the end of 2015.

To express the significance of this investment, consider a comparison: LCMS is to I-CAR what CAD (computer-aided design systems) has been to the automotive industry. This new training system simplifies management of curriculum content and will significantly reduce the time needed to develop or update courses, allowing I-CAR to bring more relevant training to the industry at a much faster rate. Benefits will be evident across all I-CAR delivery platforms, improving not only the learning expe-

rience for students, but also improving the delivery tools available for instructors nationwide.

Bringing new and updated courses to the industry more quickly is only a fragment of the improvements the industry will experience. ICAR will enhance all of its delivery platforms; self-study online, instructor-led classroom, instructor led virtual training, as well as the in-shop welding training series will merge with the ability to: • Improve student learning comprehension and retention • Enhance the quality of class content with HD-quality videos and improved interactivity • Offer modern educational features such as more intuitive online navigation • Provide an online reference library that will make class materials readily available to students 24/7, replacing the need to rely on and store CD-ROMs as reference material. The reference library also includes automatic, real-time course updates through personalized myI-CAR training accounts, so once the class is taken, the student will always have access to the most recently updated material for reference.

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Mon 8am - 8pm Tue-Fri 8am - 6pm Sat 8am - 1pm inss.partsmgr@rohrman.com www.indyhyundai.com

The undertaking of this new training system has been over two years in the making, and is in response to changing needs within the industry.

“Vehicle manufacturers continue to launch a growing number of new models and technologies and I-CAR is keeping pace to support the evolving training needs of the industry,” says John Van Alstyne, I-CAR CEO & president. “Over the coming threeyears, we expect to see over 200 new or re-engineered vehicles launched in the U.S.. That’s a lot of change for the industry to absorb. By enhancing our training development and delivery, ICAR is better poised to arm the industry withpthe knowledge and skills needed, doing so at the speed of change, to address the technical tsunami that is sweeping our industry.”

IBM’s Kenexa focuses on social business capabilities while gaining actionable insights from the enormous streams of information generated from social networks every day.

Kenexa is also a leading provider of recruiting and talent management solutions.

For more information on I-CAR, please visit them online at I-CAR.com.

Continued from Page 8

Yellow Pages Dead?

them are getting out and embracing other forms of print advertising,” DeClue said. “The phone carriers are getting out of the directory business, which is a bad sign. In 2002, usage of the Yellow Pages was around 15 billion impressions and now it’s been cut in half. Idearc, the company spun off when Verizon divested itself of its Yellow Pages division when it filed for Chapter 11 bankruptcy in 2009, along with R.H. Donnelley and Ambassador Media Group the same year.

So, to answer your question—the Yellow Pages are still alive, but just barely.”

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Woman Fights Ticket for Driving with Google Glass A California woman pleaded not guilty to what is believed to be the first traffic citation alleging a motorist was using Google’s computer-in-an-eyeglass. The device, known as Google Glass, features a thumbnail-size transparent display above the right eye.

The technology will not be made widely available to the public until 2014, but defendant Cecilia Abadie was one of about 10,000 “explorers” who received the glasses earlier this year as part of a tryout.

Her case touches several hot-button issues, including distracted driving, wearable technology that will one day become mainstream, and how laws often lag technological developments.

Abadie was pulled over in October on suspicion of going 80 mph in a 65 mph zone on a San Diego freeway.

The California Highway Patrol officer saw she was wearing Google Glass and tacked on a citation usually given to people driving while a video or TV screen is on in the front of their vehicle.

Abadie, a software developer and tech true believer, pleaded not guilty to both charges in San Diego traffic court.

Her attorney William Concidine told The Associated Press that she will testify at a trial scheduled for January that the glasses were not on when she

was driving, and activated when she looked up at the officer as he stood by her window.

The device is designed to respond to a head tilt by waking itself up.

Concidine also said the vehicle code listed in the citation applies to video screens in vehicles and is not relevant to mobile technology such as Google Glass.

The CHP declined comment on Concidine’s assertions.

“This has to play out in court,” spokeswoman Fran Clader said.

At the time of Abadie’s citation, the agency said anything which takes a driver’s attention from the road is dangerous and should be discouraged.

The lightweight frames are equipped with a hidden camera and tiny display that responds to voice commands. The technology can be used to do things such as check email, learn background about something the wearer is looking at, or to get driving directions.

Legislators in at least three states - Delaware, New Jersey and West Virginia - have introduced bills that would specifically ban driving with Google Glass. Chris Dale, a spokesman for the tech giant, said he was not aware of any other tickets issued for driving with Google Glass.

www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 25

ABPA Files Suit Seeking to Overturn Ford Design Patents The Automotive Body Parts Association (ABPA) announced its decision to take legal action against Ford Global Technologies. ABPA is challenging ‘the validity and enforceability of Ford’s design patents on common collision repair parts.’

On November 25, ABPA filed a lawsuit in the United States District Court for the Eastern District of Texas against Ford Global Technologies, LLC that seeks to have design patents for body parts ruled invalid. Ford Global Technologies is a wholly owned subsidiary of Ford Motor Company that manages intellectual property and technology commercialization for Ford Motor Company.

The complaint seeks to have the court declare Ford Global Technologies’ design patents invalid and permanently enjoin the company from enforcing automotive body repair parts patents against ABPA members.

According to the complaint filed

by ABPA, Ford Global Technologies “… has threatened to sue one or more ABPA members for alleged design patent infringement for selling automotive body repair parts allegedly covered by design patents owned by Ford Global Technologies.”

The complaint also asserts that due to the threats of litigation against ABPA members, “Ford Global Technologies’ actions have deprived ABPA Members of the economic opportunity to compete in the marketplace for automotive body repair parts for Ford Motor Company automobiles and have improperly distorted the marketplace by decreasing the supply and increasing the cost of automotive body repair parts for Ford Motor Company automobiles.”

In a letter from Ed Salamy, executive director of the ABPA, posted on the association’s website, states, “The basis of our lawsuit is to challenge the validity and enforceability of Ford’s design patents on common collision repair parts. The continued sale of these parts is of paramount concern not just for ABPA members and their livelihoods, but also to millions of American consumers who depend on quality alternative collision repair parts for cost effective repairs.”

Salamy also serves as executive director of the Quality Parts Coalition, a group representing parts suppliers and insurers, seeking permanent legislative change to U.S. design patent law, legislation generally refered to as

Professional Parts Group Earns NSF International Auto Collision Parts Distributor Certification

The Professional Parts Group has earned its Automotive Collision Parts Distributor Certification from NSF International. NSF International is an independent testing and certification organization with nearly 70 years of testing and certification experience.

Developed to respond to the needs of collision repair shops, insurers and ultimately consumers, the NSF Automotive Collision Parts Distributor Certification Program’s key requirements include automotive parts traceability and recall processes. To earn certification, the Professional Parts Group demonstrated the effectiveness of its records and inventory systems in tracking orders and parts through the supply chain. The Professional Parts Group also met the following criteria required for NSF Automotive Collision Parts Distributor Certification: ● An ISO 9001-certified quality management system for its distribution locations in Denver, CO, and Atlanta, GA; corporate office in San Dimas, CA; and warehouses in Chicago, IL, and Charlotte, NC. ● A defective parts procedure including a customer parts complaint process. ● The ability to administer a manufac-

turer’s recall. ● When necessary, a formal corrective action to complaints and an immediate recall plan.

Having met all of the certification requirements, the Professional Parts Group is authorized to use the NSF Certified Distributor mark on its website and promotional materials. The company also appears in NSF’s online certification listings and will undergo ongoing quality system audits to maintain certification.

“NSF International’s Automotive Distributor Certification Program highlights the essential role distributors, such as the Professional Parts Group, play in providing quality parts,” said Bob Frayer, director of NSF International’s Automotive Parts Certification Programs.

Added Christopher Northup, CEO and managing partner of Professional Parts Group, “Our designation as an NSF International Certified Distributor is a key factor in meeting customer’s expectations. The Professional Parts Group is focused on quality and integrity at every level, and every professional in our company contributed to our success in achieving this important certification from NSF.”

26 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

the PARTS Act. In 2009, Ford reached an agreement with LKQ Corporation to settle litigation filed by Ford over collision parts. As part of that agreement LKQ agreed not to challenge the validity of Ford’s design patents and, in exchange, LKQ would become the only distributor of non-OEM collision parts covered by Ford patents.

In 2008 the ABPA called for support for design patent exemptions for aftermarket parts. In 2006, Ford had filed a suit to stop the importation of aftermarket versions of certain F-150 truck parts. In 2007, a ruling by the International Trade Commission (ITC), which named several ABPA members, awarded the design patent protection that Ford sought for seven separate alternative parts for the 2004-2007 Ford F-150. The decision prohibited the sale of aftermarket replacements for these parts.

A statement published on the association website says: ‘The continued sale of these parts is of paramount concern not just for ABPA members and their livelihoods, but also to millions of American consumers who depend on quality alternative collision repair parts for cost effective repairs.’

LKQ Corp Buys Keystone Automotive Ops for $450M

LKQ Corporation announced that it has signed a definitive agreement to acquire Keystone Automotive Operations, Inc., a leading distributor and marketer of specialty aftermarket equipment and accessories in North America, for $450 million.

The transaction is expected to be completed in the first quarter of 2014 and is subject to customary closing conditions and necessary regulatory approvals. Established in 1971, Keystone has over 1,500 employees with 25 locations serving more than 20,000 specialty retailers and equipment installers throughout North America, offering a broad product line of over 300,000 SKUs from over 800 suppliers. Keystone markets products to serve the following six category segments: truck and off-road; speed and performance; recreational vehicle; towing; wheels, tires and performance handling; and miscellaneous accessories. “LKQ will become a leading player in the specialty aftermarket equipment and accessories business with this acquisition,” stated Robert L. Wagman, President and Chief Executive Officer of LKQ Corporation.

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DOJ Says Grand Jury Indicts Two Automotive Parts Suppliers for Price Fixing of Anti-Vibration Parts

A Cleveland federal grand jury returned an indictment against two executives of a Japanese automotive supplier for their roles in an international conspiracy to fix prices of automotive anti-vibration rubber parts sold to Toyota and installed in U.S. cars, the Department of Justice announced today.

The indictment, filed in U.S. District Court for the Northern District of Ohio in Toledo, charges Masao Hayashi and Kenya Nonoyama, both Japanese nationals, with participating in a conspiracy to suppress and eliminate competition in the automotive parts industry by agreeing to allocate the supply of, to rig bids for and to fix, raise and maintain the prices of antivibration rubber parts sold to Toyota Motor Corp., Toyota Motor Engineering & Manufacturing North America Inc. and affiliated companies (collectively Toyota) for installation in automobiles manufactured and sold in the United States and elsewhere.

Automotive anti-vibration rubber products are comprised primarily of rubber and metal, and include engine mounts and suspension bushings. They are installed in automobiles for the purpose of reducing road and engine vibration.

The indictment alleges, among other things, that from as early as

March 1996 until at least December 2008, Hayashi and Nonoyama and their co-conspirators conducted meetings and communications in Japan to reach collusive agreements. The indictment alleges that the conspiracy involved agreements affecting the Toyota Corolla, Avalon, Tacoma, Camry, Tundra, Sequoia, Rav4, Sienna, Venza and Highlander.

“Today’s indictment reaffirms the Antitrust Division’s commitment to hold executives accountable for actions that corrupt the competitive landscape and harm consumers,” said Renata B. Hesse, Deputy Assistant Attorney General for the Department of Justice’s Antitrust Division. “The Antitrust Division continues to work closely with its fellow competition enforcers abroad to ensure that there are no safe harbors for executives who engage in international cartel crimes.”

Hayashi and Nonoyama are charged with a violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

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Montana Body Shop Fined by OSHA Following Fatal Fire-Explosion The U.S. Department of Labor’s Occupational Safety and Health Administration has cited Rick’s Auto Body of Missoula for nine serious violations of workplace safety and health standards. The employer faces $51,100 in proposed fines as a result of an August inspection following a fatal accident at the facility.

In August, Bruce Hall, an employee of Rick’s Auto Body, died from burns suffered when static electricity caused solvent fumes to ignite.

“In this case, the employer disregarded necessary safety measures, placing employees in harm’s way,” said Jeff Funke, OSHA’s area director in Billings in a press release announcing the fines. “The inspection, prompted by a workplace fire, identified the improper storage of flammable liquids at the facility and inadequate grounding and bonding methods for the transfer of flammable liquids.”

According to OSHA, the serious violations identified during the investigation include improper storage of flammable and combustible materials, use of storage containers not approved for flammable goods and failure to store overhead materials securely. The employer was also cited for failing to label emergency exits,

ensure adequate controls for leakage or the escape of flammable materials, and ground electrical equipment around combustible materials. Additionally, the site was improperly ventilated and lacked sufficient fire sprinkler systems, endangering individuals in an emergency. A serious citation is issued when there is a substantial probability that death or serious physical harm could result from a hazard about which the employer knew or should have known.

The company has 15 business days from receipt of the citations and proposed penalties to comply, request an informal conference with OSHA’s area director, or contest the findings before the independent Occupational Safety and Health Review Commission.

The shop’s owner, Rick Booth, said they met with OSHA officials in Billings over the summer, who agreed to reduce the fine. Booth said they have paid the fine, and no longer recycle paint at the shop. He said they now work with Safety Clean, which picks up and hauls away paint waste from the shop.

Booth said he and his employees are working to remain in compliance with OSHA to ensure a similar accident never happens again.

Safelite Group Acquires ‘Substantially All’ of Guardian Auto Glass LLC, Not Including RV Glass Management

Safelite® Group, the nation’s leading vehicle glass company and owner of Safelite AutoGlass®, has reached an agreement to acquire substantially all of the vehicle glass repair and replacement assets of Guardian Auto Glass, LLC, a joint venture of Guardian Industries Corp. and LRST, LLC. Additionally, Safelite® Group has reached an agreement to acquire the vehicle glass insurance claims management assets of Guardian Glass Network, not including its RV glass claims management operations. Both contracts were signed on December 1, 2013 with an expected closing at the end of business on December 31, 2013.

Auburn Hills, MI-based Guardian Industries was founded in 1932.

Guardian Auto Glass currently includes approximately 253 employees in 60 retail locations throughout the U.S. Guardian Auto Glass provides vehicle glass repair and replacement services in 12 states with a heavy emphasis in Ohio, Virginia, West Virginia and Florida. Guardian Auto Glass’ management team will assist in the transition.

Guardian Glass Network operates its vehicle glass claims adminis-

tration operation in Worthington, Ohio, and has 21 employees, 13 of whom will join Safelite® Solutions.

The remaining Guardian Glass Network employees will continue to operate the RV glass claims program.

“Guardian’s well-established brand, commitment to high-quality customer service, and wide footprint made it attractive to Safelite® in its goal to become the “natural choice” for vehicle glass repair and replacement services in the U.S.,” said Tom Feeney, president and CEO. “The acquisition positions Safelite® to grow business in the impacted geographies. Additionally, the acquisition of the Guardian Glass Network will support the growth goals of Safelite® Solutions aimed at helping insurance clients achieve policyholder delight.”

“Safelite® is committed to its retail auto glass and insurance claims businesses as demonstrated by its dynamic growth in recent years,” said Mike Morrison, president of Guardian Automotive. “Our people are joining another established brand with a history of growth and a long term focus on the retail automotive glass business.”

www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 27

LendDeck.com Says SBA Loans for Body Shops at All-time Low The Small Business Administration has hit its lowest level in history for funding small business loans in amounts up to $150K, according to on line lender LendDeck.com. Online alternative financing specialists like LendDeck.com are finding a great opportunity in the SBAs shortfall in funding.

Small business loans for auto body shops are increasingly difficult to come by when attempting to use traditional channels like banks and credit unions so some small business auto body shop owners are turning to alternative financing sources like LendDeck.com to get the cash they need for their business.

Lisa Wolfrum, President of SBL

Capital Partners recently stated that, LendDeck.com was established specifically to fill a huge gap in the market where traditional banks and the Small Business Administration have failed in funding loans for American small businesses.

Small business body shop owners in need of cash and financing can simply log on the to the website at http://www.LendDeck.com and complete a short survey form to find out how much funding the business can qualify for. There are several different business financing options available and the personal financial representative at LendDeck.com helps each business owner find the right solution for their needs. Many small business

loans for auto body shops are denied by the SBA due to low credit scores of the business owner, however at LendDeck.com, they focus more on the business operations and cash flow rather than the personal credit of the proprietor. Once a funding decision is made and the terms are agreed to by both parties, the business owner can have cash in hand in as little as three days.

LendDeck.com keeps the paperwork to a minimum and helps small business owners get the capital they need without the hassle they dont need. Being able to offer financing to small businesses in a streamlined manner that gets cash into the economy without taking the business

Progressive Insurance Chairman, Peter Lewis, Dies at Age 80 Peter Lewis, Chairman of automobile insurance giant Progressive Corporation, died at his home in Coconut Grove, Florida on Saturday, November 23. Lewis was instrumental in building Progressive into an automobile insurance titan. He had just celebrated his 80th birthday on November 11.

The long-time head of Progressive took over the small company that his father helped to found in 1937 and grew it into a powerhouse, becoming a billionaire in the process. Lewis accomplished this growth by developing accurate rates for each individual policyholder so that those with low risk did not have to subsidize those with high risk. The company has recently characterized these high risk benefactors in TV commercials as “ratesuckers.”

Under Lewis, traditional methods of determining rates, including the use of judgment and subjective factors, were eschewed, and accurate data-driven decisions were championed.

Perhaps most significantly, Progressive embraced the use of credit scores in rating automobile insurance policies. Although controversial, the

use of credit was critical in propelling Progressive to the top of the automobile insurance world both in terms of premium volume and profitability.

More recently, and also under his leadership, Progressive has been actively developing telematics rating systems, also known as “black boxes.” Sometimes refered to as usage-based automobile insurance, these systems compute insurance rates based upon data taken directly from your automobile. Variables such as how you drive, what time you are on the road and the number of miles that you drive are all extremely powerful predictors of your risk of accidents and claims.

Under Lewis, Progressive also pioneered advances in claims handling methods and the online marketing of insurance.

Although Lewis is also known for having championed the legalization of marijuana. He was probably the country’s most high-profile billionaire backer of drug law reform.

During the November 2012 election, he spent almost $3 million helping secure the passage of marijuana legalization bills in both Washington state and Massachusetts. The National Or-

ganization for the Reform of Marijuana Laws estimated that Lewis had spent well over $40 million funding the cause since the 1980s.

Nonetheless, his legacy in the insurance world is of far greater importance. Under Peter Lewis’ leadership, Progressive helped to transform the world of automobile insurance, improving the accuracy of rates and utilizing the still controversial use of credit scoring throughout the industry.

Chief Executive Officer Glenn Renwick is taking the additional role of chairman. Renwick, 58, will also retain the title of president, the Mayfield Village, Ohio-based insurer said today in a statement.

Lewis was CEO from 1965 to 2000 when he turned over the job to Renwick. The company’s largest shareholder, he remained non-executive chairman until his death on Nov. 23.

Progressive joins the two largest U.S. providers of car coverage in turning to a single person to handle the roles of chairman and CEO. Ed Rust leads State Farm Mutual Automobile Insurance Co., and Tom Wilson runs Allstate Corp.

owner away from their business is one of the things were the most proud of at LendDeck.com. Concluded Wolfrum.

Although LendDeck.com doesn’t fund true start up businesses, they will try to work with any small business that has been in operation for at least four months.

For further information, please contact: Lisa Wolfrum, President of SBL Capital Group, LLC - 800-2136456, or visit their website at http://www.LendDeck.com.

This article was originally distributed via PRWeb. PRWeb, WorldNow and Autobody News make no warranties or representations in connection therewith.

NHTSA Announces Tesla Battery Fire Probe

The National Highway Traffic Safety Administration announced on November 19 that it was opening an official investigation into Tesla Motors Inc. two battery fires in its electric vehicles, and two weeks later, the agency is now asking that Tesla hand over all of its data on battery fires.

According to The Detroit News, the NHTSA requested in a letter dated November 27 that Tesla turn over detailed records of all consumer complaints, field reports, warranty claims, and property damage claims. The agency wants the results of tests, surveys, stimulations, and other efforts to review the battery fires and presumed defect, and it wants to determine whether Tesla has worked to make any changes to the electric vehicle to further prevent any future issues.

The data request is standard practice for the NHTSA as it works to finish its investigation. Still, the move shows which records officials are interested in going over to determine whether Tesla’s Model S is at fault or if the two fires in five weeks occurred because of uncontrollable circumstances.

Axalta Coating Systems Presents ASE Refinish Technician of the Year Award to Leonard King of Gaithersburg, MD

Last week in Newport Beach, California, Axalta Coating Systems presented the National Institute for Automotive Service Excellence (ASE) Refinish Technician of the Year award. Leonard King of Euro Pros Collision Center in Gaithersburg, MD, won this prestigious award. Leonard began his career in the industry 25 years ago.

Axalta has been a sponsor of the

award for more than 10 years. Scott Diaz, an Axalta Training Manager, presented King with the award before an audience of several hundred at the Fairmont Hotel. “Axalta is pleased to present the Technician of the Year award. Technicians are invaluable, in that they are the direct users of our refinish products and they help restore cars to their original beauty, utilizing

28 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

Axalta’s exceptional paint products.

We appreciate their knowledge, attention to detail and all they do to help demonstrate brilliant color,” Diaz stated.

ASE was established in 1972 as a non-profit organization to help improve the quality of automotive service and repair through the voluntary testing and certification of automotive technicians

and parts specialists. Today, there are more than 330,000 ASE-certified professionals at work in dealerships, independent shops, collision repair shops, auto parts stores, fleets, schools and colleges throughout the country. For more information about ASE, visit the Web site at www.ase.com. ASE has been honoring the best of the best in our industry for more than 30 years.

I-CAR Launches Introduction to Carbon Fiber Online Course I-CAR® is launching Introduction to Carbon Fiber (CFR01e), a new online course specifically designed to help collision industry professionals understand how to work with carbon fiber.

Carbon fiber is one of several technically advanced materials becoming more prevalent due to its outstanding strength to weight ratio, contributing to automaker light- weighting initiatives in support of efforts to achieve increasingly challenging CAFE standards. The online course, Introduction to Carbon Fiber, helps to identify and understand this high-tech material and dispels related common collision repair myths. The course features interactive exercises, detailed videos, high-quality graphics, and current vehicle examples to demonstrate repair and replacement options for carbon fiber. The 2-credit hour course meets training requirements for the Gold Class Professionals™, Platinum Individual™ and Professional Development Program™ (PDP) programs for the following roles: Non-Structural Technician, Steel Structural Technician, Aluminum Structural Technician, Estimator, and Auto Physical Damage Appraiser. See the I-CAR website, www.i-car.com.

Mitchell International Becomes Associate Member of ARA

The Automotive Recyclers Association (ARA) announced that Mitchell International, Inc. is the most recent associate member of ARA. Mitchell International is a leading provider of software and services to the automotive claims and collision repair industries. “We are delighted that Mitchell has become part of the ARA family,” said CEO Michael E. Wilson. “This announcement formalizes the constructive working relationship that ARA and its members have had with Mitchell International over the years.

The ARA looks forward to our mutual efforts with Mitchell International and other stakeholders in the estimatics’ community to increase the availability of original equipment (OE) recycled automotive parts in estimatics platforms used by repair professionals. As highlighted in the Association’s strategic plan, ARA is committed to the enhancement of members’ access to and supply of more reliable, consistent, and accurate parts data. Wilson added, “Access to quality OE data as well as enhancing insurance-quality parts data through greater utilization of the ARA parts grading codes, standards and certification programs is a top priority.”

Canadian Equity Pension Fund Buys Caliber Collision

Canada’s OMERS Private Equity (OPE) announced that it, along with existing management, has acquired Caliber Collision Centers from private equity firm ONCAP, Onex Corporation’s mid-market private equity platform. Based in Dallas, Texas, Caliber is the largest independent provider of automotive collision repair services in the U.S. with a network of 157 collision centers located in California, Texas, Arizona, Nevada, Oklahoma and Colorado. The Company has approximately 3,700 employees and repairs more than 285,000 vehicles annually. “We are thrilled to partner with Steve Grimshaw, President and CEO of Caliber, and his management team for the Company’s next phase of growth,” said Tim Patterson, Senior Managing Director at OPE. “We believe that Caliber will continue to distinguish itself as the market leader in the highly fragmented collision repair industry in the years ahead.” Caliber Collision Centers is the largest collision repair company in America with 157 I-CAR Gold Class Professional certified collision repair centers in California, Arizona, Nevada, Texas, Oklahoma, and Colorado.

Seidner’s Wins Completely Elite Award for CSI Scores

Seidner’s Collision Centers was recognized for Outstanding Customer Service by TenPoint Complete at the Collision Industry Awards ceremony held in November in Las Vegas.

Michael Sturgis (left) presents Steve Seidner with the Completely Elite Award

The Completely Elite Award is a national award for repair facilities using TenPoint’s CSi Complete Customer Satisfaction Survey solution. Seidner’s Collision Centers established itself as the leader in Customer Service & Experience, Employee Training & Certification, Industry Leadership & Participation and Community Service. “Steve Seidner has set, and clearly delivered on, his goal to deliver customers an Extraordinary Repair Experience,” said Michael Sturgis, Partner with TenPoint Complete.

NHTSA Says Safety Ratings Cannot Exceed 5 Stars

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U.S. regulators blocked automakers from promoting vehicle safety ratings of more than 5 stars, three months after Tesla Motors Inc. touted an outsized score on its Model S electric car. The move adds to tension between the National Highway Traffic Safety Administration and Tesla, now grappling with bad publicity and a federal probe after a series of car fires raised questions about the safety of the Model S. Tesla said in late August that the Model S had achieved a score of 5.4 stars, a figure based on Tesla’s independent analysis of NHTSA data. Still, the statement prompted NHTSA, which issues the star ratings, to update its marketing guidelines. NHTSA now explicitly bars companies from promoting safety scores higher than 5 stars. The updated guidelines also state that the safety scores are always whole numbers.

“Tesla’s claim was an example of the potential confusion and inaccuracy that could be caused by incorrect use of the 5-Star ratings information in advertising and marketing statements,” NHTSA said in a statement.

Tesla declined to comment. The 5-star safety rating system has been used by NHTSA since model-year 1994 vehicles and the agency does not

issue scores above that threshold.

“Advertisers who claim more than 5 stars are misleading the public,” NHTSA said, adding that violations could trigger action by federal or state authorities.

NTHSA launched a probe this week into the Model S following three car fires that raised questions about the safety of the car’s design.

Tesla CEO Elon Musk said in a blog post that the automaker requested the recall, but that statement was flatly denied by NHTSA administrator David Strickland.

The first fire was reported in early October and the bad publicity has lopped off more than 37 percent of Tesla’s market value since Oct. 1.

NHTSA’s investigation into the Model S could take up to six months and cost Tesla about $13 million, Barclays Capital analyst Brian Johnson said in a research note Wednesday.

“The monetary cost of a recall is likely manageable,” Johnson wrote.

“The real issue is to what extent the publicity over the fire is likely to crimp Tesla Model S sales growth.”

In the past, highly publicized safety probes have led to a sales drop between 10 and 20 percent, Johnson said.

www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 29

AUTOBODY MARKETPLACE

CARSTAR Relocates Corporate Headquarters to Leawood, KS

CARSTAR Auto Body Repair Experts has relocated its corporate headquarters as part of the company’s “aggressive growth plans.”

Previously headquartered in Overland Park, KS, CARSTAR made the move to a new facility in Leawood, KS, on Nov. 25. “This move was a smart business decision as it allows our team to serve our stores and partners more efficiently and effectively,” said David Byers, CEO of CARSTAR. “This allows us to focus corporate resources on building and enhancing our business... and provides us the flexibility and capacity to continue to grow our network across North America.”

Advance Auto Parts Gets New President, Michael Creedon

Advance Auto Parts, Inc. an aftermarket retailer of parts, batteries, accessories and maintenance items, announced today Michael Creedon will join Autopart International (AI) as President. Mr. Creedon will lead the Company’s efforts to deliver on its unique value proposition of premium parts and expert service. Additionally, Mr. Creedon will be responsible for growing the company profitably by focusing on the continued execution of that value proposition which is focused on the professional technician and Commercial business. He will continue to leverage the resources and synergies between Advance and AI to accelerate their profitability.

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Artists for Education Has Donated $24K to Education Repair Foundation Artists 4 Education has announced that it raised and donated $23,924.32 to the ICAR Collision Repair Education Foundation.

Over the past year, Artists 4 Education has worked in conjunction with Matrix System Automotive Finishes, a Quest Automotive brand, to organize efforts to raise money and industry awareness for the I-CAR Collision Repair Education Foundation. This endeavor involved the expert skills of the industry’s top automotive artists and industry partners across the country.

With the participation of various industry partners such as Nuplex Resins, M.F. Cachet Company, Chromaflo Technologies, Dan-Am Company/SATA, Airbrush Action, Anest Iwata, Dedoes Industries, Dorn Color, Miller Electric, FBS - Finding Better Solutions, and Pro-Spray Finishes, cash donations and items were donated to help support the cause.

The all-star artist line-up involved some of some of the best airbrushers and pinstripers in the industry: Nub, Steve DeMan, Mike Learn, Mitch Peacock, Ron “Flea” Fleenor, Bugs, Armando

Serrano, Jeff Styles, Jonathan Pantaleon, Ryan Evans, Richard “Duke” Bobinac, Pat Paldino, James Kunzinger, Darryl

Strader, Don Ruks, John Wargo, Mark Marion, Justin Nichols, Michael Maggard and Josh Bourassa.

David Brunori, President of Quest Automotive Products, explains that, “It is our responsibility as industry participants to support the I-CAR Collision Repair Education Foundation whose sole purpose is to raise awareness to the growing shortage of certified technicians entering the collision repair industry. Our 1st annual Artists 4 Education campaign was a

What are the Best Parts of Driving?

huge success—the artist community and manufacturers stepped up in a big way. We are truly humbled by their commitment to the cause.”

“On behalf of the I-CAR Collision Repair Education Foundation staff, Board of Trustees, and the high school/college collision students nationwide that we support, we would like to thank Artists 4 Education and their supporters for this incredible fundraising program. It was incredible to see all the various auction items and how so many came out to support the program through donations and bids.

With many collision school programs across the country facing reduced and limited budgets, these funds will go a long way with assisting in the students’ technical education. We look forward to working together next year to help make this program even bigger and better,” said Collision Repair Education Foundation Director of Development, Brandon Eckenrode.

For 2014 we are looking forward to engaging more awesome artists in our industry to participate! If Artists 4 Education can help one student enter into this growing industry, the mission was a success.

For more information about Artists 4 Education, go to: www.artists4education.org.

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Atlanta-based Asbury Automotive Group, Inc. has donated $120,000 in parts to local high school and college collision school programs through the Collision Repair Education Foundation. The donations, which include bumper covers, hoods, fenders and other parts, provide students with the opportunity to practice collision repair on current model vehicle parts. As collision instructors are facing reduced budgets, these types of donations are vital for the student’s technical education. “Our dealership groups across the country are proud to be a part of this program, as we help to prepare these students for their future, and our future as an industry,” stated Asbury’s EVP and COO Michael Kearney. Education Foundation Director of Development Brandon Eckenrode noted, “It has been a pleasure working with Asbury to coordinate the donation of parts from their numerous dealerships to collision school programs. Not only do these donated parts help the programs, but they also help introduce the instructors to dealership staff for future support opportunities. These introductions could also potentially lead to future employment of our students. I commend Asbury for making this a company-wide effort.”

NABC Announces 2014 Board of Directors

Mazda Parts.

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Asbury Automotive Group Donates $120K in Parts

Back row, left to right: Fred Iantorno, Chuck Sulkala, Bill Mayer, Kent Seavey, Nick Notte, Domenic Brusco, Elizabeth Clark, Rick Tuuri.

Middle row: Elizabeth Stein, Jon Faris, Renee Ricciotti, Craig Camacho, Michael Jordan.

Front row: Karen Fierst, Petra Schroeder, Taylor Bowes. Not pictured: Brandon Devis, Joe Lacy, Jeff Peevy, Mark Lovell, David Merrell, Jim Ocampo, Michael Quinn

The National Auto Body Council (NABC) has announced its newest board members. New officers elected at NABC’s recent annual meeting in Las Vegas include: ● Nick Notte, president (Sterling Autobody Centers) ● Elizabeth Stein, vice president (Assured Performance) ● Fred Iantorno, treasurer (CIECA) ● Domenic Brusco, secretary (PPG Automotive Refinish) ● Craig Camacho, director-at-large

(Keenan Auto Body) ● Brandon Devis, past president (Sherwin-Williams) New to the NABC board are Taylor Bowes (3D Collision Centers), Elizabeth Clark (State Farm), Joe Lacy (GEICO) and Jeff Peevy (I-CAR). Returning board members for the National Auto Body Council include: Jon Faris (Enterprise Rent-A-Car); Karen Fierst (Kerenor Consultants); Michael Jordan (Manchester Collision Center); Mark Lovell (LKQ Corporation); Bill Mayer (Insurance Auto Auctions); David Merrell (PartsTrader); Jim Ocampo (Axalta Coating Systems); Michael Quinn (uParts, Inc.); Renee Ricciotti (3M Corporation); Petra Schroeder (Axalta Coating Systems); Kent Seavey; and Rick Tuuri (AudaExplore, a Solera Company). “We are pleased and excited to welcome such a strong roster of industry leaders whose passion and dedication to serving our industry will be invaluable,” said Chuck Sulkala, NABC executive director. “We were in the enviable position of having 13 stellar candidates vying for seven open board positions, and we thank each candidate for their willingness and commitment to helping us further our mission to promote our collision industry.”

www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 31

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Laurel BMW of Westmont

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32 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com

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