June 2023 Northeast Edition

N O RT HE A ST E DI T I O N CT / DE / ME / MD / MA / NH / NJ / NY / PA / RI / VT

Parents Sue Kia After Teens Killed in Stolen Crashed SUV

By David A. Wood CarComplaints.com

A New York Kia Sportage crash that killed four teens and injured two others was allegedly caused by Kia even though the 2021 Kia Sportage was stolen and traveling 100 mph when it crashed into a wall.

column and using a USB cable to bypass the security system.

It’s believed the first class action lawsuit was filed in 2021 for Wisconsin customers where the problem allegedly first began.

The online videos show exactly how to steal the Hyundai or Kia vehicle, and then to make the theft a “challenge,”

41 YEARS

AUTOBODYNEWS.COM

Vol. 14 / Issue 3 / June 2023

REGIONAL NEWS

Top Industry Speakers Share Insight During Southeast Collision Conference in Virginia

By Stacey Phillips Autobody News

At the second annual Southeast Collision Conference in April, collision repair professionals had the opportunity to participate in various educational sessions, attend a tradeshow with more than 50 exhibitors showcasing their products and services, and network with industry peers.

The two-day event in Doswell, VA, was hosted by the Carolinas Collision Association (CCA) and the Washington Metropolitan Auto Body Association (WMABA). A membership awards dinner was held the evening before the show

Jordan Hendler, left, executive director of WMABA, and Josh Kent, right, executive director of CCA.

celebrating those who work in the industry.

Jordan Hendler, executive director of WMABA, and Josh Kent, executive director of CCA, planned the event for the industry to gather and learn about l CONTINUED ON PAGE 12

REGIONAL NEWS The wrongful death lawsuit was filed by two mothers of two of the deceased teens who claim the crash would not have occurred if Kia would have installed engine immobilizers in the Sportage.

According to the lawsuit: “An engine immobilizer is a critical piece of electronic security technology that serves as a crucial tool in minimizing the risk of vehicle theft. Immobilizers prevent vehicles from being started unless a unique code is transmitted from the vehicle’s key.”

In 2021, criminals began posting videos online about how to steal Hyundai and Kia vehicles by breaking into the vehicle, removing the steering

criminals are encouraged to post their own videos showing how they stole the vehicles. The lawsuit said, “numerous countries have adopted legislation requiring immobilizers as standard equipment for new automobiles.”

But what the lawsuit doesn’t mention is the U.S. isn’t one of those countries, as engine immobilizers are not required by U.S. laws.

The Kia Sportage Crash The New York Kia Sportage crash occurred Oct. 24, 2022, after a 16-yearold boy drove the stolen Kia into a wall at 100 mph, killing four teens: Marcus Webster, 19, Swazine Swindle, 17, l CONTINUED ON PAGE 35

EV Fee in Pennsylvania Touted as ‘Best Path Forward’

By Anthony Hennen The Center Square

Pennsylvania lawmakers want to find a way to replace the gas tax with electric vehicle fees—before they miss out on tens of millions of dollars to fund the state’s roads and bridges.

The trick, as officials heard testimony May 1 during a House Transportation Committee hearing, is to figure out what form that fee should take to capture enough revenue.

“We must recognize the fact that our country is at the beginning stages of changing gas-powered vehicles to electric vehicles,” said Rep. Ed Neilson, D-Philadelphia. “We need to be certain that our roads and bridges can still be maintained, repaired and replaced … we can no longer depend on gas taxes to be the sole source of funding to maintain our infrastructure and roadways.”

Pennsylvania will spend $172 million in federal funds to build out l CONTINUED ON PAGE 29

INSIDE THIS ISSUE 18

30

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16

10

Columnist Mike Anderson: Calculating the ROI in ‘Growing’ Your Own

New Body Techs

Columnist Abby Andrews: WIN Hosts Annual Educational

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Columnist Ed Attanasio: Karleigh Johnson Has Her Eyes on SkillsUSA

National Gold

Columnist John Yoswick: Shifting Customer Preferences, Tech, Staffing Issues Inspire Changes in Shops

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Contents

COLUMNISTS

REGIONAL NEWS Bronx Lawmakers Want to Bring Auto Repair Shop Oversight ����������������������� 28 Delaware State Supreme Court Reverses Ban on Tesla Store Sales �� 21 EV Charging Station Bill Goes to NH House Floor Without Recommendation ��������������������������������� 8 EV Fee in Pennsylvania Touted as ‘Best Path Forward’ ������������������������������� 1

Man Sentenced for Drug-Trafficking was Laundering Money Through CT Auto Repair Shop ����������������������������������� 36 Pennsylvania Traffic Deaths Fall 4% After Increasing for Years ��������������������� 20 Private Investment Gets Head Start on EV Buildout in PA ���������������������������������������4 Rhode Island Adopting Clean Cars, Trucks Emissions Policy ������������������������ 34

Mike Anderson Calculating the ROI in ‘Growing’ Your Own New Body Techs ����������������������������������������� 18

Mike Anderson Explains at SCC Why Collision Repair Facilities Must Be Extraordinary ����������������������������������������������� 14

Abby Andrews WIN Hosts Annual Educational Conference �������������������������������������������������� 30

Top Industry Speakers Share Insight During Southeast Collision Conference in Virginia �������������������������������������������������������������1

Ed Attanasio Fully Restored Porsche 914/6 Stays in Family for More than 50 Years ����������������� 26

Cole Strandberg EVs: Opportunities Outweigh Challenges for Collision Repair Shops ������������������������ 24

Karleigh Johnson Has Her Eyes on SkillsUSA National Gold ���������������������������� 16

John Yoswick Estimating Systems Expected to Make Changes Based on Paint Blend Study ����� 6

Stacey Phillips Rivian Expands its Certified Collision Network as Production Increases on Adventure Evs ��������������������������������������������� 22

NATIONAL NEWS

Shifting Customer Preferences, Technology, Staffing Issues Inspire Changes in Collision Repair Shops ��������� 10

42.3 Million Americans Expected to Travel for Memorial Day Weekend ������ 48

Researchers Discover Electrolyte for EV Batteries That Performs Well in Frigid Conditions ����������������������������������������������� 58

ASE Announces New EV Standards, Certification ��������������������������������������������� 36

Rivian R1T Fender Bender Lands Owner $42,000 Repair Bill ������������������� 56

Acme Nissan ��������������������������������������������� 17

Liberty Kia �������������������������������������������������� 54

Acura of Westchester ������������������������������� 26

Long Automotive Group ���������������������������� 42

Roadway Fatalities Appear to Remain Flat in 2022 After 2 Years of Dramatic Increases �������������������������������������������������� 38

American Icon Automotive Finishes ����������54

Maserati & Alfa Romeo of Wilmington Pike �� 4

Audi Devon ������������������������������������������������ 24

Mazda Wholesale Parts Dealers ����������������60

Audi Wholesale Parts Dealers �������������������55

Mercedes-Benz of Atlantic City �����������������11

SCRS Welcomes Static Solutions/ProStat ���������������������������������������������������������������8

Auto Data Labels ����������������������������������������� 9

Mercedes-Benz of Fort Washington ����������25

Biener Audi ������������������������������������������������ 43

Mercedes-Benz of Goldens Bridge ������������48

Biener Ford ������������������������������������������������ 43

Mercedes-Benz of Paramus ����������������������13

BMW Wholesale Parts Dealers �����������������47

Mercedes-Benz of West Chester ���������������11

BRAM Auto Group ������������������������������������� 23

Mercedes-Benz of Wilmington ������������������11

Brown-Daub Kia ����������������������������������������� 60

Mercedes-Benz Parts Dealers �������������������61

Cadillac of Mahwah ����������������������������������� 58

MINI Wholesale Parts Dealers �������������������46

Central Avenue CJDR �������������������������������� 19

MOPAR Wholesale Parts Dealers ��������������37

Certified Automotive Parts Association �����62

New Holland Ford �������������������������������������� 12

Cherry Hill Nissan ���������������������������������������� 4

New Holland Toyota ���������������������������������� 60

Ciocca Parts Warehouse ���������������������������15

Nissan/Infiniti Parts Dealers �����������������������63

Circle BMW ����������������������������������������������� 18

NorthAmerican Bancard ������������������������������ 8

Classifieds ������������������������������������������������� 62

Northstar Kia ���������������������������������������������� 16

Topics Announced for ASE Training Conference ��������������������������������������������� 34

Colonial Automotive Group ������������������������39

Open Road Acura of East Brunswick ���������51

Cool Boss A Division of BendPak Inc ����������� 5

Open Road Chevrolet ��������������������������������� 35

U.S. Seeing Historic 1-Year Drop in Gas Prices �������������������������������������������������������� 50

Courtesy Mitsubishi ���������������������������������� 56

Ourisman Chevrolet ����������������������������������� 52

DePaula Chevrolet-Ford �����������������������������36

Ourisman Chevrolet-VW-Mazda

1Collision Offers SCRS Membership �� 46

ASE Now Has 2,200+ World Class Technicians ���������������������������������������������� 42 Auto Insurance Shopping, Switch Rates Reach New Highs as Premiums Surge ������������������������������������������������������������������� 43 Average Age of Vehicles on U.S. Roads Hits Record High 12.5 Years ���������������� 44 Catalytic Converter Thefts Nationwide Surge More Than 200% ������������������������ 46 Chevrolet Bolt EV to Be Discontinued by End of 2023 ��������������������������������������������� 63

Security Fix Doing Little to Slow Down Hyundai, Kia Theft Rates ���������������������� 42 Show Support ‘Fore’ Students at Golf Fundraiser ���������������������������������������������������4

Ford Super Duty Roof-Crush Lawsuits Consolidated ������������������������������������������� 51

Shrinking Selection, Fewer Affordable Options in Used Vehicle Market ���������� 40

Former GM President, First to Champion EVs, Dies ������������������������������ 54

Tesla Most Recalled Car Brand; Mercedes, Toyota Least ������������������������ 59

Gas Prices Fall Again ����������������������������� 60 NABC Announces 2 New Team Members �������������������������������������������������� 29 Nominations Open for Techs Rock Awards ������������������������������������������������������ 21 Parents Sue Kia After Teens Killed in Stolen Crashed SUV ���������������������������������1

Tesla Sudden Unintended Acceleration Causes Federal Petition �������������������������� 52

Index of Advertisers

Eagle Abrasives ������������������������������������������� 7

of Rockville �������������������������������������������� 27

Eastchester Chrysler-Jeep-Dodge �������������30

Ourisman Chrysler-Jeep-Dodge ����������������44

Empire Auto Parts �������������������������������������� 48

Packer Norris Parts ������������������������������������ 41

Ford Wholesale Parts Dealers �������������������49

Park Ave Acura ������������������������������������������ 52

GM Wholesale Parts Dealers ���������������������45

Porsche Wholesale Parts Dealers ��������������59

Grieco Toyota ��������������������������������������������� 56

Prestige Lexus ������������������������������������������� 20

Hoffman Auto Group ���������������������������������� 31

Rafferty Subaru ������������������������������������������ 60

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Honda-Acura Parts Dealers ����������������� 32-33

Rockland Nissan ���������������������������������������� 40

Hyundai Wholesale Parts Dealers �������������58

SATA Dan-Am Company ����������������������������� 2

AUTOBODY MARKETPLACE

Infiniti of Norwood ������������������������������������� 51

Schultz Ford ����������������������������������������������� 29

Jaguar Land Rover Cherry Hill �������������������50

Sheehy Lexus of Annapolis �����������������������50

Kelly Jeep-Chrysler ������������������������������������ 28

Subaru Wholesale Parts Dealers ���������������63

Kia Motors Wholesale Parts Dealers ���������53

Sunmight USA ������������������������������������������� 64

Kia of Attleboro ������������������������������������������ 56

Toyota Wholesale Parts Dealers ����������������60

Kia of Coatesville ��������������������������������������� 21

Volkswagen Wholesale Parts Dealers �������57

Kundert Volvo ��������������������������������������������� 34

Yonkers Kia ������������������������������������������������ 59

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Lexus Wholesale Parts Dealers �����������������56

autobodynews.com / AUTOBODY NEWS JUNE 2023 3

Private Investment Gets Head Start on EV Buildout in PA

By Anthony Hennen The Center Square

As Pennsylvania awaits federal subsidies worth hundreds of millions to build out charging stations for electric vehicles, private investment takes the lead.

Walmart said it will build an “EV fast-charging network” at thousands of locations, including Sam’s stores, by 2030. This, as the state divvies up the first installment of more than $172 million in federal infrastructure funding to create a charging corridor across Pennsylvania.

Vishal Kapadia, Walmart’s senior vice president of energy transformation, said the company is “uniquely positioned” to make EV ownership not only possible, but convenient, for people—no matter where they live.

The vast majority of Americans—90%—live within 10 miles of a Walmart or Sam’s Club store. So far, the company has installed about 1,300 charging stations at 280 stores nationwide.

Stores in East Stroudsburg, Clarion and Erie already have EV

charging available, among others.

“We see our commitment today as a natural extension of our work to help customers and members live better, easier and more sustainable lives—a big win for busy families and drivers everywhere, our country and the planet,” Kapadia said.

Walmart isn’t the only company expanding its EV infrastructure, either.

Tesla has 50 charging stations across Pennsylvania, and more than 1,000 stations already exist, as The Center Square previously reported.

Sheetz built a handful of EV stations in Pennsylvania almost a decade ago and has since expanded to dozens statewide; 14% of its locations across six states now have electric charging available.

The privatized stations will soon compete with publicly funded ones, as PennDOT officials distribute $62 million—the first of three installments—to local governments, nonprofits and businesses over the next two years to get started.

Some politicians have criticized

the effort, however.

“The nation did not subsidize the build-out of gas stations—the market took care of that,” Sen. Kristin Phillips-Hill, R-Jacobus, said in a Senate Appropriations Committee hearing with PennDOT. Currently, EVs pay an average of $300 less into the motor license vehicle fund than gas vehicles, Phillips-Hill noted, criticizing the subsidy that now exists.

About 67,000 electric vehicles are registered in Pennsylvania, but officials have not settled on how to levy a fee on users to replace the tax that gas-powered vehicles pay to maintain the commonwealth’s roads.

PennDOT Acting Secretary Michael Carroll defended the EV charger buildout, saying the money spent comes from federal funds, not state funds, and are restricted for EV charging purposes.

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Show Support ‘Fore’ Students At Golf Fundraiser The Collision Repair Education Foundation (CREF) is excited to announce its 21st annual Golf Fundraiser, co-hosted by PPG Automotive Refinish, is scheduled to take place July 18 at Hillcrest Country Club in Indianapolis, IN, in conjunction with national industry meetings.

Limited spots remain available for golfers, and those interested should snag a spot before they’re all gone. Collision industry companies interested in sponsorship should contact Tiffany Bulak, CREF program manager, via email at Tiffany.Bulak@ed-foundation.org.

Can’t make it to Indianapolis?

The 2023 Golf Fundraiser also features an opportunity to remotely support schools and students with CREF’s Annual Helicopter Ball Drop, sponsored by Refinish Solutions Group. Simply purchase a $15 golf ball online before July 18 to participate. On the day of an event, the golf balls will be dropped from a helicopter over a target at the Hillcrest Country Club.

Register or buy a ball online at bit. ly/CREFgolf.

Source: CREF

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Estimating Systems Expected To Make Changes Based on Paint Blend Study

By John Yoswick Autobody News

During an open board meeting of the Society of Collision Repair Specialists (SCRS) in mid-April, the association’s leaders discussed what changes might occur within the estimating systems based on the blend study SCRS conducted last year.

“The research, the work, resulted in positive movement for the industry, and we’re excited to identify what the end result looks like,” said Aaron Schulenburg, executive director of the association.

Less than three weeks later, users of CCC Intelligent Solutions’ estimating system learned that by the end of the year, they will have the option to input their own refinish blend time or set their own default blend value. MOTOR Information Systems, developer of the underlying

SCRS’ Aaron Schulenburg, right, introduces state insurance commissioners Mike Causey, left, and Scott White, center, before their presentations at the association’s open board meeting

database used by CCC, said it “reviewed information from multiple sources and has concluded that the current formula reflects an estimate for one particular scenario but does not necessarily reflect the many variations encountered with modern vehicle finishes and design.”

Blend times, the company’s statement about the change reads, should be based on “the judgment of an estimator or appraiser following an on-the-spot evaluation of the specific vehicle and refinish requirements in question.”

“This is a great example of an action that we had previously requested prior to the study, that is now only taking place because of the study results and the industry support that followed,” Schulenburg said in response to MOTOR’s announced change.

SCRS believes its study last year demonstrated blending takes more time than a full panel refinish, rather than the 50% less time allocated in the three estimating systems.

Schulenburg said SCRS is having “similar conversations” with the other estimating system providers as well.

Autatex, he said during April’s meeting, is “still looking at how they are going to address it,” but in the interim has showed how its system allows a user to make changes to the blend calculation.

“That’s great to have those tools, but the question still needs to be addressed because it is still our belief that the formulas aren’t representative of the tasks that are actually being performed today,” Schulenburg said.

He said the blending process also may be different than it was 30 years ago when the blend formulas were established. He said Mitchell noted two of the five paint companies in the SCRS study applied sealer on the blend edge—something called for in those companies’ training materials.

“There’s nothing in [Mitchell’s Complete Estimating Guide] that says applying sealer on the blend edge isn’t considered a blend,” Schulenburg said. “If [Mitchell] is not considering it a blend operation [when that step is done], that means they haven’t factored that operation into the times they’ve applied for blend. So it’s either not a blend, or the times need to be adjusted.”

User Agreement Opens Scan Tool Data to China Also during the SCRS meeting, held in April in Richmond, VA, Schulenburg showed under the terms of the licensing agreement of at least one aftermarket scan tool, the user is agreeing to allow the data collected through the tool to be transferred to the company in China, “subject to China laws, including those governing the privacy and security of your information.”

The shop user is also agreeing to notify and acquire consent for such

“The research, the work, resulted in positive movement for the industry, and we’re excited to identify what the end result looks like.”

— AARON SCHULENBURG AEXECUTIVE DIRECTOR, SCRS

collection and transfer of vehicle data “from each customer or prospective customer,” and to the use of the information by the scan tool company “and third parties.”

Schulenburg said he’s turned the issue over to the Collision Industry Conference committee on data privacy and security. He said shops need to be aware of such enduser licensing agreements they

6 JUNE 2023 AUTOBODY NEWS / autobodynews.com

are subject to, particularly in light of privacy agreements they may have with other entities, including insurance companies.

“Think of a USAA, that insures [four]-star generals. Think of a GEICO that insures government employees,” Schulenburg said. “What are their expectations of shops within their network to maintain the privacy of those individuals? Would they want that information shared in this manner under the jurisdiction of the People’s Republic of China? I don’t know. But it seems like it’s worth talking about as an industry.”

Insurance Commissioners Address the Industry Issues related to “prevailing rate” were among the topics two state insurance commissioners discussed in their presentation at the SCRS meeting.

Michael Bradshaw, vice chairman of the SCRS board and operations manager for his family’s North Carolina body shop, told them most insurers in his state don’t conduct labor rate surveys, and when asked, insurance company representatives tend to say they are told the prevailing rate by their supervisor, or say, “We go into shops, and that’s the rate they will take.”

Scott White, Virginia’s insurance commissioner, said his department gets few complaints related to collision repair claims

“It’s not a survey. There’s no statistical data,” Bradshaw said.

“That’s the biggest frustration within this industry.”

Scott White, commissioner of insurance for Virginia since 2018, acknowledged it was a topic he discussed with his staff prior to speaking at the SCRS meeting.

“I did ask this question because I didn’t know, and I was told the prevailing rate is the [DRP] network rate,” White said. “That seems pretty easy to find out. But maybe there’s a difference in how we’re looking at it.”

He pointed to what he sees as a similar situation in the health care industry, where providers and insurers may disagree on what is the “commercial reasonable rate.” But

Bradshaw pointed to what he sees as a key difference.

“The only thing I would say about the medical industry is that they are licensed professionals,” he said.

“Even bad doctors have had a lot of education, a lot of ongoing training. In our industry, in [most] states, there’s no licensure requirement. There’s no equipment or training requirements.

So the difference among body shops is vast,” yet they are all told there’s one “prevailing rate.”

One reason White may not be familiar with the issue came out in his opening comments.

“A question I framed to my team was: Do we get a lot of complaints that involve collision repair shops either directly or indirectly,” White said. “The answer I got was ‘No, not really.’ Not as many as you might expect.”

North Carolina Commissioner of Insurance Mike Causey said some insurers pay claims quickly while others are “terrible.”

He said that was true both in absolute terms—the actual number received—and as a trend, with the department receiving “a lot more” complaints five or 10 years ago.

“Which kind of surprised me,” White said. “It may not be an accurate reflection of what’s going on out there. The caveat is we aren’t seeing all the problems that are probably out there.”

North Carolina Commissioner of Insurance Mike Causey, on the other hand, said his department gets “a large volume of complaints, all kinds, and I’d say auto insurance [complaints] are a majority over homeowners’.”

Causey said he, like shops, sees differences among insurance companies as well.

“Some do a really good job of handling claims, paying claims quickly. Others are terrible,” Causey said. “The consumer certainly has to shop around. But again, anything you bring to the attention of regulators, if you give it to our office and say, ‘We’ve noticed this, this is the documentation we have,” we’ll get our folks on it and investigate it and try to get to the bottom of it.”

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SCRS Welcomes Static Solutions/Pro-Stat

EV Charging Station Bill Goes To NH House Floor Without Recommendation

By Dave Fidlin The Center Square

A bill pertaining to the regulation and operation of electric vehicle charging stations in New Hampshire will go to the House floor without a firm recommendation from the legislative committee reviewing it.

The House Committee on Science, Technology and Energy on April 18 deliberated Senate Bill 52, which proposes modernizing state statutes for electric vehicle infrastructure construction projects and establishes a committee to study funding and other related matters.

The House panel wrangled over several components of the bill— including the merits of establishing the dedicated committee to dig deeper into the issue—though the bill and several proposed amendments failed passage and were split along partisan lines.

Ultimately, the committee concluded deliberations with an agreement to forward SB 52 onto the House floor for a vote at an upcoming meeting without a firm recommendation.

State Rep. Michael Harrington, R-Stafford, said, “I have a lot of issues with the bill,” including the potential burden on taxpayers.

“If you don’t have an electric vehicle, you’re not getting any advantage of having the electrical vehicle charging stations,” Harrington said. “I don’t want to see that cost be pushed around to the ratepayers.”

But other committee members favored the bill, asserting New Hampshire needed to take whatever preliminary steps necessary to ramp up electric vehicle charging infrastructure to keep pace with neighboring states.

“If we do not have adequate charging infrastructure in this state, what’s going to happen is that people from Massachusetts, Connecticut, Rhode Island, New York, New Jersey are not going to come here because they’ll feel like they won’t be able to charge up and get home,” said state Rep. Thomas Cormen, D-Lebanon.

Cormen added, “Our tourism industry will start to see it. We will start to see a decline in meals and rooms taxes as a result.”

Other committee members took aim at the provision calling for forming a committee to explore the issue.

State Rep. Jeanine Notter, R-Merrimack, said a specific bill component would increase the size of state government.

“We already have over 150 commissions and committees,” Notter said. “We have to pay mileage, which is costing the taxpayers money. We have paid researchers; let them do their job.

We don’t need another committee.”

SB 52 was one of a dozen pieces of legislation on the committee calendar April 18.

Other legislative items, such as Senate Bill 166, passed out of committee with bipartisan support.

SB 166 proposes electric grid modernization and calls on the state Department of Energy and Public Utilities Commission to adopt strategies around the concept.

The bill passed out of committee on a unanimous 20-0 vote.

“This is a good idea, but don’t underestimate how much time and work it’s going to take,” Harrington said.

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The Society of Collision Repair Specialists (SCRS) welcomes UK-based Static Solutions, which operates in the U.S. as Pro-Stat, as the newest corporate member of the association.

Parent company Static Solutions has been manufacturing the market-leading Stat-Gun for nearly two decades. The company strives to expand its efforts to educate collision repair professionals on the causes, detrimental effects and solutions to static electricity in spray booth environments.

The new Pro Stat-Gun (green model) demonstrates Static Solutions’ commitment to raising the bar on safety, and now carries Class 1/Division 1 Certification for North America, to comply with National Fire Protection Association and OSHA regulations.

For companies looking to support SCRS through membership, contact the SCRS office at info@scrs.com or visit www.scrs.com/join-scrs.

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autobodynews.com / AUTOBODY NEWS JUNE 2023 9

Shifting Customer Preferences, Technology, Staffing Issues Inspire Changes in Collision Repair Shops

By John Yoswick Autobody News

A Greek philosopher once said the only constant in life is change, and that certainly applies to the life of a collision repair business owner. Six shop owners shared what changes they’ve recently made within their business.

Tom Ricci, owner of Body & Paint Center in Hudson, MA, pointed to two such changes at his 21-employee business.

“I have had multiple problems with our last four or five bookkeepers.

They just never seem to work out,” he said. “So I outsourced bookkeeping.

It’s been almost a year now and it’s worked out, between cleaning up the last two or three years that other people made a mess of, and really making it simple moving forward. I don’t need an in-house bookkeeper anymore. It’s been a breath of fresh hair having this outsourced help.”

Ricci said he also began doing more ADAS work in-house as of last December.

“I got quite comfortable with the training and utilizing it the way we should have been utilizing it earlier,” he said. “We’re doing it now for any cars that need it, in-house. I was surprised by how much space it really does take, but we do have the space for it. We have 15,000 square feet, and not all of it was being 100% used all of the time. We started out with two managers learning how to do it. Now the production manager is training a lower-level tech that has been with us for about three years.

We had moved him a couple different places in the shop, but this really struck a chord with him. He got real excited about learning how to do it.”

Changing Customer Communication Rosann Kramer of Runway Auto in South Burlington, VT, spent 16 years working for one of the automotive paint companies before buying the shop in 2014. She said a three-month backlog of work and continued challenges with getting parts has led to some changes in customer communications.

“We are spending way more time talking to customers, explaining how long they are waiting to get their car fixed, the parts issues that everybody has, explaining rental car coverage,” Kramer said. “Previously we always told customers, ‘If possible, go through your own insurance because they’re advocating for you.’ Now it’s

the opposite. If they’re a claimant, we tell them, ‘File with the other [party’s] insurer because you could be in a rental car for three to six months.’

“Another change: I used to call customers and leave them a voicemail. But a lot of people never answer their phone, don’t have voicemail set up or it’s full,” Kramer continued. “So now we do email. I let them know when they drop off their vehicle that unless something

and more. I probably use the word ‘empathy’ about 10 times a day right now. Just listen to them, understand, tell them you’re on their side and that we’re doing everything we can.”

Technology-Focused Changes Frank Rinaudo of Frank’s Accurate Body Shop in Slidell, LA, said his shop repairs 20 to 25 EVs a month, about a third of the company’s overall monthly car count.

doesn’t feel like we have enough to accomplish all the tasks we need to do daily.” Silva said she’s trying to bring in new technology to help.

“We’re using RepairLogic now to source [repair] procedures a little more efficiently,” she said. “All our technicians have a Gmail account, and we can send the link [from RepairLogic] to them and they can click on that and all the procedures are right there on their laptop. And we can attach that link into CCC. We’re no longer printing out 100 pages and rescanning those into CCC.” Another change: “We’re also doing a lot of paint invoicing now because those paint material rates just do not cover what we’re spending,” Silva said.

Recruiting Changes

Melanie Allan of Craftsman Collision in Long Beach, CA, said her shop no longer leaves voicemails because customers don’t listen to them. They send texts instead

changes, I will email them once a week with an update. That does seem to be working. But it’s just a lot more time spent on the education process.”

On the opposite side of the country, Melanie Allan of Craftsman Collision in Long Beach, CA, also pointed to changes in customer communication.

“I told a customer yesterday that we left them a detailed voicemail, and got back, ‘Oh, I don’t listen to those,’” Allan said. “So we are texting everybody everything. It seems to work.”

Allan learned the business working at her father’s collision repair shop in Vancouver, Canada, first as a bookkeeper, then moving into operations, marketing and management. She now oversees a shop that employs 22 people.

She said she also is working to address other changes she’s seeing in customers.

“As much as you try to educate them, tell them that parts are often a question mark, some customers are unreasonable, even when we try to set their expectations,” she said. “We tell them there are variables. They just hit the roof. We’re seeing that more

10 JUNE 2023 AUTOBODY NEWS / autobodynews.com

“Our processes on intaking those vehicles has changed, and is still changing,” he said. “We got some photos and information from other shops about electric cars that arrived and looked fine one day but by the next day they were a burnt mess because of thermal runaway. Even cars that didn’t look damaged that

“We’re also doing a lot of paint invoicing now because those paint material rates just do not cover what we’re spending.”

— TIFFANY SILVA

OWNER, ACCURATE AUTO BODY, RICHMOND, CA

badly. So it’s really important that we protect ourselves. We bought a thermal imaging camera so we can detect heat in the battery and monitor that in a quarantine to validate if we’re seeing an increase.”

Second-generation shop owner Tiffany Silva of Accurate Auto Body in Richmond, CA, said they have increased staffing the past three years to keep up with demand, but even with 25 employees, “it still

Mark Probst, owner of two Probst Auto Body shops in rural towns in Illinois, said he’s changed how he hires new technicians.

“We haven’t hired an experienced technician in, gosh, seven or eight years,” Probst said. “We decided we were going to grow them ourselves, in-house. We’ve been fairly successful at it. Right now between the two locations I think I have four full-time techs in their 20s. I’ve got two kids still in school working here part-time.”

Probst has also been able to regularly hire students from a community college about 40 miles from his shops.

“I’ve been real happy, and at this point, there would be a lot of considerations before I would hire an experienced tech anymore,” he said.

“We’ve had really good luck growing our own.”

He said he believes in getting the idea of working in the collision repair industry into students’ minds early on.

“We have kindergarteners come to our shop for field trips every year,” he said. “Last year, I talked to a class of fourth-graders. Last week, one of my managers went to talk to junior high students. I don’t think we can plant those seeds early enough. I have three teenagers at home, and so I know that many kids don’t know what they want to do. I don’t think there’s any time too early to plant those seeds.”

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autobodynews.com / AUTOBODY NEWS JUNE 2023 11

l CONTINUED FROM COVER

Southeast Collision topical issues impacting the industry and how to address them.

“The conference went beyond our expectations,” said Hendler. “Bringing the regional industry together, as well as many from across the country, to take part in the educational opportunities and tradeshow was a win for all those who made the effort to come.”

“The highlights for me included the awards dinner, where we had the opportunity to celebrate the men and women who make the magic happen in the shop,” said Kent. “I also enjoyed seeing new faces walking around the tradeshow floor and the fact that our people from the Carolinas showed up and participated.”

During the show, KECO Body Repair Products had the unexpected opportunity to showcase the benefits of glue pull repair (GPR) on a Lucid Motors EV door dent that was noticed while on display.

Danny Hacker, technical sales representative and master GPR trainer at KECO, used the company’s L2E system to repair the dent in front of show attendees at their booth.

“Hacker was able to effectively demonstrate the advantages and

effectiveness of GPR techniques on EVs with no need to power down the Lucid,” said Chris White, president of KECO. Throughout the event, classes were held as part of the Collision Professional Repairer Education Program (P.R.E.P.) and taught by nationally recognized speakers. Mike Anderson kicked off the sessions with his class “Be Extraordinary!”

information about properly identifying labor types and rates.

“There was a time when a vehicle repair consisted of 70% body labor, 20% mechanical labor and 10% frame,” said Shoemaker. “The evolution of vehicle design has dictated a change in that ratio, but collision centers are still accounting for labor as if nothing has changed.”

He stressed the importance of assigning technicians to repairs based on their skill set, whether nonstructural, structural, mechanical, electrical/ diagnostic or refinish.

When steps are taken to do this, he said that a repair on a modern vehicle often has a ratio closer to 20% body, 60% structural and 20% mechanical, not including ADAS calibrations.

Danny Hacker, technical sales representative and master GPR trainer at KECO, showcased the benefits of glue pull “Knowing that repair (GPR) on a Lucid Motors EV door dent. labor sales are the primary profit center More than 200 attendees showed of a collision center, explaining that up hours before the doors opened labor rates should be based on to hear Anderson talk about what it the costs to perform the labor and takes to stand out above the crowd. identifying specific labor skillset will John Shoemaker, business allow collision centers to maintain development manager for BASF profitability as vehicle design and Automotive Refinishes NA, shared repair requirements continue to

evolve,” he noted.

Frank Terlep, VP ADAS Services for Opus IVS, said there will be nearly 100 million ADAS-equipped vehicles on North America’s roads in 2023 and more than 4.2 million will need some type of ADAS services or calibration. During his presentation, Terlep discussed the opportunities, challenges, sales, marketing and operational requirements to open and operate a successful and profitable ADAS service and calibration business or division.

“If you want to operate an efficient and profitable business, you need to standardize and automate as many workflows and processes as possible, reducing paperwork while increasing and improving your organization’s documentation, documentation sharing and communications,” said Terlep.

In a joint presentation by Danny Gredinberg, website administrator of the Database Enhancement Gateway (DEG), and Scott Ayers, Blueprint Optimization Tool (BOT) project development manager for the Society of Collision Repair Specialists (SCRS), the speakers talked about repair planning resources for shops and how to “Write Your Strongest Sheet.” Gredinberg and Ayers highlighted free resources to maximize repairs and discussed

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how SCRS’s Blueprint Optimization Tool (BOT) can help capture missing dollars and support charges with information from the DEG. “The biggest takeaway using the resources is that DEG is free and BOT is inexpensive,” said Gredinberg.

“There is no reason that with two critical resources, we are still missing

getting the most out of what you are already doing during the repair process in the shop every day.”

In Josh McFarlin’s Collision P.R.E.P. session, the executive VP of operations for AirPro Diagnostics talked about how shops can make more profit and maintain better control of cycle time by keeping

Panelists in an EV discussion included, pictured left to right, Michael Bradshaw of K&M Collision, Barry Dorn of Dorn’s Body & Paint, Kelly Logan of Rivian, Mark Allen of Audi and Jake Rodenroth of Lucid.

necessary/required operations that can also be supported by p pages/ not included operations, as well as an ability to question the labor time if it doesn’t make sense.”

“Consistency is the biggest key to success, whether using the BOT or making sure that you consistently write the strongest sheet you can every time,” explained Ayers. “These resources are designed to help you make sure that you are constantly

ADAS calibrations in-house. From radar recalibrations after a bumper repair to cost-effective static and dynamic calibration solutions, he discussed the pros, cons and cost considerations for multiple approaches.

Mark E. Olson, CEO of VECO Experts, discussed how organization and process can lead to shop profitability.

Olson talked about the benefits of

using a DISC (dominance, influence, steadiness and conscientiousness) assessment with employees.

Developed by psychologist William Moulton Marston and taught by Tony Robbins, Olson said DISC details people’s dominant traits in different categories: analytical, driver, amiable and expressive.

“Not everyone fits into one category 100%,” explained Olson. “The population is roughly divided equally into all four groups, so it is highly likely that most companies have one of each or more.”

Michael Bradshaw, vice president of K&M Collision, shared the step-bystep process of an OEM-compliant repair during his presentation, “Repairer to Repairer: Stop Estimating and Start Repair Planning.”

Bradshaw detailed the processes and documentation used to capture all operations accurately within a repair blueprint. This includes identifying the required repair, documentation best practices and using OEM repair information and industry resources for capturing non-included operations. He also discussed the differences between an estimate and a thorough repair blueprint. “The blueprinting process is crucial to ensure a proper repair, shop efficiency and overall profitability,” Bradshaw noted.

The educational program also included two panel discussions. One focused on preparing shops for EV repair and management. In addition to Bradshaw and Barry Dorn of Dorn’s Body and Paint, it included OEM representatives Kelly Logan, Rivian; Mark Allen, Audi; and Jake Rodenroth, Lucid Motors.

Bradshaw also moderated a repairer panel that addressed industry issues and opportunities while navigating the future. It included body shop leaders Frank Rinaudo, Frank’s Accurate Auto Body; Dorn; Phil Rice, Huber Collision; and Ron Reichen, Precision Body & Paint.

“Local tradeshows, like the Southeast Collision Conference, allow local vendors to have an impact and to show off their products and services,” said Kent. “They also provide shops education on topics that are relevant today in their shops and see they are not alone.”

“Overall, the CCA and WMABA teams pulled together a great and memorable experience for collision repairers who took the time to come and invest in themselves, their team and the future of their businesses,” said Hendler.

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autobodynews.com / AUTOBODY NEWS JUNE 2023 13

Mike Anderson Explains at SCC Why Collision Repair Facilities Must Be Extraordinary

By Stacey Phillips Autobody News

If collision professionals want to dominate, they need to “Be Extraordinary,” according to Mike Anderson, owner of Collision Advice.

To do so, he said repairers must deliver an extraordinary customer experience, research OEM repair procedures, keep up with new developments and grow a team where people want to be part of the organization.

“In today’s collision repair industry, it is no longer enough to just be average,” said Anderson during a presentation held in April during the Southeast Collision Conference in Virginia. “You have to be extraordinary!”

When Anderson travels across the country, the No. 1 question he is asked is whether shops should renew their OEM certifications.

“The answer is yes,” said Anderson.

“Certifications matter because of the subscription-based model OEMs are moving toward, which will change everything.”

There are two types of OEM subscriptions, Software-as-a-Service (SaaS) and vehicle ownership. SAAS allows users to connect to and use cloud-based apps over the internet.

For example, drivers can sign up for heated seats or navigation.

With vehicle subscription programs, drivers pay a monthly fee to swap out cars. Anderson said many luxury brands, such as BMW, Cadillac, Lexus and Volvo, have rolled out programs where insurance and maintenance costs are included and only certified shops can fix the automobiles.

“There is going to be a paradigm shift where OEM referrals are going to start influencing where vehicles are going to go because of subscription-based apps,” explained Anderson.

He said a well-thought-out subscription program enables customers to make a shorter commitment compared to a lease, include all expenses associated with operating a vehicle in a monthly payment, select what cars they drive, use on-demand features and personalize OEM interaction.

For auto manufacturers, vehicle subscriptions provide an annuity revenue stream and the opportunity for frequent interactions to help understand consumers’ transportation needs.

Delivering an Extraordinary Customer Experience Anderson said many shops expect getting certified will automatically

bring in customers.

“That’s a mistake,” said Anderson.

“We need to accept responsibility for getting work to the door.”

This entails gaining customers’ trust and spending time on the front end, educating them about why the shop is the best choice.

“When somebody wrecks their car and calls the body shop, they feel negative emotions,” said Anderson.

“We need to make them feel better that they have contacted the right place and everything will be OK.”

Mike Anderson and team members Charel Lock, left, and Tracy Dombrowski, with Jeff Hendler.

After asking for a callback number, he suggested mentioning the shop is certified and technicians have advanced training.

“If you are truly certificated, that is a differentiator,” said Anderson.

Anderson explained customers are looking for “social proof.”

“Just because you say you’re good doesn’t mean you are,” he pointed out. “They want social proof that you can be trusted.”

Examples are posting a listing on an OEM shop locator and sharing online reviews.

Anderson said the top indicator impacting customer experience is being informed. With the supply chain shortage, for example, he recommended providing the “no update” update when parts are on back order.

“You can’t tell customers parts are on back order and then not call them for three weeks,” said Anderson.

“You need to call every week or every couple of days and say, ‘I have nothing new to report.’”

Today’s customers, according to Anderson, have liquid expectations, meaning they are fluid and everchanging.

“We’re moving to a world where consumers expect concierge service,” he noted.

Before the pandemic, 36% of accidents occurred outside of 8 a.m. to 5 p.m., according to NHTSA statistics. Since then, Anderson said that percentage has increased to 43%. As a result, he stressed the importance of having a digital presence 24 hours a day, seven

14 JUNE 2023 AUTOBODY NEWS / autobodynews.com

days a week, 365 days a year, which includes the company’s online reviews and certifications.

OEM Repair Procedures Anderson also shared information about connected cars. In 2019, there were nearly 50 million (up from 29 million two years earlier), and 7 in 10 households are expected to have one by 2023, according to Statista and CCC Intelligent Solutions. By year-end, it is anticipated 73.6% of vehicles will be connected through telematics, meaning the OEM will be notified following an accident.

Before a repair, Anderson recommended shops check the OEM procedures to determine if the car is connected and put it in service mode.

Otherwise, when it is disassembled, the OEM, the dealership service department and/or customer will likely receive a notification there is a problem.

In Anderson’s experience, the two main reasons shops don’t research OEM procedures are lack of time and knowledge.

“You need to learn how to use technology to give your people back more time,” he advised.

Mike Anderson, owner of Collision Advice.

By using technology to conduct tasks such as entering parts invoices, analyzing the VIN and sending texts to customers, Anderson said it provides time for employees to research procedures.

Learning a manufacturer’s safety inspections is also essential.

“Most OEMs, if not all, will have safety inspections for vehicles involved in a collision,” Anderson explained.

These include seat belts, steering columns, trim panels, pedals, etc.

As part of a total loss, Anderson reminded shops to remove a driver’s data, including their contact list and garage door code.

Marketing Anderson recommended shops implement marketing programs at community events such as first responders’ classes, Recycled Rides programs, car club open houses

and ladies’ nights out. He also suggests geofencing, which puts an electronic internet fence around specific GPS coordinates. Once a potential customer pulls up the GPS coordinate on the phone, the shop’s ad appears.

For shops becoming EV certified with a charging station, Anderson advised claiming the station and adding a listing on apps like PlugShare.

Electric Vehicles With 30-45% of cars projected to be electric by 2030, Anderson said shops will need to make decisions based on the demographics in their area. The Western U.S. continues to see the highest rates of battery electric vehicle (BEV) adoptions and BEV repairable claim frequency, according to the National Automobile Dealers Association (NADA). Some parts of the country, including the Mountain and Eastern regions, are experiencing a more rapid increase in BEV claim frequency.

“This suggests that the trend is expanding across the country, especially as charging infrastructure becomes more prevalent,” Anderson noted.

He said EVs will do what aluminum did not—separate the shops.

“Lack of knowledge on an EV will not only hurt the vehicle, but it can also kill you,” he shared.

He encouraged shops to learn when to remove the high-voltage battery, the ideal storage area, how to monitor and check it, and fire suppression.

Growing a Team Since the pandemic, Anderson said there are fewer people doing more work. Nearly 80,000 collision technicians are needed between 2020-2024, according to the TechForce Foundation in 2020. He advised shops to grow their teams by participating in programs such as the Collision Engineering Program, powered by the Enterprise RentA-Car Foundation and Ranken Technical College.

The program was designed to attract and develop entry-level talent for the collision industry and enhance the retention and advancement of technicians.

With the industry competing with employers like Amazon, Anderson recommended building a culture, evaluating how technicians are paid and the benefits offered, including flexible work schedules and career paths.

“I don’t believe in stealing fish from another man’s pond,” said Anderson.

“We need to recruit by offering a more competitive compensation package.”

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Karleigh Johnson Has Her Eyes on SkillsUSA National Gold

By Ed Attanasio

entered SkillsUSA and performed admirably, though he wasn’t able to get past the state level. He told High school senior Karleigh Johnson himself one day he would get a at Ratteree Career Development student to take the whole thing. One Center (RCDC) in Irving, TX, is a of his students, Hector Martinez, SkillsUSA star. She took the gold won the state competition his first medal at the SkillsUSA district year, but a technicality kept him from competition in February, held in going to nationals. The next year, Waco, TX, and then captured first Martinez finished second in the state, place at the state finals in Corpus just like Cano.

Christi, TX. And then in 2000, Cano finally found his collision star, a student named Geronimo Medrano, who won nationals under Cano’s tutelage. “He was a special kid and now he is doing well out in the industry, which is so satisfying,” Cano said.

For the past 23 years, Cano has been looking for his second champion, and Johnson may be the answer.

SkillsUSA is a national membership association serving high school, college and middle school students who are preparing for careers in trade, technical and skilled service occupations, including collision repair. It’s is a partnership of students, teachers and industry working together to ensure America has a skilled workforce. SkillsUSA helps Karleigh Johnson, left, a student at Rateree Career each student excel.

Development Center, with her teacher, Felix Cano, at More than 340,000 SkillsUSA Regionals students and advisors join SkillsUSA each year, Johnson was the sole female organized into more than 19,000 participant in the collision repair local chapters and 52 state and technician competition at state territorial associations. In 2017and now is headed for SkillsUSA 18, 19,500 teachers served Nationals, June 19-23 in Atlanta, GA. as professional members and Johnson’s instructor at RCDC, SkillsUSA advisors. Combining Felix Cano, is proud of his prize pupil. alumni membership, the total She is his only student to reach the number reached annually is more national competition this year, of five than 421,000. SkillsUSA has served who competed at the district level. more than 13.5 million members Cano has 52 students in his collision since its founding in 1965. repair program at RCDC, five of More than 600 business, industry whom are young women. and labor organizations actively The SkillsUSA Nationals are support SkillsUSA at the national like the Super Bowl of high school level through financial aid, in-kind collision repair, and Cano is a wellcontributions and involvement known top teacher and coach. He of their people in SkillsUSA is competitive himself, so whenever activities. Many more work directly Cano has a contender like Johnson, with state associations and local he’s thrilled. He is delighted with chapters. Commitment by industry Johnson’s presentation to date, and to the annual national SkillsUSA anticipates a strong performance in Championships is valued at more the nationals. than $36 million.

When she isn’t in class, Johnson The initial meeting between works at Toyota of Irving as a Cano and Johnson was random and technician, where they are also wonderful. enamored with her work.

“She was watching us weld and When he was a tech student, Cano doing body work during the third Autobody News

16 JUNE 2023 AUTOBODY NEWS / autobodynews.com

week of the class,” Cano said. “She asked ‘Could I be in your class?’ and I asked why. She said, ‘I know how to do mechanical already, and I want to learn collision repair now.’ She was direct and very respectful and I had a sense that she would be a good student. She is smart and wants to

“I have been training for this for so long and learned so much along the way.

Winning the SkillsUSA Nationals would help me in college and lead to other opportunities—so I am definitely excited!”

— KARLEIGH JOHNSON

COLLISION REPAIR TECH STUDENT

learn—everything you could want in a student.”

Cano sensed something with Johnson that intrigued him immediately, he said.

“Some students don’t want to compete, but Karleigh has those killer eyes,” Cano said. “When she decides to solve a problem or take on a challenge, she will succeed. That’s why I thought she would do well in the

SkillsUSA competition, because she is a competitor and comes prepared.”

Cano always trains his students to compete, on top of the knowledge and skills he shares with every student about fixing and painting cars.

“Karleigh is already doing the same things professionally at Toyota of Irving, so it’s not going to be that much different,” he said. “I always tell all of my SkillsUSA students to focus carefully on every detail; get everything done right the first time and take what I have taught you into practice.”

There will be a bigger crowd at nationals, but Johnson does not seem to be nervous when she thinks about her upcoming trip to Atlanta.

“When I get up there, I have the ability to stay calm,” she said. “I don’t get hyped up and I go with the flow.

Mr. Cano tells me to stay cool and do my best.”

Hopefully her best will bring her the gold, she said.

“I have been training for this for so long and learned so much along the way,” Johnson said. “Winning the SkillsUSA Nationals would help me in college and lead to other opportunities—so I am definitely excited!”

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Mike Anderson — From the Desk of Mike Anderson

Calculating the ROI in ‘Growing’ Your Own New Body Techs More collision repair shops are recognizing they’ll never be able to find all the experienced body technicians they will need, and they instead will need to develop one—or more—themselves. So they are hiring an apprentice, and either training them in-house or sending them to training while they work part-time in the shop.

It’s that model of schooling coupled with work experience that makes me a huge supporter of the Collision Engineering Program (www. beacollisionengineer.com).

Now in place at seven post-secondary schools—and growing—around the country, the Collision Engineering Program puts students through a two-year training regimen in which they rotate eight weeks at school, then eight weeks working within a shop.

I see many of my client shops doing the math and realizing they can receive a good return on their investment in helping a student complete a training program at a school that’s part of the Collision Engineering Program, or at one of the other quality collision repair training programs around the country.

In some cases, these shops are telling these prospective apprentices: If you successfully complete the program, in addition to your other pay and benefits, we’ll pay your monthly student loan payments as long as you’re working within our business.

So how does that pencil out?

Obviously, the cost of a student’s training can vary based on the school’s tuition, and on whether the student is attending a local school or needing room and board to attend a program elsewhere. But just for the purpose of this article, let’s say the cost the shop is committing to is $40,000. In this example, that covers two years of tuition and room and board while the student is spending each eight-week

period at the school. The student also finishes the program with a starter tool box and I-CAR credits.

How long will it take the shop to recoup its investment in that student and start generating a return? Let’s work through the math.

Prior to the pandemic, we were seeing the average body technician generating about $53,000 to $63,000 a month in gross sales. That number has risen in the last few years as the average number of parts per job— as well as ADAS-related steps—have increased overall repair costs. And I’ve seen technicians at shops with great estimators, particularly if they are working on higherend vehicles in markets with higher labor rates, producing as much as $75,000 or $80,000 per month in sales.

But again, for purposes of this exercise, let’s say the body technician you’re investing in is able to produce $60,000 a month in gross sales.

Now, say your shop is making a 43% gross profit. That’s unloaded without taking employee benefits into account. I know some shops making less than that, and some making more. But let’s stick with 43%.

If you calculate 43% of $60,000, that technician is generating $25,800 in gross profit per month for that shop.

For technicians reading this article, understand that is gross profit. That’s not net profit for the shop owner. Out of that gross profit, the shop has to pay its rent and utilities, pay its taxes and pay for its administrative staff, pay for training and the estimating system costs, etc.

So now let’s divide that $25,800 by the 180 clock hours the technician in this example works in a month (four weeks of 45 hours each). That technician is producing $143.33 in gross profit per hour. Again, this is just for the purposes of this article; some technicians produce more, others less.

Let’s just say your apprentice is able to produce $100 an hour in gross profit. It will take 10 weeks, at 40 hours per week, for that technician to generate gross profit equal to the $40,000 you invested in their education.

Again, that doesn’t take into account a lot of things, like the cost

18 JUNE 2023 AUTOBODY NEWS / autobodynews.com

of health insurance you provide, uniforms, vacation pay, workers’ compensation insurance premiums, etc. But even if you calculate it will take twice that long, 20 weeks, that’s still not a particularly long period for your investment to start providing a return.

“How long will it take the shop to recoup its investment in that student and start generating a return? Let’s work through the math.”

— MIKE ANDERSON

Aside from that, think of the loyalty you’re building in that technician who knows his or her student debt is being paid by the business as long as they work there.

I know with most shops being extremely busy these days, owners often hate the idea of sending

technicians to OEM or other ongoing training. But if that training improves their productivity or efficiency, the exercise we just walked through can show you the potential return on that investment.

It’s also a good calculation to perform when you think of anything that pulls that technician away from working steadily on vehicles.

Every time that technician has to go look for a part or a tool, every time that technician is writing their own supplement notes or having to walk to the office for something, that’s costing your shop the equivalent of $100+ per hour in gross profit.

That’s one of the reasons I’m a huge proponent of having an estimator/ repair planner working out in the shop, to help ensure the technicians are able to stay on task.

In any case, I think we all have to start thinking a little out of the box in terms of recruiting and retaining technicians, and making an investment into “growing your own” can have a significant return.

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Pennsylvania Traffic Deaths Fall 4% After Increasing For Years

By Anthony Hennen The Center Square

Pennsylvania recorded a slight decline in the number of traffic deaths in 2022, though some types of fatalities increased while others fell to the lowest level in decades.

Statewide traffic deaths fell to 1,179 in 2022, compared to 1,230 in 2021—a 4% drop, according to data released by the Pennsylvania Department of Transportation.

Overall crashes, too, have dropped: the agency noted reportable crashes fell to their second-lowest level since 1951.

Nationally, almost 43,000 people died in traffic crashes in 2022, a small 0.3% decrease from a year ago.

“Pennsylvania is committed to moving toward zero deaths,” interim PennDOT Secretary Mike Carroll said in a release. “Our biggest priority continues to be safe travel across all transportation modes, and we continue to work with our partners to decrease fatalities through education and enforcement.”

Some significant reductions

came from speeding crashes (down to 169 deaths compared to 201), deaths from hitting fixed objects (down to 361 compared to 397), and deaths from not using a seat belt (down to 354 compared to 378).

Shutterstock

Bicyclist deaths also fell to 15, compared to 24 in 2021.

Other types of crash fatalities, however, went up.

“Fatalities in distracted driving crashes and head-on crashes reached a 10-year high, while fatalities in crashes at signalized intersections reached a 20-year high,” PennDOT noted. “Pedestrian

fatalities reached the second highest number in 20 years, while fatalities in crashes involving 65- to 74-year-old drivers reached the third highest number in 20 years.”

Despite the recent reduction, traffic fatalities have crept up for years.

“While the overall decrease in Pennsylvania fatalities is encouraging, it’s important to note that the safety gains are not felt equally,” said Heidi Simon, director of thriving communities at Smart Growth America.

“Pedestrian fatalities are still seeing a historic rise. Cities and states should continue to look to policies and programs, such as Complete Streets, that support multi-modal transportation and prioritize the safety of our most vulnerable road users.”

Complete Streets is an approach advocated by SGA to redesign roads for safety and to include cyclists, pedestrians and other users beyond drivers.

Those reform ideas may be necessary to reverse the national fatality trend.

Nationally, non-pedestrian traffic deaths went up by 13% from 201020, and pedestrian deaths jumped by 54%. In Pennsylvania, pedestrian deaths went up 21% since 2019, as The Center Square previously reported. Distracted driving has also steadily risen in Pennsylvania as driver behavior has changed.

“Improvements in road design can benefit all road users and can encourage safe behavior much more effectively than behavioral education campaigns,” Simon said. “Even user-based causes like distracted driving can be mitigated by changes to the built environment.”

Smart Growth America advocates for changes such as lowering speed limits, redesigning streets to match lower speed limits, and reducing “conflict points” where different types of transportation modes meet.

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Nominations Open For Techs Rock Awards

Delaware State Supreme Court Reverses Ban on Tesla Store Sales

By Steven Loveday

The TechForce Foundation opened nominations for its annual Techs Rock Awards.

Winners in five categories will receive a prize package valued at $1,975 from TechForce partners Advance Auto Parts, AutoZone, Cengage Learning, CRC Industries, Ford Motor Company, Nissan, Snapon Industrial and WD-40 Company.

A grand prize winner will receive an all-expenses-paid trip to STX 2024 in Nashville, TN, valued at $3,000 courtesy of Advance Auto Parts, along with additional prizes valued at $6,000 from TechForce partners AutoZone, CRC Industries, Ford Motor Company, Nissan, Snapon Industrial and WD-40 Company.

For more information, and to nominate a tech, visit techforce.org/our-work/techsrock-awards/ Source: TechForce Foundation

InsideEVs

The Delaware Supreme Court officially reversed an earlier decision that made it illegal for Tesla to have a store in the state to sell its electric cars. Now, Tesla can own its own “dealership” and move forward with its direct-to-consumer sales strategy in the state.

Tesla still can’t sell its EVs in several U.S. states since it relies on direct sales. Essentially, lawmakers in the states that oppose Tesla sales believe the company would be breaking the law by owning its own dealerships and selling its own cars without a middle man. In such states, Tesla would have to agree to use a franchised dealership model to sell its electric vehicles.

In Delaware, a Superior Court decision denied Tesla the right to own its own dealership. The state’s Department of Motor Vehicles used the law to reject Tesla’s application to open a store in the state. The Delaware DMV rejected the application on the basis the law prohibits automakers from owning their

own dealerships in the state. Tesla appealed the decision, which went to the Delaware Supreme Court, resulting in another win for the EV maker.

Like some other states, Delaware did, at one time, let Tesla have a gallery store where it could show off its EVs. However, even though people could see them, they weren’t allowed to buy them.

Nonetheless, Tesla moved forward with opening a service center in the state as well. People in Delaware who wanted to buy a Tesla, or who visited the gallery and voiced interest, could complete their purchase in a neighboring state or online.

Now that Delaware has a Tesla service center and Supercharger stations, the cars are becoming popular in the state. This came despite the workarounds necessary for completing a Tesla purchase.

As far as the Supreme Court case is concerned, the ruling pointed attention to similar rulings in other states that now allow Tesla sales via the direct sales model. It pushed back against

car dealership associations and multiple arguments from the Delaware Department of Motor Vehicles.

The justices in the case ruled as follows, according to Delaware Business Now: “The General Assembly enacted the Franchise Act to address the disparity in bargaining power, which permitted new motor vehicle manufacturers to exert economic pressure over their franchises. Its definitions exclude Tesla and its direct sales model, where new electric cars are not sold through franchised dealers in Delaware.”

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Rivian Expands its Certified Collision Network as Production Increases on Adventure EVs

By Stacey Phillips Autobody News

Since the first collision repair facility joined Rivian’s Certified Collision Network (RCCN) in Oregon in July 2020, more than 30,000 Rivian electric adventure vehicles have been manufactured and 135 shops are part of the RCCN program.

Frank Phillips, senior manager, certified collision North America at Rivian, discussed the OEM’s certified collision network program during the AkzoNobel ACOAT Selected North American Performance Group (NAPG) event in Florida earlier this year.

Rivian’s flagship R1T was ranked “Best EV Ownership Experience among premium Battery Electric Vehicles” by J.D. Power in 2023.

Rivian was founded in 2009 as Mainstream Motors by Robert “RJ” Scaringe and later renamed Rivian, a wordplay on the Indian River in Florida, where Scaringe grew up. The company, headquartered in Irvine, CA, began focusing on autonomous and electric vehicles (EVs) to create products and services that help the planet transition to carbon-neutral energy and transportation.

Today, Rivians are built in the U.S. at the company’s approximate 4 millionsquare-foot manufacturing facility in Normal, IL, a former Mitsubishi factory.

Currently, three products are being produced. The OEM’s flagship R1T, introduced in September 2021, was ranked “Best EV Ownership Experience among premium Battery Electric Vehicles” by J.D. Power in 2023.

The company also manufactures a seven-passenger SUV, the R1S, which received the Insurance Institute for Highway Safety (IIHS) TOP SAFETY PICK+ for the 2023 model year. In addition, Rivian has been contracted to develop and manufacture 100,000 electric delivery vans (EDVs) for Amazon.

Currently, Rivians can be purchased online. As part of owning one, the auto manufacturer offers insurance policies to customers in 48 states through Rivian Insurance Services, LLC. The agency provides auto, homeowners, renters, umbrella

and more.

Phillips said the OEM has created a unique culture with a personalized customer experience.

“We have loyal customers who have stood in line for four years in some cases—when the Rivian was launched in 2018—to get their vehicle,” said Phillips. “We still have several others patiently waiting to get theirs. It’s important to us to create an experience that returns that loyalty.”

Rivian has established a similar experience and culture with its certified network program.

“We believe it is really going to disrupt what many of the OEM programs around the country have done traditionally when it comes to certification,” said Phillips. “We want to make sure that shops are properly trained, educated and equipped to fix the Rivian safely and properly.”

He said Rivian’s approach is to revolutionize the industry by creating an efficient and highly trained collision repair network.

“That’s our focus every day,” he said. “When we wake up and come to work, we start thinking about how we are going to help our collision certified network become better and continue to improve.”

The certified network consists of four programs, one for its passenger vehicle line, another for the OEM’s commercial line, which allows facilities to repair Amazon EDVs, and a third for the business-to-business segment. In addition, a new program is being introduced this year for diagnostic certification focused on calibration.

In addition to Phillips’ counterpart in Amsterdam, Hank Berkhof, the team is led by Kelly Logan, senior manager of collision repair, and his engineering team, which includes Dan Black, manager of service engineering; David Sosa, manager of the R&D workshop; Brandon Chittenden, manager of service vehicle data; and Taylor Jozwiak, technical collision repair operations manager.

Phillips said they are all experienced technicians who have worked in body shops in different capacities. “They’ve all been boots on the ground in that difficult situation that you guys find yourselves in every day, and that’s fixing the car that has been wrecked,” he said.

The team regularly visits its network shops to offer support and ensure their success. In addition, Rivian has a vendor program geared toward business-to-business relationships.

Rivian’s service engineering department uses CAD to determine how to repair cars safely and properly

22 JUNE 2023 AUTOBODY NEWS / autobodynews.com

and then develops clear, effective and efficient repair and calibration procedures, ensuring compliance.

The procedures are then sent to the collision research and development workshop, where a hands-on validation of the repair procedures, tools and equipment is performed at the OEM’s collision center to ensure accuracy and quality.

Rivian has been contracted to develop and manufacture 100,000 electric delivery vans (EDVs) for Amazon

“We do everything from paint to structural repairs,” explained Phillips.

“It’s important that we make sure our paint color matches the availability of formulas.”

Collision centers that are part of Rivian’s certified repair network are then provided with the vehicles’ repair methods and procedures.

“Independent collision centers have made the commitment to partner with Rivian and we want to provide the tools and information needed to deliver an excellent customer experience,” he said.

The company’s data is housed at CCI Global Technologies, Rivian’s data aggregation partner, along with ITAS, the management tool used by network members.

“It allows shop owners to manage all of the things required for the program in a very interactive way,” Phillips explained.

Since joining the company in 2020, Phillips has visited more than 1,000 body shops, evaluating locations to qualify them for certification. Rivian is actively seeking additional facilities to take part in the program.

“To become certified, centers must meet specific requirements such as being up to date on training, having the specialty tools necessary to perform repairs and being conveniently located,” he explained.

Phillips said the OEM has high standards for those interested in joining.

“If you’re a well-equipped shop and you’re currently working on modern vehicles, you’re going to have the majority of the things required to be on the program,” noted Phillips.

A key element of the program is based on relationships. These include the relationships Rivian has

with its certified network and facilities have with customers.

“It’s about ascertaining that are you committed to working with a customer who is in a bad situation and you’re going to deliver the same type of experience Rivian provides its customers,” explained Phillips.

“I’ve got to know without a shadow of a doubt that you’re going to stand beside me shoulder to shoulder as we venture into this new car business.”

Those interested in being part of the network must go through a credit check and sign a participation agreement.

After getting set up with the required tooling and equipment, collision repairers are provided training. Once the equipment is onsite and training is complete, a facility goes through a final validation before working on Rivian EVs.

Frank Phillips, manager, certified collision North America at Rivian.

Shops can also expect postcertification actions where team members conduct a quality assessment to ensure the proper equipment is used and OEM procedures are followed.

“It’s really focused on the customer and repair quality is how we deliver the best outcomes,” said Phillips.

Rivian manufactures its batteries and drive units in-house, as well as many of the components. Currently, only certified collision centers have access to Rivian parts. In the future, the auto manufacturer expects to offer unrestricted parts to non-certified collision centers for structural components, such as fenders and bumpers.

However, with the car’s sensors and cameras, Phillips said almost every repair on a Rivian EV will require calibration. As a result, facilities must have access to a diagnostic capability. This can be an in-house operation or as of 2023, a partnership with a Rivian Certified Diagnostic Center (RCDC), a new certification added to the certified network to better support this repair requirement.

“We want to ensure the vehicles are fixed safely and properly, but also deliver that customer experience that we all expect,” he said.

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Cole Strandberg

EVs: Opportunities Outweigh Challenges for Collision Repair Shops As the automotive industry continues to shift towards electric vehicles (EVs), collision repair businesses have a significant opportunity to stand out by investing in the training and equipment necessary to repair EVs properly.

While EVs offer many benefits, including reduced emissions and lower operating costs, they do

present unique challenges when it comes to collision repair.

One of the main differences between repairing an EV and an internal combustion engine (ICE) vehicle is the safety considerations.

In an ICE vehicle, the primary safety concern is fuel, while in an EV, it’s the high-voltage battery system. Highvoltage batteries require specialized knowledge and equipment to disconnect and remove them safely from the vehicle during repair.

Collision repair businesses must invest in safety equipment and ensure their technicians are properly trained in handling and disposing damaged batteries.

Another challenge for collision repair businesses is the need for specialized diagnostic equipment to identify and repair faults in the electrical system. EVs have complex electrical systems that require specialized diagnostic equipment to interface with the car’s computer systems and determine the extent of the damage. This diagnostic equipment can be expensive, and not all repair businesses may have the resources to invest in it.

However, this investment can pay off in the long run, as it allows technicians to accurately identify the damage and ensure the vehicle is fully repaired to its original standards.

Additionally, this investment serves as a moat, of sorts, against the competition. For shops willing to invest, the growth opportunities provided by EVs are immense.

EVs also have unique structural components that require specialized knowledge and training to repair. For example, many EVs have aluminum or carbon fiber bodies that require specialized welding techniques.

Repair businesses must have the necessary training and certification to perform these repairs properly.

Failure to do so can result in additional damage to the vehicle or even compromise its safety.

This, among other reasons, will likely force collision repairers to specialize. While this evolution toward specialization among collision repairers is already underway, this process will likely only continue to speed up as cars continue to become more advanced and parts become even more difficult to obtain.

Investing in the training and equipment required to repair EVs properly can also represent a significant opportunity for collision repair businesses. As more consumers choose EVs over ICE vehicles, the demand for skilled technicians to repair these vehicles is only going to increase. By positioning themselves as experts in the field, collision repair businesses can set themselves apart from their competitors and capitalize on this growing demand.

Moreover, manufacturers are now providing more support to collision repair businesses that wish to invest in training and equipment to repair EVs properly. For example, Tesla has developed a collision repair program that provides collision repair businesses with access to specialized training and equipment to repair its vehicles. Rivian offers a helpline for shops within their collision program, providing real-time assistance from a real person for any technical questions or issues shops might have.

In addition, some manufacturers are also providing repair businesses with access to online resources and support to help them repair EVs properly. These resources can include technical manuals, repair procedures and diagnostic tools, all of which can help repair businesses accurately diagnose and repair damage to EVs. Finally, investing in the training and equipment necessary to repair EVs properly can also help repair businesses attract new customers.

As more consumers become aware

24 JUNE 2023 AUTOBODY NEWS / autobodynews.com

of the benefits of EVs, many will be looking for repair businesses that have the skills and expertise to repair their vehicles properly. By investing in training and equipment, repair businesses can position themselves as leaders in a rapidly evolving

“As the automotive industry shifts towards EVs, collision repair businesses have an opportunity to stand out by investing in the training and equipment necessary to repair them properly.”

— COLE STRANDBERG

industry and attract new customers who are looking for quality repair services.

In conclusion, as the automotive industry shifts towards electric vehicles, collision repair businesses have a significant opportunity

to stand out by investing in the training and equipment necessary to repair EVs properly. While this investment can be challenging, it can also pay off in the long run by positioning businesses as experts in the field, attracting new customers and benefiting from the growing demand for skilled technicians to repair EVs. With the right investment in training and equipment, collision repair businesses can remain competitive and grow their business in an increasingly electrified transportation sector.

If you’re interested in the world of EVs and their impact on the collision repair industry, be sure to check out The Collision Vision, Autobody News’ collision business-focused podcast.

In Episode 6, we feature Kelly Logan, senior manager for Rivian’s collision repair program. We’ll have more EV-focused content coming soon. You can find information about The Collision Vision at www. autobodynews.com/podcasts.

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Fully Restored Porsche 914/6 Stays in Family for More than 50 Years

By Ed Attanasio Autobody News

Brent Maxwell, 37, manager of the national accounts team for TRANSTAR, shared a story about a classic Porsche 914/6 in his family since 1970. His father, Jack, bought it while serving in the U.S. Army in Germany and it has been in the family ever since.

Q:

Why is this vehicle considered so rare and coveted by collectors?

A:

Basically, the difference is the six cylinders. 118,978 914s were made, and only 3,332 had six cylinders. The Porsche 914 was a joint development between Porsche and Volkswagen and was the new Porsche entrylevel model in 1970. The two-seater, also known as the “VW Porsche,” was a mid-engine sports car.

Striking design features included the very long wheelbase for the vehicle length, short overhangs, the removable roof center panel made from glass fiber-reinforced plastic as well as the wide safety bar. The 914 also featured pop-up headlights.

ordered it before he left the U.S. without seeing a picture, but knew it was a mid-engine two-seater. When he first got to Germany, he was driving a little Volkswagen Bug until it was ready. He had it delivered to Belgium because there was no sales tax, and then rode the train down and picked it up and drove it back into Germany.

This two-seater, also known as the “VW Porsche,” was a mid-engine sports car.

“In 2005…it was my first paint job that I’d ever done outside of what we learned in class on a few panels.”

— BRENT MAXWELL

The 914/6 obviously is the rarest of the 914s. It’s a first year but then it’s also a U.S. spec Euro delivery car. He knew he was going to bring it back to the States, so he ordered the U.S. version. But they actually delivered it in Europe, which is pretty uncommon.

I think he’s probably the longest original owner of a 914/6. He has all the original paperwork and title. We are trying to find out if he is surely the longest original owner.

apart sometime in the 1980s. It sat disassembled for a long time.

I mean, it was at that time the cars weren’t as valuable as they are now.

The shop that ended up doing some of the restoration work was Huber Restorations in Tulsa, OK. They are known for their work on Porsche, Mercedes, German cars, etc. and do amazing work.

Q: A:

You were able to paint the vehicle while in tech school?

In 2005, I was in the Tulsa Technology Collision Repair Program with Mr. Brian Buford and we brought the car in and it was my first paint job that I’d ever done outside of what we learned in class on a few panels. So that was whenever we got it painted

and finished what had been done by the previous restoration shop. I had some friends of mine that were students who helped me paint it.

In 2016, I repainted the exterior at Straightline Auto Restoration, after my dad rebuilt the motor, and it was finally roadworthy and what it looks like now, as far as having the interior done and everything else like that completed on the vehicle.

Q: A:

Does the car get used on a regular basis?

Yes, it’s fun to drive. It’s been in a few different shows. My dad takes it out to the cruise nights that are here in Tulsa. I’ve already threatened my 8-year-old son Jack that he’s not allowed to sell the car and it’s going to stay in the family!

Acura of Westchester

The 914/6 has been in the family since 1970.

At the time of its launch, the 914 was available with two engines.

914 had a 1.7-liter flat-four engine with 80 hp from Volkswagen. The 914/6 had a 2.0-liter flat-six engine with 110 hp from the Porsche 911 T. In the six-cylinder models, the ignition lock was located to the left of the steering wheel, where it is typically found in Porsche vehicles.

The wheels of the 914/6 are 14-inch Fuchs mounted with five wheel nuts, and the car was built by Porsche at the main plant in StuttgartZuffenhausen.

Q: A:

How did your father Jack acquire the car?

Yes, he was an Army captain at that time and ran a motor pool over in Germany. He special

Q:

Did he drive the car a lot in Europe before bringing it

home?

A:

Yes, he was really into Formula 1. He drove the car all over Holland, England, Germany, Belgium and went to many of the different Formula 1 races back then.

So, the first original 40,000 miles of the car is all in Europe, a lot of that on the Autobahn and just going around to different races.

He brought it back here in 1973 and had it delivered by boat to Florida.

He drove it straight from there to New Mexico where he lived at that time.

And then he packed up everything in New Mexico and moved to Tulsa, OK, where we live now.

I think the car was originally taken

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Bronx Lawmakers Want To Bring Auto Repair Shop Oversight

By John Whittaker Post-Journal

A pair of New York state senators want to bring more oversight of local car repair shops—including allowing a history of parking violations or other complaints to be part of the ability to register cars or receive a state license to operate.

Sen. Gustavo Rivera, D-Bronx, and Sen. Luis Sepulveda, D-Bronx, have introduced S.5936 to amend the state Vehicle and Traffic Law to create a system in which motor vehicle and repair shops are overseen by a commissioner to make sure they are operating legally.

Companion legislation (A.6951) has been introduced by Assemblyman George Alvarez, D-Bronx.

As written, the legislation would add to existing registration requirements that the commissioner be required to consider the history of violations of state law or reported criminal activity at the location, the effect of vehicle traffic and parking and any other factors specified by state or local law. Local boards would be able to provide a certified letter of support to be considered

when the state considers a new license for a repair shop.

The commissioner would also be given the power to consider a history of repeated parking violations and complaints from municipalities and community organizations as factors to approve or renew a repair shop’s certificate to operate.

Sepulveda, Rivera and Alvarez also propose allowing a public hearing to determine if a repair shop’s certificate of registration should be approved or denied.

“This bill will allow community input on auto shop licensing from their local community board, municipality, and DMV commissioner,” the lawmakers wrote in their legislative justification. “This will allow residents to provide feedback on the community impact of local auto shops during the license renewal process, alerting auto shop owners and the DMV of local impact. Community input prior to licensing and relicensing is not a new idea, it is similar in nature to the SLA soliciting community input prior to granting liquor licenses. Auto shops affect their neighborhoods in various ways, so approval of

their application or renewal of a certificate of registration should be subject to a review by the DMV commissioner with the consultation of the local municipalities or community boards.”

The legislation wouldn’t apply to home-operated repair shops that operate without state licensing. And many of the issues cited by Alvarez, Rivera and Sepulveda are specific to New York City. The lawmakers cite the inability of the New York City Police Department and Department of Sanitation to tow vehicles parked in front of auto shops that are illegally parked every day and say fines and fees aren’t enough to prohibit illegal parking in the city.

Under current law, the state Motor Vehicles Department does not accept complaints regarding auto shops’ illegal parking in residential areas and does not consider the community impact on the community when considering state-required licenses.

“Some auto shop businesses participate in illegal activity such as using residential parking for cars under repair and parking cars under repair on the sidewalk, blocking

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traffic and preventing residents from getting to and from their homes as they are forced to travel in the street,” Sepulveda, Alvarez and Rivera wrote in the legislative justification.

“This particularly hinders disabled people from using pedestrian pathways. Neighboring businesses are impeded from receiving goods via truck deliveries.

This practice by auto shops also limits residential parking in dense neighborhoods. It is unfair for auto shop businesses to restrict both public sidewalks, traffic flow, and parking from the community for their commercial purposes. These impacts and other input from community members should be important for the state to consider as these businesses seek various approvals, so this bill creates processes in New York City to operationalize such input.”

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EV Fee In Pennsylvania electric vehicle charging stations across the commonwealth over the next five years to accommodate the growing number of EVs on the road.

Almost 70,000 EVs are registered in Pennsylvania.

Previous discussions have centered on an EV fee equivalent to the gas tax, as The Center Square previously reported. The fee would be paid as a separate registration fee annually. Already, 32 states have an EV registration fee and 19 assess a fee on plug-in hybrid vehicles, as well.

In Pennsylvania, however, that proposed fee wouldn’t fill the growing financial hole to pay for the state’s infrastructure maintenance and repair needs.

“The gas tax has been diminishing in value for two decades as fuel efficiency has increased and cars use less fuel,” said Nick Miller, policy analyst with the Electrification Coalition. “If a flat $290 annual fee were to be implemented on all EV drivers in the state tomorrow, it would raise roughly $19.5 million this year.”

The money, however, won’t plug the hole for transportation funding.

“PennDOT estimates that it

requires $9.3 billion a year in additional funding for our roadway system,” Miller said. “Therefore, EVs are a piece of a much larger puzzle here regarding alternative funding of the funding solution, not the whole solution.”

An EV fee has won support from some industry representatives who were previously against it.

Wayne Weikel, vice president of state affairs for the Alliance of Automotive Innovation, said his group has come around on EV fees.

It’s “the best path forward,” Weikel said. “EV fee is the worst form of collecting road user fees—except for all the others that we’ve thought of.”

Other ways to raise revenue can be burdensome. A tax on the electricity used to charge vehicles, Weikel said, has a high cost to install a meter at home. Taxing the vehicle miles traveled would require tracking and

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monitoring drivers, which people “hate the idea of.”

A road use fee, however, avoids those issues and has lower costs.

“The state likely needs very little extra administrative costs to administer an EV fee,” Weikel said. “It ensures no one is getting a free ride and everyone is contributing to the upkeep of the roads they use every day.”

It could also be a stable and predictable revenue source. That predictability has attracted the support of the Pennsylvania Building and Construction Trades Council.

“We need a true infrastructure budget and a plan, and the flat fee allows us to control that,” said Robert Bair, president of the council. “We just think a one-time yearly fee is the appropriate direction at this time so we know what our infrastructure budget is gonna be.”

NABC Announces 2 New Team Members The National Auto Body Council announced April 19 it has welcomed two new team members to the organization, Alison Ilg and Katy Schaan, to support the its growing membership, national programs and operations. Ilg will handle public relations and marketing for the NABC, its premiere programs and its members. Ilg has spent her career helping businesses create and implement results-oriented national and trade media relations, internal communications and social media programs. From mid-sized companies to Fortune 500 corporations, her expertise focuses on B2B and B2C initiatives, as well as internal communications. Schaan joins NABC as the executive administrator, bringing years of experience in bookkeeping, payroll, administrative support and business operations through her company, Haven Street Consulting.

She has served as the VP of operations for a small Midwest-based real estate investment company, overseen payroll integrations with external vendors, and led multiple functional areas for a technology company.

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WIN Hosts Annual Educational Conference

By Abby Andrews

Hiring and Retaining Employees Panel Discussion the second day, Jamie The Women’s Industry Network On (WIN) held its annual Educational Shackleford of Caliber moderated Conference, May 1-3 in San Antonio, a panel discussion on “Hiring and TX, themed “Reimagining Tomorrow,” Retaining Good People,” joined by offering a three-day chance for Jennifer Mayer of the TechForce women in the collision repair industry Foundation, Keith Schaefer of Universal Technical Institute, Sullivan to connect, learn and celebrate.

This was the second year the of GM, Mica Carawan of USAA, Olivia Peterson of Gerber Collision and conference offered attendees the Glass, and Yohanna Peet of Caliber. choice to attend in person or virtually.

The panelists talked about how to market the industry to Gen Z’ers aging into the workforce, cast a wider net when “fishing” for talent and retain good employees.

Petersen said the industry should be looking for people with Jamie Shackleford, far right, of Caliber moderated a panel any hands-on discussion on hiring and retaining employees, which included panelists, far left to right, Jennifer Mayer of the TechForce skills, to “find Foundation, Keith Schaefer of UTI, Megan Sullivan of GM, Mica ways to translate Carawan of USAA, Olivia Peterson of Gerber Collision and Glass skills that may and Yohanna Peet of Caliber. seem completely unrelated into In her opening remarks May 1, something they can do in collision WIN Board Chair Tanya Sweetland repair.”

“Anyone is a [job] candidate,” Peet thanked everyone for taking the time said. out of their schedules to invest in “The pond is pretty darn dry,” Mayer themselves and their futures. She said. “We need to talk about how to said WIN recently hit a new record number of members—800, more stock the pond and bring people into than half of whom represent sponsor the industry. Less than 3% of techs are women, so if you want to solve the organizations.

The three-day event featured tech shortage, welcome women.”

Mayer also said Gen Z is socially many inspiring speakers, including Gina Schaefer, founder and CEO conscious and wants to have a positive impact, so it’s important the of a chain of Ace Hardware stores in Washington, D.C.; Patricia Walsh, collision industry tells them why what they’d be doing matters. an engineer, Paralympian and Gen Z also wants to know why world record holder in the 140-mile they should learn a skill, how they will paratriathlon distance; Shayla Rivera, a NASA aerospace engineer who be able to put it to use even if they is now a corporate trainer, speaker, change careers, what pay and career comedian, writer and professor; advancements they can expect and Maysoon Zayid, a comedian, actress, how they can achieve an acceptable writer and disability advocate; and work-life balance.

“People fall into the insurance and Megan Sullivan, collision program collision industries,” Carawan added. manager for GM. Also packed into the event were an “We don’t do enough to talk about NABC Recycled Rides presentation how exciting this career is.”

To retain employees, Sullivan said, to two U.S. military veterans, a recognition of WIN scholarship help them see their path forward.

“A college grad is not just looking at winners and a gala awards ceremony, to recognize this year’s Most Influential the data analyst job [GM] is offering them, but looking at the lifelong Women winners.

Attendees also had two career they could have with your opportunities to give back, making company,” she said.

Petersen said when an employee no-sew blankets and writing cards for the troops via the nonprofit Soldier’s has the drive to improve, employers Angels, and participating in a walk should do whatever they can to help to raise money for WIN’s scholarship them. She suggested compensating for training, to keep employees “at the fund.

Autobody News

30 JUNE 2023 AUTOBODY NEWS / autobodynews.com

top of their game when repairing these extremely sophisticated vehicles rolling out today.”

Schaefer said the industry has to “stop using economics to repair cars” and pay employees more.

“We have to compensate them if we’re going to keep young people in the industry,” he said. “They have to buy tools to build more skills, to buy more tools, etc. That is something that’s aggravated me forever. They don’t see an end.”

prototype development, augment the aftermarket repair supply chain and allow for the customization of parts, providing the “ultimate personalization opportunity.”

Connected data—telemetry—is already transforming how USAA and its customers do business, as it can be used to write usage-based policies and get the repair process started immediately after sensing a collision.

That same data could help collision repairers by enabling virtual estimations and streamline parts ordering.

USAA is using digital learning modules, which offer more flexibility and immersive, hands-on training for new claims adjusters. The same can work for collision repairers, Creech said.

Porsche dealership technicians are already using smart glasses to link to the OEM’s tech support, allowing them to see in real time what the technician is seeing and help them troubleshoot issues.

“We can’t implement everything overnight; we have to plan for the long term,” Creech said.

WIN Conference Committee cochairs Yolanda Sandor and Blair Womble announced next year’s conference is set for May 6-8, 2024, in Newport Beach, CA. Registration will open in late 2023.

Embracing New Technology On the third day, Charlotte Creech, executive director for innovation for USAA, presented “The Future is Now,” in which she discussed how embracing advancing technology— rather than fearing it—can create unlimited opportunities amidst the unprecedented headwinds currently faced by the collision repair industry.

“There are real opportunities for us to serve our customers well while running our businesses more efficiently, by reducing friction and pain points during the repair cycle,” Creech said.

Creech gave examples of technology USAA is working with, “to help spark some interest to see what the future might look like.”

3D printing could speed up

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Dept. Hours: M-F 7-7; Sat 8-4 frankp@davisacura.com autobodynews.com / AUTOBODY NEWS JUNE 2023 33

Topics Announced For ASE Training Conference The upcoming ASE Instructor Training Conference will feature speakers from leading transportation industry organizations. Hosted by the ASE Education Foundation, the premier training event will be held July 17-20 in Concord, NC, and will be attended by high school and college instructors from auto, truck and collision repair programs nationwide.

The 2023 ASE Instructor Training Conference will include presentations on changes in brake service; heavy duty lubricants, fuels and coolants; digital multi meter features and training; combining testing techniques, diagnostic tooling and service information to solve dilemmas; unlocking the power of discussion; TPMS system types and how they operate; and parts needed to do an engine swap.

For more information and to register, visit www.eventsquid. com/event.cfm?id=19408 Source: ASE Education Foundation

Rhode Island Adopting Clean Cars, Trucks Emissions Policy

By Brent Addleman The Center Square

Rhode Island will join seven states to rein in carbon pollution.

Democratic Gov. Dan McKee said May 10, along with state officials and legislators, the state will adopt clean car and truck emissions standards to reduce greenhouse gases. The policy would slash tailpipe emissions from cars, trucks and SUVs. “The Act on Climate put us on the clock for meeting major carbon reduction mandates, and it’s clear to me that Rhode Island will only meet the mandates by addressing the transportation sector headon,” McKee said in a release.

“Implementing the Advanced Clean Cars II and Advanced Clean Trucks, policy will help us do exactly that, minimize smog across the state but especially in environmental justice communities, and ensure adequate customer choice on electric vehicles in the future.”

The Ocean State joins Washington, Virginia, Vermont, Oregon, New York and Massachusetts in joining the

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Advanced Clean Cars II and Advanced Clean Trucks standards.

Connecticut, Colorado, Delaware, Maryland and New Jersey are considering adopting the standards, according to a release.

Through the Act on Climate, the release says, Rhode Island is working to reduce vehicle emissions which cause nearly 40% of greenhouse gas emissions in the state. Regulations require manufacturers to deliver more clean vehicles to consumers in the state.

According to a release, all new cars imported to the state, under regulations filed by the Department of Environmental Management, require those cars to be non-gas

powered, under the adoption of the Advanced Clean Cars II and Advanced Clean Trucks standards.

“As we work to advance our clean energy and energy efficiency objectives, we remain steadfast in our commitment to also lowering our transportation emissions through electric vehicle adoption,” interim State Energy Commissioner Chris Kearns said in a release.

“We have seen Rhode Islanders respond strongly to the state’s electric vehicle rebate program since it launched last July. The Advanced Clean Cars II and Advanced Clean Trucks regulations and process, which Gov. McKee has announced today, will help make significant strides towards our goal of achieving netzero emissions by 2050.”

The emissions policy, according to a release, originated in California to reduce smog-causing pollution and greenhouse gases from the state’s light-duty fleet of vehicles.

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Parents Sue Kia Kevin Payne Jr., 16, and Ahjanae Harper, 14.

The teens who died were ejected from the Sportage.

The 16-year-old driver suffered minor injuries and was released from the hospital. At the time he was charged with criminal possession of stolen property and unauthorized use of a vehicle, then released to later appear in court.

Currently he is facing much more serious charges, including four counts of second-degree manslaughter.

Another occupant of the stolen Sportage was a 14-year-old girl who was hospitalized and later released.

The Kia theft lawsuit was filed by the mothers of Kevin Payne Jr. and Swazine Swindle, and both mothers claim the only reason their children are dead is because the Kia Sportage was not equipped with an immobilizer.

The lawsuit alleges the teens lost their lives “because of the reckless and negligent behavior of Kia” which “caused their beloved sons’ premature deaths.”

Hyundai and Kia Theft Lawsuits Since the Hyundai and Kia theft videos began appearing online in 2021,

more than 200 lawsuits, mostly class actions, have been filed against the automakers blaming them for the thefts and resulting damage, injuries and deaths. Those lawsuits allege all 2011-2021 Hyundai and Kia models are defective, and at least 17 state attorneys general have joined the bruhaha and told Hyundai and Kia to recall all the vehicles. In addition, multiple insurance companies have also sued the automakers.

However, federal safety defect recalls are issued for safety defects, not because criminals break into vehicles and steal them.

Furthermore, numerous cities have filed lawsuits against the automakers by alleging it isn’t the fault of teenage criminals in their cities that have caused the thefts. Those cities claim Hyundai and Kia caused the problem because non-mandated engine immobilizers were not included on the stolen vehicles. One of those cities that sued is Buffalo, where the four New York teens died in the stolen Kia Sportage.

Although multiple cities and states blame Hyundai and Kia for the thefts, some of the teens involved in the thefts have been arrested, but they were immediately released from custody.

In one incident which occurred in New York, two boys, ages 15 and 16, stole a Kia, crashed the vehicle then fled the scene. Police later found the

two teens and took them into custody.

However, they were only issued appearance tickets and released.

This was after the 16-year-old had already been issued an earlier appearance ticket and released after stealing a Hyundai vehicle two weeks before. And days ago, Chicago teens stole a Hyundai which crashed into a vehicle carrying a family in a Ford truck.

Chicago police said two boys, ages 17 and 14, face one misdemeanor count of criminal trespassing. The crash killed a 6-month old child.

Most Stolen Vehicles in 2021 More than 200 lawsuits and other actions claim the thefts and crashes were caused by a lack of engine immobilizers in all 2011-2021 Hyundai and Kia models. If the problem is due to a lack of engine immobilizers, then it follows model year 2011-2021 Hyundai and Kia vehicles would be on the top of the list for most stolen models.

However, in 2021 before teenage criminals were being influenced by online videos, no Hyundai or Kia model made the top 10 most-stolen vehicle list in 2021 based on data from the National Insurance Crime Bureau (NICB).

Top 10 Stolen Vehicles For 2021 1. Chevrolet Pick-Up (Full Size) 2. Ford Pick-Up (Full Size)

3. Honda Civic 4. Honda Accord 5. Toyota Camry 6. GMC Pick-Up (Full Size) 7. Nissan Altima 8. Honda CR-V 9. Jeep Cherokee/Grand Cherokee 10. Toyota Corolla The research doesn’t track how many of those stolen vehicles were equipped with engine immobilizers.

Additionally, lawyers haven’t announced if the above automakers will be sued because criminals broke into and stole the vehicles.

Hyundai and Kia have always insisted teenagers are causing the problems, not a lack of immobilizers.

The automakers say all the vehicles meet federal safety standards, but because of all the heat poured on them, Hyundai and Kia are taking action to make it more difficult to steal the vehicles.

The Kia theft lawsuit was filed in the U.S. District Court for the Western District of New York: Sherisse Payne, Individually, and as the Proposed Administrator of the Estate of Kevin Payne, Jr., and Tysheen Daniels, Individually, and as the Proposed Administrator of the Estate of Swazine Swindle, vs. Kia Corporation, et al.

The plaintiffs are represented by MLG Attorneys At Law, APLC, and Richmond Vona, LLC.

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ASE Announces New EV Standards, Certification The National Institute for Automotive Service (ASE) announced the creation of EV technician/shop personnel electrical safety standards.

The purpose of the standards is to provide guidance, document and establish electrical safety requirements, standards, procedures and safe work practices relating to the development of an electrically safe working area for service professionals in North America working on or around electrified vehicles (xEVs). The intent is to minimize exposure to these hazards and their associated impacts.

In addition to the EV Standards, ASE has developed a new testing and certification program for all xEV vehicles including light duty and medium/heavy duty hybrid/ electric vehicles (EV) based on the standards.

To learn more about the new standards and program, visit www.ase.com/ev.

Source: ASE

Man Sentenced For Drug-Trafficking Was Laundering Money Through CT Auto Repair Shop William “Willy” Valerio-Palermo, 37, a citizen of the Dominican Republic last residing in East Hartford, CT, was sentenced April 13 by U.S. District Judge Alvin W. Thompson in Hartford to 70 months of imprisonment for trafficking acetylfentanyl, a fentanyl analogue.

Vanessa Roberts Avery, U.S. attorney for the District of Connecticut, made the announcement.

According to court documents and statements made in court, in 2018, law enforcement received information that Valerio was trafficking kilogram-quantities of fentanyl and was using his Hartford auto repair business to launder drug proceeds. On July 12, 2018, a court-authorized search of a West Hartford apartment Valerio rented found approximately 6 kilograms of acetylfentanyl, items used to process and package narcotics, and approximately $49,000 in cash.

Valerio has been detained since his arrest July 12, 2018. He pleaded

guilty July 6, 2021. Valerio faces immigration proceedings when he completes his prison term.

This investigation was conducted by the DEA’s Hartford Task Force and the FBI’s Northern Connecticut Gang Task Force. The Drug Enforcement Administration’s Hartford Task Force includes personnel from the DEA Hartford Resident Office, the Connecticut State Police and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic police departments.

The FBI’s Northern Connecticut Gang Task Force includes the Hartford Police Department, East Hartford Police Department, New

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autobodynews.com / AUTOBODY NEWS JUNE 2023 37 1/31/23 10:56 AM

Roadway Fatalities Appear To Remain Flat in 2022 After 2 Years of Dramatic Increases The National Highway Traffic Safety Administration has released its latest projections for traffic fatalities in 2022, estimating 42,795 people died in motor vehicle traffic crashes.

This represents a small decrease of about 0.3% as compared to 42,939 fatalities reported for 2021.

The estimated fatality rate decreased to 1.35 fatalities per 100 million vehicle miles traveled in 2022, down from 1.37 fatalities per 100 million VMT in 2021. Americans are driving more than they did during the height of the pandemic, almost a 1% increase over 2021.

NHTSA also projects fatalities declined in the fourth quarter of 2022. This is the third straight quarterly decline in fatalities after seven consecutive quarters of increases that started in the third quarter of 2020.

“We continue to face a national crisis of traffic deaths on our roadways, and everyone has a role to play in reversing the rise that we experienced in recent years,” said U.S. Transportation Secretary Pete Buttigieg. “Through our National Roadway Safety Strategy, we’re strengthening traffic safety across

the country, and working toward a day when these preventable tragedies are a thing of the past.”

NHTSA estimates 27 states, the District of Columbia and Puerto Rico are projected to have had decreases in fatalities in 2022 as compared to 2021, while 23 states are projected to have experienced increases.

In January 2022, DOT released the comprehensive National Roadway Safety Strategy, a roadmap to address the national crisis in traffic fatalities and serious injuries. It adopts the Safe System Approach and builds multiple layers of protection with safer roads, safer

people, safer vehicles, safer speeds and better post-crash care.

The NRSS is complemented by unprecedented safety funding included in President Joe Biden’s Bipartisan Infrastructure Law, and in February, the department announced more than $800 million in grants to help communities carry out projects that can address high-crash areas.

DOT also launched the next phase of the NRSS, its Call to Action campaign, and released a one-year progress report and accompanying data visualizations that highlight the extent and magnitude of the U.S. roadway safety problem.

•

The department’s other roadway safety actions include:

•

•

Produced the Vulnerable Road User Safety Assessment to guide states on required 2023 assessments.

• •

•

•

•

Issued the Complete Streets Report to Congress: Moving to a Complete Streets Design Model.

Issued a final rule on rear impact guards.

Advanced the Manual on Uniform Traffic Control Devices rulemaking effort, analyzing and resolving the more than 25,000 public comments.

Published a Supplemental Advance Notice of Proposed Rulemaking concerning speed limiters with a motor carrierbased approach.

Released proposals for upgrades and a “road map” for the New Car Assessment Program—including developing a proposal to add a pedestrian protection program to NCAP. Made significant progress to advance pedestrian automatic emergency braking rulemaking.

Issued a Standing General Order to collect more data about crashes that occur when automated driving systems and advanced driver assistance systems are engaged.

Source: NHTSA

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Also on autobodynews.com & other podcast platforms 38 JUNE 2023 AUTOBODY NEWS / autobodynews.com

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Shrinking Selection, Fewer Affordable Options in Used Vehicle Market Used vehicle prices have slightly cooled from all-time highs, but a number of headwinds continue to create unfavorable buying conditions in the used market for consumers. According to the Q1 2023 Used Vehicle Report released by the car shopping experts at Edmunds, and the data collected by Edmunds’ analysts: • Used car prices remain historically high. The average used vehicle transaction price in Q1 2023 dipped by 6.4% year over year to $28,381, compared to $30,329 in Q1 2022, but is up 44% from Q1 2018’s average used transaction price of $19,657.

• The $20,000 used vehicle is becoming harder for car shoppers to find. The share of used vehicles sold for under $20,000 was 30.6% in Q1 2023 compared to 60.5% five years prior. In the new vehicle market, the share of vehicles sold for under $20,000 was less than 1% in Q1 2023.

• The supply of used vehicles is being squeezed across the board, which is contributing to increased demand and elevated prices in the market: • Lease volume dropped significantly to 559,000 vehicles in Q1 2023 from 1 million vehicles in Q1 2018.

• Trade-in volume declined to 5.5 million vehicles in 2022 from 6.2 million vehicles in 2018.

• Off-rental vehicles, which have historically been a steady source for near-new used vehicles, are now much older and pricier. The average off-rental vehicle age climbed to 3.0 years in March 2023 from 1.9 years in 2019, and the average price climbed to $28,916 in March 2023 from $15,829 in 2019.

“The good news is that used prices have softened enough in Q1 to offer some relief for consumers getting pushed out of the new market. The not-so-good news is that the used vehicle market continues to be challenging for car shoppers since there are fewer vehicles available and demand is keeping prices historically high,” said Ivan Drury, Edmunds’ director of insights. “Consumers returning to the used market for the first time in years might find conditions a bit shocking: Not long ago, $20,000 was seen as an acceptable amount to spend on a used car to get an optimal blend of miles and age.

In today’s market, $20,000 puts consumers into a much older or

much higher-mileage vehicle.”

A Positive Note for Vehicle Owners Edmunds’ latest report highlights one bright spot for drivers who have held onto their vehicle the past few years: They’ve virtually driven for free over the last few years due to elevated used car values. For example, in Q1 2023, the average

mileage of a 5-year-old (2018 model year) Toyota Camry was 60,565 miles (a 130% increase compared to an average of 26,288 miles in Q1 of 2020), but instead of a price decline, the average transaction price of the vehicle increased by 8% in Q1 2023 to $21,223 compared to $19,656 in Q1 2020.

Strategies for Shoppers Reentering the Used Market To help consumers navigate the challenging dynamics of the used vehicle market, Edmunds experts share three critical car shopping tips: Know your trade-in value. As a used-car owner, extra equity from your trade-in continues to be one of your biggest negotiating tools in today’s market. Before you begin shopping for a vehicle, get a free appraisal for your vehicle on sites like Edmunds so you can factor your trade-in value into your budget. You can also keep tabs on the changing value of your trade-in with this tool on Edmunds.

Shop around for preapproved financing as diligently as you’re shopping for an actual vehicle.

Interest rates for used vehicles are hovering near record levels and significantly driving up costs for the majority of consumers. Make sure to seek approval from more than one lender to see what you qualify for. With a preapproved loan offer in hand, you can quickly decide whether the finance rate the dealership offers you is the better

40 JUNE 2023 AUTOBODY NEWS / autobodynews.com

deal.

Flexibility and thoroughness will be critical. If you’re accustomed to buying near-new (1- to 2-year-old) vehicles, consider shifting your sights to slightly older (3- to 5-year old) vehicles. Just be diligent with this approach: Make sure to buy from a reputable dealer that offers a detailed vehicle history report, consider paying a mechanic to

conduct a pre-purchase inspection, and test-drive the vehicle before your purchase.

“Extra diligence, patience and research is more critical now than

ever for used-car shoppers,” said Joseph Yoon, Edmunds’ consumer insights analyst. “With demand and prices still high, shoppers really need to be active in search of the deal they desire and be prepared with an understanding of vehicle availability, financing options and their own budget long before they step into the dealership.”

Looking Ahead Edmunds analysts note that used vehicle prices are likely going to stay elevated through the rest of 2023 unless new vehicle sales take a turn.

“If new car sales stall out, automakers and dealers could leverage heavier incentives to entice consumers into new purchases, which would in turn place downward pressure on used car values,” said Drury. “But since most automakers have been deliberate in aligning vehicle production and demand to avoid the inventory glut issues they faced prior to the pandemic, consumers probably shouldn’t count on any major bargains or discounts through the rest of the year.”

Read Edmunds’ Q1 2023 Used Vehicle Report here.

Source: Edmunds

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Security Fix Doing Little To Slow Down Hyundai, Kia Theft Rates

ASE Now Has 2,200+ World Class Technicians

The software Hyundai and Kia released nearly three months ago to prevent vehicles built without engine immobilizers being stolen has so far not made a dent in theft rates, the Associated Press reported May 9.

The AP analyzed data from seven U.S. cities, which it said shows the number of thefts is, in fact, still growing. Only Denver reported a decline in the theft rate of Kias and Hyundais compared to 2022—23%—but its rate is still high.

Part of the issue is the slow rollout; only about 5% of eligible Kias and 6% of Hyundais have received the update, the AP said.

The trend began in 2021, when videos were first shared on social media platforms like YouTube and TikTok, showing how to steal certain Kias and Hyundais, by simply removing the plastic cowl under the steering column and using a USB cable to trick the vehicles, which lacked engine immobilizers, into thinking a key was being used.

Engine immobilizers, which

With the addition of 44 individuals, there are now 2,224 automotive service professionals who are recognized as World Class Technicians by the National Institute for Automotive Service Excellence (ASE).

A joint program of ASE and the Auto Care Association, the ASE World Class Technicians’ program recognizes an exclusive group of highly skilled professional technicians. ASE has added a special section to its website at www.ase. com/worldclass with a roster dating back to the start of the program in 1986. To receive world-class recognition, an automotive service professional must attain 22 specific ASE certifications.

Among the estimated 887,000 technicians in the U.S., only 2,224 have earned world class recognition in more than 30 years.

Recognition includes a certificate signed by the presidents of ASE and the Auto Care Association, an embroidered shoulder insignia, a personalized plaque and a medallion kit.

Source: ASE

prevent vehicles from being started unless a unique code is transmitted from the vehicle’s key, are not required by U.S. law.

In February, the automakers, which are owned by the same parent company, started rolling out a software update that

extends the length of the alarm sound from 30 seconds to one minute and requires the key to be in the ignition switch to turn the vehicle on.

However, in Minneapolis, 1,899 Kia and Hyundai thefts have been reported, nearly 18

times the number for the same period in 2022.

“The scope of the problem is only expanding and is exponentially worse than it has been in the past,” Brian O’Hara, the police chief of Minneapolis, told the AP. “We have some weeks where nearly as many Kias and Hyundais are stolen in a week as had previously been stolen in a year.”

In April, 17 state attorneys general sent a letter to the National Highway Traffic Safety Administration calling for a safety recall on the affected models.

The same month, the mothers of two teenagers killed in a crash in a stolen Kia SUV in New York filed a wrongful death lawsuit against Kia, claiming the automaker could have prevented the crash by installing an engine immobilizer. In total, the rash of thefts is linked to 14 crashes and eight deaths nationwide.

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Auto Insurance Shopping, Switch Rates Reach New Highs As Premiums Surge The nation’s auto insurers are locked in a vicious cycle of inflation, rising premiums and steadily increasing customer defection rates. The result, according to the J.D. Power 2023 U.S. Insurance Shopping Study, released April 27, is a sharper focus on saving money as large numbers of auto insurance customers shop for new policies and switch to new carriers, largely based on price.

“Auto insurance customers are starting to shop for insurance like they shop for gas,” said Stephen Crewdson, senior director, insurance business intelligence at J.D. Power.

“They are taking a much more active stance in seeking out plans that fit their needs and their budgets, which could have a serious longterm effect on carriers that have been working for years to build lifetime value through bundling and other initiatives. In the near term, this shopping trend manifests itself in increased customer interest in usage-based insurance (UBI) plans and some reshuffling of market share among the top carriers.”

Following are some key findings of the 2023 study:

Auto insurance shopping increases while customer satisfaction stagnates: Average overall satisfaction among auto insurance shoppers is 861 (on a 1,000-point scale), which is flat from a year ago, even though shopping and switching rates have increased in the same period. The 30-day average shopping rate reached 13.1% in March 2023, the highest rate since June 2021 and well above the 2021 average of 11.4%. The 30-day average switch rate hit 4.1% in March 2023, which compares to an average of 3.4% for all of 2021.

Price hikes spur new-policy shopping rates: Auto insurance costs rose 14.5% in February 2023, more than twice the rate of inflation (6%), making auto insurance account for a steadily increasing share of consumer discretionary spending.

Accordingly, among those shopping for reasons of price, 44% say they are price checking and 42% say they are being spurred by a rate increase.

Similarly, 41% of those shopping because of a rate increase say that their rate increased 20% or more.

UBI starts to go mainstream: UBI programs, which use telematics

software to monitor a customer’s driving style and assign rates based on safety and mileage metrics, are now offered to 22% of insurance shoppers and are purchased 18% of the time. Those numbers are up from a 16% offer rate and a 12% purchase rate in 2020. When carriers offer a UBI option, customer satisfaction increases 6 points.

Progressive gains market share as GEICO slows: GEICO raised its rates significantly above industry average throughout much of the second half of 2022 while Progressive raised rates in the first quarter of 2022 and then registered lower-than-average increases during the second half of the year. During the same period, Progressive posted a notable gain in market share, becoming the secondlargest auto insurer in the United States, ahead of GEICO and behind State Farm.

Study Rankings State Farm ranks highest among large auto insurers in providing a satisfying purchase experience for a third consecutive year, with a score of 877. Liberty Mutual (865) ranks second and Nationwide (861) ranks

third. The segment average is 861.

The Hartford ranks highest among midsize auto insurers for a second consecutive year, with a score of 887. Erie Insurance (878) ranks second and Automobile Club of Southern California (AAA) (870) ranks third. The segment average is 863.

Large insurers have direct premiums written of $4.5 billion or more in personal lines auto, while midsize insurers have direct premiums written of $1 billion-$4.499 billion in personal lines auto.

Now in its 17th year, the U.S. Insurance Shopping Study captures advanced insight into each stage of the shopping funnel and is based on responses from 10,845 insurance customers who requested an auto insurance price quote from at least one competitive insurer in the previous nine months. The study was fielded from March 2022 through January 2023.

For more information about the U.S. Insurance Shopping Study, visit https://www.jdpower. com/business/resource/jd-powerus-insurance-shopping-study Source: J.D. Power

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Average Age of Vehicles on U.S. Roads Hits Record High 12.5 Years With more than 284 million vehicles in operation (VIO) on U.S. roads, the average age of cars and light trucks in the U.S. has risen again this year to a new record of 12.5 years, up by more than three months over 2022, according to the latest analysis from S&P Global Mobility.

The growth is in line with the firm’s prediction from last year that constrained new vehicle sales would continue to impact and put upward pressure on the average age. In addition, the continued rise of light trucks/utilities means the number of passenger cars on the road will fall beneath 100 million for the first time since 1978.

This is the sixth straight year of increase in the average vehicle age of the U.S. fleet. It also reflects the highest yearly increase since the 2008-2009 recession, which caused acceleration in average age beyond its traditional rate due to the sharp decline in new-vehicle sales demand.

In 2022, the average age experienced upward pressure initially due to supply constraints that caused low levels of new vehicle inventory, and then by slowing demand as interest rates and inflation reduced consumer demand in the second half of the year. The combined effect caused retail and fleet sales of new light vehicles in the U.S. to drop 8% from 2021’s 14.6 million units to 13.9 million units in 2022, the lowest level recorded in over a decade.

“We expected the confluence of factors impacting the fleet coming out of 2021 would provide further upward pressure on average vehicle age. But the pressure was amplified in the back half of 2022 as interest rates and inflation began to take their toll,” said Todd Campau, associate director of aftermarket solutions for S&P Global Mobility.

Despite economic headwinds, new vehicle sales are projected to surpass 14.5 million units in 2023, according to S&P Global Mobility forecasts, which is expected to curb the rate of average age growth in the coming year.

“While pressure will remain on average age in 2023, we expect the curve to begin to flatten this year as we look toward returning to historical norms for new vehicle sales in 2024,” said Campau.

Favorable Business Pipeline for the Aftermarket The increased pace of growth of the average light vehicle age benefits the vehicle service industry. An older fleet means vehicles will continue

to need repair work and service to perform correctly.

The aftermarket sector trajectory typically follows growth in average vehicle age, as consumers invest more to keep their aging vehicles running, barring some exceptions.

As a result, the most recent S&P Global Channel Forecast, conducted

Strong consumer preference for light trucks over cars points to a growing business potential for the vehicle service industry, as light trucks/utilities generally cost more to maintain than cars, and people also tend to keep them longer. The analysis showed within the next 18-24 months, the total volume of

jointly with Auto Care Association and MEMA Aftermarket Suppliers, estimates revenues of the U.S. light duty aftermarket in 2022 have grown to $356.5 billion, up more than 8.5% over 2021. For this year, early indications from the same forecast estimate a potential revenue increase in 2023 of 5% or more, prior to adjustments for inflation and other factors. The newest Channel Forecast is set to be published in June.

According to S&P Global Mobility, the volumes of vehicles ages 6-14 will grow by another 10 million units by 2028, adding to an already favorable volume of vehicles in the aftermarket target range.

“Traditionally, the ‘sweet spot’ for aftermarket repair was considered 6-11 years of age, but with average age at 12.5 years, the sweet spot for aftermarket repair is growing,” said Campau. “There are almost 122 million vehicles in operation over 12 years old.”

In total, vehicles older than six years will account for more than 74% of the vehicle fleet in 2028, according to S&P Global Mobility estimates.

These vehicles drive the most repair opportunities, and should serve as a positive trend for the independent aftermarket.

passenger cars—sedans, coupes, wagons, hatchbacks---on the road in the U.S. could drop below 100 million for the first time since 1978. By 2028, it is expected at least 70% of VIO in the U.S. to be light trucks/utilities.

New Vehicle Market Skews Further in Favor of Light Trucks Light truck/utility growth has trended upward for several years, and in 2022, 78% of all new vehicles registered in the U.S. last year were in this category. Given the exponential growth of the sport-utility segment, VIO has shifted as well---with light trucks/utilities representing nearly 63% of the population.

BEV Average Age Remains Under Pressure The average age of battery electric vehicles (BEVs) in the U.S. is 3.6

years this year, down from 3.7 years last year. The average age has been hovering between 3 and 4 years since 2017 and is largely compressed as the new BEV registrations continue to grow. According to S&P Global Mobility estimates, new BEV registrations achieved a 58% gain year over year, to nearly 758,000 units in 2022.

However, the average age of BEVs is under pressure as BEVs are leaving the fleet more rapidly than their ICE and diesel counterparts.

According to S&P Global Mobility analysis, of the nearly 2.3 million BEVs registered in the U.S. from 2013 to 2022, about 2.12 million are still on the road today—about 6.6% have left the fleet. When it comes to other fuel types excluding BEVs, of the roughly 158 million sold in the same timeframe, are around 149.8 million vehicles on the road today— reflecting that 5.2% have left the fleet over the time horizon.

Source: S&P Global Mobility

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autobodynews.com / AUTOBODY NEWS JUNE 2023 45

1Collision Offers SCRS Membership

Catalytic Converter Thefts Nationwide Surge More Than 200%

1Collision has aligned with the Society of Collision Repair Specialists (SCRS) to make membership available to all businesses in the network.

1Collision’s focus on corporatelevel support to affiliated collision repair centers spans all business areas—business planning, operations and office management, training, purchasing power, industry relations, human resources and recruiting support, marketing, web presence and more—making SCRS a logical partner in delivering resources to network members.

The network locations span Arizona, California, Illinois, Indiana, Iowa, Maryland, Michigan, Minnesota, New York, Tennessee, Utah, Virginia, Washington and Wisconsin in the U.S., and in 2020, 1Collision merged with CSN Collision Centres in Canada, expanding the North American footprint.

Companies looking to support SCRS through membership can email info@scrs.com or visit www. scrs.com/join-scrs.

Source: SCRS

A new report based on insurance claims data released by the National Insurance Crime Bureau (NICB) shows a surge in catalytic converter thefts across the country. In total, the nation experienced more than 64,000 catalytic converter thefts in 2022—a 207% increase from 2021.

Leading the country are California and Texas, which experienced more than 32,000 catalytic converter thefts last year.

“This new data is just a snapshot of an underreported crime that affects communities across the nation,” said David J. Glawe, president and CEO of NICB. “While a catalytic converter can be removed in just a few minutes, for vehicle owners, the cost is much more than the replacement parts. Victims must find alternate transportation, schedule necessary repairs, and may face loss of work as a result.”

Based on insurance claims, thefts of catalytic converters increased significantly from 2020 through 2022. Insurance claims for these thefts increased 288% from 16,660 claims in 2020 to 64,701 in 2022. Catalytic converter

theft claims had an upward trend trajectory throughout 2020 and 2021 and theft claims in 2022 were significantly higher than in previous years.

Mandated in the U.S. since 1975, catalytic converters neutralize harmful gases in engine exhaust that contribute to air pollution and smog and are bolted to the underside of cars or trucks as part of their exhaust system. Catalytic converters contain platinum, rhodium and palladium, rare earth metals that are more valuable than gold. Often metal recyclers pay between $50 to $250 for a catalytic converter and up to $800 for one removed from a hybrid vehicle.

Replacing catalytic converters is not cheap. It can cost between $1,000 and $3,500 or more to replace a catalytic converter that is stolen, depending on the type of vehicle.

“In addition to law enforcement actions and possible legislative solutions to prevent catalytic converter thefts, vehicle owners can also take important steps to keep their property safe,” Glawe said. “The first is to park in well-

lit areas or in a garage monitored by cameras. Vehicle owners can also consider installing a catalytic converter anti-theft device, which can make removing a converter extremely difficult and time-consuming. Finally, owners can etch their unique Vehicle Identification Numbers (VIN) on catalytic converters, which can make it easier to track if it is stolen.”

Legislative efforts are also underway to address the rising number of catalytic converter thefts.

New bills and amendments are being introduced to increase requirements of catalytic converters sellers, impose due diligence obligations on metal recycling entities, and establish penalties for unauthorized sellers and buyers engaging in fraudulent practices related to catalytic converter purchases.

In 2022, NICB’s Office of Strategy, Policy, and Government Affairs tracked 163 legislative bills across 37 states, with 31 bills enacted. So far in 2023, 94 bills are being tracked across 39 states, with 12 bills already enacted.

Source: National Crime Insurance Bureau

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©2023 BMW of North America, LLC. The BMW name, model names and logo are registered trademarks. autobodynews.com / AUTOBODY NEWS JUNE 2023 47

42.3 Million Americans Expected To Travel For Memorial Day Weekend

By Aixa Diaz, AAA

AAA projects 42.3 million Americans will travel 50 miles or more from home this Memorial Day weekend, a 7% increase over 2022. This year, 2.7 million more people will travel for the unofficial start of summer compared to last year, a sign of what’s to come in the months ahead.

“This is expected to be the third busiest Memorial Day weekend since 2000, when AAA started tracking holiday travel,” said Paula Twidale, senior vice president of AAA Travel. “More Americans are planning trips and booking them earlier, despite inflation. This summer travel season could be one for the record books, especially at airports.”

Nearly 3.4 million travelers are expected to fly to their destinations this Memorial Day, an increase of 11% over last year. Air travel over the holiday weekend is projected to exceed pre-pandemic levels, with 170,000 more passengers—or 5.4% more—than in 2019. Despite high ticket prices, demand for flights is skyrocketing. This Memorial Day

weekend could be the busiest at airports since 2005.

Memorial Day road trips are up 6% over last year. 37.1 million Americans will drive to their destinations, an increase of more than 2 million.

Gas prices are lower this holiday compared to last year, when the national average was more than $4 a gallon. Despite the lower prices at the pump, car travel this holiday will be shy of pre-pandemic numbers by about 500,000 travelers.

More people this holiday are taking other modes of transportation, like buses and trains.

These travelers are expected to total 1.85 million, an increase of 20.6% over 2022.

Best/Worst Times to Travel and Peak Congestion by Metro INRIX, a provider of transportation data and insights, expects Friday, May 26, to be the busiest day on the roads during the long Memorial Day weekend. The best times to travel by car are in the morning or evening after 6 p.m. The lightest traffic days will be Saturday and Sunday. Major metro areas like Boston, New York, Seattle, and Tampa will likely see

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travel times double compared to normal.

“With lower fuel prices and more travelers on the road compared to last year, drivers should expect long delays this holiday weekend, especially in and around major metros as commuters mix with Memorial Day travelers,” said Bob Pishue, transportation analyst at INRIX. “Knowing when and where congestion will build can help drivers avoid the stress of sitting in traffic. Our advice is to avoid driving during peak hours or use alternative routes.”

Top Destinations AAA booking data for the Memorial Day weekend shows tourist hotspots like Orlando, New York City and Las Vegas are top domestic destinations. Cruise port cities in Florida and Alaska, as well as Seattle, are high on the list given the 50% increase in domestic cruise bookings compared to last year. Other popular U.S. cities this Memorial Day include Denver, Boston, Anaheim and Canton, OH— home of the Pro Football Hall of Fame.

Source: AAA

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“We are seeing a demand for iconic cities, international vacation packages and cruises with included amenities that provide more value for the price,” Twidale added.

Travelers are paying more for Memorial Day trips this year, in large part due to the rising cost of airline tickets. AAA booking data shows a 40% increase in airfare to this year’s Top Destinations.

But that’s not stopping travelers from booking flights abroad.

International travel is surging with bookings 250% higher this holiday weekend compared to 2022. European cities are the most popular, including Rome, Paris, Dublin, London, Barcelona and Athens.

International car rentals are up more than 80% over 2022. AAA reports strong sales for International Driving Permits this year, almost double what they were last year.

The passport courier service RushMyPassport is also seeing an unprecedented number of applications for expedited passport and visa services this year.

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autobodynews.com / AUTOBODY NEWS JUNE 2023 49

U.S. Seeing Historic 1-Year Drop in Gas Prices

By Tom Gantert The Center Square

The U.S. is witnessing a historic drop in the price of gas at the pump due to the war in Ukraine, according to an industry analyst.

AAA had the price per gallon dropping from $4.48 a gallon a year ago to $3.53 as of May 16.

Patrick De Haan, an energy analysis with GasBuddy, said on Twitter there have only been only four times in history, including now, when the U.S. experienced such a dramatic drop in gas prices.

He said the other times were the 2008-2009 recession ($3.04 Jan. 2008 to $1.79 Jan. 2009); when OPEC increased its production of oil in 2015 ($3.31 Jan. 2014 to $2.12 Jan. 2015); during the COVID pandemic in 2020 ($2.86 May 2019 to $1.87 May 2020). Gas prices listed are from the U.S. Energy Information Administration.

De Haan posted on Twitter: “ ... the entire reason for the $1/gal drop is basically the worst fears after Russia’s

invasion didn’t play out, plus economic headwinds limiting consumption.”

Andrew Gross, energy analyst for AAA, said the oil market took an “overly negative” view of how the war would impact the oil market and that’s why gas prices were so high a year ago.

“Now, they are, ‘Oh. Wait.

Russian oil is still getting out,’” Gross said.

The trend of lower gas prices should continue, barring unforeseen circumstances, De Haan told The Center Square.

“That’s typical for summer,” he said. “A peak in price before the summer starts due to the transition to summer gasoline and refinery maintenance, but once the transition is done and refineries are back, supply builds and prices ease.”

The next challenge will be the hurricane season, which starts in the middle of June and lasts until the end of September.

Gross said that could have a big impact on the cost of gas going forward.

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Ford Super Duty Roof-Crush Lawsuits Consolidated

By David A. Wood CarComplaints.com

Ford truck roof class action lawsuits are being consolidated in a Michigan federal court under the case name, In re Ford Super Duty Roof-Crush Litigation.

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Class action attorneys began filing Ford truck roof lawsuits following a $1.7 billion jury verdict against Ford in the wrongful deaths of Melvin Hill, 74, and his wife, Voncile Hill, 62.

The deaths occurred in a 2014 Georgia rollover crash of a 2002 Ford F-250 Super Duty truck.

The crash was allegedly caused by a blown tire installed by a Pep Boys service center, which installed the wrong size tire.

The jury was told the Ford Super Duty roofs were too weak, and the jury decided about 5 million 1999-2016 Ford Super Duty trucks were sold with defective roofs.

The first Ford roof class action lawsuit was filed weeks after the $1.7 billion jury verdict in the Hill case, and now those class actions will be consolidated into one.

In October 2022, Judge Paul Borman consolidated Beck v.

Ford with a related case called Rhodes v. Ford.

The latest action saw Judge F. Kay Behm consolidate Ryan Scott v. Ford, Steven Beck v. Ford, and Curtis Bright v. Ford into the single class action lawsuit, In re Ford Super Duty Roof-Crush Litigation.

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A separate wrongful death Ford truck roof lawsuit was recently dismissed in the death of 2001 Ford F-350 driver Mikyley Rae Reitz.

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Tesla Sudden Unintended Acceleration Causes Federal Petition

By David A. Wood CarComplaints.com

Tesla sudden unintended acceleration events have caused a Greek resident to file a petition with the National Highway Traffic Safety Administration (NHTSA).

According to the petition, the automaker should recall more than 1.6 million vehicles built since 2013.

The Tesla petition was submitted by Greek resident Costas Lakafossis, who describes himself as a mechanical and aeronautical engineer as well as an accident investigator.

The petitioner alleged all Tesla vehicles should be equipped with an “interlock that requires a brake application by the driver in order to shift from DRIVE to REVERSE to reduce the number of sudden unintended acceleration events.”

Tesla Sudden Unintended Acceleration The typical description of “sudden unintended acceleration” is a problem caused not by the driver but by electrical or mechanical

malfunctions of the Tesla vehicle.

In cases of investigations and lawsuits regarding alleged Tesla sudden unintended acceleration incidents, acceleration problems may be caused by defects in the vehicles or by software errors that take control away from drivers.

A recent Tesla lawsuit dismissal is a good example of what is usually meant by “sudden unintended acceleration.”

However, the Tesla petition seems to use the phrase to mean sudden acceleration caused by mistakes made by a driver when the accelerator pedal is applied instead of the brake pedal.

Known as “pedal misapplication,” a driver believes they are pressing the brake pedal when they are in fact pressing the accelerator pedal.

According to the Tesla petition, pedal misapplication is due to a missing interlock feature and by specific “Autopilot features that contribute to increased likelihood of driver errors.”

“Even when driven manually (not in Full Self-Driving mode), all Tesla cars using the Autopilot

software implement various strategies of automatic braking, not only as a safety feature (i.e. to avoid an accident) but also as a feature that takes over some of the workload of the driver e.g. in stop-and-go traffic or when about to park,” the petition said.

The petition said one feature provides the ability of the Tesla to stop and shift into reverse gear when the driver is ready to park, all without touching the brake pedal.

The petitioner alleged this is a “potentially dangerous ‘party trick’ used for testing related to moving toward full self-driving vehicles.”

In other words, the petition alleged, Tesla drivers press the accelerator pedals instead of the brake pedals because the vehicle and automatic braking “encourages drivers to remove their feet from the pedals and enjoy a technologically advanced self-braking car.”

In addition, the petitioner said automatic braking (not to be confused with automatic emergency braking) should only

be used as a safety feature, not as a courtesy to drivers as Tesla allegedly does.

NHTSA has investigated more than 200 Tesla sudden unintended acceleration events in the past and found the incidents were caused by drivers pressing the wrong pedals (pedal misapplications).

But NHTSA safety regulators also said this about pedal misapplication: “There is also no evidence of a design factor contributing to increased likelihood of pedal misapplication.”

The petitioner clearly disagreed and argued Tesla vehicles could be made safer in a way that will prevent or mitigate pedal misapplications.

Although the petitioner seeks a Tesla recall, that’s not how NHTSA works. The petition is a “safety defect” petition to determine if the government should open a formal safety defect investigation into the alleged problem.

NHTSA will investigate the claims made by the petitioner and either grant or deny the petition to investigate.

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Former GM President, First To Champion EVs, Dies

By Jamie L. LaReau Detroit Free Press

Lloyd Reuss, a former president of General Motors and father of the current GM president, died April 21.

Published reports say Reuss was 86. He served as GM’s president in the early 1990s and was the father of GM’s current President Mark Reuss, who is also head of regional and international operations, global product development, quality and design. Mark Reuss has been president since January 2019.

GM confirmed Lloyd Reuss’ passing and issued the following statement on April 22 from CEO Mary Barra, “Lloyd Reuss was a talented executive and leader of GM and was also a strong force for good in the community with his service, dedication and tireless efforts on behalf of others.” A cause of death was not released.

Corvette collector, GM dealer and NASCAR team owner Rick Hendrick also released a statement April 22 calling Lloyd Reuss a pillar of the auto industry.

“A true ‘car guy’ and optimist, he was always there to support dealers and stood tall as a champion of General Motors’ auto racing programs,” said Hendrick, CEO of Hendrick Automotive Group and owner of Hendrick Motorsports. “His passion for GM was exceeded only by his love for family and community. I see many of his greatest qualities reflected in Mark.”

On Aug. 1, 1990, GM named Lloyd Reuss president. He was an early supporter of the GM Impact, a concept car that debuted at the 1990 Los Angeles Auto Show. It became the GM EV1, the predecessor to today’s electric vehicles, according to GM’s biography on Lloyd Reuss.

Reuss began his career at GM in 1957 after a two-year stint in the U.S. Army as a first lieutenant in the Army Corps of Engineers.

A mechanical engineer by trade, Reuss worked his way up to jobs such as chief engineer at both Buick and Chevrolet in the 1970s.

He also served as the general manager of Buick starting in 1980, leading the division to an

all-time sales record in 1983. He later became the head of GM’s North American passenger car groups. That followed by leading North American operations and worldwide automotive components.

Former GM President Lloyd Reuss, left, his son, GM North America President Mark Reuss, center, and Penske Corp.

Chairman Roger Penske, right, at a news conference Oct. 12, 2011. Photo by John F. Martin, Chevrolet. Credit: John F. Martin, Chevrolet

Reuss was demoted from president in 1992 and retired in 1993 at age 56. According to Automotive News, Reuss and then CEO Robert Stempel, who was the first engineer to hold GM’s

top job since the 1950s, were forced out when GM’s board and its director, John Smale, purged the executive ranks.

GM’s bio called Reuss “a true GM man” whose family had four generations with ties to the company. His father ran a Chevrolet dealership in Illinois, where Reuss was born.

His son, Mark, until recently had occupied his father’s former office as president. Lloyd Reuss’ daughter, Charlene Reuss Grandelius, worked in GM purchasing from 1982 to 1995.

His granddaughter, Amanda, has held various positions in GM Communications and Marketing.

After retiring, Reuss joined Focus: HOPE, the Detroit nonprofit that fights racism by providing education and training to minority communities. At Focus: HOPE, he helped establish the Center for Advanced Technologies, which led to more than 300 underserved students earning associate’s and bachelor’s degrees in engineering, GM’s bio said.

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autobodynews.com / AUTOBODY NEWS JUNE 2023 55

Rivian R1T Fender Bender Lands Owner $42,000 Repair Bill

By Iulian Dnistran InsideEVs

A Rivian R1T owner from Ohio was involved in a fender bender that ended up costing about half the price of the truck to repair.

Chris Apfelstadt posted his story on the Rivian Electric Vehicle Discussion page on Facebook, where he said he was rear-ended in his red R1T in early February, but the airbags didn’t deploy and the collision happened at a relatively low speed. He exchanged insurance information with the driver who hit his truck and got a check for $1,600 from the other driver’s insurance company for the repairs to his pickup. But as he later found out, it was nowhere near enough.

Apfelstadt contacted Rivian, which instructed him to go to one of the three certified body shops in Ohio. He chose K-Ceps which, according to him, has a 70,000-square-foot facility dedicated to EV repairs.

The shop mechanics were and meticulously thorough with the repair process, documenting each step with photographs, but

for some undisclosed reason, they disassembled most of the R1T’s rear section, including removing the rear window. In the end, the repair bill was more than $42,000.

This led some commenters to say something fishy was going on.

“This is 100% insurance fraud on behalf of this authorized repair facility,” one commenter said. “Clearly they are taking advantage of the fact this is an extremely new platform to justify egregious costs. Unless it takes 300 hours to remove the bed and rear glass (for no reason at all it would seem) and reassemble how in the world is this a 42k dollar repair?

I’ve seen [Lamborghini] Aventadors have entire rear carbon sections repaired and repainted for less than that…” The owner of the damaged Rivian said the body shop did “an incredible job” and his R1T “looks as nice as the day it was shipped.”

He concluded his post by saying he’ll try to fight the other driver’s insurance company to cover his losses, adding the insurance policy maxes out at $50,000, which is very close to the final expense sheet, considering he also had a rental car during the repair.

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autobodynews.com / AUTOBODY NEWS JUNE 2023 57 58720200-978-VW_2023_January_AutobodyNews_Group_Ads_hz3.indd 2

11/30/22 3:47 PM

Researchers Discover Electrolyte For EV Batteries That Performs Well in Frigid Conditions Many owners of EVs worry about how effective their battery will be in very cold weather. A new battery chemistry may have solved that problem.

In current lithium-ion batteries, the main problem is the electrolyte is a liquid that begins to freeze at sub-zero temperatures. This condition severely limits the effectiveness of charging electric vehicles in cold regions and seasons.

To address that problem, a team of scientists from the U.S. Department of Energy’s Argonne and Lawrence Berkeley national laboratories developed a fluorinecontaining electrolyte for subzero temperatures. This antifreeze electrolyte shows promise of working for not only batteries in EVs, but also in energy storage for electric grids and consumer electronics like computers and phones.

In testing with laboratory cells, the team’s fluorinated electrolyte retained stable energy storage capacity for 400 chargedischarge cycles at -4 degrees

Fahrenheit. Even at that sub-zero temperature, the capacity was equivalent to that of a cell with a conventional carbonate-based electrolyte at room temperature.

The team also determined at the atomic scale why their electrolyte composition worked so well. It depended on the position of the fluorine atoms within the molecules in the electrolyte transporting lithium ions and the number of those atoms.

“Our research thus demonstrated how to tailor the atomic structure of electrolyte solvents to design new electrolytes for sub-zero temperatures,” said Zhengcheng (John) Zhang, a senior chemist and group leader in Argonne’s Chemical Sciences and Engineering division.

The antifreeze electrolyte has a bonus property. It is much safer than the conventional electrolyte, since it will not catch fire.

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Source: Argonne National Laboratory

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Tesla Most Recalled Car Brand; Mercedes, Toyota Least

By Steven Loveday InsideEVs

According to a recent study by iSeeCars, Tesla is the most recalled car brand. In fact, the publication said, the Model 3, Model Y, Model S and Model X secure four out of the top five spots for most recalled models. Porsche also has four of the most recalled models. Brands including Lexus, Mercedes-Benz and Toyota show up the least on the list of recalls. iSeeCars consulted the National Highway Traffic Safety Administration’s (NHTSA) list of recalls from 2014 to 2023 to put together its list. The goal was to learn which of today’s cars are expected to have the most and least recalls over the course of a 30-year lifespan. “Looking through NHTSA’s recall data confirmed a wide spectrum of recall activity between the most and least recalled models,” said iSeeCars’ Executive Analyst Karl Brauer. “A car like the Lexus NX 300h or Nissan 370Z is projected to have less than one recall over a 30-year lifespan. Conversely, the most recalled cars, including all

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four Tesla models, a Porsche and two Volkswagens, are projected to have between 20 and 62 recalls.”

The study showed cars with the fewest recalls have “one or fewer predicted recalls” over a 30-year lifespan, while the most recalled models are predicted have at least 10 during the same lifespan—something new car buyers should consider as they shop for a vehicle. iSeeCars noted the average car is recalled four times over its projected 30-year lifespan. However, a car like the Tesla Model Y is expected to accumulate 62 recalls. iSeeCars pointed out Tesla has the ability to address many recalls via over-the-air software updates.

Tesla has a handful of recalls right now that do require a service visit, but an onslaught of recalls over the last year or so have been software updates, which are still considered recalls.

Just because the car doesn’t have to go into the shop doesn’t mean there’s not a problem that could pose a safety issue. The fix may just happen to be easier on the customer.

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©2023 Porsche Cars North America, Inc. Porsche recommends seatbelt usage and observance of traffic laws at all times.

autobodynews.com / AUTOBODY NEWS JUNE 2023 59

Gas Prices Fall Again

By Andrews Gross AAA

The fear of a global economic recession leading to falling pump prices. The price for oil has dropped nearly $20 per barrel recently to the upper $60s, which has spurred the retreat for gas prices.

The national average for a gallon of regular gasoline fell six cents since the previous week to hit $3.57 as of May 4.

“The oil market volatility is leading to lower prices,” said Andrew Gross, AAA spokesperson. “And we are also in a pre-summer driving season lull regarding domestic demand.

These two factors should keep pump prices drifting lower for now.”

According to new data from the Energy Information Administration (EIA), gas demand decreased significantly from 9.51 to 8.62 million b/d over the same week.

The drop in demand is more in line with what market observers expected. The estimate could be revised when EIA releases

final demand measurements for May. Meanwhile, total domestic gasoline stocks increased by 1.8 million bbl to 222.9 million bbl.

Lower demand, alongside an increase in stocks, has contributed to pushing pump prices lower. If demand remains low, drivers will likely continue to see pump prices decline.

The May 4 national average of $3.57 is seven cents more than a month ago but 65 cents less than a year ago.

Since April 27, these 10 states have seen the largest decreases in their averages: Texas (-12 cents), Ohio (-11 cents), Michigan (-11 cents), Delaware (-11 cents), Tennessee (-10 cents), Indiana (-10 cents), Maryland (-9 cents), Iowa (-8 cents), Florida (-8 cents) and North Carolina (-8 cents).

The nation’s top 10 least expensive markets: Mississippi ($3.05), Texas ($3.11), Louisiana ($3.15), Alabama ($3.16), Arkansas ($3.16), Tennessee ($3.17), South Carolina ($3.21), Oklahoma ($3.26), Georgia ($3.28) and Missouri ($3.29).

Source: AAA

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autobodynews.com / AUTOBODY NEWS JUNE 2023 61

Publisher Jeremy Hayhurst

Accounting & HR Manager Heather Priddy

General Manager Barbara Davies

Permissions Editor Randi Scholtes

Editor Abby Andrews Contributing Writers Mike Anderson, Ed Attanasio, Stacey Phillips, Cole Strandberg, John Yoswick Advertising Sales Joe Momber, Norman Morano Office Manager Kelly Cashman Digital Marketing Manager Bryan Malinski Art Director Rodolfo Garcia Senior Designer Vicki Sitarz

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Chevrolet Bolt EV To Be Discontinued by End of 2023

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InsideEVs

Production of the Chevrolet Bolt EV and Bolt EUV electric cars at the plant in Orion Township, MI, will come to an end in late 2023, General Motors CEO Mary Barra announced during the company’s first-quarter earnings call.

According to the plan, through an investment of around $4 billion, the site will be prepared for all-new Ultium models— specifically the Chevrolet Silverado EV and GMC Sierra, all-electric pickups. Those new models are expected to enter production at the plant in 2024.

The good news for the plant is the overall EV production will increase. Employment is promised to triple next year. With another plant engaged in the Ultium platform, GM would like to increase its manufacturing output to 600,000 units annually—all BEV models.

On the other hand, in the short-term, consumers might

lose access to a really affordable all-electric car. The starting price for the Bolt EV was just $26,500, and effectively less than $20,000 when deducting the federal tax credit.

This year, Chevrolet will launch two new Ultium-based electric cars, the Blazer EV this summer and the Equinox EV this fall, which will be the new entry-level BEVs from the brand. Those nextgeneration electric models are expected to be better in every way—bigger, with more range, power and features as well as faster charging—but probably also a slightly higher price point of around $30,000 for the base version.

The Chevrolet Bolt EV, later joined by the Bolt EUV version, was introduced in the U.S. in 2016. Since then, more than 161,000 have been sold. The Bolt EV/EUV achieved a huge sales record of 19,700 units in the first quarter of 2023. The target production and sales rate is 70,000 units per year globally, mostly in the U.S.

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