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VOL. 2 ISSUE 4 JULY 2012
Birmingham, AL, Shop Owners Drop State Farm’s Select Service Due to PartsTrader
State Farm PartsTrader Issue Resuscitates Mississippi Collision Repair Association
Several Birmingham, AL auto body shops have dropped State Farm rather than be forced to use its new PartsTrader procurement software within its Select Service Program. Auto body shops in Birmingham are located in one of four test markets where the pilot PartsTrader program, an online parts ordering/bidding software system developed by a New Zealand firm, is being tested. Usage of the PartsTrader software has been required by State Farm in four test markets nationwide: Tucson, AZ, Birmingham, AL, Grand Rapids, Mich. and Charlotte, NC. Approximately 10 percent of State Farm Select Service shops are participating in the pilot.
Anger over the proposed State Farm PartsTrader program revived a sleeping giant in Mississippi, revitalizing the previously dormant Mississippi Collision Repair Association, which met on May 23 for the first time in many years. “Due to many factors, our association as been inactive for almost eight years,” said Chad Smith, treasurer of the Mississippi Collision Repair Association and co- The Mississippi Collision Repair Association met on May owner of Smith Bros. Colli- 23 for the first time in 8 years, with special guest Attorsion Center with two ney General Jim Hood in attendance. locations in Brookhaven and Mc- controversy and negativity surroundSee Mississippi Reacts, Page 46 Comb. “But the new State Farm pro-
by Melanie Anderson
According to a report released by the Automotive Services Association (ASA), 17 Select Service shops in Birmingham, AL, removed themselves from the program prior to any registration or use of the application. “We are in a pilot—a pilot is still a process where you are learning,” said George Avery, a Property & Casualty Claims Auto Consultant who has been with State Farm for 33 years. “We had an unfortunate incident in Birmingham because some repair facilities decided to leave the Select Service program before we even got there. They made that decision before the pilot was even over or without even trying the tool, but that was a decision they felt they needed to make, See Birmingham Reacts, Page 12
gram has re-ignited our association’s fire!” The years may have gone by in comfort and complacency, but the
by Melanie Anderson
Rhode Island’s Auto Body Legislation Called “Great Consumer Bill” but Decried by Insurers Insurance companies are pushing for Rhode Island Gov. Lincoln Chafee to veto a bill passed by the General Assembly which is currently on the governor’s desk. The bill would allow auto body shops to directly sue insurers for reasonable reimbursement. Insurers are urging a veto to prevent a flood of law-
suits. The legislation was originally sponsored by the Auto Body Association of Rhode Island (ABARI) and sought by body shop owners, including the father and sister of state Rep. Peter Petrarca. It cleared its final legislative hurdle at 3:00 am on the final day of
Columnist David M. Brown starts a new series of articles on Nationwide Technician Training for Collision Repair Students. Special to Autobody News. see p. 52
the legislative session. Representatives from auto body shops say the bill is about equity. They claim they don’t have a chance to set their own rates because insurance companies refuse to negotiate. “It shouldn’t cost the consumer anything that’s not what it’s about. The
issue is more about getting the insurance companies to actually negotiate as opposed to taking a take it or leave it stance, which some of them currently do,” said Randy Bottella, president of the Auto Body Association of Rhode Island. See Great Consumer Bill, Page 32
We asked BMW North America: What Does it Take to Become a BMW Certified Collision Repair Center? Why there are only 69 in the US... see p. 48
CCC’s Director, Industry Analyst, Susanna E. Gotsch addresses Disruption as the New Normal —Macro Trends in the Industry Special to Autobody News
see p. 38
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