Northeast Edition New York New Jersey Pennsylvania Delaware
31
YEARS
www.autobodynews.com
President Obama Takes on Chinese Auto Parts, Alleging Illegal Subsidies, and Gov. Romney Plan President Barack Obama confronted China’s alleged auto parts subsidies on Sept. 17, accusing that country of unfair trade practices that “harm working men and women [in the US].” Beijing has acknowledged strategies to support industries targeted for development, ranging from clean energy to mobile phones to autos. Companies can receive tax breaks and low-cost bank loans, energy and land. Exports accounted for about onesixth of the $300 billion in sales by Chinese auto parts makers last year, according to research firm AlixPartners Asia. The United States was by far the
biggest destination for Chinese auto parts last year, with sales rising 26 percent to $12.9 billion. Exports to the No. 2 region, Western Europe, rose by a similar margin to $7.8 billion, said Alixpartners. “Today, my administration is launching new action against China —this one against illegal subsidies that encourage companies to ship auto parts manufacturing jobs overseas,” Obama said in a campaign speech in Ohio, the heart of auto parts manufacturing in the United States. “Those subsidies directly harm
State Farm Insurance has sent a letter to all of its Select Service shops to offer the latest updates and answers to common questions surrounding the company’s parts procurement pilot through PartsTrader. In the letter, State Farm said it believes customers will benefit from competitive pricing, high quality parts and a strong parts supply chain for auto repairs. The company said the PartsTrader platform will ensure that State Farm can work with repairers to fix more cars rather than total them. “State Farm believes technology is changing the driving experience and customer expectations. While we don’t
know what the future holds, trends suggest changes are ahead for insurers and repairers,” State Farm said. “We understand that the ideal ordering solution for repairers will leverage the benefits of technology to provide the opportunity to locate the highest quality parts, at the most competitive prices, as quickly as possible.” State Farm offered the following information to its Select Service shops in attempt to address “misunderstandings and misgivings” that many people have developed regarding the program: ● Pricing information: State Farm said it cannot see repairer costs or part
See Chinese Auto Parts, Page 50
State Farm Releases PartsTrader Update, Adds Chicago to Test Market
See PartsTrader Update, Page 55
VOL. 2 ISSUE 7 OCTOBER 2012
Eminent Domain Ordered by Judge for Body Shop in PA Route 29 Expansion
In a legal battle involving a body shop owner, his former attorney, the Pennsylvania Department of Transportation and the expansion of Route 28, a judge recently ruled that William Lieberth Sr., 56, owner of a body shop on Route 28, must agree to a PennDOT settlement, pay his former attorney and vacate his North Side business by Oct. 1. Lieberth said he plans to fight on via appeal. In an interview with the Pittsburgh Post-Gazette, he said he is prepared to “die for his building.” He did not elaborate on what that meant but said, “I’m of pure German descent. We know how to fight. I am fully prepared, if I have to.” PennDOT, which acquired the land through eminent domain, has said the ongoing Route 28 work requires demolition of Lieberth’s build-
ing and the adjacent parking lot. Lieberth ignored a letter he received from PennDOT in July telling him he must vacate his building by Aug. 6. Lieberth has owned and operated Allegheny Auto Body since 1976. He said he ignored the vacate notice because he had nowhere to William Lieberth, move his business. owner of Allegheny Autobody says he The Alhas nowhere to legheny County move to Common Pleas Court order, written by Judge Michael E. McCarthy, enforces a settlement that representatives for the Pennsylvania Department of Transportation and Harvey Robins, a forSee Eminent Domain, Page 10
NJ Shop Owner Goes Round and Round with State Farm on Material Reimbursements
In an exchange of several letters between body shop owner Don Harvey of International Collision Service in Englewood, NJ, and State Farm, the problem of material reimbursement is yet to be answered. Harvey initiated the request in a letter to State Farm CEO Ed Rust in February 2012 to address what he felt was an inadequate paint and materials reimbursement rate. Despite State Farm responding to his queries, Harvey says he still hasn’t received a satisfactory answer to how the reimbursement rate was determined from a “yes or no” question on the insurer’s survey. The yes or no question on the survey he referred to is, “Do you use an automated paint and materials rate calculator?” In response to another letter Harvey wrote dated July 10, State Farm stated that it believed the best opportunity to provide him with a more complete understanding of their survey was to facilitate a one-
on-one discussion between him and their estimatics leadership in New Jersey. Harvey first replied by stating, “It seems State Farm is ‘dancing’ around these issues as this now is the fourth letter and yet no answers to either the material reimbursement or the explanation on how the rate got determined from a yes or no question on State Farm’s survey.” In a letter dated August 21, Harvey thanked them for the invite but turned it down. “My concerns as a member of the New Jersey auto body community is an answer to how a paint material rate has been determined from State Farm’s ‘survey’ when a yes or no is the only option,” said Harvey. “This clearly is a question that can be answered in writing and doesn’t require a one-on-one meeting to address.” For details on the back and forth search “Don Harvey” at www.autobodynews.com.
Change Service Requested
P.O. BOX 1516, CARLSBAD, CA 92018
Presorted Standard US Postage PAID San Bernardino, CA Permit #2244