January 2025 Southeast Edition

AL / FL / GA / MS / NC / SC / TN / VA / WV

Insurer-Repairer Collaboration Important For Both To Make Customers Happy

By Stacey Phillips Ronak Autobody News

An ongoing challenge in the collision industry is improving customer satisfaction and retention following a vehicle accident. In October, CCC Intelligent Solutions released findings from its Moments of Truth study, identifying the key drivers of customer satisfaction and retention in the auto insurance claims and repair process.

The study examined 47 “Moments of Truth” based on data from 2,400 policyholders who had been in an accident between August 2021 and December 2023 and completed the repair process as a first-party claimant.

The study was co-authored

by Maryling Yu, vice president of marketing at CCC Intelligent Solutions, and Dr. Ranjini Vaidyanathan, director of CCC’s data science team.

“The study sought to define the

critical points in time -- or moments of truth -- in which carriers and repairers must perform well to achieve a good outcome for customer satisfaction, and for carriers, customer retention,” explained Yu. Autobody News talked to Yu about the study and the implications for insurers and repairers. She will provide an in-depth analysis of the findings during a Dec. 5 CIECA Webinar.

What prompted CCC to conduct the Moments of Truth study?

Prior to joining CCC in 2023, I worked in the financial technology (fintech) sector.

Over my career, I have enjoyed sharing insight l CONTINUED ON PAGE 12

Vol. 15 / Issue 11 / January 2025 REGIONAL NEWS

Wren’s Collision Group Acquires Keziah’s Collision in Canton, GA Wren’s Collision Group announced Nov. 18 the acquisition of Keziah’s Collision in Canton, GA. With the new location, Wren’s now has a total of 16 collision centers – 14 in Georgia and two in Florida.

Wren’s Collision Group, a thirdgeneration family owned and operated business, has grown to become the largest privately-owned MSO in the Southeast. For more than 50 years, Wren’s has been building a legacy of exceptional service, community engagement and commitment to its core values.

The addition of Keziah’s Collision, a family operated collision center known for its excellence and strong community roots, aligns perfectly with Wren’s mission to deliver top-

tier service while maintaining its foundational principles.

“We are honored to continue our expansion with the addition of this family owned and operated center,” said James Wren, owner of Wren’s Collision Group. “We are excited to continue the tradition of excellence Danny Keziah and his team have created. As we continue our strategic growth, I am grateful for our customers, partners, vendors and our talented teammates. This is what makes our expansion plans come together.

“We don’t want to be the biggest; we want to be the best at maintaining our core values, mission and vision while serving our community every day,” Wren said.

REGIONAL NEWS

Florida Insurance Fines Surge 7x Under Current Commissioner Florida Insurance Commissioner Michael Yaworsky has increased enforcement efforts, leading to a rise in fines and restitution for policyholders in 2024.

Insurers faced $2.8 million in fines during the first three quarters of the year, nearly seven times the total penalties issued in all of 2023, according to a new enforcement report.

Yaworsky, who took office in early 2023, has made claims handling misconduct a particular focus.

“We will not allow consumers to be treated unfairly during the recovery process,” he said in a statement.

The Florida Office of Insurance Regulation (FLOIR) reported $8 million in monetary restitution for policyholders affected by claimshandling issues, much of which stemmed from damage caused by hurricanes Helene and Milton. FLOIR has also conducted more than 600 market conduct examinations under Yaworsky’s leadership. l CONTINUED ON PAGE 10

INSIDE THIS ISSUE 2

Mike Anderson: Collision Repairer Shares His Perspective on

24

Abby Andrews: SEMA Show Attendees Talk About What They Gained

PERMIT #288 ANAHEIM, CA

4

22

Negotiating with Insurers

to Address Challenges

Stacey Phillips Ronak: Red Carpet Awards Night Honors Those Who

Go Above and Beyond

John Yoswick: GM’s New Collision Assistance App Contacts Driver at Accident Scene, Helps Them Choose Repair Shop

PAID

Change Service Requested P.O. BOX 1516, CARLSBAD, CA 92018

PRESORTED STANDARD U.S. POSTAGE

Mike Anderson — From the Desk of Mike Anderson

Collision Repairer Shares His Perspective on Negotiating with Insurers I had the privilege at SEMA this past November to teach a class on negotiating for collision repairers with my colleague, Sheryl Driggers.

Autobody News was kind enough to run an article about that class.

A gentleman I know in this industry — who has attended a similar class I taught in the past — read the article, and contacted me to say he that while he’s implemented many of the strategies he’s heard from me over the years, he wanted to respectfully offer his own view on the topic of negotiating with insurers. I always welcome new perspectives, so I contacted Drew Plischke.

Plischke is the director of client / insurance reconciliation at Gold Coast Auto Body in Chicago, a company he’s been with for 20 years.

In all, he’s spent nearly four decades in the industry, starting as a porter at a shop after leaving college, becoming a technician and then an estimator before taking management and leadership positions.

“In every role, I’ve focused on one central mission: ensuring that our customers feel supported, valued and guided through every aspect of the repair process,” Drew told me.

After we talked about his view of negotiating, I invited him to put his thoughts into writing. He did so, sharing why he believes “negotiating with insurers can be detrimental to collision repairers.” I decided to turn this month’s column over to him.

Drew wrote: “After our shop severed our last DRP relationship with a major insurance carrier, everything changed. It was from that point on that I began to see the collision repair landscape shift in ways that fundamentally changed how repairers should approach negotiating with insurers. As the insurance industry has evolved, I’ve come to realize that while negotiating with insurers may have been a viable strategy in the past, it may no longer be the best solution for collision repairers today. In fact, in many cases, this kind of negotiation may be counterproductive.

“In the past, it may have seemed that insurers were partners in ensuring that vehicles were repaired safely and correctly. But the reality has always been that insurers have been focused primarily on controlling repair costs. While safety and quality should always be the top priority, it’s

become clear that insurers’ efforts to cut costs have often come at the expense of these essential factors.

“Over time, we’ve seen a shift in the language and tactics used by insurance companies. Terms like ‘prevailing market rates’ and ‘industry standard’ have increasingly replaced concrete standards such as OEM repair procedures, position statements, and owner’s manual guidelines. Rather than relying on clear, evidence-based repair standards, insurers now often use ambiguous language to set limits

on repair costs. Unfortunately, these terms can be used to justify reducing payments or even denying necessary repairs, which leaves repairers in a difficult position.

“I’ve seen this firsthand in our shop, especially since ending our DRP relationships. What used to be a more predictable process for dealing with insurance claims now often feels like a constant struggle.

Insurers have increasingly relied on vague terminology like ‘usual and customary’ or ‘not being charged by others’ to justify reduced payment amounts, and that leaves us with limited leverage to negotiate a fair rate for the repairs needed.

“The challenge is not just the payment amounts but shifting expectations regarding the scope of work. Terms like ‘industry standard’ are so open to interpretation that it becomes nearly impossible to have a productive discussion about what is necessary to restore the vehicle safely and properly.

“It’s also important to remember that insurers aren’t just neutral parties in the repair process. They have a legal obligation to act in good faith on behalf of the policyholder.

Insurance companies have fiduciary duties to their clients, which include ensuring that vehicles are repaired properly and safely, with payment

2 JANUARY 2025 AUTOBODY NEWS / autobodynews.com

made for the full scope of necessary repairs.

“However, as repairers have become more involved in negotiations with insurers over cost, this duty has been complicated.

Instead of ensuring that repairs meet documented safety standards, insurers are increasingly focused on managing costs. This shift in focus can sometimes work against the best interests of the vehicle owner and the repair facility, putting safety at risk.

Advocating for the Vehicle Owner “My role at our shop has always been to advocate for the vehicle owner, ensuring they receive the best possible repair according to OEM repair standards — not to haggle with insurers over labor rates or discount procedures.

“As vehicles have become more complex, with advanced technology such as ADAS and safety features that require specialized knowledge, tools and certification, today’s repairs are not just about returning a car to its previous state; they’re about returning it safely, with every necessary procedure followed to ensure the vehicle’s integrity.

“In this environment, negotiating with insurers over the cost of repairs can be both inefficient and potentially unsafe. The focus should always be on ensuring that the vehicle is repaired correctly, not on what the insurer is willing to pay.

Repairers should be empowered to work directly with the vehicle owner to ensure the proper repairs are made — without being constrained by what the insurance company is willing to cover.

Focus on Quality Repairs, Not Negotiating Rates “Rather than getting bogged down in negotiating with insurers, collision repairers need to shift our focus back to what really matters: providing high-quality, safe repairs for the vehicle owner.

“A simple solution is to begin directly billing the customer for the repairs we perform, while allowing the insurance company to settle the claim separately. This allows repairers to focus solely on the work at hand — performing the repairs

according to the highest safety standards — without the distractions of insurers trying to limit the scope of work or delay payments.

“And here’s the critical part: This method works. It’s been successful for us over a large sample size of both first-party insureds and thirdparty claimants. By focusing on delivering the necessary repairs, providing clear documentation of what’s required, and directly billing

“In this environment, negotiating with insurers over the cost of repairs can be both inefficient and potentially unsafe.”

—DREW PLISCHKE GOLD COAST AUTO BODY

the vehicle owner, we’ve been able to reduce the time spent fighting over arbitrary rates or unnecessary negotiations, and instead focus on the repair. This method of billing directly to the consumer has been a game changer for our shop, allowing us to maintain control over the repair process, prioritize safety, and continue to deliver high-quality work.

Time to Focus on What Matters “I believe the time has come for the collision repair industry to focus on ensuring that vehicles are repaired correctly and safely, according to OEM standards, without being drawn into constant negotiations with insurers. We should not allow insurers to dictate the terms of repair decisions or payment through vague language that only serves to reduce costs, often at the expense of safety.

We should advocate for what is necessary to restore the vehicle to its pre-accident condition and trust that the claims process between the policyholder and the insurance company will unfold as it should.

“It’s time we reclaim control over the repair process, prioritize the safety of the vehicles in our care, and ensure that all parties involved — repairers, vehicle owners and insurers — work together for the greater good.”

I want to thank Drew for taking the time to share his perspective so professionally and respectfully, and for allowing me to share it with you through my column this month.

NATIONAL BASF ‘Techs for Tomorrow’ Students Gain Experience, Make Connections at 2024 SEMA Show ������������������������������ 8 Abby Andrews Collision Repair Shops Should Leverage AI to Improve Customer Experience, Capture More Jobs ��������� 6 Abby Andrews NABC Recycled Rides Presents Vehicles to 11 Las Vegas-Area Recipients at 2024 SEMA Show ������� 14 Abby Andrews Negotiate with Insurance Carriers Using Facts and Emotional Awareness ������������������������������������������������������� 18 Abby Andrews SEMA Show Attendees Talk About What They Gained to Address Their Shops’ Biggest Challenges �������������� 24 Abby Andrews EV Collision Claims Rise as National Policy Changes Expected ����������������� 28 Brian Bradley ‘Two Bites of the Apple’: Small MSO Sales Can Mean Double Rewards for Investors ����������������������������������������� 36 Elizabeth Crumbly IDEAS Collide Showcase Provides Platform for Sharing Innovative Ideas 2025 WIN Conference Registration Open ������������������������������������������������������� 10 Allstate Sues Hyundai, Kia Over Fire Risk and Recalls ������������������������������������� 34 Caliber Appoints Chief CDO �������������� 26 Cindy Reeves Joins CIF Board of Trustees �������������������������������������������������� 17

in Collision Repair ���������������������������� 27 Stacey Phillips Ronak Insurer-Repairer Collaboration Important for Both to Make Customers Happy ������������������������������������������������ 1 Stacey Phillips Ronak Red Carpet Awards Night Honors Those Who Go Above and Beyond ����� 4 Stacey Phillips Ronak Total Loss Processing: Attention to Detail, Documentation Essential for Collision Shops �������������������������������� 38 Stacey Phillips Ronak CIC: Study to Look at ADAS Trends; Students Share What They Want in a Shop ������������������������������������������������ 10 John Yoswick GM’s New Collision Assistance App Contacts Driver at Accident Scene, Helps Them Choose Repair Shop ����� 22 John Yoswick MSO Symposium Looks At Economic Forecast, Discussion of Customer Satisfaction ������������������������������������� 15 John Yoswick Shops Say Specialization of Employee Roles Improves Production, Eases Finding Qualified Workers ��������������� 32 John Yoswick Electrified New-Vehicle Sales Drive Overall Gains for Automakers in November �������������������������������������������������5 NHTSA Updates 5-Star Safety Ratings to Highlight Pedestrian Protection, Advanced Tech ������������������������������������� 23

Audi Gwinnett ������������������������������������������26

Kia Motors Wholesale Parts Dealers �������35

Audi North Miami ������������������������������������29

Mercedes-Benz Wholesale Parts Dealers �� 39

Audi Wholesale Parts Dealers �����������������33

Miami Lakes Automall �����������������������������13

AutoNation Ford-Memphis ����������������������24

MINI of Charleston ����������������������������������30

BMW Wholesale Parts Dealers ���������������39

MOPAR Wholesale Parts Dealers ������������15

Certified Automotive Parts Association ���10

Nissan/Infiniti Wholesale Parts Dealers ����37

Classifieds �����������������������������������������������38

Ourisman Kia of Fairfax ����������������������������30

Dale Earnhardt Jr. Chevrolet ��������������������31

Parks Chevrolet ����������������������������������������30

Empire Auto Parts ������������������������������������18

Reed Nissan ��������������������������������������������28

Ford Wholesale Parts Dealers �����������������37

Rick Hendrick Chevrolet Naples ��������������31

GM Wholesale Parts Dealers �������������������32

Serra Kia ��������������������������������������������������28

Grieco Ford of Fort Lauderdale ����������������23

Sport Durst Chrysler-Dodge-Jeep-Ram ���30

Gus Machado Ford ����������������������������������11

Stivers Decatur Subaru ����������������������������24

Harper Volkswagen ����������������������������������16

Stivers Ford South �����������������������������������17

Hendrick Automotive Group ����������������������7

Subaru Wholesale Parts Dealers �������������34

Hendrick Honda Pompano Beach ������������29

Toyota-Mazda of North Miami �����������������26

Hendrick Kia Cary ������������������������������������25

Toyota Wholesale Parts Dealers ��������������39

Hendrick Kia Concord ������������������������������25

TruckWriter Estimator �����������������������������8

Hendrick Volvo Cars of Charleston ����������30

US Auto Supply ���������������������������������������9

Honda-Acura Wholesale Parts Dealers 19-21

Volkswagen Wholesale Parts Dealers ���36

Nominations Open for AACF Award 30

Claim Transparency Innovations Joins CIECA ������������������������������������������������������ 39

REGIONAL Bob Mills Mitsubishi Adds Mighty Auto Parts Franchise �������������������������� 16

Orlando Youth Mentor Receives

CFCC Fundraiser Raises $113,500 for Automotive Student Support ����������� 23

Warren Henry Auto Group Expands

Florida Insurance Fines Surge 7x Under Current Commissioner ������������ 1

Wren’s Collision Group Acquires

Maaco Daytona Beach Celebrates Grand Opening ������������������������������������ 34

Index of Advertisers

Vehicle from NABC Recycled Rides 13

Hyundai Wholesale Parts Dealers �����������36

with Acquisition of Kia of Key West � 22

Keziah’s Collision in Canton, GA ��������� 1

Thanks to this months Digital Partners

COLUMNS Collision Repairer Shares His Perspective on Negotiating with Insurers ���������������� 2 Mike Anderson autobodynews.com / AUTOBODY NEWS JANUARY 2025 3

Red Carpet Awards Night Honors Those Who Go Above and Beyond

By Stacey Phillips Ronak Autobody News

This year’s Red Carpet Awards Night, held Nov. 5 during the SEMA Show, recognized excellence in the collision industry. Nine organizations gave out a total of 20 awards.

“Tonight, we will honor those who go above and beyond, who dedicate their skills and time to elevate our standards, and who serve as role models for their peers,” said Stacey Phillips Ronak, owner of Radiant Writing & Communications and the emcee of the event. “The awards represent more than just accolades; they are a testament to the hard work and determination that drives our industry forward.”

between all stakeholders, benefiting the industry and its customers.”

Gaurav “Rav” Mendiratta, CEO of SocioSquares and chief product officer at Propel, also received an Outstanding Contribution award for his volunteer efforts. Mendiratta said he learned about the collision industry after his wife was in a car accident and the vehicle was repaired at an Oakland, CA, body shop.

The third recipient, Stacey Simmons, sales operations director at Enterprise Mobility, has volunteered for CIECA for the past few years, including at the CIECA CONNEX Conference.

Aaron Schulenburg, third from right, accepts the award from CIECA

Chris Martinez, left, Ashley Denison, center, and Paul Barry, right.

Barry Dorn, left, and Jason Stahl, right.

BodyShop Business BodyShop Business presented two Executive of the Year Awards.

Barry Dorn, owner of Dorn’s Paint & Body in Mechanicsville, VA, received the Single-Shop Award.

“There are so many other folks who should be up here besides me,” said Dorn. “I’m incredibly honored and truly shocked.”

Wendy Patrick, chief administrative officer of Joe Hudson’s Collision Center in Pike Road, AL, won the MultiShop Award. Jason Stahl, editor of BodyShop Business, said Patrick’s peers look up to her for guidance because her energy is unparalleled.

Collision Industry Electronic Commerce Association (CIECA) Three individuals received an award from CIECA for Outstanding Contribution.

Chris Martinez, lead integrations developer at Nexsyis Collision, was the first. Since joining CIECA’s Architecture Committee in April 2024, Martinez has contributed technical expertise from the collision repair industry perspective.

“Being part of CIECA helps reduce the challenges of sharing the digital information you need to communicate,” said Martinez.

“Having an industry standard facilitates business communication, ensuring a smooth flow of information

Schulenburg, executive director of SCRS. In presenting the award, Darrell Amberson said Schulenburg is one of CIC’s hardest-working committee chairs and is “exceedingly dependable, willing to take on tough topics.”

“I never expected this,” Simmons shared. “I’m very proud to be part of Enterprise and part of joining CIECA and partnering together in the industry for what we do.”

Ken Eagleson, OEC’s vice president of insurance solutions, was the recipient of the Chairperson’s Award. Eagleson, CIECA’s secretary on the Executive Board, is an active CIECA member who volunteers on several CIECA Committees.

“CIECA’s commitment to open standards is something that benefits, I would say, most everybody in this room,” said Eagleson. “I am grateful to be a part of an organization that facilitates electronic commerce across all segments of our industry ecosystem, allowing us all to be more efficient and profitable in our endeavors.”

CCC Intelligent Solutions, a CIECA founding member, was named Electronic Commerce Company of the Year. “CIECA truly does power e-commerce in this industry,” said Mark Fincher, vice president of product management at CCC Intelligent Solutions. “We’re thankful for the work that so many of the volunteers do every single day to create these standards to facilitate this open commerce.”

Collision Industry Conference (CIC) This is the second year the Collision Industry Conference (CIC) has given out a Volunteer of the Year Award.

This year’s recipient was Aaron

4 JANUARY 2025 AUTOBODY NEWS / autobodynews.com

“This is very cool and very unexpected and I’m super grateful,” said Schulenburg. He said his first CIC was more than 20 years ago, when March Taylor told him that that more young people needed to attend the meetings, stand up and be vocal, write articles and “say the stuff that matters.”

Collision Repair Education Foundation (CREF) CREF presented three Fueling the Future Awards.

The first was given to Josh Kent, executive director of the Carolinas Collision Association (CCA). Amber Ritter, of CREF, said under Kent’s leadership, CCA has brought 32 regional schools into its network and has raised nearly $13,000 over the past three years for student scholarships and uniforms.

Julie Lombardo, left, Amber Ritter, center, and Greg Brink, right.

Greg Brink, a retired instructor and advisory committee member of Rock Valley College, and Julie Lombardo, executive director of the Alliance of Automotive Service Providers of Illinois (AASPI), were the other two recipients. They worked together to help open a new collision repair program at Rock Valley College.

FenderBender FenderBender and ABRN magazines gave out two awards.

The Best Repair Planner/Estimator

Award was presented to Anthony McNee from Ultimate Collision Repair in Edison, NJ. “I would like to thank everybody who put this event together; it means a lot to me,” said McNee. The FenderBender Award, which recognizes outstanding owners and operators whose businesses represent quality, service, culture and community involvement, was given to Amber Alley, general manager of Barsotti’s Body & Fender in San Rafael, CA, for fostering a team-based work structure, OEM certifications, quality repairs and OEM training.

“I reflect back over the last 10 years, coming to these meetings and the mentorship that I’ve received from so many people in this room, and I don’t think I’d be here without it,” Alley said. “I think it is very important to surround yourself with people who you look up to and respect and want to see you … do the right thing.”

Andrew Johnson, left, Amber Alley, center, and Jay Sicht, right.

Hall of Eagles A legacy industry award added this year was the Collision Industry Hall of Eagles, the industry’s hall of fame.

The award was presented by two inductees: Chuck Sulkala, inducted in 1989, and Stacy Bartnik, inducted in 2010.

Sulkala announced Janet Chaney as this year’s Hall of Eagles inductee.

“I’ve always had such great respect for our industry and our people and the Hall of Eagles,” said Chaney.

“I never ever dreamed I would be getting to share the stage with these champions of our world.”

I-CAR The Jeff Silver Memorial Award for Platinum Individuals was presented to Jared Nicholson of Collision Leaders in Lee’s Summit, MO. The award honors an individual who has been a champion of the Platinum credential — I-CAR’s highest recognition for individuals — and has held their Platinum status for a minimum of five consecutive years.

Jerry’s Body Shop of Mankato, MN,

received the Russ Verona Memorial Award for Gold Class Shops. The recognition honors a collision repair center that has demonstrated a longstanding commitment to excellence,

Rides programs for a decade through Fix Auto USA and has gifted a number of vehicles to families in need and veterans over the years,” said presenter Debbie Teter. “I’m totally moved by his passion for giving back to the community. He’s an amazing example of those in our industry.”

Janet Chaney

upholding the Gold Class Standard and actively promoting training. The family-owned shop has held its Gold Class designation since 1991.

National Auto Body Council (NABC) NABC’s Changing and Saving Lives Award was presented to Henry Arroyo, owner of Fix Auto Cathedral City, Indio, Palm Desert, Palm Desert South and Palm Springs in California.

The award recognizes individuals in the collision repair industry who have delivered exemplary service to their community.

“Henry Arroyo has participated in National Auto Body Council Recycled

Doug Schlueter, left, Henry Arroyo, center, and Debbie Teter, right.

Society of Collision Repair Specialists (SCRS) SCRS gave out three awards this year.

The 2024 Collision Industry Non-Individual Service Award was presented to the Enterprise Mobility Foundation for its contributions to developing the Collision Engineering Program and resources to attract and build up a new generation of skilled professionals equipped to serve the collision repair industry.

Mary Mahoney, who accepted the award on behalf of the Enterprise Mobility Foundation, stressed the importance of industry, education and community coming together.

“Nobody can do this on their own.

It’s an honor to work with every one of you,” she said.

The 2024 National Lifetime Achievement Award was presented to Ron Reichen, owner of Precision Body & Paint in Oregon. A past SCRS chairman, Reichen has been involved in several industry organizations, including CIC, CIECA and I-CAR. Mike Anderson, owner of Collision Advice, received the 2024 March Taylor Kīnā ‘Ole Award.

Kina’ole, a Hawaiian belief sometimes interpreted as flawlessness, was embodied by March Taylor, who owned Auto Body Hawaii and served on the SCRS Board of Directors. It represents doing the right thing, in the right way, at the right time, in the right place, for the right individual, for the right reason, with the right feeling, the first time.

Anderson said when you’re growing up, there are people you want to be proud of you. “When I first heard about the man March Taylor, he was someone I wanted to

be proud of me,” said Anderson.

SCRS also recognized Jeff Hendler for his role in influencing the generations of people who followed him, working on the industry through CIC, SCRS and everything in between, and the energy and passion he has invested over the years to make the industry better.

Pictured, left to right, are Aaron Schulenburg, Mike Anderson, Michael Bradshaw and Barry Dorn.

“It’s hard to not think of a lot of some of you as kids, and yet you’re full-grown, full-functioning adults that are taking this industry to another level that some of us wish that we’d get to,” said Hendler. “I thank each and every one of you, and I thank the society [SCRS] and I-CAR and CIECA and NABC and all the people who work together in this industry to make us what we are. We need each and every one of us.”

Electrified New-Vehicle Sales Drive Overall Gains For Automakers in November Automakers on Dec. 3 began releasing sales results for November, reporting strong results for light trucks and electrified models, including plug-in hybrids and fully electric vehicles.

Honda American Honda sold 121,419 units in November, a 14.5% increase year-over-year, driven by strong sales of light truck and electrified models for both the Honda and Acura brands.

The Honda brand sold 110,020 units, up 15.9% over November 2023, keeping the brand on course for a 10% annual increase.

The Honda brand also set an all-time monthly sales record for electrified models with more than 38,000 units, led by strong demand for hybrids and a new monthly sales record for the Prologue, which sold 6,823 units.

Honda light truck sales are up 15.7% so far in 2024, with 79,982 units sold in November. Pilot sales of 12,652 and Odyssey sales of 6,644 kept both models at the top of their respective segments.

CR-V sales are on track for an alltime annual sales record, topping

34,300 units in November. More than half — 54% — were hybrid models.

The Acura brand sold 11,399 units in November with strong demand despite supply issues due to retooling of both the Marysville and East Liberty Auto Plants in Ohio in preparation for EV production in late 2025.

Acura sold 9,031 SUVs in November, a 16.3% increase yearover-year. The All-electric ZDX posted its best sales month since its launch with 1,317 units; more than a quarter of those sales were the ZDX Type S. Subaru Subaru of America, Inc. reported 57,690 vehicle sales for November

2024, an increase of 8.2% compared with November 2023, when it sold 53,327. Subaru also reported year-to-date sales of 605,854, a 5.5% increase compared with the same period in 2023.

Crosstrek achieved its best November ever with 16,948 vehicles sold, a 13% increase compared to November 2023, and its fifth month in a row as the top performer by volume.

Forester was the secondhighest selling carline in November with 14,843 vehicles sold, and Outback sales increased to 14,004 vehicles sold. Solterra also continued to see sales growth, achieving its best November ever, up 13% over the previous year.

Hyundai Hyundai Motor America reported record-breaking total November sales of 76,008 units, an 8% increase compared with November 2023.

Hyundai set total sales records in November for Santa Fe HEV (+64%), Tucson PHEV (+23%), Tucson HEV (+227%), IONIQ 5

(+110%) and Elantra N (+140%).

Hybrid vehicle total sales jumped 114%, while total EV sales grew 70%. This was the best-ever month for Santa Fe HEV, Tucson PHEV, Tucson HEV and IONIQ 5.

Retail sales for November 2024 set new records, climbing 15%.

EV retail sales increased 77% year-over-year, hybrid retail sales grew by 104% and electrified (EV, hybrid, plug-in hybrid) retail sales jumped 92%.

Mazda Mazda North American Operations reported total November sales of 33,422 vehicles, an increase of 20.6% year-over-year and the automaker’s best November sales in history. Year-to-date sales totaled 384,181 vehicles sold, an increase of 18.6% compared to the same time last year. With 26 selling days in November, compared to 25 the year prior, the company posted an increase of 16% on a Daily Selling Rate (DSR) basis.

Certified pre-owned sales totaled 6,451 vehicles in November, an increase of 38% compared to November 2023.

autobodynews.com / AUTOBODY NEWS JANUARY 2025 5

Collision Repair Shops Should Leverage AI To Improve Customer Experience, Capture More Jobs

By Abby Andrews Autobody News

Artificial intelligence (AI) is transforming the way many industries do business – including collision repair – and Ryan Taylor, founder and CEO of BodyShop Booster, knows how body shop operators can use it to gain an advantage.

Taylor presented “AI is Here: How Others are Leveraging AI Interactions with Automotive Consumers” during the 2024 SEMA Show, with tips on how AI can help shops capture more business, reduce staff’s administrative burden and improve the customer experience to increase repeats and referrals.

Taylor quoted Rupert Murdoch, who said, “The world is changing very fast. Big will not beat small anymore. It will be the fast beating the slow.”

“Nothing is faster than AI,” Taylor said. “I have never seen anything move this quickly, proliferate into different industries quicker or allow companies to speed up faster.”

Taylor, who previously owned a network of eight body shops and a mobile hail damage repair business, told the story of a customer who claimed one of Taylor’s shops had incorrectly repaired the front passenger seat belt in her car, and her 11-year-old daughter went through the windshield when the customer had to hit the brakes suddenly.

When Taylor saw the car, the windshield wasn’t even cracked, and the seat belt was only twisted.

Relieved, Taylor asked the customer what was going on. She told him she’d had a terrible experience with his shop, which her insurance company had directed her to use. She felt like the staff didn’t care and didn’t communicate.

She said Taylor’s shop would never touch her car again and she was going to switch insurance companies.

“What if 5%, 15%, 50% or God forbid, 100% of our customers are also being asked for their claim number, not their name? This is the silent killer of business right here,” Taylor said.

Getting repeat business and referrals is key, Taylor said. In 2011, when that customer vowed to never use Taylor’s shop again, his average severity was $3,300, meaning that customer had only brought in $3,300 to his business. But if the shop had been able to get repeat jobs or referrals, the customer’s “lifetime value” would have been $147,000.

With average severity significantly higher now, a single customer’s potential “lifetime value” is now also much higher.

“If we unlock this, things will change for us in a big way,” Taylor said. “I’m going to show you three secrets of how AI is going to help you unlock these areas better than ever before.”

AI is currently moving from the “innovator” stage, as new tools and technology are developed, to the “early adopter” stage. Taylor encouraged the audience be one of those early adopters, as customer experience is going to be the “major differentiator” in capturing business.

Ryan Taylor, CEO of BodyShop Booster, said AI can address several issues shops should look at before spending more money on marketing.

“Everything we’re talking about today, in AI world, is the worst it will ever be,” Taylor said. “It’s only getting better.”

“To the Door” The first secret is to use AI to bring customers to a shop’s door.

Taylor said there is a national dropoff in shops’ backlogs, and several are coming to his business asking for marketing help.

“You need to fix this first,” he said.

Taylor said for every 100 customers who make contact with a shop after a crash, on average, only 57% get an estimate. The other 43% drop off.

The “tip of the spear” at the shop are the service advisors or customer service representatives who answer that first phone call, Taylor said. If they are doing their job effectively, there shouldn’t be any drop off.

He said whoever first speaks to the customer needs to get their personal information and vehicle information – which can be used to leverage any relevant shop certifications – while using a tone of voice that shows empathy for what the customer is going through.

“The drop off is cut in half if you get that info [in the first call],” Taylor said.

Taylor said he once worked with an OEM to call its certified shops, posing as a potential customer, to rate their first contact. He played one of those calls, in which the employee who answered the phone only asked what insurance company the customer was with.

Taylor then called a New York body shop’s existing AI assistant, which

6 JANUARY 2025 AUTOBODY NEWS / autobodynews.com

answers the phone if an employee is unavailable. The AI assistant expressed empathy for Taylor’s made-up accident in a 2022 Toyota Corolla, told him the shop was certified by Toyota, got his name and phone number and then sent him a link so he could upload images of the damage to get an estimate started.

“It gets better on a weekly basis,” Taylor said. “Every conversation it has, it gets smarter.”

AI can also help streamline communication between employees within the shop, and between the shop and the customer, which saves everyone time and makes the customer feel better because the repair process is happening faster.

Dealerships can use AI to scan vehicles in their service lane that have some degree of damage – which, on average, is 41% — and generate a simple estimate, to get the customer into the collision repair center’s system.

AI is now at a point where shops can grab an assignment from an insurance company via its estimating system and make first contact with the customer via email, text or voicemail, providing them with the next steps to file a claim.

“We know that when a customer is dealt with quickly, their consideration set shrinks,” Taylor said. “It doesn’t take any people. AI can do all that for you.”

“Through the Door” Once the customer is through the door, AI can reduce the administrative burden on shop staff.

Taylor said in a survey, 63% of employees said they were afraid to ask their superiors for help or advice, but they love to chat with AI because they don’t feel judgement.

He said AI can be used by loading shop procedures and letting staff ask it questions.

On average, shops capture about 56% of estimates they write. AI can be used to “tighten that gap” before spending on money on marketing, Taylor said.

He gave a hypothetical example of a shop that writes 100 estimates and gets 56 jobs. If management spends money on marketing and gets 200 estimates, it increases the workload on staff.

Typically, their work would suffer, and the shop’s capture rate would shrink – say to 40%, which would be 80 jobs.

If that shop instead increased its capture rate on those 100 estimates to 80%, it would get 80 jobs without stressing out staff.

There are two ways AI can help sell more estimates, Taylor said.

The first is to sell to the “second buyer.” For example, a married couple

may both be on an insurance policy, but only one person speaks with the shop about a claim. They then decide with their spouse which shop to choose. If all they have is estimates, they typically just pick the cheapest option.

Taylor said AI can be used to create a video explaining to the “second buyer” why a shop is the right one. One shop that implemented that practice found it increased capture rate by 5%.

The second is estimate follow-up.

Taylor said 91% of shops reported they don’t do any estimate follow-up because it’s time consuming. AI can be used instead to send emails and texts to those potential customers.

AI can also let customers schedule their repairs, reserve a rental car and sign documentation.

“Out the Door” It’s 70 times more expensive to get a new customer compared to getting repeat business or a referral from a current one, Taylor said. However, a survey by an insurance company showed only 1.56% of customers who’d had a car repaired had referred someone else to the body shop they used.

Taylor said in most customers’ minds, body shops are all the same.

The best way to stand out – to make your customer remember you when they see someone else who needs your services – is to be efficient and responsive.

“When you [quickly] take that pain away for your customer…they will never forget you,” Taylor said. “When they understand you’re different, they will remember and refer you.”

Use AI to reinforce that behavior, he said.

Mark Probst, a shop owner in Illinois, is doing just that, Taylor said.

When a customer leaves his shop after a repair, they get recorded a pre-recorded voicemail from Probst, thanking them for choosing his shop and checking on how the drive home went. They then get a text asking for feedback in a Google review.

Thirty days later, the customer gets another pre-recorded voicemail from the shop’s painter, letting them know the paint is 100% cured and they can now wax or polish it. That voicemail also thanks them for choosing the shop.

“When you add value to your customer, they will add value to you through repeats and referrals,” Taylor said.

“When we look at AI and all the automation, think about all the tasks you’re doing manually,” Taylor said. “It’s about four hours per customer, but when you use AI, it’s 30 seconds.”

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BASF ‘Techs For Tomorrow’ Students Gain Experience, Make Connections At 2024 SEMA Show

By Abby Andrews Autobody News

BASF and the TechForce Foundation teamed up to grant five $2,500 scholarships and a trip to the 2024 SEMA Show to aspiring collision repair students, as part of the Techs for Tomorrow initiative.

The students selected for the BASF Techs for Tomorrow scholarship and SEMA experience included Nolan Sousek of WyoTech in Laramie, WY; Dustin Detwiler Jr. of Aims Community College in Greely, CO; Mindi Cogdill of UTI Houston in Texas; Jocelyn Pandolfo of the

Pennsylvania College of Technology in Williamsport, PA; and Farren Moody of Fayetteville Technical Community College in North Carolina.

The students’ SEMA experience included three days and two nights of immersive activities at the convention that enhanced their knowledge and industry connections. The students attended industry events, visited exhibitors showcasing their latest innovations, and engaged directly with team members. Additionally, students had the unique opportunity to meet industry experts and participate in mentoring sessions with leading custom builders, who

Students chosen for this year’s Techs for Tomorrow program received a $2,500 scholarship and a trip to the 2024 SEMA Show.

8 JANUARY 2025 AUTOBODY NEWS / autobodynews.com

serve as BASF ambassadors.

During the SEMA experience, students received mentorship from BASF’s Marketing Communications Manager Tina Nelles and Business Development Manager John Shoemaker, who helped the students make industry connections to jumpstart their careers.

“We believe that investing in the education and development of young talent is crucial for the future of our industry,” said Nelles.

“This partnership with TechForce Foundation and the opportunity to engage with students at SEMA exemplifies our commitment to nurturing the next generation of skilled technicians.”

Cogdill, 22, originally from Marysville, OH, is a student in the collision repair and refinishing technology program at UTI Houston.

After she graduates in June 2025, Cogdill will intern at a hot rod shop, thanks to the scholarship and connections she made at SEMA. Cogdill is pursuing a career in customs and restoration, and plans to intern and learn as much as possible for the next few years to gain the knowledge and experience to one day own a shop.

“My trip to SEMA had a huge impact on the vision I have for my future,” Cogdill said in an email to Autobody News. “I learned about different techniques and new technology for body repair and refinishing that left me speechless. Sometimes I forget how advanced technology is, but I was quickly reminded!”

After meeting with representatives of BETAG to learn about their new paintless dent repair (PDR) technology, Cogdill was offered a free seat in a training program.

“I’ve never had an experience like that, and I was overwhelmed with gratitude,” she said.

Cogdill also admired a 1966 Ford Bronco, built by RMD Garage and nicknamed “Pure,” and talked with Ralph Holguin about his role in the build.

“Every step of the build was incredibly thought out,” Cogdill said. “[Holguin] had an in-depth reason for each part that he assembled, and those reasons are things that most people never think about.”

Cogdill said she has a 1974 Toyota Land Cruiser that she plans to build after she graduates. Her conversation with Holguin gave her “a lot of insight on how I want to proceed with my

Land Cruiser and every car I build in the future,” she said.

Cogdill encouraged all eligible students to apply for the BASF Techs for Tomorrow scholarship.

“The amount of people in the industry that attend SEMA is mindblowing. The conversations that come from simply introducing yourself to someone could completely alter your future for the

impactful. I am so grateful for this scholarship, TechForce and BASF.” Moody is pursuing an associate degree in collision repair at Fayetteville Technical Community College. After college, she is aiming to work in a collision center, first as a technician and then an estimator.

She plans to also pursue her diesel engine repair certificate to start her own business.

The five BASF Techs for Tomorrow recipients, along with three young industry members sent by Operative Talent, at the 2024 SEMA Show. better; you just have to take hold of the opportunity,” she said. “I took hold and my future looks bigger and better each and every day.

The people I met, the experiences I had, and the builds I saw were so

Moody said her experience at SEMA was outstanding, both as a car enthusiast and an aspiring member of the collision repair industry. She said she learned a lot about new equipment and techniques.

“One thing that struck me the most is learning from everyone we met, [they] all began in the shop,” Moody said. “By building their network, gaining experience and applying for positions they know they will excel at, it shows that there are more opportunities than remaining in an auto body shop.”

Moody also advised all eligible students to apply for a Techs for Tomorrow scholarship. She credited her own instructor, Doug Irish, for pushing her to apply.

“I had the thought there were so many students out there, no way I would have been chosen,” Moody said.

“I was beyond the stars excited that I was picked, not only for the SEMA experience but also the scholarship.

Don’t hesitate, apply, and have a positive mindset. When you think it won’t happen to you, it will. BASF is an amazing organization and outstanding folks who represent them.”

Also joining the Techs for Tomorrow recipients were three young collision repair industry members who attended SEMA courtesy of Operative Talent: Jesse Simpkins, Austin Shepherd and Aliya Lentowicz.

Operative Talent is a collaboration between The Petty Family Foundation, Collision Repair Education Foundation (CREF) and several companies, including BASF, to inspire and direct

young people into the automotive industry.

Shepherd is a recent graduate of Appalachian State University in Boone, NC, where he earned a bachelor’s degree in industrial design with a concentration in product design. He is now working as a designer at KTL Restorations in Danville, VA, with a goal to “continue designing in the automotive industry and see where it takes me,” he told Autobody News.

“SEMA was an absolutely incredible experience,” Shepherd said.

Shepherd said a lunch with several custom car builders was among his favorite moments at the show.

“I had the privilege of meeting some truly talented people within the custom automotive industry, such as the Ring Brothers, Jonathan Goolsby, Tyler from Revision Rods & Rides, and many others. I also got the opportunity to meet Chip Foose, which was something I never thought would happen. It was truly amazing,” Shepherd said.

“My advice is to just reach out and build those connections. You never know where they will lead you,” Shepherd said. “I would not have been able to go to SEMA or do anything I’ve talked about if I did not reach out to people.”

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CIC: Study To Look At ADAS Trends; Students Share What They Want in a Shop

By John Yoswick Autobody News

AirPro Diagnostics announced it is launching a study into market trends related to ADAS diagnostics and calibrations.

“Recently, we’ve all been exposed to a significant amount of misinformation about diagnostics and ADAS services in our industry,” Michael Quinn of AirPro said in announcing the study at the Collision Industry Conference (CIC) in Las Vegas during SEMA week. “This has included solutions that allegedly simplify the processes, but do not account for the complexities of properly diagnosing and repairing a vehicle equipped with ADAS features.

Repairers are being told that critical steps — such as sequential, pre- or in-process scans — are unnecessary, or that automaker recommendations and software are irrelevant, so we are seeking to provide clarity. This type of misinformation jeopardizes both vehicle safety and the integrity of repair practices.”

Quinn said AirPro is seeking collaboration on this effort from all industry stakeholders, inviting anyone to email the company at study@airprodiag.com for more l CONTINUED FROM COVER

information or to join the effort.

Aaron Schulenburg of the Society of Collision Repair Specialists (SCRS) applauded the effort, saying the association continues to hear from more repairers about pressure they are seeing against “known, necessary tasks” related to ADAS diagnostics and calibrations.

employers.

All the students are attending the College of Lake County in Illinois, one of seven U.S. schools participating in the Collision Engineering Program, in which auto body repair students rotate every eight weeks between school and working in a shop.

A poll of the CIC audience at the start of the discussion found that What are Entry-Level Techs about 43% assumed opportunities Looking For? for growth and development would be the No. 1 thing that would attract students to a shop. About 27% said they thought it would be salary and benefits, about 21% said a positive team culture, and 9% thought work/life balance was the biggest draw for entry-level techs.

How did that mesh with what the students said?

Collision industry students came to Las Vegas to help “What entices me more the industry understand what they are looking for in is an employer that really future employers. Pictured, from left, are Juan Medoza, cares about continuing Salvado Garduna and Hector Gomez education, making sure their employees have their The CIC Talent Pool and Education certifications,” Hector Gomez said.

Committee brought together a panel “A shop that takes pride in what the of collision repair students at the shop produces, and making sure meeting in Las Vegas to share what everything is safe.” drew them to the industry and what He said he would be less they are looking for from potential interested in a shop that didn’t offer

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In response to complaints about policy cancellations and nonrenewals in hurricane-affected areas, Yaworsky reminded residents that such actions are prohibited until emergency orders expire in December. “FLOIR stands ready to take administrative action if necessary,” he said.

Yaworsky has overseen significant growth within FLOIR, bolstered by increased funding and staffing. The agency’s workforce now exceeds 300 full-time employees, including fraud investigators, compliance analysts and researchers, all working to enhance market regulation and consumer protections.

The aggressive enforcement measures reflect a marked shift in priorities compared to previous years, with penalties and restitution underscoring Yaworsky’s commitment to holding insurers accountable during disaster recovery.

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The conference aims to inspire attendees to refocus on their career paths and reignite their passion for the industry, while also providing a space for reflection and growth.

Early-bird rates of $600 for WIN members are available until March 1. Afterward, member rates increase to $700, and non-member tickets are $750.

WIN membership, which costs $95 annually, offers discounted registration rates.

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some flexible scheduling. “Just have family in mind,” he said. “If I don’t have any time with my family, then I’m not performing as well as I can.”

What Appeals, What Doesn’t Victor Yanez said a dirty or disorganized shop wouldn’t appeal to him, and he’s looking for an employer with a lot of patience. “Because obviously we are just starting out, so we don’t know much.”

Julio Silva agreed. “I would like to say a shop focused on growth and development,” he said. “Going into a body shop, I’ve had a great experience. It’s having a great mentor to teach you step-by-step. It takes time. You cannot be perfect in a week. I’ve been doing this for a year and a half, and compared to last year, I’ve learned a lot.”

Romiro Mireles said low pay would be a challenge for him. “We do need tools, and they’re not free,” Mireles said.

But Silva said he knows the money won’t be great to start. “With salary and benefits, I know later on it will come,” he said. “I’m not chasing the money. I’m more chasing my passion about cars. I want to become a great painter or a great bodyman. I know if I work hard, the money will follow.”

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l CONTINUED FROM COVER

Collaboration Important through proprietary research on outcomes that customers care about.

CCC worked with Magid Research, a prominent market research firm, to collect the data used in the study. Our goal was to examine the connected claims and repair journey.

How would you describe a ‘Moment of Truth?’

A moment of truth is a concept that comes from the service industry.

It’s a critical point in time during the customer journey that significantly impacts customer satisfaction and retention.

The outcomes we were studying were the satisfaction scores that consumers give their insurer or repairer after a claim. Typically, they will tell you everything is important, so you need to use statistics and regression analysis to learn what really drives that score.

Some of the moments studied included how consumers perceived communications, the empathy received, and the time it took to repair the vehicle.

What did the research reveal and what were the key takeaways?

Our research showed that during the claims experience, consumer satisfaction with insurers and repairers is closely linked and their collaboration plays a pivotal role in each other’s satisfaction scores.

For example, respondents were more satisfied with carriers when they perceived overall vehicle repair quality to be high; they were more satisfied with repairers when they received clear communications about how the claims process would work. This suggests that the entire post-accident journey from “crash to keys” is one unified experience in which the providers are, in some instances, indistinguishable from one another.

The top moment of truth for consumers going through the collision repair process was a detailed explanation of repair needs.

The top moment on the insurance side was clear communication about the claims process. Both of those speak to transparency.

What is truly impactful about this is the industry has long been focused on speed with repairers measuring themselves on cycle times. We found things have shifted.

If consumers felt they received a transparent and detailed explanation

of repair needs, that was the single biggest impact on the overall score that the consumer gave the repairer at the end of the journey.

The second impactful takeaway is that insurers’ actions help repairers score points. If an insurer clearly communicates about the claims process to the consumer and he or she has a satisfying first contact with the insurance company, those two moments of truth help the repairers score points on the repair satisfaction side.

We also found this to be true when we looked at insurer satisfaction.

When high-quality repairs were performed or a consumer was able to get a loaner vehicle from a repair facility, insurers scored points.

This suggests that the process is very intertwined and connected and consumers view the entire process as one experience.

These findings have implications for how insurers and repairers work together to put policyholders at the center of the experience.

teams measure their performance, helps predict customer retention.

We found that most of the moments of truth that helped carriers achieve a positive customer satisfaction score were relatively insignificant in helping to determine carrier defection.

Three moments were the most powerful predictors of switching behavior. In a total loss, the policyholder was upside down in their outstanding loan and was able to cover the gap, the presence of an injury in the accident, and being a first-time claim filer. When all three are present, there is greater than a 3x increase in the likelihood of the policyholder leaving the carrier.

When we presented the findings to the industry and our customers, we found they were surprised. As a technology company that connects 35,000 entities in this industry, we have a unique lens and perspective on what’s going on. We want to offer insight to benefit the industry and help our customers achieve better outcomes.

What was CCC’s reaction to the findings?

Certain findings were very revealing.

The research casts doubt on a long-held belief by insurance claims professionals that customer satisfaction, a metric by which claims

How can repairers and insurers use the findings to improve customer satisfaction and retention?

We suggest insurers and repairers work more seamlessly together and that, in doing so, they focus on

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transparency. The goal is to find how to provide transparency and speed to customers and utilize technology to achieve this.

On the insurers’ side, we found that repair satisfaction is really important to insurer satisfaction. The more an insurer can ensure a customer has a satisfying repair experience, the happier that customer will be and the higher their satisfaction rating will be.

Therefore, my top piece of advice for insurers is to work more closely with repair partners.

I also recommend repairers and insurers understand the three moments of truth that help predict when a customer is likely to defect.

Are there plans to conduct additional studies?

Yes, we’d like to delve further into the moments of truth that are causing technicians the greatest frustrations and potentially conduct future studies focused on the employee experience.

Is there anything additional you would like to share about the study?

If there was anything that I wanted to leave in the minds of a repairer, it would be how to inject transparency if the insurer is not communicating

clearly about the claims process.

I think the other moments in the study are also worth exploring.

For example, the No. 2 moment of truth was having a satisfying dropoff experience. Repairers need to determine how they want to serve customers and how that translates into the drop-off experience. Do they want to offer a waiting room and refreshments while an estimate is being prepared for the customer, or do they want to offer a loaner vehicle right away?

Overall, the study highlights the importance of interconnectedness and the shared responsibility of carriers and repairers in customers’ minds to get them back on the road, regardless of who is responsible. This underscores the need for a unified, customer-centric approach focusing on configurability, personalization and retention management.

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The vehicle was donated

by GEICO and restored by Joe Hudson’s Collision Center in Ocala, FL, through the National Auto Body Council (NABC) Recycled Rides program. The program unites businesses from the collision repair industry to repair and gift vehicles to individuals and families in need.

Since its inception in 2007, the initiative has provided over 3,300 vehicles valued at more than $47 million.

The recipient, Bobby Hermida, is a former participant in Zebra Youth’s housing program in Orlando, where he now serves as a board member. His life experiences and dedication to helping young people made him a compelling

candidate for this life-changing donation.

“A reliable vehicle will be lifechanging for Bobby, who has worked so hard to get where he is now,” said Zebra Youth Executive Director Heather Wilkie, who nominated Hermida.

The Subaru Forester was made road-ready with additional support from Auto Accessory Depot, LKQ, Subaru of Pembroke Pines, Auto Glass Plus, Advanced Remarketing Services, Cars for Charity, Copart and Enterprise.

Joe Hudson’s Collision Centers, operating across 18 states, has a strong track record of participation in the Recycled Rides program, contributing to similar donations in other locations.

With his new vehicle, Hermida can now reliably commute to his job mentoring youth in recovery, furthering his ability to give back to the community and serve as a role model for others facing challenges.

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NABC Recycled Rides Presents Vehicles To 11 Las Vegas-Area Recipients At 2024 SEMA Show

By Abby Andrews Autobody News

On a chilly, windswept morning Nov. 6 on the roof of the Renaissance Hotel parking garage in Las Vegas, NV, 11 local families’ lives were changed for the better by the gift of reliable transportation, thanks to the National Auto Body Council (NABC) Recycled Rides program.

The recipients, who included single parents, U.S. military veterans and a young adult who recently aged out of foster care, were recognized for their perseverance in the face of various hardships.

The presentation eased one burden they all had in common – having to rely on public transportation, rideshares or their own two feet to get to work, school, the grocery store and medical appointments.

Representatives of car donors GEICO, Allstate, Farmers, Travelers, USAA, Nationwide and Enterprise, and repair partners Caliber Collision, Crash Champions, Gerber Collision & Glass, Classic Collision, Fix Auto USA, Updated Auto Body, a member of Certified Collision Group, Car Crafters/Allard Collision, part of the OpenRoad Collision network, and Universal Motor Cars, a member of CSN Collision, were also on hand to see their hard work come together to improve others’ lives.

Also recognized during the event were Dave Adams, the “grandfather” of what is now the Recycled Rides program, and Henry Arroyo, owner of five Fix Auto stores in Southern California, who the night before had been announced the winner of the 2024 NABC Changing and Saving Lives Award.

Recipients Share Words of Gratitude Joy Hoover is a consultant for Foster Kinship, a Las Vegas-area nonprofit that helps children who can’t live with their parents live with other family instead. Hoover and her family recently suffered a house fire and are struggling with an older car with high mileage. She was presented with a 2021 Hyundai Tucson, donated by GEICO and repaired by Caliber Collision.

Trina Hope Beavers, nominated

by U.S. Vets, received a 2020 Hyundai Accent donated by GEICO and repaired by Crash Champions.

After she lost a job opportunity that required her to move to a new state, Beavers also lost her job, car and home. In Las Vegas, she worked hard to secure a job and permanent

housing, but then faced the heat as she walked or used public transportation to get to work and run errands.

“This is a very tremendous blessing,” Beavers said. “This is a great opportunity to get back up on my feet. This makes so many things in my life so much easier to do.”

Lauren Washington-Holston, a U.S. Air Force veteran, received a 2021 Kia Sportage, donated by GEICO and repaired by Classic

car will further improve her family’s stability.

Parnell’s long-term goal is to start a transportation service for special needs children, inspired by her own experiences caring for her son, who has autism, and the support from Family Promise, which nominated her for the donation.

“I just want to say thank you,” Parnell said. “This will really help our family continue to strive to do our best.”

All 11 cars were revealed at the same time after the recipients, nominating nonprofits, car donors and repairers were recognized.

Collision. Washington-Holston faced challenges after the pandemic, including the loss of her job and military benefits, a battle with addiction and depression, and a painful divorce, but she worked with Veterans Services and U.S. Vets to overcome them. With support from her children, Washington-Holston has stayed clean and sober, brought her family together, and created a stable environment. The donated car will provide access to better job opportunities, allow her children to participate in activities, and let her continue counseling and support meetings.

Washington-Holston said it has been a blessing to face the struggles she has, as it has allowed her to take part in the cycle of accepting help from others and then paying it forward to others in need. “I can use this car to do that,” she said Jasmin Parnell and her family received a 2023 Toyota RAV4, donated by Allstate and repaired

by Classic Collision. The family of four was homeless after a flood ruined their previous home. After moving multiple times, Parnell was able to get a job with a major health care company, relieving the stress on her family caused by the unstable housing situation, but her car was inoperable. The donated

14 JANUARY 2025 AUTOBODY NEWS / autobodynews.com

Lukas Guden, a single father to a 4-year-old daughter, received a 2019 Nissan Rogue, donated

by Allstate and repaired by Crash Champions. Guden once faced homelessness, unemployment and losing custody of his daughter.

However, with dedication, focus and the help of Hopelink of Southern Nevada, he has a second chance to become self-sufficient by achieving employment and maintaining financial and housing stability.

The donation will reduce his transportation costs and improve his ability to visit his son, be more present for his daughter’s school activities, and manage daily errands.

“This is awesome,” Guden said.

“It’s going to help a lot.”

Serenity Rush-Khan was presented a 2019 Honda Accord, donated by Travelers Insurance and repaired by Gerber Collision & Glass. Rush-Khan, a young adult who recently aged out of foster care without support, remained positive and used grit and determination to graduate from high school, find a job, get a driver license and secure housing.

She currently spends hours using public transportation to get to work, school and to visit her nine siblings. The car allows her a sense of freedom and a fresh start.

“This is a big step for me,” said

Rush-Khan, who was accepting the keys to her first vehicle ever.

“A whole new chapter of my life is starting now.”

Dennis Moustakas and his family were given a 2020 Mazda CX9, donated by Farmers and repaired

by Car Crafters/Allard CollisionMcKellips, part of the OpenRoad Collision network. Moustakas, a seafood clerk at a local grocery store, and his wife, Melanie, have five children. When the family fell on hard times, they were without a home or a car. They came to Hopelink of Southern Nevada for support.

Transportation challenges have impacted the whole family’s daily lives, as they currently walk everywhere in the Las Vegas heat.

The new SUV will enable the family to spend quality time together and attend medical appointments and visit family, and the children will benefit from safer, shorter commutes to school.

“This is a true blessing,” Moustakas said. “We are very honored. Thank you so much.”

Carlotta Phillips received a 2019 Nissan Sentra, donated

by Nationwide and repaired by Universal Motor Cars. For 12 years, Phillips, a single mother of two, has balanced 12-hour night shifts at the VA hospital with raising her children and co-parenting with her ex-husband, also a member of the nonprofit Forgotten Not Gone. She was already busy when her vehicle became unreliable.

Constant repairs strained her finances and caused stress, as she worried about her car failing at critical times. The new car will provide peace of mind, ease the financial burden and allow Phillips to focus on her family and supporting veterans.

“Today I stand in a moment of answered prayers,” Phillips said. “I felt forgotten, but somebody saw me. I am truly grateful.”

Alex Bernal, aka “Pops,” was presented with a 2019 Ford Edge, donated by Nationwide and repaired

by Universal Motor. Bernal is a true community advocate, opening his heart and home to foster children, particularly those who have been turned away elsewhere, sitting on boards for several organizations and volunteering with nonprofits. As a father figure, mentor and big brother, he guides young men towards becoming productive community members, according to A Whole l CONTINUED ON PAGE 16

MSO Symposium Looks At Economic Forecast, Discussion of Customer Satisfaction

By John Yoswick Autobody News

The MSO Symposium, an annual one-day conference created by and for multi-shop owners and operators, was among the events kicking off SEMA week in Las Vegas in early November. About 400 people attended the event, the most in its 13year history.

With consolidation continuing in the industry, David Roberts of Focus Advisors provided a market update, saying he sees no decline in private equity firm’s involvement in the industry.

“It’s clear there is really continued strong interest from private equity firms,” Roberts said. “There’s going to be money to help you grow or to exit when you feel it’s time. We don’t see any slowdown in this.”

In a presentation titled, “Where the Economy is Headed in 2025 and Beyond,” Nasdaq chief economist Phil Mackintosh said the U.S. is in what he called a “Goldilocks” economy.

“We’re not too hot, we’re not too cold,” he said, noting that inflation is essentially back to the Federal Reserve target level, and the unemployment rate is “close to multi-

decade lows.”

“Most of the developed economies in the world have avoided recession but kind of ‘just’ avoided,” Mackintosh said. “They’re not growing that strongly. The U.S. is a little bit of an exception. It’s growing much stronger than most of the other markets. So we’re doing really well.

“But the reality is there’s not too much heat in the global economy anymore. So it makes total sense that interest rates are coming down from the highs that they got to as

Nasdaq chief economist Phil Mackintosh kicked off the “MSO Symposium” with a generally positive outlook on the economic outlook heading into 2025

central banks started to tackle the inflation problem. I could argue that maybe the U.S. should have followed

Canada’s lead and started a bit earlier and gone a bit further by now,” he said, adding he thinks the current 5% interest rates should be closer to 3% “sooner rather than later.”

The Fed cut rates by a quarterpoint three days after Mackintosh spoke.

He shared data showing that wage increases have outpaced inflation at all income levels by 3.3% or more.

“I know it’s hard to believe because people seem to think inflation has been much higher than wage growth,” he said. “But across the board, wages gone up more than inflation.”

He said the recent uptick in unemployment is different from the past in that it’s not being caused by layoffs.

“We are pretty close to 20-year lows in terms of layoffs,” he said. “So what’s interesting is what is causing the uptick in unemployment is prime age workers coming back into the workforce. There’s a lot more people looking for work. It’s totally different from a consumption perspective because when they get a job, they’ll start spending, rather than it being people losing their job and stopping spending. So that’s really kind of good news that the unemployment rates are coming up because people

want jobs, not the opposite. Good news for companies, too, because it takes a bit of pressure off wages.”

At one point during the “Great Resignation,” there were two advertised job openings in the U.S. for every person looking for work.

“That’s now come back down pretty close to one-to-one,” Mackintosh said. “So for a company thinking about labor shortages, things look a lot better now than they did two years ago, three years ago. So again, not too hot, not too cold, right?”

Impact of Election Outcome Speaking the day before the U.S. presidential election, Mackintosh was asked what effect the outcome might have on the economy next year. He shared a chart showing data back to the Nixon administration, with periods of growth and recession during both Democratic and Republican presidencies.

“So I have some good news: The reality it, it doesn’t really matter in terms of the stock market who wins,” he said. “For anyone who’s got an investment portfolio, it doesn’t matter who wins.”

Beyond that, he said, either candidate is likely “to increase the deficit and that could keep interest l CONTINUED ON PAGE 17

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l CONTINUED FROM PAGE 14

NABC Recycled Rides Lotta Kindness, the nonprofit that nominated Bernal for the donation.

However, without reliable transportation, Bernal has to borrow cars from friends and family to get around. Having his own transportation will enable him to continue his invaluable work with foster kids, inner city youth and more.

“I’m really good at helping people but I suck at receiving it,” Bernal said. “I had to learn to ask for help.

“Having this vehicle takes some stress off me,” he said. “Everyone who touched that vehicle – may you also be blessed.”

Leslie Jeanos received a 2022 Chevrolet Malibu, donated by Enterprise and repaired by Fix Auto Las Vegas Spring Mountain. Jeanos, nominated by Speedway Children’s Charities, and her family have been giving back to their community as much as possible. Jeanos and her husband took guardianship for their grandchildren after their daughter passed away. They have also been foster parents for eight years. They are now caring for seven children, and one vehicle cannot

accommodate all nine people. The addition of the new car will allow them to go places as a family.

“I want to be able to get my family safely to where they all need to be so we can all go together as a family,” Jeanos said.

The final presentation of the day was to Timothy White, who received a 2022 Chevrolet Malibu, donated by USAA and repaired

by Updated Auto Body, part of the Certified Collision Group. White is a U.S. Army veteran, serving from June 1987 to June 1989, who was awarded the Army Good Conduct Medal and a grenade Expert badge.

He is now a customer specialist for a lending company, but he faced a challenging period when his previous car broke down after he lost his previous job, which led to a precarious living situation. However, White was able to secure temporary housing and enroll in the U.S. Vets Workforce Program. He then secured remote work, providing a steady income despite his mobility limitations. Now, with the new vehicle, he can look forward to more job opportunities and greater commuting flexibility.

“I thank God,” White said. “I was always a believer, but recently I’ve had a few true miracles.”

Bob Mills Mitsubishi Adds Mighty Auto Parts Franchise Bob Mills Mitsubishi announced a new venture with Mighty Auto Parts, a network of franchised distributors, to further solidify its reputation as a leader in the automotive industry in its region.

Mighty Auto Parts of Coastal Carolina will bring the trusted Mighty Auto Parts franchise to the coastal NC territory.

Bob Mills Mitsubishi, founded in 1993 by Jacksonville, NC, native Bob Mills, is a family-owned and operated dealership, operating two Mitsubishi dealerships in Jacksonville and Myrtle Beach, SC. The addition of the Mighty franchise allows Bob Mills Mitsubishi to supply highquality automotive parts across its service territories, enhancing customer satisfaction and operational efficiency.

The partnership is Mighty Auto Parts’ 26th franchise integrated with a multi-location dealership group.

The management team for Mighty Auto Parts of Coastal Carolina includes Robert Mills Jr. as president, Robert Mills as vice president, Brittany Mills as treasurer, and Brooke Swart as secretary.

Bryon Masterson, service and parts director at Bob Mills Mitsubishi, will serve as the general manager for Mighty Auto Parts of Coastal Carolina.

“The Mighty franchise operations team is the best,” Masterson said.

“Carmen and her team take care of everything. They have a handson approach, which makes implementing our operations plan efficiently and effectively.

They truly care about our success as a Mighty franchisee.

“By adding the Mighty franchise, we supply quality products to the entire coastal NC territory,” Masterson added. “Our Mighty service and inventory management strategies give us a distinct advantage in our marketplace.”

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Cindy Reeves Joins CIF Board of Trustees

MSO Symposium

The Collision Industry Foundation (CIF) announced the election of Cindy Reeves, vice president of the Replacement & Leisure Division at Enterprise Mobility, to the CIF Board of Trustees.

CIF provides emergency relief by securing and distributing donations to collision repair professionals who have experienced significant losses due to natural disasters or other catastrophic events.

Reeves has a long history of philanthropic involvement, including volunteering for Cochlear Americas for the past 15 years and serving on several DEI (diversity, equity and inclusion) committees at Enterprise Mobility.

CIF is looking forward to Reeves’ participation in advancing CIF’s efforts, including its Annual Donor program, which was designed to provide consistent financial resources for the CIF Disaster Relief Fund.

rates higher for longer, so that’s not great.”

Trump’s proposed tariffs will likely raise prices, he said.

“I guess the expectation is everyone’s taxes will go down at the same time, so incomes go up again, but that’s inflationary,” Mackintosh

“So if there’s anything that you take away from this today, there is a real opportunity to ensure that transparency and the efficiency of supplement review and supplement approvals.”

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CCC INTELLIGENT SOLUTIONS

said. “So I think if there was an inflation risk on either side, it would be Trump winning. But then Harris wants to increase corporate taxes, and I’m guessing none of you guys want that either, right? So is that a good diplomatic answer?”

Key Moments Impacting Customer Satisfaction

CCC Intelligent Solutions generally Krumlauf noted the one element offers a look at the latest industry of this are supplements. On claims data at the MSO Symposium, and this that included a supplement, he said, year was no exception, with CCC’s the average number of supplements Kyle Krumlauf providing context to per claim has risen from about 1.7 as industry stats and trends his company recently as mid-2021 to 2.1 this year. is seeing.

The average dollar amount of those Krumlauf highlighted a couple supplements has risen from about key points from a recent CCC study $1,001 in early 2020 to $1,574 this into the “moments of truth” in the year. claims and repair process, the focal “Of course carriers want to be very, points that have the most impact on very careful in reviewing those and customer satisfaction. being sure that they’re approving “The top driver is transparent, what is necessary,” Krumlauf said. detailed explanation of repair needs,” “But CRASH Network in their quarterly Krumlauf said. “One thing I would call surveys consistently report that one of out here is having a good translator the major causes for backlog is carrier -- or being a good translator — on responsiveness on [supplement] the repair side when you’re talking approvals. So if there’s anything that to a customer and helping them you take away from this today, there understand. They may not be familiar is a real opportunity to ensure that with the technologies in a vehicle, what transparency and the efficiency of it requires to do the repair. Making supplement review and supplement sure that someone is able to speak a approvals.” language that they can understand.

He said he’s watching corporate That seems to be the No. 1 driver in return-to-office policies as that, too, satisfaction with consumers.” affects the industry because of when He said customers want “consistent and how much people are driving. frequency of contact with a shop “Amazon changed their policy and throughout the process,” and “they starting in January, they are requiring expect a timeline and the work to everyone to return to office full time,” be done within that timeline.” In fact, Krumlauf said. “In my mind, there the length of time to get the vehicle could be a domino effect, with other Se Habla Espanol repaired and back can have the major corporations. You could see a lot biggest negative impact on customer more people driving during rush hour, satisfaction.

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Negotiate With Insurance Carriers Using Facts and Emotional Awareness

By Abby Andrews Autobody News

Mike Anderson and Sheryl Driggers of Collision Advice spoke at the 2024 SEMA Show to teach collision repairers how to negotiate with insurance carriers to get paid for everything they do to return a vehicle to pre-accident condition — with a few updates.

Driggers was recently a contributing author on “Influence and Impact,” written by Chris Voss, a former FBI investigator. The book, which “redefines persuasion in modern business, emphasizing empathy as a cornerstone of success,” can be applied to the business of collision repair.

Negotiating Based on Facts Before reviewing how emotions can affect negotiations, Anderson — who said he had to learn how to negotiate when he owned multiple shops in the Alexandria, VA, area, where real estate costs were high, so he could pay his bills — talked about fact-based approaches.

“Negotiations are a discussion aimed at reaching an agreement — not a fight or an argument,” he said.

Get the Customer On Your Side “The No. 1 thing that you can do to help you to be more successful negotiations is to get the vehicle owner on your side,” he said.

That can be useful when negotiating with an insurance appraiser. “If I can get the vehicle owner to believe that I’m competent, then they’re going to trust me when it comes to taking my side or the appraiser’s side,” Anderson said.

Anderson quoted Ryan Taylor of BodyShop Booster: “People are more afraid of making a wrong decision than they are of spending money.”

For collision repairers, that means they have to convince vehicle owners the recommended repair procedures an insurance company may be refusing to pay for are, in fact, necessary.

“The No. 1 way to do that is to review the vehicle owner’s manual with the customer when they walk into your facility,” Anderson said.

Anderson said he shows customers what their owner’s manual says about OEM vs. non-OEM parts and ADAS recalibrations.

“Every single owner’s manual will say you must inspect the seat belt [after a collision], because not inspecting it could result in injury or even death. I’m establishing with them that I’m the expert,” Anderson said. “Now, when I ask the insurance carrier to pay to inspect the seat belt and the carrier says no, I’ve already set myself up for success with the vehicle owner.”

Then Anderson can tell the vehicle owner to reach out to the insurance carrier and tell them they want the seat belts inspected.

Also, shops not in a DRP with an insurer can tell the customer to call the insurer, to encourage them to expedite supplement reviews.

“I will do this every single day,” Anderson said. “Not a text, not an email. I will use my phone to call every single day, because after about the third call, now the customer’s gonna get involved.”

objection. That gives me the opportunity to make them believe it is required,” he said, by showing documentation like an OEM repair procedure, resources from scrs.com or degweb.org, or various material manufacturers’ bulletins.

Once they agree it is required, ask if it is included in any other labor time.

If they say it is, now the repairer can prove it’s not.

If the appraiser says it’s not included, go to your estimating system to see if there is a pre-determined labor time, because that’s what should be paid.

Mike Anderson, standing left, and Sheryl Driggers, standing right, present during the 2024 SEMA Show.

Whether the insurance company approves the supplement or the customer decides to pay the difference themselves, it’s better than the vehicle waiting for weeks in the shop.

The Rules of Negotiation Anderson said there are four rules of negotiation: 1. Your opinion don’t mean jack.

The only thing that matters is what you can prove, substantiate or justify. “Every time you write a repair plan, ask yourself, if you had to stand before a jury of your peers, will they think I’m overcharging, or will they understand why I need to do what I say I need to do?”

Anderson said.

2. Don’t take the bait.

Anderson said insurance appraisers are trained to tell repairers they are the only ones charging for certain procedures. “That is a negotiation tactic that is entirely made to distract you,” he said.

3. Stick to the facts.

There are four questions to ask when an insurer refuses to pay for a procedure: Is it required? Is it included? Is there a pre-determined time? If not, what is it worth?

4. Prove it.

Repairers should ask the appraiser if they believe the procedure is required to restore the vehicle back to pre-accident condition.

“When I get a ‘no,’ I’m uncovering the

18 JANUARY 2025 AUTOBODY NEWS / autobodynews.com

If there is not a time, the final question is how much the procedure

is worth in labor. The degweb.org site also comes in handy here, as repairers can submit inquiries to have missing procedures added to estimating systems, or have labor times adjusted.

Anderson said he once paid a professional videographer to record his shop’s techs performing certain tasks — from prep to clean up — to show insurance appraisers exactly how long each procedure takes.

“Do you want easy, or do you want worth it?” he said.

Always close a negotiation request by stating the negative consequences if the repair procedure is not performed, Anderson said. For example: “If I do not inspect the seat belt, it may not deploy in a future accident, and somebody could die.”

“When you ask without drawing attention to the negative consequences, you’re asking versus telling,” he said.

Anderson said often, repairers use the insurance company’s refusal to pay as an excuse for their own lack of knowledge.

“The real reason [they don’t pay] is we couldn’t explain [why it was necessary],” Anderson said. “No doesn’t mean no. No means they don’t know enough to say yes.”

Anderson said the collision repair l CONTINUED ON PAGE 26

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Please contact these dealers for your Honda or Acura Genuine parts needs.

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Dept. Hours: M-F 8-6 robert.thompson@carlockcars.com

Dept. Hours: M-Fri 7-6; Sat 7-5; gerardbruno@hendrickauto.com

Holler Honda

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AutoNation Honda Clearwater Clearwater

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Rick Case Honda

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Marietta

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Flow Acura

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GM’s New Collision Assistance App Contacts Driver At Accident Scene, Helps Them Choose Repair Shop

By John Yoswick Autobody News

When the number of automakers offering collision shop certification programs began to grow more than a decade ago, shops foresaw automakers playing a much larger role in a driver’s decision where to have their vehicle repaired after a crash. After all, automakers had access to vehicle telematics data that could detect a collision and enable the automaker to contact the driver ahead of that customer even contacting their insurance company.

“We help guide [the driver] to the Certified Repair Network facilities that we have in our program to choose from.”

— JOHN ECK

GENERAL MOTORS

That’s been happening on a limited basis with some automakers, but it took a big step forward in recent weeks. A new General Motors mobile app can now contact drivers after an accident to assist them at the scene and help guide them to a GM-certified collision repair facility.

Launched in October but announced just this month during the 2024 SEMA Show, the GM Collision Assistance app differs from OnStar, which will still contact subscribers through the vehicle immediately after a crash is detected. The new app sends a pop-up notification to the driver’s phone about 10 minutes later.

“We don’t want to interrupt what’s already going on with OnStar,” John Eck, who leads the GM Collison Assistance program, said during the second session of the Society of Collision Repair Specialists’ (SCRS) OEM Collision Repair Technology Summit in Las Vegas.

The app can then guide the customer through the process of documenting what occurred and obtaining the other driver’s information.

“And then we help guide [the driver] to the Certified Repair Network facilities that we have in our program to choose from,” Eck said, noting he’d met shop owners at SEMA who had already received customer referrals through the app.

“We actually put a note in there

saying, ‘Hey, it’s your choice of where you go to get your vehicle repaired.’ But we identify the certified network. And then we also provide the customer with the opportunity to download a report or all the information that they’ve collected at the scene to use as they see fit.”

Limited Use of the Data While the app, which is branded differently for each GM line of vehicles, receives vehicle telematics data that indicated an accident occurred, that’s as far as that data goes, Eck said, clearly cognizant of the lawsuits filed earlier this year related to GM’s collection and sale of vehicle telematics data.

“I want to make it very clear: General Motors is not doing anything internally with this data,” Eck said. “I only see aggregate numbers, the total number of events. But I don’t see any customer data. Nobody does. Nobody gets to use it for any purpose. It’s not sold, it’s not utilized for any other purpose. The customer would have to download the report themselves [through the app] as a PDF and then they could email it off to their insurance company.”

Eck said because GM will know how many customers are choosing a certified shop through the app, that information can help those shops see their return on investment from the GM certification program.

“Our purpose is to guide them to a repair professional that’s in our network for a safe and proper repair,” Eck said, “but also to be there in the moment that…if your car is totaled, how do we help you get into your next vehicle?”

He said earlier in November he received a photo of a wrecked vehicle from a GM executive, whose daughter had been driving when the accident occurred. No one was injured, but the executive wanted Eck to know he had been contacted at the time of his daughter’s accident —the app notifies the vehicle owner -- and he wanted Eck to know “your product works.”

“He was grateful that we were there to help,” Eck said.

Accident Detection Could Be Used by Others But insurers are using vehicle telematics to track driver’s behavior if they’ve signed up for usagebased insurance, so it may be more than just automakers reaching

22 JANUARY 2025 AUTOBODY NEWS / autobodynews.com

drivers at the accident scene.

During the same session in which GM announced its new app, Ryan McMahon of Cambridge Mobile Telematics said his company’s vehicle telematics system — running through an app on the driver’s cellphone, which much of the insurance industry already uses — also can detect crashes and help start the claims and repair processes.

Ryan McMahon of Cambridge Mobile Telematics said insurers are increasingly benefiting from crash detection by improving the claims process from the start, but other companies could benefit from the information as well

“Because data is available, we are moving into a world where you can be proactive versus reactive,”

McMahon said. “For the insurance company, it means a significant savings. The insurers are going to continue to push in this direction because for them, time is money, whether that’s in storage costs or rental costs.”

In addition to reducing those direct costs, McMahon said, capturing vehicle telematics data to help with the claims process can also reduce indirect costs, by reducing the number of adjusters needed, for example.

But McMahon said it isn’t just insurance companies that can benefit from crash detection.

“This crash assistance process and environment is really opening up the doors to providing relationships with customers that otherwise wouldn’t be there, whether that’s from an insurance company, from an automaker, from another trusted brand,” McMahon said. “So why couldn’t this happen from SCRS? Why couldn’t this happen from a body shop themselves? It just has happened that the insurance industry got this started, but it doesn’t necessarily have to stay there, because this technology is really democratizing the information.”

Warren Henry Auto Group Expands With Acquisition of Kia of Key West Warren Henry Auto Group (WHAG) has acquired Kia of Key West. With this latest addition, WHAG’s rapidly growing network now features 11 locations across Florida.

“The acquisition of Kia of Key West aligns with our commitment to growth and our promise to bring unparalleled service and vehicle selection to the Florida Keys,” said Erik Day, CFO and partner of Warren Henry Auto Group. He emphasized the group’s intention to introduce its “customer-first” approach to new markets, ensuring clients receive the highest standard of care.

Kia of Key West will continue to operate at its current address on 2826 N Roosevelt Blvd., seamlessly integrating into the Keys Auto Center. This center represents 15 automotive brands.

“This expansion allows us to offer even more variety and

convenience to our customers, ensuring they have access to the best selection of vehicles and top-notch service right here in the heart of the Florida Keys,” said Lee Holt, general manager of Keys Auto Center.

Warren Henry Auto Group has been a dominant force in the automotive industry since its establishment in 1976. Known for its extensive array of luxury and premium brands, WHAG remains a privately-owned, familyoperated entity, committed to excellence in customer service and community engagement.

In addition to providing exceptional service, WHAG is lauded for its workplace environment and philanthropic efforts, often recognized by industry accolades such as the Automotive News Best Dealership to Work for and the J.D. Power Dealer of Excellence awards.

NHTSA Updates 5-Star Safety Ratings To Highlight Pedestrian Protection, Advanced Tech The National Highway Traffic Safety Administration (NHTSA) has finalized significant updates to its 5-Star Safety Ratings program, known as the New Car Assessment Program (NCAP), introducing advanced technologies and safety standards aimed at reducing road fatalities.

“These changes to the 5-Star Safety Ratings will speed up adoption of technologies that reduce the frequency and severity of crashes while helping consumers make informed decisions about buying a new car,” said U.S. Transportation Secretary Pete Buttigieg in a statement.

Key updates to the program include the addition of pedestrianfocused crashworthiness evaluations and four new advanced driver assistance technologies (ADAS), such as pedestrian automatic emergency braking and lane-keeping assist. Existing ADAS features, like automatic emergency braking, will also undergo enhanced testing to meet strengthened performance criteria.

A new pedestrian protection

component evaluates the ability of a vehicle’s front end to reduce injuries and fatalities in vehicleto-pedestrian collisions, part of a growing emphasis on protecting road users outside of vehicles to address increasing pedestrian fatalities.

“Our goal with NHTSA’s 5-Star Safety Ratings program has always been to help consumers choose safer vehicles and to encourage manufacturers to improve vehicle safety,” said NHTSA Chief Counsel Adam Raviv. “With these NCAP updates, we’re ensuring consumers have more useful and relevant information on the latest safety technologies.”

The revisions also include mid- and long-term plans to integrate future innovations in vehicle safety, particularly in crash avoidance and crashworthiness for bicyclists and motorcyclists, alongside an updated rating system. These changes are part of the Department’s National Roadway Safety Strategy to achieve zero road fatalities.

CFCC Fundraiser Raises $113,500 For Automotive Student Support Cape Fear Community College (CFCC) in Wilmington, NC, raised $113,500 to support students in the automotive system technology, automotive customizing technology and collision repair and refinishing programs. The funds will provide essential tools, equipment and scholarships to help students excel in the automotive industry.

The fundraising event, held Nov. 14, gathered community members, industry leaders and automotive enthusiasts who rallied together to empower the next generation of skilled professionals.

“We are grateful for the generosity of our community,” said CFCC President Jim Morton.

“The incredible support demonstrates our region’s value in developing a skilled workforce and the importance of helping students achieve their career goals. These funds will impact the lives of our students and

the industries they serve.”

Tim Milam, CEO of Coldwell Banker Sea Coast Advantage, and his wife, Vicki, were among the donors who made a contribution to the cause. Milam praised CFCC’s automotive programs and their dedicated instructors.

“CFCC’s automotive programs are phenomenal, and their instructors go above and beyond,” said Milam. “It’s an honor for my wife and me to contribute to helping students grow in the community. I encourage people who don’t know what’s happening at Cape Fear Community College to contact the foundation and find out. They’re doing incredible work.”

CFCC’s automotive programs offer hands-on training in advanced vehicle systems, customization techniques, and collision repair, preparing students for careers in the rapidly evolving automotive industry.

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SEMA Show Attendees Talk About What They Gained To Address Their Shops’ Biggest Challenges

By Abby Andrews Autobody News

The 2024 SEMA Show drew more than 2,400 exhibitors and tens of thousands of attendees, many of whom work in the collision repair industry.

Autobody News spoke to several shop owners and employees throughout the week to get their thoughts on the state of their business and why a trip to the SEMA Show was worth their time, whether it was their first or 20th.

Building Body Shop Staff Brad Kickert is the shop manager at Auto Palace in South Holland, IL. A first-time attendee, Kickert said he came to the SEMA Show to learn about new technology and materials being used in auto production.

“We wanted to make sure we’re staying on top of the game,” Kickert said.

Staffing is the biggest issue at Auto Palace, he said.

“It’s very hard to find a qualified individual,” Kickert said. “A lot of our employees now are getting up there in age, and getting young employees is proving difficult. We’ve been lucky so

far, but that’s our biggest thing that we struggle with.”

Kickert had just attended Mike Anderson’s presentation on negotiating with insurance companies, part of the Society of Collision Repair Specialists’ Repairer Driven Education series.

“I learned how to communicate to attain what you need to give customers that come into my shop the proper repair,” he said. “Our customers are very loyal.”

Kicker said his business doesn’t do a lot of custom work, but he was excited to see the builds other people brought to the show.

Dan Biggs

“The level of professionalism and fabrication is amazing, just seeing what people can accomplish with their hands,” he said.

Decreasing Cycle Time Doug Bowman has owned Superior Auto Body in Ranson, WV, for 35 years. He has been attending the SEMA Show for 20 years.

Three estimators from his shop, and his daughter and shop manager, Marissa Bowman, also came to the show.

“I wanted everyone to see it, what goes on and to get some education,” Doug said.

Efficiency and cycle time are the biggest issues at Superior Auto Body.

“There’s a lot of delays that can occur,” Marissa said. “We are trying to avoid them and make everything move as efficiently as possible.”

The Bowmans had also just listened to Anderson’s presentation on negotiations, and they planned to attend more classes to learn how to improve customer experience, to “help customers understand the process, why it takes so long, and everything that goes into repairing your vehicle back to the way it should be,” Marissa said.

“There’s always something new [at SEMA],” Doug said. “That’s why we come every year, just to try to stay ahead of the curve.”

Improving Insurance-Shop Relations Dan Biggs, owner of Rick’s Auto Body Shop, which has two locations in South Bend and Mishawaka, IN, was attending his fourth SEMA Show.

Biggs said he took over the business from his father, who brought him to SEMA. Biggs now has five children who have joined the business, all of whom came to SEMA with him this year.

Ryan Timmons

“This is the future,” Biggs said of SEMA. “I hope [my children] get out of this what they can. This is where the future comes to get the best ideas they can to rise to the better level.”

His daughter, Marina Biggs, a detailer, was attending her first SEMA Show.

“I came because my dad invited me and I thought it’d be a cool experience

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to see what it’s all about,” she said.

Dan said the biggest issue at his shops, which do not participate in DRPs, is relationships with insurers.

“It’s at an all-time low,” he said. “They just decided they don’t want to pay for things they’ve paid for for 20 years.

It’s a constant argument. We have the best proof, all the data they need, but they went down the road to not pay for things now.”

Dan said he believes in the power of networking, and SEMA is a great place to do it. He attended the Collision Industry Conference on Nov. 5 to connect with other industry leaders, to find out what they’re seeing.

“It’s pretty uniform what we’re all going through,” Dan said. “I believe in the power of relationships, and it’s here.”

Dan said custom cars aren’t his thing, but he likes to come to Las Vegas and the SEMA Show because it brings back memories of his dad, who has passed, and makes new memories with his children.

“The biggest thing is having my kids with me; that’s the thing I treasure the most,” he said.

Marina, a movie buff, said the coolest thing she had seen so far was DeloreanRental.com’s Delorean Time Machine, a recreation of the car featured in “Back to the Future.”

Training Techs for the Future Gerald Rosenbarker, general

manager of Mohawk Collision Center in Schenectady, NY, said he tries to come to SEMA every other year. This was his seventh or eighth time at the show Mohawk has 20 OEM certifications, so Rosenbarker comes to SEMA to make deals on new equipment, which the shop upgrades constantly.

Rosenbarker said he also enjoys the educational opportunities. He had just attended an SCRS RDE class on AI tools that can enhance customer service.

“These [classes] get you started, get you an idea of what you’re looking to do,” he said. “Then you can deep dive into it later, look other avenues to help you grow your collision business.”

He said his shop is looking to grow its staff for long-term success, and training is key to reaching that goal.

“We have grown quickly over the last few years,” Rosenbarker said.

“Developing them, training them, bringing them here and seeing what other learning opportunities there are after SEMA is a great option for us to grow our staff into the technicians we need for the future.”

Rosenbarker said he’s “not that much of a car guy,” but he always enjoys the technological innovations on display at SEMA. “Anyone in this industry needs to come out here, if you haven’t been,” he

said. “I think people often think of it as a car show, but it’s so much more.”

Streamlining Operations Nicolas Quiambao, an estimator at Oka’s Auto Body in Waipahu, HI, said the company is planning on expanding. He was sent to SEMA for the first time to learn more about the industry and specifically look for a system or company that can help Oka’s streamline operations.

“Admin work is heavy and being able to bring in more customers, be more efficient, will help us grow,” Quiambao said.

He was looking for an all-inclusive system or company to help speed up processes like making first contact with customers, keeping them updated throughout the repair process, accounting and ordering and receiving parts.

“There are a lot of really nice cars and trucks to see out here, but what gets me excited is seeing all the tools and systems that are being created to help companies become more efficient and effective,” Quiambao said.

Attracting More Customers Ryan Timmons, owner of Ryan’s Rod Service in Florence, CO, was at his 15th SEMA Show. He said he comes to SEMA every year to make more connections.

Timmons said his shop, which does

not do insurance work, has run into a “slight slowdown” in jobs and a problem getting some customers to pay.

“It’s been minimal,” he said. “We’re surviving and making it happen.”

This year, Timmons said, he was also at SEMA to look for new equipment and vendors to appeal to more potential customers.

He said the coolest thing he saw was the Golden Sahara II in Goodyear’s booth. The custom car was built in 1954

by George Barris using a wrecked 1953 Lincoln Capri. Barris equipped it with voice commands, sensorbased automatic emergency braking, futuristic styling and other amenities like a built-in TV and refrigerator.

Expanding Business By Upgrading Technology Tracy Kroon, owner of Krown Restoration LTD, in Wilsall, MT, was at his first SEMA Show.

“We have a major project we’re working on that requires newer technology, and we thought this was the perfect place to come to view it,” Kroon said.

Finding qualified staff is Krown Restoration’s biggest challenge, Kroon said.

He had a tough time picking his favorite part of the show. “We’re just kind of overwhelmed with the whole thing,” Kroon said.

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l CONTINUED FROM PAGE 18

Negotiate With industry needs to stop conditioning estimate writers to expect insurers to refuse to pay for procedures.

“Never underestimate the power of 0.1 [labor hours], because when you get them to pay for 0.1, six months later that becomes three tenths, then five tenths or an hour,” Anderson said.

How Emotions Affect Negotiations Driggers said emotions absolutely impact negotiations — negative feelings can hurt the process — but research has shown there is no way to completely remove them.

When it’s clear an insurance adjuster, customer or employee is having a bad day, the best thing to do is to acknowledge it.

“It’s addressing the elephant in the room,” Anderson said. “Labeling is giving a voice to the other side’s feelings.”

Driggers said to do so, avoid firstperson statements, like “what I’m hearing” and “what I think,” because it makes it sound like your opinion is more important. Instead, use phrases like “it sounds like,” “it feels like” or “it looks like.”

“When I say, ‘It sounds like you’re upset with me,’ I’m addressing their negative energy but in a respectful,

polite way,” Anderson said.

Labeling the negative is also useful when asking for an insurer to pay for a new line item.

For instance, instead of saying, “I know you’re going to think I’m overcharging,” say, “I’m sure this is higher than what you’re accustomed to seeing.”

Use the Pause Anderson said insurance companies use “the pause” – or dynamic silence — on estimators all the time.

“When you ask for labor time on an estimate line and the insurance appraiser doesn’t say anything, it causes the estimator to second guess themselves and lower their request,” Anderson said.

“Use the pause back on them,” he said. “Say I want eight hours [of labor time], but they just want to give me four. I’ll say, ‘You only wanna give me four?’ And then I’m just gonna be quiet. And now what do they do? They start to second guess themselves.”

Staying quiet also gives the adjuster more time to share more information.

Mirroring Mirroring is when you repeat one to three words someone just said, to encourage them to elaborate.

“The more you mirror back, the deeper you’re going to get on why they’re saying no,” Driggers said.

For instance, when an adjuster says “I can’t pay for that procedure,” repeat, “You can’t pay for that?”

She said to make sure your tone of voice isn’t aggressive, because that puts the other person in a defensive place. “People always say no when they’re defensive,” she said.

Caliber Appoints Chief CDO The Caliber family of automotive repair and service brands has appointed Shawn Hezar, its current chief client officer, to the newly formed position of chief corporate development officer. In his new role, Hezar will be responsible for evaluating opportunistic acquisitions, supporting Caliber’s efforts to diversify its offerings, and building strategic partnerships.

Hezar brings 39 years of experience in the automotive collision industry to his new role, including a decade with Caliber, where his efforts have significantly contributed to Caliber’s unprecedented growth. As chief corporate development officer, he will focus on business opportunities that will create new possibilities for Caliber teammates and support the company’s vision of improving the automotive service experience.

Under his leadership as chief client officer, Hezar has helped Caliber maintain excellent and growing client relationships while ensuring the company anticipates industry trends.

Calibrated Questions Use “how” or “what” questions, as opposed to “why” questions.

“If they say ‘I’m only going to pay for you to remove the steering column if it turns out there’s damage,’ you can say, ‘How am I supposed to do that?’ instead of ‘Why don’t you want to pay for it?’” Anderson said.

Driggers recommended keeping emails as short as possible, to use calibrated questions and to never type in all caps, because it looks like you are yelling at the recipient.

Anderson said anyone can receive the full presentation on negotiation tools by emailing his assistant, Tiffany Driggers, at tiffany@collisionadvice.com.

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IDEAS Collide Showcase Provides Platform For Sharing Innovative Ideas in Collision Repair

By Stacey Phillips Ronak Autobody News

Seven new speakers were featured during this year’s IDEAS Collide Showcase (IDEAS), held during the SEMA Show in Las Vegas, NV, as part of the Society of Collision Repair Specialists (SCRS) Repairer Driven Education Series.

The IDEAS event, first held in 2018, provides a platform for sharing innovative ideas during multiple fastpaced presentations.

Aaron Schulenburg, SCRS executive director, said IDEAS Collide is designed to challenge speakers and stimulate the audience with concepts that rattle the status quo and ambitious ideas that could have a transformative effect on the industry, and the businesses within it.

Aaron Schulenburg

“Each speaker was challenged to give you 10 minutes of their belief, their passion, their best story and narrative of what they want to see in this industry,” Schulenburg said during the event.

“IDEAS represents a rare opportunity to engage with groundbreaking insights that inspire both personal growth and industry-wide transformation,” said Michael Bradshaw, vice chairman at SCRS and a past IDEAS presenter.

“It’s not just about fixing cars; it’s about envisioning the future of how we work and operate.”

The End of the Single-Store Generalist Body Shop Cole Strandberg, managing director of FOCUS Investment Banking and host of the Autobody News Collision Vision podcast, shared what he referred to as his controversial view about the era of the single-store generalist body shop coming to an end. While he said it is not dying tomorrow, he noted the current environment is disrupting an industry that has been around for over a century.

He attributes this to increasing vehicle complexity, the technician shortage, insurance relationships, competition and other industry issues.

At the same time, he said there is a

massive opportunity available.

“Depending on their financial resources, skills and strategic vision, operators have three viable paths forward: specialize, scale or sell,” explained Strandberg.

Each option comes with its own set of advantages and challenges.

she said.

Tuggle recommends engaging with local associations and participating in collaborative initiatives.

The Evolution of the Collision Repair Business The founder of Crunchit Financial Services, Bill Park, delivered the next presentation, “Peak Blue-Collar: Evolution of Collision Repair Shops into White-Collar Enterprises.”

Jill Tuggle

Cole Strandberg

Strandberg acknowledged that collision repairers want to improve and grow their businesses.

“The only thing you should not be doing is nothing,” he said. “I think between specializing, scaling and selling or a combination of all the above, there is an extremely unique opportunity here to take advantage and build something special.”

Conquering Division in the Collision Repair Industry Jill Tuggle, executive director of the Auto Body Association of Texas (ABAT), discussed the division in the collision industry and how it can be overcome in her presentation “UNDivide and Conquer.”

Tuggle provided an overview of the industry since the 1980s, when she said the direct repair program (DRP) model became commonplace.

By the 1990s, some shops weren’t as supportive of the model as they were initially.

“We were seeing a lot of division start to happen in our industry,” she noted.

Some of this was attributed to shops that were afraid if they talked to one another, they would violate antitrust laws.

“That’s when we ended up on our own islands,” she recalled.

Tuggle said it’s time to address the longstanding divisions that have hindered collaboration and education in the industry for decades.

She mentioned that state associations are proactively bridging these gaps by fostering communication, sharing best practices and advocating for higher industry standards.

“Collision repair businesses can play a vital role in reshaping the industry’s future, ultimately promoting unity and driving positive change for everyone,”

focused initiatives, such as repairing and donating a vehicle to those in need, are great ways for collision centers to contribute positively to society and build stronger communities.

“Sustainability is just a word, but running a sustainable business is a choice,” Ruecker noted.

“The key to us being successful in this industry is going to be community and not division,” she said. “Together, we can overcome divisiveness and build a stronger, more resilient collision repair community.”

Sustainability’s Role in Collision Repair Christian Ruecker, vice president of sales for DEKRA North America, discussed the role of sustainability in every layer of collision repair.

Ruecker said sustainability has long been intrinsic to successful businesses; however, some see it as a political climate-driven idea.

During his talk, Ruecker highlighted examples showcasing how sustainable business practices contribute to longevity and profitability and can benefit all industry stakeholders.

Ruecker explained that in Europe, companies are now required to report on their sustainability efforts as part of the EU Corporate Sustainability Reporting Directive (CSRD).

He encouraged collision repair businesses to consider how they are addressing sustainability through an environmental, social and corporate governance (ESG) framework.

“Collision centers can embrace sustainability through energy-efficient lighting, water recycling systems, eco-friendly paints and sustainable supply chain partnerships, creating cost savings and a healthier workplace while reducing environmental impact,” said Ruecker. “By integrating these practices, shops can achieve operational efficiency and align with modern customer expectations for eco-conscious service.”

With the recent cyber-attacks in the automotive world, Ruecker said it should become the norm to incorporate data governance and cybersecurity to protect customer information and ensure responsible practices. Additionally, community-

Bill Park

Park said the collision industry is facing a loss of traditional expertise and anticipated succession, which can lead to leadership gaps.

“The future workforce is balancing a white-collar transformation with technology-driven desires, a focus on flexibility and purpose, and demand for continuous learning,” he noted. “Peak blue-collar is a launchpad to embracing the future and understanding how to navigate the divide.”

He explained that repairers are no longer just competing with the body shop down the street. Instead, they are competing with corporations that have installed processes and procedures using data and analytics.

Park said there’s a movement going on in the industry focused on the merging of idea of blue-collar and white-collar thinking.

He encourages business owners to take the roots of their blue-collar heritage and find the white-collator opportunities in terms of strategy, structure and financial opportunities.

He said it’s no longer about fixing cars. Instead, it’s about building empires.

“That’s how you get off that island by yourself and start building those empires because it can be done,” he advised. “Take some risk, seek out open minds and listen to people who are doing well and have accomplished things.” l CONTINUED ON PAGE 31

autobodynews.com / AUTOBODY NEWS JANUARY 2025 27

EV Collision Claims Rise As National Policy Changes Expected

By Brian Bradley Autobody News

Claims frequency for collisiondamaged battery electric vehicles (BEVs) rose year-over-year in the U.S., while claims severity for BEVs decreased during the same timeframe, according to Mitchell’s Q3 2024 “Plugged In: EV Collision Insights” report, released Nov. 13.

The report showed claims frequency for BEVs rose to 3.01% in the U.S., an increase of 47% over Q3 2023.

However, claims severity for repairable vehicles in the U.S. fell across the board: BEVs, plug-in hybrid electric vehicles (PHEVs), mild hybrid electric vehicles (MHEV) and internal combustion engine (ICE) cars all notched a lower claims severity in the U.S. than Q3 2023, reporting year-over-year decreases in repair costs ranging from 2% to 14% for these various types of vehicles.

BEVs logged the highest average repair costs at $5,560 per car in Q3, followed by PHEVs at $5,229 per car, ICE vehicles at $4,741 per car, and MHEVs at $4,426 per car.

BEVs also took longer to repair than their counterparts through the

first three quarters of 2024. The U.S. year-to-date average keys-to-keys cycle time for BEV collision repairs was 19.5 days, a full three days and 18% more than ICE cars, according to the report.

Prices are equalizing between BEVs and ICE vehicles, creating more similarity in total loss outcomes. The average total loss market value for BEVs in Q3 2024 was $32,718 in the U.S., only $1,648 more than for ICE vehicles. Further, total loss frequency

hit a rate of 9.9% for BEVs and 9.98% for ICE vehicles.

Front-end crash avoidance technologies and potentially fasterthan-expected deceleration in BEVs contributed to a higher rate of rearend impact for those cars compared

to ICE vehicles, which more frequently sustained front-end damage. Nearly 36% of BEV repairs were classified as back-end impacts in Q3, versus just over 27.5% for ICE vehicles. But more than 31.5% of ICE automobiles had a front-end point of impact, compared to just 26% for BEVs. BEVs also significantly outpaced ICE vehicles in terms of OEM parts usage, logging 90.3% compared to only 64.4% for ICE vehicles.

California had a greater repairable claims frequency for BEVs than any other state, hitting 5.86% in Q3, a nearly 0.7% increase from the Q2 2024.

Mitchell also reported that while overall hybrid sales appear to be steadily rising, “headwinds” appear to be boding against widespread PHEV adoption.

The report cited an August 2024 J.D. Power study that stated PHEVs score much lower than BEVs in nine of 10 EV categories, particularly for battery range and total ownership cost.

That same study cited consumer concern with public charging infrastructure as another “persistent headwind” on EV sales.

Changing EV Policy The Mitchell report comes at a time when federal EV policy is expected to shift under the coming Trump administration.

A federal public-private entity on Nov. 13 expressed a continuing intent to strongly advocate for widening EV adoption even amid expected changes to EV approaches under the next administration.

The federal Joint Office of Energy and Transportation established the Electric Vehicle Working Group in June 2022, to make recommendations to the secretaries of energy and transportation regarding the development and adoption of EVs into the U.S. transportation and energy systems.

“Obviously, there was an election last week, and changes in administration may bring changes in priorities, a natural part of our democratic process,” Joint Office of Energy and Transportation Executive Director Gabe Klein said during the working group meeting. “The Joint Office, however, will continue to address these priorities across the departments of Energy and Transportation.”

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Jobs Act of 2021 formed the working group.

“The Bipartisan Infrastructure Law is not just a name only,” Klein said.

“It’s a fundamentally bipartisan effort that’s delivering billions of dollars in investment and good-paying jobs in states and communities across the country, regardless of political affiliation….In times of change like this, it’s the private sector’s dedication and consistency that can help provide stability going forward.”

EV Recommendations Adopted The working group passed at least two recommendations related to light-duty EVs — one related to a public education and awareness campaign and one related to managed charging.

Pursuant to the former recommendation, the working group will launch a program to promote the “ease and awareness of EV charging,” targeting the general public, rental car customers and car dealerships.

Two good reference points to inform the campaign may include the federal “Click It or Ticket” and Airbag and Seat Belt Safety campaigns, where the private sector joined the federal government to promote seat belt use and recognize the benefits of seat belt and airbag technology,

Alliance for Automotive Innovation President and CEO John Bozzella said during the meeting.

“How far does a car go on a charge if it’s an EV, and how and where and when do I charge it?” are a few common concerns that customers share regarding EVs, Bozzella said.

To stimulate charging efficiency, the working group is also considering a recommendation to create a national “EV Charging Station Competition to the Top” program, aimed at incentivizing charging stations to follow consumer-facing minimum National Electric Vehicle Infrastructure standards.

The program may be structured similarly to the U.S. Environmental Protection Agency’s (EPA’s) ENERGY STAR rating framework, according to the recommendation.

The ENERGY STAR score rates performance on a percentile basis, and is expressed as a number on a 1-100 scale. For example, buildings with a score of 50 perform better than 50% of their peers.

Charging efficiency would not be structured in a cut-and-dry format that says “’this is a failure and this is a success,’” Bozzella said. Rather, “there’s ‘good, better, best.’ There’s three, four, five stars.”

The working group did not hold a vote to adopt that recommendation,

but members of the working group plan to soon retool the recommendation to include either a generic description of the entity that will rate charging infrastructure or the name of the entity itself.

The working group will next meet Nov. 20.

During the Nov. 13 meeting, the working group also voted to encourage large-scale “managed charging,” which refers to the optimization of EV charging for cost and electric grid benefits. Managed charging can either be scheduled by consumers to charge during the most cost-effective times to use electricity, or it can be done through an electric utility that is permitted direct control to a customer’s EV load to reduce grid stress and/or charge when

renewables are abundant.

The working group identified two major challenges associated with managed charging that need to be addressed: lack of signals indicating grid conditions and the need for “flexibility” from EVs; and uncertainty of “dependable response” from EV or EV equipment providers to shift load.

“Successful [managed charging] lower volume demonstrations have occurred; now there is a need to align and scale,” the recommendation said. “Scaling requires standard communications among utilities, auto OEMs, EV equipment, software and service providers (collectively, EV Equipment Providers), as applicable, to receive and use data to adjust consumer charging.”

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This prestigious award aims to recognize and honor outstanding individuals, companies, associations or groups within the automotive aftermarket industry who have demonstrated exceptional dedication to improving the lives of others through humanitarian efforts. Nominees for this award should exemplify compassion, selflessness and a strong sense of social responsibility. Their actions should have made a significant and positive impact on communities locally, nationally, or globally.

Nominations for the AACF Humanitarian Award can be submittedatwww.aftermarketcharity. org/humanitarianhero through Jan. 31. Nominations will be reviewed by a committee consisting of AACF Board and Executive Committee members as well as a NEXUS executive.

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IDEAS Collide Showcase Reinvesting in Your Auto Body Shop Spanesi-Americas Aftersales Director Jeramy Holloway shared insight on earning a return on capital spending.

According to Holloway, a necessary aspect of delivering high-quality repairs is the ongoing process of reinvesting back into the business and purchasing equipment.

To help determine if the equipment is the best fit for the business, he suggested evaluating its speed, cost and quality.

Holloway advised repairers to determine why a purchase is being made, whether it’s for an OEM certification program or to upgrade to a new model.

He also encouraged attendees to “be a master of your own product” by purchasing equipment that will ensure the vehicle is fixed correctly for customers.

“We’re in the collision business, and what we’re actually doing is selling a product,” noted Holloway. “That product is properly repaired vehicles.”

The key to earning a return on investment with an equipment purchase, according to Holloway, is understanding how to properly implement the equipment into the

repair process.

He discussed the difference between training and implementation. “Training is the process of teaching while implementation is the process of putting that training into action,” he explained.

Jeramy Holloway

Overall, he stressed the importance of using a process.

“Opinions don’t tell us when to use the tool; the process does,” he said.

Politics in Collision Repair In his presentation, Wayne Weikel, vice president of state government affairs at the Alliance for Automotive Innovation, discussed the fine print of repair politics.

He encouraged attendees to participate in the political process and quoted Plato: “If you do not take an interest in the affairs of your government, then you are doomed to

live under the rule of fools.”

Weikel said it is not just a matter of being interested in politics, but it’s also important to understand the motivations influencing policy work in the local state capital and Washington, D.C. “Understand there are people out there who are telling them [policymakers] what you need if you’re not out there in front of them,” he shared.

Additionally, Weikel said having an individual voice can be impactful in advocating for change.

“Invite your legislators to your shops and talk about your business with them,” he said. “…They want to know about their constituents.”

He also advised shops to explain the challenges encountered when servicing customers.

“Without the logic and the input from informed members of the community, policy has the potential to be shaped by other vested interests and voted on by individuals who lack the specific understanding of the industry and the economic influences that put pressure on proper repairs,” he noted.

Collaborating to Improve Education Molly Mahoney, the national marketing and director for the Collision Engineering program, talked about the importance of building the future

together by uniting education, industry and community.

Collision Engineering was formed as the result of a collaboration with Ranken Technical College and the Enterprise Mobility Foundation.

Mahoney said it was born out of the need to innovate, to move beyond traditional rotational training models and rethink how people are brought into the collision industry.

“We reimagined education not as an isolated experience, but something directly integrated with the real world,” she said.

During her presentation, Mahoney explored how the program’s vision combines hands-on training, innovative educational models and industry collaboration.

She said that in recent years, the shortage of skilled technicians has become a global crisis, and the industry is at a pivotal point.

According to Mahoney, the shortage of skilled technicians isn’t just a problem for the industry; it’s a reflection of a much larger issue -the current system is out of step with the future.

“The power of collaboration between industry, education and community is our solution,” she shared. “Together, we can create not just a response but a transformation for the future.”

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Shops Say Specialization of Employee Roles Improves Production, Eases Finding Qualified Workers

By John Yoswick Autobody News

A panel of collision repair shop owners shared how they’ve moved to more specialized employee roles within their company, during a Society of Collision Repair Specialists’ (SCRS) training class during the 2024 SEMA Show in Las Vegas.

The three opened the discussion by first talking about the benefits of such specialization in manufacturing, particularly at another transportation sector company like Boeing, where exacting tasks are handled by specific people who become very skilled and productive at that work.

makes and models, more specialized roles for employees will similarly boost expertise and productivity.

Dorn said with all the duties shops have traditionally given to estimators, for example, how high a priority will it be for them to mirror-match parts or handle parts returns and credits?

“They’ve got to take care of the customer. They’ve got to get the car going. They’ve got to get this supplement approved. They’re not worried about parts,” Dorn said, saying his shop, which repairs about

will likely be focused primarily on body labor hours because in a flatrate system, that’s the basis of their compensation.

“You can’t blame them,” he said.

“So that’s why you have to have at least some level of a blueprinter or a repair planner that’s with them who is also focused on parts and focused in on the procedures.”

Having a detailer or someone other than an ADAS specialist do the pre-scanning of a vehicle isn’t likely to ensure the shop has all the

“When you are able to narrow it down as far as the roles and responsibilities of that person, it’s a lot easier to introduce younger people into it.”

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Barry Dorn of Dorn’s Body & Paint in Mechanicsville, VA, said he believes that just as more shops are specializing in the repair of fewer

Pictured, from left, shop owners Barry Dorn, Kris Burton and Michael Bradshaw discussed how they’ve moved to more specialized employee roles within their business

160 cars a month, has a dedicated parts team.

Similarly, he said, if a technician is also handling supplements, they

information it needs as repairs begin, Dorn said.

“That’s the initialization of you finding out what’s wrong with that

car,” he said. “Yet most of the folks doing it in most shops are literally hitting ‘print’ and hoping that somebody, somewhere, will know what it means, yet it’s often sitting in the file not being read. It has to be somebody who actually knows diagnostics so he can read it, and know what he’s looking for, and more importantly, know when they scan something, depending on if it’s an OEM tool or if it’s an aftermarket tool, how far down into the modules is it going?

“Is your estimator going to know that? Probably not. That’s not what they were trained for,” Dorn continued. “I don’t know that I can, because I was never trained to be a diagnostic service tech. The point is, if you hire folks for that role, they’ll give you the information that you need to know what’s wrong with that car prior to even writing the blueprint, instead of finding out five hours before the customer is supposed to come pick the car up.”

Starting in the Body Department Kris Burton of Rosslyn Auto Body in Alexandria, VA, said he started the transition to more specialized roles in his shop’s body department, developing assembly

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and disassembly teams and adding helpers and apprentices -- three of the five are under age 19 -- to help keep structural technicians focused solely on that highly-skilled work on the 78 cars the shop repairs per month on average. That helps make it easier to bring in entry-level technicians to train.

“When you are able to narrow it down as far as the roles and responsibilities of that person, it’s a lot easier to introduce younger people into it,” Burton said. “People always say: ‘There’s not enough techs. We have a shortage. We need to have more people.’ But having a kind of a reduced role makes it a lot easier to bring people in. It’s like we’re creating our own farm system internally, and can promote from within. I don’t want to say that we don’t face a technician shortage, but it’s not as drastic.”

By segmenting out all the roles the typical estimator handles, Burton has been able to bring in customer service reps who just handle all customer interactions, including explaining the process and selling the job.

“Some of the best CSRs that I’ve found have been from restaurants,” he said. “Lately it’s been from even like vet’s offices and doctor’s offices and dentist’s offices. They’ve dealt some with insurance companies to a different level, and kind of have

an understanding of admin and processes.”

His shop’s 21 employees include a 19-year-old technician who specializes in ADAS and diagnostic work.

“He started with us when he was 16, and flies all around the country for training and loves it,” Burton said.

“The reality is that it’s become a specialized role, and it’s something that’s attractive to a lot of young techs.”

Only One Structural Tech Needed Like Burton, Michael Bradshaw of K&M Collision in Hickory, NC, said few people have all the different skills needed for the tasks many shops have traditionally required of estimators: technical knowledge, customer service and sales abilities, negotiating, collections, etc.

“Is there any one [task] that they’re really going to be able to excel at if they’re trying to manage all these others?” Bradshaw asked. “I know sometimes we look at things from a perspective of ‘I can’t afford to have somebody else to do this task or this role.’ But if you look at the inefficiencies that are created, you really can’t afford not to have somebody alleviate some of that stress.

“Think about it: We want somebody

up front who can sell and is pleasant and nice to deal with. But a repair planner is usually somebody that’s probably a little nerdy because it’s super technical, and maybe isn’t the best at interacting with the customer.

Those two people are rarely the same personality type,” Bradshaw said. “But we wonder why we don’t have success. Why are we missing parts? Why are we not closing on the opportunities that we have? Because we don’t have the right individuals in the right place, and we’re asking one individual to do way too much.”

Bradshaw’s shop has 31 employees, but just one structural technician, with a helper, who does all the welding and frame work — becoming very efficient at it because it’s all he does — while others handle disassembly and reassembly, glass work, scanning and calibrations, etc.

Similarly in the paint shop, Bradshaw said, having one person handling all color matching helps that person become very efficient.

The parts team at Bradshaw’s shop includes one person who does all the mirror-matching of parts and checking for any damage to those parts; another ensures all the invoices are received, that discounts are correct, that parts price updates are applied to the estimate, and returns and credits happen.

Michael Bradshaw said it’s rare to find someone who has all the technical and customer service and sales skills shops have traditionally required of estimators

“After we hired an individual dedicated to doing all the mirrormatching, I was able to bring back that parts manager, and he’s as happy as can be now,” Bradshaw added. “And he’s really good at the accounting side of things.”

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Maaco Daytona Beach Celebrates Grand Opening Longtime automotive enthusiasts Richard Ly and Johnny Sy, owners of the new Maaco location in Daytona Beach, recently hosted community members for a ribbon-cutting ceremony Oct. 31 to celebrate the

opening of their state-of-the-art collision repair and automotive service center. Attendees were treated to light refreshments, a tour of the shop and the opportunity to network with other local business owners.

Located at 511 W. International

Speedway Blvd., the 10,000-squarefoot facility offers a range of services, including automotive painting, light collision repair and detailing. The new shop is staffed by a team of skilled professionals dedicated to delivering highquality work to the Daytona Beach community.

With a background in automotive services and experience operating a Maaco in Savannah, GA, which they opened in 2022, Ly and Sy are excited to expand their expertise into Daytona Beach.

“We’ve always been passionate about cars and are thrilled to bring our services to Daytona Beach,” said Ly. Ly noted the opening marked an important milestone in their commitment to providing reliable, top-tier service to the local area.

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Allstate Sues Hyundai, Kia Over Fire Risk and Recalls Allstate and several subsidiaries have filed a federal lawsuit against Hyundai and Kia, claiming the automakers knowingly failed to address defects in millions of vehicles, resulting in severe fire risks.

The lawsuit, filed in the U.S. District Court for the Central District of California, accuses Hyundai and Kia of “purposefully and knowingly” neglecting to recall defective vehicles, thereby putting lives and property at risk. The issue dates back to at least 2006 and has reportedly led to numerous incidents of cars spontaneously erupting in flames, even when parked.

The suit highlights consumer complaints filed with the National Highway Traffic Safety Administration (NHTSA) beginning in 2011.

One complaint involved a Hyundai vehicle that caught fire while parked in a driveway. A forensic engineer attributed the fire to moisture in the braking system, which caused a short circuit in

the engine compartment.

Hyundai and Kia have issued 17 safety recalls to date, but the lawsuit alleges that some fixes were inadequate. “The unfair and deceptive trade practices committed by defendants caused plaintiffs’ damages,” the insurers stated in the lawsuit.

Allstate and its subsidiaries, including Esurance, National General, Integon and Safe Auto, claim their insured customers suffered extensive damages, including repair costs, loss of vehicle use, rental expenses and property damage caused by vehicle fires.

In November 2020, Hyundai and Kia reached a consent order with the NHTSA, agreeing to pay a record $210 million civil penalty for failing to recall over 1.5 million vehicles in a timely manner.

The lawsuit aims to recover the costs paid to insured customers for damages, holding Hyundai and Kia accountable for their alleged negligence.

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‘Two Bites of the Apple’: Small MSO Sales Can Mean Double Rewards For Investors

By Elizabeth Crumbly Autobody News

As the collision world consolidates and owners of multi shop operations (MSOs) sell their businesses, a trend is emerging: investors purchasing smaller shop chains. That’s because private equity firms have a tough time making larger deals, explained Chris Lane, president of California-based Focus Advisors.

Chris Lane

Sales of larger chains the size of Classic Collision or Crash Champions don’t happen that often because organizations that size are few and far between, he said, and the buying of smaller chains trends usually originates with independent sellers.

“There are only maybe eight, nine, 10 of those that can possibly happen, and they happen every four, five, six years. So, there aren’t that many of those available. And they’re incredibly competitive,” he explained. “At least five years ago, we were approached by a number of private equity firms looking at that next size of platform -- a little bit smaller — something independent and not owned by a consolidator.”

That number, he said, has risen sharply in the past 18 months.

New Platforms Private equity firms, Lane explained, look for platforms to purchase — typically MSOs that span more than one market. These MSOs, he said, have proven they can develop across multiple units in different markets with success, making them attractive to investors. In the past, he said, he recommended investors look at platforms in the $50 million to $100 million range in terms of annual sales, but those platforms were rare, and the purchase process when one does come to market is “incredibly competitive.”

“They’re very expensive,” he said.

“I think what happened over time is as more private equity firms became interested in getting in collision repair … I think they recognized that getting in at the size that they would ideally like to get in at — the odds of doing that are very small.”

Rapid Growth Private equity firms are now considering smaller platforms with three or four locations, and after making a purchase, firms try to grow those platforms rapidly through acquisitions. They may add two or three new locations in the first six months, he observed, to get close to the platform size they’re more comfortable with.

On the flip side of those sales, shareholders of independent MSOs are often looking to exit — to sell businesses outright.

Another scenario is recapitalization.

Shareholders, Lane explained, want to “adjust the capitalization table.” In this case, he said, shareholders who each hold a certain percentage of ownership sell some of their equity to become part of a reorganized ownership group with added partners.

A variation of the recapitalization scenario sees owners continuing to run a business after an equity firm buys it. Investors, Lane pointed out, naturally have far less knowledge of the collision repair industry than independent MSO owners. In this instance, he said, the former owners partner with their buyers in a continued vision for the business.

Madeleine Roberts Rich

The sale process in this case includes comprehensive talks about business history and performance and the future, which may include new shop acquisitions and opening of brownfields and greenfields.

Focus Advisors helps with these sales frequently, and Lane said the best case isn’t always about finding

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the most money for sellers.

“The idea here isn’t just to get the highest dollar amount,” he said. “It’s to find the partner that you’re going to be operating alongside to grow this for the next five to seven years, so it had better be somebody you trust and that you like who shares your values. You get to choose who the best partnership is for you.”

Lane typically sees sellers putting some financial skin in the game, too.

“What they will do is they’ll come in and buy your business and then ask you to reinvest some of those proceeds back into this new entity that you’re both growing together,” he said. “Typically, an owner will have somewhere between 10% and 40% ownership in what they’re growing.”

The advantage to the owner, he explained, is that they’re selling a business for a decent valuation in the present, but they’re also helping to grow something over the next five to seven years, which they can sell again, eventually.”

“We call that two bites of the apple,” he said.

A Growing Trend As to why this trend is growing so quickly now, Lane said he sees the collision industry as relatively recession-resistant since third-party players — insurance companies —

foot so many of the bills. Cars are becoming increasingly complicated to work on, too, he pointed out, which means they’re more expensive to fix.

The price of parts continues to rise.

“Everything sort of has a builtin inflationary measure to it, which means that revenues are going to go up almost no matter what.”

That dynamic, he contended, makes the market attractive to investors.

The trend of smaller chain sales, Lane said, is taking place across the country, but it’s important to investors to seek out healthy markets where they feel they can truly grow.

Those markets, he said, are typically metropolitan and not already heavily consolidated, making for more choices for acquisitions. He’s seeing most private equity investors who are typically keeping in place existing leadership with added depth for new skill sets. That process might include adding a chief financial officer who can bring in sophistication with financial planning.

“If you’ve already grown your MSO to three, four, five locations and you’re doing a great job with it, they don’t want to monkey with that,” he said. “What they’re going to say is ‘Let’s look ahead and say that you’re going to be 10 locations. You don’t have the staff to do that. So let’s kind of bone up on that.’”

Careful Consideration It’s especially important for MSO sellers, contended Madeleine Roberts Rich, senior associate with Focus Advisors, to do thorough due diligence on potential private equity partners.

“They are going to thoroughly vet and do due diligence on any owner they partner with,” she said. “Be reciprocal … You’re going to be putting years of your life and, potentially, your team members’ lives, and probably a very significant portion of your net worth on the line. Not all private equity firms are created equal or have the

same personality types or have the same industry expertise.”

Private equity partnerships aren’t for every MSO owner looking to hand off their business, Rich said, but it’s for those hungry for something more.

“This is a perfect match for really hungry, ambitious entrepreneurs that want to take their collision repair business to the next level and that have teams they want to incorporate into that growth,” she said. “You’ve got to go in with a plan to get this kind of capital, but it can have massive rewards and eliminate bottlenecks to growth if you have a vision in mind.”

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Total Loss Processing: Attention To Detail, Documentation Essential For Collision Shops

By Stacey Phillips Ronak Autobody News

Recent studies show that the proportion and frequency of total loss in collision repair is increasing.

According to the Q3 2024 CCC Crash Course report, 21.5% of claims YTD 2024 are deemed a total loss — a 79% increase in total loss processing frequency since 2013. CCC’s research also shows that current year and newer electric vehicles (EVs) are slightly more likely to total (9.8%) than internal combustion engine (ICE) vehicles.

During the SEMA Show in November, AkzoNobel Senior Services Consultant Tim Ronak and Services Consultant Tony Adams shared insight on monetizing the total loss process. Their presentation was held as part of the Society of Collision Repair Specialists (SCRS) Repairer Driven Education Series.

Adams began the presentation by defining total loss.

“Typically, it’s when the estimated monetary cost of repair exceeds a predetermined threshold percentage of the determined pre-loss monetary value of a vehicle,” Adams explained.

Ronak said that total loss processing has undergone a remarkable transformation over the past decade.

“Once a negligible endeavor, it has evolved into a complex, labor-intensive and resource capacity demanding activity,” he shared.

“The landscape is really changing and it’s changing quickly,” said Adams.

“We have to adapt to process these types of claims profitably.”

that vehicles and thresholds have changed.” Many attribute the growing prevalence of total loss assessments to the rise of technology in cars.

Ronak cautioned shop owners to be aware of how much money processing total losses cost their business.

“If you’re part of a [direct repair

Processing total losses “has evolved into a complex, labor-intensive and resource capacity demanding activity,” according to Tim Ronak of AkzoNobel. Image via Shutterstock.

This involves meticulously accounting for the documentation, administrative and storage tasks involved to ensure accurate billing.

Ronak said that for the last 30 years, total loss processing has typically been part of a contracted arrangement shops have with vendors.

“A lot of these activities were included as part of that relationship,” he noted. “What has happened is

38 JANUARY 2025 AUTOBODY NEWS / autobodynews.com

program] DRP and choose to provide this as part of your service, that’s great, but clearly determine what it costs you,” he advises. “If you’re not going to be a DRP, understand what steps you have to take to protect yourself.”

Understanding the Process Shop Repair Contracts: Adams recommends having repair contracts in place that outline the charges. These

include storage and administration fees. Adams also suggests shop owners consider having a lawyer draw up the contract to ensure consumers are protected as well as their own interests.

Initial Damage Cost Assessment: This involves a detailed inspection to identify and document all collision-related damage. Adams said it comprises comprehensive disassembly to expose potential damage and a thorough evaluation of structural, mechanical, ADAS functionality and cosmetic impacts.

The goal is to approximate the cost to return a vehicle back to its preloss condition according to OEM procedures.

Vehicle Valuation: To ascertain the pre-accident fair market value, Adams said a comprehensive process is followed. It entails examining the car’s history, condition, mileage and verifiable recent sales data, as well as state regulations. When there is disagreement on value, consumers can invoke the appraisal clause (carrier policy dependent) to ensure they feel treated fairly.

Total Loss Determination: Insurers then evaluate the estimated repair costs against the vehicle’s pre-accident value. Typically, it is

classified as a total loss when repair costs exceed a certain percentage of the value.

Communication with Insurance: Repairers can spend significant time preparing detailed estimates and supporting documentation to submit to the insurance provider on behalf of customers. Adams said dialog is maintained to address any questions or concerns during the process.

Final Billing/Consumer Payout and Vehicle Removal: When and how the consumer ultimately transfers ownership of the car is determined at the final stage.

Common Procedures & Billing Items Vehicle Towing and Storage: This can include towing services to and from the repair facility, within the repair facility, calculating and billing storage, lot access fees, gate fees, waiting time and supervised access for third-party tows from the lot.

Ronak suggests determining the reasonable fees in the market, considering any state regulations regarding storage, and making the distinction between working on the car versus the waiting time for approval and instructions to move ahead.

Diagnostic and Disassembly: Considerations are pre-repair scanning and disassembly steps, access or removal of components, diagnosis of scope of damage, and

documentation of measurement and structural deformity.

OEM Required Pre-Disassembly Procedures: Possible inclusions are accessing, researching, interpreting and performing OEM and other procedures to prevent additional damage during disassembly, and identifying the precautions necessary depending on the powertrain.

Parts and Labor: Adams shared examples such as restocking fees for parts authorized to be ordered before a total loss determination, staff labor time to remove customer belongings, communicating with the insurer and customer, disassembly and damage inspection, packing up and storing removed components and partially reassembling a car for transport.

Ronak said labor is typically calculated at 50% of the remove and install (R&I) time for all components removed.

Administration: These could be fees for processing and preparing total loss paperwork and communicating/ negotiating with insurers on behalf of customers. This includes all electronic and verbal communication along with documentation of that correspondence.

Disposition of Salvage Vehicles: Adams noted the procedures and regulations when dealing with vehicles declared salvage, including documentation of salvage

title requirements and billing for hazardous waste disposal and reclamation fees. Ronak reminded attendees to understand state and county rules regarding lien sale, abandonment and storage laws.

Addressing Billing Challenges Ronak outlined some of the billing challenges during the total loss process. The single biggest one, according to Ronak, is a lack of adequate repair contract authorizations and documentation.

An additional challenge he pointed out that shops often deal with is disputes over labor rates, labor procedures and other related costs, as well as underpaid claims. Others include legal considerations, insured customer recourse within their policy, and vehicle abandonment.

“In all of these instances, it’s about the contract you have in place,” Ronak noted. “It’s an absolute must to have.”

Ronak and Adams recommend maintaining detailed, precise records of all procedures performed, materials used and time spent with clear research supporting all pricing and procedures billed.

Best Practices for Billing & Payment Ronak talked about some key success factors affecting billing and payment, such as clearly and consistently

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applying billing procedures.

“You can’t charge one insurer one price and another insurer another price without future consequences through subrogation AI analysis,” he noted. “Being consistent in your pricing and uniform across a marketplace is what’s important.”

Ronak and Adams also stressed the importance of keeping customers informed throughout the total loss process about what is being done to the vehicle outlining the costs, insured insurance negotiations, current approval status, and their responsibilities and rights.

Ronak advises leveraging parts management tools to track parts orders, returns and restocking fees accurately.

Shops can also use repair tracking software to streamline billing, automate calculations, and generate comprehensive estimates and invoices.

Shops can also investigate thirdparty training and tools through SCRS, DEG, Elite Body Shop Solutions and other industry vendors. Collision repair contract templates are offered

by Erica Eversman for a fee at www. vehicleinfo.com.

In closing, Ronak said attention to detail and proper documentation is essential for maintaining profitability and compliance in collision repair.

Claim Transparency Innovations Joins CIECA Claim Transparency Innovations, founded in September 2022 by Robert McDorman and Brian Deorsam, has joined the Collision Industry Electronic Commerce Associataion (CIECA) as a corporate member to advance transparency and efficiency in collision claim management.

The company’s flagship product, Transparent Claim, is a proprietary portal designed to transfer control of collision claims from insurance carriers to body shops, offering a more transparent and streamlined process for all stakeholders.

McDorman and Deorsam were introduced to CIECA through CCC Intelligent Solutions, leading them to join the organization. Their collaboration underscores the importance of standardization in the collision repair industry — a goal both parties share.

autobodynews.com / AUTOBODY NEWS JANUARY 2025 39

Wishing You a Happy & Prosperous 2025 from the Team at

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