August 2023 Southeast Edition

S OU T HE A ST E DI T I O N

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Right To Repair Pact Between Automakers and Repairers Draws Criticism Organizations representing the country’s independent automotive repairers, collision repair experts and leading automakers announced July 11 they inked a landmark agreement on automotive right to repair, but two other organizations objected, calling it a thinly veiled attempt to confuse lawmakers and drivers.

The commitment among the Automotive Service Association (ASA), the Society of Collision Repair Specialists (SCRS) and Alliance for Automotive Innovation (AAI) was meant to affirm a 2014 Memorandum of Understanding (MOU) on automotive right to repair, stating “independent repair facilities shall have access to the same diagnostic and repair information that auto manufacturers make available to authorized dealer networks.”

The Auto Care Association (ACA), an original signatory to the 2014 MOU, said it was not consulted about, was not a party to and does not support the new pact. ACA said ASA and SCRS, who did not sign or support the 2014 MOU, represent a small fraction of the independent repair market and do not speak for the automotive aftermarket.

“The agreement between the AAI, ASA and SCRS is a thinly veiled response by the automotive OEMs to HR 906: the REPAIR Act,” ACA said. “While the agreement purports to be relevant, all it does is affirm the 2014 MOU rather than implement a meaningful solution to preserve the entire automotive aftermarket and the competition and consumer choice that it creates.”

The CAR Coalition also questioned the impetus behind the pact and reiterated its support for the SMART and REPAIR acts.

In a letter to Congress outlining the pact, ASA, SCRS and AAI wrote: “This commitment was created with our mutual and valued customers in mind: vehicle owners. It affirms that consumers deserve access to safe and proper repairs throughout a vehicle’s lifecycle [and] it is built to

41 YEARS

Vol. 14 / Issue 6 / August 2023 REGIONAL NEWS

Florida Toyota Dealership Sale Sets Transaction Price Record The sale of Al Hendrickson Toyota in Coconut Creek, FL, to Morgan Automotive Group (MAG) set a record for the highest blue sky value ever paid for a single dealership, regardless of franchise, said Haig

Partners LLC, which served as the exclusive sell-side advisor.

Haig Partners did not disclose the sale price. Al Hendrickson Toyota, the No. 2 highest-volume Toyota dealership in the U.S., opened its doors as a father-son business in 1989. Under Al Hendrickson Jr.’s leadership, the dealership performs at the highest levels for sales performance and customer satisfaction.

In 2022, it was No. 1 in the U.S. in passenger car sales for any brand, and in 2021 and 2022, it was No. 2 in the U.S. in total new unit sales for any brand. It is also the top volume Toyota dealer in the Southeast region and a recipient of the Toyota Board l CONTINUED ON PAGE 13

REGIONAL NEWS

Trade School Programs in Hot Demand in Tennessee

By Olivia Sanchez & Danielle Smith The Hechinger Report-Public News Service Collaboration

Most of the guys come straight to the shop each afternoon. After long shifts at supermarkets and home improvement stores, they make their way to southwest Nashville just before 4 p.m., sometimes still in uniform, and pull into a massive parking lot shared by the local community college and the Nashville branch of the Tennessee

l CONTINUED ON PAGE 16

l CONTINUED ON PAGE 18

College of Applied Technology, or TCAT.

INSIDE THIS ISSUE 8

Columnist Mike Anderson: Creating an Extraordinary Customer Experience Before, During and After Collision Repairs

21

Columnist Abby Andrews: How to Use ‘Blue Sky Thinking’ to Bring Innovative Ideas Down to Earth

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10

Columnist Stacey Phillips: Toby Chess Helps Body Shop Owners Start

Mentorship Programs

Columnist John Yoswick: PartsTrader Webinar Examines Trends in Collision Parts Delays, Pricing

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Contents

COLUMNISTS Mike Anderson Creating an Extraordinary Customer

REGIONAL NEWS

Experience Before, During and After

CARSTAR South Thornton in GA Celebrates White Christmas in July � 12

Kia Georgia to Expand for EV9 Production �������������������������������������������� 38

Collision Repairs ��������������������������������������������8

Crash Champions Restores, Donates Vehicle to Nashville Children’s Home 6

New Florida Law in Effect for Out-ofState Driver’s License Classes ���������� 30

How to Use ‘Blue Sky Thinking’ to Bring

Empire Auto Parts Opens New Distribution Center in Florida ������������ 37

Nissan to Build 2 Electric Sedans at Mississippi Plant ���������������������������������� 31

Farmers Insurance Further Reducing Florida Business ���������������������������������� 40

Relentless Collision Opens Durham, NC ����������������������������������������������������������� 46

Florida Bans Direct-to-Consumer Car Sales for Legacy Brands �������������������� 27

Trade School Programs in Hot Demand in Tennessee �������������������������� 1

Florida Toyota Dealership Sale Sets Transaction Price Record �������������������� 1

USAA Settles Georgia Class Action on Underpaid Taxes in Auto Claims ������ 22

Group Steals Cars from Hickory, NC, Dealership Hour After Initial Break-In ���������������������������������������������������������������� 34

1Collision Summit Includes I-CAR Tour, Insight from Industry Experts & Networking Opportunities ��������������������4 AAA: Prioritize Roadway User Safety Before Raising Speed Limits �������������� 35

New Cars are Getting More Expensive to Fix, But Don’t Blame EVs Just Yet � 45 New-Vehicle Quality Taking a Back Seat to Innovation as Problems Reach a Record High ��������������������������������������� 47 NHTSA Asks Tesla for Updated Data Amid Autopilot Probe �������������������������� 41

AkzoNobel Adds Facilities in OH, NC 45

Nissan Foundation to Award $1.2 Million in Grants ����������������������������������� 30

AkzoNobel Expands Kindig Partnership �������������������������������������������� 27

Passenger in 2003 Dodge Ram Killed

by Recalled Takata Airbag ������������������ 32

ASE Announces Leadership Changes ����������������������������������������������������������������� 34

Progressive Using Mitchell Estimating Platform �����������������������������������������������������6

Audi, Volkswagen Donate Damaged Vehicles to Collision Repair Educational Programs ������������������������� 42 Bryce Boyer Joins CIECA Board ������� 44 CIF Announces Crash Champions as Annual Donor ���������������������������������������� 22

Stacey Phillips Body Shop Owners Discuss Mentorship Programs Initiated with Support from Toby Chess �������������������������������������������������� 26

PartsTrader Webinar Examines Trends in Collision Parts Delays, Pricing ����������������� 10 States Enact Legislation Related to OEM Procedures, Labor Rate Studies ��������������17

asTech Driven by Reparify ����������������������� 18

Hendrick Volvo Cars of Charleston ���������� 38

ACT Automotive Staffing ������������������������� 20

Honda-Acura Wholesale Parts Dealers .23 24-25

Audi Gwinnett ������������������������������������������ 20

Hyundai Wholesale Parts Dealers ����������� 42

Audi North Miami ������������������������������������ 35

Industrial Finished and Systems ���������������� 7

Audi Wholesale Parts Dealers ����������������� 41

Kia Motors Wholesale Parts Dealers ������� 40

Auto Data Labels ������������������������������������� 19

Lakeland Ford/Hyundai ��������������������������������17

AutoNation Ford-Lincoln �������������������������� 30

Mercedes-Benz Wholesale Parts Dealers ���44

Axalta Coating Systems �������������������������� 11

Miami Lakes Automall ����������������������������� 12

Benchmark Automotive ��������������������������� 28

MINI of Charleston ���������������������������������� 38

Carworx Distribution Inc �������������������������� 48

MOPAR Wholesale Parts Dealers ������������ 39

Certified Automotive Parts Association ��� 22

Nissan/Infiniti Wholesale Parts Dealers ���� 46

Right to Repair Pact Between Automakers and Repairers Draws Criticism ����������������������������������������������������1

Classifieds ����������������������������������������������� 46

NorthAmerican Bancard �������������������������� 13

Cool Boss A Division of Bendpak Inc ������� 15

Parks Chevrolet ���������������������������������������� 28

Small Pickups Fall Short When It Comes to Rear-Seat Safety ����������������� 28

Dale Earnhardt Jr. Chevrolet �������������������� 37

PPG Industries ������������������������������������������� 9

Eagle Abrasives Inc ����������������������������������� 5

Reeder Chevrolet ������������������������������������� 21

Empire Auto Parts �������������������������������������� 6

Reed Nissan �������������������������������������������� 35

Equalizer Auto Glass Tools ������������������������� 6

Rick Hendrick Chevrolet Naples �������������� 38

Ford Wholesale Parts Dealers ����������������� 44

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

GM Wholesale Parts Dealers ������������������� 43

Serra Kia �������������������������������������������������� 21

Grieco Ford of Fort Lauderdale ���������������� 16

Sorbothane, INC �������������������������������������� 10

Gus Machado Ford ���������������������������������� 29

Sport Durst Chrysler-Dodge-Jeep-Ram ��� 38

Harper Volkswagen ���������������������������������� 27

Stivers Decatur Subaru ���������������������������� 34

Hendrick Automotive Group �������������������� 33

Subaru Wholesale Parts Dealers ������������� 45

Hendrick Honda Pompano Beach ������������ 34

Toyota-Mazda of North Miami ����������������� 37

Hendrick Kia Cary ������������������������������������ 31

Toyota Wholesale Parts Dealers �������������� 44

Hendrick Kia Concord ������������������������������ 31

Volkswagen Wholesale Parts Dealers ����� 42

Ford Best Selling-Brand in U.S. in Q2 ����������������������������������������������������������������� 39

Tesla Giga Texas Model Y Line to Pause, Some Workers to Shift to Cybertruck: Observer �������������������������� 47

Gas Prices Drift Lower as Drivers Prepare for July 4th Travel ������������������ 38

Tesla’s Price Cuts Nearly Wipe Out Autonomy Subscription Service ������� 37

GM Acquires Battery Software Startup ����������������������������������������������������������������� 31

Volvo Adopts Tesla’s NACS Connector for EVs ����������������������������������������������������� 22

Advertise in our Classified Section for $50 per column inch!

800-699-8251 ltedesco@autobodynews.com AUTOBODY

Innovative Ideas Down to Earth ��������������� 21

John Yoswick CIC Speakers Focus on Collision Industry Preparedness for Evs ������������������������������� 14

Index of Advertisers

NATIONAL NEWS ‘Who Pays’ Survey Finds Shops Increasingly Billing, Being Paid for Seat Belt Inspections ������������������������������������ 44

Abby Andrews

CIF Continues Legacy of Service, Providing Emergency Relief and Connecting Collision Repair Industry ����� 36

www.autobodynews.com

autobodynews.com / AUTOBODY NEWS AUGUST 2023 3

1Collision Summit Includes I-CAR Tour, Insight from Industry Experts & Networking Opportunities A tour of the I-CAR Chicago Technical Center, insight from industry experts and networking with body shops and vendors were all part of the two-day 1Collision Summit, June 8-9 in Chicago, IL. The 58 attendees included 1Collision location owners and managers, sponsoring vendor partners, and 1Collision staff from the U.S. and Canada.

“1Collision conferences have always been very well received by the 1Collision location owners,” said Jim Keller, president and COO of 1Collision. “During the pandemic, we were only able to connect virtually with the shops and vendor partners as a group. We are grateful for the partners and speakers that supported the event with their very informative and relevant presentations.”

On day one of the event, there was a behind-the-scenes tour of the I-CAR Chicago Technical Center, which opened nearly a year ago. Attendees had the opportunity to see the latest collision repair technologies and education.

“The Day at I-CAR event was a dynamic and valuable experience for all in attendance,” said Keller. “Special thanks to Bud Center, Lisa Ferguson and the entire I-CAR and Chicago Technical Center leadership and staff for a memorable experience.”

“We’re proud to aid 1Collision in their collective objective. The Appleton and Chicago Technical Centers are investments in our industry’s technical infrastructure,” said Associate Vice President of Collision Repair Terry Ticel. “With advanced technology impacting all corners of the industry, I-CAR’s role is to support every collision repair professional so that they’re armed with the resources, knowledge and skills to survive and thrive the Technical Tsunami™.”

Following a technical presentation from Center, I-CAR’s director of technical products and curriculum development, Brandon Eckenrode, executive director of the Collision Repair Education Foundation (CREF), discussed CREF’s efforts to support collision school programs and showcased how businesses can get involved with local schools.

Ideas included volunteering on advisory boards, encouraging students, schools and instructors to take advantage of CREF scholarships and tool grants and sponsoring Cintas uniforms for students. He also urged shops to donate parts to schools through CREF, participate in

career fairs, present to schools and host field trips.

“Collision industry businesses engaging with their local schools, students and instructors is crucial to help ensure these classrooms are full but also are graduating properly trained entry-level staff for industry employment,” said Eckenrode.

Hopkins, MN, and Collision Center 1 in Golden Valley and Prior Lake, MN, received the Growth Award.

The Community Involvement award was given to Denisse Barragan, J & R Auto Body & Paint in California, and Steve Fishe from Plan B Auto Body received an award for Most Improved Shop.

I-CAR hosted 1Collision Summit attendees for a tour at the Chicago Technical Center in Illinois.

Greg Peeters, CEO of Car ADAS Solutions, and Frank Terlep, vice president of collision and ADAS services at Opus IVS, then shared information about setting up and operating calibration centers.

Peeters talked about overcoming the hurdles of building a thriving ADAS calibration business. “With new vehicles now required to have a calibration post-collision repair, is it critical for collision repair facilities across the country to decide how they will meet this increasing demand,” said Peeters. During his presentation, Peeters addressed the current and future need to conduct ADAS calibrations and shared the requirements to set up an OEMcentric calibration center.

Terlep discussed what Opus IVS is doing to enable ADAS service, calibration and validation businesses to open, operate and succeed.

“Today, no company is able to provide an existing or future ADAS service, calibration and validation business a complete diagnostic tool, software and mobile app solution to properly identify, diagnose, calibrate, validate, document, manage and invoice for ADAS services, calibrations and validations,” said Terlep, who helped shops understand what will be required in the future.

During that evening’s dinner, 1Collision presented four awards to network body shop owners/managers.

Raffi Avetyan and Ellie Adri from All Magic Paint & Body in California were named Promoters of the Year for their help with recruiting new locations. Jerald Stiele and Jake Moser from Hopkins Auto Body 1 in

4 AUGUST 2023 AUTOBODY NEWS / autobodynews.com

Keynote speaker Caleb Spitler, founder of Restio, then shared insight on avoiding burnout and the science of having more energy.

“Everyone wants to increase productivity, have lots of energy, feel good and take their organization to new heights, but last year the No. 1 reason people quit their jobs was due to burnout,” Spitler noted. “If we expect a high level of output from ourselves and our teams, we must become experts at restoring our physical and emotional well-being.”

The following day, 1Collision strategic partners presented on topical industry issues. Enterprise representatives Tristina Egloff, business solutions manager in the Enterprise Replacement & Leisure Division, and Andi Dachel, director of sales and business development at Entegral, were also available to answer questions about Entegral services.

Dan Risley, vice president of quality repair and market development for CCC Intelligent Solutions, talked about the future of CCC and technology.

“As Advanced Driver Assistance Systems (ADAS) continue to evolve and become more commonplace, industry trends are materializing surrounding scanning and calibrations,” said Risley.

Risley talked about the root causes of these emerging behaviors, how they can affect business, and solutions to help shops owners and manager better manage their collision repair facilities.

As the national account executive at PartsTrader, Mark Adler has been working at the company for 10 years, focused on helping shops/

MSOs increase gross profit on parts and improve the parts procurement process. Adler shared tips with conference attendees on how to increase gross profit with the parts procurement process. He also discussed the results from 1Collision’s pilot program and how locations have improved their bottom-line.

Bob Stansfield, senior manager, field operations, Collision Repair Network (CRN) for OEConnection (OEC), discussed the importance of ensuring quality and safety and the significance of OEM certification in the collision repair industry.

“It indicates that a repair facility meets certain standards and has the necessary equipment, tools and training to repair vehicles properly,” he noted.

OEC Director of Collision Sales Nicky Woerner provided an overview of current and future trends, including the inefficiencies and confusion they create for repairers. Woerner educated shops on what it takes to get to a predictable outcome and how OEC is committed to helping solve the complexity of repairs.

Keynote speaker Mike Jones, founder and president of Discover Leadership Training, finished the event with messages centered around leadership.

Jones encouraged attendees to get out of their comfort zone yet realize that failure must be an option.

“The person who truly perseveres is the one who got up, dusted himself off and got into the game and went for it again,” he said.

“Meeting everyone at the summit, along with all the information, speakers and I-CAR tour, was very worthwhile,” said Greg Anderson from Crossroads Collision in Salina, KS. “My team and I walked away with a new, invigorating drive to be the best we can be at what we do,” added Ernie De Loera from Collision Service Center in Schaumburg, IL. Moser, who received the Growth Award, said going to the I-CAR facility was “awesome.”

“We were able to see what they are up to and learn about some of the new products they are working on,” he shared. “It was great to see that they were doing testing on aftermarket scanners to see if they could pass OEM standards, which would help the body shops a ton.”

Moser said he was able to learn from all the presenters who spoke.

“Best of all, it was about the people meeting one another and learning from each other,” he said.

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Crash Champions Restores, Donates Vehicle To Nashville Children’s Home The Crash Champions Collision Repair Team recently took part in a National Auto Body Council (NABC) Recycled Rides® giveaway in Nashville, TN, benefiting the Palmer Home for Children.

The ceremonial giveaway took place June 22, and was made possible by the volunteer efforts of dedicated collision repair technicians from Crash Champions’ Downtown Nashville repair center. As an active supporter of the NABC Recycled Rides program, Crash Champions has restored and donated more than 10 vehicles in 2023.

“This is yet another opportunity for local Crash Champions team members to step up and make a tangible difference in our communities,” said Crash Champions founder and CEO Matt Ebert. “We’re honored and proud to join hands with the Palmer Home for Children by restoring and donating this vehicle to advance their important mission in the

Nashville area.”

The Palmer Home for Children is dedicated to providing restorative environments that support health and nurture resilience for children in critical situations.

Crash Champions is a Level One partner with the NABC, and regularly partners with the organization to restore and donate vehicles through the Recycled Rides program. In 2022, Crash Champions team

members from across the country collectively volunteered to restore and donate more than 50 vehicles to deserving families, single mothers and military veterans in need.

NABC Recycled Rides is a transformative program that brings together several areas of the automotive collision repair industry in pursuit of restoring and donating vehicles to individuals and families in need of reliable transportation.

Since the inception of the NABC Recycled Rides program in 2007, members of the NABC have donated more than 3,000 vehicles valued at $42 million.

Crash Champions is a leading provider of high-quality collision repair service, serving customers and business partners at more than 600 repair centers across 36 states.

Source: Crash Champions

Progressive Using Mitchell Estimating Platform Mitchell, an Enlyte company, on July 11 announced Progressive Insurance has implemented Mitchell Cloud Estimating TruckMax to help better manage appraisals of collision-damaged light-, mediumand heavy-duty trucks.

The carrier first selected Mitchell’s cloud-based estimating solution in 2019 for claims involving personal autos and motorcycles.

Available in the U.S. and Canada, Mitchell Cloud Estimating TruckMax makes it possible for insurers and collision repairers to write estimates on the most common commercial trucks on the road today. It includes more than 57,000 unique configurations for medium- and heavy-duty trucks along with lightduty trucks and vans.

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Mike Anderson — From the Desk of Mike Anderson

Creating an Extraordinary Customer Experience Before, During and After Collision Repairs In my July 2023 column, I shared part of a conversation I had with one of my teammates at Collision Advice, Sheryl Driggers, about what she sees it takes to create an extraordinary customer experience at your auto body shop.

The customer experience is about more than just “customer service.” Those are individual moments, but are only part of the customer’s overall experience of interacting with your brand start to finish, not just during the time spent interacting with your employees.

Our conversation was based on our belief that customers won’t really notice a “normal” experience with your shop, only an “extraordinary” one. Here’s more of what Sheryl and I discussed.

Sheryl Driggers of Collision Advice.

Mike: Sheryl, we talked previously about what goes into creating an extraordinary customer experience prior to them even arriving at the shop. Now let’s talk more about what else needs to happen prior to repairs.

Sheryl: Sure. So once we have the customer in front of us, in our office, how do we communicate the value of choosing our shop? No one likes to go somewhere and be “sold.” No one wants that pushy, aggressive salesperson just trying to sell them something. So I always say: We don’t have to sell; we just have to communicate the value of our shop to customers.

As I’d mentioned, talk about the shop certifications you have, and why that certification matters to them. Show not just that you have advanced training and equipment to repair the vehicle back to when it was when it was manufactured, but also explain how that helps maintain the vehicle warranty.

Mike: What else should go on during that conversation?

Sheryl: Talk to the customer about being their advocate throughout the claims and repair process. Give them a designated person to be able to contact. At our shops, we designated a person who was the contact for each customer, the one responsible for contacting that customer every other business day.

The customer had that person’s email address and cell phone numbers so they could call or text if they had questions in between those updates.

Another one of the most important things that I think that shops often do not communicate clearly is the value of their shop’s warranty. Early on, talk about what that warranty includes, what that means for the customer. Often you hear insurance companies talk customers into going to their preferred network or their DRP shop because of the warranty. So it’s important that shops talk about their warranty early on, and explain even in that first in-person repair consultation what it means to the customer.

Mike: So after that is it just about fixing the car correctly?

Sheryl: No, there’s more to it. We want to treat customers as if they are our VIPs, so when we give them that extraordinary experience, they then become brand evangelists.

Sure, you have to fix the car the way that the manufacturer says it should to be fixed, using the repair guidelines from the manufacturer.

But you’re supposed to do that. So that’s average. That’s normal.

You have to look for opportunities to be extraordinary. You have to look for opportunities to be generous with your customers, to do things that they do not expect. Maybe the customer’s car has a scratch on the other side of the vehicle that you are able to buff out. When you are generous with the customer, you help create an extraordinary experience.

Mike: What else do you see going into that process?

8 AUGUST 2023 AUTOBODY NEWS / autobodynews.com

Sheryl: Well, one of the most important things that we can do with that customer during repair is always overcommunicate. Mike, you wrote a column once citing that quote from author Jon Gordon who said, “Where there is a void in communication, negativity will fill it.” So communicate to avoid those voids, even from the beginning, through the disassembly phase, through writing a complete repair plan. Keep the customer informed on what is going on. Even if you’re waiting for someone else—maybe on the bill payer to approve a supplement—make sure that the customer is in the loop during the entire process.

And you have to be responsive.

We have to respond to the customer quicker than they expect. One of the things we asked our customer service team at our shops to do was to always have the customer updates done before 10 a.m. Because if a customer is expecting a phone call from you today, if they don’t hear from you before lunch, they’ll automatically assume you’re not going to call. So it’s important to always respond quicker than they expect.

Mike: So does that bring us to the vehicle delivery process after repairs?

Sheryl: That’s right. We’ve got to finish strong. And so one of the things that we did was we set up delivery appointments in order to make sure we were prepared and had the time we needed to spend with that customer. The first thing that we did at the delivery

appointment was review the repairs with the customer at the car. We were proud of the work that we did.

We weren’t trying to hide anything.

So we reviewed the repairs with the customer, while at the same time talked again about the warranty.

We talked about the CSI survey that they’d be receiving in a couple of days, stressing that we value their feedback. And then after all of that is done, that is at the point where we will collect any kind of payment or insurance check that we needed from the customer.

Mike: Is there more about the payment process that can help create an extraordinary customer experience?

Sheryl: Yes, we would send the customer the final bill electronically, and offer them the option to pay electronically if they wanted. We could send them a link before they even showed up at the shop for the delivery appointment to take care of that, if they wanted. Some people want to do everything on paper, while others want to do everything electronically. So giving customers options is important.

Mike: Sheryl, I can’t thank you enough for sharing your expertise with me on creating an extraordinary customer experience—so that I can share it with the readers of my column. I’m proud to work with you.

So, readers, what goes into creating an out-of-the-ordinary experience for the customers at your shop? I’d really love to hear your ideas. Shoot me an email at mike@ collisionadvice.com!

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autobodynews.com / AUTOBODY NEWS AUGUST 2023 9

PartsTrader Webinar Examines Trends in Collision Parts Delays, Pricing

By John Yoswick Autobody News

PartsTrader data indicates parts delays have eased over the past 12 months, the company reported in a recent webinar. Across all part types—OEM, non-OEM, used and reconditioned—the median delivery time has been steady across the past year at just above one day, according to Greg Horn, chief innovation officer for PartsTrader.

But if nine out of 10 parts needed for a job typically all arrive promptly, Horn said, it’s the outlier that tells more of the story.

per non-OEM part had been trending below OEM parts until the fourth quarter of last year, when the average price of the two types converged because non-OEM parts prices had increased faster (about 9.4%) than OEM since the end of 2021. The average OEM part in May was just $3 more than the average non-OEM part.

But Horn also noted those comparisons include all parts that the OEMs produce, including lower-cost parts such as clips and emblems that non-OEM parts manufacturers don’t offer.

So he ran the same data looking

PartsTrader data shows the average price per non-OEM part had been trending below OEM parts until the fourth quarter of last year, when the average price of the two types converged because non-OEM parts prices had risen faster than OEM

“Averaging dilutes the impact of that one part out of 10 that is significantly delayed,” he said. “By looking at the median plus two standard deviations, you capture 95% of the population.”

That number stood at 11.9 days in May, according to PartsTrader data, Horn said. That’s down significantly from 13.3 days in January, and from 14.7 days in mid-2022—even if it remains higher than the 7.4 days in the first quarter of 2021.

“It’s a good sign that we’re returning toward more on-time deliveries, fewer back-ordered parts,” Horn said.

Part Price Inflation Trends Horn also shared some PartsTrader data on parts price inflation. The average cost per recycled part in May was $325, up 6.2% from the end of 2022, and up 12.8% from the average ($288) at the end of 2021.

Interestingly, the rise in new OEM parts and non-OEM parts has been significantly lower—and by one measure, the average price of the two types of parts is virtually identical.

The average price per new OEM part in May ($189) was up just 3.2% from the end of 2021. The average price

only at top volume parts—bumpers, doors, fenders, lamps and hoods— often available in both OEM and non-OEM versions. That comparison shows both a significantly larger difference in average part price between OEM ($534 as of May) and non-OEM ($316), and more of a difference in parts price inflation between the two.

The average price for those highvolume OEM parts is up 16.8% since the end of 2020, including increases in 2021 (4.8%), 2022 (7.7%) and in the first five months of this year (3.5%). By comparison, the average of those types of non-OEM part price rose sharply (25%) from the end of 2020 until the end of 2022— but has remained basically flat this year.

Industry consultant Terry Fortner, who participated in the webinar with Horn, said that change is likely due to increased cargo costs to import non-OEM parts during the worst of the supply chain issues, which have eased more recently.

last year. He pointed to the rapidly increasing number of EV models available, from fewer than 50 in 2021 to 125 or more this year, and more than 150 by 2026.

“It’s a good sign that we’re returning toward more on-time deliveries, fewer backordered parts.”

— GREG HORN

CHIEF INNOVATION OFFICER FOR PARTSTRADER

“Mercedes-Benz alone launched seven new models of full EVs,” Horn said. “You see price reductions from Tesla. You see more and more vehicle types. So now the share of EVs in the U.S. car [fleet] is 3.69 million. That’s roughly about 1%.”

By 2030, EVs are expected to account for 28% of new car sales, and 8% of the U.S. vehicle population.

A 2022 study by European insurer AXA found EVs in that market are involved in 50% more traffic accidents than internal combustion passenger vehicles.

“But think about how fast EVs are,” Fortner said on the webinar.

“If you own a Tesla or have driven one, they are rocket ships. And

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If you think about the owners of electric vehicles, if you look at the demographics, they are generally in cities, highly-populated areas. The density creates more likelihood of accidents as opposed to being in the countryside.”

Horn said the weight of EVs is likely to cause more damage than lighter vehicles in crashes. While the average passenger car is about 3,700 pounds, he said, the Ford Mustang Mach-E, Hyundai IONIQ 5 and Tesla Model 3 are more than 4,600 pounds, the Rivian R1T is 7,148 pounds, and the Hummer EV is more than 9,000 pounds.

“That’s quite a fulcrum when it hits another car,” Horn said.

He also shared photos found on social media of what appears to be a light hit involving a Toyota rearending a Rivian R1T. “It looks like it was just an impacted rear bumper,” Horn said. “But [the owner] took it to a certified Rivian shop—you can see a full teardown here, including removing the entire bed—and they came up with $42,000. The initial estimate that was done with photo-based estimating… was $1,600. The insurance triaging seems to have missed the mark by a bit.”

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autobodynews.com / AUTOBODY NEWS AUGUST 2023 11

CARSTAR South Thornton in GA Celebrates White Christmas in July All the stockings were hung by the chimney with care, in hopes that St. Nicholas soon would be there. But Jamie White, owner of four CARSTAR collision repair facilities in northeast Georgia, got a lump of coal instead.

On Christmas Eve, just as White was preparing to celebrate the holiday with his family, he got a call from the fire department that his sprinkler system had been activated at his CARSTAR South Thornton location. White sprang into action, donning his cap and heading to see what the clatter was all about.

Dalton, GA, was in the middle of an unseasonable deep freeze, and the pipes supplying White’s sprinkler system burst, dumping a massive water flow of more than 6 inches in an hour throughout his lobby and office areas.

The building, which was the original Ford dealership in Dalton, had a solid foundation, so damage was fortunately limited to the inside.

“I was in shock,” said White. “The fire department got there quickly and got the water turned off and I was right behind them. My family and our team members started showing up shortly after. We had my dad, our lead estimator, our administrator and several others who heard about it on our small-

town grapevine and came to help on Christmas Eve.” The damage was unbelievable, White said. The ceiling, floors, furniture, office equipment and files were all ruined. White and his band of Christmas Eve elves did what they

“There was nothing else we could do but go home and focus on Christmas with our families,” he said. “I started putting a plan in place to get us up and working in the short term and renovate our building to be better than ever over the coming months.”

could to salvage items and mop up all the water. He reached out to his local insurance agent, who provided all the steps he needed to follow, and filed a claim on his garage keepers policy with Travelers.

White was prepared for just such an accident, learning from his friend and fellow CARSTAR owner Tom Martin, who had a massive fire at one of his CARSTAR locations in Ohio several years ago.

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“Tom’s experience taught me an important lesson—don’t ever think it won’t happen to you, because it can,” said White. “I made an effort to get organized, document everything and have a plan just in case we had a disaster. And when it did happen, we were as ready as we could be.”

White outlined several key steps in getting prepared for a flood, fire or other natural disaster—before it happens: Understand the value of your insurance coverage. Know what is and isn’t covered and increase your policy to ensure you’re protected.

Conduct an audit of all your equipment, furnishings and materials.

Record every serial number, purchase information and warranty details in a safe place.

Back up your technology regularly so you always have a digital record of your business, banking, tax information and customer files.

Conduct a cost analysis of your assets and what it will take to replace them, then create a fund to cover such emergencies.

Once the water dried, White and his team went to work to get the business running again. Fortunately, there was no damage in the production areas, so they only had to focus on the office space.

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“We relocated our parts department to our production area so we could keep repairs in process,” said White.

“The production area isn’t heated, so our parts team put up with being chilly for a few months but never lost their focus on getting the job done. Then, we got a mobile shipping container that was outfitted as an office, and our customer service team, estimators and managers all piled in there. We went from about 5,000 square feet of space to about 300 square feet. It was cramped, but our staff was absolutely amazing and soldiered on to keep serving our customers.”

White noted that building back provided an opportunity to modernize the facility and make better use of the space. He opened up the waiting room to make it more spacious and relaxing for customers, added private cubicles where they could meet with estimators and discuss their repairs, created a training room for his team, and designed the offices and work stations for more efficient flow and communications.

Now, six months later, White is

reopening his facility renovated and ready to serve his customers. He credits his local insurance agent and Travelers with helping him navigate the flood waters.

He has had some time to reflect on the experience, and shared these tips for anyone facing the same situation: Keep your operation lean. Get rid of things you don’t need along the way.

Be patient and follow the process.

You can’t rush the steps you need to go through and you can’t let your frustration impact your team.

Enlist your family and friends in helping rebuild together. They will be more vested in the outcome if they are part of the repair planning.

Don’t think it won’t happen to you.

Be prepared and have a plan in place when it does.

So after the shock of the flood on Christmas Eve, White made it home for dinner and Santa arrived as scheduled for Christmas morning. It was a White Christmas after all.

l CONTINUED FROM COVER

Transaction Price Record of Governors Award and Toyota President’s Award.

MAG, led by Larry Morgan and son Brett Morgan, is a privately held group that ranks No. 8 on the Automotive News list of Top 150 Dealership Groups. MAG is the largest dealership group in Florida.

“I always knew I wanted to be in business with my dad, and I am so incredibly fortunate to have had the opportunity to spend the last 30+ years working with and learning from him,” said Hendrickson. “There have been many changes in automotive retail, but the principles of hard work and commitment to our associates, customers and communities we serve have been the backbone of our success. To say that I am extremely proud of what we have built together is an understatement. It is truly more than I could have ever dreamed. I have loved every minute of these 30+ years.

“Making the decision to sell has been an emotional, but also exciting, time for me and my family,” Hendrickson continued. “Initially, we considered potentially expanding, but given the explosive popularity of Florida and Toyota, we were

Source: CARSTAR

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intrigued to know the current value of the business.

“Thank you to all of you who have helped grow Al Hendrickson Toyota into one of the best-known names in the state of Florida and nationwide,” Hendrickson concluded. “And I give my sincere congratulations to Larry Morgan, Brett Morgan and the team at Morgan Automotive Group on bringing our family business into theirs.”

“We are immensely grateful to Al Hendrickson and his team for their outstanding partnership throughout this transaction,” said Larry Morgan, president and CEO of MAG. “Working with Al has been an absolute pleasure, and his dedicated staff has shown tremendous professionalism and excellence. We are excited about the future and eager to elevate the store to new heights with the support of their exceptional team and store leadership. Together, we are poised for success and look forward to the opportunities ahead. We also extend our appreciation to Haig Partners for their expertise and thoroughness, making the entire transaction a seamless and pleasant experience.”

The team at Haig Partners has been involved in the purchase or sale of 90 dealerships in Florida, making it, by far, the most experienced buy-sell advisory firm in the industry.

Source: Haig Partners LLC

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WWW.NYNAB.COM autobodynews.com / AUTOBODY NEWS AUGUST 2023 13

CIC Speakers Focus on Collision Industry Preparedness For EVs

By John Yoswick Autobody News

Back in 2019, when Jeff Peevy was chairman of the Collision Industry Conference (CIC), he started placing an empty chair on the stage as a reminder to attendees of an important industry constituent not generally represented at the meetings: the consumer.

“Those families who ride in the cars that our industry repairs should be at the forefront of our thoughts,” Peevy said at one CIC meeting that year.

Now the vice president of technical products, programs and services for I-CAR, Peevy said the lack of interest he sees in getting technicians trained to work on electric vehicles (EVs) has him concerned for more than just consumers.

“I see our industry standing on the tracks looking at a freight train coming full speed at us, and we’re just staring at the light,” Peevy said

Mark Quarto said collision shops need to develop a good intake system for electric vehicles

from the floor of CIC this spring.

“When we look at the number of those in the industry—regardless of whether it’s repairers or insurers— who have expressed any interest in educating themselves on EVs, it’s shameful, to be honest with you.

I think we’re going to need to put another chair up there [on the CIC stage] to represent those who are involved in the repair of electric vehicles, because I’m not sure the technicians and those laying hands on the vehicles have any idea of the danger they are being put in.

“My question is: How many shops are going to turn an EV away when they see it as a job they can do? Yet they may have no idea what they are getting into. I think as an industry we need to search our soul, and become honest about getting educated.”

One MSO’s EV Approach Employee safety was cited as a key

reason that even the country’s largest multi-shop operation is taking a conservative approach to gearing up for EV repair. Jeff Brewer, director of EV strategies and OEM certifications for Caliber Collision, said as of this spring, just 21 of the company’s more than 1,700 locations were specifically trained and equipped for EV repair.

“Of those, there’s a few that that’s all they work on,” Brewer said at CIC. “We’re still drinking from the fire hose.

We started two years ago and there’s still much we don’t know. It’s really evolving. We have a lot of strategic partners—fleet accounts, insurance accounts or OEM accounts—that would like to see us tool up quicker.

We just can’t. We’re taking a very conservative slow approach to it, first and foremost focused on employee safety.”

Space is another consideration, he said. Go to your shop’s back lot, he suggested, and map out the 50 feet of space you’ll need around an EV towed in with significant damage that needs to be quarantined.

“But at the end of the day, it is manageable, it is doable,” Brewer said. “And we don’t really have a choice. I will tell you, when you get to the point—and I imagine a lot of you are already there—that you hang a sign up that says you’re EVready, get ready, because you will be swamped. It’s less than 20% of the industry that’s really proactively going after this, creating the solutions.”

He said with past vehicle technologies, the industry had the luxury of a slow roll-out, a tendency to “fake it until you make it.” He pointed to vehicle scanning as an example of a technology the industry was able to adapt to over time. EV repair is not like that, he said.

“This is not a technology that we can slow roll,” he said. “Our company has decided this is not a situation where we can just teach the average collision repair technician another trick.”

Like it or not, he said, EV repair requires a collision repair business “to very quickly be in the mechanical business.” He said this is particularly true for those working with new EV entrant automakers, such as Rivian and Lucid, which require certified body shops to be “full service” in terms of both body and mechanical repair.

“Eighty percent of the industry still doesn’t get that,” Brewer said.

Careful Diagnosis Needed That need for expansion beyond traditional body and paint work was

14 AUGUST 2023 AUTOBODY NEWS / autobodynews.com

echoed by another speaker at CIC, Mark Quarto of Quarto Technical Services. Earlier in his career, Quarto spent 28 years with General Motors developing propulsion and battery pack systems. He said particularly

“My question is: How many shops are going to turn an EV away when they see it as a job they can do? Yet they may have no idea what they are getting into.”

— JEFF PEEVY

VICE PRESIDENT OF TECHNICAL PRODUCTS, PROGRAMS AND SERVICES FOR I-CAR

with electric vehicles, collision repair businesses will need a thorough intake system that includes looking at more than basic scans and diagnostic trouble codes.

“That data is good, but there are some situations which there won’t be a trouble code but there’s going to be something that’s nearing failure,” Quarto said at CIC. “Sometimes knitting some of the data together helps someone to know how close something is to a failure. So knowing what data to look at, how

a scope can be used to detect lithium-ion battery off-gassing that cannot be seen with the naked eye in addition to ongoing temperature scans to determine if there is an upward trend. A four-gas meter should also be used within 4 feet of the EV to detect carbon monoxide and hydrogen.

Zartman said fire codes “are never going to catch up with how fast this industry is evolving,” so shops may not be able to get a lot of helpful guidance from fire marshals about how to set up space for EV repair or storage. Insurance underwriters may be a better resource, he suggested.

“I would encourage you to look at the spaces where you are operating on the vehicles and have really strong protocols for rapid removal of vehicles,” he said. “If a vehicle starts going through a thermal runaway, have a practiced, planned process in place about how you protect your personnel, and how to remove the fuel source from the building.”

He also recommended making wherever EV batteries are stored “very fire resistant” and isolated from the rest of a shop’s structures.

“Because the reality of every sprinkler system on the planet is it’s going to be designed to protect the building but it is not going to put out a battery fire if you have one and have multiple battery packs in a space,” Zartman said. “You will lose all the contents of that room.”

Importance of Billing Consistently

Dalan Zartman said shops should perform more than just a single thermal image scan of electric vehicles in for repair

to look at it, and how to knit some of that together can be helpful. I know in the collision industry, the high voltage electrical stuff especially has not been in the DNA. But it’s going to have to be. You’re going to have to evolve into it.”

Dalan Zartman of the Energy Security Agency said a single thermal image scan of an EV is often insufficient to determine if the battery pack is experiencing thermal runaway. There is often too much between the outer layer of the battery pack enclosure being scanned and the actual battery cells, he said.

A thermal imaging camera with

As at every CIC, the agenda included a variety of topics. During one panel discussion for example, a shop owner discussed seeing differences in what some insurance companies will pay for versus other companies. Ohio attorney Erica Eversman offered a caution about billing consistently no matter who is paying for the vehicle repairs.

“If you have a good company, so to speak, that pays, you want to keep that good company paying well,” Eversman said. “They need to see that you are always demanding the same thing no matter who the carrier is.

Because they’re going to be looking at documents in subrogation,” and you don’t want them to see, “Oh, well, you charged us for this but you didn’t charge that other insurance carrier for that.”

Apply the same business and billing practices across all customers, irrespective of whether the job is self-paid or paid for by any insurer, Eversman suggested.

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l CONTINUED FROM COVER

Right To Repair last because it anticipates changes in automotive technologies and market evolutions.”

The signers of the pact said the agreement addresses independent repair facilities’ access to diagnostic and repair information, including telematics data needed to diagnose and repair a vehicle if not otherwise available, for all vehicle technologies and powertrains, including gasoline, diesel, fuel cell, electric battery, hybrid and plug-in hybrid electric powertrains.

The pact also includes a pledge to work together on education and training programs so independent repairers know where and how to obtain repair information, and a forum to discuss future repairer needs as they develop with emerging technologies.

In a press release announcing the pact, SCRS said, “As state legislatures and Congress consider automotive right to repair laws, including the REPAIR Act, the parties noted: ‘…independent repairers and automakers are not at odds on automotive data access, but rather in lockstep on this fundamental principle: consumers should have

choice when it comes to repair options and the ability to have their vehicle serviced in well-equipped shops by well-trained technicians anytime, anywhere, anyplace.’”

“ASA has been a steadfast advocate for the right of independent repair shops to vehicle service information since before the 2002 service information agreement it signed with automakers,” — SCOTT BENEVIDEZ

ASA BOARD CHAIRMAN AND OWNER OF MR. B’S PAINT & BODY SHOP INC

However, in its own press release objecting to the pact, ACA said the agreement is not only designed to create confusion, but also has numerous flaws, including the fact it is non-binding and there is no way to force OEM participation or compliance; it does not cover all automakers (e.g. Tesla) and there is no requirement for new OEMs to join; it does not obligate OEMs to provide direct access to telematically generated repair and maintenance data—rather the OEMs have agreed to make data available through OEM controlled systems and tools; the

OEMs only agree to give access if the data “is not otherwise available” through the OBDII port, meaning a shop could be forced to subscribe to multiple third-party tools to get access; and it fails to address the safety and security of the wirelessly transmitted vehicle data.

The REPAIR Act is a comprehensive and critical piece of federal legislation that preserves competition, affordability, accessibility and a vibrant supply chain, ACA said.

“ASA has been a steadfast advocate for the right of independent repair shops to vehicle service information since before the 2002 service information agreement it signed with automakers,” said Scott Benevidez, ASA Board chairman and owner of Mr. B’s Paint & Body Shop Inc. in Albuquerque, NM. “Since then, the cars Americans rely on have become increasingly sophisticated, and the rate of innovation will only accelerate. The way vehicle issues are diagnosed and repaired evolves in tandem with advancement.

“ASA is proud to have reached this new agreement with automakers because it ensures ASA members can diagnose and repair their customers’ vehicles without hinderance from telematics nor any other innovation,” Benevidez said. “Most importantly, it maintains a competitive repair market

that yields the highest quality safety outcomes at a fair price for drivers.”

“While it is welcome news that the auto manufacturing industry acknowledges that ‘consumers deserve access to safe and proper repairs throughout a vehicle’s lifecycle,’ today’s letter... is nothing more than lip service and regurgitated platitudes,” said CAR Coalition Executive Director Justin Rzepka. “This pact masquerades as pro-consumer but, in reality, does nothing to expand consumer choices and give a vehicle owner access to repair data.

“Any new agreement touted in the letter is entirely unenforceable and nothing more than window dressing,” Rzepka continued. “This letter and agreement should be seen for what they really are---an attempt to prevent Congress from advancing consumerfocused legislation like the SMART and REPAIR Acts that would break the monopoly on auto parts and protect consumers’ rights to repair options and data access. The CAR Coalition remains committed to pursuing these bipartisan bills in order to put consumers, not auto manufacturers, in the driver’s seat when it comes to vehicle repair.”

Source: SCRS, Auto Care Association, CAR Coalition

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16 AUGUST 2023 AUTOBODY NEWS / autobodynews.com

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States Enact Legislation Related to OEM Procedures, Labor Rate Studies

By John Yoswick Autobody News

With this year’s legislative session wrapping up in many states, here’s a round-up of some the new laws impacting the collision repair industry.

fail to agree on the amount of a loss.

Rhode Island lawmakers also passed a bill (H 6027) requiring insurers covering a claim in which the insured’s vehicle is a total loss to extend rental car coverage for an additional week after the insured receives the total loss payout. That law became effective without the governor’s signature.

Texas Gov. Greg Abbott signed into law legislation (HB 3297) eliminating that state’s vehicle safety inspections for non-commercial vehicles as of Jan. 1, 2025.

Rhode Island Gov. Daniel McKee signed into law legislation (S 925) making it an unfair claims practice for an insurer to refuse to compensate a shop for “documented procedures identified as necessary by the original equipment manufacturer [or] paint manufacturer… when requested by the repairer.”

The new law also limits what insurers can negotiate if they fail to meet the existing state requirement to perform supplemental reviews within four business days after requested by a body shop, and adds an appraisal provision into state law, spelling out the process if a consumer and insurer

Vermont Just prior to the close of the legislative session, an amendment tacked onto a 122-page otherwise-unrelated bill (S 95) calls for the state’s commissioner of financial regulation to conduct a study of collision repair labor rates, “the use of aftermarket parts, [and] market conditions,” making a report of findings and recommendations”

by November 2024.

The bill, signed into law May 31 by Gov. Phil Scott, said the study should look at labor rates in surrounding states as well, and determine whether Vermont should establish a minimum labor rate. It is to examine “the extent

to which an automobile insurance company controls or influences repair work done” for customers at body shops, and the impact of direct repair programs on both shops and consumers.

Florida Gov. Ron DeSantis in June signed into law a bill (SB 7052) that gives state regulators there greater authority to investigate insurance companies and levy heavier fines for misconduct.

He also signed into law a bill (SB 1002) that prohibits a policyholder from entering into an assignment of proceeds agreement for an auto glass claim under a policy issued after July 1.

Oregon Lawmakers passed a bill (SB 256) that prohibits the manufacture, sale or installation of any counterfeit supplemental restraint system, or the installation of any part or device that prevents a vehicle from failing to warn the driver that the airbag system is not functional.

Maryland Gov. Wes Moore signed into law legislation (HB 920) that prohibits an insurer from steering a glass claim to a particular vendor, and requires

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those repairing or replacing glass on a vehicle equipped with ADAS to inform the customer if a recalibration is required and has been performed to meet OEM specifications.

Virginia Carrying auto insurance is no longer optional in Virginia under legislation (SB 951) signed into law by Gov. Glenn Youngkin; drivers previously could pay a $500 fee to register a vehicle without insurance, but that option is now repealed.

Maine Both chambers of the legislature passed a bill (LD 1661) that mandates that liability insurance policies cover the costs of towing and storage of certain vehicles.

Minnesota, Arkansas and New Mexico Minnesota Gov. Tim Walz signed into law legislation (HF 30) increasing the record-keeping requirements for scrap metal dealers purchasing a detached catalytic converter. Similarly, Arkansas Gov. Sarah Huckabee Sanders signed into law an Arkansas bill (HB 1365) aimed at curbing catalytic converter theft, as did New Mexico Gov. Michelle Lujan Grisham (SB 133).

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l CONTINUED FROM COVER

Trade School Programs Some might rev their engines and do a few laps around the mostly clear lot first, but they all eventually take a right toward the garage.

There, as the sun begins to set on a 70-degree February day, the students in the auto collision repair night class are preparing to spend the next five hours studying.

One is sanding the seal off the bed of his 1989 Ford F-350, preparing to repaint. Another, in his first trimester, is patiently hammering out a bangedup fender, an assignment that may take him weeks. Another, who has strayed in from the welding shop, is trying to distract the guys in the program he graduated from months before.

Some others linger around a metal picnic table in the parking lot, sipping cool sugary drinks and poking fun at each other’s projects. Among them is 26-year-old Cheven Jones, taking a break from working on his 2003 Lexus IS 300.

While almost every sector of higher education is seeing fewer students registering for classes, many trade school programs are booming.

Jones and his classmates, seeking certificates and other short-term credentials, not associate degrees, are part of that upswing.

Mechanic and repair trade programs saw an enrollment increase of 11.5% from spring 2021 to 2022, according to the National Student Clearinghouse. Enrollment in construction trades courses increased by 19.3%, while culinary program enrollment increased 12.7%, according to the Clearinghouse.

Meanwhile, enrollment at public two-year colleges declined 7.8%, and enrollment at public four-year institutions dropped by 3.4%, according to the Clearinghouse.

Many young people who are choosing trade school over a traditional four-year degree say that they are doing so because it’s much more affordable and they see a more obvious path to a job.

“These kids are looking for relevance. They want to be able to connect what they’re learning with what happens next,” said Jean Eddy, president of American Student Assistance, a nonprofit dedicated to helping students make informed choices about their educations and careers. (ASA is one of the many funders of The Hechinger Report, which produced this story.) “I think many, many families and certainly the majority of young people today are questioning the return on investment for higher education.”

Eddy said the increased interest in the trades doesn’t necessarily mean these students won’t later go on to earn a bachelor’s degree, but “simply means that they are excited, and they’re more interested in getting into something where they can feel as though they are applying their skills and their talents to something that they can be good at.”

TCAT is a network of 24 colleges across the state that offers training for 70 occupations. TCAT Nashville offers 16-month to twoyear courses including diesel and automotive technology and welding and construction technology, among others. Many of them have waiting lists, said Nathan Garrett, president of the college. To accommodate increased demand, the college has added night classes and is expanding shop space.

In Tennessee, the state’s overall community college enrollment took a hit during the pandemic, despite a 2015 state program that made community college tuition free.

Still, at TCAT, many trade programs have continued to grow despite the downward enrollment trend.

TCAT focuses on training students for jobs that are in demand in the region, which appeals to many students in normal times, but Garrett said the pandemic may have underscored the need for workforce relevance.

“When we look at ‘essential workers,’ a lot of those trades never saw a slowdown,” he said. “They still hired, they still have the need.”

Automotive trades are always in demand, he added.

Even so, Jones’s pursuit of a degree at TCAT Nashville would perhaps be a surprise to his high school self. “My parents just basically told me, ‘Finish high school and then just work,’ ” Jones said. “I didn’t necessarily know what I wanted to do, and my biggest fear was to go to college, put in all that time and effort and then not use my degree.”

So, at 18, Jones went to work in warehouses, spending long days loading and unloading heavy boxes from tractor-trailers. But he found it unfulfilling, it was terribly difficult on his body, and he wasn’t making enough money. After just a few years, he realized he needed a job that would make him happier, hurt him less and pay him more. Trade school for a career fixing cars, he decided, seemed like the best route.

Nineteen-year-old Robert Nivyayo’s priorities became clear a bit earlier in his education, when he realized he didn’t like high school very much.

He said he spent most of his free time watching YouTube videos about fixing up cars before he owned one or

18 AUGUST 2023 AUTOBODY NEWS / autobodynews.com

was even licensed to drive.

He started saving up the money he earned stocking shelves at a Publix grocery store. And around the time the pandemic hit, he bought a 2005 Mustang off Facebook Marketplace for $800 cash. It didn’t run, so he hired a tow truck to lug it to his parents’ house. He took the engine apart, outfitted it with a new head gasket and put it back together, all while his online high school classes played on his smartphone.

Nivyayo’s parents, who came to the U.S. from Tanzania in 2007, had long urged their children to go to college, he said. When he enrolled at TCAT Nashville to pursue training in auto collision repair, they were pleased: “As long as I’m going to college, that’s all they really care.”

The path made sense for him, because he could earn a credential while doing what he enjoyed, and without spending much time in the traditional classroom. He’s looking forward to the anticipated payoff, when he gets a job in an auto shop.

“I really enjoy just working on the body of the car and learning. Every new day, I just get more motivated,” Nivyayo said.

Austin Monchilov, the night class instructor, said the students are more invested in their projects if they’re working on something of their own.

After they pass the initial busted-up fender assignment, they’re free to work on their own cars, he said.

Until he finishes his studies and a job offer manifests, Nivyayo is spending his evenings in the garage, picking Monchilov’s brain and taking painstaking care of every square inch of the Mustang. Even when he’s done with it, when it’s running perfectly and the silver body is pristine, he said he could never sell it. It has meant too much to him to ever give it up.

Inside the building and just a few doors down, Abbey Carlson is in the welding studio, wearing jeans with holes burnt through them and a funny cap to protect her hair. She’s the only woman in the nighttime welding class, and among few women on this side of the TCAT campus. Though welcome to enroll in these courses, women tend to congregate on the other side of the campus, where the cosmetology and aesthetics technology programs are housed.

Carlson, now 24, had initially intended to attend a four-year college, but her plans were derailed by an addiction to alcohol. After dedicating herself to recovery, she decided she wasn’t entirely done with higher education.

“I knew I wanted to do a trade, but I couldn’t figure out which one,” Carlson said. “I’m a woman, I’m young

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and I’m decent looking, so the world is scary. Especially in fields with men.”

After researching her options, she concluded that welding would be the safest while also offering her the highest eventual earning potential, she said. So far, she’s enjoying her time at TCAT Nashville, and she feels respected and safe.

“I love it so much. I finally have hope for the future,” Carlson said. “Finally, I feel like I’m going to accomplish something in life.”

Still, it’s not easy. Before she reports to the welding shop each afternoon for five-hour stretches of studying, she spends her days waitressing at an upscale Italian restaurant in the city.

At a campus in Shelbyville, about 60 miles south of Nashville, Jesus Pedraza, 18, is making the best of his plan B. Pedraza thrived in high school and dreamed of studying electrical engineering at the University of Tennessee in Knoxville. But when his mother started having medical challenges last year, he decided to stay in Shelbyville with her.

His high school was so close to TCAT Shelbyville that the students sometimes walked over to eat breakfast in its cafeteria; the teachers and administrators at the high school encouraged the students to consider

applying there after graduation.

After graduating from high school last spring, Pedraza enrolled in TCAT’s electrician training program.

The courses equip students to work in residential, commercial or industrial settings; the curriculum is among several at TCAT Shelbyville that are seeing an increase in demand, said Laura Monks, president of the college. To accommodate all the interested people, she said they offer both day and night courses and dual enrollment for students from nearby high schools.

Now, Pedraza studies from 7:45 a.m. to 2 p.m, and then reports to a local Walmart distribution center, where he works from 3 p.m. to midnight each day.

He said he enjoys what he is learning and likes the guys in his class.

But he still wonders what things may have been like at a four-year college.

“I would have loved the challenge of being in electrical engineering, you know, having to do all the schoolwork and just the idea of college life,” he said. “Sometimes I sit down, and I think how different it would have been if I was living in Knoxville right now. But at the end of the day, you know, it’s just the way life is. I mean, I wish I was also a millionaire, and I wish I drove two Lamborghinis. But it’s not the way it is.”

Monks said one of the things that makes TCAT appealing to students is the possibility that, toward the end of their program, they will be able to work in their desired field a few days a week while also getting credit toward their diploma, a system known as a “co-op” across the TCAT system.

For Brayden Johnson, 20, in his fifth trimester studying industrial maintenance automation, the co-op program has given him the chance to work as an electrical maintenance technician in a local factory that makes tubes for toothpaste. He’s working the night shift, which comes with a slight pay bump, and is earning about $26 per hour.

He hopes to stay in the job after he finishes at TCAT this spring, he said.

The same co-op opportunity is offered to some students at TCAT Nashville. Garrett said students generally are drawn to the hands-on design of the courses and the general philosophy that “You need to get your hands on the equipment, you need to start building stuff, breaking stuff and then learn how to fix that stuff.”

The opportunity to get real work experience before they graduate is an extra perk. The employer reports back to the student’s instructor so they know where the student is excelling and where they are struggling, and can work on those weaknesses on

the days when the student comes to campus, Garrett said.

Cheven Jones began studying auto collision repair in September, and said he has already made major progress, transforming his lifelong enthusiasm for cars into real, applicable skills.

And it’s showing on his Lexus, he said. So far, he’s fixed a dent in the hood, replaced an entire door and replaced part of the rocker panel (the long strip of metal under the doors).

The game plan, Jones said, is to transform his car by the time he graduates, and have fun while doing it.

“It’s school, and I take it seriously.

But you know, you come here, and it just feels more like you’re at a shop hanging out with your homies all day,” Jones said. “It’s a good feeling.”

After he graduates, he hopes to get a job in an auto body shop.

And he says he’ll keep working until someday he can afford a red 1982 Nissan Skyline R31, RS Turbo with bronze wheels—his dream car.

Even if he can’t get one in perfect condition, at least he’ll know how to fix it up.

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How To Use ‘Blue Sky Thinking’ To Bring Innovative Ideas Down To Earth

By Abby Andrews Autobody News

As automotive technology, like ADAS and electric vehicles, evolves at what feels like an unprecedented rate, it can be scary, but it’s also an opportunity to dream big.

That was the message in CEICA’s latest webinar June 29, “The Future Digital Landscape: Embracing Blue Sky Thinking,” with Chuck Olsen of AirPro Diagnostics.

“Blue sky thinking” is open-minded brainstorming—developing ideas and possible solutions that might seem untethered to reality at first, but could spark something that can be put into practice.

“Blue sky is much more than just an executive management

buzzword,” Olsen said. “A lot of cool stuff happens.

“Genuine blue sky thinking needs to be open to any avenues of thinking,” Olsen added. “It needs to break free from any limitations, to solve problems and how we can move forward.”

It can be done individually or in a group—the point is that ideas beget more ideas.

“You don’t want to rule out any solutions, no matter how infeasible it might seem,” Olsen said.

“One person might come up with a blue sky idea that’s completely impossible, but it might inspire another.

That’s where innovation takes place.

“Every idea is a good idea in your head—you need to say it out loud to get others’ feedback,” he said. “It might be a bad idea after all, but it could lead to another better idea.”

Olsen said the main drivers of innovation in any industry are safety, performance, economics and convenience.

In the automotive industry, those drivers have led to innovations like new sheet metals, adaptive

headlights, electronic fuel injection, air bags, seat belts, electric steering, remote start and cruise control.

Within the last few years, more ADAS features, electric and hydrogen power propulsion, and autonomous driving have been introduced or explored.

“All these [new] systems are dependent on things that happened before,” Olsen said. “As new ideas come into play, old ideas have to be accounted for, so we continue to build on them.

“Looking at those things and how we got there is important, so we can make solid decisions as we go forward,” he said.

The blue sky brainstorming stage is only the beginning, Olsen said.

The next step is bringing down an idea from the blue sky to the “green line,” where you start looking at how the idea might work—or not—with existing rules and regulations.

“This is where economics come in—is it feasible,” Olsen said. “As you bring [the idea] down to earth, you have to consider other factors.”

If the idea doesn’t work with current rules, Olsen said that isn’t necessarily a roadblock.

“It might be a chance to change

some rules,” he said. “The only consistency in a business is continued change. Same thing with technology.”

The third and final step is bringing the idea down to the “brown ground.”

“The brown ground is where things are happening,” Olsen said. “When it comes down to it, sometimes you don’t have permission to do what you want to do. Those limitations are discovered on the ground.”

As a recent example, Olsen said Tesla overcame the microchip shortage that began in 2020 by reprogramming firmware in its vehicles.

“I’m sure there were several meetings to come up with the ideas to make that happen,” he said.

Companies are developing advanced lidar, Level 5 autonomous driving technology, new air bags and holographic displays.

“These are things of scientific fiction but they’re coming into reality,” Olsen said. “We have to figure out how are we going to embrace this, as they will affect what happens in our shops, in claims and writing estimates.”

To watch a full replay of the webinar, visit www.cieca.com/MEETINGSEVENTS/ciecast-webinars.

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autobodynews.com / AUTOBODY NEWS AUGUST 2023 21

USAA Settles Georgia Class Action on Underpaid Taxes in Auto Claims

By Insurance Reports

Journal

Staff

A federal judge in Georgia has given preliminary approval to a $2.3 million settlement in a class-action lawsuit that charged USAA Casualty Insurance Co. with underpaying for taxes on totaled vehicles.

“The Court finds, subject to the final fairness hearing … that the settlement agreement is fundamentally fair, adequate and reasonable,” U.S. District Judge Leigh Martin May wrote in the order in June.

The final hearing has been scheduled for Dec. 13.

Some 9,000 Georgia policyholders joined the suit, one of several class actions around the country filed against USAA, State Farm, GEICO and other auto insurers. Lead plaintiff Jahazel Black, of McDounough, GA, argued in the 2021 complaint that in her case, USAA reimbursed only $49.25 to cover the ad valorem tax paid when Black purchased the vehicle.

That was well below the $345 that should have been paid under the actual cash value terms of the policy and under Georgia law, the plaintiff said.

Other plaintiffs in the class had similar underpayments, the complaint noted.

“The Court finds, subject to the final fairness hearing … that the settlement agreement is fundamentally fair, adequate and reasonable,” — LEIGH MARTIN MAY U.S. DISTRICT JUDGE

In its answer to the suit, USAA denied the allegations and said its ad valorem tax manual speaks for itself.

USAA also must pay almost $573,000 in attorney fees, the court ordered.

The suit is similar to others

that have alleged auto insurers have systematically underpaid taxes and fees to insured motorists, which amount to a few hundred dollars per plaintiff.

In August 2022, San Antoniobased USAA agreed to settle a class action suit in Mississippi, which held that the insurer had underpaid on hundreds of auto claims. The suit was handled by the same plaintiffs’ law firm that has led other class actions.

GEICO Insurance in 2022 also was the subject of a similar class action in Georgia. State Farm was sued in Illinois on similar grounds. State Farm in 2022 also settled a class action brought in Alabama, charging that the cost of labor on home repairs was depreciated, something not allowed by state law.

But a Massachusetts judge in June denied class certification in a lawsuit against Safety Insurance and Commerce Insurance, over the resale value of repaired vehicles.

USAA officials could not be reached for comment about the Georgia settlement.

CIF Announces Crash Champions As Annual Donor The Collision Industry Foundation (CIF) is delighted Crash Champions joined the CIF Annual Donor Program at the Urgent Care (second highest) tier.

Introduced in 2021, the Annual Donor Program was designed to bring needed recurring resources to the foundation, so it can deliver on its mission to “Answer the Call” when those in the industry have been impacted by catastrophic events such as wildfires, hurricanes and flooding. Learn more about the tax-deductible donations for the program at www. collisionindustryfoundation.org/ uploads/1/2/0/0/120099486/ cif_ad_order_form2023-0313.pdf For more than two decades through the generous support of corporations and individuals, CIF has been able to assist hundreds of collision repair professionals in need after disaster.

CIF is grateful for Crash Champions’ first time support of the Annual Donor Program.

Source: CIF

Volvo Adopts Tesla’s NACS Connector For EVs

By Joey Klender Teslarati

Volvo said June 27 it will adopt Tesla’s North American Charging Standard (NACS), opting to use the connector for its EVs, making Volvo the latest major automaker to do so.

Volvo will also gain access to 12,000 Tesla Supercharger locations across North America, just as Ford, General Motors and Rivian have by partnering with Tesla.

“As part of our journey to becoming fully electric by 2030, we want to make life with an electric car as easy as possible,” Volvo CEO Jim Rowan said.

“Today, with this agreement, we’re taking a major step to remove this threshold for Volvo drivers in the United States, Canada and Mexico.”

Volvo said it also expects the 12,000 Supercharger access figure to increase “as Tesla continues to expand its Supercharger network in the

region.”

Volvo will also provide an adapter for current EV owners that “wish to continue charging in the Combined Charging System (CCS) of chargers.”

Tesla first opened its Supercharger Network to Ford, announced jointly in May by Tesla CEO Elon Musk and Ford CEO Jim Farley. Soon thereafter, General Motors made the decision to adopt NACS, with Rivian following. Aptera, a solar EV company, adopted NACS before any other automaker.

Volvo drivers will gain access to Tesla Superchargers “from the first half of 2024,” the company said. Ford, GM and Rivian have all stated their customers will be able to access the Supercharger Network in the spring.

Earlier June 27, the Society of Automotive Engineers (SAE) announced it will make the Tesla NACS connector a standard and plans to initiate an expedited process to get it to that point.

22 AUGUST 2023 AUTOBODY NEWS / autobodynews.com

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autobodynews.com / AUTOBODY NEWS AUGUST 2023 23

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Richmond

800-446-0160 804-672-8811

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Wolfchase Honda Bartlett

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Dept. Hours: M-F 7-7 ekerr@wolfchasehonda.com VIRGINIA

Checkered Flag Honda Norfolk

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Honda and Acura Genuine Parts is an online ordering portal for repair facilities to order parts directly from the Honda/Acura Dealer(s) of their choice.

autobodynews.com / AUTOBODY NEWS AUGUST 2023 25

Stacey Phillips — Solving the Tech Shortage

Body Shop Owners Discuss Mentorship Programs Initiated with Support from Toby Chess This is part one of a two-part series.

Check out the September 2023 issue of Autobody News to read about more shops in the program.

Toby Chess recalls planning a collision repair training day for about 80 high school students in Hawthorne, CA, 25 years ago. Since then, he’s had a passion for training young people and bringing them into the collision industry.

OEM repair procedures and proper personal protective equipment.

These include repair planning, corrosion protection, bumper repair, vehicle measuring and glue tab dent repair.

“We have to take steps to give back to the industry and address the technician shortage,” said Chess.

“Otherwise, nothing will change.”

As a long-term instructor with I-CAR for more than 25 years, Chess reached out to the organization about the program. I-CAR is offering support to his endeavors and working with him to amplify his efforts.

“I-CAR is proud to support the efforts of leaders in our industry, like Toby, who are making strides to foster a learning culture and growth mindset in our shops—particularly with new technicians,” Pictured, left to right, are Toby Chess, Alfredo Jimenez, said Dara Goroff, I-CAR’s Byron Duarte Jr., Eddy Nouri, Ezmin Medrano and vice president of planning Miguel Rodriguez of Anthony’s Body & Paint and industry talent programming.

“It’s an About two years ago, he was exciting time to be a professional visiting a body shop and a newer in collision repair and we want employee was asked by his supervisor to highlight the purpose new to sweep floors and do menial tasks. technicians find within it when they’re “I asked his supervisor why he presented with opportunities that didn’t buy him some tools so he could contribute to a complete, safe and feel part of the team,” said Chess, quality repair for the safety of their who ultimately bought tools for the customers.” budding technician. “The expression Six shops in Southern California on his face was unbelievable.” shared information about the support Fast forward to the present and Chess has provided with their Chess said shops are in the same mentorship programs, supplying predicament as they were when it tools to mentees and training. Here is comes to hiring and retaining staff. what the first three shop owners had “We all need technicians,” said to say.

Chess. “We’ve been talking about that for years but what are shops Anthony’s Body & Paint doing about it?”

While working as a tow truck driver in Chess stresses the importance of the mid-1970s, Eddie Nouri admired keeping young people engaged and how vehicles were repaired at the setting a career path for them. body shops he visited and eventually “It’s critical to find ways to motivate opened Anthony’s Body & Paint in these young people and keep them Santa Monica, CA, in 1979. Since engaged or they won’t stay,” said then, Nouri has purchased about 10 Chess, who embarked on a project to other shops, built them up and sold encourage independent shop owners them. to initiate mentorship programs.

Currently, he operates a facility in Chess supplies a set of tools to Inglewood in addition to his Santa the helper and asks shop owners to Monica location. They have a total provide toolboxes. He also shares of about 50 employees and 10 OEM best practices documents he created certifications. that the mentor and mentee can As a result of the pandemic, Nouri follow to help standardize the repair found they were shorthanded. and can be used in conjunction with He said 20 or 30 years ago, it was 26 AUGUST 2023 AUTOBODY NEWS / autobodynews.com

common for body men to bring in relatives to the shop as helpers who eventually became technicians.

“Toby, having a good heart, suggested we hire some people, give them tools and train them,” recalled Nouri.

Nouri reached out to friends and relatives who knew of unemployed individuals and hired four as helpers to be mentored by his more experienced technicians.

“I gave each technician a helper and Toby gave them toolboxes and trained them,” said Nouri. “They are going to be body men within a year or two.”

He encourages other body shops to do the same and help develop the next generation of technicians.

Nouri has known Chess for many years and is appreciative of the training and assistance he has provided.

“I consider myself a successful and happy person and I owe Toby a lot of gratitude because he has taught me a lot,” said Nouri. “I noticed that every technician loves Toby and wants to improve themselves after working with him.”

Zamir has a close relationship with several local tech schools and is often asked to speak with students about the “real-world experience.”

“Because I invest so much in equipment and training and am personally knowledgeable in various aspects of the shop, I can take a student out of tech school and offer them a career,” he said. “This includes

“It’s critical to find ways to motivate these young people and keep them engaged or they won’t stay.”

— TOBY CHESS

ongoing training and immediate overthe-shoulder guidance while they’re doing the work.”

Zamir and Chess have been friends for many years. “He travels across the country to support shops that are willing to train their staff,” said Zamir.

“He is a true friend of the industry, and like many true friends, he doesn’t seek nor get the appreciation he deserves.”

Scandinavian Coachcraft

Scandinavian Coachcraft was established in 2001 by Ole Vandborg, who learned the trade in Europe as an apprentice and has lived in Los Angeles for 37 years.

The collision repair facility focuses on quality repairs and has five structural certifications, Aston Martin, Lamborghini, McLaren, Mazda and Volvo.

To retain technicians and new talent, Vandborg recommends having upSam Zamir, center, with two technicians at Collision to-date equipment, and Consultants Auto Body & Paint Shop offering continual training and good pay.

Collision Consultants Auto Body & “We take part in all of the I-CAR Paint Shop training available and our technicians Founded in 1989, Collision are aluminum- and steel-certified Consultants Auto Body & Paint Shop welders,” said Vandborg. “The paint is owned by Sam Zamir and his crew is certified as well and we send partners. Over the years, the company a couple of our employees to Europe has built a reputation as a high-end every year for training.” specialist, being among the first in Los Over the years, Chess has done a Angeles to do aluminum repairs and lot of training at the facility, which has work on electric vehicles (EVs) and 30 employees. “They all know him new technology in cars. The business and what he expects from them,” said is certified by Maserati, MercedesVandborg. “He has done a fabulous Benz, Porsche and a few other job moving an average tech to a manufacturers, and is I-CAR Gold super tech… he is a saint for all his Class. dedication to the collision industry.”

AkzoNobel Expands Kindig Partnership

Florida Bans Direct-To-Consumer Car Sales For Legacy Brands

By Christopher Smith InsideEVs

A new Florida law, House Bill 637, recently signed by Gov. Ron DeSantis, blocks automakers from bypassing dealerships to sell vehicles directly to consumers—but it doesn’t apply to all companies.

In short, if automakers didn’t have deals with independent dealers in the state before the law, they can sell direct.

Under the new law, manufacturers cannot directly own a dealership if it already has franchise agreements in place.

This puts the kibosh on legacy automakers selling directly to consumers through factory stores, similar to laws found in other states.

However, those laws generally block all brands from direct-toconsumer sales. The language in Florida’s law leaves the door open for companies that don’t have franchise agreements to sell directly.

That seemingly gives a big advantage to EV brands

like Rivian, Lucid and Tesla. Under the law, Tesla could sell a Model 3 directly to a buyer at a fixed price without a middleman, while a Ford Mustang Mach-E would incur retail pricing from a dealer.

Furthermore, HB 637 prevents automakers from forcing franchise dealers to sell vehicles at a specific price, and manufacturers must maintain vehicle allocations to dealerships consistent with previous levels.

This seems to curtail automaker efforts to prevent excessive dealer markups on popular vehicles by reducing future allocations for dealers that

don’t comply with automaker requests. Casting a specific eye towards Ford, the law also conflicts with the company’s plan to adopt no-haggle pricing starting next year.

InsideEVs contacted Detroitbased automakers regarding the law.

A spokesperson for General Motors emailed the following statement: “We value our relationship with our Florida dealers and will continue to support our customers while remaining compliant with Florida law.”

Representatives for Stellantis and Ford declined to comment, instead referring to the Alliance for Automotive Innovation, a trade group representing automakers.

In a letter to DeSantis dated May 3, the alliance requested a veto of HB 637 on numerous grounds, stating it “undermines the free market by statutorily guaranteeing revenue for auto dealers” and “solidifies two different regulatory systems for competitors in the same market,” among other things.

AkzoNobel Vehicle Refinish North America announced the expansion of its partnership with Dave Kindig. Originating in November 2016, the partnership now expands to June 2027.

Kindig is now brand ambassador for AkzoNobel’s flagship Sikkens brand in North America, in addition to the Modern Classikk by Kindig line.

Launched in 2017, the Modern Classikk paint line is based on the Sikkens platform and has grown from an initial pallet of 26 colors to 40 eye-catching colors with the same modern classikk vibe as Kindig himself.

AkzoNobel’s John Griffin, regional director, automotive and specialty coatings, Americas, shares Kindig’s enthusiasm for the continuation of the partnership.

“Everything about Dave Kindig exudes talent, quality and excellence,” Griffin said. “We are confident that continuing with him as spokesperson for our Modern Classikk and Sikkens brands will be mutually beneficial.”

Source: AkzoNobel

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autobodynews.com / AUTOBODY NEWS AUGUST 2023 27

Small Pickups Fall Short When It Comes To Rear-Seat Safety Most small pickups fall short when it comes to protecting passengers seated in the rear, the latest crash test ratings from the Insurance Institute for Highway Safety show.

“Our updated moderate overlap front crash test proved to be challenging for small pickups,” said IIHS President David Harkey. “A common problem was that the rear passenger dummy’s head came dangerously close to the front seatback, and in many cases, dummy measurements indicated a risk of neck or chest injuries. All these things tell us that the rear seat belts need improvement.”

None of the five small crew cab pickups IIHS tested earns a good rating. The Nissan Frontier is rated acceptable. The Ford Ranger earns a marginal rating, and the Chevrolet Colorado, Jeep Gladiator and Toyota Tacoma are all rated poor. The ratings only apply to the crew cab versions.

IIHS launched the updated moderate overlap front test last year after research showed that in newer vehicles the risk of a fatal injury is now higher for belted occupants in the rear than for those

in front. This is not because the rear seat has become less safe.

Rather, the front seat has become safer because of improved airbags and advanced seat belts that are

focus on the injuries most frequently seen in back-seat passengers.

For a vehicle to earn a good rating, there can’t be an excessive risk of injury to the head, neck, chest or thigh, as recorded by the secondrow dummy. The dummy should remain correctly p o s i t i o n e d during the crash without sliding forward beneath the lap belt, or The 2022 Nissan Frontier Crew Cab was rated acceptable “ s u b m a r i n i n g ”. by the IIHS after undergoing an updated moderate overlap The head should frontal crash test. also remain a safe rarely available in back. Even with distance from the front seatback these developments, the back seat and the rest of the vehicle interior. remains the safest place for young A pressure sensor on the rear children, who can be injured by an dummy’s torso is used to check inflating front airbag. whether the shoulder belt is too To encourage manufacturers high, which can make the restraint to improve rear-seat protection, system less effective. the updated test adds a dummy As in the original test, the structure in the back seat behind the driver. of the occupant compartment must The driver dummy is the size of an maintain adequate survival space average adult man. The rear dummy for the driver, and measurements is the size of a small woman or taken from the driver dummy 12-year-old child. IIHS researchers shouldn’t show an excessive risk of also developed new metrics that injuries.

All five small pickups provided good protection in the front seat.

However, measurements indicated a slightly higher risk of leg or foot injuries to the driver in the Gladiator and Tacoma.

In the Colorado, Frontier, Ranger and Tacoma, the restraints in the back seat allowed the rear dummy’s head to come too close to the front seatback. That was not an issue for the Gladiator. However, its rear restraints do not include a side curtain airbag, increasing the risk of injury from a hard impact with the interior of the vehicle or even something outside it.

In the Ranger, the rear dummy submarined beneath the lap belt, causing it to ride up from the ideal position on the pelvis onto the abdomen, which increases the risk of internal injuries.

Otherwise, injury measures taken from the rear dummy indicated a moderate or likely risk of both neck and chest injuries in the poor-rated Colorado, Gladiator and Tacoma and a moderate risk of chest injuries in the marginal-rated Ranger.

Source: IIHS

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autobodynews.com / AUTOBODY NEWS AUGUST 2023 29

New Florida Law in Effect For Out-of-State Driver’s License Classes

By Steve Wilson The Center Square

Driver’s license classes in five states have been singled out as no longer valid in Florida, in accordance with legislation that took effect July 1.

Gov. Ron DeSantis, a 2024 presidential candidate, said July 6 the Florida Department of Highway Safety and Motor Vehicles has published a list of classes by state which are invalid because people living in or entering the country illegally can obtain them in Connecticut, Delaware, Rhode Island, Vermont or Hawaii.

Senate Bill 1718 prohibits issuing driver’s licenses to anyone without proof of lawful presence in the U.S. Anyone presenting one of the invalid licenses at a traffic stop would be subject to criminal penalties.

The American Civil Liberties Union of Florida has called the law a “sweeping anti-immigrant bill.”

“Someone who is in our country illegally and has violated our laws should not possess a governmentissued ID which allows them access to state-funded services

and other privileges afforded to lawful residents,” DeSantis said in a release. “The Biden administration may continue to abdicate its responsibilities to secure our border, but Florida will stand for the rule of law.

“Someone who is in our country illegally and has violated our laws should not possess a governmentissued ID which allows them access to statefunded services and other privileges afforded to lawful residents.”

— GOV. RON DESANTIS FLORIDA GOVENOR

“Even if the federal government refuses, Florida will act decisively to protect our citizens, our state and our country.”

The banned licenses and their classes include: From Connecticut, Delaware, Rhode Island and Vermont, those licenses labeled with warnings that it can’t be used for federal

FORD

identification.

Hawaii limited purpose and limited purpose provisional driver’s licenses and instruction permits marked invalid for federal purposes.

“Florida Department of Highway Safety and Motor Vehicles and its division of the Florida Highway Patrol are prepared to strictly enforce Senate Bill 1718,” agency Executive Director Dave Kerner said in the release. “This legislation supports two of our primary goals: to enhance homeland security and to interdict criminal activity. It communicates our state policy that Florida will not provide incentives to undocumented immigrants, while reminding criminal cartels and those who are planning to unlawfully cross our national border that Florida should not be their destination of choice.

“Florida will not accept driver licenses from those who cannot provide proof of lawful presence in the United States. By doing this, we commit to a safer Florida.”

The Highway Department said the list is subject to periodic updates, pending legislation and actions in these and other states.

Nissan Foundation To Award $1.2 Million in Grants The Nissan Foundation is awarding $1.2 million to 39 nonprofits that share and celebrate diverse cultural perspectives, experiences and voices to communities across the country—the first time it is awarding more than $1 million during its annual grant cycle.

The grant recipients are based in communities surrounding Nissan facilities in Southern California, Middle Tennessee, Central Mississippi, Dallas/Ft. Worth, Southeast Michigan, New York City and Atlanta.

Fresh off its 30th anniversary, the Nissan Foundation has awarded nearly $16 million to approximately 150 nonprofits since its founding in 1992. The Nissan Foundation was created as a direct response to the civil unrest that followed the Rodney King trial verdict. At that time, Nissan’s then U.S. sales headquarters was based just blocks from the riot’s epicenter.

The 2023 grantees include museums, public television stations, libraries and other nonprofits.

Source: Nissan Foundation

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GM Acquires Battery Software Startup

Nissan To Build 2 Electric Sedans At Mississippi Plant

By Dan Mihalascu InsideEVs

Nissan is transforming its plant in Canton, MS, for the electric age.

The company has pledged $500 million to remake the facility into its North American hub for EV production.

The plant has produced more than 5 million gasoline-powered trucks, crossovers and vans since it opened in spring 2003. Two decades later, the 4.7 millionsquare-foot site is being prepared to build electric vehicles.

By mid-decade, production will begin on the first of several battery-electric vehicles for the Nissan and Infiniti brands.

“Canton will be North America’s electrification hub for the next five to six years. That’s where we’re going to bring in the new platforms, the new technology,” David Johnson, Nissan North America’s production and engineering boss, told Automotive News.

Nissan is not a newcomer when it comes to building EVs, having launched the Leaf hatchback more than a decade ago. The Japanese

automaker is determined to take the lessons learned from that venture and apply them to the new one, which is said to consist of competitive BEVs, both in terms of equipment and design.

“They’re all new platforms, new technology and more connectivity,” Johnson said.

Nissan will not turn Canton into an EV-only plant, at least not for now. The automaker will build EVs alongside the gas-powered Altima sedan on one of the factory’s two assembly lines. The first EVs to be made in Canton will be two electric sedans, beginning in 2026, followed by two electric crossovers in 2027 and 2028, according to a supplier production

schedule.

When Nissan made the announcement regarding EV production in Canton, it said the first EVs would be made in Canton in 2025; the information from the supplier suggests production has been delayed by about a year.

In order to accommodate production of these new models, Nissan must expand the plant’s physical footprint for the assembly of battery packs and other components. Johnson declined to say when production at the Canton facility might go allelectric. “All new product ... that I’ve got visibility to right now in the Canton plant is EV,” he said.

EV production trials are scheduled to start in late 2025 or early 2026, but EV production equipment will arrive as early as next year, giving technicians time to train. Nissan expects to retrain the 2,000 production employees on Canton’s Line 2 affected by electrification.

The Canton plant currently operates at a little more than half its annual capacity of 410,000.

General Motors Co. announced June 30 it acquired substantially all the assets of Israel-based battery software startup ALGOLiON Ltd. for an undisclosed sum.

The acquisition was led by the newly formed Technology Acceleration and Commercialization (TAC) organization, a group within GM. ALGOLiON, which received early support from the Israeli Innovation Authority, was founded in 2014.

The company has developed sophisticated software that uses data streams from EV battery management systems to help identify anomalies in cell performance to ensure proper vehicle health management and provide early detection of battery hazards including thermal runaway propagation events.

ALGOLiON’s software, coupled with GM’s internal capabilities and vast experience in delivering best-inclass products at scale, can greatly accelerate time-to-market of a costeffective early hazard detection system for the benefit of millions of GM’s customers worldwide.

Source: GM

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autobodynews.com / AUTOBODY NEWS AUGUST 2023 31

Passenger in 2003 Dodge Ram Killed by Recalled Takata Airbag

By David A. Wood CarComplaints.com

A 2003 Dodge Ram 1500 owner who was riding in the front passenger seat of the truck was killed May 13 when the Takata airbag inflator exploded in a crash.

Fiat Chrysler (FCA) has issued a “DO NOT DRIVE” warning for 2003 Dodge Ram 1500 trucks that have not had their Takata airbags replaced.

The National Highway Traffic Safety Administration confirmed the fatality was caused by a ruptured passenger-side Takata airbag inflator, and it involved one of 385,686 trucks recalled in 2015.

Like several automakers involved with Takata airbag recalls over many years, Chrysler said owners continue to ignore the importance of the Takata recalls.

“Six recall notices were sent to this customer’s home address. All went unheeded,” FCA said.

At least 26 people have been killed in the U.S. by exploding Takata airbag inflators in various models from several automakers, but it’s the first fatality in a Ram truck.

“The company extends its deepest sympathies to the family and friends of the customer whose life was lost in the May tragedy. It is the fourth such incident known to involve an FCA-brand vehicle,” Chrysler said.

NHTSA said if a recalled Ram truck has not been repaired, occupants are “at grave risk of serious injury or death.”

“The older a defective Takata air bag inflator gets, the more dangerous it becomes,” said NHTSA Acting Administrator Ann Carlson.

“Please, get your airbag replaced now for your sake, and for the sake of those who love you. Don’t put yourself or someone you love at risk

of dying or being seriously injured because of a defective, recalled Takata airbag. These repairs are absolutely free and could save your life.”

NHTSA is correct, and there is no reason any of these trucks should not have been repaired long ago.

Automakers involved in the Takata airbag disaster have taken extreme measures to convince vehicle owners to keep occupants safe by having their vehicles repaired. In some cases, manufacturers have sent teams of representatives to the homes of owners across the country in an attempt to convince customers to have the airbag inflators replaced.

In 2022, it was confirmed a Chrysler 300 driver was killed by a Takata airbag even though the owner asked FCA about the airbag recall in 2018. However, the Chrysler owner declined to have the airbag inflator replaced and the automaker continued to send warnings about the airbags.

According to FCA, the company tried “114 outreach attempts” during a period of seven years but the vehicle was never brought in for

free repairs.

The owner loaned the Chrysler 300 to a family member who was killed when the driver’s airbag exploded.

The “do not drive” warning for 2003 Dodge Ram trucks joins stopdriving warnings for 2005-2010 Dodge Magnum, Dodge Challenger, Dodge Charger and Chrysler 300 vehicles with unrepaired recalled Takata airbags.

According to FCA, it will provide free alternative transportation to assist customers with getting to and from dealerships.

If you own one of these recalled vehicles or believe you know someone who does, call the Fiat Chrysler Takata call center at 833585-0144 or visit www.mopar.com/ en-us/my-vehicle/recalls/takatarecalls.html

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Group Steals Cars from Hickory, NC, Dealership Hour After Initial Break-In

By Dave Faherty WSOC-TV 9

On July 3, luxury and sports cars worth thousands of dollars were stolen from Cloninger Ford of Hickory, NC. Surveillance video showed two suspects breaking into the dealership using a rock. They then pried open a safe lock box to access a set of keys, according to the Hickory Police Department.

Police said the original two suspects left for more than an hour before returning with several other suspects. They then stole four Dodge Chargers, a Cadillac Escalade and two BMWs. General Manager Brian Palm showed Channel 9’s Dave Faherty where they smashed their way into one of the buildings at the dealership. Police shared photos of two of the men they say stole key fobs. They made sure to cover nearly every part of their bodies right down to their hands.

“It’s definitely frustrating,” Palm said. “Come back to work from being off the weekend and

missing some cars.”

The stolen vehicles combined came to a total of around $300,000, according to police.

“I mean, I know it’s a ring based out of Charlotte from what I believe. They got the Mitsubishi store down the road here a little while back. They also got the Ford and Toyota store in Salisbury as well. Yea, it’s definitely frustrating,” — BRIAN PALM GENERAL MANAGER

One of the stolen vehicles was tracked to Interstate 85 near the airport. It was later found near an apartment complex.

Cloninger Ford said it is in the process of increasing security at the dealership, including hiring off-duty officers at night.

If this type of theft sounds familiar, it’s because law enforcement across the Charlotte, NC, area have been

investigating cases of luxury and sports cars being stolen from dealerships since last winter. In several of the break-ins, the cars were stolen right off the show room floor.

Police said they believe this case may be linked to vehicle thefts at other dealerships in North Carolina.

Nick Day works next to the dealership and said the cars were stolen at one of the busiest intersections in Hickory. It reminds him of the movies.

“It sounds like a Fast and Furious movie almost, but the thing is, in the movies, normally the hero or villain ends up winning in the end. But I don’t think that’s going to be the case,” he said.

Palm said he hopes the suspects are caught soon.

“I mean, I know it’s a ring based out of Charlotte from what I believe. They got the Mitsubishi store down the road here a little while back. They also got the Ford and Toyota store in Salisbury as well. Yea, it’s definitely frustrating,” Palm said.

ASE Announces Leadership Changes ASE President and CEO Tim Zilke and Senior Vice President of Communications Trish Serratore have announced their plans to retire Dec. 31.

Zilke joined the National Institute for Automotive Service Excellence (ASE) in 1991 and was promoted to president and CEO in 2008.

Serratore joined ASE in 1988 and was promoted to senior vice president of communications in 2008. She served six years as president of the ASE Education Foundation from 2012 to 2017, before rejoining ASE as senior vice president.

Dave Johnson has been named ASE president and CEO designate effective July 12. Johnson will assume the title and responsibilities of ASE president and CEO on Jan. 1, 2024, upon Zilke’s retirement.

Donna Wagner has been named as the new vice president of industry and media relations for ASE. She will be responsible for both new and existing company relationships along with representing ASE to consumer, corporate, government and technician audiences.

Source: ASE

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AAA: Prioritize Roadway User Safety Before Raising Speed Limits

By Andrew Gross AAA

Drivers desiring faster commutes might view a higher speed limit as a boon, but is it always the safest choice? And what about the safety needs of pedestrians, cyclists, and others?

A new study by the AAA Foundation for Traffic Safety found raising posted speed limits may do little to save time and increase traffic flow but could lead to more crashes, injuries and deaths.

The AAA Foundation’s research results varied across all 12 roadway sites examined. All had new posted speed limits—six raised and six lowered—and included various road types. Raising posted speed limits was associated with increased crashes on two interstate highways. At the same time, the study also found that lowering posted speed limits led to fewer crashes in many cases examined. But the likelihood of speed limit violations increased after lowering posted speed limits, suggesting the need for better public awareness education tied to

these changes.

AAA urges transportation officials to apply a “holistic” approach when setting or changing posted speed limits and prioritize safety over speed and capacity.

Speeding is a critical factor in vehicle crashes across the nation.

According to the National Highway Traffic Safety Administration (NHTSA), there were more than 42,000 traffic deaths in 2021 and again in 2022, the highest levels in 16 years. NHTSA reported speeding was a factor in nearly 29% of the fatalities in 2021 and 27% in 2022.

Key Findings

“Our study analyzed before and after data on a dozen roadways that raised or lowered posted speed limits and found no one-size-fitsall answer regarding the impact of these changes,” said Dr. David Yang, president and executive director of the AAA Foundation.

“However, it is critical to consider the safety implications when local transportation authorities contemplate making changes with posted speed limits.”

The foundation study found: Raising posted speed limits was associated with increased crash frequencies and rates for two of the three interstate highways examined.

Lowering posted speed limits was associated with decreased crash frequencies and rates for one of the two principal arterials examined.

Changes in travel times were small in response to both raised and lowered speed limits.

AAA recommends changes in posted speed limits should consider a range of factors, including but not limited to the type of road, surrounding land

use and historical crash data.

AAA supports automated speed enforcement, but programs must be carefully implemented to maintain community support, prioritize equity and consistently drive improved safety.

“The movement in statehouses to raise speed limits is happening across the country in at least eight states this year,” said Jennifer Ryan, director of state relations for AAA. “But the benefits are overrated, and the risks are understated.

Increasing speed limits does not always yield the positive results envisioned by traffic planners.”

This study is the third phase of the AAA Foundation research examining the effect of posted speed limit changes on safety. In the foundation’s first study, traffic engineers were asked how posted speed limits are set and what factors they consider in changing them. In the second phase, crash testing revealed that small speed increases have severe and potentially deadly effects on crash outcomes.

Source: AAA

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CIF Continues Legacy of Service, Providing Emergency Relief and Connecting Collision Repair Industry

By Stacey Phillips Autobody News

At any moment, someone in the collision repair industry could be impacted by a natural disaster or other catastrophic event.

“If that were to happen, the Collision Industry Foundation (CIF) ensures that others in our industry will be there in support,” said CIF President Michael Quinn, who is also president of AirPro Diagnostics. “We help each other, we look after each other, and we connect the industry.”

Prior to the creation of CIF in 2001, members of the collision industry rallied donations and volunteers to perform works that would benefit organizations such as Habitat for Humanity and Ronald McDonald House. Although their efforts were successful, Quinn said they were the result of the work of a small group of people and required a substantial personal investment in time and administration.

CIF project leaders discussed building a foundation to coordinate fundraising, create committees, gather volunteers and brainstorm. At the time, volunteers had committed to raising $500,000 toward constructing a medical center for Camp Make-A-Dream, a free camp for children with active cancer. They realized it was no longer possible for a handful of volunteers to coordinate a project of such enormity.

“We could not fulfill our mission without our entire network of donors, volunteers and supporters.

No words can express the depth of our thanks to this industry for allowing us to do this work on their behalf.”

— ANN GONZALEZ CIF VICE PRESIDENT

As a result, they formed CIF, a 501(c)(3) nonprofit organization incorporated April 26, 2001. CIF’s founders include Mark Claypool, Glen Funk, Dan Greenwald, Marco Grossi, Jeanne Silver, Charles Sulkala and Doug Webb.

The organization’s mission is to provide emergency relief by securing and distributing donations to collision repair professionals who have experienced significant losses due to natural disasters or other catastrophic events. That assistance can be monetary, connecting

individuals with suppliers or other industry providers, and/or lending a hand to rebuild or retool.

Since its inception, CIF has managed the funds donated to support charitable and educational causes in the collision industry.

They are disbursed after trustees, selection committee volunteers and leaders review the projects.

Due to the complexity of some projects, CIF funds the foundation’s administration.

of assistance. Quinn said this differed from past disasters or catastrophic events that were tied to a particular geographic area or location. CIF had not dealt with a situation of this magnitude.

CIF used the reserves in the Disaster Relief Fund to make an initial commitment of $100,000 to assist those impacted by COVID-19.

The organization also put out a call to the industry for donations. The outcome was raising an additional

The CIF Board of Trustees includes, pictured left to right: Scott Walton, SherwinWilliams; Treasurer Dan Risley, CCC Intelligent Solutions; Secretary Petra Schroeder, “Collisionista;” Jeff Wildman, BASF; Jim Ocampo, Axalta; Frank LaViola; Yvette Burke, Enterprise Holdings; Vice President Ann Gonzalez, NAHQ; Cheryl Boswell, DCR Systems; Bryan Robinson, PPG; Kelly Broderick, Sherwin-Williams; and President Michael Quinn, AirPro Diagnostics. Casey Steffen, Saint-Gobain Abrasives, and Jordan Hendler, Admin Concepts, are not pictured.

In the early years, CIF worked closely with the National Auto Body Council (NABC), whose members suggested worthy causes. Some of the charitable projects funded

by CIF have included donations to local causes, including children’s hospitals and abused women’s outreach programs; donations to sponsor student participation at the 2005 WorldSkills competition and fund the purchase of a handicapped accessible school bus for Camp Make-A-Dream; and The Hurricane Katrina Disaster Relief Fund for collision industry victims. Following Hurricane Rita, the Disaster Relief Fund was created to aid industry victims of any natural disaster.

Until 2020, CIF coordinated fundraising to raise money for specific disasters. Members of CIF’s Board of Trustees typically reach out to organizations that have donated in the past or they feel would be good candidates. The CIF Gala, typically held annually in January, has been a major fundraiser for CIF since 2010.

During the pandemic, the need for assistance was widespread across the country due to layoffs and reductions in work hours at collision repair shops. Hundreds of individuals found themselves in need

36 AUGUST 2023 AUTOBODY NEWS / autobodynews.com

$150,000 that was dispersed to individuals in need. CIF Trustees vetted each request and responded to more than 700 requests for assistance from 38 states.

Through the pandemic, CIF implemented new methods of fundraising. These included online events, such as a magic show and a silent auction.

In addition to the call for pandemic assistance, in 2020, CIF participated in Giving Tuesday, a national day of philanthropic support. Forty donors contributed to these efforts. The organization has continued to participate in Giving Tuesday for the past two years.

The CIF Annual Donor program was introduced in 2021 so it would be easier for industry organizations to make an ongoing commitment to CIF, streamlining the donation process for CIF and supporting organizations.

There are currently 36 donors, up from 23 annual donors in 2021.

“Our annual donor commitments make it possible for CIF to provide assistance to our industry brothers and sisters in times of crisis,” said Quinn. “We appreciate their generosity and ongoing support and are honored to conduct work on their behalf.”

“We could not fulfill our mission without our entire network of donors, volunteers and supporters,” added Ann Gonzalez, CIF vice president.

“No words can express the depth of our thanks to this industry for allowing us to do this work on their behalf. Speaking for the CIF board, we thank our CIF community from the bottom of our hearts.”

In 2022, the annual fundraising gala was held after being on hold for nearly two years due to the pandemic.

“This event provided the opportunity to bring industry individuals together as well as raise additional funds through event ticket sales, raffles and silent auctions,” said Quinn. For 2023, the event is going to be held during its usual timeframe on Jan. 18 in Palm Springs, CA. Typically, raffle and auction items are donated to CIF so all proceeds from those sales go directly to the Disaster Relief Fund.

At the July 2022 gala in Pittsburgh, PA, CIF was proud to present a check for $15,000 to Bryan Miller, an individual from the collision industry who displayed heroic bravery and resiliency despite suffering thirddegree burns over most of his body.

Miller hopes to find a new role in the industry and continue working in a shop. Numerous donations of money, as well as training, equipment, etc., have allowed him to plan his next steps.

Unfortunately, Quinn said there will always be another disaster like the record flooding in Kentucky or wildfires in Oregon, or another health care emergency like COVID-19. “It is our intention that CIF will always be there—reaching out through our distribution channels, seeking to identify individuals in need, and providing whatever assistance we can,” he said.

Future plans include expanding the annual donor program and gaining visibility with additional industry organizations.

CIF is increasing the number of trustees on its board to fill the seats with leaders from various industry segments and building closer connections with other nonprofit organizations.

“People who become connected with CIF do so in support of our mission and vision, with a desire to contribute and serve,” said Quinn.

“We are part of an industry that looks after our own, who have big hearts and take generous actions.

Whatever the need, CIF is there and will be there, continuing our legacy of service.”

Empire Auto Parts Opens New Distribution Center in Florida Empire Auto Parts, LLC, a leading distributor of highquality aftermarket collision parts for automotive repair shops, announced the opening of its seventh full-scale distribution center in the Central Florida region.

The 188,000-square-foot facility in Orlando, FL, will bring Empire’s total location count to 35 facilities serving 23 contiguous states from Maine to Florida and Delaware to Arkansas.

Collision repair shops throughout Central Florida will now benefit from Empire’s extensive inventory levels, efficient ordering processes, highquality parts, same-day delivery service and friendly local support enjoyed by Empire’s long-time customers up and down the eastern seaboard.

“Empire’s rapid growth is a testament to our commitment to providing exceptional quality, service and support to our customers, and we are thrilled to expand our unique product and

service offerings to a market that shares our growth trajectory,” said Gary Scholl, general manager of the Orlando facility. “Our loyal collision shop customers with national and regional operations have been eagerly anticipating our arrival to the Florida market, and we’re looking forward to meeting the demands of this region.”

The new Orlando distribution center is not only the largest of its facilities but also equipped with cutting-edge materials handling processes to maintain its highquality standards, exceptional service and low return rates.

Empire is poised to deliver to markets throughout nearly all of Florida within the next six months, further expanding its reach and strengthening its position as a top distributor of high-quality aftermarket collision parts in the industry. Collision repair shops can contact Empire in Orlando by calling 800-818-0621. They can order and return parts online at www.empireautoparts.com.

Source: Empire Auto Parts

Tesla’s Price Cuts Nearly Wipe Out Autonomy Subscription Service

By Joey Klender

“Instead of having an $85 million fleet, we suddenly had a, say, $56 million to $57 million fleet in one day,” Painter said to Bloomberg. “We were very vulnerable to our lenders in that moment.”

The cuts affected Autonomy’s business so much it went through a forbearance process to gain $12 million in new capital and shrunk its workforce significantly from 120 to 45.

Painter and Autonomy initially planned to have 23,000 EVs ordered, but goals announced last year were pushed aside due to the depreciation of its fleet. Autonomy has 1,300 cars currently and will need roughly 1,700 more to break even, Painter said. This will require $20 million more in funding, which will likely unlock $100 million in borrowing capacity.

Autonomy continues to expand into new markets, making its subscription service available to customers across the U.S.

Teslarati

Tesla’s price cuts have helped the automaker find new customers and grow its sales throughout the U.S. and other markets. But for companies that have made a business out of renting Teslas to customers on a subscriptionbased platform, it spells disaster.

Autonomy, a company that has quickly become the “Tesla” of its respective sector, nearly became a victim of these price cuts.

Scott Painter, CEO of Autonomy, has made Teslas and other EVs available to people in a subscription, paying an up-front price and then a monthly rate more flexible than leasing and less expensive than a long-term rental.

The fleet of Tesla vehicles Autonomy has accumulated over the past few years has a value, and when the EV maker’s price cuts took effect, that value diminished significantly.

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Kia Georgia To Expand For EV9 Production

Gas Prices Drift Lower As Drivers Prepare For July 4th Travel

Kia Georgia’s West Point assembly plant is undergoing a transformation that will allow for the assembly of the all-electric 2024 EV9 three-row SUV in the second quarter of 2024. This $200 million+ expansion will create nearly 200 additional jobs in Troup County with EV9 joining the Telluride, Sorento and Sportage SUVs and the K5 mid-size sedan as the fifth model to be assembled at Kia Georgia. “Like Telluride, EV9 has the potential to be another ‘game changer’ for Kia,” said Sean Yoon, president and CEO, Kia North America and Kia America.

“This will be the most sophisticated vehicle that we have ever built and will be a standout in the EV market and on the road. Best of all, it will be assembled in West Point, GA.” EV9 will be the first EV for Kia to be assembled in North America and combines all the best SUV elements of the awardwinning Telluride with the best EV elements of the award-winning EV6. EV9 will mix capability with technology and refined elegance.

Source: Kia

By Andrew Gross and Devin Gladden AAA

Drivers hitting the road for the Fourth of July holiday will find the gift of lower gas prices across most of the country. AAA forecasts more than 50 million people will celebrate the nation’s birthday by traveling, with a record 43.2 million going by car.

The national average for a gallon of gas fell four cents since June 22 to $3.54 as of June 29.

“Gas prices are $1.30 per gallon less this year than last, but they are still high compared to historical averages,” said Andrew Gross, AAA spokesperson. “The previous record average high price for gas on July 4 was $4.10 in 2008, while the low was $1.39 in 2001. Yet despite currently elevated prices, drivers are not cutting back on travel this summer.”

According to new data from the Energy Information Administration (EIA), gas demand decreased slightly from 9.38 to 9.31 million b/d over the same

week. Meanwhile, total domestic gasoline stocks increased by 600,000 bbl to 220 million bbl. Lower gas demand amid increasing supply has helped to limit pump price increases.

If demand remains low, pump prices will likely continue to decline through next week.

The June 29 national average of $3.54 is four cents less than a month ago but $1.32 less than a year ago.

Since June 22, these 10 states have seen the largest decreases in their averages: in their averages: Arizona (-16 cents), Ohio (-11 cents), Indiana (-11 cents), Wisconsin (-11 cents), Illinois (-9 cents), Kentucky (-6 cents), Nevada (-6 cents), Georgia (-6 cents), Utah (-6 cents) and Florida (-5 cents).

The nation’s top 10 least expensive markets: Mississippi ($2.97), Louisiana ($3.08), Alabama ($3.10), Tennessee ($3.10), Arkansas ($3.11), South Carolina ($3.17), Texas ($3.18), Oklahoma ($3.22), Georgia ($3.23) and North Carolina ($3.25).

Source: AAA

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Ford Best Selling-Brand in U.S. in Q2 Ford was America’s best-selling brand in the second quarter of 2023 on the strength of its trucks, EVs and new vehicle launches, posting sales gains of 11.2% for the quarter.

Ford is now the best-selling brand and has the best-selling truck in America for six consecutive months this year. F-Series has been the bestselling truck in America for 46 years in a row.

Ford truck sales accelerated in Q2, climbing 26.2% on the strength of the new Super Duty and improved inventory flow. This is the second straight quarterly gain for Ford and best Q2 sales performance since pre-COVID 2019.

Ford was the No. 1 selling truck manufacturer in Q2 and for the first half of the year. Sales climbed 26.2% in Q2. Through the first half of 2023, Ford’s overall truck sales totaled 549,625, up 23.1% and outselling GM’s trucks and vans by approximately 61,000 trucks.

Ford EV Sales Gain Momentum Ford’s EV sales continue to grow building on the sales momentum of the F-150 Lightning and Mach-E, which achieved higher sales

through stronger inventory.

“Ford achieved both best-selling brand and truck for six consecutive months this year on the strength of F-Series, vans, our new Escape and F-150 Lightning,” said Andrew Frick, vice president, sales distribution, and trucks. “Our EV sales continue to grow. Improved Mustang Mach-E inventory flow began to hit at the end of Q2 following the retooling of our plant earlier this year, which helped Mustang Mach-E sales climb 110 percent in June.”

F-150 Lightning sales were up 119% in Q2 over year ago and a 4.1% gain from Q1. F-150 Lightning continues to attract new customers to Ford with 50% new to the brand, based on most recent conquest data. Year-to-date, Ford EV sales rose 11.9%. Ford’s overall EV sales were up 35.5% in June.

With the launch of Ford’s all-new Super Duty pickup and chassis cabs, F-Series sales increased 34% increase in Q2 on sales of 212,516 F-Series trucks. That’s up 24.7% from the first quarter. F-Series total industry share hit almost 36% in Q2—up almost 5 full percentage points over Q2 last year.

Through the first half of this year, F-Series remains America’s best-selling truck on sales of 382,893 trucks—outselling secondplace Silverado by approximately 118,000 trucks. Ford Maverick sales increased 7.8% in Q2 ahead of additional capacity coming online in July to meet continued strong customer demand.

Combined F-Series, Ranger and Maverick sales of 246,155 pickups outsold all of GM’s Silverado, Sierra, Colorado, Canyon and Hummer EV in Q2 of this year. Ford’s combined sales of F-Series, Ranger and Maverick were up 26.7% in Q2 over a year ago.

The strength of Ford’s vans continued to shine for the quarter.

Transit continued as America’s bestselling van in Q2 on sales of 32,031— up 30.1%, compared to year ago.

Ford E-Series vans increased 63.7% in Q2 and are up 55.7% this year.

Ford was No. 1 in commercial sales, based on the most recent registration data through April.

Ford’s U.S. Class 1-7 commercial trucks and vans share grew to 40.3%, up 1.0 percentage point from the same period a year ago.

Meanwhile, Lincoln closed the quarter with sales gains thanks to improved inventory. Navigator Q2 sales increased 20.1% on sales of 4,688 vehicles, while sales of the new Lincoln Corsair climbed 27% in June to end the quarter. Nautilus sales also saw a 58.5% increase in June at the end of Q2.

BlueCruise, Ford’s driver assist technology, continues to be a hit with customers. Customer usage has now surpassed 90 million hands-free driven miles, cumulatively, a 40% increase since the end of Q1. Ford’s latest version of the technology, BlueCruise 1.2, allows hands-free lane changes with the tap of a turn signal and delivers a more seamless driving experience. Ford will continue to improve the BlueCruise experience for its customers and deliver it through over-the-air updates.

Sales of the new Escape were up 28.7% in Q2. Forty percent of Escape Q2 sales are the new ST-Line series. Nearly half of the Escape Plug-in Hybrid customers are new to Ford.

Source: Ford

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autobodynews.com / AUTOBODY NEWS AUGUST 2023 39 7/7/23 10:48 AM

Farmers Insurance Further Reducing Florida Business

By William Rabb Insurance Journal

One month after it announced it would stop writing new homeowner policies in Florida, Farmers Insurance said it plans to cut back further on its presence in the hurricane-prone state.

The Florida Office of Insurance Regulation said July 11 it had received a “market reduction notice” from Farmers Insurance Group on July 10. But the information was marked as trade secret, per Florida insurance statutes, so details were not provided.

“We have advised the Florida Office of Insurance Regulation of our decision to discontinue offering Farmers-branded auto, home and umbrella policies in the state,” Farmers Director of Public Relations Trevor Chapman said in a statement July 11. “This business decision was necessary to effectively manage risk exposure.”

Two Florida insurance agents for Farmers told Insurance Journal on July 11 they could not comment and referred all calls to Farmers’ corporate public information office.

It’s likely the move will mean non-renewals for thousands of

affected policyholders, but the exact number is unclear. Chapman said Farmers has several brands in Florida and the withdrawal will not affect policies issued through its subsidiaries—auto insurer Bristol West, home insurer Foremost, Foremost Signature, Farmers GroupSelect and Foremost Choice, which include about 70% of the group’s policies in the state.

State law requires insurers to give OIR 90 days notice when it plans to stop writing coverage in the state. But that did not appear to be enough for Florida’s chief financial officer, Jimmy Patronis, whose department houses the OIR. On July 10, Patronis said on Twitter he had heard rumors. “If that’s true, my office is going to explore every avenue possible

News reports from around the state noted the pullout could affect as many 100,000 homeowner, auto and umbrella policies, but the OIR’s quarterly report shows Farmers’ policy count may be less than that.

for holding them accountable,” he tweeted. “Don’t get to leave after taking policyholder money.

Can’t write auto if you’re not doing homeowners either. Zero communication!”

In a letter to Farmers’ Victoria McCarthy, released late July 11, Florida Insurance Commissioner Michael Yaworsky said regulators are “disappointed by the hastiness in this decision” and are troubled by how the decision may have cascading impacts on policyholders.

“We also want to directly express our disappointment regarding how this decision was communicated,” the letter said. “While the office recognizes companies need to make operational changes to books of business, OIR always appreciates the opportunity to discuss these complex issues prior to receiving notifications of this nature.”

In a phone call with Farmers representatives July 11, the carrier’s officials committed to facilitating a seamless assumption of policies to other companies that may be interested, Yaworsky noted.

The action by Farmers marks the latest pullback from the Florida market, which has seen 10 property insurer insolvencies in the last 30 months. In some cases in the last two years, announcements that carriers would stop writing new policies have preceded insolvencies by just a few months.

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Farmers, fronted on national television ads by actor J.K. Simmons, writes policies across the country and is unlikely to be deemed insolvent. But it, like other national carriers, has taken significant steps to reduce exposure. Farmers announced earlier in July it would stop writing new homeowner policies in California, another state where insurers and insureds have been hit hard by natural disasters.

Farmer’s pullback in Florida comes at a curious time—just before insurance reform bills passed by the state Legislature can have much of an impact on the flood of costly claims litigation. Industry insiders said July 11 that Farmers expanded its presence in Florida at exactly the wrong time, just before Hurricane Ian hit the state but before the tortreform laws have an effect.

In its June announcement that it would halt new HO policies, Farmers said in a statement: “With catastrophe costs at historically high levels and reconstruction costs continuing to climb, we implemented a pause on writing new homeowners

policies to more effectively manage our risk exposure.”

Yaworsky’s letter reminded Farmers that Florida’s historic reforms should ensure competitiveness.

Farmers’ insureds must be given 120 days’ notice before policies are canceled or non-renewed, according to state law.

“If a consumer receives a nonrenewal notice from Farmers Insurance Group, they are encouraged to contact their agent immediately to seek alternate coverage,” OIR Communications Director Samantha Bequer said July 11.

In late June, Farmers filed for rate changes for its auto policies in Florida, suggesting the company plans to continue at least some presence in the state.

State Sen. Jason Pizzo, D-Miami, tweeted July 11, appearing to suggest Republican leadership in state government could have done more to prevent a continuing property insurance crisis in the state.

“While campaigning on woke, Florida’s leadership has been asleep,” Pizzo wrote.

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NHTSA Asks Tesla For Updated Data Amid Autopilot Probe

By Simon Alvarez Teslarati

The National Highway Traffic Safety Administration (NHTSA) has asked Tesla for updated data related to an ongoing investigation into 830,000 Tesla vehicles and the automaker’s Autopilot driver-assist system.

The NHTSA is investigating Tesla’s driver-assist system after it identified more than a dozen crashes involving the feature and emergency vehicles. The agency is also investigating whether Autopilot adequately ensures drivers are paying attention while it is operating.

The safety agency sent a letter to Tesla on July 3, requesting updates to inquiries it had made in 2022. A copy of the letter made public by the agency indicated it is demanding answers by July 19, Reuters reported.

The new letter also seeks data on the number of vehicles equipped with “Tesla Vision,” which solely relies on cameras

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instead of radar. The agency had previously inquired about Tesla’s cabin camera, used to check driver attentiveness while Autopilot or FSD is engaged.

Tesla has not shared a comment about the matter as of writing.

Tesla’s Autopilot (AP) allows vehicles to automatically steer, accelerate and brake within their designated lane, while Enhanced Autopilot (EAP) provides Teslas with the capability to perform lane changes on highways.

Tesla’s Full Self-Driving (FSD) Beta allows vehicles to navigate inner-city streets. Despite these capabilities, Autopilot, Enhanced Autopilot and FSD Beta do not make vehicles fully autonomous.

In 2022, the NHTSA said nine out of 11 vehicles in prior crashes exhibited no driver engagement, visual alerts or audible alerts until just moments before a collision occurred. Four vehicles did not receive any visual or audible alerts at all during Autopilot’s final use cycle.

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Audi, Volkswagen Donate Damaged Vehicles To Collision Repair Educational Programs Collision Repair Education Foundation (CREF), Audi of America and Volkswagen of America are proud to announce they have partnered to donate 78 Audi and Volkswagen vehicles to collision repair programs throughout the U.S.

Upon evaluation, a group of Audi and Volkswagen employees knew this wasn’t the end for these vehicles as they were still functioning and intact.

The CREF team got to work with Audi and Volkswagen on how these vehicles could serve a new purpose.

These donations will enhance the Months of planning, coordinating and education of thousands of collision reviews among this dedicated group repair students and support the of Audi and Volkswagen employees, next generation of the automotive CREF and schools resulted in workforce. In a rapidly changing the donation of these vehicles industry, it is critical students have to automotive training programs access to the latest vehicles and throughout the country. technology.

“We want to advance the next The donated Audi and Volkswagen generation of technicians, and we’re vehicles were damaged during committed to a more sustainable Quarter Page (no bleed) 4˝ xMark 5˝ Allen, manager of shipping to the point that they could future,” |said no longer be sold to customers. collision, equipment and EV after-

sales service at Audi of America. “This was an opportunity where creativity and an open mind enabled us to live our sustainability values and map out a new way to help our industry.”

Allen partnered with Tony Russo, Volkswagen Group of America damage prevention and port policies senior specialist, to reimagine the use of many vehicles damaged beyond reasonable repair. The Audi and Volkswagen team worked directly with CREF to help facilitate the donation of these vehicles.

Allen and Russo also coordinated with Audi and Volkswagen dealerships and collision centers near the various schools, to ensure there is support for both the students and the schools by providing career opportunities for students and sourcing parts and addressing any technical questions for the school.

“Audi and Volkswagen are giving back to the industry and the communities they work in by connecting their certification programs to the donation. They aren’t just donating the cars; they are also connecting local dealerships and national training staff to the schools receiving the donations to ensure the sustainability of these programs,” said CREF Director of Marketing and

We’ve got a thing for quality parts

Project Management Amber Ritter.

“The foundation is incredibly grateful for this donation, and we are looking forward to seeing how the donation of both ICE vehicles and EVs benefit students’ ability to better prepare for industry careers.”

The donated vehicles range from large SUVs like the Audi Q7 to comparatively smaller cars like the Audi A3. There is also a mix of both ICE vehicles and EVs, including the Volkswagen ID.4 and Audi e-tron.

The schools benefiting from these Audi and Volkswagen donations include the following: Maryland Center of Applied Technology North, Severn Center of Applied Technology South, Edgewater Gaithersburg High School, Gaithersburg Michigan Oakland Community College, Rochester Hills Oakland School Technical Campus (OSTC) OSTC Southeast, Clarkston OSTC Northeast, Pontiac OSTC Southeast, Royal Oak OSTC Southwest, Wixom

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New Jersey Passaic County Technical Institute, Wayne Tennessee Bradley Central High School, Cleveland Chattanooga State Community College, Chattanooga Tennessee College of Applied Technology (TCAT) TCAT, Crossville TCAT, Knoxville TCAT, Livingston TCAT, Morristown Texas JB Hensler College and Career, Manvel Virginia Academies of Loudon, Leesburg Northern Virginia Community College, Alexandria Leaders from the various schools emphasized the importance of their students having the opportunity to work on newer vehicles with current technology. Having this access will put their students in a position to become higher skilled entry-level technicians when they graduate.

“The donations will have a major impact on providing engaging,

hands-on instruction for 480 students across four CTE [Career and Technical Education] campuses throughout Oakland County,” said Christopher Vraniak, campus dean for OSTC Southwest. “The donated vehicles that are assembled and equipped with the newest technology provide our students with the opportunity to train on the cutting edge of the industry.

Moreover, the EVs will put our students well ahead of the curve when it comes to the latest industry trends. This is greatly important; our advisory committee has shared that the industry is rapidly moving towards EVs, so the donation of four EVs to our campuses was a very significant donation for which we are very, very grateful. This is one of the largest donations we have ever received and will be a foundation for our students moving forward.”

“It is important to always be ahead and prepared for what is coming in the industry as our graduates are employed by companies throughout Tennessee and the nation,” said Cris Perkins, associate vice chancellor for strategic advancement and executive director of the Foundation for the College System of Tennessee, which supports the public Tennessee Colleges of Applied Technology and

the state’s community colleges.

“This partnership and donation helps further the mission of the Foundation for the College System of Tennessee to continually look for ways to bring in equipment and funding to help train our students as they learn at our colleges and make great employees.”

“All of these programs are often underfunded, so finding parts and cars is the hardest aspect these instructors face when reviewing their budgets. They operate on a shoestring of funds, making it incumbent on the instructor’s ability to trade, buy and sell cars or have fundraising events to fund their program,” said Tim Pfeifle of Tysons Corner Collision Center in Vienna, VA. “This donation will help many local programs, and I am so proud my supporting manufacturer is making this very generous donation, which will pay dividends to our industry for years to come.”

Audi and Volkswagen also recognize the need for students to receive the proper training on these modern vehicles, especially at a time when the nation is experiencing a major shortage of collision repair specialists. These donations further the goals of Audi and Volkswagen to attract and educate technicians on

state-of-the-art vehicles.

“We have paired these learning institutions with local Audi Authorized Collision Center or VW Certified Collision Centers as well Audi and VW dealers.

These relationships will provide opportunities for mentoring and opportunities for future employment,” Russo said. “The schools will use the vehicles for both technical and collision classes until the vehicles can no longer provide any additional training value.”

Once the vehicles can no longer provide value to classrooms, learning institutions will contact their local first responders who will use the vehicles for further training.

First responders look for the latest equipment to use during training, allowing them to learn the cut points and other hazards when conducting extrication drills. The remains will then be sent off for recycling.

Industry members interested in getting involved and supporting the Collision Repair Education Foundation’s efforts to assist secondary and post-secondary collision repair training programs can contact us to learn about the many ways to get involved. Monetary donations can be made online.

Source: CREF

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Bryce Boyer Joins CIECA Board The Collision Industry Electronic Commerce Association (CIECA) announced June 30 that Bryce Boyer, business partner lead consultant for Allstate Insurance Company, joined CIECA’s Board of Trustees, effective immediately.

As part of an auto team that focuses on virtual estimating, one of Boyer’s major focal points is navigating how artificial intelligence (AI) and automation are transforming how Allstate and the industry conduct the estimating business.

Boyer said he is excited to understand and learn how CIECA standards effect the way the industry operates, the far-reaching ways the organization helps to push for efficiency and digging in on the impacts of emerging technology.

Boyer has worked in the insurance industry for more than 25 years. The majority of his roles have focused on automotive. In 1995, he started in Daytona Beach, FL, as a personal lines adjuster and moved into the automotive sector with a year.

Source: CIECA

‘Who Pays’ Survey Finds Shops Increasingly Billing, Being Paid For Seat Belt Inspections The percentage of shops getting paid for the labor involved in inspecting seat belts and their associated components has more than tripled since the question about it first began to appear annually in the “Who Pays for What?” survey series in 2016.

This not-included repair operation—for which every OEM has a very specific procedure— is a necessary and required part of a safe collision repair, said Mike Anderson of Collision Advice, adding he will not be satisfied until 100% of shops are performing it.

“I know I have been saying this for years, but of the 100-plus not-include’ repair procedures we cover in the surveys each year, this is the one that keeps me awake at night,” said Anderson, who conducts the “Who Pays” surveys with CRASH Network. “Anything less than 100% on this question is very concerning because it indicates to me that too few

shops are researching OEM repair procedures and are thus not aware of this requirement.”

The industry does appear to be headed in the right direction on the procedure. In 2016, 63% of shops acknowledged they had never included it on a final invoice—that’s fallen to about 33% today—and of those who had in 2016, more than half (56%) said insurers would never pay for it. Today, one-third still believe insurers won’t pay them for the procedure, even while 44% of the shops that do charge for it say they get paid all or most of the time by the eight largest national insurers, and another 27% are paid at least sometimes.

“I am glad to see the big improvement, but more is needed,” Anderson said. “As an industry, we must accept responsibility for researching and following the requirements for this on every single vehicle we repair.”

The latest quarterly “Who

Pays for What?” survey is now open through the month of July. It focuses on notincluded frame and mechanical labor operations. Shops can take the survey at https:// w w w . s u r v e y m o n k e y. c o m / r/8CRPC28 Survey participants receive a free report with complete survey findings along with analysis and resources to help shops better understand and use the information presented.

The survey can be completed in less than 15 minutes by anyone familiar with their shop’s billing practices and the payment practices of at least some of the largest national insurers. Each shop’s individual responses are held in the strictest confidence; only aggregated data is released.

The results of previous surveys are also available online at https://www.crashnetwork. com/collisionadvice.

Source: CRASH Network

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AkzoNobel Adds Facilities in OH, NC AkzoNobel is using advanced technologies to create step-change improvements in its North America industrial operations with the addition of a pilot manufacturing plant in Huron, OH, and a new regional research and development center in High Point, NC. The company is shaping the future through advanced technologies and delivering innovated solutions to customers. Huron’s new pilot plant is one in a network of pilot plants globally and supports AkzoNobel’s Packaging, Marine and Automotive businesses. The state of Ohio serves as AkzoNobel’s largest footprint in North America, with locations in Huron, Strongsville, Springfield and Columbus.

The company’s community of North America R&D Centers supporting the Performance Coatings businesses includes—in addition to High Point— laboratories in Troy, MI, Strongsville, OH, Houston, TX, Flying Hills, PA, and Lancaster, SC. AkzoNobel’s R&D Centers are transforming the company’s investment in science and technology while giving customers direct access to sustainable product development.

Source: AkzoNobel

New Cars Are Getting More Expensive To Fix, But Don’t Blame EVs Just Yet

By Sam D. Smith CarScoops

The cost of new car repairs has been steadily rising over the years. Increased complexity, new components and a trend towards non-repairable energy-dissipating elements mean if you’re in a collision in a new car, you’re likely going to have to pay more than ever to get it back to showroom condition.

Predictably, the rise in average repair costs—an increase of 36% since 2018—is having a knock-on effect on insurance premiums.

According to Mitchell, a company that tabulates data from insurance and auto repair, insurance rates are up by 17% in the last 12 months through May. “The modern digital architecture is so advanced that systems beyond point of impact are being disrupted,” said Ryan Mandell, director of claims performance for Mitchell, speaking to The New York Times. “Getting a car back to pre-loss condition is harder than at any point in history and will only become more challenging.”

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highlighting the sometimes excessive repair quotes for EVs, such as when a rear-ended Rivian R1T was given a $42,000 repair estimate, the data could tell a different story. In fact, while the average repair costs of an EV following an accident are indeed higher, they’re not markedly so over their ICE counterparts.

At first glance, Mitchell’s results show EVs cost $2,400 more, on average, to fix than combustion vehicles after an accident. However, 75% of electric cars involved in accidents are classed as luxury models, which cost between $40,000 and $110,000 new. Fixing a more mainstream EV—such as those from Nissan—costs only $800 more than its ICE equivalent,

while premium segment vehicles are roughly equal in their repair costs.

There are other factors at play too. According to the data, 18% of combustion vehicles involved in crashes have to be written off, while only 6% of EVs are totaled.

Meanwhile, according to evidence from the Highway Loss Data Institute, for models that are available in both electric and ICE variants, such as the Hyundai Kona and the Volvo XC40, the EVs are just 2% more expensive to fix.

Although a damaged battery pack is still going to jack up repair costs, automakers are working on ways to minimize the financial burden of such replacement. BMW‘s EVs allow for the modular replacement of battery elements identified thanks to crash sensors. GM is developing a similar method to allow dealerships to replace individual battery modules, and the Ford Mustang Mach-E can swap overall components into a new battery tray.

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Relentless Collision Opens Durham, NC Publisher Jeremy Hayhurst

Accounting & HR Manager Heather Priddy

General Manager Barbara Davies

Permissions Editor Randi Scholtes

Editor Abby Andrews Contributing Writers Mike Anderson, Ed Attanasio, Stacey Phillips, John Yoswick, Cole Strandberg Advertising Sales Joe Momber, Norman Morano Office Manager Kelly Cashman

Serving Illinois, Iowa, Indiana, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin and adjacent metro areas. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2023 Adamantine Media LLC.

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Relentless Collision opened another auto body shop location at 442 Martin Luther King Jr. Parkway in Durham, NC, the company’s third location in the Raleigh Durham market. Owner and CEO Todd McGowan was recently featured on The Collision Vision podcast by Autobody News. “Durham will specialize in electric vehicles from brands like BMW, Lexus, Land Rover, Jaguar, Volvo and Mercedes-Benz. In June, the new Durham Center was designated a Tesla Approved Collision Center. Additional OEM certifications will be announced soon with ADAS and auto glass,” McGowan said.

“Relentless Collision provides non-DRP OEM-focused repairs with on-site ADAS performed every time it is needed. We utilize OEM parts and procedures and are proud to do so in the Hope Valley market of Durham,” McGowan added.

The North Carolina MSO plans to open two more locations this year in North Raleigh and Apex, NC. Source: Relentless Collision

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New-Vehicle Quality Taking a Back Seat To Innovation As Problems Reach a Record High New vehicles are becoming more problematic, evidenced by the number of problems per 100 vehicles (PP100) rising a record 30 PP100 during the past two years. According to the J.D. Power 2023 U.S. Initial Quality Study (IQS), released June 22, the rise in problems is 12 PP100 greater than in 2022, which follows an increase of 18 PP100 in 2022 from 2021. In 2023, the industry average is 192 PP100. A lower score reflects higher vehicle quality.

The continuing decline in quality can be attributed to multiple factors such as greater usage and penetration of technology; continued integration of known problematic audio systems into other new models; poor sounding horns; cupholders that don’t serve their purpose; and new models with 11 PP100 more than carryover models.

“The automotive industry is facing a wide range of quality problems, a phenomenon not seen in the 37-year history of the IQS,” said Frank Hanley, senior director of auto benchmarking at J.D. Power. “The industry is at a major crossroad and the path each manufacturer chooses is paramount for its future. From persistent problems carrying over from years past to an increase in new types of problems, today’s new vehicles are more complex— offering new and exciting technology--but not always satisfying owners.”

The U.S. Initial Quality Study, now in its 37th year, is based this year on responses from 93,380 purchasers and lessees of new 2023 model-year vehicles who were surveyed early in the ownership period. The study is based on a 223-question battery organized into nine vehicle categories: infotainment; features, controls and displays; exterior; driving assistance; interior; powertrain; seats; driving experience; and climate.

The study is designed to provide manufacturers with information to facilitate the identification of problems and to drive product improvement.

The study was fielded from February through May 2023. While problems with driving experience are flat year over year, quality declines in all other categories.

The largest year-over-year increase in the number of problems is in the features, controls and displays category (+3.2 PP100), followed by infotainment (+2.3 PP100).

Key Findings of the 2023 Study Vehicle basic door handles are increasingly problematic: Opening a door was once a non-discussion point— an aspect of a vehicle that had been examined, engineered and mastered.

The basic touch point of door handles is now a percolating problem area as manufacturers attempt to redesign them. Owners are having issues with high-tech approaches to this

basic function; seven of the 10 most problematic models in this area are battery electric vehicles (BEVs).

Safety systems causing problems: More than three-fourths (80%) of owners say their new vehicle includes all four of the primary driver assistance features—forward collision warning, lane keeping assistance, lane departure warning and blind spot warning. However, problems owners encounter in the driver assistance category have increased 1.8 PP100 year over year. The most problematic areas are lane departure warning/lane keeping assistance (7.2 PP100) and forward collision warning/automatic emergency braking (5.0 PP100) for those that have these features.

Owners increasingly happier with apps: Manufacturer smartphone apps improve 0.4 PP100 this year as the market penetration rate grows to 76%.

BEV owners in particular use their app at least 68% of the time, primarily to monitor the charging process and to view their vehicle’s available range. The higher usage and unique BEV use cases translate to more problems experienced using the app in comparison to those with an internal combustion engine vehicle. Android Automotive Operating System (AAOS) issues: A 21.5 PP100 gap exists between vehicles that have an Android Automotive OS without Google Automotive Services (51.1 PP100) and those vehicles that don’t have this system (29.6 PP100). This is only for the operating system for in-vehicle infotainment, not for the smartphone mirroring systems of Android Auto or Apple CarPlay.

Smartphone charging becomes most deteriorated problem: Across all 223 problems measured in the study, wireless charging pad not working properly has increased by a sizable 1.1 PP100 and is driven by both increased penetration and more usability issues with the technology. Users are experiencing several problems, including poor location, phone overheating and intermittent charging, if at all. “This is the area where manufacturers really have the opportunity to delight customers with this convenience, but instead are creating a problem for them,” Hanley said.

Biggest movers and shakers: Brands that show the largest year-over-year improvement are Maserati (73 PP100 improvement), Alfa Romeo (68 PP100 improvement) and Ram (45 PP100 improvement).

Unofficially ranked automakers fill bottom spots: Tesla Motors, with 257 PP100, increases 31 PP100 year over year, while Polestar (313 PP100) improves 15 PP100 year over year. Lucid Motors (340 PP100) and Rivian Motors (282 PP100) are included in the industry calculations for the first time but have

too small a sample size to be award eligible. These automakers are not officially ranked amongst other brands in the study as they do not meet ranking criteria. Unlike other manufacturers, they do not grant J.D. Power permission to survey its owners in states where authorization is required. Nonetheless, a score was calculated based on a sample of surveys from owners in the other states.

Highest-Ranking Brands and Models Dodge is the highest-ranking brand overall in initial quality with a score of 140 PP100. Among mass market brands, Ram (141 PP100) ranks second and Buick (162 PP100) ranks third.

Among premium brands, Alfa Romeo ranks highest with a score of 143 PP100. Porsche (167 PP100) ranks second and Cadillac (170 PP100) ranks third. The parent corporation receiving the most model-level awards is General Motors Company (seven awards), followed by Hyundai Motor Group (five) and Toyota Motor Corporation (four). Among brands, Chevrolet and Kia receive the most segment awards (four).

General Motors Company models that rank highest in their respective segments are Buick Encore GX, Cadillac Escalade, Cadillac XT6, Chevrolet

Camaro, Chevrolet Corvette, Chevrolet Equinox and Chevrolet Tahoe.

Hyundai Motor Group models that rank highest in their respective segments are Genesis G80, Kia Carnival, Kia Forte, Kia Rio and Kia Stinger.

Toyota Motor Corporation models that rank highest in their respective segments are Lexus GX, Lexus IS, Toyota Camry and Toyota 4Runner.

Nissan Motor Co., Ltd. has the highest-ranking model overall, the Nissan Maxima with 106 PP100, and the Nissan Murano ranks highest in its respective segment.

Plant Quality Awards Toyota Motor Corporation’s Tahara Lexus, Japan, plant, which manufactures the Lexus IS, Lexus LS and Lexus NX, receives the Platinum Plant Quality Award. Plant quality awards are based solely on defects and malfunctions and exclude design-related problems.

General Motors Company’s plant in San Luis, Potosi, Mexico, which produces the Chevrolet Equinox and GMC Terrain, receives the Gold Plant Quality Award for North/South America. BMW AG’s plant in Born, Netherlands, which produces the MINI Cooper and MINI Countryman, receives the Gold Plant Quality Award for Europe and Africa.

Source: J.D. Power

Tesla Giga Texas Model Y Line To Pause, Some Workers To Shift To Cybertruck: Observer

By Simon Alvarez Teslarati

According to an observer of Gigafactory Texas, Tesla will be pausing Giga Texas’ Model Y line for upgrades at the beginning of July. Some staff from the EV production facility are reportedly being reassigned to the Cybertruck as well.

Gigafactory Texas is observed by several dedicated drone operators on a consistent basis. Among the most notable is Joe Tegtmeyer, who has been chronicling the progress of the Tesla site since its earliest days.

Citing information reportedly gathered from various channels and his own observations of the Giga Texas complex, Tegtmeyer said Model Y production is expected to be paused for upgrades in the beginning of July. The downtime is expected to last about five days.

Gigafactory Texas is

reportedly moving away from swing shifts as well, with the facility adopting a simpler day and night shift system.

Workers who were in the swing shift for the Model Y line will reportedly be dedicated to the Cybertruck’s production lines to finalize testing and calibration. This way, the Cybertruck line could enter production status. Tegtmeyer said this will likely take place around July to August.

The production of the Model Y all-electric crossover will likely see a short-term decline as workers are trained for the vehicle’s revised production systems. After this period, however, the Model Y’s production is expected to ramp, and while a weekly target is yet to be teased, speculations are high the revised lines will be able to hit outputs higher than the 5,000 per week Giga Texas previously attained.

autobodynews.com / AUTOBODY NEWS AUGUST 2023 47

48 AUGUST 2023 AUTOBODY NEWS / autobodynews.com