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37 YEARS

SOUTHEAST EDITIO N

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

2018 Collision Repair Industry: A Year in Review by Chasidy Rae Sisk

From President Trump’s meeting with North Korea’s Kim Jong-un to the many tragic shootings and storms that have ravaged the United States in 2018, this year has been one of metamorphosis, altering reality and perception for many individuals. The same holds true for the collision repair industry and its associations, which have faced a variety of organizational changes and neverending updates in technology and requirements. As 2018 draws to a close, several association leaders were willing to share some feedback about their

associations’ best and most memorable changes this past year. Changes in leadership were a recurring theme that many associations saw in 2018. The Mississippi Collision Repair Association (MSCRA) received a new executive director, Ricki Garrett. Evangelos “Lucky” Papageorg began serving as executive director for AASP/MA. AASP/ NJ’s role of president has been filled by Jerry McNee. Tony Ferraiolo of the Auto Body Association of Connecticut (ABAC) has passed the presidential gavel to Bob Amendola, and Michelle Sullivan assumed the See A Year in Review, Page 10

Automakers at OEM Summit Offer Updates on Certified Collision Repair Center Programs by John Yoswick

The Society of Collision Repair Specialists’ (SCRS) day-long OEM Col-

Nicole Riedel of Subaru said the automaker’s certified shop program will be opening up for independent shop participation

lision Repair Technology Summit held in Las Vegas during SEMA included updates from a number of automakers on their collision shop certification programs. Nicole Riedel of Subaru of America, for example, said that independent shops will soon be added to her company’s shop certification program that was launched with dealership shops this past June. “We have a little over 600 retailers across the U.S., and of that, at most one-third have collision centers,” Riedel said. “That’s not nearly See OEM Summit, Page 22

AUTOBODYNEWS.COM

Vol. 9 / Issue 10 / December 2018

Progressive Corporation’s Appeal Dismissed by State Appeals Panel in FL by Emmariah Holcomb, glassBYTEs.com

Progressive Corporation’s appeal was dismissed by the state appeals panel in Florida in early November. The auto insurer has been accused of piling windshield replacement companies with the cost of insurance appraisals, according to court documents. Two years ago, four companies sued Progressive in a county court, claiming the company was in breach of contract for only paying a portion of covered windshield repairs. The four windshield replacement companies are: • • • •

SHL Enterprises LLC, Shazam Auto Glass LLC, Glassmetics LLC, and Lloyd’s of Shelton Auto Glass LLC

According to Progressive, its company policy includes an appraisal provision that works to resolve repair cost disputes. The windshield replacement companies claimed the appraisal provisions violated state law. According to the panel, the county court agreed and considered the provisions unenforceable because it requires windshield companies to pay for appraisal costs. The court claimed this was equivalent to a deductible. The appeals panel claimed the lower courts, who had previously viewed the case, misunderstood state laws after these instances:

• The lower courts referred to the company’s cost-shifting as a deductible, and See Appeal Dismissed, Page 9

11th Circuit Considers Whether to Reinstate Auto Insurance Price-Fixing Claims

ices by agreeing among themselves to pay a preset “market rate” and to enThe U.S. Court of Appeals for the force compliance by “steering” their Eleventh Circuit heard arguments Oct. insureds to businesses that play ball, 23 leveled by a group of auto body re- effectively boycotting other shops. pair shops claiming State Farm InsurIn addition to State Farm, the defendants include Allstate, Progressive, GEICO, Nationwide, USAA, Liberty Mutual and Hartford, among others. Sitting en banc, the judges were considering whether to keep alive multidistrict litigation that was tossed out by a district judge for failure to Mark Shurtleff (left) and John Eaves. Republished with state a claim, then revived by permission. Credit: John Disney, ALM/Daily Report a split panel last year. ance and a host of other national The cases have been combined carriers are conspiring to fix prices. in Florida’s Middle District, and the The plaintiffs say the insurers instant appeals represent five of 14 have conspired to drive down the similar complaints combined in the prices they’re charged for repair servSee Price-Fixing Claims, Page 16 by Greg Land, Daily Report

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DECEMBER 2018 AUTOBODY NEWS / autobodynews.com


CONTENTS Their Collision Repair Careers . . . . . . . . . . . 38

AL Lawmakers Get Closer to Passing Hands-Free Driving Laws . . . . . . . . . . . . . . 12 Albany, GA, Technical College Students Return to Classrooms . . . . . . . . . . . . . . . . . 17 Collision Industry Author Donates First Funds . . 6 Dickinson Fleet Services Acquires Truck City

NATIONAL ‘Dose of Reality’ Needed on Auto Market Predictions, Claims NADA Chairman . . . . . . 41 11th Circuit Considers Whether to Reinstate Auto Insurance Price-Fixing Claims . . . . . . . . 1

Body Co., Fleet Technology & Maintenance

2018 Collision Repair Industry: A Year in Review . 1

Corp. in FL . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Automakers at OEM Summit Offer Updates on

Feds Shut Down Ill-Advised Driverless School Bus Tests in FL . . . . . . . . . . . . . . . . . 9 IGONC Creates Disaster Relief Fund for Storm-Damaged Body Shops . . . . . . . . . . . . 6 IGONC Triangle Chapter Learns About Big Ticket Items . . . . . . . . . . . . . . . . . . . . . 12 Number of Flooded Cars on the Road Jumps 47% Over Past Year . . . . . . . . . . . . . 60 Phillips - How Independent Nashville Body Shop Is Nurturing Homegrown Talent . . . . . 26 Progressive Corporation’s Appeal Dismissed by State Appeals Panel in FL . . . . . . . . . . . . . 1 Sisk - IGONC’s 2018 ASTE Proves To Be Large Success . . . . . . . . . . . . . . . . . . . . . . 18 VA Collision Center Owner, Signs Designer Provide New Signs for Food Pantry . . . . . . . . 8 Vanceboro, NC, Used Car Lot Is Likely Subject of Insurance Fraud . . . . . . . . . . . . . . 8

Certified Collision Repair Center Programs . . 1 AutoNation Embarks on New Parts Path . . . . . 58 AutoNation Launches New Theme Vehicle for Breast Cancer Awareness . . . . . . . . . . . 58 Autonomous Vehicles May Hit U.S. Roads Under Pilot Project . . . . . . . . . . . . . . . . . . . . 4

Anderson - Toyota’s Training Website Offers Free Information for Collision Repairers. . . . 42 Attanasio - Industry Veteran Creates Vintage Wine Furniture . . . . . . . . . . . . . . . . 44 Attanasio - PPG’s Jennifer Jarzembowski Discusses Impact of OEM Certifications . . . 52 Ledoux - The Fabulous ‘50s and Mr. O’Donnell’s Invention . . . . . . . . . . . . . . . . . 48 Phillips - 5 Key Steps to Implementing Practical Production Processes . . . . . . . . . . 46 Phillips - Why OEM Certifications Are Critical to Remain in Business. . . . . . . . . . . 36 Sisk - CCRE’s Fall Seminar & Convention Teaches Body Shop Owners Another Way of Conducting Business . . . . . . . . . . . . 30 Sisk - Dave Luehr Teaches WIN Members How To Develop a WINner’s Mindset . . . . . . 50 Sisk - The Next Generation Speaks Out on

SEM is a leading manufacturer of repair and refinish products used primarily for automotive and other transportation applications.

The company is known for various flagship products that offer convenience, including Color Coat, the original flexible coating and mixing system; Bumper Coater, the first product to restore original equipment manufacturer (OEM) finishes on plastic bumpers and cladding; and Dual Mix, a two-part cartridge system for adhesives, fillers and sealers. “PPG’s acquisition of SEM will complement our current automotive refinish product offering and add specialized, value-added products that address the needs of distributors and body shops,” said Gary Danowski, PPG vice president, automotive refinish.

AWAF Workshop Focuses on Finance, Accounting for the Non-Financial Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Axalta Hosts Automotive Career Fair . . . . . . . . 56 CARSTAR Weighs in on the Hefty Costs of Hazardous Deer . . . . . . . . . . . . . . . . . . . 56 Certified Collision Group™ and PPG Create Alliance . . . . . . . . . . . . . . . . . . . . . . 20 CIECA Welcomes Broadly as New Corporate Member . . . . . . . . . . . . . . . . . . . 53 CIF Elects Scott Walton as New Trustee . . . . . . 12 CREF Fundraiser Co-Hosted by PPG Raises $130,000 . . . . . . . . . . . . . . . . . . . . . . . . . . 61

COLUMNISTS

PPG announced that it has reached a definitive agreement to acquire SEM Products, Inc. The transaction is expected to close in the fourth quarter 2018, subject to customary closing conditions. Financial terms were not disclosed.

CREF Receives $100,000 Donation From Allstate Insurance . . . . . . . . . . . . . . . . . . . . 60 Elon Musk Pledges to Improve Tesla’s Service Location Coverage Within 3−6 Months . . . . 54 Fake Recall Notices Get Car Dealers in Trouble With FTC . . . . . . . . . . . . . . . . . . . . . 57 Mitchell Partners With VeriFacts . . . . . . . . . . . 53 NCACAR, SCACAR Co-Host Foundation to Ironclad Estimating Class . . . . . . . . . . . . 29 PPG to Acquire SEM Products, Inc. . . . . . . . . . . 3 Sherwin-Williams Joins CIECA . . . . . . . . . . . . 17 Thieves are Stealing Airbags From New Honda Civics and Accords . . . . . . . . . . . . . . 61 Top 10 States for Animal Loss Claims in 2017. . 45 Trump’s EPA Rattles Self-Driving Car Industry by Picking ‘Winners and Losers,’ Critics Claim . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 WIN Announces Opening of Most Influential Women Nominations . . . . . . . . . . . . . . . . . . 61

INDEX OF ADVERTISERS

REGIONAL

PPG to Acquire SEM Products, Inc.

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli, Gary Ledoux Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bill Pierce Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Rochelle Beckel Accounting Manager: Heather Priddy Editorial/Sales Assistant: Randi Scholtes

Serving Florida, Georgia, Alabama, Mississippi, Virginia, West Virginia, Tennessee, North Carolina, South Carolina 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. ©2018 Adamantine Media LLC.

Audi Wholesale Parts Dealers . . . . . . . . . . 55 AutobodyLaw.com . . . . . . . . . . . . . . . . . . 36 AutoNation Collision Parts . . . . . . . . . . . . . 19 Axalta Coating Systems . . . . . . . . . . . . . . 2,9 AZ Automotive Finishes. . . . . . . . . . . . . . . 17 BMW Wholesale Parts Dealers . . . . . . . . . 57 Braman Miami . . . . . . . . . . . . . . . . . . . . . 64 Carcoon America Airflow Systems. . . . . . . 22 Chicago Pneumatic Compressors . . . . . . . 18 Classifieds . . . . . . . . . . . . . . . . . . . . . . . . 62 Coggin Deland Honda . . . . . . . . . . . . . . . . 50 Dale Earnhardt Jr. Chevrolet . . . . . . . . . . . . 6 Daytona Dodge-Chrysler. . . . . . . . . . . . . . 20 Dent Magic Tools . . . . . . . . . . . . . . . . . . . 24 Dominion Sure Seal . . . . . . . . . . . . . . . . . 28 ECS Automotive Concepts . . . . . . . . . . . . . 38 Equalizer Industries, Inc . . . . . . . . . . . . . . 29 Ford Wholesale Parts Dealers . . . . . . . . . . 56 GM Wholesale Parts Dealers . . . . . . . . . . . 51 Gus Machado Ford . . . . . . . . . . . . . . . . . . 44 GYS Welding USA . . . . . . . . . . . . . . . . . . . 26 Hendrick Automotive Group. . . . . . . . . . . . 43 Hendrick BMW/MINI . . . . . . . . . . . . . . . . . 45 Hendrick Honda Pompano Beach . . . . . . . 49 Hendrick Kia Cary . . . . . . . . . . . . . . . . . . . 34 Hendrick Kia Concord . . . . . . . . . . . . . . . . 34 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . 31, 32-33 Hyundai Wholesale Parts Dealers . . . . . . . 58 Jim Cogdill Chrysler-Dodge-Jeep-Ram . . . 12 Jon Hiester Automotive . . . . . . . . . . . . . . . 48

Kernersville Lexus-CDJR-GM . . . . . . . . . . 35 Kia Motors Wholesale Parts Dealers . . . . . 59 Launch Tech USA . . . . . . . . . . . . . . . . . . . 63 Lexus Wholesale Parts Dealers . . . . . . . . . 61 Matrix Automotive Finishes . . . . . . . . . . . . 25 Mercedes-Benz. . . . . . . . . . . . . . . . 7, 13, 21 Mercedes-Benz Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . . . . . . . . 54 MINI Wholesale Parts Dealers . . . . . . . . . . 57 MOPAR Wholesale Parts Dealers . . . . . . . . 37 Polyvance . . . . . . . . . . . . . . . . . . . . . . . . . 23 Porsche Wholesale Parts Dealers . . . . . . . 54 Radley Chevrolet. . . . . . . . . . . . . . . . . . . . 52 RBL Products . . . . . . . . . . . . . . . . . . . . . . 27 Rick Hendrick Chevrolet Naples . . . . . . . . 40 Rick Hendrick MOPAR Southeast Wholesalers . . . . . . . . . . . . . . . . . . 14-15 Riverside Ford-Lincoln . . . . . . . . . . . . . . . 49 Robaina Industries, Inc . . . . . . . . . . . . . . . 39 SATA Dan-Am Company . . . . . . . . . . . . . . . 5 Sherwin-Williams Automotive Finishes . . . 11 Smith Kia . . . . . . . . . . . . . . . . . . . . . . . . . 47 Southside Kia . . . . . . . . . . . . . . . . . . . . . . 41 Spanesi Americas . . . . . . . . . . . . . . . . . . . . 8 Stateline Chrysler-Dodge-Jeep-Ram. . . . . 16 Subaru Wholesale Parts Dealers . . . . . . . . 53 Symach . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Tameron Hyundai . . . . . . . . . . . . . . . . . . . 42 Volkswagen Wholesale Parts Dealers . . . . 61 West Broad Hyundai . . . . . . . . . . . . . . . . . 46 YesterWreck . . . . . . . . . . . . . . . . . . . . . . . 10

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Trump’s EPA Rattles Self-Driving Car Industry by Picking ‘Winners and Losers,’ Critics Claim by Joe Williams, Washington Examiner

Critics are blasting a new Environmental Protection Agency rule that they claim breaks the Trump administration’s commitment not to arbitrarily pick winners and losers in the self-driving car market. Tucked into the EPA’s proposed Safer Affordable Fuel-Efficient, or SAFE, Vehicles rule released in August is language that would give companies credit toward emissions standards for producing cars that include vehicle-to-vehicle communication capabilities—technology that allows autonomous cars to exchange speed and position information with each other to prevent accidents. The EPA and the National Highway Traffic Safety Administration are suggesting that the credit, which might be granted without a requirement for corroborating evidence that the technology reduces carbon dioxide output, be tied to a car’s ability to transmit data using dedicated shortrange communications, or DSRC, which relies upon a specific wireless spectrum to blast out signals. Shortly before President Trump

was sworn into office, the Obama administration released a controversial draft rule mandating that DSRC be used in autonomous cars. The Trump administration reportedly shelved the proposal, and some manufacturers are starting to use cellular communication instead, which proponents argue is more reliable and has a longer range. Companies such as Audi and Ford have embraced the technology and demonstrated it in vehicles earlier this year. Toyota and General Motors, meanwhile, have adopted DSRC, though it’s unclear why that system was chosen by the EPA. Neither manufacturer responded to inquires about whether it had lobbied for the provision. GM, which offered dedicated short-range communications in some 2017 Cadillac sedans, pledged in July to expand it to other vehicles. Other manufacturers such as Tesla and Mercedes-Benz raised concerns over the technology’s security vulnerabilities, however, and critics of the EPA proposal say the Department of Transportation, which encompasses the traffic safety administration and has repeatedly stressed that it would

take a technology-neutral approach to regulating self-driving vehicles, is reneging on its commitment. “If they were to go forward with this, this would violate the [agency’s] pledge to technology neutrality,” Marc Scribner, senior fellow at the Competitive Enterprise Institute, told the Washington Examiner. “What they are doing is picking technology winners and losers.” That might be happening at the expense of better, safer options. “It creates, inadvertently, technological lock-in,” Ryan Hagemann, senior director for policy at the Niskanen Center, said in an interview. “You are more likely to simply rest on your laurels and default to what the standard is rather than trying to improve on top of it.” Scribner said the provision could also spur other companies to “lobby to try to gain similar favors in the future for their particular technologies” and anger environmentalists who were already critical of the data EPA used to justify credits. “It could wind up putting a big target on the entire program’s back,” he said. The EPA directed inquiries to

Autonomous Vehicles May Hit U.S. Roads Under Pilot Project by Mario L. Major, Interesting Engineering

The U.S. DOT and NHTSA, two key agencies involved in the automotive industry, are both making efforts to be more inclusive of the emerging autonomous car industry.

Credit: Pexels

Autonomous cars, self-driving cars, unmanned cars, driverless cars ... Whatever we choose to name them, they are entering our lives in unprecedented numbers, with almost every major car company in the world dramatically stepping up efforts to enter the market or laying out concrete plans to do so via the ever-effective concept car unveilings. Although it is clear that the industry is on board with developing 4

autonomous vehicle technology, it is equally important to have healthy engagement and support from local governments. For this reason, the recent announcement of an autonomous vehicle pilot program being considered by the Trump Administration is drawing attention. According to the National Highway Traffic Safety Administration (NHTSA), the powerful agency that serves as the final authority on deciding which vehicles get to hit the roads in the United States, it is behind the initiative. In the report on the program, which calls for collaborative research with the U.S. Department of Transportation (U.S. DOT), the agency indicated the program was developed to understand “how best to foster the safe development and implementation of ADS vehicle technologies on our nation’s roadways.” This move also coincides with the announcement of a new set of vehicle safety ratings. The NHTSA already has in place a clear set of the six levels of driver assistance tech-

DECEMBER 2018 AUTOBODY NEWS / autobodynews.com

nology advancements, which is another endorsement of the technology, but this new program would play a big role in helping reduce some of the technical obstacles (lack of pedals or steering wheels), which seem to place heavier restrictions on automated car use. Agency Support Is Shifting in the U.S. The support, though reserved, of the NHTSA represents a strong official endorsement of the growing influence of autonomous vehicles and more importantly, offers the symbolic meaning of government and industry coming together around this vital technology. It also helps to quiet the critics, lobbyists and various members of government who voice opposition to the vehicles based on concerns about safety. Another positive development is a U.S. DOT-supported effort to simplify the legal frameworks surrounding autonomous vehicles. The U.S. DOT provided an 80-page document titled “Preparing for the Future of Transportation: Automated Vehicles 3.0.” “The safe integration of automated vehicle technology into our transportation system will increase

the Department of Transportation, which referred inquiries to the traffic safety administration. That organization said it would carefully consider all comments before enacting a final rule. The Alliance of Automobile Manufacturers, which counts GM and Toyota as members, also supported DSRC. Executives at the group met with officials from the transportation department, the EPA and the Office of Management and Budget in June to discuss the SAFE Vehicles rule. A spokesman for the group was unaware whether the provision was discussed. “If those types of credits were brought up, they would have played a very minor role in the discussion,” he said in an emailed response to inquiries. While self-driving technology is an unconventional means of reducing toxic emissions from vehicles, it is effective, he added. “The agencies should incentivize the adoption of these technologies and provide for possibly additional credit,” he said. We thank Washington Examiner for reprint permission.

productivity, facilitate freight movement and create new types of jobs,” said Secretary Elaine L. Chao. The goal of the program is to (1) provide a framework for communication between industry and the U.S. DOT, (2) identify in greater clarity any existing policy issues and (3) create a blueprint of multi-modal safety that incorporates autonomous vehicles. The agency also makes clear its commitment to overhauling the language it uses in order to create standards that take into account the new technological reality of autonomous vehicles: “U.S. DOT will modernize or eliminate outdated regulations that unnecessarily impede the development of automated vehicles or that do not address critical safety needs. Whenever possible, the department will support the development of voluntary, consensus-based technical standards and approaches that are flexible and adaptable over time.” We thank Interesting Engineering for reprint permission.

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autobodynews.com / DECEMBER 2018 AUTOBODY NEWS

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Dickinson Fleet Services Acquires Truck City Body Co., Fleet Technology & Maintenance Corp. in FL by Alex Brown, Inside INdiana Business

Indianapolis-based Dickinson Fleet Services is growing its footprint in south Florida. The company has acquired Fleet Technology & Maintenance Corp. and Truck City Body Co., both of which

are based in the Miami area. Financial terms of the acquisition are not being disclosed. Dickinson Fleet Services, which provides mobile truck maintenance and repair services throughout the country, says the acquisition makes it one of the largest truck repair and fleet management companies in south Florida and adds to its growing national presence. FTM provides truck repair and fleet management services through

mobile onsite and shop services. Truck City Body Co. provides collision repair and paint services for heavy trucks, commercial buses and trailers. “Since entering this market eight years ago, we have recognized Fleet Technology & Maintenance Corporation as being an outstanding provider with a strong reputation for providing exceptional service,” Ted Coltrain and Mike Dickinson, executive officers of DFS, said in a news release. “Truck City Body Company has a state-of-the-art facility with outstanding employees and complements the other commercial body shop facilities within Dickinson Fleet Services.” The deal with both companies is the sixth acquisition for DFS since the spring of 2017. Most recently, the company announced the acquisitions of Outsource Fleet Services Inc. in June and Michigan-based Fleet Enterprises Inc. in May. We thank Inside INdiana Business for reprint permission.

Collision Industry Author Donates First Funds While speaking before the most recent Collision Industry Conference held in Las Vegas, NV, announcing the official launch of his new book, YesterWreck: The History of the Collision Repair Industry In America, industry veteran and author Gary Ledoux stopped to call to the stage Brandon Eckenrode, director of development for the Collision Repair Education Foundation to present him with a check for $500 for the Chuck Sulkala NABC Appreciation Scholarship Fund. A portion of each book sold by Ledoux is earmarked for the fund. The book first went on sale on Sept. 12. The Sulkala scholarship program honors National Auto Body Council (NABC) founder and longtime Executive Director Chuck Sulkala, who retired earlier this year after a most notable career in the collision repair industry. The funds will help future collision repair technicians further their education. NABC is the premier organization of collision industry partners dedicated to strategic networking opportunities to positively promote the collision repair industry.

“This industry is known for ‘giving back’ in so many ways,” said Ledoux. “I am proud to be able to do that in my own small way—by bringing the industry’s history to light and helping future industry technicians further their education.” Author Gary Ledoux has spent almost 50 years in the automotive business, starting at an auto parts – PBE jobber in his native New Hampshire. The last 29 years of his career were spent at American Honda. The last 12 of those years were spent on the collision side of the business, where, among other duties, he administered the OE’s body shop certification program. Ledoux retired in October 2017 and now works part-time as a freelance journalist. His book is available through his website at www.yesterwreck.com.

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IGONC Creates Disaster Relief Fund for StormDamaged Body Shops by Chasidy Rae Sisk

In response to the devastation seen along the eastern shore of North Carolina and South Carolina following Hurricane Florence, the Independent Garage Owners of North Carolina (IGONC) created a disaster relief fund to help shops that were hit by the storm. IGONC Executive Director Bob Pulverenti stated, “Many of the shops are underinsured; even those that had coverage will still be hit hard financially. The Independent Garage Owners of North Carolina has been serving the owners of independently owned shops since 1959, and we know that our members who came out OK after the storm would love to support the shops who didn’t end up as lucky. Please help us to help those in our industry get back on their feet as quickly as possible.” RepairPal and AutoShop Solutions have partnered with IGONC by pledging to each match donations up to $5,000. Shops that were impacted can contact IGONC with their name, 6

name of the business, address, brief description of the loss and photos. Both member and non-member shops are eligible for this assistance. Non-member shops will receive $250, which will become $750 after funds are matched, while IGONC member shops are eligible for $500, which increases to $1,500 after matching funds. Members will also have their 2019 dues waived. The association will begin issuing checks in late October until funds are depleted. To donate, visit https://www.go fundme.com/help-repair-shops-hitby-florence?member=774482. IGONC also encourages impacted shops to contact the Collision Industry Foundation for additional assistance at www.collisionindustry foundation.org. Pulverenti reiterated, “As members of the independent repair shop community, we encourage you to support shops in need. Thank you for being a force for good. Donate today!”

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DECEMBER 2018 AUTOBODY NEWS / autobodynews.com

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7


VA Collision Center Owner, Signs Designer Provide New Signs for Food Pantry

Vanceboro, NC, Used Car Lot Is Likely Subject of Insurance Fraud

by Staff, The Gazette-Virginian

by Bill Hand, Sun Journal

hunger in Halifax County. But now that has changed, When the Jane Jones Food Pantry thanks to David and Jennifer Epps. The Jane Jones Food Pantry first began operating in 2009, it did so without any signage show- now has new signs identifying the ing residents the location of the location of the food pantry. “We are most appreciative food assistance program. of their kind donation showing their community support for those in need,” said Food Pantry Director Betsy Anderson. David owns and operates Epps Collision Center, where cars are transformed from damaged to new using the latest technology for re(l to r) Betsy Anderson, food pantry director; David pairing and painting veEpps, Epps Collision Center owner; David Lawson, hicles. food pantry chairman; and Wayne Rickman, pastor. Jennifer, Superior Submitted photo Signs designer, operator It was only through word-of- and business manager, assists with mouth that the community came sign designs and production, resultto know that the Jane Jones Food ing in professional signs thatare loPantry, located at Main Street cated throughout the community. United Methodist Church in South Boston, VA, offered monthly food We thank The Gazette-Virginian distribution to address the chronic for reprint permission.

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DECEMBER 2018 AUTOBODY NEWS / autobodynews.com

The Craven County Sheriff’s Office and CNET (Coastal Narcotics Enforcement Team) have made what investigators say is a major drug bust, and very likely a major insurance fraud bust as well, at a used car dealership in Vanceboro, NC. Alton Green, owner of O&G’s Auto Sales, has been charged. According to Sheriff Jerry Monette, the dealership, located about a mile south of Vanceboro on US 17, has been a front for the sale of drugs and also the scene of insurance scams in which the cars are intentionally damaged or lost and reported stolen for the insurance payout. CNET officers and Ringo, a New Bern police K9, raided the business Oct. 17 and, as of 5 p.m. that day, were still on the scene. “We found a large quantity of heroin and fentanyl,” Captain John Whitfield said. “It’s pure fentanyl, so it’s really dangerous.” He said the investigation has been going on for a year, during which time undercover agents made pur-

chases of drugs. “He’s a major dealer here,” Whitfield said. Whitfield said that investigators believe that Green “is sort of laundering money” through the business. He said the License and Theft division of the Department of Motor Vehicles is investigating any crime involving the autos, while Monette said he expects the cars will ultimately be confiscated. A warrant was also being served on Alton’s house, the sheriff noted, and added that other arrests could be made. Monette said the ability to do the investigation was largely in thanks to additional funding by the Craven County Commissioners. “They asked what we needed, and we gave them a list,” he said. “They gave us extra funding for personnel, equipment and buy money. They were very generous.” Officers did not say exactly what charges would be filed against Alton. We thank Sun Journal for reprint permission.


Feds Shut Down Ill-Advised Driverless School Bus Tests in FL by Tristan Greene, The Next Web

A technology company operating in Babcock Ranch, FL, was ordered by the U.S. Department of Transportation on Oct. 19 to cease activity on a pilot program using autonomous vehicles to transport school children. The Next Web reported in September that tech startup Transdev had entered an agreement with the progressive city of Babcock Ranch to demonstrate its autonomous shuttles. At the time, The Next Web called the initiative, which saw young children riding the bus on public roadways, reckless. It looks like The Next Web wasn’t the only one who thought as much.

The NHTSA released a statement ordering the company to stop:

“The U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) has issued a letter directing Transdev North America to immediately stop transporting school children in the Babcock Ranch community in Southwest Florida on the EZ10 Generation II driverless shuttle.” The document calls the program “illegal” and says Transdev failed to disclose pertinent

information to the government when it requested permission to use the autonomous shuttles in Florida. “In March 2018, NHTSA granted Transdev permission to temporarily import the driverless shuttle for testing and demonstration purposes. Transdev

requested permission to use the shuttle for a specific demonstration project, not as a school bus. Transdev failed to disclose or receive approval for this use. School buses are subject to rigorous Federal Motor Vehicle Safety Standards that take into account their unique purpose of transporting children, a vulnerable population.” Actions like Transdev’s, whether intentional or through ignorance of federal laws surrounding the transportation of school children, are a black eye on the entire field of AI. Worse, they invite regulation. Facebook’s AI guru, Yann

Continued from Cover

LeCun, recently said it was nuts to invite AI regulation at this point. His assertion is that government involvement could quickly stagnate developments beyond what we’ve accomplished so far with deep learning. If the government steps in and says companies, already under certain guidelines concerning public safety, have to take additional steps to develop products, it could stifle or even cripple cutting-edge research. There’s a fine line between necessary oversight and clunky regulations. The way we keep the needle towards the former isn’t by using children as the subject of a test involving autonomous robotics. Especially considering that the most current research indicates that driverless vehicles may be at greater risk for collision from human drivers than human-driven vehicles are. It’s clear that autonomous vehicle technology isn’t ready to be trusted with our children’s lives. And it’s disturbing that the federal government had to get involved before the leadership of an entire city and an AI company were made to realize that. We thank The Next Web for reprint permission.

Appeal Dismissed

• Accused Progressive of not citing appellate case law before it rejected the appeal.

“By improperly restricting the scope of its own certiorari review, the circuit court did not engage in a meaningful analysis of the county court’s order and thus could not have concluded that there was no departure from the essential requirements of the law,” the panel said in court documents. We thank glassBYTEs.com for reprint permission.

Your leading source for SOUTHEASTERN Collision Repair News! southeastern.autobodynews.com

autobodynews.com / DECEMBER 2018 AUTOBODY NEWS

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role of chair for the Women’s Industry Network (WIN®). With new leadership, it’s not surprising to find that many associations have also undergone some internal changes in their approaches to meetings, training material and other initiatives. The Indiana Auto Body Association (IABA) recently changed its meeting format to ensure

Pellman shared. “We all agreed this was something our front office staff needed and something that has been missing in our industry. These training opportunities are open to everyone, and we welcome the unilateral participation and support from such outstanding associate members of ASA-CO.” The North Carolina Association of Collision and Autobody Repair (NCACAR) continued making strides to improve the industry in its state.

some consistency in the material discussed by chapters across the state. AASP/MA has also taken a new approach to better reach members across the state. Papageorg explained, “We have returned to our roots as a collision repair association, re-implementing regional and local chapter meetings to better connect with our membership.” ASA-MI President Ray Fisher shared, “We changed our meetings this year to include an AMi training session at each location. These are pre-recorded sessions that are available to everyone, and they cover seven major topics, usually specific to the automotive repair business. The sessions that we held were approximately 40 minutes in length, allowing us to cover other business and updates at the same time. I enjoyed them because at every session, I saw attendees writing things down, which tells me they learned something they wanted to implement and apply to their business. Complacency kills the business, while humility brings it to life. Our industry is changing so quickly and abundantly that we must keep learning, and it’s great to host professionals that continue to improve and help our members improve as well.” ASA-CO created a partnership with NAPA BDG and Advance Auto Parts in 2018 in order to “provide a regular manager and leadership training program throughout the year,” ASA-CO Chairman Brad

According to Board Member Elijah Winans, “NCACAR moved the needle in regards to creating a relevant collision association in North Carolina in 2018. More than just being an association, we are now creating a movement focused on our mission statement by continually improving the professionalism and business practices of those engaged in the collision repair industry through education, initiatives and strong leadership, and we started off the year by doing this with the most influential news maker in collision of our time: Todd Tracy.” Industry associations across the country also experienced many changes related to who organized and contributed to various conferences intended to educate industry professionals. AASP/NJ’s 2018 NORTHEAST® Trade Show included collaborating with the Washington Metropolitan Auto Body Association (WMABA), which organized the show’s Collision Prep education series for the first time. AASP/NJ’s Jerry McNee indicated that the show’s success was one of the most memorable events of 2018 for the association, calling it its “best show yet.” According to MSCRA’s Ricki Garrett, “I think our most memorable activity of 2018 was taking over the Southern Automotive Repair Conference (SARC) from Steve Plier of Alabama. Steve had begun the conference and provided an excellent automobile repair conference for the southeastern region for many years

Continued from Cover

A Year in Review

“Turning our trade show around from declining attendance over the years and taking it to a level where we are very proud of it was one of the best things we did this year,” — Bob Pulverenti

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DECEMBER 2018 AUTOBODY NEWS / autobodynews.com

but was ready to retire from this responsibility. The Mississippi Collision Repair Association had the ability to take this on and try to create an even bigger and better conference for the future.” The Auto Body Association of Texas also made large strides with its annual conference. ABAT President Burl Richards shared, “Having our trade show this year was one of the most memorable things because we were able to bring legislators inside the ‘collision arena,’ and it allowed them to see all the specialized equipment needed to repair vehicles properly, along with a lot of the technology that has changed our industry and the way we repair vehicles. It also allowed Texas shops to vet questions and give our concerns to the legislators that are headed into session in a few months, which hopefully will carry weight with our legislative efforts. The unveiling of the crash-tested Honda Fit that was repaired using OEM parts was also a great moment during the show, as we are attempting to define what LKQ parts really are.” The Independent Garage Own-

ers of North Carolina (IGONC) was proud to improve its trade show in 2018 as well. “Turning our trade show around from declining attendance over the years and taking it to a level where we are very proud of it was one of the best things we did this year,” IGONC Executive Director Bob Pulverenti said. “Our vendors are happy, and our members and attendees are enthusiastic about attending again.” IGONC also sees its fundraising efforts as one of the highlights of the year. “We are very proud of our fundraising efforts to help automotive shops affected by Hurricane Michael. We were able to get fund matches from both Repair Pal and Autoshop Solutions to donate to over 10 impacted shops and create a fund for future emergencies,” Pulverenti noted. Similarly, McNee noted that in addition to expanding its ongoing training offerings throughout the year, AASP/NJ’s recent donation to the John Theurer Cancer Center was one of the best things the association See A Year in Review, Page 20


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CIF Elects Scott Walton as New Trustee

The Collision Industry Foundation (CIF) recently elected Scott Walton to the Board of Trustees to carry on the foundation’s initiatives throughout the coming years. Walton has been in the industry for more than 15 years. He joins CIF from Sherwin-Williams, where he has worked for more than 20 years in various responsibilities. Sherwin-Williams is a long-time supporter of philanthropic activities for organizations such as CIF. Trustee Casey Steffen (SaintGobain Abrasives) said, “Scott has been a supporter of CIF for quite some time, and we are happy to have him on board. His experience in strategic planning, budgeting and being well-connected in the industry will surely add to CIF’s ability to assist collision professionals in need. He will be fully involved in CIF’s gala, which is scheduled for Jan. 17, 2019 in Palm Springs, CA.”

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AL Lawmakers Get Closer to Passing Hands-Free Driving Laws by Patience Itson, Bham Now

Hey drivers! Put down that cell phone because Alabama is on the verge of passing hands-free driving laws in March 2019. Admit it: Your cell phone is your best friend. At work, at home, at the store and in the car, your phone is always right there with you. While your cell phone may be a safety precaution when behind the wheel, for most it is mainly used for talking, texting, navigation, music and more. It’s okay to admit it. I, too, have fallen in love with a piece of technology. Take it away for even 30 minutes, and I start to feel a bit anxious. But here’s the “funny” thing about it. Our cell phones may have started out as a safety precaution while driving, but now, they are a main cause of us being unsafe behind the wheel. The reason: They distract us. Texting and Driving in Alabama Currently in Alabama, drivers can be ticketed for texting and driving. However, there is no official law banning adult drivers from using a

IGONC Triangle Chapter Learns About Big Ticket Items by Chasidy Rae Sisk

On Oct. 2, the Triangle Chapter of the Independent Garage Owners of North Carolina (IGONC) gathered for its monthly meeting at Buffalo Brothers Pizza in Raleigh, NC.

These meetings are held “to foster community amongst our members and share useful information,” shared Bob Pulverenti, executive director of IGONC. “Relationships are a big part of what makes our association valuable to our members.”

In addition to handling general association business, the meeting featured a presentation titled “Big Ticket Items,” delivered by the evening’s host, Austin Green of Jasper Engine/Transmissions. Green discussed how to sell remanufactured engines and transmissions to the customer. He also delved into the age of the car and other points that can be used to demonstrate the pros and cons of rebuilt engines and transmissions compared to buying a new automobile when broaching the topic with a consumer. According to Pulverenti, “This meeting was a good one—very informative and well-attended. Attendees all thought this was good information and responded with some good questions for the Q&A period of the discussion.” For more information on IGONC, visit igonc.com

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hand-held device. (If you didn’t know, those who are 16 years old are prohibited from all cell phone use when behind the wheel, while those who are 17 years old have the same restriction if they have had their driver’s permit for fewer than six months.) So here’s the problem. With technology continuing to claim our attention while driving, the risk and number of fatal car crashes continues to rise. Yikes! Some Stats According to a study by the University of Alabama, the number of reported cases where distracted driving caused the crash increased by 20 percent in 2016 over 2014. Not good! So check this out. This past July, our Georgia neighbors passed a hands-free driving law, and guess what. The number of fatalities has decreased by 11 percent. That’s a pretty good percentage so far. Pros of Hand-Held Driving Laws Here’s the situation. Even though you currently aren’t allowed to touch your cell phone while behind the wheel, you can still use it for

things like conversations, GPS/navigation, etc. This means there is still cognitive distraction at play. So is there really any point to hands-free driving laws? The answer is yes! While handsfree driving laws don’t eliminate all usage of cell phones while in the car, they do take away some of the distraction, which is key to lowering the risk of fatal crashes. According to Rhonda Stricklin with the Center for Advanced Public Safety, enforcing hands-free driving laws “takes away the manual distraction of dialing the phone [and] holding the phone. It takes away the visual distraction of looking away from the road to find your phone.” Alabama Legislation 2019 While some may argue that their rights will be taken away if a handheld law goes into effect, Alabama Senator Cam Ward has stated that there is strong support for the bill in both the House and Senate. The issue will be discussed further in March during the 2019 legislation. We thank Bham Now for reprint permission.


autobodynews.com / DECEMBER 2018 AUTOBODY NEWS

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Continued from Cover

Price-Fixing Claims

action. The body shops in the MDL are in Kentucky, Missouri, New Jersey and Virginia. Although there are certain variations in the individual complaints, in general they allege the insurers have all agreed to follow a market rate established by State Farm, which is accused of using a method of ranking body shops by criteria, including number of employees, number of work bays and area density, which it then “manipulates” as it solicits businesses to be part of its direct repair program. If a body shop in the program tries to charge rates higher than those demanded by State Farm, they are met with an “ongoing pattern of coercion and implied threats” to enforce compliance, according to court filings. Shops not complying are dropped from the program, and customers are “steered” away by the insurer. In 2016, the five complaints at issue were dismissed for failure to state a claim, but a split panel reversed that ruling last year. The ma-

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jority opinion was written by Judge Charles Wilson with the concurrence of Washington Western District Judge Barbara Rothstein, sitting by designation. Judge R. Lanier Anderson dissented. According to Wilson’s opinion, the complaints claimed that State Farm and the other defendants used unverified and manipulated market rates to depress costs. “They use tactics such as requiring a body shop to repair a faulty part rather than installing a replacement part, even when the shop strongly recommends against continued use of the faulty part; requiring a shop to install a used or recycled part, even when a new part is available and would be best; and requiring a shop to offer discounts and concessions, even if doing so will force the shop to operate at a loss,” Wilson wrote. The opinion noted that claims of horizontal price fixing based on inferred agreements rather than evidence of such deals must be bolstered by other evidence, or “plus factors.” Among those cited by the plaintiffs were routine notices from the other insurers that they would not pay any

DECEMBER 2018 AUTOBODY NEWS / autobodynews.com

more for repair work than State Farm paid. Anderson said in a dissent that he agreed the described behavior might be “objectionable,” but that didn’t make it illegal. “With regard to the antitrust claims,” he wrote, “binding case law indicates to me that the allegations of these complaints do not give rise to the necessary reasonable inference of agreement or conspiracy and, therefore, fail to state a claim.” On Oct. 23, attorney Mark Shurtleff represented the lead plaintiff, Quality Auto Painting Center of Roselle Inc., along with colleague John Eaves of John Arthur Eaves Law Offices in Jackson, MS. Shurtleff began by arguing that the complaining body shops were acting in the best interest of their customers, while “the others’ loyalties lie with the insurance companies.” Several judges were skeptical, with Chief Judge Ed Carnes asking how the insurance companies’ behavior in matching each others’ rates was any different from other businesses. “It happens in about every case,” said Carnes. “One raises it, they all

raise it.” Shurtleff pointed to the “uniformity of prices” demanded by the insurers, noting that uncooperative body shops were targeted for criticism and boycotted. Judge Stanley Marcus wondered whether commonplace business activity, such as an insurer recommending one shop and disclaiming another, was enough to “nudge your case across the line” into illegal price fixing. Under questioning, Shurtleff agreed that the insurers did not necessarily prohibit their policyholders from utilizing a particular shop and that simply showing that the prices demanded by State Farm and then demanded by other carriers did not necessarily prove collusion in itself. The insurers were represented by three lawyers: Alston & Bird partner Michael Kenney for State Farm, Dentons partner Rick Fenton for Allstate, and Daniel Goldfine of Lewis Roca Rothgerber Christie for GEICO. The defense lawyers argued there was no direct evidence showing the insurers’ alleged action constituted price-fixing and urged the judges to See Price-Fixing Claims, Page 20


Albany, GA, Technical College Students Return to Classrooms by Terry Lewis, Albany Herald

Albany, GA, Technical College students returned to campus Oct. 22 for the first time since the arrival of Hurricane Michael on Oct. 10. Their return coincided with the Technical College System of Georgia announcing the identification of employment fields that have many job openings and programs that will help students move into the jobs quickly. Through the creation of incentives to fill these positions, several programs of study have been identified. Many of these programs are eligible for HOPE grant and HOPE Career Grant funding, which provides free tuition. Officials at Albany Tech say the college is actively working to provide employees with training to meet specific needs of the area work force and is offering several Technical College Certificates of Credit that can be completed in as little as eight weeks to six months. This allows access to programs that are direct-to-work situations with little out-of-pocket cost. These certificates are linked to advance diplomas or degrees where

skills gained would assist in Georgia’s work force initiative. “Albany Tech is adding 18 technical certificates for students who previously could not be admit-

ted to our diploma or degree programs. These programs are a part of Gov. Deal’s HOPE Career Grant. This means that, for eligible students, 100 percent of tuition and fees are paid through the HOPE Career Grant,” Albany Tech President Anthony Parker said. To be eligible for the HOPE Career Grant, students must first qualify for and receive the HOPE Grant. The two grants together will cover all tuition in the 18 programs of study. Students will still be re-

AZAUTOMOTIV

sponsible for student fees and any equipment necessary, although in some cases, financial aid is available for those as well. Entry-level work force certificate programs announced by the college Oct. 22 include:

• Automotive Collision Repair Assistant I • Automotive Collision Repair Assistant II • Automotive Refinishing Assistant I • Automotive Refinishing Assistant II • Automotive Collision Mechanical/Electrical Helper • Basic Shielded Metal Arc Welder • Certified Construction Worker • Certified Customer Service Specialist • Certified Warehousing Distribution Specialist • Commercial Truck Driving • Criminal Justice Specialist

We thank Albany Herald for reprint permission.

www.autobodynews.com

Sherwin-Williams Joins CIECA

Based in Cleveland, OH, the company manufactures and distributes a complete line of advanced technology paint and coating systems for the automotive refinishing industry. “We are thrilled to join CIECA and its efforts to create an eCommerce-enabled collision industry,” said Phil Matisak, global color marketing director, Sherwin-Williams Automotive Finishes. “The standards promoted by CIECA are integral to the industry’s efficiency, from customer service to data integrity and security. “We are at all times developing products, processes and tools to help our customers improve their efficiency and effectiveness. Color is a major part of who we are and what we do, and excellent color service often comes down to efficient communication. That’s why we and so many of our partners, including body shops, insurance companies and parts providers, support CIECA.”

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IGONC’s 2018 ASTE Proves To Be Large Success by Chasidy Rae Sisk

On Sept. 28-29, the Independent Garage Owners of North Carolina (IGONC) hosted its 2018 Automotive Service and Technology Expo (ASTE) at the Embassy Suites and Convention Center in Cary, NC. According to IGONC Executive Director Bob Pulverenti, “It is by far the largest show we have had in years, with 14 speakers, 34 classes and more social events, including comedian Kody Steele at the awards banquet.” The 2018 ASTE began on Thursday evening with a reception pre-party at Rally Point, followed by an IGONC Hospitality Suite. The educational portion of the event com-

ney, Amy Mattinat of Craftsman Auto, Lucas Underwood from L&N Performance, and Jim Lasley of Wilson’s Garage. In addition to the continuation of White’s all-day seminar, Friday afternoon featured seven educational options: “How to Put on a Successful Women’s Car Care Clinic and Brand Your Shop as The Expert in Your Community” by Mattinat, Patrick’s “Current Probe Revisited,” Peace’s “Diesel Emissions and the Aftertreatment,” “A Mobile Tech’s Tips & Tricks for Diagnostic Techs” presented by Edwin Hazzard of South East Mobile Tech in South Carolina, VanBatenburg’s “High Voltage Battery Packs,” Fuchs’ “Modern Chassis Technology,” and “Communication

ASTE Banquet with 2019 IGONC Board Members after being sworn in. (l to r) Charlie Creech, Robert Crawford, Kayo Jenkins, Gary Summerfield, Tim Lasley, Paul Morro, Stan Creech, John Hill, Dean Bailey and Joe Stanley

menced on Friday morning with a variety of informative seminars. Rick White of 180BIZ presented “Change Is a Given,” ATI’s Jim Silverman discussed “Effective Succession Planning,” and David Patrick, instructor for the CARQUEST Technical Institute, focused on “Asian Security Systems Theory and Operation.” Additionally, presentations were delivered by GM’s Chris Peace, Aaron Stokes of Shop Fix Academy, ACDC CEO Craig VanBatenburg, Dirk Fuchs of ZF Group, Kukui speaker Jimmy Lea, and Tom Dorsey of AutoVitals. During lunch on Friday, Carm Capriotto, founder and host of Remarkable Results Radio, mediated a Technician Town Hall Forum that focused on everything related to technicians, including the technician shortage, retaining technicians, training, benefits and more. The panelists included CARQUEST’s Chris Ches18

and Management: Millennials & Generation Y” presented by Mandee Bradshaw, VP of client acquisition at Management Success. Friday evening featured the Hotel Manager’s Reception and ASTE Pizza Party followed by the highly anticipated Casino Night, a crowd favorite. The evening ended with the nightly Hospitality Suite. Saturday morning, the final day of the 2018 ASTE, commenced with eight educational presentations. White presented “Marketing on a Shoestring Budget,” while Autoshop Solutions Inc. CEO Danny Sanchez discussed “Building a Winning Culture.” Patrick covered “Ford EcoBoost Platforms Operation and Diagnosis,” Stokes taught attendees “How to Grow Your Shop – The Real Reason You’re Not Succeeding,” and VanBatenburg discussed “Electric Cars: Chevy Bolt, Tesla S, and BMW i3.” As “8 Speed Hybrid Transmission” was taught by Fuchs,

DECEMBER 2018 AUTOBODY NEWS / autobodynews.com

NAPA’s Jeff Bly presented “Scan Tool Proficiency”; Donny Seyfer, executive officer for the National Automotive Service Task Force, discussed “Robots Loose in the Streets”; and Jill

Trotta, senior director of industry advocacy and sales at RepairPal, presented “Price Transparency and the Autocare Consumer: How to Use it to Your Advantage.” Lunch on Saturday featured the annual ASTE vendor trade show from 11:45 a.m. until 2:15 p.m., followed by the afternoon’s seminars, which included White’s “The Customer Says ‘NO!’ Now What?,” Mattinat’s “Increase Your Sales with Women,” Patrick’s “Gasoline Direct Injection: Essential Operation & Testing,” Silverman’s “Fixing a Dysfunctional

Courtesy Check Process,” Hazzard’s “When to Scope and When to Scan,” Fuchs’ “Drivetrain Technology,” S/P2 President Kyle Holt’s “End the Shortage! Growing Your Own Technicians,” and CARQUEST Instructor Peter Orlando’s “Vehicle Fluids: Lubricant and Filtration Technologies.” IGONC’s 2018 ASTE concluded on Saturday night with the Hotel Managers Reception, the IGONC Annual Awards Banquet and the evening’s Hospitality Suite. The Annual Awards Banquet is designed to recognize industry leaders who have demonstrated above-average contributions to the automotive service industry and IGONC. The 2018 IGONC Associate Member of the Year was Advance/ CARQUEST, who also received the award for Best Booth at the ASTE Trade Show. Additionally, Chesney was recognized for his ongoing dedication to the industry. Pulverenti noted, “Besides the strong commitment Advance/CARQUEST has made to the automotive See 2018 ASTE, Page 56


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Continued from Page 10

A Year in Review

did in 2018. Other associations looked to the future with plans for training the future generation of collision repairers. Women in Automotive and Collision (WAC) may be a newer association, but it has already made great strides in its outreach program, visiting local schools to encourage students to pursue an education in automotive and collision repair. According to WAC Vice President Jess Crump, “Reaching the students in local programs was the most memorable thing we did. Being able to get a few of their stories, talking to them about the industry and their goals, and also getting feedback on how to best reach them is an integral part of making our mission work.” ASA Northwest established its Independent Technicians Automotive Committee (ITAC), composed of association members who will participate in the ITAC apprenticeship program. “This apprenticeship program

Certified Collision Group™ and PPG Create Alliance

Certified Collision Group™ (CCG) announced its newly formed alliance with PPG. The alliance is a collaborative, concerted effort to identify those differentiated operators whose brands and performance meet CCG membership requirements, driving multi-channel business development value into hundreds of PPG collision businesses across the U.S. “We are proud to be aligning with an organization of the size and stature of PPG. The relationship enhances CCG capabilities to identify our industry’s best, respective to those operators that are truly quality-focused, performance-driven, OEM Certifications committed … and drive value channels into them. Our differentiated model and market-leading growth lends itself to significant opportunities for loyal PPG customers to leverage our non-intrusive, high-ROI platforms for many years to come,” stated Bruce Bares, President and CEO of Certified Collision Group. 20

process took many volunteers five years to get this far, mostly because it touches all aspects of our industry as well as our state’s education system,” ASA Northwest Executive Director/ President Jeff Lovell explained. “We are excited to announce that the ASA Northwest/ITAC apprenticeship program standards were approved and registered on Oct.18, 2018 with the state of Washington L&I and Washington State Apprenticeship and Training Council (WSATC). We are in the process of finalizing our program documents and procedures with the intention of piloting the program in the next 12 months.” ASA Northwest Chairman Butch Jobst added, “Getting the ASA Northwest/ITAC apprenticeship program registered with the state of Washington was on the top of my list, and we feel it will transform our industry in many ways.” The Society of Collision Repair Specialists also had an extremely busy year in 2018 with many training initiatives and endeavors. SCRS Executive Director Aaron Schulenburg recalled, “Exposing our members to information and people

that they wouldn’t have otherwise had access to ranks high on my list for this year. Education and information are foundations of our mission, and I think our board has really embraced a priority of finding and producing meaningful interactions. In February of this year, we released video coverage of attorney Todd Tracy’s 2017 SEMA Show appearances, which drew a ton of attention for the perspective he brought to the table. In April, we got really outside the box, welcoming Chipotle Mexican Grill CFO Jack Hartung for an in-depth conversation on business models that build trust with the consumer, focus on high-quality output, prioritize investment in better quality materials (or ingredients in this case), all while competing with a market of lowercost competitors. That presentation and the panel that followed it received such great support from the attendees and membership; I really love that we were able to get creative and go down that path. “In August, as I-CAR announced changes to its training and recognition platforms, SCRS was able to help bring the information direct to our

membership through a 90-minute interactive webinar, fueled primarily by audience questions. And I’d be remiss not to make note of the recent OEM Collision Repair Technology Summit and inaugural Ideas Collide Showcase this November at the 2018 SEMA Show. Both featured so many speakers that our industry had never had the ability to interact with before. I’m especially thrilled with the feedback on the IDEAS Collide Showcase: 10 topics, 10 minutes apiece for a rapid-fire presentation that was like drinking from a firehose of information. It’s definitely a format you will see more of from SCRS.” The collision repair industry saw many positive changes in 2018, and hopefully, this momentum will carry through into 2019 as the industry’s associations continue to grow, provide more training for members and focus on the future in terms of the next generation of technicians, charitable efforts and legislative efforts. Autobody News looks forward to continuing to provide all the latest association news in 2019. Happy holidays from our family to yours!

Continued from Page 16

Price-Fixing Claims

hew closely to the U.S. Supreme Court’s 2007 decision in Bell Atl. Corp. v. Twombly. That decision toughened the standards for bringing price-fixing claims and established that a simple showing of “parallel conduct” was, without evidence of an an actual agreement, insufficient to support such claims. “There is no way here to show that what is alleged is anti-competitive activity,” Kenney said.

Copyright 2018. ALM Media Properties, LLC. All rights reserved. Republished with permission from the Daily Report.

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Continued from Cover

OEM Summit

enough to cover the [Subaru] unitsin-operation in this country, so we will have to depend quite heavily on independent collision centers.” She said the requirements for the program—including KPIs that Subaru will be monitoring—are “relatively stringent” but do not include being sponsored by a dealership. “That was a very intentional decision,” she said. “As long as there are enough units-in-operation to go around, to make it worth being a certified collision center, we want anyone qualified who wants to raise their hand to be able to join. We want the best people on this initiative.” She said Subaru is working to ensure its “Starlink” vehicle telematics system will be integrated with the certified shop program to “make sure our customers feel the ‘Subaru love’ when they’ve been in a crash [and] have the help and guidance they need to get their car fixed to the way it was when they bought it.” Dealership shops, she said, will

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not be given priority over independents in the program when customers are told about certified shops. “There’s nothing in any kind of contract that says that dealers get first dibs,” Riedel said. “We’re doing it by proximity. And in the event that you [and the dealer are] both exactly

Mark Zoba of Nissan North America said that about 1,900 shops are in or have applied for the automaker’s certified collision shop program, but Nissan needs only about 1,650 shops in the program

4.125 miles from [the customer], we’ll have to figure out what that secondary plan is to break that tie. But I imagine that will be more about your KPIs rather than whether you’re a Subaru retailer or not.” To request information on the

DECEMBER 2018 AUTOBODY NEWS / autobodynews.com

program, send an email to info@ subarucertifiedcollision.com. Nissan May Cull Number of Shops in Program Mark Zoba of Nissan North America said his company’s certified collision network has grown from fewer than 500 shops in 2014 to more than 1,500 today, with about 400 more applications in process. But, he said, 1,900 shops is more than the program likely needs or will maintain. “I don’t have a specific number, but what I need for full network buildout, to make sure there’s a light in every market, is about 1,650 shops,” Zoba said. “So I’ll be culling the herd a little bit, I think over time ending up at about that 1,650 number.” What will determine which shops are added or remain on the program? Zoba said the automaker is developing scorecards to “hold shops more and more accountable” on such metrics as documented research and use of Nissan repair procedures, OEM parts usage, cycle time and CSI. “The shops that are performing, obviously we want to keep in the network,” Zoba said. “If they’re not

performing, we’re probably going to ask them to step aside.” He said the automaker is working to bring more value to the program for certified shops as well, including a refined shop locator and more Nissan-specific training. Zoba said Nissan worked with trainer Mike Anderson to develop a multiday “Collision Estimating Essentials” required course—launching this month—that covers researching Nissan procedures, technical aspects of Nissan vehicles that affect estimating, identifying single-use parts, etc. Also, as of January, any Nissan paint warranty claim must be handled by a certified collision center, even if that means a non-certified Nissan dealership shop has to send the work to a certified independent shop. Volvo To Require All OEM Parts Ken Park, manager of Volvo’s certified collision program, said that one important change in the program next year involves parts. “Currently, we require 95 percent OEM parts on all repairs. In 2019, we will require 100 percent,” Park said, drawing applause from attendees at


the summit. “We do not allow any aftermarket or LKQ utilization, or reconditioned parts, on our vehicles.” He said that even though salvage parts may often be “OEM,” Volvo can’t know the history or condition of the part and so can’t stand behind its use.

200 Volvo-certified shops across the United States, but Park said he hopes to expand the network to as many as 350. The goal, he said, is to have a certified shop within 10 miles of its customers, although its roadside assistance program will tow a vehicle up to 50 miles after an accident. Unlike the Subaru program, Volvo does require independent shops to be sponsored by a Volvo dealer to join the program. He said the program includes audits of participating shops. That can include pulling 10 to 20 random repair files, for example, to check to see if Volvo repair procedures were researched Ken Park (left) of Volvo and Ben Cid of Mercedes-Benz responded to questions about their companies’ certified and documented within the shop programs at the Society of Collision Repair file. Specialists’ OEM Collision Repair Technology Summit “When we look at the in Las Vegas during SEMA data on how many [shops in Park said the automaker’s re- the industry] are actually researching search has found that 85 percent of the repair procedures, it’s pretty disVolvo drivers search online for a cer- mal,” Park said. “But as shops retified facility online after an accident. search the procedures more and “That’s a huge opportunity for more, they find they get very profiour facilities,” he said. cient at it. Right now, I think it’s more There are currently just over of a hurdle just because they’re not

regularly doing it. As shops spend the time actually doing it, it’s going to become easier and easier … One thing I have seen work very well for some shops is assigning one person in their office to [be the one] who looks up these procedures. As they get more familiar with it, it becomes easier for them to navigate through it.” Mercedes-Benz Looking To Add More Shops Ben Cid, collision business manager for Mercede-Benz, said that like Volvo, it is looking to expand its certified shop network, which currently includes about 280 shops. “There are some areas where we need coverage,” he said. “We’re looking to be somewhere around 400 to 420 shops.” He said Mercedes has begun using its roadside assistance program and other means to connect its customers with certified shops in the event of an accident, so his main focus this next year will be to build the network as needed to accommodate that. He said unlike some of the au-

tomakers, Mercedes has defined what a “certified repair” is, and repairers on the program can offer the customer “signed proof” that they followed Mercedes repair procedures. GM Defends Required Use of Mitchell Estimating John Eck of General Motors said more than 1,000 shops have already applied for its broader collision shop certification network, which officially launches next year. He defended the program’s required use of the Mitchell International estimating system, saying GM wanted a partner that could integrate the automaker’s repair procedures into the estimating system, eliminating the shop’s need to research those procedures as a separate process. (He noted those procedures are available for all Mitchell estimating system users, not just those in the certified shop network.) He said GM also needed an estimating platform available throughout North America. (CCC Information Services’ estimating system, for example, is not available in Canada.) See OEM Summit, Page 29

autobodynews.com / DECEMBER 2018 AUTOBODY NEWS

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The Big Show Rolls On—Shots and Scenes from SEMA 2018

24

DECEMBER 2018 AUTOBODY NEWS / autobodynews.com


autobodynews.com / DECEMBER 2018 AUTOBODY NEWS

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Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.

Shop Strategies with Stacey Phillips

How Independent Nashville Body Shop Is Nurturing Homegrown Talent Sixty years ago, John (J.T.) Whaley opened a small body shop in Nashville, TN, which he named Whaley Body Shop. Although John retired in 1981, the business has remained in the family ever since and prides itself on offering quality repair work to its customers. Autobody News spoke to Linda Whaley, owner of Whaley Body Shop, about how the business has survived tough economic times and retained its employees.

tinue to grow the business while offering great service to my customers.

Q: A:

Currently, I have 20 employees, and many of them have worked here for more than a decade. I pay my technicians a little more per labor hour—about $3 more per labor hour than they can receive anywhere else in town. Because of that, I can retain them, and it seems to keep the revolving door down. I think shop owners need to offer a substantial enough wage, so your employees don’t jump from one shop to the next. I also give employees an extra week of vacation after they work at the shop for more than 10 years, so they get three weeks total per year. These may be small things, but it does make a difference. I’m proud of my team and how they work together and cooperate with one another. That takes building a culture. Dave Luehr at Elite Body Shop Solutions helped me a lot with culture. He gave me reading material, and we have expanded on his basic principles and implemented them at the shop. You can tell when someone is having a rough day. You have to find out if it’s something to do with the person’s work life or personal life. If it has to do with something at work, it gives you the opportunity to deal with it, so it doesn’t fester. If one person has an emergency, my team will jump right in and finish that car. That makes my heart happy to see them do that.

How did you get involved in the business, Linda?

When John sold the business to his son Gary, who I was married to at the time, I began working at the shop. It was the early 1980s; we had two small kids and I worked parttime. Interest rates were very high, and we were going through tough economic times. We went out on a limb

Whaley Body Shop has many long-term employees, such as Steve Fulton, who has been employed there for 15 years

and decided to take the company to the next level. With a lot of hard work and dedication, we were able to triple the size of our shop and get through that hump. We decided to sell the business to a nephew on Gary’s side during the late 1980s, and he ran the company for about 10 years. In 2008–09, we decided to take the company back. The economy was suffering again, but we were able to keep all of our vendors and employees and run it successfully. I had the opportunity to purchase the shop in 2011 as a sole owner, and I’ve run Whaley Auto Body since then. My goal is to con26

Q: A:

What sets your business apart from others in the industry?

The number one thing that sets us apart is that we are a household name in our area. We have a really good reputation. We receive a lot of great reviews and have many longterm employees.

Q: A:

Q:

How do you retain your employees?

How do you ensure a quality repair for customers?

DECEMBER 2018 AUTOBODY NEWS / autobodynews.com

Because I don’t have a high turnover rate, I’ve found it has been very helpful. Historically in our business, when someone is disgruntled or going to leave, they cut corners. My goal is to keep turnover low, so there is consistent work in the shop. I created some Standard Operating Procedures (SOPs) that Dave helped me put into place several months ago. This has greatly helped hold people accountable and keep things flowing in the shop. The company is achieving a great transformation that I never thought possible. It has also helped me work toward reaching my potential and given me a renewed passion and vision for the future. With cars changing so much, I think it’s imperative to keep up with the times to be successful. You have to do the repair right. There’s no question about it.

A:

Your best advertiser is your satisfied customer, and we all know that. Do a nice job, give them back a clean car, provide personalized service and the work just follows from there.

How do you receive feedback from customers and ask for reviews?

Q:

One of the unique things I have done over the last couple of years is hand-write thank you notes to my customers. Inside the envelope, I include my business card as well as information on how to write a review about the service they received at my shop. I list three different ways they can post a review—Yelp, Google and Facebook. I also include a pen, magnet and some type of treat. Although the majority of my customers don’t acknowledge it, a small percentage

A:

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27


comes back and tells me how much they appreciate the work we’ve done to their car. One lady recently wrote me a letter thanking me; she was impressed that I took the time to write her a note. I think it shows that I care and that I’m willing to sit down and spend the time to show my appreciation for their business and not send a mass-produced letter. It does take up some of my valuable time, but for me personally, it’s rewarding whether or not they recognize it. Also, I know my effort will stick in their minds if they have a wreck again.

Q: A:

Q: A:

How are you addressing the shortage of technicians?

One of the ways I’m addressing this problem is by paying apprentices to help in the business.

What is your biggest challenge right now?

I think the biggest challenge for me is [filling] an opening for a technician. Our industry is really lacking quality people to do the work that needs to get done. Whaley Body Shop has been around for 60 years, and I remember people used to line up to come and work here, but the industry is just not producing new technicians as they should. Recently, I put up a banner

28

on the outside of my building looking to hire body techs. Never in my life did I think I would have to do that. Unfortunately, it didn’t draw people.

as an apprentice and has now converted to a full-fledged commission worker, and I have two techs fresh out of school who have been here about a year. It takes a while to get them to perform on their own, so I nurture them along the way. I’ve also paired them with experienced technicians to give them an opportunity to assist with many types of processes in the shop.

What advice do you have for other body shops currently looking for new talent?

Q:

I’ve found it’s crucial to cultivate technicians from the trade schools. You have to take a chance. Go ahead and interview them at the end of the school year and make a spot for them to work at your shop. Otherwise, we’re not going to have anyone to do this work. I don’t think our industry understands the level of high alert that we are in. We’re in a dying trade, and if we don’t do something, we’re not going to have a way to fix these cars. It’s scary to me that we don’t do more to foster homegrown talent.

A:

Linda Whaley said she is proud of her team members and how they cooperate with one another. Pictured is Jim Seat, who has worked at the shop for 10 years

I’m a small shop, and it’s a liability to my company because it takes several years of training. However, I feel that I’m doing my part to help. I currently have one employee who started

DECEMBER 2018 AUTOBODY NEWS / autobodynews.com

Q: A:

What do you enjoy most about working in this industry?

I enjoy the whole process of a car coming in torn-up, and then that same vehicle goes out looking better than it did when it first came in here. That is IF a customer has taken good care of it. You can only do so much. I’ve had my share of cleaning up cars, and I’ve found that there are some very meticulous people and there are others who don’t value their cars like they should. It’s nice to see vehicles that are crunched up become nice and shiny and clean and then hand the keys back to the customer. I find they are so happy because it’s a stressful situation to be without your car, and they don’t like being in rental cars either. I’m pretty proud of being one of the few female body shop owners in this industry. At first, when I got back into the industry, I anticipated some resistance. As it turns out, I’ve found that my female customers actually love doing business with a woman-owned business. I realized it was a plus. I also think we need more women in our industry because of our attention to detail.


Continued from Page 23

NCACAR, SCACAR Co-Host Foundation to Ironclad Estimating Class by Chasidy Rae Sisk

On Sept. 29, the North Carolina Association of Collision and Autobody Repair (NCACAR) and the South Carolina Association of Collision and Autobody Repair (SCACAR) cohosted a class on the “Foundation to Ironclad Estimating” at Blue Ridge Color Company in Duncan, SC. Blue Ridge Color Company also sponsored the seminar, which was taught by Roger Cada of Accountable Estimating. SCACAR President Sarah Myers-Daniels shared, “The main topic was explaining the insurance company’s contractual obligation to their insureds. Our relationship and obligation to our customer is to make sure their vehicle is repaired per OEM procedures, resulting in quality repairs.” Cada discussed how much the industry has changed over the years, observing the difficulty that insurers and shops experience keeping up with these changes. While the insurance companies should be aware of the correct OEM procedures, the shop is liable for ensuring they are executed when completing repairs.

Cada emphasized that it’s imperative to document everything on repairs in order to protect the shop and its employees from potential liability, noting, “If it’s not in the file, it never happened.” According to SCACAR Treasurer Mitch Dean, “All previous estimating classes I have attended have

others in our industry. Our industry is changing so fast; we all need to work together to make sure we continue to provide quality and safe repairs for our customers.” NCACAR met next on Oct.10 at Body Works Plus in Charlotte, NC, for a General Motors training class on Advanced Driver Assistance Sys-

dealt solely with the ‘nuts and bolts’ of estimating. This class with Roger Cada went far beyond just the nuts and bolts. He went into the area of how the nuts and bolts are made, so to speak. The day was filled with great information as to why we need, as an industry, to understand why we do what we do. The time and energy spent was worth far more than the investment we made. Myers-Daniels added, “We started these associations to help our industry stay informed of changes, educate and share knowledge with

tems taught by Keith Glasgow of General Motors. For more information, visit NCACAR.com. On Oct. 11, SCACAR hosted a meeting at McKinney Automotive Center in Greenville, SC, with several speakers. Brent Betts of AP Digit delivered “Developing Effective Digital Strategies,” GM’s Keith Glasgow presented “Supplement Restraint: Service and Repair,” and CRCC’s Michael Choma presented “GM Collision Repair Network – Proper and Safe Repairs.” For more information, visit SCACAR.com.

“All previous estimating classes I have attended have dealt solely with the ‘nuts and bolts’ of estimating. This class with Roger Cada went far beyond just the nuts and bolts” — Mitch Dean

OEM Summit

Eck said efficiencies, rebate opportunities and other benefits for certified shops can also help offset the cost of adding another estimating system if a shop wishing to join the program needs to do that. “We made a choice and a business decision, and I think every repairer is in that same position,” Eck said. “They have to make the decisions that make sense for their business.” He said GM will be measuring and scoring certified collision shops based largely on their documented research and use of those procedures, along with customer satisfaction and cycle time. John Yoswick, a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (www.CrashNetwork.com). He can be contacted by email at john@Crash Network.com.

autobodynews.com / DECEMBER 2018 AUTOBODY NEWS

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National Associations with Chasidy Rae Sisk

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.

CCRE’s Fall Seminar & Convention Teaches Body Shop Owners Another Way of Conducting Business On Sept. 28 and 29, the Coalition for Collision Repair Excellence (CCRE) held its Fall Seminar and Convention at the Embassy Suites at the Atlanta Airport. According to CCRE President Tony Lombardozzi, “Attendees hailed from all parts of the country, including Utah and Alaska. The room held a full house of eager-to-learn collision repair shop owners and other guests who wanted to learn another way of conducting business in our industry. Many of them have realized that the present system is not working and is not a profitable method of operation.”

the group strives for collision repair excellence and the right to operate as independent business owners without being influenced by a third-party entity. The presentation then continued to explain that the industry fell into this state through apathy, poor business management skills, inappropriate behavior, insurers’ influence and the industry’s poor image. Lombardozzi emphasized that the correct alignment of contracts is a repair shop having a contract with the vehicle owner while the vehicle owner has a contract with the insurance company. When the contractual rela-

Steve Behrndt presented on job costing during CCRE’s Fall Seminar in Atlanta

The weekend commenced with Lombardozzi’s opening introduction, followed by a presentation on how the industry ended up in its current condition, where it is today and where it is headed in the future. He shared, “We spent a great deal of time discussing how we let go of the control of our industry and how we let insurers into the repair process.” Lombardozzi’s “An Educational and Networking Experience with Industry Peers” began by focusing on who CCRE is, how it has influenced the industry and what its future plans will entail. Future plans include development of state-by-state programs to develop a systematic resolution of day-to-day business issues, a network of attorneys for assistance in business-related situations and consumer issues, continued educational opportunities for shops and the teaching of the importance of documentation as 30

tionships become a “terrible triangle,” the repairer loses. Discussing insurer interference in the collision repair industry, Lombardozzi touched on hold harmless agreements that insulate insurers from liability, specified vendor purchasing, insurer supplements, the required use of crash guides for estimating and much more, predicting that the industry is in for an even tougher future if shops do not establish contracts with the vehicle owners directly, educate consumers, and remove the insurer’s third party influence from their businesses. One way to do this is by creating necessary procedures, for which attendees discussed some options. Lombardozzi shared some rules and tips for everyone to follow to take control of their businesses. He also advised, “Stop sharing information on social media, and quit bragging and boasting online; Big Brother watches everything! We are

DECEMBER 2018 AUTOBODY NEWS / autobodynews.com

trying to solve a difficult puzzle, but the goal is attainable; if you learn the process, the pieces will all fit together. It’s time to begin making money, not just repairing vehicles!” Next, Jeff Bryant of Autosport Body Works delivered a presentation on billing paint and materials using a cost accounting program. Lombardozzi recalled, “One of the highlights of his discussion was how he discovered that almost 50 percent of the materials he was using were never being billed or accounted for. After using a P and M invoicing program, the shop’s profits on those materials being used increased substantially.” Bryant explained that paint and materials are the cost of doing business, but that any costs incurred to produce repairs should be a profit center for the business. He explained, “The rate per hour

system has no real basis in reality and is not profitable, so why do we still use and accept it? Because the insurance companies like it because it benefits them. You will never win as long as you play their game by their rules on their field!” Exploring the cost of the rate per hour method, Bryant walked attendees through some financial scenarios. He shared, “The first year Autosport implemented paint and material cost accounting and proper collecting, the results were an additional $67,000 collected. A 6–8 percent increase is huge considering most shops operate on a less than 5 percent net profit margin.” Bryant shared how to account for paint and material costs in the shop, how to account for allied materials and how to assist the vehicle owner in getting reimbursed from their insurer.


autobodynews.com / DECEMBER 2018 AUTOBODY NEWS

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

FLORIDA

Freeway Honda Birmingham

800-987-0819 205-949-5460 Dept. Hours: M-F 7:30-5 greg_thomas@freewayhondaal.com

FLORIDA

Braman Honda of Palm Beach

Hendrick Honda Pompano Beach

Gerald Jones Honda

Greenacres

Pompano Beach

888-479-0695 561-966-5185 Dept. Hours: M-F 7:30-6; Sat 8-4:30 parts@bramanhondapb.com

954-425-8244 Dept. Hours: M-Fri 7-6; Sat 7-5; gerardbruno@hendrickauto.com

Dept. Hours: M-F 7:30-6; Sat 8-5 tdunn@geraldjoneshonda.com

Gwinnett Place Honda

Huntsville

Classic Honda

800-264-1739 256-382-3759

Orlando

Ft. Lauderdale

888-893-4984 407-521-1115

888-792-7189 954-763-7157

Dept. Hours: M-F 7-7; Sat 8-4 parts@classichonda.com

Dept. Hours: M-F 8-5:30 rguido@holmanauto.com

FLORIDA

AutoNation Honda Clearwater C l e a r wa t e r

888-205-2564 727-530-1173 Dept. Hours: M-F 7-7; Sat 8-5; Sun 10-3 santosr1@autonation.com

AutoNation Honda Hollywood H o l l y wo o d

Honda Mall of Georgia

Davie

678-318-3155

877-544-2249

Dept. Hours: M-F 7-7; Sat 7-5 cdunlap@penskeautomotive.com

Dept. Hours: M-F 7:30-6; Sat 8-5 gbennett@cogginauto.com

Ed Morse Honda R iviera Beach

800-232-1098 561-844-8089

Dept. Hours: M-F 7-7; Sat 7:30-4 robbutton@rickcase.com

South Motors Honda Miami

888-418-3513 305-256-2240 Dept. Hours: M-F 8-7 mfranceschi@southhonda.com

Dept. Hours: M-F 7-7; Sat 7-5; Sun 9-5 hernandeze@autonation.com

Headquarter Honda Cler mont

Snellville

Braman Honda

800-497-2294 407-395-7374

770-985-1444

Dept. Hours: M-F 7-7; Sat 7-4 calvarez@bramanhonda.com

Dept. Hours: M-F 7:30-6; Sat 8-5 gphwholesaleparts@hendrickauto.com

Rick Case Honda

Dept. Hours: M-F 7:30-6; Sat 7:30-5 tonyrocha@edmorse.com

Miami

Duluth

Deland

800-758-0007 386-626-1811

Buford/Gwinnett

Milton Martin Honda Gainesville

770-534-0086 678-989-5473 Dept. Hours: M-F 7:30-6 robertthomas@mmhonda.com

Union City

Carey Paul Honda Dept. Hours: M-F 7-7; Sat 7-6 gperkins@careypaul.com

866-362-8034 770-306-4646 Dept. Hours: M-F 7:30-7; Sat 8-5 hondawp@nalleycars.com

Southern Motors Honda Ed Voyles Honda

Savannah

Hendrick Honda Bradenton

Marietta

Bradenton

800-334-3719 770-933-5870 Direct

888-785-8387 912-925-1444

877-706-2021 941-752-2123 Dept. Hours: M-F 7:30-7; Sat 8-4 Kris.kitzman@hendrickauto.com

C

Nalley Honda GEORGIA

Dept. Hours: M-F 8-7; Sat 8-5 pepe.guevara@headquarterhonda.com

N

800-277-8836 678-957-5151

Coggin Deland Honda

800-542-8121 954-964-8300

305-266-1915

Augusta

800-733-2210 706-228-7040

Holman Honda of Ft. Lauderdale

Jerry Damson Honda

Dept. Hours: M-F 7-5:30; Sat 8-4 Rkeel@damson.com

M

GEORGIA

Dept. Hours: M-F 7-7; Sat 7-6 hondaparts@edvoyles.com

M

Dept. Hours: M-F 8-6; Sat 8-5 angela@southern-motors.com

ACURA ALABAMA

GEORGIA

GEORGIA

N

Jerry Damson Acura

Duval Acura

Jackson Acura

Huntsville

J acksonville

Roswell

Savannah

800-264-1739 256-533-1345

800-352-2872 904-725-1149

877-622-2871 678-259-9500

800-347-0596 912-232-3222

Dept. Hours: M-F 7-5:30; Sat 8-4 Rkeel@damson.com

Dept. Hours: M-F 7-7; Sat 8-5 Cecil.adams@duvalacura.com

Dept. Hours: M-F 7-6; Sat 7:30-6 kmcmillan@jacksonacura.com

Dept. Hours: M-F 7:30-6; Sat 8-5 travis.morrison@southernmotors.com

Rick Case Acura

Nalley Acura

FLORIDA

Acura of Orange Park J a ck s o n v i l l e

888-941-7278 904-777-1008 Dept. Hours: M-F 7-8; Sat 7-5; Sun 9-3 msweeney@acuraoforangepark.com 32

FLORIDA

F o rt Lauderdale

Marietta

800-876-1150 954-377-7688

800-899-7278 770-422-3138

Dept. Hours: M-F 7:30-6; Sat 8-5 rubenramos@rickcase.com

Dept. Hours: M-F 7-7; Sat 7-5 byoung@nalleycars.com

DECEMBER 2018 AUTOBODY NEWS / autobodynews.com

Southern Motors Acura

NO. CAROLINA

Flow Acura Winston-Salem

800-489-3534 336-761-3682 Dept. Hours: M-F 7:30-6; Sat 8-1 www.flowacura.com


m

a

a

m

MISSISSIPPI

NO. CAROLINA

TENNESSEE

VIR G I N I A

Patty Peck Honda

Metro Honda

Airport Honda

Ridgeland

I n d i a n Trail

Alcoa

Chester

800-748-8676 601-957-3400

866-882-9542 704-220-1522

800-264-4721 865-970-7792

800-564-9836 804-414-1960

Dept. Hours: M-F 7:30-6; Sat 8-5 pmartin@pattypeckhonda.com

Dept. Hours: M-F 6:30-6:30; Sat 7-4 www.copytk.com

Dept. Hours: M-F 7:30-6:30; Sat 7:30-5 parts@airporthonda.com

Dept. Hours: M-F 8-7; Sat 8-4 rreese@i95honda.com

Vann York Automall

AutoNation Honda West Knoxville

Virginia Beach

NO. CAROLINA

Apple Tree Honda Asheville

800-476-9411 828-684-4400 Dept. Hours: M-F 8-5; Sat 8-4 appletreeparts@hotmail.com

H i g h Point

336-841-6200 Dept. Hours: M-F 7:30-6; Sat 8-3 SO. CAROLINA

Breakaway Honda G re e n ville

Crown Honda Southpoint Durham

800-849-5056 864-234-6481

855-893-8866 919-425-4711

Dept. Hours: M-F 8-6; Sat 8-5 fmarshall@breakawayhonda.com

Dept. Hours: M-Thu 7-11; Fri 7-6 Sat 7-5; Sun 11-5 www.southpointhonda.com

Hendrick Honda Easley

Hendrick Honda

888-513-5869 864-850-1200

Charlotte

800-277-7271 704-552-1149 Dept. Hours: M-F 7-7; Sat 8-5 rob.thomas@hendrickauto.com

Leith Honda Raleigh

800-868-6970 919-790-8228

E a s l ey

Dept. Hours: M-F 7-6; Sat 8-5 christopher.gagnon@hendrickauto.com

Midlands Honda C o l u mbia

877-273-4442 803-691-8585 Dept. Hours: M-F 7-7; Sat 7-4 www.copytk.com

Dept. Hours: M-F 7-7; Sat 7:30-5 parts@leithhonda.com

Piedmont Honda

McKenney-Salinas Honda

800-849-5057 864-375-2082

Gastonia

888-703-7109 704-824-8844 x 624

A n d e rson

Knoxville

800-824-1301 865-218-5461 Dept. Hours: M-F 7:30-6 rossd1@autonation.com

Bill Gatton Honda Bristol

800-868-4118 423-652-9545 Dept. Hours: M-F 7:30-5:30; Sat 8-1 hondaparts@billgattonhonda.com

Wolfchase Honda Bartlett

800-982-7290 901-255-3780 Dept. Hours: M-F 7-7 ekerr@wolfchasehonda.com

Colonial Honda

Hall Honda 800-482-9606 757-431-4329 Dept. Hours: M-F 8-7; Sat 8-5 fox@hallauto.com

Hendrick Honda Woodbridge Woodbridge

703-690-7777 Dept. Hours: M-Fri 7-6 Sat 8-5; Sun 10-4

Valley Honda Staunton

800-277-0598 540-213-9016 Dept. Hours: M-F 7:30-5:30; Sat 9-5 bwimer@myvalleyhonda.com

West Broad Honda

VIRGINIA

Richmond

Checkered Flag Honda Norfolk

800-277-2122 757-687-3453

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“You have to be willing to hold the customer accountable for the charges. It is hard to argue with facts, so make it factual and be willing to defend it,” he said. The last presentation on Friday was “Managing Customer Expectations: CCRE Guide to Implementation,” delivered by Shane Coker of Cokers Auto Body in Alabama. He “discussed his new method of business and front office management that has made it easier and more relaxing for him and his family while at their facility. He also discussed the many documents and forms he has created and shared those documents with all those in attendance, and additionally, word tracks and proper nomenclature of operations were discussed,” Lombardozzi shared. Coker began by asking, “What does consumer choice mean to you? What should it mean? It’s not just about choosing your shop … It’s choosing in everything!” He went on to talk about scheduling your day, refusing to negotiate with the insurance company and the value of educating the consumer. “If the customer ‘hears’ what

the insurer may say beforehand, they are prepared to counter, plus it builds credibility for the shop when the customer is prepared for insurance company attempts to steer,” he said. Moving on to integrating customer forms, Coker talked about estimate authorization, including prequalifying the customer, recording the vehicle owner’s intentions, the level of repair and how the entire conversation with the customer presents an opportunity to educate them, even if they choose not to repair at your shop. He went on to discuss disassembly, diagnosis and the repair contract, which “sets the rules of the repair and expectations for payment, protects the customer and shop and explains the contract of insurance is between the vehicle owner and insurer. The repairer is not party to the contract of insurance.” After discussing how his shop now handles interactions with insurance companies, Coker advised, “Start with one or two customers each day, not everyone. Don’t kill yourself in the beginning by trying to educate everyone that comes through the door. Learn your script; become com-

fortable with your techniques and materials, find out what your customer wants and decide if you can deliver. Long-term, we need to separate the shop from the insurance company by taking control of our shops [and] educating customers so they become advocates of our shops and make the insurance company irrelevant in our businesses.” On Saturday morning, Steve Behrndt of Crawford’s Auto Center in Pennsylvania presented “CCRE Job Costing.” Lombardozzi explained, “Steve presented a job costing program that provided the reasons for using this type of system and how it could be implemented in even the smallest size shop. Knowing your costs will allow you to know what price to sell your services for and be profitable at doing so.” Asking how shops determine hourly rates and how they know the cost of doing business, Behrndt encouraged attendees to engage in job costing on each and every repair order. “Every other industry realizes the need to job cost. Manufacturers need to calculate labor, materials, ad-

ministrative, research and development costs, as do other businesses, to find their gross profit,” he said. “Why not body shops, or do we not want to know? Not wanting to know seems to be the normal reaction in the industry because we have been programmed to accept less, but the answer is right in front of us ... If you continue to do what you’ve always done, you will always get what you always got.” He questioned how shops can know that estimating databases are accurate if they do not job cost. In order to know an employee’s actual wages, shops need to track an employee’s individual labor tasks and then calculate their true labor cost, which includes their hourly rate as well as all benefits. Discussing the difference between an estimate and a repair order, Behrndt identified an estimate as a third-party’s supplied document, which is “a guesstimate of damages sustained, a rough calculation only.” He also emphasized that automated estimating programs are only guides. “These programs do not write repair orders,” he said. “They are only guides! The first step in taking control of your business is realizing you can-

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not operate your business profitability following an estimate prepared by a third party. The second step is to eliminate the third party’s estimate from your business, and the third step is knowing you cannot use an estimate as your final invoice. You cannot job cost by estimating, and you cannot estimate your job costing.” Reiterating that it is possible to make a profit in the industry, Behrndt told attendees that it begins with job costing each and every job. He explained how to calculate a shop’s average gross profit by tracking every order, including labor tasks performed, all parts utilized in the repair, sublets, mark-ups, return items and sales tax amounts. He said, “We want to help shop owners grasp the importance of tracking expenditures and become more profitable by helping you understand the true costs within your business vs. your operating costs.” Behrndt walked through examples and calculations to show how many shops operate at a financial loss. He talked about a variety of ways to track technicians, and he concluded by elaborating on the importance of ac-

curate, complete documentation. The final presentation, “Autosport Testimony and Customer Expectations,” was delivered by Shey Knight and Bryant, who shared their experiences working for Autosport Body Works, a former DRP shop that they eventually ran according to the CCRE philosophy. Lombardozzi noted, “They discussed how to meet your customers’ expectations and listen to what they are really asking of you. They discussed repair contracts and other documents that are in use at their facility and how these documents and processes have made them a more profitable business.” Autosport Body Works became a DRP for State Farm in 2001. The business enjoyed increased business and a good partnership until State Farm started expecting more and more for less money. According to Knight, “Our ‘partnership’ with State Farm started to look more like a dictatorship, and we started to hate the business we once loved.” Despite the belief that it was the way the industry had always been,

Knight and Bryant believed there had to be a better way. So, they started talking to other shops and got involved with CCRE to create a system that worked for them. Bryant shared, “So, what’s the problem with our industry? We all have different ideas and practices, but instead of working together, we fight amongst ourselves. We are all too busy to take the time to step out of our business so we can work ON our business. We are all at different stages in running our business, but I urge you to take your first step in becoming truly independent.” Knight and Bryant then went on to explain how they run their business. Vehicle owners contract with the shop, and insurance adjusters are not permitted to enter the shop or work areas; only after a vehicle has been disassembled and moved out of the shop can an adjuster sign in to see the vehicle on their lot. They refuse to accept insurer estimates and will not negotiate with the adjusters. Rather than write estimates in rates and hours, they bill in dollars, and they will not supplement insurer estimates; however, at the vehicle

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owner’s request, they will provide a Notice of Deficiencies. Knight stressed, “The key to it all is the customer! You have to become customer-focused and remove the third party influence.” The presentation continued to cover customer expectations, the customer service process, obtaining the commitment, rejecting excuses and keeping the customer involved throughout the repair process. At the end of it all, Knight and Bryant emphasized that shops can get paid, saying, “Simplify. Educate yourself. Educate the consumer. Be persistent. Be patient. Get support. Have fun.” The seminar concluded on Saturday afternoon with breakout sessions and open discussions on a variety of topics pertaining to the industry, and attendees shared their challenges and the solutions they had found. Lombardozzi stated, “Judging by the feedback from those who attended, this was a very successful event for all.”

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Tips for Busy Body Shops with Stacey Phillips

Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.

Why OEM Certifications Are Critical to Remain in Business For those body shops still not con“The top insurance carriers are alvinced that obtaining OEM certifica- ready looking at their DRP programs tions is a critical component for and overlaying them with certification surviving in the future, Robb Young programs as a possible way to enhance of Assured Performance said, “Change and improve the 35-year-old business is necessary if you want to capitalize model,” said Young, who predicts this on the opportunity of the future. If you will continue in the future. continue to run your business the same As a result, he stressed the imporway you have been, five years from tance of getting certified to stay comnow your business will either be dying petitive. or be out of business.” “As Benjamin Franklin said, ‘By Young recently spoke to a group failing to prepare, you are preparing to of body shop owners and managers fail,’” said Young. Currently, approximately 10 perduring the AkzoNobel Acoat Selected North American Performance Group cent of shops across the United States meeting in San Diego, CA, have some type of certificaabout the “20/20 Vision: tion. The reason, according to Leveraging Your CertificaYoung, is they lack the proper tion.” That 20/20 Vision, actools, equipment, training and cording to Young, is the facilities to repair vehicles to point in which a shop has 20 OEM specifications for proper percent growth in its busifit, finish and safety. For exness and earns a 20 percent ample, out of the 6,000 shops Robb Young pretax net profit, an achievethat have applied for certificament made possible as a result of tion through Assured Performance NetOEM certification and executing a work over the last seven years, Young well-thought-out business strategy to said only 25–30 percent could obtain become an OEM Certified Collision certification. Care provider. Young is the director “If only 10 percent of the shops of strategic accounts for Assured Per- are experts, be one of those top 10 performance, a North American adminis- cent,” Young recommended. “Be the trator of OEM certification programs, local expert of choice.” network management platforms and He encouraged shop owners and collision repair business development managers to change their current line programs and tools. of thinking, begin exploring what sets During his training session, them apart from the shop down the Young discussed the new paradigm street and utilize OEM certification as taking place in the collision repair a marketing differentiator. industry and presented the case for Young mentioned how certificacertification from both revenue and tion not only differentiates a business, expense perspectives. but how it also can help with staff reHe identified the three main fo- cruitment, marketing, how customers cuses insurance companies have choose a shop, manage the company’s today: customer satisfaction, cost re- processes and with overall quality. duction and risk mitigation. OEM certification also provides “The paradigm is shifting and quality assurance for a facility in the they [insurance companies] are look- event there is litigation. He talked ing for ways to save money and re- about the importance of having a duce risk,” said Young, who had process in place and documenting that worked in the insurance industry and process on every single repair. automotive industry for 25 years prior “If you are pulled into a court of to joining Assured Performance Net- law, you’ll need to provide substantial work this year. Rather than viewing documentation to show how you folinsurance companies as customers, he lowed OE repair procedures by a suggested looking at them as strategic trained technician, using the correct partners. parts,” Young cautioned.

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DECEMBER 2018 AUTOBODY NEWS / autobodynews.com

He also mentioned the OE-QC tool inside Assured Performance’s ShopOps platform that every certified shop has access to. The first step is to set up basic rules and processes. This includes listing out the tool and equipment purchases necessary for the facility, allocating money toward training, marketing and researching the cost of certification fees. “Yes, there’s a cost to getting certifications,” explained Young. “You can’t buy them. You have to qualify. It’s a value proposition that must permeate your shop’s culture.” Although there is an investment necessary for certification, it has been shown to ultimately increase the amount of business coming to your doorstep. “Most of our shops see an increase in the number of vehicles they repair if they follow the process and

the marketing strategies laid out through the OEM Certification programs,” Young said. Young also pointed out that OEMs are proactively communicating with insurance companies and marketing to consumers through Assured Performance’s locators and marketing tools available in ShopOps. “OEMs are increasingly directing traffic to shops that are certified,” he said. “Over the last 18 months, data has shown that a shop that follows OEM procedures has a lower cycle time and higher CSI score.” Once a shop receives certification, Young reminded shop owners and managers to let everyone know about it. “When you get certified, you have the right to carry that badge,” he said. “It’s an honor, so make sure to use them on all your marketing collateral.” See OEM Certifications, Page 49


autobodynews.com / DECEMBER 2018 AUTOBODY NEWS

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The Next Generation Speaks Out on Their Collision Repair Careers by Chasidy Rae Sisk

It is common knowledge in the collision repair industry that there is a shortage of incoming technicians. Over the past few years, many articles, educational seminars and programs have been dedicated to this dilemma. However, while many industry professionals have spoken about what shops can do to engage millennials and Generation Z (those born between 1995 and 2009), rarely does this information come with feedback from the young people in these age groups who have decided to join the industry’s workforce. Why did these young people pursue a career in the collision repair industry? What factors are most important when considering a company for which to work? What misperceptions have they encountered about the industry, and how can the industry’s image be improved to attract more of their peers? These are some of the questions that several young industry professionals graciously answered for Autobody News. Their responses will help their more seasoned peers better understand their generation in order to attract and maintain new employees. Like any other group, no two individuals are the same, and their responses vary as much as their personalities. However, there are some underlying similarities and themes across their responses. Most of those interviewed were interested in the industry from a young age. Travis Jeske, a UTI graduate who works for Caliber Collision, grew up in the automotive industry with a mechanic for a father, and he decided to pursue collision repair training so that he could open his own mechanic and body shop one day. Alex Casillas-Mendoza, another UTI graduate and Caliber employee, shared “I have a passion for cars and have always been intrigued by the engineering, assembly and disassembly of any vehicle.” Nineteen-year-old Meghan Grant worked in the garage with her dad when she was younger and developed a “passion for cars, trucks, bikes—you name it. Typical fatherdaughter stuff. My mom, on the other 38

hand, was very artistic, so I was always painting and doing arts and crafts with her. I love being able to create things on my own, so I figured, why not mix the two? I started dabbling in the collision repair industry when I was around 13 and started seriously pursuing the field when I was 15.” Shiloh Taft, an employee at Julian’s Auto Body and Frame, has “always enjoyed working with my hands and fixing things. It’s amazing to get

nothing but increase. I was excited to find out there was a one-year vocational school I could attend to put me in a career I actually wanted to do. [When seeking employment,] the most important factor to me was getting my student loans paid off within the next five to 10 years, so I didn’t apply to companies that don’t offer student loan benefits, but luckily, I found a company that has decided to help me repay my student loans once my probation period ends.”

Casillas-Mendoza agreed that the most important factor when considering a place of employment is “the opportunity to grow and build my career path progressively.” For others, the work environment plays a vital role in their decision-making. Taft stated, “A good group of people can really make work flow more efficiently. It’s very important for me to work with people who have the same goals as I do so we can get

something that’s broken and restore [it to] its original form.” ABRA’s Mackenzie Hanberry found the industry a little later in life when she was working in the car wash industry and became interested in learning body work as a response to customers asking her how to repair issues with their vehicles. Looking at what’s most important when considering a job, the young industry professionals were given five categories to prioritize: company culture, compensation and benefits, charity and community involvement, training opportunities and potential for advancement. Overall, training opportunities were the most important factor. Potential for advancement tied in second place with compensation and benefits, followed by charity and community involvement; company culture came in last. For Jeske, “All of these are about the same importance. What’s most important is a good process because without it, work becomes a nightmare. How the shop is managed and that quality repairs are being performed outrank everything else.” Student debt assistance was a very important consideration for Ashley Cambern of Woodlands Collision Center after she graduated school and began looking for employment. “After high school, I wasn’t prepared to go to college and study four more years when I could be out in the world doing something I love and making money,” she said. “Plus, college tuition prices have done

Potential for advancement is also vital to Cambern, who stated, “I don’t want to work anywhere that I can’t get a better-paying job in the long haul. I understand starting at the bottom and working your way up, but if you have the skills and they hold you back—you don’t need to work for a place like that.”

the job done in a timely manner and do it right the first time.” Grant added, “I already love what I do, so the only thing that extremely concerns me is the work environment. I wouldn’t want to work somewhere that management was horrible and made me feel like I didn’t want to be there.”

“I already love what I do, so the only thing that extremely concerns me is the work environment. I wouldn’t want to work somewhere that management was horrible and made me feel like I didn’t want to be there.” — Meghan Grant

DECEMBER 2018 AUTOBODY NEWS / autobodynews.com


autobodynews.com / DECEMBER 2018 AUTOBODY NEWS

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These young professionals shared a lot of opinions about misperceptions of the industry. Cambern said she feels that many people believe “you have to be trained your whole life to work on a wrecked vehicle, but it’s really just about getting familiar with the types of materials used, understanding how they fit on the vehicle and learning how to do the repair.” Hanberry takes the opposite view. “One big misperception about this industry is that anyone can do this, and while technically that’s true, I feel it takes a certain type of skill set that needs to be required as a technician becomes more and more advanced,” she said. The largest misperception Grant has noticed “revolves around women in the industry. I’ve experienced firsthand people saying women can’t do it, and they’re awful at it and not strong enough. It really breaks my heart but also fuels it… whenever someone tells me women can’t work in this industry, I do my best to prove them wrong. The collision repair industry needs more women because women in this industry are amazing at what they do!” Taft shares a similar experience. “I always hear, ‘You don’t look like a collision repair technician.’ What is a technician supposed to look like?” she said. “Some men in this industry have also told me I shouldn’t be doing a man’s job. The only way to combat that is by proving them wrong and showing that we women can do just as well as they can.” The general consensus for improving the industry’s image is making sure the job is done well and the customer is happy. As Cambern pointed out, “Just one positive thing can go a long way.” Hanberry added, “The better the repair, the more work will come in and the more money will be produced.” Public image is also a major factor that needs improvement. Casillas-Mendoza noted, “We are often portrayed as the bad guys. When insurance companies fight about repairs being done per OEM requirements, it delays vehicles getting repaired in a timely manner and results in customers getting upset with the shop. We need to regain control of our industry and not let insur40

ance companies dictate how vehicles should be repaired to improve turn-around time and provide a better customer experience.” When asked how to attract more young people to the industry, Cambern and Hanberry agreed that money talks. According to Cambern, “People my age are going to college or just getting out, and paying for their student debt is the biggest thing on their mind. Also, tools are very expensive, and you can’t make money without them. I think more people would be interested in this industry if employers offered a $2,000 voucher for tools that could be repaid slowly through monthly payments.” Hanberry added, “I understand starting at the bottom, but as a technician gets better and learns more, their pay should increase. More people are flocking to work on computers, and few people see manual labor as rewarding.” Jeske believes the industry needs to work on attracting fresh blood at a younger age. “Most people my age have already decided what they want to do in life. We need to get kids interested in cars and ensure high schools keep having shop programs – that’s how I got into this industry,” he said. A big deterrent to pursuing a career in the industry is the view that more experienced professionals have of the younger generation. Hanberry shared, “Being a millennial, we have a really bad reputation of being lazy and not wanting to work for our money. That’s how the older generation sees us, but if they’d sit down and work with us, they’d realize we are driven by hard work and being rewarded for that work.” Casillas-Mendoza believes the older generation should recognize “that we have a fresh outlook on the industry, and we’re ready to work hard and grow in experience to become the next great generation of technicians. One major thing older guys do is underestimate the new generation techs. They think we don’t have the drive it takes to succeed in this industry, but I work hard to achieve OE-approved repairs and prove to myself and others that our generation of technicians can do as well or better than the older generation of industry veterans.”

DECEMBER 2018 AUTOBODY NEWS / autobodynews.com

According to Grant, “The biggest thing the older generation should know about us is that there are lots of us out here with a thirst for knowledge who want to get dirty, work hard and learn. Some of us might take a little more time than others to learn, but most of us have that drive, thirst and hunger for more knowledge so we can become the best we can be.” Cambern hopes that established industry professionals will also recognize her generation’s need for advancement. “We’re capable of doing things they’ve been doing for a long time,” she said. “Many places that hire people from my generation often lose them because there’s no room for advancement. It seems that younger technicians are only promoted when an older guy retires or passes away. My generation likes to feel wanted and important; they strive to do their best when they feel like they have purpose, but if their job doesn’t provide those things and offers no room for advancement, they’ll move on because there’s no reason to stay in a job that gives them no purpose.”

Brandon Eckenrode, director of development for the Collision Repair Education Foundation, agrees that the industry needs to focus on getting students involved in collision repair and showcasing the industry in a better light at middle school and high school levels. “The industry needs to take on responsibility. Many misperceptions about collision repair can be rectified simply by making shops and schools look professional,” Eckenrode suggested. “We need to address this at a local level by getting local employers involved to demonstrate the need for these programs. Career fairs are also helpful for showing there are plenty of jobs available for those who are properly educated.” Offering an example of a local industry-led program that has effectively engaged local students, Eckenrode noted, “Since the Atlanta I-CAR Committee got involved with their local high school, they’ve raised nearly $400,000 to reinvest in the programs, and enrollment has doubled. The Committee’s involvement with local collision repair programs

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and students has had a drastic impact on the school.” Gerry Poirier, chair of the Atlanta I-CAR Committee, recalled, “We got involved because we needed to do more than just try to get more techs into the industry. We reached out to Maxwell High School of Technology around seven years ago and approached the faculty to explain our goals. They had around 20 kids in their collision program at the time. We established an Advisory Board and started fundraising for them. We’ve donated nearly $100,000 in grants, scholarships and supplies, and their program now attracts around 80 students each year.” The Committee is also involved with Athens Tech, Chattahoochee Tech, Atlanta Tech and North Georgia Tech, all of which have received CREF’s Makeover Grant. Their next phase will include a signing day program that guarantees employment to good students. Poirier said, “We want to define career paths, help the schools determine if the paths are a good fit for their students and encourage students to follow the path.”

‘Dose of Reality’ Needed on Auto Market Predictions, Claims NADA Chairman by Pat Sweet, Asset Finance International

Wes Lutz, chairman of the U.S. National Automobile Dealers Association (NADA), has called for a “dose of reality” about how the auto market is changing, arguing that claims stating that ride-hailing will replace personal vehicle ownership should be treated more skeptically than they are currently.

He also urged caution over whether self-driving cars will be implemented in large numbers and about dealers’ apparent lack of enthusiasm for electric vehicles. Lutz said in remarks to the Automotive Press Association, “Each one of these narratives might sound right. But the truth is that each one

is built on false or unproven pretenses.” Lutz cited a study published in August by the AAA Foundation for Traffic Safety that calculated that the cost of relying on ride-hailing services as a primary mode of transport in 20 of the biggest metro areas in the U.S. was, at minimum, more than twice as much as the cost of owning a personal vehicle. According to the analysis, the average driver in an urban area—the only setting in which using these services are a practical full-time transportation option—drives 10,841 miles per year. While urban drivers travel fewer miles than those living in smaller towns or rural areas, relying on ride-hailing services as a primary mode of transportation would cost $20,118 annually. This equates to more than twice the cost of owning a personal vehicle, even when factoring in the expense of fuel, insurance, parking and the vehicle itself. Lutz said, “And if Uber and Lyft are dramatically more expensive than personal vehicle ownership, then people aren’t going to stop buying cars, and the auto industry

isn’t doomed. “Instead, people are going to continue doing exactly what they’re doing now: Owning a car or truck for day-in and day-out personal transportation and using ride-hailing services when it makes more sense than driving. That’s not a revolution. That’s an evolution.” Similarly, Lutz said that the case for autonomous vehicles is built upon the premise that self-driving vehicles will be safer than humans. He added, “Yes, there were 37,000 fatalities on the roads last year. But Americans drove more than 3.2 trillion miles. That means nearly 90 million miles are driven in the U.S. for every motor vehicle death. That’s 342 years of driving—24 hours a day, seven days a week, 52 weeks a year— between traffic deaths.” Lutz also contested claims that franchised dealers are not enthusiastic about selling electric vehicles by questioning the assumption that dealers stand to lose out on service revenue. We thank Asset Finance International for reprint permission.

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From the Desk of Mike Anderson with Mike Anderson

Mike Anderson is the president and owner of Collision Advice, a consulting company for the auto body/collision repair industry. For nearly 25 years, he was the owner of Wagonwork Collision Center, an OEM-certified, full-service auto body repair facility in Alexandria, VA.

Toyota’s Training Website Offers Free Information for Collision Repairers One of the occasional frustrations I experience is seeing the industry fail to make use of some of the great (and free!) resources shops have at their disposal. When you find, for example, something is missing or seemingly inaccurate in one of the estimating systems, please take a few minutes to submit an inquiry to the Database Enhancement Gateway (www.degweb.org). In October, for example, someone questioned why there was no paint time for the fender bracket for the 2017 Toyota 4Runner in the CCC estimating system; within a day, CCC responded that it was adding two-tenths of an hour of paint time for the part. The entire industry benefits from the few minutes it took someone to submit that inquiry to the

for I-CAR’s Repairability Technical Support resources, but it’s waived for any shop that is regularly training with I-CAR.) But perhaps the free resource I most often see shops scribbling down in their notes when I talk about it in my classes is Collision Repair & Refinish Training (www.crrtraining .com), which is packed with tools to help you repair Toyota and Lexus vehicles. It’s not a substitute for subscribing to Toyota’s repair information website, but it offers tons of great information. Here are just a few portions of the website that I think shops should check out: • Start with the “News” tab at the top of the homepage. On the righthand side is a list of categories of content, including “Tech TIPS.” Divided up between “Painters Corner” and “Body Corner,” the Tech TIPS offer Toyota’s information and advice for your technicians on such topics as blending, decoding paint codes and sensor recalibration. • The “Training News” The Toyota training website offers sections of information category is divided up furboth for body technicians and painters ther by topics including DEG. If every shop in the country “paint,” “body,” “electrical” and were to submit even just one or two “safety.” I usually suggest starting inquiries a year, the estimating sys- with the “recommended procedures” tems would be far more complete topic because you’ll probably find and accurate. something of immediate use and inCan’t find some specific colli- terest, such as articles on zero point sion repair information? There’s calibration, calibrating bird’s-eye “Ask I-CAR,” an excellent, search- view cameras and welding techable database of questions submitted niques that minimize heat-effect. by your colleagues and answered by • The “Video” category includes the great folks at I-CAR. Wondering about a dozen brief videos. One of the if Hyundai or Kia has sectioning pro- best videos features Toyota trainer cedures, for example? What does I- Eric Mendoza walking you through CAR say about repairing damaged the proper procedures for conducting door intrusion beams or bumper re- a “health check” (a diagnostic scan) inforcements? The answers are right on a Toyota vehicle. at “Ask I-CAR” (https://rts.i-car.com • If you haven’t already done so, /ask-i-car.html). If your question use the “CR&R Info” tab from the isn’t there and already answered, you home page to register for the “Secure can submit it to be answered for you Personal Identification Number” – likely helping others as well. (Full (SPIN) that you need to register for disclosure: There’s a subscription fee any of the collision repair training

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DECEMBER 2018 AUTOBODY NEWS / autobodynews.com

to receive Toyota’s “Collision Pros” magazine. It’s a free quarterly publication that offers repairer information on Toyota’s newest vehicles, advice on finding the Toyota information you need and tips such as how to order replacement vehicle information labels. You can sign to receive it using this link: https://tinyurl.com /CollisionPros. But until you receive your first copy (or if you ever want to see articles from previous isVideos on the site offer information on such topics as sues), some of the magascanning Toyota vehicles zine’s content is available at offered online through the website, the Toyota training website. and you can also find a complete schedule for the instructor-led courses I commend Toyota for creating all Toyota offers at its three training fa- the content that they have to help the cilities around the country. (A fourth industry. Now it’s up to you to put the website to use to help your techlocation is “coming soon.”) • I also encourage shops to sign up nicians and your business. courses Toyota offers for both dealership and independent shop technicians. Many of those courses are

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Day Job/Night Job

Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.

with Ed Attanasio

Industry Veteran Creates Vintage Wine Furniture He’s got mad skills when it comes to making furniture out of wine barrels and old wood that he finds or purchases for his creations. It’s something he does when he isn’t meeting with insurance companies as the director of insurance relations for Cook’s Collision. Frank Quadrato has 37 years of experience in the collision repair industry in northern California. He credits much of what he learned about the industry to Peter Lock, the former head instructor at Contra Costa College, where he graduated in 1986. After working for several independent shops as a technician to learn every facet of the industry, Quadrato was hired by Cook’s Collision nearly 20 years ago. Seven years ago, Quadrato began building furniture and other items such as tables, fire pits, chairs and other items that are in high demand. But his first creation was something completely different.

Frank Quadrato’s wine furniture gets rave reviews and sells quickly

“My son Chris (then 14) and I wanted to buy an old truck and restore it,” Quadrato said. “To raise the money, we designed and manufactured what we called ‘Dream Falls,’ a water feature made out of metal and slate. It was a nice father-and-son project and an opportunity to teach Chris how to weld. We built a few of them and took them to the Clayton Wine Festival, and they were a hit. We did it the following year and got enough money to buy the truck. After 44

we restored it, I was looking around for other projects, and that’s why I started making things out of wood.” To make the fire pits, Quadrato takes old wine barrels and re-purposes them. They’ve become a pop-

Lisa (left) and Frank Quadrato work together to make tables, fire pits, chairs and other items out of old wood and wine barrels

ular item and many of Quadrato’s friends and associates now have them on their patios and in their backyards. “I cut a hole in the barrel and put a fireplace insert in there and then make a small door for the gas hookup,” he said. “Then, I take winery box tops and attach them in a ring around the outside of the fire pit. People who love wine really appreciate the skills and craftsmanship that go into these fire pits, and I think they also like the fact that I am taking these old barrels and making them useful again.” The wine barrel fire pits take 8-10 hours on average to make and retail for $950. Quadrato sells them at wine festivals throughout the Bay Area and gets a lot of satisfaction with great reviews for his work. In addition to designing and building a wide range of other items, he is always looking for that next project and challenge. “I’ve made thousands of things now, including large tables, candlesticks, chairs, stools, cabinets and all types of furniture using old, stressed wood,” he said. “I recently made an 8-foot table out of wood that I got from an old barn. I build everything from scratch in my garage and then

DECEMBER 2018 AUTOBODY NEWS / autobodynews.com

we sell them at shows. I was an iron worker for three years before I became a body man, so I know how to build things, which allows me to creatively combine wood and metal in many of my pieces.” Building furniture is a family affair at the Quadrato house in Clayton, CA, because Frank’s wife, Lisa, helps him with the staining and finish work. “She is great and has an eye for detail. We work very well together,” Quadrato said. “We always seem to have at least one project going on here. Recently, we made wine tables and chairs and sold them at four East Bay wine shows. We have the best wine in the world right here, and people love the fact that we are repurposing wine barrels to make furniture.” A winery in St. Helena recently contracted Quadrato to make furni-

ture after designing and building the vineyard’s sign. “I found an old barn in Martinez, CA, and disassembled it,” he said. “Then I took the wood and made picnic tables for AXR Vineyards out of it. I love using old and distressed wood because it has a distinct look and character.” Quadrato just turned 59. When the time comes for him to step down at Cook’s Collision, he knows that building his furniture will play a major role in his retirement. “It keeps me busy, and I like making things after fixing things for so many years. When I get a positive response from someone for a fire pit or a table, for example, it’s very satisfying and fulfilling,” he said.

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Top 10 States for Animal Loss Claims in 2017 by Denny Jacob, Property Casualty 360

Drivers across the U.S. must deal with a number of risks on a daily basis: drivers with poor driving habits, shoddy road conditions, inattentive pedestrians and much more. But in certain states, drivers must also be cognizant of animals.

According to a study released by the National Insurance Crime Bureau (NICB), a total of 1,740,425 animal-related insurance claims were processed for the years 2014–2017. Of those claims, 1,739,687— 99.9 percent—involved vehicles. NICB said the actual number of incidents is likely much higher because many drivers do not choose to carry coverage for that type of event. While deer are most commonly associated with motor vehicle accidents, NICB noted that raccoons, dogs, turkeys and coyotes also ac-

counted for a significant number of animal loss claims. Incidents like these are evidently more common than one might presume. Drivers everywhere should review their auto insurance policy to determine what is covered in the event of an animal-related event. With this in mind, here are the 10 states with animal loss claims in 2017. 10. Georgia • Animal loss claims in 2017: 15,165 • Total animal loss claims (20142017): 66,679 • State percentage of U.S. animal claim total: 4 percent 9. Virginia • Animal loss claims in 2017: 18,348 • Total animal loss claims (20142017): 78,104 • State percentage of U.S. animal claim total: 4 percent 8. Missouri • Animal loss claims in 2017: 18,374 • Total animal loss claims (20142017): 70,124 • State percentage of U.S. animal claim total: 4 percent

7. Michigan • Animal loss claims in 2017: 18,424 • Total animal loss claims (20142017): 64,010 • State percentage of U.S. animal claim total: 4 percent 6. North Carolina • Animal loss claims in 2017: 19,640 • Total animal loss claims (20142017): 79,252 • State percentage of U.S. animal claim total: 5 percent 5. Ohio • Animal loss claims in 2017: 20,122 • Total animal loss claims (20142017): 78.821 • State percentage of U.S. animal claim total: 5 percent 4. Wisconsin • Animal loss claims in 2017: 20,415 • Total animal loss claims (20142017): 81,282 • State percentage of U.S. animal claim total: 5 percent

• State percentage of U.S. animal claim total: 6 percent 2. New York • Animal loss claims in 2017: 31,286 • Total animal loss claims (20142017): 115,670 • State percentage of U.S. animal claim total: 7 percent 1. Pennsylvania • Animal loss claims in 2017: 33,989 • Total animal loss claims (20142017): 145,728 • State percentage of U.S. animal claim total: 8 percent

This article was originally published on PropertyCasualty360.com. Copyright(c) ALM Media Properties. All Rights Reserved. Republished here with permission.

3. Texas • Animal loss claims in 2017: 28,585 • Total animal loss claims (20142017): 105,036

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Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.

Tips for Busy Body Shops with Stacey Phillips

5 Key Steps to Implementing Practical Production Processes “Sometimes I think pushing a repair through a collision center is like putting a bag into the security scanner at the airport,” said John Shoemaker, business development manager for BASF Automotive Refinish Coatings North America. “You put the bag on the belt and hope it comes out the other end without any complications.”

John Shoemaker, business development manager for BASF Automotive Refinish Coatings North America

Shoemaker spoke to a group of body shop owners and managers during NACE Automechanika in Atlanta, GA, this past summer about practical production processes and how critical it is to incorporate them into your business. When Shoemaker walks into a body shop, he often notices half-repaired vehicles waiting for a missed part or sublet vendor to arrive. Dur-

that the car is ready to be repaired,” he said. “There are little things you are going to need as you work on that vehicle, and if you don’t have those things, your technicians are just staying busy working on cars but not being productive—completing repairs and getting them out the door.” His advice: “Don’t put a vehicle in production until you are 100 percent sure that it’s ready to be repaired and will go through the shop without any stoppage.” Shoemaker said that careful production planning can reduce the “chaos” of collision repair. Experience has shown that it can also help with productivity and reduce cycle time, improve touch time and ultimately improve overall customer service and a shop’s key performance indicators (KPIs). Shoemaker shared five key steps to repair production planning:

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to follow OEM repair procedures every time to learn exactly what is going to be needed for the repair and to reference Standard Operating Procedures (SOPs) from companies such as 3M. Another option is asking the dealer selling the parts to obtain the OEM procedure. “If you order a roof panel from somebody, ask them to send the repair procedures with it,” he said.

3) Validate available reference materials that were used Tim Rousseau, technician, at Tom Bush Collision Center to capture repair process opin Jacksonville, FL. Credit: Tom Bush Collision Center in erations During this stage, Jacksonville, FL Shoemaker said it’s critical to stripes. He said to pay close attention capture all operations using P-Pages, to validating internal/external repairs information from ALLDATA, the such as glasswork, key coding, me- SCRS Guide to Complete Repair Planning, the vehicle manufacturer repair chanical repairs and framework. Shoemaker encouraged attendees See 5 Key Steps, Page 53

1) Systematic damage appraisal inspection – itemizing all operations necessary to repair the vehicle

The first step is to review the vehicle using a damage appraisal as a guide and disassemble the car to ensure all of the damage is identified. As you disassemble the vehicle, systematically list the parts that will be needed for any identified repairs. “A certified tech and damage appraiser should identify every single step that’s involved in repairing that vehicle on day one,” said Shoemaker.

John Shoemaker stressed the importance of putting a vehicle in production when you are 100 percent sure that it’s ready to be repaired

ing his presentation, he stressed the importance of ensuring that everything needed to repair the car is organized in advance. “Just because you have an estimate and a technician doesn’t mean

that part,” he advised. This includes accessory items such as fasteners; decals, emblems and labels; seam sealers, corrosion protection and sound pads; and pin-

2) Focus on all parts, materials and sublet identified on the damage appraisal

Next, Shoemaker said to determine the type of part to be used, whether it’s OEM, aftermarket or recycled. “Not only should you have the parts necessary, but you should also have everything related to replacing

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In Reverse with Gary Ledoux

Gary Ledoux is an industry veteran with 48 years’ experience in the automotive and OEM collision parts industry. His column appears exclusively in Autobody News. He can be reached at YesterWreck@yahoo.com

The Fabulous ‘50s and Mr. O’Donnell’s Invention The decade of the ‘50s marked a golden era in the auto industry. American servicemen were back from the war. No longer were factories turning out bombs and bullets. It was time to build some cars that were destined to be classics—and time to introduce some new automotive technology. Mainstay models like the Chevy Corvette and Ford Thunderbird were introduced. The 1957 Chevy Bel Air became the quintessential classic car. Ford’s 1957 Fairlane became forgettable. It was also the decade that saw the emergence of the import car with names like VW, Triumph and Jaguar. Typically at the time, import cars were first characterized as vehicles that were difficult to repair and difficult to find replacement parts and refinish paint for. That stigma would remain until the 1970s. In 1950, with so many people hitting the roads after being limited for so long by gas and tire rationing and simply lacking a vehicle, vehicle miles traveled and the accident rate began to soar. In 1950, 34,763 highway deaths were reported. It was time to implement some safety measures. Wide curved-glass windows, front and rear, gave drivers an extra measure of safety to avoid accidents … and offered replacement window re-installers a new challenge. The new Chevy small-block V8 gave drivers safety in the way of more power on the new interstate freeways to pass and merge into traffic. Safety became more of an issue in the 1950s for body repairers, the motoring public and civil and safety engineers. Vehicle safety meant greater use of seat belts and padded dashboards. The concept of automotive safety airbags was developed in the 1950s, but they were not very practical. To deploy an airbag, a driver or passenger had to anticipate a collision and flick the “deploy” switch in time. Most people weren’t quick enough. Roads became safer with new legislation that called for more signs and lane separation. Civil engineers

48

designed roads with a crown in the middle, allowing rain water to run off to the edges, leaving a better, less slippery surface. It was also the start of the interstate highway system, which promoted driving and led to more accidents and more need for body shops.

Some key events in the 1950s would lead to the industry’s first voice in the 1960s. In June of 1955, Emil Stanley founded Stanley Publishing, which produced two magazines: Transportation Supply News and Jobber Product News. Little did he realize, he would later be an innovator in the world of publishing for the collision repair industry. In 1962, Stanley would produce the first nationally distributed collision trade publication, Auto Body News and Good Car Care magazine. Finally, the collision repair industry in general, and shops in particular, had a voice. Auto body painters finally learned that breathing toxic paint fumes all day was just not good for their lungs, and great strides were made in the world of paint application and the paint-application environment. It was around this time that German engineers developed downdraft technology for rapid air movement and adapted it for use in paint booths. During the war, people and soldiers in Germany worked underground for protection and secrecy. German engineers devised a method of pushing fresh air underground to soldiers and workers and pulled spent air out the bottom along a trench and then exhausted to the outside. When

DECEMBER 2018 AUTOBODY NEWS / autobodynews.com

the industrial infrastructure of Europe was rebuilt, engineers turned to the downdraft method. This was a technology whose time had come because painter health and safety became more of an issue in the 1950s. The downdraft system could quickly and efficiently suck fumes and spray away from the painter and into a floor trench. Fire prevention also became more of an issue, which promoted improvements in spark and fume control and spark containment within the booth. However, not every shop had a booth or saw the need for a booth. Lacquer was the paint of choice in the ‘50s, a product that dried so fast that overspray didn’t go nearly as far as enamel. Besides, lacquer needed to be polished to a shine, so a little overspray that

settled on a freshly painted surface was not a problem. In the early 1950s, the average hourly rate for collision repair was $4 to $5 per hour. The average hourly wage for a body man was $1.75 per hour. This seems ridiculous today, but back then, bread was $0.12 per loaf, and 3 pounds of hamburger cost $0.89. An article appearing in a 1969 trade journal provided one long-time shop owner’s vision of the collision business over the past 20 years. He noted that 1949–1954 were the best years of his operation. There were few shops and plenty of work. He employed 15 body men—a huge shop for the time. Intrusion from the insurance companies was almost non-existent, and in fact, the insurance appraisers seemed most amiable. As the industry as we know it

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today was taking shape, it was composed primarily of skilled auto body craftsmen—artisans who knew how to work metal. However, many lacked the leadership and professional skills to deal with the more business-savvy insurance companies and the changing landscape. They were craftsmen, not businessmen. According to a report done in 1969, almost 10 percent of those in business during the 1949–1954 period refused to change with the times and the changing industry dynamics. Instead of changing, they became bitter and frustrated, allowing the industry to be permeated with low-paying or no-paying work. This later paved the way for early industry leaders, such as Silvie Licetra, to conduct business training courses in the early 1960s, which became popular. Then, according to the industry veteran, from 1954–1959 things started to go downhill. Insurance companies found it difficult to find good appraisers. They were illtrained and not experienced. They became argumentative. Out of frustration, this was the period auto body associations, some around since the

early 1940s, began to be more prevalent. The only problem was that those shop owners in the association would say one thing at the association meetings and do the opposite at their shops the very next day. Shop owners began to ask insurance companies to be their “shop of choice,” setting the stage for the future DRP concept. As an incentive to the insurance companies, some shops offered a 10 percent parts discount on claims. However, many made the offer “tongue-in-cheek,” knowing that they would increase the labor charges to make up for it. Thus, the insurance company demand for parts discounts was on. Prior to this time, body lead was required to fill small imperfections in sheet metal. The lead was sold in 1pound bars, 20 bars to a box. It was heated and turned into a molten form, then worked into a fender or other sheet metal panel with a wooden spoon. It worked pretty well. But by about 1955, health and environmental issues raised with the use of lead spelled its demise. A Mr. J.C. O’Donnell invented body filler in 1955, but it would take

another year before it was referred to as plastic body filler. Next to the development in 1956 of acrylic lacquer by DuPont Company and RinshedMason, plastic body filler was one of the most profound developments of the collision repair world in the ‘50s. It didn’t take long before many simply referred to all plastic fillers by one of its most popular trade names: bondo. Plastic fillers were easier to use, enabling the shop to make a cheap and fast repair. The problem was, however, that early plastic fillers sometimes fell off the car, prompting either a redo of the repair or a very angry customer—or both. O’Donnell went on to found the Unican company on July 31, 1962, which is well-known for its variety of body filler products. By the mid-1950s, the collision repair industry as we know it today was in full swing.

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OEM Certifications

5 tips on how to market your certifications: 1) Educate the “key holders.” Consumers are the ones who have the right to choose who repairs their vehicles. “Many people won’t know the name of your shop but will recognize the name of the OEM,” Young explained. 2) List all certifications on the company website and create a landing page with information. 3) Hold an open house and invite the community to attend. 4) Use email and direct email campaigns to reach out to former customers, insurance agents and others. 5) Share information about your certifications on social media. In closing, Young recommended getting certified over the next 12 months. “Just pick one and do it,” he said. “Change your reality and become a leader in the industry. Not only does this give customers confidence that you can get the job done, but it also demonstrates you are best in class.”

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National Associations with Chasidy Rae Sisk

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.

Dave Luehr Teaches WIN Members How To Develop a WINner’s Mindset On Wednesday, Oct. 10, the Women’s Industry Network (WIN®) hosted a webinar featuring Dave Luehr of Elite Body Shop Solutions, who presented “Developing a WINner’s Mindset (Pun Intended!).” “Right now is the greatest time to be in the collision repair business, but only for those with the right mindset,” he said. “But, what IS the right mindset? “When I think of the word ‘limitless,’ I’m immediately inspired by the beauty of human potential. It makes me think of a childlike quality that dares to dream big and live life to the fullest. No one said this business was going to be easy. Many people fail, but it’s those people who honor the struggle and dig deep to find the great opportunities that exist within the difficulties—it’s these people who are creating a life of their choosing. “Building a great business is an art. In the collision industry, great men and women have created great businesses through the power of their imaginations. I believe everyone has the power to create greatness. It has very little to do with a person’s situation in life compared to their attitude toward their situation. Bring back that child within you. I can promise you it won’t be easy, but nothing worthwhile ever is. With a structured approach and a childlike imagination, you truly are limitless.” Luehr welcomed attendees, thanked WIN for the forum and encouraged any non-members to join the organization. Beginning his presentation, he noted that there are two fundamental problems in the industry: Everyone seems to be looking for a magic solution to their problems instead of looking within themselves, and many people believe they can have anything they want in life as long as they work hard enough. “Hard work does not make you successful… working hard on the right things makes you successful!” he said. After sharing a story about his background in the industry, Luehr

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talked about losing his first business after his mother’s death and how it shook his confidence for many years. He recalled difficult times in the industry during the first decade of the new millennium and noticing so many people who were succeeding. This led to him starting Elite Body Shop Solutions.

However, he said, “I still had to get out of my way. The only limitations that are keeping you from where you want to get in life are the ones you’re creating yourself. That was one of the greatest things to ever happen to me.” He identified four factors that contribute to developing a winner’s mindset: confidence, challenging limiting beliefs, personal responsibility, and finding the positive within the negative. Confidence “truly is at the foundation of whether we’re going to be successful or not. If you think you can be successful, you can because we get what we think in life, and confidence is at the very core of that,” Luehr emphasized. “You can have doubts and still have confidence that you’ll succeed. It’s really what you do in those moments of doubt that makes all the difference between success and failure. Why not you?” Confidence is only gained by doing—especially actions taken outside your comfort zone. Being afraid does not eliminate courage as long as you do it anyway. Explaining the confidence-competence loop, Luehr noted, “Every time you take an action that you’re a little fearful of, you become a little more competent. You know that you can do it and become better each time you do it. Don’t let your lack of knowledge about a certain subject

DECEMBER 2018 AUTOBODY NEWS / autobodynews.com

avoiding the status quo. “Real freedom comes when you’re being your best authentic self,” Luehr encouraged. “Take responsibility for your successes and your failures.” He then discussed three types of people: Card players, who play the hand they’ve been dealt; card haters, who act like victims and complain; and card fighters, who “make it their personal mission to go out and fight what’s wrong in this world.” Finding the positive within the negative is the final step to developing a winning mindset. This means finding the opportunity in each chapter. “Every time something bad happens, we have to find the good hidden in it,” Luehr advised. “Failing is OK, but fail brilliantly! Once you know it’s okay to fail, that changes

keep you from starting.” The second step to developing a winning mindset is to challenge limiting beliefs. Luehr observed that there are a lot of old beliefs that keep people stuck. “The majority of beliefs in our brains today were in place by the time we were 4 years old, so there could be faulty information in there. But many of us identify so much with our beliefs that it becomes part of who we are and can be difficult for people to swallow. Challenging your belief system does not make you wishy-washy; it makes you wise!” Luehr said. Moving on to personal responsibility, Luehr shared three tips for discovering your best self: exploring outside your current “truth,” determining the origin of those truths, and

See WINner’s Mindset, Page 57

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autobodynews.com / DECEMBER 2018 AUTOBODY NEWS

51


National News

Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.

with Ed Attanasio

PPG’s Jennifer Jarzembowski Discusses Impact of OEM Certifications National Account Manager, OEM After Sales Jennifer Jarzembowski from PPG advises shops all over the country on the advantages of attaining OEM certifications and helps shops obtain them.

Q:

nies?

Are OEM certifications important to insurance compa-

mand marketing, smart phone apps and the increased use of vehicle telematics give the OEM the advantage of the first notice of loss. OEM certification training, equipment and tooling can be costly. If a shop is dedicated enough to meet the requirements of a certification, a consumer can be reassured that the facility is doing safe and proper repairs.

OEM certification continues How can OEM certifications to grow, and existing prostrengthen shops’ relationships grams are becoming more and more with their DRPs? refined. The availability and required OEM certification can make a use of repair procedures and position facility less dependent on the statements make certified shops the authority on collision repair. The in- insurer. It can help leverage the insurance company authority is be- surer to allow the facility to repair coming less of a factor and there is the vehicle to the manufacturer standards (and in a timely manmore emphasis on the repair ner), allowing them to use method, OEM compliance OEM parts and get paid a and liability exposure rather fair rate. While a certified than alternative parts usage facility may still need to exand severity. I believe that plain the necessary costs to consistency in estimates and insurers, automakers are safe and proper repairs is bedoing a good job of educatcoming important to the inPPG’s National ing and keeping the insurers surance companies, and Account Manager, OEM After Sales informed regarding their challenging certified shops is therefore decreasing. They Jennifer Jarzem- certification requirements. bowski said that are showing interest in ac- OEM certifications Customers are being influcessing network manage- are an investment enced by the automakers to that many shops go to a certified facility, and ment systems that provide certified shop information might have to make they are much less likely (if and KPIs. Knowing who the to stay competitive at all) to be influenced to certified facilities are and knowing take the vehicle to a shop that is not the quality of their repairs makes it certified. Their trust has already been more likely that they will send work attained. Emerging legislation in several states will also drive consumer to them. consent and appropriate repair rates. Why are OEM certifications important to consumers? Shouldn’t a shop be discerning when pursuing an OE cerOEMs, consumer advocacy tification? organizations and media are When pursuing an OEM cereducating consumers on the importification, many factors need tance of identifying shops that meet OEM requirements, can assure a to be considered. It is absolutely esproper and safe repair of their vehicle sential that diligent research is done and will restore them to pre-collision, to ensure that there will be a return factory condition. OEMs are giving on investment (ROI). While I believe vehicle owners the level of confi- that ultimately it is an investment dence that they have identified quality that many shops might have to make shops at the point of vehicle purchase. to compete long-term, the proper exCertified shop locator sites, on-de- ecution of choosing a particular pro-

A:

Q: A:

Q: A:

them make decisions in the process. Interested facilities should express interest with their local PPG territory manager, and we will work with that shop on a case-by-case basis to help them make informed decisions in pursuing certifications.

What role do you play at PPG in helping shops get signed up for OE certifications? What’s the process?

You recently made an offer at a CAA meeting that you would help shops in the certification process, even if they don’t use PPG. Is that true and if so, why?

A:

A:

Q:

Q:

Our OEM after sales team in PPG automotive refinish works with the manufacturers and their administrators regarding the growth of their programs, and we remain educated on the program requirements. While it is the responsibility of the shops to pursue certification, we can certainly provide them with the knowledge and tools to help

PPG is dedicated to working creatively to help solve not only our customers’ challenges, but those of our industry as a whole. We welcome the opportunity to collaborate with all shops where it makes sense, as well as all other industry associations in the interest of, and as an end goal of, producing a safe and See Jennifer Jarzembowski, Page 54

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gram or programs is essential. Some major points to consider are vehicles in operation in their market, relationships with the area dealers, and initial and ongoing investment for equipment and training (and budgeting for it) based on the program requirements and ROI, etc.

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CIECA Welcomes Broadly as New Corporate Member Broadly recently joined CIECA as a Corporate Member. Founded in 2013, Broadly assists thousands of small businesses in growing their reputation online through better reviews and communication with their end customers. “Broadly is excited to join CIECA, as we are heavily focused on the auto service and collision industries,” said Chris DeIanni, who focuses on business development for the company. “There is a clear need to improve customer communication in this mobile-first and messagingfirst world. We know that joining CEICA will help us gain further insight into this successful vertical, which will enable us to help more small businesses grow.” DeIanni said that online reviews and local SEO are the most impactful ways for small businesses to get seen and found by today’s consumers. For more information about Broadly, visit www.broadly .com.

www.autobodynews.com

Mitchell Partners With VeriFacts

Mitchell announced it has signed a partnership agreement with VeriFacts Automotive for it to provide audit and inspection field services in support of Mitchell's OEM Collision Repair Network solutions, which are offered to auto manufacturers (OEMs), fleets, and other industry participants. The partnership will promptly help facilitate the launch of the General Motors Collision Repair Network, administered by Mitchell. VeriFacts will remain the verification company for the Cadillac Aluminum Program. Interested repairers can find more information about the GM program requirements and application processes on genuinegmparts .com. “VeriFacts has a solid reputation and vast experience in the field of vehicle manufacturer repair programs, and we are delighted to work with Mitchell to provide services for its OEM Collision Repair Network Solutions,” said Andy MacDonald, VP Sales & OEM for VeriFacts.

Think Genuine Subaru Parts.

Continued from Page 46

5 Key Steps

specifications and/or refinish procedures. “Make sure you have them attached to your damage appraisal,” Shoemaker recommended. “They should be systematically documented and work hand-in-hand so there are no questions down the line.” He said this outlines to everyone involved exactly what steps have to be taken for the repair and the process that is going to be used. The information can also be helpful in the event of litigation.

4) Review damage appraisal with paint team leader to validate refinish requirements The reason this is important, according to Shoemaker, is that team members often have differing opinions about what needs to be painted and how it should be accomplished. This may be related to paint code, validating blend areas and verifying the refinish process—whether it’s single

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stage, base/clear, tri-stage, four-stage or matte finish. By having everyone involved from the onset, Shoemaker said, you’re closing the loop and ensuring all employees have a voice at the beginning of the process. “Using this method, you’re able to confirm everything that has to happen on that repair the first day of the repair,” he said. “This allows everything to move steadily through the shop without stopping.” 5) Validate with the production coordinator, parts specialist and lead body technician

After the repair has been validated, Shoemaker said it’s time to develop a repair plan for the management system. “Having an accurate repair plan will help you create timelines for each step, monitor the progression and allow all involved to understand what needs to be done,” he said. “Having a solid repair production plan will help keep your customers properly informed and is the first step in having them completely satisfied when the job is complete.”

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autobodynews.com / DECEMBER 2018 AUTOBODY NEWS

53


Elon Musk Pledges to Improve Tesla’s Service Location Coverage Within 3−6 Months by Simon Alvarez, Teslarati

In a recent announcement on Twitter, Elon Musk pledged to “fix” the existing gaps in the coverage of Tesla’s service locations. According to the CEO, Tesla will aim to expand the reach of its service centers to areas beyond big North American cities within the next 3–6 months. Musk also issued the same pledge to all countries in which Tesla will be operating by the end of next year.

Musk’s announcement on Twitter comes at a time when Tesla seems to be at the brink of reaching even more impressive milestones in vehicle Continued from Page 52

Jennifer Jarzembowski

quality repair for the consumer.

Jennifer Jarzembowski joined PPG automotive refinish in May 2018 as national account manager, OEM after sales. She works with OEMs on the growth of their certified collision programs, PPG product approvals and identifying opportunities for their field sales organization. Jarzembowski has more than 10 years of experience working with facilities on a national level and assisting them with achieving OEM certifications. She brings a wealth of knowledge in certification requirements, including equipment and training. Her goal at PPG is to help bring value and profitability to already-certified shops and those seek-

Don’t Miss the Weekly Industry NEWS Your Shop Needs. Sign Up Free Today! 54

delivery and production. In 2019, for one, Tesla aims to produce 10,000 Model 3s per week, resulting in a yearly output of more than 500,000 vehicles. Such a fleet requires a strong network of service centers in all areas where Teslas are being sold. Tesla’s service centers are admittedly one of the company’s biggest points of improvement. Over the years, Tesla’s vehicles have developed the notorious reputation for being incredibly difficult to repair. Anecdotes from Tesla owners from the initial days of the Model S alone indicate that getting vehicles serviced, particularly for repairs, could become a taxing experience, partly due to the lack of spare parts and the number of certified body shops that can actually service the electric cars. Musk has since pledged to address this issue. In the 2018 Annual Shareholder Meeting, Musk discussed the expansion of Tesla Service Centers and authorized body shops. Addressing the company’s shareholders, Musk noted that year-over-year, Tesla

ing certification. Prior to joining PPG, Jarzembowski worked with Assured Performance Network (APN) as director of certification integration and OEM account manager. Before APN, she spent 24 years with Axalta Coating Systems as a national account manager. In this role, she was responsible for various aftermarket collision programs, including building and maintaining program materials and managing a network of inspectors. She also held positions in managing color & technical service, regulatory, health & safety and product management. Her career also includes eight years as a Russian linguist and U.S. Naval petty officer, as well as four years as a licensed Part 135 and 121 aircraft dispatcher. She studied languages and world business at Eastern Michigan University.

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DECEMBER 2018 AUTOBODY NEWS / autobodynews.com

expects to see a doubling of service center capacity for Tesla. “We’re rapidly expanding service centers. Year over year, probably see a doubling of service center capacity for Tesla. We’re making major progress on the body-shop front.

This is quite a big deal. We’re creating Tesla body shop repair locations. We should have by the end of the month in at least the Top 10 metro areas in the US being able to be serviced by a Tesla body shop. This will be a dramatic improvement in the cost and time of body repair,” Musk said. Musk also teased the idea of launching in-house body repair shops to address damages from minor accidents quickly. Tesla launched the first set of in-house repair shops earlier this year, and so far, they seem to be working well. A Model 3 that was damaged from an accident in a parking lot, for one, was fully restored by an in-house body shop in just 25 hours. With that said, Tesla’s service network still has a long way to go,

particularly in foreign regions. Last July, reports emerged that Tesla owners from Norway were getting aggravated by the company’s slow service. Responding to the reports on Twitter, Musk admitted that “Norwegians are right to be upset with Tesla” considering that the electric car maker is having trouble expanding its service facilities in the region. As the impending global rollout of the Model 3 approaches, Tesla seems to be preparing itself for a massive influx of vehicles abroad. In Tilburg, Netherlands, for example, the company recently acquired an expansive facility located close to its assembly plant and delivery center. The facility, which spans 387,500 square feet (36,000 square meters), is speculated to serve as a hub where parts for vehicles are stored and distributed to surrounding regions. Considering that a shortage of parts is among the problems that plague owners, the Tilburg hub would likely play a vital role in ensuring that Tesla’s service networks are fully equipped and ready to address owners’ concerns in a timely manner. We thank Teslarati for reprint permission.

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autobodynews.com / DECEMBER 2018 AUTOBODY NEWS

55


CARSTAR Weighs in on the Hefty Costs of Hazardous Deer

Many deer find their way onto highways and into suburban neighborhoods during the autumn season. Both parties lose when car and deer collide, but a measure of defensive driving can reduce the risks. According to the Insurance Information Institute, during deer season, which generally runs from October through December, there is a dramatic increase in the movement

of the deer population. CARSTAR says that while the frequency of deer-related accidents is decreasing, the severity of these accidents is increasing because modern vehicles are filled with advanced technologies that need repairing. One out of 167 drivers will have a claim from a deer, elk, moose or caribou collision in 2018, according to State Farm, which is an improvement from the 2017 odds of 1 in 162. Those odds more than double during October, November and December, and there is an increased risk around dawn and dusk. State Farm estimates that

Axalta Hosts Automotive Career Fair

Axalta hosted an automotive career fair at its Customer Experience Center in Concord, NC, on Thursday, Oct. 18. “This event is very important to us,” said Troy Weaver, vice president of Axalta North America

Refinish. “With a critical labor shortage threatening collision repair, it is important to raise awareness of the exciting opportunities that our industry has to offer. This is true for us and every other company that serves the collision industry.” Sixteen employers were onsite to recruit at the Career Fair, including Hendrick Automotive Group, Caliber Collision, Service King, Hertz, Erie Insurance and more. Students had the opportunity to meet with these employers and tour Axalta’s Customer Experience Center, a state-of the art automotive refinish training facility located on the campus of Hendrick Motorsports. 56

animal collisions dropped slightly to 1.33 million between July 1, 2017 and June 30, 2018, compared with 1.34 million for the same period the previous year. “Deer-related accidents remain a tremendous risk, particularly in southern, midwestern and rural areas,” said Dean Fisher, chief operating officer for CARSTAR. “Deer-related accidents can be costly—nearly 70 percent of CARSTAR franchise partners estimate that the average cost of a deer-related collision repair is between $2,500 and $4,999, while many repairs are between $5,000 and $10,000. Most deer-related accidents involve front-end damage that can elevate the repair costs because you have to replace windshields, bumpers, front headlamps and all related advanced safety technology housed in these areas.” Drive Defensively to Avoid Deer Dangers This year, some 1.33 million drivers will hit a deer, and November is the peak month for deer-related accidents. But drivers can avoid an accident with a buck by following some smart driving tips this fall and winter.

Early morning and dusk are the worst times for deer accidents, as visibility is limited and deer are frequently on the move. It is important to drive defensively and anticipate the potential for deer in the road. The auto experts at CARSTAR, who repair thousands of vehicles each year from deer-related accidents, offer the following tips to reduce the deer danger: • Use extra caution at dawn and dusk as well as around golf courses, fields and wooded areas. • Remember that deer travel in packs—if you spot one, there are likely more behind it.

• Do not swerve to avoid striking a deer, as that increases the risk of hitting another vehicle or losing control of the car.

• If there is no opposing traffic, use high beams at night to better illuminate deer. • Do not rely on devices such as deer whistles to scare off animals. •

If a deer remains on the high-

way after you strike it, report the incident to the game commission or a local law enforcement agency, as it can pose a danger to other motorists. If the deer is still alive, do not go near it because a wild animal with sharp hooves can inflict injuries. • If an accident with a deer does occur, it pays to be protected. Many drivers do not realize that carrying only collision coverage does not cover damage from a deer accident, leaving them with a damaged vehicle and a large repair bill. To cover any potential damage, drivers should carry comprehensive insurance that covers such collisions. For those who drive an older vehicle and feel their cars aren’t worth the cost of the insurance, it is smart to keep an “accident fund” if something does occur.

If a driver ends up stranded with a damaged vehicle after a deer collision, they can always call 1-800CARSTAR. CARSTAR will send a tow truck, call the driver’s insurance company, arrange for a rental car and repair the vehicle. For more information and store locations, visit www .CARSTAR.com.

Continued from Page 18

2018 ASTE

industry, they were recognized for being a longtime supporter of IGONC and its events.” Underwood was selected as the IGONC Member of the Year for 2018. “The IGONC Member of the Year is the highest achievement awarded by IGONC. It is in memory of AC Britain, who was the first executive director of IGONC. Underwood is relatively new to IGONC, but he has the spirit and drive needed for our next generation of members. He helped organize a regional meeting this year in Boone and was responsible for bringing two new vendors to the ASTE trade show,” Pulverenti shared. For more information on the 2018 ASTE, visit www.asteshow.com

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Fake Recall Notices Get Car Dealers in Trouble With FTC by David A. Wood, CarComplaints.com

We thank CarComplaints.com for reprint permission.

Fake recall notices have caused DCarea car dealers to settle a Federal Trade Commission (FTC) complaint that accuses the dealerships of mailing more than 21,000 fake “urgent recall” notices to consumers in 2015 and 2017. According to the FTC, the dealers and a marketing firm agreed to settle the deceptive advertising charges that allege the notices were mailed to convince car owners to visit the dealerships. The car dealers do business as Passport Toyota, Passport Nissan of Alexandria, VA, and Passport Nissan of Marlow Heights, MD. The marketing company, Temecula Equity Group, LLC, does business as Overflowworks.com and is located in California. Considering the huge number of vehicles on the roads that have open (unrepaired) recalls, the government has taken measures to combat fake recall notices sent by companies to convince owners to visit dealerships.

The National Highway Traffic Safety Administration (NHTSA) estimates 30 percent of drivers completely ignore recall notices, even if the safety defects could cost lives. In 2014, NHTSA announced that all manufacturers must use distinctive labels for recall mailings to consumers, using white, uppercase letters against a red background.

According to NHTSA, the recall label is intended to “help protect consumers from misleading sales and marketing materials that mimic, in their wording and presentation, legitimate safety recall alerts from manufacturers that can lead owners to purchase costly products and services that have no connection to a le-

gitimate safety recall.” However, the FTC says the DCarea car dealers sent fake recall notices that used the same color scheme as official notices sent by automakers. The government says the vast majority of vehicles covered by the fake recall notices did not have open recalls, even though the notices said, “URGENT RECALL NOTICE” in large, boldfaced uppercase letters. On the reverse side, it said, “VEHICLE RECALL NOTICE” and “WARNING” in large red and black boldfaced, uppercase letters on a white background. The FTC complaint alleges Passport first sent about 7,000 Toyota fake recall notices in 2015, and then the dealers sent about 14,000 notices to Nissan customers in June 2017. Those fake notices were mailed even though numerous complaints were made after the first notices were sent in 2015. The government says hundreds of vehicle owners contacted the Passport dealerships and were told the cars needed to be brought to the dealers to learn whether the cars had

unrepaired recalls. In addition, the FTC says some of those car owners paid for repairs that had nothing to do with recalls. While the FTC alleges the notices were mailed to increase business at the service departments of the dealerships, Passport claims the fake recall notices were mailed in an attempt to “correct unrepaired vehicles subject to a recall and it was not our intention to mislead anyone.” But although Passport says it mailed the notices to “correct unrepaired vehicles subject to a recall,” the company also says “open recalls were unavailable to Passport or other dealerships.” Passport further says the language used on the fake recall notices “was not created by Passport—it was originated by a California company unrelated to our business.” By agreeing to settle the allegations, Passport and Temecula Equity Group are “permanently prohibited from misrepresenting, expressly or by implication: 1) whether any motor vehicle is subject to an open safety recall or service campaign, or 2) certain other material facts about motor vehicles.” Continued from Page 50

WINner’s Mindset

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everything in your life. Failure is a necessary part of the success process. You can’t have real success in your life unless you fail.” Concluding the webinar, Luehr shared a poem called “Our Deepest Fear,” written by Marianne Williamson. It begins, “Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness, that most frightens us.” Luehr reiterated, “Right now is the best time in history to be in the collision repair business!” before opening for questions from attendees. For more information on WIN, visit womensindustrynetwork.com. For more information on Luehr and Elite Body Shop Solutions, visit elitebody shopsolutions.com

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autobodynews.com / DECEMBER 2018 AUTOBODY NEWS

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AutoNation Embarks on New Parts Path by Gary Ledoux

The current dynamic for the collision repair industry is that parts have always been sourced from separate OEM & aftermarket providers. As a result of growing utilization of aftermarket parts, franchise dealers may have seen erosion of their OEM parts sales. “When an OE dealer’s parts department receives a collision parts order from a body shop, they only get 50 to 60 percent of what that car needs for replacement parts. The rest of the order, and the parts profit it generates, goes to the aftermarket or salvage,” said Tom Calloway, Vice President of Customer Care and Corporate Operations for AutoNation in a recent interview with Autobody News. AutoNation wanted to capture a greater share of the wholesale collision parts market, so it embarked with a new vision and business model to serve the collision repair industry. The goal: leverage its scale and expertise to deepen its market share by complementing the current OEM collision parts offering with aftermarket parts as well.

So in 2017, AutoNation set off to build the structure for its new offering – from sourcing and transporting parts from overseas to expanding its current wholesale distribution network to serve its cus-

Tom Calloway, Vice President of Customer Care and Corporate Operations for AutoNation

tomers. In keeping with the moniker of America’s largest automotive retailer, AutoNation continued to put

AutoNation Launches New Theme Vehicle for Breast Cancer Awareness by Gary Ledoux

Every two minutes, a woman is diagnosed with breast cancer. AutoNation has a deep commitment through its Drive Pink initiative, and is committed to drive out cancer, through awareness and critical research. AutoNation is a proud supporter of the Breast Cancer Re-

Robin Adkison, also known as “Robin1000,” a street artisan turned custom vehicle painter, stands with this year’s AutoNation theme truck.

search Foundation and other cancer-related charities. Since 2013, AutoNation has raised and donated over $16 million to fund cancer research and treatment from coast to 58

coast. This year’s Drive Pink themed vehicle is a new Toyota 4Runner painted with … of all things … spray cans. Debuting such a vehicle at SEMA seems almost odd in a world of high-quality paint and exotic application processes. But you can’t argue with the results. Texasbased Robin Adkison, better known in the world of street artisans as “Robin1000,” was busy painting street murals on sidewalks and on the sides of buildings when he was selected by celebrity and vehicle builder/designer Jeff Allen with Flat 12 Gallery to paint AutoNation’s themed vehicle. “I’ve been painting and drawing since I was a little kid,” said Adkison. “I’ve used pencils, oil paints on canvas and spray cans on brick and concrete, but this was the first time using ‘rattle-cans’ on steel.” The vehicle was completely stripped of its finish, then, over the course of three days, Adkison went to town with spray cans. “[There’s] a fine line between graffiti and art,” Adkison said. “This is definitely art.”

DECEMBER 2018 AUTOBODY NEWS / autobodynews.com

its scale to work in expanding its parts network. “With over 300 locations nationwide, representing most major brands, we were well positioned to take the business to the next level when we expanded both our distribution network and our parts offering,” Calloway said. In early 2018, AutoNation launched its expanded aftermarket parts distribution network in Washington, Northern California, Phoenix, Memphis, Dallas-Fort Worth and Orlando, with more markets scheduled for 2019. They also integrated into the industry’s top electronic ordering platforms. Along with the two-pronged offering of OE and aftermarket parts, AutoNation is supporting the new offering with single, consolidated deliveries. Although there are myriad logistics playing out behind the scenes, they will all be invisible to the shop ordering the parts. All they will see is the AutoNation truck delivering both their OE and aftermarket parts. Calloway explained that this will have a positive effect on a shop’s cycle time and margin improvement. Calloway commented that the

expanded OE/aftermarket parts solution has also helped its own collision network become more efficient. “One of our biggest customers to benefit from this is our own network of 80+ collision shops.” How has the industry embraced the new solution? Calloway explained that its own AutoNation collision centers, as well as current customers, like the new consolidated concept of OE and aftermarket, and early adoption is already demonstrating tangible benefits. Customers now reap the benefit of a new solution in the marketplace, supported by a backbone of experienced parts experts providing worldclass service. Calloway explained AutoNation’s reason for making this pioneering change. “With the marriage of OE and now aftermarket parts, we feel like we’ve created a winning combination for our customers, from MSOs to independents. By offering this new solution in the market, our network is creating efficiencies for doing business and enabling customers to lower costs. When they know ‘One Call Does it All,’ that’s a powerful partnership.”

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Number of Flooded Cars on the Road Jumps 47% Over Past Year That figure is a 47 percent increase— more than 150,000 additional cars— from 2017, when hurricanes Harvey and Irma devastated the Gulf Coast and Southeast. With two major hurricanes impacting the U.S. this year, the number of flooded cars cleaned up and resold will likely grow. CARFAX estimates that at least 107,000 vehicles were damaged during Hurricane Florence. To help protect consumers, CARFAX is letting them check for reported flood damage free of charge at CARFAX.com/flood. Vehicles reported as flood-damaged by a state’s Department of Motor Vehicles (DMV), Canadian province, insurance companies and more are in use in every state. These 10 states have the most flood-damaged vehicles (percent increase over 2017): 1. 2. 3. 4. 5. 6. 7. 8. 9.

Texas – 168,600 (230%) Florida – 34,400 (79%) Pennsylvania – 22,100 (11%) Kentucky – 21,700 (36%) Louisiana – 16,800 (-42%) Illinois – 15,500 (3%) South Carolina – 13,500 (4%) North Carolina – 12,400 (-5%) New Jersey – 11,900 (5%)

10. Michigan – 11,600 (6%)

The top five metropolitan areas with the most previously flooded cars back in use are Houston, New York City, Miami, Philadelphia and Dallas. “Our data suggests that severe weather events, especially historic ones like Harvey and Irma, have a nationwide impact. This surge in flood cars also underscores the importance of identifying these waterlogged wrecks before it’s too late,” said Dick Raines, president of CARFAX. “Flood cars can resurface no matter where you live, so we urge car buyers and sellers to use the resources available that will best protect them. Vigilance is key; start with a vehicle history report, mechanic’s inspection and thorough test drive to help prevent con men from ripping you off.” There are safety, health and financial concerns about flooded cars. Water can compromise the mechanical, electrical and safety systems of a vehicle, turning them into ticking time bombs. Hazardous mold and bacteria may develop in the soft parts of the car. Additionally, unsuspecting buyers often pay thousands more than a flooded car is worth.

AWAF Workshop Focuses on Finance, Accounting for the Non-Financial Manager by Chasidy Rae Sisk

On Oct. 19, the Automotive Women’s Alliance Foundation (AWAF) hosted its Fall 2018 Professional Development Workshop at the VisTaTech Center at Schoolcraft College in Livonia, MI.

Titled “Finance and Accounting for the Non-Financial Manager,” the four-hour workshop was taught by Jean Stenger, CPA and senior manager at DKSS CPAs and Advisors as well as treasurer for AWAF. Stenger’s educational, interactive and fun workshop focused on understanding the fundamentals of accounting and finance. She discussed how to read and understand critical financial reports as well as how to spot red flags and how to 60

use these reports to answer key questions about investments, business growth and more. Stenger also taught attendees to budget to add value, covered KPIs and lectured on projecting cash flow. Stenger stressed, “Own your financial statements. Know your number, talk your numbers and use your numbers to define your future—both professionally and personally. Become confident in your knowledge of the numbers, and never be afraid to ask questions!” Attendees included small business owners, professionals and managers in engineering, sales, program management, finance, purchasing, education and training. Participants agreed that the information Stenger shared was valuable, and interest was expressed in scheduling a fullday workshop on this topic.

For more information about AWAF and its events, visit awafoundation .org.

www.autobodynews.com

DECEMBER 2018 AUTOBODY NEWS / autobodynews.com

CREF Receives $100,000 Donation From Allstate Insurance Allstate Insurance Company has continued its strong commitment to the future of the collision industry by contributing $100,000 to the Collision Repair Education Foundation.

Industry donations such as Allstate’s assist the Foundation in its ability to support high school and college collision school programs, instructors and students nationwide. “Collision repair education is exceptionally important in preparing the next generation of technicians,” said Allstate Claims Vice President Dave Prejna. “Contributing to the Collision Repair Education Foundation is an investment in the future and something we take great pride in at Allstate.” “Allstate’s continued support

has allowed the Collision Repair Education Foundation to support collision schools that graduate students who are productive, efficient and capable staff members [from] day one on the job within the collision industry,” said Clark Plucinski, executive director of the Collision Repair Education Foundation. “As repair facilities are seeking the next generation of technicians who will be safely repairing consumers’ collision-damaged vehicles, Allstate’s support assists in our ability to help high school and post-secondary collision instructors provide a quality technical education to their students.”

Industry members interested in joining the Collision Repair Education Foundation’s roster of supporters to assist high school and post-secondary collision school programs and students should contact Brandon Eckenrode, the Education Foundation’s director of development, at (312) 2310258 or Brandon.Eckenrode@edfoundation.org.


WIN Announces Opening of Most Influential Women Nominations

The Women’s Industry Network (WIN®) recently announced that nominations for the prestigious Most Influential Women (MIW) awards will open on Thursday, Nov. 1, 2018 and be accepted through Monday, Jan. 14, 2019. The winners will be recognized at a gala during the 2019 WIN Educational Conference being held May 6–8, 2019 in Fort Lauderdale, FL. Nominations of women working in any segment of the collision repair industry across the United States and Canada are welcomed. “I’d like to encourage you to nominate the women in our industry who you know are making a positive difference in their companies, communities and/or the industry at large,” requested Cheryl Boswell, who co-chairs WIN’s MIW Committee and was also named a MIW in 2015. “The MIW nomination process is a great way to recognize deserving women and let them know they are making a difference.” Since its inception in 1999, the Most Influential Women program has recognized more than 90

women who have enriched the collision repair industry with their leadership, vision and commitment to excellence. WIN acquired stewardship of the Most Influential Women program in 2013 and continues to evolve the program to align with WIN’s mission of “driving the future of collision repair by attracting, developing and advancing women.” “It is important to recognize women for their leadership. This award focuses on four areas: industry influence, professional accomplishments, mentoring and support for others in the collision repair industry, and going beyond the requirements of their professional lives to give back to their communities,” commented Michelle Sullivan, WIN chair and 2016 MIW honoree. Additional information about the MIW program and the 2019 nomination form can be found on the WIN website at http://www .womensindustrynetwork.com.

www.autobodynews.com

CREF Fundraiser Co-Hosted by PPG Raises $130,000 The annual Collision Repair Education Foundation industry fundraiser, co-hosted by the automotive refinish business unit of PPG, raised $130,000 through the support of attendees and sponsors.

Sponsors and participants enjoyed a day of golf at the Trophy Club of Apalachee in Dacula, GA, on August 6, 2018. The funds raised from this event will go toward supporting scholarships and grants for collision schools and students. “PPG is proud to support an event of this caliber,” said Tom Wolf, PPG director of business development, automotive refinish. “It’s an honor to bring together industry professionals from around the country and to assist the foundation in making sure that collision repair students are well-prepared for entering our industry. With the Education Foundation staff working towards another great event

next year, I encourage industry members to participate through a sponsorship, by attending or by donating items for the raffle table and silent auction. This is a wonderful and important investment in our industry’s future.” “Through the generous support of sponsors, attendees and volunteers from the Atlanta I-CAR committee, we had another great golf fundraiser event that will increase the Education Foundation’s ability to support high school and college collision school programs. We must extend a special thanks to the automotive refinish professionals at PPG for their continued co-sponsorship of the event,” said CREF Director of Development Brandon Eckenrode. Next year’s event will take place July 23 in Indianapolis, IN, in conjunction with the events surrounding the Collision Industry Conference. Individuals and companies interested in getting involved with next year’s fundraiser should contact Eckenrode at (312) 231-0258 or Brandon.Eckenrode@ed-foundation .org.

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by Jay Traugott, CarBuzz

If you own a late-model Honda Civic or Accord, or any relatively new Honda or Acura model, you might want to pay attention to this. Perhaps it’s already too late for some. According to USA Today, criminals across the U.S. have been stealing airbags out of late-model Hondas to resell on the black market, be it online or to shady local repair shops. Both the driver and front passenger airbags are being targeted. Law enforcement agencies in cities such as New York, Miami and the Washington DC area have noticed an increased number of Honda airbag thefts lately. However, this is also a nationwide issue. Unfortunately, this type of theft is not easy to track because both the FBI and the National Highway Traffic Safety Administration don’t track airbag theft. The National Insurance Crime Bureau estimates about 50,000 airbags are stolen every year. However, the NICB doesn’t track specific trends, such as Hondas specifically being targeted for their airbags, so it’s

unable to provide an answer as to why this automaker is a higher risk. In Miami-Dade County, for example, thieves stole 875 airbags last year. In 2013, only 13 airbags were stolen. In the Virginia suburbs around DC, thieves recently smashed the windows of 10 Hondas at an apart-

ment building complex for the specific purpose of stealing the airbags. Turns out, some Honda airbags can go for as much as $500 a pop at chop shops. “Because of their portability, airbags can be easily removed and installed as ‘new’ by unscrupulous collision repair shops,” the NICB said. “These dishonest operators will then charge the vehicle owner or their insurer the full price for the replacement, thus committing insurance fraud.” We thank CarBuzz for reprint permission.

autobodynews.com / DECEMBER 2018 AUTOBODY NEWS

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