Autobody News May 2014 Southwestern Edition

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Southwestern Edition

Texas Oklahoma Louisiana New Mexico

32

YEARS

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At CIC, Ford Outlines its Strategy to Help Repairers Prepare for the New F-150 by John Yoswick

Ford Motor Company representatives at the Collision Industry Conference (CIC) held in Portland, Ore., in April provided more information not only about the automaker’s 2015 F-150 pick-up, but also about the “Ford National Body Shop Network,” through which Ford hopes to promote both dealership and independent shops to owners of Ford vehicles needing collision repair. Paul Massie, collision product marketing manager for Ford, acknowledged that his company may have

fallen behind other automakers in developing a certification or recognition program for independent shops. But it also is clearly the new F-150, an aluminum-intensive vehicle expected to hit showrooms in November, that is behind Ford’s push to increase the Paul Massie number of body shops equipped and trained to work on aluminum. The F-150 has been the best-selling vehicle in the country for See Ford’s Plan, Page 22

Louisiana Collision Industry Association Affiliates with Society of Collision Repair Specialists

if it had a life of its own,” said LaCIA executive director Alysia Hanks, who was instrumental in organizing the formation of the group. “Hundreds of collision repairers turned out in December 2013, for a meeting to gauge initial interest, which was far beyond what we were expecting. Repairers understood the importance of standing together for our future survival. The response has been great to see.” SCRS played a pivotal role in aiding LaCIA in its infancy, offering guidance and resources that helped it get up-and-running. “SCRS leadership was very generSee LaCIA, Page 18

Change Service Requested

P.O. BOX 1516, CARLSBAD, CA 92018

The Louisiana Collision Industry Association (LaCIA) was established in January 2014, and is now the first Society of Collision Repair Specialists (SCRS) affiliate association in the state of Louisiana. Though recently formed, the LaCIA has already captured the interest of Louisiana collision repairers seeking to change the collision repair industry for the better and boasts 70 members. “Toward the end of last year we spread the message through a grassroots word of mouth and email campaign that we were thinking of forming an association, and the news spread as

VOL. 32 ISSUE 5 MAY 2014

Indiana Autobody Association and Indiana Shop Owners File Suit to Block Tortious Interference The Indiana Autobody Association (IABA) along with fourteen Indiana Collision Repair Shops filed legal action against twelve Property and Casualty Insurance Companies and their subsidiaries on April 2, 2014. The suit seeks unspecified financial damages and names 27 insurers including Illinois-based State Farm, which has the largest market share in the state at about 25 percent. Others with large market share inTony Passwater clude Ohio-based Progressive Insurance and locally based Indiana Farmers Mutual Insurance Co.

The suit accuses the insurers of “engaging in an ongoing, concerted and intentional course of action and conduct with State Farm acting as the spearhead to improperly and illegally control and depress the automobile damage repair costs.” In addition, “The insurance companies (“Insurers”) are improperly intruding upon the relationship between the Shops and consumers, and placing the driving public at harm by their practices.” As it pertains to DRP shops, the suit also accuses the insurers of “engaging in an ongoing pattern and practice of coercion and implied threats to

Service King Collision Repair Centers has reached an agreement to acquire Sterling Collision Centers and its 62 stores. This acquisition will bring the total number of Service King locations to more than 170 across 20 states, reinforcing its position as one of the country’s largest multi-shop operators (MSOs). Sterling Collision Centers was founded in 1997 with the goal of redefining the collision repair experience. Purchased by Allstate in 2001, the company quickly grew to 1,200 employees with more than 60 collision repair facilities across 16 states. Sterling Collision Centers is the largest of the so-called tied shops’ chains. Service King is a leader in the collision repair industry, having offered customers a superior service experience for more than 38 years. After being established as an industry leader in Texas, Service King began expanding its footprint in 2012 to include Arizona, Tennessee, Arkansas, Mississippi, Nevada, and Oklahoma. This acquisition of Sterling Collision Centers marks a key milestone for Service King and its more than 2,600 teammates while undoubtedly changing the MSO landscape. “This venture of two well-established and reputable brands will result in many opportunities for Service King and our ever-growing team. We wel-

come our new teammates to the Service King family and are excited about what the future holds for us all,” said Chris Abraham, CEO of Service King. “We are honored and appreciative of the profound opportunity this acquisition creates for the collision repair industry. We will continue to provide all of our customers and business partners with the consistent level of service that they have come to expect from Service King.” “Today marks the culmination of many months of hard work, preparation, and planning,” said Jeff McFadden, president of Service King. “We have positioned ourselves to continue to deliver on the promise of the Service King brand.” Service King’s acquisition of Sterling Collision Centers is expected to close in the second quarter of 2014. For more information on Service King, visit www.serviceking.com. Service King is one of the largest regional MSOs of collision repair facilities in the country, dedicated to offering customers an overall superior service experience. Founded more than 38 years ago in Dallas, TX, Service King is a leader in the collision repair industry currently serving customers at 111 locations across Texas, Arizona, Tennessee, Arkansas, Mississippi, Nevada, and Oklahoma.

See Tortious Interference?, Page 22

Service King Acquiring MSO Sterling Collision Ctrs

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