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Vol. 37 / Issue 5 / May 2019

Sponsor, Repairer: Texas Insurer-OEM Procedure Bill Needed to Give TDI Power

APCIA: OEM Procedure Bill Lacks Provision Preventing Body Shops Committing Fraud in Texas

by John Huetter, RepairerDrivenNews.com

The bill’s sponsor and the head of the Auto Body Association of Texas told a Texas House Insurance Committee on April 9, that House Bill 1348 was necessary following what they said was the Texas Department of Insurance’s view that it was powerless to check certain insurer behavior. HB 1348 will hold insurers to OEM repair procedures. It declares that a carrier can’t “disregard a repair operation or cost identified by an estimating system, including the system’s procedural pages and any repair,

process, or procedure recommended by the original equipment manufacturer of a part or product.” In addition to demanding insurers acknowledge repair procedure, the bill defines “(r)easonable and necessary amount” as “the amount determined by the original equipment manufacturer’s manufacturer and estimating systems required to repair a vehicle to the condition before the covered damage to the vehicle occurred.” It also defines “like kind and quality” for aftermarket parts and adSee TDI Bill Page 4

Body Shop Owners Can Sell Their Short Pays to StopShortPays.com by Chasidy Rae Sisk

The difficulty of obtaining full payment for a repair when a collision repair shop’s invoice differs from the insurer’s estimate is a common complaint among shop owners. Texas-based attorney Leroy Scott noticed the prevalence of this concern among the shops he represents. Deciding to do something about it, he established StopShort Pays.com. Scott shared, “At my law firm, I kept running into these situations where it seemed like insurance com-

panies were underpaying shops, and when I reached out to some shops I represent, I realized it’s a huge problem. Then I had to figure out which angle to approach it from, and that’s when I started StopShortPays.com in earnest in October 2018.” Scott recognized that many shops were accepting the payment dictated by the insurer’s estimate and were not pursuing short pays for the full rate of their work because the legal process was so difficult and time-consuming, especially for those who are unfamiliar with the system. See Short Pays, Page 28

An APCIA representative on April 9 testified against a Texas bill compelling insurers to pay for the cost of repairs done to automaker specifications, arguing that the measure lacked confirmation body shops used them and suggesting some repairers might lie about it. American Property Casualty Insurance Association state government relations Vice President Joe Woods’ questionable testimony opposing House Bill 1348 also described adjusters as the line of defense for repair quality. HB 1348 will hold insurers to

OEM repair procedures. It declares that a carrier can’t “disregard a repair operation or cost identified by an estimating system, including the system’s procedural pages and any repair, process, or procedure recommended by the original equipment manufacturer of a part or product.” In addition to demanding insurers acknowledge repair procedure, the bill defines “(r)easonable and necessary amount” as “the amount determined by the original equipment manufacturer’s manufacturer and estimating systems required to repair a vehicle to the condition before the covered damage to the vehicle ocSee APCIA Opposition Page 4

Truck Topics is a new series of articles by Gary Ledoux to appear periodically in Autobody News covering the collision side of the heavy-duty truck market, see pp. 42 & 56

New Car Technology Benefits Drivers, But How Does It Affect Body Shops? by Ed Attanasio

I was talking to a group of body shop owners the other day at a trade association meeting, and one said, “I’m not in the repair business anymore; I’m in the computer business! “These new cars are great for the consumers, but fixing them is getting tougher and more expensive.” In the end, diagnostics have quickly become a huge part of the collision repair process and a reality that shops need to accept. The ones that embrace the technology and become adept at using it will get more work while stragglers will eventually lose their spot in line. To find out about the present and future of automotive diagnostics, we

interviewed one of the country’s leading experts on the subject. Michael Flink, national trainer/commercial product sales manager, has more than four decades of aftermarket experience. He has spent the last seven years with Autel, one of the world’s leading manufacturers and suppliers of professional diagnostic tools, equipment and accessories in the automotive aftermarket.

pair?

When did diagnostics become such a big part of collision re-

In 1982, diagnostics really took off, even though the very first computer-controlled system hit

See New Car Technology, Page 52

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People With Damaged Homes, Vehicles Urged To File Claims Quickly After Blizzard in CO

CONTENTS

by Shaul Turner, KDVR/FOX31

REGIONAL

COLUMNISTS

7 Arrested in Insurance Fraud Scheme

Anderson - Industry Misses 2 Important

APCIA: OEM Procedure Bill Lacks Provision Preventing Body Shops Committing Fraud in Texas. . . . . . . . . . . . . . . . . . . . . . . . 1 Auto Repair Shops Join to Repair New Braunfels, TX, Coach’s Truck for Free . . . . . . . . . . . . . . 14 Body Shop Owners Can Sell Their Short Pays to Lawyer-Owned StopShortPays.com. . . . . . 1 Burl’s Collision Becomes Ford-Certified, Earns Medallion Status Through VeriFacts. . . . . . . 16 CO Automotive Recyclers Debuts Rocky Mountain Summit & Expo . . . . . . . . . . . . . . . 6 Fort Collins, CO, Couple Still Waiting for Fix 3 Years After Vehicle’s Airbag Recall . . . . . . 17 GEICO Files Lawsuit Against Auto Glass Shop Suspected of Fraud . . . . . . . . . . . . . . 60

Aspects of John Eagle Collision Case . . . . . 36 Attanasio - From Rock Star to Crash Star . . . . 40 Ledoux - The 1970s - Part 1 - The Collision Industry Starts to Mature . . . . . . . . . . . . . . 34 Ledoux - Truck Topics 1: Heavy Duty Events Address Collision Issues . . . . . . . . . . . . . . . 42 Ledoux - Truck Topics 2: Truck Vs. Auto Collision Repair – An Overview . . . . . . . . . . 56 Phillips - Best Practices When Interpreting & Documenting Scan Data, Trouble Codes & Calibrations. . . . . . . . . . . . . . . . . . 44 Sisk - ASA’s ‘Washington Watch’ Webinar Features Industry Association Leaders . . . . 48 Yoswick - Panel Discusses Strategies for Shops Dealing with ADAS with Sublet Vendors, Insurers . . . . . . . . . . . . . . . . . . . . 30

Gerber Acquires Repair Center in Bullhead City, AZ . . . . . . . . . . . . . . . . . . . . . . 8 Logan, UT, Collision Repair Shop Worker

NATIONAL ‘Who Pays for What?’ Surveys Find Growth

Turns Heads With His Studebaker

in Shops Billing (& Being Paid) for

Champion Starlight . . . . . . . . . . . . . . . . . . . 11

Masking for Priming . . . . . . . . . . . . . . . . . . 20

Lone Star Collision Center in Paris, TX, Works for the Customer, Not Insurance Company . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Maaco New Braunfels, TX, Earns Gold Class Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Marcia Seebachan Joins Shops to Back Insurer-OEM Procedure Legislation in Texas . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 NABC Recycled Rides Donates 4 Refurbished Vehicles to Deserving Dallas, TX, Residents . . 8 Overturned Semi-Trucks Taken Into Towing Lots, Repair Shops After Wind Storm in TX. . . . . . 12 People With Damaged Homes, Vehicles Urged

Auto Industry: Blocking Trade With Mexico Would Be Disruptive . . . . . . . . . . . . . . . . . . 62 BMW Recalls 183,000 Vehicles for Takata Airbag Inflators . . . . . . . . . . . . . . . . . . . . . . 58 CARSTAR Conference To Be Held July 10–12 . . 23 Color Match 101: A Visit to Axalta’s Customer Experience Center. . . . . . . . . . . . . . . . . . . . 54 Honda, Acura Recall 1.1 Million Vehicles Over Takata Airbags . . . . . . . . . . . . . . . . . . 29 House Republicans Push for Action on Self-Driving Vehicles Bill . . . . . . . . . . . . . . . 61 I-CAR Contributes $225,000 to CREF . . . . . . . 53 KSI Donates $250,000+ to Support

To File Claims Quickly After Blizzard in CO. . . 3

CREF’s Mission . . . . . . . . . . . . . . . . . . . . . . 12

Southwest Association Events - May 2019 . . . . 8

Legislation To Enhance Cybersecurity Training . 38

Sponsor, Repairer: Texas Insurer-OEM Procedure

Modules Added to Estimatescrubber.Com . . . . 28

Bill Needed to Give TDI Power . . . . . . . . . . . . 1 Travis County, TX, Body Shop Owner Sentenced . . . . . . . . . . . . . . . . . . . . . . . . . 11 Typical LA Driver Overpays for Car Insurance by $1,159 a Year, Report Says. . . . . . . . . . . 20

New Car Technology Benefits Drivers, But How Does It Affect Body Shops? . . . . . . . . . . 1 Payscape, SCRS Partner on Member Benefit . . 60 Speak at CIECA CONNEX 2019 in Charlottesville, VA . . . . . . . . . . . . . . . . . . . . 58

INDEX OF ADVERTISERS

Involving Staged New Orleans Crashes . . . . 10

Colorado’s March blizzard caused plenty of damage. There were hundreds of car crashes and reports of trees falling onto homes. AAA of Colorado told the FOX31 Problem Solvers that the key to getting past post-storm headaches is to act fast. “Call your agent and take photos of damage,” said AAA spokesperson Skylar McKinley. People who need a rental car should request one quickly. Moreover, keep in mind many auto re-

pair shops will be backed up due to the large number of crashes. McKinley warned that waiting to file a claim later—in case your home or car is damaged again during the upcoming spring storm season—may get you in trouble. “Waiting for your home or auto to collect a lot of damage over time instead of filing one big claim at once is actually insurance fraud.” McKinley said. “That early damage will not be covered, and insurance adjusters know how to look for that.” We thank KDVR/FOX31 for reprint permission.

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 Texas, Oklahoma, Louisiana, New Mexico, Arkansas, Colorado, Arizona, Utah 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. ©2019 Adamantine Media LLC.

Accuvision-3D. . . . . . . . . . . . . . . . . . . . . . 8 Alloy Wheel Repair Specialists, LLC . . . . . 34 Audi South Austin . . . . . . . . . . . . . . . . . . 11 Audi Wholesale Parts Dealers . . . . . . . . . 55 AutobodyLaw.com. . . . . . . . . . . . . . . . . . 36 AutoNation Chevrolet. . . . . . . . . . . . . . . . 50 AutoNation Chrysler-Dodge-JeepRam NRH . . . . . . . . . . . . . . . . . . . . . . 30 AutoNation Chrysler-Jeep-Dodge-Ram of North Phoenix . . . . . . . . . . . . . . . . . 10 Axalta Coating Systems . . . . . . . . . . . . 7, 17 Big Mike Naughton Ford . . . . . . . . . . . . . 25 Blowtherm USA . . . . . . . . . . . . . . . . . . . . 31 BMW Wholesale Parts Dealers . . . . . . . . . 57 Bob Howard PDC. . . . . . . . . . . . . . . . . . . 49 Car-Part.com. . . . . . . . . . . . . . . . . . . . . . 29 Chevyland . . . . . . . . . . . . . . . . . . . . . . . . 54 Christopher’s Dodge World . . . . . . . . . . . 25 Classic BMW . . . . . . . . . . . . . . . . . . . . . . . 6 Classifieds. . . . . . . . . . . . . . . . . . . . . . . . 62 Courtesy Chevrolet-Isuzu. . . . . . . . . . . . . 53 Covert-Chrysler-Dodge-Jeep-Ram. . . . . . 22 Dallas Dodge. . . . . . . . . . . . . . . . . . . . . . 64 Dent Fix Equipment . . . . . . . . . . . . . . . . . 43 Dent Magic Tools. . . . . . . . . . . . . . . . . . . 20 Diamond Standard Parts . . . . . . . . . . . . . 45 Don Carlton Auto Group . . . . . . . . . . . . . . 48 Eckler’s Automotive . . . . . . . . . . . . . . . . . 39 ECS Automotive Concepts . . . . . . . . . . . . 16 Emich Chevrolet . . . . . . . . . . . . . . . . . . . 25 Emich Volkswagen . . . . . . . . . . . . . . . . . 25 Equalizer Industries, Inc. . . . . . . . . . . . . . 46 Finnegan Chrysler-Jeep-Dodge . . . . . . . . . 2 Fisher Acura . . . . . . . . . . . . . . . . . . . . . . 25 Fisher Honda . . . . . . . . . . . . . . . . . . . . . . 25 Flatirons Subaru . . . . . . . . . . . . . . . . . 9, 25

Ford Wholesale Parts Dealers . . . . . . . . . 52 GM Wholesale Parts Dealers . . . . . . . . . . 59 GYS Welding USA . . . . . . . . . . . . . . . . . . 38 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . . 32-33 Hyundai Wholesale Parts Dealers. . . . . . . 61 Kia Motors Wholesale Parts Dealers. . . . . 51 Launch Tech USA. . . . . . . . . . . . . . . . . . . 63 Malco . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Mercedes-Benz . . . . . . . . . . . . . . . . . 13, 21 Mercedes-Benz of Littleton . . . . . . . . . . . 25 Mercedes-Benz Wholesale Parts Dealers . 60 Mitsubishi Wholesale Parts Dealers . . . . . 61 MOPAR Wholesale Parts Dealers . . . . . . . 37 North Freeway Hyundai . . . . . . . . . . . . . . 38 Part of the Club . . . . . . . . . . . . . . . . . . . . 25 Peak Kia . . . . . . . . . . . . . . . . . . . . . . . . . 25 PPG Refinish . . . . . . . . . . . . . . . . . . . . . . . 5 Prima Welds, Inc . . . . . . . . . . . . . . . . . . . 23 Ray Huffines Chevrolet . . . . . . . . . . . . . . 41 SATA Dan-Am Company. . . . . . . . . . . 18-19 Scoggin-Dickey Parts Center . . . . . . . 26-27 Shortline Mitsubishi. . . . . . . . . . . . . . . . . 25 South Pointe Chrysler-Jeep-Dodge . . . . . 28 Spanesi Americas . . . . . . . . . . . . . . . . . . 40 Subaru of Little Rock . . . . . . . . . . . . . . . . 47 Subaru Wholesale Parts Dealers . . . . . . . 56 Symach. . . . . . . . . . . . . . . . . . . . . . . . . . 14 Toyota of Laredo . . . . . . . . . . . . . . . . . . . 44 Toyota Wholesale Parts Dealers . . . . . . . . 58 U.S. Chemical & Plastics . . . . . . . . . . . . . 15 Volkswagen Wholesale Parts Dealers. . . . 60 Watson Chevrolet . . . . . . . . . . . . . . . . . . 35 YesterWreck . . . . . . . . . . . . . . . . . . . . . . 24 Young Chevrolet . . . . . . . . . . . . . . . . . . . 42

Autobody News Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

autobodynews.com / MAY 2019 AUTOBODY NEWS

Continued from Cover

TDI Bill

dresses steering and questionable prevailing rate surveys. Bill sponsor state Rep. Travis Clardy, R-Nacogdoches, told the committee during his introduction of HB 1348 that he had thought steering and other issues including repairs were addressed in statute. However, the Texas Department of Insurance said it didn’t have enough specifics within existing law to deal with it Clardy said he had a “fundamental disagreement” with the TDI’s view of itself, arguing it should be an “advocate” and “protector” of consumers over insurers rather than a “go-between” for the two. Continued from Cover

APCIA Opposition

curred.” It also defines “like kind and quality” for aftermarket parts and addresses steering and questionable prevailing rate surveys. Woods told the Texas House Insurance Committee on Tuesday that no regulation confirms collision repairers will use the OEM repair procedures they’re billing for. “They’re gonna charge a $250 blueprint fee, which (they) do now,” Woods said, defining this as the time spent researching repair procedures. “They’ll do that, but there’s no guarantee anywhere that they actually will do that,” he said. “And most of ’em are gonna actually follow— I mean, 98, 99 percent are gonna follow the manual step by step. But you’re still gonna have folks out there that will glue a roof on, cover up the work, and send it back out on the road.” Fraud and un-‘workmanlike’ behavior Woods is essentially arguing that because 1-2 percent of shops commit fraud, insurers shouldn’t be required to reimburse consumers who patronize the honest 98-99 percent of shops billing for OEM repair procedures they execute. Let’s take it a step further for the sake of argument. The Insurance Information Institute reports a mix of 4

But in deference to the agency’s comments, Clardy was trying to provide that specificity in the bill, he said. Lawmakers had a chance to give TDI the authority to “do the right thing” with HB 1348, Clardy said. “We have exhausted every effort before we came here” with the bill, Auto Body Association of Texas President Burl Richards (Burl’s Collision Center) told the committee during the hearing. He mentioned three separate meetings with the TDI in 2018. “We continually were told that TDI has no jurisdiction, they have no authority and ‘You’re gonna have to pass legislation,’” Richards said. Richards said he was told repeatedly that TDI doesn’t recognize or enforce prevailing rate language but allows the term to appear in policies.

He said he was instructed to provide definitions. HB 1348 inserts a definition in state law that holds a “(p)revailing rate” to be a “transparent and unbiased” one “conducted by a third party” that uses the “posted retail labor rates and not direct repair program shop rates that operate under a contract with an insurer.” American Property Casualty Insurance Association state government relations VP Joe Woods argued that by excluding DRP rates, the law could capture “only the highest rates.” Houston Auto Body Association President John Kopriva (Kopriva Body Works) said DRP shops’ rates were excluded because those rates were part of an agreement with insurers. Repairers in direct repair pro-

grams often agree to artificially deflate direct repair program rates in exchange for a crack at referral volume from the insurers, so it’s apples-to-oranges to treat them as a reflection of the broader market. To use an example from another industry: If one hotel in town cuts a deal with a convention to rent a block of rooms for $100 less to lock in that business, it’s not like it’s reasonable for an average tourist to demand or expect to pay $100 less at every other hotel in town with no such guaranteed revenue stream. TDI was not among the agencies which responded to a Society of Collision Repair Specialists inquiry of every state department of insurance regarding regulators’ views of OEM repair procedures, based on the trade group’s website.

vendors and consumers contribute to what is an approximate 10 percent of loss costs being fraudulent across all insurance lines. Pretend that all auto insurance policyholders are completely honest and the entire 10 percent of loss fraud is committed by body shops. Woods’ argument still falls apart. Ninety percent of collision repairers and 100 percent of consumers still deserve to be covered frictionlessly for following the repair procedures developed by the manufacturer of the damaged car. Woods’ argument also backfires with a reference to the Seebachan v. John Eagle Collision center case, in which a Texas jury found a body shop responsible for much of the severity of a Honda Fit crash because the facility adhesive-bonded the vehicle’s roof. Jurors awarded $31.5 million; the plaintiffs and shop later settled for an unspecified amount. John Eagle Collision Center body shop director Boyce Willis in a deposition had agreed the facility bonded the roof with 3M 8115 adhesive despite little concrete evidence or engineering knowledge to support the decision—particularly as 3M and Honda instructions state otherwise. Honda OEM repair procedures demand a shop tack-weld the front and rear corner edges of the new roof and then perform a combination of two- and three-plate spot welds and MIG plug welds. More than 100 welds are required by the manufacturer, plaintiff Marcia Seebachan told

the committee during testimony supporting the bill. “It is unconscionable that companies can undermine this process by approving insufficient repairs,” Seebachan told the committee Tuesday. She said two of her injuries should have killed her, and another could have. The John Eagle case clearly shows shops who fail to follow OEM procedures in Texas can face consequences. Woods also forgets other checks on shops deviating from repair procedures and the appalling ones who go a step further and bill for OEM procedures they never did. First and foremost, the III reports that insurance fraud is indeed a criminal offense in Texas. Body shops in the state also can be sued by a consumer for breach of express or implied warranty under the Texas Deceptive Trade Practices Act. The Texas Supreme Court in Melody Home Manufacturing Company v. Barnes nailed down a vendor’s responsibility. “We hold that an implied warranty to repair or modify existing tangible goods or property in a good and workmanlike manner is available to consumers suing under the DTPA,” the court wrote. It proceeded to define the concept and declare it unwaivable: We define good and workmanlike as that quality of work performed by one who has the knowledge, train-

ing, or experience necessary for the successful practice of a trade or occupation and performed in a manner generally considered proficient by those capable of judging such work. We do not require repairmen to guarantee the results of their work; we only require those who repair or modify existing tangible goods or property to perform those services in a good and workmanlike manner. In this case, the breach of the implied warranty was plainly within the common knowledge of laymen and did not require expert testimony. The jurors had sufficient knowledge to find that the failure to connect a washing machine drain would not be considered good and workmanlike by those capable of judging repair work. Consistent with the trend in recent consumer protection legislation and sound public policy, we further hold that the implied warranty that repair or modification services of existing tangible goods or property will be performed in a good and workmanlike manner may not be waived or disclaimed. (Emphasis ours.) All three national collision trade groups and the national insurer and repair training organization I-CAR have said for years OEM repair procedures are the standard of care. Automakers, who develop repair instructions they’ve proven will fix the vehicles correctly, also hold shops should follow their procedures. Finally, some of the other 98-99

MAY 2019 AUTOBODY NEWS / autobodynews.com

See APCIA Opposition Page 22

autobodynews.com / MAY 2019 AUTOBODY NEWS

CO Automotive Recyclers Debuts Rocky Mountain Summit & Expo by Chasidy Rae Sisk

From March 15–16, the Colorado Automotive Recyclers (CAR) hosted its first Rocky Mountain Summit & Expo at Cheyenne Mountain Colorado Springs. According to Sandy Blalock, executive director of CAR, “The event did very well considering the major storm, which caused airlines to ground multiple planes [and prevented] the attendance of 20 registered participants, including four vendors. Attendees responded favorably to the first-time event; this was a first for CAR to host a multi-state event.” The goal of the event was to educate attendees as well as offer networking and collaboration opportunities with industry partners. Blalock noted, “Our associations try to bring as much as possible to our small venues to allow recyclers an opportunity to hear from industry experts and view the latest in products and services available in our industry. Many smaller facilities will not have an opportunity to attend the larger national show because they simply cannot afford the time away

from their smaller operations. We must strive to bring as much as we can closer to them. We are an industry that operates at a high level in the ecommerce side, and many of these recyclers met others they have been doing business with for many years for the first time face-to-face.”

The 2019 Rocky Mountain Summit & Expo began on Friday with several options: Pinnacle training, a Car-Part World Tour and the Hollander Training Summit. CAR was excited to partner with management system providers for these specialized training programs. CAR held an Exhibit Appreciation Reception on Friday evening. Saturday began with Richard Murr welcoming attendees, followed by “Increasing Your Sales and

Presence on eBay,” presented by Garff Fitzgerald of eBay. Theresa Colbert then facilitated a “Recyclers Hot Topic Roundtable” before Representative Dave Williams discussed “New Sales Tax Program for Businesses.” The morning also included “A Practical Approach to Leading Change in Your Organization” with Scott Vollero of ScrapCATapp.com. The expo opened during lunch and remained open throughout the majority of the afternoon. The afternoon sessions were broken into three tracks: management, employee and self-serve. The management track started with “How to Monitor the Value of My Operations” with George Metos of GM Consulting. Sara Hamidovic of VET Environmental then covered “Environmental Safety Compliance.” After Paul D’Adam of RAS presented “Bounty Hunter 2019: Cash in on Recalls New App and New Opportunities for Self- and Full-Service Operations,” Karen Brady from the Law Office of Karen Brady presented “Succession Planning.” In addition to Hamidovic’s compliance presentation, the employee track included “Powerlink® Tips &

Tricks,” presented by Laurie Woods from Hollander, “CARCHAT Line: How to Make it Work in Your Company,” presented by Car-Part’s Roger Schroder, and “New Pinnacle Mobile Apps,” presented by Chris Atencio and Amanda Smith of Pinnacle. Attendees participating in the self-serve track were treated to two panels. The first, “Operational Best Practices,” included panelists Mary Mandel from Danny’s U-Pull, Justin Eves from U Pull & Pay, Eric Larkin of Nevada Pic A Part, and Adam Lindley from SAS Forks. It was moderated by Marty Hollingshead of Northlake Auto, who also moderated the second panel. The panelists for “Marketing Your Self-Service Yard” included Kirsten Brinkerhoff from CRUSH and Jonathan Morrow from M&M Auto. Blalock shared, “I was pleasantly surprised by the turnout and especially our surrounding states that showed up at the event. Many wanted to make sure we would continue the format, and I know that is exactly what will be needed in the future for our industry.” For more information about CAR, visit coloradoautorecyclers.com

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Gerber Acquires Repair Center in Bullhead City, AZ

Gerber Collision & Glass recently announced the March 25 acquisition of a repair center in Bullhead City, AZ. This location previously operated as Gordy’s Auto Body and served the community for 30 years from the same location. Bullhead City is located on the Colorado River at the southern border of Lake Mohave, directly across from Laughlin, NV. This repair center is located about one hour from Gerber’s recently opened location in Lake Havasu City and two hours from its locations in the Las Vegas market. “We are excited that this new location will strengthen our presence in this region and introduces our brand of quality service to new customers,” said Tim O’Day, president and COO of Gerber Collision & Glass. “This opening also allows us to better assist our insurance clients.” Gerber Collision & Glass is continuously looking to add new collision repair locations to its existing network in Canada and the U.S. Interested collision repair center owners are asked to contact Stephen Boyd at the (204) 594-1776 or stephen.boyd@boydgroup.com for more information.

NABC Recycled Rides Donates 4 Refurbished Vehicles to Deserving Dallas, TX, Residents On Thursday, April 4, four deserving Dallas, TX, residents experienced a life-changing event—the presentation of vehicles to provide them independence and the ability to work and take care of their families. The donation was made thanks to the National Auto Body Council’s Recycled Rides™ program; car donors Allstate, GEICO, Farmers and State Farm; and collision repair partners Service King Euless, Caliber Collision Frisco, Berkshire Hathaway Toyota of Richardson and Berkshire Hathaway Vandergriff Chevrolet. The presentation was held at the NABC Lone Star Pars for Cars Golf Fundraiser at the Texas Star Golf Course in Euless, TX. “What an honor to partner with these insurance carriers, collision repair facilities and vendors to refurbish these vehicles for these very deserving recipients,” said Bill Garoutte, president and CEO of the National Auto Body Council. “Each recipient has made a tremendous commitment to changing and improving their lives, and, on behalf of the collision repair industry, we want to do the same for them by providing them reliable transportation.” The recipients included:

• Retired MSGT James Marquis, who served more than 25 years, primarily with the 136th Air National Guard Security Forces, will receive a 2018 Hyundai Elantra that was donated by GEICO and repaired by Caliber Collision Frisco. Marquis was nominated by the Air Power Foundation for his service to his country and help assist in his desire to return to college and provide support services for other veterans in need. “I’m speechless; I’ve just been speechless the whole day,” said Marquis. “Everybody behind this—the people, the volunteers—it’s just an amazing organization.” • Josephina Garcia, wife and mother of two, will be presented a 2014 Kia Optima that was donated by Allstate and repaired by Service King Euless. She was nominated by the Trinity River Mission for her and her family’s need for transportation for work and school. • Jasmine Jones, a mother of three who faced financial difficulties after a severe car accident, was nominated by Family Promise of Irving for her commitment to work through her challenges and return to a stable life. She will receive a 2011 Toyota

Camry that was donated by Farmers Insurance and repaired by Berkshire Hathaway Toyota of Richardson. • Krystal Calhoun, a mother of two young children, will receive a 2014 Hyundai Elantra that was donated by State Farm and repaired by Berkshire Hathaway Vandergriff Collision South. She was nominated by Family Promise of Irving, which is helping her and her family get back on their feet financially with an independent lifestyle. “This is going to make a big difference in my life,” said Calhoun. “I’ll be able to get back and forth to work on time and won’t have to take a bus and leave an hour-and-a-half early. This will make it much easier to take my kids back and forth to school and go shopping. I’m so appreciative, and the car is awesome.” Additional supporting partners included 3M, AC Towing, asTech, Auto Creation, Bodyguard, Cowboys Towing, English Color, Freeman Mazda-Hyundai, Gold Team Interiors, Hudson’s Auto Glass, Keystone/LKQ, J B Dent Magic of Arlington, North Texas Detailing, North Texas Tire, PPG, 800 Charity Cars, Vandergriff Chevy and Vandergriff Hyundai.

Southwest Association Events - May 2019 by Chasidy Rae Sisk

See below for a list of southwest automotive association events coming up in May: HABA To Host Collision Industry Spring Appreciation Party On May 14, from 7–9 p.m., the Houston Auto Body Association (HABA) will host its 2019 Collision Industry Spring Appreciation

visit habaonline.org.

ABAT To Host 3rd Annual Skeet Shoot On Saturday, May 18, the Auto Body Association of Texas (ABAT) will host its 3rd Annual Skeet Shoot at Elk Fork Shooting Sports in Dallas, TX, beginning at 10:30 a.m.

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Party at Jackson Street BBQ in Houston, TX. Members are invited to enjoy an evening of dinner and drinks at this free event. Two drink tickets will be provided to attendees, and a cash bar will be available. Registration is required to attend. For more information or to RSVP, 8

Limited space is available, so advance registration is necessary. In addition to the skeet shoot itself, the $2,000 entry fee for a team of four includes lunch and a chance to win “a beautiful mantle-worth gun,” said ABAT Executive Director Jill Tuggle.

For more information, visit abat.us.

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MAY 2019 AUTOBODY NEWS / autobodynews.com

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7 Arrested in Insurance Fraud Scheme Involving Staged New Orleans Crashes by Laura McKnight, NOLA.com, The Times-Picayune

Seven people, including six New Orleans-area residents and a Hammond man, are accused of insurance fraud after state police say the group staged a pair of crashes in the city. Those arrested include Hayward Howard, 32; Jasmine Howard, 28; Eddie Ellis, 19; Hayward Carter, 51; Jodie Davis, 20; and Neichell Raymond, 42, all of New Orleans, along with 19-year-old Dante Carter of Hammond. The arrests, which began in January and continued through March 25, capped a months-long investigation by detectives with the Louisiana State Police Insurance Fraud/Auto Theft Unit’s New Orleans Field Office. Investigators believe the crashes, which occurred in February and May of 2018, were orchestrated by Hayward Howard, Troop B spokesman Monroe Dillon said. Investigators were tipped last August that Hayward Howard, Jasmine Howard, Dante Carter and Ellis had staged one of the crashes. In that crash, reported Feb. 28,

2018, at Constance and Bordeaux streets in Uptown, Hayward Howard backed a rented U-Haul truck into Jasmine Howard’s vehicle, occupied by Ellis and Carter. All occupants filed claims for damages and injuries, state police said.

In the second crash, which took place May 31, 2018, at Bender Drive and Seine Street in Algiers, Howard “purposefully” drove a rented UHaul truck into a Cadillac owned by Ellis. In that crash, which investigators also determined was staged, three more people—Hayward Carter, Raymond and Davis—filed claims for damages and injuries, authorities said. The seven were booked into the Orleans Justice Center jail over a roughly two-month span. None

MAY 2019 AUTOBODY NEWS / autobodynews.com

remain in jail, according to jail records.

• Hayward Carter was booked Jan. 25 with one count each of insurance fraud and filing false public records. His bond was set at $2,000. • Davis was booked Feb. 4 with one count of insurance fraud. His bond was set at $500.

• Ellis was arrested March 27 on two counts of insurance fraud and one count of filing false public records. He was released on his own recognizance by an Orleans Parish magistrate judge, according to court records. His bond was set at $3,000. • Dante Carter was booked with one count of insurance fraud and also released on his own recognizance by a judge. Court records show no bond set for Dante Carter. • Jasmine Howard was arrested March 24 on one count each of insurance fraud and filing false public records. She was released on her own recognizance, and court records show no bond set for her.

• Hayward Howard was booked March 25 with two counts of insurance fraud, court records show. His bond was set at $5,000, and he was released on his own recognizance by an Orleans Parish magistrate judge.

• Raymond is accused of one count of insurance fraud, state police said. She did not appear in court records.

Davis also has pending charges in Orleans Parish of intimidating a witness and resisting an officer in connection with an outburst during a pre-trial hearing for his brother, who is accused of murder. Davis was arrested Jan. 7 and formally charged Jan. 24. He has pleaded not-guilty to the charges and is set for trial April 24. Booking photos of the group were not immediately available the night of March 26. To tip state police to suspected staged vehicle crashes or other forms of insurance fraud, call the Louisiana State Police Insurance Fraud/Auto Theft Unit at 504-310-7100 or email insurance.fraud.unit@dps.la.gov. We thank NOLA.com, The TimesPicayune for reprint permission.

Logan, UT, Collision Repair Shop Worker Turns Heads With His Studebaker Champion Starlight by Brian Champagne, KSL.com

This article originally ran on KSL.com.

www.ksl.com/article/46507039/loganman-turns-heads-when-driving-his1950-studebaker-champion-starlightcoupe

People could drive miles on Utah interstates and go to weekends of car shows and probably still wouldn’t see a set of wheels like this, especially looking factory-fresh. “Something you don’t see every day” is what Mike Cazier said about his car. There are two reasons for this: First, it’s a 1950 Studebaker Champion Starlight Coupe. The “Starlight” part means it has the four-piece wraparound back window, offered from 1947–51. Critics said they didn’t know if it was coming or going. Studebaker was early on the scene to get fresh styling out after World War II. It has the “bullet” nose that led off the car from 1950–51. People could order a propeller from the dealer and let it spin like an airplane as you drove down the road. The second reason: It’s rare to

see it. Most people spend most of their driving time on interstates. Mike is a member of an old car club that takes tours together, but he said they go to unique spots people in modern cars miss, and they like taking the less-common back roads.

The bullet nose that makes Mike Cazier’s 1950 Studebaker Champion so distinguishable. Credit: Brian Champagne

Mike’s dad, Doyle Cazier, bought a Studebaker Champion new in 1950 and often talked about it with his son. Mike bought his own in 1981 and spent eight years restoring it with his father. In 1991, Mike and his 10year-old son were driving the Concord Blue coupe to a car show when Mike said a truck ran a stop sign and broadsided them, totaling the freshly completed project and giving the father and son cuts, bruises and cracked

ribs. He said the Utah Highway Patrol trooper investigating the crash took a second to spin the propeller. After collecting a disappointing check from the insurance company, Mike displayed the wreck at the Cache Valley Cruise-In’s swap meet to solicit leads on another one. Later that same year, he picked up his second 1950 Champion in Kentucky. It was supposed to be running but wasn’t. The back seat had a rat skeleton in it. The restoration became a father-and-son project with the next generation. Mike’s day job is at a collision repair shop, so he could do his own body work and had an inside line on getting it painted Concord Blue. He kept the original 170-cubic-inch flathead six, giving it an overhaul and bore but keeping it original. He was not interested in hot-rodding it. He estimated he took it to 10–12 car shows a year. He might do more, but many are on the same weekend. It’s easy to spot at a show, standing out from the all the Mustangs, Model As, and Camaros surrounding it.

www.autobodynews.com

Travis County, TX, Body Shop Owner Sentenced

A Travis County, TX, body shop owner was sentenced to 10 years of probation after Texas Department of Insurance investigators found he had reported wrecks that never took place and damaged vehicles to increase insurance payouts. The fraud took place over the course of about five years, during which Elias Zapata changed the body shop’s name several times to avoid bad reviews. Zapata pleaded guilty to a first-degree felony in February. He was sentenced March 13 to probation and ordered to repay more than $76,000. The case was prosecuted by Travis County Special Assistant District Attorney Brian Chandler, one of six prosecutors employed by TDI who work in district attorneys’ offices across the state to fight insurance fraud. TDI investigators are certified peace officers and work closely with law enforcement authorities around the state when investigating fraud cases. You can report suspected insurance fraud by calling 1800-252-3439.

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Overturned Semi-Trucks Taken Into Towing Lots, Repair Shops After Wind Storm in TX manager of T-Miller Wrecker Service. Thirteen of those were overAfter the March 13 wind storm, it could take weeks before semi-trucks turned semis and four of them are like those pictured are back on the left on the property now. “Some of the trucks and trailroad. The Texas Department of Pub- ers we either took directly to the lic Safety said it responded to 49 body shops or took them if they had overturned semis in the Texas Pan- a terminal here in Amarillo, we took handle region that were knocked them directly to the terminal,” said Ferril. down by those strong winds. Ferril said insurance adjusters visited the lot recently to assess the damage of the trucks, and more were expected to come in the few days following. “The adjusters will go to the body shop, and then After the March 13 wind storm, it could be weeks before they can make the decisemi-trucks such as these are back on the road. Credit: sion from there whether KFDA they’re salvageable or if Many of those tractors and they need to be repaired or sent to a trailers spent at least a week sitting salvage yard or salvage pool,” he said. One of those shops is Utility in the lots of towing companies, such as T-Miller Wrecker Service in Trailers, which is expecting 15 damaged trailers and more to come in Amarillo. “We probably did 20, 25 total for estimates. “Every day, basically, I’m out calls with tractor-trailers involved in the wind and what the wind did looking at trailers and doing estito them,” said David Ferril, safety mates on those trailers that blew over by Destiny Richards, KFDA

MAY 2019 AUTOBODY NEWS / autobodynews.com

in that particular day,” said Douglas Franklin, service manager at Utility Trailers Southeast Sales. “They’re coming from all over the Panhandle where they actually blew over on their sides.” Franklin said most of the ones he’s seen so far have sustained what he calls “cosmetic damage.” “Mainly it’s road rash. It’s basically what most of the ones I’ve looked at so far,” he said. “And what I mean by ‘road rash’ is scratches down the side, eating the lights off of them, eating the panels up and stuff like that. “Those repairs will run anywhere from $1,500 on up and completely total to a $75,000 trailer, depending on the damage on the trailer.” While repairs can take a week to 10 days, companies such as Utility Trailers have months of work ahead of them. “Let’s say the next three to four months,” said Franklin. “I’m already taking jobs in for a couple of months out right now.” We thank KFDA for reprint permission.

KSI Donates $250,000+ to Support CREF’s Mission KSI Auto Parts has contributed over $250,000 in financial and in-kind support for collision repair schools through the Collision Repair Education Foundation. KSI contributed $25,000 to support CREF last year and initiated a program to donate parts to collision school programs. Through the parts donation program, the company has contributed $240,000 in parts to schools. The monetary contribution assists CREF’s ability to offer collision school tool and equipment grants and student scholarships across the U.S. At many schools, students have to practice on parts that have been in use for many years and practiced upon by previous students. The parts donations by KSI Auto Parts help students work on parts for newer vehicles that they are more likely to see when they join the collision industry workforce.

www.autobodynews.com

autobodynews.com / MAY 2019 AUTOBODY NEWS

Auto Repair Shops Join to Repair New Braunfels, TX, Coach’s Truck for Free

MAY 2019 AUTOBODY NEWS / autobodynews.com

his baseball players, school administrators, his parents, the team from Northeast Customs Collision and employees from Safelite.

Canyon head baseball coach Reagan Moczygemba (middle) and the baseball team react to seeing Moczygemba’s newly refurbished car at Canyon High School on March 27. The coach’s car was vandalized earlier this year. Credit: Mikala Compton

“I don’t even know what to say. So many people reached out to me after to tell me they were sorry it happened,” Moczygemba said. “When Safelite reached out wanting to help, I was so thankful.” The coach recalled the incident, which happened while he was out of town for a tournament in Laredo. “I parked my truck in a spot I

normally never even park it,” Moczygemba said. “I even thought about asking my wife to pick it up, but we have two little ones, so I figured it would be fine. “I can tell you what, I won’t be leaving this truck here again,” he said with a laugh. Moczygemba said the community came around him after the incident, and he is thankful to the people of New Braunfels and San Antonio. “Everyone’s been wanting to help; there are 10 good people out there for every bad person,” he said. Senior centerfield Payne McKay said the team feels so happy for its coach. “People coming together to help out our coach; that’s actually helping out the whole team, and we appreciate that,” McKay said. Moczygemba’s mother, Laurie, and father, Jeff, came to congratulate their son on his fixed-up truck. “We’re so grateful, thank y’all,” Laurie said to the auto teams. We thank The Herald-Zeitung for reprint permission.

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and so he said, ‘Yeah, we’d love to help,’” Laugel said. “So they did the A New Braunfels, TX, coach was body, the interior, the bed—for all inshocked the afternoon of March 27 tents and purposes, it’s basically a when he received his completely re- new truck. It looks a lot better.” painted and detailed truck, free of The handymen at Northeast Cuscharge. toms Collision put in tons of extra After Canyon High School base- man-hours to make sure the coach’s ball coach Reagan Moczygemba’s truck was ready to return to him on Ford F150 was vandalized in Febru- time, Acala said. ary, several nearby auto repair shops “I was amazed to see how our teamed up to fix the “trucked”-up sit- guys took on the challenge and took uation. time out of their own schedules to make it happen,” Acala said. “And we’re giving him a lifetime warranty on the body job.” Northeast Customs Collision manager Fernando Sanchez said their team was very understanding of the situation and eager to step up to the plate to help out. Chris Laugel, a manager at Safelite AutoGlass, speaks “We were ecstatic to help with Canyon head baseball coach Reagan Moczygemba the coach get his truck back as he delivers him his car at Canyon High School on into tiptop shape,” Sanchez March 27. Credit: Mikala Compton said. “We were happy to The coach’s vandalized truck help when Safelite gave us the call to went viral after Moczygemba’s sister let us know they were doing the glass shared a social media post depicting and to ask us to do the body.” the tagged truck on Twitter. It was Laugel said he was thankful not exactly this viral post that attracted just to Northeast Customs Collision the attention of Leandra Cameron, but also to Safelite technician Greg a New Braunfels native who works Dunway, painter Jesus Alvarez, inas the assistant manager at a Safelite terior detailer Mobile Eco and its AutoGlass shop in San Antonio. owner Raul Rivera, and BlueBonnet “When we heard the news about Ford’s Karen Nance for their help on Moczygemba’s truck being vandal- the coach’s truck. ized on campus, I felt like this was something we could help out with,” Cameron said. “I was raised here in New Braunfels and when something like this happens, we come together.” Cameron reached out to Moczygemba, offering to replace all pieces of glass on Safelite’s dime to help him out because of the vandalCanyon head baseball coach Reagan Moczygemba examines the new truck bed ism, Cameron said. on his newly refurbished car at Canyon High “We shared his story with a local School on March 27. Credit: Mikala Compton body shop here in San Antonio that we pair up with normally, and they went Sometimes bad things happen to ahead and covered an entire paint job good people, but it’s an act of kindon the vehicle,” Cameron said. “We ness like the one shown by these two also paired up with Bluebonnet Mo- auto repair shops that helps keep tors to get some parts needed that faith in people, said Canyon High weren’t repairable.” School Principal Casey Whittle. “It’s a great community, and That body shop was Northeast Customs Collision Repair, said Safe- these good people came together to lite manager Chris Laugel. make this happen,” Whittle said. “We told the shop owner (AbraUpon receiving his truck, ham Acala) about the coach’s truck, Moczygemba was surrounded by by Lindsey Carnett, The Herald-Zeitung

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Burl’s Collision Becomes Ford-Certified, Earns Medallion Status Through VeriFacts by Chasidy Rae Sisk

Burl’s Collision Center in Henderson, TX, recently earned Medallion status through VeriFacts Automotive, LLC and became the first Ford-certified collision center in the United States under the OEM’s new certification program. According to Burl’s Collision Center owner Burl Richards, “This gives my employees and me a good sense of accomplishment and a lot of pride. My guys really feed off knowing that we’re among the best in the country. We started down the road to certification nearly five years ago, and it has been good for us, but it’s been the best for our customers. Earning Medallion status means a lot because it means we are in the top 1 percent of U.S. shops for quality.” Burl’s Collision is the 181st shop to receive Medallion status, but there are currently only 103 shops in the nation still considered VeriFacts Medallion shops because the status has to be maintained. Farzam Afshar, CEO of VeriFacts, explained, “Medallion is the highest level of quality a shop can earn from us today. We assess their

equipment in terms of whether they have the right equipment, if they know how to work with it, and if they’re using it properly. It’s really about whether they succeed at making it part of their shop culture.

Burl’s Collision Center recently earned Medallion status through VeriFacts

“We also question whether they meet the requirements of ‘high quality’ regarding welding, corrosion protection, vehicle measurement and more. We verify and validate that the shop

MAY 2019 AUTOBODY NEWS / autobodynews.com

has a culture of quality where they are continually evaluating themselves and getting better. In order to acquire Medallion status, the shop has to receive a quality score of 95 percent or better consistently. If a shop doesn’t sustain that score, they will get dropped back to VQ or lower if they don’t improve. It’s not pay and play; it’s pay and perform in order to be recognized, but if the shop stops performing, they lose that recognition.” Burl’s Collision became a VeriFacts shop in 2017. Richards feels that it’s helped make huge improvements in his shop culture. “VeriFacts comes in once a month for a surprise visit—we never know when they’ll show up—and they assess four cars in various stages of the repair process to determine if the OEM procedures were followed and documented appropriately,” he said. “It’s pretty detailed and a lot like coaching, but my employees get a lot out of it. I went into this with the goal of changing the shop’s culture and getting my employees to look at the business like I do. Now, I don’t have to look over their shoulders; they repair our customers’ vehicles properly without me being on the floor.”

Afshar noted, “Burl’s Collision has an amazing culture of quality. Everyone in the shop is working toward a safe repair as a team in the most cost-effective way possible. We have the honor and pleasure of working with great shops like Burl’s. VeriFacts gets to identify already great shops and spotlight the best shops in the U.S. and Canada—it’s really rewarding to be able to celebrate the industry’s best. Of course, all shops think they’re great, but it makes a difference when a third party agrees that it’s true!” Through their relationship with VeriFacts, Burl’s Collision has obtained OEM certifications for Tesla, GM and, most recently, the new Ford program. Richards calls the new program “more detailed and stringent than before. We had most of the equipment we needed from obtaining Ford certification the first time around, but this time, they required some changes in the front office.” Congratulations to Burl and his team!

www.autobodynews.com

Maaco New Braunfels, TX, Earns Gold Class Status by Staff, Herald-Zeitung

Maaco New Braunfels in New Braunfels, TX, recently announced its achievement of Gold Class status, the industry standard for training that contributes to complete and safe repairs.

Only 10 percent of collision repair businesses currently meet the rigorous training requirements necessary to earn the Gold Class designation. Gold Class shops are required to have every technician involved in collision repair take training that is specific to their roles. They must continue with ongoing training each year for the business to maintain its Gold Class recognition, including classes in new technology. Today’s vehicles are increasingly sophisticated devices featuring an ever-growing number of

components, parts and advanced lightweight materials. The constant introduction of new vehicle technologies can result in repair procedures changing significantly

from year to year, making current repair knowledge critical for the achievement of complete, safe and quality repairs. “Maaco New Braunfels is honored to be a named a Gold Class collision repair facility,” said Stan Piernick of Maaco. “We are proud of our commitment to training because it is also a symbol of our commitment to professionalism and to the safety of our customers.” We thank Herald-Zeitung for reprint permission.

Fort Collins, CO, Couple Still Waiting for Fix 3 Years After Vehicle’s Airbag Recall by Nicole Brady, The Denver Channel/Contact7

Martha and Tom Fenno received notice in May 2016 that their 2007 Chevy Tahoe was part of a nationwide Takata airbag recall.

The notice came with dire warnings that the airbag inflator could rupture, causing serious or fatal injuries. Three years later, General Motors still has not offered a remedy. “These airbags are tantamount to having a loaded shotgun pointed at your chest, and we, and millions of other vehicle owners, are stuck with cars we can’t drive or sell,” Martha said. The Fennos, who call Fort

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Collins, CO, home, aren’t the only drivers feeling that frustration and fear. Around the country, owners of popular GM SUVs and pickups are dealing with similar delays. That’s because General Motors is currently petitioning the NHTSA to exempt it from further recalls. In a statement to Contact7, General Motors said it “does not believe a safety defect exists in these vehicles.” In its petition to the NHTSA , the automaker said the Takata airbags in its vehicles were made to specific GM specifications, which include stronger metal housings. That’s little reassurance to the Fennos, who have read the reports of 24 deaths and 300 injuries linked to Takata airbags. “This should be criminal,” said Martha Fenno. “They’re allowing people to drive dangerous vehicles around simply because they don’t want to replace those airbags.” We thank The Denver Channel/Contact7 for reprint permission.

www.autobodynews.com

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Typical LA Driver Overpays for Car Insurance by $1,159 a Year, Report Says age rates in each region for multiple major insurance companies. To develop the analysis, drivers Drivers in Louisiana already pay some of the highest rates for car in- shared information with Gabi about surance in the country. A new report how much they pay for insurance suggests they also lead the country and basic policy details. Gabi then in the amount they overpay for cov- took that information and compared it to averages for that type of driver erage. and policy among multiple major insurance companies. The analysis found the average Louisiana driver paid roughly $1,159 more than they could have for car insurance in 2018. That was more than one-third of the total average premium paid by local drivers, and the highest amount overpaid in all 50 Traffic backs up near North Causeway Boulevard Service states. Road and White Street, Friday, Sept. 8, 2017. Credit: Louisiana remains Michael DeMocker, NOLA.com, The Times-Picayune among the most expensive Drivers with car insurance poli- states for car insurance because of a cies in Louisiana paid $3,111 a year number of factors, including a high on average for 12-month coverage in rate of uninsured drivers as well as a 2018, the highest rate in the nation, high rate of auto litigation. Many according to data analyzed by Gabi, Louisiana drivers who do buy insuran insurance comparison website and ance have minimum coverage. As a app. Gabi’s analysis looked at premi- result, many turn to the courts to get ums paid by more than 130,000 users larger payouts in the case of a serious nationwide, comparing them to aver- accident. by Jennifer Larino, NOLA.com, The Times-Picayune

‘Who Pays for What?’ Surveys Find Growth in Shops Billing (& Being Paid) for Masking for Priming An upward trend in the percentage of shops across the United States regularly being paid by the eight largest national insurance companies to mask as necessary for priming continued this year. Back in 2015, a “Who Pays for What?” survey conducted by Collision Advice and CRASH Network found that less than 1 in 4 (24 percent) shops said they were paid “always” or “most of the time” when charging for the “not-included” labor required prior to the priming process to protect the vehicle from overspray. That grew to 37 percent in the last several years. But the same survey this past January found that 43 percent of the more than 600 shops responding to the question reported regularly being paid for masking during the priming process. Only about one-third of shops said they have never sought to be paid for that procedure. Mike Anderson of Collision Advice said the change is a good indication the industry is increasingly aware of the not-included procedures shops often perform without 20

seeking compensation. He said the latest of the four 2019 “Who Pays for What?” surveys, which focuses on “not-included” body labor operations, is open now through the end of April at: https://www.surveymonkey.com/ r/S3FQ8X3 Anderson said the survey, which will take about 15–25 minutes, can be completed by any shop owner, manager or estimator who is familiar with the shop’s billing practices and the payment practices of the largest national insurers. Each shop’s individual responses are kept confidential; only aggregated data is released. Survey participants receive a report with complete survey findings at no charge, broken down by region, insurer and DRP vs. non-DRP. The report also includes analysis and resources to help shops better understand and use the information presented. The results of previous surveys are also available online (https:// www.crashnetwork.com/collision advice).

MAY 2019 AUTOBODY NEWS / autobodynews.com

Last year, state regulators approved rate hikes for multiple insurers, though there are signs rates may be leveling out. State Farm said in February it would cut auto rates by 3.2 percent this spring. State Farm insures roughly one-third of all Louisiana drivers. Nationwide, a rise in accidents caused by distracted driving linked to growing smartphone use in vehicles has led to rising rates. Distracted drivers killed 3,450 people and injured another 391,000 in 2016, according to the latest data from the National Highway Traffic Safety Administration. In an emailed explanation, Hanno Fichtner, CEO of Gabi, noted a number of factors affect how much an individual pays for car insurance, including one’s credit score and where one lives. (Cities have a higher density of drivers and tend to have more accidents reported, thus higher premiums.) Rates are also lower in states like Maine where there are many different insurance providers and competition is high, Fichtner said. Maine drivers paid an average premium of $1,447 a year in 2018, according to the Gabi analysis. Still, Maine driv-

ers overpaid for insurance, to the tune of about $673 a year, or nearly half the total average 12-month payment. The one way drivers can consistently lower their auto insurance rate? Shop around, the report says. Indeed, Louisiana Insurance Commissioner Jim Donelon has repeatedly urged drivers facing a rate hike to shop for a new policy. Insurers in Louisiana get one rate increase or decrease per year. Officials recommend reassessing coverage options at least once a year. Here’s a look at the top 10 states where Gabi found drivers overpay for car insurance the most. States are ranked by the total amount overpaid on average. We thank NOLA.com, The TimesPicayune for reprint permission.

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Continued from Page 4

APCIA Opposition

percent of shops Woods deemed honest and adhering to OEM procedures would probably be happy to post-repair-inspect their rivals’ work for a suspicious insurer or customer. Adjusters ensure repair quality? Woods’ testimony on repair procedures continued with another feat of logical gymnastics. He essentially made the case that insurers shouldn’t be compelled to pay for OEM repair procedures because the carriers are ensuring shops follow them. “So, this is a highly unregulated business,” Woods said. “The insurance adjusters are really the only people that … have any shot at regulating practices and quality.” Which is funny, because Nationwide just argued to the Pennsylvania Supreme Court in fall 2018 that it had no duty at all to verify quality (at least in Pennsylvania). “In the Bergs’ third question presented for this Court’s review, they seek to have this Court declare that

Nationwide itself had a duty under Pennsylvania law to verify that the vehicle, and presumably every vehicle that gets repaired pursuant to an insurance policy, was repaired properly and that its failure to do so is bad faith,” Nationwide wrote regarding Berg v. Nationwide. “This question does not warrant this Court’s review because no such duty exists, and even if it did exist it would not prove that Nationwide acted in bad faith.” (Emphasis Nationwide’s.) Earlier in its motion against the Supreme Court hearing the appeal, the carrier pointed out that it wasn’t necessarily checking for quality at all on the Jeep at the heart of the case. Those repairs were overseen by a Nationwide direct repair program shop. “Nationwide’s Steve Potosnak testified that Nationwide representatives typically went to Lindgren only to ensure that the repair shop was complying with its prior appraisals,” Nationwide wrote. “Potosnak specifically testified that he would review the quality of repairs ‘only if there was a complaint filed’ about a vehicle. Here, of course, there is no evidence whatsoever that any complaints

MAY 2019 AUTOBODY NEWS / autobodynews.com

were raised with Nationwide. Thus, it is not surprising that there is no evidence that Nationwide re-inspected the Jeep. Likewise, it makes perfect sense that there are no completed reinspection reports. Rather than supporting the Bergs’ argument, the lack of a completed re-inspection form corroborates, rather than undermines, the fact that no repair inspection took place and that Nationwide was unaware of any issues. While the Bergs argue that ‘reinspection reports should exist in the claim file,’ … they fail to cite any precedent holding that a failure to perform re-inspections constitutes bad faith, as opposed to mere negligence.” (Emphasis Nationwide’s.) And State Farm certainly doesn’t seem to have caught John Eagle Collision’ infamous incorrect hail repair that Woods cited moments before. Instead, that case raised a question of broader insurance industry behavior that directly seems to suggest a need for bills like HB 1348. According to Willis’ deposition: A: (Adhesive) is — it is a accepted repair alternative, based on our cars and insurance certifications. Q: All right. And let’s have an

agreement today that we don’t use the word “insurance.” Can we — is that cool? A: Well, unfortunately we’re guided by insurance.· So—the—if you brought your car into my shop, right, the insurance company’s going to dictate what—how we’re going to repair your car. Q: I understand. But the — but you — your — as a certified body shop, you have to — you — the — the insurance company cannot trump the OEM specifications, correct, sir? A: Yes, they can. Q: Where does it say that? A: By not paying the bill. Auto Body Association of Texas board member Chad Kiffe (Berli’s Body & Fine Finishes) acknowledged during the hearing that body shops have a responsibility to do the job right—it’s not just an insurer problem. He noted that many shops still didn’t use OEM repair procedures. “It’s within ourselves as well,” he said. “But we need to take out the excuse that we can’t get paid for it.” For more on this and related stories search this article title at repairerdrivennews.com.

Lone Star Collision Center in Paris, TX, Works for the Customer, Not Insurance Company by Trent Reed, eParisExtra

After working with previous owner Ronny Bolton for about four years, Clay Rose and his wife purchased Lone Star Collision Center in Paris, TX,on May 1, 2018. “We have been in business since 1982, and we do everything from major collision repair to changing a bad light bulb,” Rose said. Rose said he began working for Bolton in June of 2014 as a painter for two years. Rose, who always wanted to own his own shop, said he wanted to run one before he bought an existing shop. “Ronnie and I got together and found an awesome painter we both tested and felt comfortable running our paint shop and meeting our high standards of paint work,” Rose said. “In early 2016, I became the shop manager and estimator.” After just a few months, Rose said he knew Lone Star Collision Center was where he belonged. “I love helping customers with their claims and ensuring them that their car would be in good hands and safe to drive again,” Rose said. “We back all repairs with a lifetime guar-

antee and proudly stand behind it. We fix every vehicle as if our own kids or grandkids would be riding in it.” Rose said having a wreck is a nightmare in itself—small door dings cause stress. “That doesn’t hold a candle to how frustrating the claims process with an insurance company can be,” Rose said. “But I enjoy helping customers with their claims. I will call the insurance company for you, answer all their questions and even set you up in a rental or one of our loaner vehicles.” Rose said there is no sense in customers experiencing more stress on top of the accident. “That’s what we’re here for.” Rose said Paris’ rich history is what he loves about the town. “The people here glow with pride in their city, and the Chamber of Commerce strives to make it better for us every day,” Rose said. “We have been members of the Chamber [of Commerce] for almost 20 years. Paris is an amazing town and all the new growth has us excited for the future.” Rose said Lone Star Collision Center works for the customer, not

the insurance company. As people persons, Rose said he and his wife love meeting new faces and seeing old friends. “Some people think that repair facilities are out to get them. But, I can assure you that we are not,” Rose said. “We go to the same restaurants, shop at the same local stores and go to the same sporting events as our customers. I never want to have to hide my face or avoid a past customer because of a bad experience. We take the extra step to deliver excellent and prompt services.” Rose said that when it comes to an accident, he will walk customers through every step. “If you’re in an accident, call me,” Rose said. “It’s that simple, and every job is different.” Lone Star Collision is at 1421 19th St. N.W. For more information, contact Rose at 903-785-1281. We thank eParisExtra for reprint permission.

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CARSTAR Conference To Be Held July 10–12

As it celebrates its 30th anniversary, CARSTAR is planning a gathering in Chicago this summer. CARSTAR will host the CARSTAR Acceleration 2019 conference from July 10–12 on the shores of Lake Michigan at the Hilton Chicago. The 2019 CARSTAR conference is the third annual North American event that integrates the U.S. and Canadian conferences. CARSTAR Acceleration 2019 will kick off with a unique “Soul Stroll” walk for cystic fibrosis on Wednesday morning, where the organization will honor the top Shine Month fundraisers and walkers will experience beautiful Grant Park. Opening ceremonies will follow that afternoon, then CARSTAR Conference guests will suit up for an evening at legendary Wrigley Field, where attendees have the opportunity to take simulated batting practice, throw a few pitches and tour the Ivy Confines.

autobodynews.com / MAY 2019 AUTOBODY NEWS

Marcia Seebachan Joins Shops to Back Insurer-OEM Procedure Legislation in Texas as it caught on fire, burning his legs and “exposing the bone in some Marcia Seebachan, one of two oc- places,” she said. cupants who suffered severe injuries Seebachan said her husband following the crash of a vehicle re- couldn’t come to the hearing, doubtpaired outside of OEM procedures, ing that he could “endure this.” testified April 9 in support of a bill The jury largely agreed, holding requiring insurers to reimburse those the shop 75 percent responsible for procedures. their suffering and determining John Eagle Collision should pay the SeeSee cover stories this issue. She and her husband, Matthew bachans $31.5 million. (The couple Seebachan, were traveling in the Fit and shop later settled for an undison a 75 mph stretch of road in 2013 closed amount.) when a 2010 Toyota Tundra in the Honda OEM repair procedures other lane hydroplaned into their demand a shop tack-weld the front path, leading to the Fit striking the and rear corner edges of the new roof and then perform a combination of two- and three-plate spot welds and MIG plug welds. More than 100 welds are required by the manufacturer, Seebachan said. John Eagle Collision Center body shop director Boyce Willis in a deposition agreed the facility bonded the roof with 3M 8115 adhesive despite little concrete evidence or engineering knowledge to support the decision — particularly as 3M and Honda instructions state otherwise. Seebachan said testimony at the trial held that were the vehicle repaired correctly, Matthew and Marcia Seebachan were seriously injured her husband’s outcome after their 2010 Honda Fit collided with a hydroplaning would have just been a bro2010 Toyota Tundra. Credit: Tracy Law Firm via PRNewsFoto ken leg—the same limb “I right front quarter of the Tundra in a cleaned his bones on.” T-bone collision. “… It is unconscionable that Experts for the plaintiffs said in companies can undermine this court documents that the severity of process by approving insufficient rethe crash and the Seebachans’ in- pairs,” Seebachan told the commitjuries were the result of John Eagle tee. Doing so keeps Texans from Collision Center adhesive-bonding the Fit’s roof during a $8,500 hail re- making informed decisions, she said. pair for the prior owner. The Seebachans also had no “We were both seriously injured, idea the vehicle had received body and it is exceptional that we are alive work when they bought the Fit, as today,” Marcia Seebachan told the the CARFAX report only reflected Texas House Insurance Committee upholstery work, according to their on on Tuesday during a hearing on attorney Todd Tracy. House Bill 1348. Representatives The report was “completely infrom Texas auto body repair trade accurate,” for the vehicle had actugroups also testified in support. ally been “repaired poorly,” Marcia Seebachan said two of her in- Seebachan agreed. juries should have killed her, and anUsed car sales in Texas outnumother could have. ber new car sales, but those buyers “Matthew was not as fortunate,” are “no less deserving of the right to she said. He was trapped in the car be safe” and make informed deciby John Huetter, RepairerDrivenNews.com

MAY 2019 AUTOBODY NEWS / autobodynews.com

sions, she said. It would never be known how many times fatalities or injuries could have been prevented by a correct repair, but lawmakers could

done correctly,” she said. HB 1348 will hold insurers to OEM repair procedures. It declares that a carrier can’t “disregard a repair operation or cost identified by an estimating system, including the system’s procedural pages and any repair, process, or procedure recommended by the original equipment manufacturer of a part or product.” In addition to demanding insurers acknowledge repair procedure, the bill defines “(r)easonable and necessary amount” as “the amount determined by the original This 2010 Honda Fit burned following a collision with a equipment manufacturer’s hydroplaning 2010 Toyota Tundra. manufacturer and estimating stop some future harm by passing systems required to repair a vehicle to the bill and requiring OEM proce- the condition before the covered damage to the vehicle occurred.” dures. It also defines “like kind and Seebachan said her current vehicle has expereinced hail damage. quality” for aftermarket parts and adBecause of what happened to them, dresses steering and questionable they don’t feel capable of taking it prevailing rate surveys. The bill is currently pending in somewhere for repairs, she said. “We don’t know that it would be the Insurance Committee.

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MAY 2019 AUTOBODY NEWS / autobodynews.com

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Continued from Cover

Short Pays

By educating himself on the collision repair industry, Scott has been able to recover short pays for the shops. However, he recently came up with a new solution for shops that don’t want to wait months or even years to collect on short pays. Through StopShortPays.com, Scott purchases the right to collect on an insurer’s short pay from the shop. Because Scott pays the shop upfront, the process is quick and easy for the shops, eliminating the need to pursue lawsuits. According to Scott, “Once I purchase the right to collect on a shop’s short pay, it becomes my problem. If the insurance company doesn’t settle, I file a lawsuit, which may take a long time to pursue, but I’m used to it.” Scott will purchase short pays up to two years old. Although he’s based in Texas, he has worked with shops in Colorado and New Jersey and said he’s willing and able to buy short pays from shops anywhere in the country.

Of course, shops who sell the right to collect on short pays receive only a percentage of the original short pay amount, up to 60 percent, and this percentage varies based on the strength of the shop’s documentation. Scott explained, “Some short pays are easier to collect on than others. We need to see an invoice showing what work the shop performed, how much was charged, the amount paid and the outstanding balance. A lot of shops change their invoices to match the insurer’s estimates, making it difficult to pursue the short pay in court because it appears as though the shop was paid in full. “Some shops’ documentation states they ‘agree to repair per the insurer estimate,’ and I don’t like those because it sounds like they’re agreeing to accept what the insurer wants to pay. Other shops make it clear that they have established prices and will accept payment from the insurer but the customer is responsible for the balance. These are much easier to pursue and receive payment on.” If a shop’s documentation isn’t strong enough to hold up in court, Scott may offer a smaller percentage

MAY 2019 AUTOBODY NEWS / autobodynews.com

of the short pay amount, or he may provide coaching on how to organize their documentation in the future. Scott offered advice to shops on ensuring their documentation is as strong as possible. “The customer should sign an authorization that the shop performing the repairs will bill the insurance company but is not waiving their right to collect payment in full,” he said. “The authorization should make it clear that the shop expects to receive the complete amount they invoice. Pre- and post-scanning documentation is helpful for proving what repairs were completed, but the invoice is the most important part and must clearly indicate what work was completed, the charges presented, the amount paid by the insurer, and the balance due.” The goal of StopShortPays.com is to help shops recover short pay losses without engaging in complicated, time-consuming legal processes. According to Scott, “Our process gives shops access to capital they didn’t think they had without the hassle of pursuing litigation themselves.” For more information, visit: StopShortPays.com.

Modules Added to Estimatescrubber.Com

VehicleOwnersGuide.com, a provider of technology, connectivity and information solutions to the Collision Repair market, announced the addition of customizable estimating SOP’s and consumer engagement modules to EstimateScrubber.com. Subscribers can now customize scrubber review results (SOP’s) using their shop specific verbiage and attached documentation in place of the default review results. Shops can create estimating SOP’s for individual insurance companies, vehicle manufacturers, fleet, walk-in or other customers. Estimating SOP’s leverage knowledge across all estimators in real time. It take the knowledge of the best shop estimator and makes it available to everybody. It also provides a mechanism for managers/ owners to provide instructions to their estimators. It has a place in small, large and MSO shops.

Honda, Acura Recall 1.1 Million Vehicles Over Takata Airbags by David A. Wood, CarComplaints.com

We thank CarComplaints.com for reprint permission. Honda is recalling more than 1.1 million Honda and Acura vehicles that were previously recalled, or the airbags were used as replacements to prevent the inflators from exploding. • • • • • • • • • • • • • • • • • •

2003 Acura 3.2CL 2013-2016 Acura ILX 2013-2014 Acura ILX Hybrid 2003-2006 Acura MDX 2007-2016 Acura RDX 2002-2003 Acura 3.2TL 2004-2006 and 2009-2014 Acura TL 2010-2013 Acura ZDX 2001-2007 and 2009 Honda Accord 2001-2005 Honda Civic 2003-2005 Honda Civic Hybrid 2001-2005 Honda Civic GX NGV 2002-2007 and 2010-2011 Honda CR-V 2003-2011 Honda Element 2007 Honda Fit 2002-2004 Honda Odyssey 2003-2008 Honda Pilot 2006-2014 Honda Ridgeline

The vehicles were originally recalled to replace the driver’s side frontal Takata airbag inflators with different Takata inflators that con-

tained a desiccant to keep the chemical propellant dry. The chemical, ammonium nitrate, can become unstable when exposed to heat and moisture over time. Honda believed replacing the non-desiccated airbag inflators with desiccated inflators would solve the problem of ruptured inflators. But the crash of a 2004 Honda Odyssey altered that perception when the desiccated inflator exploded and injured the driver’s arm. The automaker opened an investigation and determined manufacturing errors occurred at a Takata plant in Mexico where the inflators were exposed to excessive moisture.

This can cause over-pressurized airbag deployments that send metal debris into the vehicle cabins and the occupants.

Honda says affected customers will be mailed recall notices April 17, but Honda and Acura dealerships already have the required replacement parts in stock. Owners shouldn’t wait to contact their Honda and Acura dealers to schedule appointments to have the driver-side inflators replaced. Free rental cars are available in the event replacement airbag inflators or airbag modules are temporarily unavailable. Honda owners with questions or concerns should call 888-2342138 and ask about recall number O41. Acura owners may call the automaker at 888-234-2138 and ask

for information about recall number U40. CarComplaints.com has complaints from owners of the Acura and Honda vehicles named in the Takata airbag recall: • • • • • • • • • • • • • • • •

Acura CL Acura ILX Acura ILX Hybrid Acura MDX Acura RDX Acura TL Acura ZDX Honda Accord Honda Civic Honda Civic Hybrid Honda CR-V Honda Element Honda Fit Honda Odyssey Honda Pilot Honda Ridgeline

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autobodynews.com / MAY 2019 AUTOBODY NEWS

Industry Insight with John Yoswick

—John Yoswick is a freelance writer based in Portland, Oregon who has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.

Panel Discusses Strategies for Shops Dealing with ADAS with Sublet Vendors, Insurers Just getting a basic invoice from a dealership or other vendor for any advanced driver assistance systems (ADAS) calibration work that your shop sublets to those companies may not be adequate evidence that the work was done fully and correctly, two speakers said at the Collision Industry Conference (CIC) earlier this year. “Remember, the liability still remains with you since you chose that third-party,” Roger Cada of Accountable Estimating said. “Some third-party providers don’t do all the things you think they should be doing. So how do you keep records to show that it was done correctly?” Jake Rodenroth of asTech noted that many of these calibrations are new procedures for everybody: dealerships, glass providers, mechanical repair shops—even companies such as his that are establishing centers specifically to conduct calibrations.

Jake Rodenroth of asTech said shops shouldn’t presume dealerships or other sublet providers necessarily know all the necessary steps of ADAS calibrations

“Don’t assume that they did it right,” Rodenroth said. “You really need to audit them. To do that, you need to understand the requirements yourself. Just handing if off to a sublet is not good enough.” Those requirements for calibration of the blind-spot monitoring system on a 2018 Honda CR-V, for example, include ensuring the suspension has not been modified, that the tire size and pressure are correct, that the gas tank is full, that all excess cargo is removed, and that there are no objects on the instrument panel, 30

hood or windshield. Rodenroth suggests getting documentation that tire pressures were checked, getting a receipt for fuel that was purchased, and documenting vehicle mileage before and after calibration to help ensure required test drives were done. “If you’re using dealers or [any sublet provider], go there and take photos for the claim file of the vehicle actually set up with the targets,” Rodenroth advised. “That helps document and justify that it was done.” One panel discussion at the conference revolved around the relationship between insurers and repairers when it comes to the increasing technology of vehicles. There have been efforts in at least six states this year to enact legislation requiring shops to follow OEM repair procedures and for insurance companies to pay those shops accordingly. But one repairer said that while such mandates could be helpful, they won’t resolve all shop-insurer disputes, in part because in some instances those OEM procedures are somewhat vague. “We need some more help from the manufacturers with some clarity,” said Darrell Amberson of LaMettry’s Collision in Minnesota. “Getting into the calibrations, I’m seeing some wording, for example, that says calibrate a radar system if there’s an impact in the surrounding area. What is the ‘surrounding area’? Is that within a foot, 2 feet, 3 feet? We need some help on that.” He said other procedures call for a calibration of a particular system “in the event of a collision,” without further defining if that means any type of collision, no matter how minor. “What is a collision? I find myself often having discussions with insurance companies, testing us on that,” Amberson said. “At what severity do we do this step?” Panelists at CIC were asked how a shop can address an insurer who says that decisions about whether they pay for vehicle scanning are made on a “case-by-case basis,” given that au-

MAY 2019 AUTOBODY NEWS / autobodynews.com

tomaker repair procedures call for such scanning on virtually every vehicle shops are repairing. Amberson said that when he presses someone making

Darrell Amberson of LaMettry’s Collision in Minnesota said he addresses insurers saying they pay for scanning on a case-by-case basis by asking for their criteria in making those decisions

that statement, they “have a hard time articulating the standards.” “I ask them, ‘What’s the criteria? When do you pay for it and when do

you not?’ Often, they struggle to answer that,” Amberson said. “For us to come up with standards on our own, by our own assumptions, frankly just doesn’t make sense. When it comes to electronics, the only way to look at a system is through a scan tool. So under what circumstances do I look at it and when do I not? They struggle to answer that. So for our company, we have the philosophy that whether we get paid for it or not, we do a pre- and post-repair scan on every car. If nothing else, I can sleep at night by doing that.” Jason Bartanen, director of industry technical relations for I-CAR, compared scanning to 3-dimensional measuring, saying “it’s impossible to analyze all the damage on a vehicle” without it. Rodenroth said he tells shops to put the automaker position stateSee Dealing with ADAS, Page 38

autobodynews.com / MAY 2019 AUTOBODY NEWS

P HONDA ARIZONA

Chapman Honda Tucson

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Earnhardt Honda Avondale

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MAY 2019 AUTOBODY NEWS / autobodynews.com

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

OKLAHOMA

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Dept. Hours: M-F 7-7; Sat 8-5 darryldotsy@rustywallis.com

McDavid Honda Irving

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TEXAS

Walker Honda Alexandria

318-448-8255 318-445-6677 Dept. Hours: M-F 7:30-5:30 hondaparts@walkerautomotive.com

Bankston Honda Lewisville

800-344-8611 972-219-0021

Garcia Honda Albuquerque

800-677-6632 505-260-5002 Dept. Hours: M-F 7:30-6; Sat 8:30-5 Jscott@garciacars.com OKLAHOMA

Don Carlton Honda Tulsa

800-722-2379 918-622-9670 Dept. Hours: M-Sat 7-6 hondaparts@doncarlton.com

Fowler Honda Nor man

866-369-5376 405-573-5719 Dept. Hours: M-F 7-9; Sat 8-4 parts@fowlerhonda.com

LOUISIANA

800-492-4464 972-790-6003

Dept. Hours: M-F 7-7; Sat 8-5 www.bankstonhonda.com

Dept. Hours: M-F 8-6 srichardson@mcdavid.com

Fiesta Honda

Honda of San Marcos

NEW MEXICO

San Antonio

800-727-8705 210-340-0831

Cleo Bay Honda

Kelly Grimsley Honda Odessa

844-453-5594 432-334-6632

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

Dept. Hours: M-F 7:30-6; Sat 8-12 april@kellygrimsley.com

Honda Cars of McKinney

Russell & Smith Honda

McKinney

972-569-4276 972-569-4222 Dept. Hours: M-F 7-7; Sat 7-5 Gene.chenault@hendrickauto.com

Dept. Hours: M-F 8-6 sales@wholesalepartsdirect.com

San Marcos

Dept. Hours: M-F 7:30-6; Sat 9-5 csmith@hondasanmarcos.com

877-253-6229 254-699-2478

800-234-4441 512-458-2910

866-392-1313 512-392-1313

Dept. Hours: M-F 8-5; Sat 8-5 hondaparts@safiestahonda.com

Killeen

Austin

Ir ving

Houston

800-833-0180 713-663-4266 Dept. Hours: M-F 8-6; Sat 7-4 ggregory@russellsmith.com

TEXAS

UTAH

Acura of Baton Rouge

Autonation Acura

David McDavid Acura

Baton Rouge

League C i t y

Plano

Salt Lake City

866-733-2861 225-756-6166

800-749-6227 713-371-4700

972-964-6044

800-234-0875 801-323-0492

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

Dept. Hours: M-F 7-7; Sat 8-5 CarranzaB1@autonation.com

Walker Acura

David McDavid Acura

Metairie

Aus t i n

800-359-8555 504-465-8555

800-575-3553 512-401-5976

Dept. Hours: M-F 7:30-6; Sat 8-2 parts@walkeracura.com

Dept. Hours: M-F 7-7; Sat 8-5 mkratky@mcdavid.com

Dept. Hours: M-F 7-7; Sat 8-5 dgrajczyk@mcdavid.com

Sterling McCall Acura Houston

713-596-2337 713-596-2338 Dept. Hours: M-F 7:30-7; Sat 7:30-4 jlambert@sterlingmccallacura.com

Jody Wilkinson Acura Dept. Hours: M-F 7:30-6; Sat 8-5 rick@jodywilkinson.com

Mike Hale Acura Murray

800-292-4595 801-263-0202 Dept. Hours: M-F 7:30-6; Sat 7:30-5 pgoold@mikehale.com

OKLAHOMA

Don Carlton Acura of Tulsa Tu l s a

888-550-7278 918-664-2300 Dept. Hours: M-Sat 7-6 acuraparts@doncarlton.com

autobodynews.com / MAY 2019 AUTOBODY NEWS

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 1970s - Part 1 - The Collision Industry Starts to Mature If the 1940s and 1950s marked the industry’s earliest “modern” beginnings and the 1960s signified the industry’s “grammar school” years, the 1970s could be seen as its teenage years. Changes were happening, signs of maturity were beginning to show, and yes… there were some “growing pains.” Veterans of that period claim it was like operating in the Wild West. After calling on a shop, one former insurance adjuster noted, it was not uncommon to return to one’s car to find an envelope stuffed with $100 bills over the visor to ensure continued “favorable treatment.” Another veteran noted that during that time, the collision estimating guides were competing for market share. Each one tried to outdo the other by building in repair times here and there and then showing the

prospective shop how much more time and money they could make with their brand of estimating guide. It was not until the insurance companies started writing their own estimates that they started noticing the differences. It was a time of what one industry veteran called the “Infamous Two-Man Shop.” Young technicians wanting to strike out on their own, either because they didn’t like the work they were being handed or because they thought they would make a bundle of money as an owner. They would leave their shop, rent a small garage and start their own business. It wouldn’t be long before they’d realize they needed some help and would recruit a buddy from their former shop. They then would go to all the old shop’s insurance contacts, tell them they would do the work a little cheaper, and the cars would start to

MAY 2019 AUTOBODY NEWS / autobodynews.com

roll in. Unfortunately, in those days before job-costing, the new shop never knew if they were profiting or not. Many simply went bankrupt and closed the doors. The 1970s saw the seeds sown for what would become the model for 21st century collision shops. Before the days of ABRA, CARSTAR and Caliber, Pittsburgh industrialist Ward Wickwire signed the first franchising agreement to open an American Way International body shop in Pittsburgh, an early model of the MSO concept. AWI never became a household name and was never nationally recognized, but this period would give rise to those who were. In 1972, Anthony A. Martino opened his first auto painting shop in Wilmington, DE. Using the first letter of his last name and first letter of his first and middle name, he called his new business Maaco Auto

Painting. He soon opened additional shops that provided a good overall paint job at a reasonable cost. By1977, he had almost 200 locations. Innovative ideas were popping up all over the place. Early 1972 saw a short trade magazine article suggesting that a car should be totally torn-down in order to write a complete and correct damage estimate. This was perhaps the first time this was mentioned in a trade magazine, indicating this might have been a “novel” concept. Industry associations were growing in numbers, strength, and savvy. State and regional associations were popping up all over the place and joining with national associations. The industry’s voice was getting louder. This was spurred by the growth in number and popularity of industry trade magazines. It was be-

coming easier for a shop owner to see what was going on outside his four walls and easier for them to take an active part in the industry. Traditional part jobbers had been carrying paint and related collision repair products since the 1930s. By 1970, of the roughly 25,000 full line automotive parts jobbers in the U.S., about 15,000 carried paint and body supplies to one extent or another, but only 2,000 or so actually promoted the sales of these items. This left the door wide open through the 1960s and early 1970s for a slightly different business model—that of the paint, body and equipment (PBE) jobber. The Automotive Service Industry Association (ASIA) defined a PBE jobber as a store for whom at least 70 percent of their sales come from paint, abrasives, tape, collision repair equipment and the like sold to body shops. At a 1972 industry show, ASIA recognized the PBE jobber as an official industry entity. Automotive technology continued to move forward—although it was not always a pretty sight. In 1973, the 5-mph bumper was intro-

duced. Still made of chromed steel, the bumper was supported on the frame by shock-absorber units allowing the bumper to move in and out. In 1974, similar bumpers became standard equipment for the rear of the car. The bumpers were described as “monstrosities” and appear to have been added to the car as an afterthought because essentially, they were. In the 1970s, vehicle engines and transmissions were more durable but lacked today’s e-coat to prevent rusting. An otherwise well-running car would rust out in 3–4 years, especially in areas where road crews used salt and sand on snow-covered roads. Salt, water, and sand, combined with exposed sheet metal all contributed to some serious rust problems. Fixing rust holes correctly and legitimately was time-consuming and expensive … and not covered by insurance. In many cases, the entire panel had to be replaced, including rocker panel rear quarters or front fenders. And even when panels were replaced, rust would break through someplace else. It was like a cancer.

Used-car dealers found themselves with lots full of otherwise good used cars—except for the rust holes—that they wanted fixed as quickly and cheaply as possible. Left to their own devices and being paid on a “percar” basis, creative body technicians found quick and easy, albeit non-permanent, ways to fill the holes and make the car look good—and just long enough to get it sold. This led to some sore customers, and a black eye for the used car industry and body repair industry. Paint technology started to change in the 1970s as well. Paints became more durable but had some unforeseen consequences. In the early 1970s, DuPont introduced its Centari line of paint—a polyurethane-based product that required an isocyanate hardener. Little thought was given at the time to safety measures and little was known about the effects of isocyanates. Suddenly, painters began experiencing asthma symptoms. Many ended up in their local hospital emergency room. Depending on their length of exposure or how they were exposed to it—either by inhaling it or being exposed by touch—the ill ef-

See The 1970s, Page 36

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fects could have been short-lived or permanent. The ill effects of shooting Centari and paints with similar chemical properties were not the only hazards body shops faced in the ‘70s. In the days before we as a country and as a culture grew environmentally conscious, body shops had some horrendous ways of disposing of highly toxic waste products. Many times, leftover paint was stored for a while until it gelled, then was thrown in the trash. Other times, it would be thrown on waste paper and burned. Some shops threw all waste products, including paint, thinner and primer, into a 55-gallon drum. When the drum was full, it was dumped off in some remote area—sometimes with the drum and all, or sometimes just the contents were dumped and the drum was reused. Some poured the barrel’s contents on the gravel parts of their lots or driveways to keep the dust down. The Resource Conservation and Recovery Act (RCRA), enacted in 1976, was the principal federal law in the United States governing the disposal of solid

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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.

Industry Misses 2 Important Aspects of John Eagle Collision Case In the 18 months since a Texas couple was awarded $42 million by a jury who found a dealership body shop had improperly repaired the vehicle in which the couple were injured in a subsequent accident, I’ve probably been asked about the case at least 20 times a week. Even now, I continue to get phone calls, emails and questions about it from those in my classes. Based on those exchanges, I think there are two important things related to what happened that a lot of people seem to miss. The first is a fundamental difference between a warranty and a liability. We all understand a warranty, defined as the “written guarantee issued to a purchaser.” Let’s say you repair Suzy Smith’s car, and she later sells that car to Joe Brown. Joe later notices the paint is starting to flake off the bumper, and he brings the car back to your shop. Under the terms of the warranties I see most shops providing to their customers, you can kick Joe to the curb. Most shop warranties say the work is guaranteed only to the customer who had the work done at the shop. It doesn’t transfer to any subsequent owners of

that vehicle. But liability, defined as “the state of being responsible for something,” is different. I will preface this by saying I’m not an attorney, but from my understanding, if you repaired Suzy Smith’s car and didn’t do something related to the safety of that vehicle, you could be held liable even if it’s Joe Brown, as a subsequent owner of that car, who is injured in the vehicle based in whole or in part on the repairs you did. That’s essentially what happened in the Texas lawsuit. Matthew and Marcia Seebachan purchased a used Honda Fit that had previously been repaired by the John Eagle Collision Center. If the Seebachans had decided the paint didn’t match and took it back to the dealership, John Eagle wouldn’t have to warranty the work, presuming the shop’s warranty extends only to the owner who had the work done to the car. But the shop was still found liable for the couple’s injuries in the subsequent accident. The jury ruled the repairs made to the vehicle before the Seebachans owned it weren’t performed correctly. The replacement roof the dealership had put on the vehicle

Continued from Page 35

gust 1971 issue of Automotive Service and Body News magazine noted that shop owners had to comply with federal inspectors who were able to stop in and inspect their shop at any time with fines for safety infractions reaching as high as $10,000. ASBN suggested 10 areas where inspectors were liable to look for safety hazards. The article also noted that the federal government was poised to “plague shop owners.” Shop owners now had something else to keep them awake at night.

The 1970s

waste and hazardous waste, which essentially ended shops’ practices of indiscriminant waste-dumping. And if managing hazardous waste wasn’t enough to give shop owners a headache, OSHA entered the industry lexicon in the early ‘70s as well. The Occupational Safety and Health Act of 1970 took effect April 28, 1971. An article in the Au-

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was bonded rather than welded to the vehicle as called for by Honda—and the roof’s separation in the Seebachan’s collision, the jury found, led to the degree of their injuries. To my way of thinking, that means you’re still potentially liable for the repairs you made to a vehicle eight years ago, even if that vehicle has been resold two, three or 10 times since. I see too many shops confusing “warranty” and “liability.” I haven’t studied all the documents and transcripts from the case, but the second key point I think a lot of people miss is this: If you tout your shop as being certified by certain automakers, yet you fail to follow the repair procedures called for by those automakers, that could be construed as negligence, which is defined as “failure to take proper care in doing something.” Again, I’m not an attorney. But

the legal argument that could be made goes something like this: As a car owner, I saw on your website, in your advertisement and on your signage at your shop that you’re certified by ABC Automaker. That tells me you are going to do everything ABC Automaker says to do in repairing one of their vehicles. If you deviate from that, that’s negligence on your part because you portrayed yourself as being certified and knowledgeable in repairing ABC Automaker’s vehicles. I think that could conceivably extend beyond just automaker certifications. Think about other ways you portray yourself as a qualified expert, whether it be the I-CAR Gold Class designation, or training or certifications from other organizations. Warranty, liability and negligence are three terms this industry really needs to understand.

autobodynews.com / MAY 2019 AUTOBODY NEWS

Legislation To Enhance Cybersecurity Training

Two bills approved by a U.S. Senate committee in late March would provide ASA members one more tool to protect their shops from cyber threats. On March 27, the U.S. Senate Committee on Small Business and Entrepreneurship held its first markup of the 116th Congress approving three bills. Two of the bills being considered, S. 771, the Small Business Cyber Training Act and S. 772, the SBA Cyber Awareness Act, were both introduced by Chairman Marco Rubio (RFlorida). ASA wants to ensure its members have the best training and resources available to protect their shops and their customers from those who would do harm. If passed, the “two bills will give small businesses the tools they need to safeguard themselves against the growing cybersecurity risks of the 21st century,” Sen. Rubio said in a news release.

Continued from Page 30

Dealing with ADAS

ments on scanning away and instead pull the actual specific repair procedures for the job. “There’s a lot of opportunity to justify the diagnostic requirements [aside from] just the position statements.” Rodenroth said. Greg Potter of the Equipment and Tool Institute pointed out that you can’t go to your doctor’s office without them doing some basic screening. “If I go in there just to get a signature, I’m getting weighed and my blood pressure taken,” Potter said. “It’s unfathomable to me to think that you’re going to work on a vehicle and not [scan] it. If there’s something very wrong with it, and you give it back to the customer [without doing] anything about it, and then something happens, I think you’re going to have some explaining to do.” Cada, who had a 30-year career in insurance, said the key is tying the need for the scan to “the event” covered under the insurance policy.

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“If you can relate that back by documentation to the types of damages on the car, then you’re going to have success,” Cada said. “But if you’re scanning and find that what’s in there is nothing that was related to this loss, then it’s going to have to fall back on somebody else, because it’s probably not covered by the contract.” Panelists were asked how a shop can address being challenged by an insurer on increases in total repair costs when such increases are largely being driven by factors, such as vehicle technology and materials, beyond the shop’s control. “I think the opportunity for repairers is to have more complete line notes that explain what you can and cannot do with those substrates or electronics,” Rodenroth suggested. He also suggested pointing to instances where the shop used OEM repair procedures—such as those offered by some automakers for repairing headlight brackets—rather than just installing a new part. “That way it doesn’t appear to be too one-sided,” Rodenroth said. “Bumper covers are another opportu-

nity. Some OEMs say no, you can’t repair that bumper cover because of ADAS technology. But GM and Audi, for example, give direction about what you can and cannot do with regards to repairs. When you encounter those repair opportunities, and it is a good repair supported by the repair manual, certainly bring it to the bill-payer’s attention.” Amberson offered his own straightforward suggestion. “My advice to the repairer is simply to do the right thing,” he said. “Fix the car properly. Pay attention to the repair procedures. And let the chips fall where they may. We’re businesses. We deserve to be paid for what we’re doing. Nothing more and nothing less. I know it’s a challenge sometimes to convince an insurer they have to pay for extra steps. Statistically, we know that shops that scan cars and perform calibrations [have] a little higher severity than other shops. Our cycle time is a little worse than some other shops. But we’re doing the right thing on a more sophisticated, safer car. It’s to be expected they’re not going to be as inexpensive to repair.”

autobodynews.com / MAY 2019 AUTOBODY NEWS

Day Job/Night Job with Ed Attanasio

From Rock Star to Crash Star

owner of 1Collision Network—but they nearly did. It all began when Keller saw the Beatles perform on “The Ed Sullivan Show” when he was 10 years old. “I knew right then that I wanted to be a musician and specifically a drummer,” he said. “I was immediately drawn to Ringo and shortly after that, I began drumming along to songs on the radio on an improvised drum set that consisted of two upside-down wastebaskets and a pair of rulers. I cut out a picture of a real drum set from a JCPenney catalog and taped it to the bathroom mirror, and I guess my parents got the hint because I The Baxters consisted of (from left) drummer Jim Keller, got an $89.95 three-piece lead guitarist Martin Krohne and bass player Greg Scott drum set for Christmas.” Keller learned how to monetize Things didn’t go exactly that way for Jim Keller, collision lifer and his love for the drums and entered In the song “Takin’ Care of Business” by Bachman-Turner Overdrive, the band offers their prescribed formula for rock star success: “Get a secondhand guitar, chances are you’ll go far if you get in with the right bunch of fellows.”

MAY 2019 AUTOBODY NEWS / autobodynews.com

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

the collision repair industry at the before joining a few local rock bands and playing cover songs by Jimi same time. “At 12, I was making $25 cash Hendrix and Savoy Brown. “We played a lot of blues-influon Saturday nights performing at weddings with a polka band,” he enced music and acid rock,” he said. said. “I was also working at my “A few years later, a friend of mine friend’s father’s body shop, sanding encouraged me to audition for a band called In a Hot Coma, and I cars, picking up supplies on got the gig.” my bike and driving cusGood things happened tomers home, even though I quickly for In a Hot Coma. obviously didn’t have my The band was soon asked to license yet. I made $40– open up for Cheap Trick right $100 weekly there, which before their debut album on made me the richest kid in Epic was released, Keller town.” Today, Keller is said. After taking some forthe owner of the After several years, mal lessons, Keller started 1Collision Network. The network has Keller left In a Hot Coma playing percussion for his 43 body shops and played in local bands, high school’s band, includand counting including a short stint playing marching band, jazz ening with Howie Epstein, who later semble and orchestra. To become a better drummer, became the longtime bass player for Keller practiced his drums for 90 Tom Petty and the Heartbreakers, as minutes in his basement every day well as The Shivvers, a popular Mil-

waukee power pop band. He then joined a Rockford-based pop group called The Names until he joined The Baxters with Martin Krohne on guitar and Greg Scott on bass. After capturing second place at a State Fair Battle Of The Bands competition in West Allis, WI, The Baxters made their debut at a popular

later, “Don’t Run Away” appeared on a CD featuring iconic Milwaukee band Great Lost Brew Wave, while “What Ya Gonna Do” made it onto a 2001 CD set called History in 3 Chords. In addition to Ringo Starr, Keller said, several other legendary drummers have influenced him over

punk club, Zak’s, Milwaukee’s first punk club, on New Year’s Eve. For the next two years, the trio wrote original songs and played shows in cities such as Rockford, Chicago, Milwaukee and Madison. With 200 original songs in their repertoire, The Baxters came up with two tunes that got some attention in 1980: “What Ya Gonna Do” and “Don’t Run Away,” both of which can be heard on YouTube. The band recorded the songs at Star Studios on National Avenue but couldn’t put together enough money to release a record. Seventeen years

the years, such as John Bonham (Led Zeppelin); Keith Moon (The Who) and Bun E. Carlos (Cheap Trick). Keller got to know Carlos when his band opened for Cheap Trick and helped him in one unique way. “I would use the same drumsticks over and over and beat them up because they’re not inexpensive,” he said. “One day, I came offstage and Bun E. saw that my sticks were all nicked up, so he got one of his roadies to give me a large box full of his used sticks. I used them for the next two years and will never forget Bun E. for that!”

“At 12, I was making $25 cash on Saturday nights performing at weddings with a polka band,” — Jim Keller

The Baxters broke up at the end of 1981. Keller opened a body shop and put his drumsticks down, while his two bandmates formed a top 40 band called Tommy Gunn. “It was the right time for me to give up my rock star dreams and pursue a career, as well as get married and have some kids,” he said.

Keller now plays the guitar and piano to relax and unwind

In 1985, Keller purchased his second shop and subsequently merged them with a large MSO and became a partner in a business that eventually operated 27 shops. He then got involved with Crash 1 and in 2013, it became 1Collision, which was headquartered in Milwaukee, WI. 1Collision has grown from eight

shops to 43, and Keller is signing up new ones all the time, he said. “We’ve proven that we can help our network shops by maintaining excellent relationships with our insurance company partners, processing claims quickly, using the latest claim processing and OEM repair technologies and processes by the implementation of our SMART Performance System. We also enable them to succeed by utilizing our marketing, business strategy, HR & recruiting, equipment and material purchasing programs, financial management programs, and utilizing O.E. parts. We also offer consumers a written, limited lifetime warranty,” he said. Although he is now a successful businessman who is well-known in the collision repair industry, Keller looks back fondly at his years as a rocker and still loves playing music, he said. “I play the guitar and the piano to relax and unwind, but not the drums anymore,” he said. “The Baxters never hit big, but it was a great experience, and I’m happy to know that people still listen to our songs almost 40 years later.”

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Truck Topics with Gary Ledoux

Truck Topics 1: Heavy Duty Events Address Collision Issues People have been repairing collisiondamaged trucks since August Fruehauf stuck a trailer behind a Ford Model T in 1914 to create the first semi-trailer rig. Oddly, it is only within the last year or so—over 100 years later— that the collision repair side of the trucking business started to coalesce as an industry. The industry’s development was recently accelerated by two key events.

TMC Event The Technology and Maintenance Council, better known simply as the TMC, has been around since 1956. It brings fleets, manufacturers, suppliers and other industry stakeholders together to solve the industry’s toughest

(l to r) Brad Keiterand and Nick Notte

problems regarding transportation equipment. The TMC is an integral part of the American Trucking Association, formed in 1933 to represent the nation’s motor carrier industry. The TMC’s latest event, dubbed “Beyond the Frontier of Maintenance,” was held at the Georgia World Congress Center in Atlanta from March 18–21. The main focus of the TMC has traditionally been fleet maintenance and mechanical repair, although a year ago the organization started looking at the complexities and dynamics of HD collision repair. Repair Roadmap Everyone knows that it’s bad enough 42

to be in a collision with the family car, even if there aren’t any injuries. But when a commercial truck is involved in a collision, there is a lot more to consider. This is explored in the “Repair Procedures Roadmap” initiative chaired by Joey Fassett, president of Al’s Auto and Truck Repair in Exeter, NH. The Roadmap begins with “preplanning” for an accident along a truck’s usual route. (Trucks are rarely near their home port when an accident occurs.) It also covers how to deal with damaged freight or preserving freight, how to preserve and deal with accident evidence, and more.

Collision Repair Guidelines Unlike the auto industry, the HD truck OE manufacturers do not provide collision repair procedures and guidelines, or even position statements on collision repair, for several reasons. The HD industry is then left to its own devices to create its own repair procedures based on best practices, accepted protocols and what information they can glean from the manufacturers of a truck’s component parts. Chris Sterwerf of Fairfield Auto and Truck Service in Fairfield, OH, is the chairman of TMC’s Heavy Duty Collision Repair Guideline Task Force and is leading the charge to create HD collision repair procedures. Currently, exploration and guidelines for frame repair and refinishing are on the table. During a break-out meeting at the TMC event, Sterwerf took several other suggestions for areas to explore, including how and when to check other chassis components such as steering mechanisms. HD Repair Forum Event On April 2 and 3, the second annual HD Repair Forum was held in Fort Worth, TX, drawing an enthusiastic crowd of about 250 HD repairers, shop owners, consultants, technical advisors and OE executives. It was founded in 2018 by Brian Nessen, perhaps best known for his work with the Stone Fort Group managing

MAY 2019 AUTOBODY NEWS / autobodynews.com

the auto collision industry’s NACE show, and long-time collision industry veteran Dan Risley, known for his work with Automotive Service Association and the Society of Collision Repair Specialists.

(l to r) Brian Nessen presents John Spoto with the Service Provider of the Year award

The Forum featured a wide array of speakers from several different disciplines within the truck and auto col-

lision repair industry. Among those featured on the truck OE side were Bill Kahn, applications engineer for Peterbilt Motors; T.J. O’Hanlon, director of private label brands for Navistar; and Gregory Treinen, advanced technology marketing manager for Daimler representing Freightliner and Western Star Trucks. Also featured were presentations from Bob Morris of the Gas Technology Institute and Wally Dubno, sales managers for Clean Energy Fuels, who talked about the future of CNG and LNG as fuels for heavy trucks and some of the things about which repairers need to be cautious. Among the other presenters were two representatives from 3M who provided highly detailed presentations on practical repair of HD trucks, a representative from Chief who addressed HD truck damage analysis, See HD Events, Page 47

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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

Best Practices When Interpreting & Documenting Scan Data, Trouble Codes & Calibrations Today’s vehicles and those manufactured over the last two decades contain a wealth of electronic information that can help shops effectively and efficiently perform a proper repair, according to Chuck Olsen, executive director of AirPro Diagnostics. “If we don’t look for all of the clues there are within the system, it will make the job much more difficult than it has to be,” he said. As a result, Olsen said, a capable scan tool is a critical component of strategy-based diagnostics. “They give order and method on how we diagnose, service and reprogram vehicle control modules on these increasingly complex inter-related systems to restore vehicles to sound operation condition,” he explained. With more than 40 years of experience in the automotive repair and technology industry, Olsen recently shared insights on interpreting and documenting scan data, trouble codes and calibrations during a CIECAst webinar. The following is a summary from the presentation:

scan tool data definitive or infallible. Understanding and being able to fully employ the functionality available to us with modern and emerging scan

Q: A:

What is essential to know about scan tools today?

For many in the industry, there’s a certain mystique in relation to using a scan tool and what they can do. Scan tools are engineered and designed to be directly connected to the vehicle utilizing the most current diagnostic software available. Depending on the tool, it might only read out diagnostic trouble codes (DLCs) or can have additional capabilities such as calibrating or programming modules. Most scan tools require a pass-through device with a subscription to an OEM provider to fully reprogram the modules. Scan tools have many functions and ways they can be used, but the most common is doing a pre-scan, post-scan or what is known as a health check of a car. This is always the starting point. By no means are scan tools and 44

you know what your tools can and cannot do. In certain instances, some functionality may have to be given up in order to achieve a lower price point or you’ll need to access the dealer tool. Be honest with yourself about what your shop cannot do and be prepared to sublet or decline the job if it’s the best option. Remember that honesty still resonates as a reason your customers do business with you.

What needs to be analyzed when you are going through a strategy-based diagnostics process?

First, it’s important to visually inspect the car and determine what is broken, damaged, leaking, etc. Next, look at the symptoms of what is not working properly, such as the malfunction indicator lamps or system functional checks. The third step is to reference the service information. This

Sean P at AirPro Diagnostics’ Calibration & Testing Center requests scans directly from his cell phone to complete a calibration on a 2019 Toyota

tools are acquired skills. It’s important that our knowledge and skills keep pace with technology changes and the associated scan tool functionality.

I’m often asked this question. Aftermarket top tier scan tools are now competitive with OEM dealer scan tools; however, they are not exactly the same. I’m not an advocate of one over the other. It’s necessary to understand their capabilities and the strengths and weaknesses of each. There is no one aftermarket or OEM scan tool that can do everything on all vehicles. The key is in the mix of vehicles that you are repairing or servicing. You’ll want to look at the brands your shop specializes in, if any, and then use the correct tool or service for the job at hand. There are certain functions, procedures and OEM certification requirements that will dictate when OEM scan tool applications are your only option. The one caveat is to make sure

MAY 2019 AUTOBODY NEWS / autobodynews.com

What is important to know about accessing the raw electronic data from the scan tool?

The raw data is managed by several different specifications and can be characterized as languages that the vehicle must adhere to in order to communicate. You need a tool that can speak these languages. The software adopted by all OEMs allows the independent aftermarket the ability to reprogram, diagnose and access data from the electronic control units (ECUs) without the need for

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Can you share some of the differences between an aftermarket and OEM scan tool?

includes the inspection requirements, repair procedures, testing procedures, option content and calibration requirements. Finally, it’s time to check the electronic data from the vehicle. This includes using a capable scan tool to determine the DTCs, live data stream values and calibration verification.

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a dealer-only tool. The OEMs provide the scan tool application programs available for independent purchase with user license agreements.

Q: A:

Why should a shop always conduct research?

For every single repair, research is required. That can be sourced from the OEM as well as third-party suppliers that purchase the service information and repost it. There will be times you’ll have to go to the OEM direct subscription to obtain the latest updates. You must review every repair and procedure performed on a vehicle to identify calibration or programming procedures that will need to be performed with a scan tool and also to determine that the scan tool being used is capable of the procedure. Part of this is knowing that most times, scanning a car is not going to alert you that a calibration is needed or must be performed. This is almost always found in the service information. The only exception is if a component has been replaced that has never been calibrated. In this instance, we’ll often

see a code set for a calibration requirement, but you can’t count on it. It’s imperative that you review the repair procedures and find out if a calibration needs to be done. You’ll

Technicians test the calibrations on a 2019 Toyota at the Calibration & Testing Center

then need a capable scan tool and, in many cases, additional equipment such as targets or seat weights to execute that calibration.

Is it common for a scan tool to miss a DTC?

MAY 2019 AUTOBODY NEWS / autobodynews.com

With the complexity of today’s vehicles, there is always the chance for a scan tool to miss control units or DTCs during a general health check. There are two distinct reasons for this. First is that the non-reporting control units can be filtered out by some scan tools. Although it is rare, you must be aware of it when using a scan tool independently or relying on a service. This is normally caused by an impact at or near the area of the control unit, damaged wiring harness, connector damage, blown fuses or poor ground connections. Another reason is due to a busy automotive network or the control unit returning information slowly because of a large amount of data stored in that module. Modules have timing parameters that must be adhered to, and at times while they are returning large trouble code records, that request can time out and the scan tool will move on and possibly miss something. This is when it is necessary to check systems individually on a vehicle or go back and rerun a scan

multiple times to make sure everything was received. Both OEM and aftermarket scan tools can be subject to this and is why there are so many update requirements with scan tools.

Why should repairers be aware of the build list in the software’s internal database?

When you are reading the scan tool data, be aware that the wrong options can sometimes be reported in the scan tool database. Where we usually see this happen is when there are added accessories or option modifications done by the dealership or the aftermarket. An example is if a customer wants foglamps installed at the dealership; these will not be included in the vehicle option content list and may or may not be accessible by a scan tool. As a result, you must do an inspection and pay close attention to what optional equipment is included.

How can they overcome these issues?

DTCs are just the starting point of drilling down the problem(s) on a vehicle. Each system is made up of a group of components, and it’s important to be aware of them during the diagnosis. We call it Component Level Scanning (CLS). This is much different than just reading trouble codes. With CLS, we get as close to the raw or live data as possible.

Once the car has been repaired, it’s crucial to document everything. This includes what we started with and what we found, what parts we replaced and/or repaired, as well as removed and reinstalled. Also, document what the OEM service information says, the diagnostic procedures and calibrations performed, the functional quality control test results, and even what we did not do—the non-related issues on a vehicle. Documentation helps protects the customer and your business.

What steps should my business take when it comes to privacy?

Chris C completes a scan on a Honda using the HDS software at the AirPro Diagnostics office

CLS gives us a complete picture of the health of the system. In fact, we can determine faults from data streams before they are reported as a DTC by the control unit.

What should be included in the documentation?

A customer needs to know you are going to be accessing data from their vehicle. My advice when it comes to privacy is to incorporate a statement for the customer into your work authorization form and let him or her know you are going to be accessing all types of data to repair the car properly and/or to make decisions on insurance, warranty or customers’ responsibilities.

Continued from Page 42

HD Events

and a representative from technology company Diesel Laptops who talked about HD truck scanning. In addition, about 25 vendors, including Axalta and PPG, featured table-top displays providing attendees a chance to talk directly with company representatives. Awards Presented During the event, three awards were presented. Nick Notte of I-CAR presented Brad Keiter, manager for Penske Collision of Norcross, GA, with a plaque designating him as the very first I-CAR Gold Class HD truck shop. This designation is now available to any HD truck shop that qualifies. Nessen and Risley presented two additional awards. John Spoto,

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national heavy duty truck commercial fleet manager for 3M, was presented with the Service Provider of the Year award for his part in creating a number of training classes for 3M and for his tireless help in the planning and creation of the HD Repair Forum. Additionally, Nessen and Risley awarded in absentia the Repairer of the Year award to Sterwerf for his work as the chairman of TMC’s Heavy Duty Collision Repair Guideline Task Force, his industry position as a recognized leader in the HD collision repair industry, and for his work in helping create and promote the HD Repair Forum. Based on the success of this year’s event and positive feedback from attendees, speakers and exhibitors, Nessen and Risley are already planning next year’s event, although exact dates and location are not yet available.

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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.

ASA’s ‘Washington Watch’ Webinar Features Industry Association Leaders On March 20, the Automotive Service Association (ASA) hosted “Washington Watch with Robert L. Redding Jr.” as part of its Webinar Wednesdays series. Redding, ASA’s Washington, D.C., representative, was joined by Aaron Schulenburg, executive director of the Society of Collision Repair Specialists (SCRS); Roy Littlefield IV, director of government affairs for the Tire Industry Association (TIA); and Tom Tucker, director of state government affairs for the Auto Care Association (ACA). Tony Molla, ASA vice president of industry relations, welcomed attendees to the update on the 2019 state legislative sessions and promised they would learn about legislation impacting shop owners, the legislative agenda for 2019 and what’s of interest to the automotive industry. Redding’s first topic was OEM repair procedures. He explained that ASA and industry partners, including SCRS, kicked off legislation related to OEM repair procedures in August of 2018. He noted that multiple states are building support for this issue for 2020 and stressed that interest in the issue was somewhat stimulated by the 2017 Seebachan/John Eagle Collision case in Texas. However, interest had risen long before then. The OEM repair procedures draft states: “Any insurer licensed to issue policies of automobile insurance providing bodily injury, property damage liability, comprehensive or collision coverages shall not condition payment to any person conducting a collision repair upon the utilization of any repair procedure or specification if that repair procedure or specification is in conflict with the repair procedures and specifications for that vehicle as recommended by the original equipment manufacturer of such vehicle. If a repair procedure or specification from an original equipment manufacturer includes a directive to conduct a scan of vehicle electronic systems before or after the commencement of repairs, such directive shall be considered as a re-

quired part of the repair procedure.” Redding explained, “The draft language is meant to be a template for various states since this issue should be handled at the state, not federal, level. The bill language is intentionally very narrow and focuses on OEM

repair procedures only, with no discussion of parts or the mandated use of OE parts in the statement.” In 2018, legislation regarding OEM repair procedures was introduced in three states. Indiana Senate Bill 164 died in conference, and Illinois House Bill 4926 was not approved. Rhode Island Senate Bill 2679 was signed into law but is quite stringent and applies only to OE repair procedures on OE parts. Numerous bills on this issue have been introduced so far in 2019, including Connecticut House Bill 7266, New Hampshire House Bill 664, Minnesota House File 2234, Illinois Senate Bill 2104, Nevada Assembly Bill 173, Montana House Bill 252, and Texas House Bill 1348. “Interest in OEM repair procedures is not a new phenomenon, but this subject has generated a lot of attention in the past few years due to the increasing complexity of modern vehicles,” Schulenburg said. “SCRS and ASA worked collectively with partner groups in 2011 to address this topic. Collision repairers recognize OEM repair procedures as the documents for repair, but we need to be able to identify in a way that repairers can point to. Our groups collectively issued a statement that we recognize published repair procedures from OEMs as the official recognized standard for collision repair. “I think it will only become a bigger issue, especially as that technology increases and vehicles become more complex. Consumers want the

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technology, a lot of which is safetyrelated, and their interest drives the demand for it, which will continue to perpetuate the issue. It’s important to point out that the insurance industry is also pushing for technology. While the collision industry feels resistance to the necessary steps to restore functionality on the claims settlement side, the insurance industry is very supportive, if not driving, the development of these technologies to increase highway safety and reduce frequency.” Redding agreed that the interest in OEM repair procedures hasn’t lessened and reiterated the question he has heard from others about why it isn’t happening more quickly. Comparing the 2018 and 2019 bills, Schulenburg emphasized the importance of industry organizations documenting what is recognized as the industry’s standards and being the

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voice of the industry when necessary. He noted, “In 2019, it’s important for the proposed language to be rather narrow and focused. When we see it coupled with other industry issues, such as claims practices, rates or parts, it opens the door for opposition that may not enter into the conversation if we were just focused on procedures. Disregarding documented procedures opens the industry to unnecessary liabilities, so it’s much more beneficial to propose narrow, focused legislation.” Schulenburg agreed that this has been the most pressing issue he has seen among SCRS members for quite some time now. “If you look at how frequently this conversation comes up, there’s no doubt that it’s one of the top issues our members face today,” he said. “Shops are challenged by the desire to perform a proper repair, and

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it impacts them on a daily basis, increasingly as the pace of technology advances. The largest challenge is that even regulatory bodies responsible for the insurance industry don’t have firm language guiding their responsibilities; there’s a general lack of understanding from regulators on what role procedures play in safety and proper repairs. Consumers deserve support from the industry and from their elected officials to ensure they receive a safe repair, and that requires us to put some language around these requirements so claims are settled in accordance with those specifications as well.” Redding then provided a brief history lesson on state vehicle safety inspections. He explained that federal law in the 1970s mandated states have some type of safety program to participate in federal programs. However, after Congress revoked that mandate, what started as more than 30 state vehicle safety programs was eventually reduced to just 15 state programs. Currently, the only states with vehicle safety inspection programs in place are Hawaii, Louisiana, Maine, Massachusetts, Maryland, Missouri, New Hampshire, North Carolina, New York, Pennsylvania, Rhode Island, Texas, Virginia, Vermont and West Virginia. Redding stated, “We are proud of these remaining programs and want to defend them. They are regularly attacked in state legislatures, and concerns have already been raised this year due to bills introduced to eliminate or significantly alter these programs.” Those bills include Missouri House Bill 451, Texas House Bill 3665, Hawaii House Bill 85, and Virginia House Bill 2068. Missouri House Bill 451 would repeal the requirement that all motor vehicles must obtain an inspection before the vehicle may be licensed. ASA, ACA and TIA all opposed the bill, stressing that periodic vehicle safety inspection programs help protect property and lives. “The Missouri bill is a mirror image of what was presented last year. We fought it in 2018, and the bill died in legislature, but each year, these bills get a little further. We’ve been banning together to stop the Missouri bill, but there are others,” Redding said. 50

Redding introduced Littlefield and Tucker, who expressed concerns with states trying to take safety programs away. Tucker stated, “ACA strongly believes in safety programs and regular vehicle maintenance and care. Vehicles are becoming more technologically sophisticated. My car affects your safety, and your car affects my safety, so if a car isn’t adequately

there was no good data to prove that the safety inspections save lives, but that’s because when there’s an accident, the first priority is getting the vehicle off the road so traffic can move. Public safety officials aren’t trained to look at the causes of these accidents. States aren’t required to report traffic accidents into the federal database unless there’s a fatality involved, so a lot of good data goes un-

repaired or inspected, we are all in danger. Every vehicle on the road should meet minimum safety standards, and that’s why these programs are so important. We need to rethink our strategies and become more proactive in the states where these programs are being attacked.” Discussing third-party evidence of how inspection programs impact vehicle safety, the group referenced the University of Texas – Austin study, which looked at economics and safety and affirmed that inspection programs save lives and enhance safety. Tucker pointed out, “You can’t get any better evidence than that. A safety inspection in Texas costs just $9, which is a small price to pay to ensure all vehicles on our roads are safe. Pennsylvania and Missouri also published reports that validate these findings. If we have three groundbreaking safety inspection studies that all say the same thing, the real question is: Why aren’t policymakers listening to real data instead of emotional arguments?” When Redding asked why we see such passion to eliminate these programs from some policymakers, Tucker suggested, “Most policymakers really try to be responsive to the needs of their constituents, so if a constituent brings a concern, the elected officials often try to pursue legislation to fix it, but that’s not always the best solution. “Also, we were missing effective data until the University of Texas issued their report last year. Opponents of the programs have often said

reported, leaving policymakers to believe the inspection programs are ineffective. We need to do a better job of educating elected officials with good data that demonstrates why these programs are effective.” Redding, Tucker and Littlefield discussed the need to get more people involved. Littlefield suggested, “Maybe it’s time to reunite and try to make a

“Interest in OEM repair procedures is not a new phenomenon, but this subject has generated a lot of attention in the past few years due to the increasing complexity of modern vehicles,” — Aaron Schulenburg

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run for it at the federal level. If we can change some minds in Washington, maybe we can work from the top down.” Tucker added, “Safety is the one thing that brings us all together.” The webinar concluded with a Q and A session, during which Schulenburg noted, “It’s important for the industry, regardless of the issue, to have collaboration. Consumers and the industry deserve a concerted effort to fix these problems.” On April 17, ASA will host its next Webinar Wednesday, titled “Increase Sales and Your Customer Value Proposition with Financing” and presented by Scott Schwalm, assistant vice president, relationship management for Synchrony Car Care. On April 24, ASE campus administrator Dave Capper will present “609 Certification” for technicians. ASA’s May 15th webinar, “Stop Reacting and Start Succeeding,” is intended for shop management and will be presented by Rick White of 180 Biz Solutions. For more information on ASA, visit asashop.org.

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Continued from Cover

New Car Technology

the market in 1979, when Chrysler introduced its Lean-Burn system in the K car (Aries, Reliant, LeBaron) An early computerized spark-advance control system consisted of three parts: the carburetor, the spark-control computer, and a group of eight external sensors. By the early or mid-80s, GM had the Electronic Spark Control System (ESC), which was the beginning of the computer age in cars with check engine lights , followed by OBD-II and then CAN (Controller Area Network) and then the beginning of ABS (Antilock Brake Systems) and TPMS (Tire Pressure Monitoring System). I witnessed all of these generations and evolution with those systems and now we’re going through it again with ADAS (Advanced Driver-Assistance Systems).

Are more and more shops joining the diagnostics world out of choice or necessity?

The collision repair industry is now going through the same thing the mechanical repair industry went through in the ‘90s and early 2000s. When OBD-II came around, shops realized that they had to have a scanner to do anything on these cars, and when CAN hit around 2004, it became more important for body shops. The collision repair industry has done a wonderful job within the last few years of pricing out any type of technician because body shops didn’t want to spend money for diagnostic time and the equipment required. They were subletting the work and battle with the insurance companies to get paid for it, and now it’s come home to roost in the middle of their world. So, the insurance companies are starting to pay for diagnostics and the body shops are going to have to have someone on their staff that has these abilities. The early adopters are going to make more money and lead the way, while the latecomers are forced to farm stuff out. It’s killing their cycle time because the dealerships have their own work and can

keep the shop’s cars there for 1–5 days, in many cases. The insurance companies are complaining that they have to pay these costs, whether the shop is farming it out or doing it inhouse. But if you’re subletting the diagnostics to the dealership, you have to pay for that rental car for an additional week, for example. The dealer’s own work is going to be a priority, so you never really know when you’re going to get the car back. As a result, the body shops that are doing their diagnostics in-house are favored by the insurance companies while those that are jobbing it out are not.

What are some of the newer systems that shops will have to be able to repair on newer vehicles?

These carmakers are coming up with new systems and features all the time, so the shops have to stay on top of it. Audi recently announced a new system called V2I (Vehicle to Infrastructure Communication) that will display the ideal speed to drive in order to make all the green lights. It’s only currently available in 13 cities, but if it works,

I imagine it will be introduced in every major city in the U.S. Tesla is constantly developing features associated with autonomous cars; Audi has always been a front runner and Mercedes has some interesting new stuff as well. I travel around the country a lot, so I get to play with all of the new technology, especially when it comes to the self-driving and safety stuff, and I am very surprised and impressed at what KIA and Hyundai are doing. Their lane departure technology seems to be fairly advanced in comparison to others. The supercruise systems from GM and Cadillac are up there with advancements, and Ford is focusing more on the technology in their SUVs and trucks where they’ve developed a system that gives Ford truck drivers (blind spot) trailer coverage, so that the driver can look further and wider with their backup systems. The radar is in the tail light so if you back into something, it’s more than just replacing the light. Carmakers are also further developing new facial recognition systems that deal with the driver’s eyes and where they’re looking and also by monitoring the position of the

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steering wheel. The ADAS system will attempt to steer the vehicle between the lanes, but if it doesn’t detect some kind of minimum resistance from your hands on the wheel or if it detects that you’re looking down and not at the road ahead. These systems are going to alert drivers with haptic messages that will cause the steering wheel or the seats to vibrate in order to alert the driver. Some of the OEMs are also working on heart rate monitors, so we will likely see a lot of new systems leveraging that.

By 2025, will a large percentage of the costs associated with a collision repair be more involved with software calibrations as opposed to actual paint and R & I?

Absolutely. Front collision avoidance, automatic emergency braking, lane departure warning, as well as all of the cameras, sonar, radar and LiDAR are all now connected to some of the braking and wheel speed sensors, brake pressure, electronic power steering, and all of these are reporting. So, it’s the cross-

pollination of these systems because it’s not just the ADAS part that’s involved. Active ADAS means that the system is doing something rather than just warning you, and that is where I think that area will really expand considerably within the next 2–3 years. A few years ago, many shops didn’t think that diagnostics were a must, but now they realize they’re becoming more important to fix cars, right?

Diagnostics is at an all-time high with body shops because now the insurance companies are requiring them to do pre- and postscans, which means they need to own at least one scanner. In the old days, we could just walk around the car and inspect it visually to write the estimate, but today we can’t see everything. What happened was that shops were writing estimates, but then while fixing the car they found out that one sensor was bad, this wire was pinched or module is going to be reset. So, now the shop has to write a bunch of supplements, which is a pain for the body shop and the insur-

ance company, plus it lengthens that cycle time. Another problem is with a car that is near its total threshold, and then the shop finds $1,000 in additional work. Had they done the proper diagnostics, the vehicle would have been totaled, but they’re already committed. That’s why the insurance companies started insisting on getting pre- and post-scanning on each car, so that now they can write estimates for additional sensors, labor time, programming, which allows the shop to write a more complete estimate to start off. By performing diagnostics, you get a definitive view instead of speculating and take all of the what-ifs out of the equation for both parties. Any shop working on cars made within the last four years is going to need at least one individual in-house who can perform diagnostics and have at least one full-functioning scan tool, not just a code reader. That’s the end game, but how do small independent shops get there affordably? Maybe they start out using a subscription service, and once they have someone on their crew who can do the diagnostics, they invest in a scanner. That seems to be a logical path to take.

I-CAR Contributes $225,000 to CREF

I-CAR© recently expanded its support of collision schools and students by making a $225,000 donation to the Collision Repair Education Foundation. The contribution was made as part of I-CAR’s 40th Anniversary Volunteer & Instructor Conference held March 1–3 in Orlando, FL. The financial contribution by I-CAR is in addition to the support to the Education Foundation’s mission by local ICAR committees across the country. The monetary contribution assists Education Foundation’s ability to offer collision school tool, equipment and instructor training grants and student scholarships across the U.S. “On behalf of the industry, ICAR is pleased to make this contribution that helps bolster the Collision Repair Education Foundation’s ongoing commitment to providing students with grants and scholarships that launch their careers in the collision repair industry,” said I-CAR CEO & President John Van Alstyne.

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Color Match 101: A Visit to Axalta’s Customer Experience Center by Barbara Davies

On March 21, I attended Axalta’s Media Day on behalf of Autobody News at its customer experience center in Concord, NC. This was my third year attending the event, the focus of which was “Speed & Accuracy Without Sacrifice.” Dan Benton, Axalta’s color match manager, started the day by providing an overview of Axalta’s Color Match and Color Theory history. Benton explained that Axalta has a rich 153-year history of innovation: • In the 1920s, Axalta developed the first sprayable paint used at a production plant. This reduced paint time from days to hours. • In 1990, Axalta developed the “Vindicator,” the first digital tool used to select a color formula based on where the vehicle was manufactured. It’s basically the car’s “fingerprint” and identifies where and when a car was made. • In 2017, Axalta launched its latest innovation, the Acquire™ Quantum EFX spectrophotometer, with

Why Is Color-Matching So Important? Painters need a precise color formula so they can match the paint color the first time and mix the smallest amount of paint necessary to repair the vehicle. They don’t get paid to remix or paint more of the vehicle than what was damaged. The faster they can get it through the shop, the better for the customer and the shop. Why Is Color-Matching So Difficult? What surprised me most was the fact that even though an OEM plant may use the same color mix for a new car line in two different parts of the country, the actual paint color could vary based on the temperature and humidity of each plant. After the color history overview, Benton brought us outside the training center to get some hands-on experience with how color matching happens in the real world. Bob Little, Axalta’s customer experience center manager, let us use his own grey Chevy Silverado truck for the demos.

Hands-On Demonstration #1: Fan Deck Each of the five media participants got a chance to hold the fan deck up to the truck and try to determine the closest match. As easy as that sounds, it wasn’t easy at all. Depending on the angle you looked at the fan deck against the truck, a different paint color in the deck looked like the perfect match. Very frustrating! There was no consensus among the group on the best match. Demonstration #1: Barbara tries out the traditional color Even though this type of fan deck to match the truck color color-matching is a bit “lowWi-Fi connectivity. This tool allows tech,” many painters grew up with it painters to key in the VIN to gener- and still use it. They know how to ate the exact color formula specific make slight adjustments to come up to that vehicle. with the exact color match. This is a skill, and not everyone has it; hence Benton then went on to explain the the need for Demo #2. art and science of color-matching. I had never really thought about all the Hands-On Demonstration #2: color variations available to painters. Our next demo involved the use of All the new colors that we see with Axalta’s Acquire™ Quantum EFX their micro-flakes that reflect light so spectrophotometer, fondly referred beautifully in different lighting condi- to as “the camera.” We learned that tions also make it very difficult to de- one benefit of the camera over the fan termine the exact color match needed chip is that the camera has a database to repair a vehicle. of tens of thousands of colors, while 54

MAY 2019 AUTOBODY NEWS / autobodynews.com

it pulls up the color match. Quick Results: The camera has Wi-Fi, so when we went inside the color-mixing room, the results were already there and provided the color mix formula that most closely matched the truck’s paint. This would allow the shop to then mix the specific formula without waste and paint just the secDemonstration #2: Bob Little, Axalta’s customer experience center manager, assists Barbara with Axalta’s Acquire™ tion of the vehicle that was Quantum EFX spectrophotometer, fondly referred to as damaged. Very efficient! Ax“the camera,” to take a digital color reading of the truck alta also offers an automated dispensing system for even the fan deck may only have 5,000 greater mixing accuracy. total color chips. Better Wash It First! Little’s truck looked clean, but we were quickly informed that the first thing a shop needs to do is thoroughly clean the part of the vehicle on which the camera will be used. We each took a turn using the camera to take a reading of a section of the car. Simple Process: Take the picture and plug into the computer, and

Some other interesting facts from the day: • Color Fashion Show: Each year, the five major paint companies (of which Axalta is one) put on a color fashion show of sorts for each of the OEM car manufacturers. In this presentation, they present a “color board” of what colors they believe will be the most popular 2–3 years down the road. See Color Match 101, Page 60

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Truck Topics with Gary Ledoux

Truck Topics 2: Truck Vs. Auto Collision Repair – An Overview We see them all the time—semi trucks, trailers, buses, RVs, dump trucks and other pieces of heavy equipment wrecked in what had to be a horrendous crash. So where does this heavy equipment go for collision repair—and how different is it from repairing an auto or pick-up truck? As one would imagine, there are some vast differences given the sheer size, weight, substrates used, and construction methods of such vehicles. But there are a few things that don’t change regardless of what vehicle is being repaired or who is doing it. For example, the phrase, “This is the way we’ve been doing it for 30 years… so why change?” is something heard in both camps and something industry leaders on both sides are trying to fight through education and awareness. One of the biggest differences

between Class 8 and 9 trucks (commonly known as semi tractors) is the availability of repair information for both mechanical and especially collision repair. In the auto or light truck world, (thanks to the Right to Repair initiative started in 2001), one trip to an automaker’s website will give repairers pretty much everything they need to make a safe and proper repair. On the truck side, that information may or may not exist, and even if it does exist, it is difficult to find. The truck OE will likely refer the independent shop to the component manufacturer—who may or may not be able to provide the information. Most trucks are custom-built to a customer’s specifications, making component identification (such as axles, wheels, suspension parts) challenging. John “Jack” Legler is the technical director for the Technical and

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Maintenance Council (TMC) of the American Trucking Association (ATA). Its mission is to develop best practices and maintenance procedures for Class 8 (semi) trucks. The 65-year-old association has always been busy, but is now even more so as it tackles the proper way to make collision repairs with the advent of new advanced driver assist systems (ADAS) and other new technologies—such as high-strength steel. They have only been looking at the collision side of things for the last year or so and are making headway. However, as Legler puts it, “We’ve seen more changes in the trucking industry in the last 10 years than the previous 35 years.” (Sounds a lot like the auto side!) The Technical and Maintenance Council’s “S-16” study group is working with OEs and companies that supply engines, transmissions, axles,

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springs, electronic components and others to come up with best practices and procedures for making safe and complete repairs. Legler noted, “Unlike the auto industry where the OE provides a one-stop place for all information regarding the vehicle, repair information for a heavy truck can come from a number of different sources and in several different formats. It’s often difficult to find and when found, can be rather vague or of little help. It is fortunate that we all get along and work together within the industry. Representatives of the OEs as well as other component providers all serve on our committees and study groups.” When asked what the biggest challenge was today in the world of collision repair for heavy trucks and equipment, Legler was quick to reply with, “New technology. It’s coming at us faster than we can deal with it.

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That includes electronics, new frame alloys and composite materials for the cabs. Some of the electronic components on these trucks hold a high electrical charge and if approached the wrong way can seriously hurt the truck and the technician.” (This should sound familiar to those on the auto and light truck side.) Legler went on, “Many of the latest trucks are aerodynamically designed to optimize fuel economy. Today’s body technicians need to restore that truck’s aerodynamic design for optimum fuel economy. That’s a big deal when that truck travels 100,000 miles per year.” When asked how the industry was dealing with ADAS systems, Legler said, “We have only had to deal with that for the last couple of years. But we have to come up to speed quickly. It’s only a matter of time before autonomous trucks using these technologies start hitting the road.” Chris Sterwerf is the chief finance and operations officer for Fairfield Auto and Truck Service in Fairfield, OH, the chairman of TMC’s Heavy Duty Collision Repair Guideline Task Force and a noted industry

leader. When asked about the issue of repair information, Sterwerf agreed with Legler that it was hard to come by. He noted, “About 20 years ago when the auto repair shops were pushing for the ‘Right to Repair’ act, nobody on the heavy duty side went to their party, so we were left out.” He said the problem might have been due to the great diversity in the industry. “Under the umbrella of heavy duty, we have shops that fix only semi-trucks, or only buses, or only RVs,” he said. “Some shops can handle a heavy wreck from soup to nuts; some only do cosmetic work. The industry is very fragmented, and it shows. It makes things tough sometimes.” Collision shops on the auto side are still somewhat fragmented but nowhere near as much as they were before the advent of industry associations in the 1950s and trade magazines as a means of communication in the 1960s and 1970s. Sterwerf continued, “And then there are all the shops that don’t look

like shops—large fleets that repair their own trucks that are not visible to the public or even within the industry.” On the auto side, it’s pretty easy to find an independent repair shop using an internet search engine. On the heavy truck side, some large fleets maintain their own mechanical and collision shops, which tend to stay off the “commercial radar.” When asked what the biggest challenges were in the industry, Sterwerf replied, “There are a few things. One is the challenge of getting parts and repair information. Conversely, some component manufacturers, such as Bendix has all kinds of information online—and it’s all free. Sadly, few people use it. “The other issue I hear from a lot of shop owners is finding people. It’s tough to work in an industry that is so dependent on experience and knowledge when you don’t have any. but it may be the culture of the shop. “From my perspective, there are a lot of heavy duty shops out there that are only existing. Their repair methods, equipment and mind-set are stuck in an industry that existed

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years ago. They are not keeping up with technology and not moving forward.” (Hmmm… this has a familiar ring to it.) One of the major differences between the heavy duty collision repair world and the auto collision repair world is who pays the bill. On the auto side, easily 90 percent of collision repairs are covered by an insurance company. Conversely, most fleets are self-insured, so the company foots the bill for repairs. Any shop working exclusively on the auto side would find this arrangement ideal because there would be no more fighting with an insurance company over what they would or would not cover. Sterwerf explained the issues encountered with fleet-paid repairs. “Bigger fleets don’t mind paying to have the truck fixed correctly and safely. They know that skimping out on a repair now may mean a catastrophic failure later; which means more down time and possibly injury to a driver or other parties. Rather than try to fix something, it’s quicker and safer to replace the entire component—so that’s what we do. Then

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there is no question about [the repair being] right or not. Conversely, some managers of small fleets, operating on a small budget, want to do only what is absolutely necessary to put the truck back in service—despite the repair not being complete or even safe. I just tell those guys to keep going. I know the shop is still liable for those repairs regardless of what they say or want—and I don’t need the headaches.” When asked for an overall assessment of the industry, Sterwerf noted that as part of the Heavy Duty Collision Repair Task Force, he has met a lot of shop owners, many of which are considered to be some of the best in the industry. “But even among the best, there is a wide variation of skills, knowledge, experience and equipment,” he said. “We need to get more people involved and more people to take an active role in this industry to make it better and bring us all to the next level.” The equipment needed to work on heavy trucks carries a proportionally large physical size and cost. Getting into the business is not for the faint of heart. Some of the challenges

encountered while performing a heavy truck repair are conversely diminutive, yet equally important. Many truck bodies are made of aluminum to save on weight. (This should sound familiar to the auto repairers.) So when a lamp is attached to a body, or screws are needed to hold two body panels together, it’s crucial to use stainless steel screws to prevent galvanic corrosion. Just like the auto side, as one might expect, the paint companies have taken a lead role in supporting the HD collision repair industry. Axalta has its legendary Imron coating. Introduced in the early 1970s with about 12 different basic colors, it is now available in more than 25,000 colors and is the coating of choice for 5 out of 6 U.S.-based heavy duty truck manufacturers. Its coatings used on the production line and in the field are identical making an “original factory finish” possible in the field. Axalta also has what they call a “Business Council” in which noncompeting shop owners can come together, learn from each other, share experiences and receive words of wisdom from Ron Kuehn.

Sherwin-Williams has its own line of polyurethane topcoats specifically for heavy truck and equipment use. According to its website, in 1939, Sherwin-Williams was instrumental in devising the color we know today as school bus yellow as the standard color for all school buses. BASF has its own line of commercial paint and will even customcreate a special color for an individual fleet. In addition to its durable commercial coatings provided through its Sikkens brand, AkzoNobel provides analysis and recommendation for fleets to minimize down time for maintenance and repair and a coaching and training program for individual shop employees. To summarize … are there differences between heavy truck and auto collision repair? Sure. But it seems there are just as many similarities. Fortunately, in both truck and auto repair, there are a handful of dedicated industry leaders working toward the betterment of each side of the industry—to identify and find solutions to problems to effect a safe and complete repair for the customer.

Speak at CIECA CONNEX 2019 in Charlottesville, VA

CIECA is looking for a few additional thought leaders and industry professionals to speak at the upcoming annual conference—CIECA CONNEX 2019—in Charlottesville, VA, Sept. 16–18. CIECA invites you to share your knowledge and expertise as we work together to explore emerging issues, forecast for the future and discuss ways to prepare for the road ahead. CIECA CONNEX is the one event where CIECA members and business professionals from all segments of the collision repair industry gather to network and learn from one another. They include repairers, insurers, OEMs, parts and material suppliers, information and software providers, car rental companies, towing companies, salvage and recycled parts providers, auto glass replacement facilities, subrogation providers, general service providers and property restoration providers.

BMW Recalls 183,000 Vehicles for Takata Airbag Inflators by David A. Wood, CarComplaints.com

We thank CarComplaints.com for reprint permission. https://www.carcomplaints.com/news/2019/bmwrecalls-183000-vehicles-takata-air bag-inflators.shtml BMW is recalling about 183,000 vehicles to replace Takata airbags at risk of exploding. More than 170,000 of those vehicles had their original steering wheels replaced with the optional sports steering wheels, which contain frontal Takata airbag inflators at risk of rupturing. •

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In a separate recall of 12,880 vehicles, BMW is recalling the 2015 X1 sDrive28i, X1 xDrive28i and X1 xDrive35i. These vehicles are equipped with driver’s side Takata airbag inflators used as original or replacement equipment. The recalls began March 4. Dealerships have been replacing the Takata airbag modules. Customers with questions should call BMW at 800-525-7417.

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Continued from Page 54

GEICO Files Lawsuit Against Auto Glass Shop Suspected of Fraud To prove it has a zero-tolerance policy regarding insurance fraud, GEICO has filed a federal lawsuit in Arizona against an auto glass repair shop suspected of submitting fraudulent glass repair bills, according to a March 25 press release. GEICO seeks to recover damages under civil RICO statutes, as well as for unjust enrichment and fraud. GEICO says the Arizona action is also a preview of future lawsuits. GEICO alleges that its customers’ signatures were forged on invoices submitted by A & E Auto Glass for repairs that were never performed. Specifically, GEICO was billed for repairs associated with recalibration of advanced driver assistance systems using falsified documents. In many instances, such a system was not even available on the specific make and model of the vehicle being repaired. In addition to billing for services that were never provided, the suit alleges that the defendants submitted fabricated documents from Arizona automobile dealer-

Payscape, SCRS Partner on Member Benefit

Financial technology company Payscape has partnered with the Society of Collision Repair Specialists. Through this partnership, they will be able to provide members discounted processing rates and world-class financial technology to further streamline their business operations. “Payscape is excited to partner with SCRS,” said John Mills, vice president of Enterprise Sales at Payscape. “Given their initiative to provide members with trusted sources and advanced learning, we aim to enhance their financial technology portfolio and hope to progress both our organizations.” Through this strategic collaboration, SCRS will have the ability to negotiate more competitive credit card processing rates for the small to mid-size businesses that are members of its organization. Business owners will be able to expand their payment processing services through innovative software solutions and increase cash flow. 60

ships for reimbursement of glass parts that were never purchased. “GEICO has a zero-tolerance policy when it comes to insurance fraud,” said Shane Wheeler, assistant vice president of claims in GEICO’s Tucson, AZ, office. “These incidents of fraud hurt consumers because they cause premiums to increase.” Wheeler went on to say that GEICO has a long history of seeking out individuals willing to commit fraud. GEICO intends to file future lawsuits to continue making every effort to protect its customers and the public from fraudulent glass repair operators. GEICO filed its case—Government Employees Insurance Company, et al. v. A & E Solheim, LLC, d/b/a A & E Auto Glass, et. al.—in the U.S. District Court for the District of Arizona. GEICO also seeks a declaration that any pending claims are not owed. GEICO is represented by Barry Levy, Rivkin Radler LLP and William Thorpe, Thorpe Shwer P.C.

Color Match 101

The paint companies’ color teams track fashion trends and other style markers (possibly economic and environmental factors, etc.) and present their color board to the OEM brand de-

Peter Maier in front of one of his paintings

sign team. After much back-and-forth between the teams, certain colors are selected from each manufacturer, and then each manufacturer is required to formulate each color so they have it available for their shop customers. • Ports of Entry: When a new model vehicle is released with a new paint color, Axalta and the other paint manufacturers will have people from their laboratories go to rail head or

shipping port points of entry and take tens of thousands of camera readings on the actual vehicles coming off the rails or ships. They do this to compare the actual new vehicle reading to what the formula stated so that they can “tweak” their paint formulas if necessary before they provide it to their customers.

After lunch, we met Peter Maier, who creates photorealist paintings of cars. A former employee of General Motors, Maier worked as a senior designer for Cadillac, Pontiac and Chevrolet and went on to pioneer the use of automotive paint in fine art. For example, “1959 Sting Ray” (1996), which is scaled to the exact dimensions of its subject, acquired its shine and saturation of color through more than 20 coats of metallic silver paint. His process of applying layers of color and clear varnish “produces an illusion of depth, surface and saturation not possible with traditional mediums,” Maier said. “Often, my cars and motorcycles look like they are under glass.” Not surprisingly, Maier uses Axalta paints.

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House Republicans Push for Action on Self-Driving Vehicles Bill by Eugene Mulero, Transport Topics

Three Republicans in the U.S. House of Representatives are ready to re-legislate on the technology for self-driving vehicles. And, to do so, they are asking the chamber’s new Democratic leadership to proceed with a bill. Energy and Commerce Committee ranking member Greg Walden of Oregon was joined by his colleagues, Reps. Bob Latta of Ohio and Cathy McMorris Rodgers of Washington, in calling on committee Chairman Frank Pallone (D-NJ) to set up the consideration of a comprehensive bill on self-driving technology. “We are at a critical moment in the development of self-driving technology. We have the opportunity to support life-saving technology, create mobility benefits for many communities, and support U.S. jobs and innovation against foreign competition,” the trio of Republicans wrote on March 13. “We have outdated standards and unnecessary barriers, which are slowing the development and deployment of self-driving technology.” The Republican lawmakers pointed to the technology’s potential

to enhance safety on the roadways through automation designed to reduce driver error. Also, such vehicles could likely be utilized to assist the elderly and people with disabilities to access convenience stores or medical

gressional session’s adjournment. In February, Senate Majority Whip John Thune (R-SD), who had championed the bill in the previous congressional session, said he was aiming to restart talks on a similar bill.

facilities. And establishing the country as a leader in the technology’s development could lead to myriad economic benefits, they added. Latta is ranking member of the Communications and Technology Subcommittee, and McMorris Rodgers is ranking member of the Consumer Protection and Commerce Subcommittee. The committee’s Democratic leadership has not issued an update on the legislation’s consideration. A self-driving car bill easily advanced in the House last year but failed to reach the Senate floor amid disputes over key safety provisions. The bill ended its run upon the con-

Amid the industry’s recent achievements in developing the technology, federal regulators have issued a series of guidelines. In the fall, the U.S. Department of Transportation emphasized that safety, technology neutrality, consistent regulations and a proactive preparation for automation were key aspects of updated guidance. Additionally, speaking to reporters March 11, Transportation Secretary Elaine Chao indicated there was “very good news” in President Donald Trump’s fiscal 2020 budget proposal regarding autonomous technology. According to the proposal,

“We have outdated standards and unnecessary barriers, which are slowing the development and deployment of self-driving technology.” — Greg Walden

DOT “will continue efforts in 2020 to enable the safe testing and integration of autonomous vehicles within the nation’s transportation systems by reducing regulatory barriers and conducting research.” Meanwhile, the Alliance of Automobile Manufacturers urged federal lawmakers to craft autonomous policy. Mitch Bainwol, president of the alliance, wrote in February, “Many of the rules that currently govern the operation of a motor vehicle were created at a time when a self-driving vehicle was a science-fiction fantasy, rather than a technological breakthrough on our doorstep.” Meanwhile, groups such as the U.S. Chamber of Commerce and companies such as Amazon.com Inc., Waymo and Uber also press Congress to legislate on provisions that would govern autonomous vehicles. Used by permission of Transport Topics. Copyright Transport Topics, American Trucking Associations, Inc. For more information, visit www .ttnews.com

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Auto Industry: Blocking Trade With Mexico Would Be Disruptive by Nora Naughton, The Detroit News

As President Donald Trump threatens to close the U.S.-Mexico border in an attempt to curb illegal immigration, some in the U.S. auto industry are warning the move could cause major disruptions. Trump told reporters March 29 he “could” close the U.S.-Mexican border to “all trade” as part of a larger effort to force Mexico to crack down on immigration from Central American countries. “If they don’t stop them, we are closing the border,” Trump said. “We’ll close it. And we’ll keep it closed for a long time. I’m not playing games.” The Alliance of Automobile Manufacturers, a Washington-based group that lobbies for most major automakers, pushed back April 1 against any closure to trade. “Automakers rely heavily on cross-border trade throughout the North American region,” the alliance said in a statement. “In many instances, auto parts can cross the border seven to eight times before being integrated into the final assembly of a vehicle.

“We urge all parties to work together to avert a border closing that would result in significant disruptions to the North American auto industry, because ultimately increased costs hurt customers.” Some 37 percent of all auto parts imported to the U.S. come from Mexico, the country’s third-largest trading partner. Cutting off U.S.Mexican trade could create a ripple effect in the industry that wouldn’t just slow or stop the delivery of vehicles—it could shut down entire plants in the United States. “Building a vehicle becomes very difficult if you don’t have all the pieces to make it work,” said Kristin Dziczek, vice president of Ann Arbor-based Center for Automotive Research. “Depending on how long a closure lasts, there could be some vehicle shortages. But the more immediate effect is shutting down U.S. plants.” In Michigan alone, some five plants stand to be affected if trade between the U.S. and Mexico is brought to a standstill. Among the most vulnerable are Fiat Chrysler Automobiles’ Warren Truck and Jefferson North Assembly

plants, and General Motors Co.’s Flint Truck plant, according to data provided by the Center for Automotive Research. Those three Michigan plants all source engines from plants in Mexico. GM and Fiat Chrysler declined to comment, deferring to the Alliance for Automobile Manufacturers. The American Automotive Policy Council, a different trade group that represents GM, Fiat Chrysler and Ford Motor Co., issued a strongly worded statement April 1. “Any action that stops commerce at the border would be harmful to the U.S. economy, and in particular, the auto industry,” said AAPC president Matt Blunt. “Access to Mexico’s market place and North American integration are critical to operations in the U.S.” The White House said April 1 that up to 2,000 inspectors who screen cargo and vehicles on the Mexican border may be reassigned to help handle the influx of migrants. That could slow the movement of goods even if trade isn’t cut off completely. Senior aides defended a border

closing on March 31 news shows, with acting White House chief of staff Mick Mulvaney saying it would take “something dramatic” to avoid the closure. Trump’s threats to close the border are part of the president’s longer-running effort to install a wall at the U.S.-Mexico border. After declaring a national emergency at the border in February, an attempt to access wall funding voted down by Congress, the president has said he would end aid to Guatemala, Honduras and El Salvador. As the industry braces for a possible closure of the Mexican border, several other trade issues hang in the balance. A proposed replacement for the North American Free Trade Agreement—known as the United State-Mexico-Canada Agreement— is still up in the air. And an investigation into whether the Trump administration can levy tariffs on imported cars and parts in the name of national security still sits with the president, who has until May to act on the report. We thank The Detroit News for reprint permission.

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