Southwest Edition Texas Oklahoma Louisiana New Mexico
31
YEARS
VOL. 30 ISSUE 9 SEPTEMBER 2012
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PARTS ACT Heard in House of Representatives The House Judiciary Intellectual Property Subcommittee heard testimony on Aug. 1 regarding the Promoting Automotive Repair Trade and Sales (PARTS) Act, which is carried by California Reps Darrell Issa (R) and Zoe Lofgren (D). H.R. 3889 is designed to significantly reduce the time allowed to carmakers for design patent protection on collision parts from 14 years to just 2.5 years. Supporters of PARTS say the measure would expand consumer choices and cut costs paid by insurers
on collision repair parts, a dubious benefit according to those opposed to the legislation who warn of a slippery slope that would stifle innovation by inhibiting patent protection. “Competition is the hallmark of our free market system,” Issa said. “For decades Americans have been used to having choice when it comes to the component parts that they use to repair their vehicles after an automobile accident. My bill ensures that this choice will remain intact.” Issa is himself the holder of some dozen auSee PARTS ACT, Page 52
SEMA-AAPEX is Oct. 30-Nov 2 in Las Vegas For SCRS’ Repairer Driven Education, see p. 32-34
Texas-based MSO Service King to be Acquired by Management and Employees, Carlyle Group Part of the reason The Carlyle Group is buying Service King is to help the employee-owned company to expand nationally. The investment capital will come from Carlyle Equity Opportunities Fund LP and Carlyle Strategic Partners Fund III LP. Service King Collision Repair Centers is the largest independent U.S. chain of auto body repair shops. Service King founder Eddie Lennox will retain a significant stake in the company. Chief executive officer Cathy Bonner will become chairman representing Lennox on the board of directors. See Service King, Page 4
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P.O. BOX 1516, CARLSBAD, CA 92018
Service King Collision Repair Centers will be bought out by a consortium made up of private equity giant, The Carlyle Group, and the MSO’s management and employees. The transaction is expected to close in August. Service King currently operates 49 locations in the Dallas-Fort Worth, Houston, San Antonio and Austin Eddie Lennox metropolitan areas. In the last three years, the company’s revenues and location count have doubled.
Indiana Auto Body Association’s Parts Procurement and Insurer Interference Survey Results In mid-July the IABA conducted a member survey they called a Parts Procurement and Insurer Interference Survey which was responded to by hundreds of shops. Tony Passwater, Executive Director of IABA, wrote in summary: “There is no doubt the Parts Trader is attempting to transform our part procurement process into an ebay type environment, so the “cut-throating” can continue. This will only take away another piece of revenue/profit our businesses have relied upon for a sustainable future. Even though we have “ignorantly” agreed to so many con-
cessions over the years, thinking we would get more work in our doors, isn’t it time to just say “No” ? Survey questions and results are tabulated herein (bars are not to scale): 1) Do you believe the PartsTrader program is designed to improve your efficiency? Yes
1.4%
No
98.6%
2) Do you feel the PartsTrader program has benefits for collision reSee IABA Survey, Page 53
NACE-CARS (ASRW) is Oct. 10-13 in New Orleans Full Schedule of Courses, see p. 23-27
NWLCRA Discusses PartsTrader at August Meeting
The Northwest Louisiana Collision Repair Association held its August 7 meeting at the Hilton Shreveport. About 80 members attended, including repair shop owners, dealership owners, parts vendors and automobile manufacturers. The meeting was brought to order by Bill Burnside, NWLCRA Secretary-Treasurer. Chris Shepherd, collision repair instructor at Louisiana Technical College, introduced two students who competed at the national SkillsUSA competition. Adam Townsel placed 18th and Hector Diaz placed 21st. Shepherd said it has been quite some time since LTC has participated in SkillsUSA, and he was proud of his students and their accomplishments. Congratulations to Adam and Hector! Other business discussed included the upcoming NACE tradeshow, ICAR class schedules, and the association’s upcoming Christmas party. The special guest from ASA brought free passes to NACE, being held in New Orleans this year. I-CAR class schedules have been updated on the NWLCRA calendar, which can be found at www.nwlcra.org by clicking on the “Calendar” button.
The Christmas party is set for December 8 at Fielder Paint & Body, 521 N. Market, Shreveport, LA. It will begin at 6:30 p.m. and will feature the Walker Street Band. Denise Caspersen, ASA Collision Division Manager, was the featured guest speaker and spoke about the State Farm parts procurement pilot program. She spoke on areas of concern that have been raised by collision repair facilities, automobile manufacturers, recyclers, and parts vendors. She pointed out that ASA is a bridge between the collision industry and State Farm and that ASA is not taking any position, but conducting research to determine the facts. Concerns raised by collision repair facilities include a potential increase in administrative costs and potential increase of cycle time delays. Parts suppliers had similar concerns with increased administrative costs and data privacy. Other industry-wide concerns include the overall legality of the program and how it will benefit the consumer. Caspersen had multiple handouts, which are also available online at www.ASAshop.org, click on “Tools & Resources” then “State Farm Pilot Program.”
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