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‘Who Pays for What?’ Survey: Some Shops Not Measuring Steering Columns as Called for by OEMs Mike Anderson of Collision Advice gets concerned when he sees “Who Pays for What?” survey findings that suggest half of shops may not be following OEM safety inspection procedures. “Many automakers, including General Motors, Nissan and Subaru, have very specific vehicle safety inspections required as part of collision repair,” Anderson said. “Those inspections may include the removal and measurement of the steering column. We asked shops about this procedure for the first time in our surveys this year, and 50% said that
was something they’ve never billed for when it was required. I’m worried that may mean they’re not performing the necessary safety inspections.” Anderson, who conducts the quarterly “Who Pays” surveys in conjunction with CRASH Network, said he was glad to see that among those billing for the labor to measure a steering column when it is necessary and performed, 41% said they are being paid “always” or “most of the time” by the eight largest national insurers. Another 28% said they See ‘Who Pays for What?’, Page 6
Vol. 39 / Issue 9 / September 2021
New Hall, New Beginning, New SEMA Show by Ed Attanasio
In 2020, SEMA had to reinvent itself, and the result was SEMA360, a completely virtual show that performed surprisingly well despite all the obstacles. It was a noble experiment during highly uncertain times, but SEMA’s Vice President of Events Tom Gattuso and his team were able to save the event by quickly pivoting and literally saving the day. In 2017, the show took place 30 days after the tragedy of Mandalay Bay, so Gattuso is not unfamiliar with last minute changes, and this
year will undoubtedly be more of the same. Autobody News spoke to Gattuso about the upcoming 2021 SEMA Show.
There’s a buzz about the new West Hall, a 1.4 million-square foot addition to the Las Vegas Convention Center. How will it affect collision repair-related exhibitors and attendees?
This year, things are less uncertain, but new considerations and special circumstances are See New SEMA Show, Page 20
Auto Dealer Group to Cease Business Operations as Part of FTC Settlement
Report: Texas is Front-Runner for Rivian’s $5 Billion Plant
A group of auto dealerships in Arizona and New Mexico must cease business operations as part of a court-approved settlement resolving Federal Trade Commission charges that the dealerships deceived consumers and falsified information on vehicle financing applications. In a case filed in 2018, the FTC alleged Tate’s Auto Center of Winslow, Inc.; Tate’s Automotive, Inc.; Tate Ford-Lincoln-Mercury, Inc. (doing business as Tate’s Auto Center); Tate’s Auto Center of Gallup, Inc.; and Richard Berry, an officer of the dealerships, falsified con-
by Mark Kane, Inside EVs
sumers’ income and down payment information on vehicle financing applications and misrepresented important financial terms in vehicle advertisements. The case continues against BerSee FTC Settlement, Page 14
Texas is not only one of the finalists, but the front-runner for Rivian’s upcoming $5 billion investment in its second electric vehicle plant in the U.S., according to unofficial reports. After the company raised an additional $2.5 billion—for a total of $10.5 billion—we heard the second EV plant and a 50 GWh battery cell plant could be built in Arizona. However, according to Bloomberg News and Automotive News, the new site more likely will be located in Texas, due to a better infrastructure. The second battery plant potentially will be built near Fort Worth, and here are some highlights from a presentation made by the City of Fort Worth’s Economic Development Department to the City Council on Aug. 10: • Codenamed “Project Tera” • Manufacturing capacity of up to 200,000 vehicles annually • At least 7,500 jobs by 2027
• Investment of at least $5 billion, including at least $2 billion in real property improvements and $1.6 billion in hard construction costs • $440 million in incentives (including grants and county tax abatement) • Initial investment to be completed by the end of 2024 • Potential location: 2,000-acre Walsh Ranch site, near Fort Worth • Minimum average annual salaries of $56,000 The final decision is expected later this year. Robert Sturns, the director of economic development for Fort Worth, said in an email the city is “very excited to be a finalist for this project and looks forward to continuing the process.” Sturns told the council during a presentation Aug. 10 that several states were still under consideration by Rivian. Let’s not forget the company might launch also a separate project in Europe, where the third production plant could be built.
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4/1/21 8:27 AM
CONTENTS Often Disagree on Repair Plans���������������������32
35-Year Industry Veteran Continues Arizona Body Shop’s Legacy As New Owner-Operator��������10 Armed EPA Agents Raid Colorado Auto Shop�����18 Auto Dealer Group to Cease Business Operations as Part of FTC Settlement���������������������������������1
for by OEMs����������������������������������������������������1
Restored Vehicle to Local Car Enthusiast
ASE Presents Chairman’s Scholarship���������������40
Through Make-A-Wish Foundation����������������12
Boyd Group Reports 44% Sales Increase
First Tesla Model Y Weeks Away From Rolling Out Of Giga Texas�������������������������������������������8 Louisiana Could Receive Billions from New Federal Infrastructure Agreement������������������12 Lucid Expands Arizona Presence with Scottsdale Studio Location������������������������������6 NABC Recycled Rides, Farmers Insurance, Town East Ford, Trophy Nissan Donate Refurbished Vehicles to Dallas Recipients���������������������������8 Report: Texas is Front-Runner for Rivian’s $5 Billion Plant�����������������������������������������������1 Tesla Model X Involved in Fiery Texas Crash: What We Know So Far�����������������������������������22
and Demand for Labor in U.S.�����������������������48 CCC Promotes Goodson to CTO�������������������������48 Enterprise Fleet Management Largest in U.S.����46 Ford Statements on Electric Vehicle Sales and White House Announcement�������������������28 FTC Issues Rule to Deter Rampant Made in USA Fraud����������������������������������������������������50 General Motors Names Global Leads�����������������48 Generating More Profit in Your Auto Body Shop with Windshield Repair���������������������������������38 GM Class Action Lawsuit Alleges Airbag Failures Kill People����������������������������������������45 Hyundai Trunk Latch Recall: Emergency Releases May Fail�����������������������������������������36 New Hall, New Beginning, New SEMA Show�������1 Pro Spot Denver Training Center Open House
COLUMNISTS Anderson - Daily Release Meetings a Must for Successful Collision Repair Shops�����������30 Chess - Deciding When Used Parts are Appropriate in the Collision Repair Process���34
Not Measuring Steering Columns as Called
4 Added to I-CAR Board������������������������������������28
Updated to 12 Positive Cases, 3 Fatalities�����14
‘Who Pays for What?’ Survey: Some Shops
CARSTAR Colorado Business Group Donates
COVID-19 Outbreak at Nissan of Durango, CO,
Aces the Test������������������������������������������������24 SUN Collison Updates Repair Information����������22 The Rise of Amazon and How it Impacts the Collision Repair Industry���������������������������������4 Toyota Debuts Mobile Collision Assistance
INDEX OF ADVERTISERS
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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. ©2021 Adamantine Media LLC.
American Icon Automotive Finishes����������������� 22
Kia Motors Wholesale Parts Dealers���������������� 51
Audi South Austin������������������������������������������� 41
LKQ Corporation����������������������������������������������� 5
Audi Wholesale Parts Dealers�������������������������� 49
Mac Haik Ford-Lincoln�������������������������������������� 7
AutoNation Collision Parts������������������������������� 11
Matrix Edge���������������������������������������������������� 15
Axalta Coating Systems���������������������������������� 14
Mazda Wholesale Parts Dealers���������������������� 44
BMW of South Austin�������������������������������������� 41
Mitsubishi Wholesale Parts����������������������������� 40
BMW Wholesale Parts Dealers������������������������ 38
MOPAR Wholesale Parts Dealers��������������������� 33
Bob Utter Kia�������������������������������������������������� 36
NOROO Paint & Coatings��������������������������������� 13
North Freeway Hyundai����������������������������������� 28
Certified Automotive Parts Association�������������� 8
Northside Chevrolet���������������������������������������� 18
Part of the Club����������������������������������������������� 39
Christopher’s Dodge-Ram������������������������������� 39
Peak Kia��������������������������������������������������������� 39
Classic BMW��������������������������������������������������� 35
Santa Fe Kia��������������������������������������������������� 30
Eagle Abrasives, Inc���������������������������������������� 52
SATA Dan-Am Company���������������������������������� 25
Eckler’s Automotive���������������������������������������� 23
Schmelz Countryside�������������������������������������� 39
Emich Chevrolet���������������������������������������������� 39
Schomp Mazda����������������������������������������������� 12
Equalizer Industries, Inc���������������������������������� 24
Scoggin-Dickey Parts Center���������������������16-17
Finnegan Chrysler-Jeep-Dodge-Ram���������������� 2
SEMA Trade Show������������������������������������������� 29
Fisher Acura��������������������������������������������������� 39
Sorbothane Soft-Blow Mallet�������������������������� 22
Fisher Honda�������������������������������������������������� 39
Spanesi Americas������������������������������������������� 21
Flatirons Subaru��������������������������������������������� 39
Steck Manufacturing Company����������������������� 20
Ford Wholesale Parts Dealers�������������������������� 47
Steve Landers Auto Group��������������������������������� 6
Autobody News P.O. Box 1516 Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com email@example.com
Fowler Honda������������������������������������������������� 30
Stevinson Toyota West������������������������������������ 39
Freeman Mazda���������������������������������������������� 34
Subaru Wholesale Parts Dealers���������������������� 37
Software to Help Collision Repairers Work
Two Scientists Named Axalta Fellows����������������12
GM Wholesale Parts Dealers��������������������������� 43
Toyota of Laredo��������������������������������������������� 10
UAF Sets New Scholarship Record��������������������18
Honda-Acura Wholesale Parts Dealers�������26-27
Toyota Wholesale Parts Dealers����������������������� 45
Hyundai Wholesale Parts Dealers�������������������� 42
Volkswagen Wholesale Parts Dealers�������������� 46
Ken Garff West Valley Chrysler-Jeep-Dodge-Ram� 31
Young Chevrolet���������������������������������������������� 28
Phillips - California MSO Launches Kustomine
Yoswick - Why Collision Repair Shops, Insurers
Where Film and Auto Body Shops Collide����������46
autobodynews.com / SEPTEMBER 2021 AUTOBODY NEWS 3
The Rise of Amazon and How it Impacts the Collision Repair Industry by David Roberts and Raul Salinas, Focus Advisors Automotive
How much attention do you pay to those ever-present gray vans emblazoned with the Amazon logo? Did you ever stop to think who owns them? And who repairs them? The prevalence of smartphones and quick internet connections has completely and permanently changed the consumer landscape. Among these changes, Amazon has risen to become a firmly established and dominant player in nearly every industry. The e-commerce conglomerate and its promise of two-day deliveries has captured the attention and wallets of an estimated 147 million Prime members throughout the U.S. With so many customers to satisfy, Amazon has had to confront unparalleled logistical challenges. The pandemic-fueled online shopping sprees of American consumers following nationwide mandatory stayat-home orders showed just how reliant we have become on modern day technological solutions to our problems. The perpetually increasing demand for delivered products has led Amazon to reduce its dependence on traditional carriers like USPS, UPS and FedEx. In fact, researchers approximate that in 2020, Amazon delivered 2.5 billion more of its own packages. This represents an increase of more than 100% from 2.3 billion packages delivered through Amazon in 2019. Its approach to generating this delivery supply primarily relies on small businesses and independent contractors to do the work with assistance provided by the advanced software and capabilities of Amazon Logistics (AMZL). Delivery Service Partners, or DSPs, usually operate a few dozen commercial vans and are paid per route completed. The owners are classic small business entrepreneurs, meeting the needs of their clients by staying focused on speed, efficiency and customer service. The commercial vans of choice for DSPs are usually from the make of Amazon partners, e.g., the Mercedes-Benz Sprinter, Ford Transit
and Dodge Promaster. DSPs are permitted to use their own fleet of commercial vans as long as they meet Amazon’s key criteria. Otherwise, most DSPs resort to renting vans from Amazon’s third-party lease partners. How Collision Repairers Play a Role The rising prevalence of privately owned DSPs has direct implications to trends in the collision repair industry. It’s a simple equation: increased use of commercial vans equals increased collision repair and maintenance.
This trend is not only implied, but something we have observed from our clients across the U.S. For some of them, Amazon DSP repairs represent one of the fastest growing segments of their business. To adopt a similar market strategy and capitalize on this growing small fleet segment, shop owners should first identify whether their shop is reasonably near an Amazon distribution center. If a collision repair shop owner operates in a highly populated Metropolitan Statistical Area (MSA), especially one that is growing rapidly, chances are that there is an Amazon distribution center nearby. Even if a shop owner does not operate in a top MSA, they can still take advantage of this market opportunity by identifying smaller delivery stations that are used for lastmile deliveries. Currently, Amazon is in the process of investing more resources in efforts to expand its network of delivery stations across the U.S. The Need for Speed Downtime costs money for DSP operators. A DSP driver is expected to
4 SEPTEMBER 2021 AUTOBODY NEWS / autobodynews.com
make more than 30 stops per hour. As a result, drivers work in an expeditious manner that can ultimately cause more wear on the vehicle. Coupled with high mileage rates— and numerous opportunities to incur damage navigating tight spaces, streets and turnarounds—DSPs find their vehicles needing frequent repairs. The speed of repairs is a vitally important variable to getting these vans back on the road and earning revenue for the owners, so pricing of repairs will reflect the premium on fast turnaround. Some shops have
even developed mobile repair capabilities that allow DSPs to minimize downtime for the vans and keep them on the road. For MSOs and shop owners, DSP repairs are a small but growing opportunity to address the needs of small fleet operators with high on demand requirements. When it comes to collision services, DSP vans generally have modest repair requirements, but the work is constant and demands rapid repairs to keep the vehicles on the road. Services typically range from small item replacements like door handles, mirrors and windows to other minor body damage. The Future of Delivery Service Partners As the public shifts preferences towards electric and other fuel-efficient types of vehicles, Amazon is both leading with new technologies and following by rapidly adopting existing models. In 2019, Amazon co-founded The Climate Pledge in its efforts to be net-zero carbon neutral by 2040. Shortly later, Amazon announced its partnership with start-up Rivian, investing $7 million to produce
100,000 electric trucks. As Rivian Prime trucks start hitting the road, one can expect the current DSP program and its operating base to change. Rivian vans will roll out slowly and will likely have proprietary parts. However, it is never too late to start looking for new opportunities. In similar developments, Amazon’s Prime Air program, which is still in the works, aims to provide last-mile drone delivery directly to consumers. This shifts the balance in favor of Amazon by allowing it to control even more of its distribution market share. Who knows whether there will be networks of drone DSPs! Will drone repairs become part of the repair offerings of MSOs? Ultimately, nobody has a crystal ball, but based on what we know, DSPs are still a rapidly growing segment and there is ample room for innovative operators to broaden their offerings. Conclusion DSPs vehicles are an accelerating fleet repair opportunity with high performance requirements and likely full value pricing. As Amazon sets its aim for reducing its dependence on traditional order fulfillment solutions, one can expect its network of distribution centers and last-mile delivery stations to continue expanding throughout the U.S. As a result, more collision shop owners will find themselves repairing Amazon fleet vehicles. By proactively identifying nearby opportunities, shop owners can position their businesses to capture more volume, and ultimately hold more market share in this small but growing repair segment. Source: Focus Advisors Automotive
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Continued from Cover
‘Who Pays for What?’ are at least getting paid for it “some of the time.” “I’d like to see those numbers improve, but I’m also hoping the surveys raise shops’ awareness of the safety inspections they need to be doing,” Anderson said. The latest quarterly “Who Pays for What?” survey, slated to end July 30, focuses on “not-included” frame and mechanical labor operations. Shops can take the survey at https://www.surveymonkey.com/r/ L3H3JQP Anderson said the survey, which will take about 15-20 minutes, can be completed by anyone in a shop familiar with the shop’s billing practices and the payment practices of at least some of the largest national insurers. Each shop’s individual responses are held in the strictest confidence; only aggregated data is released. Survey participants receive a free report with complete survey
Lucid Expands Arizona Presence with Scottsdale Studio Location Lucid Group announced the opening of its newest retail location—the Lucid Studio at Scottsdale Fashion Square—on Aug. 7. This location, the ninth in a growing network of Lucid Studios, is the first in Arizona and sits just 50 miles from the company’s Advanced Manufacturing Plant (AMP-1) in Casa Grande. While at the Lucid Studio, visitors can experience the Lucid Air and learn more about the full lineup, and the company plans to open a separate Lucid service center later this year. “Opening our first studio in Arizona, just one hour from where the Lucid Air will begin rolling off the assembly line in Casa Grande this year, is a special milestone,” said Zak Edson, senior director of retail operations, Lucid Group. “This opening reinforces the company’s commitment to the region, and is in direct response to the warm welcome and the high level of interest shown for both our manufacturing operations and the products we are bringing to market.” The Lucid Studio design has
translated the company’s post-luxury design aesthetic into a welcoming physical environment where customers can review options for the full Lucid Air lineup of luxury, high-performance EVs.
This includes the Lucid Air Pure, a very well-equipped model available from $77,400 ($69,900 with available federal tax credit), through the Lucid Air Touring, which starts at $95,000 ($87,500 with available federal tax) and the Lucid Air Grand Touring, starting at $139,000 ($131,500 with available federal tax credit). The lineup features models offering up to 500-plus miles of projected range on a single charge, power levels up to 1,080 hp and quarter mile times as low as 9.9 seconds, making Lucid Air the new
standard for electric vehicle performance and efficiency. Every Lucid Studio offers a digitally oriented luxury experience tailored to each customer’s preferences, whether they visit in-person, make inquiries entirely online or combine the two. Lucid’s Scottsdale Studio allows customers to experience the brand and obtain information about its products in a location that underscores the company’s unique design aesthetic. The Lucid Studio Scottsdale is the first to open in Arizona, Lucid’s second home, and is the newest of 10 more set to open throughout North America by the end of 2021. Other locations will include Chicago, San Francisco, Long Island, Vancouver, San Diego and the D.C. Metro for an expected total of 19 studio and service center locations this year. Customers can visit during normal business hours or can book a personal appointment by contacting the Lucid team at lucidmotors. com/contact. They can always start exploring the Lucid Air through the “Design Yours” configurator. Source: Lucid Motors
See ‘Who Pays for What?’, Page 10
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NABC Recycled Rides, Farmers Insurance, Town East Ford, Trophy Nissan Donate Refurbished Vehicles to Dallas Recipients On Aug. 6, two deserving Dallas residents experienced a life-changing event—the presentation of two vehicles to provide them independence and the ability to work and take care of their families—thanks to the National Auto Body Council Recycled Rides program and the United Recyclers Group conference, along with car donors Farmers Insurance and collision repair partners Town East Ford and Trophy Nissan, both Berkshire Hathaway Automotive companies. The presentation was held as part of the URG Training Conference at the Dallas Hyatt Regency in Dallas on Aug. 6. NABC Immediate Past Chair Darren Huggins, who is national collision director for Berkshire Hathaway Automotive, served as the emcee for the presentation. He was joined by NABC Board of Directors member Brian Driehorst, VP of sales for Original One Parts; Sandi Freeman, program manager for NABC Recycled Rides; and Don Porter, CEO of URG. “First, I would like to say thank you to Farmers Insurance for donating these two vehicles—and applaud them for donating some 173 vehicles to the NABC Recycled Rides program
over the years,” said Huggins. “Our industry, from the recycling people to the collision people to the car dealers are the very best people I’ve ever met, and it’s no different here today. “I’m very proud that two of our Berkshire Hathaway Automotive shops repaired these vehicles and thank the team members at both shops who volunteered their time to restore them for our deserving recipients,” Huggins continued. “I’m also proud that our Berkshire Hathaway Automotive shops have done more than 30 NABC Recycled Rides in this market, and that NABC has presented some 112 vehicles here in Dallas. In the coming months, we’ll present our 3,000th vehicle as an organization, and that isn’t possible without the support of the folks in this room and the generousity of the collision repair industry as a whole.” The recipients, who were selected by Family Promise of Longview, were: • Jackie Grant, who received a 2013 Nissan Altima repaired by Trophy Nissan, is a grandmother raising her granddaughter. She lost her vehicle while she was out of work due to
surgery. The gift of reliable transportation will allow her to return to work and take her granddaughter to school, boxing and dance classes. She was unfortunately unable to attend because she is quarantined with COVID and the vehicle was accepted by Mark Lampert from Family Promise of Longview. • Randi Ruthart-Garrison, who was presented a 2014 Ford Fusion refurbished by Town East Ford, has an old, unreliable vehicle, which makes it challenging for her, her husband and their three children to get to work and school. A new vehicle will help her husband work and complete HVAC school and allow them reliable transportation to manage their daily lives. “I came to Family Promise when we were on the verge of homelessness,” said Ruthart-Garrison. “They helped tremendously. To go through this program and be selected is incredible. Having a reliable vehicle will be life-changing. I can take my family to doctors and daycare, and not break down on the side of road and have to walk with my three kids somewhere for help. I’m very grateful for this opportunity and thank every-
one involved. It’s just amazing and I’m very grateful.” NABC Recycled Rides is a unique program in which businesses representing all facets of the collision repair industry team up to repair and donate vehicles to individuals and families in need of reliable transportation. Since the inception of the NABC Recycled Rides program in 2007, members of the NABC have donated more than 2,750 vehicles valued at more than $36 million. Additional partners in the NABC Recycled Rides presentation included 1-800 Charity Cars, Big Bass Towing, 3M, English Color and Supply, Berkshire Hathaway Automotive, LKQ, PPG, As Tech, Stream Line Services and Tritek Window Tinting. The team members from Town East Ford who donated their time included Alejandro Cisneros, Clay Easthom, Shannon Fauver, Juan Luna, Josh Valle and John Ward. The Trophy Nissan team members who contributed to the repairs were Eduardo Alvarez, Andy Chandler, Jackson Griffin, Noah Henderson, David Rodriguez, Francisco Rodriguez and Kevin Nance.
First Tesla Model Y Weeks Away From Rolling Out Of Giga Texas by Andrei Nedelea, Inside EVs
Tesla’s new Gigafactory being built near Austin, TX, is expected to be completed this year, before it begins full-scale production in 2022. However, the first vehicles may roll off the production line way sooner than that, just weeks from early August, according to one source familiar with the matter. We previously reported more than a month ago Tesla had already begun testing the robots that will assemble the Model Y and it had also started casting parts for the vehicle. Then the first and most recent sign of production was a Model Y body. The latter was most likely used to check clearances before the robots were installed in that part of the factory, but it’s clear Tesla is doing all it can to start production as quickly as possible. Now Teslarati says it has insider information that production may start as early as mid-August, albeit not full-scale production of road-ready vehicles.
First, Tesla will perform test runs to make sure the entire manufacturing process is ready, but once those are completed, actual production of Model Ys that will reach customers can begin; the source says that moment is some two months away. Once Model Y production is ramped up, Tesla will shift its focus to Cybertruck and Semi production at the new Austin facility. Both are expected to be built at Giga Texas; initial plans predicted the first Cybertrucks would be built at the facility by the end of 2021, although there is a chance it may be pushed back. Regarding the Semi, there is no official confirmation it will be built in Texas too. Tesla has yet to officially assign a production location to make the Semi, which has now been delayed until 2022. Tesla currently has a theoretical annual installed capacity that exceeds 1 million units, between its California and Shanghai locations, and it expects to deliveries to increase to 750,000 in 2021.
8 SEPTEMBER 2021 AUTOBODY NEWS / autobodynews.com
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enabling the basecoat to dry fast. Only 2-3 minutes flash time is needed between coats and the clearcoat can be applied in 1015 minutes. The system’s EN-V® Series clearcoat line offers fast bake times as short as 10 minutes. Color ID and Matching Efficiency
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comprehensive color formula database. Formulas are updated daily through PPG’s PAINTMANAGER® XI color software. In the long run, the daily update of the database saves the technician valuable time searching for the right color formula.
Another real time saver is the Chromatic Variant Deck since autobodynews.com / SEPTEMBER 2021 AUTOBODY NEWS 9
Continued from Page 6
35-Year Industry Veteran Continues Arizona Body Shop’s Legacy As New Owner-Operator James Huard, a long-time industry veteran operating and managing many body shops during his 35-year career, has become the new owner-operator of Painter’s Collision Center, along with his wife Kelly Huard.
there, his career began to accelerate forward in leaps and bounds. As his ability to affect positive change was realized, Huard would ultimately be appointed to various executive management roles for national MSOs— general manager, regional manager,
“Having spent more than 30 years in collision repair, I’m confident Painter’s will emerge as a strong player throughout Arizona, operating multiple locations and offering repairs that meet the stringent of standards and those that exceed vehicle owners’ expectations.” — James Huard Operating in Queen Creek, AZ, a suburb of south eastern Phoenix, Painter’s Collision Center embarks on the next chapter in its 17-year history with a recognized and decorated industry veteran and competent management at the helm. Huard began his career as a detailer where he quickly grasped the business of running a shop. From
VP of operations—apexing as an operating partner for a body shop platform in Southern California, now with a shop of his own. “Some of my earliest memories as a growing up were in my father’s body shop, watching him transform tangled messes of metal into beautifully repaired vehicles with such grace,” said Huard. “As I grew older
‘Who Pays for What?’
I knew I wanted a shop of my own, and this year it became a reality and I couldn’t be happier. “Having spent more than 30 years in collision repair, I’m confident Painter’s will emerge as a strong player throughout Arizona, operating multiple locations and offering repairs that meet the stringent of standards and those that exceed vehicle owners’ expectations.” Painter’s Collision Center operates out of its original 25,000-square foot state-of-the-art facility. With a 16-member team, Painter’s Collision Center offers a full service valet, curbside and virtual estimates and an award-winning experience to the growing population of Arizona. “For the past several years, I’ve watched James build shops from square one, mentor staff into management positions and build profitable businesses,” said Kelly Huard. “Being able to work alongside James and build our business from one location into what I know will be many is a dream come true for us all.” Source: Painter’s Collision Center
findings along with analysis and resources to help shops better understand and use the information presented. The results of previous surveys are also available online at https:// www.crashnetwork.com/collision advice Source: CRASH Network
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Two Scientists Named Axalta Fellows Axalta recently announced Dr. Carmen Flosbach and Dr. Michael Koerner have been elevated to Axalta Fellow, the highest honor that a scientist or engineer can earn within Axalta’s Technology function. Through individual and collaborative contributions, Axalta Fellows have delivered commercial success with cutting-edge technologies and have had a strategic impact on Axalta’s businesses. Flosbach has been a catalyst for innovation throughout her 30plus year career. As a leading expert in resin synthesis, she has delivered multiple new polymers for various different chemistry types including acrylic, aspartate, polycarbonate, polyester and polyurethane. Koerner is Axalta’s technical expert in waterborne coatings and rheology and has spent 34 years with Axalta. He holds numerous patents and his innovations in waterborne technology have led to, or enhanced, waterborne coating technologies at Axalta. Source: Axalta
Louisiana Could Receive Billions from New Federal Infrastructure Agreement by William Patrick, The Center Square
Louisiana could receive billions of dollars in new federal infrastructure spending despite a disagreement over the plan between the state's two U.S. senators. U.S. Sen. Bill Cassidy, R-LA, was a lead negotiator in the roughly $1 trillion “Infrastructure Investment and Jobs Act” proposal that reached bipartisan agreement July 28. The plan includes $550 billion in new spending on top of reauthorizing existing federal infrastructure programs at their highest funding levels. “Louisiana has been impacted more than any other state by flooding and natural disasters these past few years. In addition to billions for roads and bridges, it includes $47 billion dollars to address resiliency and protect communities,” he said. “This is the largest investment in roads, bridges, broadband and our coastline in the history of our state,” Cassidy added. The legislation isn’t a done deal, though it passed a key mile-
stone when 67 senators voted in favor of a procedural measure to advance the bill toward floor debate; 60 senators are needed for final passage.
frastructure projects. “It would fund more than $6 billion for Louisiana’s roads and highways,” he said, adding the state has 1,634 bridges and more
“It would fund more than $6 billion for Louisiana’s roads and highways,” — Bill Cassidy U.S. Sen. John Kennedy, also a Louisiana Republican, voted against the bill along with 31 GOP colleagues. Sen. Mike Lee, R-UT, voiced the dissenting view, saying the full text has not been released and that the trillion-dollar spending package will only add to current “inflationary pressures and mounting federal debt.” “Housing, food, gasoline and electricity are all becoming more expensive in large part because the federal government keeps spending more money than it has,” Lee said. Despite concerns over what will appear in the finalized version of the Democratic-led bill, Cassidy said he received commitments for billions of dollars for Louisiana in-
than 3,411 miles of highway in “poor condition.” “Commute times are up 9.3% since 2011 and bad roads result in an average cost to drivers of $667 per year,” he said. Another $6 billion will purportedly fund state highway improvements and $371 million will go to Louisiana’s Clean Water State Revolving Fund program and Drinking Water State Revolving Fund, which includes $53 million for Lake Pontchartrain. Funding for the state's airports and streamlined permitting processes are included, as are grants for erosion, flooding and habitat restoration along Louisiana's coastal shorelines.
CARSTAR Colorado Business Group Donates Restored Vehicle to Local Car Enthusiast Through Make-A-Wish Foundation Stanton Gustavson’s wish was to restore his 1974 Datsun 240z. The Colorado Business Group, a collective group of CARSTAR owners in the Colorado area, teamed up to perform approximately $18,000 worth of work to the vehicle, for this well-deserving resident.
“We restore cars drivers every day in our business, but none are more special than the ones we do with Make-A-Wish Foundation for wish recipients and their families,” said Gary Boesel, owner, CARSTAR Alpine Auto Body and CARSTAR Jordan Road Collision. “We have been honored to work
with the Make-A-Wish Foundation to help make wishes come true for members of our community.” This is the 19th vehicle donated and restored for this group of body shops through the MakeA-Wish Foundation. The team also helped grant five vehicle wishes in 2020, through the midst of the pandemic. The CARSTAR Colorado Business Group also regularly sponsors local teams, gives back to the industry by donating to its local vocational schools and raises crucial funds and awareness for its charitable cause, the Cystic Fibrosis Foundation, through its annual golf tournament. It also provided free vehicle sanitization to front line workers during the height of the pandemic in 2020. This group of premier collision repair owners is committed to giving back to the Colorado communities it serves. Visit CARSTAR.com for more information. Source: CARSTAR
12 SEPTEMBER 2021 AUTOBODY NEWS / autobodynews.com
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FTC Settlement ry and relief defendant Linda Tate. “These auto dealers sent bogus applications to finance companies to qualify consumers for car loans that they could not afford, subjecting the consumers to defaults and reposses-
includes a monetary judgment of $7,203,227 against the defendants and makes the FTC an unsecured claimant in the bankruptcy proceedings. In addition, the settlement prohibits the trustee from selling any consumer information held by the defendants as part of the liquidation of the company’s assets. Instead, the
“Falsifying income and down payment information on car loan documents is illegal, and the FTC won’t hesitate to take action against car dealers who engage in this harmful conduct.” — Andrew Smith sions,” said Andrew Smith, director of the FTC’s Bureau of Consumer Protection. “Falsifying income and down payment information on car loan documents is illegal, and the FTC won’t hesitate to take action against car dealers who engage in this harmful conduct.” The settling defendants are currently in Chapter 7 bankruptcy proceedings and are under the control of a bankruptcy trustee. The settlement
trustee must either destroy the information or provide it to the FTC for destruction. The FTC vote approving the stipulated final order was 3-0-2, with Commissioners Rebecca Kelly Slaughter and Christine S. Wilson recorded as not participating. The settlement was approved and entered in the U.S. District Court for the District of Arizona. Source: FTC
COVID-19 Outbreak at Nissan of Durango, CO, Updated to 12 Positive Cases, 3 Fatalities San Juan Basin Public Health (SJBPH) has updated the number of positive COVID-19 cases associated with the Nissan of Durango, CO, outbreak to 12 and the number of fatalities to three. A fourth individual passed away after contracting COVID-19; however it does not meet the Colorado Department of Public Health and Environment’s (CDPHE) case definition to be added to the outbreak fatality list. The first case was identified June 19. Five cases of the Delta variant have been confirmed in association with the outbreak through full-genome sequencing conducted by CDPHE. As of Aug. 9, two of the 12 cases associated with the outbreak have been confirmed as “breakthrough” cases identified in fully vaccinated individuals. Over the course of the investigation, SJBPH and Nissan of Durango have implemented mitigation response plans for the business, including testing and contact tracing. All positive cases associated with Nissan of Durango have been put on isolation and those identified as unvaccinated close contacts were put
on quarantine. COVID-19 continues to circulate at “high” rates in La Plata and Archuleta counties as defined by the Centers for Disease Control and Prevention (CDC). Four active outbreaks are currently listed across the combined SJBPH jurisdiction of La Plata and Archuleta counties. An outbreak within a business is defined by CDPHE as five or more cases associated with a single facility in a 14-day period. “The recent COVID-19 fatalities are a tragic loss for our community and a reminder that the pandemic is not over,” said Liane Jollon, executive director of SJBPH. “We’re very grateful for the cooperation of Nissan of Durango in response to this outbreak and to every business still working to keep our communities safe. We are heartbroken to report the recent COVID-19 related deaths. “We urge everyone to get vaccinated as soon as possible and follow SJBPH’s public health advisory by continuing to wear masks in public indoor settings like the grocery store and other businesses.” Source: SJBPH
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UAF Sets New Scholarship Record The University of the Aftermarket Foundation (UAF) has awarded a record-setting $706,250 in scholarships to students throughout the country, it was announced July 26 by Danielle Sonnefeld, AAP, chair of the UAF scholarship committee. UAF scholarship recipients will be attending a twoyear or four-year college or university or an accredited automotive vocational program during the 2021-22 academic year. While the majority are studying to become mechanical, collision or heavy-duty repair professionals, others are pursuing degrees in such fields as business, engineering and IT/ cybersecurity that will lead to a career in the automotive aftermarket. A complete list of recipients can be found at www. automotivescholarships.com/ scholarship-alumni. Source: University of the Aftermarket
Armed EPA Agents Raid Colorado Auto Shop by Steven Symes, Motorious
For decades, car enthusiasts have despised the EPA and its ever-increasing regulations slapped on the hobby, but many automotive journalists have told them their worst fears were just plain ridiculous. Now that authoritarianism seems to be all the rage, to save the planet and protect public health, we’re seeing armed EPA agents storming speed shops in the name of justice. A recent report from The Denver Gazette highlights the growing trend. This is far from the first time federal authorities have targeted enthusiasts for alleged regulation violations. The Department of Homeland Security has performed raids to seize cars from owners who didn’t fill out all the import documentation precisely, complete with what looks like SWAT teams in full-body armor with long guns in early morning raids. In The Denver Gazette article, it does mention one spe-
cific raid on a speed shop where the EPA agents were armed, but only wearing “soft armor” and they didn’t kick down the door. Instead, they patted down the elderly father of the owner before questioning him and other employees as they arrived for work, which sounds like fun. During that raid, the EPA agents served a search warrant for “conspiracy to sell defeat devices.” Then the 12 armed agents went through the shop, collecting physical and digital forensics to try building a case against the company. The raid was part of the EPA’s National Compliance Initiative which kicked off in December, focused on busting anyone who makes, sells or installs emissions defeat devices, with hefty fines if someone gets caught. For many enthusiasts who like to race on a track, this could spell trouble. Under EPA regulations, anything deemed a “street vehicle” can’t be converted into a race vehicle. Yep, that’s right, even some lowly Mazda Miata
a guy tows to autocross events and never drives on the road but doesn’t have cats and other factory-installed emissions equipment could face severe penalties if caught. Where The Denver Gazette article goes off the rails is when it points to the RPM Act moving through Congress in D.C. as the supposed remedy to this problem. In a way it does, because any vehicle not licensed to drive on the road would be protected from EPA action. However, it doesn’t provide any provisions for the everyday enthusiast who drives his car to the track because he’s not affluent enough to have a truck, trailer and track-only racer.
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New SEMA Show still present that can affect the show. West Hall was an expansion project which had plans to start construction as early as 2017. So, we have been conducting scenario plans on how to manage our use of that facility for the last four years. We got lucky because when the pandemic hit, the expansion was already underway and fully funded. So, we knew that we were going to use this new space this year, to expand our total campus and allow us the opportunity to make our floor a little more efficient to navigate for our attendees and really make a great presentation to the industry.
Is the collision repair section going to move for 2021?
Yes, the collision and tools companies are going to be located in the Upper South Hall this year. The addition of West Hall gave us the opportunity to reconfigure some of our sections and realign some of them, which enabled us to combine business categories that we think will complement each other well, as well as allowing for growth in the future. So, when we reassigned some of the show’s sections, the collision and tools categories were partnered together because of their affinity for each other, and moved them up to the Upper South Hall. It worked out very well, because we can use the adjacent meeting rooms located there for our collision-specific programming. Everything you need―products, exhibitors, educational offerings― will be right there conveniently located in close proximity. This way, both our attendees and exhibitors can be more efficient and get more business done during the four days of SEMA. The beauty of what we have set up is the fact that our tools and collision sections are right above the wheel and tire sections. Those four sections align very well and are directly adjacent to the Renaissance Hotel. Our hope is that people will be able to have a home base during the show, so that they can cover more and have a better experience. Overall, the new West Hall has al-
lowed us to spread out our campus and make navigation easier while allowing us to showcase some of the finest aspects of the collision repair industry.
Who will be there and who won’t?
One of the main changes this year will be the fact that international companies without a pathway in the U.S. will have less levels of participation as compared to the past. Conversely, we’re getting a ton of support domestically, so it depends on the company and what their travel plans are, but for the most part, we’re going to have a robust show that will be well-attended and well-received. All of the big OEs that have attended in the past are back and most of the major players in the collision repair industry are also returning. In some areas, we are designating new categories to give them a start at the show. If we see that they’re gaining traction, we’ll incorporate them into an existing area or creating a new one. It’s an exciting time, with things like ADAS and electric vehicles, so those are two areas that we are watching carefully, so that we can be there on the cutting edge with the right exhibitors and appropriate educational offerings.
Safety is always a factor, but even more so this year because of the pandemic. Please tell us how you’re approaching this huge part of the puzzle for SEMA 2021?
We take our role seriously because we know that SEMA impacts almost every aspect of the automotive industry worldwide. Many of the things that appear at a SEMA Show will affect the industry for the next three to five years, so we realize the importance of the show. The local and federal municipalities last year hindered our plans for 2020, but this year we’re seeing a different environment and we’re more optimistic now than ever. We are working very closely with the people at the Convention Center, the Las Vegas Convention and Visitors Authority (LVCVA), the State of Nevada and Clark County, just to make sure so that we are well aware
20 SEPTEMBER 2021 AUTOBODY NEWS / autobodynews.com
of their plans. That way all of us, including exhibitors and attendees can make plans accordingly. Right now, we are not required to check everyone’s temperature in Clark County before entering the event. But we want to make sure that we’re adhering to everything they will ask us to do now and in the future. The Clark County Commission is calling all of the shots, so we are observing other shows, and formulating our processes based on that. As we get closer to the show date, we have a few plans holstered and ready to go. Once the Clark County Commission recommends their plan, we will start to reveal our safety and security plan. Every year, we learn more about how to promote the safest environment we can and allow people to get in and out to the show in the most efficient and convenient way possible.
What are some other changes that we will see at SEMA 2021?
Last year, we looked at the idea of making all of the aisles oneway, but we determined that it would be burdensome and not practical on
many levels. So, we decided to take some of our main aisles and broaden them, so that people can get more space and move around in a more suitable manner. So, you will find some wider aisles this year and more aisle space altogether. We are also creating other areas where if people want to step out of the flow of traffic for a moment to regroup or find that next booth, they can do that. For those who want to travel, we will now have access to an underground transit system that was invented by Elon Musk’s The Boring Company, with 60 cars running continuously. It will be able to move a lot of people to one of three stations, South Hall, West Hall and Central Hall. Eventually, this system will be operated autonomously and take people to the Las Vegas Strip, Downtown Las Vegas and the airport as well. It will take a 15– to 20-minute walk and turn it into a two- to five-minute trip, so we are excited about it.
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Tesla Model X Involved in Fiery Texas Crash: What We Know So Far by Joey Klender, Teslarati
A Tesla Model X was involved in a fiery accident Aug. 11 in Tarrytown, near Austin, TX. The vehicle was completely engulfed in flames when the Austin Fire Department arrived. The blaze was successfully put out after several minutes, but here is what is confirmed so far. After Teslarati inquired with the Austin Fire Department’s Public Information Office, we were told the driver was underage. Additionally, a foreign substance was likely a contributor to the crash, although the Austin FD did not clarify the nature of the intoxication. The driver was arrested for driving under the influence, a department spokesperson told us. CBS reported it was alcohol-related. The speed of the Model X at the time of the crash is unknown. Teslarati did not immediately receive a comment from the Austin Police Department regarding this bit of information. When electric vehicles catch
fire, the common blame is the batteries. While lithium fires are strong and often unpredictable, this fire was no different than any other
Credit: Austin Fire Info/Twitter
automotive fire. It just took more water to keep the situation under control. Fire Chief Thaier Smith said some fires fueled by a battery pack could take 30 to 40 times the water to extinguish compared to a combustion engine fire.
Certain protocols are installed insome fire departments around the country for handling battery electric vehicle fires. The Austin FD is currently training its firefighters how to extinguish fires fueled by lithium battery cells, the chief told CBS. According to a statement by the fire department’s spokesperson, the driver was not injured in the accident and was able to escape the vehicle before it caught fire. The vehicle slammed into a traffic pole, dislodging the pole and knocking it into the street. The vehicle continued into a Shell gas station parking lot, where it hit a gas pump. The gas pump did contribute to the severity of the fire, the Austin FD rep told us. Tesla and other EV fires are more widely reported than ICE vehicle fires. However, it should be noted Tesla’s statistics for 2020 showed one of the company’s cars is involved in a vehicle fire every 205 million miles traveled. A vehicle is involved in a fire every 19 million miles, according to the U.S. Department of Transportation.
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Pro Spot Denver Training Center Open House Aces the Test by Barbara Davies and
Autobody News attended Pro Spot International’s open house at the company’s brand new Pro Spot Aces of Denver Training Center, located at 5280 Steele Street in Denver, CO, on the evening of July 30. “It was a wonderful event, and I am proud of our team and the Colorado crew that made this possible,” said Ron Olsson, president of Pro Spot International.
Windshield Repair Kit, the NP-3 Nitrogen Plastic Welder, Dent Pulling Stations, the i4S and i5 spot welders, PR205MV and PR220MV Synergic MIG Welders, Dust-free Sanding Stations, the PR-5 Rivet System for aluminum riveting and the SP-1, SP-2 and SP-5DP Pulse MIG Welders. “The open house was a great time,” Fahey said. “Almost every piece of equipment that we carry is on display in the Pro Spot Aces of
will be used for training. “We have brand new offices and a 40-by-40-foot training center and classroom,” said Fahey. “The industry in this region badly needed
Hands-on Training: Ryan Swanson gives Barbara Davies of Autobody News some hands-on welding instruction on Pro Spot’s Aluminum Pulse SP-5DP MIG Welder.
Pro Spot Team: The Pro Spot Team proudly hosted guests for the July 30 open house at the new Pro Spot training facility in Denver. Pictured, left to right, is Ryan Swanson, training development manager; Bob Pluth, technical services manager; Lorinda Teague, sales administrator; Keith Fahey, sales manager; Bud Larson, Pickens Technical College; Ron Olsson, president; and Dennis Rogers.
The open house began with a tour of the 6,400-square foot facility, comprised of a warehouse distribution center, office space, classrooms and a complete hands-on training center that will allow Pro Spot to better serve its distributors and customers in the surrounding markets.
Official Ribbon Cutting: Ron Olsson and Keith Fahey make it official by cutting the ribbon at the Pro Spot Aces of Denver Distribution and Training Center.
Olsson was joined by Keith Fahey, sales manager at Pro Spot Aces of Denver, as they conducted the official ribbon-cutting ceremony. As the open house proceeded, Pro Spot provided guests with live and hands-on demonstrations of more than a dozen products, including the Ion Spot anti-static gun,
Denver Distribution and Training Center, providing the opportunity for our customers to come experience and receive hands-on training on nearly every product Pro Spot manufactures.” Fahey approached Pro Spot about his future plans and interest in solidifying his company to be a part of Pro Spot. “My dad started Aces of Denver 40 years ago, and I have been in the collision industry my entire life, selling and servicing Pro Spot for 28 years. It’s been extremely rewarding being part of such a great company,” said Fahey. “I’m so pleased that my son, Luke, and long-time service technician, Steve Hoff, along with myself, can continue doing what we have been doing so long—selling and servicing the collision industry in Colorado and Wyoming with Pro Spot products.” Pro Spot acquired Aces of Denver in November 2020 and began renovating the facility, adding a training center and classrooms to the distribution site. Half of the building still functions as a warehouse service center, while the remaining half
24 SEPTEMBER 2021 AUTOBODY NEWS / autobodynews.com
a local training center, so Pro Spot provided it, and we’ve received an overwhelming number of positive responses. The Pro Spot Aces of Denver Training Center is like
a miniature version of the Carlsbad headquarters, and we look forward to helping all the shops in this area with their training and service needs.”
A good time was had by all: Pro Spot showed guests and employees a great time during the Aces of Denver open house. Pictured, left to right, is Bob Pluth, Ron Olsson, Johan Huwaert of Garmat USA, and Ryan Swanson.
Pro Spot currently has training centers at its headquarters in Carlsbad, CA; Nashville, TN; Venice, FL; and now in Denver, CO, providing regional locations for its distributors and customers across the country. For more information, visit https:// prospot.com/
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autobodynews.com / SEPTEMBER 2021 AUTOBODY NEWS 27
Ford Statements on Electric Vehicle Sales and White House Announcement Ford Motor Company Executive Chair Bill Ford and CEO Jim Farley released the following statements on Ford’s electric vehicle sales and the White House’s fuel economy announcement. “It has been said that this generation is the first to feel the impact of climate change, and the last that can do something about it. I am proud that Ford is leading the electric revolution and standing for stronger standards that protect people and the environment as we progress towards a zero-emissions transportation future,” said Bill Ford. “Ford has always been a leader in sustainability and our employees continue their tremendous efforts to leave our children and our grandchildren with a cleaner planet.” “Ford is on an ambitious trajectory to lead the electrification revolution---from being the only full-line American automaker to side with California in favor of stricter greenhouse gas emissions, to electrifying our most iconic and popular vehicles, like the F-150 Lightning, Mustang Mach-E and E-Transit,” said Farley. “Customer demand has exceeded
our expectations. So, we expect to be well positioned to have fully electric vehicles account for 40% to 50% of our U.S. sales by 2030. We’re counting on strong cooperation among the Biden Administration, Congress and state and local governments, and are doing our part by developing high-quality, zero-emission vehicles that customers want.”
Background Ford is America’s No. 1 auto manufacturer and the only one to stand with California in support of stronger vehicle greenhouse gas emissions standards during the Trump Administration. Ford believes making great vehicles for its customers, protecting the planet and maintaining a strong business are complementary goals. That’s why Ford has committed to investing more than $30 billion in
vehicle electrification through 2025, and previously said it plans on at least 40% of its global sales volume being EVs by 2040. Ford is proud to be the first fullline automaker to bring all-electric full-size pickup trucks and commercial vans to customers in the U.S. The E-Transit will be available to customers later this year, the F-150 Lightning will be by mid-2022, and both will be assembled in the U.S. by UAW workers. Ford is also proud to lead on sustainability. It is committed to being fully carbon neutral worldwide by 2050, and Ford is the only full-line American automaker to advocate for one national standard to set the country on a path to a zero-emissions transportation future in alignment with the Paris Climate Agreement. Ford assembles more vehicles and employ more hourly workers in the U.S. than any other automaker. With dealerships in every state, and more than 5,300 U.S.-based supplier sites, Ford supports more than 1 million American jobs. Source: Ford
4 Added to I-CAR Board The I-CAR Board of Directors on July 29 announced the election of four individuals to fill open board seats, including two members returning for a second three-year term. The board’s election process concluded July 14 and new board members will assume their roles immediately following the Aug. 25 I-CAR Board of Directors meeting. The newly elected members of the I-CAR BOD are Barry Dorn, vice president of Dorn’s Body & Paint, Inc., representing the collision repair segment; and Jennifer Goforth, director of global aftersales mechanical engineering for General Motors Co., representing the OEM segment. Re-elected to second threeyear terms are Chris Evans, P&C auto claim consultant for State Farm, representing the insurance segment; and Sandee Lindorfer, auto claims design director for Allstate Insurance Co., representing the insurance segment. Source: I-CAR
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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.
From the Desk of Mike Anderson with Mike Anderson
Daily Release Meetings a Must for Successful Collision Repair Shops An Autobody News reader recently emailed me a question he had about daily release meetings at his shop. I always like hearing from shops because that’s often where I get ideas for this column. So let’s talk a little about release meetings: when they should be held, who should attend, what should be discussed. I want to start with the caveat that some people tell me they think release meetings are a waste of time. I disagree. I think they are critical for a shop’s success. And I suspect people who think that probably aren’t leading―or aren’t attending― good release meetings. When thinking about release meetings, I suggest thinking about a football game. At a football game, the play comes from the sidelines out to the quarterback on the field. The quarterback has 30 seconds to get that play off. So the team huddles so the quarterback can tell everyone the play, and the huddle ends with everyone voicing an enthusiastic “Break!” That huddle is really what a release meeting is all about for a collision repair facility. When I had my shops, we held a release meeting every single morning. My team was required to get to work by 7:30 a.m., and at 7:45 a.m., they had to be in uniform. That’s when the meeting began. Not at 7:50 a.m., not even at 7:47 a.m. It began at 7:45 a.m. Who was there? Everyone. The people who washed cars, the painters, the body techs, the parts manager, the estimators, the customer service reps. Everyone. Now, I will say I’m currently working with a shop that does $1 million a month in sales. For an organization of that size, it doesn’t make sense to have everyone come together for a single release meeting. But that company is divided into multiple teams, or “cells,” and each of those has its own release meeting with everyone on that team. In either case, the key purpose
of the release meeting is to make sure everyone is on the same page about the vehicles scheduled to be delivered that day, or on either of the next two days. So you’re looking out in advance three days. We’d discuss if there are any issues with any of those vehicles, in
Mike Anderson said a daily release meeting gets the entire shop on the same page, just like a huddle for a football team
order to take a proactive rather than reactive approach. The parts guy might say, for example, “We have all the parts for these cars, but the taillight for Mrs. Smith’s Toyota won’t be here until 2 p.m. today.” We’d make sure the painters knew everything that needed to painted that day, and in what order we wanted them painted. We’d let them know what they would be painting tomorrow, so they’d know what to move on to if they got through today’s work early. We’d make sure the customer service reps had the information they needed in order to communicate with customers. We’d review any appointments coming in that day, and find out there if there was any equipment that needed repairs or service, or any facility maintenance work needed. We’d make sure any sublet work had been scheduled to be handled by vendors. We’d discuss any warranty or customer request items we needed to process. We’d talk about who was going to be out on vacation, and make sure their responsibilities were being covered. As the only time of day when everybody is together, it can be a good time to highlight if it was an employee’s birthday or work anni-
30 SEPTEMBER 2021 AUTOBODY NEWS / autobodynews.com
versary, and give them some highfives. In any case, try to end each meeting on a positive, enthusiastic note, just like the chant of “break” at the end of a huddle. Here’s another thing: I don’t think the release meeting should ever last more than 15 minutes. In my shop, we started at 7:45 a.m., and everyone knew we had to be done by 8 a.m. when we opened our doors for business. A couple of cautions: When I talk to people about their grievances about release meetings, two things are the primary buzzkills. Those who show up on time don’t want to be left standing around, wasting their time, because whoever runs the meeting isn’t there. They also aren’t going to have much tolerance―nor should they―for a meeting leader who isn’t prepared. So in order to be prepared to lead
your 7:45 a.m. release meeting tomorrow, you likely will need to have some other brief, smaller meetings throughout the day. I liked to have a meeting with some key employees right before or right after lunch to make sure we were still on track for the day. I also liked to meet with my paint team at the end of the day to see if everything got accomplished. If it didn’t, I could update their list for the next day before the release meeting. I’ve got a document I’d be happy to send you that includes a sample SOP for release meetings, and highlights the topics that should be covered. If you’d like a copy, just email my assistant Tiffany at tiffany @collisionadvice.com and put “release meeting document” in the subject line.
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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.
Why Collision Repair Shops, Insurers Often Disagree on Repair Plans
The Collision Industry Conference Another panelist, consultant and (CIC) Industry Relations Commit- former insurance executive Roger tee held a panel discussion this sum- Wright of Vector Squared, concurred with Ed Attanasio mer centered around a fundamental claims personnel often lag in their question: Why is there so often a technical knowledge as vehicle techdisconnect between auto body shops nology evolves. “In the 1970s, I started out [in and insurance companies during the repair planning stage, particularly the insurance industry] and I went to when it comes to procedures related Vale Tech and became a ‘three-week to advanced driver sys- wonder,’ and realized shortly therewithassistance Ed Attanasio tems (ADAS)? after I knew nothing,” Wright said. Michael Giarrizzo, CEO of “The collision repair shops trained DCR Systems, which operates eight me for the next 20 years. I went in as collision repair shops under partner- an insurance representative or indeships with dealers in four Eastern pendent appraiser and would listen states, sees training as the key issue to what they had to say and learn. I leading to the frequent lack of align- guess we’ve lost that, maybe.” with Ed Attanasio ment on repair plans between shops and insurers. Giarrizzo said OEM-certified shops like his continue to get significant amounts of training as vehicle complexity continues to Attanasio increase, with Ed but insurance claims personnel often aren’t getting that ongoing technical training. He equated it to a medical insurer questioning a surgeon. Oregon shop owner Ron Reichen said one “Someone handling a medical size-fits-all solutions don’t work because the claim may not have that same level time to scan and analyze trouble codes on two of education [as with the doctor], but they Stacey Phillips different brands of vehicles can vary widely have trust in that education,” Giarrizzo said. “Whether you’re up to That said, Wright said he can speed with it all or not, there’s got to understand insurance company rebe a trust level in whoever has gone sistance to what could be seen as out and invested in the education.” blanket position statements or pro Ron Reichen of Precision Body cedures from automakers. Wright with Stacey Phillips & Paint in Oregon agreed keeping said it was 2016 when he first saw up with vehicle technology is “a an automaker statement calling for challenge for us, and we’re con- all of its vehicles to be scanned after stantly training.” He said collision a collision. repairers “trying to get alignment “It didn’t designate a year or [with insurers], often find ourselves anything, just that all vehicles are with Stacey Phillips being the educators for the bill-pay- to be scanned,” Wright said. “If we er.” The shift to virtual claims settle- asked everybody in the audience ment doesn’t help, he said, because then, how many of those cars that it adds to the challenge of showing you repaired last week did you scan, or explaining what a vehicle re- it may have been maybe three or quires. four or five or one. Was it necessary He said he also sees a “one size to recall all those other cars because with Stacey Phillips fits all” approach that isn’t helpful. we didn’t do it right or safe? The time needed to scan a vehicle “No, the shop believed they and analyze the information and fixed the car properly, to OEM stanincorporate that into a repair plan dards, and all of a sudden we have might take 45 minutes on one make a bulletin that says we have to scan of vehicle and two hours on another, everything. That causes an insurer even on similar hits, Reichen said. some consternation. How can that
Social Media for Shops
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be? What happened between yesterday and today?” A seemingly sudden shift by an OEM can have real financial consequences, Wright said. “For even a medium-sized insurer that has 10,000 claims a day, if you throw a number out for pre- and post-scans, you come out with about $2.7 million a day in average increased costs. Per day,” Wright said. “They didn’t price that in. Now, don’t cry for the insurers. They’ll get this all priced in with the next rate increase. But in the meantime, which can be months or years, they’re losing $2.7 million a day. That’s real money to them. “So they push back a little bit, and say, ‘Do we need it on every car? Maybe the Saturn that’s in the parking lot that got hit by a shopping cart doesn’t need to be scanned.’ It’s not that we don’t want to fix a car
Media and Publicity for Shops
right. But it creates a concern for us.” But Reichen argued neither shops nor insurers should be deciding how to repair a vehicle. “No one knows the vehicle better than the person who built the vehicle, so from a repairer’s position, if the manufacturer says we need to do it…I’m going to follow those repair procedures,” Reichen said. He noted an empty chair is now always placed on the stage at CIC to remind attendees of an important industry constituent not generally represented at the meetings: the consumer. That began after a Texas couple won a $42 million judgment against a dealership auto body shop after a jury found the shop’s failure to follow OEM repair procedures contributed to the couple’s severe injuries in that vehicle in a subseSee Often Disagree, Page 37
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Toby Chess is an I-CAR program instructor, Training specialist, and former salvage yard operator. Toby is universally known in the collision industry for his work with first responders and advocacy for body shops and consumers. He can be reached at firstname.lastname@example.org
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Deciding When Used Parts are Appropriate in the Collision Repair Process Recently, I was training in a body be addressed when you install a used shop in the Los Angeles area and no- door: ticed a used door for a vehicle repair 1. De-trimming the used door for paint access (not included) in the technician’s stall. The tech complained he needed more time to fix the door than what was negotiated between the shop with David McClune and wrecking yard. When I finished testing, I pulled out my PDR lamp and highlighted all the damage (See Figs 1 & 2).
You will also need to check the glass for the correct tint. 6. If the door has an applique, you will need to remove the old one from the used door and order and install a new one, another not-included item.
California Autobody Association
Year in Quotes with John Yoswick Fig. 1
Figure 5 shows a used front suspension received by a body shop. You will notice red coating on some of the parts. The shop was charged $60 for Magnafluxing the part. Let’s take a look at Magnafluxing and die checking. A Magnaflux test is a non-destructive testing (NDT) process for detecting surface and subsurface cracks in materials such as iron (Figs 6&7). Magnetic particle inspection can be
used only on ferrous materials like iron and steel. The Magnaflux process does
Removing paint finish to com-
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ply with your paint manufacturer’s Collision Repair Association of CA. Superior Parts. We are Your Source warranty. Most company’s paint
with Richard Steffen warranty will only cover between
12 to 13 mils of paint thickness, a not-included item. Also, check the door for prior damage repair. Fig. 2 3. Prior damage to the door is I marked all the damage on now the responsibility of the body the door other than the large dent. I shop that sells the part to the cusasked the owner of the shop a cou- tomer. ple of questions about the door. The 4. Check for corrosion and apshop and owner negotiated a $50 re- plied seam sealers. duction in price to fix the large dent. 5. Check to see if vehicle glass is with John Yoswick I used that amount to represent the tempered or laminated. More vehicles are using laminated door glass shop’s hourly door rate. instead of tempered. (See Fig 4.) Here are the questions I asked: It should be noted laminated door 1. Who is paying for the primer, glass is thicker than tempered glass. blocking and sandpaper on the entire repaired door? 2. Since you are charging one hour to fix the door, who is paying the rest of the repair time? 3. Who is going to make up forHendricks the with Karyn lost billing time? 4. What about the cycle time delay fixing the used door?
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not work on aluminum, but penetrating dyes are available to test aluminum parts in a similar way. Magnetic Particle Inspection is performed in four steps: • Induce a magnetic field in the specimen. • Apply magnetic particles to the part’s surface. • View the surface, looking for particle groupings that are caused by defects. • Demagnetize and clean the part.
testing technique, also known as liquid penetrant inspection (LPI), is a method used to locate surface breaking flaws such as cracks, porosity, laps, seams and other surface imperfections. The procedures for using these products are as follows: • Spray the part to checked with the cleaner SKC-S and wipe dry with a clean rag. (See Fig 9)
crack(s). • Follow the cleaning process with developer SKD-S2. Any crack(s) will be red in color. See Fig 10 for aluminum panel that was damaged and then repaired and welded. Notice all the cracks.
Looking at the suspension parts, the wrecking yard sprayed penetrant on the aluminum parts, but did not apply developer. They charged for Magnafluxing, but they used dye penetrant. They should have disassembled the parts when they did dye penetrant. They also should have checked the knuckle for cracks. Moving on to a used sub frame.
Dye penetrant inspection (DPI) is widely used to detect surface cracks. This non-destructive, three-part
• Apply Penetrant SKL-SP2 to the area that needs to be checked. Wait about 10 minutes for the product to wick into the crack(s). (See Fig 9) • Clean entire panel with a clean rag and cleaner. Do not spray cleaner directly to the panel, which will wash away the penetrant in the
Dye penetrant can be used on steel as well as aluminum. Fig 11 shows dye penetrant being used on a steel brake rotor. Fig. 12
There are several things that need to done to this part prior to purchase. First and foremost, you will need to check for square. This can be done with a tram gauge that has adapters. (See Figs 13 & 14) Since a subframe controls camber and caster, the part needs to be
autobodynews.com / SEPTEMBER 2021 AUTOBODY NEWS 35
straight and symmetrical. If you want a printout verification, you could use the Metrix Wand, Car-OLiner Point X or Chiefs Velocity. This would be a non-included item.
Next you will need to check for corrosion. If it checks out, you need to clean and refinish the part and again, this would be a non-included item. If the part has replaceable bushings, you may want to replace and again, the labor and parts to replace would not be included. Let’s look at everyone’s favor used part, the used quarter panel.
When a used quarter panel arrives at the shop, the first thing that needs to be checked is the paint thickness and any body filler from previous repairs. Most shops will drill out the spot welds to remove the outer quarter panel. Fig. 14
This is Honda/Acura’s position state-
ment: “Preparation of the salvaged/recycled parts can negatively affect installation, which may have an adverse effect upon crash energy management and occupant safety in any subsequent collision. For example: If the factory spot welds are drilled out of a rear outer (quarter) panel leaving holes in the flanges, there may not be enough flange material remaining to attach the salvaged/recycled part with the BRM-specified spot welds. This would require substitution of MAG plug welding to attach the panel. Substitution of BRM-specified welding methods is never approved by American Honda. Additionally, in cases where outer panels attach to certain ultrahigh-strength steel (UHSS) structural parts, weld method substitution may weaken the UHSS parts.” What this statement means is a quarter panel should be removed from the inside out so the panel does not have a drilled out metal. (See Fig.
16) Some more line items you would need on your estimate include: removing any attached parts, removing any foam from the used panel, removing all sealant and undercoating from mating surface areas, removing broken glass from flanges, removing finish thickness, repairing any holes from the removal process necessary for removal, repairing all hems on the used panel (including holes that occurred when removing the panel) before installation and finally disposing of the donor remains. When you add up all the associated costs, it may be more cost effective to use a new OEM panel. Furthermore, many dealers will price match. A used quarter panel will be a better option if: • Need additional attached part(s) and not just the outer panel. • It is more cost effective • OEM is backordered or not available You should understand if a vehicle
Hyundai Trunk Latch Recall: Emergency Releases May Fail by David A. Wood, CarComplaints.com
A Hyundai trunk latch recall has been announced for more than 348,000 vehicles because people could get trapped in the trunks without access to working internal emergency release latches. The 2017-2018 Hyundai Sonata, 2016-2018 Hyundai Sonata Hybrid, 2018-2020 Hyundai Accent and 2016-2017 Hyundai Azera trunk latches may become damaged. The damage can prevent the emergency trunk release latch to fail, a violation of federal safety standards. The Hyundai trunk latch pawl can contract and crack when exposed to high ambient (room) temperatures, causing damage to the pawl and the inability to use the emergency trunk release. Hyundai says the material used to manufacture the pawl isn’t strong enough to handle high temperatures. It’s possible a Hyundai owner will know of a problem if the trunk has trouble opening. In June, Hyundai was contacted by the National Highway Traffic Safety Administration asking the
automaker to look into a complaint from the owner of a 2017 Hyundai Sonata. The customer reported the trunk wouldn’t open and Hyundai learned the trunk latch assembly pawl had fractured. Hyundai had opened an investigation in 2017 after increased claims were filed in high temperature regions of the Middle East. The trunk latch assembly’s pawl material and shape was updated to better withstand the heat damage and fractures of the pawls. Hyundai dealers will replace the trunk latch assemblies once owner recall notices are mailed Oct. 1. The new trunk latch assembly pawl has improved material increasing its resistance to heat damage. Additionally, the new pawl contains steel reinforcement to prevent damage and fractures. Owners of Hyundai Sonata, Sonata Hybrid, Accent and Hyundai Azera vehicles may call 855-371-9460. Hyundai’s reference number for this recall is 208. In addition to the Hyundai trunk latch recall, Kia recalled more than 253,000 vehicles for the same problem.
36 SEPTEMBER 2021 AUTOBODY NEWS / autobodynews.com
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is still under warranty, that warranty is still enforced except for the used part. That warranty falls in your
lap, possibly the insurance company and/or the parts vendor. If an attached part fails due to the used part, that part would also be the responsibility of the repair shop. You will also need to inform your customer a used part was installed on their vehicle.
removed or salvaged from another vehicle that was previously involved in a collision. These parts are compromised by being exposed to weathering, rust, environmental damage and heat damage from welders used to remove the parts from vehicles that were previously involved in a collision. These elements can cause Audi’s high-strength steel, aluminum and carbon fiber vehicle unibody parts to lose their structural integrity, which can cause the vehicle to not perform properly if involved in a future collision.” I believe used parts are necessary in the collision repair process, but you need to do your due diligence when you make the decision to replace an OEM new part with that used part.
I found this quote on the Audi website and it should also be considered when ordering that used part: “Additionally, Audi does not support the use of parts that have been
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Continued from Page 32
Often Disagree quent accident. “As repairers, that looms over us every day,” Reichen said, saying that’s why a shop can’t decide a called-for procedure doesn’t have to be done. “Common sense might say it doesn’t. But we also have to come back and weigh that liability exposure if we don’t do it.” Giarrizzo was among those during the discussion to suggest insurers should voice their concerns about OEM repair procedures to the automakers, not shops. “I could agree that some of the manufacturers’ guidelines or procedures seem like they are there to cover [the OEM’s] liability, but that’s a discussion between the manufacturer who builds the car and the folks that insure the car,” Giarrizzo said. “As a repairer, you have no choice but to follow those guidelines, period. If those guidelines need to be changed or have some flexibility, that’s a discussion for a room in Detroit or wherever
that car is built.” Wright didn’t disagree. “We [as insurers] need to trust the shop because they’re the expert. They’re the one repairing the car. They’re the one guaranteeing the repair,” Wright said. “I think the insurers need to work with the OEMs a little more in understanding the engineering behind [the procedures]. Is there really engineering that says we have to replace the rack and pinion on every single car in an accident, even when they don’t define ‘accident’?” Wright noted insurers worked with GM when the Corvette C6 came out. “We wanted bolt-on panels. We wanted sectional front and rear rails,” he said. “They wanted a low insurance rate [for the vehicle] so they put those things on that car. We worked together. “We need to work on getting the insurers and the OEMs in a room together to talk about the engineering rational for doing some of the things they [call for] so we can protect the collision repair shop. They have to fix the car right.”
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Generating More Profit in Your Auto Body Shop with Windshield Repair by Stacey Phillips
When Richard Campfield was looking into starting a retail windshield repair business 35 years ago, he conducted some direct marketing to determine if it was worth pursuing. When he approached consumers with a chip or stone break, the typical response was, “It has been there for years; give me your card.” However, a consumer with a long crack asked if it could be fixed immediately.
Campfield, founder of Ultra Bond, opened a mobile service in 1986 focused on windshield crack repair and fixing the long cracks and chips that weren’t being addressed. At the time, there was not much information or technology about how and when to repair cracks. He began by trial and error and field testing followed by lab testing, to find out what it took to meet the same federal safety standard (FMVSS 205) as a new windshield and confirm the safety and efficacy of the field tests. He kept explicit details on every invoice and eventually developed his own windshield repair criterion, tools, resins and methods. In 1990, he began manufacturing and selling the tools, resins and kits to repair long cracks and chips. During his career, he has been granted 14 windshield repair patents. Since then, new vehicles have been introduced with an increasing amount of technology and Advanced Driver Assistance Systems (ADAS), such as lane departure warning, collision avoidance alert and heated wipers and windshields. These systems may use lidar, radar, cameras, sensors and other devices. As a result, Campfield said replacing
automotive glass is not as straightforward as it once was and the cost has tripled. Campfield recently teamed up with one of his competitors, Korey Gobin, sales manager at Delta Kits, to share information on how collision repairers can conduct windshield repairs in the age of ADAS and generate more profit in their facilities. Their presentation was held during Auto Glass Week 2021 at the Orange County Convention Center in Orlando, FL. Over three days, a wide range of presenters discussed current trends and issues in regard to automotive glass repair and replacement. Step one, according to Gobin, is to know yourself. “Know who you are,” he said. “Know your value and what you bring to the table. A lot of people forget that.” With the addition of ADAS features in new vehicles, Gobin said there are opportunities now available with windshield repair and replacement, and highly recommended repairers consider generating more with what they already have. For those considering adding or increasing windshield repair in their auto body shops, Gobin said it is a simple and easy process that takes about 15 minutes. In addition, windshield repair has very low overhead and costs approximately $1 or less in supplies. “We all know that time is money and time is very valuable,” he said. “If you’re not doing windshield repair, you should ask yourself, ‘Why not?’” Three Ways to Generate More Profit Gobin offered three ways to generate more profit with windshield repair: word of mouth, creating a referral program and what he referred to as “old-school” methods. The best business card, according to Gobin, is word of mouth. “If you do a good job, someone is going to tell somebody,” he said. Therefore, he stressed the importance of being very vocal and letting existing customers know the business’s services. “We tend to think that everyone
38 SEPTEMBER 2021 AUTOBODY NEWS / autobodynews.com
knows the services we offer, but a lot of people actually don’t,” said Gobin. “It’s your job to let existing customers know the services you offer, windshield repair in particular.” Many customers also don’t understand what is involved in a windshield repair and the value of doing it, so Gobin recommended taking the time to explain.
“Instead of assuming, actually state what windshield repair is and the actual value you bring them,” said Gobin. This includes letting customers know it is easy to do and won’t take much time, and they can save money having the windshield repaired rath-
er than replaced. Another way to generate more profit in an auto body shop with windshield repair is by creating a referral program. This involves offering customers a giveaway or reward for recommending the business to someone. “Your customers have a network they know and those are potential customers for you,” said Gobin. “It’s a numbers game; the more people you reach, the more potential customers you have, which could help generate more revenue for you.” He suggested being creative when coming up with an incentive to refer someone to the auto body shop. Examples include offering a discount on the next purchase, a free product, paying for a related product and/or a bonus upgrade. Some businesses are also finding success using “old-school” methods, such as cold calling and partnering with other companies. Gobin suggested reaching out to high-volume companies in high-traffic areas that
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deal with vehicles, such as car dealerships, lube shops and car washes. After explaining the value the business can offer to them and their customers, Gobin recommended aligning with them. “Be alert and aware of what’s out there and work with them,” said Gobin. “Having these types of businesses potentially offer or mention your business for windshield repair doesn’t take away from their existing business… and can help generate more revenue.” Campfield recalled securing this type of business relationship at a carwash in 2012. When he asked customers about chips in their windshields, he received the same response he did when first opening his business in 1986: “It has been there for years.” He began telling potential customers they have already paid for the repair in their insurance policy instead of saying it was free. “The word ‘free’ often brings up skepticism, so that got their attention,” said Campfield. “I found a way to say it more effectively and they seem to be more susceptive to getting a repair.” About half of Campfield’s local retail auto glass repair income for decades has come from windshield cracks. “Even though it is about onethird of our business, it is half the income because the amount charged for a crack is higher than that of a chip,” he said. Through his extensive experience repairing and replacing windshields over the years, Campfield has found the efficacy of fixing cracks is
there. “Structurally, it’s the most superior repair you can do,” he said. The resin for chips is limited to thin, low viscosity resin, whereas the resin used in cracks with the proper tools can be 10 to 100 times thicker. “When a consumer comes in with a chip, they say, ‘I don’t want it to crack.’ When they have a crack, they say, “I don’t want to replace it,’” he said. In either case, Campfield said always be up front with customers. “Your customers deserve respect, to be told the truth and to be given their options on whether the windshield is repairable or not,” he said. In 2007, Campfield helped create the American National Standard Institute (ANSI)―Repair of Laminated Automotive Glass Standard (ROLAGS). This standard has been updated in 2014 and is currently being updated again. It can be used to evaluate damages on laminated auto glass, aid in the decision to repair or replace the glass and codify the current best practices of laminated auto glass repair. Campfield said the importance of having a National (ANSI) Standard is two-fold. “First and foremost, it is to prevent consumers from being misled into unnecessary replacements,” he said. Campfield gave the example of being told a crack cannot be repaired if it is longer than a dollar bill or 6 inches. “This is not true,” he said. “The ROLAGS is 14 inches, not 6 inches.”
ASE Presents Chairman’s Scholarship The National Institute for Automotive Service Excellence (ASE) has awarded the ASE Chairman’s Scholarship for the 2021-22 academic year to Brock Voegele of Bismarck, ND. The ASE Chairman’s Scholarship recognizes the strong technical skills and foundational knowledge required to support the collision repair industry as an entry-level technician. The ASE chairman is a voluntary leadership position, and the scholarship recognizes and honors the dedication of the ASE chairman to the ad-
vancement of all service professionals. The ASE Board of Directors is proud to support recipients of this scholarship as they begin their journey as an automotive service and repair technician. Source: ASE
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40 SEPTEMBER 2021 AUTOBODY NEWS / autobodynews.com
Second, he said it requires windshield repair manufacturers and sellers to lab test their products to ensure repairs meet visual, durability and mechanical strength restoration. This helps makes sure businesses buying windshield repair kits, tools and resins would know they were safe to use on their customers’ windshields. Some cameras have built-in windshields that must be calibrated after a replacement so they operate properly. Currently, Campfield said there is no evidence any type of repair under the ROLAGS has caused problems with ADAS. “However, to be on the safe side, the Auto Glass Safety Council is developing the ROLAGS II to address if any of the break types at certain distances from the camera[s] will cause any alteration to any ADAS functions,” he said. Campfield shared the results of surveys he has conducted over the years that demonstrate the size of this untouched market. Parking lot surveys of windshield damage from 12 states showed out of 5,523 vehicle wind-
shields surveyed, there were 767 cracks and 2,202 stone breaks/chips. Campfield said windshields are the most frequent auto insurance claim in the U.S. and the recalibration of ADAS has increased both the number of claims and claim costs. “Insurers favor repairs over replacements and so do consumers,” he said. For auto body shops looking to make more money, Campfield highly recommends adding windshield repair to their businesses. Gobin agreed. “It’s best to educate your customer on what windshield repair is and the benefits of it,” he said. “Windshield repair restores the structural integrity of the windshield, retains the original factory seal [which avoids leaks], enhances the cosmetic appearance of the windshield and protects the environment by keeping laminated glass out of the landfills.” For more information, email Rich Campfield at rich@ultrabond. com or visit www.ultrabond.com, or email Korey Gobin at kgobin@ deltakits.com or visit www.deltakits. com.
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Stacey Phillips is an award-winning 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 firstname.lastname@example.org.
with Stacey Phillips
California MSO Launches Kustomine Software to Help Collision Repairers Work More Efficiently
Body Shops Giving Back
In 1956, Bruno Sanchez opened a David, worked in my grandfather’s 2,500-square foot auto body shop shop growing up. He began running in San Francisco, CA.Stacey He named it it in 1968 and eventually purchased with Phillips Bruno and Son Auto Body Shop and the business in 1980. After opening the goal was to offer honesty, pas- a second location in Pleasanton in sion and craftsmanship. 1991, he changed the name to B&S Over the years, the family busi- Hacienda Auto Body to reflect a ness grew and was eventually re- partnership the company had with a named B&S Hacienda Auto Body. nearby collision repair facility. with Stacey Phillips We recently celebrated our 30th Currently owned and operated by David and Maria Dolores and their anniversary of that location. The three sons, David Jr., Tony and original San Francisco shop was Rob, the company has expanded to eventually sold in 1994. My brother Tony, the general include six locations in the Tri-Val- manager, started working with my ley Area of California. father in 1992. Rob, vice president of with Stacey Phillips dealer relations, joined in 1993. After earning a business degree at Chico State, I came onboard in 1999. Since my grandfather established the first location 65 years ago, we have opened six shops in the Tri-Valley area of California: Dubwith Victoria Antonelli lin, Livermore Southfront Road, Livermore First Street, Pleasanton Old Santa Rita, Pleasanton California Avenue and San Ramon. My parents are semi-retired but In 1956, Bruno Sanchez opened Bruno and still come by the shops. They spend Son Auto Body Shop most of their time doing philanwithofEdB&S Attanasio David Jr., CFO Haci- thropy work, which they absolutely enda, said the Sanchez family has love. always been committed to providing excellent customer service and qual- Q: What prompted the company to ity repair work. develop Kustomine software for the The team recently developed collision repair industry? software, called Kustomine, dewith Gary signed to empower body shopsLedoux with Jeff: I grew up in the same neigha paperless customer experience borhood as David, Tony and Robthat reduces environmental impact, bie and we had been trying to work saves time and money, and provides together for years. Finally, in 2019, cleaner data for the tools used to run B&S engaged my company to build the body shop. a better way to connect with cus Autobody News reached out to tomers from the time they initially David Sanchezwith Jr. andStacey Jeff Hill,Phillips an drop off their car through to the deinformation technology (IT) consul- livery process—from quote to cash. tant who helped develop the prod- Ultimately, we figured out how to uct, to find out more about Kustom- improve this process using modern ine and what led the team to create web development architecture and the solution for the collision repair communication methods such as industry. texting and email.
Tips for Busy Body Shops My SEMA
an estimate, they are handed a tablet, iPad or Surface computer to input basic personal information. Then, the CSR or estimator takes pictures of the damage and sends the information to the application, which we call Kustomine. Customers immediately receive a welcome message via email or text, as well as information regarding their insurance policy and rights. The estimate is also created automatically. The solution allows us to take estimate data virtually in real-time and push it to the custom CRM application. The software provides a 360-degree view of the repair so a customer can stay updated about everything concerning their vehicle. It also allows us to remarket to our customer base effectively. Q: How is it currently being used and what has the reaction been from
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Q: Can you share some history about B&S Hacienda Auto Body?
Q: Can you provide an overview of the software?
David: My dad, who is also named
Jeff: When customers come in for
42 SEPTEMBER 2021 AUTOBODY NEWS / autobodynews.com
customers and employees? David: We rolled out the product to our flagship location in Pleasanton in December of 2019. Once we realized how successful it was, we began using it in the rest of our locations. We’ve found that it has led to a drastic increase in customer engagement. During COVID-19, we tried landing every person who came through the door. The product helped us do that with the welcome email/text and providing information about their rights. Jeff: In regard to employees, most of those on the front lines, including the CSRs and estimators, are at least a generation younger than us. Their comfort level with this type of technology is very high and they welcomed it with open arms.
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Q: Who is your target market? David: Kustomine was designed for shops looking for change and/or better processes. This includes single, independent shops as well as giant MSOs. We feel that the product has great potential for the industry. We’re gearing up to launch our public beta of the cloud-based product on Sept. 1.
improvement. For example, we’ve been able to shorten the amount of time that needs to be spent on an estimate by figuring out how long it will be between first notice of loss (FNOL) and when an estimate is turned into a work order. We can track all of those metrics and figure out which ones take the longest.
David: One of the biggest benefits is the elimination of unnecessary waste. I think that our industry does enough wasting and we wanted to address that. With Kustomine, we created a paperless, seamless process that essentially eliminated the use of paper. This is especially relevant since the pandemic. Also, shops receive 100% clean data because David and Maria Dolores and their three sons, Tony, David and Rob customers are entering it themselves. We often re We’re hoping to have a short ceive the wrong email address due beta cycle and launch version one of to a keystroke error from the estimaKustomine by the end of the year so tor or a language barrier between the we’re ready for anyone who wants customer and CSR. Through the use to sign up and buy a beta license. As of this tool, we know we’ll have aca small company, we look forward curate information. to people’s input and find out how In our industry, a shop typically to make this worthwhile for every- writes an estimate and if the custombody. er leaves, you’re more than likely not going to get the job. By touching Q: What are some of the benefits for a customer immediately and sending auto body shops using Kustomine? them useful information, we have found the capture rate is greater beJeff: Kustomine securely stores all cause of the instant communication. of the documentation pertaining Nine times out of 10, it’s a custo the repair and generates reports tomer’s first accident in seven years. that are useful for growing the busi- Things change over time and people ness. For example, you can reach need to know their rights, including all of your customers who own a that they can go to the shop of their certain car brand and do individual choice. We ensure they receive that outreach. All of the information is information immediately. stored on an encrypted database and We are an OEM-centric company that takes pride in being part travels across a secure SSL channel. Based on this information, we of more than 10 OEM certification can create targeted communica- programs. Once we communicate tion to reach potential and current that to potential customers, I believe customers and focus on process it helps them decide to have their car
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44 SEPTEMBER 2021 AUTOBODY NEWS / autobodynews.com
repaired in one of our shops. Q: What is the importance of being OEM certified? David: Without a doubt, it’s the best way to fix a vehicle. With cars being more advanced and complex to repair, it’s essential to do your precrash analysis and calibration and understand what you are fixing. In our opinion, the OEM data is priceless. We do a lot of research and documentation to make sure we are repairing vehicles properly and putting them back to the OEM’s specifications. Although it can be a significant expense, we are willing to pay for it. There are too many things that could go wrong in the vehicle you are working on. Our job is to make our customers safe with every repair. This is going to become even more important in the future. Q: What type of philanthropy and community service does your family take part in? David: My parents are very passionate about community service and in-
stilled it in us. They have been key members of the Pleasanton Lion’s Club for at least 30 years. Although it is a small group, they do a tremendous amount of work in this area. My mom also supports the Juvenile Diabetes Research Foundation, a global organization that funds Type 1 diabetes research. One of the organizations near and dear to my heart is Sunflower Hill, which is dedicated to creating places where adults with intellectual and developmental disabilities, including autism, live and work. I have an employee and a friend who both have children with autism and I’m thankful that my wife and I can support that organization. We are also involved with the College is Real program, where we donate and assist underprivileged children apply to, attend and graduate from college. Some are the first kids in their families to earn their college education. Our family believes in philanthropy and loves to give back to the community where we grew up. We’ve been blessed with good fortune and want to give back.
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GM Class Action Lawsuit Alleges Airbag Failures Kill People by David A. Wood, CarComplaints.com
A GM class action lawsuit alleges the sensing and diagnostic modules prevent the airbags and seat belt pretensioners from deploying in certain frontal crashes. According to the class action lawsuit, at least 1,298 people were killed or injured in frontal collisions in which the airbags failed to deploy in GM vehicles. The lawsuit alleges that statistic is based on information from the National Highway Traffic Safety Administration from 1999 to the present. According to the class action: “The ‘Class Vehicles’ herein include all vehicles in the United States that contain the SDM [sensing and diagnostic module] Calibration Defect that were (1) manufactured, sold, distributed, or leased by Defendants or (2) manufactured, sold, distributed, or leased by Old GM and purchased or leased by Plaintiff or a Class member after July 10, 2009.” The General Motors class action lawsuit was filed by plaintiffs
Jamar Chism (2012 Chevrolet Traverse), Ashley DeGruy (2014 Chevrolet Equinox), Kissy Elliott (2014 Chevrolet Traverse), William Garrison (2014 Chevy Silverado), Matthew Mastracci (2014 Chevy Silverado), Arthur Ray (2010 GMC Sierra 2500), Mark Silver (2014 Chevrolet 1500 Express) and Kenith Yates (2014 Chevrolet Silverado LD.) None of the plaintiffs allege their GM vehicles experienced any airbag or seat belt failures. But those plaintiffs allege millions of vehicles are dangerous to drive because the airbags and seat belt pretensioners can fail right when they are needed the most. The plaintiffs claim the airbag control units are defective, components GM refers to as sensing and diagnostic modules. The GM sensing and diagnostic module commands the airbags to deploy and the seat belts to tighten when the control unit senses a crash. The GM vehicles are allegedly equipped with airbag control unit software calibrated to prevent the airbags and seat belt preten-
sioners from deploying 45 milliseconds after a crash has begun. The lawsuit says this is a serious problem where a crash involves multiple impacts and the airbags fail to properly deploy. The lawsuit alleges occupants will never be protected in certain GM frontal crashes that involve multiple impacts. The class action provides an example where a vehicle first hits a curb and then veers and hits a tree, or a vehicle first hits a speed bump and then crashes into the vehicle in front of it. These are “concatenated” crashes which involve multiple inputs for the sensing and diagnostic modules to detect during a crash sequence. “In concatenated crashes, the first part of the incident (hitting a curb) sends the SDM into its ‘wake up’ or ‘stand by’ mode. The initial curb hit does not trigger the airbag or tighten the seatbelt, but the SDM ‘wakes up’ to confirm whether further irregular signals will follow and indicate a need for the seatbelts or airbags,” the GM class action lawsuit alleges.
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The GM airbags and seat belt pretensioners can allegedly only be triggered “within 45 milliseconds of a first, irregular signal. If a second signal occurs after 45 milliseconds, the SDM purposefully, by design, disregards signals that would otherwise trigger airbag deployment.” This, according to the class action lawsuit, results in a “dead zone” beginning just 45 milliseconds into a crash after which occupants are completely vulnerable. General Motors has recalled millions of vehicles due to problems with the sensing and diagnostic modules, including a recall of 4 million vehicles in 2016. The modules also caused another recall of about 88,000 GMC vehicles in 2018. The GM class action lawsuit was filed in the U.S. District Court for the Eastern District of Michigan: Chism, et al., v. General Motors, LLC, et al. The plaintiffs are represented by the Miller Law Firm, P.C., Lieff Cabraser Heimann & Bernstein, LLP, Baron & Budd, P.C., and Birka-White Law Offices.
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These Dealers are Genuine Wholesale Parts Specialists. autobodynews.com / SEPTEMBER 2021 AUTOBODY NEWS 45
Where Film and Auto Body Shops Collide by Ed Attanasio
A few years back, a British company produced a comedy series about life in an auto body shop that dealt with all of the crazy and wacky things that can happen in this industry. The characters they created were classic. First, there was the boisterous semi-retired owner who was well-known for randomly dropping in to yell and throw things. Then, there was the manager who spends all of his time hiding from the owner while taking it out on the shop’s employees. The techs are an interesting group, all in their 40s and all working on flat rate, so it’s a dog-eat-dog environment. The painters are all spraying solvent and constantly lobbying for waterborne, and everyone there calls the front office “Drama Central.” Imagine “Taxi” meets “Cheers” with a lot of soap opera thrown in. Any of this sound familiar? It might just work, but getting any TV series greenlit in today’s Hollywood can be difficult, though many of the newer streaming channels―Netflix, Amazon, Hulu, Peacock, etc.―are constantly searching for new ideas and hungry for fresh content. Maybe a sitcom about the collision repair industry could be done in an animated series, like “Family Guy” or “The Simpsons”? In 2007, a production company created a series, “American Body Shop,” for a one-season run of nine episodes. The storyline featured Desert Body & Custom, an auto body shop in Phoenix, AZ, described on IMDb as “the professional home for a bunch of twisted (and bent and sometimes, smashed) characters,
including Sam, the owner; Rob, a technician whose solutions are usually much more complicated than any problem; Johnny, a displaced
In 2007, a production company created a sitcom, “American Body Shop,” but after one short season of nine episodes, it was not renewed. Credit: IMDb
(and very kinky) Brooklynite; Tim, who has a penchant for inappropriate pranks; Luis, a Peruvian immigrant who feigns a lack of English to mask a mysterious personality; and Denise, the harried receptionist who can barely tolerate her coworkers.” In one of the first episodes, the shop’s owner, Sam, decides to sell the business and pursue his dream of hiking the Appalachian Trail. In another one, the shop fails an EPA inspection and is threatened with a potential shutdown. Eventually, poor ratings shut this series down, even though it had some excellent acting, notably from Nick Offerman, who went on to fame starring in “Parks & Recreation.” The creator, Sam Greene, broke all the rules by filming the pi-
lot and then sending it around to the networks, which rarely works. But in this case, it did―at least for one season. Body shops have appeared in a lot of movies. In most cases, nefarious and highly illegal things happen there. There were body shops in “The Wolf of Wall Street,” “Mad Max” (“You bend it, we mend it.”), “Corvette Summer” and “Christine”―I almost forgot Big Pussy had a shop in “The Sopranos.” In the Canadian series, “The Trailer Park Boys,” the main characters start a body shop, Success Auto Body & Repair, in an episode titled “Countdown to Liquor Day.” After being released from prison, the boys start a body shop, figuring they learned collision repair while in prison. But, as we all know, it’s not that easy and the Trailer Park Boys failed terribly. Film producer Jose Herrera of Mio Productions in Silicon Valley has an impressive resume in film that includes producing award-winning films. He believes a body shop would be an outstanding setting for either a reality show or a sitcom, and that’s why he is working on a screenplay and a treatment for a dramatic series. “The environment in a busy body shop, with a whole slew of characters who all have their own agendas, is perfect for TV,” Herrera said. “The David vs. Goliath relationship between the insurance companies and the collision repair industry is ideal for the screen because every protagonist needs at least one villain. Then, of course, you have the customers, each with their own backstory as well.” Herrera knows he wants to de-
500,000 vehicles on lease. Founded in 1957 as Executive Leasing with a fleet of just seven cars, Enterprise Fleet Management has celebrated a number of significant achievements over the years. Since its creation, the business has collaborated with its affiliate Enterprise Holdings to deliver a total transportation solution and invested
46 SEPTEMBER 2021 AUTOBODY NEWS / autobodynews.com
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pict a body shop as accurately as he can, so he started hanging out in shops until the pandemic hit. “I want to pick up the vibe and meet these people. Every shop needs that one old technician who is fighting new technology and another younger one who is excited about doing things a little more out-ofthe-box,” Herrera said. “New technology has changed the industry on many levels and a lot of shops are struggling to catch up, so that is another angle we want to include in both of our concepts.” Has Herrera thought of any particular actors or actresses to be cast in his proposed series? “We won’t have a huge budget, so we will probably be going with some new, unproven people,” he said. “In a perfect world, I’d love to have someone like Matt Damon or Matthew McConaughey as the shop owner, Bill Hader or Jim Carrey as technicians, Steve Buscemi as the painter and Melissa McCarthy running the front office. That would be awesome!”
in new information technology solutions to better serve its customers. Source: Enterprise Fleet Management
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CCC Promotes Goodson to CTO CCC Intelligent Solutions Inc. named John Goodson senior vice president and chief technology officer. Goodson joined CCC in 2020, successfully driving innovation across the business, accelerating application of AI throughout solutions and expanding industries served by the CCC Cloud platform, which today serves 30,000 businesses. Goodson succeeds Pete Morowski, who is retiring after eight years with the company. As chief technology officer, Goodson will lead research and development, product development, architecture, security, IT operations and infrastructure, business applications and data science. This will enable CCC to continue powering mission critical workflows, intelligent automation and better experiences for clients and the millions of drivers they serve. Source: CCC
Boyd Group Reports 44% Sales Increase and Demand for Labor in U.S. As the business world continues to operate nearly a year and a half into the COVID-19 pandemic, The Boyd Group announced Aug. 11 sales are up and demand has increased in the U.S. for the company’s services to the point more staff is needed, and the company acquired more locations. The Boyd Group is one of the largest operators of non-franchised collision repair centers in North America, operating under various brand names in Canada and the U.S. The company owns Gerber Collision & Glass, Gerber National Claims Processing, Glass America, Boyd Auto Body & Glass and Assured Collision Repair Professionals. “Comparing the second quarter of 2021 to the same period of 2020 demonstrates how significantly the business was impacted by the pandemic one year ago and how far we have come since that time,” Timothy O’Day, the Boyd Group president and CEO, said in an announcement Aug. 11 about the company’s second quarter of 2021 results. “During the second quarter, we saw infection numbers and restrictions decrease,
while vaccination levels increased.” The company “achieved strong same-store sales growth in the quarter,” which ended June 30. “Although we continued to experience reduced demand in certain markets at the beginning of the second quarter, demand accelerated in most U.S. markets as the quarter progressed, O’Day said in the announcement. “By the end of the second quarter, demand in the U.S. was at meaningfully higher levels than we experienced in the first quarter of 2021.” According to O’Day, the company still has work to do to meet the increasing level of demand when it comes to staff and technicians. While still at below pre-pandemic levels, demand for collision repair accelerated in the U.S. during the second quarter of 2021 “in stark contrast with the second quarter of 2020 where demand was significantly diminished due to the COVID-19 pandemic and expenses were aggressively reduced accordingly,” the announcement said. Boyd’s sales increased by 44.4% in the second quarter of 2021,
Toyota Debuts Mobile Collision Assistance Service Toyota and Lexus drivers now have a new assistance service available to them in the moments following a collision. Collision Assistance, a just-intime support service, is now available to drivers within the Toyota and Lexus mobile app. The feature within the Toyota and Lexus Owners Apps offers guided instructions to help drivers navigate a post-collision repair process.
Toyota worked with CCC Intelligent Solutions Inc., a leading SaaS platform for the multi-trillion-dollar P&C insurance economy, to develop Collison Assistance. The CCC mobile technology combines guided accident documentation and access to claims and management services to assist drivers following a collision. Toyota transmits accident and vehicle telematics data to CCC to initiate the program.
Collision Assistance is designed to let the customer choose how they’d like to handle the claim and repair processes, providing convenience and safety while also ensuring owners are informed about the process through completion. “Safety for our customers is paramount,” said Steve Basra, Toyota Motor North America, Connected Technologies group vice president. “The minutes following an accident can be critical---drivers are often confused and uncertain about what to do. By incorporating Collision Assistance into our owner app, we can offer help when it is needed. We aim to deliver innovative features to our drivers. With Collision Assistance, we’re offering additional safety and peace of mind.” Collision Assistance is an extension of the Safety Connect suite of features available to Toyota and Lexus owners who have an active subscription or are within the trial period of select 2018 model year or newer Toyota and Lexus vehicles. After the driver has confirmed they are safe and without injury, the Collision Assistance app can be used to guide drivers to collect important
48 SEPTEMBER 2021 AUTOBODY NEWS / autobodynews.com
to $444.6 million from $308 million during the same period in 2020. The company’s cash balance was $35.6 million. Boyd acquired 39 locations, including 16 locations previously operated as John Harris Body Shops in Georgia and South Carolina. Just after the second quarter ended, Boyd followed up and acquired 39 additional locations, 35 of which operated as Collision Works in Oklahoma, Kansas and Missouri. O’Day said, as demand continues to increase in 2021 and sales are still below pre-pandemic levels, “demand is exceeding our capacity in all U.S. markets.” The company is working on adding more staff. In Canada, however, demand remains significantly lower than before the pandemic. “Looking to the balance of 2021 and beyond, we continue to be confident that we will maintain progress toward our long-term growth targets and operational plans,” O’Day said. (C) 2021 by glassbytes.com. Reprinted with permission. All rights reserved. For more information contact www.glassbytes.com.
accident documentation, connect them to a network of auto insurers for optional claim submission and provide search capabilities to help locate a collision repair facility. The feature will prompt drivers through the entire process, from data gathering and insurance claim management all the way through collision repair. “Toyota is taking a comprehensive approach to post-collision management, and we’re proud to support its mission to deliver world-class safety experiences to drivers,” said Andreas Hecht, CCC’s OEM Services Group SVP. “By using CCC’s technology to establish a personal, near-real time connection with drivers, automakers can positively impact the often-stressful post-collision experience.” The Collision Assistance Feature is made available to Toyota and Lexus owners through the Owners App. Toyota and Lexus Owners App downloads are available for iPhone or Android smartphones. To learn more about Collision Assistance, visit Toyota USA on YouTube. Source: Toyota, CCC Intelligent Solutions Inc.
General Motors Names Global Leads
General Motors announced the appointment of Kent Helfrich as vice president, Global Research and Development, chief technology officer and president, GM Ventures; and Omar Vargas as vice president and head of Global Public Policy. Both appointments were effective Aug. 1. Helfrich is currently executive director, Advanced Technology and Partnerships. He replaces Matt Tsien, who has elected to retire after 45 years with the company. Vargas was most recently senior vice president and chief Government Affairs officer for 3M Company. Vargas held multiple government affairs positions at 3M between 2017 and 2021, including being named senior vice president and chief Government Affairs officer in April 2021. Source: GM
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FTC Issues Rule to Deter Rampant Made in USA Fraud The Federal Trade Commission finalized a new rule that will crack down on marketers who make false, unqualified claims that their products are Made in the USA. Under the rule, marketers making unqualified Made in USA claims on labels should be able to prove that their products are “all or virtually all” made in the U.S. Commissioner Rohit Chopra was joined by Chair Lina Khan and Commissioner Rebecca Kelly Slaughter in a statement, which noted the rule will especially benefit small businesses that rely on the Made in USA label, but lack the resources to defend themselves from imitators. The new rule codifies a broader range of remedies by the FTC, including the ability to seek redress, damages, penalties and other relief from those who lie about a Made in USA label. It will enable the FTC for the first time to seek civil penalties of up to $43,280 per violation of the rule. While stiff penalties are not appropriate in every instance, they send a strong signal to would-be violators that they abuse the Made in USA label at their peril. “The final rule provides substantial benefits to
the public by protecting businesses from losing sales to dishonest competitors and protecting purchasers seeking to purchase American-made goods,” said Chopra. “More broadly, this long-overdue rule is an important reminder that the commission must do more to use the authorities explicitly authorized by Congress to protect market participants from fraud and abuse.” In 1994, after the North American Free Trade Agreement took effect, Congress enacted legislation authorizing the FTC to seek penalties and other relief for Made in USA fraud, but only after the commission issued a rule. However, there had long been a bipartisan consensus at the FTC that Made in USA fraud should not be penalized. The final Made in USA Labeling Rule changes course on the commission’s longtime approach. The rule does not impose any new requirements on businesses. Instead, it codifies the FTC’s longstanding enforcement policy statement regarding U.S.-origin claims. By codifying this guidance into a formal rule, the commission can increase deterrence of Made in USA fraud and seek restitution for victims.
Over the course of the rulemaking, the FTC heard from hundreds of ranchers and shrimpers concerned about Made in the USA labels that mislead consumers. The commission is pleased that in conjunction with this announcement, USDA Secretary Tom Vilsack has announced the USDA will complement the FTC’s efforts with its own initiative on labeling for products such as beef, and other agricultural products regulated by the Food Safety and Inspection Service. The commission issued a notice of proposed rulemaking for this rule in June 2020. The commission received more than 700 comments on the proposed rule, most of which either were supportive, or sought changes that were not legally permissible. The final rule adds a provision allowing marketers to seek exemptions if they have evidence showing their unqualified Made-in-USA claims are not deceptive. The Made in USA Labeling Rule, which will be published in the Federal Register, incorporates guidance set forth in the commission’s previous decisions and orders and its 1997 enforcement policy statement on U.S. origin claims.
Consistent with this guidance, the rule will prohibit marketers from including unqualified Made in USA claims on labels unless: final assembly or processing of the product occurs in the U.S., all significant processing that goes into the product occurs in the U.S. and all or virtually all ingredients or components of the product are made and sourced in the U.S. The rule applies only to labeling claims. The FTC will continue to bring enforcement action against marketers that make deceptive U.S.-origin claims falling outside the rule under Section 5 of the Federal Trade Commission Act. The FTC is authorized to seek penalties for violations of the rule. It does not supersede, alter or affect any other federal statute or regulation relating to country-of-origin labels. The commission vote approving publication of the final Made in USA Labeling Rule in the Federal Register was 3-2. Commissioner Christine Wilson also issued a dissenting statement on the rule, and another dissenting statement regarding the overall meeting agenda. Source: FTC
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www.bodyshopsecrets.com For more information, contact the authors at firstname.lastname@example.org 50 SEPTEMBER 2021 AUTOBODY NEWS / autobodynews.com
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*Kia Genuine replacement parts sold but not installed by an Authorized Kia Dealer are covered for 12 months from purchase date, regardless of mileage, for the part only, and any labor charge is the consumer’s responsibility. autobodynews.com / SEPTEMBER 2021 AUTOBODY NEWS 51
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