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Industry-Leading Collision Engineering Program Expands to Texas School Enterprise Holdings, through the Enterprise Holdings Foundation, on July 21 announced a new partnership with Collin College Technical Campus in Allen, TX, to support the growth and expansion of its industry-leading Collision Engineering Program. Now active in five schools across the U.S., the program is designed in collaboration with the automotive industry and encourages schools and industry to work together to facilitate lifelong learning for the future leaders of the collision industry.
Through a defined two-year apprenticeship model, students receive real-world experience by working
alongside industry experts while also earning their associate degree. This unique model provides students See Industry-Leading, Page 18
Company Says it Has Recent Auto Body Shop Estimate Data for Sale by John Yoswick
The ongoing discussion about auto body shop data privacy at the quarterly Collision Industry Conference (CIC) meetings took a new turn this summer when an association leader described what a data aggregator company had recently offered to sell to his organization. Aaron Schulenburg, executive director of the Society of Collision Repair Specialists (SCRS), said the company contacted him, after speaking with one of SCRS’s state affiliate groups, to see if SCRS might be
interested in acquiring data it has on recently-written collision repair quotes. The company, which Schulenburg did not identify by name, told him the information could be used by SCRS member shops to contact consumers who received a recent estimate to say, “Hey, I know you’ve gotten a recent quote, and our business could do the work for you.” Schulenburg asked what type of information was available. The company told him, “through our data aggregation partners and proSee Data for Sale, Page 22
Vol. 40 / Issue 9 / September 2022
Tucson, AZ, Auto Body Shop Accused of Taking Customer’s Money, Not Completing Repair by Chorus Nylander, KVOA News
A Tucson, AZ, man told the News 4 Tucson Investigators he brought his truck to Action Paint and Body on Stone near Ft. Lowell for repairs, but said no work was done but the business cashed the check he gave them. Brandon Beard said he crashed his truck in December 2021 and received an unendorsed $5,752 check from his insurance company. He said Action Paint and Body’s owner, Larry Hardman, offered him a good deal and told him he’s a veteran and works on Tucson police ve-
hicles. Impressed, he thought Hardman seemed like the right choice. “I thought it was going to be a good, honest, trustworthy man to do business with,” Beard said. News 4 Tucson Investigators checked with the City of Tucson and were told no city vehicles have been sent to Action Paint and Body. Beard said Hardman told him to leave the check to hold his place in line for repairs, so he did. He said he didn’t hear from Hardman again for two months. “It was about two months latSee Taking Customer’s Money, Page 20
SEMA Show to Feature Educational Program Focused on Personal and Professional Development Dozens of industry leaders and experts will take the stage at the 2022 SEMA Show Education Program, where attendees will have the opportunity to learn about current and future trends, proven business strategies and new opportunities while at the annual event taking place in November in Las Vegas. Beginning Oct. 31—the day before the official opening of the four-day SEMA Show—the 2022 SEMA Show Education Program will include more than 70 free and premium sessions within 14 tracks. Showgoers may choose individual sessions across different tracks, mixing and matching the offerings to create a personalized agenda that meets one’s individual needs. “The Education Program is one of the SEMA Show’s key pillars, and it’s always been highly rated by participants,” said Pamela Brown-Matthis, SEMA director of education. “We challenged ourselves and pushed to make the program better than ever. We focused heavily on bringing in elite subject matter
experts and high-profile industry leaders. SEMA Show attendees are encouraged to take advantage of the opportunity to hear from industry experts while at the show.”
SEMA Show attendees can learn about current and future trends, proven business strategies and new opportunities from industry leaders and experts as part of the 2022 SEMA Show Education Program.
New this year are four sessions focused on challenges and opportunities associated with Diversity, Equity, and Inclusion (DEI) in the workplace. The first DEI session, “Diversity and Inclusion: How You Can Advance Equal Opportunity in Your Workplace,” See SEMA Show, Page 24
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CONTENTS REGIONAL Auto Dealer Shot Dead While Repossessing
Advertise in our Classified Section for $50 per column inch! Yoswick - Gerber Collision CEO Talks Parts,
Personnel Challenges ���������������������������������� 32
Loaner Jeep �������������������������������������������������� 6
Program Expands to Texas School ���������������� 1 It’s All in the Family for the Royers at CARSTAR Little Elm in Texas ����������������������� 10 SEMA Praises Latest Restoration Efforts at Bonneville Salt Flats ������������������������������������ 16 Tesla Plans to Expand Gigafactory Texas, Filings Show ����������������������������������������������� 10 Texas Collision Repair Student Has a Passion for Automotive Refinishing �������������������������� 14 TSTC Auto Collision Students Look Forward to the Future ������������������������������������������������� 6 Tucson, AZ, Auto Body Shop Accused of Taking Customer’s Money, Not Completing Repair ������������������������������������������������������������ 1
3M, CREF Donate Products to 300 Schools ���� 54 AirPro Diagnostics, CCC Partner ���������������������� 48 Appeals Court Rejects GM’s Attempt to Overturn FCA Racketeering Lawsuit Ruling ��������������� 35 Audi, VW Vehicles Recalled Airbags ��������������� 18 CIECA Forms AI Committee ���������������������������� 24 Collision Repair Association Conducting Study of Blend Time Formula ���������������������� 48 Company Says it Has Recent Auto Body Shop Estimate Data for Sale ����������������������������������� 1 CREF Invites Collision Industry to Fall 2022 High School & College Transportation Student Career Fairs ������������������������������������ 54 CREF Raises $100,000 at Golf Fundraiser ������� 20 Ford Recalls Maverick Trucks Over Side
COLUMNISTS Anderson - Don’t Let Higher Sales Take Your Eye Off the Ball ������������������������������������������� 25 Attanasio - Forward-Thinking Program Creating Great Auto Body Techs of the Future ���������� 42 Attanasio - How is Your Auto Body Shop Dealing with the Great Resignation? ����������� 34 Attanasio - Mike’s Auto Body Gave Away 100 Cars in 21 Years, Changing Countless Lives �� 45 Phillips - How to Profit from ADAS Services and Calibration—It’s Not Just About the Targets �������������������������������������������������������� 26 Phillips - Lemonade to Use Mitchell’s Claim Solutions for Newest Product ��������������������� 50 Phillips - OEM Roundtable Working to Improve Quality of Collision Repair ��������������������������� 38 Phillips - Repairify’s New Partnership with ATG Will Provide Industry with Advanced Diagnostic Training �������������������������������������� 44 Phillips - Technician/Painter Recovering from
Curtain Airbags ������������������������������������������� 15 Hyundai Gets $19.2 Million Penalty for
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. ©2022 Adamantine Media LLC.
American Icon Automotive Finishes ��������������� 22
Larry H. Miller Ford Mesa ������������������������������ 36
Audi Wholesale Parts Dealers ������������������������ 55
Launch Tech USA ������������������������������������������� 37
Autobody News P.O. Box 1516 Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com firstname.lastname@example.org
Auto Data Labels �������������������������������������������� 56
LKQ Corporation ��������������������������������������������� 39
Axalta Coating Systems ����������������������������������� 5
Mac Haik Ford-Lincoln ����������������������������������� 47
BendPak ��������������������������������������������������������� 19
Mazda Wholesale Parts Dealers ��������������������� 50
BMW Wholesale Parts Dealers ���������������������� 48
Mitsubishi Wholesale Parts ��������������������������� 46
Bob Utter Kia �������������������������������������������������� 34
MOPAR Wholesale Parts Dealers ������������������� 33
Car-O-Liner ����������������������������������������������������� 21
NOROO Paint & Coatings �������������������������������� 11
Car-Part.com �������������������������������������������������� 24
North Freeway Hyundai ��������������������������������� 30
Reports ������������������������������������������������������� 52
Carworx Distribution, Inc ������������������������������� 27
Northside Chevrolet ��������������������������������������� 35
Certified Automotive Parts Association ���������� 20
Part of the Club ���������������������������������������������� 41
Chevyland ������������������������������������������������������ 40
Peak Kia ��������������������������������������������������������� 41
Lightning Strikes Across America: Customer
Christopher’s Dodge-Ram ������������������������������ 41
Platinum Auto Trends ��������������������������������������� 6
Deliveries Now Stretch Across All 50 U.S.
Classifieds ������������������������������������������������������ 54
PPG ���������������������������������������������������������������� 17
States ����������������������������������������������������������� 4
Dominion Sure Seal, Ltd ��������������������������������� 14
Santa Fe Kia ��������������������������������������������������� 42
Eagle Abrasives ��������������������������������������������� 23
SATA Dan-Am Company ���������������������������������� 7
Emich Chevrolet ��������������������������������������� 25, 41
Schmelz Countryside �������������������������������������� 41
Equalizer Auto Glass Tools ����������������������������� 10
Schomp Mazda ���������������������������������������������� 34
Fisher Acura ��������������������������������������������������� 41
Scoggin-Dickey Parts Center ������������������������� 8-9
Fisher Honda �������������������������������������������������� 41
SEMA Trade Show ����������������������������������������� 31
Flatirons Subaru ��������������������������������������������� 41
Shoot Suit ������������������������������������������������������ 15
Ford Wholesale Parts Dealers ������������������������ 51
Spanesi Americas �������������������������������������������� 2
Fowler Honda ������������������������������������������������� 42
Steck Manufacturing Company ���������������������� 32
Freeman Mazda ��������������������������������������������� 38
Stevinson Toyota West ���������������������������������� 41
Gebhardt BMW ���������������������������������������������� 41
Subaru Wholesale Parts Dealers �������������������� 44
GM Wholesale Parts Dealers ������������������������� 49
Sunmight USA ������������������������������������������ 12-13
Honda-Acura Wholesale Parts Dealers ������28-29
Symach ���������������������������������������������������������� 16
Horne Kia ������������������������������������������������������� 26
Toyota of Laredo �������������������������������������������� 18
Hyundai Wholesale Parts Dealers ������������������ 52
Toyota Wholesale Parts Dealers ��������������������� 45
Industrial Finishes and Systems ��������������������� 43
Volkswagen Wholesale Parts Dealers ������������ 48
Kia Recalls 258,000 Optimas Following Injury Lawsuit ��������������������������������������������� 20
Lordstown Reaffirms Endurance Pickup Production for Q3 ������������������������������������������ 4 Lucid Cuts Production Goals by 50% Once Again ���������������������������������������������������������� 40 Rivian Amazon Vans Delivered 430K-Plus Packages During Pilot Program ������������������� 52 SEMA Show to Feature Educational Program Focused on Personal and Professional Development ������������������������������������������������� 1 Tesla Cybertruck Prices, Specs to Change, Probably Be Worth It ����������������������������������� 16 The Gas Price Limbo: How Low Will It Go? ����� 15
Annual CIF Gala ������������������������������������������� 46
TikTok’s Latest ‘Kia Challenge’ Encourages
Business with a Buyer in Mind ������������������� 36
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Stacey Phillips Advertising Sales: Joe Momber, Norman Morano, (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bryan Malinski Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Senior Editor: Abby Andrews Accounting & HR Manager: Heather Priddy Permissions Editor: Randi Scholtes Office Assistant: Dianne Pray
Tarnishing Millions of Customer Credit
Severe Burns Recognized During 11th
Strandberg - Build Your Collision Repair
INDEX OF ADVERTISERS
Industry-Leading Collision Engineering
Users to Steal Cars ������������������������������������� 40 YANG Announces TopGolf Fundraiser ���������������� 4
Kia Motors Wholesale Parts Dealers �������������� 53
autobodynews.com / SEPTEMBER 2022 AUTOBODY NEWS 3
Lightning Strikes Across America: Customer Deliveries Now Stretch Across All 50 U.S. States That was quick—lightning quick. In just two months, Ford has delivered electric F-150 Lightning trucks to customers in all 50 U.S. states, from the shores of the Kenai River in Alaska to Houston and even Hawaii.
Texas—the truck capital of America—and California—the EV capital of America—lead the way with the highest number of F-150 Lightning deliveries through late July. Early customers have discovered F-150 Lightning can handle a variety of needs, regardless of where they are located. Take for
instance Jeff and Tammy Head, owners of both an F-150 and now an F-150 Lightning, who have primarily used their new electric truck to tow a boat from Anchorage to Kenai River, about a three-hour drive, for salmon fishing. “From the time we watched it at the reveal, we knew that we wanted it,” Tammy Head said. “We had no doubt that this truck will have trademark Ford quality which gave us the confidence to transition to an electric vehicle.” “And the guy in me likes having the baddest truck on the planet,” Jeff Head added. Among the most popular and most-photographed features of the F-150 Lightning so far is the Mega Power Frunk. Owners are using the 400 liters of space1 to store gear and are taking advantage of the 2.4 kW of Pro Power Onboard in the frunk to help power their campsite
or charge their power tools while driving. “This truck is a workhorse. We have driven more than 3,000 miles already and towed and carried hundreds of pounds of concrete in the frunk,” said Emre Gol of Texas, who uses his F-150 Lightning Lariat pickup for work at his kitchen and bathroom remodeling business.
“This truck is a workhorse. We have driven more than 3,000 miles already and towed and carried hundreds of pounds of concrete in the frunk,” — Emre Gol Recently, he helped his neighbor’s wife, who was away from home with only six miles of charge left on her electric sedan’s battery. Gol connected his F-150 Lightning with the sedan’s charging adapter and provided enough energy to safely get her back home. Ford’s newest truck is winning EV fans. Nearly 80% of early reservation holders said in a survey that
Lordstown Reaffirms Endurance Pickup Production for Q3 by Joey Klender, Teslarati
Lordstown Motors reaffirmed its plans to start production of the Endurance all-electric pickup during the third quarter of 2022, while reporting its earnings for Q2 in early August.
In the company’s Q2 Shareholder Deck, it listed several outlooks for the future, as Lordstown has struggled to begin production of the pickup. Struggling with cash flow and having trouble keeping its doors open, Lordstown formed a joint venture with Foxconn, with the automaker becoming the company’s primary development partner for EV
development in North America. Lordstown expects Q3 to see the start of commercial production, while deliveries should begin in Q4, it said. However, the company only expects to produce around 500 units through early 2023. “In Q2, we made significant progress towards our plan to launch the Endurance in Q3 of 2022 and begin sales in Q4. We look forward to getting the Endurance into customers’ hands, as we think they are going to love it,” said Edward Hightower, CEO of Lordstown Motors. Hightower also hinted that Lordstown and Foxconn’s first project as a joint venture is currently undergoing “pre-development work.” In terms of financials, Lordstown CFO Adam Kroll noted the automaker will need to raise more money to support the 500-unit production goal. However, Lordstown only requires between $50 million
4 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com
F-150 Lightning will be the first full EV in their household. “The Lightning is the best thing I have ever purchased,” said Chris Ashley, a resident of Maryland and a first-time electric vehicle buyer. “With this truck, I can enhance my love of tailgating while at the same time play a small role in creating a better planet for
and $75 million to accomplish this, a substantial reduction from the $150 million it said it would need earlier this year.
“In Q2, we made significant progress towards our plan to launch the Endurance in Q3 of 2022 and begin sales in Q4. We look forward to getting the Endurance into customers’ hands, as we think they are going to love it,” — Edward Hightower Lordstown reported an operating profit for the first time in its history, but it did not come from the sale of any vehicles, obviously. Instead, Foxconn’s acquisition of the company’s Ohio production facility is where the realized gains came from.
my children.” Ashley has contemplated purchasing an EV for the past couple of years before his wife, Emily, convinced him to buy the F-150 Lightning. Ford has sold more than 4,400 F-150 Lightning electric trucks in the U.S. and Canada (YTD). Source: Ford
YANG Announces TopGolf Fundraiser The Young Auto Care Network Group (YANG), an Auto Care Association community of young industry professionals, is partnering with the Automotive Aftermarket Charitable Foundation (AACF) to raise support for the foundation through a nationwide TopGolf event Sept. 8. In continuing its effort to provide support to members of the auto care industry, YANG is proud to once again partner with AACF to bring the auto care community together while raising funds that will provide resources, guidance, financial support and more to those in need. Six major TopGolf locations across the country will host events for the fundraiser, with the support of industry sponsors: Atlanta, GA, Midtown location; Denver, CO, Thornton location; Detroit, MI, Auburn Hills location; Houston, TX, Katy location; Omaha, NE; and San Antonio, TX Contact Danielle King at email@example.com for more information. Source: Auto Care Association
autobodynews.com / SEPTEMBER 2022 AUTOBODY NEWS 5
TSTC Auto Collision Students Look Forward to the Future Jacob Pevia hears about it when he visits auto collision and repair shops of all sizes in Texas: more workers are needed. Pevia, an instructor in Texas State Technical College’s auto collision and management technology program in Waco, TX, is also a parttime instructor for I-CAR. Part of that role involves leading hands-on events for auto collision and repair workers. “With every one of them, they find out I work at TSTC and they ask if we have students from their area,” he said. Pevia said there is a need for workers particularly on the collision side of auto repair. “There needs to be more exposure about the technology,” he said. “A lot of kids don’t think about it.” Texas had about 11,400 automotive body and related repairers making an annual mean wage of $50,940 as of May 2021, according to the U.S. Bureau of Labor Statistics. The Dallas-Fort Worth and Houston metropolitan areas have the largest concentration of workers in the state, according to the agency.
The projected employment nationwide of automotive body and related repairers by 2030 is more than 161,000, according to the labor statistics bureau.
make a quarter panel out of a flat piece of metal. “It helps with the industry,” he said. “They need more technicians in collision and refinishing. We need more people to fix them (vehicles).” Noon has been around cars, primarily hot rods, since he was 14. After graduation, he wants to work in a restoration shop focusing on hot rods. Hayden Lipscomb, of Lockhart, TX, is pursuing a certificate of completion in auto collision repair and is scheduled to graduate next spring. “I love it,” Lipscomb One of the skills Texas State Technical College’s auto said. “It’s probably the best collision and management technology students learn in thing I’m good at.” classes is welding. Credit: Courtesy of TSTC Lipscomb said he enjoys Dylan Noon, of Burleson, TX, the real-world applications of his is working on two associate’s de- training at TSTC. “It’s a lot of fun,” he said. “Evgrees in auto collision and management technology, one each specializ- ery day I come to class and learn something new.” ing in refinishing and repair. He said a can-do attitude goes One of his favorite lessons involved sheet metal fabrication, a long way in the program. He addduring which he learned how to ed that doing homework and asking
questions can help students succeed in the program. After graduation, he wants to work at Tesla. “I won’t have trouble finding a job because I came to TSTC,” Lipscomb said. TSTC offers an associate’s degree in auto collision and management technology-repair specialization co-op, auto collision and management technology-repair specialization and Auto collision and management technology-refinishing specialization, along with certificates of completion auto collision refinishing and auto collision repair and an occupational skills achievement award in basic auto collision. Registration for the fall semester is underway. For more information, go to tstc.edu. Source: TSTC
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Auto Dealer Shot Dead While Repossessing Loaner Jeep by Steven Symes, Motorious
A car theft led to the death of a car dealership owner in Arlington, TX, after he tried to repossess a loaner Jeep Grand Cherokee from a customer. According to a local news report, 31-year-old Brian Espy bought a BMW sedan in April from Salem Autos in Arlington. He took it back to the dealership for service and was given a Jeep Grand Cherokee as loaner so he could get around. When the BMW was fixed, Espy’s mother picked it up, but Espy didn’t return the loaner. On May 16, Salem Autos owner Adel Salem Elhindawi and one of his employees were able to track the missing Jeep to some apartments in Arlington. They drove Elhindawi’s Dodge Charger and took an extra key to go get what was lawfully the company’s property. The unnamed employee used the extra key to get into the Grand Cherokee and drove the SUV toward the apartment parking lot exit.
Espy allegedly walked up to Elhindawi’s Dodge and shot through the driver’s window several times. Then he jumped into a Volkswagen a woman was driving and they drove out of the parking lot. After that, the dealership employee stopped in the street to call Elhindawi and see if he was OK. Then the VW pulled up, Espy allegedly got out, pointing a gun at the employee and saying he knew the employee worked for Salem Auto. The employee said Espy demanded the keys, so he complied, begged to not be shot and got out of the Jeep. Using some quick thinking, that employee snapped some photos of the man and woman, which helped police track down Espy as well as 24-year-old Quyanna Massie. Elhindawi was taken to the hospital but later died. Espy was initially charged with aggravated assault with a deadly weapon and aggravated robbery, but Elhindawi’s death means he probably will be facing a murder charge. Massie is facing a count of aggravated robbery.
6 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com
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It’s All in the Family for the Royers at CARSTAR Little Elm in Texas When you own a family business and the entire family works there, every day can feel like the set of “All in the Family.” For the Royer family, owners of CARSTAR Little Elm in Little Elm, TX, working together is a celebration of their passion for performance and commitment to their customers. Karla Royer, co-owner of CARSTAR Little Elm, offered her thoughts on her family’s approach to celebrating their family every day. “One of the biggest benefits of working in a family business is the sense of accomplishing something together,” said Royer. “Building a family business is working together on a plan for the future. We trust our managers and employees, but there is something special about working with family members that you trust and respect.” Royer grew up in an oil and gas service business owned by her parents, and has always enjoyed being in a family business. She and her husband John started in the collision repair industry in 2013, when a business associate of John and a family friend called him to ask for help
turning around a collision facility in which he had invested. “One of the first steps they took was joining CARSTAR,” said Royer. “CARSTAR provided the blueprint on how to operate a shop even though John had no previous experience in the industry. The shop grew over the years, and after my kids had graduated from college, I started working at the shop in production and front-end support. John had oversight of the business and we worked together. “A decision was made by ownership to sell the business and John and I decided to open up our own CARSTAR in Little Elm, TX. We purchased an independent collision repair shop in Little Elm that had been there for 20 years. Our son had expressed interest in starting a business and this is one that we had experience with.” Royer said CARSTAR has been a great resource and partner along the way. “We set goals and started building our business,” she said. “We worked closely with the CARSTAR team along the way. It has been quite a journey with the timing of when we
Tesla Plans to Expand Gigafactory Texas, Filings Show by Joey Klender, Teslarati
Tesla is planning to expand Gigafactory Texas, its newest electric vehicle production plant located just outside Austin city Limits, filings show. Tesla is planning to build on a 68.11-acre plot of land located adjacent to the factory’s main property, with plans for “industrial use facilities with associated improvements,” the filings said. First reported by the Austin Business Journal, the project is listed as a “production support area.” Not many other details are known currently, as the filings show Tesla is still working through the approval process. Tesla has been purchasing additional land, submitting plans for expansion and working to broaden Gigafactory Texas and its entire footprint. In late June, Tesla filed to expand Gigafactory Texas by 500,000 square feet, working on expanding General Assembly 2 and 3. This followed February filings that showed a 220,000-square
foot warehouse was planned on site, with construction beginning in June, with a BESS system to support energy generation and storage. Gigafactory Texas is set to be Tesla’s most complete manufacturing facility. Not only will it build Tesla’s most recent and advanced vehicles, but it will also produce the cells that make them the most advanced vehicles, the 4680 cell. It’s a massive facility, three times the size of the Pentagon. It is also the second-largest building in the world by volume. Tesla has been delivering Model Ys from Gigafactory Texas since the company’s Cyber Rodeo event in early April.
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10 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com
joined, but we were still able to hit our three-year goals. We didn’t exactly plan the way it would happen, but we are excited to have our own successful small business.” Establishing clear roles and responsibilities is essential for a working family business, said Royer. “I’m the bookkeeper and help in all areas as needed on a daily basis,” said Royer. “John acts as the general manager and oversees the production process, KPIs, works with CARSTAR on a variety of franchise issues and does the hiring. After working at Enterprise out of college, our son Seth has become a service writer and plays an important role in helping to manage our business. “There have been surprisingly few issues from a family standpoint,” she said. “We respect each other’s roles that are well defined and trust that each of us is doing our work. It has been rewarding, as we enjoy helping people get their vehicles repaired. Based on Google Business Reviews, we pride ourselves on being the highest rated shop in North Texas with a 4.9 (out of five) star rat-
“On top of that, our son just got married this past weekend and has lived with us since the pandemic began. Even though we all live together and work together it has been as good as we had hoped.” Royer offered some advice for families who want to start a business together. “We have found success by not getting in each other’s way,” she noted. “We get together frequently to discuss challenging issues but have to remind ourselves that iron sharpens iron. We respect the differences in ourselves and our roles and do our best to come up with solutions that can satisfy all of us. Defined roles are important, but also don’t bring work home with you. That doesn’t mean you can’t work at home as we frequently do, but it means the roles we play at the shop are left there at the end of the day and we are family at home again.” Visit CARSTAR.com for more information. Source: CARSTAR
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Texas Collision Repair Student Has a Passion for Automotive Refinishing Artistry. A passion for perfection. The ability to restore a damaged vehicle to showroom condition. All are sought-after attributes found in the best automotive refinishers. And Texas State Technical College student Edrick Cuevas wants to be one of the best. The Port Isabel, TX, resident possesses an impressive talent for automotive refinishing that he developed at a young age. He is building on that skill in the auto collision and management technology—refinishing specialization program at TSTC. “I used to perform small painting work on my grandfather’s vehicle when I was younger,” Cuevas said. “Then I grew a fascination for classic vehicles, and I hoped to continue that.” Cuevas is pursuing an associate of applied science degree at TSTC’s Harlingen campus. Now in his third semester, Cuevas relies on his ingenuity to accomplish demanding class projects. “My instructor (Jose Vasquez) challenges me,” he said. “During a class assignment, I volunteered to
paint the roof on a vehicle in the automotive shop. Then I had to think of various ways to complete the task while being safe. I had to use a stepladder to keep my balance.”
Vasquez said Cuevas is a motivated student who quickly adapts to learning new skills. “(He) is willing to try different techniques,” Vasquez added. “We work with different types of live projects and training props. That will allow Cuevas to excel in the industry.”
14 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com
The program’s courses are giving Cuevas a well-rounded education. “The final outcome of my painting gives me great satisfaction,” he said. “My program experience has been incredible. For example, the course collision repair estimating is stimulating because I learn more about the business side.” Prior to enrolling at TSTC, Cuevas earned a certificate of completion in auto body repair from another educational institution. “I accepted an auto body job, but then I struggled,” he said. “I did not have sufficient knowledge, and I left the industry.” Cuevas decided to work full time for his brother’s shrimping business in their hometown. “I worked with my brother for two years, but I realized it was not for me,” he said. “I performed online research and made the decision to return to college. I noticed that TSTC in Harlingen offered an associate of applied ccience degree in their auto collision and management technology, so I applied.” Cuevas plans to complete the
program in December and would like to return to TSTC someday, but not as a student. “I would like to return to TSTC as an auto collision instructor,” he said. “I want to share my passion for the industry.” Automotive body and related repairers can make a yearly median salary of $46,390 in Texas, according to onetonline.org. The number of these jobs in the state is expected to increase 11% by 2028. TSTC offers an associate of applied science degree in auto collision and management technology, with specializations in repair and refinishing; certificates of completion in auto collision refinishing, auto collision repair and auto collision and management technology—refinishing specialization; and an occupational skills achievement award in basic auto collision. Registration for the fall semester is underway. For more information, visit tstc.edu.
The Gas Price Limbo: How Low Will It Go? by Andrew Gross, AAA
The national average for a gallon of regular gas fell 10 cents in the previous week to $3.95 as of Aug. 15, due primarily to stable oil prices and fewer drivers than usual fueling up. “Falling pump prices may eventually lead to more drivers hitting the road again,” said Andrew Gross, AAA spokesperson. “But that hasn’t happened yet. Instead, many drivers are waiting for prices to fall further before reverting to their typical driving habits.” AAA found drivers are making significant changes to cope with high pump prices. In a recent survey, almost two-thirds of U.S. adults have changed their driving habits or lifestyle since March. Drivers’ top two changes to offset high gas prices are driving less and combining errands. According to data from the Energy Information Administration (EIA), gas demand rose from 8.54 million b/d to 9.12 million b/d. However, the rate is 307,000
b/d lower than last year. Also, total domestic gasoline stocks decreased by 5 million bbl to 220.3 million bbl. Although gasoline demand has risen and supplies have tightened, easing oil prices have helped lower pump prices. If oil prices edge lower, drivers will likely see falling pump prices. The Aug. 15 national average of $3.95 is 62 cents less than a month ago, but 77 cents more than a year ago. The nation’s top 10 largest weekly decreases: Maine (-19 cents), Colorado (-18 cents), West Virginia (-16 cents), Arizona (-15 cents), Illinois (-15 cents), New Mexico (-14 cents), Florida (-13 cents), Nebraska (-13 cents), Arkansas (-13 cents) and Kansas (-13 cents). The nation’s top 10 least expensive markets: Texas ($3.45), Arkansas ($3.47), Tennessee ($3.50), Oklahoma ($3.50), South Carolina ($3.50), Georgia ($3.51), Mississippi ($3.52), Kansas ($3.53), Missouri ($3.53) and Alabama ($3.54). Source: AAA
Ford Recalls Maverick Trucks Over Side Curtain Airbags by David A. Wood, CarComplaints.com
A Ford Maverick recall involves about 65,000 trucks with side curtain airbags that may fail.
Although Ford is still investigating the root cause of the problem, the automaker does know the trucks are in violation of federal safety standards. The National Highway Traffic Safety Administration contacted Ford in June following a compliance audit on a 2022 Ford
Maverick. “The displacement results for the front lower primary target was 111.9 mm which exceeds the federal regulation of 100 mm,” the NHTSA said. “Ford’s certification test from December 2020 indicates a displacement of 82.5–88.4 mm which meets the regulation of 100 mm and the Ford Acceptance Criteria (FAC) of 93.1 m.” Additional tests conducted by Ford on 2022 Maverick trucks didn’t help engineers determine the root cause of the airbag problems. According to Ford, there are no crash or injury reports relating to the airbags. Ford Maverick recall letters will be mailed Sept. 22, and dealerships will replace both front side curtain airbag modules. Ford Maverick owners may contact Ford at 866-436-7332 and ask about recall number 22C20.
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SEMA Praises Latest Restoration Efforts at Bonneville Salt Flats The Specialty Equipment Market Association (SEMA) applauded the racing community’s repairs to the Salduro Loop dike as part of joint efforts to restore the Bonneville Salt Flats. Two large breaches to the dike were repaired so that no salt brine pumped onto Bonneville during the winter months will inadvertently flow into the Salduro Loop instead of onto the racing venue. The Salduro Loop dike was created in 1917 to separate a large swath of private land from the federal lands where racing and other recreational activities occur. The private land was available for potash mining until I-80 was constructed in 1972. The two breaches were made at the request of the racing community to allow vehicles to transit the Salduro Loop from the western to the eastern side of Bonneville. The larger Restore Bonneville initiative is a collaboration by SEMA and the Save the Salt Coalition—a collection of companies, organizations, individuals and land speed racing teams—and the U.S. Bureau of Land Management (BLM), Utah
movies and commercials, and also possesses rare physical qualities that make it the perfect venue for land speed racing. Since 1914, hundreds of land speed records have been set and broken in a variety of automotive and motorcycle classes. Speed Week, the marquee event at Bonneville, began in 1949 as scores of racers and thousands of spectators descend on Bonneville in the quest for records. Bonneville is also a crucial natural resource for potash used primarily in fertilizers. To obtain potash, salt brine is collected in large solar evaporation ponds The Salduro Loop dike at the Bonneville Salt Flats sepfrom which potash is separates private land from the federal land where racing arated out and processed. and other recreational activities occur. Two breaches in The remaining salt is stored the dike were repaired by the Save the Salt Foundation and may then be pumped on to stop salt brine pumped onto Bonneville during the Bonneville as salt brine. winter months from inadvertently flowing into the Beginning in the 1960s, Salduro Loop the BLM issued leases to The Bonneville Salt Flats in the north of I-80, where motornorthwestern Utah is the densely sports racing and other recreational packed salt remnants of an ancient activities take place, allowing salt lakebed formed over thousands of brine to be collected in open ditches years. It is a unique stage set for for commercial potash processing. Department of Natural Resources (DNR) and its Utah Geological Survey (UGS) division, and Intrepid Potash, Inc. The goal is to increase the amount of salt deposited onto Bonneville during the winter pumping season.
The mine operator began pumping the processed salt back onto Bonneville in 1997, but the Restore Bonneville program will help address salt losses that occurred before 1997 when the potash project was operated by previous companies. The racing venue was more than 13 miles in length in the 1960s but is now 8 miles or less. Last year, nearly $1 million in state and federal funds were released to restore the Bonneville Salt Flats, funding the installation of scientific equipment to monitor the success of the pumping program and a new well to help prepare the salt brine. SEMA and Save the Salt are pursuing additional government funding in 2022 and 2023 to save Bonneville. While the bulk of the restoration funding will come from federal and state appropriations, the repairs to the Salduro Loop dike were paid for by the Save the Salt Foundation. Financial contributions from the racing community are gratefully accepted at www.savethesalt.org, a nonprofit organization. Source: SEMA
Tesla Cybertruck Prices, Specs to Change, Probably Be Worth It by Maria Merano, Teslarati
Tesla CEO Elon Musk admitted at the 2022 Annual Meeting of Stockholders that Cybertruck prices will change. However, a lot has changed since the cyberpunk truck’s unveiling. Tesla might make the price change worth it. The all-electric pickup truck was unveiled in 2019, before the pandemic. Prices have gone up across the board, so it wouldn’t be surprising if the price of the Cybertruck went up as well. Tesla has increased the price of its other vehicles as well. “Cybertruck pricing, it was unveiled in 2019, and the reservation was $99,” Musk reminded everyone at the meeting. “A lot has changed since then, so the specs and the pricing will be different. I hate to give sort of a little bit of bad news. But I think there’s no way to sort of anticipate the inflation that we’ve seen and the various issues.” Initially, the Cybertruck was available in three trims with starting prices ranging from $39,900 for
the single-motor RWD version to $69,900 for the tri-motor AWD. Even though Tesla has had a lot on its plate with the pandemic, supply chain issues and inflation, it has continued to refine the Cybertruck’s design since 2019. In June, Musk confirmed Tesla had finalized the design. At the Q4 2021 earnings call, he said Tesla added a lot of new technology to the Cybertruck. Musk hinted that striking a balance between the Cybertruck’s new technology and affordability would decide its final updated price. “I worry more about like how do we the Cybertruck affordable despite having awesome technology. That’s the thing that will really set the rate,” he said in Q4 2021. In June, at the Shareholders Meeting, Musk said Cybertruck production is on track for mid-2023. Musk assured everyone the Cybertruck is still a mind-blowing EV pickup truck. “But what I can say is that the Cybertruck will be one hell of a product. It’s gonna be like a damn fine machine,” he said.
16 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com
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How Waterborne Technology Can Improve Cycle Time Performance The number of color coats required to make a refinish repair is one
waterborne paint. “The color deck is ‘dead-on’,” says Jeff Smith of
primary consideration for evaluating the throughput performance
Pro Collision, Grand Rapids, Michigan. “If the color is in the deck,
of a refinish paint system. Yet, as most know, the most accurate
there’s no need to do a sprayout, like we always had to perform with
way to vet a system’s productivity is to evaluate the entire refinish
our previous system.”
process – from color identification, right on through to the final clearcoat. As example, PPG’s waterborne refinish system incorpo-
rates a host of features designed to speed cycle time performance.
Given that refinishing most often calls for blending, how efficient a system can perform an accurate repair and eliminate chances for redos is especially critical to achieving maximum cycle time performance. PPG’s waterborne system employs an easy, one-gun process designed to achieve a fast, tight blend and accurate match the first time out. In fact, in a 2-3 coat application, it’s possible to perform a spot repair in less than an hour. This fast blend process is aided by a very thin film build, enabling the basecoat to dry fast. Only 2-3 minutes flash time is needed between coats and the clearcoat can be applied in 10-15 minutes. The system’s EN-V® Series clearcoat line offers fast bake times as short as 10 minutes. To ensure color accuracy, the basecoat’s latex particles orient
Color ID and Matching Efficiency
metallic flakes smoothly to accurately match the color travel from
The throughput of a refinish system must include its color-matching
face to flop. Painters won’t find any evidence of mottling or halos
ability. Afterall, if the color doesn’t match, how fast the repair was
around the repair, which can appear using conventional basecoats.
achieved won’t matter. In this regard, PPG has heavily invested in
Any dirt or specks can be easily de-nibbed, further facilitating a
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PPG’s color variance team are quickly incorporated into PPG’s
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 it can significantly reduce sprayouts. Comprised of thousands of variant and prime color chips, each chip is sprayed with actual autobodynews.com / SEPTEMBER 2022 AUTOBODY NEWS 17
Audi, VW Vehicles Recalled Airbags by David A. Wood, CarComplaints.com
Exploding Audi and Volkswagen passenger airbags have caused a recall of more than 1,200 of these vehicles. 2016 Audi TT Roadster 2016 Audi TT Coupe 2016 Audi S3 Sedan 2016 Audi R8 Coupe 2016 Audi A3 Sedan 2016 Audi A3 e-tron 2016 Audi A3 Cabriolet 2016 Volkswagen Golf Sportwagen 2016 Volkswagen Golf R 2016 Volkswagen Golf GTI 2016 Volkswagen Golf A7 2016 Volkswagen e-Golf Dealers will replace the passenger airbag modules once owner recall letters are mailed Sept. 23. Owners may contact Volkswagen at 800-893-5298 or Audi customer service at 800253-2834. Volkswagen’s and Audi’s recall numbers are 69DY and 61C1.
Continued from Cover
Industry-Leading the opportunity to earn an income while completing their training. “Collin College’s Collision Technology program is pleased to partner with the Collision Engineering Program to spread the word about the extensive training and internship opportunities available in this growing field,” said Dr. Bill King, Technical Campus provost. “This apprenticeship program will be a vital link for informing students of the exceptional career opportunities available in collision repair and bringing them into a community of craftspeople who make a rewarding living doing what they love.” Since its launch in 2020, the program has successfully completed its two-year pilot and is on track to double its footprint from four to eight schools across the country over the next three years. In addition to Collin College, the program is also operating at Ranken Technical College in St. Louis, MO; College of Lake County in Grayslake, IL;
Contra Costa College in San Pablo, CA; and Texas State Technical College in Waco, TX. Collin College Technical Campus offers degrees and certificates in a wide range of disciplines, including automotive, construction, health care, information technology and manufacturing. The college’s Collision Technology program is now accepting students at the campus for the Fall 2022 semester. Addressing Critical Industry Needs With more than 70,000 new collision technicians needed between 2022 and 2025, and nearly 65,000 of those coming from labor force exits and transfers according to the TechForce Foundation, demand is significantly outpacing a steadily declining supply of postsecondary collision technician entrants. To help close the gap, the Collision Engineering Program is working to attract and develop entry-level talent to fill essential roles within the collision repair industry and enhance retention and advancement among collision repair technicians. The Collision Engineering Pro-
gram replicates Ranken Technical College’s unique two-year apprenticeship model that not only increases the number of qualified technicians to address the ongoing industry technician shortage and skills gap, but also offers advanced education and ever-expanding career opportunities for participating students. “The rapid pace of vehicle innovation and connectivity is adding demands on technicians to have expertise in technology and engineering, in addition to vehicle repair. As an industry leader, Enterprise is committed to supporting solutions to address the evolving field of collision repair,” said Mary Mahoney, vice president of the replacement and leisure division at Enterprise. “In addition to preparing students for success, the first-of-its-kind Collision Engineering Program also aims to change perception and increase awareness of opportunities in the industry.” For more information about the Collision Engineering Program, visit www.beacollisionengineer.com. Source: Enterprise Holdings
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CREF Raises $100,000 at Golf Fundraiser
Taking Customer’s Money
The Collision Repair Education Foundation’s (CREF) 20th Annual Golf Fundraiser, co-hosted by PPG Automotive Finishes, was a roaring success. Held on July 19 at the Edgewood Country Club in Pittsburgh, PA, the event sold out to capacity with 146 sponsors and industry supports enjoying a day on the green while raising over $100,000 to support collision repair programs, schools and students around the country. The winning team, with a score of just 56, consisted of Rich Finoli, PPG; Steve Morelli, community supporter; Derek Severns, Bowser Automotive; and John Parran, PPG. Participants also had the chance to win great prizes by competing in individual hole contests. Helicopter ball drop winners included Linda Mazur, community supporter; Charlie Jordan, Caliber Collision; and Mary Mahoney, Enterprise Holdings. Source: CREF
er, I got a hold of him, he informed me he didn’t have my check, he had spent the money and that he would pay me back when he could.” Beard said that never happened and he was shocked when he saw his signature on the cashed check. He said he never signed it. “Both of the endorsements are in the same sloppy handwriting that is not my signature at all,” Beard said. He showed News 4 Tucson Investigators text messages he said were between him and Hardman, trying to get a response from Hardman. Hardman eventually responded, saying he would have a check for him. Beard said he never received any checks from Hardman. The News 4 Tucson Investigators spent more than a week trying to contact Hardman. They called his shop and spoke to someone multiple times who said Hardman wasn’t there. They sent an email without a response. On July 27, they finally
got a hold of Hardman. He said he didn’t have time for an on-camera interview but admitted he signed Beard’s name on the check. He said Beard told him to do it. Beard said that is not true. Hardman claimed he sent Beard multiple payments totaling $3,000 and said he would be sending more payments, one as soon as July 30. He sent News 4 Tucson Investigators three receipts to prove it, showing a $1,500 payment May 22, a $500 payment May 31 and a $1,000 payment June 5. The receipts offer few details to verify the authenticity; parts are crossed out and different colored ink is used in some areas. Hardman’s name and the business name are not anywhere on any of the receipts. Action Paint and Body has an “F” rating from the Better Business Bureau and six complaints filed within the past year detailing similar experiences. The BBB said it has not received any response from Hardman about the complaints. “We have a threshold and when we see a pattern of complaints is when we start working with oth-
er government agencies to try to get some action. We ask that anybody who has had a similar experience reach out and file a complaint as well,” said Denisse Alvarez, spokesperson for the Better Business Bureau of Southern Arizona. Alvarez said once they receive a total of eight complaints they will pass off the information to the attorney general or Federal Trade Commission for further investigation. Beard said he reported his case to Tucson police but was told it is a civil matter. “Basically my only option is to go after him in civil court. If it sounds too good to be true it probably is. He offered me a really good deal but it ended up costing me more than I bargained for,” Beard said. Hardman told News 4 Tucson Investigators he will be reaching out to the Better Business Bureau about the complaints. He blamed former employees he said he had to fire, and said he has been out of town for the past month. www.autobodynews.com
Kia Recalls 258,000 Optimas Following Injury Lawsuit by David A. Wood, CarComplaints.com
A Kia Optima recall has been announced for 2012-2013 Optimas with right and left headliner plates that may detach when the side curtain airbags deploy. Kia said the fault is found in how the headliner plates are secured in 258,000 cars, placing occupants in danger of being hit by the plates. The Kia Optima headliner plates are used for the energy absorbing structure of the headliner, but a lawsuit let Kia know there may be problems. The legal department learned of a product liability lawsuit alleging a metal bracket injured a driver during the deployment of the side curtain airbag in a 2012 Kia Optima equipped with a panoramic sunroof. Kia engineers inspected the Optima and determined the driver’s side headliner plate may have detached from headliner during deployment of the side curtain airbag. The automaker opened an investigation and learned 2011-2015
Optimas manufactured in Korea have a different supplier and different adhesive application process to the headliner plates compared to Optimas manufactured at a Kia plant in Georgia.
The one known case occurred in the Optima built at Kia Georgia, and Kia is unaware of any other incidents. Kia dealers will add an industrial-grade adhesive tape over the left and right headliner plates to further secure the plates to the headliner. Kia Optima recall letters will be mailed Sept. 26. Owners of 2012-2013 Kia Optimas may call 800-333-4542 and refer to recall number SC245.
20 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com
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Data for Sale cesses, we collect 86% of all quoted collision repairs in North America, whether the quote is taken through a body shop or any insurance carrier.” Even if that quote doesn’t reach an insurer, Schulenburg said he was told, “that data goes into our system within 24 hours.” The 40-plus data fields the company said it has include on a daily basis more than 62,000 VINs and 135,000 quotes---written by shops or insurers. It includes customer name and contact information—address, phone and email—where the
This summer’s Collision Industry Conference (CIC) in Pittsburgh drew hundreds of attendees from around the country
collision occurred and where the repair quote was generated. It includes nearly $72 million of quoted parts per day, and the year, make, model and mileage of vehicles along with body, trim and engine descriptions. The revelation was of interest to a CIC committee that, like SCRS and other organizations, has been looking into how shop estimate information sometimes ends up as entries on vehicle history reports. Schulenburg said the company offering to sell the data was not one he, nor anyone else he has talked to about it, has heard of. “The point here is not that they have this data, but it’s where they are getting it from,” Schulenburg said. The founder of the company, who Schulenburg said he spoke to after the initial call, said a non-disclosure agreement prevented him from revealing the source of the data; he told Schulenburg he couldn’t say more because “if I answer too many questions, you’ll figure it out.” He said it was a company Schulenburg would know because their primary business model “has something to do in collision,” and that licensing the data to be sold is “just a side
stream of revenue.” He confirmed it was not coming from public registries, DMVs or police reports, Schulenburg said. “It is coming from a data aggregator, who is selling it,” Schulenburg said. “There’s a lot of good companies out there that are utilizing data to do the right thing for this industry. And there’s at least one company who is not doing the right thing. There’s at least one company that is turning it into a separate revenue stream to take the information you shared with them for one intended purpose, and selling it to someone else to sell for an entirely different purpose that you didn’t intend.” The leaders of the CIC committee, knowing Schulenburg’s long-standing work on data privacy issues, noted the irony that a data aggregator selling such information would contact him. “It was a complete shock to us that something like that would fall into Aaron’s lap,” said Dan Risley of CCC Intelligent Solutions, cochair of the committee. “I’m glad that it did, though, because I think more discussions will be had.” Risley said it may be a good reminder that vehicle history reporting companies such as CARFAX “shouldn’t be viewed as ‘public enemy No. 1.’” During the committee’s panel discussion following Schulenburg’s presentation, Connecticut attorney Steven Bloch said while issues related to shop estimates resulting in entries on vehicle history reports is troubling, the detailed estimate information being offered for sale poses even greater risks. “What’s of great concern is that a VIN, certainly in combination with personal identifiable information such as Aaron was ticking off—the [customer] name, address, insurance company, plate number—all combines to potentially run afoul of various state and federal [data privacy] legislation, which is only getting stricter, with more scrutiny being paid to everybody in the supply chain,” Bloch said. Panelist Pete Tagliapietra of DataTouch, LLC, agreed. “The information going to the vehicle history companies is the ice above the waterline,” he said. “What’s below the waterline? For you shop owners out there, what’s
22 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com
below the waterline is all of your DRP relationship information: who you have DRP relationships with. What your negotiated labor rate is. Who you buy parts from. What discounts you offer. Anything that can be gleaned off that estimate is being taken, compiled and aggregated, and being used for other purposes.” Though some believe estimate data finds its way to CARFAX or vehicle history reports after the VIN and other information is sent to “live” parts locating services during the estimating process, Tagliapietra blamed thousands of “data pumps” running on shop computer systems, scraping estimate data sometimes without a shop’s knowledge or consent. Virginia shop owner Barry Dorn asked the panel how a shop can know a company that says it is only pulling limited estimate data needed for a specific purpose---like parts locating or customer satisfaction indexing—is actually doing only just that. “You can’t. Not yet. But you will,” said Tagliapietra, whose company is developing a service to root out data pumps on shops’ computers
systems. Panelist Tom Allen of Condition Now said he understands body shops’ frustration with their estimate data resulting in an entry on a given vehicle’s CARFAX or other history report. “The shop becomes the face of this incident,” Allen said. “The officer directing traffic [at the accident scene] may come and go. The insurance company may be just a voice on the other end of the line, or the other side of the app. But the first human we see in this instance is the shop. I believe they get the brunt of things, right or wrong.” Allen said his company for about a decade has offered a way for body shops “to control the negative,” a way to use a vehicle history report to “show the good, not the bad,” by playing up the use of OEM parts in the repair of the vehicle, for example. “Our goal is to actually document that stuff in a way that is helpful to Mrs. Jones, the customer,” Allen said. “To show, not only did we fix your car properly, it was done with OEM certified repair procedures.”
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CIECA Forms AI Committee CIECA has announced the formation of a new Standards Development Committee focused on Artificial Intelligence (AI). All industry stakeholders, including CIECA and non-CIECA members, are invited to join. The new committee will be chaired by Raj Pofale, a founder and CEO at Claim Genius, and Jimmy Spears, head of automotive at Tractable. Both are active CIECA committee members who have presented at the CIECA CONNEX Conference. The committee chairs encourage all interested industry stakeholders to attend the meetings. To RSVP, visit https:// forms.zohopublic.com/cieca1au/ form/AICommittee/formperma/6aIyVdjmpAtfHmP0kiDYCi05Tsp3jJzc3wTMRSDqhCg CIECA has 27 product and project standards development committees that focus on creating standards to address industry needs. For more information about joining a committee, visit https://www.cieca. com/committees or contact Paulette Reed at firstname.lastname@example.org. Source: CIECA
Continued from Cover
SEMA Show takes place Nov. 1, and will be presented by James Pogue, Ph.D., president and CEO of JP Enterprises. Part of the Business Management Track, each DEI session will feature thought leaders, skill-building seminars, networking, inspiring role models and action-oriented content. “Celebrity Insights,” moderated by African American Racers Association co-founder Chris Harris, features automotive celebrities, legends and luminaries with diverse backgrounds and experiences. The one-hour discussion will give attendees a glimpse into the lives of some of their favorite personalities. “Celebrity Insights” takes place Nov. 4, along with five other sessions that comprise the brand-new Enthusiast Track program. Returning by popular demand is the Leadership Essentials Track, presented by Dale Carnegie. Consisting of six courses spread out over three days, the program can be taken as a whole or individually. Each
24 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com
course features acclaimed trainers from Dale Carnegie Training. Known for having a leadership, communications and sales program that improves both individual and business performance, Dale Carnegie Training focuses on core human relations principles and is said to transform lives. Also continuing in 2022 are comprehensive programs from partners, including the Society of Collision Repairers (SCRS), the Inter-Industry Conference on Auto Collision Repair (I-CAR) and the Tire Industry Association (TIA). “The SEMA Show has a lot to offer, from seeing new products and vehicle builds, meeting with manufacturers, learning from experts and developing meaningful relationships that you can only get from an in-person event,” said Tom Gattuso, SEMA vice president of events. “We encourage showgoers to take advantage of all the elements of the SEMA Show, so that they get the greatest ROI.” All sessions are held in meeting rooms at the Las Vegas Convention Center, making it easy and
convenient for attendees to schedule seminars between meetings with exhibitors. Registrants can sign up for the education program while applying for SEMA Show credentials at www.semashow.com/ register. Those who are already approved for credentials can add education sessions by going into their SEMA Show dashboard. Sessions will also be able to be added through the SEMA Show mobile app. This year’s information will be updated in the mobile app in August, but the app can be downloaded now from the app store. The SEMA Show is the world premier automotive trade show, featuring new products and trends in vehicle customization. Complete details about the Nov. 1-4 SEMA Show taking place in Las Vegas, NV, are available at www.semashow. com. Source: SEMA www.autobodynews.com
From the Desk of Mike Anderson with Mike Anderson
Mike Anderson is the president and owner of Collision Advice, a consulting company for the auto body/collision repair industry. For nearly 25 years, he was the owner of Wagonwork Collision Center, an OEM-certified, full-service auto body repair facility in Alexandria, VA.
Don’t Let Higher Sales Take Your Eye Off the Ball There’s an expression I’ve been thinking about in relation to the collision repair industry: “Pigs get fat and hogs get slaughtered.” As it applies to business, I think it means if you end up being greedy or taking the good times for granted, it’s going to catch up with you. It reminds me of another expression I use a lot: “Lots of sales cover lots of sins.” You can substitute “mistakes” for the word “sins.” I hear from a lot of body shops about how much their sales are up, sometimes to record levels, and I’m concerned a false sense of security can settle in. It can be easy to take your eye off the ball when work is plentiful. Let’s start with the higher sales number. At least some portion of that is likely attributable to more parts per repair order. CCC Intelligent Solutions reported there were
almost 12 parts per claim on average last year, a number that has been climbing since 2011, and especially in more recent years. I’ve seen some other statistics that suggest there’s anywhere between seven and nine more parts per repair now. Add to that the increased price of those parts. Again, CCC data shows parts prices increased 5% in the first quarter of this year alone, after a 7.4% overall increase last year. I’ve seen other statistics showing some parts prices have gone up between 18% and 23%, depending on the type of part. So if there are more parts per repair order, and the prices for those parts have gone up, then of course your sales should be up. But remember, as a repair order includes more parts and less labor, your overall gross profit as a percentage starts to decline.
I’m not saying that’s bad or good. All I’m saying is looking at just your increased sales may be giving you that false sense of security. Remember the start of the pandemic, when work temporarily stopped coming to the door? So many shop owners and managers told me during that time they realized they needed to get back to basics, in terms of making sure SOPs were being followed, focusing on selling and capture rate, and offering great customer service. That’s what I’m suggesting to you here, that your increased sales may have led you to stop keeping your eye on the ball. Maybe your estimate quality isn’t as good as it should be, but the higher parts dollars are masking that. Are you continuing to watch your profit margins on labor, parts, materials, sublet, etc.? Is the backlog of work leading
to any customer service “sins”? It can be easy to get complacent when you know if one customer gets mad at you, you have 20 more lined up at the door. But you still need to care about that customer not going somewhere else. Make sure your customer service isn’t slipping. Maybe your outstanding parts credits are stacking up. Maybe your receivables have started to slip. Maybe you’re not closing out ROs in a timely manner. Are you still watching your efficiencies? There are a lot of things to still make sure you’re keeping an eye on. I’m not an economist. I don’t know what the future holds. But in every recession, I’ve seen shops wish they had stuck to the basics. Take some time right now to make sure lots of sales are not masking a lot of sins in your business, and that you’re not going to suffer the fate of the hogs.
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Tips for Busy Body Shops
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 email@example.com.
with Stacey Phillips
How to Profit from ADAS Services and Calibration—It’s Not Just About the Targets Industry statistics show nearly 50% ibrate and validate ADAS systems, of the North American car parc will repairs and calibrations. The compabe Advanced Driver Assistance Sys- ny’s Test Drive CoPilot™ platform with Stacey Phillips tems (ADAS)-equipped by 2025. was chosen as one of 15 semifinalist By 2030, the percentage of ADAS- solutions in the 10th annual Specialequipped vehicles will be more than ty Equipment Market Association (SEMA) Annual Launch Pad Com75%. With the overwhelming growth petition. in this area, Frank Terlep, co-founder of Auto Techcelerators, said col- The Facility lision repair facilities are currently For businesses planning to perform with Victoria Antonelli faced with many challenges conduct- 10 or more calibrations or ADAS ing ADAS services and calibrations. repairs per day, Terlep advised faThe first is location. Based on cilities allocate at least 4,000 square industry data, Terlep said 80% of feet. collision repair facilities do not have “If you are going to do calibrathe required space to perform these tions properly, you can’t do them in services. They also need business a parking lot, under a tree or in space with EdaAttanasio operating system, trained person- where there isn’t enough room for nel and equipment, which includes targets to be the proper distance,” he explained. Terlep recommended setting up three work bays and outfitting the facility to ensure all calibration prowith Gary Ledouxcedures are performed indoors without obstructions or uneven surface shadows. Each calibration bay needs a floor space of at least 33 feet wide by 17 feet in length to perform the Frank Terlep said lighting should be diffused calibrations, and the floor should be with minimal shadows level within four 10ths of an inch with Stacey Phillips targeting systems, diagnostic tools, from one side of the workspace to alignment systems, vehicle lifts and the other. more. “A slight incline along the One of the biggest challenges is floor of the space could result in the identifying a vehicle’s ADAS tech- miscalibration of a camera or radar nologies and required calibrations, sensors, thus skewing the vehicles’ which Terlep noted most shops do reactions,” Terlep explained. with Mike Anderson The floor should be painted in a poorly. He shared a February finding neutral tone, be pristinely clean and from Honda that identified 80% of be able to be written on. appraisals processed through CCC He also stressed the importance Intelligent Solutions that needed of having evenly-diffused lighting a calibration did not include a line with minimal shadows. LED bulbs item related to calibration. should be 300-400 lumens that can During a recent webinar spon- be adjusted based on the seasons, sored by Auto Techcelerators, Terlep weather and time. shared some of what he believes are “These are moving variables the requirements to run a properly depending on the shop’s location outfitted ADAS services and cali- and time of year,” said Terlep. Ideally, the facility’s walls bration business. Established in 2019, Auto Tech- should be a matte color. He reccelerators assists the automotive, ommended a solid color coating in collision, glass, insurance and truck beige, grey, light grey or white with industries to properly estimate, cal- no patterns.
“Targets are patterns and you don’t want to confuse the sensors you are calibrating with patterns behind the targets,” explained Terlep. “Ensure there are no reflections or
OE Shop Certification
Frank Terlep recommends a properly outfitted ADAS services and calibration business facility should ensure all calibration procedures are performed indoors without obstructions or uneven surface shadows. Credit: Courtesy of LaMettrey’s Collision, Glass & More
shadows and there are no reflective surfaces that might interfere with the calibration equipment.”
For owners/operators considering opening a mobile business, Terlep said to consider the skills personnel will offer, the cost of insurance and equipment, space availability, lighting, who will be checking the alignments and how documentation will be collected. Tools One of the essential tools for a calibration center to acquire, according to Terlep, is an OEM and/or aftermarket diagnostic tool and/or software. “You probably need both,” said Terlep. “You need multiple aftermarket tools because they all have limitations.” They also need to be kept up to date. “You aren’t going to do a 2022 calibration with 2021 software,” he See How to Profit from ADAS, Page 30
From the Desk of Mike Anderson
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Continued from Page 26
How to Profit from ADAS noted. One of the costliest pieces of equipment required is the targeting system, which is typically rectangular with black and white patterns. “It’s critical to have the right size targets,” said Terlep. “Be prepared to purchase additional targets when new ADAS systems or components are introduced.” ADAS repairs and calibrations also require additional tools such as reflective metal sheets, metal cones, window calibration tools, floor mat calibration targets, doppler simulators, HUD systems and more. Terlep highly recommended having OEM tools on hand for the vehicles the facility typically repairs or subscribing to a remote diagnostic service. He said there are currently five of these types of businesses available today. Not only do remote diagnostic companies perform pre- and post-scanning, but many also offer remote calibration services. In some cases, Terlep said they provide free targets or a low dollar amount and split the revenue with the facility. He recommended owners/operators compare the remote cost vs. the cost of purchasing OEM software. Another consideration he noted is related to alignments. With 11 auto manufacturers requiring a calibration following a wheel alignment, Terlep said in most cases, a vehicle needs an alignment check before a calibration. “Alignments and calibrations are like peanut butter and jelly sandwiches,” he said. “If the vehicle isn’t aligned correctly, there’s a good chance the ADAS systems aren’t going to work.” As a result, he said facilities must be in the alignment business or have an alignment company nearby. Workflows and Processes Terlep shared what he referred to as the “seven moments of truth” when repairing/calibrating ADASequipped vehicles. They include identifying and locating the technologies and needed calibrations; communicating with the customer;
preparing an accurate repair plan; ordering and scheduling the services; documenting all pre-calibration requirements; documenting calibration actions and results; and performing, managing and documenting the test drive. Organizing Pricing and Getting Paid Although some shops organize pricing by service category, Terlep and his team have found organizing by manufacturer is preferable. He also recommended shops take steps to ensure they have an accurate and detailed billing system. ADAS/Calibration Software For shops planning to enter this side of the business, Terlep said it is critical to have a software platform. However, he believes there isn’t one on the market to meet all of the current needs. “I’ve talked to a lot of businesses and most are using five to seven different systems to manage and operate their companies,” he said. He said the ideal software would help identify and locate ADAS technologies, calibration triggers and required calibrations, educate customers about what needs to be done with their vehicles, and assist shops to create better, faster and more accurate repair plans. The software would also help the business manage all workflows and processes, generate, share and store detailed documentation, and operate an efficient and profitable business. Because most collision repair facilities don’t have the required space to prefer a calibration, Terlep foresees the industry will operate in a “hub and spoke” model in terms of calibrations, where several stores in a certain area will use a central location for these services. As a result, ADAS/calibration software should ideally include this business model. He noted five of the largest organizations in North America currently manage calibrations in this way. Documentation and Liability Terlep recommended facilities document every aspect of the ADAS service/calibration process as if the shop were going to court tomorrow. This includes the vehicle components, calibration triggers and
30 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com
required calibration types, pre- and post-scans, repair order/lines, a health scan and images of a vehicle. It should also include a calibration results report, post-calibration safety system verification test results, a detailed invoice and a workflow report. “How can any organization look at a customer and give them the keys to the vehicle without providing them with validation and documentation that they accurately tested and validated the systems work properly?” said Terlep. He advised shops to remember that ADAS systems directly affect acceleration, braking and steering. “If one is off and doesn’t work, the outcome is not good,” he pointed out. “If an ADAS system fails, who is to blame? The driver, the OEM, the shop or the insurer?” Without documentation, Terlep said, you don’t know. The Investment When determining the investment to begin offering ADAS services/ calibration, Terlep said to consider the cost of the facility, targeting systems, targets, the alignment sys-
tem, diagnostic tools and business software. While he estimates a minimum investment might be around $150,000, it could easily reach $250,000-$300,000. Return on Investment (ROI) To be successful in the ADAS repair and calibration business, Terlep advised facilities to focus on process and volume. “The key to success is to capture three to 10 customers who repair 100 vehicles a month where you can expect to receive 25-40% of those vehicles,” he said. For shops doing 4,800 calibrations annually, he estimated $773,577 annual gross profit. For more information, visit www. autotechcelerators.com. To watch the webinar, visit https:// www.youtube.com/watch?v=dbf5Css50Hk www.autobodynews.com
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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.
Gerber Collision CEO Talks Parts, Personnel Challenges
Tim O’Day, president and CEO of ance partners, and in how it drives Boyd Group Services, parent com- our profitability, to identify and pany of Gerber Collision & Glass, source higher-margin, lower-cost alwith Ed Attanasio referred to his company as “one of ternative parts.” the better users of alternative parts” O’Day said the company is in a presentation this spring at the working toward centralized parts orAutomotive Body Parts Association dering for its more than 800 shops in annual convention. North America. “When we leave the buying de“But right now, we’re more reliant on OEM parts than we’ve ever cision at a local level, there’s somewith Ed Attanasio been, which is unfortunate,” O’Day times influences that aren’t consistold the non-OEM parts manufactur- tent with what our objectives are,” ers and distributors at the event. “It O’Day said. “It could be something negatively impacts our profitability, as simple in the old days as ‘I got tickets to the ballgame tonight, so I’m going to buy parts from this supwith Ed Attanasio plier,’ to something worse than that, that may not be good for our business. The direction we’re moving is to establish contractual relationships in writing with a supplier.” Part of that agreement will be all electronic parts ordering. and it drives repair costs up for our with Ed Attanasio “We’re going to get to the customers. So hopefully the aftermarket will figure out how to bal- point where if you do business with ance out supply so that we can buy us, and one of our stores calls you the parts from you that we want to and says, ‘Deliver me this part, I buy.” need it this afternoon,’ if you don’t O’Day acknowledged that cur- get the order electronically, I don’t rently even OEM partsStacey are often Phillips un- want you to deliver it,” O’Day said. with available, and he doesn’t foresee a “Because what’s going to happen is quick end to supply chain issues. you’re going to deliver the part. I’m “Last year, we probably thought going to put it on the car, and I’m maybe the beginning of the second never going to charge my customer quarter of this year, but I haven’t for it. And 60 days from now, you’re going to come back to me and say, seen it,” he said. “I’veStacey heard temwith Phillips porary positive signs, but nothing ‘You owe me for that part, because that’s systematic that’s going to you didn’t get it in your payables drive the change we need. So I think system and you haven’t paid for it we’re probably in for a couple of yet.’ “So it’s a huge loss for me when years of challenging times.” When asked to compare suppli- we do that. So we want to do busiwith Stacey Phillips er service levels, O’Day said “prob- ness with suppliers that are connectlems with parts that come in incor- ed electronically,” with ordering, rectly is much, much lower with invoicing and payment all handled OEM than it is with the aftermarket. electronically. “I think if you talk to a parts O’Day also discussed the techmanager or estimator at one of our nician shortage impacting all collistores, if pricewith and margin sion repair businesses. He serves on Staceywere Phillips equal, they would buy the OE part the Board of Directors for I-CAR, because it tends to be reliable a high and said the segment of the industry percentage of the time,” O’Day said. renewing its I-CAR Gold Class desBut he noted the gross profit margin ignation in 2019 averaged 9.5 techon non-OEM parts is better, so “our nicians per shop. staff is motivated both in terms of “In the most recent round of how we get measured by our insur- renewals, the average shop has 7.5
Social Media for Shops
SEMA Show Goes On
technicians,” O’Day said. “So about a 17 or 18% reduction in workforce. It’s just a highly disruptive environment. And there’s really no shortterm solution. “My view, and most of the repairers I’ve spoken to share it, is the only way we’re going to build our workforce is by paying more money to that workforce, pulling them from other industries,” O’Day said. “The only way we can do that is through pricing. It’s going to cause increased premiums for vehicle owners. But otherwise we’re not going to solve our customers’ problem and get their cars repaired on a timely basis.” He said the industry lacks “a formal, universal way” to work with students coming out of collision repair training programs to build their skills. “They come into our industry, and because we don’t train them
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Body Shops Giving Back
Tips for Busy Body Shops My SEMA
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32 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com
properly to move them to the next level, we lose them to other industries,” he said. To that end, he said, Gerber created an 18-month technician apprenticeship program for students coming out of school or for internal candidates working as a porter or car-washer. “We spend tens of thousands of dollars per trainee, but they come out with pretty good skills after 18 months,” O’Day said. “We’ve made a commitment to more than double the size of that program this year. But I think in the long run, we can’t do it alone. We really need the majority of collision repair shops to make the same type of commitment, and do it in an organized way so these students grow and are successful in our industry.” Another “area of opportunity” See Gerber Collision CEO, Page 48
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How is Your Auto Body Shop Dealing with the Great Resignation? by Ed Attanasio
You thought we would be done with the pandemic by now, but like Al Pacino’s character, Michael Corleone, said in The Godfather II, “Just when I thought I was out, they drag me back in!” Will the effects of the pandemic always be a part of our lives? It sure looks like it. There are still many questions we never had to deal with before, and many things we thought would be in our rearview mirrors by now. Are you prepared for the postCOVID work environment? Are you ready for a majority hybrid-remote office model? Are other shops trying to hire away some of your top people? Will some of your upper management take this opportunity to retire? Is it time to sell? These are life-changing decisions and the time to make them is here. We’re now entering the post-pandemic world and many of your employees have different opin-
ions. While some of your crew is enthusiastically returning to work, others are reluctant and have concerns about hours, safety and other issues. Regardless of whatever your employees think will happen next, body shop owners and managers are just happy to return to some level of normalcy after these 30 months. But, are things really back to normal—and what is normal now, anyway? In many parts of the country, the shortage of qualified people got even worse during the pandemic. An MSO owner told me recently he could put 80 collision professionals to work immediately, if they existed. I would bet any shop out there right now could use a few more qualified people, as car counts rise and customers who were reluctant to bring their vehicles for repairs start showing up at their doors. Poaching employees is a problem, especially in states like California and New York, and it will undoubtedly get worse within the next year or so, I believe. So, with moti-
vating your crew and strengthening them more important than ever, here are some methods to help you retain your best employees. The pandemic caused body shop owners and managers to centralize decision-making to be more efficient, pulling it into the leadership team without feedback from key stakeholders, like top technicians or the head painter. This was essential during the pandemic, but this will need to change to ensure long-term effectiveness and continued employee engagement. One of the smartest ways to do this is to start inviting employees outside the leadership team and closer to the rest of the crew to participate in the decision-making process. Some body shop owners said communication improved tremendously during the pandemic because it became mandatory. “People were no longer in the same room, so imparting communication changed,” one owner said. “We became a Zoom culture, and in many cases,
we became more comfortable with it and adapted.” The pandemic created a virtual world, but unfortunately it won’t have much of an impact down the road in collision repair, because you can’t fix cars via Zoom. It means some employees who were sitting home for more than a year are going to undergo major changes, like commuting and spending less time with their families. Some people won’t adapt well and it may take a month or two to re-engage, so patience but accountability should play a role. During the pandemic, many shop owners and managers decided to push employee communication to the sidelines. The idea was they should not focus on engagement, saying “We can’t ask our managers, techs, estimators and painters to do one more thing!” Stressed out employees were on their own and forced to navigate it all solo. Some quit and many were laid off, and even a few took early retirement or sold their shops to an MSO.
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So now is the ideal time to reconnect with your top talent if you want to retain them. Post-COVID, your disengaged employees will start looking for a better deal elsewhere. Will the return to normal tempt your best people to pursue other options? The best thing to do is to step up employee engagement and keep everyone in the fold. Turnover can seriously impede a body shop, and poaching can spread quickly. Joe Technician is happy at his new shop and the word is out they’re looking for more people, so a strong bond with your employees is more important now than ever. Focus on retaining your female employees, because they are the most likely to switch or quit altogether. According to NPR, 865,000 women left the U.S. workforce— four times more than men—in just September last year. “The coronavirus pandemic is wreaking havoc on households, and women are bearing the brunt of it,” the NPR study said. “Not only have they lost the most jobs from the be-
ginning of the pandemic, but they are exhausted from the demands of childcare and housework---and many are now seeing no path ahead but to quit working. Keep Millennials in your discussions. They’re focused on things such as diversity and inclusion, so keep them in the loop. The worst thing is to have them feeling like they’re not being heard. Let them play a role and watch them excel as people and leaders. To accommodate your younger crew members, keep your meetings short and sweet and create mechanisms to enable them to contribute. It’s a whole new game out there and those shops that can adapt will succeed, while others might encounter a never-ending carousel of new and returning employees. The pandemic changed the rules, but many principles of employee communication are still the same. Try to keep stress levels low, keep your eyes open for changes within your team and proceed carefully, and you will be able to retain your people and avoid the pitfalls of the Great Resignation.
Appeals Court Rejects GM’s Attempt to Overturn FCA Racketeering Lawsuit Ruling by Brad Anderson, CarScoops
An appeals court in the U.S. has upheld a 2020 ruling tossing out the racketeering lawsuit that General Motors filed against Fiat Chrysler Automobiles. General Motors filed the racketeering lawsuit against FCA in November 2019. It claimed its rival had bribed United Auto Workers (UAW) union officials to corrupt labor talks to its advantage. GM claimed this cost it billions of dollars.
While GM has long believed it had a strong case, a federal judge in mid-2020 ordered General Motors CEO Mary Barra and Fiat
Chrysler Automobiles CEO Mike Manley to meet and resolve the lawsuit. The judge noted there were more urgent issues facing the U.S. and the lawsuit was a “waste of time and resources.” GM tried multiple times to have the lawsuit reinstated but earlier in August, the three-judge panel of the U.S. 6th Circuit Court of Appeals rejected the attempt, Auto News reported. “Even accepting GM’s theory as true, the chain of causation between FCA’s bribes and GM’s injury is still too attenuated,” the three-judge panel said in its ruling. The lawsuit alleged FCA corrupted the contract bargaining process between GM and the UAW in an attempt to force a merger between the two car manufacturers. The lawsuit claimed late FCA CEO Sergio Marchionne was responsible for conceiving, executing and sponsoring the wrongdoing. FCA had long called the lawsuit “meritless” and said GM’s recently amended complaint was “full of preposterous allegations.”
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autobodynews.com / SEPTEMBER 2022 AUTOBODY NEWS 35
Guest Columnist with Cole Strandberg
Cole Strandberg is a principal with FOCUS Investment Banking, specializing in automotive aftermarket mergers and acquisitions. Cole works closely with automotive equipment providers, paint jobbers and collision centers. For more information, contact him at firstname.lastname@example.org or (561) 400-1015
Build Your Collision Repair Business with a Buyer in Mind Most entrepreneurs start a business based on one or two of many potential reasons—it could be to exploit a unique skillset or access to talent, pursue a passion or simply meet a need otherwise not being met in the marketplace. Most times, though, new entrepreneurs start businesses with the beginning in mind, but not the end, building a business that meets their immediate personal needs without giving much thought to the long term. As a result, many business owners fall into the trap of limiting their business’s growth, and subsequent options for the long term, based on short-term-minded decisions. By contrast, many of the most successful people in the collision repair space have started their businesses with one goal in mind: to sell it. How can you build your business by thinking like a seller? First, let’s discuss what buyers are looking for, and work our way backward. What do buyers want? Footprint and layout: As you might expect, the more space you have, the better. While each potential consolidator’s footprint desires vary, a safe sweet spot is 10,000 square feet of shop space or larger, though not a hard and fast requirement. Additionally, parking and storage is equally important. If you fall short of that square footage, don’t fret. Maximize the space you have. Maximizing shop space via a well-thought-out equipment layout and shop flow allows for more revenue per square foot. If you’re just building a new location, or considering upfitting an existing location, reach out to one of the quality paint booth manufacturers, most of whom will offer a no-charge design consultation. Revenue: You want to maximize your space because consolidators care about revenue, plain and simple. While most businesses I work with are valued based on a multiple of adjusted EBITDA, or earnings before interest, taxes, de-
preciation and amortization, the collision repair industry places significant importance on revenue as well. This is because, for the most part, if a consolidator can generate a certain amount of revenue within a footprint, they believe they can make that revenue profitable. Again, while there is no hard and fast rule on revenue requirements for consolidators, $2 million in annual revenue seems to be an entry point, with $5 million being a common sweet spot. Anything over that, and you should have some compelling regional and national interest when you eventually go to market. It’s important to note purchase price as a percentage of revenue typically goes up as revenue goes up, just as EBITDA multiples increase when EBITDA increases. Obviously, becoming a small multi-shop owner with two, three or more shops can help that revenue scale more quickly, and make you even more desirable to a potential acquirer. Valuation multiples vary significantly based on a multitude of factors, so if you’d like to discuss situation-specific valuations, feel free to reach out to me directly. Community and relationships: While there is no quantifiable value placed on your shop being a pillar within its community, it certainly doesn’t hurt. Many consolidators are very charitable, so a culture of giving in your shop will make it more attractive. Not to mention, local relationships with the customer base, direct repair programs (DRPs) and dealers will only serve to add value to your business. It never hurts to do good things within your community. Talent: As you likely know firsthand, there’s a theme in the collision industry as it relates to constant challenges: talent—much less good talent—is hard to come by. This is evidenced by some of the largest consolidators in the country investing millions in training programs, incentivizing—aggressively, I might add—experienced techni-
36 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com
cians to train apprentices, and more. This industry puts a premium on talent. Therefore, if you have a lot of talent within your organization, it will help your business get a premium valuation. Validate this by having I-CAR certifications, both at the shop and technician level, as well as original equipment manufacturer (OEM) certifications. So how do you build like a seller? In terms of working your way backward, determine what you want your eventual exit value to be. Once that’s determined, you’ll know what you must do in order to get there. The focus, ultimately, is on scalability and avoiding roadblocks to achieving that scale, such as limited space and poor shop flow. While you might not be a seller today, tomorrow or even five years from now, everyone is in business to make money. Modeling your busi-
ness after some of the best operations in the industry is a good thing. Chances are, building your business by regularly taking a step back and looking at it through the lens of a potential buyer will pay off in both the short and long term. Cole Strandberg is a principal with FOCUS Investment Banking, specializing in automotive aftermarket mergers and acquisitions. Cole works closely with automotive equipment providers, paint jobbers and collision centers. For more information, contact him at cole. email@example.com or (561) 400-1015.
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OEM Roundtable Working to Improve Quality of Collision Repair by Stacey Phillips
Twenty-five years ago, many auto manufacturers found they were experiencing similar non-competitive issues in the industry. George Gilbert from Ford and Rick Sherwood from Campbell & Co. suggested meeting to discuss these issues. The following year, six exploratory meetings were held with numerous OEMs to find out if it would be helpful to form a more formal group and convene regularly. In 1999, the OEM Roundtable was formed. Since then, the group has held quarterly meetings alongside the Collision Industry Conference (CIC). During the April 2022 CIC meeting in Oklahoma City, OK, representatives from the OEM Roundtable shared some of the history and guiding principles of the group. They included Mark Allen, collision programs and workshop equipment specialist at Audi of America; Dan Ducharme, wholesale parts senior manager for Volkswagen of America; and Devin Wilcox, collision certification manager at Subaru of America. Currently, 13 major member companies are involved in the OEM Roundtable, including Ford, GM, Honda, Hyundai, Kia, Mazda, Mercedes-Benz, Nissan, Stellantis, Subaru, Toyota, Volkswagen and Volvo. Many of the representatives are active participants in industry organizations and committees as well as events and panel discussions. Ducharme is the 2022 president of the OEM Roundtable. Prior leaders include: • 2013–2014: Paul Massie, Ford • 2015–2016: Gary Ledoux, Honda • 2017–2019: John Eck, General Motors • 2020–2021: Rossana Alvarez, Honda • 2021: Mark Zoba, Nissan The group’s mission is to continuously improve the quality of collision repair available to vehicle owners. Allen talked about some of the OEM Roundtable’s frequent topics of discussion, which have included improving access to and use of repair procedures independently devel-
oped by some auto manufacturers, bringing awareness to the technician shortage, addressing challenges faced by repairers and parts sellers, as well as researching new industry programs and technologies.
prove. * Open discussion among those involved in the collision repair process and reliable sources of collision repair data are paramount if the quality of collision repair is to continu-
In addition, the group discusses industry programs and legislative and legal updates. Allen said the OEM Roundtable operates under strict anti-trust guidelines. “We want to help the participants in our programs do better,” said Allen. “By offering support, we hope to build better success quicker for shops.” Wilcox said some of the guest presenters at the quarterly meetings may include information providers, industry associations, training organizations, service and equipment providers, MSOs, dealers and shop owners, and insurers. “We’re always open-minded to meeting and discussing what programs and offerings could be beneficial to us as a network and an industry,” he said. The group adheres to three guiding principles:
* The interests of all parties involved in the collision repair process are best protected when vehicle owners are allowed to make informed decisions regarding collision repairs to their vehicles. * Active participation by all parties in the collision repair process is necessary if the quality of collision repair available to vehicle owners is to continuously im-
38 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com
To support these principles, Allen said OEMs constantly enhance the
availability and functionality of repair information developed by each of them. “The information is there to document the file and repair the car the right way,” he said. “Some of us include what the equipment is that the repair procedures were developed with to get the achievable outcome of repairing the car.” The OEM Roundtable and its member companies are involved in the industry in many ways. This includes financial support and engagement with numerous organizations, such as the Automotive Service Association (ASA), Collision Industry Conference (CIC), Collision Industry Electronic Commerce Association (CIECA), Collision Industry Conference (CIF), Collision Repair Education Foundation (CREF), Inter-Industry Conference on Auto Collision Repair (I-CAR), National Auto Body Council (NABC), Society of Collision Repair Specialists (SCRS) and Women’s Industry Network (WIN). “We want to be available for the
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industry at these conferences and be accessible,” said Wilcox. In 2008, the roundtable launched the www.OEM1Stop.com website to respond to the industry’s request for easier access to OEM repair procedures and information. Auto manufacturer position statements were added in 2016. By 2021, there were more than 300,000 total visits to the website and more than 120,000 unique visitors that year alone. “The number of visits has jumped over 300% since 2016,” said Wilcox. “Many body shops are referencing the site now on a regular basis.” Another resource available is www.CrashRepairInfo.com, launched in 2014. This website provides direct outreach to customers and guides vehicle owners through the collision repair process with a focus on proper repairs. Ducharme explained individual OEMs work internally with their engineers to determine what needs to be done pre- and post-collision to streamline repair procedures. At the same time, the group is increasing
engagement with body shops and insurance partners. “We want to make sure everyone has the knowledge and the ability to keep up with all the latest advanced technologies that, as manufacturers, we’re putting into these vehicles,” said Ducharme. “We’re trying to get feedback from all segments so we can make informed decisions and provide a great experience to our mutual customers.” Looking ahead, the OEM Roundtable hopes to help the industry move forward by increasing collaboration and transparency among all industry segments, providing greater use of tools and continuing to learn from all stakeholders. “As OEMs, we are here to support the industry and make sure vehicles are being taken care of and repaired properly,” said Wilcox. “We’re always looking to make it better,” said Allen. “Let’s become professional and agree that we are going to take a look at these repair procedures, have the conversations with customers and insurance partners, and get the car repaired the right way.”
TikTok’s Latest ‘Kia Challenge’ Encourages Users to Steal Cars by Brad Anderson, CarScoops
A viral challenge across TikTok and YouTube has led to a spike in thefts of Kia and Hyundai models throughout the U.S. The “Kia Challenge” shows social media users how to steal certain Kia and Hyundai models by simply removing the plastic cowl under the steering column and using a USB cable. The issue has become particularly prevalent in Milwaukee, WI, where there is a group of young teenagers known as the “Kia Boys” who have become notorious for stealing cars and taking them on dangerous joyrides. It’s not just in Milwaukee where car thefts have surged though. In St. Petersburg, FL, the police department said 23 of the 56 cars stolen on local streets since July 11 have been Kia and Hyundai models model year 2021 and older. Writing on Twitter, authorities encouraged Hyundai and Kia owners to be cautious. “Anyone with a Kia/Hyundai that uses a key, please #lockitup,” it wrote. Speaking with the Tampa Bay Times, police said Kia models
produced from 2011 and 2012 and Hyundai models from 2015 to 2021 have a vulnerability that means the ignition can be easily bypassed. Most of the individuals stealing Kia and Hyundai models are aged between 14 and 17. St. Petersburg Police Department Sgt. Cody Lance said the majority of the cars stolen are unlocked and encouraged owners to always lock their vehicles. He also encouraged the use of steering wheel locks and said parking vulnerable Hyundai and Kia models behind other vehicles can make them more difficult to steal. The trend is spreading across the country. Authorities in St. Paul, MN, have reported a more than 1,300% increase in Kia thefts from last year and an 854% increase in stolen Hyundais. In Grand Rapids, MI, Hyundai and Kia models also made up roughly 45% of the city’s auto thefts in June. Spikes in thefts have also been reported in St. Louis, Memphis, Cincinnati and Columbus. The two car manufacturers said they were aware of the increase in thefts and noted all of their current models are fitted with engine immobilizers.
Lucid Cuts Production Goals by 50% Once Again by Joey Klender, Teslarati
Lucid Group cut its 2022 production outlook to between 6,000 and 7,000 vehicles after citing “extraordinary supply chain and logistics challenges.” Lucid initially projected its 2022 production goal as 20,000 units last year. This was quickly revised in February to between 12,000 and 14,000 vehicles. As automakers across the world struggled with supply issues and parts shortages, startups began to reconsider their goals for the year. Rivian also slashed production goals considerably in early 2022, citing supply issues and other challenges as the reasoning. Lucid’s situation is no different. Struggling with cash flow, the company lost nearly $5 billion in 2021, and took another $220 million loss in Q2, it disclosed in its Shareholder Deck. Only 679 Lucid Air vehicles made their way to customers in Q2. When asked about a week-
ly production rate, CEO Peter Rawlinson said it would be best not to start “cherry-picking specific weekly production rates.” Meanwhile, CFO Sherry House said customers and investors should see deliveries begin to pick up substantially through the next few quarters. “Our revised production guidance reflects the extraordinary supply chain and logistics challenges we encountered,” Rawlinson said. “We’ve identified the primary bottlenecks, and we are taking appropriate measures…We continue to see strong demand for our vehicles, with over 37,000 customer reservations, and I remain confident that we shall overcome these nearterm challenges with a relentless tenacity and a steely determination.” Rawlinson also said Rivian has brought logistics operations in-house and is working to strengthen its executive team. Lucid shares were trading at $18.74, down 8.9% the morning of Aug. 4 in New York.
40 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com
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Forward-Thinking Program Creating Great Auto Body Techs of the Future by Ed Attanasio
In the summer of 2019, Southeastern Community College (SCC) in West Burlington, IA, hired Dr. Ashlee Spannagel as its new dean of career and technical education (CTE) and workforce development. Spannagel entered the job excited and ready to take on the world— and then the pandemic hit. It’s been a “work around” project ever since, but she hasn’t been dissuaded one iota, taking the position and making it her own as the school’s collision repair department benefits in many ways. Spannagel came to SCC after working in education for nine years. One of the first things she did was to
collision repair department. Can you tell us about that?
We receive an annual allocation of funding that is called ACE (Accelerated Career Education) funding. The whole purpose of that money is to reinvest in infrastructure, so that we can provide more classes and accommodate more students. One of the things that we chose to do with the money was to remodel our auto collision facilities, and it has worked out very well. We are confident that this will lead to more enrollment down the road, which is obviously the goal. It shows that we are open and committed to collision repair and ready to pivot if needed.
It’s a huge job and a big school, so how are you able to do it all?
Dr. Ashlee Spannagel is the dean of career and technical education (CTE) and workforce development at Southeastern Community College in West Burlington, IA
build relationships with established area educators, industry leaders and workforce and economic development partners to continue building opportunities for students. This included local body shops, car dealerships, vendors and companies that manufacture collision repair-related products, tools and equipment. Spannagel stays busy as she oversees the school’s entire CTE division and works closely with faculty and area employers to ensure SCC provides top-notch, industry-level education to its students. Her role within SCC’s auto and collision repair programs is only one small part of everything she does at this forward-thinking institution.
While other CTE programs in the country have stepped back during the pandemic, you have stepped up in many ways for your
Yes, I am responsible for 47 certificate, diploma and degree programs, and collision is just one them. I’ve been involved in technical education and post-secondary education 13 years now. The technology in the collision repair industry changes so rapidly that we can’t possibly keep up with the changes that are occurring. We need to do our best to keep pace with what’s going on, and then bring in other learning opportunities to help students to be up to date. We have been working very hard to align with industry-recognized credentials and what our local shops need in our graduates, so we rewrote the curriculum and pursued ASE accred-
program with far more credentials than they would have been qualified to earn previously.
How can you stay current in an industry that is changing at a rapid rate?
my team who are eligible for retirement in the next five years. There is a lot of talent, knowledge and experience that is highly skilled and invaluable to our programs. So, in the next five years, we’ll have to figure
I personally think our collision instructors are excited that the students are highly interested about technology. Our students have grown up with technology. They are technology natives. So anytime we can include those hightech pieces—either tools, equipment or concepts that the students are likely to engage with—that is ideal. We want to enable the body technician of tomorrow to be adept at using technology and that’s one of our main goals here at SCC.
How do you find, hire and maybe most importantly retain good instructors?
My biggest concern now is that we have a lot of staff on
The college’s goal is to enable and empower the body techs and painters of the next 30plus years
out how to replace it. I think the way that we’ve handled the pandemic and our instructional continuity has really helped us retain our staff. But now I’m growing concerned about the fact that they’ll be retiring here shortly.
How has establishing mutually beneficial partnerships with local shops and vendors helped See Techs of the Future, Page 46
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42 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com
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Repairify’s New Partnership with ATG Will Provide Industry with Advanced Diagnostic Training by Stacey Phillips
With the growing need for collision repair technicians to understand the mechanical components of vehicles, Repairify is taking steps to equip them with the skills they need to repair vehicles properly. In July, Repairify announced it acquired the Automotive Training Group (ATG) to create and offer advanced diagnostic training for the industry focused on both mechanical and collision repair. “Their content and workbooks are the best in the industry,” said Chris Chesney, Repairify’s vice president of training and organizational development. “I’m really looking forward to bringing them on board and integrating them into what we do.” Founded in 2004, ATG offers live and virtual technical training worldwide. Chesney has a long history of working with the ATG team over his career and has great respect for the company and team of instructors for presenting excellent information in an understandable and interesting format. As a result of their new partnership, Repairify will support ATG in such a way that they can produce and deliver meaningful content to a wider audience. This includes offering classes that focus on scanning and calibration, Advanced Driver Assistance Systems (ADAS) and electric vehicles, as well as vehicle data networks. “Part of that network might have been damaged or had corrosion or resistance in connectors or whatever that are not a part of the of the collision but affect the overall results or capabilities of that one network,” said Chesney. “It’s important for [technicans] to know how to triage those and validate that they’re actually working as designed.” Working in this field for the majority of his career, Chesney understands the importance of connecting with technicians so they have a full picture of what needs to be done to be successful on the shop floor. He has worked as a shop owner, service advisor, trainer, training manager and training program owner. All these roles have focused on the me-
chanical side of the business. In 2002, Chesney moved to Raleigh, NC, to build out an automotive training team. When he left that organization in 2021, it was hosting 150,000 active learners who were taking self-paced online courses or participating in the 3,000 to 4,000 in-person or live virtual classroom events held each year. About three months after Chesney’s retirement, Cris Hollingsworth, president of Repairify, asked him to join the company in 2021 to head up its training arm. Most of Repairify’s training is currently targeted to internal trainers and technicians and is offered both virtually and in-person. The company also offers product-oriented training to customers in a virtual setting. “Up until now, the primary focus has been to rightsize and enable the internal training team so that our own people can be best prepared to serve our customers in their remote services that that we have made tremendous headway with,” he explained. Future training will be presented in what Chesney refers to as an adaptive learning model in which online course materials are customized to the learner for an experience not available in a traditional classroom setting. “Imagine the instructor of a virtual classroom knowing the skills gap of every student on the call,” said Chesney. This will allow instructors to better focus content during the lessons and interact with students. He said Repairify will be working with I-CAR to align ATG content with I-CAR standards to count toward accreditation. Training will be developed with a diagnostic approach, combining OEM support information with real-world technician experience using actual case studies where possible. What sets ATG apart from other training, according to Chesney, is the company’s specialization in OEM repair information and its approach to learning. “What ATG does is take that factory information and dissect it,”
44 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com
explained Chesney. “When it’s a competency around a standard that’s used by all brands, then they level the terms and the diagnostic approach so that it’s brand agnostic.” An important aspect of the training will include learning how to find OEM service information. “The big myth in the industry is the belief that OEM service information is hard to get a hold of,” said Chesney. He stressed the importance of checking the repair information on every vehicle. “In the case of things like ADAS, it changes daily and you need to go look at it for every repair or calibration,” recommended Chesney. “Otherwise, it can catch you by surprise and get you in trouble.” Repairify’s ultimate goal is to help prepare technicians to repair future vehicles and present information in a way they will understand. “We look forward to enabling technicians with skills and technology so that what happens in the class-
room sticks more and it gives them the ability to apply it when they get back to the shop,” he said. The company also plans to offer career paths for potential collision and mechanical technicians that are appropriate for their roles. “Bringing ATG alongside what we’re doing on the collision side really allows us to leverage our existing content, so our internal team of technicians and remote techs can be better prepared to help our customers,” said Chesney. For additional information about ATG, visit www.atgtraining.com.
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Mike’s Auto Body Gave Away 100 Cars in 21 Years, Changing Countless Lives by Ed Attanasio
When Crash Champions announced it was acquiring Mike’s Auto Body (MAB) in June, many people throughout the Bay Area thought about MAB’s nationally acclaimed Benevolence Program. It became part of the brand at Mike’s Auto Body as the company and its owners, the Rose family, gave away exactly 100 vehicles to deserving families, individuals and nonprofit organizations over the past 21 years. The goal has always been to give people a hand up as opposed to a handout with the gift of transportation, and the MSO achieved that mission with every vehicle it presented to a deserving recipient. In 2001, Mike’s Auto Body began giving refurbished cars to people in need. The very first recipient was a single mom with two children. Reporter Wayne Freedman from Channel 7 ABC News reported on the presentation and broadcast the story on the evening news. It quick-
ly became an annual tradition, as Freedman and his news team reported on every presentation throughout the years during the holiday season, along with more and more media that flocked to the feel good story. Over the years, Mike’s Auto Body got more people involved in its Benevolence Program, including vendors, technicians, car rental companies and insurance partners. The vendors donated products and their services, the technicians at Mike’s Auto Body donated their time and skills, and the insurance and car rental companies donated the vehicles. The vehicles donated were considered totaled, but by refurbishing them and returning them to their pre-accident condition, they looked brand new. Mike’s Auto Body made its first presentations from 2001 through 2006 at its Concord, CA, location, with a one-year exception in Brentwood, CA. Since then, it has held car presentations at some of its shops in the East Bay, as well as at other
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locations, including in conjunction with the U.S Coast Guard’s CPOA in Alameda, CA, on the pier in front of the USS Hornet Museum. The Benevolence Program director at Mike’s Auto Body is Sal Contreras, who has been involved with every car presentation since the program’s inception and is considered the Benevolence Ambassador. “We always say that at Mike’s, we are providing ‘a gift of charity wrapped in dignity,’” Contreras
Over the years, Mike’s Auto Body got more and more people involved in its Benevolence Program, including vendors, technicians and insurance partners. Sal Contreras, Benevolence Ambassador, is pictured far right
said. “These deserving people are working towards making a better life for their families; all they need is reliable transportation to make it happen. “Early on, Mike [Rose] said he wished he could give 100 cars to families; well, we achieved Mike’s dream in December of 2021,” Contreras said. “We presented the 100th car to a single mom who had been struggling to raise her family without a car. The Benevolence Program came full circle, as our first recipient was a single mom raising her family.” The Rose family made the Benevolence Program part of their lives, and it was quickly ingrained into their DNA. “We feel very fortunate to be involved with such a wonderful program and are very excited to be able to give back to the area communities that have supported us for the past 50 years,” owner Mike Rose said. “After receiving hundreds of applications over the years and reading the heartbreaking stories, we only wish that we could do more. But hopefully, with increased publicity of our Benevolence Program, other shops will adopt a similar program
of their own.” “As a family-founded company, we have always prioritized philanthropic initiatives, in particular those that most impact our neighbors and the community organizations they rely on,” said Brennan Rose, CEO of Mike’s Auto Body. “To this end, we could not be prouder to celebrate our 100th vehicle donation as part of our Benevolence Program. For more than two decades, this program has been a staple of our charitable giving, and as we transition under the Crash Champions name and banner, we look forward to finding new and creative ways to give back to the communities where we operate.” CFO Ragen Ortland-Rose was a major force behind MAB’s Benevolence Program. “We never imagined that the program would grow as it did,” she said. “Our people and the community rallied around it, as the power of giving grew exponentially. We’ve always stressed quality in everything we do, and the program illustrates that. We enabled so many worthy people to improve their lives, and that’s why it gained so much momentum. “Other body shops reached out to us and started their own programs, so the giving spread, and today our program will live through other shops all over the country,” Ortland-Rose continued. “We know that Crash Champions will continue our legacy in some form because they share our passion for helping others. My father and my mother stressed that this is important, and that’s why we did it every year for 21 years. “When we gave away our 100th vehicle, we did not realize that it would be the last within our program, but now it is fitting and a number that all of us can easily remember!” Ortland-Rose concluded. “Thanks to everyone involved, including employees, insurance partners, vendors and the nonprofit organizations that helped us find worthy recipients over the years.”
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autobodynews.com / SEPTEMBER 2022 AUTOBODY NEWS 45
Technician/Painter Recovering from Severe Burns Recognized During 11th Annual CIF Gala by Stacey Phillips
Members of the collision industry gathered at the 11th Annual Collision Industry Foundation (CIF) Gala in Pittsburgh, PA, on July 20 to show their support for Bryan Miller, an Ohio-based technician and painter recovering from severe burns he suffered from an in-shop fire in September 2021. The fundraising event, held at the Howl at the Moon restaurant, was the first time CIF has hosted its annual gala since the pandemic. The nonprofit organization is committed to assisting those working in the collision repair industry through crises and tragedies. “I’m happy to report we had record attendance,” said Petra Schroeder, “Collisionista” and secretary of CIF. “About 163 individuals from all segments of the industry were present, of which 41.7% were firsttime attendees.” Earlier in the year, CIF put out a call to the industry at large for the first time looking for volunteers interested in joining the organization’s committees. The following individuals became part of the gala volunteer committee: Tracy Darrington, Enterprise; Matt HamerContinued from Page 42
Techs of the Future your collision repair department?
Within the past 18 months, we have been working on bolstering the relationships we have with our local body shops. We have a lot of body shops in our service area that are actually owned and operated by former students of the program. We also have a couple dealership repair centers in our area, and we have been able to partner with them as well. I realized we had an opportunity to strengthen our program when six local businesses approached me questioning the skills they were seeing in our students who had entered the workforce. So, I personally built relationships with these companies,
ling, Enterprise; Paul Hill, I-CAR; Tom Julius, Car-Part.com; Stacey LaViola; Cherlyn Schultz, Enterprise; Scott Stiber, Enterprise; Ann Swayka, AirPro Diagnostics; and John Webb, TenPointComplete. “I want to give a big shout-out to those gala committee volunteers,” said Schroeder. “What they did to
CIF Trustee Jim Ocampo presented Bryan Miller with a $15,000 check. Pictured, left to right, are CIF President Michael Quinn, of AirPro Diagnostics; Jim Ocampo, Axalta; Bryan Miller and Kassi Nellett
help us was incredibly valuable and their support was outstanding.” Schroeder said the assistance from the volunteers was instrumental in preparing the gala to help Miller and raise money for others in the industry who might need assistance in the future. “The event provided the opportunity to bring industry individuals and their managers have partnered with us in the work we have done to strengthen our program. We have worked to bolster our relationships with local body shops. The shops have been very receptive, very helpful and very engaged. We also work with vendors like PPG that come and do special paint classes for our students. This is just one great example of the learning opportunities we provide our students. In addition, we did just receive ASE accreditation that we have been working on for the past 18 months.
Your leading source for SOUTHWESTERN Collision Repair News! southwestern.autobodynews.com
46 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com
together as well as the opportunity for additional fundraising through event ticket sales, raffles and silent auctions,” said CIF President Michael Quinn, president of AirPro Diagnostics. “At the gala, we were able to bring one of our most recent recipients of CIF support, Bryan Miller, to meet with and thank in person many individuals from organizations who provided direct support to him.” During the event, CIF Trustee Jim Ocampo, strategic accounts sales manager at Axalta Coating Systems, presented Miller with a $15,000 check. Approximately 40% of the amount was donated by the industry to a campaign specifically to help Miller, and CIF contributed the remainder. Miller began working in the auto industry in 2016 and has spent time since then as a collision technician/painter. Last September, he was working on a motorcycle at the shop he was employed at, and a fire broke out. When Miller’s body caught on fire, he was trapped in his work area
before escaping out of a window. He was transported to a hospital by helicopter. Although he survived, Miller had third-degree burns covering most of his body and multiple surgeries and skin grafts. He said he lives in constant pain and expects it will take at least a year to regain full mobility. Miller, his fiancé, Kassi Nellett, and his cousin, Steve Legg, attended the gala to show their appreciation for the assistance provided by CIF and the industry to help him recover from his injuries and get back to work. “I want to go back to work right now! It’s my passion; I feel blessed to have found a career that’s given me a sense of pride to be able to tell people what I do for a living. I just love everything about my job,” said Miller in an article written by Joel Gausten. For more information about CIF, visit www.collisionindustryfoundation .org.
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AirPro Diagnostics, CCC Partner CCC Intelligent Solutions on Aug. 2 announced AirPro Diagnostics will become the newest member of the CCC® Diagnostics network. Through an integration with AirPro, collision repair users of CCC Diagnostics will soon be able to capture and document AirPro scan and calibration information in their CCC ONE® workfiles. The streamlined service with AirPro is expected to be available via CCC ONE in September. The integration does not require a physical connection between the AirPro device and CCC ONE. Information is uploaded automatically, and the scan report is automatically attached to the vehicle’s CCC ONE workfile. Activation is simple. Repair facilities using CCC Diagnostics select their preferred diagnostic provider(s) from those available through CCC’s network and providers send scan data directly to the CCC ONE workfile. Source: CCC Intelligent Solutions
Collision Repair Association Conducting Study of Blend Time Formula by John Yoswick
The Society of Collision Repair Specialists (SCRS) has provided a few more details about its study beginning in August into the accuracy of the blend time formula commonly used in the industry.
Aaron Schulenburg of the Society of Collision Repair Specialists said shops have long challenged the accuracy of the estimating systems’ blending formula
Speaking at the association’s open board meeting in late July in Pittsburgh, Executive Director Aaron Schulenburg noted the three estimating system providers each
Continued from Page 32
Gerber Collision CEO he said Gerber is “pursuing pretty aggressively” is improving the “diversity of our industry,” working to attract more women, Black or Asian Americans and other minority groups. “We’re doing a lot to create an inclusive environment that will allow us to successfully recruit people who don’t look like me, and build our workforce with greater diversity,” O’Day said. “Because if we go after the same group that we’ve always been targeting, we’re never going to solve the problem, and we’re not going to be as good of a company. So we have a very strong commitment to improving diversity.”
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establish its own refinish labor allowance for any given panel. “The refinish time for a fender in Audatex will look different than the refinish time for that fender in CCC, which will look different from the refinish time in Mitchell,” Schulenburg said. “Which is fine, they’ve each done their own research on it. All three companies identify 50% as a blend value; despite the fact that they don’t have the same refinish values, all identify blend time as 50%. “Our members have long challenged that,” Schulenburg said. “We don’t believe 50% is reflective of what we’re actually doing, because there are a lot of tasks associated with [blending] outside of just the application of the base coat, which, for a large part, is the task that is being adjusted.” Schulenburg said given the lack of “positive movement” SCRS has seen on the issue based on its long-standing discussion with the estimating system providers, the association is working with the five primary refinish companies on a study taking place at Global Finish-
ing Solutions’ Center of Excellence facility in Wisconsin. “We will actually be using a systematic approach where we do complete refinish on doors, fenders and hoods, and then blend on doors, fenders and hoods, to evaluate the delta between the full refinish task and the blend tasks,” Schulenburg said. “We’re not doing a refinish time study. Our goal is not to establish a refinish time on those panels. We will just be evaluating what percentage of the full refinish value blend represents.” He said the study will use panels for a high-volume Ford truck, waterborne products used in all U.S. markets, and color codes that represent a solid, a metallic and a tri-coat. “This has been an issue for a long time,” Schulenburg said. “We hope to put a punctuation mark on this one.”
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autobodynews.com / SEPTEMBER 2022 AUTOBODY NEWS 49
Lemonade to Use Mitchell’s Claim Solutions for Newest Product by Stacey Phillips
Mitchell, an Enlyte company, recently announced Lemonade, the insurance company powered by artificial intelligence (AI) and social impact, has chosen Mitchell’s claims management platform for the insurer’s newest product, Lemonade Car. The company will use Mitchell’s claims workflow, automation
and total loss solutions to help streamline and optimize claims handling. “At Lemonade, we’ve set out to make the most lovable car insurance available, and part of that is creating the best experience possible,” said a Lemonade spokesperson. “By collaborating with Mitchell and using the company’s comprehensive claims management technology, we’re able to build efficiencies into our product to make it as seamless and easy for our customers to file a claim following an accident, as well as share necessary information with third-parties including auto body shops and medical facilities.” “We’re extremely proud that Lemonade—a top-rated insurer with a focus on fast, efficient claims resolution—has selected our technology to support their entry into the U.S. auto insurance market,” said Jack Rozint, senior vice president, repair sales, Mitchell Auto Physical Damage division. “Their decision to do so validates Mitchell’s leadership position in claims processing technology.” “We’re honored to support Lemonade,” said Debbie Day, executive vice president and general manager of Mitchell’s Auto Physical Damage division. “At Mitchell, we continue to invest in the development of innovative, cloud-based solutions that are designed to allow our customers to work more efficiently while meeting consumer expectations for an automated, digital claims experience. Our auto physi-
cal damage and casualty solutions help carriers like Lemonade scale quickly as they bring best-in-class offerings to market.” Launched in November 2021, Lemonade Car uses telematics to measure how much and how safe people drive. It provides 24/7 on-location roadside assistance, real-time crash detection and dispatch of emergency services, and offers perks for safe and environmentally conscious customers. These include discounts for low-mileage drivers and those who own electric and hybrid vehicles. After being introduced in Illinois and then expanding to Tennessee and Ohio, plans are in place to continue rolling out Lemonade Car across the country. Mitchell, a leading technology and information provider for the property & casualty (P&C) claims and collision repair industries, will support Lemonade in delivering an efficient, digital claims experience for consumers purchasing auto policies. Lemonade is a full-stack insurance carrier built to provide the best, most delightful and most transparent insurance experience in the world, according to a company spokesperson. A Certified B-Corp, Lemonade gives unused premiums to nonprofits selected by its community, during its annual Giveback campaign. Rozint explained Mitchell’s solutions provide Lemonade with the technology needed to streamline key steps in the claims process, including loss reporting and damage appraisal. “Mitchell is committed to helping our customers—both automotive insurers and collision repairers— simplify and accelerate claims management,” said Rozint. “Lemonade presented an excellent opportunity to apply our industry-leading solutions with a partner that is poised for rapid growth.” Through the collaboration, Rozint said Mitchell can assist the insurer with settling claims seamlessly while delivering an exceptional customer experience. “The integration of Mitchell’s solutions with Lemonade’s existing technology stack will support an
50 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com
automated, digital claims process— from first notice of loss (FNOL) to settlement,” he said. Lemonade is also leveraging Mitchell’s auto casualty injury claims processing solutions to automate both first-party auto and third-party liability claims. “Automating these functions is intended to align with the insurer’s goal for Lemonade Car: to use technology to handle emergencies and
settle claims seamlessly, providing the best possible experience for customers,” according to a press release. “Lemonade is advancing the auto insurance market with sophisticated technology and Mitchell, being an auto casualty technology leader, is happy to support those goals with our specialized casualty technology and service solutions,”
said Norman Tyrrell, vice president of product management, Mitchell Casualty Solutions Group. “Lemonade will be leveraging Mitchell’s DecisionPoint Medical Bill Processing software as well as a number of our Technology Enabled Solutions.” Several years ago, Mitchell decided to rebuild its core platform around key concepts that included an open, cloud-based architecture, and support for proper and safe repairs. “With each new customer, we believe that the market is validating this direction,” said Rozint. For more information about Lemonade Car, visit www.lemonade.com/ car. For property casualty and collision repair updates and perspectives, follow Mitchell on Twitter @MitchellClaims and @MitchellRepair.
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autobodynews.com / SEPTEMBER 2022 AUTOBODY NEWS 51
Hyundai Gets $19.2 Million Penalty for Tarnishing Millions of Customer Credit Reports by Michael Gauthier, CarScoops
Hyundai Capital America—the captive finance partner of Hyundai, Kia and Genesis in the U.S.— has been slammed by the U.S. Consumer Financial Protection Bureau for “widespread credit reporting failures” that harmed millions of customers. According to the government, HCA repeatedly provided inaccurate information to credit reporting companies and didn’t take proper steps once problems were identified. Furthermore, the Consumer Financial Protection Bureau alleges the company used “manual and outdated systems, processes and procedures to furnish credit reporting information—which led to widespread inaccuracies—and resulted in negative inaccurate information being placed on consumers’ credit reports through no fault of their own.” The scale of the problem was massive, as the Consumer Financial Protection Bureau found HCA furnished inaccurate information for more than 2.2 million custom-
ers on more than 8.7 million occasions between 2016 and 2020. Even worse, “In many cases, Hyundai knew it was providing inaccurate information and failed to take reasonable measures” to address the issue.
This hurt consumers as HCA would report customers delinquent on loans and leases, despite having been paid on time. In particular, the government found “in approximately 570,000 instances, Respondent (HCA) inaccurately inserted codes showing delinquent or no payments in the PHP (pay-
ment history profile) when the consumer had in fact made the required payments and the account was actually current.” Unsurprisingly, this lowered customers’ credit scores and impacted their access to credit. It also subjected them to higher interest rates due to their lower credit score. Following an investigation, the Consumer Financial Protection Bureau determined HCA violated the Fair Credit Reporting Act by failing to report complete and accurate loan and lease account information, failing to provide date of first delinquency information when required, failing to modify or delete information when required, failing to have reasonable identity theft procedures, and failing to have reasonable accuracy and integrity policies and procedures. In a statement, Consumer Fi-
nancial Protection Bureau Director Rohit Chopra said, “Hyundai illegally tarnished credit reports for millions of borrowers, including by falsely reporting them to credit reporting companies as being delinquent on their loans and leases. Loan servicers must be complete and accurate when furnishing information that affects a borrower’s credit report.” HCA will pay a $6 million civil penalty to the Consumer Financial Protection Bureau, as well as $13.2 million in compensation to current and former customers who had inaccurate information furnished to credit reporting companies saying they were “30 or more days past due on an automobile retail installment contract or lease.” While $19.2 million sounds like chump change, the Consumer Financial Protection Bureau noted this was its largest Fair Credit Reporting Act case against an auto servicer. The bureau also revealed Americans owe $1.4 trillion in auto loans, making it the third largest consumer credit market.
Rivian Amazon Vans Delivered 430K-Plus Packages During Pilot Program by Maria Merano, Teslarati
Rivian reported delivering more than 430,000 Amazon packages with its Electric Delivery Van (EDV) during the vehicles’ pilot deployments, which rolled out in July. In July, Amazon announced Rivian EDVs would be deployed in locations across the U.S., including Baltimore, Chicago, Dallas, Kansas City, Nashville, Phoenix, San Diego, Seattle and St. Louis. Rivian and Amazon worked closely together to design the EDV vehicle. “A close development partnership with Amazon and its delivery drivers enabled us to optimize the EDV features and design for last mile delivery,” Rivian said in its Q2 Shareholders Letter. “This process included delivering more than 430,000 packages through multiple pilot deployments that began in early 2021—these pilots enabled a rapid refinement of a range of features.” Rivian explained each EDV feature, providing a reason behind each design decision. For instance, the EV automaker equipped the electric delivery van with rear roll-up doors
so it would be easier to load bulky warehouse items. Rivian’s Amazon Delivery Van also has a tall roof, so drivers can easily walk through it. Plus, Amazon EDV vehicles work with Rivian’s fleet management system, called FleetOS. The EV automaker also highlighted how closely Rivian engineers worked with Amazon employees to optimize EDV features. “To ensure optimal temperature, Rivian engineers spent time in the vans during delivery routes, which helped the development of an HVAC system optimized for driver comfort and efficiency,” noted Rivian. One Amazon delivery driver already provided his first impression of Rivian’s EDV via his YouTube channel, Friday Adventure Club. He was impressed with the EDV and listed its advantages over ICE delivery vehicles. Amazon deployed Rivian EDV 700s in July. Rivian has two other variants for its electric delivery van: the EDV 500 and the EDV 900. The EV automaker announced it started production validation for the EDV 500 in Q2 2022.
52 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com
Visit these Genuine Hyundai Parts Dealers
The RIGHT COLLISION PARTS FOR YOUR COLLISION JOB.
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Mon-Fri 7am - 7pm; Sat 7am - 4pm email@example.com
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North Richland Hills 7724 North East Loop 820
Spring 20440 Interstate 45
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Gilbert 877-450-9001 (480) 813-3383 Fax M-F 7am - 6pm email@example.com www.hornekia.com
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LOUISIANA All Star Kia of Baton Rouge Baton Rouge 5740 Siegen Lane 225-490-8000 (225) 490-8014 Fax
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Houston 1-888-983-1425 (281) 983-1437 Fax M-F 7am-6pm Sat 9am-2pm www.archerkia.com
Find your local Kia dealership today at www.kia.com Bob Utter Kia
Sherman 903-892-5967 (903) 891-7304 Fax M-F 7:30am - 6pm Sat 7:30am - 1pm Mike.firstname.lastname@example.org www.bobutterford.com
UTAH Findlay Kia
St. George 435-817-4245 (435) 634-1229 Fax M-F 8am - 6pm Sat 8am - Noon
De Montrond Kia
Houston 281-877-3060 281-872-3909 (281) 872-3914 Fax M-F 7:30am-6pm Sat 7:30am-3pm www.demontrondkia.com
Huffines Kia McKinney McKinney 469-525-4354 M-F 7am-7pm email@example.com firstname.lastname@example.org
*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 2022 AUTOBODY NEWS 53
3M, CREF Donate Products to 300 Schools
CREF Invites Collision Industry to Fall 2022 High School & College Transportation Student Career Fairs
As 2021 drew to an end, 3M donated $889,719.50 in products and supplies to 300 schools around the country, through the Collision Repair Education Foundation (CREF). Equipping collision education programs with the most upto-date supplies, materials, tools and equipment allows collision instructors to train students with the same products they’ll be using in their future positions in the industry—without maxing out the department’s budget. Each care package included several DA sanders, along with sanding/graining/finishing discs, sandpaper, repair glue and “all kinds of good stuff,” according to Jerry Goodson, collision repair and refinishing instructor at Chippewa Valley Technical College in Eau Claire, WI. Since 2008, 3M has actively aided CREF’s efforts to assist collision students, instructors and schools, generously providing frequent in-kind donations, funding grants and supporting CREF’s Hire Our Heroes campaign. Source: CREF
Aging workforce blues got you down? Worried about who will fill the workforce as older employees retire? Ready to do something about it? The Collision Repair Education Foundation (CREF) invites industry businesses to participate in its Fall 2022 High School & College Transportation Student Career Fairs, being scheduled across the country to provide employers with an opportunity to get to know thousands of incoming industry professionals. “CREF’s Career Fairs provide a unique opportunity for collision industry employers to connect with hundreds of students who have trained for entry-level positions and are ready to start their careers,” said CREF Program Manager Tiffany Bulak. “Engaging with future transportation industry professionals is vital for all segments of the industry— collision centers, dealerships and even paint, tool and equipment companies—as a means of generating brand awareness for the
business but most importantly, in order to showcase the diverse career paths available to the students in attendance.” Fall 2022 High School & College Transportation Student Career Fair Schedule Oct. 4: 3M Headquarters, SaintPaul, MN Nov. 9: Kingwood Park High School, Houston, TX Nov. 10: Collin College, Dallas, TX Dec. 6: Suburban Showcase Conference Center, Detroit, MI To complement the physical career fair events and ensure CREF helps connect students with employers across the country, CREF also has an electronic student resume database with contact information for over 600 collision students. Interested in participating in an event listed above, or in collaborating with CREF to schedule one in your market? Contact Bulak at Tiffany.Bulak@ed-foundation.org.
Can’t attend a career fair but still anxious to get your company name in front of incoming technicians? Support local high school and college collision students by sponsoring work uniforms to ensure the future workforce recognizes the value of looking professional. For a donation of just $50 per student, companies can provide students with a brand new Cintas technician shirt, branded with your logo, work pants and a safety kit. Email Tiffany.Bulak@ ed-foundation.org to learn more. Industry members interested in getting involved and supporting CREF’s efforts to assist secondary and post-secondary collision repair training programs should contact Brandon Eckenrode, managing director, at 312-231-0258 or Brandon.Eckenrode@ed-foundation.org. Monetary donations can be made online. Source: CREF
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www.bodyshopsecrets.com For more information, contact the authors at email@example.com 54 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com
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Order Audi Genuine Parts from these select dealers. ARIZONA Audi Gilbert Gilbert
877.412.2925 480.855.8101 480.346.9201 Fax M-F 7am-6pm Sat 7am-1pm firstname.lastname@example.org www.audigilbert.com
Audi Peoria Peoria
877.358.8165 623.561.4750 623.561.4703 Fax M-F 7am-6pm Sat 7am-5pm email@example.com
Audi Fort Worth
Audi North Austin
817.632.6709 817.632.6747 Fax M-F 7:30am-6pm Sat 8am-3pm firstname.lastname@example.org email@example.com www.audifortworth.com
512.219.3172 512.219.6214 Fax M-F 7am-7pm Sat 7am-5pm Parts@audinorthaustin.com www.audinorthaustin.com
Dallas/Fort Worth 877.424.AUDI (2834) 817.553.2252/2258 M-F 7am-6pm Sat 8am-5pm firstname.lastname@example.org email@example.com www.audigrapevine.com
Dallas/Fort Worth 214.452.3830 214.452.3855 Fax M-F 7am-7pm Sat 8am-5pm firstname.lastname@example.org www.audiplano.com
TEXAS Audi Dallas Dallas
866.327.2318 214.438.0894 Fax M-F 7am-7pm Sat 9am-5pm email@example.com www.audidallas.com
Regardless of the age of your customer’s Audi, Audi dealers have access to over 200,000 part numbers and are supported by a nationwide network of distribution centers to help ensure non-stocked parts are delivered the next day.
autobodynews.com / SEPTEMBER 2022 AUTOBODY NEWS 55
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POUR ÉVITER DES BLESSURES GRAVES OU MORTELLES:
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56 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com
SERIOUS INJURY OR DEATH: COUSSIN GONFLABLE LATÉRAL TODoAVOID lean against the door. •Do not (SRS) • not use seat covers that
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