November 2023 Southwest Edition

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U.S. House Passes Bill To Prevent Internal Combustion Engine Bans The U.S. House of Representatives passed the Preserving Choice in Vehicle Purchases Act, prohibiting the EPA from issuing a waiver to California for regulations that would ban the sale of new motor vehicles with internal combustion engines (ICE) in the state by 2035.

Environment and Public Works Committee.

SEMA thanked Joyce for leading the fight to ensure Americans can choose the type of motor vehicle that best meets their needs.

“The last thing my constituents want is another oppressive Biden

42 YEARS

Vol. 41 / Issue 11 / November 2023 REGIONAL NEWS

Colorado Trying to Boost EVs Tenfold by 2030 with Thousands in Rebates, Credits

By Shirleen Guerra The Center Square

By handing out thousands in rebates and credits, the state of Colorado has an ambitious plan to get more electric vehicles on the road.

There are up to $26,000 in state and federal subsidies available to Colorado motorists looking to buy electric vehicles as part of the state’s plan to increase the number of EVs on roads by 2030 by more than tenfold.

The state’s goal is to have 940,000 EVs in the light-duty sector on the road within seven years. As of January, there were 72,840 EVs on the road in Colorado, according to Drive Electric Colorado.

The Colorado Energy Office said

while $26,000 in different incentives are available, motorists wouldn’t be eligible for all $26,000 at the same time.

“For example, the Xcel Energy EV rebates are not stackable with the state EV tax credits, so Coloradans who qualify for the Xcel rebate would need to choose between using the Xcel rebate or using the state tax credits,” Ari Rosenblum, public information officer for the Colorado Energy Office, told The Center Square in an email. “Additionally, the federal tax credit has vehicle requirements that exclude many of the EV models currently on the market. Until more vehicle manufacturers come into compliance with these requirements, Coloradans may not be able to use the l CONTINUED ON PAGE 12

REGIONAL NEWS

Houston Area Man Sentenced for Embezzling Millions from Employer The SEMA-supported legislation was introduced by U.S. Rep. John Joyce, R-PA, and passed with bipartisan support—222 to 190, with eight Democrats joining their Republican colleagues.

U.S. Sen. Markwayne Mullin, R-OK, co-chair of the Congressional Automotive Performance and Motorsports Caucus, introduced a Senate companion bill. The House and Senate versions of the Preserving Choice in Vehicle Purchases Act now await consideration in the Senate

Administration mandate that puts a radical environmental agenda and far-left special interests above their individual freedoms,” said Joyce. “There is nothing more quintessentially American than the freedom of the open road, and I’m grateful to my colleagues for supporting this important legislation protecting the freedom of all Americans to drive the vehicles of their choice.”

House Energy and Commerce l CONTINUED ON PAGE 4

Preston Allen Fredrich, 35, of Missouri City, TX, was ordered to prison in a long-running scheme that cost his employer millions of dollars, the U.S. Attorney’s Office for the Southern District of Texas announced in a news release.

Allen pleaded guilty to wire fraud Aug. 17, 2022. On Sept. 20, 2023, he was sentenced by a federal judge to 21 months in prison, to be immediately followed by one year of supervised release. In imposing the sentence, U.S. District Court Judge

Keith Ellison noted the uniquely intimate nature of the crime.

From at least 2018 through spring 2021, Fredrich stole from a familyowned company located in North Houston that sold and re-fitted large trucks. Fredrich was the lead salesmen.

He orchestrated an embezzlement scheme in which he submitted fake invoices and then collected the payments for himself. He began his scheme by asking clients to send l CONTINUED ON PAGE 16

INSIDE THIS ISSUE 30

40

Columnist Mike Anderson: Doing More Calibrations ‘In-House’ Often

Doesn’t Mean in Your Shop

Columnist Abby Andrews: ‘Going Green’ Can Be a Profitability Opportunity for Collision Repairers

20

Columnist Stacey Phillips: The Rivian Evolution Revolution

24

Columnist John Yoswick: CCC Breaks Down Rise in Total Cost of Repairs, Other Trends

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Contents

COLUMNISTS

REGIONAL NEWS Colorado Trying to Boost EVs Tenfold by 2030 with Thousands in Rebates, Credits ����������������������������������������������������� 1

Tesla Giga Texas Looking to Grow to 60K Workers when Cybertruck Ramps: Report ������������������������������������� 16

Hota Group Expanding Manufacturing Operations to New Mexico ������������������ 4

Texas Has Given 6,751 EV Rebate Credits for $16M ����������������������������������� 6

Houston Area Man Sentenced for Embezzling Millions from Employer �� 1

Valley Collision–Mesa in Arizona Joins 1Collision ���������������������������������������������� 11

Mike Anderson Doing More Calibrations ‘In-House’ Often Doesn’t Mean in Your Shop ���������������������� 30

Cole Strandberg The Collision Vision(aries): 6 Months into Autobody News’ Podcast ������������������������� 42

Abby Andrews ‘Going Green’ Can Be a Profitability Opportunity for Collision Repairers �������� 40

John Yoswick ‘Most Influential Women’ Honorees Discuss Roads to Success Within Collision Repair Industry �������������������������������������������� 36

Stacey Phillips How MS Auto in Hawaii Ensures Customer Satisfaction and Keeps Up With Industry Changes ��������������������������������������� 10

Another Estimating System to Add Flexibility for Calculating Blend Refinish Labor Times ������������������������������������������������� 14

The Rivian Evolution Revolution ������������� 20

CCC Breaks Down Rise in Total Cost of Repairs, Other Trends �������������������������������� 24

Joe Hudson’s Collision Center Acquires 4 Stores in Arkansas ���������� 12

Index of Advertisers NATIONAL NEWS ASE Education Foundation Board Chair Releases Message ��������������������������������� 34

Minivans Don’t Make the Grade When it Comes to Rear-Seat Safety ������������� 26

ASE Fall Testing Registration Open �� 19

New-Vehicle Prices Fell Further in September, Led by Price Cuts at Tesla ����������������������������������������������������������������� 38

ASE Offers ADAS Specialist Certification ������������������������������������������� 16 asTech Creates Instant Repair Recommendations ������������������������������ 22 Auggie Calibrations Meet NHTSA Standards ����������������������������������������������� 27

NHTSA Investigating Failures in Engines in 710K Ford, Lincoln Trucks and SUVs ������������������������������������������������ 19

Autel Releases ADAS Calibration Updates �������������������������������������������������� 43

Owners of 3.3M Kia, Hyundai Vehicles Told to Park Outside Due to Fire Risk ����������������������������������������������������������������� 54

Auto Parts Suppliers Brace for Effects of UAW Strike ���������������������������������������� 48

Political Rivals Biden, Trump Enter into UAW Strike Discussion ����������������������� 52

Automakers Join Other Businesses to Ask for Federal Investment in Clean Aluminum ���������������������������������������������� 23

PPG to Invest $2 Million to Train Workers �������������������������������������������������� 55

Average EV Prices Plummet as Oversupply Concerns Grow ��������������� 53

SCRS Announces Focus of OEM Summit Session II ��������������������������������� 43

AirPro Diagnostics ����������������������������������� 15

Hyundai Wholesale Parts Dealers ����������� 52

Audi Wholesale Parts Dealers ����������������� 43

Industrial Finishes and Systems �������������� 56

Auto Data Labels ��������������������������������������� 5

Kia Motors Wholesale Parts Dealers ������� 47

Axalta Coating Systems �������������������������� 18

Larry H. Miller Ford Mesa ������������������������ 42

BMW Wholesale Parts Dealers ��������������� 52

Mac Haik Ford-Lincoln ����������������������������� 31

Bob Howard Parts Distribution Center ����� 39

Mazda Wholesale Parts Dealers �������������� 50

Bob Utter Kia ������������������������������������������� 40

Mercedes-Benz Wholesale Parts ������������ 55

BodyShopJobs.com �������������������������������� 11

Mitsubishi Wholesale Parts ��������������������� 46

Brent Brown Toyota ��������������������������������� 36

MOPAR Wholesale Parts Dealers ������������ 35

Car-O-Liner ������������������������������������������������ 2

NOROO Paint & Coatings, Ltd ������������������ 17

Certified Automotive Parts Association ��� 30

NorthAmerican Bancard �������������������������� 19

Christopher’s Dodge-Ram ����������������������� 37

North Freeway Hyundai ��������������������������� 50

Classic Chevrolet ������������������������������������� 42

Northside Chevrolet ��������������������������������� 22

Classic Elite Chevrolet Sugar Land ���������� 25

Part of the Club ���������������������������������������� 37

Classifieds ����������������������������������������������� 54

Peak Kia ��������������������������������������������������� 37

Cool Boss A Division of BendPak Inc ������� 23

PPG Industries ����������������������������������������� 13

CAPA Integrates Tracker Into Mobile App ���������������������������������������������������������� 46

SEMA Show Exhibit to Highlight Future Vehicle Propulsion Technology ��������� 50

Courtesy Chevrolet ���������������������������������� 16

Quality Buick-GMC ���������������������������������� 48

CPS Products Inc ��������������������������������������� 4

Santa Fe Kia ��������������������������������������������� 55

CCC Offers AI Solutions to Collision Repair Labor Shortages ���������������������� 18

Traffic Fatalities Continued to Decline in First Half of Year ������������������������������� 32

Dynabrade, Inc ���������������������������������������� 33

SATA Dan-Am Company ��������������������������� 7

CCC, Google Enable Online Appointments ��������������������������������������� 49

Trainer Says ‘Who Pays?’ Survey Data Shows Industry Needs to ‘Wake Up’ on Weld Testing ������������������������������������������ 27

Emich Chevrolet ��������������������������������� 34, 37

Schomp Mazda ���������������������������������������� 38

Equalizer Auto Glass Tools ����������������������� 32

Scoggin-Dickey Parts Center ������������������ 8-9

Fisher Acura �������������������������������������������� 37

Sorbothane, Inc. �������������������������������������� 24

Fisher Honda �������������������������������������������� 37

Stevinson Toyota West ���������������������������� 37

Five Star Subaru �������������������������������������� 26

Subaru Wholesale Parts Dealers ������������� 53

Flatirons Subaru ��������������������������������� 37, 41

Toyota of Laredo �������������������������������������� 27

Ford Wholesale Parts Dealers ����������������� 45

Toyota Wholesale Parts Dealers �������������� 49

Freeman Mazda ��������������������������������������� 44

Transtar Autobody Technologies, Inc ������ 21

GM Wholesale Parts Dealers ������������������� 51

Volkswagen Wholesale Parts Dealers ����� 48

Guniwheel ������������������������������������������������ 12

Volvo Wholesale Parts Dealers ���������������� 55

Honda-Acura Wholesale Parts Dealers 28-29

Yatu Paints, USA ���������������������������������������� 6

CIF Announces Repeat Annual Donors ����������������������������������������������������������������� 53 Federal Rebates on ‘Clean’ Vehicles to Be Given at Purchase in 2024 ����������� 50 First Production Lucid Air Sapphires Roll Off Assembly Line ������������������������ 55 Honda’s First All-Electric SUV Set to Debut Early 2024 ��������������������������������� 49

U.S. Auto Insurer Claim Payouts Soar Due to Increasing Inflation ����������������� 46 U.S. House Passes Bill to Prevent Internal Combustion Engine Bans �������1 Widespread Autonomous Vehicle Adoption at Least a Decade Away ���� 44

Hunter Wins PTEN People’s Choice Awards ���������������������������������������������������� 32

WIN Kicks Off Sponsorship Campaign ����������������������������������������������������������������� 35

Is the Peak Price for Gas in the Rearview Mirror? ����������������������������������� 55

With More Choices, Brand Loyalty Slips among New-Vehicle Owners ���� 35

Horne Kia ������������������������������������������������� 46

autobodynews.com / AUTOBODY NEWS NOVEMBER 2023 3

Hota Group Expanding Manufacturing Operations To New Mexico

By Tom Joyce The Center Square

New Mexico Gov. Michelle Lujan Grisham and Hota Industrial Manufacturing Chairman David Shen announced the Taiwanese company will expand business operations into New Mexico.

Hota signed an agreement for a 30-acre parcel in the Westpark Industrial Park in Santa Teresa, NM. Construction on its new plant will begin in 2024, according to a press release.

The manufacturer will hire 350 employees and invest $99 million in the state. It may also expand operations in New Mexico later this decade. Hota produces automotive gears for North American and European clients, including Tesla.

The governor and the company announced this news in Taipei City, Taiwan, where Lujan Grisham is leading a trade mission to bring manufacturing jobs to New Mexico.

“Hota shares with me a strong belief in the potential of the great state of New Mexico,” Lujan Grisham said. “This announcement sits at the nexus of so many of this

administration’s priorities, including bolstering global trade and securing a cleaner automotive industry.

Hota’s investment in the Borderplex reaffirms what we already know: New Mexico is on the move.”

Hota is expanding into the U.S. because it understands about 70% of its market is in the Americas, and it needs a more resilient supply chain to prevent production slowdowns due to labor and transportation interruptions, the release said.

“Hota has picked Santa Teresa as its next manufacturing site based on various comparison analyses among the states on the U.S.-Mexico border,” Shen said. “Its location makes it a one-day trucking distance to many of our main customers.

Transportation infrastructure is in place to support the logistics of our goods and services. Utility supply is stable and relatively inexpensive.

Labor costs are currently the lowest among its neighboring states.

Another important thing is that New Mexico has no major natural disasters. Most importantly, the fast responsiveness and support from the state officials have enhanced our decision and confidence to go

to New Mexico. We believe that the state government will offer the assistance and incentives needed for us to run our business there.”

New Mexico gave Hota $3 million from the Local Economic Development Act Job-Creation Fund to help cover land, business and infrastructure costs.

Hota will also qualify for benefits from the High Wage Jobs Tax Credit and the Manufacturers Investment Tax Credit, and job-training assistance through the Job Training Incentive Program.

The City of Anthony, NM, will issue Industrial Revenue Bonds to assist with the expansion process.

“On behalf of the Board of Trustees, the City of Anthony is grateful to assist the state of New Mexico and Doña Ana County in helping to locate Hota Manufacturing to the Santa Teresa Borderplex,” Anthony Mayor Diana Murillo said. “This project will create jobs and economic opportunities for New Mexicans that are much needed.”

The project will have an estimated $4.3 billion economic impact over 10 years, the release said.

Hota Group also has facilities in Japan, Taiwan, Thailand and China, plus Michigan and California.

It employs more than 4,000 employees globally.

The Santa Teresa Port of Entry is the first land port between the U.S. and Mexico that lacks a bridge structure from the East.

“Because of this, it serves a critical function for the El Paso and Ciudad Juárez industrial regions as the only port not limited by space or weight,” the release said. “The port also clears many regular commercial vehicles and a larger segment of private commuters.”

STPOE doubled its number of commercial vehicles processed per hour in the last year years. It reached a new record in 2022, processing more than 160,000 trucks.

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U.S. House Passes Bill (E&C) Committee Chairwoman Cathy McMorris Rodgers, R-WA, shepherded the bill through the committee in July. As chair of the E&C Committee, which has jurisdiction over automotive issues and the Clean Air Act, McMorris Rodgers has been a lead advocate for technology-neutral vehicle policies.

“Seventeen other states have similar bans on internal combustion engines that would be triggered if EPA approves California’s request,” said McMorris Rodgers.

“This affects 40% of the United States’ new vehicle market—and companies don’t customize cars for every state.”

To date, 14 out of 17 CARB states have begun adopting regulations to follow the California zero-emissions vehicles (ZEV) mandate. The existing ZEV regulations are so onerous that Stellantis has stopped shipping gas-powered Jeeps to dealers in those states and customers wanting gas-powered vehicles must place a special order.

For more information on these efforts, visit sema.org/advocacy/icebans or contact tiffanyc@sema.org.

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Texas Has Given 6,751 EV Rebate Credits For $16M

By Scott McClallen The Center Square

Texas’ electric vehicle rebate program has gave 6,751 rebates for $16.3 million from 2014 through August 2022.

The Texas Emissions Reduction Program offers a $2,500 rebate for buying or leasing an electric or plugin hybrid vehicle on top of a $7,500 federal subsidy.

Victoria Cann, communication specialist with the Texas Commission on Environmental Quality, told The Center Square in an email the rebates apply for select new light-duty motor vehicles powered by compressed natural gas, liquified petroleum gas, hydrogen fuel cell, or plug-in or plug-in hybrid to encourage the greater use of these vehicles and fuels.

In fiscal year 2019, fewer than 30,000 electric vehicles were registered statewide. As of 2023, Texas has 222,150 zero emission vehicles registered.

The Environmental Quality commission can provide 1,000 rebate grants for qualifying natural

gas vehicles and 2,000 rebates for qualifying hydrogen fuel cell or other electric drive vehicles, as limited by statute, each fiscal year.

The Electric Reliability Council of Texas estimates 1 million electric vehicles will be rolling on Texas roads by 2028. The Texas Department of Motor Vehicles estimates Texas will reach 1 million by 2031.

The Light-Duty Motor Vehicle Purchase or Lease Incentive Program project is funded with $8.1 million in fiscal year 2022-23, or 5% of the Environmental Quality commission budget, the statutory limit. Cann said the emissions reduction program, commonly called TERP, expects to begin accepting applications in October, subject to change.

The 2023 electric vehicle model year, with 63,645 registered, represents 28% of all EV registrations statewide, according to state data.

The Texas government tracks vehicle rebates awarded from 2014 through Aug. 31, 2022.

The state has nearly 30 million residents, with around 21 million driving vehicles fueled by gasoline;

771,000 are fueled by diesel, 420,800 vehicles use biodiesel and 2.3 million use E85.

Most electric vehicle registration is concentrated within cities, with the Dallas-Fort Worth area composing 37.1%, Houston 24.2%, and Austin 19.7%. For context, EVs account for 2.1% of all registered vehicles in Austin.

The state doesn’t collect rebate recipient demographics.

The Environmental Quality commission implemented the Texas Clean Fleet Program in 2009 and the Texas Natural Gas Vehicle Grant Program in 2012, which have funded $123 million to replace or upgrade 1,875 existing vehicles with new vehicles or engines powered by natural gas or an alternative fuel.

Within the rebate program, about 9,300 rebate vehicles were brands including Chevrolet, Nissan, Ford and Hyundai. The numbers include:

The program subsidized 1,191 luxury vehicles, including: • 686 BMWs • 329 Audis • 90 Porsches, including 60 Taycans • 33 Mercedes-Benz • 53 Jaguar I-Pace Nationwide, Texas is second in the race to register electric vehicles with 222,150, trailing California, which has more than 1.5 million zero-emission vehicles as of 2022, according to the California Energy Commission.

• 1,507 Chevrolets • 1,500 Nissan Leafs • 550 Fords • 372 Hyundais • 309 Toyotas • 154 Volvos

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Stacey Phillips — Shop Strategies

How MS Auto in Hawaii Ensures Customer Satisfaction and Keeps Up With Industry Changes In Hilo, HI, Manuel Soares III and his family have built a reputation for excellent customer service at their collision repair facility, MS Auto Inc. Established more than 53 years ago, the family business repairs all makes and models and works as a team to bring cars back to their preaccident condition.

In 1970, Manuel III’s father, Manuel Jr., began doing repairs out of his home garage. His son, known as Jr., grew up helping his dad, handing him wrenches, sanding filler and cleaning up trash.

MS Auto is an I-CAR Gold Class shop and is currently certified by Chrysler, FCA, Hyundai, Kia, INFINITI and Nissan.

Over the years, they moved five times and are now located on Kukila Street in Hilo. Their 26 employees include Jr.’s wife, Tracey Soares, and their daughter, Macey—both of whom are production managers—as well as their son, Manual IV, who works in the body and paint department. Macey and Manual IV are both transitioning to take over the company.

Autobody News talked to Jr. about the challenges operating on an island and how they stay up to date with the latest vehicle technology.

Q:

How do you ensure customer satisfaction at

MS Auto?

A:

We are passionate about what we do and work hard to ensure customer satisfaction.

Presentation is everything. You need to be optimistic when dealing with clients, and they need to have that warm and fuzzy feeling and know that you’re willing to engage and move things along.

I try to pre-schedule clients and provide repair expectations and cycle times. We want to be transparent.

Sometimes, staff can forget, but that’s human nature. We review the status of the vehicles with the team each day.

When delivering cars, we let customers know they will be asked

to provide a review. We have about 1,200 online reviews through Carwise.com. Depending on what they say, the next day I might call to follow up or thank them. By doing that, they become customers for life and tell friends and family about the great service they received.

Q: A:

What are some challenges operating on an island?

We want to deliver cars on time but not compromise quality, especially with the adversities we deal with on an island. Ensuring we have supplies can be challenging because we ship them in from Honolulu. Sometimes, we can’t get products so we resource what we can or surplus products.

Before the pandemic, we inventoried parts even though it was costly. I’m glad I had that foresight because it carried us through. I prioritize maintaining good relationships with my vendors and they put stock away for me.

I have high expectations and work with like-minded people. We are one of the biggest buyers on the island, so when we need something faster, I speak up and they find someone who matches our performance level.

Q:

How do you stay up to date with new vehicle technology?

A:

I’ve worked on cars almost every day since I was about 12 years old and have been involved in every aspect of the company. I try to stay ahead of the curve and keep up with the latest information and training by talking to other shop owners and OEMs. I reach out to dealerships to learn the latest information. With the technology being introduced on cars, I’m finding that today’s customers spend more time researching them before making a purchase and often know more than the salesman. I learn as much as possible so I’m prepared when a car comes into the shop.

Q:

What is the importance of accessing OEM repair procedures and obtaining OEM certifications?

A:

Accessing OEM repair data is priceless. We want to ensure that cars are repaired to their pre-accident condition.

10 NOVEMBER 2023 AUTOBODY NEWS / autobodynews.com

Although they can never be exactly like they were pre-accident, we want to give people the sound mind they are getting a repair done the way the OEM requires it. We also want to protect the auto manufacturers’ brand and ensure customers are safe for the life of the vehicle. To do this, we have put an emphasis on obtaining OEM certifications and are certified by Chrysler, FCA, Hyundai, KIA, INFINITI and Nissan.

Pictured, left to right, are Scot Takemoto, owner of Island Concepts, with Jr., Tracey, Macey and Manuel IV.

Q:

How are you handling calibrations and the new procedures needed?

A:

We do everything inhouse. First, we pre-scan the vehicle and later, do an inprogress scan. I do road tests on the vehicle’s functionalities; then, we’ll deliver the car to the dealership to do the calibration. When it comes back, we conduct a post-scan and operations test to make sure it has a final clean bill of health. We also provide documentation of what was done during the repair.

When we take vehicles to the dealership, we stay on top of what is being done. Open communication is very important to let them know what functionalities need to be checked and what we expect. We also ask them to call us if they find certain procedures that need to be done.

Q:

With an increase in EVs and vehicles with ADAS features, what is the importance of training?

A:

It’s imperative. Customers want accuracy when we fix their vehicles, so we need to keep up with the changes taking place.

I started I-CAR training in 1985 and have I-CAR Platinum recognition.

The shop became I-CAR Gold Class in 2016. We have been doing a lot of training with I-CAR and I’ve found that it is a great resource.

We have good relationships with dealers and vendors and train with them. We also train in-house, as well as online every month and are ASE-certified. Training in Hawaii is challenging but we make it happen.

Q: A:

How do you find and hire technicians?

I never solicit other people’s staff. The only way to be successful is to build your own team.

We’re finding new employees who aren’t part of the industry and training them to be technicians. We have a lot of young staff. If they are intrigued, we start investing in their training.

What is the importance of building a culture?

Q: A:

Building a culture is critical.

Once we think alike, we can address and see things with the same eye and adapt.

Today’s kids are often defined by what they do in recreation rather than what they do as a vocation. We teach the younger generation that this isn’t a job; it’s a career. We teach them to be diligent and responsible and invest in themselves. We want them to be proud of what they do and feel they work in a respectable job that puts families in safe vehicles.

The new generation is used to instant gratification. We want them to understand that they can’t spend 15 minutes on YouTube or Google to learn this job. They need to put time into it and have patience.

Q:

What tips can you share about being successful in running a family business?

A:

It takes a different breed of people and a lot of families fail. Growing up, there were some days I wanted to throw in the towel.

I was pushing training and building more technicians because I knew that would be needed in the future and saw the potential for growth.

At the same time, my dad was happy with how things were and didn’t feel change was needed. I learned from those experiences, so I’m open with my kids and share what my dad didn’t with me. That might mean putting the difficulties or insecurities on the table so we can work well together.

I always say I’m never the best because I push harder every day. That way, I never stop trying.

Valley Collision–Mesa in Arizona Joins 1Collision 1Collision is excited to announce the addition of Valley Collision–Mesa in Arizona to the nationwide network.

Established in January, the family owned and operated business was founded by Dennis Kennealy, who has 30 years of industry experience, and Ryan Cochran, who has a background in commercial real estate development. Kennealy said Cochran’s background will be vital as Valley Collision looks to expand its footprint in the metro Phoenix area and beyond.

“Dennis is an industry veteran and has a wealth of knowledge he can bring to our network,” said John Hollingsworth, 1Collision’s director of new location development. “We are proud to partner with him and his team so we can make a positive impact in the industry together.”

“We’re definitely excited to be included as a 1Collision facility and company,” said Kennealy.

“As Valley Collision settles in and expands, we feel that the value of 1Collision is repeatable as we ready new locations as a value-added proposition.”

Kennealy has been a keen observer of 1Collision over the years,

watching and appreciating the steady approach. He and Cochran decided to join the network after discussing the 1Collision business model with some of Kennealy’s industry relationships, both locally in Metro Phoenix as well as nationally.

This included Hollingsworth.

“It was clear that 1Collision had the desire to assist Valley Collision on our path of growth and expansion,” noted Kennealy. “It also didn’t go unnoticed that 1Collision was the only provider that reached out to us, answered all of our questions and gave us the time and consideration to work through this decision.”

The business owners said there is

tremendous value in the 1Collision business model.

“With plenty of solid choices for independent owner/operators, we truly feel that 1Collision is the best partner for us as we grow,” said Kennealy. “There’s a great balance of assistance and support as needed versus monthly expectations and the time consumptions of some of the other opportunities in the industry.”

Valley Collision prides itself on providing the finest collision repair services and ensuring quality craftsmanship and repair on every job.

Earlier this year, Kennealy and Cochran acquired the assets of an existing business with the purpose of focusing on the well-being of their employees and workforce first.

“We have a strong core belief and it has proven itself to be correct— especially in the challenging times we’re in—that our first and most important asset is the team,” said Kennealy. “We have been extremely

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fortunate to be able to staff our location with extremely professional technicians, painters and support personnel.”

By building from within, he said they have developed an “everyone on the same page” philosophy, which allows the company to focus on business and the complexity of where volume comes from.

“Our commitment to customers goes beyond providing top-quality repair services,” said Cochran.

“We treat customers like family, ensuring they feel comfortable and supported from our facilities to our processes and repair standards.

Kennealy said it has been truly humbling returning to ownership and he appreciates the efforts of those who have assisted him and his team at Valley Collision–Mesa.

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Join www.BodyShopJobs.com today and streamline your hiring process in the automotive collision industry. autobodynews.com / AUTOBODY NEWS NOVEMBER 2023 11

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Boost EVs Tenfold federal tax credit for a discount on the vehicle they would like to purchase.

“The federal tax credit is also non-refundable, which means that lower-income individuals may not owe enough in federal taxes to take advantage of the full $7,500 federal tax credit,” Rosenblum added.

The Innovative Motor Vehicle Credit was increased to $5,000 on July 1 for the purchase or lease of a qualifying electric or plug-in hybrid electric vehicle. It doesn’t apply to electric, plug-in or hybrid trucks.

From 2016 to 2020 the number of credits given out has increased by 66%, going from 3,058 to 5,086, according to the state. The state gave out $20.1 million in Innovative Motor Vehicle Credits in 2020.

The state started the Vehicle Exchange Colorado program at the end of August. It helps people under a specified income replace their high-emitting vehicles with EVs and partially cover the upfront cost. A three-person household must have a household income of $85,200 or below to be eligible for a rebate.

EVs eligible for the Vehicle Exchange Colorado program must have a sticker price of $50,000 or less.

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Joe Hudson’s Collision Center Acquires 4 Stores in Arkansas Joe Hudson’s Collision Center announced in a news release four new closings in September, with the acquisition of Steve’s Auto Body in Arkansas.

With locations in Jonesboro, Marion, Paragould and Searcy, Steve’s Auto Body is one of the largest independently owned collision repair groups in Northeast Arkansas. The team at Steve’s Auto Body prides itself on building relationships with each customer and taking exceptional care of their collision repair needs.

“We chose Joe Hudson’s Collision Center because they operated similarly to the way that we operated,” said Steve Hall Jr., former co-owner of Steve’s Auto Body, along with his father, Steve Hall Sr. “Their commitment to the area, equipment, technology and operational support sets us up for success. Joe Hudson’s brings all the tools we need to get things done.”

“We are thrilled to welcome Steve’s teammates to the Joe

Hudson’s family. We have been watching them grow for years, and we’re very excited to be able to join forces with them to continue that growth. We recognize their high service standards and strong footprint and look forward to developing a successful Arkansas market with these new locations,” said Brant Wilson, CEO of Joe Hudson’s Collision Center.

These are the first Joe Hudson’s Collision Center locations in Arkansas.

The acquisition brings the total number of JHCC locations to 194 across 15 states: Alabama, Arkansas, Florida, Georgia, Indiana, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas and Virginia.

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Another Estimating System To Add Flexibility For Calculating Blend Refinish Labor Times

By John Yoswick

believes demonstrated blending takes more time than a full panel refinish, rather than the 50% less Audatex became the second of the time allocated in the three major Big 3 estimating system providers to estimating systems. say it will offer users more flexibility CCC Intelligent Solutions this past in establishing or adjusting refinish spring announced it too would give blend times within the system, users an option to input their own according to an announcement refinish blend time or set their own made at the Collision Industry default blend value beginning this fall.

Conference (CIC) held in Indianapolis “That’s an adjustment based on this summer. the conversations, the data and Like the other two systems, the effort,” Aaron Schulenburg, Audatex currently defaults to a labor executive director of SCRS, said of time for the blend panel equal to the association’s work on this issue.

50% of the full refinish time—though “This is pretty significant. This is the Audatex system does allow a saying there are different variables user to adjust the automated blend that exist, and a static [blend] formula doesn’t necessarily reflect them all. That’s a positive change.

Schulenburg and other SCRS leaders at CIC expressed displeasure with what they view as Mitchell International’s failure to address the blend formula issue.

“We’re surprised and shocked at the public vitriol that came out because we CIC Chairman Frank Terlep calculated processing ve been in discussions with supplements could be costing the industry more than [SCRS] since they published $3 billion a year the study,” Mitchell’s Jack Rozint said following the hours on estimates. In a change to be meeting. “We continue to research implemented in the coming months, possible changes or modifications the system will still default to 50%, or enhancements to our software and the user will continue to be able in this area. We expect to be able to to adjust it on a per-estimate basis, announce something in the SEMA but the Audatex system also will timeframe, at the next CIC meeting.” allow a user to set a blend formula In any case, even some advocates at the profile level to any percentage for the change admit it could have between 50% and 150% of full limited value for collision repairers. refinish time for the blend panel.

If the estimate is written at whatever percentage the user has specified at the profile level---whether 50% or as much as 150%---no asterisk will appear next to the labor time; an asterisk will appear if the percentage has been manually adjusted from the percentage set in the profile. A new note also SCRS’ Aaron Schulenburg said the association’s work will appear at the bottom on the blend formula issue is resulting in changes to the of all Audatex estimates estimating systems showing the blend refinish labor percentage used on that estimate.

Insurers, they say, are likely to The change is expected to require their direct repair shops to appear in the Autatex Database maintain the 50% default in their Reference Manual this fall, and then estimating system profiles for DRP be implemented within the Audatex claims. Even in non-DRP claims, system by the end of the year. insurers can—or can try to—push It comes following a Society of a shop use the carrier’s approved Collision Repair Specialists (SCRS) profile when submitting estimates or study last year the association supplements.

Autobody News

14 NOVEMBER 2023 AUTOBODY NEWS / autobodynews.com

Schulenburg acknowledged at CIC one other potential shop concern about the change.

“There are certainly repairers out there who will say, ‘But now this makes more work for me,’” Schulenburg said. “’Now I have more things that I need to argue about or justify. I have one more thing that isn t established. It’s now on the table for me.’”

But Schulenburg argued shops should have the knowledge and the study’s published findings to support a decision to bill beyond the 50% default when appropriate.

“The reality is: We’re the professionals,” Schulenburg said.

“You know what you’re performing in your facility. You know what products and processes you are using. You have the justification that you need.

This has put the opportunity back on the professional to establish what they’re performing.”

A representative of a regional multi-shop operation who attended the CIC meeting but asked not to be identified said he is among those viewing the blend formula change with some skepticism. But he also acknowledged some successes in recent years in negotiating changes to direct repair program agreements with insurers concerned about losing his company’s significant repair capacity in his region given the industry’s backlog of work.

I could see asking for a higher blend formula percentage if an insurer was resistant to other changes we were asking for, he said.

Chairman Calls for Fix to Supplements Frank Terlep, chairman of the CIC, kicked off the quarterly meeting by walking through what he sees the increased time for shops to get supplements approved is costing multiple segments of the industry.

“We do about 14 million claims a year in this industry, and according to CCC statistics, 60% of those have a supplement,” Terlep said. “In my opinion, that’s not acceptable. But let s talk about those numbers for a second in a little bit more detail.

“Even if that 60% have even just one supplement, he said, that’s 8.4 million supplements a year. If shops wait an average of 4.7 days for those supplement reviews—the average time shops wait for remote supplement review, according to a CRASH Network survey in June— that equates to 39 million man-days wasted each year in this industry, Terlep said. “We’re accepting that. It’s crazy.”

A CIC committee in the 1990s concluded processing a supplement cost both the shop and the insurer about $150. Adjusting that for inflation to $200 each, Terlep said— acknowledging even that estimate is probably low and does not include rental vehicle costs—means it s costing this industry more than $3.3 billion every frickin year to improperly write initial estimates or repair plans.

“That’s an adjustment based on the conversations, the data and the effort.”

— AARON SCHULENBURG EXECUTIVE DIRECTOR, SCRS

We ve got to come together and figure this out, Terlep said. The consumer is unhappy. Shops are wasting their time. Insurers personnel are wasting their time. All it takes is for us to get together and figure out how do we fix a broken process that s costing this industry more than $3 billion a year? I challenge this body, the insurers, the shops and everybody in this room to find a way to get together and fix this problem. Because it’s only getting worse, not better.

Scan Tool Company Updates User Agreement At industry meetings this past spring, several speakers noted under the terms of the licensing agreement of at least one aftermarket scan tool used in the industry, the user was agreeing to allow the data collected through the tool to be transferred to the company in China, subject to China laws, including those governing the privacy and security of your information.

The Autel end-user licensing agreement indicated a shop user also agreed to notify and acquire consent for such collection and transfer of vehicle data from each customer or prospective customer, and to the use of the information by the scan tool company and third parties.

At CIC, however, a representative of Autel said that licensing agreement has been updated.

Everyone who logs into their tool for the first time will be opted in to acknowledge it, said Paul Marshall, senior product and operations manager for Autel. If you have any questions or concerns about it, you can contact me directly. This is something we did internally, with legal counsel in New York and back at our headquarters in Shenzhen. I think it s a huge improvement. What was in there was old and was dated. We d just kind of lost track of it.

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AirPro Diagnostics Offers the Most Cost-Effective, Tested and Proven Tools, Guaranteed to Reduce Cycle Time!

Brand Specialists Make it Possible to Calibrate Most Makes and Models In-House As the popularity of ADAS-equipped vehicles continues to rise in the U.S., the proper repair and calibration of these vehicles presents cycle time challenges for independent collision repair facilities as well as all automotive repair sectors. Contrary to popular belief, calibrations can be performed in your shop even where space constraints are present with AirPro’s ADAS tools including the revolutionary Auggie device which meets National Highway Traffic Safety Administration (NHTSA) standards to ensure a complete and safe repair.

Quality

Simply put, ADAS-equipped automobiles need to be repaired efficiently and correctly by qualified personnel. An AirPro Diagnostics Brand Specialist who is focused on key brands with access to multiple tools ensures a properly repaired, well-documented diagnostic service with a clear blueprint of the calibrations needed from manufacturer service information to assist shops.

Expertise

It is not reasonable to expect body shops to be experts in 35 automakers’ electronics and safety systems.

Service to these systems should only be carried out

by Brand Specialists from remote providers like AirPro Diagnostics, who are trained and experienced in ADAS calibrations and advanced diagnostics. We find the problems and fix them right the first time.

Cycle Time Rebound?

In the second quarter of 2023, Enterprise reported the average length of rental (LOR), or repair cycle time, in the U.S. was 17.4 days. For reference, pre-pandemic LOR in Q1 2020 was 13.2 days. This represents over four (4.2) days difference. While supply constraints during the pandemic contributed to the increase in cycle time, they have lessened for the most part and availability is no longer the single contributor.

The rapid acceleration of vehicle technology and unique vehicle network design by manufacturer is a major contributing factor in the other 4.2 days of cycle time. This results in increased rental car costs and declines in customer satisfaction. Further compounding this issue is the lack of qualified staffing across all sectors including body shops, dealerships and mechanical shops. The thought that any one technician in a shop with a simple scan tool can service 35 or so brands is unreasonable.

AirPro’s on-demand Brand Specialists can efficiently service 97% of shop’s needs across all brands (except Tesla). Having ondemand Brand Specialists means when you submit for GM vehicle services at AirPro, for example, a GM Brand Specialist will service the vehicle, not a Toyota technician or vice versa. This is not to say that Toyotas are not complicated, but to point out there is complexity by manufacturer and only those experienced in servicing those vehicles should diagnose, program and calibrate them. After all, you wouldn’t send a GM vehicle to a Toyota dealer for service, right?

AirPro Diagnostics’ services can reduce cycle time / LOR by at least two full days, guaranteed. In many cases even more!

Service When You Need It

AirPro Diagnostics has a 10-Minute Response Pledge from the time a facility requests service to the time an AirPro Brand Specialist is connected in the vehicle and performing live-data tests. As of September 2023, AirPro’s daily average response time in close to 500,000 service requests is one minute and 23 seconds (1:23) with a 97.3% service success rate.

Cost Effectiveness

Remote diagnostics from AirPro Diagnostics strikes an attractive balance between cost and efficiency. AirPro solutions are the most cost-effective in the marketplace and pricing plans including $0 down are available.

Per vehicle service fees are a small fraction of mobile or dealer fees.

Liability Protection

A collision repair facility always assumes all the liability for a repair, whether it was sublet to a dealer or a mobile vendor or if the services were performed in-house. AirPro Diagnostics is the only ADAS recalibration system on the market today that has an indemnification clause in its service contract with its customers.

AirPro Diagnostics is the trusted global leader in remote scanning, diagnostics, ADAS calibration and programming services.

AirPro’s Brand Specialist-driven solutions are guaranteed to reduce cycle time. AirPro offers repair facilities affordable, streamlined alternatives to tackling the logistical, financial and training demands of providing their own in-house ADAS technicians to tackle the unique requirements of multiple vehicle makes and models. The other option is subletting those services to dealerships or other vendors, where quality, cycle time, cost and profit is out of their hands.

Remember, only AirPro Diagnostics can provide you with the Auggie device which meets National Highway Traffic Safety Administration (NHTSA) Standards to ensure a complete and safe repair.

To reduce cycle time contact AirPro Diagnostics today 904-717-1711 or visit: www.airprodiagnostics.com .

autobodynews.com / AUTOBODY NEWS NOVEMBER 2023 15

ASE Offers ADAS Specialist Certification

l CONTINUED FROM COVER

Embezzling Millions invoices directly to him, as opposed to the company. He then sent these invoices to the company with inflated expenses or unwanted upgrades, pocketing the difference.

Fredrich also admitted that as the scheme progressed, he eventually set up a bank account with another individual who ran an auto body shop that frequently did business with the victim company. Fredrich then submitted fake invoices from this company and hid them by bundling them with other legitimate invoices.

Fredrich was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility.

The FBI conducted the investigation. Assistant U.S. Attorney Thomas Carter prosecuted the case.

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ASE’s ADAS Specialist Certification test (L4) recognizes proficient service professionals and helps shops optimize repair opportunities on ADAS-equipped vehicles by employing L4 certified technicians.

ASE created the test to identify technicians who possess knowledge of the skills required to diagnose, service and calibrate ADAS. The L4 test covers content focused on the diagnosis, service and calibration of radar, camera, ultrasonic and other advanced driver assistance systems.

Before taking the ASE ADAS Specialist test (L4), automotive service professionals must have passed either the Automobile Electrical/Electronic Systems (A6) or Collision Mechanical and Electrical Components (B5) test. An L4 study guide is available for individuals to help with test preparation.

For more information and to register, visit www.ASE.com/ test-series.

Tesla Giga Texas Looking To Grow To 60K Workers When Cybertruck Ramps: Report

By Simon Alvarez Teslarati

Jason Shawhan, Tesla’s director of manufacturing at Giga Texas, recently gave a rare talk about the facility’s operations and the company’s future plans at the State of Manufacturing Conference & Expo, held by the Austin Regional Manufacturers Association.

Shawhan confirmed a report from the Austin Business Journal that Giga Texas is now the second-largest private employer in the region, currently employing more than 20,000 workers—a notable increase from the 12,277 employees Tesla confirmed at the end of 2022. The number puts it just behind grocery chain H-E-B LP, which employs 22,955 people.

But Giga Texas is not done growing, Shawhan said. Once the Cybertruck’s production is ramped, Tesla expects to employ a whopping 60,000 people at Gigafactory Texas.

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Similar to Tesla’s other factories, Shawhan said, Giga Texas is currently being upgraded so it can increase its Model Y output. Gigafactory Texas is also expected to start the production of the highly-anticipated Cybertruck, expected to start deliveries in the coming months.

Gigafactory Texas is installing a melt center so it can reuse casting scraps, as well as old wheels.

These components are expected to be recycled and used as the front underbody of a vehicle.

Tesla is also reportedly studying how to reuse minerals from battery packs.

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CCC Offers AI Solutions To Collision Repair Labor Shortages CCC Intelligent Solutions Inc. on Oct. 11 announced the introduction of Repair Cost Predictor and Mobile Jumpstart, two applications of its AI offering relief to a community hit particularly hard by national labor shortages.

The new AI-powered solutions integrate into the repair process of CCC ONE® users, automating initial damage assessments and jumpstarting the estimating process. This helps experienced estimators—a shop’s valuable, yet scarce resource—remain focused on the most important tasks.

Repair Cost Predictor uses AI to automate an initial damage assessment, instantly generating a repair cost prediction of damage for consumers, while Mobile Jumpstart uses AI to pre-populate an initial estimate from a user’s mobile phone. Both solutions save an estimator’s precious time by streamlining labor-intensive tasks, as well as delivering intelligent solutions that help create the best possible outcome for everyone involved in the repair process.

“Our estimators are putting in long hours, struggling to keep up

with the daily demands placed on our shop,” said Michael Whittemore, owner of Flagstaff Collision Center in Flagstaff, AZ. “CCC’s new AI solutions have already made a real difference. Our estimators now have breathing room to focus on what truly matters—delivering exceptional service to our customers. Our customers that have used Repair Cost Predictor love how quickly they can get an idea of how much repairs may cost, empowering them to make informed decisions about what to do next.”

Repair Cost Predictor, a feature of CCC Engage, applies AI to digital photos of vehicle damage submitted by consumers, generating a predicted range for the cost of repair in seconds. The tool helps inform consumers about the potential extent of damage to their vehicles so they can determine next steps, including if they want to file a claim. It also allows them to schedule an appointment for a detailed estimate with their selected repair facility.

“Our estimators have wanted the ability to start writing estimates

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from their phone while at the car and Mobile Jumpstart lets them do just that,” Whittemore continued.

“AI gets the estimate started and then we can document additional damage right at the car with the customer using CCC ONE Mobile.”

Mobile Jumpstart, a feature of CCC ONE Estimating IQ, enables technicians to initiate the estimating process right at the vehicle using their smartphones. Advanced AI analyzes vehicle damage photos and pre-populates estimate lines using AI developed with millions of historical data points contained within CCC’s system. It also provides recommendations to repair, replace, or remove and install parts. Mobile Jumpstart empowers repairers to initiate estimates on the spot, sync work seamlessly and harness AI technology for more accurate estimates.

“We’re bringing Repair Cost Predictor and Mobile Jumpstart forward at a time when repairers are being challenged by labor shortages, supply chain disruptions and growing vehicle complexity,” said Mark Fincher, vice president, product management, automotive

services at CCC Intelligent Solutions.

“These tools will help repairers to meet the evolving demands of the industry, all while delivering exceptional service to consumers.”

Both Repair Cost Predictor and Mobile Jumpstart are available to shops via CCC ONE, CCC’s cloudbased platform that improves every stage and level of the collision repair cycle, including the consumer experience.

Added Fincher: “Repair Cost Predictor streamlines the consumer experience and creates opportunities for new business, all while allowing repair shop staff to focus on core tasks. Mobile Jumpstart enables technicians to initiate estimates on the spot, leveraging AI for more precise estimates and enhancing overall efficiency, benefiting both consumers and repairers.”

CCC introduced its first AI solution for vehicle damage assessment in 2013 and has since developed more than 300 AI models, many of which are applied and widely adopted across a range of solutions.

Learn more at cccis.com/ai.

ASE Fall Testing Registration Open ASE’s fall registration period for testing and recertification is now open. Those registering by the Dec. 31 deadline will have 90 days to schedule an appointment to take their selected ASE tests.

ASE offers three test-taking options. In-person testing is available for all tests and is held throughout the year on days, nights and weekends at more than 450 secured, proctored Prometric test centers. The ASE renewal app for recertification is available to those with unexpired automobile certifications (A1A9). ASE also offers ProProctor remote testing as an online recertification solution for all ASE recertifications tests, excluding L1 and L2 tests.

To register, visit ASE.com by Dec. 31, click on register and sign in. Once logged in, users can click on “orders” and then “store.”

For assistance from ASE customer service, call 800-3906789.

NHTSA Investigating Failures in Engines in 710K Ford, Lincoln Trucks and SUVs The National Highway Transportation SafetyAdministration (NHTSA) announced it has opened an engineering analysis of 2.7L and 3.0L EcoBoost engines produced by Ford for several model year 2021 and 2022 trucks and SUVs.

The engines are present in about 710,000 Ford Bronco, Edge, Explorer and F-150 and Lincoln Aviator and Nautilus vehicles.

NHTSA said owners have reported a sudden loss of power due to catastrophic engine failure related to an alleged faulty valve.

The agency first started looking into the engines in March 2022, when it received a

request to investigate a possible defect from the owners of three 2021 Broncos with the 2.7L EcoBoost engine. A preliminary evaluation was opened in July 2022, at which time NHTSA asked Ford for materials related to the 2021 Bronco, as well as any other vehicles equipped with the 2.7L EcoBoost engine.

Ford provided evidence of 328 customer complaints, 487 warranty claims and 809 engine exchanges—but zero crashes or injuries—as well as evidence that the alleged defect is present across the Nano engine family, which includes both the 2.7L and 3.0L EcoBoost engine variants.

On Sept. 23, NHTSA opened the engineering analysis, which will determine if a recall is warranted.

NHTSA said its investigation so far has identified multiple

contributing factors which can lead to the fracturing of the intake valves in the engines.

Ford acknowledged a fractured intake valve can result in catastrophic engine failure and a loss of power, and noted that following a valve fracture, a vehicle typically requires a full engine replacement.

Ford said the defective valves were manufactured out of a specific alloy known as Silchrome Lite, which can become excessively hard and brittle if an overtemperature condition occurs during machining. A design modification was implemented in October 2021, which changed the intake valve material to a different alloy known as Silchrome 1, that is less susceptible to over-temperature during machine grinding.

Ford said the defective intake valves commonly fail early in a vehicle’s life and suggested the majority of failures have already occurred.

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The Rivian Evolution Revolution

By Stacey Phillips Autobody News

Whether they are out on an adventure or part of an electrified fleet, Rivian vehicles are all designed with a common goal—to help preserve the world for future generations.

Frank Phillips, Rivian’s former senior manager of the Certified Collision Network North America, shared information about the manufacturer’s adventure vehicles at the September CIECA CONNEX Conference in Bloomington, IL. Attendees also had the opportunity to tour the Rivian plant nearby in Normal, IL.

the things we have.”

Prior to Rivian’s ownership, the plant was operated by Mitsubishi Motors North America (MMNA).

Phillips said it was an industry-leading facility in the U.S. with more than 400 advanced robots. The plant closed in late 2015.

“They were going to repurpose the property and it was an opportunity for us to refurbish the facility,” said Phillips. “That’s part of our culture and what we stand for. Our intent is to make sure that we keep the world adventurous forever and we become sustainable for our kids to enjoy that adventure as well.”

Since purchasing the property for $16 million in 2017, Rivian has invested about $4.5 billion into refurbishing the plant.

“It’s probably one of the brightest, cleanest looking facilities you will walk into,” said Phillips. “A tremendous amount of white paint has gone into getting where we are today.”

The Rivian plant is home to some of the largest robots in the manufacturing business to accommodate EV construction.

During his presentation, “The Rivian Evolution Revolution,” Phillips discussed what the OEM is doing differently to impact the collision industry, both as an electric vehicle (EV) manufacturer and a certified collision program.

Rivian was founded in 2009

by Robert “RJ” Scaringe, the company’s CEO. Scaringe named the company Rivian after the Indian River in Florida, where he grew up. Phillips said Scaringe, a graduate of MIT, was known by many as an ambitious young man who always wanted to own a car company and revolutionize the world with the vehicles he sold.

Phillips recalls walking into the Rivian factory for the first time and seeing Scaringe on the catwalk. After introducing himself to Phillips and the other 10 people he was with, Scaringe recalled who they were based on information from their resumes.

“At that time, we were about 4,000 employees and he was able to recall who we were,” said Phillips. “That’s the brain power he has.”

Since then, Rivian has grown to include 14,000 employees, which include approximately 7,000 who work at the assembly plant.

“When you think of when the company started and where it is today, it really is an evolution,” he said. “I think Rivian has taken on a revolution at the speed in which we’ve done some of

Following the CIECA CONNEX Conference, attendees had an opportunity to tour Rivian’s plant in Normal, IL.

The approximately 4 millionsquare-foot plant builds all Rivian models. Three vehicles, constructed of steel and aluminum, were launched in 2021: the R1T electric pickup truck, the R1S, a sevenpassenger SUV, and the Amazon electric delivery vehicle (EDV). Earlier this year, a smaller version of the EDV was launched. The company is producing a fifth product, a service van, an iteration of the EDV designed to travel to Rivian owners’ locations to take care of their service needs.

Phillips said the plant is home to some of the largest robots in the manufacturing business to accommodate EV construction.

The massive robots build pieces for Rivian’s EDV, which is 9.5 feet tall.

The refinishing section was designed to be a cutting-edge facility. “There isn’t another one like it in automobile manufacturing,” said Phillips.

With a focus on sustainability, Phillips explained each vehicle is painted off an individual packet so there isn’t a wash out of lines, compared to a traditional manufacturing facility that pumps

20 NOVEMBER 2023 AUTOBODY NEWS / autobodynews.com

in paint. As a result, colors can be changed quickly as vehicles come through the paint shop.

Rivian’s assembly line is similar.

There are two lines, one for passenger vehicles and another for the EDV, so Rivian can interchange the R1S and the R1T. In addition, Rivian has created a recycling program to recondition its batteries.

The approximately 4 million-square-foot plant builds all Rivian models.

“Recycling is a great opportunity,” he said. “When an EV battery reaches its end of life, there’s still a tremendous amount of life and capability in that battery. It doesn’t just need to be thrown away.”

EV Charging Infrastructure As the industry moves away from internal combustion engine (ICE) vehicles to battery electric vehicles (BEVs), Phillips foresees charging networks will help drive adoption rates across all EV product lines.

“I absolutely love Rivians,” said Phillips, who owns an R1T and an R1S. “They’re fantastic vehicles, but I will confirm… I have charged at Electrify America chargers and others and have been very frustrated.”

Phillips said the recent adoption of the North American Charging Standard (NACS) chargers designed

by Tesla will help address infrastructure challenges and lead to more rapidly available and reliable charging.

“Manufacturers are working on solutions to deliver robust, highpowered charging locations nationally and each OEM has a branded strategy to address the gaps,” he added.

Phillips talked about Rivian’s role in contributing to the charging infrastructure. As a new vehicle company, Phillips said the charging network is something leadership understood needed to be addressed to succeed.

“The scope of our company ethos is to keep the world adventurous,” he noted. “When you take your Rivian out on the trail, we want to have a charging network there for you to access.”

In addition to a wall charger and portable charger, Rivian is building the Rivian Adventure Network, a

comprehensive network of fastcharging sites, initially capable of adding up to 140 miles of range in 20 minutes to the R1T and R1S. Open to Rivian owners, the network is planned to grow to more than 3,500 fast chargers at over 600 sites across the U.S. and Canada.

Rivian is also collaborating with Tesla to charge its vehicles at more than 12,000 Tesla Superchargers across the U.S. and Canada with an NACS adapter.

Although Phillips said the transition to EVs is an adventure, he encourages repairers and customers to stay positive while the charging infrastructure is implemented.

Rivian Certified Collision Network When Phillips joined Rivian three years ago, he was tasked with creating a certified collision network across North America with Kelly Logan, Rivian’s director of collision.

The first body shop was certified in August 2021; there are now 220 certified locations. They are comprised of four programs under the Rivian Certified Collision Network umbrella: Rivian Certified Collision Centers (RCCC) locations working on R1 products, Rivian Certified Fleet Center (RCFC) locations working on the commercial vans, RCDC locations offering calibration and diagnostics, and RCV locations, B2B partners working with Rivian on predelivery repair needs.

The Rivian collision team is in the field recruiting shops and working with repairers to help them perform better. Each program is designed to address specific customer needs, which Phillips said allows the network to focus on vehicle specialization.

“Flexible program offerings ensure a better customer experience by placing clients in the right locations to start,” he said. “Offering choice also adds appeal to the program by addressing program entry costs.”

Phillips said one of Rivian’s unique features is the manufacturer’s certified diagnostic and calibration program, created to ensure a successful calibration and safe and proper repairs.

“When you look at a Rivian, there are cameras and sensors everywhere so it is going to need calibration if it’s in an accident,” he said.

Since Rivian opened its doors, Phillips said the company is happy with its progress.

“The quality of the Rivian continues to ramp up and improve and they are a treasure to drive,” he said. “Our customers are saying the same.”

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Automakers Join Other Businesses To Ask For Federal Investment in Clean Aluminum Ford, GM and Rivian, along with 11 more companies in a wide range of other industries, sent a letter Oct. 5 to the U.S. Department of Energy (DOE) to encourage the investment of Inflation Reduction Act funds in modernizing the American aluminum industry.

The letter was published on www. buycleanaluminum.com and in full page ads in five newspapers in New York, Missouri, Kentucky, South Carolina and Indiana, where the remaining six primary U.S. aluminum smelters are located. DOE officials are currently evaluating applications from those smelters to invest IRA dollars that will reduce emissions from manufacturing processes and power supplies. In a news release, Ford said aluminum is used in everyday food and beverage products, as well as “clean energy” products like solar panels, wind turbines, heat pumps, transmission lines, electric vehicles and more. Global demand for aluminum is set to increase nearly 40% by 2030 and 80% by 2050.

Yet, in the past 18 months, the U.S. primary aluminum industry has been pushed “to the brink,” plagued by layoffs, curtailed production and

closures due in part to the volatile price of fossil fuels. Power supply accounts for 40% of U.S. smelters’ total production costs, and smelters in Kentucky and Indiana said high energy costs due to volatile fossil fuel prices necessitated curtailing operations last year. At the same time, the price of electricity from renewable sources like wind and solar has plummeted over the last decade.

Rather than allow these smelters to become priced out, the federal government can secure low-cost electricity supplies in the short term while investing in long-term supplies of cheap, renewable energy.

“As significant buyers of primary aluminum, we strongly support federal investments via the Inflation Reduction Act (IRA) to ensure that the United States will be a leader in producing this critical material, which is essential to America’s economic growth,” the letter to the DOE said. “The IRA is poised to make the largest-ever investment in U.S. manufacturing, supercharging aluminum-dependent clean energy technologies” like wind and solar, which is forecasted to alone exceed all current aluminum consumption,

the letter said. “In order to meet increased aluminum demand that will affect all our industries, the U.S. must invest heavily in supply,” the letter said.

Investing in the U.S. aluminum industry will retain and create manufacturing jobs, help reduce emissions and grow and sustain the industry in the interest of national security, the letter said, urging the DOE to prioritize decarbonization of aluminum and the deployment of low-cost carbon-free energy the industry critically needs.

“Ford is committed to achieving carbon neutrality across our vehicles, operations and supply chain no later than 2050, and sourcing domestically produced, lower-carbon primary aluminum is part of a host of actions we are taking that will help us meet our ambitious sustainability goals,” said Cynthia Williams, global director of sustainability, homologation and compliance at Ford, in a statement.

“The Inflation Reduction Act presents a powerful opportunity for the Department of Energy to prioritize American-made, clean sources of aluminum, which will in turn make more sustainable options available to companies like Ford.”

AsTech Creates Instant Repair Recommendations asTech, a Repairify company, announced asTech Insights, a revolutionary, generative AI product that will immediately enhance its OEM-compatible scans.

Through the power of AI, asTech Insights uses the results from an asTech OEM-Compatible pre-scan to automatically generate custom collision repair recommendations specific to the vehicle and identified DTC codes—all within seconds after completing the pre-scan.

For shops, asTech Insights will be like having a certified technician at their side wherever and whenever they need them. Within seconds, they’ll get collision specific repair recommendations to enable them to complete the repair correctly. Combined with asTech OEM-Compatible scans, shops will be able to perform an OEM-quality scan and generate a complete repair plan in under seven minutes.

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CCC Breaks Down Rise in Total Cost of Repairs, Other Trends

By John Yoswick Autobody News

CCC Intelligent Solutions offered a look at industry stats and trends as of mid-year during a recent webinar hosted by the Collision Industry Electronic Commerce Association (CIECA).

Bart Mazurek, vice president of consulting services for CCC, said vehicle miles traveled through the first five months of this year, according to the U.S. Department of Transportation, was running a bit ahead of 2022.

“When we compare it to [prepandemic] 2019, it’s actually fairly similar except for the April timeframe,” Mazurek said, which means there’s been “a noticeable bump compared to last year.”

More miles driven generally means some increase in vehicle accidents.

And claims this year are, perhaps not surprisingly, involving a continued increase in the total cost of repairs.

DRP claims in the first quarter of this year averaged $4,444, up $223 from the average for all of 2022.

But that 5.3% increase is more in line with the increases seen in 2019 and 2020, and significantly smaller than the jumps in total cost of repairs in 2021 (10.6%) and 2022 (14.3%).

While the increase should be good news for shops, the breakdown of those total costs may mean fewer dollars on the bottom line for collision repairers. In 2019 and 2020, according to CCC data, labor accounted for as much as 40.4% of total repair costs. That’s dropped by about two percentage points in 2022 and the first quarter of 2023, as parts and other costs—which generally have lower profit margins for shops— have increased as a percentage of the total costs of repairs.

Types of Parts Used Has Shifted The breakdown of those parts costs by parts type—new OEM, non-aftermarket, salvage—also has shifted, according to data reported

by CCC. In 2020, non-OEM parts accounted for 18.4% of the total dollars, but that fell to as low as 15.6% in the first quarter of 2022.

“That was because most aftermarket parts come from Asia, and supply chain issues certainly took effect,” Mazurek said. “So there was limited availability of aftermarket parts.”

But that began rebounding in the second quarter of last year, reaching 19.2% in the first quarter of this year, “really right back to its historical

norms,” Mazurek said.

He said he expects total cost of repairs to push closer to $5,000 in this half of 2023. That’s because repairs of newer vehicles are requiring more parts—about 16 per claim compared to about 12 for vehicles seven years or older.

current model year vehicles, the recent change is even more dramatic.

“It’s really gone from 20% [of those claims] to 35% effectively in just in the last five or six quarters,” CCC’s Mazurek said. “I anticipate that as even more vehicles have ADAS capabilities built in,

The percentage of direct repair claims that include one or more scans has jumped 14% since the start of 2022, according to CCC Intelligent Solutions, with every age of vehicle seeing a steady increase

“It’s much more part intensive because today’s vehicles have so much more technology that either works [after an accident] or it doesn’t, so it’s not necessarily repairable and needs to be replaced,” Mazurek said.

Claims on vehicles up to 3 years old are already averaging more than $5,000 compared to about $3,600 for the oldest vehicles repaired.

About 37% of DRP claims last year were $4,000 or higher, up from just 26% in 2019. And the percentage of claims over $10,000 doubled from 4% to 8% between 2019 and 2022.

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More Scans, Calibrations In other trends CCC is seeing, the percentage of direct repair claims that include one or more scans has jumped 14% since the start of 2022.

About 73% of those claims this year have included a scan, up from 63% in the first quarter of 2022.

Scanning fees on those claims in the first quarter of this year averaged $137 per claim—the national average including DRP and non-DRP claims was $141—with an average of 2.3 scanning line items per claim. Fees for calibrations averaged $401 and 1.4 line items for DRP claims in the first quarter of this year, with calibrations being listed on 16% of claims, up from 10% in the first quarter of 2022.

Looking at DRP claims involving

much more common across the industry.”

Labor rates have continued to increase, particularly for mechanical labor. CCC data show mechanical rates rising 11% in 2022, and 8.6% through the first half of 2023. Those are larger percentage increases than the year-over-year change in that period in rates for body and frame labor, which were generally in the 6% to 9% range.

Turning to electric vehicle trends, Mazurek said about 295,000 new electric vehicles were purchased in the second quarter of this year, signaling the annual pace of EV sales will top the forecast for not just this year but next year as well.

“It’s really outpaced everyone’s expectations,” he said. “So my expectation is that by the time we actually get to 2024, we will be significantly north of the [forecast] 1.2 million vehicle [annual sales] mark.”

CCC data shows the average total cost of repairs for EVs in 2023 is running 38% higher when compared to non-EVs, with an average of 34.7 labor hours per appraisal, compared to 27.7 for non-EVs, and an average of 24.7 parts replaced, 10 more than non-EV claims.

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Minivans Don’t Make the Grade When It Comes To Rear-Seat Safety Popular with parents, minivans ought to boast the safest secondrow seating on the market. Instead, they’re lagging behind.

None of the four minivans tested by the Insurance Institute for Highway Safety earned an acceptable or good rating in the updated moderate overlap front crash test, which now emphasizes back seat safety. The Chrysler Pacifica, Kia Carnival and Toyota Sienna are rated marginal, while the Honda Odyssey is rated poor.

All but the Sienna also lack seat belt reminders for the secondrow seats, as IIHS highlighted in February.

“Back seat safety is important for all vehicles, but it’s especially vital for those, like minivans, that customers are choosing specifically to transport their families,” said IIHS President David Harkey. “It’s disappointing that automakers haven’t acted faster to apply the best available technology to the second row in this vehicle class.”

IIHS launched the updated moderate overlap front test last year after research showed that

in newer vehicles the risk of a fatal injury is now higher for belted occupants in the second row than for those in front. This is not because the second row has become less safe. Rather, the front seat has become safer because of improved airbags and advanced seat belts that are rarely available in back.

Even with these developments, the back seat remains the safest place for children, who can be injured by an inflating front airbag, and the rating does not apply to children secured properly in child safety seats.

In the updated test, a second dummy is positioned in the second row behind the driver. The driver dummy is the size of an average adult man. The rear dummy is the size of a small woman or 12-yearold child. IIHS researchers also developed new metrics that focus on the injuries most frequently seen in back seat passengers.

For a vehicle to earn a good rating, there can’t be an excessive risk of injury to the head, neck, chest or thigh, as recorded by the secondrow dummy. The dummy should

remain correctly positioned during the crash without “submarining,” or sliding forward beneath the lap belt, which increases the risk of abdominal injuries. The head should also remain a safe distance from the front seatback and the rest of the vehicle interior, and the shoulder belt should remain on the shoulder, where it is most effective.

A pressure sensor on the rear dummy’s torso is used to check the shoulder belt position during the crash.

As in the original test, the structure of the occupant compartment must maintain adequate survival space for the driver, and measurements taken from the driver dummy shouldn’t show an excessive risk of injuries.

All four minivans provide good protection in the front seat. But each is plagued by multiple issues when it comes to the second row.

“The restraint systems in all four vehicles leave the secondrow occupant vulnerable to chest injuries, either because of excessive belt forces or poor belt positioning,” said Jessica Jermakian, IIHS vice president

of vehicle research.

“That’s concerning, because those injuries can be life-threatening.”

Of the four vehicles, only the marginal-rated Sienna is equipped with belt pretensioners and force limiters, technologies designed to reduce belt forces. However, the rear dummy submarined beneath the lap belt and the shoulder belt migrated off the shoulder toward the dummy’s neck during the test.

In the two other marginal vehicles, the Carnival and Pacifica, the seat belt exerted too much force on the dummy’s chest. The side curtain airbag of the Pacifica also did not deploy during the test.

The forces on the rear dummy’s neck were within reasonable limits in the Pacifica and Sienna but substantially higher in the Carnival, increasing the chances of a head or neck injury.

In the poor-rated Odyssey, the forces on the head and neck were higher still, and the crash video demonstrated the rear seat belt allowed the dummy’s head to come too close to the front seatback, which also increases the risk of head injuries.

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Auggie Calibrations Meet NHTSA Standards AirPro Diagnostics announced its Auggie mobile static recalibration device has been independently tested, and calibrations performed prove to meet the NHTSA vehicle requirements to help ensure a complete and safe repair.

FT Techno of America (FTTA), an independent vehicle evaluation company, performed NHTSA NCAP Crash Imminent Braking (CIB) or Automatic Emergency Braking (AEB) and Lane Departure Warning (LDW) test scenarios on a vehicle recalibrated with Auggie, and determined the vehicle successfully passed all CIB and LDW tests performed at the Fowlerville Proving Grounds to the NHTSA testing standard.

Auggie is a wireless, compact solution that saves time and increases efficiency rendering the ADAS targets and lighting conditions in a theater-like environment to precisely perform forward-facing camera (FFC) recalibrations.

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Trainer Says ‘Who Pays?’ Survey Data Shows Industry Needs To ‘Wake Up’ on Weld Testing More than one-third of repairers (37%) have never sought to be paid to perform test welds, according to the latest results of the “Who Pays for What?” survey.

While that is a big improvement from the 80% of repairers who acknowledged in 2015 never charging for that procedure, it still leads Mike Anderson of Collision Advice to question whether that one-third of shops are even conducting weld testing.

“We need to wake up on this one,” Anderson said. “This is a non-negotiable procedure that every OEM says is necessary. If your techs aren’t doing this, don’t delay, get them doing it today. I recently was at a shop that set up and performed a destructive test weld that failed because the welding equipment did not have the latest software update. That was not the first time I’ve seen that happen. Be sure to check with your welder equipment company to know when any updates should be performed.”

In 2015, 78% of repairers said

the eight largest insurers never paid for the time it takes to make and destructively test welds prior to welding on the vehicle. That number has since dropped to 38%, but still only 33% of repairers say they are regularly paid for the procedure.

“Our whole industry needs to acknowledge how critically important test welds are. Repairers need to perform them routinely, and insurers need to pay for them routinely.”

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Anderson said he’s disheartened by the fact only onethird of shops say insurers pay them for destructive testing of welds.

“Our whole industry needs to acknowledge how critically important test welds are,” he said.

“Repairers need to perform them

routinely, and insurers need to pay for them routinely.”

The latest quarterly “Who Pays for What?” survey is now open through the month of October. It focuses on billing and payment practices related to scanning and calibrations, aluminum repair and shop supplies. Shops can take the survey at www.surveymonkey. com/r/N57XS3R Survey participants receive a free report with complete survey findings along with analysis and resources to help shops better understand and use the information presented.

The survey can be completed in about 15 minutes by anyone familiar with their shop’s billing practices and the payment practices of at least some of the largest national insurers. Each shop’s individual responses are held in the strictest confidence; only aggregated data is released.

The results of previous surveys are also available online at www.crashnetwork.com/ collisionadvice.

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Mike Anderson — From the Desk of Mike Anderson

Doing More Calibrations ‘In-House’ Often Doesn’t Mean in Your Shop I’ve been a proponent—here in this column and elsewhere—in collision repair businesses working to conduct more ADAS calibration, resets and reprogramming in-house. One of the members of my Spartans groups recently told me he had some concerns about that view, and he had some valid points I thought were worth addressing here.

Let me start by saying I still believe shops should do more of their ADAS work themselves, for several reasons. Clearly, it’s a potential—and growing—profit center. But more importantly, it gives you more control over the process. It can reduce cycle time issues caused when work is sublet. And most importantly, it better ensures the work is being done properly—for the safety of your customers and to reduce your shop’s liability.

That said, Andy Tylka pointed out there are some real challenges to bringing more ADAS “in-house” I didn’t fully spell out. Andy owns multiple body shops in the Midwest, is the current treasurer on the Society of Collision Repair Specialists’ board of directors, and is co-owner of Midwest ADAS, stand-alone calibration centers serving body shops in Indiana and Illinois.

Andy’s concern with my position about bringing ADAS in-house is it’s just not something many—if not most—shops have the facility to do under the same roof in which they are performing collision repair and refinishing. And he’s right about that.

So let me clarify what I’m saying.

First, bringing ADAS work in-house involves so much more than just buying some equipment. You need to get the training required, for example.

Some automakers, like Toyota/Lexus, offer hands-on technician training in ADAS work. I-CAR is offering training as well. But the key is you can’t just think you can just take somebody off the street and start doing this work without the right training.

Second, you need to have the right equipment. To the best of my knowledge, no automakers, other than Lucid and Rivian, have approved any aftermarket solutions for calibrations. So until that happens, until the OEM engineers have signed off on an aftermarket solution, I stand by my position that you need to be using factory scan tools, targets and

equipment for all ADAS work. The precision this work requires makes that an absolute must.

Third—and this was one of the key points Andy pointed out I failed to mention—is you have to have the right space and environmental conditions within your facility to do this work accurately. Most existing body shops just don’t, which limits their ability to bring this work “in-house.”

An ADAS Midwest calibration center has the space, level floor, consistent lighting and other requirements to perform ADAS calibration work properly

All of the automakers, for example, spell out their space requirements for ADAS calibrations. While it varies, you generally will need a minimum between 2,000 and 4,000 square feet of space. That’s space with no obstacles—columns or poles, or even toolboxes. Some shops think they can re-engineer the calibrations to offset or compensate for their space.

“I only need this much space on the left rear of the car because I’m only doing a blind spot monitor calibration in the left rear.” That’s not accurate.

You have to have the specified space on all sides of the vehicle to do consistent, accurate ADAS work.

The floor has to been precisely level; if there’s a drain in the floor, that’s generally an indication that floor will not be level enough for accurate ADAS calibration work. Again, what qualifies as a “level enough” floor varies by automaker, but they all provide those specifications. A slope of even just a couple millimeters beyond the specification can have a tenfold impact on that calibration.

Very few existing body shops have a level enough floor for calibration work.

Controlled, consistent and dimmable lighting is equally important. If your shop has skylights or windows or overhead doors open during calibrations, all those variances in lighting can impact the accuracy of

30 NOVEMBER 2023 AUTOBODY NEWS / autobodynews.com

ADAS work. The presence of metal, the glare of the floor or anything hanging on the walls also can impact calibrations.

Given all this, I want to clarify that when I say shops should be working toward bringing more of this work “in-house,” that generally doesn’t mean trying to do it in their existing shop. The clients of ours I see doing this most successfully are developing other facilities specifically for this work, sometimes as separate businesses from their shop—dedicated buildings, employees, equipment and training for this work.

As I said, the key upside for doing this is ensuring the work is being done correctly. With no offense to dealerships, many of them are not doing correctly the calibration work body shops are subletting to them— often because they don’t have the space and environmental conditions needed. Andy shared with me one such story.

“We had an educational session

at one of our facilities right after we opened it, and we had more than a dozen adjusters there from three insurance companies, along with representatives from other shops, dealerships and even an automaker there,” Andy told me. “That morning we had received a vehicle that had been calibrated elsewhere.

We checked it, and the automatic emergency braking was off by twoor three-and-a-half degrees. This was a car that had been returned to the customer as calibrated. The car wasn’t telling the customer there were any issues with it. But the radar was off by several degrees and pointed up in the air. So we had a perfect example of why this work needs to be done right, in the right facility.”

I want to thank Andy for pointing out that when I say shops should be doing more of this work themselves, I need to clarify that doesn’t necessarily mean “in-house.” They have to be able to do it with the precision needed to do it correctly.

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Hunter Wins PTEN People’s Choice Awards

“After spiking during the pandemic, traffic deaths are continuing to slowly come down—but we still have a long way to go,” U.S. Transportation Secretary Pete Buttigieg said.

“Safety has always been the core mission of this department, and thanks to President Biden, we are delivering unprecedented resources to communities across the country to make their streets safer.”

“While we are encouraged to see traffic fatalities continue to decline from the height of the pandemic, there’s still significantly more work to be done,” NHTSA Acting Administrator Ann Carlson said. “NHTSA is addressing traffic safety in many ways,

including new rulemakings for lifesaving vehicle technologies and increased Bipartisan Infrastructure Law funding for state highway safety offices.

We will continue to work with our safety partners to meet the collective goal of zero fatalities.”

NHTSA estimates a decrease in fatalities in 29 states, while 21 states, Puerto Rico and Washington, D.C., are projected to have experienced increases.

NHTSA has announced several safety initiatives aimed at reducing traffic deaths, including proposed rulemakings to require automatic e m e r g e n c y braking systems in passenger cars, light trucks and heavy vehicles. The agency has also published a proposed rule for seat belt warning systems and issued an order to collect more data about crashes that occur when automated driving systems and ADAS are engaged.

Hunter Engineering is proud to announce two Hunter products— the 1708-T Alignment Guide and BL Series of bench lathes with HunterNet 2 connectivity—were named winners in the 2023 PTEN People’s Choice Awards, voted on by readers of PTEN Magazine, following the selections made by an expert panel of judges from the PTEN Innovation Awards earlier this summer.

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Hunter added HunterNet 2 connectivity to its BL Series of bench lathes with tablet. HunterNet 2 is a free customer portal developed for undercar service operators with single or multiple rooftops, allowing operators to access performance data for all Hunter-connected equipment.

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Fatalities on U.S. roadways appear to continue to be on the decline for the fifth straight quarter, according to early estimates of traffic fatalities for the first half of 2023, released Sept. 28 by the National Highway Traffic Safety Administration (NHTSA).

NHTSA estimated 19,515 people died in motor vehicle traffic crashes, representing a decrease of about 3.3% as compared to 20,190 fatalities in the first half of 2022. Fatalities declined in both the first and second quarters of 2023.

Continuing the trend identified in the first quarter estimates released in June, preliminary data shows vehicle miles traveled in the first half of 2023 increased by about 35.1 billion miles, roughly 2.3% higher than the same time last year.

More miles driven combined with fewer traffic deaths resulted in a fatality rate of 1.24 fatalities per 100 million VMT, down from the projected rate of 1.31 fatalities per 100 million VMT in the first half of 2023.

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ASE Education Foundation Board Chair Releases Message Trey Michael, senior director of career and technical education for the North Carolina Department of Public Instruction and chair of the ASE Education Foundation Board of Directors, released the following message to schools, educators, students and employers as the 2023-24 academic year begins.

It is with great pride that I serve as chair of the ASE Education Foundation for 2023.

As an individual dedicated to education, I am fortunate to have insight into the essential efforts conducted by the foundation to enhance the connections among schools, educators, students and employers. As we welcome students back for another school year, it is worth pausing to recognize the value that the foundation provides.

For 40 years, the ASE Education Foundation has been focused on creating a pipeline of well-prepared entry level technicians from high school and college programs across the country through its network

of ASE accredited automotive, collision and medium/heavy truck programs. These programs are critically important to the industry as a solution to the technician shortage.

The service industry continues to drive and shape the accreditation standards.

ASE accredited programs have demonstrated that they have the facilities, tools, equipment, curriculum and qualified instructors to meet these industry-developed national standards. Students benefit by receiving a thorough introduction to service and repair, and employers benefit by having a steady supply of skilled new talent.

This collaboration works best when schools and businesses work together at the local level to support each other. The ASE Education Foundation has a network of field managers across the country that actively help connect schools and employers to build these partnerships.

Many states have adopted our industry recognized credentials for career and technical education (CTE) students which includes ASE entry-level certifications.

These certifications confirm a student’s technical knowledge but not experience. That is where businesses come in, giving students work-based learning opportunities and much needed experience that reinforces classroom learning.

For employers that aren’t sure how to get started working with their local schools, the ASE Adopt-A-School Program is a valuable tool. This online resource helps bridge the gap between local businesses and schools, offering specific steps that employers can take to get involved. The Adopt-ASchool program also provides information on implementing job shadowing and structured work-based learning programs for students. To learn more, visit ASEeducationFoundation.org/ AdoptASchool or contact an

ASE Education Foundation field manager who can help you build these connections.

Lastly, the 2023 ASE Instructor Training Conference was held in Concord, NC, recently with a tremendous turnout. I would like to thank all who participated. More than 300 instructors attended the conference, which included 100 technical update training sessions from 60 different industry partners. Presenters covered topics of great interest such as ADAS systems and calibration, electric vehicles and high voltage systems, and strategies for effective teaching.

The ASE Education Foundation continues to be the leader in bringing the automotive service industry and education together to help students start rewarding careers. On behalf of the ASE Education Foundation Board of Directors, I extend our gratitude for your continued hard work and support, and we wish you all the best this school year.

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WIN Kicks Off Sponsorship Campaign The Women’s Industry Network (WIN) announced the launch of its 2023-24 sponsorship campaign.

The organization, which provides networking and connection opportunities for women in the male-dominated collision industry, announced this year’s sponsorship campaign is vital to the organization’s goal to attract, retain and advance women in the collision repair industry.

Today’s prospective employees are looking for organizations that offer professional development opportunities and invest in educating their employees beyond the typical benefits package.

Sponsoring an organization such as WIN is a great way for employers to use the resources and events WIN offers.

Numerous sponsor level opportunities exist for WIN supporters, with various features and benefits available for all six program tiers: For more information, visit thewomensindustrynetwork.site-ym. com/page/Sponsorship or contact a member of the sponsorship committee at sponsorship@ womenindustrynetwork.org.

With More Choices, Brand Loyalty Slips Among NewVehicle Owners As new-vehicle inventory and sales rebound to pre-pandemic levels in the U.S., more buyers are choosing to forego loyalty to a specific brand, according to the J.D. Power 2023 U.S. Automotive Brand Loyalty Study.

“As vehicle availability increased and more choices hit the market for consumers, loyalty among brands as a whole saw a decline this year,” said Tyson Jominy, vice president of data & analytics at J.D. Power, in a news release. “Additionally, owners were tied down to their vehicles for longer than normal due to ongoing supply chain disruptions, and as a result were more likely to experience problems with their vehicles.

“Now that some of those issues have eased, consumers are looking to get behind the wheel of something different and are no longer remaining as loyal to a brand. However, many of the highest-ranking brands

perform similarly year after year. When vehicles deliver an experience that meets owner expectations, such as by offering superb build quality, owners are likely to reward brands with their loyalty.”

Highest-Ranking Brands Porsche ranks highest among premium brand car owners for a second consecutive year, with a 56.8% loyalty rate. MercedesBenz (50.5%) ranks second.

Volvo ranks highest among premium brand SUV owners with a 56.5% loyalty rate. BMW (56.1%) ranks second.

Toyota ranks highest among mass market brand car owners for a second consecutive year, with a 60.0% loyalty rate. Honda (55.0%) ranks second.

Subaru ranks highest among mass market brand SUV owners with a 61.1% loyalty rate. Toyota (60.5%) ranks second.

Ford ranks highest among truck owners for a second consecutive year, with a 64.6% loyalty rate, the highest loyalty rate in the study. Toyota (60.4%) ranks second.

The study, now in its fifth year, uses data from the Power Information Network to calculate whether an owner purchased the same brand after trading in an existing vehicle on a new vehicle. Customer loyalty is based on the percentage of vehicle owners who choose the same brand when trading in or purchasing their next vehicle.

Only sales at new-vehicle franchised dealers qualify. The study includes brand loyalty across five segments: premium car; premium SUV; mass market car; mass market SUV; and truck.

The 2023 study calculations are based on transaction data from September 2022 through August 2023 and include all model years traded in.

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‘Most Influential Women’ Honorees Discuss Roads To Success Within Collision Repair Industry

By John Yoswick Autobody News

The six women speaking during a Women’s Industry Network (WIN) webinar this fall have very different roles within the industry: a sales manager for a paint company, a dealership body shop manager, a senior vice president for a large multishop organization, etc.

But what they all had in common was being named WIN 2023 Most Influential Women award honorees, and during the webinar, they talked about how they approach their dayto-day work, how they manager their careers, and how all that interacts with their daily lives.

Jaime Shewbridge, an I-CAR welding instructor, discussed how she handles the stressful aspects of working in the industry. She said that’s something she’s focused on this past year because of the impact she’s seen it have on her physical health. She said you first have to admit to having “a whole lot on your plate,” and “learn how to say no” at times.

“Saying ‘no’ really lowers your stress level,” she said. “You would think it would be the other way around, but it’s not.”

She said she uses “time blocking,” designating certain time for her family, for example, during which “they have 100% of my attention,” and “it doesn’t matter if somebody needs help at work, or if there’s a class, whatever it is, that block is theirs and nothing changes that.”

She also said the book “Extreme Ownership” by Jocko Willink and Leif Babin will “change your perspective on life and help you prioritize your tasks and then execute.”

The biggest change she said she made, however, was giving up multitasking.

“It’s an illusion, right? We all think that we’re good at multitasking. We all think we can do lots of things at one time,” she said. “But I read a study, and I might get the numbers wrong, but if you stop one task, it takes between 17 and 23 minutes to then refocus yourself back on that task. So you lose quite a bit of time by trying to do that. And when I gave up multitasking and just

focused on exactly what I was doing at that moment, I became way more productive. I got way more done in a certain timeframe than if I was literally trying to do three things at one time.”

Finding a Mentor Yohanna Peet, who leads the Technician Apprenticeship Program (TAP) for Caliber Collision, said whatever your role in a collision repair business—from owner to apprentice technician—finding a mentor can help you reach your goals. Look for those, she suggested, who “maybe have gone through a circumstance like you’re going through” or who may also be mentoring someone else.

“Sometimes it’s just asking, and what’s the worst they can say, ‘I’m flattered, but I don’t really have time right now,’” she said. “Or, the other side of it is, ‘Wow, I had no idea that you saw me from that perspective.’

And what does that do for that person’s self-efficacy, that now [they realize] you see them as a promoter, a mentor. So a lot of what I’m saying is speak up. And when you’re offered a seat at the table, take a seat at the table, take the opportunity to say, ‘That’s great. I want to learn more about this. Can you help me? How did you get there?’ Ask the questions because that’s where you’re really going to see all the reciprocity come with it.”

36 NOVEMBER 2023 AUTOBODY NEWS / autobodynews.com

Being a Mentor April Lausch also discussed how her experience with mentoring shapes her current role as manager of Faulkner Collison Center of Lancaster in Pennsylvania. Her first job in the industry at age 18 was as an office manager at a collision center.

“The manager at that time was, I would say, my mentor to a point,” she said. “They wanted me to be an estimator. So they sent me to estimating school for two weeks. I got my estimating license. And when I came back to the shop, I still only knew the basics. So the manager kind of took me under his wing. We wrote tow-ins together, and for a couple years, he taught me how to be a really good writer. So as a mentor in that aspect, he was really good.”

She also viewed the shop’s technicians as mentors.

“They helped me more, and still do, even to this day,” she said. “I will be in the shop, and they would just teach me a lot.”

After five years, she said, she got an offer to work at a Chevrolet dealership as an estimator, a job that offered about $60,000 more than she was making. The manager

at her existing employer, however, suddenly became very discouraging, “telling me that I couldn’t do it, there was no way that would ever happen, that that job opportunity wasn’t out there,” Lausch said. “After two weeks of that, I almost stayed, but I decided to go, and I ended up becoming assistant manager” at the Chevrolet dealership. She later joined the Faulkner dealership, where she became manager within a year.

“You know, I’ll never hold any of my employees back.

I want them to grow.

I want them to become better.”

— APRIL LAUSCH

COLLISION CENTER MANAGER, FAULKNER COLLISON CENTER OF LANCASTER

“So I had a great mentor until it was time to move on to the next space,” she said, saying that experience has stuck with her. “You know, I’ll never hold any of my employees back. I want them to grow. I want them to become better.”

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New-Vehicle Prices Fell Further in September, Led by Price Cuts At Tesla The average price Americans paid for a new vehicle in September 2023 was down 3.4% from the start of the year, as higher inventory levels and increased incentives continued to put downward pressure on pricing.

The average transaction price of a new vehicle in September was $47,899, down $360 from one year ago (0.7%), according to Kelley Blue Book, a Cox Automotive company.

Prices decreased by $227 (0.5%) from August’s downwardly revised ATP of $48,126.

“After new-vehicle prices peaked at nearly $50,000 at the start of 2023, we’re seeing average transaction prices dip below $48,000 for the first time in more than a year,” said Rebecca Rydzewski, research manager at Cox Automotive.

“Dealers and automakers are feeling price pressure, and with auto loan rates at record highs and growing inventory levels, new-vehicle prices continue to ease. Assuming the UAW strike is short-lived, current inventory levels are healthy enough to prevent any significant impact on consumer prices.”

With the UAW strike entering its fourth week and General Motors’ inventory levels far below Ford Motor Company and Stellantis, Detroit’s largest automaker slashed incentives on all four of its major brands in September. General Motors’ average incentive as a percentage of transaction price was 4.0%, down from 4.7% in August and below the industry average of 4.9%.

Both Ford and Stellantis, which have inventory levels well above the industry average, saw average incentive packages increase month over month in September to 5.2% and 7.3%, respectively. GM and Stellantis posted higher ATPs month over month in September, while Ford ATPs declined less than 1%, aligned with the industry average.

Non-Luxury Vehicle Prices Increase Less Than 1% Year Over Year The average price paid for a new non-luxury vehicle in September was $44,626, an increase of 1% from one year ago. Compared to August, non-luxury prices were down $82.

The average incentive spend in the non-luxury segment was 4.7% of ATP in September, up from 2.3% one year ago. Month over month, incentive spending was flat.

Only three vehicle segments had average transaction prices below $30,000 in August—

compact cars, subcompact cars and subcompact SUVs. All three segments saw month-over-month price increases. August’s lowestpriced vehicles in the U.S. market were the Mitsubishi Mirage and Kia Rio—the final two vehicles still transacting under $20,000—and are expected to be discontinued in the coming years as the market shifts away from sedans.

Average Luxury Prices Down Year Over Year, Largest Decline in a Decade Luxury vehicle prices in September decreased by $873 compared to August. Luxury transaction prices were down 6.2% year over year to $62,342. Since the start of 2023, luxury prices have declined by almost 7%. Overall, the luxury segment continued to deliver strong results in September, holding an 18.5% share of the U.S. market.

Luxury price declines in 2023 are primarily driven by aggressive price cuts at Tesla, the luxury market leader. Compared to September 2022, Tesla transaction prices are down 24.7%; Tesla Model 3 prices are down more than 26% year over year to $41,484, well below the average luxury car price. Tesla average transaction prices are now lower than Acura, Lexus, Infiniti and Volvo.

Tesla’s price cuts have offset price gains by many luxury automakers.

Audi, Mercedes-Benz and Porsche all booked year-over-year price increases in September, with Mercedes-Benz ATPs up more than 10%. Audi and Porsche posted a year-over-year increase of more than 8%. BMW, Cadillac, Infiniti, Land Rover and Lexus also posted price increases. Brands with year-over-year price declines in September included Buick, Jaguar and Volvo.

Luxury vehicle incentives have significantly increased year over year, rising from an estimated 1.7% of ATP a year ago to 5.7% last month.

Luxury vehicle sales in September were up 19% year over year, helping to push overall industry volume higher by more than 18%. During the same timeframe, non-luxury sales were higher by 17%.

year ago. Incentives for EVs in September were 9.8% of ATP, or $4,991.

“At last check, we had 15 new EV models for sale that were not available a year earlier.

Better choices and more options are helping push prices lower and drive higher sales.”

— STEPHANIE VALDEZ-STREATY DIRECTOR OF INDUSTRY INSIGHTS AT COX AUTOMOTIVE

At the start of October, EV availability, as measured by days’ supply, was well above the industry average as product availability and EV production rapidly increases.

EV and internal combustion engine (ICE) inventory started the year off at about 52 days’ supply. Since then, EV days’ supply dramatically increased while ICE remained consistent between 52 and 58 days.

EV supply at the start of October was 97 days, down from the peak inventory of around 111 days during early July.

“EV sales continue to grow in the U.S., partly due to strong supply and more choice,” said Stephanie Valdez-Streaty, director of industry insights at Cox Automotive. “At last check, we had 15 new EV models for sale that were not available a year earlier. Better choices and more options are helping push prices lower and drive higher sales.”

Auto Incentives Offered by Manufacturers Reach 24-Month High Incentives averaged $2,368 in September, the highest point in the last 24 months and at 4.9% of ATP. While September incentives were essentially flat month over month, they remain historically low.

For comparison, Kelley Blue Book estimates incentives averaged 10% of ATP in September 2020 and 10.2% in September 2019.

The high-end luxury car segment had the highest incentives in September at 10.6% of ATP, followed by electric vehicles at 9.8%, luxury cars at 7.4%, entry-level luxury cars at 7.1% and full-size pickup trucks at 6%. Vans, high-performance cars, and small and midsize pickup trucks had some of the lowest incentives in September.

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Electric Vehicle Prices Continue to Decline EV prices continue to fall, led again by market leader Tesla. In September, the average price paid for an electric vehicle was $50,683, down from $52,212 in August and down from more than $65,000 one

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2/10/23 8:29 AM

‘Going Green’ Can Be a Profitability Opportunity For Collision Repairers

By Abby Andrews Autobody News

The latest installment of AirPro Diagnostics’ TechTalk 360 webinar series featured guest Gabriel Morley, AVP of DEKRA North America, and hosts Jordan Hendler and George Avery.

The conversation delved into the impact of sustainability on daily auto body shop operations, environmentally-friendly initiatives and the shift towards a greener automotive world in general. From carbon neutrality to waste management, energy efficiency and the role of recycled parts, Morley explored various facets of sustainability and how they intersect with collision repair.

“How does sustainability affect shops day to day, and what initiatives can they take to be on the leading edge?” Hendler said. “This is an opportunity to get in front of something you won’t have to catch up on later.”

“Sustainability is a bucket of profitability shops can look into,” Morley said. “It’s not as scary and regulatory as it may seem. This is about doing good business, and staying on top of efficiency.”

Morley went over environmental, societal and governance (ESG) components of sustainability.

Environmental Components “We hear a lot about carbon neutrality,” Morley said. “States are trying to get to carbon-zero, moving away from ICE vehicles.”

However, few shop owners have analyzed their own carbon footprint, in terms of things like materials used and equipment efficiency. Morley recommended keeping a closer eye on the use and potential waste of consumables like sandpaper and tape, and either upgrading equipment to newer, more efficient technology or keeping up on routine maintenance of what the shop already has.

“It’s better for your bottom line because you save money on utilities and also get better production,” he said.

Simple steps like switching to LED light bulbs and considering solar panels can save money and reduce environmental impact, Morley said, but every business owner needs to evaluate which strategies make sense for their individual situation.

Morley also highlighted the potential environmental impact of incidents like EV thermal events. It can take 40,000 gallons of water to put out an EV battery fire, and anything on the shop floor, like oil, can be swept up into the runoff. He recommended keeping shop floors clean, as regulatory agencies like the EPA scrutinize such events, focusing

on their environmental implications and future prevention measures.

The conversation shifted to recycled parts. Morley said he has spoken to insurer carriers for their perspective, and he expects to see a

tendency to repair parts when possible rather than replacing them, as a green initiative. The integrity of recycled parts remains a topic of discussion. He noted the importance of supply chain transparency and material integrity.

“Yes it’s greener [to use a recycled part], but we also have to look at OEMs’ position on repairs,” Morley said.

“There’s a strict chain of command so you know the integrity of that piece when it goes on a vehicle.”

Despite these challenges, Morley sees opportunities for partnerships between OEMs and sophisticated recyclers.

On a global level, several countries, particularly in Europe, have much more stringent regulations in place than in the U.S. Those regulations can drive advancements, Morley said, noting Nordic countries moved to ban sales of new ICE vehicles years ago, something the U.S. is working toward.

However, he said, when applied too quickly or forcefully, regulations can squelch innovation. For instance, alternative fuels, like synthetic gas, could be used to run ICE vehicles, rather than banning the engines altogether.

“We have to balance it out,” Morley said. “It’s easy to make advancements with regulations, but you also stifle innovation a little bit when you go too fast.”

Societal Components There is a lot of conversation throughout the industry about the technician shortage, Morley said, and how to engage younger people and different demographics .

Sustainability studies have shown

40 NOVEMBER 2023 AUTOBODY NEWS / autobodynews.com

that when a repair shop has a defined career path for new hires, it is likely to outperform its profitability objectives by 21%, Morley said. On the flip side, the average three-month vacancy can cost a shop $107,000 to $160,000.

The key is to not just find new employees, but keep them, by offering a workplace they enjoy, and help them develop in their careers.

“Are we prepared to facilitate a good workplace where they want to stay and grow?” Morley said. “I think it pays off.”

Governance Components Finally, governance is not just data privacy, Morley said, but whether or not “what you present on paper is the story you’re living.”

“Make sure your actions follow the mission statements and policies you put in place,” he said, noting those policies could be on anything from smoking to anti-harassment. “If you say you’re going to do something, make sure you’re doing it.”

Conclusion: A Greener Road Ahead In conclusion, Morley encouraged repair shops to embrace sustainability as an opportunity rather than a regulatory burden. He emphasized that sustainability aligns with good business practices, contributes to efficiency, and can even boost profitability. As the automotive industry continues to evolve, embracing sustainability will be essential to stay ahead of the curve.

He encouraged shop owners to seek guidance from a company like DEKRA, which does testing, inspection and certification for anyone involved in the automotive supply chain, including OEMs, parts suppliers and MSOs. View the complete presentation at airprodiagnostics.com/techtalk360/

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The Collision Vision(aries): 6 Months Into Autobody News’ Podcast

By Cole Strandberg Autobody News

In the realm of collision repair, the past six months have marked a compelling journey for The Collision Vision. As the host of Autobody News’ weekly podcast dedicated to the business side of the collision repair industry, I’ve had the distinct privilege of connecting with industry trailblazers who have cast a penetrating light on the road ahead.

Join me as we reflect on the past, navigate the present and peer into the exciting future of the collision repair industry.

A Decade of Remarkable Transformation Over the past decade, the collision repair landscape has undergone a dramatic evolution. From the surges of consolidation and the infusion of sci-fi-worthy vehicle technologies to the escalated significance of OEM certifications and the persistent challenge of recruiting skilled technicians, our industry has witnessed a remarkable evolution. How has your business performed throughout this period of evolution? And how are you feeling about the future?

Navigating the Persistent Talent Shortage A recurring theme throughout The Collision Vision has been the industrywide talent shortage—a challenge that transcends the boundaries of single shops, regional and national MSOs, and even vendors in the collision space.

While this issue may intensify before it gets better, industry thought leaders have presented some seemingly attainable solutions.

Mike Anderson, a revered figure in the industry and a three-time guest on The Collision Vision, has stood at the forefront of addressing the technician shortage. Mike’s perspective is clear: as a shop owner, you have the power to enact change at the micro level.

Need technicians? Consider expanding your talent pool. Struggling to find skilled workers? Be prepared to offer competitive compensation. If your pay scale falls behind local businesses, much less global business powers, attracting top talent will remain a challenge.

Dave Luehr, another industry thought leader, echoes this sentiment, emphasizing personal responsibility in overcoming the technician shortage.

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the example of Thomas Goforth at Absolute Collision in North Carolina, who proactively engages with local trade schools, organizing events and supporting the establishment of new educational institutions. While powerful players within the industry are diligently working on this issue on a broader scale, the immediate responsibility falls on individual businesses.

Charting the Course for the Bright Future Some of the most exhilarating conversations we’ve had on The Collision Vision have revolved around the future of collision repair. Electric vehicle collision leaders like Kelly Logan and Jake Rodenroth, who lead collision repair programs at Rivian and Lucid, respectively, have shared their perspectives on what lies ahead. The outlook is undeniably bright.

Success in the future of collision repair may not come easily, but for those willing to invest in training, equipment and scaling their operations, prosperity awaits. For those with limited resources or a shorter time horizon to attain that return on investment, there remains good news: the market for consolidation and mergers and acquisitions remains robust for body

shops. Private equity firms actively seek platform investments, while existing consolidators, both national and regional, are in pursuit of add-on acquisitions, each with its own unique flavor. For those reasons, another industry icon, Frank Terlep, and I share a favorite saying in the industry: There has never been a better time to be a business owner in the collision repair industry.

What Lies Ahead for The Collision Vision?

The Collision Vision is more than just a podcast; it’s an invaluable resource for the collision repair industry. Alongside our distinguished guests, we’ve delved into a wide range of topics, from marketing and growth strategies and new-store development to the intricacies of OEM certifications and financial planning. These insightful conversations are readily available for your perusal at www.autobodynews. com/podcasts.html.

The journey continues, and I’m excited to see what the future holds for the collision repair industry and The Collision Vision. As we celebrate our first six months, the road ahead promises to be as enlightening and transformative as ever.

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Autel Releases ADAS Calibration Updates

SCRS Announces Focus of OEM Summit Session II The Society of Collision Repair Specialists (SCRS) announced the topic of the second of three sessions in its OEM Collision Repair Technology Summit, taking place Nov. 2 in the Las Vegas Convention Center as part of the 2023 SEMA Show.

Join the collision industry from 11 a.m.–12:30 p.m. for Session II: North American Automotive Material Outlook and Implications to Collision Repair. The session will be led

by Abey Abraham, principal or automotive and materials, and Bertrand Rakoto, director of strategic intelligence, both with Ducker Carlisle.

The Ducker Carlisle team will outline research on the expected metallic and nonmetallic material strategies that collision repair facilities will encounter.

As the fleet sees an increased transition from ICE vehicles to EVs and other alternate fuels, there are dynamic changes in the material makeup of vehicles including more advanced grades of steel, various types

of aluminum, magnesium and composites that the collision repair industry will need to contend with.

Following the presentation, Abraham and Rakoto will introduce Dan Black, senior manager of service engineeringcollision at Rivian, and Matthew Pitta, body repair technical manager at Lucid Motors, to discuss material selections in their models, and important details the industry will need to understand when repairing those vehicles.

SCRS previously announced the first session, from 9–10:30 a.m.: Understanding OEM Insurance, featuring presentations from Andrew Rose, president of OnStar Insurance, Mike Slattery, head of insurance for Rivian, and Rob Spencer, president of Toyota Insurance and vice president of Toyota Motor Credit Corporation (TMCC).

The presenters will provide a deep dive into the emerging world of OEM insurance programs, insurance products

designed and underwritten to deliver unique coverage to complement their vehicles and positively impact the consumer experience during the claims and repair process.

The OEM Summit offers attendees the opportunity to learn how vehicles, materials, technologies and trends are evolving in ways that will impact repair processes and repair businesses, and is made possible with additional support from AirPro Diagnostics, BASF Automotive Refinish, Car-OLiner, CCC Intelligent Solutions, Enterprise Rent-A-Car, Reliable Automotive Equipment Inc., Toyota Motor North America and SEMA. Visit https://bit.ly/ RDE2023 to register for Repairer Driven Education sessions, or use the SEMA Map Your Show sit to explore all available courses in the SCRS Repairer Driven Education (RDE) track.

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Autel has released another round of 2023-24 vehicle models ADAS calibration coverage software, providing ADAS calibration coverage for the most common systems on many Audi, GM, Porsche, Hyundai/Kia, Mitsubishi, Nissan and Stellantis models to all MaxiSYS tablet owners, MS906 Pro and higher, with active ADAS calibration software subscriptions.

Autel also announced at Auto Glass Week in Virginia Beach, VA, it is taking pre-orders for its new Subaru wide-angle mono camera calibration target set.

Specific trim lines of Subaru Outback, Ascent, Legacy and Crosstrek vehicles feature a wide-angle mono camera designed to work with the Eyesight system to recognize pedestrians and bicycles entering the roadway from the sides. The Subaru target set is compatible with all ADAS calibration frame systems.

Find information by visiting the ADAS Calibration Guide at Autel.com.

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autobodynews.com / AUTOBODY NEWS NOVEMBER 2023 43

Widespread Autonomous Vehicle Adoption At Least a Decade Away A world of self-driving vehicles and mobility-on-demand is likely to exist eventually, but for the next decade, widespread implementation of autonomous technology will not be realized, according to a new forecast from S&P Global Mobility, released Sept. 25.

The report reflects findings from robust model-level forecasting that autonomous vehicle expectations have not been fulfilled and still face more headwinds—affording significant opportunity and scale to automated driving implementations in the interim.

For the next decade, autonomous tech will be limited to two specific areas: geofenced robotaxis operated by fleets in specific areas, and handsoff systems with various safeguards in personal vehicles that will still require some form of driver engagement.

The latest forecast from S&P Global Mobility said Level 5 Autonomy—a vehicle that can go anywhere and do everything a human driver can”—will not be publicly available before 2035, “and probably for some time after that,” said Jeremy Carlson, associate director for the autonomy practice at S&P Global Mobility. “But the outlook for more targeted implementations of the same fundamental technologies, especially in Level 2+ and Level 3 but also for some forms of Level 4, is more positive and will certainly happen on a much shorter timeline.”

This latest outlook from S&P Global Mobility reflects the headwinds and slower pace of development that both the automotive and tech industries have demonstrated over the past several years. It paints a stark contrast to the optimism of just five years ago, when the world was swept up in the promise and excitement of a future of self-driving vehicles in Levels 4 and 5.

Automated—rather than autonomous —driving continues to be the focus of industry development. Today’s broad deployments of Level 2+ and Level 3 systems by many automakers in multiple regions will reach at least 31% of new vehicle sales globally by 2035, according to the forecast. L2+ and L3 allow the driver to be hands-off while supervising, or to disengage entirely in specific driving scenarios, such as in Super Cruise by General Motors and Drive Pilot by Mercedes-Benz, respectively.

“There is immense opportunity for automated driving systems in L2+ and L3, and they are benefiting from the standardization of basic safety features which provide a foundation of in-vehicle architecture, sensing and compute,” Carlson said. “Their functionality also complements driving today rather than fully replacing

the driver, making consumer adoption less of a challenge. The next several years of wider deployment across brands and vehicle platforms will be a boon for automakers selling these optional features as well as suppliers who continue to build scale and a strong foundation for the future.”

L4 Technology Slow to Develop in Personal Vehicles The S&P Global Mobility forecast predicts fewer than 6% of light vehicles sold in 2035 will have any Level 4 functionality, as described by the SAE J3016 classification. Early L4 implementations in personally-owned vehicles offer advanced parking functions, often with the support of infrastructure. But many technology providers remain focused on the longterm potential of scaling autonomous vehicles in fleets supporting MaaS business models.

There are positive examples of autonomous vehicles performing as well as humans in today’s pilot programs in places like San Francisco, CA, and Phoenix, AZ, in the U.S., and Beijing, Shanghai and Guangzhou in Mainland China. But these same vehicles can still be confounded by complex traffic scenarios the next minute or the next day, giving regulators and consumers alike reason to be cautious.

Mobility-as-a-Service (MaaS) and robotaxis are nonetheless expected to lead the transition to an autonomous vehicle future, even with the relatively cautious growth ahead. There are growing numbers of small-scale deployments in certain cities around the world. But S&P Global Mobility forecasters do not expect that to become widespread and broadly accessible within the next decade.

MaaS-equipped vehicles and robotaxi applications are expected to represent less than 800,000 vehicles sold globally in 2035. Robotaxis will be carefully geofenced for the foreseeable future—offering revenue service only within specific areas where they have already been extensively tested, Carlson predicted.

But their high rate of use can be nonetheless effective at bringing new mobility options to some consumers and new revenue streams to automakers and mobility providers.

Owen Chen, senior principal analyst from S&P Global Mobility, said robotaxi development and commercialization is a complex and multi-stage process which can be summarized in three stages. First, technical feasibility demonstrations confirm robotaxis can operate safely and reliably in the targeted conditions.

Second, the long process of

44 NOVEMBER 2023 AUTOBODY NEWS / autobodynews.com

technology optimization, integration and refining vehicle design eventually brings scale to manufacturing and deployment. Third is the efficient expansion to many new locations and operating conditions, with profit on top of revenue from meaningful adoption by consumers.

“In 2023, many are working through stage 1 while several are seeking scale in stage 2, led by Mainland China and the U.S.,” Chen said. “But the opportunity to restructure personal and shared mobility exists.”

In August, the California Public Utility Commission approved an expansion of operations in San Francisco for Waymo and Cruise.

Mainland Chinese regulators are also enabling providers like Baidu Apollo, Pony AI, WeRide and more to test or operate paid services in parts of many major Chinese cities. Europe is also actively developing regulations to help bring some uniformity to such vehicles and services across the region.

While the U.S. captured an early lead in both development and deployment of L4 MaaS, Mainland China is expected to contribute the greatest volumes long-term, followed by the U.S. and Europe in that order, according to S&P Global Mobility.

Challenges nonetheless remain for

successful and widespread deployment of L4 MaaS. In addition to a fragmented regulatory landscape and relatively low public trust that may hamper consumer acceptance and adoption, the cost of technology and the time needed for robust development and validation of hardware and software have quashed the optimism that defined much of the last decade.

Reduced complexity in L2+ and L3 features face less risk or uncertainty for each of these factors, hence the more positive outlook for those technologies in the short term. This optimism is further boosted as some regulators are also mandating certain basic safety assistance features that will generate even wider exposure for selective automation.

Automakers, suppliers, technology companies and mobility providers alike, however, remain committed to a future of safe and equitable autonomous mobility, even if it takes more time to get there.

“There’s plenty of opportunity and growth ahead,” says Carlson.

“Significant volumes measured in the hundreds of thousands per year are quite likely to come before 2030—but a future of shared mobility everywhere all the time will remain an aspiration for the industry.”

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autobodynews.com / AUTOBODY NEWS NOVEMBER 2023 45

U.S. Auto Insurer Claim Payouts Soar Due To Increasing Inflation U.S. personal and commercial auto insurer liability claim payouts combined were $96 billion to $105 billion higher between 2013 and 2022 because of social and economic inflation, according to a news release from the Insurance Information Institute (Triple-I).

“For personal auto liability insurance, increasing inflation drove loss and DCC (defense containment costs) higher by $61 billion,” according to Triple-I’s study, Impact of Increasing Inflation on Personal and Commercial Auto Liability Insurance. “For the same period (2013-2022), increasing inflation drove commercial auto liability loss and DCC higher by $35 billion to $44 billion.”

Liability insurance covers what the policyholder is legally obligated to pay because of bodily injury or property damage. Every state except New Hampshire requires its drivers to carry a personal auto insurance policy, with mandatory minimum amounts of liability coverage, to operate a vehicle.

Commercial auto insurance liability policies are commonly bought by small businesses and corporations to cover trucks and other vehicles used

for commercial purposes, such as limousines and taxis.

The study was researched and written by Jim Lynch, FCAS, MAAA, Triple-I’s former chief actuary; Dave Moore, FCAS, MAAA, president, Moore Actuarial Consulting LLC; and Dale Porfilio, FCAS, MAAA, Triple-I’s chief insurance officer. The research methodology compares the latest loss development patterns to a baseline assumption without social inflation and with stable inflation rates.

Economic inflation is measured in the study as the Consumer Price Index (CPI), a U.S. Bureau of Labor Statistics benchmark, whereas social inflation indicates how insurer claim payouts exceed the CPI. “The business of personal auto liability insurance is also many times larger than commercial auto. Personal auto liability had $152.6 billion in net earned premiums in 2022, four times as much as commercial auto liability,” the study said. Yet personal auto policyholders typically have $100,000 or less in liability coverage, while a typical commercial policyholder has a coverage limit of $1 million, the study explained.

Supported by detailed analyses of claims payouts dating back years, the study concluded that, for personal auto liability insurers: • •

•

Losses have been growing faster than premiums in recent years Since 2020, standardized losses rose 15% while standardized premium fell 13% Severity, the size of losses, increased dramatically after 2019

The study concluded that commercial auto liability insurers saw: • Losses grow faster than the overall economy • Social inflation as a primary influence on these losses prior to 2021 • The average size of loss—claim severity—increase dramatically since 2020 “For both personal and commercial auto liability lines, social inflation was the main source of increasing inflation before 2021.

For 2021 and later, increasing inflation came from a combination of economic inflation and social inflation,” the study said.

CAPA Integrates Tracker Into Mobile App The Certified Automotive Parts Association (CAPA) announced the expansion of its CAPA mobile app, integrating the CAPA Tracker. Users will now be able to enter part information into the CAPA Tracker seamlessly through the CAPA app, without interrupting a repair to input information via computer into the CAPA website.

The CAPA Tracker closes an information gap and provides visibility throughout the supply and repair chain from manufacturer to distributor to repairer to consumer.

The app provides two options to input part information: users can type in the unique CAPA Seal number into the CAPA Tracker or simply scan the CAPA Quality Seal on the part using the phone’s camera, which will automatically populate part information into the form.

The updated CAPA app is now live and can be downloaded for free from Apple’s App Store and the Google Play store.

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autobodynews.com / AUTOBODY NEWS NOVEMBER 2023 47

Auto Parts Suppliers Brace For Effects of UAW Strike

By Autobody News Staff

News 5 Cleveland he is “bracing for the next hit” as more plants like As the United Auto Workers’ strike Stellantis’ parts distribution center against the Detroit Three stretches in Streetsboro, OH, go on strike. into its second week, auto parts Juscelino Colares, a business suppliers are being forced to law professor at Case Western respond as demand wanes at new Reserve University, told the news vehicle production plants—but the outlet dealerships and repair shops effects are also trickling down to should stock up on parts, and collision repair shops. vehicle owners should get needed repairs done now before shortages start to materialize.

Tim O’Day, president and CEO of Boyd Group Services Inc., on Oct. 3 commented on the potential impact of the strike.

“To date, the strike has not impacted our Members of UAW Local 2177 in Langhorne, PA, participate in the strike, in these photos posted Sept. 27 ability to source parts to the UAW International Union Facebook page required to complete collision repairs; Auto body repair shops still however, should the strike continue dealing with lingering supply chain for an extended period of time, it issues caused by the pandemic is possible that parts supply from in 2020 might see the situation General Motors, Stellantis and Ford exacerbated by a prolonged strike. could be disrupted in a way that In Cleveland, OH, William could have a material impact on our Worley, owner of Piney’s Auto future results,” O’Day said.

Repair and Customer toldbleed) “Leading up to this, many of QuarterService, Page (no | 4˝ x 5˝

our supplier partners increased their inventory levels to mitigate disruptions to supply. In the event of an extended strike, based on information available to date, a number of actions could be taken to reduce the impact of the supply chain disruption so that some repairs for the impacted vehicles could continue; however, many repairs could be suspended until parts become available,” O’Day added.

In Michigan, WXYZ News reported some shop owners are using third-party parts suppliers and junk yards to fill in the gaps when OEM parts aren’t available.

Dave Keene, manager of Kesho Collision in Warren, MI, told the news station his shop was “in a relatively good place for parts” as of Sept. 25, but if the strike continues for a few weeks, customers might have to wait a lot longer for a repair.

“That car’s just gonna sit until those parts are available. That could be months,” Keene said.

In Cincinnati, OH, Charlie Smith, a technician at Smith Muffler, told WLWT5 News the shop, owned by his father, sees the strike as a

Sometimes, “slow and steady” just isn’t an option

possible boon.

“We weren’t getting nervous because if automakers are going on strike, alright, people aren’t going to want to buy a new car cause they’re skeptical. They’re going to want to keep their car. And that’s when we come in to play to help them maintain that older car,” Smith said.

CNBC reported about 5,600 smaller parts suppliers, employing a total of 871,000 workers, mostly in the Midwest, may need to lay off workers if the strike continues for more than a few weeks. Some have already announced plans to do so.

The Detroit Free Press reported Wixom, MI-based Eagle Industries, Inc., a parts supplier, told state officials it may need to lay off 171 plant workers, production and administration employees—though President John Bull said the paperwork was “precautionary,” and any layoffs would likely affect 55 to 60 employees.

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CCC, Google Enable Online Appointments CCC Intelligent Solutions Inc. has teamed up with Google to streamline the online appointment booking process for repair shops that use CCC® Engage.

The collaboration introduces a user-friendly “Book Online” button added to Google Business Profiles, Search and Maps, helping participating repair shops stand out in search results and making it easier for consumers to schedule repair appointments.

The new “Book Online” button is now live on the Google Business Profiles of repair shops with subscriptions to CCC Engage, a CCC ONE® solution that drives digital traffic to repair shops. The button seamlessly directs consumers to schedule appointments through Carwise, CCC’s online platform that helps consumers find local collision repairers. Carwise integrates with CCC Engage to provide real-time access to repairers’ calendars.

The CCC ONE platform improves every stage and level of the collision repair cycle, including the consumer experience.

Honda’s First All-Electric SUV Set To Debut Early 2024 The 2024 Honda Prologue, the brand’s first all-electric SUV, will open pre-sale activities later this year and make its first deliveries in early 2024, Honda said in a news release.

The Prologue will be available nationwide with prices expected to start in the upper $40,000s, before government incentives or tax credits.

The Prologue is a “spacious, adventure-ready midsize SUV,” according to Honda, with an anticipated EPA range rating of 300 miles and DC fast charging capability.

“The arrival of the all-new Honda Prologue is a pivotal moment for the brand as Honda begins the transition to our zeroemissions future,” said Lance Woelfer, assistant vice president of Honda National Auto Sales, American Honda Motor Co., Inc. “Prologue is aptly named as our first volume Honda EV, a stylish, sporty and spacious SUV that will take us toward our vision of 100% zero emissions vehicle sales by 2040.”

Honda said the Prologue will

be built on a state-of-the-art EV platform and multi-link front and rear suspensions, and will be available in both single-motor (front-wheel-drive) and dual-motor (all-wheel-drive) configurations with three trim levels—EX, Touring and Elite.

Standard features will include the latest digital services technology and features with Google built-in, and wireless Apple CarPlay and Android Auto™ compatibility.

Targeting IIHS Top Safety Pick+ and NHTSA 5-star ratings, the Prologue will come standard with the Honda Sensing® suite of safety and driver-

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assistive technologies, including Honda’s first applications of Rear Cross Traffic Braking, Blind Zone Steering Assist and Rear Pedestrian Alert.

Customers interested in the new Prologue can find more information and sign up for updates at automobiles.honda. com/future-cars/prologue.

Honda also announced it reached agreements with EVgo and Electrify America, plus roaming network partners, to give its EV drivers access to more of the largest charging networks in North America.

These agreements are in addition to the recent announcement that Honda will adopt the NACS charging standard to gain access to Tesla’s Supercharger network, and that Honda established a joint venture with six other automakers to create a high powered charging network. Honda and Acura EV customers will be able to use the majority of public DC fast chargers starting in 2024 and can anticipate having around 100,000 DC charge points available to them by 2030.

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SEMA Show Exhibit To Highlight Future Vehicle Propulsion Technology

Federal Rebates on ‘Clean’ Vehicles To Be Given At Purchase in 2024

The SEMA FutureTech Studio, a new exhibit at the 2023 SEMA Show, will give attendees at the world’s leading automotive trade show an opportunity to learn about what the future of vehicle propulsion may look like, SEMA announced Sept. 27. Located in Central Hall, the SEMA FutureTech Studio will be part of the new EV & Future Propulsion section that evolved from the popular SEMA Electrified exhibit at recent shows.

“The automotive aftermarket has always been at the forefront of vehicle innovation and technology, and this new section will help showcase how our industry is leading the wayin the creation of new engine and fuel options,” said Tom Gattuso, SEMA vice president of events. “The FutureTech Studio is a visionary space designed to inspire and support innovation across all segments and vehicles.” Through various spotlights and showcases, the new immersive environment will feature parts and equipment that cater to the new technology, as well as vehicles that will highlight how

Beginning Jan. 1 2024, people who buy qualifying new and used “clean” vehicles will be able to effectively receive federal rebates when they buy it, rather than waiting for a rebate on the following year’s tax return.

The U.S. Department of the Treasury released guidance Oct. 6 on how customers will be able to transfer their Inflation Reduction Act (IRA) clean vehicle credits—up to $7,500 for a new vehicle and up to $4,000 for used—to the dealership, which will then credit it to the purchase price.

Researchers have found consumers overwhelmingly prefer an immediate rebate, rather than a tax credit.

“President Biden’s Investing in America agenda is focused on lowering transportation costs for consumers and giving American car companies the tools to lead the market,” said Laurel

Blatchford, chief implementation officer for the IRA. “For the first time, the Inflation Reduction Act allows consumers to reduce the up-front cost of a clean vehicle, expanding consumer choices and helping car dealers expand their businesses. The IRS has focused on streamlining this process for car dealers as part of its commitment to improving service and helping taxpayers claim the credits they are eligible for.”

Later in October, dealers will be able to register via IRS Energy Credits Online, a new website. In January, they will use the website to submit clean vehicle sales information to receive payment for customers’ transferred credits. Dealers must register with Energy Credits Online for customers to be eligible to transfer their credits.

Customers must meet income requirements to be eligible to transfer the credit.

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UPDATED DAILY

these are employed. The exhibit will also include a SEMA Education stage, named FutureTech LIVE, where industry leaders will discuss different propulsion technology, including EV, hybrid, hydrogen, alternative fuels and other advancements in technology.

Additionally, the new EV & Future Propulsion area will include more than 15 exhibitor booths showcasing parts and tools that cater to this emerging technology and more than 75 vehicles will help highlight the future of automotive innovation.

“The FutureTech Studio will help attendees understand what’s happening in the industry and how the industry is already pushing the creative envelope with new innovations, parts and services,” said Luis Morales, SEMA director of vehicle technology. “The EV & Future Propulsion section embodies our commitment to featuring the latest and future trends at the SEMA Show, and it is a testament to SEMA’s dedication to helping the community remain at the forefront of technological advancements.”

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Political Rivals Biden, Trump Enter Into UAW Strike Discussion

By Andrew Hensel The Center Square

The strike continues for United Auto Workers union members as President Joe Biden and former President Donald Trump weigh in.

The strike has reached 30 General Motor plants scattered across the nation, including two Illinois plants in Naperville and Bolingbrook. So far, nearly 19,000 workers have joined the strike.

The strike is against the three major auto companies: Ford, Stellantis and General Motors.

The UAW initially sought wage increases of as much as 46% over four years, cost-of-living adjustments, pensions and retiree health care for all workers and a 32-hour work week paid as 40 hours, including the 46% pay hike.

On Sept. 26 in Michigan, Biden spoke with union leaders, becoming the first sitting president to join striking workers, and offered his support.

“You gave up a lot when these companies were in trouble. Now they’re doing incredibly well. And

guess what? You should be doing incredibly well, too,” Biden said.

The Biden visit comes one day before Trump travels to Michigan to meet with workers.

“With Biden, it doesn’t matter what hourly wages they get, in three years there will be no autoworker jobs as they will all come out of China and other countries,” Trump said in a statement.

Biden’s Inflation Reduction Act adds and expands tax credits for purchases of new and used electric vehicles for American drivers. Trump said Biden does not care what these workers make because he does not view them as a part of his political future.

“Crooked Joe should be ashamed to show his face before these hardworking Americans he is stabbing in the back,” Trump said.

Mark Mix, president of the National Right to Work Committee, spoke about the relationship between United Auto Workers Union President Shawn Fain and Democratic leaders. Mix said Fain will have a difficult time

getting his workers to support Biden.

“He’s got to come out of this with a union that will continue to support Democrat political candidates who are literally driving United Auto Worker members out of their jobs by a cram down of electric vehicles,” Mix told The Center Square.

The UAW posted this photo to its Facebook page, showing President Joe Biden, right, and UAW President Shawn Fain, left, with UAW members Sept. 26

Mix said the Biden visit shows the importance of having these auto workers on his side come election time.

“He’s got to have the United Auto Workers union and the rest of big labor, and I mean the union officials, not the rank and file workers, on his team as he heads into 2024,” Mix said.

Trump’s visit is planned for Sept. 27, but he released a statement following Biden’s Michigan trip.

“Joe Biden’s draconian and indefensible Electric Vehicle mandate will annihilate the U.S. auto industry and cost countless thousands of autoworkers their jobs. The only thing Biden could say today that would help the striking autoworkers is to announce the immediate termination of his ridiculous mandate,” Trump said. “Anything else is just a feeble and insulting attempt to distract American labor from this vicious Biden betrayal.”

The UAW contract expired Sept.

14. The big three manufacturers make up 50% of all vehicles manufactured in the U.S. So far, Ohio, Michigan, Missouri and Illinois have workers who have joined the strike.

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52 NOVEMBER 2023 AUTOBODY NEWS / autobodynews.com

CIF Announces Repeat Annual Donors

Average EV Prices Plummet As Oversupply Concerns Grow

By Suvrat Kothari InsideEVs

The consistently falling prices of electric vehicles over the past year could be an encouraging and worrying sign in equal measure. Largely influenced by Tesla’s price cuts, EV prices fell sharply month-over-month and year-over-year, according to Cox Automotive’s latest data.

In July, the average price Americans paid for a new EV was $53,633. In August, the price fell by $257 to $53,376. That’s a remarkable 18.7% lower than the average transaction price of $65,688 in August a year ago.

The effective prices could be even lower after factoring in federal and state incentives.

Franchised auto dealers have a diminishing outlook for EV sales in the short term, said Cox Automotive Chief Economist Jonathan Smoke. The dealers are reportedly feeling pressure from oversupply concerns rather than lack of demand.

Tesla has a direct-to-consumer modus operandi, so the dealers’

declining expectations are concerning non-Tesla EVs, whose sales are growing but not on a particularly steep curve. It’s a “natural speed bump and an expected part of growth,” wrote Smoke.

The economist forecasted surplus inventory and increased competition could lead to further reduction in prices, and will positively impact buyers considering EV adoption.

Moreover, manufacturer incentives have also peaked over the last 12 months, now standing at $2,365, which can help boost EV adoption further.

Tesla’s impact on this trend is a truism. The brand witnessed 390,377 new registrations in the U.S. in the first seven months of 2023, and it is enjoying a nearly 60% EV market share. Chevrolet is second with a 6% market share followed by Ford at 5.2%.

The Elon Musk-led brand has disrupted the EV space with multiple price cuts worldwide over the past 12 months. The latest cuts took effect in August, with inventory discounts of up

to $5,500 on the Model 3 Long Range, as the brand prepares to make room for its incoming facelifted version.

In fact, the average transaction price of a Tesla has declined by 19.5% over the last 12 months, falling from $68,233 a year ago to $54,943 in August.

Meanwhile, hybrid and alternative fuel vehicles have witnessed a contrasting trend.

The average price of a hybrid car increased by 18.1%, from $33,555 in August 2022 to $39,624 in August 2023. Despite that, hybrids continue to be considerably more affordable than pure EVs.

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The Collision Industry Foundation (CIF) is delighted asTech and Enterprise have committed again to the CIF Annual Donor Program, their third and consecutive donations at the Urgent Care (second highest) tier, respectively.

Introduced in 2021, the Annual Donor Program was designed to bring needed recurring resources to the foundation, so it can deliver on its mission to “Answer the Call” when those in the industry have been impacted by catastrophic events such as wildfires, hurricanes, flooding or COVID. For more than two decades through the generous support of corporations and individuals, CIF has been able to assist hundreds of collision repair professionals in need after disaster.

CIF is grateful for asTech’s and Enterprise’s continued support of the Annual Donor Program, which will enable CIF to continue its work for disaster relief assistance.

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Owners of 3.3M Kia, Hyundai Vehicles Told To Park Outside Due To Fire Risk Co-President & Publisher Nathan Gregory

Accounting & HR Manager Heather Priddy

Co-President & Publisher Paul Stepanek

Permissions Editor Randi Scholtes

Editor Abby Andrews Contributing Writers Mike Anderson, Stacey Phillips, Cole Strandberg, John Yoswick Advertising Sales Joe Momber, Norman Morano, Steve Sklenar Office Manager Kelly Cashman Digital Marketing Manager Bryan Malinski Art Director Rodolfo Garcia Senior Designer Vicki Sitarz

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. ©2023 Autobody News, LLC. Autobody News P.O. Box 1516 Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

Hyundai Motor America and Kia America have issued “park outside” recalls for more than 3.3 million vehicles due to the risk of fire, the National Highway Traffic Safety Administration announced Sept.

27. The vehicles’ anti-lock brake system module could leak brake fluid internally and cause an electrical short. An electrical short could result in significant overcurrent in the ABS module, increasing the risk of an engine compartment fire while driving or parked. Hyundai plans to notify owners to bring their vehicles to the nearest dealership to replace the ABS module fuse. Kia is still working on a remedy.

Until these recalled vehicles have been repaired, the manufacturers say the safest place to park them is outside and away from homes and other structures. Fires can occur whether the vehicle is parked and turned off or while driving. The recall includes about 1.64 million select Hyundai and Genesis vehicles: 20122015 Accent, 2012-2015 Azera, 2011-2015 Elantra, 2013-2015 Elantra Coupe, 2014-2015 Equus, 2011-2015 Genesis Coupe, 2013-

2015 Santa Fe, 2013 Santa Fe Sport, 2011-2015 Sonata HEV, 2010-2013 Tucson, 2015 Tucson Fuel Cell, 2012-2015 Veloster and 2010-2012 Veracruz.

About 1.73 million select Kia vehicles are also affected: 20142016 Cadenza, 2011-2013 Forte/ Forte Koup, 2015-2017 K900, 20102015 Optima, 2011-2013 Optima Hybrid, 2011-2017 Rio, 2010 Rondo, 2011-2014 Sorento, 2011-2013 Soul and 2010-2013 Sportage. To date, Hyundai and Kia do not know of any crashes, injuries or fatalities associated with this defect. Hyundai said there have been 21 related vehicle fires in the U.S. as well as 22 thermal incidents, including visible smoke, burning and melting. Kia knows of one engine compartment fire, three fires in the unit, and six instances of melting components.

Vehicle owners can visit NHTSA. gov/recalls and enter their 17-digit vehicle identification number to see if their vehicle is under recall. If it is, vehicle owners should call their nearest dealership immediately to schedule a free repair when a repair is available.

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First Production Lucid Air Sapphires Roll Off Assembly Line

By Maria Merano

via X of a Lucid Air Sapphire release candidate on the line at Casa Grande. In August, Lucid On Sept. 29, Lucid Motors shared released the official specs of the on X a snapshot of the first halo car. production Lucid Air Sapphire The $249,000 Lucid Air super sedan going through the Sapphire is expected to be the ADAS system calibration in its world’s first fully electric luxury AMP-1 manufacturing facility super-sports sedan. Lucid noted in Casa Grande, AZ. The EV the EV can achieve 0-60 mph in manufacturer added customer 1.89 seconds, making it faster deliveries will begin soon. than the Tesla Model S Plaid.

“Sapphire represents the pinnacle of electric performance, finally achieving the performance that I’ve so long searched for,” said CEO Peter Rawlinson. “After painstaking development work, I am able to confirm Lucid Air Sapphire has achieved a satisfactory performance, and I trust the Lucid Motors on Sept. 29 posted this most discerning drivers will photo to X, showing one of the first Lucid agree.”

Air Sapphires.

The Lucid Air Sapphire is a limited-production model Lucid Motors teased the Air to be available in the U.S. and Sapphire’s start of production in Canada. The Sapphire will start Arizona in the summer. In July, at $249,999 in the U.S. and the company shared a picture $325,000 in Canada.

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Is the Peak Price For Gas in the Rearview Mirror?

By Andrew Gross and Devin Gladden AAA

The national average for a gallon of gas hit what may be 2023’s peak price of $3.88 early in the week of Sept. 18, only to slide a few cents in the following days. The average as of Sept. 21 is $3.86—a penny more than a week ago.

“The recent drop in the national average, while small, is fairly typical this time of year as much of the country makes the switch to less expensive winter blend gasoline,” said Andrew Gross, AAA spokesperson.

“But the gradual seasonal decline in pump prices is being slowed by higher oil costs, hovering around $90 a barrel.”

According to new data from the Energy Information Administration (EIA), gas demand rose slightly from 8.31 to 8.41 million b/d over the week since Sept. 14. Meanwhile, total domestic gasoline stocks declined slightly from 220.3 to

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PPG To Invest $2 Million To Train Workers PPG and the PPG Foundation announced a commitment to invest $2 million through 2025 to support workforce development initiatives that provide training and opportunities for future skilled workers in manufacturing and coatings application.

The commitment aims to introduce students to the diverse and high-tech career paths within modern industry and provide them with educational opportunities to pursue fields such as advanced manufacturing, automotive collision repair, automotive refinishing and painting.

“We understand the importance of providing students with a hands-on, practical education that arms them with the advanced skills needed for career placements in technical and STEM- related fields,” said Malesia Dunn, executive director, PPG Foundation and corporate global social responsibility.

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219.5 million bbl. Higher gas demand, amid tighter supply, has contributed to elevated pump prices, but oil remaining above $90 per barrel continues to steer the price increases seen by drivers.

The Sept. 21 national average of $3.86 is the same as a month ago but 18 cents more than a year ago.

Since Sept. 14, these 10 states have seen the largest changes in their averages: Nevada (+33 cents), California (+29 cents), Georgia (+15 cents), Arizona (+14 cents), Iowa (+11 cents), Florida (+8 cents), North Dakota (+8 cents), Minnesota (+8 cents), Utah (+7 cents) and Oklahoma (+7 cents).

The nation’s top 10 most expensive markets: California ($5.79), Nevada ($5.06), Washington ($5.04), Hawaii ($4.83), Oregon ($4.68), Arizona ($4.65), Alaska ($4.60), Utah ($4.25), Montana ($4.19) and Idaho ($4.14).

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56 NOVEMBER 2023 AUTOBODY NEWS / autobodynews.com