January 2025 West Edition

AK / CA / HI / ID / MT / NV / OR / WA / WY

Insurer-Repairer Collaboration Important For Both To Make Customers Happy

By Stacey Phillips Ronak Autobody News

Vol. 43 / Issue 1 / January 2025 REGIONAL NEWS

Western State Shop Operators Saw Several New Laws in 2024, With More To Come

By Paul Hughes

An ongoing challenge in the collision industry is improving customer satisfaction and retention following a vehicle accident. In October, CCC Intelligent Solutions released findings from its Moments of Truth study, identifying the key drivers of customer satisfaction and retention in the auto insurance claims and repair process.

The study examined 47 “Moments of Truth” based on data from 2,400 policyholders who had been in an accident between August 2021 and December 2023 and completed the repair process as a first-party claimant.

The study was co-authored

by Maryling Yu, vice president of marketing at CCC Intelligent Solutions, and Dr. Ranjini Vaidyanathan, director of CCC’s data science team.

“The study sought to define the

Autobody News

critical points in time -- or moments of truth -- in which carriers and repairers must perform well to achieve a good outcome for customer satisfaction, and for carriers, customer retention,” explained Yu. Autobody News talked to Yu about the study and the implications for insurers and repairers. She will provide an in-depth analysis of the findings during a Dec. 5 CIECA Webinar.

What prompted CCC to conduct the Moments of Truth study?

Prior to joining CCC in 2023, I worked in the financial technology (fintech) sector.

Over my career, I have enjoyed sharing insight

California gets a lot of the attention and the public discussion when it comes to new legislation affecting body shops and collision centers — and with good reason. The most populous state is a bellwether for the nation, let alone its western swath of spacious skies and purple mountains, and it’s considered aggressive on legislative and regulatory fronts.

Yet it’s just one of nine states in Autobody News’ West region, along with Alaska, Hawaii, Idaho, Montana, Nevada, Oregon, Washington and Wyoming.

This 20% of the country is notable for having the most populous

“province” — California of course, with some 40 million people — and two of the three least-populated areas: Alaska and Wyoming, with fewer than 750,000 each. Idaho has only about 2 million and Nevada about 3 million in population, respectively.

Alaska and Hawaii are literally and figuratively outliers, one generally trending more to the political right, the other to the left. Washington and Oregon are solidly and geographically along the same lines as California, forming a Pacific Coast of lawmaking affecting the industry.

The region overall is strongly influenced by California, a big part of the country, and on the lawmaking move. l CONTINUED ON PAGE 5

REGIONAL NEWS

Classic Collision Adds New Location in Washington Classic Collision announced the acquisition of City Center Collision Services in Tumwater, WA. City Center Collision Services has provided exceptional auto body repairs in Thurston County and the surrounding areas for more than a decade. As a proud family-owned business, City Center Collision Services is dedicated to caring for every customer who visits their center.

“We take pride in our high-quality

l CONTINUED ON PAGE 28

collision repairs that exceed industry standards. I believe Classic Collision embodies these same values, and I

l CONTINUED ON PAGE 11

INSIDE THIS ISSUE 14

Mike Anderson: Collision Repairer Shares His Perspective on

8

Abby Andrews: SEMA Show Attendees Talk About What They Gained

PERMIT #288 ANAHEIM, CA

16

10

Negotiating with Insurers

to Address Challenges

Stacey Phillips Ronak: Red Carpet Awards Night Honors Those Who

Go Above and Beyond

John Yoswick: GM’s New Collision Assistance App Contacts Driver at Accident Scene, Helps Them Choose Repair Shop

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11/2/22 1:49 PM

NATIONAL Red Carpet Awards Night Honors

Index of Advertisers

Those Who Go Above and Beyond ��� 16

ACT Automotive Staffing ������������������������� 22

Kendall Subaru of Marysville ������������������� 15

Stacey Phillips Ronak

ADAS Calibration ������������������������������������� 19

Kia Downtown Los Angeles ��������������������� 35

American Chevrolet ��������������������������������� 25

Kia Motors Wholesale Parts Dealers ������� 33

Contacts Driver at Accident Scene,

Audi Wholesale Parts Dealers ����������������� 27

Kia of Carson ������������������������������������������� 24

SEMA Show Attendees Talk About What They Gained to Address Their Shops’ Biggest Challenges ���������������� 8 Abby Andrews

Helps Them Choose Repair Shop ����� 10

BMW Wholesale Parts Dealers ��������������� 35

Kia of Irvine ���������������������������������������������� 23

John Yoswick

Camp Chevrolet ��������������������������������������� 28

Lithia Honda of Medford �������������������������� 30

EV Collision Claims Rise as National Policy Changes Expected ������������������� 4 Brian Bradley

MSO Symposium Looks At Economic

Car Pros Kia ��������������������������������������������� 17

Mazda Wholesale Parts Dealers �������������� 30

Car Pros Kia Renton ��������������������������������� 36

Mercedes-Benz Wholesale Parts Dealers � 30

Certified Automotive Parts Association ��� 32

Michael Hohl Motor Company ����������������� 26

Chase Chevrolet �������������������������������������� 39

MINI of San Diego ����������������������������������� 29

Citrus Kia-Ford ����������������������������������������� 38

MINI Wholesale Parts Dealers ����������������� 35

Classifieds ����������������������������������������������� 38

MOPAR Wholesale Parts Dealers ������������ 29

Colortone Automotive Paints ������������������� 38

Niello Audi ����������������������������������������������� 39

Corwin Buick-GMC ���������������������������������� 32

Nissan/Infiniti Wholesale Parts Dealers ��� 31

Courtesy Chevrolet San Diego ������������������� 9

Porsche Wholesale Parts Dealers ������������ 29

Dublin Chevrolet �������������������������������������� 35

Roseville Kia �������������������������������������������� 34

Fairview Ford-Lincoln-Mercury ���������������� 10

Sandberg Volvo Cars ������������������������������� 15

FH Dailey Chevrolet ��������������������������������� 25

Santa Margarita Ford ������������������������������� 28

First Kia ���������������������������������������������������� 18

Santa Monica Audi ���������������������������������� 34

Ford Wholesale Parts Dealers ����������������� 34

Subaru Wholesale Parts Dealers ������������� 24

Future Nissan of Roseville ����������������������� 36

The Bay Area Automotive Group ��������������� 2

Galpin Motors �������������������������������������������� 7

TruckWriter Estimator �������������������������������� 5

Garden Grove Kia ������������������������������������� 23

US Auto Supply ��������������������������������������� 11

GM Wholesale Parts Dealers ������������������� 37

Volkswagen Pasadena ����������������������������� 17

Honda-Acura Wholesale Parts Dealers 20-21

Volkswagen Wholesale Parts Dealers ����� 29

Hyundai Wholesale Parts Dealers ����������� 35

Volvo Wholesale Parts Dealers ���������������� 26

BASF ‘Techs for Tomorrow’ Students Gain Experience, Make Connections at 2024 SEMA Show ���������������������������� 26 Abby Andrews Collision Repair Shops Should Leverage AI to Improve Customer Experience, Capture More Jobs ������� 18 Abby Andrews

‘Two Bites of the Apple’: Small MSO Sales Can Mean Double Rewards for Investors ����������������������������������������� 22 Elizabeth Crumbly Insurer-Repairer Collaboration Important for Both to Make Customers Happy ������������������������������������������������ 1 Stacey Phillips Ronak OEM Summit Explores Laser Welding Opportunities in Collision Repair ������� 6 Stacey Phillips Ronak 2025 WIN Conference Registration Open ������������������������������������������������������� 25 Allstate Sues Hyundai, Kia Over Fire Risk and Recalls ������������������������������������� 18

GM’s New Collision Assistance App

Forecast, Discussion of Customer Satisfaction ������������������������������������� 24 John Yoswick Shops Say Specialization of Employee Roles Improves Production, Eases Finding Qualified Workers ��������������� 12 John Yoswick

Nominations Open for AACF Award 36 Returning EV Lease Volume Set to Spike 230% by 2026 ���������������������������� 17

Electrified New-Vehicle Sales Drive Overall Gains for Automakers in November ���������������������������������������������� 15

Revv Secures $20M Investment to Continue Roll Out of Award-Winning AI Platform �������������������������������������������������� 39

Ford Reassigns 400 Bronco Workers Amid 10% Sales Drop ������������������������� 30

Stellantis CEO Carlos Tavares Abruptly Resigns ��������������������������������������������������� 36

NHTSA Updates 5-Star Safety Ratings to Highlight Pedestrian Protection, Advanced Tech ������������������������������������� 22

REGIONAL Western State Shop Operators Saw Several New Laws in 2024, With More to Come �������������������������������������������� 1 Paul Hughes

Classic Collision Adds New Location

Thanks to this months Digital Partners

in Washington ���������������������������������������� 1

COLUMNS Collision Repairer Shares His Perspective on Negotiating with Insurers �������������� 14 Mike Anderson

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UPDATED DAILY autobodynews.com / AUTOBODY NEWS JANUARY 2025 3

EV Collision Claims Rise As National Policy Changes Expected

By Brian Bradley Autobody News

Claims frequency for collisiondamaged battery electric vehicles (BEVs) rose year-over-year in the U.S., while claims severity for BEVs decreased during the same timeframe, according to Mitchell’s Q3 2024 “Plugged In: EV Collision Insights” report, released Nov. 13.

The report showed claims frequency for BEVs rose to 3.01% in the U.S., an increase of 47% over Q3 2023.

However, claims severity for repairable vehicles in the U.S. fell across the board: BEVs, plug-in hybrid electric vehicles (PHEVs), mild hybrid electric vehicles (MHEV) and internal combustion engine (ICE) cars all notched a lower claims severity in the U.S. than Q3 2023, reporting year-over-year decreases in repair costs ranging from 2% to 14% for these various types of vehicles.

BEVs logged the highest average repair costs at $5,560 per car in Q3, followed by PHEVs at $5,229 per car, ICE vehicles at $4,741 per car, and MHEVs at $4,426 per car.

BEVs also took longer to repair than their counterparts through the first three quarters of 2024. The U.S. year-to-date average keys-to-keys cycle time for BEV collision repairs was 19.5 days, a full three days and 18% more than ICE cars, according to the report.

Prices are equalizing between BEVs and ICE vehicles, creating more similarity in total loss outcomes. The average total loss market value for BEVs in Q3 2024 was $32,718 in the U.S., only $1,648 more than for ICE vehicles. Further, total loss frequency hit a rate of 9.9% for BEVs and 9.98% for ICE vehicles.

Front-end crash avoidance technologies and potentially fasterthan-expected deceleration in BEVs contributed to a higher rate of rearend impact for those cars compared to ICE vehicles, which more frequently sustained front-end damage. Nearly 36% of BEV repairs were classified as back-end impacts in Q3, versus just over 27.5% for ICE vehicles. But more than 31.5% of ICE automobiles had a front-end point of impact, compared to just 26% for BEVs. BEVs also significantly outpaced ICE vehicles in terms of OEM parts usage, logging 90.3% compared to only 64.4% for ICE vehicles.

California had a greater repairable claims frequency for BEVs than any other state, hitting 5.86% in Q3, a nearly 0.7% increase from the Q2 2024.

Mitchell also reported that while overall hybrid sales appear to be steadily rising, “headwinds” appear to be boding against widespread PHEV adoption. The report cited an August 2024 J.D. Power study that stated PHEVs score much lower than BEVs in nine of 10 EV categories, particularly for battery range and total ownership cost.

That same study cited consumer concern with public charging infrastructure as another “persistent headwind” on EV sales.

Changing EV Policy The Mitchell report comes at a time when federal EV policy is expected to shift under the coming Trump administration.

A federal public-private entity on Nov. 13 expressed a continuing intent to strongly advocate for widening EV adoption even amid expected changes to EV approaches under the next administration.

The federal Joint Office of Energy and Transportation established the Electric Vehicle Working Group in June 2022, to make recommendations to the secretaries of energy and transportation regarding the development and adoption of EVs into the U.S. transportation and energy systems.

“Obviously, there was an election last week, and changes in administration may bring changes in priorities, a natural part of our democratic process,” Joint Office of Energy and Transportation Executive Director Gabe Klein said during the working group meeting. “The Joint Office, however, will continue to address these priorities across the departments of Energy and Transportation.”

The Infrastructure Investment and Jobs Act of 2021 formed the working group.

“The Bipartisan Infrastructure Law is not just a name only,” Klein said.

“It’s a fundamentally bipartisan effort that’s delivering billions of dollars in investment and good-paying jobs in states and communities across the country, regardless of political affiliation….In times of change like this,

4 JANUARY 2025 AUTOBODY NEWS / autobodynews.com

it’s the private sector’s dedication and consistency that can help provide stability going forward.”

EV Recommendations Adopted The working group passed at least two recommendations related to light-duty EVs — one related to a public education and awareness campaign and one related to managed charging.

Pursuant to the former recommendation, the working group will launch a program to promote the “ease and awareness of EV charging,” targeting the general public, rental car customers and car dealerships.

Two good reference points to inform the campaign may include the federal “Click It or Ticket” and Airbag and Seat Belt Safety campaigns, where the private sector joined the federal government to promote seat belt use and recognize the benefits of seat belt and airbag technology, Alliance for Automotive Innovation President and CEO John Bozzella said during the meeting.

“How far does a car go on a charge if it’s an EV, and how and where and when do I charge it?” are a few common concerns that customers share regarding EVs, Bozzella said.

To stimulate charging efficiency, the working group is also considering a recommendation to create a national “EV Charging Station Competition to the Top” program, aimed at incentivizing charging stations to follow consumer-facing minimum National Electric Vehicle Infrastructure standards.

The program may be structured similarly to the U.S. Environmental Protection Agency’s (EPA’s) ENERGY STAR rating framework, according to the recommendation.

The ENERGY STAR score rates performance on a percentile basis,

and is expressed as a number on a 1-100 scale. For example, buildings with a score of 50 perform better than 50% of their peers.

Charging efficiency would not be structured in a cut-and-dry format that says “’this is a failure and this is a success,’” Bozzella said. Rather, “there’s ‘good, better, best.’ There’s three, four, five stars.”

The working group did not hold a vote to adopt that recommendation, but members of the working group plan to soon retool the recommendation to include either a generic description of the entity that will rate charging infrastructure or the name of the entity itself.

The working group will next meet Nov. 20.

During the Nov. 13 meeting, the working group also voted to encourage large-scale “managed charging,” which refers to the optimization of EV charging for cost and electric grid benefits. Managed charging can either be scheduled by consumers to charge during the most cost-effective times to use electricity, or it can be done through an electric utility that is permitted direct control to a customer’s EV load to reduce grid stress and/or charge when renewables are abundant.

The working group identified two major challenges associated with managed charging that need to be addressed: lack of signals indicating grid conditions and the need for “flexibility” from EVs; and uncertainty of “dependable response” from EV or EV equipment providers to shift load.

“Successful [managed charging] lower volume demonstrations have occurred; now there is a need to align and scale,” the recommendation said. “Scaling requires standard communications among utilities, auto OEMs, EV equipment, software and service providers (collectively, EV Equipment Providers), as applicable, to receive and use data to adjust consumer charging.”

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l CONTINUED FROM COVER

Several New Laws Here’s a look at the coming legislative sessions in the West’s nine “and the rest” states.

As California Goes, So Goes the Region “What happens in California doesn’t stay in California,” said Christian Robinson, senior director of state government affairs for SEMA. Laws involving electric vehicle mandates and combustion engine restrictions or bans are in place or could be in the works in 17 states — i.e., including and going beyond the West region. States are following California with these laws, and the EPA is pushing forward on a national level. State emissions efforts are known as “Advanced Clean Cars II” and different jurisdictions differ on it.

A Toyota executive in November said California’s EV mandates would be “impossible to meet.”

“States can follow California or EPA on this,” Robinson said.

EPA solidifying its stance would trump state moves, of course.

Robinson sees states, including Western ones like Washington and Oregon, aiming for an earlyto mid-2030s timeframe for these restrictions.

“What we’re seeing is a war on international combustion and consumer choice,” Robinson said.

Closer on the horizon are laws related to ADAS and EV battery replacement. California Gov. Gavin Newsom vetoed two bills in these areas in the session that ended this year. However, one related to speed limit alerts is being advanced at the national level, and one on battery replacement is expected to return in the 2025 session.

The state is also due to finalize regulations — administrative action with the force of law — in the coming year related to towing and storage fees.

Keeping Privacy Private a Growing Factor for Growing MSOs Customer data collection, storage and use is a growing area of concern in the industry, though likely not for the independent operator. Laws, which apply across industries, generally exclude — and therefore protect — smaller operators, by setting baselines for numbers of customers, or minimum revenue figures.

Where it starts to matter is for growing regional MSOs and, of course, the big guys; independent owners who want to sell to the MSOs; and a different kind of “MSO” — multistate operations.

The first and second will become more prevalent with growing private equity interest in small- and mid-size MSOs. The third is an issue across a region like the West because, as noted with, for instance, EV mandates, each state is different.

ComplyAuto’s Brad Miller, who heads legal affairs at the software maker, told Autobody News in September that the state level is where these laws are really changing.

“There are lots of layers to this, and all the laws are different,” he said at the time. About half of U.S. states have enacted privacy laws — again often modeled on California’s — with more to come, Miller said.

In the West region, Oregon’s privacy rules went into effect this past summer; Montana added its law Oct. 1. Of the rest, Hawaii currently has an “inactive” bill, according to International Association of Privacy Professionals information.

SEMA’s Watching What States Are Doing As of the end of November, 75 bills are listed on a state-by-state accounting of active bills in the West region, according to a SEMA Action Network map. Some 60% of them, or 45 bills, are in California, with Washington no slouch at half as many: 22.

The rest are sprinkled throughout

the region.

Bills address, among other issues, catalytic converter theft, gasoline pricing oversight, replacement tires, sales taxes on cars and trucks, automated vehicles, clean energy and technology — and emissions.

Idaho Gov. Brad Little in March signed H0640, defining “service-only facility” to delineate businesses that provide automotive service or other repairs from those that also sell and lease vehicles.

Alaska’s HB375 from the 2024 session would have prohibited “state agencies or political subdivisions from restricting the use or sale of a motor vehicle based on its energy source.” That is: they can’t ban any specific kind of car, including gasoline- or diesel-powered.

Alaska, in its session earlier this year, got HB375 through the House of Representatives and through committee in the Senate, but ran out of time.

HB1183 in Washington is similarly poised, aimed at “prohibiting Washington from adopting California vehicle emission standards.”

Want to Know What Might Happen in 2025? Look at 2024 SEMA’s Robinson is optimistic about the coming sessions.

Lobbying for and against l CONTINUED ON PAGE 11

autobodynews.com / AUTOBODY NEWS JANUARY 2025 5

OEM Summit Explores Laser Welding Opportunities in Collision Repair

By Stacey Phillips Ronak Autobody News

With automakers introducing laser welds in the manufacturing environment over the last few years, many collision repairers are recognizing its potential use as an alternative to MIG and TIG welding.

Aaron Schulenburg, executive director of the Society of Collision Repair Specialists (SCRS), noted examples of laser welds being used on the 2021 Acura TLX and 2021 Chevrolet Trailblazer.

As part of this year’s SCRS OEM Summit, held during the November 2024 SEMA Show, information was shared about laser welding opportunities in automotive and aerospace manufacturing.

Presenters included Dean Brennan, North American sales manager at IPG Photonics, the largest fiber laser manufacturer in the world; Rex Alexandre, president and principal engineer at the Handheld Laser Institute and a former senior welding engineer on SpaceX’s Starship program; and Jeff Poole, manager and subject matter expert at I-CAR. “It’s not every day that we are able to interact and learn directly from former senior welding engineers for SpaceX about everything learned exploring, experimenting and ultimately putting the technology to use on the Starship,” Schulenburg noted.

He said the speakers did an amazing job talking through the evolution of this welding technology, while making it clear to attendees how much work is still being done to better understand perceived future use cases in the repair environment.

“We recognize that utilizing laser welding in a repair environment is still yet to be proven or approved but saw an opportunity to learn directly from individuals who are pioneering the opportunities,” said Schulenburg.

Brennan has been marketing laser systems since their early adoption in the metal fabrication industry in 1990 and is now spearheading the North American launch of Light Weld, a handheld laser welding product.

During the laser welding presentation, Brennan shared information about fiber laser technology, the advantages of laser welding and its applications in automotive repair.

Brennan defined laser welding as the process of transferring a laser beam’s photonic energy into heat to fuse or join parts. He said it’s like using a magnifying glass to capture the sun’s energy.

“This transferred heat melts the materials to form a molten weld pool that subsequently cools and fuses the targeted area together,” Brennan explained.

He said laser welding is a flexible process that can be performed with or without filler material and is used to create seams and joints that are narrow, wide, shallow or deep with a variety of materials including metals, dissimilar and reflective materials, and non-metals.

Although lasers create a relatively small spot on the parts to be welded, Brennan said weld pools that are significantly wider than the spot can

Pictured, left to right, are Aaron Schulenburg, Dean Brennan, Rex Alexandre and Jeff Poole during the third session of the OEM Summit at the 2024 SEMA Show

be created by oscillating the beam in customizable patterns.

“For parts and materials that cannot handle excessive thermal input, lasers can be optimized to achieve rapid weld penetration and scanned along the joint to reach speeds as high as several meters per minute,” he noted.

Brennan said handheld laser welding has many advantages. These include high precision, speed and repeatedly, with a low heat input. In addition, minimal maintenance is required.

“Laser welding is an easily automated solution for creating excellent quality welds rapidly and reliably,” he said. “The power control of the laser is extremely consistent and predictable so it can be repeated over and over.”

Brennan explained that MIG and TIG welding use electrical resistance that can interfere with automotive electronics.

“Laser welding uses photons of light, not electricity,” he said. “This is why EV batteries are manufactured with laser welds.”

Brennan noted that laser welding does not compromise electronics and hand-held laser welding yields superior aesthetics.

He shared research conducted by IPG, which included preparing laser welding samples sent to Sturbridge Metallurgical Services Inc. (SMS) for

6 JANUARY 2025 AUTOBODY NEWS / autobodynews.com

third-party evaluation. Butt joints in plates of 0.036 in., 0.075 in., and 0.120 in. were produced and sections were prepared using ASTM standard methodology. A total of 26 cross sections were inspected at 50 times the magnification. In all cases, Brennan said there was no cracking, incomplete fusion, porosity, inclusions or other defects. The weld profiles passed all tests and no underfill was noted.

“Laser welding is an excellent choice for automotive repair, especially considering that many factory welds in vehicles are laser welds,” said Brennan.

Alexandre talked about the adoption of handheld laser welding in the industrial and aerospace industry, which he said is a growing technology.

Schulenburg noted that Alexandre helps educate and empower businesses and industries with knowledge and resources to usher in a new era where handheld laser welding can be recognized as an industrially accepted process.

Alexandre has spent most of his career developing laser welding, cladding, cutting and additive manufacturing processes for the aerospace industry. His first introduction to handheld laser welding was in 2020 while working as a senior welding engineer on SpaceX’s Starship program.

That year, Alexandre began laser welding on a device ordered from Amazon that ran on 380 volts. In 2021, he began using IPG’s first light weld unit to laser tag parts. A year later, he purchased a wire feeder IPG released for the laser.

“To me, this was a game changer,” he recalls. “The wire feeder controls your travel speed and makes it really quite simple for almost anyone to make a high-quality weld.”

He was convinced that laser welding had future potential but was unsure how.

Eventually, Alexandre developed a wide range of unique welds for many applications and began laser welding structural joints.

“We’ve made thousands and thousands of handheld laser welds that have not only flown to space on Starship but also come back,” said Alexandre. “That speaks volumes about the capability of this technology when used appropriately.”

Alexandre said he has helped develop bespoke applications that have required considerable development. He also helped build a laser welding training program, standardized procedures and design guidelines for engineers.

“One of the things that can’t be oversold with a handheld laser is how easy it is to pick up,” he said. “It does require some skill to do it on realworld hardware, but nowhere near the amount that it takes to be a good arc welder.”

Although there is growing interest in laser welding, Alexandre acknowledged some people have concerns over safety.

“Any industrial equipment is dangerous when not used properly,” he noted. “It [laser welding] is safe and strong and absolutely can be done to code.”

He currently teaches people across North America how to use handheld laser welding. Some of the early adopters are primarily focused on non-structural and aesthetic purposes.

“It started as a pet project and I didn’t expect it to go anywhere,” said Alexandre. “I just thought it was something neat to do in my limited amount of free time. But before I left SpaceX, I would walk to the office, sit down at lunch and people would talk about using it like it was no big deal, like it was MIG or TIG welding.”

Poole sees the potential for using laser welding in the collision industry and encourages repairers to be openminded.

“As I look at the prospect of being able to repair a vehicle and use the same processes that the vehicle manufacturer uses, it just blows my mind,” said Poole. “I’m excited about this technology.”

However, he forecasts it will be some time before laser welding is an accepted practice.

This is due in part to the huge investment. He also acknowledged that laser welding is a different process than repairers are used to, so there will be a learning curve for those doing MIG welding.

“There is a lot we need to research and learn about the process,” he said.

I-CAR is working with outside third-party organizations that perform testing and validation to better understand laser welding. The organization plans to share its research while working with the industry to identify future opportunities.

“We want to make sure that we do this right for the industry,” he noted.

He said gaining confidence to get OEM approval for the process will be paramount.

“When we repair a vehicle, we have to repair it to the OEM recommended or required procedures,” noted Poole.

“I’m hopeful to see a day where we start to see this as an accepted process.”

autobodynews.com / AUTOBODY NEWS JANUARY 2025 7

SEMA Show Attendees Talk About What They Gained To Address Their Shops’ Biggest Challenges

By Abby Andrews Autobody News

The 2024 SEMA Show drew more than 2,400 exhibitors and tens of thousands of attendees, many of whom work in the collision repair industry.

Autobody News spoke to several shop owners and employees throughout the week to get their thoughts on the state of their business and why a trip to the SEMA Show was worth their time, whether it was their first or 20th.

Building Body Shop Staff Brad Kickert is the shop manager at Auto Palace in South Holland, IL. A first-time attendee, Kickert said he came to the SEMA Show to learn about new technology and materials being used in auto production.

“We wanted to make sure we’re staying on top of the game,” Kickert said.

Staffing is the biggest issue at Auto Palace, he said.

“It’s very hard to find a qualified individual,” Kickert said. “A lot of our employees now are getting up there in age, and getting young employees is proving difficult. We’ve been lucky so far, but that’s our biggest thing that we struggle with.”

Kickert had just attended Mike Anderson’s presentation on negotiating with insurance companies, part of the Society of Collision Repair Specialists’ Repairer Driven Education series.

“I learned how to communicate to attain what you need to give customers that come into my shop the proper repair,” he said. “Our customers are very loyal.”

Kicker said his business doesn’t do a lot of custom work, but he was excited to see the builds other people brought to the show.

“The level of professionalism and fabrication is amazing, just seeing what people can accomplish with their hands,” he said.

Decreasing Cycle Time Doug Bowman has owned Superior Auto Body in Ranson, WV, for 35 years. He has been attending the SEMA Show for 20 years.

Three estimators from his shop, and his daughter and shop manager, Marissa Bowman, also came to the show.

“I wanted everyone to see it, what goes on and to get some education,” Doug said.

Efficiency and cycle time are the biggest issues at Superior Auto Body.

“There’s a lot of delays that can

occur,” Marissa said. “We are trying to avoid them and make everything move as efficiently as possible.”

The Bowmans had also just listened to Anderson’s presentation on negotiations, and they planned to attend more classes to learn how to improve customer experience, to “help customers understand the process, why it takes so long, and everything that goes into repairing your vehicle back to the way it should be,” Marissa said.

“There’s always something new [at SEMA],” Doug said. “That’s why we come every year, just to try to stay ahead of the curve.”

Dan Biggs

Improving Insurance-Shop Relations Dan Biggs, owner of Rick’s Auto Body Shop, which has two locations in South Bend and Mishawaka, IN, was attending his fourth SEMA Show.

Biggs said he took over the business from his father, who brought him to SEMA. Biggs now has five children who have joined the business, all of whom came to SEMA with him this year.

“This is the future,” Biggs said of SEMA. “I hope [my children] get out of this what they can. This is where the future comes to get the best ideas they can to rise to the better level.”

His daughter, Marina Biggs, a detailer, was attending her first SEMA Show.

“I came because my dad invited me and I thought it’d be a cool experience to see what it’s all about,” she said.

Dan said the biggest issue at his shops, which do not participate in DRPs, is relationships with insurers.

“It’s at an all-time low,” he said. “They just decided they don’t want to pay for things they’ve paid for for 20 years.

It’s a constant argument. We have the best proof, all the data they need, but they went down the road to not pay for things now.”

Dan said he believes in the power of networking, and SEMA is a great place to do it. He attended the Collision Industry Conference on Nov. 5 to connect with other industry leaders, to find out what they’re seeing.

“It’s pretty uniform what we’re all going through,” Dan said. “I believe in the power of relationships, and it’s here.”

8 JANUARY 2025 AUTOBODY NEWS / autobodynews.com

Dan said custom cars aren’t his thing, but he likes to come to Las Vegas and the SEMA Show because it brings back memories of his dad, who has passed, and makes new memories with his children.

“The biggest thing is having my kids with me; that’s the thing I treasure the most,” he said.

Marina, a movie buff, said the coolest thing she had seen so far was DeloreanRental.com’s Delorean Time Machine, a recreation of the car featured in “Back to the Future.”

Training Techs for the Future Gerald Rosenbarker, general manager of Mohawk Collision Center in Schenectady, NY, said he tries to come to SEMA every other year. This was his seventh or eighth time at the show Mohawk has 20 OEM certifications, so Rosenbarker comes to SEMA to make deals on new equipment, which the shop upgrades constantly.

Rosenbarker said he also enjoys the educational opportunities. He had just attended an SCRS RDE class on AI tools that can enhance customer service.

“These [classes] get you started, get you an idea of what you’re looking to do,” he said. “Then you can deep dive into it later, look other avenues to help you grow your collision business.”

He said his shop is looking to grow its staff for long-term success, and training is key to reaching that goal.

“We have grown quickly over the last few years,” Rosenbarker said.

“Developing them, training them, bringing them here and seeing what other learning opportunities there are after SEMA is a great option for us to grow our staff into the technicians we need for the future.”

Rosenbarker said he’s “not that much of a car guy,” but he always enjoys the technological innovations on display at SEMA. “Anyone in this industry needs to come out here, if you haven’t been,” he said. “I think people often think of it as a car show, but it’s so much more.”

Streamlining Operations Nicolas Quiambao, an estimator at Oka’s Auto Body in Waipahu, HI, said the company is planning on expanding. He was sent to SEMA for the first time to learn more about the industry and specifically look for a system or company that can help Oka’s streamline operations.

“Admin work is heavy and being able to bring in more customers, be more efficient, will help us grow,” Quiambao said.

He was looking for an all-inclusive system or company to help speed up processes like making first contact with customers, keeping them updated throughout the repair process, accounting and ordering and receiving parts.

“There are a lot of really nice cars and trucks to see out here, but what gets me excited is seeing all the tools and systems that are being created to help companies become more efficient and effective,” Quiambao said.

Ryan Timmons

Attracting More Customers Ryan Timmons, owner of Ryan’s Rod Service in Florence, CO, was at his 15th SEMA Show. He said he comes to SEMA every year to make more connections.

Timmons said his shop, which does not do insurance work, has run into a “slight slowdown” in jobs and a problem getting some customers to pay.

“It’s been minimal,” he said. “We’re surviving and making it happen.”

This year, Timmons said, he was also at SEMA to look for new equipment and vendors to appeal to more potential customers.

He said the coolest thing he saw was the Golden Sahara II in Goodyear’s booth. The custom car was built in 1954

by George Barris using a wrecked 1953 Lincoln Capri. Barris equipped it with voice commands, sensorbased automatic emergency braking, futuristic styling and other amenities like a built-in TV and refrigerator.

Expanding Business By Upgrading Technology Tracy Kroon, owner of Krown Restoration LTD, in Wilsall, MT, was at his first SEMA Show.

“We have a major project we’re working on that requires newer technology, and we thought this was the perfect place to come to view it,” Kroon said.

Finding qualified staff is Krown Restoration’s biggest challenge, Kroon said.

He had a tough time picking his favorite part of the show. “We’re just kind of overwhelmed with the whole thing,” Kroon said.

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autobodynews.com / AUTOBODY NEWS JANUARY 2025 9

GM’s New Collision Assistance App Contacts Driver At Accident Scene, Helps Them Choose Repair Shop

By John Yoswick Autobody News

When the number of automakers offering collision shop certification programs began to grow more than a decade ago, shops foresaw automakers playing a much larger role in a driver’s decision where to have their vehicle repaired after a crash. After all, automakers had access to vehicle telematics data that could detect a collision and enable the automaker to contact the driver ahead of that customer even contacting their insurance company.

That’s been happening on a limited basis with some automakers, but it took a big step forward in recent weeks. A new General Motors mobile app can now contact drivers after an accident to assist them at the scene and help guide them to a GMcertified collision repair facility.

Launched in October but announced just this month during the 2024 SEMA Show, the GM Collision Assistance app differs from OnStar, which will still contact subscribers through the vehicle immediately after a crash is detected. The new app sends a pop-up notification to the

“We help guide [the driver] to the Certified Repair Network facilities that we have in our program to choose from.”

— JOHN ECK

GENERAL MOTORS

driver’s phone about 10 minutes later.

“We don’t want to interrupt what’s already going on with OnStar,” John Eck, who leads the GM Collison Assistance program, said during the second session of the Society of Collision Repair Specialists’ (SCRS) OEM Collision Repair Technology Summit in Las Vegas. ttachedThe the app contract withguide somethe can then customer the process hanges.

We are through on Collisionlink, of documenting what occurred PSTRAX, CCC, Parts Trader& Reparand obtaining the other driver’s nk. Web address information. is www.fairview“And then we help guide [the rd.com. driver] to the Certified Repair Network facilities that we have in our program choose Eck said, noting he’d et me to know if from,” you need anything met shop owners at SEMA who had se. already received customer referrals through the app. “We actually put a note in there saying, ‘Hey, it’s your choice of where you go to get your vehicle repaired.’ But we identify the certified network. And then we also provide the customer with the opportunity to download a report

or all the information that they’ve collected at the scene to use as they see fit.”

there to help,” Eck said.

Limited Use of the Data

But insurers are using vehicle telematics to track driver’s behavior if they’ve signed up for usage-based insurance, so it may be more than just automakers reaching drivers at the accident scene.

During the same session in which GM announced its new app, Ryan McMahon of Cambridge Mobile Telematics said his company’s vehicle telematics system — running through an app on the driver’s cellphone, which much of the insurance industry already uses — also can detect crashes and help start the claims and repair processes.

“Because data is available, we are moving into a world where you can be proactive versus reactive,” McMahon said. “For the insurance company, it means a significant savings. The insurers are going to continue to push in this direction because for them, time is money, whether that’s in storage costs or rental costs.”

In addition to reducing those direct costs, McMahon said, capturing vehicle telematics data to help with the claims process can also reduce indirect costs, by reducing the

While the app, which is branded differently for each GM line of vehicles, receives vehicle telematics data that indicated an accident occurred, that’s as far as that data goes, Eck said, clearly cognizant of

Ryan McMahon of Cambridge Mobile Telematics said insurers are increasingly benefiting from crash detection by improving the claims process from the start, but other companies could benefit from the information as well

the lawsuits filed earlier this year related to GM’s collection and sale of vehicle telematics data.

“I want to make it very clear: General Motors is not doing anything internally with this data,” Eck said.

“I only see aggregate numbers, the total number of events. But I don’t see any customer data. Nobody does. Nobody gets to use it for any purpose. It’s not sold, it’s not utilized for any other purpose. The customer would have to download the report themselves [through the app] as a PDF and then they could email it off to their insurance company.”

Eck said because GM will know how many customers are choosing a certified shop through the app, that information can help those shops see their return on investment from the GM certification program.

“Our purpose is to guide them to a repair professional that’s in our network for a safe and proper repair,” Eck said, “but also to be there in the moment that…if your car is totaled, how do we help you get into your next vehicle?”

He said earlier in November he received a photo of a wrecked vehicle from a GM executive, whose daughter had been driving when the accident occurred. No one was injured, but the executive wanted Eck to know he had been contacted at the time of his daughter’s accident -- the app notifies the vehicle owner -- and he wanted Eck to know “your product works.”

“He was grateful that we were

10 JANUARY 2025 AUTOBODY NEWS / autobodynews.com

Accident Detection Could Be Used

by Others

number of adjusters needed, for example.

But McMahon said it isn’t just insurance companies that can benefit from crash detection.

“This crash assistance process and environment is really opening up the doors to providing relationships with customers that otherwise wouldn’t be there, whether that’s from an insurance company, from an automaker, from another trusted brand,” McMahon said. “So why couldn’t this happen from SCRS? Why couldn’t this happen from a body shop themselves? It just has happened that the insurance industry got this started, but it doesn’t necessarily have to stay there, because this technology is really democratizing the information.”

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Several New Laws legislation is a multi-year process.

Bills that didn’t quite make it in 2024 built support for 2025.

In Arizona, in Autobody News’ Southwest region, Robinson said HB2332 “would have legalized cruising and low-riding” — also of course touching classic car enthusiasts.

It mimicked a 2023 California state law. It passed the state House but died in Senate committee.

“It’s a common-sense piece of legislation for an important subset of the car community,” Robinson said.

He referred to states with legislation opposing emission mandates — as above in Alaska and Washington, in the West; and in other regions -- as “ban the ban” states.

“We don’t think the government should be choosing what consumers buy,” Robinson said. His state work is in all 50, and states that moved to a ban-the-ban model in some form in 2024 included Maine and Virginia.

Other locales — Rhode Island and New Jersey, for instance — have in recent years moved in the other direction.

Robinson stressed SEMA’s focus on “innovation and new solutions”

over regulation, noting “95% of member companies are small businesses [where] the person answering the phone is the C-Suite, and turning wrenches, and cleaning up at the end of the day.”

Loving it When a Plan Comes Together … Or Doesn’t With good reason, new laws are often seen as a negative for body shops and collision centers. Sometimes, though, life is good.

Robinson said one odd-sounding area, perhaps, is in license plates.

Custom car and hot rod owners are opposed to laws that require two license plates — i.e., including one on the front.

“For vintage and certain vehicles, odds are there isn’t a bracket on the front to place a license plate,” Robinson said. “For a lot of enthusiasts, that’s a non-starter.”

This year Utah “went from a twoplate state to a one-plate state. We were pleased to see that signed into law.” Utah, also in Autobody News’ Southwest region, often angles similarly to nearby Western states.

Robinson in general sees “more states passing and enacting laws ensuring consumer choice.”

Sometimes it’s what doesn’t happen that’s a nice problem to have.

Montana’s legislature, for instance,

meets only every odd-numbered year, and only for 90 days. Wyoming’s 2025 session is set to last about 40 days.

Most states begin their sessions in January. Nevada’s starts Feb. 3.

California’s starts Dec. 2 and runs nine months.

An area where a thing didn’t happen — and hasn’t for two decades — is also a positive for the West, Robinson said.

For a 2003 California law requiring replacement tires to match the efficiency of new ones, SEMA worked up a “carveout” for smaller producers, which so far has been unnecessary.

“The program hasn’t been implemented,” Robinson said.

“California hasn’t actually written the rules.”

Your leading source for WESTERN Collision Repair News! western.autobodynews.com

l CONTINUED FROM COVER

Classic Collision look forward to becoming part of the Classic team,” said Eric Pederson, former owner of City Center Collision Services.

“Having City Center Collision become part of the Classic family is an exciting opportunity for Classic Collision. We appreciate their strong community connections and commitment to excellence.

We look forward to expanding Classic Collision’s presence in the Washington market,” said Toan Nguyen, CEO of Classic Collision.

Classic Collision was founded in 1983 in Atlanta, GA. It has grown to more than 300 locations in 18 states.

It added about 50 of those shops in 2023 alone, the second-highest total among the collision repair industry’s largest MSOs, including six-shop MSO Elite Auto Body in the Hampton, VA, market and five-location Colorado Auto Body in the increasingly competitive Denver market.

So far, in 2024, Classic Collision hit the 300-store mark by expanding into new markets in East Texas and Southern California and strengthening its presence in key regions like Florida, Virginia, Colorado and North Carolina.

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autobodynews.com / AUTOBODY NEWS JANUARY 2025 11

Shops Say Specialization of Employee Roles Improves Production, Eases Finding Qualified Workers

By John Yoswick Autobody News

A panel of collision repair shop owners shared how they’ve moved to more specialized employee roles within their company, during a Society of Collision Repair Specialists’ (SCRS) training class during the 2024 SEMA Show in Las Vegas.

The three opened the discussion by first talking about the benefits of such specialization in manufacturing, particularly at another transportation sector company like Boeing, where exacting tasks are handled by specific people who become very skilled and productive at that work.

Barry Dorn of Dorn’s Body & Paint in Mechanicsville, VA, said he believes that just as more shops are specializing in the repair of fewer makes and models, more specialized roles for employees will similarly boost expertise and productivity.

“When you are able to narrow it down as far as the roles and responsibilities of that person, it’s a lot easier to introduce younger people into it.”

— KRIS BURTON

ROSSLYN AUTO BODY IN ALEXANDRIA, VA

Dorn said with all the duties shops have traditionally given to estimators, for example, how high a priority will it be for them to mirror-match parts or handle parts returns and credits?

“They’ve got to take care of the customer. They’ve got to get the car going. They’ve got to get this supplement approved. They’re not worried about parts,” Dorn said, saying his shop, which repairs about 160 cars a month, has a dedicated parts team.

Similarly, he said, if a technician is also handling supplements, they will likely be focused primarily on body labor hours because in a flatrate system, that’s the basis of their compensation.

“You can’t blame them,” he said.

“So that’s why you have to have at least some level of a blueprinter or a repair planner that’s with them who is also focused on parts and focused in on the procedures.”

Having a detailer or someone other than an ADAS specialist do the pre-scanning of a vehicle isn’t likely to ensure the shop has all the information it needs as repairs begin, Dorn said.

“That’s the initialization of you finding out what’s wrong with that

car,” he said. “Yet most of the folks doing it in most shops are literally hitting ‘print’ and hoping that somebody, somewhere, will know what it means, yet it’s often sitting in the file not being read. It has to be somebody who actually knows diagnostics so he can read it, and know what he’s looking for, and more importantly, know when they scan something, depending on if it’s an OEM tool or if it’s an aftermarket tool, how far down into the modules is it going?

can promote from within. I don’t want to say that we don’t face a technician shortage, but it’s not as drastic.”

By segmenting out all the roles the typical estimator handles, Burton has been able to bring in customer service reps who just handle all customer interactions, including explaining the process and selling the job.

“Some of the best CSRs that I’ve found have been from restaurants,” he said. “Lately it’s been from even like vet’s offices and doctor’s offices and dentist’s offices. They’ve dealt

Pictured, from left, shop owners Barry Dorn, Kris Burton and Michael Bradshaw discussed how they’ve moved to more specialized employee roles within their business

“Is your estimator going to know that? Probably not. That’s not what they were trained for,” Dorn continued. “I don’t know that I can, because I was never trained to be a diagnostic service tech. The point is, if you hire folks for that role, they’ll give you the information that you need to know what’s wrong with that car prior to even writing the blueprint, instead of finding out five hours before the customer is supposed to come pick the car up.”

Starting in the Body Department Kris Burton of Rosslyn Auto Body in Alexandria, VA, said he started the transition to more specialized roles in his shop’s body department, developing assembly and disassembly teams and adding helpers and apprentices -- three of the five are under age 19 -- to help keep structural technicians focused solely on that highly-skilled work on the 78 cars the shop repairs per month on average. That helps make it easier to bring in entry-level technicians to train.

“When you are able to narrow it down as far as the roles and responsibilities of that person, it’s a lot easier to introduce younger people into it,” Burton said. “People always say: ‘There’s not enough techs. We have a shortage. We need to have more people.’ But having a kind of a reduced role makes it a lot easier to bring people in. It’s like we’re creating our own farm system internally, and

12 JANUARY 2025 AUTOBODY NEWS / autobodynews.com

some with insurance companies to a different level, and kind of have an understanding of admin and processes.”

His shop’s 21 employees include a 19-year-old technician who specializes in ADAS and diagnostic work.

“He started with us when he was 16, and flies all around the country for training and loves it,” Burton said.

“The reality is that it’s become a specialized role, and it’s something that’s attractive to a lot of young techs.”

planner is usually somebody that’s probably a little nerdy because it’s super technical, and maybe isn’t the best at interacting with the customer.

Those two people are rarely the same personality type,” Bradshaw said. “But we wonder why we don’t have success. Why are we missing parts? Why are we not closing on the opportunities that we have? Because we don’t have the right individuals in the right place, and we’re asking one individual to do way too much.”

Bradshaw’s shop has 31 employees, but just one structural technician, with a helper, who does all the welding and frame work — becoming very efficient at it because it’s all he does — while others handle disassembly and reassembly, glass work, scanning and calibrations, etc.

Similarly in the paint shop, Bradshaw said, having one person handling all color matching helps that person become very efficient.

The parts team at Bradshaw’s shop includes one person who does all the mirror-matching of parts and checking for any damage to those parts; another ensures all the invoices are received, that discounts are correct, that parts price updates are applied to the estimate, and returns and credits happen.

“We’re processing about 100 vehicles a month,” Bradshaw said.

“At one time we had one individual doing all those [parts-related] tasks.

He worked for us about a year and a half and then resigned. He resigned because he couldn’t deal with the stress. It was hard for him to have the

Only One Structural Tech Needed Like Burton, Michael Bradshaw of K&M Collision in Hickory, NC, said few people have all the different skills needed for the tasks many shops have traditionally required of estimators: technical knowledge, customer service and sales abilities, negotiating, collections, etc.

“Is there any one [task] that they’re really going to be able to excel at if they’re trying to manage all these others?” Bradshaw asked. “I know sometimes we look at things from a perspective of ‘I can’t afford to have somebody else to do this task or this role.’ But if you look at the inefficiencies that are created, you really can’t afford not to have somebody alleviate some of that stress.

“Think about it: We want somebody up front who can sell and is pleasant and nice to deal with. But a repair

Michael Bradshaw said it’s rare to find someone who has all the technical and customer service and sales skills shops have traditionally required of estimators

time to mirror-match because he was handling all the communication with the dealers and follow-up on backordered parts and all that.

“After we hired an individual dedicated to doing all the mirrormatching, I was able to bring back that parts manager, and he’s as happy as can be now,” Bradshaw added. “And he’s really good at the accounting side of things.”

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Mike Anderson — From the Desk of Mike Anderson

Collision Repairer Shares His Perspective on Negotiating with Insurers I had the privilege at SEMA this past November to teach a class on negotiating for collision repairers with my colleague, Sheryl Driggers.

Autobody News was kind enough to run an article about that class.

A gentleman I know in this industry — who has attended a similar class I taught in the past — read the article, and contacted me to say he that while he’s implemented many of the strategies he’s heard from me over the years, he wanted to respectfully offer his own view on the topic of negotiating with insurers. I always welcome new perspectives, so I contacted Drew Plischke.

Plischke is the director of client / insurance reconciliation at Gold Coast Auto Body in Chicago, a company he’s been with for 20 years.

In all, he’s spent nearly four decades in the industry, starting as a porter at a shop after leaving college, becoming a technician and then an estimator before taking management and leadership positions.

“In every role, I’ve focused on one central mission: ensuring that our customers feel supported, valued and guided through every aspect of the repair process,” Drew told me.

After we talked about his view of negotiating, I invited him to put his thoughts into writing. He did so, sharing why he believes “negotiating with insurers can be detrimental to collision repairers.” I decided to turn this month’s column over to him.

Drew wrote: “After our shop severed our last DRP relationship with a major insurance carrier, everything changed. It was from that point on that I began to see the collision repair landscape shift in ways that fundamentally changed how repairers should approach negotiating with insurers. As the insurance industry has evolved, I’ve come to realize that while negotiating with insurers may have been a viable strategy in the past, it may no longer be the best solution for collision repairers today. In fact, in many cases, this kind of negotiation may be counterproductive.

“In the past, it may have seemed that insurers were partners in ensuring that vehicles were repaired safely and correctly. But the reality has always been that insurers have been focused primarily on controlling repair costs. While safety and quality should always be the top priority, it’s

become clear that insurers’ efforts to cut costs have often come at the expense of these essential factors.

“Over time, we’ve seen a shift in the language and tactics used by insurance companies. Terms like ‘prevailing market rates’ and ‘industry standard’ have increasingly replaced concrete standards such as OEM repair procedures, position statements, and owner’s manual guidelines. Rather than relying on clear, evidence-based repair standards, insurers now often use ambiguous language to set limits

on repair costs. Unfortunately, these terms can be used to justify reducing payments or even denying necessary repairs, which leaves repairers in a difficult position.

“I’ve seen this firsthand in our shop, especially since ending our DRP relationships. What used to be a more predictable process for dealing with insurance claims now often feels like a constant struggle.

Insurers have increasingly relied on vague terminology like ‘usual and customary’ or ‘not being charged by others’ to justify reduced payment amounts, and that leaves us with limited leverage to negotiate a fair rate for the repairs needed.

“The challenge is not just the payment amounts but shifting expectations regarding the scope of work. Terms like ‘industry standard’ are so open to interpretation that it becomes nearly impossible to have a productive discussion about what is necessary to restore the vehicle safely and properly.

“It’s also important to remember that insurers aren’t just neutral parties in the repair process. They have a legal obligation to act in good faith on behalf of the policyholder.

Insurance companies have fiduciary duties to their clients, which include ensuring that vehicles are repaired properly and safely, with payment

14 JANUARY 2025 AUTOBODY NEWS / autobodynews.com

made for the full scope of necessary repairs.

“However, as repairers have become more involved in negotiations with insurers over cost, this duty has been complicated.

Instead of ensuring that repairs meet documented safety standards, insurers are increasingly focused on managing costs. This shift in focus can sometimes work against the best interests of the vehicle owner and the repair facility, putting safety at risk.

Advocating for the Vehicle Owner “My role at our shop has always been to advocate for the vehicle owner, ensuring they receive the best possible repair according to OEM repair standards — not to haggle with insurers over labor rates or discount procedures.

“As vehicles have become more complex, with advanced technology such as ADAS and safety features that require specialized knowledge, tools and certification, today’s repairs are not just about returning a car to its previous state; they’re about returning it safely, with every necessary procedure followed to ensure the vehicle’s integrity.

“In this environment, negotiating with insurers over the cost of repairs can be both inefficient and potentially unsafe. The focus should always be on ensuring that the vehicle is repaired correctly, not on what the insurer is willing to pay.

Repairers should be empowered to work directly with the vehicle owner to ensure the proper repairs are made — without being constrained by what the insurance company is willing to cover.

Focus on Quality Repairs, Not Negotiating Rates “Rather than getting bogged down in negotiating with insurers, collision repairers need to shift our focus back to what really matters: providing high-quality, safe repairs for the vehicle owner.

“A simple solution is to begin directly billing the customer for the repairs we perform, while allowing the insurance company to settle the claim separately. This allows repairers to focus solely on the work at hand — performing the repairs

according to the highest safety standards — without the distractions of insurers trying to limit the scope of work or delay payments.

“And here’s the critical part: This method works. It’s been successful for us over a large sample size of both first-party insureds and thirdparty claimants. By focusing on delivering the necessary repairs, providing clear documentation of what’s required, and directly billing

“In this environment, negotiating with insurers over the cost of repairs can be both inefficient and potentially unsafe.”

—DREW PLISCHKE GOLD COAST AUTO BODY

the vehicle owner, we’ve been able to reduce the time spent fighting over arbitrary rates or unnecessary negotiations, and instead focus on the repair. This method of billing directly to the consumer has been a game changer for our shop, allowing us to maintain control over the repair process, prioritize safety, and continue to deliver high-quality work.

Time to Focus on What Matters “I believe the time has come for the collision repair industry to focus on ensuring that vehicles are repaired correctly and safely, according to OEM standards, without being drawn into constant negotiations with insurers. We should not allow insurers to dictate the terms of repair decisions or payment through vague language that only serves to reduce costs, often at the expense of safety.

We should advocate for what is necessary to restore the vehicle to its pre-accident condition and trust that the claims process between the policyholder and the insurance company will unfold as it should.

“It’s time we reclaim control over the repair process, prioritize the safety of the vehicles in our care, and ensure that all parties involved — repairers, vehicle owners and insurers — work together for the greater good.”

I want to thank Drew for taking the time to share his perspective so professionally and respectfully, and for allowing me to share it with you through my column this month.

Electrified New-Vehicle Sales Drive Overall Gains For Automakers in November Automakers on Dec. 3 began releasing sales results for November, reporting strong results for light trucks and electrified models, including plug-in hybrids and fully electric vehicles.

Honda American Honda sold 121,419 units in November, a 14.5% increase year-over-year, driven by strong sales of light truck and electrified models for both the Honda and Acura brands.

The Honda brand sold 110,020 units, up 15.9% over November 2023, keeping the brand on course for a 10% annual increase.

The Honda brand also set an all-time monthly sales record for electrified models with more than 38,000 units, led by strong demand for hybrids and a new monthly sales record for the Prologue, which sold 6,823 units.

Honda light truck sales are up 15.7% so far in 2024, with 79,982 units sold in November. Pilot sales of 12,652 and Odyssey sales of 6,644 kept both models at the top of their respective segments.

CR-V sales are on track for an alltime annual sales record, topping

34,300 units in November. More than half — 54% — were hybrid models.

The Acura brand sold 11,399 units in November with strong demand despite supply issues due to retooling of both the Marysville and East Liberty Auto Plants in Ohio in preparation for EV production in late 2025.

Acura sold 9,031 SUVs in November, a 16.3% increase yearover-year. The All-electric ZDX posted its best sales month since its launch with 1,317 units; more than a quarter of those sales were the ZDX Type S. Subaru Subaru of America, Inc. reported 57,690 vehicle sales for November

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2024, an increase of 8.2% compared with November 2023, when it sold 53,327. Subaru also reported year-to-date sales of 605,854, a 5.5% increase compared with the same period in 2023.

Crosstrek achieved its best November ever with 16,948 vehicles sold, a 13% increase compared to November 2023, and its fifth month in a row as the top performer by volume.

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Hyundai Hyundai Motor America reported record-breaking total November sales of 76,008 units, an 8% increase compared with November 2023.

Hyundai set total sales records in November for Santa Fe HEV (+64%), Tucson PHEV (+23%), Tucson HEV (+227%), IONIQ 5

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Retail sales for November 2024 set new records, climbing 15%.

EV retail sales increased 77% year-over-year, hybrid retail sales grew by 104% and electrified (EV, hybrid, plug-in hybrid) retail sales jumped 92%.

Mazda Mazda North American Operations reported total November sales of 33,422 vehicles, an increase of 20.6% year-over-year and the automaker’s best November sales in history. Year-to-date sales totaled 384,181 vehicles sold, an increase of 18.6% compared to the same time last year. With 26 selling days in November, compared to 25 the year prior, the company posted an increase of 16% on a Daily Selling Rate (DSR) basis.

Certified pre-owned sales totaled 6,451 vehicles in November, an increase of 38% compared to November 2023.

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Red Carpet Awards Night Honors Those Who Go Above and Beyond

By Stacey Phillips Ronak Autobody News

This year’s Red Carpet Awards Night, held Nov. 5 during the SEMA Show, recognized excellence in the collision industry. Nine organizations gave out a total of 20 awards.

“Tonight, we will honor those who go above and beyond, who dedicate their skills and time to elevate our standards, and who serve as role models for their peers,” said Stacey Phillips Ronak, owner of Radiant Writing & Communications and the emcee of the event. “The awards represent more than just accolades; they are a testament to the hard work and determination that drives our industry forward.”

between all stakeholders, benefiting the industry and its customers.”

Gaurav “Rav” Mendiratta, CEO of SocioSquares and chief product officer at Propel, also received an Outstanding Contribution award for his volunteer efforts. Mendiratta said he learned about the collision industry after his wife was in a car accident and the vehicle was repaired at an Oakland, CA, body shop.

The third recipient, Stacey Simmons, sales operations director at Enterprise Mobility, has volunteered for CIECA for the past few years, including at the CIECA CONNEX Conference.

Aaron Schulenburg, third from right, accepts the award from CIECA

Chris Martinez, left, Ashley Denison, center, and Paul Barry, right.

Barry Dorn, left, and Jason Stahl, right.

BodyShop Business BodyShop Business presented two Executive of the Year Awards.

Barry Dorn, owner of Dorn’s Paint & Body in Mechanicsville, VA, received the Single-Shop Award.

“There are so many other folks who should be up here besides me,” said Dorn. “I’m incredibly honored and truly shocked.”

Wendy Patrick, chief administrative officer of Joe Hudson’s Collision Center in Pike Road, AL, won the MultiShop Award. Jason Stahl, editor of BodyShop Business, said Patrick’s peers look up to her for guidance because her energy is unparalleled.

Collision Industry Electronic Commerce Association (CIECA) Three individuals received an award from CIECA for Outstanding Contribution.

Chris Martinez, lead integrations developer at Nexsyis Collision, was the first. Since joining CIECA’s Architecture Committee in April 2024, Martinez has contributed technical expertise from the collision repair industry perspective.

“Being part of CIECA helps reduce the challenges of sharing the digital information you need to communicate,” said Martinez.

“Having an industry standard facilitates business communication, ensuring a smooth flow of information

Schulenburg, executive director of SCRS. In presenting the award, Darrell Amberson said Schulenburg is one of CIC’s hardest-working committee chairs and is “exceedingly dependable, willing to take on tough topics.”

“I never expected this,” Simmons shared. “I’m very proud to be part of Enterprise and part of joining CIECA and partnering together in the industry for what we do.”

Ken Eagleson, OEC’s vice president of insurance solutions, was the recipient of the Chairperson’s Award. Eagleson, CIECA’s secretary on the Executive Board, is an active CIECA member who volunteers on several CIECA Committees.

“CIECA’s commitment to open standards is something that benefits, I would say, most everybody in this room,” said Eagleson. “I am grateful to be a part of an organization that facilitates electronic commerce across all segments of our industry ecosystem, allowing us all to be more efficient and profitable in our endeavors.”

CCC Intelligent Solutions, a CIECA founding member, was named Electronic Commerce Company of the Year. “CIECA truly does power e-commerce in this industry,” said Mark Fincher, vice president of product management at CCC Intelligent Solutions. “We’re thankful for the work that so many of the volunteers do every single day to create these standards to facilitate this open commerce.”

Collision Industry Conference (CIC) This is the second year the Collision Industry Conference (CIC) has given out a Volunteer of the Year Award.

This year’s recipient was Aaron

16 JANUARY 2025 AUTOBODY NEWS / autobodynews.com

“This is very cool and very unexpected and I’m super grateful,” said Schulenburg. He said his first CIC was more than 20 years ago, when March Taylor told him that that more young people needed to attend the meetings, stand up and be vocal, write articles and “say the stuff that matters.”

Collision Repair Education Foundation (CREF) CREF presented three Fueling the Future Awards.

The first was given to Josh Kent, executive director of the Carolinas Collision Association (CCA). Amber Ritter, of CREF, said under Kent’s leadership, CCA has brought 32 regional schools into its network and has raised nearly $13,000 over the past three years for student scholarships and uniforms.

Julie Lombardo, left, Amber Ritter, center, and Greg Brink, right.

Greg Brink, a retired instructor and advisory committee member of Rock Valley College, and Julie Lombardo, executive director of the Alliance of Automotive Service Providers of Illinois (AASPI), were the other two recipients. They worked together to help open a new collision repair program at Rock Valley College.

FenderBender FenderBender and ABRN magazines gave out two awards.

The Best Repair Planner/Estimator

Award was presented to Anthony McNee from Ultimate Collision Repair in Edison, NJ. “I would like to thank everybody who put this event together; it means a lot to me,” said McNee. The FenderBender Award, which recognizes outstanding owners and operators whose businesses represent quality, service, culture and community involvement, was given to Amber Alley, general manager of Barsotti’s Body & Fender in San Rafael, CA, for fostering a team-based work structure, OEM certifications, quality repairs and OEM training.

“I reflect back over the last 10 years, coming to these meetings and the mentorship that I’ve received from so many people in this room, and I don’t think I’d be here without it,” Alley said. “I think it is very important to surround yourself with people who you look up to and respect and want to see you … do the right thing.”

Andrew Johnson, left, Amber Alley, center, and Jay Sicht, right.

Hall of Eagles A legacy industry award added this year was the Collision Industry Hall of Eagles, the industry’s hall of fame.

The award was presented by two inductees: Chuck Sulkala, inducted in 1989, and Stacy Bartnik, inducted in 2010.

Sulkala announced Janet Chaney as this year’s Hall of Eagles inductee.

“I’ve always had such great respect for our industry and our people and the Hall of Eagles,” said Chaney.

“I never ever dreamed I would be getting to share the stage with these champions of our world.”

I-CAR The Jeff Silver Memorial Award for Platinum Individuals was presented to Jared Nicholson of Collision Leaders in Lee’s Summit, MO. The award honors an individual who has been a champion of the Platinum credential — I-CAR’s highest recognition for individuals — and has held their Platinum status for a minimum of five consecutive years. l CONTINUED ON PAGE 32

Returning EV Lease Volume Set To Spike 230% by 2026 All those hefty incentives that have made leasing a centerpiece of the EV sales strategy may create some complications for the used-vehicle market during the next two years.

According to recent J.D. Power data, a glut of used EVs will be coming off lease throughout 2026 and beyond, while, at the same time, there is likely to be a significant slow-down in returning lease volumes for gas-powered vehicles.

That lopsided dynamic in supply, combined with changes in EV pricing, uncertainty about the future of tax credits and incentives and concerns about long-term battery health will create some new complexities for consumers.

Wave of Used EVs Coming Due in large part to a provision in the federal Clean Vehicle Tax Credit, which allows auto dealers to pass along a $7,500 tax credit to all EV lessees, nearly half (46%) of all franchise EV sales and 21% of total EV sales — including Tesla — in 2023 were leases.

That trend continued throughout the first nine months of 2024, with the lease share of total franchise and Tesla EV volume reaching 30%.

Meanwhile, lease volumes for gaspowered vehicles have been lower than pre-pandemic levels. Industry-

wide, just 2.4 million gas-powered vehicles were leased in 2023. While that represents a 17% increase from 2022, it is still considerably lower than the pre-pandemic average of more than 3 million leases annually, which will likely create a shortage in usedvehicle availability in 2025 and 2026.

As a result, returning EV lease volumes are projected to decrease 2% in 2025 before surging 230% in 2026, when a total of 215,000 EVs will come off lease.

Meanwhile, overall returning lease volumes, including both gas-powered vehicles and EVs, have been on a sharp decline, falling 37% since 2020.

That trend is expected to continue through 2025 when roughly 2 million total vehicles will come off lease, down from 4 million in 2020. That means that, by 2026, the total share of EVs in the returning lease mix will be 5.3%, up from just 1.6% today.

Cycle of New EV Leasing Likely to Continue Another trend influencing the dynamics of the used EV market is the steady decrease in EV prices during the past two years.

For example, in the compact SUV segment, the average transaction price

for a new vehicle is currently $35,900, down $12,700 from $48,500 in 2022.

Driven by a combination of increased sales incentives and increased supply of new models, the steady decline in EV prices has created a scenario where lease buyouts, which had been a popular option for the past few years during supply constraints, no longer make economic sense.

The average returning lessee in the compact SUV segment is paying $583 per month for their vehicle, and the average residual value of their vehicle is $29,645. Importantly, that means the buyout price of the majority of compact SUV EVs is higher than the $25,000 threshold that would qualify for the used EV tax credit. Accordingly, it would cost the average returning lessee in the compact SUV EV segment $477 per month to buyout the lease. Meanwhile, the average lease payment on new vehicles in the same category is just $457 per month.

Add to these stats the facts that it would be significantly more expensive to lease or buy a comparable gaspowered vehicle, and that 94% of current EV owners say they are likely to consider an EV for their next vehicle purchase or lease, and it becomes clear that — under current cost and

incentive structures — returning EV lessees are likely to lease new EVs. Uncertainty Abounds Of course, all these projections assume that current federal tax incentives and manufacturer incentives on EVs continue to be offered at the same rates, neither of which is a certainty.

The results of the U.S. presidential election, consumer demand for new EV models, and continued improvements in EV range will all weigh heavily on the future dynamics of the used vehicle marketplace.

Long term battery health will also be a factor in this equation. With federal regulations requiring minimum EV battery warranties covering owners for eight years or 100,000 miles, this potentially costly maintenance item will start to become a much bigger factor in the consumer calculus of used vs. new vehicle purchases.

Together, this new mix of variables, which has not previously affected used-vehicle valuations, will now become a big part of the consumer value equation. With 279,300 EVs set to come off lease in the next two years, the results will tell a lot about the future of the used-vehicle marketplace.

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Collision Repair Shops Should Leverage AI To Improve Customer Experience, Capture More Jobs

By Abby Andrews Autobody News

Artificial intelligence (AI) is transforming the way many industries do business – including collision repair – and Ryan Taylor, founder and CEO of BodyShop Booster, knows how body shop operators can use it to gain an advantage.

Taylor presented “AI is Here: How Others are Leveraging AI Interactions with Automotive Consumers” during the 2024 SEMA Show, with tips on how AI can help shops capture more business, reduce staff’s administrative burden and improve the customer experience to increase repeats and referrals.

Taylor quoted Rupert Murdoch, who said, “The world is changing very fast. Big will not beat small anymore. It will be the fast beating the slow.”

“Nothing is faster than AI,” Taylor said. “I have never seen anything move this quickly, proliferate into different industries quicker or allow companies to speed up faster.”

Taylor, who previously owned a network of eight body shops and a mobile hail damage repair business, told the story of a customer who

claimed one of Taylor’s shops had incorrectly repaired the front passenger seat belt in her car, and her 11-year-old daughter went through the windshield when the customer had to hit the brakes suddenly.

When Taylor saw the car, the windshield wasn’t even cracked, and the seat belt was only twisted.

Relieved, Taylor asked the customer what was going on. She told him she’d had a terrible experience with his shop, which her insurance company had directed her to use. She felt like the staff

Ryan Taylor, CEO of BodyShop Booster, said AI can address several issues shops should look at before spending more money on marketing.

didn’t care and didn’t communicate.

She said Taylor’s shop would never touch her car again and she was going to switch insurance companies.

“What if 5%, 15%, 50% or God forbid, 100% of our customers are also being asked for their claim number, not their name? This is the silent killer of business right here,” Taylor said.

Getting repeat business and referrals is key, Taylor said. In 2011, when that customer vowed to never use Taylor’s shop again, his average severity was $3,300, meaning that customer had only brought in $3,300 to his business. But if the shop had been able to get repeat jobs or referrals, the customer’s “lifetime value” would have been $147,000.

With average severity significantly higher now, a single customer’s potential “lifetime value” is now also much higher.

“If we unlock this, things will change for us in a big way,” Taylor said. “I’m going to show you three secrets of how AI is going to help you unlock these areas better than ever before.”

AI is currently moving from the “innovator” stage, as new tools and technology are developed, to the “early adopter” stage. Taylor encouraged the audience be one of those early adopters, as customer experience is going to be the “major differentiator” in capturing business.

“Everything we’re talking about today, in AI world, is the worst it will ever be,” Taylor said. “It’s only getting better.”

“To the Door” The first secret is to use AI to bring customers to a shop’s door.

Taylor said there is a national dropoff in shops’ backlogs, and several are coming to his business asking for marketing help.

“You need to fix this first,” he said.

Taylor said for every 100 customers who make contact with a shop after a crash, on average, only 57% get an estimate. The other 43% drop off.

The “tip of the spear” at the shop are the service advisors or customer service representatives who answer that first phone call, Taylor said. If they are doing their job effectively, there shouldn’t be any drop off.

He said whoever first speaks to the customer needs to get their personal information and vehicle information – which can be used to leverage any relevant shop certifications – while using a tone of voice that shows empathy for what the customer is going through.

“The drop off is cut in half if you get that info [in the first call],” Taylor said.

Taylor said he once worked with an

Allstate Sues Hyundai, Kia Over Fire Risk and Recalls Allstate and several subsidiaries have filed a federal lawsuit against Hyundai and Kia, claiming the automakers knowingly failed to address defects in millions of vehicles, resulting in severe fire risks.

The lawsuit, filed in the U.S. District Court for the Central District of California, accuses Hyundai and Kia of “purposefully and knowingly” neglecting to recall defective vehicles, thereby putting lives and property at risk. The issue dates back to at least 2006 and has reportedly led to numerous incidents of cars spontaneously erupting in flames, even when parked.

The suit highlights consumer complaints filed with the National Highway Traffic Safety Administration (NHTSA) beginning in 2011.

One complaint involved a Hyundai vehicle that caught fire while parked in a driveway. A forensic engineer attributed the fire to moisture in the braking system, which caused a short circuit in

the engine compartment.

Hyundai and Kia have issued 17 safety recalls to date, but the lawsuit alleges that some fixes were inadequate. “The unfair and deceptive trade practices committed by defendants caused plaintiffs’ damages,” the insurers stated in the lawsuit.

Allstate and its subsidiaries, including Esurance, National General, Integon and Safe Auto, claim their insured customers suffered extensive damages, including repair costs, loss of vehicle use, rental expenses and property damage caused by vehicle fires.

In November 2020, Hyundai and Kia reached a consent order with the NHTSA, agreeing to pay a record $210 million civil penalty for failing to recall over 1.5 million vehicles in a timely manner.

The lawsuit aims to recover the costs paid to insured customers for damages, holding Hyundai and Kia accountable for their alleged negligence.

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OEM to call its certified shops, posing as a potential customer, to rate their first contact. He played one of those calls, in which the employee who answered the phone only asked what insurance company the customer was with.

Taylor then called a New York body shop’s existing AI assistant, which answers the phone if an employee is unavailable. The AI assistant expressed empathy for Taylor’s made-up accident in a 2022 Toyota Corolla, told him the shop was certified by Toyota, got his name and phone number and then sent him a link so he could upload images of the damage to get an estimate started.

“It gets better on a weekly basis,” Taylor said. “Every conversation it has, it gets smarter.”

AI can also help streamline communication between employees within the shop, and between the shop and the customer, which saves everyone time and makes the customer feel better because the repair process is happening faster.

Dealerships can use AI to scan vehicles in their service lane that have some degree of damage – which, on average, is 41% — and generate a simple estimate, to get the customer into the collision repair center’s system.

AI is now at a point where shops can grab an assignment from an insurance company via its estimating system and make first contact with the customer via

email, text or voicemail, providing them with the next steps to file a claim.

“We know that when a customer is dealt with quickly, their consideration set shrinks,” Taylor said. “It doesn’t take any people. AI can do all that for you.”

“Through the Door” Once the customer is through the door, AI can reduce the administrative burden on shop staff.

Taylor said in a survey, 63% of employees said they were afraid to ask their superiors for help or advice, but they love to chat with AI because they don’t feel judgement.

He said AI can be used by loading shop procedures and letting staff ask it questions.

On average, shops capture about 56% of estimates they write. AI can be used to “tighten that gap” before spending on money on marketing, Taylor said.

He gave a hypothetical example of a shop that writes 100 estimates and gets 56 jobs. If management spends money on marketing and gets 200 estimates, it increases the workload on staff. Typically, their work would suffer, and the shop’s capture rate would shrink – say to 40%, which would be 80 jobs.

If that shop instead increased its capture rate on those 100 estimates to 80%, it would get 80 jobs without stressing out staff.

There are two ways AI can help sell more estimates, Taylor said.

The first is to sell to the “second buyer.” For example, a married couple may both be on an insurance policy, but only one person speaks with the shop about a claim. They then decide with their spouse which shop to choose. If all they have is estimates, they typically just pick the cheapest option.

Taylor said AI can be used to create a video explaining to the “second buyer” why a shop is the right one. One shop that implemented that practice found it increased capture rate by 5%.

The second is estimate follow-up.

Taylor said 91% of shops reported they don’t do any estimate follow-up because it’s time consuming. AI can be used instead to send emails and texts to those potential customers.

AI can also let customers schedule their repairs, reserve a rental car and sign documentation.

“Out the Door” It’s 70 times more expensive to get a new customer compared to getting repeat business or a referral from a current one, Taylor said. However, a survey by an insurance company showed only 1.56% of customers who’d had a car repaired had referred someone else to the body shop they used.

Taylor said in most customers’ minds, body shops are all the same.

The best way to stand out – to make your customer remember you when they see someone else who needs your services – is to be efficient and responsive.

“When you [quickly] take that pain away for your customer…they will never forget you,” Taylor said. “When they understand you’re different, they will remember and refer you.”

Use AI to reinforce that behavior, he said.

Mark Probst, a shop owner in Illinois, is doing just that, Taylor said.

When a customer leaves his shop after a repair, they get recorded a pre-recorded voicemail from Probst, thanking them for choosing his shop and checking on how the drive home went. They then get a text asking for feedback in a Google review.

Thirty days later, the customer gets another pre-recorded voicemail from the shop’s painter, letting them know the paint is 100% cured and they can now wax or polish it. That voicemail also thanks them for choosing the shop.

“When you add value to your customer, they will add value to you through repeats and referrals,” Taylor said.

“When we look at AI and all the automation, think about all the tasks you’re doing manually,” Taylor said.

“It’s about four hours per customer, but when you use AI, it’s 30 seconds.”

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‘Two Bites of the Apple’: Small MSO Sales Can Mean Double Rewards For Investors

By Elizabeth Crumbly Autobody News

As the collision world consolidates and owners of multi shop operations (MSOs) sell their businesses, a trend is emerging: investors purchasing smaller shop chains. That’s because private equity firms have a tough time making larger deals, explained Chris Lane, president of California-based Focus Advisors.

Chris Lane

Sales of larger chains the size of Classic Collision or Crash Champions don’t happen that often because organizations that size are few and far between, he said, and the buying of smaller chains trends usually originates with independent sellers.

“There are only maybe eight, nine, 10 of those that can possibly happen, and they happen every four, five, six years. So, there aren’t that many of those available. And they’re incredibly competitive,” he explained. “At least five years ago, we were approached by a number of private equity firms looking at that next size of platform -- a little bit smaller — something independent and not owned by a consolidator.”

That number, he said, has risen sharply in the past 18 months.

New Platforms Private equity firms, Lane explained, look for platforms to purchase — typically MSOs that span more than one market. These MSOs, he said, have proven they can develop across multiple units in different markets with success, making them attractive to investors. In the past, he said, he recommended investors look at platforms in the $50 million to $100 million range in terms of annual sales, but those platforms were rare, and the purchase process when one does come to market is “incredibly competitive.”

“They’re very expensive,” he said.

NHTSA Updates 5-Star Safety Ratings To Highlight Pedestrian Protection, Advanced Tech The National Highway Traffic Safety Administration (NHTSA) has finalized significant updates to its 5-Star Safety Ratings program, known as the New Car Assessment Program (NCAP), introducing advanced technologies and safety standards aimed at reducing road fatalities.

“These changes to the 5-Star Safety Ratings will speed up adoption of technologies that reduce the frequency and severity of crashes while helping consumers make informed decisions about buying a new car,” said U.S. Transportation Secretary Pete Buttigieg in a statement.

Key updates to the program include the addition of pedestrianfocused crashworthiness evaluations and four new advanced driver assistance technologies (ADAS), such as pedestrian automatic emergency braking and lane-keeping assist. Existing ADAS features, like automatic emergency braking, will also undergo enhanced testing to meet strengthened performance criteria.

A new pedestrian protection

component evaluates the ability of a vehicle’s front end to reduce injuries and fatalities in vehicleto-pedestrian collisions, part of a growing emphasis on protecting road users outside of vehicles to address increasing pedestrian fatalities.

“Our goal with NHTSA’s 5-Star Safety Ratings program has always been to help consumers choose safer vehicles and to encourage manufacturers to improve vehicle safety,” said NHTSA Chief Counsel Adam Raviv. “With these NCAP updates, we’re ensuring consumers have more useful and relevant information on the latest safety technologies.”

The revisions also include mid- and long-term plans to integrate future innovations in vehicle safety, particularly in crash avoidance and crashworthiness for bicyclists and motorcyclists, alongside an updated rating system. These changes are part of the Department’s National Roadway Safety Strategy to achieve zero road fatalities.

22 JANUARY 2025 AUTOBODY NEWS / autobodynews.com

“I think what happened over time is as more private equity firms became interested in getting in collision repair … I think they recognized that getting in at the size that they would ideally like to get in at — the odds of doing that are very small.”

Rapid Growth Private equity firms are now considering smaller platforms with three or four locations, and after making a purchase, firms try to grow those platforms rapidly through acquisitions. They may add two or three new locations in the first six months, he observed, to get close to the platform size they’re more comfortable with.

On the flip side of those sales, shareholders of independent MSOs are often looking to exit — to sell businesses outright.

Another scenario is recapitalization.

Shareholders, Lane explained, want to “adjust the capitalization table.” In this case, he said, shareholders who each hold a certain percentage of ownership sell some of their equity to become part of a reorganized ownership group with added partners.

A variation of the recapitalization scenario sees owners continuing to run a business after an equity firm buys it. Investors, Lane pointed out, naturally have far less knowledge of the collision repair industry than independent MSO owners. In this instance, he said, the former owners partner with their buyers in a continued vision for the business.

Madeleine Roberts Rich

The sale process in this case includes comprehensive talks about business history and performance and the future, which may include new shop acquisitions and opening of brownfields and greenfields.

Focus Advisors helps with these sales frequently, and Lane said the best case isn’t always about finding

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the most money for sellers.

“The idea here isn’t just to get the highest dollar amount,” he said. “It’s to find the partner that you’re going to be operating alongside to grow this for the next five to seven years, so it had better be somebody you trust and that you like who shares your values. You get to choose who the best partnership is for you.”

Lane typically sees sellers putting some financial skin in the game, too.

“What they will do is they’ll come in and buy your business and then ask you to reinvest some of those proceeds back into this new entity that you’re both growing together,” he said. “Typically, an owner will have somewhere between 10% and 40% ownership in what they’re growing.”

The advantage to the owner, he explained, is that they’re selling a business for a decent valuation in the present, but they’re also helping to grow something over the next five to seven years, which they can sell again, eventually.”

“We call that two bites of the apple,” he said.

A Growing Trend As to why this trend is growing so quickly now, Lane said he sees the collision industry as relatively recession-resistant since third-party players — insurance companies —

foot so many of the bills. Cars are becoming increasingly complicated to work on, too, he pointed out, which means they’re more expensive to fix.

The price of parts continues to rise.

“Everything sort of has a builtin inflationary measure to it, which means that revenues are going to go up almost no matter what.”

That dynamic, he contended, makes the market attractive to investors.

The trend of smaller chain sales, Lane said, is taking place across the country, but it’s important to investors to seek out healthy markets where they feel they can truly grow.

Those markets, he said, are typically metropolitan and not already heavily consolidated, making for more choices for acquisitions. He’s seeing most private equity investors who are typically keeping in place existing leadership with added depth for new skill sets. That process might include adding a chief financial officer who can bring in sophistication with financial planning.

“If you’ve already grown your MSO to three, four, five locations and you’re doing a great job with it, they don’t want to monkey with that,” he said. “What they’re going to say is ‘Let’s look ahead and say that you’re going to be 10 locations. You don’t have the staff to do that. So let’s kind of bone up on that.’”

Careful Consideration It’s especially important for MSO sellers, contended Madeleine Roberts Rich, senior associate with Focus Advisors, to do thorough due diligence on potential private equity partners.

“They are going to thoroughly vet and do due diligence on any owner they partner with,” she said. “Be reciprocal … You’re going to be putting years of your life and, potentially, your team members’ lives, and probably a very significant portion of your net worth on the line. Not all private equity firms are created equal or have the same personality types or have the

same industry expertise.”

Private equity partnerships aren’t for every MSO owner looking to hand off their business, Rich said, but it’s for those hungry for something more.

“This is a perfect match for really hungry, ambitious entrepreneurs that want to take their collision repair business to the next level and that have teams they want to incorporate into that growth,” she said. “You’ve got to go in with a plan to get this kind of capital, but it can have massive rewards and eliminate bottlenecks to growth if you have a vision in mind.”

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autobodynews.com / AUTOBODY NEWS JANUARY 2025 23

MSO Symposium Looks At Economic Forecast, Discussion of Customer Satisfaction

By John Yoswick Autobody News

The MSO Symposium, an annual one-day conference created by and for multi-shop owners and operators, was among the events kicking off SEMA week in Las Vegas in early November. About 400 people attended the event, the most in its 13year history.

With consolidation continuing in the industry, David Roberts of Focus Advisors provided a market update, saying he sees no decline in private equity firm’s involvement in the industry.

“It’s clear there is really continued strong interest from private equity firms,” Roberts said. “There’s going to be money to help you grow or to exit when you feel it’s time. We don’t see any slowdown in this.”

In a presentation titled, “Where the Economy is Headed in 2025 and Beyond,” Nasdaq chief economist Phil Mackintosh said the U.S. is in what he called a “Goldilocks” economy.

“We’re not too hot, we’re not too cold,” he said, noting that inflation is essentially back to the Federal Reserve target level, and the unemployment rate is “close to multi-

decade lows.”

“Most of the developed economies in the world have avoided recession but kind of ‘just’ avoided,” Mackintosh said. “They’re not growing that strongly. The U.S. is a little bit of an exception. It’s growing much stronger than most of the other markets. So we’re doing really well.

“But the reality is there’s not too much heat in the global economy anymore. So it makes total sense that interest rates are coming down from the highs that they got to as

Nasdaq chief economist Phil Mackintosh kicked off the “MSO Symposium” with a generally positive outlook on the economic outlook heading into 2025

central banks started to tackle the inflation problem. I could argue that maybe the U.S. should have followed Canada’s lead and started a bit earlier

and gone a bit further by now,” he said, adding he thinks the current 5% interest rates should be closer to 3% “sooner rather than later.”

The Fed cut rates by a quarterpoint three days after Mackintosh spoke.

He shared data showing that wage increases have outpaced inflation at all income levels by 3.3% or more.

“I know it’s hard to believe because people seem to think inflation has been much higher than wage growth,” he said. “But across the board, wages gone up more than inflation.”

He said the recent uptick in unemployment is different from the past in that it’s not being caused by layoffs.

“We are pretty close to 20-year lows in terms of layoffs,” he said. “So what’s interesting is what is causing the uptick in unemployment is prime age workers coming back into the workforce. There’s a lot more people looking for work. It’s totally different from a consumption perspective because when they get a job, they’ll start spending, rather than it being people losing their job and stopping spending. So that’s really kind of good news that the unemployment rates are coming up because people want jobs, not the opposite. Good

news for companies, too, because it takes a bit of pressure off wages.”

At one point during the “Great Resignation,” there were two advertised job openings in the U.S. for every person looking for work.

“That’s now come back down pretty close to one-to-one,” Mackintosh said. “So for a company thinking about labor shortages, things look a lot better now than they did two years ago, three years ago. So again, not too hot, not too cold, right?”

Impact of Election Outcome Speaking the day before the U.S. presidential election, Mackintosh was asked what effect the outcome might have on the economy next year. He shared a chart showing data back to the Nixon administration, with periods of growth and recession during both Democratic and Republican presidencies.

“So I have some good news: The reality it, it doesn’t really matter in terms of the stock market who wins,” he said. “For anyone who’s got an investment portfolio, it doesn’t matter who wins.”

Beyond that, he said, either candidate is likely “to increase the deficit and that could keep interest rates higher for longer, so that’s not

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great.”

Trump’s proposed tariffs will likely raise prices, he said.

“I guess the expectation is everyone’s taxes will go down at the same time, so incomes go up again, but that’s inflationary,” Mackintosh said. “So I think if there was an inflation risk on either side, it would be Trump winning. But then Harris wants to increase corporate taxes, and I’m guessing none of you guys

“So if there’s anything that you take away from this today, there is a real opportunity to ensure that transparency and the efficiency of supplement review and supplement approvals.”

— KYLE KRUMLAUF

CCC INTELLIGENT SOLUTIONS

want that either, right? So is that a good diplomatic answer?”

Key Moments Impacting Customer Satisfaction CCC Intelligent Solutions generally offers a look at the latest industry data at the MSO Symposium, and this year was no exception, with

CCC’s Kyle Krumlauf providing context to industry stats and trends his company is seeing.

Krumlauf highlighted a couple key points from a recent CCC study into the “moments of truth” in the claims and repair process, the focal points that have the most impact on customer satisfaction.

“The top driver is transparent, detailed explanation of repair needs,” Krumlauf said. “One thing I would call out here is having a good translator — or being a good translator — on the repair side when you’re talking to a customer and helping them understand. They may not be familiar with the technologies in a vehicle, what it requires to do the repair. Making sure that someone is able to speak a language that they can understand.

That seems to be the No. 1 driver in satisfaction with consumers.”

He said customers want “consistent frequency of contact with a shop throughout the process,” and “they expect a timeline and the work to be done within that timeline.”

In fact, the length of time to get the vehicle repaired and back can have the biggest negative impact on customer satisfaction.

Krumlauf noted the one element of this are supplements. On claims that included a supplement, he said, the average number of supplements

per claim has risen from about 1.7 as recently as mid-2021 to 2.1 this year.

The average dollar amount of those supplements has risen from about $1,001 in early 2020 to $1,574 this year.

“Of course carriers want to be very, very careful in reviewing those and being sure that they’re approving what is necessary,” Krumlauf said.

“But CRASH Network in their quarterly surveys consistently report that one of the major causes for backlog is carrier responsiveness on [supplement] approvals. So if there’s anything that you take away from this today, there is a real opportunity to ensure that transparency and the efficiency of supplement review and supplement approvals.”

He said he’s watching corporate return-to-office policies as that, too, affects the industry because of when and how much people are driving.

“Amazon changed their policy and starting in January, they are requiring everyone to return to office full time,” Krumlauf said. “In my mind, there could be a domino effect, with other major corporations. You could see a lot more people driving during rush hour, Monday through Friday every week.”

2025 WIN Conference Registration Open The Women’s Industry Network (WIN) has opened registration for its 2025 Annual WIN Conference, set to take place May 5–7, 2025, at the Hilton Orlando Lake Buena Vista – Disney Springs Area in Lake Buena Vista, FL. This year’s theme, “Create Your Own Magic,” emphasizes innovation, empowerment and professional growth within the collision repair industry.

The conference aims to inspire attendees to refocus on their career paths and reignite their passion for the industry, while also providing a space for reflection and growth.

Early-bird rates of $600 for WIN members are available until March 1. Afterward, member rates increase to $700, and non-member tickets are $750.

WIN membership, which costs $95 annually, offers discounted registration rates.

For additional details, visit thewomensindustrynetwork. site-ym.com/page/Conference

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BASF ‘Techs For Tomorrow’ Students Gain Experience, Make Connections At 2024 SEMA Show

By Abby Andrews Autobody News

BASF and the TechForce Foundation teamed up to grant five $2,500 scholarships and a trip to the 2024 SEMA Show to aspiring collision repair students, as part of the Techs for Tomorrow initiative.

The students selected for the BASF Techs for Tomorrow scholarship and

Mindi Cogdill of UTI Houston in Texas; Jocelyn Pandolfo of the Pennsylvania College of Technology in Williamsport, PA; and Farren Moody of Fayetteville Technical Community College in North Carolina.

The students’ SEMA experience included three days and two nights of immersive activities at the convention that enhanced their knowledge and industry connections. The students

Students chosen for this year’s Techs for Tomorrow program received a $2,500 scholarship and a trip to the 2024 SEMA Show.

SEMA experience included Nolan Sousek of WyoTech in Laramie, WY; Dustin Detwiler Jr. of Aims Community College in Greely, CO;

attended industry events, visited exhibitors showcasing their latest innovations, and engaged directly with team members. Additionally,

students had the unique opportunity to meet industry experts and participate in mentoring sessions with leading custom builders, who serve as BASF ambassadors.

During the SEMA experience, students received mentorship from BASF’s Marketing Communications Manager Tina Nelles and Business Development Manager John Shoemaker, who helped the students make industry connections to jumpstart their careers.

“We believe that investing in the education and development of young talent is crucial for the future of our industry,” said Nelles.

“This partnership with TechForce Foundation and the opportunity to engage with students at SEMA exemplifies our commitment to nurturing the next generation of skilled technicians.”

Cogdill, 22, originally from Marysville, OH, is a student in the collision repair and refinishing technology program at UTI Houston.

After she graduates in June 2025, Cogdill will intern at a hot rod shop, thanks to the scholarship and connections she made at SEMA. Cogdill is pursuing a career in customs and restoration, and plans to

intern and learn as much as possible for the next few years to gain the knowledge and experience to one day own a shop.

“My trip to SEMA had a huge impact on the vision I have for my future,” Cogdill said in an email to Autobody News. “I learned about different techniques and new technology for body repair and refinishing that left me speechless. Sometimes I forget how advanced technology is, but I was quickly reminded!”

After meeting with representatives of BETAG to learn about their new paintless dent repair (PDR) technology, Cogdill was offered a free seat in a training program.

“I’ve never had an experience like that, and I was overwhelmed with gratitude,” she said.

Cogdill also admired a 1966 Ford Bronco, built by RMD Garage and nicknamed “Pure,” and talked with Ralph Holguin about his role in the build.

“Every step of the build was incredibly thought out,” Cogdill said. “[Holguin] had an in-depth reason for each part that he assembled, and those reasons are things that most people never think about.”

Cogdill said she has a 1974 Toyota Land Cruiser that she plans to build

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after she graduates. Her conversation with Holguin gave her “a lot of insight on how I want to proceed with my Land Cruiser and every car I build in the future,” she said.

Cogdill encouraged all eligible students to apply for the BASF Techs for Tomorrow scholarship.

“The amount of people in the industry that attend SEMA is mindblowing. The conversations that come from simply introducing yourself to someone could

and better each and every day.

The people I met, the experiences I had, and the builds I saw were so impactful. I am so grateful for this scholarship, TechForce and BASF.” Moody is pursuing an associate degree in collision repair at Fayetteville Technical Community College. After college, she is aiming to work in a collision center, first as a technician and then an estimator. She plans to also pursue her diesel engine repair certificate to start her own business.

The five BASF Techs for Tomorrow recipients, along with three young industry members sent by Operative Talent, at the 2024 SEMA Show. completely alter your future for the better; you just have to take hold of the opportunity,” she said. “I took hold and my future looks bigger

Moody said her experience at SEMA was outstanding, both as a car enthusiast and an aspiring member of the collision repair industry. She

said she learned a lot about new equipment and techniques.

“One thing that struck me the most is learning from everyone we met, [they] all began in the shop,” Moody said. “By building their network, gaining experience and applying for positions they know they will excel at, it shows that there are more opportunities than remaining in an auto body shop.”

Moody also advised all eligible students to apply for a Techs for Tomorrow scholarship. She credited her own instructor, Doug Irish, for pushing her to apply.

“I had the thought there were so many students out there, no way I would have been chosen,” Moody said.

“I was beyond the stars excited that I was picked, not only for the SEMA experience but also the scholarship.

Don’t hesitate, apply, and have a positive mindset. When you think it won’t happen to you, it will. BASF is an amazing organization and outstanding folks who represent them.”

Also joining the Techs for Tomorrow recipients were three young collision repair industry members who attended SEMA courtesy of Operative Talent: Jesse Simpkins, Austin Shepherd and Aliya Lentowicz.

Operative Talent is a collaboration between The Petty Family Foundation, Collision Repair Education Foundation

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Shepherd is a recent graduate of Appalachian State University in Boone, NC, where he earned a bachelor’s degree in industrial design with a concentration in product design. He is now working as a designer at KTL Restorations in Danville, VA, with a goal to “continue designing in the automotive industry and see where it takes me,” he told Autobody News.

“SEMA was an absolutely incredible experience,” Shepherd said.

Shepherd said a lunch with several custom car builders was among his favorite moments at the show.

“I had the privilege of meeting some truly talented people within the custom automotive industry, such as the Ring Brothers, Jonathan Goolsby, Tyler from Revision Rods & Rides, and many others. I also got the opportunity to meet Chip Foose, which was something I never thought would happen. It was truly amazing,” Shepherd said.

“My advice is to just reach out and build those connections. You never know where they will lead you,” Shepherd said. “I would not have been able to go to SEMA or do anything I’ve talked about if I did not reach out to people.”

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l CONTINUED FROM COVER

Collaboration Important through proprietary research on outcomes that customers care about.

CCC worked with Magid Research, a prominent market research firm, to collect the data used in the study. Our goal was to examine the connected claims and repair journey.

How would you describe a ‘Moment of Truth?’

A moment of truth is a concept that comes from the service industry.

It’s a critical point in time during the customer journey that significantly impacts customer satisfaction and retention.

The outcomes we were studying were the satisfaction scores that consumers give their insurer or repairer after a claim. Typically, they will tell you everything is important, so you need to use statistics and regression analysis to learn what really drives that score.

Some of the moments studied included how consumers perceived communications, the empathy received, and the time it took to repair the vehicle.

What did the research reveal and what were the key takeaways?

Our research showed that during the claims experience, consumer satisfaction with insurers and repairers is closely linked and their collaboration plays a pivotal role in each other’s satisfaction scores.

For example, respondents were more satisfied with carriers when they perceived overall vehicle repair quality to be high; they were more satisfied with repairers when they received clear communications about how the claims process would work. This suggests that the entire post-accident journey from “crash to keys” is one unified experience in which the providers are, in some instances, indistinguishable from one another.

The top moment of truth for consumers going through the collision repair process was a detailed explanation of repair needs.

The top moment on the insurance side was clear communication about the claims process. Both of those speak to transparency.

What is truly impactful about this is the industry has long been focused on speed with repairers measuring themselves on cycle times. We found things have shifted.

If consumers felt they received a transparent and detailed explanation

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of repair needs, that was the single biggest impact on the overall score that the consumer gave the repairer at the end of the journey.

The second impactful takeaway is that insurers’ actions help repairers score points. If an insurer clearly communicates about the claims process to the consumer and he or she has a satisfying first contact with the insurance company, those two moments of truth help the repairers score points on the repair satisfaction side.

We also found this to be true when we looked at insurer satisfaction.

When high-quality repairs were performed or a consumer was able to get a loaner vehicle from a repair facility, insurers scored points.

This suggests that the process is very intertwined and connected and consumers view the entire process as one experience.

These findings have implications for how insurers and repairers work together to put policyholders at the center of the experience.

What was CCC’s reaction to the findings?

Certain findings were very revealing.

The research casts doubt on a long-held belief by insurance claims professionals that customer satisfaction, a metric by which claims

teams measure their performance, helps predict customer retention.

We found that most of the moments of truth that helped carriers achieve a positive customer satisfaction score were relatively insignificant in helping to determine carrier defection.

Three moments were the most powerful predictors of switching behavior. In a total loss, the policyholder was upside down in their outstanding loan and was able to cover the gap, the presence of an injury in the accident, and being a first-time claim filer. When all three are present, there is greater than a 3x increase in the likelihood of the policyholder leaving the carrier.

When we presented the findings to the industry and our customers, we found they were surprised. As a technology company that connects 35,000 entities in this industry, we have a unique lens and perspective on what’s going on. We want to offer insight to benefit the industry and help our customers achieve better outcomes.

How can repairers and insurers use the findings to improve customer satisfaction and retention?

We suggest insurers and repairers work more seamlessly together and that, in doing so, they focus on

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autobodynews.com / AUTOBODY NEWS JANUARY 2025 29 5/30/24 9:46 AM

transparency. The goal is to find how to provide transparency and speed to customers and utilize technology to achieve this.

On the insurers’ side, we found that repair satisfaction is really important to insurer satisfaction. The more an insurer can ensure a customer has a satisfying repair experience, the happier that customer will be and the higher their satisfaction rating will be.

Therefore, my top piece of advice for insurers is to work more closely with repair partners.

I also recommend repairers and insurers understand the three moments of truth that help predict when a customer is likely to defect.

Are there plans to conduct additional studies?

Yes, we’d like to delve further into the moments of truth that are causing technicians the greatest frustrations and potentially conduct future studies focused on the employee experience.

Is there anything additional you would like to share about the study?

If there was anything that I wanted to leave in the minds of a repairer, it would be how to inject transparency if the insurer is not communicating clearly about the claims process.

I think the other moments in the study are also worth exploring.

For example, the No. 2 moment of truth was having a satisfying dropoff experience. Repairers need to determine how they want to serve customers and how that translates into the drop-off experience. Do they want to offer a waiting room and refreshments while an estimate is being prepared for the customer, or do they want to offer a loaner vehicle right away?

Overall, the study highlights the importance of interconnectedness and the shared responsibility of carriers and repairers in customers’ minds to get them back on the road, regardless of who is responsible. This underscores the need for a unified, customer-centric approach focusing on configurability, personalization and retention management.

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Ford Reassigns 400 Bronco Workers Amid 10% Sales Drop Ford Motor Co. plans to reassign 400 employees from its Michigan Assembly Plant, which produces the Bronco SUV, to other nearby facilities in early 2025, as Bronco sales dropped 10% in 2024 through October despite recent signs of recovery.

The reassignments will move workers to either the Dearborn Engine Plant or Monroe Parts Depot in the first quarter of next year, a Ford spokesperson confirmed.

The Michigan Assembly Plant will maintain its current three-crew schedule to continue production of both the Bronco and the Ranger midsize pickup truck.

“We are encouraged by the momentum heading into the end of the year, which, along with this production adjustment, should further balance inventory of model year ‘24 vehicles as we head into the launch of model year ‘25,” Ford spokesperson Lars Weborg said in an email to the

Detroit Free Press.

Ford’s decision reflects broader adjustments across the automaker’s operations to align production with market demand. For example, the company recently announced a temporary suspension of operations at its F-150 Lightning electric truck plant in Dearborn through the end of 2024 due to slower-thanexpected demand for electric vehicles.

In Europe, Ford is also reducing its workforce by 14%, citing sluggish EV adoption in markets like Germany, where subsidies for EVs ended in late 2023.

The Michigan Assembly Plant will temporarily halt production during the first two weeks of January to prepare for the model year changeover.

Ford remains optimistic that adjustments across its operations will help align supply and demand while positioning the company for future growth.

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l CONTINUED FROM PAGE 16

Red Carpet Awards

community.

“Henry Arroyo has participated in National Auto Body Council Recycled Rides programs for a decade through Fix Auto USA and has gifted a number of vehicles to families in need and veterans over the years,” said presenter Debbie Teter. “I’m totally moved by his passion for giving back

Janet Chaney

Jerry’s Body Shop of Mankato, MN, received the Russ Verona Memorial Award for Gold Class Shops. The recognition honors a collision repair center that has demonstrated a longstanding commitment to excellence, upholding the Gold Class Standard and actively promoting training. The family-owned shop has held its Gold Class designation since 1991.

National Auto Body Council (NABC) NABC’s Changing and Saving Lives Award was presented to Henry Arroyo, owner of Fix Auto Cathedral City, Indio, Palm Desert, Palm Desert South and Palm Springs in California.

The award recognizes individuals in the collision repair industry who have delivered exemplary service to their

Doug Schlueter, left, Henry Arroyo, center, and Debbie Teter, right.

to the community. He’s an amazing example of those in our industry.”

Society of Collision Repair Specialists (SCRS) SCRS gave out three awards this year.

The 2024 Collision Industry Non-Individual Service Award was presented to the Enterprise Mobility Foundation for its contributions to developing the Collision Engineering Program and resources to attract and build up a new generation of skilled professionals equipped to

serve the collision repair industry.

Mary Mahoney, who accepted the award on behalf of the Enterprise Mobility Foundation, stressed the importance of industry, education and community coming together.

“Nobody can do this on their own.

It’s an honor to work with every one of you,” she said.

The 2024 National Lifetime Achievement Award was presented to Ron Reichen, owner of Precision Body & Paint in Oregon. A past SCRS chairman, Reichen has been involved in several industry organizations, including CIC, CIECA and I-CAR. Mike Anderson, owner of Collision Advice, received the 2024 March Taylor Kīnā ‘Ole Award.

Kina’ole, a Hawaiian belief sometimes interpreted as flawlessness, was embodied by March Taylor, who owned Auto Body Hawaii and served on the SCRS Board of Directors. It represents doing the right thing, in the right way, at the right time, in the right place, for the right individual, for the right reason, with the right feeling, the first time.

Anderson said when you’re growing up, there are people you want to be proud of you. “When I first heard about the man March Taylor, he was someone I wanted to

be proud of me,” said Anderson.

SCRS also recognized Jeff Hendler for his role in influencing the generations of people who followed him, working on the industry through CIC, SCRS and everything in between, and the energy and passion he has invested over the years to make the industry better.

Pictured, left to right, are Aaron Schulenburg, Mike Anderson, Michael Bradshaw and Barry Dorn.

“It’s hard to not think of a lot of some of you as kids, and yet you’re full-grown, full-functioning adults that are taking this industry to another level that some of us wish that we’d get to,” said Hendler. “I thank each and every one of you, and I thank the society [SCRS] and I-CAR and CIECA and NABC and all the people who work together in this industry to make us what we are. We need each and every one of us.”

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autobodynews.com / AUTOBODY NEWS JANUARY 2025 35

Nominations Open For AACF Award

Stellantis CEO Carlos Tavares Abruptly Resigns

The Automotive Aftermarket Charitable Foundation (AACF) announced nominations are open for the first-ever AACF Humanitarian Award, sponsored

by NEXUS North America.

This prestigious award aims to recognize and honor outstanding individuals, companies, associations or groups within the automotive aftermarket industry who have demonstrated exceptional dedication to improving the lives of others through humanitarian efforts. Nominees for this award should exemplify compassion, selflessness and a strong sense of social responsibility. Their actions should have made a significant and positive impact on communities locally, nationally, or globally.

Nominations for the AACF Humanitarian Award can be submittedatwww.aftermarketcharity. org/humanitarianhero through Jan. 31. Nominations will be reviewed by a committee consisting of AACF Board and Executive Committee members as well as a NEXUS executive.

Stellantis is facing a critical crossroads following the resignation of CEO Carlos Tavares. The company, which once boasted industry-leading margins, is grappling with a sharp downturn in the U.S. market, political hurdles and technological competition.

Tavares, known for his costcutting expertise and aggressive management style, had led Stellantis to a near 12% operating margin in 2023, outpacing rivals like Ford and General Motors.

However, that success unraveled in 2024. A profit warning in September, attributed to falling U.S. sales and increasing consumer resistance to higher vehicle prices, pointed to deeper structural issues. The company’s market share has been eroding, and its share price has halved since March.

“Stellantis’ success since its creation has been rooted in a perfect alignment between the reference shareholders, the Board and the CEO,” said Henri De Castries, the company’s

senior independent director, in a statement. “However, in recent weeks, different views have emerged which have resulted in the Board and the CEO coming to today’s decision.”

The challenges ahead for Stellantis are multifaceted.

President-elect Donald Trump’s proposed tariffs on imported vehicles from Mexico could impact a quarter of the company’s EBITDA in 2025, according to S&P analysts.

Meanwhile, the European Union is increasing pressure on automakers to comply with stringent emissions standards, with penalties looming for vehicles that fail to meet efficiency benchmarks.

Adding to the urgency is growing competition from Chinese manufacturers offering EVs with advanced features and lower costs. To remain competitive, Stellantis must innovate in areas like battery technology and driver-assistance systems.

John Elkann, Stellantis chairman

and CEO of the company’s largest shareholder, Exor, will chair an interim executive committee while the board seeks a permanent successor.

Elkann has indicated the search will conclude by mid-2025, but the clock is ticking to reassure investors.

Stellantis shares fell 8.3% on Dec. 2, signaling skepticism about the path forward.

Speculation about potential successors includes Antonio Filosa, head of Stellantis’ Jeep division, and former Fiat Chrysler boss Mike Manley.

Industry observers have also suggested Elkann might consider candidates outside the automotive sector, as Sergio Marchionne once was when he joined Fiat from a semiconductor company.

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Revv Secures $20M Investment To Continue Roll Out of Award-Winning AI Platform Revv announced it has secured more than $20 million in funding, led by Left Lane Capital, with continued participation from Soma Capital, 1984 and Agalé Ventures.

Revv developed its platform to help the auto repair industry adapt to the sophisticated needs of Advanced Driver Assistance Systems (ADAS), which are now standard in 92% of new vehicles.

The platform leverages advanced large language models to condense hours of diagnostic research into seconds, aggregating data from more than 60 sources to provide clear, actionable repair packages for complex ADAS systems like automatic braking, adaptive cruise control and lane departure warnings.

The hardware-agnostic system integrates with all shop equipment and the full estimation software suite, ensuring immediate access to diagnostic information. Additionally, the embedded feedback loop from technicians enables continuous selflearning and improvement.

Revv ADAS Plus recently won the New Product Award in the Advanced Driver Assistance System (ADAS) Product category at the 2024 SEMA Show. Revv ADAS Mechanical was also a finalist in the category.

Revv was born in an auto repair

shop, where founder Adi Bathla, an early product leader at Misfits Market, observed the difficulties technicians faced with increasingly softwaredependent vehicles. Together with Rashmi Sinha, an engineer with a shared passion for modernizing offline industries, they developed a platform that not only tackled the technical demands, but also captured the invaluable, intricate OEM data sitting in the brains of the most experienced technicians.

This foundation enabled their initial product to rapidly gain traction, servicing more than 30 auto repair shops prior to taking on any funding.

“Every day, skilled technicians struggled with the myriad of repair procedures and the dense rulesets that vary by make, model and trim,” said Bathla, now CEO of Revv. “These challenges weren’t just technical; they directly undermined business efficiency and profitability. Recognizing the need for a change, we devised a system that exponentially cut down the research time for ADAS repairs.”

In just 16 months, Revv has expanded to 2,100+ repair locations and, in under seven months, surpassed seven figures in annual recurring revenue, with continued double- to triple-digit quarter-over-quarter growth since.

The platform’s ability to identify ADAS repair opportunities at the beginning of repair workflows has enabled shops to capitalize on these opportunities and boost revenue for vehicles already on site. Shops of all specializations and sizes, including body; collision; paint, dent and repair (PD&R); and calibration and mechanical, report dramatic results.

For example, one early adopter expanded from one location to 37 shops in four months, while another increased revenue by 75% in nine months by making ADAS repairs a core part of their business model with the platform’s support.

“Whether you are a small shop or a large MSO, whether you are an ADAS specialist, static or mobile, you have to through a lot of changes,” Bathla told Autobody News after winning the award at SEMA. “We’re here to support wherever you are, whatever type of business you are, whatever you have in your tech stack.”

“RevvADAS has quickly become an indispensable tool for us,” said Mike Stuver, COO of Complete Collision Solutions, a Texas-based repair services company. “The whole experience has been positive, from ease of setup to ease of use. It’s rare to see such quick adoption with new technology, but that

has been the case for us.”

“After an extensive market analysis of AI applications that genuinely solve problems and add value to end customers, Revv is among the strongest we’ve seen,” said Dan Ahrens, managing partner at Left Lane Capital. “They’ve built a solution that demonstrates a deep understanding of industry needs, positioning them as an essential platform for modern vehicle repairs. Their team is exceptional, and we are excited to partner with them long term.”

Revv is expanding its capabilities with the recent introduction of autoquoting and advanced documentation tools. Additionally, following successful trials in the mechanical repair space, the company has secured distribution agreements to supercharge its presence in this new market segment.

But Bathla has no plans of stopping there. “Our vision extends beyond diagnostics,” said Bathla. “We are committed to building a comprehensive 360-degree repair solution that serves shops of all sizes globally. By maximizing value at each location, we aim to help the entire repair industry navigate the increasing complexity of modern vehicles, ensuring safer cars and supporting repair shops to thrive in this new era.”

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Wishing You a Happy & Prosperous 2025 from the Team at

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