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CAA Lobbyist Discusses New CA Laws for 2019 by Ed Attanasio

Every year, hundreds of new laws are enacted that impact California’s automotive repair shops, both collision and mechanical. From huge MSOs to independent shops, these laws have the potential to influence collision repair centers everywhere if they don’t adapt and adhere to these new laws. Jack Molodanof, an attorney and lobbyist who has distinguished himself in areas of automotive legislative and regulatory law over the past 30 years, is the go-to lawyer/lobbyist in California for the automotive

repair industry and represents several statewide automotive associations, including the California Autobody Association (CAA), Automotive Service Councils of California (ASCCA) and the California Automotive Business Coalition (Cal-ABC). Molodanof also serves on the California Bureau of Automotive Repair (BAR) Advisory Group, which provides input on BAR programs. Below is a short summary highlighting some key measures that take effect in 2019, unless otherwise noted. Minimum Wage Increase: Reminder See New CA Laws, Page 16

Speakers at SCRS’ Ideas Collide Discuss Their Visions for Industry’s Future by John Yoswick

An automated system that can detect tiny dents or other vehicle “anomalies” within seconds. Collision parts being ordered within minutes of a crash. A not-for-profit data repository that would ensure shops have long-term access to their job file records. These were among the topics covered in a unique TED Talk-style presentation at “Ideas Collide,” a new session that the Society of Collision Repair Specialists (SCRS) hosted during SEMA in Las Vegas in

AUTOBODYNEWS.COM

Vol. 37 / Issue 2 / February 2019

Class Action Filed Against Two Auto Dealerships in California Alleging Violation of Labor Laws A California law firm has filed suit against two dealership groups in class action complaint alleging that DC Auto, Inc. and Magnussen Imports failed to pay proper minimum wages and did not provide the legally required off-duty meal and rest breaks to their employees. The Riverside Labor law attorneys at Blumenthal Nordrehaug Bhowmik De Blouw LLP, filed the class action lawsuit against DC Auto, Inc., alleging that the company failed to lawfully provide meal and rest periods and pay minimum wages to their California employees working for the company. The class action lawsuit against DC Auto, Inc., is currently pending in the San Bernadino County Superior Court, Case No. CIVDS1807525. The lawsuit filed against DC

Auto, Inc., by labor law attorneys alleges the DEFENDANT’S meal period policies and practices were unlawful because PLAINTIFFS and other CALIFORNIA CLASS Members were far too over-booked and overworked to take a timely off-duty thirty (30) minute meal period. The lawsuit further alleges that the failure of DC Auto, Inc., to provide the legally required meal and rest period is evidenced by the company’s business records. Additionally, the lawsuit alleges that DC Auto, Inc., does not accurately record all missed meal and rest periods, and fails to pay minimum wages due for all hours worked. Under California law, every employer shall pay to each employee, on the established payday See Labor Laws, Page 8

Challenges of Processing Hail or Other Catastrophe Claims Among Discussion at Recent CIC

timating system,” but McDonnell said “cat team” claims handlers aren’t With another hail season approach- always aware of that. ing, a panel discussion at last No“We had to go through that vember’s Collision Industry [PDR] company for a supConference (CIC) offered plement,” McDonnell said. insights from shops, insur“We sent it to them and they ers and paintless dent repair took off a significant amount. companies on reducing fricThey said, ‘We have an tion related to catastrophe agreement [with the insurer claims after a major storm. involved] and you don’t get paid for those things.’ I had Matthew McDonnell Montana shop to call them and tell them, of Big Sky Collision in Monowner Matthew tana described some of the McDonnell said not ‘We have a different regulaall those helping tion in Montana. You cannot challenges of working on an insurer handle disregard repair operations, such “cat team” claims, such catastrophe claims and I just want to let you as those managed by a paintafter a storm will know you’re inconsistent less dent repair company. be aware of laws and regulations in with Montana law.’ They Since 2011, for example, the state in which said, ‘Oh, I don’t have to Montana has had a law that they are working follow Montana law.’” prohibits an insurer from But although some states may “unilaterally disregard(ing) a repair operation or cost identified by an esSee Processing Hail, Page 20 by John Yoswick

Pete Tagliapietra of NuGen IT suggested the industry develop a not-for-profit data repository to give shops long-term access to their job file records and other data

November. SCRS invited 10 speakers to offer ideas or visions related to See SCRS’ Ideas Collide, Page 18

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FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

Don’t Miss the Weekly Industry NEWS Your Shop Needs.

CONTENTS REGIONAL

NATIONAL

2 Industry Veterans Appointed to CAWA’s

AkzoNobel Becomes I-CAR Sustaining

Business Survival in Gilroy, CA . . . . . . . . . . 12 CAA Lobbyist Discusses New CA Laws for 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 CAWA will hold its winter leadership meetings in Napa, CA, from Jan. 31−Feb. 1 . . . . . . . . . 6 Chair of CAWA Board of Directors Appoints Tom Marx to the Board . . . . . . . . . . . . . . . . 10 Class Action Filed Against Two Auto Dealerships in California Alleging Violation of Labor Laws . . . . . . . . . . . . . . . . . 1 Eric’s Auto Body Installs 80 Solar Panels in Its Colfax, WA, Shop . . . . . . . . . . . . . . . . 28 Hesperia, CA, Body Shop’s 3rd Annual Toy Drive Surprises Children . . . . . . . . . . . . 11 NABC Recycled Rides Presents 4 Refurbished Vehicles to Palm Springs, CA, Recipients . . . 30 NV Women Find Auto Technology Educational Opportunities Challenging, Rewarding. . . . . . 8 Oh Deer! Collisions Help the Hungry in ID . . . . . 6 Regional Association Event Announcements: February 2019 . . . . . . . . . . . . . . . . . . . . . . 69 Tow Truck Companies, Body Shops Keep Busy During Stormy Weather in CA . . . . . . . 14

Member . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 AMi To Host FCA Certified Collision

Anderson - Automaker’s Increased Role in Claims Seems Just on the Horizon as Connectivity Happens . . . . . . . . . . . . . . . 42 Attanasio - 5 Families Receive “A Gift of Charity Wrapped In Dignity” From Mike’s Auto Body . . . . . . . . . . . . . . . . . . . . 26 Attanasio - Eric Newell Is Not Afraid to Serve His Community in Different Ways . . . . . . . . 44 Ledoux - Early DRP Programs of the 1960s. . . 40 Ledoux - Will NACE Make a Comeback? . . . . . 48 Phillips - ALLDATA Showcases Diagnostic Scan Tool and Collision Repair Product . . . . 64 Phillips - General Motors Collision Repair Network Starts off With Strong Response from Industry . . . . . . . . . . . . . . . . . . . . . . . 58 Sisk - 180BIZ Presents ‘Keys to Real Delegating’ Webinar to AASP Members . . . . 34 Sisk - ASA Hosts RepairPal’s Jill Trotta for Webinar on Transparency and Trust . . . . . . . 46 Sisk - Automotive Women’s Alliance Foundation Hosts Holiday Celebration . . . . . . . . . . . . . . 52 Sisk - Dave Luehr’s December Elite Webinar Features Brad Mewes Discussing ‘Financing Growth’ . . . . . . . . . . . . . . . . . . . 38 Sisk - Mike Anderson Presents ‘Using the Subaru Technical Information System – Part 2’ . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

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Network Online Training . . . . . . . . . . . . . . . 66 ASA Appoints Ray Fisher to Serve as Executive Director. . . . . . . . . . . . . . . . . . . . 65 asTech Renews Commitment to CIECA Standards . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Axalta, Plenham Form 3-Year Global Alliance. . 61 Challenges of Processing Hail or Other Catastrophe Claims Among Discussion at Recent CIC . . . . . . . . . . . . . . . . . . . . . . . . 1 Chuck Olsen To Host CIECAst Webinar. . . . . . . . 4 Collision Career Institute Celebrates One of Their First Technician Graduates . . . . . . . 32 Collision Works Utilizes Symach’s FixLine Process. . . . . . . . . . . . . . . . . . . . . . 60 Consumers Confused by Partially Automated Driving Features . . . . . . . . . . . . . . . . . . . . . 68 CREF Benchmark Grant Applications Available to Collision Schools . . . . . . . . . . . 68 CREF Career Fairs Pair Eligible Graduates With Transportation Industry Positions . . . . . 66 CREF Invites Industry Businesses to Sponsor Student Safety Kits for Collision Programs. . 28

COLUMNISTS

Partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 AkzoNobel Joins CIECA as Corporate

Dave Luehr’s Elite Body Shop Academy

INDEX OF ADVERTISERS

Manufacturers’ Advisory Council . . . . . . . . . 22 Auto Manufacturers Threaten Local Bumper

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli, Gary Ledoux Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bill Pierce Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Rochelle Beckel Accounting Manager: Heather Priddy Editorial/Sales Assistant: Randi Scholtes

Serving Alaska, California, Hawaii, Idaho, Montana, Nevada, Oregon, Washington and Wyoming. Autobody News is a monthly publication for the collision industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2019 Adamantine Media LLC.

AkzoNobel Coatings, Inc.. . . . . . . . . . . . . . 13

Hyundai of Seattle . . . . . . . . . . . . . . . . . . 56

Alloy Wheel Repair Specialists, LLC. . . . . . 27

Hyundai Wholesale Parts Dealers . . . . . . . 58

Anchorage Chrysler-Dodge-Jeep-Ram . . . 10

Industrial Finishes and Systems . . . . . . . . 72

Audi Wholesale Parts Dealers . . . . . . . . . . 63

Kearny Mesa Subaru-Hyundai. . . . . . . . . . 50

AutobodyLaw.com . . . . . . . . . . . . . . . . . . 28

Kia Motors Wholesale Parts Dealers. . . 54-55

AutoNation Chrysler-Jeep-Dodge-Ram-Fiat. 18

Kia of Carson . . . . . . . . . . . . . . . . . . . . . . 42

AutoNation Collision Parts . . . . . . . . . . . . . 21

Killer Tools & Equipment Corp . . . . . . . . . . 34

Axalta Coating Systems . . . . . . . . . . . . 2, 11

Launch Tech USA . . . . . . . . . . . . . . . . . . . 71

BMW Wholesale Parts Dealers . . . . . . . . . 61

Matrix Automotive Finishes . . . . . . . . . . . . . 5

Chevrolet of Anchorage. . . . . . . . . . . . . . . 57

Mazda Wholesale Parts Dealers . . . . . . . . 61

Chrysler-Dodge-Jeep-Ram of Seattle . . . . 56

Mercedes-Benz Wholesale Parts Dealers . . 64

Classifieds . . . . . . . . . . . . . . . . . . . . . . . . 70

MINI Wholesale Parts Dealers . . . . . . . . . . 61

Colortone Automotive Paints . . . . . . . . . . . 20

Mitsubishi Wholesale Parts Dealers. . . . . . 69

Courtesy Chevrolet San Diego. . . . . . . . . . 41

MOPAR Wholesale Parts Dealers . . . . . . . . 39

Cutter Chrysler-Dodge-Jeep-Ram. . . . . . . 24

Moss Bros. Chrysler-Jeep-Dodge . . . . . . . 23

Dave Smith Motors . . . . . . . . . . . . . . . . . . 45

Nissan/Infiniti Wholesale Parts Dealers . . . 53

DCH Auto Group Temecula . . . . . . . . . . . . 47

Pacific Best, Inc. . . . . . . . . . . . . . . . . . . . . . 6

Dent Fix Equipment. . . . . . . . . . . . . . . . . . . 7

PaintEx . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Dent Magic Tools . . . . . . . . . . . . . . . . . . . 16

Penske Hyundai . . . . . . . . . . . . . . . . . . . . 48

Dominion Sure Seal . . . . . . . . . . . . . . . . . 19

Polyvance . . . . . . . . . . . . . . . . . . . . . . . . . 22

Downtown Motors of LA (Audi, VW) . . . . . . 51

Porsche Wholesale Parts Dealers . . . . . . . 60

Eckler’s Automotive . . . . . . . . . . . . . . . . . 31

Puente Hills Subaru . . . . . . . . . . . . . . . . . 38

ECS Automotive Concepts . . . . . . . . . . . . . 32

RBL Products . . . . . . . . . . . . . . . . . . . . . . 29

Enterprise Rent-A-Car. . . . . . . . . . . . . . . . 44

Riverside Kia. . . . . . . . . . . . . . . . . . . . . . . 30

Equalizer Industries, Inc. . . . . . . . . . . . . . . 40

SATA Dan-Am Company . . . . . . . . . . . . . . 17

First Auto Group . . . . . . . . . . . . . . . . . . . . 52

Sierra Chevrolet-Honda-Subaru . . . . . . . . 46

Ford of Kirkland . . . . . . . . . . . . . . . . . . . . 56

Spanesi Americas . . . . . . . . . . . . . . . . . . . 14

Ford Wholesale Parts Dealers . . . . . . . . . . 59

Subaru Wholesale Parts Dealers . . . . . . . . 65

Galpin Motors . . . . . . . . . . . . . . . . . . . . . . 43

Tacoma Dodge-Chrysler-Jeep-Ram . . . . . 33

Glenn E. Thomas Dodge-Chrysler-Jeep . . . 15

The Bay Area Automotive Group . . . . . . . . 49

GM Wholesale Parts Dealers . . . . . . . . . . . 67

Tonkin Parts Center. . . . . . . . . . . . . . . . . 8, 9

Honda-Acura Wholesale Parts

Vintage Flatz/Cumberland Products . . . . . 26

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

Launches Operations Monthly LIVE . . . . . . . 32 Driver Crashes Into Collision Repair Business Displaying ‘Don’t Drink And Drive!’ Truck in OR . . . . . . . . . . . . . . . . 10 Ford Recalls 953,000 Vehicles for Airbag Flying Shrapnel Threat . . . . . . . . . . . 60 GM To Double Resources for Electric, Autonomous Vehicles . . . . . . . . . . . . . . . . . 66 Industrial Finishes & Systems Names Vice Chairman. . . . . . . . . . . . . . . . . . . . . . . 32 Jason Caldwell Appointed to CAWA’s Manufacturers’ Advisory Council . . . . . . . . . 14 Maaco Named a Top Franchise for Veterans . . 27 New Car Technology May Lead to Sticker Shock at Auto Body Repair Shops . . . . . . . . 62 Speakers at SCRS’ Ideas Collide Discuss Their Visions for Industry’s Future . . . . . . . . . 1 Study Pours Cold Water on AI Driving Algorithms . . . . . . . . . . . . . . . . . . . . . . . . . 24 Tesla Owners Go Behind-the-Scenes at a Certified Tesla Repair Center . . . . . . . . 60 Tractable Joins CIECA as Corporate Member . . . 4 Unhappy AZ Residents Slash Waymo Tires, Derailing Self-Driving Cars, More . . . . . . . . . 4 Up to $60 Million Is Available for Testing ADS . . 65 Waymo Plans to Build Self Driving Plant in Michigan. . . . . . . . . . . . . . . . . . . . . . . . . . 4

Dealers . . . . . . . . . . . . . . . . . . . . . . 36-37

Volkswagen Wholesale Parts Dealers . . . . 62

Hyundai Motor America. . . . . . . . . . . . . . . 25

Volvo Wholesale Parts Dealers . . . . . . . . . 69

Hyundai of Kirkland. . . . . . . . . . . . . . . . . . 56

YesterWreck . . . . . . . . . . . . . . . . . . . . . . . 12

autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

Unhappy AZ Residents Slash Waymo Tires, Derailing Self-Driving Cars, More The advent of any new technology is accompanied with complaints, as seen with Wing’s delivery drones, but in the case of self-driving cars, there have been more radical expressions of discontent.

attacks since 2017 that range in severity from seemingly pure mischief to more serious acts. The most brazen incident took place in August 2018 when a man armed with a handgun tried to scare the safety driver in an autonomous Chrysler Pacifica. That man in ques-

As Waymo tests and operates vehicles in Phoenix, some Arizona residents have taken to threatening or even damaging the cars. A New York Times report on Dec. 31, 2018 followed up on incidents that were first brought to light by the Arizona Republic earlier that month. There have been at least 21

tion cited the Uber incident that killed a pedestrian earlier that year, and he was eventually charged with aggravated assault and disorderly conduct. Another safety driver was threatened with a PVC pipe, while other incidents involve people throwing rocks, blocking routes and slashing the tires of Waymo vehicles. There were also

by Abner Li, 9to5Google

Waymo Plans to Build Self Driving Plant in Michigan Google’s self-driving car spinoff Waymo said Jan. 22 it will bring a factory to Michigan, creating up to 400 jobs at what it describes as the world’s first plant “100%” dedicated to the mass production of autonomous vehicles. The company plans to spend about $13.6 million to retrofit a to-be-determined manufacturing facility in the Detroit area. In exchange, it will get a state incentive grant worth up to $8 million that was approved by the Michigan Strategic Fund Board. Waymo spokeswoman Alexis Georgeson said the company plans to hire up to 400 people to work at the factory, including engineers, operations experts and fleet coordinators. She said Waymo is looking for a site and hopes to open the plant in the middle of this year. A memo from the Michigan Economic Development Corp. says Waymo will create 100 jobs, with the potential for up to 400, and it chose Michigan despite a “high level of interest” from states in the Midwest, South and Southwest. 4

The company integrates its self-driving system into vehicles it buys from automakers and is currently testing autonomous Chrysler Pacifica minivans in a preferred rider program for passengers in the Phoenix area, but with human backup drivers on board. It plans to expand the service to the San Francisco area but has not given a time frame. Waymo previously announced plans to buy 62,000 Pacificas and 20,000 I-Pace electric SUVs from Jaguar. Waymo has a 20-employee facility in the Detroit suburb of Novi where it tests vehicles in snowy weather. It will locate the new factory in Wayne, Oakland or Macomb counties, where the auto industry dominates the economy with thousands of jobs from U.S. and foreign-based automakers as well as parts supply companies. “As we begin to commercialize our business and vehicle supply grows, we’re laying the foundation for a scalable, robust vehicle integration plan, starting in Michigan,” the company said in a blog.

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

Chuck Olsen To Host CIECAst Webinar

attempts to derail the car while it was autonomously driving. One particular Jeep tried to run the Chrysler Pacificas off the road six times in 2017. In all these cases, Waymo or the safety drivers have not pressed charges. The Alphabet division directs its drivers to first contact the internal dispatch system during incidents. In fact, police contact is reportedly kept to a minimum, with one incident not being reported until four days after it took place. According to the NYT, Waymo in some cases is unwilling to provide footage of the attack. This defeats the benefit of self-driving vehicles always maintaining video of everything happening around the car. Waymo noted that these incidents only represent a small fraction of operation and pushed back against the narrative that it was trying to avoid bad publicity by not pursuing charges. The incidents have not turned Alphabet away, with Waymo noting how “over the past two years, we’ve found Arizonans to be welcoming and excited by the potential of this technology to make our roads safer.” We thank 9to5Google for reprint permission.

Chuck Olsen, executive director of operations for AirPro Diagnostics, will host the next CIECAst webinar on Tuesday, Feb. 12 at 11 a.m. CST: “Interpreting and Documenting Scan Data, Trouble Codes, Calibration.” During his one-hour live broadcast, Olsen will discuss the proper application of Live Scan Data, DTCs and Service Information during the scan process for diagnostic and calibration decisions as well as the tools and equipment needed. Olsen has 40 years of experience in the automotive repair and technologies industry. His current focus includes operations and continued development of remote diagnostics, calibrations, programming procedures with data analysis for improved diagnostic results and documentation of confirmed electronic repairs and procedures. To register for the CIECAst, visit https://register.gotowebinar .com/register/835310128244 8106755

Tractable Joins CIECA as Corporate Member Tractable recently joined CIECA as a Corporate Member. The company focuses on using AI and computer vision for accident and disaster recovery and offers technology that can write estimates based on photo analysis without the need for an appraiser.

Founded in 2014, Tractable has offices in London, England, New York and San Francisco. Braden Holstege, engagement manager at Tractable, said the company has a large focus on the auto collision space and was looking to

identify the best ways to access and produce data related to estimates. They found out about CIECA while researching BMS and EMS standards. “We joined CIECA as part of the company’s commitment to ensuring that our software is standardscompliant and in the interest of being a good partner to the broader ecosystem of insurers and collision repairers,” said Holstege. “We are looking forward to getting more involved with CIECA at both a business and a technical level.” Holstege said all members of the auto collision ecosystem should be able to freely and easily share data with their partners. “Standards that enable the free exchange of data are critical to our business and beneficial to the industry as a whole,” he added. For more information, visit https://tractable.ai/.

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autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

Oh Deer! Collisions Help the Hungry in ID by Mary Malone, Bonner County Daily Bee

Deer hit their rutting season in November, which is why more deer are also hit by vehicles during that month. To bring awareness of that statistic, as well as to help out the community, Northwest Autobody and Towing, located in Sandpoint and Ponderay, ID, donated $50 for every wild animal collision repair done throughout the month of November to the Bonner Community Food Bank. “I was born and raised in Sandpoint, so it is huge for me to help the community that helps me, that built my business, that has made me who I am,” said Cory Donenfeld, who co-owns Northwest Autobody with his brother, Eric Donenfeld. “It makes me feel good to give back to my community.” This is Northwest Autobody’s third year of donating to the food bank from animal collision repairs. This year, 29 vehicles were repaired, totaling $1,450 to help the hungry. In 2016 and 2017, Northwest Autobody repaired 23 cars each year, coincidentally, for two donations of $1,150 to the food bank. In its two locations, Sandpoint,

creative in their ways of giving,” Love said. “I think it is a wonderful program that they are doing.” Cory said he and his brother enjoy being part of the community and are members of organizations such as the Greater Sandpoint Chamber of Commerce, the Rotary Club and the Sandpoint chapter of Business Network International. They also donate time and money toward a lot of nonprofits, he said. Eric also emphasized their enjoyment of giving back to the community, adding that they encourage their employees to give back as well. It’s a “feel good” (l to r) Howard Shay, Mary Beth Childers and Linda thing for them to help out, he Gibbs with the food bank; Eric Donenfeld, Kirk Dowd, said, echoing his brother’s Tim Greenwood, Jesse Hunt, Cory Donenfeld and sentiments. Mike Umbaugh from Northwest Autobody; and Debbie “And it’s fun,” he said. Love, Dean Miller and Carol Warren with the food bank. Credit: Mary Malone Northwest Autobody Accounts Manager Cindy tobody will help the food bank into Worley-Bahret said she has seen the new year and through January, first-hand the commitment the brothwhen donations tend to decrease ers have to the community. “They always want to give after the holidays. “We appreciate local businesses back,” she said. “And they want their like Northwest Autobody that are customers to know that this is not ID, and Priest River, ID, the food bank provides services to 900 area families, feeding more than 2,500 people each month. Debbie Love, food bank executive director, said the funds donated by Northwest Au-

CAWA will hold its winter leadership meetings in Napa, CA, from Jan. 31−Feb. 1. Committee and business meetings, social events and guest presenters on contemporary automotive issues will round out the event. There will also be a YANG Regional Meet -

Up in conjunction with the leadership meetings. All YANG members can attend the complete event free of charge. Presentations at the general session on Friday, Feb. 1, 2019 will include the following: • “Key Automotive Trends Impacting the North American Aftermarket” - Mark Seng, global aftermarket leader, HIS Markit • “Our Connected Future” - Joe Register, vice president, emerging technologies, Auto Care 6

Association • “Grow or Die” - Tom Marx, principal, Hart-Marx Advisors • “What You Might Expect in Legislation Next Year that Will Impact Your Business” - Panelists: Aaron Lowe, senior vice president, regulatory and government affairs, Auto Care Association; Gary Conover, California legislative advocate and Jennifer Zins, director of government affairs.

For more information on the event, contact programs@cawa.org. CAWA is an automotive aftermarket trade association, which represents auto parts jobbers, retailers, warehouse distributors, manufacturers, manufacturer representatives and program groups. The association provides educational, legislative and business support to the industry and its membership. It is one of the largest trade associations of its kind in the United States and recognized as a leader in the automotive aftermarket industry.

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

just a business for them to make money—it is a business for the community.” Cory and Eric’s father, Mel Donenfeld, opened Northwest Autobody in Sandpoint in 1976. In 2014, Northwest Autobody opened a second location in Ponderay. Northwest Autobody is a participant in the Sandpoint High School auto body program, providing opportunities for local students to learn the business and the industry. “I love the fact that I can have a small-town feel with a state-of-theart auto body shop,” Cory said. The Donenfelds advertised during the month of November that they would donate $50 for each repair. Whether the customers had seen the advertisements or not, Cory said, they knew by the time they left the shop that they were helping out the food bank by going to Northwest Autobody for their repairs, giving them a “sense of pride.” The brothers will be sending out thank you cards to all of those customers as well. We thank Bonner County Daily Bee for reprint permission.

autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

NV Women Find Auto Technology Educational Opportunities Challenging, Rewarding by Carla Wade, KTNV

The auto repair industry has long been dominated by men. But as the mechanics of cars have changed, making the job less physically demanding, more women have been seeking careers in automotive technology.

Like a lot of little girls, Cheyenne Delgado dreamed of being a princess. “I wanted to do fashion too. But I was also tomboyish,” Delgado said. These days, her fashion choices include work gloves, jeans and safety goggles. “It’s fun and I like getting messy,” Delgado said. “So I don’t think that would work really well with fashion.” The tomboy won out over the princess after she started helping her uncle work on cars. “I wanted to be able to help other people fix their cars [and] to be able

to help my mom out so she [wouldn’t] have to go out and spend the money [on] it,” Delgado said. Delgado is a collision repair student in the College of Southern Nevada’s Automotive Technology program. It prepares students to work in the automotive repair industry. She is one of an increasing number of women pursuing a career in what has long been a male-dominated field that offers plenty of opportunities and well-paying jobs. They get hands-on training in labs in addition to taking traditional academic courses. She’s in her second year of classes and already showing 13 Action News Anchor Carla Wade how to weld like a pro. When Jazmin Hurtado first started classes, she realized quickly that she would have to prove herself. “The first day I got here, guys kind of pushed me out of the way,” she said. “Because they don’t think you are here to actually work on things.” Even her family had reservations about her working around mostly men on greasy diesel engines. “I always had the interest. I didn’t really get the chance to work on cars because my parents are re-

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FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

ally traditional and they didn’t want me doing any of this,” said Hurtado. “I still have a lot of family members who don’t want to accept the fact that I want to do this. [They believe] that this is a guy’s job.” Hurtado just finished up an internship earning $15 an hour while shadowing a professional. It helped sway family members who were skeptical that a woman could earn a living working on engines. In Delgado’s program, collision repair, only 7 percent of the students are women. In Hurtado’s program, women make up only 2 percent of students. But after two years, they can earn an associate’s degree and be on their way to working in an automotive shop or a car dealership. While it’s challenging, both women see themselves working their way up to management positions and even running their own shops someday. “I thought I was going to be so nervous,” said Delgado. “But getting into it, I have awesome instructors. Students help me out too. It’s wonderful. I like it.” We thank KTNV for reprint permission.

Continued from Cover

Labor Laws

for the period involved, not less than the applicable minimum wage for all hours worked in the payroll period, whether the remuneration is measured by time, piece, commission, or otherwise. For more information about the class action lawsuit against DC Auto, Inc., call (858) 952-0354 to speak to Attorney Nicholas De Blouw. Blumenthal Nordrehaug Bhowmik De Blouw LLP, is a labor law firm with law offices located in San Diego County, Riverside County, Los Angeles County, Sacramento County, and San Francisco County. The firm has a statewide practice of representing employees on a contingency basis for violations involving unpaid wages,overtime pay, discrimination, harassment, wrongful termination and other types of illegal workplace conduct.

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autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

Chair of CAWA Board of Directors Appoints Tom Marx to the Board CAWA Chair of the Board, Jack Gosnell of Next Level Parts, has appointed Tom Marx of Hart-Marx Advisors and the Marx Group to the association’s board of directors. When Chair Gosnell announced the appointment, he commented, “It’s great to see our members step forward and participate in CAWA’s leadership. Tom has been a long-time member and has presented on several occasions at our Leadership Days. We know and appreciate the contributions he has made and will make to the future successes of the association and the industry we serve.” Marx has over 15 years of experience delivering mergers and acquisitions services and a 30-plus-year network of relationships in the automotive and heavy duty aftermarkets. He has experience with most product lines, from brakes to engine parts to chassis parts and more. He represents all channels, including manufacturers, distributors, jobbers, installer chains and independent repair companies.

Marx has been involved with industries from motor sports to technology, real estate and financial services. As partner of Hart Marx Advisors, he advises buyers and sellers on maximizing the value from their transactions. He also supports companies with integration strategies that maximize return on investment and supports mergers that bring together synergistic opportunities. He is an author, writes e-newsletters, speaks on M&A and marketing and is an active member of CAWA, Auto Care Association, SEMA, AASA, ACC, APRA and HDMA. Marx is chairman and chief strategy officer of the Marx Group, one of the aftermarket’s premier marketing communications agencies. He earned a BA degree in communications from California State University Northridge and also earned his Automotive Aftermarket Professional (MAAP) designation from the University of the Aftermarket.

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

Driver Crashes Into Collision Repair Business Displaying ‘Don’t Drink And Drive!’ Truck in OR by Joe Douglass, KATU News

A Salem, OR, business owner fears for his life after another driver plowed through his fence right next to a truck with “Don’t drink and drive!” painted on it. He said it’s the fourth major crash like it in less than three years. “Something’s gotta be done,” explained Denis Lafferty, who owns Carzntrux Collision Repair off Hoyt Street and Pringle Road Southeast. He said that since he started the business in 2006, he’s seen a lot of crashes. “There have been 15 to 20 since then, minor and major,” Lafferty told a KATU reporter Jan. 4. He said he painted a sign on a pickup truck in his lot after a crash in April 2016. “The first guy came over the fence and took the roof off,” Lafferty said. “It destroyed the truck.” After that, he wrote “Don’t drink and drive!” on the pickup and lifted it up as a barricade. But less than two months later, police say a drunk driver crashed into the truck. KATU was there to cover the story.

“Since then, there [has been] another one,” Lafferty said. “A BMW hit the gate post, destroyed the whole fence. Had to replace it again, and that was less than six months ago.” Then about 2 p.m. on Jan. 3, police said a woman driving a mini-van crashed through Lafferty’s fence again. “It was just a huge crash. Just a bang,” Lafferty said. “I kind of felt the impact. I was in the shop here.” Officers said neighbors reported that the woman was driving erratically. They said she was taken to the hospital but is expected to survive. Results from a blood test were expected back the week of Jan. 6. After the crash KATU covered in 2016, the city said it installed new signs around the corner, but Lafferty said it needs a guardrail. “If it happens at 2:00 in the afternoon, chances are I’ll be out in that yard and I could’ve gone,” he explained. “And if I go, then the city is partly in legal jeopardy from lawsuits from my family. So they need to do something.” We thank KATU News for reprint permission.

Hesperia, CA, Body Shop’s 3rd Annual Toy Drive Surprises Children stead of them being there for something bad, they are there with Santa,” Residents of seven low-income hous- C.A.R.S. Body Shop owner Carlos ing areas in Hesperia, CA, were sur- Sarmiento said. During the third annual C.A.R.S. prised to see a fire engine approaching the morning of Dec. 21, because there Body Shop toy drive distribution, children were able to wait in line for was no fire. a free Polaroid with Santa and receive three free toys. Bill Eshleman, 68, has volunteered to dress up as Santa since the body shop first created the toy drive. “I think God has put this in my heart to be with children, and this is my way of giving back to the people out there,” Eshleman said. “I love being a part of something like this.” San Bernardino County Princess Perez, 4, greets Santa Claus Dec. 21 during Sheriff Deputy Antonio the C.A.R.S. Body Shop toy giveaway. Credit: Joselyn Higuera joined for a secVillalobos for the Daily Press ond year and said it is Instead, residents stepped out “awesome to see the joy these folks their doors to see the Collision Auto bring to the kids.” Hesperia resident Alexandra Repair Specialist (C.A.R.S.) Body Shop team of volunteers, Santa Claus Perez, 24, said she was “so grateful” aboard a Hesperia Fire Department her four children, Roselyn, 6; Ashlyn, 6; Angel, 5; and Princess, 4, could truck, and lots of toys. “The Fire Department goes each receive presents. “This year has not been as awearound with their siren on, and inby Joselyn Villalobos, Daily Press

ways to directly reach children in local low-income neighborhoods. Last month’s toy drive accumulated more than 40 bags of donations, and each toy was separated according to gender and age. “Our community really steps up every year; the (toy drive) is getting better and better,” Ruiz said. Sarmiento personally spent more than $2,000 on toys and had been offering free headlight restorations, valued at $80, to those who donated a toy since July. Victorville resident Joey Bustamante, 53, and his girlfriend, Renee Lorrah, 52, donated an entire truck bed full of toys. Bustamante makes donations to various local toy drives and Toys donated to the C.A.R.S. Body Shop giveaway, soon spent around $2,000 on toys to be distributed to children, fill a van. Credit: Joselyn last year. Villalobos for the Daily Press “I like to see the kids’ She said the toy distribution faces,” Bustamante said. “I buy all the “makes the kids pretty happy, and toys throughout the year. That way it they are helping make the kids think doesn’t kill me trying to buy them all at once.” Santa is real.” Sarmiento and his daughter, Valerie Ruiz, got the idea for the first We thank Daily Press for reprint pertoy distribution after brainstorming mission. some as the other years, but now it’s awesome,” Perez said. Hesperia resident Fatima Pacheco, 31, said the toy distribution was “a good surprise,” and that her children, Samantha, 10; Gabriel, 9; and Alex, 7, were happy with their toys.

autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

Auto Manufacturers Threaten Local Bumper Business Survival in Gilroy, CA by Jacob Bourne, The Silicon Valley Voice

Faith Bumper Service has been repairing automobile bumpers from all over the Bay Area since 1975, but recent market changes are putting it on the brink of closing shop. The family-owned business was located on Di Giulio Avenue in Santa Clara, CA, from 1994 to 2016 before relocating to Gilroy. The business was started by the father of current president Bill Foote, who works closely with his wife, Laura, as well as his son, daughter and brother. Beyond the family, Faith Bumper employs many from the community, some of whom have worked there for over 20 years. They possess special skills unique to the bumper repair trade. While repairing damaged bumpers is the focus, Faith Bumper Service provides another indispensable function. About half a million pounds of rubber bumpers are diverted from landfills and recycled due to the business’s efforts—a number Foote estimates to be about 80 percent of the region’s total bumper waste. “Back in the day when we fixed chrome-platted bumpers, 90 percent of the bumpers that came to us were repairable, so we kept them,” explained Foote. “With rubber bumpers, about 85 to 88 percent are not repairable.”

Foote stores these non-repairable bumpers at the Gilroy shop before sending them to a company in Texas that recycles the material for re-use as planter boxes and parking lot curbs— uses that Foote believes are just a small fraction of the actual possibilities for the rubber material. During the height of the Great Recession in 2008, Faith Bumper Service was forced to downsize op12

erations from 80 employees to 30. Although economic conditions are now more robust, Foote said that beginning two years ago, major auto manufacturers began trying to shut out competition from after-market sellers of parts such as bumpers, grills and fenders by dropping prices for new parts. In the e-marketplace, online parts platforms list the cheap-

that there’s only so much the shops can do, and that the future lies with decision-making made by insurance companies and consumers. “It’s a matter of keeping all these families employed; that’s our main concern,” Foote stated. “The older guys are going to have a tough time. There are people who I know it’s going to hurt.”

est prices first, and insurance companies ask auto body shops to choose parts at the lowest prices. While Foote said that Faith Bumper can match the quality of a new bumper, most consumers prefer a brand-new bumper if it’s being sold at the same price as a repaired one. Faith Bumper will also match the lower prices, but being a small business, most consumers don’t even know to ask. These changes have put pressure on the business to the point of almost closing its doors, which would not only be a major blow to the family and longtime employees, but could also put tons of unwanted bumpers into landfills. “The problem has really intensified for us in the last few weeks,” said Foote in December. “Things just dropped off the last two weeks in November; we lost about five bumpers per day—the bottom just fell out. We’re losing about $1,500 per day in sales and are deciding whether to fold up shop. I’ve been doing this since 1975, so it’s a big deal to me. I’m not asking for a lot—just to continue business so we can get bumpers either repaired or recycled.” The shop and yard at Faith Bumper Service is filled with bumper inventory, but they regularly get truckloads of about 80 bumpers brought in from auto body shops. To demonstrate the impact of the business closing, Foote recently stopped the bumper deliveries, leaving them to pile up at various Bay Area auto body shops, from which he said they’ll likely end up being taken to landfills in the potential absence of Faith Bumper. Despite this illustration, Foote admitted

At one time, the idea emerged of Faith Bumper Service expanding to do the recycling onsite, but such an operation would require about $250,000 worth of machinery and an amount of space not feasible for a small family business to acquire. Foote said that only a handful of companies recycle bumpers nationwide. Some bumpers have been sent to China, but the Chinese government started limiting the amount of international waste it imports in 2018. CalRecycle is a department within the California Environmental

“With rubber bumpers, about 85 to 88 percent are not repairable.” — Bill Foote

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

Protection Agency that oversees all the hazardous material and recycling programs in the state. Much of CalRecycle’s $1.4 billion budget flows back into local economies in the form of payments and grants to help recycling and waste management businesses operate. However, vehicle tires are currently the only rubber product that the agency has programs geared toward. “California does not have any programs related to bumper recycling or a specific list of businesses that conduct that work,” stated Lance Klug, public information officer at CalRecycle. As the business hangs in limbo, Foote has placed some hope in community activism as he tries to communicate his plight to insurance company representatives. He has also reached out to the California State Automotive Association and state politicians, seeking policy avenues that may keep Faith Bumper afloat. We thank The Silicon Valley Voice for reprint permission.

autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

Tow Truck Companies, Body Shops Keep Busy During Stormy Weather in CA by Alexa Bertola, KSBY

The wet weather in San Luis Obispo, CA, means an increase in calls for local tow truck companies and auto body shops. They say it’s one of the busiest times of the year. The rainy weather typically leads to car crashes and other troubles along the road. Mike Filice with JohnBoy’s Towing responds to calls any time of the day or night. Each call is different, but the common thread is the wet road conditions. “The person who was driving, it was supposedly caught up in some weather and either a landslide or they lost control and did damage,” Filice explained at the scene of a tow on Jan. 15. The bottom of the car was damaged, the front rim was cracked and the two passenger side tires were flattened.” So that’s why we’re towing it to a body shop,” Filice said. “A lot of rear-enders, a lot of people that go off the road going a little too fast, so they hydroplane off from the water that’s on the road,” said Joey Orozco of City Motors in Santa Maria, CA.

The past couple of days had been busy. Filice had towed an SUV that went off the rain-slicked road on Jan. 14. Being out on the road himself, he sees a lot. “People not slowing down in the weather, staying a good distance, even using your wipers. We see an increase in accidents. We see an increase of spinouts,” Filice explained. “We probably get 50 percent more calls on a rainy day,” said Christy Winters, dispatcher for Johnboy’s Towing. “A lot of people slide off the road and get stuck in the mud, so they’re stuck on the shoulders.” “When you get the oils on the road and you get the combination of water on top of it, you really get a slippery surface, so the speed is going to make a difference; you hit a car, can’t stop fast enough or making a turn,” Orozco added. It’s always recommended that you slow down and give yourself plenty of time when you’re driving on wet roads. We thank KSBY for reprint permission.

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

Jason Caldwell Appointed to CAWA’s Manufacturers’ Advisory Council CAWA Chair of the Board Jack Gosnell of Next Level Parts has appointed Jason Caldwell of RPS Marketing to the association’s Manufacturers’ Advisory Council.

When Chair Gosnell announced the appointment, he commented, “RPS Marketing has been a long-time supporter of CAWA, and we are pleased that their representative will join our Manufacturers’ Advisory Council. We look forward to Jason’s participation and contributions to the association and the industry we serve as

AUTOBODY

we welcome him to CAWA’s leadership.” Caldwell is beginning his 15th year with RPS Marketing, where he has been working with key automotive distributors throughout California for the last three years to help grow their business with key suppliers and pull through sales out in the field. Prior to that, he spent 12 years with RPS up in the Northwest covering Oregon, Washington, Idaho and Western Montana working with key automotive and hardware customers in that territory. He works not only at the WD level but also at the installer and jobber level, meeting with them to talk about their business, what they are seeing from a customer standpoint, and what they see their needs are from their suppliers. In his free time, he is busy with his wife of 21 years, Lori, and their two boys. He enjoys working on and restoring classic cars, spending time outdoors, and playing and watching sports.

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UPDATED DAILY

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Continued from Cover

New CA Laws

that effective Jan. 1, 2019, the minimum wage for employers with 26 or more employees increased to $12 per hour. The minimum wage for employers with 25 or fewer employees increased to $11 (SB 3 of 2017). Local minimum wages may be higher. Electronic Documentation and Authorization: These newly enacted regulations, among other things, allow for electronic estimate and authorization, transmission and storage of automotive repair documents. If a customer provides electronic authorization (a text, for example), the shop must properly record the authorization and maintain legible copies of all records for at least three years. The regulations also require that repair documents supplementing the estimate, including electronic communications, must be uniquely identified (e.g. invoice number) and properly maintained as part of the same transaction. All records (including 3rd party supplier/vendor) associated with the repair transaction must have a unique identifier linking the records to that specific transaction. (16 CCR Sections 3303, 3352, 3353, 3353.1, 3354, 3355, 3356, 3357, 3358, 3359, 3371) “This law went into effect on Sept. 13, 2018, and it is a good thing because it will help consumers and body shops and make transactions easier and faster,” Molodanof said. “We are entering the 21st century with this law by using technology to streamline processes, but it also involves new procedures and ways of doing business. Prior to this, shops needed signatures in-person, which is less convenient for all of the parties involved. The BAR right now is working on an updated booklet that will describe the new rules associated with this law. Every form of communication requires a unique identifier, and all of the documents need to be tied together. It’s up to the shop to know this law, and there will obviously be a learning curve, but the BAR is playing an educational role on this one to help during the transition.” Towing and Storage: This new law, among other things, requires that all towing and storage fees charged must

be reasonable, and certain rates and fees are now deemed presumptively unreasonable. Towing and storage charges shall be deemed reasonable if fees are comparable to storage-related rates and fees charged by other facilities in the same locale. However, this does not preclude a rate or fee that is higher or lower if it is otherwise reasonable. (AB 2392) “This law was created to alleviate issues caused by rogue tow companies that were overcharging customers with towing and storage in the past,” Molodanof said. “Now, storage rates must be reasonable and based on fees charged by other facilities in the same locale. If a shop wants to charge any ancillary fees, they will have to justify them, including things like dolly fees, service fees, load and unload fees, gate fees and pullout fees. This new law should provide further clarity for consumers, shops and insurers.”

Preventative Maintenance Services/ Minor Services: A written estimate is not required for an auto repair dealer to perform “preventative maintenance services,” as defined, if the customer authorizes the service and either of the following occurs: 1.) The service is performed free of charge, or 2.) The total price for labor and parts necessary to perform the service is displayed in a place and manner conspicuous to the customer or is made available to and acknowledged by the customer at the shop facility where the service is performed. This new law also eliminated minor services exemption and requires that all currently unlicensed/unregistered maintenance service facilities register with the BAR. (AB 3141) “This law pertains to body shops that also provide mechanical repair services,” Molodanof said. “It allows for verbal authorizations for preventative maintenance services and clarifies specific definitions. One result of this law is that any business that performs any form of minor mechanical repair, including oil changes, tire changes, installing spark plugs, etc., that was previously exempt from BAR oversight now will have to be registered by the BAR.” BAR-97 Emission Inspection Systems: This new law updates BAR-97 equipment standards for smog check stations by: 1) removing dedicated

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

analog phone line requirements, 2) requiring Low-Pressure Fuel Evaporative Test (LPFET) to communicate directly with BAR-97 and 3) updating minimum computer hardware and software standards. (16 CCR Sections 3340.17; 3340.41; 3340.45)

Zero-Emission Assurance Project: The new law requires the Air Resources Board to create a new program to incentivize the purchase and use of used zero-emission vehicles (ZEVs) or near zero-emission vehicles (NZEVs). (AB 193)

Lithium-Ion Vehicle Batteries Advisory Group: Requires the Secretary of the California Environmental Protection Agency to convene a research group to review and advise the legislature on policies pertaining to the recovery and recycling of lithiumion vehicle batteries sold with motor vehicles in the state. (AB 2832) Fluorinated Refrigerants: This new law requires the California Air Resources Board to adopt provisions of the Federal EPA law through regulations, including provisions covering

motor vehicle air conditioning. (SB 1013)

California Consumer Privacy Act: Beginning Jan. 1, 2020, this new law, in part, would grant a consumer the right to request a business to disclose the categories and specific pieces of personal information that it collects about the consumer, the categories of sources from which that information is collected, the business purposes for collecting or selling information and the categories of third parties with which the information is shared. (AB 375) Sexual Harassment Prevention Training: Effective Jan.1, 2020, this new law requires any employer who employs five or more employees, including temporary or seasonal employees, to provide at least two hours of sexual harassment prevention training to all supervisory employees and at least one hour of such training to all nonsupervisory employees once every two years. The Department of Fair Employment and Housing is required to make available a one-hour and twoSee New CA Laws, Page 24

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Continued from Cover

SCRS’ Ideas Collide

the future of collision repair in 10 minutes or less. Dan Langford of the Nevada Center for Advanced Mobility, for example, said he envisions that telematics data from a vehicle involved in a crash, combined with OEM data and historical claims data, could enable the needed parts for the repair of that vehicle to arrive at the shop before the car itself does. “I’m willing to bet you can actually start getting a clear idea of estimating the cost of the damage in most crashes [just from the data],” Langford said. “So within an hour or half-hour of an incident happening, you have an understanding of what parts are going to be needed to repair that. It’s not completely crazy to think those parts could be ordered and shipped before the vehicle even arrives at your shop. The depth of data may not be quite there yet, but it’s an interesting direction to start heading in.” Langford also said he believes

that few people will personally own an autonomous vehicle and that such vehicles primarily will be used as part of “mobility fleets,” such as Lyft or Uber or other monthly subscription services that provide transporta-

Dan Langford of the Nevada Center for Advanced Mobility said telematics data from a vehicle could enable a parts order for a repair to be determined at the crash scene

tion on demand. (He noted that Lyft currently is operating dozens of autonomous vehicles in Las Vegas, shuttling passengers between properties on the Strip.) “By the time we have significant penetration of autonomous or highly automated vehicles, you won’t need one yourself,” Langford said. “It’s just not going to be cost-effective anymore.”

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

What will that mean for collision repairers? “Does that mean you should align yourselves with more fleet operators,” Langford asked rhetorically. “What role can you play on a regional basis in supporting these potentially nationwide fleets of vehicles?” He said collision repairers need to understand their role—and liability—in repairing what he called the “eyes and ears” of increasingly autonomous vehicles. “And I do say ears,” Langford said. “The Waymo autonomous vehicles operating in Phoenix are listening for things like emergency vehicles. The video and lidar sensors are the eyes of the vehicle. So if you’re replacing a panel and it’s incorrectly aligned, you’re potentially threatening the riders in that vehicle. Your role becomes incredibly important.” Not-for-Profit Data Repository In his “Ideas Collide” presentation, Pete Tagliapietra of NuGen IT suggested the industry develop a notfor-profit data repository that would

ensure shops have long-term access to their job file records (even if they have switched estimating or shop management systems) along with global industry data on such things as labor rates and cycle time. Tagliapietra compared such a database to the Property & Liability Research Bureau, to which participating insurers submit claims information. “I built a new home several years ago, and there was water damage when the patio doors blew open and it rained,” Tagliapietra said. “That information will stay with that home for as long as that home remains in existence. That’s not such a bad idea for the next insurer or the next owner who buys that house. Maybe we could do the same thing in automobiles and collision repair.” Tagliapietra said companies—including his—collect data from some shops that those companies are then able to “use internally to our company’s benefit,” but collision repairers in many cases get little in return for the data they give away. “Should insurance companies have the advantage of having all

that information available, while collision repairers really don’t have it?” Tagliapietra said. “Why shouldn’t everyone have the opportunity to have access to the benefits of that data?” He said a shop subscribing to such a database, for example, could see how they stack up in terms of cycle time with the industry as a whole. In theory, they could review documentation of prior repairs made to a particular vehicle or contact others who have made similar repairs on a make and model of a vehicle that is causing them challenges. Imagine, Tagliapietra said, being able to “speak to another repairer who has gone through a similar situation and understand what you are up against before you start the repair.” He said there are obvious benefits of having access to such a collection of data for other segments of the industry as well, including automakers, parts and paints suppliers, etc. “Less than a handful of companies [currently] really manage over 80 percent of that information,” Tagliapietra said. “I don’t believe that’s the right approach that this industry needs

to take in years to come.” Automated Damage Report in Seconds It might not be immediately clear why a representative of an Israeli company that has developed threatdetection security systems was a logical choice to speak at a collision

Amir Hever said a security system his company developed to detect vehicle anomalies could be used to spot collision damage quickly

repair industry event. But SCRS’ Aaron Schulenburg said he likes to bring in new voices with ideas that may have application within the industry, which is why Amir Hever, CEO of UVeye, was one of the 10 speakers during the “Ideas Collide” session.

Hever said that years ago when he was driving into a parking lot at a government building in Israel, a security guard used a mirror to look briefly under his vehicle; more than a decade later, he encountered the same process. “Nothing had changed in the past 15 years,” Hever said. “When I asked the security guard whether he could see something, he said, ‘No, but if something happens while you’re inside, they will check the cameras and see that I tried to do my job.’” That led Hever to develop a system that scans the underside of a vehicle traveling over it, immediately generating a 3D image, and using that information to identify any “anomalies in the undercarriage.” The potential application beyond security? UVeye has added cameras and microphones to collect similar data all around the rest of the vehicle to detect “everything from a small [2 mm] scratch or dent, to problems with the brakes or suspension, exhaust pipe, tires, everything.” Hever said such a system has obvious uses for automaker production lines, rental car return lanes,

dealership pre-delivery inspection stations—and possibly collision repair. “Think [about] how simple it [would] be if you [could] simply drive through a system and get a full report about the status of the vehicle,” he said. “Think [about] how it would shorten the time when you arrive at the dealership or garage, and by the time you get to the receptionist, they have a full report with everything that is not okay with the car.” The company’s website (www .uveye.com) includes a video of how the system can be used for security and information on how it could play a role in other types of vehicle inspections. John Yoswick, a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (www.CrashNetwork.com). He can be contacted by email at john@Crash Network.com.

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autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

of initially working with a particular insurer, he brought in two seasoned adjusters to look at a hail-damaged vehicle. “These were 20-year guys,” waive their licensing requirement for adjusters who come into the states as Morrison said. “But before they even part of a “cat claim,” they don’t started writing the sheet, they both waive the requirement for state laws looked at each other and were saying, to be followed, McDonnell said. He ‘What do you see? Are those nickels? said shops should understand what Are they quarters?’ It was a debate, their state requires of those who and it shouldn’t be.” David Pinto of PDR Nation said come in temporarily to assist with another issue the industry faces is catastrophe claims. “Our [insurance] commissioner’s when his company is hired by a body office wants them to register with the shop to handle PDR claims originally state,” McDonnell said. “So they will estimated by another PDR company now follow Montana regulations. It’s that has a contract with a particular $100 [to register]. It’s not like it’s a insurance company. “So the customer is coming to big thing. But it’s the fact that we’re all playing by the rules. That’s a big me, but I have to send my supplements to a competitor,” Pinto said. deal to me.” “I’ve waited several weeks for a claim to get processed Handling supplements because it has to go through The other panelists at CIC my competitor who has no were asked to explain how incentive to put that claim collision repair shops should through. They’d rather hanhandle supplements on cat dle the claim themselves claim estimates prepared eifrom start to finish. They ther by PDR companies or Bo Opansyuk of Hi-Tech PDR said don’t want someone else insurer cat teams. his multi-location having it. So I have con“On all of our estimates company lists you will see an appraiser contact information cerns about the relationships that are being created. name and phone number, so on each estimate that’s usually who we’re as to who handles I think the repairers themany supplements selves need to be asking looking to be the contact for on that claim more questions as these rethat car,” Chris Andreoli of lationships evolve. It’s very compaProgressive Insurance said. Bo Opansyuk of Hi-Tech PDR rable to what’s happened in the glass said his multi-location company sim- industry. You know how things have ilarly lists an estimator name and changed in the glass industry. This is supplement direction on the estimate. what we’re looking at in the PDR in“If we write the estimate, we dustry, and that’s a concern for me.” McDonnell said his company would handle that supplement internally,” he said. “We have an internal now has PDR technicians on staff supplement division, and if there’s year-round, but has previously alstaff still out in the field, they will do lowed PDR suppliers to use shop space following major hailstorms. the follow-up visit to the shop to oversee that supplement from the begin- He said there are pros and cons for bringing in the outside help. ning to the end.” “There are some incrediMichael Morrison of ble advantages. It’s hundreds Catastrophe Solutions Interof claims for maybe one carnational said the subjective rier, and boom, they’re all in nature of hail claim PDR – your shop,” he said. “You based on different providers’ have the opportunity to fix standards and capabilities – results in a lot of unneces- Michael Morrison them [beyond the PDR work]. It’s almost like you sary supplements. said he’d like to “It really shouldn’t be a see less subjectivity can work on one carrier’s in terms of PDR cars and you’re busy.” debate,” Morrison said. “It is estimates But a potential downside, a dime-sized dent, so you write it for a dime. You don’t write it he said, is if vehicle owners don’t feel like they were choosing your shop but for a nickel or a quarter.” But he said as part of the process felt like they had to use your shop. Continued from Cover

Processing Hail

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

parts in a recent 12-month period, just 50,000 fewer than the number of used parts it paid for during that same time. The BAR more recently codified its rule that all parts must be identified only as new, used, rebuilt, At upcoming CIC meetings Based on input from CIC partici- reconditioned, OEM or non-OEM. Speaking at CIC in Novempants at CIC last fall, attenber, Scott Biggs of Assured dees at future CIC meetings Performance Network said this year likely can expect a it really should be an interreturn to the issue of “optindustry entity like CIC OE” and “alt-OEM” parts. that addresses the confuIt was a topic discussed at sion about “opt-OE” and several CIC meetings in “alt-OE” parts. 2016, at a time when the David Pinto said “Are we going to let anCalifornia Bureau of Auto- he’s concerned that as insurers form other body figure this out, motive Repair (BAR) anrelationships with or are we going to get our nounced that the unclear or PDR providers, one inconsistent use of “alt-OE” PDR provider may heads together and come up or “opt-OE” designations have to go through with a better plan and start a competitor to pushing it out to the legislameant the terms could no get a supplement tors or [regulators],” Biggs longer be used on customer handled said. “We talked about this estimates or invoices in that state without providing additional in- literally two years ago, [but] nothing formation about such parts, includ- has been done about it. So we waited for the BAR to do it. We can do beting what warranty they carry. That hasn’t appeared to slow the ter. This ought to be one of our principal objectives to address.” use of such parts; a Farmers InsurKen Weiss of SSF Imported ance executive last year said his company paid for 200,000 “opt-OE” Auto Parts agreed that the industry “They may feel like they were herded in and are just a claim to you,” he said. “When you go through that many customers, it’s hard to give that one-on-one attention.”

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needs to standardize part type definitions. “We have three estimating platforms, and several parts procurement portals, and they all call the same parts something different,” Weiss said. “I push our parts to a third-party administrator, and it’s like sausage: I have no idea how they will come out [described] on the other end. And I’m not necessarily happy with how they come out.” The next CIC meeting will be held April 17-18 in Nashville, Tenn. Check the CIC website (www.CIC link.com) for details. Tours of Nissan’s assembly plant in Smyrna, Tennessee (where the Altima, Maxima, LEAF, Pathfinder and Rogue are produced), are being organized in conjunction with the meeting; visit https://tinyurl.com/NissanTour to register. John Yoswick, a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (www.CrashNetwork.com). He can be contacted by email at john@Crash Network.com.

2 Industry Veterans Appointed to CAWA’s Manufacturers’ Advisory Council

In the last days of his term, CAWA Chair of the Board Jack Gosnell of Next Level Parts appointed two industry veterans to the association’s Manufacturers’ Advisory Council (MAC). When Chair Gosnell announced these appointments, he commented, “It’s great to see our members step forward and participate in CAWA’s leadership. We know and appreciate the contributions these auto care industry veterans will make to the future successes of the association and the industry we serve.”

Motor Corporation (IMC) and responsible for leading the team of product managers for the European programs, including responsibility for the in-house web catalog content targeting independent European specialist installer shops in the United States.

The appointees are:

• Christian Eichstaedt of Thyssenkrupp Bilstein of America

• Shawn Sheehan of Dorman Products

Eichstaedt is currently with Thyssenkrupp Bilstein of America as head of aftermarket sales and is responsible for aftermarket sales for OE replacement, tuning and light truck performance programs. Previously, he was director of product management – European Carlines for Interamerican

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

His other experience in automotive includes his role as carline manager for Mercedes-Benz and BMW programs at Import Specialist IMC. He also built the U.S. subsidiary for German Exporter for Heavy Duty OEM and aftermarket parts servicing German engines (Daimler, MTU, KHD, Liebherr, MAN) in the U.S. market after leaving a sales support position based in Germany for OEM Kolbenschmidt for EMEA markets.

Eichstaedt has a master’s degree in business administration from the University of Hamburg, Germany. His spare time is spent with family, traveling, enjoying canyon roads in his MINI Cooper and attending dirt track races. He is married, has one son and is based in San Diego, CA. Sheehan has been involved in the automotive aftermarket in sales and management positions since 1988. He has worked for several manufactures, including: Dayco, R&B Inc., KYB America, Tenneco Automotive and Dorman Products. Sheehan has worked in various roles in his career, including territory manager and area sales manager and is currently the Western Zone sales manager of traditional business for Dorman Products. As the Western Zone sales manager, he is responsible for 11 western states. Earlier in his career, he also worked at One Stop Parts Source as its sales manager. Sheehan believes that with his wide range of experience at the manufacturing segment of the industry, as well as warehouse distribution, he will make a great addition to the CAWA’s leadership and future of the association.

autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

Study Pours Cold Water on AI Driving Algorithms by George Leopold, Datanami

A recent report emerging from the center of U.S. auto manufacturing is raining on the AI parade with research results claiming autonomous vehicle algorithms fare poorly in bad weather. The study by researchers at Michigan State University found that even light rain or drizzle can interfere with algorithms used in self-driving car cameras. That could mean future fleets might initially be restricted to sunny states such as Arizona, California and Florida. The Michigan State study determined that the core problem stems not from the cameras used as primary sensors for detecting obstacles but the algorithms used to sort through computer vision data. “When we run these algorithms, we see very noticeable, tangible degradation in detection,” Hayder Radha, a Michigan State University professor of electrical and computer engineering who oversaw the study, told Automotive News in late November. “Even low-intensity rain can really create some serious problems, and as you increase Continued from Page 16

New CA Laws

hour online training course for employers to use for the prevention of sexual harassment along with informational posters and fact sheets on the department’s website. (SB 1343)

Expanded Liability for Sexual Harassment: This new law makes numerous changes to existing law with regard to liability for alleged harassment, including but not limited to: Employers being potentially liable for any kind of unlawful harassment by nonemployees; employers being potentially liable even where the harassment was a single instance or “stray remark” by a non-decision maker; and employers being pro-

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the intensity, the performance of what we consider state-of-the-art mechanisms can almost become paralyzed.” The university researchers found that computer vision algorithms failed to detect about 20 percent of objects in light rain. The failure rate doubled when rain intensity was tripled. Additional factors such as seasonal changes—like reduced autumn foliage and colder weather—also affected other autonomous vehicle sensors like radar and lidar. Changing seasonal scenes underscored a need to update high-resolution maps used by autonomous systems. “I’d say now that challenging weather conditions are going to be a problem for many years to come,” Radha told the automotive website. Weather concerns have not dampened investor enthusiasm in autonomous systems startups. For example, Korean carmaker Hyundai announced in November that it is investing in Allegro.ai, an Israeli startup applying deep learning to computer vision for car navigation. Founded in 2016, Allegro.ai emerged from stealth mode in April upon completion of a Series A funding round that raised

hibited from requiring a release of FEHA claims in exchange for a bonus, raise, employment or continued employment. (SB 1300)

Confidentiality Clauses in Sexual Harassment Settlements: This new law prohibits a provision in a settlement agreement that prevents the disclosure of factual information related to a civil or administrative action that includes claims of sexual assault, harassment or discrimination based on sex. (SB 820)

Female Members on Boards of Directors: This new law requires that a foreign or domestic publicly held corporation whose principal executive offices are located in California must have a minimum number of female board members. (SB 826)

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$11 million. Hyundai Cradle, the auto manufacturer’s venture arm, entered into a strategic partnership with Tel Aviv-based Allegro.ai. It did not disclose the amount of its investment, saying only that the collaboration would help accelerate deployment of the startup’s AI technology. Among them is autonomous driving, which Hyundai and a growing list of automotive startups are pursuing with varying degrees of success. Hyundai said it expects to deploy Allegro.ai’s computer vision technology for auto applications like navigation and real-time decisionmaking. Others are taking interim steps in their efforts to deploy self-driving vehicles in controlled environments. For example, Boston-based Optimus Ride is using early investor Nvidia’s Drive AGX Xavier computing platform as part of a planned driverless fleet service in “geofenced” areas such as planned communities, campuses and other designated autonomous driving zones. We thank Datanami for reprint permission.

asTech Renews Commitment to CIECA Standards

asTech® recently renewed its commitment to CIECA and the CIECA Standards. Founded in 2010, asTech® is based in Plano, TX, with additional corporate offices in Irving, TX, and Jacksonville, FL. The company is a nationwide provider of dealer-level OEM diagnostic and vehicle electronic repair services supported by ASE Certified Master Technicians. “Our mission is to protect lives through the proper repair of automotive electronic systems,” said Frank Terlep, asTech® senior VP of global innovation. asTech® has been a CIECA member since 2015. Terlep said he and Doug Kelly, asTech® CEO, are both very familiar with CIECA. Terlep was one of the original CIEDES (Collision Industry Electronic Data Interchange Subcommittee) members and a previous CIECA chairman. “asTech® believes CIECA plays an important role when it comes to the creation and management of industry standards,” said Terlep.

5 Families Receive “A Gift of Charity Wrapped In Dignity” From Mike’s Auto Body by Ed Attanasio

On Dec. 12, 2018, Christmas came a little early for five deserving families as Mike’s Auto Body and local companies worked together to make life a little easier for those less fortunate.

industry as a whole comes across cars that are “written off” by either the owner or the insurance company. Oftentimes, these are older vehicles that just need some mechanical and body work to get them back on the road in a safe condition. Because Mike’s Auto Body believes these cars are going to waste when there are people who really need them, the shop decided to do something about it.

Marketing Manager Dane Dearlove (left) and Benevolence Ambassador Sal Contreras from Mike’s Auto Body spoke at the presentation titled “A Gift of Charity Wrapped in Dignity.” Credit: Rick Rehm

Last year’s slogan was “A Gift of Charity Wrapped in Dignity” as Mike’s Auto Body commemorated a donation total of 79 cars from 2000– 2018 through its nationally acclaimed Benevolence Program. Each year, the collision repair

Patricia Castellanos, a single mother with two daughters, received a 2013 Nissan Rogue that was donated by State Farm and contained a trunk full of holiday gifts. Credit: Rick Rehm

Mike’s Auto Body’s Benevolence Program is a community relations program designed to generate goodwill at the local level while im-

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

proving and promoting the image of the collision repair industry. The program’s mission is to “present refurbished ‘new’ used cars to deserving individuals or organizations during the holiday season.” CSAA Insurance Group, Farmers Insurance, State Farm Insurance, Liberty/Safeco Insurance and Enterprise Rent-A-Car participated in last December’s presentation by donating “written-off” vehicles, which were then given away to five deserving families. Two hundred people attended the vehicle presentations at Mike’s Auto Body’s ADAC facility in Antioch, CA, on a day filled with sunshine and Christmas spirit. The day always starts with a hearty welcome from Benevolence Ambassador Sal Contreras, followed by an invocation by Pastor Felix Golden. A flag presentation then followed from the Mt. Diablo JROTC Color Guard. “America the Beautiful” was played by bagpiper Kristopher Muse, and then Sandie Browne sang the National Anthem. Mike’s Auto Body’s

director of marketing, Dane Dearlove, then spoke about “Who We Are” and how Mike’s continues to give back to the community, followed by welcoming remarks from Antioch’s Mayor Sean Wright before the five car presentations took place.

The Rose family has given away 79 cars since 2000 through its nationally acclaimed Benevolence program. Credit: Rick Rehm

Another highlight of the day took place when the Contra Costa firefighters of Antioch’s Station 81, led by Captain Jeff Landis, delivered Santa to the presentation in their fire engine, who then gave brand-new bicycles and helmets to the children. As always, local insurance agents filled all the vehicles with gifts and toys for the families. Next, the Rose family (Ragen,

Mike’s Auto Body CFO; Brennan, Mike’s Auto Body CEO; and Mike, Mike’s Auto Body founder and president), received a Congressional Certificate of Recognition from Congressman Jerry McNerney’s field representative, Janeesha Jones. Closing remarks then followed from Contreras. “A special thank you goes out to our employees and business partners who gave their time, talents and donations to make all this happen,” Contreras said. The five recipients included: • Patricia Castellanos, a single mother with two daughters, received a 2013 Nissan Rogue that was donated by State Farm, sponsored by Sparkpoint Brighter Beginnings in Bay Point, refurbished by the crew at Mike’s Pittsburg, CA, location and presented by State Farm’s Mike Stoiber.

• Ally Jenkins, 24, received a 2016 Toyota Prius that was donated by Safeco/Liberty, sponsored by Cortona Park Senior Living Community, refurbished by the crew at Mike’s San

Ramon, CA, location and presented by Safeco/Liberty’s Tom Donahue. • Single mother Erika Quinteros received a 2018 Ford Fusion that was donated by Enterprise Rent-A-Car, sponsored by California Promise Innovation - Contra Costa College, refurbished by the crew at Mike’s location in Antioch, CA, and presented by Enterprise’s Kelly Hunt.

• Single mother Maria Barraza received a 2014 Honda Civic that was donated by Farmers, sponsored by the

Segura received a 2015 Toyota from CSAA, sponsored by the Housing Authority of Contra Costa County, refurbished by the crew at Mike’s Fremont Street location and presented by CSAA’s Victor Cordon. “We feel very fortunate to be involved with such a wonderful program and are very excited to be able to give back to the community that has supported us for the past 46 years,” Mike said. “Being in this business for that long, repairing the vehicles is the easy part; having to decide on a recipient is the part that’s hard.

Five deserving families received completely refurbished vehicles as part of Mike’s Auto Body’s 2018 Benevolence Program in Antioch, CA. Credit: Rick Rehm

Hemophilia Foundation of Northern California, refurbished by the crew at Mike’s North Broadway location and presented by District Manager Dan Brown from Farmers. • Single mother/grandmother JoAnn

After receiving hundreds of applications over the years and reading the heartbreaking stories, we only wish that we could do more. But hopefully with increased publicity of our Benevolence Program, other shops will adopt a similar program of their own.”

Maaco Named a Top Franchise for Veterans

Dedicated to supporting and growing with those who have served our country, Maaco has risen through the ranks to earn its spot on Entrepreneur magazine’s 2018 “Top Franchises for Veterans” list. Entrepreneur ranked Maaco number 23 on its annual ranking of the top 150 franchises offering incentives, support and other programs to help veterans become franchisees. “It’s a true honor to provide veterans with a business opportunity that builds on their unique strengths and recognizes their sacrifice and devotion to our country,” said John Moreau, vice president of franchise development at Maaco. “Veterans tend to possess a unique skillset, experience and perspective that equip them for success as a Maaco franchisee, and we’re happy to continue providing resources and incentives that help, support and encourage veterans to join our system.”

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AkzoNobel Joins CIECA as Corporate Member

AkzoNobel recently joined CIECA as a Corporate Member. AkzoNobel’s Vehicle Refinishes business provides coatings and services for collision repairers, commercial vehicle refinishers, bus and truck manufacturers, and other specialized commercial vehicle builders. The company’s brands include Sikkens®, Lesonal®, Modern Classikk®, Sikkens Autocoat® BT, UTECH®, Sign Finishes and Wanda®. “We’re excited to join CIECA, so we can continue to provide our customers with best-in-class e-solutions,” said Tony Mahon, business services manager, AkzoNobel Vehicle Refinishes. “As an industry leader, AkzoNobel understands that data standards in collision repair are key to quickly offering web-based solutions to distributors and body shops. CIECA allows all industry segments to communicate electronically/securely with ease, and the CIECA standards enable us to exchange information more efficiently with external partners and to continually develop new data-driven solutions that help our customers grow their businesses.”

Eric’s Auto Body Installs 80 Solar Panels in Its Colfax, WA, Shop Forty solar panels, each capable of generating up to 300 watts of Eric’s Auto Body in Colfax, WA, has direct current (DC), have been inbecome the first “solar” collision re- stalled on top of each of the two pair center in the area. Another one shop buildings for a total of 80 panof the few shops is located in south- els. The Washington-made panels ern Idaho. use photons from the sunlight to push electrons down wires into solar cells, which is called the photoelectric effect. Electricity from the panels goes through an inverter to convert the power to alternating current (AC). Eric’s Auto Body uses an inverter to change the DC power they collect to AC power and send the power back to the utility power Eric and Gretchen Heise stand in front of the installed grid. and functioning solar panels on top of the buildings of “During the long summer Eric’s Auto Body. Photo provided by Eric’s Auto Body & months, we expect to genGlass LLC for Whitman County Gazette erate more power than we “We capitalize on the sun,” said can use,” Heise said. They will be able to trade any proprietor Eric Heise. “We are proexcess power to Avista for credits ducing our own power!” The solar panels and a 24-kilo- against their winter usage. Last year, Avista offered an inwatt system were installed starting in late October and started produc- centive program that made the installation possible. ing power in December. by Kara Davidson, Whitman County Gazette

CREF Invites Industry Businesses to Sponsor Student Safety Kits for Collision Programs The Collision Repair Education Foundation (CREF) is facilitating a student safety kit donation program between collision repair businesses and high school and college collision repair programs. The safety kit includes:

• New Cintas work shirt/pants

• Pair of safety glasses • Ear plugs

• Disposable dust mask

Each local student can be sponsored for $50. Businesses that sponsor 20 or more safety kits can have their corporate logo featured on a patch on the front of the uniform shirts. “The Collision Repair Education Foundation wants to make the return to school this spring safer and more professional for collision school students,” said Brandon Eckenrode, 28

director of development for CREF. “Through the generous support of our industry partners, we can provide the next generation’s workforce with the support they need to succeed.” Participating businesses can sponsor schools of their choice, or they can choose to be paired with a school in need by CREF. The donation program can lead to long-term relationships between professionals and school programs that are preparing the next generation of collision industry employees. Sponsorships and donations are facilitated through CREF, but sponsoring businesses are invited to visit the school to meet the students and distribute the new uniforms. Companies interested in sponsoring the uniform donation program through CREF for the 2018– 2019 school year should contact Eckenrode at Brandon.Eckenrode @ed-foundation.org or (312) 2310258.

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

After the panels were in place, Avista installed two new meters: one to read the solar panels production and the other to read the output from the buildings. In the last month since Avista installed the new meters, the auto body shop has used 10.6 kilowatt hours and been credited with 7.22 kilowatt hours. Using computers or smart phone apps, Heise can monitor the system’s performance. Heise said the building that houses the painting shop, which is fitted with the paint “bake booths,” consumes far more electricity than the body shop, so he anticipates the paint shop building will be less likely to produce solar power in excess of what it consumes. Copyright 2019, Whitman County Gazette.

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NABC Recycled Rides Presents 4 Refurbished Vehicles to Palm Springs, CA, Recipients On Tuesday, Jan. 15, four deserving recipients from Palm Springs, CA, and their families experienced a lifechanging event: the presentation of a car to provide them with independence and the ability to work, take care of their families and serve their communities, thanks to the National Auto Body Council. The car presentations were part of the first-ever, single-day showcase called “NABC Day” for the collision repair industry, featuring the Annual Golf Fundraiser, presented by Hertz; an NABC Recycled Rides™ presentation; and the industry reception, presented by All Star Auto Lights—all held on Tuesday, Jan.15 at Tahquitz Creek Golf Club in Palm Springs.

“Our mission at the National Auto Body Council is to change and save lives by giving back to the communities where our members do business,” said Darren Huggins, chairman of the National Auto Body Council. “Through the generous contributions of our partners—the insurance companies who donate the cars, the collision repair facilities who repair them and the automotive product and service companies who provide much-needed support—we are able to help four local Palm Springs families gain new independence in their lives and confidence in their futures.” The four families, who each have a special needs child requiring extensive medical care and support, were selected by Variety, the Children’s Charity of the Desert. Since 2007, the NABC Recycled Rides™ program has worked with Variety to present some 20 vehicles to Palm Springs-area families. The recipients included: • For Yesenia Nicasio, caring for her 8-year-old and 12-year-old sons was challenging, but it became a 30

roller coaster when her 6-year-old son was diagnosed with Tuberous Sclerosis. His treatments take place at Loma Linda University Medical Center Department of Pediatrics, an hour’s drive for Nicasio. Without a car to take her son to the doctor, she is dependent on her mother for transportation, which isn’t always available. Nicasio’s goal is to provide the best life for her children, own a house one day and provide happy memories of their childhood. The gift of transportation will allow her to support the future she wants for her family and provide access to the treatment her son needs. Her 2016 Toyota Corolla was donated by State Farm and the repairs were done by Ben Clymer Auto Collision Specialists. Additional partners include 1-800-Charity Cars.

• Layla Williams had to make the tough choice between keeping her car or putting a roof over the heads of her two children, one of whom is disabled. They were sleeping at rest stops or low-budget hotels, which was very difficult with a disabled son. She chose more adequate housing for her family over the car, then faced the challenge of finding someone to take her son for his medical appointments. For Williams, a car would allow her to take care of her family, get to the grocery store, run errands and get her son to treatment. Williams received a 2015 Honda Civic LX that was donated by GEICO and repaired by Service King of Ontario. Additional partners include 1-800-Charity Cars, LKQ, Moss Brothers Wholesale Parts and Auto Nation Collision Parts.

• For Stephanie Conde and her family, finding transportation for medical treatment and doctors’ appointments is a challenge. Her 16month-old son was born with cerebral palsy and needs to visit the hospital in Loma Linda regularly. This makes caring for her 4-year-old difficult. The gift of reliable transportation will make things easier on the entire family and help ensure her son receives routine medical care. Conde was gifted a 2017 Hyundai Sonata that was donated by Hertz and repaired by Fix Auto Cathedral

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

City. Additional partners are 1-800Charity Cars and Fix Auto Cathedral City parts department.

portation for medical care is even more critical. The gift of a vehicle will make it easier for Puentes to care for her child and the family. The Puentes family received a 2017 Toyota Camry LE that was donated by Allstate and repaired by Caliber Coachella Valley. Additional partners include 1-800-Charity Cars, Allen Tire Company, NAPA Auto Parts, Toyota of the Desert, Cathedral City Car Wash and PS Autoglass. NABC Recycled Rides™ is a unique program in which businesses representing all facets of the collision repair industry team up to repair and donate vehicles to individuals and families in need of reliable transportation. Since the inception of the Recycled Rides™ program in 2007, members of the National Auto Body Council have donated more than 2,000 vehicles valued at more than $36 million.

• Perla Puentes was delighted to learn of her pregnancy, but as her due date approached, she learned

that her baby had Down’s Syndrome. She needed to travel regularly to the hospital in Loma Linda for pre-natal care. At the same time, their family car had a series of mechanical issues, making it unreliable for the trip. Now that the baby has arrived, their need for reliable trans-

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Industrial Finishes & Systems Names Vice Chairman

Industrial Finishes & Systems Inc. is pleased to announce the appointment of Gay Brown as Vice Chairman. As the daughter of Industrial Finishes Chairman, Stuart Barr, Brown has extensive experience in the business and has previously filled many roles at the company. Industrial Finishes & Systems is a privately held company owned by the Barr family. Industrial Finishes & Systems President Glenn Duckworth said, “The Industrial Finishes management team is grateful to the Barr family for their unwavering support. The appointment of Gay Brown to this position reflects their commitment to our business and our continued growth.” Brown will be based in the Eugene and work with Industrial Finishes’ employees and customers in each of Industrial Finishes & Systems’ markets, including automotive, recreation vehicle, aerospace and industrial.

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Dave Luehr’s Elite Body Shop Academy Launches Operations Monthly LIVE Dave Luehr, collision repair industry expert and founder of Elite Body Shop Solutions, is excited to announce the release of the latest training from the Elite Body Shop Academy (www.elite bodyshopsolutions.com/academy).

The course, Operations Monthly LIVE, is specifically designed to help collision repairers receive interactive monthly training and support to reach their operational goals. Dave Luehr’s Elite Body Shop Academy was created in 2018 to provide collision shop personnel modern operational, leadership and general body shop education in an easy-toaccess online video format. People can sign up for free at the academy to access their own private content accounts.

Collision Career Institute Celebrates One of Their First Technician Graduates by Chasidy Rae Sisk

On December 13, the Collision Career Institute (CCI) celebrated the graduation of Dillon Kendig from the CCI Body Technician Appren-

Dillon Kendig was one of the first technician graduates from CCI (l to r) Kathy Mello, Jason Cocco, Dillon Kendig and Scott Ingrahm

ticeship. Kendig trained at TGIF Body Shop in Fremont, CA, and according to CCI Chief Operations Officer Amber Ritter, “TGIF was dedicated to the process of Apprenticeship and giving Kendig the op32

portunity to train and develop his skills as a technician.” Kendig shared, “CCI is a great program to introduce new technicians to the new age collision repair.” Ritter added, “Kendig graduated the apprenticeship program with his I-CAR Pro-level 1 certification and a certificate from both the California Department of Apprenticeship Standards (DAS) and the Collision Career institute. This program is designed to educate future technicians while allowing them to earn money during their training.” The graduation ceremony was attended by trainer Scott Ingrahm and Verifacts Coach David Durham who conducted Kendig’s assessments, as well as TGIF owner Kathy Mello, general manager Jason Cocco and the shop employees. Kendig’s graduation was also attended by Jasmeen Karan, Associate Governmental Program Analyst for the Department of Industrial Relations Division of Apprenticeship Standards (DAS), and Charles Robertson, President of CCI.

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

“My observations lately indicate that body shop leadership and their teams work way too hard for the results they are getting.” said Luehr. “Shops that will thrive in the future desperately need a better approach. My purpose in launching Operations Monthly LIVE is to share these much-needed operational secrets with our industry.” Luehr is offering the first LIVECAST for free on Jan. 8, 2019, at 10 a.m. CST. During this one-hour training, he will share a simple system of operational goal-setting and execution that will help body shop executives proactively regain control and find operational success like never before. To attend this LIVECAST, visit www.elitebodyshopsolutions.com/ academy and sign up for Operations Monthly LIVE. Those who choose to subscribe to future monthly LIVECASTs will be given an opportunity to interact live with Luehr while learning worldclass operational techniques and much-needed leadership fundamen-

tals. This blend of educational content will allow participants to successfully implement and sustain the operational techniques learned each month.

“My observations lately indicate that body shop leadership and their teams work way too hard for the results they are getting.” — Dave Luehr

To learn more about how you can change your business for the better, check out www.elitebodyshop solutions.com/academy and look for Operations Monthly LIVE or email info@elitebodyshopsolutions.com.

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National Associations with Chasidy Rae Sisk

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.

180BIZ Presents ‘Keys to Real Delegating’ Webinar to AASP Members On Tuesday, Dec. 11, the Alliance of Automotive Service Providers (AASP) hosted a webinar featuring Rick White, lead coach of 180BIZ, who presented “The Keys to REAL Delegating (or How to Stop Babysitting).” White began his presentation by explaining, “Delegation is important because you have a lot going on as an owner. You need to be aware of how stressed you are in order to make a change.” The webinar’s objectives were to define what delegation is and isn’t, identify why people don’t delegate, explain why one should delegate and introduce the 4 Cs to successful delegation. White noted, “Delegation is the skill of assigning responsibility for a task or a result for which YOU are still ultimately accountable. You still own the result! Accountability is a

plane with abdication on one end, where you walk away from it; many of us delegate tasks we don’t like to do, and then we lose control. On the other end of the plane, there’s micromanagement, which stresses people

out and doesn’t empower them or allow them to grow. In the middle, there’s a sweet spot called delegation.” White listed a variety of reasons why people often fail to delegate: You are a control freak, you like the spotlight, they do it wrong, they lack the skills, you have no time to train them, you enjoy doing it, you hate

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

telling them what to do because you don’t want conflict, you overthink it, you don’t want to be a burden, you feel it’s boring, or you’re afraid of burning out your staff. White also identified the many benefits of delegating: It frees you up to do more valuable tasks, it develops new team member skills, it increases workers’ confidence and self-sufficiency, it improves customer service, and it helps everyone feel less overwhelmed. White offered two truths about successful delegating: “If you have team members and you’re doing everything, you’re a babysitter, not a leader. Delegating is a skill anyone can learn and use!” The four Cs of delegating are: Clarify, Communicate, Control and Celebrate. Clarifying begins with the business owner, who must: have a mind-

set toward delegation, understand what they want and why, and then delegate intelligently, not emotionally. A successful delegator will delegate outcomes, not tasks. The questions White recommended asking yourself are: What does this outcome look like? Am I clear on what I want? Can I communicate why I want it? How often will I check in? Does this person know how to do it (do they have resources)? What preferences do you have? When choosing a person to which a task is delegated, you must ask if they are eager to grow and improve, if they are open about past failures, if they work well with little oversight, and if they listen and ask questions. “Be clear about who the ideal candidate to delegate to is,” White advised. Communication isn’t what you

say; it’s what the listener hears and walks away with. Identify the issue, starting with why and explaining why it matters to your listener, your team and your customer, and then ask for help to create emotional buy-in. “Starting with the mission creates commitment instead of compliance, which is critical, especially to

how will you convey that feedback? And what’s your deadline? You can do the right thing, the right way at the wrong time and get the wrong result. That’s why we need to be crystal clear about the outcome we want.” Control is about having a plan, but it’s not about micromanaging.

younger team members,” White explained. “We want people committed. We don’t just want their hands. We want their heads and their hearts, and we don’t get that by telling them what to do. That’s why we start with why. We want commitment, not just compliance. “After determining the why, decide what you want, when you want it and how you want it done to ensure everyone understands the level of authority. How will you measure performance? What will you measure? When do you measure it, and

White suggested, “Give authority gradually. In the beginning, provide more oversight and guidance. Expect more questions and verifying. Maintain availability with people you’re delegating to so you can help them figure it out. Once they’re proficient, create checks and balances to ensure you continue to get what you want to make happen. Monitor results, meet regularly, look for teachable moments, and plan to improve.” Identifying teachable moments as a “spontaneous opportunity to teach a skill,” White said that teach-

“Delegation is important because you have a lot going on as an owner. You need to be aware of how stressed you are in order to make a change.” — Rick White

able moments are a time to demonstrate your belief, build up their confidence, teach them a skill in action, and reinforce positive behavior. Teachable moments can be identified when expectations are not met; when an associate is grumbling about a customer or discussing an event as a customer; or when your team member did an amazing job, needs a morale boost, is stressed out, is losing their temper, needs an attitude adjustment or is exceeding expectations. “When a team member exceeds expectations, ask what they’re doing differently so they can repeat the behavior in the future,” White noted. “As a business owner, you need to create and protect your brand and create and generate awareness of your business. You also need to grow your people; they should come in better every day. Create the PACE, which stands for Purpose and Passion, Activity and Attitude, Commitment and Caring, Energy and Expectation. Using teachable moments allows you to guide with questions rather than giving an answer, and things get easier when your team members own the results.”

s s

Finally, celebrate when you start seeing improvement. “Most people only know they’re valued by getting a paycheck, but no one lives in a vacuum. If they’re going to own the losses, you must also give them the wins,” White advised. “Celebrate incrementally as they grow, rather than waiting for the big wins. Celebration can come in the form of compensation, praise, recognition, a gift or a party—there are lots of ways to celebrate, but make sure the celebration means something to your people.” As the webinar ended, White concluded with a few reminders. “You can do anything you set your mind to, but you can’t do everything,” he said. “Delegation is what makes everything possible. Using the 4 Cs (Clarify, Communicate, Control, Celebrate) will free you up, grow your staff, and make your customers happier.” The webinar concluded with a question and answer session. For more information about 180BIZ, visit 180biz.com. For more information about AASP, visit www .autoserviceproviders.com

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National News with Chasidy Rae Sisk

Dave Luehr’s December Elite Webinar Features Brad Mewes Discussing ‘Financing Growth’ On Dec. 13, Dave Luehr’s Elite organic growth; efficiency and cost Body Shop Solutions’ free webinar reductions; new developments; and series featured an informative session acquisitions. Most small businesses titled “Financing Growth” discussed focus on organic growth by attracting by Brad Mewes, founder and princi- and retaining customers, and owners pal consultant at Supplement Advi- tend to focus on enhancing efficiency sory. and reducing cost. The goal of the webinar “The companies that was to share information on: grow the most turn their athow to finance growth, the tention to new developdifferent types of lenders ments and acquisitions, but and how companies can best these are less common beposition themselves to accause funding is a challenge cess these funds to facilitate in the industry,” he said. Brad Mewes, the growth of their business. “Focus on all four is imporfounder and Luehr began by talking principal consultant tant. The key factor here is at Supplement about the purpose of the that they all involve some Advisory webinars and encouraging sort of investment, whether shops to sign up for the Body Shop in time, energy or money. Growth reExecutive’s Performance Group on quires an investment, but the largest Facebook and the Elite Body Shop players in the industry are willing to Solutions Academy (elitebodyshop invest heavily in that growth.” solutions.com/academy). He also anCommon questions that Mewes nounced that he will be launching a received included how to: find the brand-new product, the Operations right lender, prepare financials, know Monthly Live, on Jan. 8, in which he how much is needed, minimize risk will be talking about goal-setting and and increase certainty of funding, how to build the operational business evaluate different loans and avoid of your dreams. making costly mistakes. After reminding attendees that “It’s not a lack of options that the webinar can be used towards slows us down. More likely, it’s too AMi credits and providing the an- many options that cause paralysis,” titrust guidelines, Luehr introduced Mewes advised. “Set a path to minMewes, who began his presentation imize the options, and that will inabout leveraging $638 billion worth crease the likelihood of success.” of assets to build the business you Talking about growth capital deserve. He began by providing a and funding for your business, brief description of his background, Mewes showed a video by Fix Auto including his lifelong involvement in that demonstrated the capital requirethe collision repair industry, which ments that go into running a modern has culminated in his current role as collision repair center. a business advisor working with inHe noted, “The amount of capivestors, analysts and bankers to help tal needed to be competitive in shops support expansions and im- today’s market is significantly higher provements. than it was even a few years ago.” “I’m privileged to work with a Forty percent of small business lot of businesses, allowing me to owners consider additional funding leverage a broad base of insights in for their business each year, yet 80 order to drive growth,” Mewes stated. percent of small business loan appli“Driving growth is the business phi- cations to traditional banks are relosophy at Supplement Advisory. We jected. Noting that 70 percent of are very growth-oriented and focused small business owners don’t realize on building and growing the business there are alternative sources to you deserve.” banks, Mewes discussed private eqFour primary ways to grow a uity and debt, explaining that $638 business (in terms of profit) include billion worth of private debt assets

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were under management as of June 2017. This includes $236 billion in investible funds ready to be deployed. Mewes said, “While private equity assets under management have increased by approximately 90 percent since 2007, private debt assets under management have more than tripled in the same time period.” Turning to the most important things to think about when attempting to secure financing to grow your business, Mewes introduced attendees to the ABCs of financing: Assets, Business cash flow, and Credit—the factors that every lender will consider in order to determine a shop’s loan worthiness. He explained, “As you’re preparing to go out to the market place, one of the key things that every business needs is assets, or collateral, which is what the lender needs to be secure in

making a loan to the business. Part of the challenge is that if you’ve underinvested in assets over time, some lenders will balk at providing capital because they have nothing to secure that capital. “The next thing is business cash flow. Lenders like to see sufficient cash flow to service the debt they are providing, meaning the amount of money transferred into and out of a business. Lastly, a creditor is going to investigate business and personal credit.” Segueing into the five Cs of credit, Mewes gave examples of Character as reputation, Capacity as debt-to-income, Capital as equity, Collateral as personal assets, and Conditions as defining the purpose, providing examples of how to frame those conditions. Mewes advised, “When going to See Elite Webinar, Page 61

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In Reverse with Gary Ledoux

Early DRP Programs of the 1960s In the 1960s, the concept of a direct repair program took several twists and turns before it got to the model we recognize today. Here are a few variations of that theme. In the early 1960s, dealer-owned body shops were at odds with independent shops. Dealers saw the phenomenal growth of independent shops and felt threatened. In Tulsa, OK, in the early part of 1961, the area dealers decided to corner the market. A group of dealer-owned shops got together to offer insurance companies discounts on parts and labor if they sent more cars to their shops. The local insurance agents loved it and established what was then known as the “Approved Garage Plan,” or an early form of a DRP arrangement. Insurance agents and adjusters began telling claimants that they could bring their car to a nonpreferred shop if they liked, but the

Gary Ledoux is an industry veteran with 48 years’ experience in the automotive and OEM collision parts industry. His column appears exclusively in Autobody News. He can be reached at YesterWreck@yahoo.com

vehicle would probably be “held up” because the insurance company did not have a “check bid” with the nonapproved shops. This deepened the rift between independents and dealers. Independents thought the dealers had an unfair advantage because it was thought that 1.) the dealer could handle a lower profit made from body work because they also had profits from their service departments and new cars sales, and 2.) because the dealer bought the parts from the car maker, they could sell them to the insurance company at the same price as what the shop would pay for them. In this particular case, a then-current trade magazine noted that one Tulsa shop owner decided he would rather get out of the business than succumb to insurance companies’ and dealer body shops’ tactics, so he sold his shop and opened a sal-

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

vage yard. One of the earliest forms of a DRP network emerged in 1961, but it was way different from what is known today, over 50 years later. In 1909, Grinnell Mutual Reinsurance Company was founded in Grinnell, IA. By 1961, it was serving customers in eight states and had a network of about 100 dealer-owned and independent shops to which they sent policyholder’s vehicles for repair. But Grinnell conducted their claims business very differently from how virtually every other insurance company did. Shops in their network did not bother to write estimates. Grinnell agents sent policyholders’ cars to the network shops. The shop simply repaired the car in a safe and proper manner and sent the bill to the Grinnell claims department. Grinnell’s policy was that the shop should

be trusted to repair the car properly and at a fair and competitive price, and in return, they would pay the claim in a timely fashion, and all the bickering and animosity would be removed from the equation. In the ensuing nine years of conducting business in this manner, only two shops were removed from the network. In addition to giving the shops its trust, Grinnell’s also loaned money to any of its network shops for new equipment or other business expansion purposes. In the early summer of 1963, 100 auto body repairmen attended a seminar in Iowa conducted by Farmers Mutual Reinsurance Company. During the all-day clinic, three damaged vehicles were repaired by equipment company representatives. The clinic, then unique in the automotive insurance industry, was part of Farmer’s program of working with

body shops to maintain high standards of workmanship, facilities and integrity. In the course of the clinic, qualifying shops were appointed as approved repair centers, then started receiving work from the company’s claim section without a cost estimate being submitted. A Farmer’s representative said, “…such a system is practical, time-saving and efficient for the insured, the body shop and the company.” Unfortunately, not all shops conducted themselves with all insurance companies the way they did with Grinnell Mutual or Farmers Mutual in 1963. Many shops tried to profit fraudulently on the backs of insurance companies, causing many insurers to turn to the forerunners of the DRP program—informal agreements to give work only to “honest” shops. At that time, there was a symbiotic relationship between some shops and certain adjusters, mostly with independent adjusters /appraisers. When a potential customer came into a shop for an estimate, the shop would first try to determine which insurance company was involved. Based on that answer, the shop

would know who most likely would be coming out to inspect the damage. The shop would pad the estimate by 20 percent so the adjuster could cut it by 10 percent. The shop got some premium money, the adjuster/appraiser looked good to his superiors, the customer got a quality repair, and everybody was happy. Another trick some shops used was to keep a bin full of used parts from old jobs. If the shop owner wanted to make a few extra dollars on the job, he would pull an AC compressor or steering rack or something else that “might have been damaged” in the accident and put in a supplement to R&R that part. Another trick was to push for a complete panel replacement including parts and labor, and then fix the panel with some filler. Shop owners had another trick to garner more insurance company work—“low-ball pricing,” or what lawyers called “predatory pricing.” In the late summer of 1969, a bill introduced by Senator John Sparkman (D-AL) would address those body shops that used “predatory” pricing to carry favor with insurance companies and garner more work at

deeply discounted prices. John Killcullen, general counsel for the Conference of American Small Business Organizations, noted, “Loss leaders (selling one product at a loss and making up the difference with other goods or services, as many shops were doing at the time) is preventing new, independent firms from entering existing markets and forcing other small businesses out of the market.” Obviously, not every shop was guilty of the aforementioned subterfuge. There were plenty of standup shop owners who took pride in their craftsmanship and whose professional reputation were paramount. They took pride in their work and in their industry. Unfortunately, those who were around during that time maintain that under-handed practices were so widespread that they were described as pervasive. One former shop manager who was around during that time and was interviewed for this article called the late ‘60s and early ‘70s the “Wild West” period of the industry when “anything went.” The insurance companies needed a way to protect them-

selves against fraud. This gave advent to the insurance company appraiser or independent appraisers. In 1962, a trade magazine article written by C. A. “Art” Fox, president of the Independent Garage Owners of America, stated in part: “Let’s face the fact: Unethical shops (not the general run of body shops) in the beginning took advantage of insurance companies by increasing the cost of the job to cover the deductible. They did other work in conjunction with the immediate repair and added that cost to the collision job. In self-preservation, the insurance companies resorted to their own appraisers or used outside, so-called ‘neutral’ appraisers. This was a fairly workable plan for a while, but now the tail wags the dog; the appraisers are setting the cost for collision repairs without knowing the cost of the shop’s operation (and neither do many shop owners!). This has been going on for some years now, and most body shop operators are hypnotized into believing they have to work on the low estimate, regardless of who made them. This practice inSee Early DRP Programs, Page 44

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From the Desk of Mike Anderson with Mike Anderson

Mike Anderson is the president and owner of Collision Advice, a consulting company for the auto body/collision repair industry. For nearly 25 years, he was the owner of Wagonwork Collision Center, an OEM-certified, full-service auto body repair facility in Alexandria, VA.

Automaker’s Increased Role in Claims Seems Just on the Horizon as Connectivity Happens It’s been about four years since the industry began talking about the automakers playing a larger role in helping vehicle owners after an accident—using telematics to contact the driver at the crash scene, for example, to ask if they need medical help or a tow arranged for them, or to see if they would like a referral to a nearby shop certified by that automaker. I frequently get asked, particularly by shops that have invested in OEM certifications, when that’s going to start to take place regularly. I believe there are three things that need to occur—and are about to happen—to make that a reality. I should say these are strictly my opinions based on what I’ve read, conferences I’ve attended, etc. But the first thing that needs to happen is to have more vehicles “connected” via internet access. That’s happening rapidly. From the research I’ve seen, just three years from now, in 2022, nearly 90 percent of new vehicles in North America will be equipped with telematics.

But being equipped to be connected and actually being connected are two different things. To have more consumers choose to be connected will require two other changes that I see beginning to occur. First, there’s a generational shift that has to happen. My 81-year-old 42

father does not want GM’s OnStar to always know where he is. He’s concerned about privacy. But my 20something-year-old niece, on the other hand, wants to stream music, so she wants to be connected to the internet 24/7. She wants her child to be able to watch movies while they are

for example, and working together on first notice of loss. In either case, I think that shops thinking about where they want to be three or four years from now need to be moving toward OEM certification, so that as that OEM connectivity to the vehicles increases, you’re there.

in the car. That generational divide may have slowed the adoption of vehicle connectivity, but that’s changing. The other factor that has to be addressed is affordability. Studies have found U.S. drivers aren’t willing to pay even $500 a year to have their vehicle connected, and Canadians are willing to pay even less—under $200 year. That’s why some recent announcements by automakers are convincing me that the connected car is about to become much more common very soon. There are automakers offering internet connectivity for $22 a month or even $17 a month. One automaker has said that in 2019 it will offer free internet connectivity for a number of years on its new cars. So the technology is there, the affordability is getting there, and the generational shift is happening. As those three things align, it starts to bring to fruition the ability for car manufacturers to handle first notice of loss after an accident. How will that look? Some automakers may offer their own insurance bundled with the car. They’ll want more control over their customer’s experience with that vehicle even throughout the claims process after an accident. Others may do something more jointly with insurance companies, partnering with them to provide the insurer with accident information,

Could this create some challenges in the meantime? You bet. OEM certification programs may have different parts use expectations than insurer direct repair programs, for example. That may mean giving up some margin by using only OEM parts or maybe stepping back from some DRPs. I think it’s conceivable that as automakers control more of the first notice of loss process, they

“Some automakers may offer their own insurance bundled with the car.” — Mike Anderson

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

RN SOUTHE

could help a shop regain market share the shop may have lost by ending a DRP relationship. Some shop owners will question whether there’s a risk of not getting a return on their investment in OEM certification. What if this increased involvement of the automakers doesn’t occur, or doesn’t result in added business for certified shops? To me, that’s a little bit like asking, “What if I invest in a whole bunch of training for a technician who then leaves my shop?” My response to that question has always been: What if you don’t train that tech and they stay? What happens, in this case, if you don’t get OEM-certified, and the connected car scenario I foresee happening plays out—only by then, the automakers already have their certified shops in your market? What will you do then?

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Day Job/Night Job with Ed Attanasio

Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.

Eric Newell Is Not Afraid to Serve His Community in Different Ways As a part-time firefighter, a member of his town’s Building and Planning Commission and an area marketing manager for asTech—a company that focuses on providing OEM diagnostics to collision repair shops nationwide—Eric Newell, 36, is adept at multi-tasking, to say the least. When he isn’t going into burning structures to save lives or working for asTech, he is making crucial decisions about the future of Lowell, IN—a town whose slogan is “A Friendly Town of Friendly People” with a population of approximately 9,000. Newell broke into the collision repair industry as an estimator for Cars Collision, an MSO with locations in Indiana and Colorado before the business was bought by Gerber Collision & Glass. He redirected his career from there and decided to become a full-time firefighter. “I’m in my 10th year now as a firefighter, and I love it because I can help people and play an important role,” he said. “I also love the brotherhood that exists between firefighters.” After completing his two-year training to become a paramedic and a firefighter, Newell was assigned to Fire Station 1 in Schererville, IN. He immediately took to his new job and excelled at his new role. “It’s an exciting and fascinating life with something new and different to do literally every day,” he said. “After two years, I was elected and became our union president of the Professional Firefighters of Schererville and subsequently became a member of the state organization’s board.” In 2013, Newell received the Firefighters’ Medal of Honor for savContinued from Page 41

Early DRP Programs

evitably leads to shoddy workmanship and unsafe collision repairs because the shop owner wants to make a profit. Correction of this situation, 44

ing a fellow firefighter in addition to several other citations over the years, he said. “An attic above us collapsed on a firefighter, and he wasn’t able to get out of the building, so I dragged him down three stories and got him out. I didn’t have any time to think about it,

Eric Newell is a member of the Building and Planning Commission of Lowell, IN, when he isn't working as an area marketing manager for asTech

and my adrenaline was pumping. I know he would have done the same for me if I was in his position, so my training kicked in and I got him out. I don’t fight fires for awards or medals, but it is nice to be recognized,” he said. After a while, an opportunity to re-enter the collision repair industry came his way. He decided to take it. “A friend of mine owns a sixshop MSO in northwest Indiana. They asked me if I would work for them part-time as a consultant, and I said yes,” he said. “I later became the company’s compliance manager and then was promoted to their COO. In July of [last] year, I was offered the job at asTech, and I decided to accept it. I cover three states (Indiana, Illinois and Ohio) for asTech, and it’s a in the estimate of this writer, is a matter of education.” Fox urged shop owners to ascertain their operating costs and learn to make better estimates so their work would be profitable but fair. Still, it would not stave off the advent of the modern DRP programs.

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

great place to be. We have some of the brightest minds in the industry and an incredible executive leadership team.” At the same time, Newell was appointed to a position in Lowell’s Office of Building and Planning Commission and accepted it without hesitation. “It’s a great role for the town, and I enjoy doing it,” he said. “If a new business wants to come into Lowell or if an existing business wants to change its structure, we have to review it and make a decision. I am now thinking of running for Town Council in the next election, which will be in November. It’s been very satisfying, so expanding my role is something I am definitely considering.” Now, Newell works full-time at asTech and covers at least one 12hour shift at the firehouse in addition to sitting on his town’s board. It’s a

hectic life, but he would not change it for anything. “Busy people are happy when they’re busy. It’s all about being organized, and that is why it works. People make the time they need to do what they want to do, and if you play a positive role, it fulfills you on many levels,” he said. One of the things he wants to do now is help asTech grow and to continue on his path to helping others, he said. “They would have to kick me out of the firehouse for me to stop, and that’s not going to happen anytime soon,” he said. “asTech is going through a hyper-growth stage, and I want to be instrumental in that. It’s an exciting time in my life, and if I can get enough leisure time to attend my 10-year-old son’s wrestling matches and play a little golf now and then, I am a happy man.”

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National Associations with Chasidy Rae Sisk

ASA Hosts RepairPal’s Jill Trotta for Webinar on Transparency and Trust On Dec. 19, the Automotive Service Association (ASA) hosted a webinar titled “Transparency & Trust: A Guide to Getting Customers and Keeping Them,” presented by Jill Trotta, vice president of industry advocacy and sales for RepairPal. Trotta, who boasts 25 years of industry experience, said the goal of the webinar was to share how RepairPal gains insight into consumer behavior and needs from its 5 million monthly website visitors as well as how shops can apply this information. ASA Vice President Tony Molla hosted the webinar. He welcomed attendees and introduced Trotta, who defined her key objectives as providing information on how to overcome price-sensitive customers, delivering data about price transparency and consumer behavior, and teaching about tools to work with the modern

auto care consumer. “RepairPal spends a significant amount of time trying to understand consumers who have changed more in the past five years than in previous decades,” Trotta explained. “Today’s consumer is tech savvy and uses mobile devices. They are better-educated and research prices online. They also value instant gratification.” When consumers were asked in 2017 if they felt they were charged a fair price for their last automotive repair, only 42 percent said yes, while 58 percent answered in the negative. This was a 6 percent increase in dissatisfaction from 52 percent in 2014. Trotta pointed out, “The majority didn’t feel like they got a fair deal.” Of the consumers who believed they were charged a fair price, 31 percent determined this based on comparisons to other shops; 31 percent reported a gut feeling; and 28

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have enough savings to cover a $500 emergency, but automotive repair is one of the single biggest necessary expenses for today’s consumer and can throw their budget into a tailspin. This is why consumers are so often focused on price. According to Trotta, “Shop ads and websites that focus on price deliver 6–7 times better results than those that don’t. Some phrases that pay include: “straightforward and transparent pricing”; “upfront pricing”; “We never overcharge”; and “Happy to provide a good estimate.” “When you ask people if they want price or quality, they want quality, but they ask about price because they have no idea what else to ask. Unfortunately, explaining that a shop performs proper repairs doesn’t attract traffic to the website; you need to talk about pricing. At our core, RepairPal is focused on quality repairs

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percent based their opinion on online research. When those who were unsatisfied with the price explained the reason, 36 percent reported that the issue was not resolved; 29 percent did online research; 18 percent compared to other shops; and 17 percent felt they received poor value. While 85 percent of consumers check prices, only 45 percent check them before authorizing the repair. Based on research of the 40 percent that check prices after authorization, Trotta shared, “For every 26 unhappy consumers, only one will complain directly to you. Most won’t call you and tell you, but they will call your competition, tell their friends or post reviews. Very few will actually call and tell you. We all know that retaining your customers is critical to the future success of your business.” An alarming trend Trotta noted is that 63 percent of Americans don’t

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and safe repairs for consumers, but the shops in our network have a proven track record that they are focused on the same. RepairPal is really focused on pricing in order to attract traffic to the website.” Explaining how to create a transparent experience for customers, Trotta said, “If a customer leaves the shop confused about what they experienced or unsure if they received high-quailty work or a fair deal, they are unlikely to return. “Do these three things: 1. Many shops focus so much on the initial conversion that they forget to check in with the consumer as they are leaving the shop. 2. Making sure the consumer is fully satisfied confirms understanding of what was done, why it was done and what any next steps might be. 3. Small gestures like leaving the car clean and tidy make a big difference.” Transparent customer communication should follow three steps: receive complaint and perform diagnosis, determine the cause and recommend the corrections. “Breaking out items in a way that the consumer can understand ex-

actly what they’re paying for is important,” Trotta stressed. After reviewing what she’d covered, Trotta reiterated the importance of mentioning price, noted that 46 percent of consumers will pay more for a two-year warranty as opposed to a one-year warranty and emphasized the importance of your value shining, because 30 percent of consumers will call more than one shop. Trotta explained that transforming price into value starts with presenting the diagnosis as a product. “Prices must be clearly attached to meaningful services and outcomes. Provide a clear and concise broken-down final RO with no ‘unexplainable’ charges. You may not be the cheapest shop, but you can offer the highest value,” she said. Trotta explained how RepairPal’s Fair Price Estimator works and how it benefits shops by building trust with consumers. “Removing questions from the customers’ mind is what’s going to retain customers,” she said. “We offer friendly customer explanations, and we provide a third-party voice that mirrors your own. Calling other shops

is a way to get a second opinion. When you direct consumers to RepairPal, we become the second opinion. Hopefully, the consumer goes to our site and experiments with our estimator instead of calling another shop. “Shops in our network are the top 20–25 percent of shops in the industry, and our estimator is built to reflect that. When compared to other estimators [in the] market, we generally have higher prices and we give more information. We are for fair pricing, not cheap pricing. We give the whole picture and promote the right repair.” To inspire customer loyalty, shops should communicate, be transparent, do a great job and ensure a smooth exit from the repair experience. They should also help the consumer evaluate their reputation and price, coordinate the consumer’s online and off-line experience and help them solve their problem as quickly as possible without sacrificing price, trust or convenience. It’s also beneficial to help the consumer understand pricing and repair decisions and make sense of any pricing differences

they may encounter when doing research. Trotta noted, “Explain what you need and why! People like to do business with other people.” She continued to talk about creating a transparent experience before providing information on RepairPal’s estimator widget that shops can place on their website. She also talked about the benefits of offering a two-year warranty. “This is a very inexpensive thing you can do for your customers. Most consumers see it as more valuable to have a longer warranty than a nationwide warranty,” she said. The webinar concluded with Trotta sharing RepairPal’s values and describing its involvement with the industry. Before ending with a questionand-answer session, Trotta observed, “We want to provide consumers with the best shops. We want to work together, constantly solicit feedback and improve our processes.” For more information about RepairPal, visit repairpal.com. For more information about ASA, visit asashop .org.

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Will NACE Make a Comeback? by Gary Ledoux

For years, the National (then later the International) Autobody Congress and Exposition, better known simply as NACE, later combined with the Congress of Automotive Repair and Service, better known simply as CARS, had been the premier trade show for the collision industry. Driven by its sponsoring organization, the Automotive Service Association (ASA) the NACE show saw terrific growth in its early years, then fell into a long decline. For 2019, there will be no NACE show. So what happened? Founding and Growth Sponsored by the then-premier automotive repair organizations of their time, the Independent Automotive Service Association and the Automotive Service Councils, the first NACE show was held in November, 1983 at the Opryland Hotel in Nashville, TN. Prior to this time there had been a number of small, regional shows sponsored by local autobody associations but this was the first show of its type on a national scale. The first show proved popular and exceeded expectations. NACE came along at precisely the right time in the evolution of the industry. In the summer of 1983, a spot survey of shops conducted by the trade media asked how many had attended a national or local trade show. Close to eighty percent had recently been to a trade show and over ninety percent had been in the past two years. Those that did attend said they wanted to look at the latest equipment and keep up on repair techniques and trends. Those that didn’t attend claimed there were no shows in their area, or they just didn’t have time to go—being so busy just to stay afloat. The first show saw 171 exhibitor booths and about 1,500 attendees. Reaching Its Peak In the early 80’s, shops were on a buying frenzy, securing new equipment to work on the new unibody cars and a trade show was the ideal place to see the equipment, talk with manufacturer reps, and network with other shop owners. 48

Only two years later, in 1985, NACE attendees exceeded 4,000. In 1986, attendance exceeded 6,200 and by 1988, attendance broke 10,000. The last show of the decade saw over 15,000 attendees. The period of the 1980’s has been called an “awakening” of the industry where not only were shop owners interested in new equipment and technology—they wanted to know how to run a better, more prof-

itable shop and NACE was leading the way. By now the show had over 400 exhibitors and all the training and seminar sessions were sold out. The 90’s saw continued grown with over 23,000 attendees in 1993. But by 1998, the party was over. The 1997 show held in Las Vegas saw almost 3,000 exhibitors and over 41,000 attendees. But exhibitors began to realize that the money they spent on lavish parties and “corporate entertainment” could be better spent on training seminars or other initiatives that were more beneficial to the customer and the sponsoring company. From this point, the show saw a steady decline and the last two years only saw around 5,000 attendees per show. NACE In Decline Over the years, several industry leaders have offered various reasons for NACE’s decline. It is quite probable that no one element was responsible, but a number of them mixed together in a toxic brew that combined over the years. A few include:

Political Differences – At one time, the NACE and SEMA shows were held at the same time (or overlapping days) in Las Vegas. An attendee could buy one plane ticket to Vegas, see both shows over the course of three or four days, have a good time, and optimize their travel budget. When NACE and SEMA

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

separated, it disappointed both attendees and exhibitors.

Environment – the equipmentbuying frenzy of the 1980’s was over and the next “technology wave” including aluminum, ADAS systems, etc. had not yet hit.

Technology – With the advent and proliferation of the internet and industry communications, it was no longer necessary to travel to a trade show to see the latest equipment or network with other shop owners or industry people.

Mis-Steps – On more than one occasion, exhibitors met with NACE management calling for reduced costs on floor space and amenities and/or more attendees. Exhibitors wanted “something different” to attract more people although they were not sure what “different” looked like. But each year, the show followed the same pattern. It seemed to exhibitors

that show management either did not listen to the exhibitors, did not care, or simply did not know what to do. Exhibitors lamented that the show no longer “penciled out” – it no longer made sense to spend such a large amount of money to see a dwindling number of attendees.

Enter Automechanika Automechanika is known around the world as a premier producer of automotive-related shows holding events in such places as Dubai, Buenos Aries, Frankfurt, Istanbul, and Madrid to name a few. The shows purportedly are huge, eclipsing even SEMA/AAPEX, the largest automotive show in the US. On their entry into the US market, Messe Frankfurt President and CEO Dennis Smith noted, “We were asked by several leaders in the mechanical side of the business to bridge the relationship between manufacturers and shop owners—to have a show that addressed shop owners and was not a distributor show.” To that end, Messe Frankfurt joined

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forces with AdvanStar Communications and the first Automechanika show was held in Chicago in 2015, sans the NACE component. “There were some mis-steps, problems with conflicting dates with other industry events, and we learned a lot from that show,” said Messe Frankfurt’s Smith. For their next step, Messe Frankfurt joined in discussions with ASA management. No doubt, in an effort to boost show attendance and enhance the attendee experience, NACE and Automchanika joined forces for a combined show, first in Chicago in 2017 and again in Atlanta in 2018. Based on a December 2018 interview with Messe Frankfurt’s Smith, the majority of exhibitors attracted by Automechanika for the 2017 and 2018 shows were there for the purpose of branding their mechanical-oriented products to let the industry know they were available at their local supplier/jobber. However, other exhibitors brought in by Automechanika were looking for US distributors to carry their foreign-made, mechanical-oriented products. Some

show attendees and long-time, traditional exhibitors were confused. Others were disappointed. Despite the combined efforts of ASA and Messe Frankfurt, and the introduction of a new show management company in 2014 (Stone Fort replacing longstanding Hanley-Wood), things didn’t improve.

2018 Show IN Atlanta Soliciting, via social media, comments from those who attended the last NACE show held in Atlanta in 2018, one manager with one of the larger MSO’s noted, “It was pretty bleak. There were maybe 75% less exhibitors in Atlanta than there were the year before in Chicago. Many of the top vendors weren’t there, opting to hold off until SEMA and a larger audience. NACE has become a minor-league player.” Again using social media, the 2018 NACE attendees were asked what they thought was the issue killing NACE, one equipment executive noted simply, “SEMA.” He went on, “The paint companies have pulled out of NACE, as have many of the larger supplier companies. Even 3M

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pulled out. The OE’s are largely gone. Some vendors had large booths but most of them are gone. There is no reason for the average shop to attended NACE anymore.” Other Shows Flourish NACEs decline was brought about for a number of different reasons as mentioned above, but not because the industry did not need a show. It needed a show that was more relevant, a show that catered more to its constituents. The Specialty Equipment Market Association, better known as SEMA, had for years been the domain of the “go-fast, sound-loud, glistening-chrome” crowd. Its annual shows, which had grown to tens of thousands of people, dedicated a very small section to the collision repair industry only because it was such a “close cousin” to the hot-rod building community. In 2010, the Society of Collision Repair Specialists (SCRS) began to change that sponsoring the first Repairer Driven Education series. It was a 2-day event which expanded to 4-days the following year. In 2010

SCRS sponsored 24 total speakers. In 2018 SCRS sponsored 61 subject matter experts. Over the next few years, SCRS not only increased the education opportunities to shops but also increased their physical presence which led to more collision exhibitors joining the show. In 2010, the collision section of SEMA occupied only a small section of the Las Vegas Convention center’s North Hall. The 2018 show saw the collision section covering half the North Hall and a large area of the newlyadded exhibit space in the Westgate Hotel. In 2017 and 2018, an estimated 10,000 collision-oriented attendees visited the collision area of SEMA, double the amount that visited NACE. Meanwhile, on the east coast, a regional trade show called the Northeast Automotive Services Show (later shortened to the Northeast Trade Show or NETS) presently held at the Meadowlands Convention Center in Secaucus, NJ had been around since the late 70’s. As a regional show sponsored by the New Jersey Autobody Association and later by AASP/NJ it drew a re-

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spectable crowd from New Jersey, New York, Pennsylvania and vicinity. The NETS only advertised within their immediate area and the show remained robust, but small. More prodigious growth would not come until 2014 when American Honda, and other OE’s began to support this growing show. NETS completely sold out of space in 2014 – and each succeeding year. While NACE catered more to the executives of the industry, the NETS addressed the shop owners and technicians holding the show on a Friday night, Saturday and Sunday – time when most shop owners and techs were not on their production floor. In 2017, the NETS doubled in size and began a more concerted effort for training in cooperation with the Washington Metropolitan Auto Body Association (WMABA). The NETS had offered training and various seminars before but WMABA brought things to the next level. New and Improved for 2020 After a dismal showing in Atlanta in 2018, it looked like NACE was doomed to extinction. Long-time ex-

hibitors were gone, OE’s and paint companies - the anchors of the show were largely gone. It was not unlike a huge shopping mall with the anchor stores shuttered. It seemed everyone stopped caring, and abandoned what had been the jewel of the industry. ASA and Messe Frankfurt officials knew changes had to be made. “We need to hit the reset button,” said Messe Frankfurt’s Smith in a recent interview. “And we need time to do that. So we’ll take a break for 2019, and come back in 2020 with a whole new concept. We need to meet the needs of the traditional attendees. We have some ideas on how to do that. But we’re going to build our concept, then run it by some industry leaders to see what they think.” When asked if they will concentrate solely on the collision side of the business or engage more on the mechanical side, Smith said, “We will have a balance. There is a growing importance for the mechanical side of things in the collision business. Many shops perform their own mechanical repairs. Shops will have

to perform an increasing amount of vehicle diagnostic scans and re-calibrations. That will require mechanical tools and training.” Calls to ASA for comment about the 2020 show went unreturned. After so many years of decline and neglect, revitalizing NACE will be a real challenge. One is reminded of the chicken and the egg conundrum. Many exhibitors will no doubt want to stand on the sidelines to see if things improve before they dedicate any more time or effort to another industry show. On the other hand, an industry show will need some big-name, anchor exhibitors to start attracting other smaller exhibitors, and more importantly show attendees. Time will tell. See you in 2020. Note: The Automotive Service Association has announced that the 8th Annual MSO Symposium and Technology Telematics Forum (TTF), which would ordinarily be held in conjunction with the NACE Show, will instead be held in 2019 in conjunction with the Collision Industry Conference in Indianapolis, Ind., July 24–25, 2019.

AkzoNobel Becomes ICAR Sustaining Partner

AkzoNobel is one of the first paint suppliers to become an I-CAR® Sustaining Partner™. “Technology is playing a bigger role in our industry, and that means we need welltrained technicians who can deliver safer, higher-quality repairs,” says Don Shearer, AkzoNobel Technical Service Manager, Automotive Coatings. “Through our pathyielding partnership with I-CAR, we are supercharging the successful education of our present and future collision repair technicians. At the end of the day, it’s about helping create a better tomorrow.” “The Sustaining Partner program was created to help control the cost of training for collision repair technicians and career and technical school students” says Nick Notte, I-CAR’s Senior Vice President, Sales. “It makes I-CAR training more readily available and affordable for collision repairers and schools. We appreciate AkzoNobel’s support for this important initiative, and look forward to a long and mutually beneficial relationship.”

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Associations Assembling with Chasidy Rae Sisk

Automotive Women’s Alliance Foundation Hosts Holiday Celebration On Dec. 5, the Automotive Women’s Alliance Foundation (AWAF) hosted its 2018 Holiday Event at the prestigious Whitney Mansion in Detroit, MI, one of the city’s most beautiful and historic venues. Sherry Muir Irwin, member of AWAF’s board of directors, noted, “It was a wonderful evening celebrating the culmination of another successful year for AWAF! The Whitney, all decked out in its holiday finery, provided a festive backdrop for AWAF’s sold-out signature year-end event. The evening began with the 125+ AWAF members and their guests enjoying delicious hors d’oeuvres and holiday cheer while mingling with fellow automotive professionals and friends. It was a wonderful conclusion to a great year!” The evening’s featured speaker was Joe Hinrichs, executive vice president and president of global operations for Ford Motor Company. He shared some of the insights and wisdom he’s gained during his extensive automotive industry career. “With one of his daughters now pursuing an automotive career, he has gained a new appreciation for the challenges faced by women in the industry and encourages us to speak up and use challenging situations as teachable moments,” Irwin recounted. “He’s told his daughter that ‘you either teach or tolerate’ when faced with negative circumstances and behavior—and encouraged us all to be teachers!” Next, Jane Bishop, co-chair of AWAF’s Scholarship Committee, announced the five deserving recipients of AWAF’s final 2018 scholarships. All of the recipients are pursuing undergraduate degrees in preparation for automotive industry careers. The scholarships were sponsored by Deloitte, Magna International, Adient, AWAF and the Elder Automotive Group’s scholarship in memory of Irma Elder, who was the matriarch of the Elder Automotive Group, one of the first female auto dealers, and a long-time supporter of AWAF.

Irwin noted, “With these five scholarships, AWAF is nearing the half-a-million-dollar mark in scholarships awarded since 2001.”

popular signature events, attendees of the 2018 Holiday Event enjoyed the camaraderie of fellow industry professionals and friends while ush-

AWAF members celebrate another successful year during the group’s annual Holiday Event in December

AWAF’s outgoing president, Linda Taliaferro, then announced the association’s 2019 board of directors, which included incoming President Susan Rokosz of Ford Motor Company, who has served on AWAF’s board since 2012. Taliaferro also announced the creation of a new VP of STEM office position as part of AWAF’s increased focus on STEM, a role that will be filled by Cathy Koch of K-Tec Systems, Inc. Irwin then expressed her appreciation for Taliaferro and the last two years she served as president. “Linda was a truly impactful, influential and inspirational leader for AWAF, and the organization is better for having had her at the helm!” Irwin stated. “The evening’s program concluded with a word of thanks to our annual sponsors: Faurecia, Magna, Deloitte, Leggett & Platt Automotive Group, Envisics, HELLA, Irvin Automotive and PlanteMoran, as well as the evening’s event sponsors Epitec and MB Jewelry. Appreciation was also expressed to the board of directors, the executive advisory council, committee members and the membership at large for all their contributions over the past year. And a special word of thanks to RoseAnn Nicolai and her team at Nicolai Events & Communication for their administrative support throughout the year—we couldn’t do all that we do without them! “Always one of AWAF’s most

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

ering in the holiday season! To add to the festivities, attendees had the opportunity to participate in a silent auction with the chance to be the winning bidder for a one-on-one lunch with two female Ford senior

executives or a beautiful necklace, courtesy of MB Jewelry Design & Mfg., Bloomfield Township, MI. “These events provide our members with opportunities to cultivate both professional and personal relationships, which are critical support mechanisms as one builds and navigates one’s career in the auto industry—or any industry, for that matter. As part of our value proposition, events provide educational and professional development opportunities as well.” On Jan. 28, AWAF will kick off 2019 with a post-NAIAS mixer at the Black Lotus in Clawson, MI. On Feb. 6, members can attend a Fireside Chat with Julie Martin, vice president of sales and marketing for HELLA USA.

For more information on AWAF, visit awafoundation.org.

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Genuine INFINITI Parts Call any of these following dealers. NISSAN

S. CALIFORNIA

CARSON NISSAN CARSON

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tilopez@dtlamotors.com Ask for Jose

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888-444-1355 (562) 334-1195 Fax Ask for Nick or Carlos M-F 7-6, Sat. 7-5

wholesaleparts@downeynissan.com www.downeynissan.com

FIRST NISSAN SIMI VALLEY

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MOSSY NISSAN NATIONAL CITY NATIONAL CITY

ESCONDIDO

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escnissanparts@mossy.com

(925) 674-1690 Fax

M-F 7-6

CONCORD

COLMA

650-488-2877

John.Estrada@autocomnissan.com

NISSAN SUNNYVALE

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henryh@mossy.com

NISSAN OF BAKERSFIELD BAKERSFIELD

888-402-6915 (661) 835-0389 Fax M-F 7-6, Sat. 8-5

www.nissanofbakersfield.com

NISSAN OF MISSION HILLS MISSION HILLS

818-408-5870 (818) 365-4905 Fax M-F 7-7; Sat. 7-5

818-374-4421

MOSSY NISSAN OF ESCONDIDO

NISSAN SERRAMONTE

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MONTCLAIR

(909) 625-4087 Fax Ask for Rita or Steve Large inventory available

AUTOCOM NISSAN OF CONCORD

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M-F 7-6, Sat. 7:30-5

800-243-5575

N. CALIFORNIA

800-300-7251

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METRO NISSAN INFINITI OF MONTCLAIR

Genuine Nissan and INFINITI OEM Wholesale Parts are Superbly Crafted to Strict Quality Standards.

NISSAN OF VAN NUYS VAN NUYS

(818) 787-8400 (818) 908-9520 Fax M-F 7-7, Sat. 7-6

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TEMECULA NISSAN TEMECULA

951-972-8430 (951) 972-8396 Fax

M-F 7-6, Sat. 7-6, Sun. 8-5

wholesaleparts@temeculanissan.com

M-F 7-6, Sat. 8-4:30

FUTURE NISSAN

916-677-5251 (916) 786-0743 Fax M-Sat. 7:30-6

cbohanna@futurenissan.com www.futurenissanparts.com

(650) 994-2459 Fax SUNNYVALE

866-632-5673 M-F 8-5:30

sunnyvalenissanparts@dgdg.com

NISSAN INFINITI OF SAN FRANCISCO SAN FRANCISCO

415-500-8064 (415) 500-8048 Fax M-F 7-6

wholesale@nissaninfinitisf.com

INFINITI

S. CALIFORNIA

INFINITI OF BAKERSFIELD BAKERSFIELD

661-617-2033

N. CALIFORNIA

NIELLO INFINITI PARTS CENTER CONCORD

(661) 617-2034 Fax

833-821-4200

INFINITI OF VAN NUYS

infinitiparts@niello.com

M-F 7:30-6, Sat. 9-1

parts@infinitiofbakersfield.com VAN NUYS

818-374-4493

(925) 676-9592 (925) 671-7839 Fax M-F 7-5; Sat. 8-5

(818) 787-8400 (818) 809-2727 Fax M-F 7-7, Sat. 7-6

www.infinitiofvannuys.com

autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

Kia.com

NO. CALIFORNIA Concord Kia

Concord (888) 811-3058

(925) 685-2952 Fax M-F 8am - 5:30pm Sat 9am - 1pm

Kia Marin

Novato (415) 897-8686

(415) 898-9860 Fax M-F 7:30am - 5:30pm

Michael Steadâ€™s Hilltop Kia Richmond (510) 758-2227

(510) 758-8853 Fax

Momentum Kia Vallejo (707) 638-1825

(707) 554-2637 Fax M-F 8am - 5pm Sat 8am - 3pm bvahl@momentumautogroup.com

SO. CALIFORNIA AllStar Kia

From headlights to tail lights, bumpers to fenders and hoods, there is no substitute for genuine. The only way to assure that you are getting Genuine Kia parts, backed by the Kia Warranty, is to order them from your local Authorized Kia Dealer. Contact your local Kia dealer for assistance and delivery of the parts you need.

San Bernardino (909) 763-4755

(909) 763-4744 Fax M-F 8am - 6pm Sat 8am - 2pm parts@allstarkia.net www.allstarkia.net

Car Pros Kia Glendale Glendale (818) 745-1103

*Genuine Kia replacement parts (except battery) sold by Authorized Kia Dealer under warranty are covered for the greater of (1) the duration of the New Vehicle Limited Warranty or (2) the first 12 months from the date of installation or 12,000 miles, whichever comes first. Labor charges not included when not installed by an Authorized Kia Dealer. Warranty is limited. See Kiaâ€™s Replacement Parts and Accessories Limited Warranty for further details.

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

(818) 244-0017 Fax M-F 7am - 6pm duncan@carpros.com

Contact These Dealers For Your Kia Genuine Parts Needs Car Pros Kia Huntington Beach Huntington Beach (714) 274-6178

(714) 847-4410 Fax M-F 7am - 6pm Sat 8am - 4pm jasonr@carpros.com

Citrus Kia Ontario

(800) 583-7042 (909) 390-0948

(909) 390-0982 Fax scunningham@citrusmotors.com www.citrusmotors.com M-Sat 7am - 6pm Free Local Delivery Ask for Ike, Jimbo, Chris, Juan, Sean, Jeff Se Habla Español

First Kia

Simi Valley (805) 306-1077

(805) 306-1085 Fax Free Local Delivery M-F 7am - 6pm Sat 8am - 5pm Se Habla Español Ask for Germán

Kearny Pearson Kia San Diego (800) 635-6669 (858) 560-5033

(858) 560-9648 Fax Largest wholesaler in San Diego with 17 delivery trucks

Kia of Alhambra

Kia of Carson Carson (310) 221-9101

(310) 507-8595 Fax M-Sat 7am - 7pm Sun 8am - 5pm www.KiaofCarson.com

Kia of Garden Grove Garden Grove (888) 992-1850

(714) 823-4929 Fax M-F 7:30am - 6pm Sat 7:30am - 4pm pelledge@ggkia.com www.ggkia.com

Kia of Irvine

Irvine (855) 847-3592

(949) 777-2342 Fax

NEVADA

WASHINGTON

Jim Marsh Kia

Car Pros Kia Renton

(702) 946-6084 Fax M-F 8am - 6pm Sat 8am - 2pm johnd@jimmarshauto.com

(425) 793-3889 Fax M-F 7am - 7pm Sat 8am - 5pm jgaeir@carpros.com

Las Vegas (877) 274-3820

Renton (425) 204-6635

OREGON

Lee Johnson Kia

Portland (971) 271-8581

(425) 284-1790 Fax M-F 7am - 5:30pm Sat 7am - 5pm tthompson@leejohnson.com

Kia of Portland (503) 542-0413 Fax M-F 7:30am - 5:30pm Sat 8am - 4pm rsnyder@kiaofportland.com www.kiaofportland.com

Kirkland (425) 823-0188

Kirby Kia of Ventura

Ventura (805) 656-9212

(805) 644-0517 Fax M-F 7am - 6pm vzavala@kirbyautogroup.com www.kiaofventura.com

North County Kia Escondido (760) 945-9939

(866) 888-3074 Fax parts@autogrp.com www.northcountykia.com M-F 7am - 6pm In San Diego Over 10 Years

Precise fit and finish, easy installation and a limited warranty direct from Kia — all genuine advantages of Genuine Kia Parts. Your local Kia retailer has all the parts you need.

Alhambra (626) 289-7803

(626) 289-8807 Fax kip@kiaofalhambra.com

autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

Mike Anderson Presents ‘Using the Subaru Technical Information System – Part 2’ by Chasidy Rae Sisk

On Thursday, December 13, Mike Anderson of Collision Advice presented another webinar in his “Learn to Research, Research to Learn” series, during which he explored “Using the Subaru Technical Information System (STIS) – Part 2,” which focused on how to use the Subaru website to ensure safe and proper repairs. He was joined by John Lancaster, National Wholesale Parts Manager for Subaru of America, as well as Subaru technical service representative J. J. Marino and Rick Miller of Wadsworth International. The webinar was created by Collision Advice in collaboration with Subaru. After reading the antitrust guidelines, Anderson reiterated that he decided to host these webinars because the results of his annual “Who Pays for What?” surveys, conducted in conjunction with the Crash Network, led him to determine that shops are not researching OEM repair procedures 100 percent of the time as they should be. As a result of this finding,

Collision Advice has been hosting monthly webinars, each one focusing on a different OEM, to raise awareness of the resources each OEM offers to research repair procedures. Anderson plans to guide attendees on a step-by-step tour of each specific OEM’s website and advise on how to improve search results. He

ation of how to access Subaru’s paid site and conduct a search at techinfo .subaru.com. Anderson then proceeded to explore the tabs across the top of the page, explaining that the index allows users to search for particular section titles in the service manual. He demonstrated this by exploring the

will also demonstrate how to research some common procedures needed by collision repairers, explore the differences between an OEM scan tool and aftermarket scan tool and investigate OEM parts information and support tools. The second part of the Subaru webinar began with a recap of the first part, including a reminder that Subaru’s position statements can be found on oem1stop.com and a reiter-

battery section to reveal what procedures repairers must do when removing a battery and enumerating the many systems that will not work after a battery is removed if the proper procedures are not adhered to. He reiterated the importance of searching battery requirements several times during the remainder of the webinar, pointing out “It’s not just about scanning. It’s also about researching every time we disconnect a battery.”

“It’s important that we use OEM parts even on something as simple as a wiper blade because using an aftermarket wiper blade could cause this Eyesight feature not to work properly.” — Mike Anderson

Moving to the DTC search tab, he demonstrated how to search the service manual for pages relating to a specific DTC. “I really love this feature because it gives you the ability to research DTCs,” Anderson noted. “I won’t tell you what you should charge for scanning, but I do believe you should separate your diagnostic time from your scanning time because what’s really time-consuming is the amount of time it takes to research the DTCs.” Anderson’s demonstrated showed the detailed diagrams available in the service manual, and he also explained how users can print any subsection or chapter. Anderson concluded with the Help tab which provides a walkthrough on how to navigate and interpret the STIS website. Looking at the gray tabs across the top, Anderson opened Service Manual, stating, “This is going to give you some repair precautions that you may need to know as a collision repairer – either as a technician or as an estimator. I’ve found that reviewing this anytime you go into STIS for

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FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

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that specific make and model is an absolute must.” Scrolling through the tab, Anderson pointed out several interesting tidbits such as the need to allow the vehicle to get to operating temperature prior to performing a diagnostic scan, the necessity of ensuring adhesives used are products approved by Subaru, and reiterating the importance of researching what to do after disconnecting a battery. He added, “Another thing we really liked was the pre-delivery inspection procedure. These are the items a dealership must check before selling a new vehicle, and I found these items to be a great addition to our quality control checklist.” Under Service Manual – Suspension, Anderson pointed out a caution that prohibits reuse of valves and screws, meaning that a new valve stem is required each time a new wheel is put on. In the Steering section of the Service Manual, he read the specific operation required for proper performance, adding, “I encourage you to go back and navigate STIS. Repetition is key.” While exploring air bag and seat

belt systems, Anderson noted that mounting bolts and nuts should not be reused and explored the listed parts that need to be removed before performing certain procedures as well as the “comprehensive list of systems that need to be checked and parts that need to be replaced if the vehicle is in a collision, even a slight collision.” “We need to make sure we do these things,” Anderson continued. “I understand that sometimes the insurance companies don’t want to pay for some items, but it starts with us. We must accept personal responsibility, and if you’re not educated, how can we blame the insurer for that? There are a lot of things we need to make sure we’re researching every time we work on a vehicle.” Under the Diagnostics tab, Anderson demonstrated where information can be found about the occupant detection system, noting that the manual instructs the user to connect the Subaru Select monitor. “The only way we can verify the safe and proper repair is to use the approved scan tool,” Anderson emphasized. “STIS walks us through the questions we need to ask ourselves. It’s a very interactive

website and takes me to the next screen based on the options I select, directing me to things that I may need to ask the customer.” While looking at the Eyesight feature, Anderson showed where the manual insists only a Subaru windshield wiper blade can be used on the vehicle. “It’s important that we use OEM parts even on something as simple as a wiper blade because using an aftermarket wiper blade could cause this Eyesight feature not to work properly.” Anderson also explained that the BRZ service manual looks different than any manuals for other Subaru vehicles because the BRZ was a joint project between Subaru and Toyota. He briefly navigated through the BRZ manual and explored some details and variances with this model. Moving onto the Owner’s Manual where he explored some requirements about seatbelts and airbags as well as a warning against attaching anything to the windshield, Anderson noted, “During all the OEM webinars we’ve done, one of the things I’ve learned is the value of reviewing the owner’s manual with the ve-

hicle owner when they drop off the car. Reviewing the owner’s manual is a great way to earn that vehicle owner’s trust.” As Anderson finished reading from the Eyesight document, Marino interrupted to share, “With the Eyesight camera lenses, if anything gets on those lenses, even if it’s a fingerprint, they cannot be cleaned & the camera assembly must be replaced.” Anderson then showed the Tech Tips Newsletter, found under “What’s New” as well as the advanced search tab, which is published monthly and available as a PDF download. He encouraged shop owners to review this with their technicians and shared some interesting tips he found in recent editions. If a user cannot find what they are looking for, the last page of each newsletter contains a form that can be used to contact Subaru to request clarity. In Summary, Anderson responded to questions submitted on the first webinar before accepting questions from the day’s attendees. This webinar is available on the Collision Advice website and YouTube channel.

CHEVROLET BUICK GMC

ANCHORAGE FAIRBANKS WASILLA

• Large Inventory Inven of Wholesale Parts • Knowledge Knowledgeable & Helpful Staff • Competitive Pricing and Discounts • 35+ Years oof GM Parts Experience Hours: Mon-Fri Mo 7am-6pm; Sat 8am-5pm Chevrolet of Anchorage

Chevrolet of Wasilla

9100 Old Seward Highway Anchorage, AK 99515

3700 E. Parks Highway Wasilla, AK 99564

PARTS 907-365-8677 7

PARTS 907-352-6596

Chevrolet Buick GMC of Fairbanks

3300 S. Cushman St. Fairbanks, AK 99701

PARTS 907-374-5234

autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

General Motors Collision Repair Network Starts off With Strong Response from Industry by Stacey Phillips

Since launching the General Motor’s Collision Repair Network in August 2018, Kris Mayer, general director, wholesale channel of GM’s Customer Care and Aftersales, said the company has received a great response from the program. Over 1,300 dealers and collision repair facilities have already started the enrollment process, and more are signing up every day. When the company first set out to establish the Collision Repair Network, Mayer said GM wanted to ensure it offered repair facilities all the guidance needed to repair a vehicle properly, and customers could trust in the safety and integrity of the repair.

Prior OEM programs have put a strong emphasis on making sure collision repair facilities had the proper tools and training. With the introduction of the Collision Repair Network, GM has forged ahead by adding standards for pre- and post-scanning, repair procedures and ADAS calibration. In addition, the company provides positioning statements and recall notifications to keep repair facilities informed. “It’s important for a repair facility to have the right tools and training but that doesn’t necessarily mean that the vehicle has been repaired properly,” said Mayer. “We really want to ensure that repair facilities are following the correct repair procedures.” Mayer said it can often take a body technician several hours of research during a major repair, which can be a barrier to getting the job done appropriately and in a timely fashion. As a result, GM realized the importance of providing repair facilities easy access to repair procedures to allow for a more streamlined collision repair process. “We needed to work with a company that was going to capture the Key Performance Indicators (KPIs) and make sure those procedures were being done,” said Mayer. “Using an information provider made sense to us.” As a result, Mitchell was chosen 58

to be the administrator of the GM Collision Repair Network. “A little over two years ago, Mitchell realized that the biggest challenge facing the industry was the increasing vehicle complexity. We made a decision to completely rearchitect our product suite focusing on enabling proper and safe repairs,” said Jack Rozint, Mitchell’s vice president, sales & service, repair. “To be recognized by General Motors and be chosen to administer their collision repair network was truly gratifying and we’re really proud to be associated with General Motors and this program.” Rozint said the cultures of both companies are very closely aligned and the program is designed primarily around two major themes: proper and safe repairs and a positive experience for GM customers. “In order to deliver happy customers requires efficiency, which means shorter cycle times and efficient processes,” he said. “Those efficient processes also have good results for other industry stakeholders such as insurance carriers.” Participants will be able to manage all aspects of the repair through Mitchell Connect, the company’s cloud communication program. This includes pre- and post-repair diagnostic scans; utilizing Mitchell Cloud Estimating, which creates the estimates; the ability to reference GM repair procedures through the repair process; as well as perform qualitycontrol checks. When technicians are working on various components or sections of the vehicle, Rozint said Mitchell’s Integrated Repair Procedures communicates the specific repair procedures that apply to that component to the user right at their fingertips. The repair procedures can also be saved, printed and sent through email. Mitchell’s Freedom Platform enables this integrated repair procedure access at all stages of the job, beginning with teardown, throughout the repair and recalibration processes, and during the quality checks. “Mitchell’s software platform and expertise will help us make a difference for GM drivers and help the entire repair industry satisfy customers and run profitable, efficient

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

enterprises,” said Debbie Day, executive vice president and general manager, Auto Physical Damage Solutions at Mitchell. Herb’s Paint & Body Shops, with eight locations in Texas, recently enrolled in the General Motor’s Collision Repair Network. “As newer vehicles and technology come out, to be able to be trained and informed on how to handle those

The company was also already using Mitchell products. “We have a good relationship with Mitchell and the transition to Mitchell Cloud Estimating was pretty seamless,” he added. “Repairers who partner with General Motors in this program are going to gain assistance and direction with the delivery of proper and safe repairs and give customers an

technologies is extremely important,” said Robert Walne, president and COO of the company. “We felt the GM program would give us the ability to do that and perform proper and safe repairs.” Walne said it was relatively easy to become part of the GM Collision Repair Network. “For us, it wasn’t a huge undertaking because most of our locations are pretty advanced from a tool perspective as well as training,” he said.

extra level of security,” said Rozint. “I believe the most important thing is the sense of consumer confidence that will come out of this program that benefits everybody involved, especially the collision repairer.” Dealers and independent collision repair facilities interested in the GM Collision Repair Network can email GMCollisonRepairNetwork@GM .com or visit GenuineGMParts.com to enroll and learn more (click on the “For Professionals” tab).

“We really want to ensure that repair facilities are following the correct repair procedures.” — Kris Mayer

The RIGHT

COLLISION PARTS

For Your Collision Job. Visit these Genuine Hyundai Parts Dealers:

So. California

No. California

KEARNY MESA HYUNDAI

HYUNDAI SERRAMONTE

800-469-9731

650-488-2877

San Diego 4797 Convoy St.

858-300-3331 Fax

Mon-Fri 7am - 6pm; Sat 8am - 5pm cguth@hyundaisubaru.com www.kearnymesahyundai.com

Colma 1500 Serramonte Blvd.

650-994-2459 Fax Mon-Fri 7am - 6pm

THESE DEALERS ARE GENUINE FORD PARTS WHOLESALE SPECIALISTS

Caruso Ford Lincoln LONG BEACH

800-353-7224 562-492-9452 Fax www.carusoford.com

parts@carusofordlincoln.com

Citrus Ford ONTARIO

909-390-0948 909-390-0982 Fax

SO. CALIFORNIA

Fritts Ford RIVERSIDE

951-343-7556 951-687-3044 Fax wsparts@frittsford.com

Galpin Ford

VAN NUYS

818-778-2005 818-778-2090 Fax

Kearny Pearson scunningham@citrusmotors.com Ford Colley Ford GLENDORA

Wholesale Parts

800-253-3807 909-592-8577 Fax E-mail your orders parts@colleyford.com

Fairview Ford

SAN BERNARDINO

Wholesale Direct

909-386-0220 909-889-1741 Fax

SAN DIEGO

858-560-5033 800-635-6669 858-560-9648 Fax

Largest wholesaler in San Diego with 17 delivery trucks.

Palm Springs Motors CATHEDRAL CITY

760-328-7149 760-328-5092 Fax

Penske Ford LA MESA

800-648-7431 619-668-7765 619-668-7719 Fax

Tuttle-Click Ford Lincoln Mercury IRVINE

949-472-5230 949-472-0327 Fax

Vista Ford Lincoln WOODLAND HILLS

818-710-9594 818-251-4339 Fax

www.vistaford.com Rabi_kadi@vistaauto.com

Worthington Ford LONG BEACH

800-622-4225 562-421-4033 562-496-1871 Fax

tonyc@calworthington.com

NO. CALIFORNIA

Livermore Ford Lincoln LIVERMORE

925-456-1200 925-449-4418 Fax

Serramonte Ford COLMA

Wholesale Parts Dept. Phone

650-301-7190

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650-301-7087

www.serramonteford.com

Sunnyvale Ford Lincoln Mercury

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Gaudin Ford LAS VEGAS

702-796-2762 702-792-5370 Fax WASHINGTON

Bowen Scarff Ford Lincoln KENT

800-942-0712 253-852-3340 253-813-5050 Fax M-F 8-5:30

parts@bowenscarff.com

SUNNYVALE

408-738-1530 408-738-3125 Fax

www.fordautodirect.com.com NEVADA

Friendly Ford LAS VEGAS

702-877-6546 702-870-6280 Fax

autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

Ford Recalls 953,000 Vehicles for Airbag Flying Shrapnel Threat by Phoebe Wall Howard, Detroit Free Press

Ford Motor Co. issued a recall on Jan. 4 of nearly 1 million vehicles in North America with a risk of flying shrapnel caused by exploding Takata airbag inflators. The latest action involves more than 953,000 Ford vehicles worldwide—including 782,384 in the U.S. and its territories and 149,652 in Canada. Seven Ford and Lincoln vehicles are named in the recall: • • • • • • •

Ford Edge, 2010, built in Oakville Lincoln MKX, 2010 built in Oakville Ford Ranger, 2010 and 2011 built in the Twin Cities Ford Fusion, 2010 to 2012 built in the Hermosillo Assembly Plant Lincoln MKZ, 2010 to 2012 built in the Hermosillo Mercury Milan, 2010 and 2011 built in the Hermosillo Ford Mustang, 2010 to 2014 built in Flat Rock

Ford urges consumers to get their vehicles to dealers as soon as

monium nitrate to create an explosion that causes inflation. But heat and humidity can damage the integrity of the system and cause it to deteriorate and explode with too much force, blowing apart a metal canister designed to contain the explosion. Unrelated to Takata airbags, Ford also issued a safety recall on certain 2019 Ford Ecosport vehicles because the front seats haven’t been welded properly and may come loose. “A seat back with an inadequate weld may have reThe Flat Rock Assembly Plant stands with the ruby red duced strength ... potentially 2014 Mustang convertible that was the 1 millionth increasing the risk of injury Ford Mustang built at the Flat Rock assembly after in a crash,” Ford said in its an event marking the milestone in April 2013. Credit: release. Ryan Garza, Detroit Free Press Ford is not aware of any Ford said it has no reports of in- accidents or injuries resulting from juries involving these vehicles. But this condition. The recall impacts about 87 at least 23 people worldwide have been killed in incidents involving EcoSport vehicles in North America, Takata airbags, which led to one of including 63 in the U.S. and its territhe largest recalls in history involv- tories and 13 in Canada. Ford dealers will replace front seats on affected ing multiple carmakers. The Takata airbags, which are vehicles with new seats. We thank Detroit Free Press for intended to prevent or reduce injury upon impact, use the chemical am- reprint permission. possible for replacement. They will replace the passenger frontal airbag inflator or module at no cost.

Collision Works Utilizes Symach’s FixLine Process

Symach announced that the company has installed three new body shops for Collision Works of Oklahoma (CWO)—two in Tulsa and one in Oklahoma City—utilizing Symach’s FixLine process. The three locations are currently using Symach’s FixLine system, Drytronic technology and the Symach Paint Application Process (SPAP). Jake Nossaman, owner of the shops, said the company expects that the modern equipment and process will enable the repair facilities to cycle vehicles through the shops faster, reach their financial goals much easier and improve CSI scores. “We helped Collision Works customize their new locations using the FixLine Process, which will enable the state-of-the-art collision centers to optimize repair times and reduce labor costs by as much as four or five hours for each repair,” said Osvaldo Bergaglio, CEO of Symach.

www.autobodynews.com

Tesla Owners Go Behind-the-Scenes at a Certified Tesla Repair Center by Kay Talley and EVANNEX for InsideEVs

Attendees from Denver Tesla Club experienced a unique opportunity to see damaged cars up close, personal and naked at Stuttgart Auto Body, a Tesla collision repair facility in Denver, CO.

They visited to gain insight into the structure of Tesla’s vehicles— and what can possibly go wrong while out on the road. Stuttgart is certified by Porsche, Mercedes and Tesla. The main focus of the Englewood facility is the lat60

ter. State Farm expert Austin Domsch was also on hand to explain coverage of the incident. Accidents happen. How they are taken care of is an eye-opener into the vehicle and the overall construction of Models S, X and 3. The crumple zone up front is a testament to its lifesaving abilities. Tesla is possibly the most complicated of vehicles to work on, but Stuttgart has made a massive investment in all Tesla-approved equipment necessary and continues to grow with the company to keep up with the electric carmaker’s continually evolving technology. Tesla Fremont handson trained technicians are passionate about returning a car to an owner in pre-accident condition and use only Tesla OEM and diagnostics. We thank InsideEVs for reprint permission.

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

Genuine Porsche Parts...Only The Best. The Dealers Below are Genuine Porsche Parts Distributors.

CALIFORNIA

IDAHO

Circle Porsche

Porsche of Boise

562-494-1911

800-621-1775

parts@circleporsche.com www.circleporsche.com

partspc@lylepearson.com www.lylepearson.com

Long Beach

562-343-5385 Fax M-F 8am - 6pm; Sat 9am - 4pm

Porsche Fresno Fresno

559-860-4000

559-476-1734 Fax M-F 8am - 5pm; Sat 8am - 1pm www.porschefresno.com

Boise

208-672-3494 Fax M-F 7:30am - 6pm

Continued from Page 38

Elite Webinar

market for a loan, you want to think about all these things and be able to present a package to the lender that addresses all of these items and makes it easy for the lender to get behind you and see the same opportunity that you’re seeing.” After providing a brief description of the lenders that Supplement Advisory can connect shops with, Mewes defined the different types of small/medium business financing. Merchant cash advances (MCA) are similar to cash advances but are secured by the credit card receivables that the business generates. They also charge very high interest rates and often require daily repayments. An unsecured loan is a line of credit based on cash flow. They charge high interest rates, but assets are not used as leverage. An asset-backed loan uses equipment, real estate or secured working capital as collateral. A commercial loan comes in many varieties, and it’s critical to understand the different options. M&A

Financing includes seller finance and vendor finance, which may include prebates and investments, but there are also lenders that will finance acquisitions. Mewes then proceeded into a hypothetical prebate analysis in which he determined the cost of a prebate compared to a discount, considering the opportunity cost of the lost discount and the impact of taxation. He noted, “Prebates become very expensive money, and there are a lot of alternatives out there. There are times when prebates make perfect sense, but it also makes sense to understand your alternatives and pick the solution that works best for you.” Alternatives Mewes mentioned included equipment loans, lines of credit, M&A loans, unsecured working capital, AR factoring and/or ARbacked loans, SBA loans, real estate loans and sale leasebacks. When Mewes opened up the webinar to questions, he was asked if consolidation has opened the door for more independents. Mewes responded, “What consolidation has done is provide ‘role

models’ for potential investors because it allows you to demonstrate the viability of the industry when going for a loan. Finance folks are risk-averse, so having a case study is good for obtaining funding when presented appropriately.” Mewes graciously offered a free 15-minute, one-on-one consultation to webinar attendees who were interested in signing up. For more information about Supplement Advisory, visit supp-co.com /growth.

Replays of this webinar and others are available for free by signing up at www.elitebodyshopsolutions.com /academy and clicking on the “Join the Elite Webinar Series” button.

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Axalta, Plenham Form 3-Year Global Alliance

Axalta and Plenham Ltd announced a multi-year global partnership to help the worldwide collision repair industry share ideas for business improvement, drive best practices in innovation, and establish new processes and know-how through dynamic media and social interactions. “We are delighted to establish a long-term agreement with Axalta,” commented Jason Moseley, Plenham CEO. “Having forged a strong bond over the last year its clear we have a joint passion for improving the collision industry based on shared ethics and beliefs in ‘doing the right thing.’” Jim Muse, Axalta’s Vice President of Global Refinish Sales, said, “I am confident that this new alliance between Plenham and Axalta will significantly benefit our customers and the overall global collision repair industry.”

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autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

New Car Technology May Lead to Sticker Shock at Auto Body Repair Shops by David Patch, Blade Staff Writer

Back-up cameras and lane-departure warnings may help people drive more safely, but they also drive up newer vehicles’ repair bills, the American Automobile Association reported in a recent study. And a driver need not have been in a crash to face a four-figure repair bill. Even something as innocuous as an unfortunately placed windshield chip can cost big money if it affects the performance of an on-board safety system, the auto club reported. “It’s just unbelievable,” said Steve Grabke, owner of Steve Grabke’s Body Shop on Angola Road in Holland, OH, about the complexity of repairing vehicles equipped with advanced driver-assistance systems. Grabke said he has spent thousands of dollars training his staff to work on such vehicles, and replacing parts is only one facet of such repairs. “You have to set up targets for calibration, and every vehicle is different,” said Gary Todd, the manager at Grabke’s shop. And repair of some systems must be referred to dealer shops because it involves technology that is proprietary to the vehicle manufacturers. Todd said Grabke’s has lost about 10 percent of its work to such situations. “It is not unusual for windshields to get chipped or cracked, especially for drivers who commute on a daily basis,” Bob Kazmierczak, AAA’s director of automotive services, said in the report. “This may be an eyesore, but when it falls in the line of sight of a camera or the driver, it becomes a safety issue that needs immediate attention by a facility qualified to work on these systems,” the report said. Cameras and radar and ultrasonic sensors built into bumpers, body panels and even side mirrors are also vulnerable. “While most drivers may not find themselves in a collision, these parts can easily be damaged when pulling out of a garage or bumping into objects,” the auto club’s report said. When a customer brings a vehicle to an independent repair shop and it has to refer some of the work to a 62

dealer shop, that becomes a “sublet repair” that eats up most, if not all, of the profit, Kazmierczak said in the study.

hook for their policies’ deductibles. “More and more cars are coming with other stuff on the windows besides the rear-view mirror,”

Cortney Mann repairs and puts on a new door on a 2014 Cadillac XTS at Steve Grabke’s Body Shop on Dec. 19, 2018. Credit: The Blade, Amy E. Voigt

And when a particular repair is referred to a dealer, Todd said, “then they [customers] feel that you’re telling them you can’t fix their car.” Rick Lawrence, a co-manager at Smitty’s Automotive on Jackman Road, said calibration is the biggest obstacle for independent repair shops. “I can’t even fix most of these now because of the reprogramming requirements,” Lawrence said. “You can fix it, but you can’t make it work.” Vehicle owners should verify whether any repair facility can properly repair damaged systems and request proof of work once it’s complete, AAA said. “As technology continues to evolve, drivers need to be better educated and more aware of their vehicles’ capabilities,” Kazmierczak said. “This includes understanding how the vehicle systems work as well as how much repairs may cost if damaged.” With 1 in 3 Americans unable to afford even $500 in unexpected repairs, AAA strongly urges consumers to consider the potential repair costs of these advanced systems as well as to perform an insurance policy review, the auto club said. Les Breininger, the owner of Sylvania Auto Restyling & Glass, said insurance so far has covered all of his shop’s customers’ technologyrelated windshield replacements, but his customers are often still on the

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

Breininger said. Manufacturers specify that any cameras or sensors associated with replacement glass need to be recalibrated, at a cost typically ranging be-

tween $150 and $230, Breininger said, and windshields have become significantly more expensive than they used to be. In an article published during the summer, Consumer Reports also noted that road grime or winter’s ice and snow also can interfere with navigation systems’ performance, especially devices that rely on cameras. While auto manufacturers are developing “self-cleaning” features for those systems, they are far from universal. And like improper calibration, dirt, frost or other interference may render safety systems inoperative or inaccurate. AAA based its research on repair costs for “three top-selling models in popular categories,” including a small sport utility vehicle, a medium sedan, and a full-size pickup truck. It did not disclose the models, but it did identify the manufacturers as Ford, Toyota and Nissan. We thank The Blade for reprint permission.

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autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

ALLDATA Showcases Diagnostic Scan Tool and Collision Repair Product by Stacey Phillips

Having direct access to OEM repair information has many benefits for those in the collision repair industry. Not only does it ensure a vehicle is repaired properly for the customer, but it can also potentially limit liability for a body shop and the insurance company, according to Satwinder Mangat, president of ALLDATA, an AutoZone Company. Established in 1986, ALLDATA provides OEM service and repair information to more than 400,000 technicians in 115,000 repair shops worldwide. Over the years, the company has expanded its product line to include factory-correct diagnostic, repair and collision information, business tools and support services for the automotive service and collision industries. During the 2018 SEMA Show in Las Vegas, NV, Autobody News sat down with Mangat and the ALLDATA team to learn about one of the company’s newest products, ALLDATA Diagnostics, which was introduced to the market in October 2017. They also shared information about some of the other solutions they offer customers. The ALLDATA Diagnostics scan tool enables shops to turn their Android or Windows 10 tablet into a professional-level scan tool. One of its unique features is the integration of repair information from ALLDATA Repair or ALLDATA Collision within the tool. As a result, shop owners, service writers and technicians can perform pre- and post-scans with exportable reports, and the codes link to ALLDATA’s OEM-direct repair information and procedures. A recent development to ALLDATA Diagnostics this year is QuickScan, which allows technicians to run a full-system vehicle scan report with just one click. “All of this data gives shops the information they need to create detailed estimates the first time,” said Mangat, who has three decades of experience in the software industry and holds six technology patents. “Following OEM procedures helps ensure that vehicles are repaired back to pre-accident OEM condition, a requirement being mandated more and 64

more often by insurers and OEMs.” Rather than having to purchase the device, collision repair shops pay a monthly subscription fee for either ALLDATA Repair or ALLDATA Collision Advantage and receive unlimited pre- and post-scans with no

cludes OEM procedures such as sectioning and structural repairs, handling of new materials and panel removal and replacements. ALLDATA Collision Advantage is a combination of ALLDATA Collision and ALLDATA Estimate Integra-

The ALLDATA team at the 2018 SEMA Show in Las Vegas, NV

per-scan charge. Part of the subscription fee also includes free software and data updates as wells as the Vehicle Connection Interface (VCI) device that attaches to the vehicle’s OBD port. “There are a lot of scan tools on the market,” said Mangat. “Our goal wasn’t to introduce another scan tool. The goal was to start integrating the repair information within the scan tool.” He said the integration makes it very convenient for shops to access OEM information and allows technicians to print out the reports to attach to the claim. This can help limit liability by demonstrating that the repair has been done properly. Also, by prescanning the vehicle with the ALLDATA Diagnostics scan tool, Mangat said shops can provide the necessary documentation to insurance companies to get paid for the work that was completed. “Shops need to get paid for what they do, and we want to make sure they have the documentation to prove it to the customer and also to the insurance company,” said Mangat. “We’re also helping shops be more profitable because they are getting paid for what they are repairing.” ALLDATA Repair provides shops with online OEM repair information with factory-direct diagrams, repair procedures, TSBs and DTCs. Mangat said the product offers upto-date repair information, fast navigation, unedited OEM information and tech-verified repairs. ALLDATA Collision also offers unedited, factory-direct mechanical repair information. In addition, it in-

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

tion. It integrates with the three major estimating systems—Audatex, CCC and Mitchell—and provides line-byline repair information. ALLDATA Collision Advantage can analyze an estimate and then display OEM procedures and alerts, vital repairs and manufacturer positioning statements. Mangat said that identifying the required repairs helps shops

save time as well as improve operations by ensuring the estimates are more accurate. In 2017, the ALLDATA Collision Advantage product received the SEMA New Products Showcase award in the Collision Repair and Refinish category. This year, the company received two innovation awards from PTEN magazine: one for ALLDATA Diagnostics in the Scan Tools category, and one for ALLDATA Collision Advantage in the Computers and Software category. Paul Marshall, senior product manager of ALLDATA Diagnostics, demonstrated a full vehicle scan during the 2018 SEMA Show. www.youtube.com/watch?v=bXb7B 4nnN5U&t=11s Mark Schaben, regional sales manager, collision sales, demonstrated ALLDATA’s Collision Advantage product. www.autobodynews .com/index.php/videos/item/16618-atsema-2018-mark-schaben-demonstrates -alldata-s-collision-advantage .html For more information, visit www .ALLDATA.com.

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ASA Appoints Ray Fisher to Serve as Executive Director

ASA has a new leader. Ray Fisher, executive director of ASA’s Michigan affiliate, was selected to head the Automotive Service Association as its executive director/president. His new position began Jan. 2. Fisher, AMAM, replaces Dan Risley, who left to pursue an opportunity in his home state of Illinois in July. Beth Risch served as ASA’s interim chief operating officer while the ASA Board of Directors conducted an extensive search. “I appreciate the opportunity that the ASA Board of Directors has afforded me, and I look forward to serving the independent automotive repair industry,” Fisher said about his new role leading the 67-year-old organization. “We are at a critical time in our industry where involvement plays an important role. Education and training are no longer an elective but required. Trade schools were forgotten, technology can be overwhelming, and we have an aging workforce that is faced with some difficult decisions. ASA can help lead the industry in addressing those challenges.”

ASA Board Chairman Roy Schnepper, AAM, said the board felt Fisher distinguished himself in several categories that led to his selection.

“The ASA National Board considered many variables in choosing our next executive director,” said Schnepper. “After reviewing approximately 80 resumes, the search committee of Bryan Kelly, Jim Keller, Robert Redding, Darrell Amberson and myself narrowed it down to three well-qualified candidates and presented this to the board of directors at the November board meeting in Las Vegas. Ray’s broad industry background and long association experience as executive director of the ASA-Michigan affiliate made him the best candidate. We welcome Ray to his

Think Genuine Subaru Parts.

new role and look forward to working with him to grow the association through his knowledge and dedication to serving our members.” Fisher, who has served the industry in varied roles, has been president and executive director of ASA-Michigan since 2010. In addition, he served as a body shop manager for more than 20 years, assistant parts manager and an expert witness for a local law firm regarding collision repair and processes. With formal education in business administration, Fisher is an Accredited Automotive Manager (AAM) and an Accredited Master Automotive Manager (AMAM). He has extensive legislative experience, driving key issues for ASA-Michigan members on sales tax issues and shop licensing. His recognition and contributions to the organizations he served have resulted in numerous awards, including the ASA Affiliate of the Year Award in 2018, ASA Legislative Award in 2015 and 2016, as well as the I-CAR Founder’s Award.

The U.S. Department of Transportation (USDOT) recently announced the availability of up to $60 million in federal grant funding for projects that test the safe integration of automated driving systems (ADS). The ADS Demonstration Grants aim to ensure significant data gathering and sharing of project data with USDOT and the public throughout the project in near-real time to inform rulemaking. They also aim to work with innovative state and local governments and private partners to create collaborative environments that harness the collective expertise, ingenuity and knowledge of multiple stakeholders. One of the main focuses of the grants is to test the safe integration of ADS into the nation’s on-road transportation system. Grant applications are due in March 2019 and awardees will be announced in the spring of 2019. Originally published on www .intelligenttransport.com.

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autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

CREF Career Fairs Pair Eligible Graduates With Transportation Industry Positions The new and improved version of the Collision Repair Education Foundation career fairs is going strong. Businesses across the transportation industries, including collision repair, automotive services, heavy duty auto and diesel automotive, are meeting their matches, and new graduates are finding their happily-ever-after careers.

Ricky’s skill grow tremendously over a short period, and he is the embodiment of what this company is about—doing a proper repair while trying to WOW our customers.” What makes these career fairs new and improved isn’t just the addition of hiring industries outside of collision repair, but also CREF’s new

Gerber, and I jumped on it because it was a good learning opportunity.” Each career fair hosts upwards of 400 students and a variety of hiring businesses in the transportation industries. The goal is to pair the brightest new graduates with the most lucrative entry-level positions in the industries.

“I got a young and enthusiastic tech out of [the career fair]” — Aleksei Keller, General Manager at Gerber Collision.

Enrique Dorantes, a Gerber Collision technician, was hired at a CREF career fair last year

“I got a young and enthusiastic tech out of [the career fair]” said Aleksei Keller, general manager at Gerber Collision. “We have seen

partnerships with TechForce Foundation and S/P2. Working with these partners allows CREF to help high school and college students and graduates prepare for the interviews they dream of getting as a result of the fair, facilitate onsite interviews and play a more active role in employment presentations. “I had an idea of what opportunities were available to me in collision repair from school,” said Enrique Dorantes, a Gerber Collision technician hired at a CREF career fair last year. “At the fair, I learned about the technician development program at

GM To Double Resources for Electric, Autonomous Vehicles by Sam McEachern, GM Authority

General Motors recently announced that it is doubling the amount of resources it will allocate toward the development of electric and autonomous vehicles over the next two years. The announcement came as part of the promotion of former head of product at General Motors, Mark Reuss, to president of the company. “Reuss has also been leading the transformation of the company’s global product development workforce and processes to drive world-class levels of engineering in advanced technologies and improve quality and speed to market,” GM said in a prepared statement. “He is doubling the resources allocated to electric and autonomous vehicle programs in the next two years.” GM CEO Mary Barra said Reuss has also “played a critical role in leading the development of the company’s award-winning vehicles while transitioning his team to prepare for growing electrification and autonomous technologies.” While no official monetary figure was provided by GM, the automaker is dumping quite a significant amount of money into the development of 66

electric and autonomous vehicles. Late last year, the automaker announced it would invest $28 million in its battery development and test lab. It has also spent more than $1 billion to acquire and expand its self-driving car subsidiary, Cruise Automation. GM recently axed one of its plug-in hybrid vehicles, the Chevrolet Volt, in order to make way for more battery electric vehicles. It also got rid of other aging, slow-selling product in order to free up cash to invest in EVs and AVs. GM models set to be discontinued include the Chevrolet Cruze, Chevrolet Impala, Buick LaCrosse, Cadillac XTS sedan and Cadillac CT6 sedan. GM Canada is rumored to be killing off the Chevrolet Sonic as well—a move that GM will eventually copy, we (GM Authority) imagine. The American automaker recently passed the 200,000-EVs-sold milestone, which means its EV customers will no longer be eligible to receive the $7,500 tax credit. The government will phase out the tax credit system for GM over the next 15 months. We thank GM Authority for reprint permission.

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

Dorantes said the opportunities he found in school all required more experience than his education provided, so prior to the career fair, he was looking at taking a low-paying job just to get his feet wet. “I needed more real-world experience. School was 80 percent textbook learning and 20 percent hands-on. Gerber offered me an opportunity to learn on the job and they provide tools, which isn’t something I could find just anywhere,” he said. Keller is ecstatic with Gerber’s hire just six months in. “Most young employees don’t ask a question, but

he is full of them on a daily basis [and] trying to expand his knowledge,” said Keller. “We were really impressed with his attitude.” Spring Career Fair Dates The Foundation is currently planning career fairs on the following dates next spring: • • • • • • • • • • •

Miami, FL (2/27) Tampa/Orlando, FL (2/28) San Antonio, TX (3/6) Phoenix, AZ (4/6) Atlanta, GA (TBD) Chicago, IL (TBD) Dallas, TX (TBD) Detroit, MI (TBD) Houston, TX (TBD) Northern VA (TBD) Northern and Southern CA (TBD)

Additional dates will be announced soon.

For more information on how to participate in a career fair or establish one in your community, contact Brandon Eckenrode, director of development, via phone at (312) 231-0258 or email at Brandon.Eckenrode@ed-foundation.org

AMi To Host FCA Certified Collision Network Online Training The Automotive Management Institute (AMi) announced it has been chosen to host the FCA Certified Collision Network’s nontechnical training in conjunction with industry-leading consultant and Collision Advice owner Mike Anderson.

The goals of the training program are to improve the return on investment for the FCA certified network shop, support accurate and safe repairs, and improve the FCA customer experience. The online courses will be available through AMi’s learning portal and focus on specific topics such as the proper use of Tech Authority, how to leverage the FCA certification and more. The FCA online courses are designed for individuals involved in administrative, management,

estimating and repair planning roles. Based on the topic, online courses will start the year as highly recommended or recommended by FCA to participate in its Certified Collision Network. The online courses, though intended for FCA Collision Network shops, will be available to anyone in the industry. “It is an honor to have FCA as our first OEM partner, and [we] have tremendous appreciation for their determination to ensure the FCA customer has a great collision repair experience and receives a safe and proper repair. The AMi next generation project positioned AMi to support organizations interested in improving their customers’ satisfaction,” said Jeff Peevy, AMi president. “I also want to acknowledge the incredible leadership and work Mike Anderson has provided on this project. The positive impact this initiative will have on the FCA Certified Collision Network and its customers will be substantial.”

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autobodynews.com / FEBRUARY 2019 AUTOBODY NEWS

CREF Benchmark Grant Applications Available to Collision Schools The application for the Collision Repair Education Foundation Benchmark Grant program, formerly the Ultimate Makeover Grant, is now available to schools teaching collision repair across the U.S. The grant program is in its 10th year. Instructors are advised to begin the application early, and industry professionals are encouraged to get involved with the Benchmark grant by working with their local school’s collision instructors to help them apply. The winning schools will be announced during the SEMA show in Las Vegas, NV, in November. Awards of up to $25,000 will be given. The school Benchmark Grant application is available online and is due by Friday, June 7, 2019. “Schools teaching the next generation of the collision industry’s workforce continue to face tremendous budgetary pressure. It is difficult for many to maintain their program at current capabilities, no less increase their abilities and improve the training they deliver to the industry’s future workforce,” said Melissa Marscin, director of operations/administration for the Foundation. “The Benchmark grant program is de-

signed to help collision schools get the much-needed tools, equipment and supplies to increase their capa-

bilities based upon industry-developed standards. Last year, every school that applied received some level of support through both grants and in-kind donations.” The Benchmark grant program incorporates the Foundation’s Collision School Career Readiness Benchmark that was launched in 2017. Under the program developed by the Foundation, schools are classified into three tiers: • Tier 1: Advanced • Tier 2: Proficient • Tier 3: Developing

The designation will be determined by the Foundation based upon information provided by schools about the capabilities of their program de-

tailed in the Collision Repair Education Foundation Benchmark grant application. The criteria for each level includes the number of hours of instruction and curriculum in place, along with what tools, equipment and supplies a school uses to prepare their students for employment in the collision industry.

line at: https://app.wizehive.com/app form/login/2019SchoolGrant The organization’s Board of Trustees Selection Committee will select the winners of the awards and determine which items off the wish lists each school will receive. Since 2009, schools have been able to apply for the grant to get much-needed tools, equipment and supplies. Over $4 million in cash and in-kind donations have been

If there is something that a school needs to advance to the next level, the Education Foundation’s grant application will allow a school to request that particular item. The goal is to help every school acquire the resources needed to eventually achieve a Tier 1: Advanced school designation. Schools at Tier 1 status can request support for items that further advance and expand their program. The application is available on-

given out to schools as a result of the grant, and more than 25,000 collision students have been impacted by the program. Collision repair facilities, insurance companies and suppliers interested in supporting school grants should contact Collision Repair Education Foundation Director of Development Brandon Eckenrode at Brandon.Eckenrode@ed-foundation .org or (312) 231-0258.

“Last year, every school that applied received some level of support through both grants and in-kind donations.” — Melissa Marscin

Consumers Confused by Partially Automated Driving Features by David A. Wood, CarComplaints.com

We thank CarComplaints.com for reprint permission. https://www.car complaints.com/news/2018/consumers -confused-by-partially-automateddriving-features.shtml What’s in a name? When it comes to partially automated driving systems, apparently a lot. The latest research from AAA indicates that 40 percent of U.S. consumers believe partially automated driving systems can do all the driving—a scary proposition for all drivers on the roads. Names such as Autopilot, Pilot Assist and ProPILOT allegedly confuse some drivers who don’t pay attention to their surroundings because they believe the cars handle all the driving chores. In addition to the confusing names used by some automakers, researchers at AAA also tested multiple systems in four vehicles and determined they suffered from serious problems when dealing with stationary vehicles, poor lane markings and unusual traffic patterns. To research partially automated vehicle capabilities, AAA conducted tests on the closed surface streets of 68

the Auto Club Speedway in Fontana, CA. Additional tests were conducted on highways and limited-access freeways in the Los Angeles area.

Researchers used a 2018 Mercedes-Benz S-Class, 2018 Nissan Rogue, 2017 Tesla Model S and 2019 Volvo XC40, all equipped with standard partially automated driving features. While driving on public roadways, the test vehicles had problems in moderate traffic, on curved roadways and when traveling streets with busy intersections. “Researchers noted many instances where the test vehicle experienced issues like lane departures, hugging lane markers, ‘ping-ponging’ within the lane, inadequate braking, unexpected speed changes and inappropriate following distances,”

FEBRUARY 2019 AUTOBODY NEWS / autobodynews.com

stated AAA. According to researchers, the systems typically did best on open freeways and freeways with stop-andgo traffic. However, nearly 90 percent of events requiring driver intervention were caused by the inability of the test vehicle to maintain lane positions. Closed-track tests were conducted by using multiple driving conditions such as following an impaired driver and coming upon a tow truck or a vehicle that suddenly changed lanes to reveal a stopped vehicle was in the road. AAA said all the vehicles successfully maintained lane position and recognized and reacted to the presence of the tow truck with little to no difficulty. However, three of the four test vehicles required the drivers to intervene and take control to avoid an imminent crash when a lead vehicle changed lanes to reveal a stationary vehicle. Real-world examples exist, as drivers claimed they crashed due to believing their cars could take full control in all driving situations, even when the owners’ manuals clearly said otherwise. Within the past few months, Tesla

has been sued twice by drivers who crashed while not paying attention to the roads. In one crash, a Tesla Model S crashed into a stalled vehicle at 80 mph because the driver believed the car would stop on its own. A separate lawsuit alleges the driver was deceived by Tesla’s marketing of its Autopilot system, causing the driver to remove her hands from the wheel for 80 seconds just prior to the crash. AAA’s research isn’t the first to show how drivers can be confused by the different names used for similar features offered by various automakers. In a paper released by the Thatcham Research Center and the Association of British Insurers, researchers found consumers can easily fail to understand the differences between advanced driver assistance systems and fully automated driving technology. The confusion can cause drivers to ignore the reality of needing to stay fully alert to deal with all driving conditions. In addition, researchers said confused drivers can also lack the ability to understand that they may be completely legally responsible for any crashes that occur.

Regional Association Event Announcements: February 2019 by Chasidy Rae Sisk

See below for a list of regional automotive association events coming up in February: AASPI Annual Meeting To Feature Mike Anderson On Feb. 23, the Alliance of Automotive Service Providers of Illinois (AASPI) will be hosting its 2019 Annual Meeting at the Diplomat West in Elmhurst, IL, from 9 a.m. until 3:30 p.m. The event will feature a keynote presentation by Mike Anderson of Collision Advice as well as a presentation delivered by Eric Newell of asTech, an AASPI Elite Provider member. According to AASPI Executive Director Mike Lane, “We have also extended an invitation to Senator Tom Cullerton (D-23) and Representative Elizabeth Hernandez (D-24), who have shown interest in working with AASPI in the introduction of legislation mandating all estimates be written using OEM repair procedures.” Anderson’s presentation is ti-

OEM Parts You Need and Trust.

tled “Positioning Yourself in the Collision Repair Industry” and will focus on what the future holds for collision repair professionals. Some of the topics that Anderson will cover during AASPI’s Annual Meeting include how telematics and connected vehicles will impact the damage analysis process, how telematics and connected vehicles will impact FNOL and when it will happen, how to prepare for the fact that 36 percent of consumers want services outside a shop’s normal business hours, and preparing for the prediction that 70 percent of claims will be handled by photo or video inspection by 2020. Anderson will also provide an overview of Collision Advice’s “Who Pays for What?” surveys and an update on OEM certifications as well as other relevant industry topics. Newell will present “Why is Post-Repair Calibration So Important?” He will demonstrate why it is vital for collision repair facilities to understand which systems may be impacted by the repair process because calibrating the ADAS is vital

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to a properly and safely functioning vehicle. AASPI’s Annual Meeting will also include the election of officers and directors. Current President Bob Gottfred of Erie LaSalle Body Shops will be re-elected, as will Vice President Doug Fiala from Douglas Auto Body and Secretary/Treasurer Paul Mason of AutoNation. Mayers Collision Center’s Joe Mayer will continue to serve as a director for the association alongside newly elected directors Tom Stiefbold of O’Hare Auto Body and Tim Paap from Paap Auto Body. Additional information and registration for the event will be available on the association’s website at aaspi.org or by calling the AASPI office at 217-528-5230. YANG To Host 2 Meet-Ups in MI and LA The Young Auto Care Network Group (YANG) will host two Regional Meet-Ups in February. On Thursday, Feb. 7, YANG will meet up in Grand Rapids, MI, in conjunction with the Auto Value Bumper to Bumper Tech Expo. This Meet-Up will be hosted by Auto Wares. On Wednesday, Feb. 27, YANG’s Meet -Up will be held in New Orleans, LA, in conjunction with the 2019 Women in Auto Care Leadership Conference. For more information about YANG and its scheduled events, visit autocare.org/what-wedo/professional-development/youngauto-care-network-group/ ASA-AZ Tucson Chapter To Host February Roundtable On Feb. 5, the Tucson Chapter of ASA-AZ will host an Automotive Roundtable from 6 p.m.–8:30 p.m. at El Corral Restaurant in Tucson, AZ. The goal of these meetings is to provide a platform for association members to share the challenges they face in their businesses and identify potential solutions. For more information on ASA-AZ, visit asaaz.org. HABA & ABAT To Host 2019 Collision Day The Houston Auto Body Association (HABA) scheduled a 2019 Collision Day for Feb. 12 in Austin, TX, at the State Capitol. This will be a joint effort in collaboration with the Auto

Body Association of Texas (ABAT). The purpose of the event is to put repairers and other industry representatives in direct contact with state leaders. The Texas collision repair industry is ready to stand up as a collective force for change emphasizing “Safety and Enforcement of the Texas Consumer Bill of Rights,” according to HABA Legislative Coordinator Larry Cernosek. For more information on HABA, visit haba online.org. AWAF To Host Fireside Chat The Automotive Women’s Alliance Foundation (AWAF) will host a Fireside Chat on Feb. 6 in a private residence, featuring Ms. Julie Martin, vice president of sales and marketing for HELLA USA. For more information on AWAF, visit awa foundation.org. ASA-OH To Host Repair Planning Workshop On Feb. 6, ASA-OH will host a workshop titled “Optimize Performance Through Repair Planning” presented by Robb Power, senior manager of business solutions for PPG’s Automotive Refinish division. Rescheduled from September due to a hurricane, the workshop is scheduled for 9 a.m.– 4 p.m. at Ohio Auto Kolor in Columbus, OH. Power’s presentation will focus on explaining how shops have the potential to deliver improved performance by utilizing the repair planning process. It will include an explanation of the impact the traditional estimating process has on work flow, knowledge of the benefits to the business for those who can successfully implement repair planning, detailed instructions on the repair planning process, and an in-depth exploration of the things to do and avoid in order to successfully implement repair planning. The cost to attend this workshop is $45 for association members and $90 for non-members. For more information about ASAOH and its events, visit asaohio.org.

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