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Hawaii Bill Addresses Consumer Safety & Use of OEM/Aftermarket Parts and Prices by Stacey Phillips

A group of body shop owners and managers in the state of Hawaii have come together with a common goal: to protect consumer safety by introducing new legislation that addresses the use of OEM and aftermarket parts and who ultimately pays the price. Currently in Hawaii, aftermarket parts are permitted or required as part of a collision claim. Per Hawaii state law, insurers are allowed to ‘charge’ insureds and claimants the price difference if they prefer to use OEM parts for any reason.

§431:10C-313.6 Original equipment manufacturers and like-kind and quality parts. (a) An insurer shall make available a choice to the insured of authorizing a repair provider to utilize a like kind and quality part of an equal or better quality than the original equipment manufacturer part if such part is available or an original equipment manufacturer part for motor vehicle body repair work. If the insured or claimant chooses the use of an original equipment manufacturer part, the insured or claimant shall pay the additional cost of the original See Hawaii Bill, Page 11

California Auto Body Technicians Fail to Prove Case Alleging Minimum Wage Violations

See Technicians, Page 40

P.O. BOX 1516, CARLSBAD, CA 92018

Two body shop employees who claimed they were not paid the minimum wage required by California law failed to prove their case, the California Court of Appeal ruled. The shop’s time-keeping records, along with other testimonial evidence, contradicted the employees’ claims of unpaid working time, the court noted. Martin Juarez and Adrian Ramirez, who worked as repair technicians or “body men” at MB Body Shop, sued the shop, claiming that it failed to comply with California’s

minimum wage requirements because its piece-rate compensation system paid them only for time spent repairing vehicles and not for nonproductive time spent waiting for vehicles to be repaired, performing non-incidental cleaning activities, and attending meetings and training sessions. Ruling for the body shop, the trial court found that Juarez and Ramirez actually had little if any nonproductive time, were not responsible for cleaning and were not required to attend meetings. Juarez and Ramirez appealed. The appellate court first noted

Change Service Requested

by Joanne Deschenaux, Society for Human Resource Management

VOL. 36 ISSUE 3 MARCH 2018

CIC Industry Meetings Discuss CCC’s Changes to ‘Secure Share’, Retains Interest in EMS Format

rather than requiring the use of the newer “BMS” data export file, reducChanges that CCC Information Serv- ing development costs or forced timeices recently announced related to its lines for third-party providers to gear “Secure Share” data-exchange pro- up to receive BMS files. gram were a frequent focus of disCIC Chairman Guy Bargnes said cussion at the Collision the CIC task force that developed early last year to adIndustry Conference (CIC) dress concerns related to and other meetings held reSecure Share successfully cently in Palm Springs, CA. fulfilled CIC’s mission to CCC in December anbring industry stakeholders nounced that it was dropping together to “discuss issues, plans for a 50-cent-per-estienhance understanding, find mate fee for third-party Dan Risley providers (such as rental car common ground and comcompanies, shop management system municate possible solutions.” “This is a really great example of providers, CSI services, etc.) wishing to receive estimate data from CCC the difference that CIC can make when everybody is working together ONE users. It also eliminated registration fees for those third-parties, and for a common goal,” agreed ASA Exsaid it would continue to allow such ecutive Director Dan Risley, one of three co-chairs of the CIC task force. data transfers to be done via the comSee CCC’s Changes, Page 18 monly used “EMS” data export file by John Yoswick

A Career Painter’s Personal Experience is Cautionary Tale for Others by Ed Attanasio

Back in 1985, the actor Yul Brynner was dying from cancer when he told a television audience on “Good Morning America” that what he really wanted to do was film a commercial that said, “Now that I’m gone, I’ll tell you this: Don’t smoke. Whatever you do, just don’t smoke.” When he died several months later, his wish came true when a public service announcement was produced telling the world to quit smoking. Today, it is one of the most memorable anti-smoking statements ever made and is often re-broadcasted all over the world. In life, we learn from others’ mistakes so that we don’t repeat them. In this story, a career painter has sage advice for painters and techs who don’t wear proper gear when painting cars.

Alex Alonso and his wife, Andrea, on the beach in Florida. A former painter/tech, Alex has stage 4 kidney cancer and wants other collision professionals to be aware of the hazards associated with not wearing the proper gear on the job

Alex Alonso is 52 years old and originally from Bronx, NY. His father, Jesus, was born in Uruguay and came to the U.S. to eventually open a twoSee Cautionary Tale, Page 16

Presorted Standard US Postage PAID San Bernardino, CA Permit #2244


2 MARCH 2018 AUTOBODY NEWS | www.autobodynews.com


Contents

by Ed Mayberry, Houston Public Media

a Cautionary Tale for Others . . . . . . . . . . . . . 1

California Auto Body Technicians Fail to Prove

AAAS Shares Industry Concerns During

California Self-Driving Report May Validate

AASP/NJ, WMABA Release 2018 NORTHEAST

George V. Arth & Son Celebrates 140th

Allstate and Nationwide Among Insurers Using

Hawaii Bill Addresses Consumer Safety &

Bill Garoutte to Take Helm at National

Kniesel’s Collision Rings in 50 Years in

Canadian Painter Starts ‘Motivated Painters’

Minidoka School District Approves New

CARSTAR North America Launches U.S.,

Mother of 6 Receives Car at NABC Annual

Chuck Sulkala Scholarship Fund to Honor

Pacific Collision Equipment Co.™ Opens

CIC Industry Meetings Discuss CCC’s

Consumer Concerns. . . . . . . . . . . . . . . . . . . 4 Anniversary in Oakland, CA . . . . . . . . . . . . 22 Use of OEM/Aftermarket Parts and Prices. . . 1 Northern California . . . . . . . . . . . . . . . . . . . 10 Charter School in ID . . . . . . . . . . . . . . . . . . 14 Golf Fundraiser in CA . . . . . . . . . . . . . . . . . . 6 New Training Facility in Signal Hill, CA. . . . . 24

Roadtrip Nation, UTI Long Beach, CA,

Florida’s 2018 Capitol Days . . . . . . . . . . . . 35 Agenda . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Public Data Sources In Fraud Detection. . . . 57 Auto Body Council . . . . . . . . . . . . . . . . . . . 79 Movement . . . . . . . . . . . . . . . . . . . . . . . . . 46 Canada 1st Brand Campaign . . . . . . . . . . . 80 NABC Founder . . . . . . . . . . . . . . . . . . . . . . 80 Changes to ‘Secure Share’, Retains

Interest in EMS Format . . . . . . . . . . . . . . . . . 1

Host Tech Career Event . . . . . . . . . . . . . . . . 8

Collision Safety Consultants Opens 8

Sacramento . . . . . . . . . . . . . . . . . . . . . . . . . 6

Fire Sparks Explosion at Keys Auto Body in OK. . 8

Service King Opens 43rd CA Shop in Tesla On ‘Auto-Pilot’ Crashes Into

Culver City, CA, Fire Truck . . . . . . . . . . . . . . 4

UTI Rancho Cucamonga, CA, Celebrates

Inaugural Welding Program. . . . . . . . . . . . . 12

COLUMNS

New Locations . . . . . . . . . . . . . . . . . . . . . . 12

Ford Launches its 1st Plug-In Hybrid Vehicle

for Police, Government Customers . . . . . . . 16

GCIA Kicks Off 2018 with Presentation by

Attorney Erica Eversman . . . . . . . . . . . . . . 72

Gerber Collision & Glass Opens Repair

Locations in Florida . . . . . . . . . . . . . . . . . . 40

Attanasio - Family of Game Farmers, Wholesale

Houston Auto Show Showcases New

Attanasio - Too Many Shops Are Advertising

Hundreds of Automotive Scholarships

Hey Toby - Kool Tools from SEMA 2017 . . . . . 28

Hyundai Showcases World’s 1st Self-Driven

Parts Experts—The Hunt Family. . . . . . . . . 56 When They Should be Marketing. . . . . . . . . 50

Ledoux - Audi’s Mark Allen Interviewed

Technology. . . . . . . . . . . . . . . . . . . . . . . . . . 3 To Be Awarded: Apply by March 31 . . . . . . 14

Fuel Cell Electric Vehicle . . . . . . . . . . . . . . . 74

on Shop Certification . . . . . . . . . . . . . . . . . 64

Industry Invited To Sponsor Uniforms for

The “Dragon Slayer”. . . . . . . . . . . . . . . . . . 60

LIABRA, ABCG Meeting Featured BMW

Ledoux - In Reverse: John Loftus,

Phillips - Enterprise Shares Company’s

Successful Recruitment Strategies . . . . . . . 38

Collision Education Students. . . . . . . . . . . . 76 Technical Training, Todd Tracy

Presentation . . . . . . . . . . . . . . . . . . . . . . . . 34

Phillips - How to Build Customer Loyalty,

Meriden, KS, Body Shop Owner Could Only

Phillips - How To Train, Prepare for

MI Body Shop Owner Admits Bribing

Phillips - Mitchell’s ‘Program Freedom

Mike Anderson to Host Free Webinars on

Prepare for the New Customer Mindset. . . . 66 Negotiations . . . . . . . . . . . . . . . . . . . . . . . . 54

Experience’ Features Newest Products,

Watch as Fire Destroys Classic Cars. . . . . . 41

Police Officer . . . . . . . . . . . . . . . . . . . . . . . 76

Locating OEM Procedures . . . . . . . . . . . . . 80

Services. . . . . . . . . . . . . . . . . . . . . . . . . . . 68

Missouri House Considers Anti-Vehicle

Scanning for the Future Webinar . . . . . . . . . 44

NY Auto Body Shop Releases Humorous Video

Resolutions That Stick . . . . . . . . . . . . . . . . 52

Owners of Michigan Rehab Clinic Accused

Sisk - ASA Partners With Bosch to Present Sisk - Management Success Shares Shop Yoswick - 5 Years Ago, CT Shops Were Still Hopeful That Judgment Against

Insurer Would Hold. . . . . . . . . . . . . . . . . . . 48 NATIONAL

1,000+ Students Registered for CREF

Safety Inspection Legislation . . . . . . . . . . . 78

to Ease the Stress of Collision Repair . . . . . 76

in $1M Staged-Crash Scheme, 8 Others

Already Convicted . . . . . . . . . . . . . . . . . . . 62

Paris, TX, Students Win Scholarships at

Auto Tech Competition . . . . . . . . . . . . . . . . . 8

PPG Funds Refinish Student Scholarships

Through CREF . . . . . . . . . . . . . . . . . . . . . . 80

Spring Career Fairs . . . . . . . . . . . . . . . . . . . 12

Proposal To Repeal Michigan’s No-Fault

Phone App . . . . . . . . . . . . . . . . . . . . . . . . . 75

SCRS Releases Video of ‘Kool Tools From

Program. . . . . . . . . . . . . . . . . . . . . . . . . . . 70

udelv Makes Public Road Test Delivery From

1Collision Announces New Call Center,

42 Apprentices Join Service King’s Training A Career Painter’s Personal Experience is

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: Michelle Lucas Online and Web Content Editor: Rochelle Beckel Accounting Manager: Heather Priddy Editorial/Sales Assistant: Randi Scholtes

Index of Advertisers

Case Alleging Minimum Wage Violations. . . . 1

The Houston Auto Show at NRG Center displayed more than 800 vehicles from nearly 40 manufacturers. That includes electric cars, although dealer Carroll Smith said sales of those remain sluggish. “It almost appears as if it is a revolution, but the reality is that today, the average dealer in the United States is only selling one electric vehicle a month,” Smith said. Smith also said regular gasoline engines are becoming so efficient, it raises questions about taxes. “Our roads are funded by a gasoline tax. As

Car Insurance System . . . . . . . . . . . . . . . . 78

2017 SEMA Show & More’. . . . . . . . . . . . . 79

Autonomous Last-Mile Delivery Vehicle . . . . 4

we change more and more, even to fuel-efficient internal combustion, if you see a huge shift to that, where are we going to fund our roads?” Smith said. What is selling? Cars with collision avoidance systems, said Steve McDowell with Infonation, a firm that mines auto sales data.“People coming into this show don’t realize how many autonomous features there are. Collision prevention, which is one very important feature—these are the best vehicles that have ever been built,” he said. We thank Houston Public Media for reprint permission.

Anchorage Chrysler-Dodge-JeepRam . . . . . . . . . . . . . . . . . . . . . . .14 Axalta Coating Systems . . . . . . . . . . .5 Audi Wholesale Parts Dealers . . . . .69 AutoNation Chrysler-Jeep-DodgeRam-Fiat . . . . . . . . . . . . . . . . . . . .18 BASF Automotive Refinish Coatings .7 BMW Wholesale Parts Dealers . . . .81 Bob Smith BMW . . . . . . . . . . . . . . . .63 Bob Smith MINI . . . . . . . . . . . . . . . .63 Capitol Subaru . . . . . . . . . . . . . . . . .84 Car-Part.com . . . . . . . . . . . . . . . . . .51 ChemSpec USA, LLC. . . . . . . . . . . .26 Chevrolet of Anchorage . . . . . . . . . .62 Chrysler-Dodge-Jeep-Ram of Seattle . . . . . . . . . . . . . . . . . . .74 Classifieds . . . . . . . . . . . . . . . . . . . .82 Colortone Automotive Paints . . . . . .16 Cutter Auto . . . . . . . . . . . . . . . . . . . .45 Dave Smith Motors . . . . . . . . . . . . .53 DCH Auto Group Temecula . . . . . . .34 Del Grande Dealer Group . . . . . .20-21 Diamond Standard Parts, LLC . . . . .13 Dominion Sure Seal . . . . . . . . . . . . .35 Downtown Motors of LA (Audi, VW) .56 ECS Automotive Concepts . . . . . . .22 EMS Automotive . . . . . . . . . . . . . . . .6 Engine Parts Warehouse . . . . . . . . .24 Enterprise Rent-A-Car . . . . . . . . . . .36 Equalizer Industries, Inc. . . . . . . . . .50 First Auto Group . . . . . . . . . . . . . . . .12 Ford of Kirkland . . . . . . . . . . . . . . . .74 Ford Wholesale Parts Dealers . . . . .61 Galpin Motors . . . . . . . . . . . . . . . . .49 Glenn E. Thomas Dodge-ChryslerJeep . . . . . . . . . . . . . . . . . . . . . . . .9 GM Wholesale Parts Dealers . . . . . .73 Haddad Dodge-Kia . . . . . . . . . . . . .41 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . .30-31 Hyundai of Kirkland . . . . . . . . . . . . .74 Hyundai of Seattle . . . . . . . . . . . . . .74 Hyundai Wholesale Parts -Dealers .78

Serving 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. ©2018 Adamantine Media LLC. Autobody News P.O. Box 1516 Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

Western

REGIONAL

Houston Auto Show Showcases New Technology

Insta Finish Car Care . . . . . . . . . . . .23 Island Clean Air, Inc. . . . . . . . . . . . .25 Kearny Mesa Subaru-Hyundai . . . . .67 Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . .58-59 Killer Tools and Equipment Corp. . .57 Launch Tech USA . . . . . . . . . . . . . .83 Malco . . . . . . . . . . . . . . . . . . . . . . . .19 Matrix Automotive Finishes . . . . . . .15 Mazda Wholesale Parts Dealers . . .76 Mercedes-Benz . . . . . . . . . . . . . .42-43 MINI Wholesale Parts Dealers . . . . .80 Mirka USA . . . . . . . . . . . . . . . . . . . .11 Mitsubishi Wholesale Parts Dealers . .78 MOPAR Wholesale Parts Dealers . . .47 Moss Bros. Chrysler-Jeep-Dodge . .29 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .77 O’Reilly Auto Parts . . . . . . . . . . . . . .37 Penske Hyundai . . . . . . . . . . . . . . . .60 Polyvance . . . . . . . . . . . . . . . . . . . . .27 Porsche Wholesale Parts Dealers . .68 PPG . . . . . . . . . . . . . . . . . . . . . . . . . .2 Puente Hills Subaru . . . . . . . . . . . . .46 Reliable Automotive Equipment . . .10 Riverside Kia . . . . . . . . . . . . . . . . . .52 Robaina Industries, Inc . . . . . . . . . .33 Roy Robinson Subaru . . . . . . . . . . .71 SATA Dan-Am Company . . . . . . . . .17 Shingle Springs Subaru . . . . . . . . . .75 Sierra Chevrolet-Honda-Subaru . . . .70 Spanesi Americas . . . . . . . . . . . . . .40 Subaru Wholesale Parts Dealers . . .65 Symach . . . . . . . . . . . . . . . . . . . . . . .8 Tacoma Dodge-Chrysler-Jeep-Ram .39 The Bay Area Automotive Group . . .55 Valley Auto Dismantlers Association, Inc. . . . . . . . . . . . . . .66 Vintage Flatz/Cumberland Products .44 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .79 Volvo Wholesale Parts Dealers . . . .78

www.autobodynews.com | MARCH 2018 AUTOBODY NEWS 3


udelv Makes Public Road Test Delivery From Autonomous Last-Mile Delivery Vehicle udelv, a Burlingame, CA, company, pulled the wraps off its autonomous, last-mile delivery vehicle Jan. 30 and made the world’s first public road test deliveries from Draeger’s Market in San Mateo to two nearby customers. The 2.5-mile loop, with traffic lights, lane changes, un-signalized left turns and two delivery stops, was accomplished flawlessly. In compliance with existing California

The distinctive orange udelv customized vehicle is built on a fully electric powertrain and features 18 secure cargo compartments with automatic doors using a cloud-based proprietary technology that is shared between the vehicle, customers and merchants. The vehicle can drive for up to 60 miles per cycle and can load up to 700 pounds of cargo

regulations, the vehicle was supervised by a safety driver and in test mode. The distinctive orange customized vehicle is built on a fully electric powertrain and features 18 secure cargo compartments with automatic doors using a cloud-based proprietary technology that is shared between the vehicle, customers and merchants. In its current configuration, the vehicle can drive for up to 60 miles per cycle and can load up to 700 pounds of cargo. A dedicated application is available on iOS to track and potentially reschedule deliveries, with an Android version to be released soon. To complement its autonomous driving technology and ensure reliability of the service, udelv also created an ultra-low latency teleoperations system to monitor and control the vehicles remotely and allow for overrides and human-assisted guidance in unique situations. udelv anticipates that its new vehicle will bring forth a dramatic drop in the cost of local deliveries, add delivery window flexibility and See Last Mile Delivery, Page 6

CA Self-Driving Report May Validate Consumer Concerns by Chanell Turner, CBT Automotive Network

Would you allow your car to take control of your commute? This is the question many car buyers are still wrestling with. While companies like Tesla, Waymo and even Ford are looking ahead to pushing the boundaries of fully autonomous features in vehicles, the public at large still seems to be on the fence. A study by Carinsurance.com, an online insurance comparison and rate quote company, revealed that 80 percent of its 2,000 respondents would not purchase an autonomous car if given the opportunity. A similar sentiment took place during an MIT survey in 2017. Out of 3,000 respondents, 48 percent said they would never buy a self-driving car because they were not comfortable with the lack of control, and felt the vehicles were not safe. Do consumers have something to worry about? Are their feelings valid?

The Annual Autonomous Vehicle Disengagement Report California implemented a program where manufacturers have the opportunity to test self-driving cars on public roads. The Department of Motor

Vehicles in the state recently released its Annual Autonomous Disengagement Report to reveal how many disengagements the various vehicles experienced during test runs. According to the Department of Motor Vehicles, a disengagement is defined as when a failure of the autonomous technology occurred or if the test driver felt the need to disengage the autonomous mode and manually take over for the safe operation of the car.

GM, Mercedes, and Nissan Reveal Progress This year, 19 manufacturers were included in the report. Recognizable brands such as BMW, Ford, Honda, and Volkswagen did not test any vehicles in 2017 on California’s public roads. General Motor’s Chevy Cruise drove more than 130,000 miles on the public streets of San Francisco with 105 disengagements. GM recorded that most disengagements were attributed to precautionary takeovers to address planning or controls. Mercedes-Benz tested three autonomous vehicles on California roads last year, and in total all three drove more than 1,000 miles. There were 240 manual and 602 automatic disengagements. Nissan tested five cars, including

4 MARCH 2018 AUTOBODY NEWS | www.autobodynews.com

Tesla On ‘Auto-Pilot’ Crashes Into Culver City, CA, Fire Truck

by Emily Holland, Culver City Patch

Culver City Fire Department’s Engine 42 was struck by a Tesla sedan while working a freeway incident Jan. 23, according to CCFD.

Credit: Culver City Fire Department Twitter

The Tesla was traveling at 65 miles per hour—the driver reportedly told firefighters that the vehicle was on auto-pilot. This is the second accident involving a Tesla on auto-pilot in the last two weeks, according to ABC7. Tesla’s auto pilot feature is an advanced driver assistance system that uses cameras, sensors and various vehicle systems to maintain the speed of the car, prevent them from

three versions of the Leaf. The manufacturer reported the vehicles rode a combined 5,007 miles with 24 disengagements in the year. Two of the most common issues cited for the separations were a software crash or GPS signal issue.

Small Autonomous Automakers Show Promise Waymo, formerly the Google self-driving car project, drove more than 350,000 miles last year and experienced only 63 disengagements. The top two reasons cited were unwanted maneuvering of the vehicle and perception discrepancy. Artificial intelligence company, NVIDIA, had two vehicles drive a combined 505 miles with 109 disengagements. Tesla, a company that has almost become the face of autonomous cars, did not test any vehicles under California law. Instead, the company cited how it gathers autonomous vehicle data from customer-owned cars in shadow mode during normal operation.

There is Still Cause for Concern This report is groundbreaking in that it allows the public a detailed glimpse into real performance data of autonomous vehicles. Even though they

running into slower-moving cars ahead, keep the vehicle in the lane and even change lanes for the driver, according to Auto Trader. Very few other cars have all of these systems, and Tesla gives control of all of them to the car’s electronic capabilities, requiring much less input from the driver, according to Auto Trader. The National Transportation Safety Board will be coming to California to examine the crash, according to ABC7. No one was injured. The first Tesla autopilot crash occurred Jan. 13 on the Bay Bridge. The suspected drunk driver had passed out behind the wheel, ABC7 reported. CCFD warns drivers to stay alert while behind the wheel. We thank Culver City Patch for reprint permission.

www.autobodynews.com were not included in some reports, many manufacturers did detail the reason for each disengagement. Most automakers seemed to have more successes than failures, but is the public comfortable with seeing a “software crash” or “precautionary takeover” as reasons for manual takeovers? A 2017 AutoTrader Car Tech Impact Study gave some additional insight into how drivers feel about autonomous vehicle technologies. Niche autonomous features were cited as having low awareness and appeared polarizing to respondents. Forty-eight percent of respondents were uninterested in fully autonomous technology. Unfortunately, car companies have a bit of a perception problem when it comes to selfdriving cars. While it is normal to experience failures and hiccups during experiments, consumers seem to be on edge with the safety factor of autonomous vehicles. Will the natural experimentation phase of these automobiles throw car buyers off? Only time will tell as manufacturers push forward on their quest to produce a fully autonomous vehicle.

We thank CBT Automotive Network for reprint permission.


www.autobodynews.com | MARCH 2018 AUTOBODY NEWS 5


Mother of 6 Receives Car at NABC Annual Golf Fundraiser in CA National Auto Body Council members gave a Palm Springs, CA, single mother of six much to look forward to in 2018 by giving her keys to a practically brand-new 2017 Toyota Camry. The vehicle presentation was a highlight of the National Auto Body Council’s (NABC) Annual Golf

sion Centers, Car-O-Liner, Certified Collision Group, Enterprise Rent-ACar, Pacific Resource Recovery, The Collision Centers of New York and United Recyclers Group (URG). This past year was challenging for Sonya Palacio and her family. They were forced to leave their rental home and exhausted their modest savings by living in motels. To make matters worse, their only car broke down during the move to temporary shelter at a friend’s guest house. Despite these challenges, Sonya’s young daughters manage to maintain an A average in school and perfect attendance, relying on public bus transMembers of the National Auto Body Council with Sonya portation and the generosity Palacio and her family of friends for rides. Fundraiser in Palm Springs. Proceeds “This is overwhelming, a wonfrom the fundraiser support NABC’s derful blessing for our family,” said community service programs, includ- Palacio, adding that the car will ening Recycled Rides™, First Responder able her to find stable employment as Emergency Extrication™ (FREE) and well as the opportunity to participate Distracted Driving Initiative. in her children’s school and extracurThe golf fundraiser was presented ricular activities. by title sponsor Hertz Corporation with The Recycled Rides vehicle for event sponsors including: Audatex, a the Palacio family was donated by Solera Company, Autoworks PDR, Hertz and repaired by Ben Clymer’s AXALTA Coating Systems, Berkshire The Body Shop in Palm Desert, with Hathaway Automotive, Caliber Colli- contributions of parts, materials and Continued from Page 4

Last Mile Delivery

significantly reduce carbon footprint. Clean and affordable deliveries, combined with returns made easy, will meaningfully improve people’s daily lives. “Deliveries are the perfect first application for autonomous vehicles,” said Daniel Laury, CEO of udelv. “Customers simply open the locker with a press of a button on their mobile device, and the vehicle heads on its way to the next delivery or back to the store. “This is a historic revolution in transportation. We are reinventing deliveries. McKinsey estimates that 80 percent of all package deliveries will be autonomous in the next decade. I am very proud that udelv is first and leads this revolution.”

“Our customers are very techsavvy,” said Richard Draeger, owner, Draeger’s Market. “We look forward to adding the udelv autonomous vehicle and its cost reduction factor to our delivery fleet.” The company, with several technology patents pending, is planning to test dozens of udelv vehicles on the roads in a few states within a short timeframe. udelv is planning to use a subscription business model to roll out its vehicle fleet. Led by Laury and CTO Akshat Patel, former Tesla and Apple special projects engineer manager, udelv is listed on the California DMV Autonomous Vehicle Tester Program under the name of CarOne LLC. The company is funded by a group of investors that includes prominent U.S. and international venture capital funds as well as private investors.

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6 MARCH 2018 AUTOBODY NEWS | www.autobodynews.com

services from LKQ Corporation, PPG Automotive Refinish and I-10 Toyota in Indio, CA. Nearly 2,000 vehicles valued at over $26 million have been donated across the country by NABC members.

Bryan Clymer shows Sonya Palacio dashboard features of her newly refurbished 2017 Toyota Camry

“It is through the generosity of so many in our collision industry that we are able to give individuals like Sonya Palacio hope for a brighter future,” said Darren Huggins, NABC Chairman. “Our sincere thanks to all those who sponsored and participated in our golf fundraiser this year, giving us additional funds to change and save even more lives.”

Service King Opens 43rd CA Shop in Sacramento

Service King Collision Repair Centers recently announced the company has officially opened its 43rd California location. The announcement came as the organization finalized a deal to partner with Izzie’s Body and Frame in West Sacramento, CA. The repair center is located at 1120 Shore St. and, as part of the deal, will transition operations to Service King immediately. “We are proud to continue our steady growth across the state of California, and particularly the addition of this new location to the Service King family,” said Wesley McAlester, Service King Market Vice President. “Since opening our first location in the Sacramento area in 2014, it has been our mission to grow Service King into the collision repair operator of choice for our customers and business partners. We are excited about this new location and look forward to providing the Sacramento community with an enhanced network of high-quality collision repair service.” The company has grown quickly across the greater Sacramento area, opening three new locations in the market in 2017 alone. All Service King locations back all work with a written lifetime warranty.


www.autobodynews.com | MARCH 2018 AUTOBODY NEWS 7


Roadtrip Nation, UTI Long Beach, CA, Host Tech Career Event tary television series. “Changing Gears,” which had aired on public television stations in California and nationally during the prior three months, follows three aspiring technicians on a 1,000-mile journey that introduces them to legendary car enthusiasts and automotive and diesel technicians, including Roger Penske, an icon in racing and CEO of the world’s second-largest automotive retail group; Sarah “Bogi” Lateiner, UTI graduate and High School attendees lined up outside Roadtrip Nation’s host of the Velocity television iconic green RV to see where the road trip magic happens series “All Girls Garage”; and cused event featuring Roadtrip Nation’s Dennis McCarthy, picture car coordinew documentary, “Changing Gears,” for more than 250 Los Angeles, Long On Feb. 7, the Long Beach, CA, campus of Universal Technical Institute (UTI) hosted a special tech career-fo-

Beach and Orange County high schoolers, teachers and other school leaders. Roadtrip Nation is renowned for its New York Times bestselling career guide and award-winning documen-

Paris, TX, Students Win Scholarships at Auto Tech Competition by Staff, eParisExtra.com

Paris, TX, ISD Automotive Technology students recently competed for the first time in the Top Tech Challenge at the Universal Technical Institute (UTI) – Dallas/Ft. Worth campus. All 52 two-person teams came from schools across Texas to compete in hands-on and written automotive testing on vehicle parts, brakes, diagnostics and electrical systems. The team of Mason Ragsdale from Paris High School and Wesley Wilson, a contract student from Chisum, placed 8th in the competition. Each earned $1,000 in scholarships toward tuition at UTI. Michael Rhodes is their instructor. UTI has campuses around the US. Based on data compiled from the U.S. Bureau of Labor Statistics, Employment Projections (2016-2026), the projected number of annual job openings for automotive service technicians and mechanics is 75,900, or 759,000 by 2026. We thank eParisExtra.com for reprint permission.

nator for the Fast & Furious film fran- learn more about careers in the automochise. tive and diesel industries. In addition, at“A common theme throughout tendees toured inside Roadtrip the event was the value of looking at Nation’s iconic 1985 green RV to see education differently. The ‘Changing the actual vehicle from the documenGears’ documentary featured three stu- tary. dents who were considering a technical education and sought out figures in the auto and diesel industries to learn about their path to career success,” said Larry Hohl, president of the UTI-Long Beach campus. “The guest speakers reinforced the point that a promising career can be achieved through multiple viable career paths. Not everyone is meant to pursue the traditional college route, and our California employer Students got up close and personal with the colorful hot partners have many rods used in campus’ high-performance Dyno lab more jobs for UTI-trained techThe Roadtrip Nation trip was nicians than we can fill.” sponsored by Universal Technical InIn addition to screening ex- stitute and the TechForce Foundation. cerpts from the film and hearing In addition to the film screening, from one of the three techni- high schoolers heard from and met with cians, Roadtripper Alexandra recent UTI graduates who are working “Alex” Burton, the event of- in the auto, diesel or collision industry, as fered attendees an opportunity well as local employer partners to learn to visit the campus’ high-per- more about the demand for automotive Students explored the green RV filled with inspiring quotes formance Dyno lab and tour the and diesel technicians in the greater Los state-of-the-industry facilities to Angeles and Orange County area. and advice from leaders in the automotive industry

Fire Sparks Explosion at Keys Auto Body in OK by Staff, KOTV/NewsOn6.com

An auto body repair garage caught fire in Keys, OK, around 8:15 a.m. Feb. 9, according to Keys Fire Chief Yogi Cole. The business is located just west of Highway 82 on 830 Road. There was a secondary explosion caused by the fire, Cole said. Cole said they don’t know what caused the explosion. No one was at the garage, and no firefighters were injured. Firefighters said the garage had been converted into a man cave. They found a smoldering area near the couch, and the owner confirmed there was a space heater there. Investigators said the fire put itself out from a lack of oxygen. However, they said there was so much heat that it melted several plastic fixtures and the garage door opener. The explosion also sparked a grass fire, Cole said. It’s the second explosion in the Cherokee County town in a short time. A house located near the Green Leaf Nursery exploded the Friday, Feb. 2. We thank KOTV/NewsOn6.com for reprint permission.

8 MARCH 2018 AUTOBODY NEWS | www.autobodynews.com


www.autobodynews.com | MARCH 2018 AUTOBODY NEWS 9


Kniesel’s Collision Rings in 50 Years in Northern California by Mackenzie Myers, Placer Herald

Richard Kniesel’s life has revolved around starting over—taking something broken in a sudden turn of events, and making it shine again. Kniesel—with the K pronounced —started a body shop in Citrus Heights in 1968, working out of a two-and-ahalf car garage in the back of his father’s business and fixing up cars that were banged up for one reason or another. Now, 50 years later, after the business passed to Kniesel’s sons, Rob and Tom, the family owns six locations throughout greater Sacramento and employs nearly 200 people. Their Rocklin location opened in 2003 after the two sons decided they wanted to expand the company. It employs about 50. The collision shops primarily take in insurance claims from accidents, and the Rocklin location is the only body shop in the greater Sacramento area, Kniesel’s or otherwise, certified to repair Tesla vehicles, according to CEO Rob Champe. Though the business has expanded from what it once was---and

though it’s seen the patronization of people like film director Francis Ford Coppola, who backed his Tesla into a building at his Napa winery, Tom said---Champe and the Kniesel’s still stand by the modest, family-oriented business philosophy that got them up and running half a century ago.

A Fresh Start Though he’s lived in the United States since adolescence, Kniesel’s family origins go back to the Black Forest of Germany. In the 1800s when Germany was becoming overcrowded, he said, his ancestors had a chance to immigrate to present-day Yugoslavia. The family lived there for over a century, where Kniesel’s grandfather built a flour mill that passed to his father. “In 1941, Hitler marched into Yugoslavia and took (the country) over,” Kniesel said. “We were Germans, so we were okay until Hitler didn’t win the war.” When World War II broke out, Kniesel’s father was drafted into Hitler’s army. During his father’s military service, Kniesel’s family received notification they’d be killed if they

stayed in the country. They fled to a refugee camp in Austria, where they stayed for about five years and where Kniesel’s mother died of tuberculosis at age 29. In 1952, a sponsor with the American Lutheran Church offered the rest of the family a way out, guaranteeing them work and a place to stay. In May of that year, along with his father, stepmother, sister and two half-siblings, Kniesel boarded a ship in Bremerhaven, Germany and came to Ellis Island, where they were relocated to Citrus Heights, CA.

Working the Way Up As Kniesel grew, he watched his father take on job after job, aspiring to be a businessman, and eventually followed in his footsteps. Before finding the facility that would become the flagship collision center in 1968, Kniesel took on a variety of jobs, often working two at a time: military paratrooper, dishwasher, carwasher, janitor, gas station operator. He fixed cars as a side gig, but turned it into a livelihood when insurance agents started taking notice of his work and

recommending clients to him. The quality of the work was one way Kniesel got a leg up, but he attributes some of the company’s success to customer relations. He recalled a patron from earlier days who brought his vehicle in for repairs that Kniesel said were quick and of little difficulty. When the customer asked how much he owed, Kniesel told him not to worry about it. “If you ever have an accident, remember where I’m at,” Kniesel had replied. The customer was the president of a mobile home park in Citrus Heights with 180 residents. He told neighbors and tenants about Kniesel’s shop and, years later, proudly brought in his smashed-up van to be repaired. “I’ve never seen such a fool like him,” Kniesel laughed. “Happy he had an accident so he could bring his car in.” Examples of this kind of business conduct have continued into the present, according to spokeswoman Rebecca Endres, whether it means waiving repairs for a fixed-income customer needing new headlights around Christmas or See Kniesel’s Collision, Page 12

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Continued from Cover

Hawaii Bill

equipment manufacturer part that is in excess of the equivalent like kind and quality part, unless original equipment parts are required by the vehicle manufacturer’s warranty. House Bill 1620 was introduced earlier this year by House representatives Roy Takumi and Linda Ichiyama, along with companion Senate Bill 2243, introduced by Senators Kidani, Galuteria, Inouye, Baker, S. Chang, Dela Cruz, K. Kahele, Nishihara, Shimabukuro and Wakai. The bill would prohibit motor vehicle insurers from charging insureds an additional fee for repairs made with original equipment manufacturer parts if the vehicle manufacturer recommends them. Van Takemoto, owner of Island Fender in Honolulu, Hawaii, has been working closely with other body shops that are part of the Automotive Body & Painting Association of Hawaii to lay out the strategy and arguments required to help pass the bill. “What we’re saying is that there shouldn’t be a law in the state that requires insureds and claimants to pay

the difference,” said Takemoto. “If the bill passes, then insurers cannot pass that cost on to them.” The original law was enacted in the late 1990s. At that time, Takemoto said vehicle parts were mainly cosmetic. “Today, the car is a safety system. If you replace one component in that safety system, the safety system is no longer the same,” he explained. “If you are going to use an aftermarket part in that safety system, somebody has to guarantee that it will perform exactly the same as the original equipment part; not look and fit the same.” He said that supporters of the bill are trying to communicate to the opposition that there is no way of really knowing what that part is truly made out of. “Basically, it’s a safety issue,” he said. An Intrastate Commerce (IAC) committee hearing was held Jan. 31, headed by Chairman Takashi Ohno, D-Honolulu. Following testimony from insurance companies, body shops and other stakeholders, HB 1620 passed favorably with amendments. When Autobody News went to press, HB 1620 was amended in the IAC to create a task-

force. Takemoto said if the bill does not pass in the House, there is still a chance it will be passed in the Senate. He explained that any piece of legislation has to pass in both houses. “If there is a disagreement between the two, it goes to a conference committee. If they don’t agree, then the bill is dead,” he said. A hearing date had not been set in either the House or Senate as of midFebruary. “The insurance companies and national insurance organizations are saying that this is an aftermarket parts bill to kill the use of aftermarket parts and that it will allow the OEMs to increase their prices, and therefore increase the premiums,” said Takemoto. “They are trying to protect their profits.” He said in reality, the bill will stop an insurer and claimant from having to pay the cost difference between an aftermarket and OEM part. “The law should not shift the costs from the insurer to the claimant,” said Takemoto. “The claimant had nothing to do with it.” During the hearing, Commissioner Gordon Ito testified on behalf

of the Department of Commerce and Consumer Affairs why the department opposes the bill. “The proposed change lacks an obvious benefit to consumers,” Commissioner Gordon said. “Insureds will pay higher insurance premiums since accidents routinely involve damage to motor vehicle parts and original body parts and cost more than aftermarket parts. Further, changing the statutory requirement from manufacturer-’required’ parts to manufacturer-’recommended’ parts would mean the insurer could cover the cost of all original parts since it is likely all manufacturers would recommend the use of higherpriced original equipment as replacements… finally, these higher costs will likely result in a higher number of vehicles deemed a total loss simply because insurers will [determine] it’s cheaper to total a vehicle rather than repair it with original equipment parts.” Supporters of the bill say this section of the law and the bill only relate to crash parts and do not have any effect on mechanical or consumable parts. Ray Colas, the government affairs representative for LKQ Corporation, also testified in opposition to the See Hawaii Bill, Page 26

www.autobodynews.com | MARCH 2018 AUTOBODY NEWS 11


UTI Rancho Cucamonga, CA, Celebrates Inaugural Welding Program On Jan. 26, more than 60 guests attended a VIP reception to celebrate the inaugural Welding Technology Program at Universal Technical Institute (UTI) Rancho Cucamonga. It is the first in the school’s nationwide 12-campus network and was launched in partnership with industry leader Lincoln Electric.

UTI Rancho’s inaugural welding class celebrates the program with UTI leadership, City of Rancho Cucamonga Mayor L. Dennis Michael and County of San Bernardino Second District Supervisor Janice Rutherford

“We are filled with pride to see the students enrolled in this welding program grow in their skills, and are here to celebrate their accomplishments and our partnership with Lincoln Electric,” said Roger Speer, president of the UTI Rancho campus and vice president of operations for UTI’s Region III. “There is an incredible demand for skilled welders in the Inland Empire, and this program, along with the advanced weld-

1,000+ Students Registered for CREF Spring Career Fairs

The Collision Repair Education Foundation announced that more than 1,000 students have registered for its first three spring career fairs being held in Tampa and Miami, FL, and San Antonio, TX, during February and early March. The current Spring 2018 schedule includes: • Feb. 14 – Tampa/Orlando, FL – Hillsborough Community College • Feb. 16 – Miami, FL – Robert Morgan Education Center & Technical College • March 1 – San Antonio, TX – Judson High School • March 16 – Los Angeles, CA – SEMA Headquarters Office • April 6 – Chicago, IL – Tech-Cor • April 7– Phoenix, AZ – LKQ • April 13 – Denver, CO – Manheim • April 18 – 19– Greensboro, NC – North Carolina SkillsUSA State Competition • April 24 – Atlanta, GA – Maxwell Technical High School • April 26 – Boston, MA – Assabet Valley Technical High School • May 16 – Nashville, TN - TBD • Dates & Locations TBD: Dallas, TX; Houston, TX

ing technology provided by Lincoln Electric, offers them the best opportunity for success in the industry.” The audience of local and regional education representatives, employer partners and community leaders joined UTI’s staff, instructors and inaugural class of students to celebrate. They all watched as the honorable City of Rancho Cucamonga Mayor L. Dennis Michael and County of San Bernardino Second District Supervisor Janice Rutherford addressed the group about the demand for welders, regional economic impacts, and cut through a custom 6-ft. steel ribbon. “Technical careers are the backbone of our region’s economy, and as a city, we feel secure knowing that UTI is dedicated to educating our local workforce in order to bridge that gap,” said Mayor L. Dennis Michael. “Our region is one of the fastestgrowing in the nation for jobs, and while many young people have been leaving the state to pursue their careers, I hope that you will stay and fill one of the many positions,” said County of San Bernardino Second District Supervisor Janice Rutherford. Following the celebration, guests were given the opportunity to tour the new state-of-the-industry welding lab and put their own welding skills to the

test with hands-on demonstrations using VRTEX 360 virtual reality training machines. Welders are increasingly in demand in industries ranging from automotive fabrication and motorsports to

County of San Bernardino Second District Supervisor Janice Rutherford tested her welding skills with the Lincoln Electric virtual reality welding machines and received a grade on her work

aerospace, energy and virtually every kind of manufacturing. Between 2016 and 2026, industry will need to fill more than 458,000 new and replacement positions.* This is just the beginning. In March 2018, the inaugural class will graduate with the UTI Advantage – “Chosen by Industry. Ready for Work.” *Source: Based on data compiled from the U.S. Bureau of Labor Statistics, Employment Projections,www.bls.gov, viewed Nov. 2 2017. Included the new number based on the PDFs.

Collision Safety Consultants Opens 8 New Locations

Billy Walkowiak, founder and CEO of Collision Safety Consultants (www.collisionsafetyconsultants.us), announced the opening of the company’s eight new locations. These openings bring the total to 12 U.S. locations and two international locations. • Collision Safety Consultants of Southern Arizona - Juan Aragon • Collision Safety Consultants of NSW Australia - Graham Judge • Collision Safety Consultants of Coastal Carolina - Butch Jones • Collision Safety Consultants of Northern Florida - Marty Smith • Collision Safety Consultants of Illinois - Daniel Resendiz • Collision Safety Consultants of Central Indiana - Tony Fuller Sr. • Collision Safety Consultants of Virginia - Matt Dragoo • Collision Safety Consultants of West Virginia - Steven Krieps “They will be advocates working with lawyers, body shops, vehicle owners and auto dealerships. They will also assist shops to improve quality control by advising them and helping them locate and preform proper repair procedures.”

12 MARCH 2018 AUTOBODY NEWS | www.autobodynews.com

Continued from Page 10

Kniesel’s Collision

distributing holiday meals to employees and their families. “We’re not in the business of doing things for free, but we are in the business of taking care of people,” Endres said.

Pride in the Work Today, the company includes a third generation of Kniesels who work in various departments, inheriting the business culture their predecessors have spent decades establishing. Kniesel said in the 50 years he’s had this place, he’s never had to fire anyone, preferring to work alongside employees rather than being the boss. In relaying the family’s story, in so many ways intertwined with the business’s story, Kniesel often cut himself short, worried he was delving into too much detail or boasting. “There’s so much I could (say), but then I feel like I’m bragging,” he said. “But I’m just happy about the way I treated people.” We thank Placer Herald for permission.

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Minidoka School District Approves New Charter School in ID by Laurie Welch, MagicValley.com

Minidoka County School District’s board of trustees approved a second charter school geared toward industrial classes that provide certifications to students. The new charter school will benefit schools across the Magic Valley and was driven in part by Magic Valley industries clamoring for workers. The new charter school, Advanced Regional Technical Education Coalition Industrial (ARTEC-I) Regional Professional Technical (RPT) Charter School, will split from the current ARTEC RPT school, sponsored by Minidoka County School District. The reasons for the split are twofold, Ken Cox, superintendent at the district, said. The current charter school has exceeded the number of students the state will reimburse it for and industry demand for industrial courses is increasing. The new charter school will better meet the needs of the high schools, the College of Southern Idaho, students and parents, he said. The original ARTEC charter school provides funds to Magic Valley schools to support the added costs of the advanced courses offered, Cox said. The expansion will occur over the next couple of years.

ARTEC Principal Andy Wiseman said that for the past several years, the charter school has “maxed out” its enrollment allowed by the charter. Creating a second charter school will essentially double the funding received by the state, Wiseman said. ARTEC has a budget of $1 million, which includes some grant funds. Last year, the charter school received $179,000 in grants.

Mike Searle provides boiler training to a group of students at Minico High School during and industrial maintenance class at the school. The class will likely become part of the new ARTEC-I charter school. Credit: Minico High School

“We are currently at the stage of awaiting final approval from the State Department of Education, and preparing applications to send out to all the public and private high schools in the Magic Valley to determine which programs should be included in one of the two re-

Hundreds of Automotive Scholarships To Be Awarded: Apply by March 31

The University of the Aftermarket Foundation is now accepting applications for automotive scholarships at its Automotive Aftermarket Scholarship Central website at: www.automotivescholarships.com. The application deadline is March 31, 2018. Interested candidates can view a wide array of scholarship opportunities, ranging from $1,000 to $10,000, available from the University of the Aftermarket Foundation and more than 30 industry organizations. Hundreds of scholarships are available for students enrolled in four-year and two-year colleges as well as ASE/NATEF-certified automotive, collision and heavy duty post-secondary schools. By completing a single application online, students can be considered for multiple scholarships for the 2018–19 school year. A full list of scholarships is featured on the Automotive Aftermarket Scholarship Central home page with links to pages outlining each organization’s scholarship details, eligibility requirements and

awards. To apply for as many scholarships as possible, applicants should read the individual pages thoroughly to ensure they include the proper information required by each organization. “Every completed scholarship application is reviewed by all the organizations where the candidate meets the qualifications. Last year, more than 50 students received multiple awards from one application,” said Pete Kornafel, MAAP, chairman of the University of the Aftermarket Foundation scholarship committee. “We are pleased to be able to offer so many scholarship opportunities for the 2018–19 school year and encourage interested students to apply today.”

For more information about the University of the Aftermarket Foundation and available automotive scholarships, visit: www.UofAFoundation.com and www.automotivescholarships.com

www.autobodynews.com

14 MARCH 2018 AUTOBODY NEWS | www.autobodynews.com

gional technical charter schools,” Wiseman said. In the fall they expect to have between 100 and 200 students enrolled in the new charter school, he said. “ARTEC has been an asset in providing expanded opportunities for Magic Valley students who are interested in career technical education courses and careers,” Dale Lane, Jerome School District superintendent, said in the release. “I anticipate the expansion of ARTEC impacting more students in a positive manner.” ARTEC RPT has 420 part-time students in nine high schools in the Magic Valley including Minico High School, Cassia Regional Technical Center, Buhl High School, Canyon Ridge High School, Dietrich High School, Gooding High School, Jerome High School, Kimberly High School and Twin Falls High School. “This is an exciting time for ARTEC. This expansion will allow us to better serve our students and local industry,” Michael Arrington, ARTEC board chairman, said in a press release. ARTEC programs include automotive repair, health occupations, electronics, construction, auto collision repair, cabinetry, information technology, finance and diesel repair. Wiseman said the charter schools allow students to try out careers, some-

times through internships, and helps companies fill employee gaps. The charter school essentially leases the teachers for the charter school to teach the program courses, which allows the school districts to use that salary money to hire more teachers, Wiseman said. “It frees up some of their dollars,” Wiseman said. The only downside to the new charter is more paperwork, he said. The charter school’s board meets in Twin Falls and has representatives from business, the College of Southern Idaho and school superintendents. Some of the courses for the new school that may be considered in the next few months are Industrial Maintenance and Operations, an apprenticeship program offered at Minico High School, welding fabrication available at many high schools across the Magic Valley, culinary and food science courses, small engines, engineering and others. Culinary and food science courses are needed due to the increased demand in the area. Schools, teacher, businesses and parents are encouraged to reach out to Wiseman via email with course suggestions to Wiseman@csi.edu. We thank MagicValley.com for reprint permission.


www.autobodynews.com | MARCH 2018 AUTOBODY NEWS 15


Continued from Cover

Cautionary Tale

man restoration shop where Alex started working at age 12. After high school, Alex took a six-month course on automotive repair, learning a lot of things he already knew, he said. “In the Bronx, people fix their cars right out in the street, and I started working on my friends’ vehicles while I was in high school,” he said. “Back then, we learned by doing, so when I went to auto tech school, I knew a little more than just the basics.” Father and son worked side-byside restoring primarily classic American cars, and pretty soon, the quality of their work brought them more and more customers. After a while, they moved the business out of the city and continued flourishing. “We moved upstate to Prattsville, NY, where we opened J. Alonso Body Shop in a small facility,” Alex said. “I learned how to do it all—disassembly, sandblasting, painting—you name it. We would turn around our restorations in 4–6 weeks on average, which meant that we were working all the time, but the shop was literally 3 feet from our house, so it was convenient. I would take multiple photos at every stage and put together an album for every customer with 200–300 pictures of their restoration, and they loved it! We built a reputation for quality and [fast work].” In 1989, Alex and his father moved to Montevideo, Uruguay to run a restoration and body shop, where the

business took off despite issues along the way. “We worked on cars for the Israeli, Russian and Spanish embassies on mostly high-end European cars,” Alex said. “Armed guards would come and inspect the vehicles after the repairs and stick mirrors underneath them to make sure everything was safe. They called us the gringos and used to tell us, ‘You gringos do good work.’” Uruguay doesn’t make it easy for collision repairers to do their job, Alex said. “There are a lot of DRPs available to shops in the U.S., but in Uruguay, there is just one insurance company and it is owned and operated by the government,” he said. “The insurance adjustors had all the power and they were a nightmare to deal with. They had a monopoly, so they were rude and nasty all the time and we had to fight with them on every supplement—It was awful.” In 2000, Alex moved to Florida, where he had to go back to square one upon his return. “By the time I got back, it was a different ball game and I couldn’t get a job without a work permit,” he said. “So, I had to take a course and prove what I could do, and then the only job that was available paid $8 an hour. I was working in the hot sun outside painting cars for a shop that charged $300 for a paint job. Luckily, I became friends with a couple of the paint reps there and they helped me get a better job. After a couple years, I was making $1,200 a week working flat rate for a

Ford Launches its 1st Plug-In Hybrid Vehicle for Police, Government Customers

Earlier this year, Ford revealed the world’s first-ever pursuit-rated hybrid police vehicle. Now, the company is giving law enforcement an even more efficient option with the reveal of a plug-in hybrid vehicle capable of driving up to 21 miles without a drop of gas. The Special Service Plug-In Hybrid Sedan, the first plug-in hybrid police vehicle from Ford, is designed for police and fire chiefs, detectives and other government personnel whose jobs don’t require a pursuit-rated vehicle. “This is the first Ford police vehicle that can potentially get through an entire shift using no gasoline whatsoever,” said Stephen Tyler, Ford police brand marketing manager. “Anyone

can plug this in to any wall outlet to run gas-and emissions-free on battery-

top shop.” In 2012, Alex experienced back pain, so he went to a chiropractor— but it didn’t solve the problem. Finally, he got an MRI. When he went to the orthopedist to find out the results, they met him at the door. “They told me that I had a tumor in one of my kidneys and that I needed to go to the doctor right away,” Alex said. “They removed it and I thought I was out of the woods, but I was wrong.” Today, Alex has stage 4 kidney cancer and the doctors give him 1–2 years to live. The last doctor he saw told him that he wasn’t willing to do any more surgery at this point, because it would possibly make his condition even worse. He is battling for his life and taking chemo pills every day, keeping his hopes up and proceeding as best he can. “I can’t prove it and I’m not blaming anyone, but I know that the risks I took over all the years finally caught up with me,” he said. “I was a mechanic when I was younger and always elbow-deep in all kinds of transmission fluids, brake fluids, motor oil and carburetor cleaner—you name it. I never wore gloves or any protective gear, because when you’re young, you

think you’re a superhero. But all of that stuff gets into your blood, and where do you think it ends up? Your kidneys—that’s right.” After 25 years in the paint booth, Alex also realizes maybe a little too late that wearing a breathing respirator and a full suit is a must, he said. “In Florida, it gets really hot and humid, so sometimes I would either wear a half-suit or take it off and not wear gloves at all,” he said. “I tell painters now to put that mask on; don’t be stupid the way I was. In the early years, some of the equipment wasn’t all that great, but now with all of these oxygen-supplied air respirators, a painter can be safe all the time. Some shops stay on top of it and make safety a priority, but when things get busy and there are a lot of cars in the shop, it can be discarded very easily.” Staying hopeful and positive, Alex wants painters out there to know that their safety and health should be more important than any paycheck. “I am hoping that painters will read this and learn from my mistakes,” he said. “Don’t take shortcuts and compromise your health, because life is precious and no one is indestructible.”

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ingness to step away from the revenue the Secure Share fees would have generated, which some have estimated as hundreds of millions of dollars. CCC’s Mark Fincher said the “This has never been about the changes were a result of ongoing dis- revenue for us,” Fincher said. “I think cussions throughout last year with the some of the estimates around the revtask force, industry associations and enue opportunity were a bit overincustomers. He said it became clear flated. This was never a revenue play that the announced fees were going to for us. This was truly about securing be a barrier to entry for companies the data. The fee structure was put in adopting Secure Share, and place for us to be able to rethat those costs were going coup, with some level of to be passed on to CCC cusprofit as we stated, the costs tomers. that we put into Secure Share. “Both of those things It was a significant investwere not intended outcomes ment to put the infrastructure that we expected or wanted in place to process thousands from Secure Share,” Fincher of transactions a minute, and Mark Fincher said. “So we made the deciprocess those in sub-second sion to eliminate those fees.” response times. We decided it was best He said it also became clear as to just take on those costs ourselves, 2017 was drawing to a close that with not pass that along to our customers or the announced April implementation the [third-party] app providers. We of Secure Share, “it was inevitable think it’s the best thing for the industhat there was going to be a potential try.” disruption to our customers,” someRisley told Fincher that some may thing CCC “absolutely did not want to view this as CCC backing off for now be the outcome of Secure Share.” on fees after facing a year of public criticism, but that in a year or so it may re-implement some of the changes it is What about the money? Fincher was asked about CCC’s will- halting for now. Continued from Cover

CCC’s Changes

18 MARCH 2018 AUTOBODY NEWS | www.autobodynews.com

“We don’t have that kind of fortisaid most repairers in the industry tude,” Fincher said, drawing laughter “didn’t and still don’t understand the from CIC attendees. “We’re not going implications” that CCC’s plans for Sethrough this again. We made it very cure Share could have had on their public that there will not be a charge businesses nor “how significant CCC’s for Secure Share, now or in the fu- decision to reverse their approach is on ture.” the future of [shops’] businesses as He said the reversal is not entirely well.” altruistic on CCC’s part. The platform CCC’s announced changes, he benefits from expanding the number said, “are exactly why every collision of industry trading partners it con- repairer should be part of a national nects, he said, and eliminating the fees association.” He said whether that’s and other changes will likely SCRS or another group, the increase participation in Sechanges by CCC are a case cure Share. study for why every shop He also said CCC has should be part of some “orga“absolutely no plans” to disnization that can be your continue users’ ability to transvoice, when you’re busy getfer estimate data in the EMS ting your customer’s car out format. at 5 p.m. on a Friday, an orJake Rodenroth “We think obviously at ganization that has your back some point in the very distant future and understands the concerns and unthat our customers will decide there’s derstands who to communicate with not a need for EMS,” he said. “But and how to communicate in a way that we’re not going to make that decision can be effective.” to sunset EMS.” Risley also said that although the CIC task force was originally formed to address issues raised by CCC’s anMore observations Speaking at a Society of Collision Renounced plans for Secure Share, the pair Specialists (SCRS) board meeting topic of “data security” doesn’t go in Palm Springs, Aaron Schulenburg, away now that CCC made changes to the association’s executive director, its plans.


“It’s not about somebody hacking into a shop’s data and grabbing it,” Risley said. “That’s a concern, but the bigger concern is something that happened a few months ago: The John Eagle Collision lawsuit. That shook the dust off the rafters for a lot of folks.” He said that lawsuit over how decisions were made and how repairs were documented is now at the forefront of discussion within the industry, and will be the topic of a presentation at CIC in Atlanta in April. “There’s a tremendous amount of exposure for this industry, and you need to be aware of it,” Risley said. “We as an industry need to figure out a way to address it.”

Example of consequences Also at CIC last month, Jake Rodenroth of asTech (which offers a remote vehicle scanning system) shared an example of potential consequences when a shop “deviates from the [OEM] repair procedures, ignores the [OEM] position statements and [doesn’t] do the scans.” Rodenroth said he recently rented a 2017 Nissan Maxima with 3,000

miles on it, and though there wasn’t a clearly recognizable dash warning light for someone not familiar with Nissan’s systems, he said he realized the blind spot detection system was not warning him about traffic on the freeway. He did some research and found that if the blind spot system on the vehicle is working, the indicators’ lights on both doors are supposed to come on with a key cycle. On the rental vehicle, he said, only one of those lights came on. He then found “questionable” color match, peeling paint and “reassembly issues” on the rear of the vehicle that clearly indicated the vehicle had gone through previous damage and repairs. He scanned the vehicle and found multiple fault codes indicating the blind spot and cross-traffic alerts were not active. “If I had changed lanes, expecting the blind spot system to warn me, what would have happened?” Rodenroth said. “This stuff is happening today, and as an industry, we have to act upon it.”

www.autobodynews.com

Continued from Page 16

Plug-in for Cops

only operation.” The vehicle’s 3.3-kilowatt onboard charger allows agencies to fully charge the 7.6-kilowatt-hour battery in just 2.5 hours on a 240-volt, level-two charger. But Ford is confident most agencies won’t need anything more than a regular 120-volt wall outlet to recharge. The lithium-ion battery can move the vehicle up to 21 miles on a single charge and up to 85 mph on battery power alone. Once the battery runs down, the vehicle is powered by its gasoline-electric hybrid power plant—with a range surpassing 500 miles—eliminating any concerns of range anxiety typically associated with battery-only electrics. The custom interior features heavy-duty cloth front seats with reduced bolsters for officer comfort, and rear anti-stab plates, plus vinyl rear seating and flooring. Other highlights include a reinforced top tray for mounting equipment, metal console mounting plate, red and white task lighting in the overhead console, police engine-idle feature, unique alloy wheels and an auxiliary power distribution box in the trunk.

Several unique options are available for the Special Service Plug-In Hybrid Sedan, including a driver spot lamp, a trunk storage vault, trunk ventilation system and a rear door controldisabling feature. A special dark-car feature turns off interior lighting and allows the dash cluster to be dimmed 100 percent for surveillance, and several emergency lighting packages like those found on other Ford police vehicles are also available. The new Special Service Plug-In Hybrid Sedan joins two other Ford police vehicles revealed this year—Ford Police Responder Hybrid Sedan and F-150 Police Responder. Recently, both successfully completed rigorous testing conducted by Michigan State Police at Grattan Raceway in Belding, Michigan, and Los Angeles County Sheriff’s Department at Auto Club Speedway in Fontana, California. Customers will be able to order the Special Service Plug-In Hybrid Sedan in December, with sales starting next summer.

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George V. Arth & Son Celebrates 140th Anniversary in Oakland, CA by Ed Attanasio

Until another shop can step forward and prove that it has been in existence for more than 140 years, George V. Arth & Son is arguably the oldest continually operated, family-owned auto body shop west of the Mississippi, and maybe even in the entire country. A body shop lasting more than 20 years is considered a good run, and if it can make it to 50, that’s a big deal. Successful body shops with long histories can easily stumble along the way for a wide range of reasons, including changes in the economy, too much competition, family issues or other factors. It’s a volatile business that has changed tremendously within the last decade, so how does a shop not just survive, but thrive for 140 years?

when Henry Ford’s “horseless carriages” began dominating the streets of Oakland. Arth realized rather quickly that they would have to reinvent themselves to survive, so they embraced the technology and began repairing and painting these new motorized vehicles. Arth wasn’t enamored with these new creations and often told people that they were loud and filled the air with smoke, unlike the horse-drawn carriages they had been working on for almost two decades. Today, 140 years and eight generations later, George V. Arth & Son is still repairing cars in Oakland, CA, and flourishing, despite experiencing at least five recessions over the last several decades (including the Great One in the 1930s), two major earthquakes and a professional hometown football team that left, returned and is

George V. Arth & Son began working on horse-drawn buggies, and today they repair hybrid electric vehicles

When George V. Arth opened his shop back in 1877, there were obviously no DRPs, aftermarket parts, supplements, waterborne paint, collision avoidance systems or autonomous vehicles—or even cars, for that matter. It all began when George V. Arth and his family arrived in the San Francisco Bay Area after having made the long journey from Alsace Lorraine, France. A career blacksmith, Arth purchased a small shop named the Oakland Carriage Manufactory and renamed it George V. Arth & Son shortly thereafter. The business was very successful and quickly became well-known for being adept at fixing every type of horse-drawn buggy in existence at that time. Just like today, the vehicles the shop was repairing became more sophisticated quickly. The business model changed dramatically in the late 1890s

now heading out of town again. Having been located at its current address since 1963, the shop has gained major respect in the Bay Area for its longevity and consistent participation in the California Autobody Association since its inception 50 years ago. Ron Arth is the great-grandson of George V. and the shop’s manager today. He began working at the shop as an adolescent alongside his father, George W. Arth, Jr. and his brother, George Arth III. Ron believes that his shop is the oldest in the West, but he isn’t sure if it’s the oldest in the country. A national trade publication had a contest back in the early 1970s and found two older shops located on the East Coast, but that was almost 40 years ago, and Arth has no idea if those two shops are still in business. “To be safe, we just refer to our

22 MARCH 2018 AUTOBODY NEWS | www.autobodynews.com

keep the shop going strong. We fix cars for people whose parents and grandparents started coming here many years ago. When we recognize their last names, it’s always satisfying.” George W. Arth, Jr. was also one of the founding members of the East Bay Autobody Association, now known as the East Bay Chapter of the To survive for 14 decades, you need to rely on a good, California Autobody Associareliable crew tion. Ron’s father served as the many body shops, or even mechanical organization’s president and was on the shops, that have been in continuous opboard of the association for many years eration for 140 years.” before finally retiring. Ron has folWhen his father, George W. Arth, lowed in those same footsteps by servJr., stepped down and retired on his ing on the organization’s board and as 65th birthday, Ron took on full represident of the association for several sponsibility and management of the years as well. shop. His father is still going strong at Arth cites several reasons for the age 86 and stops by the shop on a regcompany’s longevity and ongoing ular basis—usually three to four times success, and customer service is right a week—just to check in, Ron said. at the top of his list. “My father still plays a role here “The fact that we’ve always been and actively attends Oakland Rotary a family-run business is important,” he meetings every Thursday,” Ron said. said. “People like to see the same faces “These connections to the city were every time they bring their car in. It built over years and years of living and provides them with a sense of stability See 140th Anniversary, Page 27 working here, and they still help us shop as being the oldest family-owned shop west of the Mississippi,” Ron Arth said. “I can’t imagine that there are very


www.autobodynews.com | MARCH 2018 AUTOBODY NEWS 23


Pacific Collision Equipment Co.™ Opens New Training Facility in Signal Hill, CA by Autobody News Staff

Robert Hornedo, President of Pacific Collision Equipment Co., recently opened a new 2,000-square-foot train-

Students practicing aluminum welding

ing facility in Signal Hill, CA. All classes are offered in English and Spanish. The training center utilizes everything in the Car-O-Liner product line, including the following equipment:  BenchRack  Car-O-Tronic  CTR7 Spot Welder  CTR12000 Spot Welder  CMi 273 MIG Welders x 3 set up for steel, aluminum and silicone bronze  Plastic Repair System  Aluminum & Steel Repair System  Aluminum Vacuum  Weld Fume Extraction Unit Although Pacific Collision Equipment Co. provides in-shop training for new equipment purchases, employees who were not present or were newly hired by the company’s customers need training as well. To accommodate the high demand for new employee training, Hornedo opened the training center. Shops that make the investment in their business with advanced modern equipment understand the need for well-trained technicians. Pacific Collision Equipment Co.’s classes include hands-on practice, PowerPoints, videos, and often, a proficiency test.

Pacific Collision Equipment Co. also offers a damage analysis class. This course covers the changes in collision repair that have taken place in the last couple of years due to the proliferation of advanced high-strength

steels. It also discusses how they affect the way estimates are written. Best of all, this class is free of charge. The topics discussed are as follows:  Collision damage analysis  New metals and how they affect the estimating process  Improving your estimate and the documentation required  Suspension diagnostics  Measuring lower and upper body  Pulling force isolation with Advanced High-Strength Steels  Frame rail replacement / sectioning/ bonding / riveting with precision and documentation  Vehicle set-up—what it takes to set up a vehicle and why 4-point anchoring is no longer the norm  Truck set-up All of Pacific Collision Equipment Co.‘s classes have been well-received and are filling up quickly, thanks to the low cost compared to others, the I-CAR Alliance Credits offered and word-of-mouth success.

to weld? Did you also know that there are some OEMs that state 4-point an-

First "Basic Car-O-Tronic" class conducted at the new Training Center

choring is no longer acceptable? There are good reasons for these

changes, and you need to know why. Pacific Collision Equipment Co. offers damage analysis seminars and classes for its bench system, measuring systems, spot welders, MIG welders, plastic repair, aluminum dent repair and EVO Universal Fixture Kit, which enables users to fixture vehicles without renting fixtures. For more information or to reserve your space, call 562-490-2120. I-CAR Alliance courses earn I-CAR points, available through I-CAR’s website: https://www.i-car.com/

The training center offers the above listed classes

FOR SALE ENGINE REBUILDING SHOP Tom Balliet, Instructor for Aluminum and Steel Repair demonstrating an aluminum dent repair

Sales have also been quite strong as Car-O-Liner gains more OEM approvals. In fact, Car-O-Liner has more OEM approvals than any other equipment company thanks to its innovative precision bench system and accurate repeatable measuring, which includes upper body like no other system in the world. Vehicle technology has surpassed the ability to use older equipment efficiently, and in some cases, older equipment should not be used at all for any late model vehicle. For example, did you know that Chrysler said MIG welding should not be used on its vehicles unless absolutely necessary, due to a spot welder not being able to reach the area

24 MARCH 2018 AUTOBODY NEWS | www.autobodynews.com

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Continued from Page 11

Hawaii Bill

bill. He said the company’s main concern is due to the part of the bill that states that parts that are recommended have to be used for insurance-paid repairs. “No bill has ever been introduced in any other state with similar language. It’s very apparent that it’s a bill that will attempt to increase the market share of the car companies,” he stated. “Today, the car companies own 64 percent of the market share while the salvage industry, the remanufacturing industry and the aftermarket industry own the difference… it would essentially legislate a monopoly, and that’s the concern that we have. We’re in the business of providing a lowercost alternative for consumers, so if you state that the insurance companies must pay the difference, then you eliminate the only benefit to our industry. We also prevent vehicles from being declared a total loss because we provide a lower cost alternative to keep the cost below the total loss threshold… we also stimulate competition.”

The general manager for Geico, Tim Dayton, also spoke during the hearing. He said the cost of auto insurance in Hawaii, compared to the rest of the country, is the 25th-highest. If this bill passes, Dayton said two things will happen. “Number one, it will eliminate aftermarket parts use in Hawaii and second, insurance premiums will go up dramatically,” he said. Takemoto testified during the committee hearing as a representative of the Automotive Body & Painting Association of Hawaii. “This bill does not prohibit the use of aftermarket parts by an insurer or anyone else… They can still compete and the marketplace stays the way it is, in my opinion,” he stated. “Basically, all it is doing is not allowing the transfer of the increased cost to the insured or the claimant when they choose not to use aftermarket parts.” In regard to insurance premiums and the cost to the public, he said there are many different insurance companies in Hawaii, and most of the local companies do not pass this cost on to the driving public in Hawaii. “It’s mainly a couple of larger mainland national insurers who are

26 MARCH 2018 AUTOBODY NEWS | www.autobodynews.com

using this practice of passing the cost on,” he said. Testimony was also provided by Sabrina Dela Rama, president of the Automotive Body & Painting Association of Hawaii and manager of Tony Group Collision Center in Waipahu. “I am in strong support of this bill and the reason for it is consumer safety,” she said. She explained to the committee why consumers should be able to choose which vehicles they put their families in. “The insurance industry has been able to tell the consumers that it’s law,” she stated during her testimony. She said it can be written in the policy, but when you are putting the cost on an innocent claimant, who does not have a policy and doesn’t have a choice because the insurance industry says it’s the law, then that isn’t the right way to use the law. Instead, she said consumers should be able to make their own choice and shouldn’t have to pay out of pocket. “I think this bill makes it a fair playing field,” she said. She also pointed out that many of the local insurance carriers do not use aftermarket parts, and are still com-

petitive. Dale Matsumoto, owner of Auto Body Hawaii on the Big Island, also spoke in support of the bill. “Safety is a huge factor,” he said. “The safety and well-being of Hawaii’s people should not be jeopardized no matter what… The cost is the cost… There is no proof that there is going to be an increase in cost to the rates, but there is already written proof that the use of aftermarket parts will increase a second collision.” Brandon Okahara, co-owner and vice president of Oka’s Auto Body in Waipahu, also submitted testimony in support of the bill. “When HRS 431:C-313.6 was originally introduced back in the midto- late ‘90s, vehicle design and construction were nowhere near what they are today. The statement of ‘Like-kind and quality’ is now questionable when comparing an aftermarket part to an Original Equipment Manufacturers (OEM) part,” he said. “Components such as bumpers, hoods and reinforcements are methodically crash tested by the OEM, and the entire safety system is engineered around multiple OEM components reacting in a calculated,


predictable manner. To the best of my knowledge, the same testing and engineering have not been tested by the aftermarket parts suppliers to confirm that they perform as the same safety cell that the OEM intended; thus, leaving the vehicle owner uncertain if their vehicle will react, as designed, in a subsequent collision. “… it is our responsibility as a collision repairer to return the consumer’s vehicle back to pre-loss condition, following the vehicle manufacturer repair procedures, as well as utilizing replacement parts as recommended by the vehicle manufacturer. Following these stringent guidelines using the OEM recommended parts is the only way to ensure the tuned safety cell will react as it was designed to protect you.” Not all body shop owners in Hawaii are in support of HB 1620. One is Dan Dutra, a partner in Sigs Collision Centers. The Oahu-based company currently processes more vehicle repairs annually than any single business entity in the state of Hawaii, according to Dutra. In his testimony against HB 1620, he said, “The proposed bill makes several assumptions that are false or misleading about aftermarket

parts.” He used the example of a statement in the bill saying that “proper repairs” require the use of parts produced by the manufacturer. “We know this to be false, as ‘aftermarket parts’ such as tires, spark plugs, suspension parts and wheels, among others, are often known to be equal to, or better than, the original equipment parts,” said Dutra. He also said that the bill’s reference to parts not being crash-tested is false. “There are unintended consequences to the proposed legislation that would not be in the best interest of the public,” he stated in the testimony he provided. “Trying to dictate the specific use of any part or procedure, no matter [how] good the intention, will do just the opposite and raise costs to all consumers.” Supporters of the bill counter that HB 1620 does not have any effect on parts such as tires, spark plugs, etc. Instead, they said it focuses on crash parts and currently, the law does not give consumers a choice. Autobody News will continue to follow this story and share updates about the bill with readers.

the estimates themselves, but now we write most of them and often take the place of the insurance adjuster.” What is one of the biggest changes in what is usually a stressful situation. in this industry? It also allows us to build relationships, “It would have to be the technolwhich really are the foundation of our ogy, definitely,” he said. “I remember business.” when my father used to have to get a Repairing more than 80 cars ledger sheet from our bookkeeper at monthly and employing 12 people, the end of every day [to know] exactly where he stood financially. Then one day I showed him that we could do the same thing with just a couple of clicks of a mouse. He was shocked, but we assured him it was just as accurate, if not more so. With the variety of new computer management systems available today, it not only makes us better owners George V. Arth & Son has a great history, and until another and operators, but saves us shop steps up and proves that it’s older, it can safely call time with the overall estimatitself the country’s oldest collision repairer ing and repair process.” Ron has also seen a definite change in The future looks promising for the relationship between body shops the shop as it continues its legacy. and insurers. “We’re incredibly proud of our “Obviously, another one of the history and our connection with Oakbiggest changes that I’ve seen in this land, “ he said. “Our industry continindustry is the introduction of Direct ues to change drastically, but I’m Repair Programs (DRPs),” he said. excited and optimistic about what the “The insurance companies used to do next decade has in store for us.” Continued from Page 22

140th Anniversary

www.autobodynews.com | MARCH 2018 AUTOBODY NEWS 27


Hey Toby! Kool Tools: SEMA 2017 with Toby Chess

It’s that time of the year again for Kool Tools of SEMA 2017 & more. Kye Yueng and I walked the floor of SEMA last November looking for unique and helpful tools that will benefit the collision industry. We purchased all the tools (except for the Prospot welder and Dent Fix Maxi) to give them a try. I will tell you that some of the tools that we purchased did not meet our criteria for ease of use or did not work as advertised. Let’s start with the Mason Battery-powered rivet gun. I have purchased a number of pneumatic rivet guns (criteria: Take a ¼” rivet and pull over 4,000 lbs). Some worked great (Taurus 4 from Reliable Automotive Equipment is the Ferrari of rivet guns) and one jammed after two rivets. Some would not pull 4,000 lb structural rivets, and the ones from Mason and Dent Fix worked well (if the Taurus 4 is a 10, the Mason and DentFix are 8+). I came across a battery-operated pull rivet gun from Mason.

Fig 1

The specs on this gun are as follows: 1.181 in. (30.00mm) Stroke, 4,600 lb. (20.46kN) Pull Force, approximately 30 min Recharge Time,

20V / Li-ion / 2.0 Ah Battery Pack, Fastener Type: 3/16 Inch to 1/4 Inch Open End Blind Rivets. This rivet gun worked as advertised. It had no prob-

Toby Chess is an I-CAR program instructor, Training specialist, and former salvage yard operator. Toby is universally known in the collision industry for his work with first responders and advocacy for body shops and consumers. He can be reached at tcspeedster@gmail.com

lems pulling a 4,000 lb. structural rivet (I rate this battery powered unit as a 10). It is not on any manufacturers’ certified programs, but it should be. Here it is in action. (Fig 2-5) Call 800-826-2884 for a quote and tell them that you were sent by Toby and Kye for a special SEMA price. The next Kool Tool is from NES.

Alpha Tools has a flush-cutting blade. See Fig 9

Fig 9

I used this with a 4 ½ grinder to remove structural blind rivets. It will cut the rivet head off and mandrel can be punched out. It does score the aluminum. See Fig 10

Fig 6

This is the complete kit from NES Tools (www.nes.co.il/products/). We listened to the sales pitch from one of the salesmen at SEMA. He stated, “These hand tools automatically adjust to any threads diameter and pitch, can be used on left and right hand threads, both inch and metric, and need no prior measurement of the thread. Often the thread of component is damaged at the end of the thread, preventing the use of taps or dies for carrying out the repair. Nes external and Nes internal thread restorers have the capability to enter BELOW the damaged area and work outwards to complete the repair.” Kye purchased the complete kit and used it the next week in the shop. He has a rivet gun (cost over $450) and if the jaws are not screwed down

tightly, the threads are severely damaged and not repairable. In other words, a new rivet gun would have to be ordered. Kye used the internal thread restorer and was able to fix the gun. The kit was paid for with just one repair. See Figs 7-8 NES Tools contact number is 905-812-9090. Moving on to the next tool from Alpha Professional Tools.

28 MARCH 2018 AUTOBODY NEWS | www.autobodynews.com

If you tilt the cutter at an angle, it will grid the head right off. Here is the web site - www.alpha-tools.com/ Pages/ProductDetails.aspx - PageCode=1850. Moving on to our next item from 3M. 3M came out with a 360 degree wand kit for its cavity wax. See Fig 12

The Kit has three lengths for various applications. See Fig 13. When you are finished, hang the wand back into the plastic container and the material in the wand will drain to the bottom. The next product we want to look at is from Q Bond.

Fig 14

There are a number of these “super” glues on the market and they are all very good, but Q bond is a step above them all. Q Bond can be used just as an adhesive or with reinforcing powders that will allow you to repair almost anything. Uses : Black powder

to repair bumper, grilles, radiators, motorcycle fairings, electrical switches, door handles, distributor caps and so much more. You sprinkle a little of the reinforcing power on the area that you want to bond and then add the glue for an unbelievable adhesive joint. Kye repaired a trim panel fastener that has broken. See Fig 15 & 16

I checked it out after it had been repaired, and it was just like new (strength-wise). Available on Amazon. The next item was not at SEMA 2017 (could not make the deadline for obtaining a booth at SEMA), but both Kye and I want to show it—a car dolly from Ajon. See Fig 17 What makes this system different

is that it bolts to any frame rails (front or rear) and the double wheels articulate for moving a vehicle over uneven surfaces. See Fig 18 with a vehicle being loaded onto a flat bed truck. Contact John at 714-981-760. The next tool from SEMA 2017 are the “Spring Tools” Here are the specifics:

• Double-ended prick punch utilizes small cylinder for controlled slight indentation for spot marking: center punch utilizes large cylinder for maximum impact that creates deep indentation for drilling • Hammerless action ensures accuracy See Kool Tools, Page 32


www.autobodynews.com | MARCH 2018 AUTOBODY NEWS 29


H OND A C AL I FO RN I A

AutoNation Honda Co sta M es a

866-411-4759 714-434-5270 Dept. Hours: M-F 7-7; Sat 8-5 kleines@autonation.com

AutoNation Honda Roseville Ro se vi l l e

800-262-3201 916-783-5628 Dept. Hours: M-F 7:30-6; Sat 8-5:30 autonationhondaparts@hotmail.com

Barber Honda Ba ke rs fie l d

661-396-4235 Dept. Hours: M-F 8-5:30 bestchoice@barberhonda.com

First Honda Si m i Va l l e y

888-523-0698 805-584-6646 Dept. Hours: M-F 7-6; Sat 7:30-5 hondaparts@firstautogroup.com

Galpin Honda M i ssi o n H i l ls

800-GO GALPIN 818-778-2005 Dept. Hours: M-F 7:30-6; Sat 8-2 mteeman@galpin.com

Honda Cars of Corona Co ro n a

800-557-3652 951-734-9045 Dept. Hours: M-Sat 7-5 terry.love@pscauto.com

AC U RA C AL I FO RN I A

Acura of Fremont F rem o n t

888-435-0504 510-431-2560 Dept. Hours: M-F 8-6; Sat 8-5 mike.ohare@acuraoffremont.com

Acura of Pleasanton Pl e a sa n to n

888-985-6342 925-251-7126 Dept. Hours: M-F 7:30-6; Sat 8-6 mitch.cash@hendrickauto.com

30 MARCH 2018 AUTOBODY NEWS | www.autobodynews.com


Please contact these dealers for your Honda or Acura Genuine parts needs. C AL IFOR N I A

CAL IFO RNIA

C ALIF OR N IA

WASH I NG TO N

Honda of Hollywood

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University Honda

Ho llywo o d

S an Die go

D av i s

Au b ur n

800-371-3719 323-466-3205

858-565-9402

253-288-1069

jgardiner@pacifichonda.com

800-585-8648 530-758-8770

Robertson Honda

Dept. Hours: M-Sat 8-6; Sun 8-5 dfortier@uhdavis.com

Dept. Hours: M-F 8-6 parts@hondaofhollywood.com

Nor t h Ho lly wo od

Honda of Oakland Oa kl a nd

510-547-8047

800-508-3894 818-301-3511 Dept. Hours: M-F 7-6; Sat 8-5

Dept. Hours: M-F 7-8; Sat 7-6

Honda of Pasadena Pa sa de na

800-433-0676 626-683-5880 Dept. Hours: M-F 8-6; Sat 8-4

Honda of the Desert

IDAH O

Larry H. Miller Honda B o is e

San Francisco Honda

888-941-2218 208-947-6060

S an Fra nc is co

415-913-5125 Dept. Hours: M-F 8-5 partsws@sfhonda.com

Scott Robinson Honda To rra nc e

Hinshaw’s Honda Dept. Hours: M-F 7-6; Sat 7:30-4:30 rickb@hinshaws.com

McCurley Integrity Honda Ri ch l a nd

800-456-6257 509-547-7924 Dept. Hours: M-F 8-5:30; Sat 8-4 hondaparts@mccurley.net

Dept. Hours: M-F 7-6; Sat 8-5

South Tacoma Honda

N EVAD A

Findlay Honda

Tac o ma

La s Ve g as

Ca the dra l City

310-371-8320

760-770-0828

Dept. Hours: M-F 7-6:30; Sat 7-5 mluna@scottrobinson.com

702-982-4260

888-497-2410 253-474-7541

Dept. Hours: M-F 7:30-5:30; Sat 8-5 fsanchez@findlayauto.com

Dept. Hours: M-F 7:30-6; Sat 8-5 bgregory@southtacomahonda.com

Selma Honda

Findlay Honda Henderson

Dept. Hours: M-F 7-6; Sat 7-5 mpartridge@honda111.com

Larry Hopkins Honda

S el m a

Su nnyva le

800-717-3562 559-891-5111

408-720-0221 408-736-2608 Dept. Hours: M-Sat 8-5 parts1@hopkinsdirect.com

Dept. Hours: M-F 7-6; Sat 7:30-4:30 hondapartsmgr@selmaautomall.com

Sierra Honda

Metro Honda

Mo nrov i a

M ontcl a ir

800-322-8540 626-932-5614

800-446-5697 909-625-8960 Dept. Hours: M-F 7:30-5:30; Sat 7:30-4 wholesaleparts@metrohonda.com

Ocean Honda

South Bay Honda Mi lpit as

877-475-1142 408-324-7460

Dept. Hours: M-F 7-6; Sat 8-4:30 mickw@oceanhondasantacruz.com

Dept. Hours: M-F 7:30-5 parts@southbayhonda.com

C AL IFOR N I A

Dept. Hours: M-F 7-6; Sat 8-5 fhhparts@findlayauto.com ORE GON

Lithia Honda of Medford

Dept. Hours: M-F 7-6; Sat 8-4 parts@sierracars.com

831-464-1800

Sa nta Cr u z

H e nd e r so n

888-234-4498 702-568-3531

CAL IFO RNIA

M ed f o rd

888-471-7445 541-770-3763 Dept. Hours: M-Sat 7:30-6; Sun 10-5 medfordhondaparts@lithia.com

H AWAII

N EVADA

Acura of Riverside

Bakersfield Acura

Acura of Honolulu

Rive r sid e

B akers f i el d

H o no l ul u

H en d e rs o n

888-701-0725 951-688-1500

661-381-2600

866-931-9086 808-942-4557

877-770-5873 702-982-4160

Dept. Hours: M-F 7-8; Sat 7-5 Ricardo.pena@hendrickauto.com Mark.reed@hendrickauto.com Jason.torres@hendrickauto.com

AutoNation Acura of South Bay To rra nce

310-784-8680 Dept. Hours: M-F 7-6; Sat 8-5 iwashitas@autonation.com

Dept. Hours: M-F 7:30-5:30 bakersfieldacuraservice@yahoo.com

Marin Acura

Dept. Hours: M-F 8-5; Sat 8-4 Johara@lithia.com Tokuda@lithia.com

Dept. Hours: M-F 8-5:30; Sat 8-4 parts@marinacura.com

Metro Acura Mo nt c lai r

800-446-5697 909-625-8960

Dept. Hours: M-F 7-6; Sat 8-4 jmoore@findlayauto.com WASH I NG TO N

C or t e Mad era

800-77-Acura 415-927-5350

Findlay Acura

IDAH O

Lyle Pearson Acura

Hinshaw’s Acura F i fe

B o is e

253-926-3331

800-621-1775 208-377-3900

Dept. Hours: M-F 7-6; Sat 8-5 johnny@hinshaws.com

Dept. Hours: M-F 7:30-6 acuraparts@lylepearson.com

Dept. Hours: M-F 7:30-5:30 wholesaleparts@metrohonda.com www.autobodynews.com | MARCH 2018 AUTOBODY NEWS 31


that fits on anything that has a handle. It is called Re-Grip. See Fig 25

Continued from Page 28

Kool Tools

and precision control for superior results • 3,500 lb. of impact-striking force • Outstanding precision and control while being safe and easy to use Available from Amazon or company website (springtools.shptron.com). Next item is from GRYPMAT

These material trays hold tools up to a 70 degree angle with no magnets. The high-friction material protects surfaces and tools alike. Works great when disassembling or reassembling a vehicle. Fig 23 is the Tape Caddy from

Fig 23

Collision Edge (https://www.collisionedge.com) The Tape Thing is an exciting, patented MAGNETIC tool that sticks tape to booth walls, prep carts, tool boxes, or any other metal surfaces. Tape spools off easily from your hand too! Use this in conjunction with Collision Edge’s other product, The Tape Caddy, and keep everything a paint tech uses directly on the hip. They can be reached at 770-328-5666. The next kool tool is from Aria Tools. These are stainless steel and can

that it is extremely easy to learn and produces a great-looking weld. Another great tool I found was

Fig 25

Re-grip comes in three sizes and installs in less than a minute. It adds comfort and efficiency to any handled tool. Here, I installed on one of my

Fig 26

Fig 30

Welder. Why dual or double-pulse welding? Welding with the use of MIG/MAG method with double pulse

Fig 27

hammers. Available from Amazon. A couple of years ago, I reviewed this dent pulling system from Prospot International. It uses low voltage to secure the pulling keys (very little burn-through on the back side). You are able to place the keys close together, whereas with the body pins, you can only use one at a time to pull. The body pins heat up the metal on the backside to over 1,600 degrees

Fig 28

Fahrenheit and will destroy any corrosion protection on the backside of the panel being repaired. DentFix manufactures a dent-pulling system called the “Maxi” that has been on the market for a number of years. See Fig 28 It has the pulling pins, wiggle wire and single pulling rod. A very nice compact system, but has older technology and is not as efficient as the newer pulling systems, like the ProSpot unit. The other advantage is

Fig 24

be rebuilt. They work on both industrial and automotive air fittings. They also have high flow for HVLP air guns. Aria Tools can be reached at 510-730-2584. See Fig 24. As I was walking through the aisle, the demo on the next item caught my eye. It is a rubber sleeve

out with some upgrades for its MAXI at the SEMA 2017 Show. They developed a hand-held puller, a key attachment bracket and a pulling bar to augment the MAXI. These are great additions to the current MAXI dent pulling equipment. Available from DentFix (https://www.dentfix.com). The next item that premiered was its latest MIG welder. See Fig 30 and 31 This welder is a dual pulse MIG

Fig 29

the cost, which is lot less than the key pulling system. Well Dent Fix came

32 MARCH 2018 AUTOBODY NEWS | www.autobodynews.com

Fig 31

allows us to achieve a high level of weld bead (scale effect). See Fig 32 Benefits of double-pulsed welding: 1. Welding with the use of the MIG/MAG method with double pulse is faster than traditional MIG welding 2. Welding with the use of the

Pulsed MIG

Fig 32

MIG/MAG method with double pulse achieves aesthetic standards as high as the TIG method (same look achieved with TIG welding) 3. Welding with the use of the MIG/MAG method with double pulse causes smaller deformations than the traditional MIG welding The welder has a hot-start function and a crater fill function---same as the Foroius welder, Chief double pulse welder and Car-O-Liner’s double pulse welder. You say, “What is the big deal?” Well, all these welders along with ProSpots SP 5.3, are 220 volt 3 phase machines and this welder works on single phase. I have used this welder, and found

Fig 33

portable short wave infrared heat lamp from Global Refinishing Solutions (520-808-9118). See Fig 33 This heat lamp is all that is advertised and more. This powerful, lightweight tool is ideal for fast spot repairs, but can also be used for a variety of other applications. With the REVO Handheld, you can soften glass seals, heat up a damaged bumper, cure plastic filler in three minutes or less, heat up aluminum to repair aluminumbody vehicles, push out a dent, or remove emblems, vinyl graphics and adhesives. The REVO Handheld allows the technician to get more repairs done faster. I sprayed on high build primer from Kent Automotive on two panels. The first panel allowed it to air dry and the second panel I cured with my Revo light. The second panel was cured in less than two minutes. I sanded the panel with 220 grit sandpaper, and there was no primer transfer on the sandpaper. The first panel was still flashing off when the second panel was cured and sanded. Think about this ladies and gen-

Fig 34

tlemen—A small repair can be primed and sanded in the repair stall and is ready for paint with virtually no down time (for drying) in the paint department. You can also roll-on the primer (needs an additional 5 percent reduction) and the primer is not special product, but your same brand that you use on a daily surface. See Fig 34.


www.autobodynews.com | MARCH 2018 AUTOBODY NEWS 33


Continued from Page 28

Kool Tools

They also have a single head unit and a two head unit. Call the number I have added for additional information. The last item is from Kent Automotive (800-YES KENT). I have conducted the I-CAR welding certification test for over 14 years. The biggest problem I have is our technicians have trouble with their vision. To compensate for this probFig 35

lem, I carry in my truck welding masks with magnifiers. See Fig 35. The problem is the majority of the welding masks being used do not have magnifier holders built into the mask.

So here is a simple solution from Kent Automotive. Magnified safety glasses See Fig 36. These glasses are scratch resistant Fig 35

LIABRA, ABCG Meeting Featured BMW Technical Training, Todd Tracy Presentation by Chasidy Rae Sisk

On Jan. 9, the Long Island Autobody Repairmen’s Association (LIABRA) and the Autobody Craftsman’s Guild (ABCG) held its monthly general meeting at Competition BMW in Smithtown, NY.

of a Lawsuit.” More than 200 collision repair industry professionals attended the meeting. Attendees also enjoyed an Italian buffet dinner before it began, courtesy

Fig 36

safety glasses that have a 2 times magnifier built into the lense. Ideal for MIG welding when the welding mask can not be fitted with a Doppler magnifier. Less than $20.00 So this ends another Kool Tools from SEMA 2017. Kye and I hope that you will find these items beneficial to your shop and we are always on the hunt for new and exciting products.

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Autobody News

LIABRA Executive Director Ed Kizenberger started the January meeting with industry updates and news

Texas Attorney Todd Tracy talked about his 2017 victory in the John Eagle lawsuit

The meeting included a BMW technical repair training seminar as part of LIABRA’s ongoing initiative to provide members with OEM training. The meeting also included guest speaker Todd Tracy, who presented “Anatomy

of the evening’s host, the Competition Automotive Group. The meeting commenced at 7:30 p.m. with LIABRA Executive Director Ed Kizenberger providing some industry news and updates. He reported, “Members of LIABRA’s Workmen’s Compensation safety group received a 30 percent dividend on their Workmen’s Compensation insurance premium this year. In See Todd Tracy, Page 63

Delivering Customer Happiness

DCH Kia Parts: 951.491.2538 Toll Free: 888.474.0468 Fax: 951.491.2589

Mon-Fri: 7am-6pm / Sat: 8am-4pm 26799 Ynez Rd.

34 MARCH 2018 AUTOBODY NEWS | www.autobodynews.com

› Temecula, CA 92591


AAAS Shares Industry Concerns During Florida’s 2018 Capitol Days by Chasidy Rae Sisk

On Jan. 16 and 17, members of the Automotive Aftermarket Association Southeast (AAAS) visited Tallahassee, FL, for the association’s annual Florida Capitol Days to maintain and build relationships with members of the state legislature and discuss important issues affecting the aftermarket industry. According to Matt Ward, Director of Government Relations and Field Services for AAAS, “Our annual Florida Capitol Days event was very much a success. Association staff and members of AAAS spent two days in Tallahassee visiting with members of the executive branch as well as members of the House and Senate. Two of the main topics discussed were how the implementation of new technology is rapidly changing the aftermarket (telematics, embedded software, data collection) and how many businesses in the aftermarket industry are having trouble finding and keeping qualified technicians. “The event met and exceeded our expectations. We had some informative conversations about issues facing the aftermarket with members

of the Florida legislature and executive branch. Members of AAAS, representatives from AAAS and a representative of Auto Care Association, our national association, were all

this event every year. Florida legislators have become very familiar with and receptive of AAAS, thanks to our annual visits. Educating these representatives about our industry is very

AAAS members met with Jimmy Patronis, Chief Financial Officer of the State of Florida, during the group’s annual Capitol Days

present during these important meetings. This was a great kickoff to our annual series of Capitol Day events held in Tallahassee, Jackson, Montgomery and Atlanta, and we look forward to our upcoming visits to our other state capitols.” “Many of our members attend

important should any future legislation arise that may impact our industry,” AAAS board member Jarrett Liles said. AAAS believes its annual Capitol Days are very important to the association’s members and the aftermarket industry at large.

Ward noted, “Maintaining a fair, open and competitive market for businesses in our industry is the primary goal of any AAAS legislative event. It is more important than ever to have a seat at the table when policy that could affect your industry is being discussed.” In other news, AAAS is very excited about the possibility of offering the association’s successful group health plan to members and prospective members in Georgia and Florida. President Trump recently issued an executive order that could potentially drop the state line barriers that have prevented AAAS from offering the program in those areas. “We are closely studying this order and very excited about the possibilities,” Ward shared. “AAAS closed 2017 with record participation numbers in many of our member programs, including the group health plan and group workers’ compensation plans. 2017 was a fantastic year for AAAS, and we are poised for an even stronger year in 2018.” AAAS Capitol Day events are scheduled for Atlanta on Jan. 31, Jackson on Feb. 13 and Montgomery on March 7. For more information about AAAS, visit www.aaas.us.

www.autobodynews.com | MARCH 2018 AUTOBODY NEWS 35


AASP/NJ, WMABA Release 2018 NORTHEAST Agenda by Chasidy Rae Sisk

On Jan. 29, AASP/NJ and the Washington Metropolitan Auto Body Association (WMABA) announced the full agenda for the 2018 NORTHEAST Conference and Trade Show. It will feature the debut of Collision P.R.E.P. (Professional Repair Education Program), which will boast 17 classes by some of the most renowned names in the industry. According to AASP/NJ President Jerry McNee, “As an association, we couldn’t be more thrilled to be offering our attendees such a high caliber of education. This slate of classes is bringing top of the line, national-level education right to our backyards here in the northeast, and if you’re in this industry, you can’t miss it.” Jordan Hendler, Executive Director of WMABA, added, “Our WMABA Board and membership are excited to team up with AASP/NJ to host the Collision P.R.E.P. program and give the Eastern U.S. the opportunity to participate in national-level learning from the industry’s leading experts. It may be a bit of a drive or a short flight, but it will be well worth the effort. If you missed going to SEMA or SCRS’s Repairer Driven Education, then you want to make sure to get you and your team to NORTHEAST!” NORTHEAST 2018 will take place on March 16–18, 2018 at the Meadowlands Exposition Center in Secaucus, NJ. The educational agenda begins on Friday at 2 p.m. with “The Estimate Toolbox: Using FREE Resources to Complete an Accurate Vehicle Damage Repair Plan,” presented by Danny Gredinburg of Database Enhancement Gateway. At 5 p.m., Reliable Automotive Equipment’s Dave Gruskos will offer insights into proper tooling and training by explaining the reasons for OEM procedures during “Riveting and Bonding, and Other Repair Operations and Procedures.” At 7 p.m., Mike Anderson of Collision Advice will present “Write It Right with Life Nuggets to Live By” as he talks about the importance

of an accurate estimate and how to stay positive while navigating the daily complexities of the collision repair industry. He will deliver an encore of this presentation at 12:30 p.m. on Saturday.

Saturday morning will commence with an “OEM Repair Panel: Becoming a Certified Repairer and Understanding the OEM Repair Procedures,” featuring panelists Dave Gruskos, Reliable Automotive Equipment; Aaron Clark, Assured Performance Network; Larry Montanez, P & L Consultants; Barry Dorn, Dorn’s Body & Paint; Bill Hawkins, BMW of Annapolis; and Mark Allen, Audi USA. The panel will be moderated by Gary Wano, Jr. of GW & Son Auto Body. At 12:30 p.m., attendees will have two choices in addition to Mike Anderson’s encore presentation: “Structural Repair Methods—Critical in Today’s Vehicles with Advanced Technologies” by Kelly Logan, Global Data and Content for Solera, and ATI’s Keith Manich’s “Developing and Delivering Effective Written and Verbal Negotiation Practices.” Three presentations will also be available at 3 p.m. on Saturday. Tim Ronak of AkzoNobel Coatings will cover “Severity Doesn’t Matter and How to Manage Insurer Expectations,” while QLC, Inc.’s John Niechwiadowicz and Jerry McNee of Ultimate Collision Repairs will present “Three Keys to Receiving

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UPDATED DAILY

36 MARCH 2018 AUTOBODY NEWS | www.autobodynews.com

Proper Compensation for a Proper Repair and What to Do When They Say NO: Education, Documentation and Collaboration.” A panel discussion on “Diagnostics, Calibrations, and Programming: Understanding Shop Liability in this New Era and How to CYA!” will feature Chuck Olsen of AirPro Diagnostics, Assured Performance Network’s Aaron Clark, Paul Sgro of Lee’s Garage, Larry Montanez from P & L Consultants, and Greg Potter of Equipment and Tool Institute. Continuing the focus on shop liability, Saturday’s agenda will conclude with “Anatomy of a Lawsuit—Crash Testing for Evidence” with Texas Attorney Todd Tracy. Sunday morning’s 10 a.m. options include a repeat of Gredinburg’s presentation, “The Time is Now! An Update on Scanning and Calibration” by asTech’s Jake Rodenroth, and “Developing an Effective Digital Marketing Strategy That Will Grow

Your Business,” presented by AP Media’s Lee Emmons and Brent Betts. At 12:30 p.m., BASF’s John Shoemaker will discuss the “Basics of Blueprinting,” while Jim Saeli of Management Success covers “Social Media Mania.” A third presentation on Structural Repair will also be available, but the presenter has not yet been determined. Registration for the educational courses cost $65 each, and the OEM panel is available for a $150 registration fee. Attendees can also pay $295 for full registration to all courses. The 2018 NORTHEAST Trade Show will be open Friday from 5–10 p.m., Saturday 10 a.m. until 5 p.m., and Sunday 10 a.m. until 3 p.m. and will offer a chance to meet with more than 150 exhibitors. The Exhibitor Appreciation After-Party will be held on Friday night, and the 10th Annual NORTHEAST Family Day will take place on Sunday. Plenty of exhibitor and sponsorship opportunities are still available. For more information or to register for NORTHEAST 2018, visit www.aaspnjnortheast.com.


www.autobodynews.com | MARCH 2018 AUTOBODY NEWS 37


Tips for Busy Body Shops

Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.

Enterprise Shares Company’s Successful Recruitment Strategies with Stacey Phillips

Just over 60 years ago, Jack Taylor Ranging in age from 16–38 (dependfounded Enterprise Rent-A-Car in St. ing on the source), the millennial genLouis, Missouri. eration wants to make a contribution He opened the small business in to the company they work for and unthe basement of a Cadillac dealership derstand why they are doing what they with just seven vehicles. A decorated are doing and how it has an impact. At naval pilot, Taylor named the company the same time, learning new things is after the WWII aircraft carrier on which a priority as well as having access to he had served—the USS Enterprise. additional development and training. Since then, the company has grown to According to a study conducted by include 100,000 employees and nearly LinkedIn and Snagajob, an online em10,000 locations in more than ployment website specializing 90 countries worldwide. The in the hourly marketplace, 71 Taylor family acquired Napercent of the hourly worktional Car Rental and Alamo force is under the age of 30. Rent A Car in 2007 and fully The majority of those who integrated all three car rental were part of the study said brands two years later under they value scheduled flexibilthe corporate parent name En- Pam Webster, AVP ity in a job; 59 percent felt that terprise Holdings, which is flexibility would result in talent acquisition for Enterprise still privately held. higher job productivity. Over Holdings Taylor’s philosophy was half said that learning new to take care of employees and cus- things or having access to professional tomers first, and profits and growth development opportunities would enwould follow. Pam Webster, AVP tal- courage them to stay at their job. ent acquisition for Enterprise HoldClose to 90 percent of millennials ings, said Taylor’s philosophy still said that a reward system during their holds true today. training would boost their engage“He never intended for Enterprise ment, and half said that having friends to be the largest; he wanted us to be the in the workplace would motivate them best,” said Webster. “Jack always said and increase productivity. They also we’re in the people business—not the value regular feedback from their emcar business.” ployer about how they are performing, Webster said an important aspect and 33 percent prefer recognition over of the company’s success has always higher pay. been a focus on building a talent stratWhat are some of the issues egy. With an extensive background in companies are facing in terms of recruiting, Webster shared Enterprise’s recruiting? successful approach during an AkzoNobel Acoat Selected performance Recruiting is not easy, and can group meeting held in San Diego, CA. be challenging in the collision This included the recruitment process, repair industry due to a shortage of employee engagement, training and skilled labor and an aging workforce. development. New vehicle technologies are driving The following information is based significant changes in vehicle repairs, on Webster’s presentation, “Building a which ultimately requires more extenTalent Strategy — Enterprise’s Apsive training for technicians. Currently, proach to Solving Our HR Opportunimore people are leaving the workforce ties,” which was part of AkzoNobel’s than entering it. Whether you are a early bird training sessions held prior to large or small company, not having the the performance group meeting. talent you need to grow and support How would you define today’s the business you are running can make typical job seeker? a big impact. Job seekers today want to work The largest workforce we have where they want, when they want and today—estimated to be about how they want. This is often referred to 77.2 million—is Gen-Y, millennials. as the “free agent” mentality. It’s a

Q: A:

Q: A:

38 MARCH 2018 AUTOBODY NEWS | www.autobodynews.com

challenge, especially for brick-andmortar types of businesses, such as collision repair shops that don’t offer that flexibility. For many job seekers, it is now socially acceptable to change jobs. According to a study by Monster, 70 percent of the workforce is willing to do this. Typically, a 20-year-old will have seven different jobs during their twenties. That makes it tough for employers because turnover is expensive. It costs you money and time, and it impacts your ability to deliver on the services you provide—namely, getting cars repaired and back to their owners. Work/life balance has been found to be more important to today’s job seekers than how much they earn. Employers are finding that workers prefer more flexibility, fewer hours and to make less money. That can be a big challenge.

are job seekers looking employment? Q: forWhere As a business owner trying to find a new hire, sometimes you A: have to step back and put the candidate

hat on. Think about how job seekers who want to work in the collision industry search for jobs. The largest job board today is Google. It’s where most people start their job search. Google is based on keyword relevancy. This determines how information about your company shows up in the search results. Therefore, when you’re posting a job on a job board or aggregator, take time to think about what keywords job seekers will search for. Glassdoor and Indeed are two of the top online sources for potential hires. The majority of job seekers go to these sites to do their research. Glassdoor started as a job review site and expanded to become a job aggregator, while Indeed started as an aggregator and is now a job review site.

You mentioned that Enterprise is Q: in the “people” business. How do you ensure your company hires the

right individual for the job?

Everything we do starts with hirA: ing the right people and making sure we are committed to the long-term

when we make a selection. Sometimes, it’s hard to think this way when you have an immediate need in your business, but we’ve always focused on the long-term. We don’t want to just hire somebody and fill a seat on the bus. Instead, we want to ensure we are hiring the right people because it really does impact the culture if you have constant turnover. We’ve found that it will impact morale and engagement of the other employees. When our business started to grow in the 1980s, we built a formal talent strategy that focused on the entire lifecycle of an employee: selection, onboarding, training and development, performance management and career progression. We knew that if we dropped the ball on any one of these stages, it would impact the business and the bottom line. Because our philosophy is to promote from within, we have a commitment to grow our talent. We asked employees about why they work here, what they like/don’t like, what they are looking for in a company that we don’t offer, as well as what our competitors are offering. Then we defined our employee value proposition. That is what makes us unique as an employer. We built that into our brand and incorporated it into all of our communication, including recruitment marketing and messaging. Once somebody is hired, we focus on their learning path, regardless of the job position. We look at their skills and how we measure them, ensure there is a clear understanding of expectations and what they should deliver each day, build in mentoring and coaching, and have a rewards/recognition program in place. The bottom line is employee performance. If we hire the right people, engage them, and offer training and development, we’ll have better sales, service and growth. 10 best practices for hiring and retaining employees based on the Enterprise model: • Build consistent interview guidelines and questions • Set clear expectations and be transparent about your company • Know what your competitors are See Enterprise Shares, Page 45


www.autobodynews.com | MARCH 2018 AUTOBODY NEWS 39


Continued from Cover

Technicians

that wage and hour claims are governed both by the provisions of the California Labor Code and by a series of 18 wage orders adopted by the Industrial Welfare Commission. Wage Order No. 9-2001 governs the transportation industry, which includes automobile repair. It provides that an employee must be paid for the time during which he or she is “subject to the control of an employer,” whether or not the employee spends all of that time working. The court then noted that, “An employee who brings suit for unpaid minimum wages has the burden of proving that he performed work for which he was not properly compensated.” However, an exception to this general rule applies where an employer fails to keep proper records. In such cases, “the consequences for such failure should fall on the employer, not the employee,” and the employer must show that the employee was paid appropriately. The court further noted that California law required MB Body Shop to keep payroll records showing the

hours each employee worked daily and the wages paid to each worker. Because the body shop used a piecerate plan, it was also required to maintain accurate records regarding each employee’s production. The trial court found that MB Body Shop complied with its recordkeeping obligations, and the appellate court agreed. Therefore, the burden of proof remained on Juarez and Martinez to show that they were not properly compensated. The appellate court concluded that the company’s time-keeping records, as well as testimony at trial, supported the trial court’s finding that the body men did not spend time waiting for repair work. For example, the shop manager testified that at no time during his tenure at MB Body Shop were employees “just sitting around with nothing to do.” The appellate court further found that ample evidence supported the lower court’s finding that body men were not required to attend meetings, clean the paint spray booths, or do other non-piece-rate work. The HR manager testified that she was not aware of any mandatory meetings or training sessions for technicians. Evi-

40 MARCH 2018 AUTOBODY NEWS | www.autobodynews.com

dence showed that an outside company did the major cleaning and maintained the sprinklers in the paint booths. Painters and preppers, not body men, cleaned the windows and changed the filters in the paint booths. Therefore, the appellate court said, the trial court properly concluded from all of this evidence that Juarez and Martinez failed to satisfy their burden of proving that they spent unpaid time waiting for work or performing other tasks not incident to the repair of vehicles. Juarez v. Ali, Calif. Ct. App., No. H041348 (Jan. 8, 2018). Professional Pointer: Keeping complete, accurate records went a long way in enabling the body shop to disprove the workers’ minimum wage claims in this case. Joanne Deschenaux, J.D., is a freelance writer based in Annapolis, Md. We thank Society for Human Resource Management for reprint permission.

www.autobodynews.com

Gerber Collision & Glass Opens Repair Locations in Florida

The Boyd Group Inc. announced the January 19, 2018 opening of two collision repair locations in Collier County, FL. These centers were previously operated as Autocraft Enterprises and Autocraft Naples and are located on Marco Island and in northern Naples. Marco Island, the largest of Florida’s Ten Thousand Islands and Naples, one of the most prosperous cities in the United States, are two of the most popular tourist destinations in Southwest Florida. “These Gulf Coast locations simultaneously enhance synergies and broaden our footprint,” said Tim O’Day, President and COO of the Boyd Group. “The northern Naples center is positioned between our existing Naples and Estero locations, while the Marco Island location expands our presence 18 miles south towards Florida’s Everglades.” “We are proud to now serve our customers and insurance providers from more than 60 centers in Florida and over 500 locations across North America,” added Brock Bulbuck, CEO of the Boyd Group. “I would like to congratulate our corporate development, operations and all corporate support teams on this significant milestone achievement. We will continue to support their work as they execute on our goal of doubling our business by 2020.”


Meriden, KS, Body Shop Owner Could Only Watch as Fire Destroys Classic Cars by Morgan Chilson, The Topeka Capital-Journal

During the early hours of Feb. 7, Mike Garrison stood in front of his Meriden, KS, auto body, restoration and paint business and watched it burn to the ground.

High Torque Racing Auto Body and Paint Inc. in Meriden, Ks, burned down Feb. 7, along with rare and classic cars that were parked inside. Credit: Chris Neal/The Capital-Journal

Inside the 12-year-old building that housed High Torque Racing Auto Body and Paint Inc. were six vehicles, including an irreplaceable classic 1967 Buick GS-400 convertible. Only 421 were built, he said. “It’s brutal,” Garrison said. “I had two restored cars that were 24 hours away from leaving. The other was a ’69 Camaro convertible Restomod that had a custom paint job on it, and it was

totally frame-off restored. There were just a couple of pieces and parts and a buff job, and it was ready to leave. I could have had it done today. Both of those cars are big five-figure cars. “The big thing is some of these cars are irreplaceable. I’m heartbroken over it. You have no idea. Until somebody’s lived it, they never have any idea.” Also in the building at 3245 82nd St. in Meriden were four other cars, including a 1957 Chevy and a 1972 convertible, Garrison said. Garrison said he received a notification about 3:30 a.m. of a burglary call. “I got there really quick,” he said. “The next thing I know, when I go to open the door, it was full of smoke. I went around and unlocked all of the doors for the firemen. By the time they got here, the smoke was pretty thick.” When the firefighters opened the door, it became clear the fire was extensive. “I just had to sit and watch it burn,” Garrison said. His business carries insurance, and Garrison said he hopes he has enough coverage for a claim that may near $1 million. The building alone was valued at $250,000, he said.

Still, just hours later, he couldn’t move past the loss of the classic cars, and he had to make the tough calls to the cars’ owners.

Mike Garrison, owner of High Torque Racing Auto Body and Paint Inc. in Meriden, KS, stands near a handicap van his shop had been working on before a fire the morning of Feb. 7. Credit: Chris Neal/The Capital-Journal

“I’ve talked to them in the calmest way I can,” Garrison said. “It’s devastating.” Although he suspects the fire may have started in an electric heater, Garrison said he will await an official report. Chuck Hanna brought his replica 1966 Shelby Cobra to High Torque to have it painted. “He painted it and it just is fantastic,” Hanna said. “That’s been back

almost six years ago now. And everybody just raves about the paint on the thing. He just to me is second-to-none when it comes to his detail and work and things of that nature.” Hanna said Garrison is wellknown in the region’s drag racing community. After the Cobra paint work, Hanna also has taken personal cars to the business for body work. “People stood in line to get their cars to him,” he said. Garrison also operates a custom automobile upholstery store at 421 N.E. US-24 highway in Topeka. He currently is in the process of relocating the upholstery business to 1931 N.W. Topeka Blvd., which is being remodeled. He said he will rebuild the Meriden business. “I’m going to have to tackle it with a bulldozer first—clean it all up and start over,” Garrison said. “That’s the only thing you can do. I started from the dirt, 11 or 12 years ago, and I’ve just got to start it over again. I don’t want to do anything else. This is what I do. I love doing cars. I love coming to work. This is the best job I’ve ever had in my life.” We thank The Topeka CapitalJournal for reprint permission.

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National News

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.

ASA Partners With Bosch to Present Scanning for the Future Webinar with Chasidy Rae Sisk

On Wednesday, Jan. 17, the Automotive Service Association (ASA) partnered with Bosch to host a webinar on Scanning for the Future, an introduction to the diagnostic scan trends that every collision and mechanical professional should know. Tony Molla, Vice President of ASA, welcomed attendees to the first of a series of webinars on the popular topic of vehicle scanning, which served to provide a general overview and set the stage going forward so everyone would have the same frame of reference. Bosch Technical Instructor Duane “Doc” Watson dove into Advanced Driver Assistance Systems (ADAS), which are technologies that provide a driver with essential information, automate difficult or repetitive tasks and lead to an overall increase in car safety for everyone. Watson noted that some of these technologies have been around for a long time and are proven to im-

prove the driving experience and safety on the roads. “ADAS’s are on the cutting edge of emerging automotive technology,” Watson shared. Looking at how collision warning and avoidance systems operate, Watson explained that a sensor installed in the

is also the world market leader for radar sensors with 77 GHz technology, and one sensor facilitates several ADAS’s. Exploring adaptive cruise control (ACC), Watson explained that this system actively helps the driver keep a safe distance from the driver

front of the vehicle scans ahead for obstacles, and if one is found, the system will determine if there is any imminent crash danger and warn the driver if necessary. Bosch is involved in a variety of ADAS’s, including adaptive cruise control, adaptive light control, automatic braking, automatic parking and blind spot control. The company

in front by maintaining the speed set by the driver while adapting it to changing traffic. Combined with a rear-end collision warning system, the ACC can reduce the amount of heavy braking on freeways by 67 percent and reduce tailgating instances by 73 percent. ACC may use the following three types of sensors: mid-range radar sensor (MRR), long-range radar

44 MARCH 2018 AUTOBODY NEWS | www.autobodynews.com

sensor (LRR) or the stereo video camera. Automatic braking is a pre-crash technology designed to reduce the severity of high-speed collisions. Although automatic braking systems can prevent collisions, they’re typically meant to slow the vehicle to the point that less damage is caused and fatalities are unlikely. Watson explained the differences between predictive collision warning (PCW), emergency brake assist (EBA) and automatic emergency braking (AEB). In PCW, the driver is warned with a short but perceivable brake pulse and/or automatic seat belt retraction, while EBA increases the brake pressure partially initiated by the driver to the required level for the current situation. If a driver does not brake, AEB will initiate if a collision is unavoidable. A parking assistant uses an ultrasonic sensor in the side of the front


bumper to scan the road for a suitable parallel or perpendicular space, sending out short ultrasonic impulses that are reflected by barriers, and in turn, the echo signals are registered by the sensors and evaluated by a central control unit, alerting the driver when a parking space is detected. Once the driver activates the automatic parking assistant, the system calculates the best path into the space and assumes control of steering—both to enter and exit the parking space. Watson shared a video that demonstrated this technology at work. Blind spot detection works by using two ultrasonic sensors on each side of the vehicle that monitor the space in the adjacent lanes to alert the driver to possible dangers in their blind spots by means of a warning light. An audible warning sounds if the driver ignores the lights and activates the turn signal to change lanes. The system does not trigger warnings for stationary items or in response to the driver’s overtaking maneuvers. A video demonstration of this technology was also shared. Discussing how this technology will impact shops’ business, Watson predicted that the need for service in-

formation at the time of repairs will be more important than ever. He discussed why it’s no longer adequate to merely check the dashboard for lights, and noting that many OEMs now require pre- and post-repair scans, Watson advised against outsourcing these scans since that could lead to longer cycle times, decreased customer satisfaction and lost profits. It’s not simple to determine when a scan tool is required since that answer is often based on the age of the vehicle, type and extent of damage, and which options the vehicle is equipped with. This means collision repair professionals must apply a level of sound judgement to each vehicle in need of repairs. In April 2017, ASA released a position statement on pre- and postrepair scanning that coincides with many statements recently released by OEMs. According to this position statement, “The Automotive Service Association supports the electronic scanning of all vehicles prior to and after collision repairs are completed in order to ensure that all potential damage has been identified to achieve a safe and complete repair.”

An image of two crashed vehicles showed that the one with the least visible damage had 11 codes fire on the pre-scan tool, while the other had zero codes fire. Watson stressed, “The bottom line is, you can’t tell by looking. You need to PRE-SCAN!” While there is not yet a standard in the industry for shops receiving payment for scans, 70 percent get paid for pre- and post-repair scans. Some things to note are that having a printed or digital report for each scan is key to getting paid, but rates can vary by area, scan method and insurer—while some insurers pay for scans without issue, some require negotiations. In order to comply with OEM requirements for scanning, some investment in equipment and training is needed. Shops will require a quality scan tool, a battery maintainer or high-end battery jump box, and copies of OEM position statements on scans. Shops must provide training for employees to properly perform these procedures and include standard operating procedures as part of the training. Outsourcing scan work is expenSee ASA Partners, Page 46

Continued from Page 38

Enterprise Shares

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Canadian Painter Starts ‘Motivated Painters’ Movement by Ed Attanasio

Gabriel Merino, 29, works at Budd’s Collision Services in Oakville, Ontario, Canada as the head painter. Like any quality painter, he focuses on the details while pushing the envelope to create a pristine finished product every time. However, this 10-year veteran of the collision repair industry has an additional mission: to help painters worldwide through an organization called Motivated Painters.

Painter Gabriel Merino created Motivated Painters to connect with painters in 128 different countries, primarily through YouTube and Instagram

What started out with one simple video that he produced on his cell phone back in mid-2016 has grown at a rapid rate to now include 171 different videos with more than 750,000 views. In addition, he has established a brand with Motivated Painters that includes a line of apparel and is marketing products to his subscribers. Painters from 128 different countries have flocked to Merino for help, inspiration and—that’s right—motivation. It’s a role this young man has embraced as he helps new, and even seasoned, painters do a better job with passion. Born and raised in Ecuador, Merino’s family moved to Canada when he was 16, where he now resides with his wife, Johana. He’s a self-improvement devotee and is constantly listening to podcasts and audiobooks as he continually tries to become better at everything he does. His current mission is to help painters find what inspires them and tap into it. Continued from Page 45

ASA Partners

sive and time-consuming, and remote scanning is expensive as well, but investing in diagnostic scan tools to use in-house also requires tool, update and training costs. Still, it’s the lower in-

“I am currently working on my dream and pursuing the things that I’m passionate about,” Merino said. “I love helping people, and strongly believe in outrageous giving and purposeful living. I want to create value for people wherever I can, and now I am committed to adding value to the automotive refinishing community through all the avenues available to me. Bringing value to the people around you is the biggest investment you can make in your life, and that includes family, customers and other painters, in this case.” As a 19-year-old breaking into the collision repair industry, Merino landed a job at Budd’s Collision with literally zero experience. “I was anxious to learn, and my enthusiasm was eventually recognized by my boss,” he said. “I would describe myself as a clueless, relentless kid during that time. At first, I didn’t even know what sandpaper was, so I was definitely a total rookie. They assigned me to a veteran prepper and told him I knew nothing, and that whatever I was going to learn would have to come from him. So my journey began by cleaning toilets, floors, booth walls, filters and everything else imaginable.” Merino worked hard and kept his head down, and eventually it paid off. “After a while, I started to understand what a red scotch pad was and figured out how to not cut my fingers on the inside of hoods anymore,” he said. “The shop was very busy and had five preppers, so I bounced around from one to the other learning things that I have never seen or heard before. As a person of faith, I believe that in every situation you must take the good and leave the bad, so that’s what I did during those first few years at Budd’s.” Let’s fast-forward after several years of prepping. “The head painter at Budd’s decided to move on,” Merino said. “That very same day, the boss came up to me

vestment offering the highest profitability and ROI, as well as the fastest scans. The next webinar in ASA and Bosch’s series will be “In-House Money Makers,” held on Wednesday, Feb. 21 at 1 p.m. EST. Registration is available at www.tinyurl.com/asa webinarfeb21.

46 MARCH 2018 AUTOBODY NEWS | www.autobodynews.com

and said that he was finally going to give me a shot in the booth. I have to credit the boss, Sam Piercey, for giving me a chance. I knew that I had to come through for him, because [I may

Merino has produced 171 YouTube videos on different topics to help painters with certain types of problems they often encounter

not have gotten] a second chance. I’ve been here for 11 years now, and it has been a great experience.” To communicate with other painters, Merino began producing videos—first with his Android phone and then with a GoPro camera, he said. “I started to make videos showing the struggles I was having with painting and techniques,” he said. “I was shocked that even one person would watch my first video. I didn’t have a clue about how to do it and the video is

terrible, but it’s still up on YouTube. After a while, I got better at it and the production values improved.” Merino is now on a mission with Motivated Painters and delighted to see that the movement is gaining momentum. “This industry needs more people helping each other and I have always believed that together we are stronger, because collaboration is much better than competition,” he said. “Motivated Painters is a win-win situation. With so much new technology and social media outlets out there, we need to stay ahead of the curve as an industry and make sure that we’re all in the right boat for when the tide rises.” Now that Merino has established a following, he has bigger plans for Motivated Painters. “I put my heart and soul into this, so I want to watch it grow even more,” he said. “Every time a painter contacts me and tells me that my videos have helped them in any way, it is so satisfying—I can’t even describe it. Motivated Painters is now part of my life and as long as I’m painting, I’ll be right here doing this.”

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Historical Snapshot

—John Yoswick is a freelance writer based in Portland, Oregon, has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.

5 Years Ago, CT Shops Were Still Hopeful That Judgment Against Insurer Would Hold with John Yoswick

20 Years Ago in the Collision Repair Industry (March 1998) A credible study of the true costs and savings of using non-OEM crash parts could be a solution to the ongoing parts debate. That was one point of apparent agreement among panelists discussing parts-related issues during the Automotive Service Association’s annual meeting in Florida in March. “Cycle time is probably the key buzzword that we’re going to hear in the next two or three years,” said Joe Sanders, the former director of ASA’s Collision Division. “That’s really going to drive everything that changes in our industry in the future. Aftermarket parts are probably the worst villain to cycle time you can imagine. So when we get sophisticated enough to measure the economic impact that aftermarket parts have on cycle time, I think we can finally settle in and put those parts in the right place.” Insurers don’t deny that non-OEM parts can result in costly delays, Sanders said.

In 1998, former shop owner Joe Sanders said the industry needed a study into the true costs—including reduced cycle time—of using non-OEM parts

“But the insurers don’t know whether the cost-saving of streamlining your production will eventually equate to lower costs to repair the cars,” he said. “So sooner or later, it’s going to take some entity to do a good, strong study to figure out how to measure what it cost us in production delays, and what it costs the insurers in rental cars. Then I think we can sit down and revisit this issue.” – As reported in The Golden Eagle. Twenty years later, the debate over the true costs and savings of

using non-OEM parts continues.

15 Years Ago in the Collision Repair Industry (March 2003) Two years ago, Caliber Collision Centers’ CEO Matthew Ohrstein was quoted as saying that many in the collision repair industry seemed to have an incorrect assumption about the speed with which consolidation of the industry would take place.

In 2003, Matt Ohrnstein was the CEO of Caliber Collision and accurately predicted that consolidation of the industry would take decades

“Three or four years ago when we started, back in 1997, I think there was this expectation in this industry that consolidation would be this huge wave that would take over the industry,” he said. “But look at other industries. It can take 20, 30 or 40 years to consolidate just 30 percent of an industry.” Ohrnstein’s words may have provided some comfort to independent shops convinced the torrential pace of consolidator acquisitions in the late 1990s was set to continue. And he certainly set the tone for the two years that have followed in which consolidators for the most part have appeared to focus much more on integration, implementation and dramatic growth. – As reported in Autobody News. Ohrstein later left Caliber (the company added 68 shops during his seven years there) and formed Symphony Advisors consulting firm; he died in 2013 at age 57. But his comments about the likely speed of consolidation of the industry have been proven out. Twenty years after he pioneered the entry of large investors into the industry, the Big 4 consolidators still have

48 MARCH 2018 AUTOBODY NEWS | www.autobodynews.com

less than 25 percent of the market, a share one analyst predicts they won’t reach until 2021.

10 Years Ago in the Collision Repair Industry (March 2008) Eileen Sottile of the Quality Parts Coalition predicted that without changes to U.S. patent law, the increasing number of OEM patents on crash parts could lead to the “extinction” of the non-OEM parts industry and independent repairers (because higher OEM parts prices would total more cars). But Brad Mewes of Craftsmen Auto Body in Cerritos, CA, pointed to a 2005 European study that found that pricing for replacement parts was on average 7.3 percent higher in countries without such design protections. In a letter to Mewes last week, Sottile says the European study is flawed because it looked at list prices for OEM parts, not the “typically much lower” “market prices.” The study, she said, also mischaracterized the level of patent protection in two European countries. Given this, Sottile said the study should have shown that OEM parts prices are actually 3.6 percent lower in countries without design protection. – As reported in CRASH Network (www.CrashNetwork.com), March 17, 2008. Ten years later, the non-OEM parts industry continues to fight for federal legislation that would slash design patent protection automakers’ hold on crash parts, though the nonOEM parts industry is still thriving and the percentage of vehicles being declared a total loss has remained fairly steady—between 14 percent and 17 percent throughout the last decade. The prospects of the federal legislation moving forward took a hit in January when Sen. Orrin Hatch (R.-Utah), the bill’s chief sponsor in the Senate, announced he is retiring at the end of this year, and Rep. Darrell Issa (R.-Calif.), the bill’s chief sponsor in the House, announced his retirement as well.

5 Years Ago in the Collision Repair Industry (March 2013) At last weekend’s East Coast Resolution Forum and Leadership Meeting,

the president of the Auto Body Association of Connecticut said that more than three years after an associationled class action lawsuit resulted in a jury award of $15 million against The Hartford, no money has been received. A jury essentially found in 2009 that unfair trade practices by the insurer led to suppressed shop labor rates. Tony Ferraiolo was unsure why there has been such a long delay in the judge’s is-

In 2008, Eileen Sottile of the Quality Parts Coalition predicted dire outcomes for the industry if federal patent protection on OEM crash parts wasn’t amended

suing of a final judgment on the verdict in the case, but said that he expects that to happen soon, which would also bolster a similar lawsuit pending against Progressive Insurance. He said attorneys continue to pursue the Progressive lawsuit despite not having received payment in either case. “That’s telling you these class action lawsuits might have some merit for all of us when they pan out, but you’re talking 10 years before they are done,” Ferraiolo said. “That’s a long time. One of the named plaintiffs in the case has sold his shop in the meantime. So these class action lawsuits are important, but not our total answer. We’re committed to keeping them going.” – As reported in CRASH Network (www.CrashNetwork.com), March 18, 2013. In 2015, the Connecticut Supreme Court overturned the lower court’s judgment against The Hartford. The jury in the case found that The Hartford violated the state’s unfair trade practices act by requiring its appraisers to enforce an artificially low labor rate determined by the insurer rather than approaching the appraisal “without prejudice against, or See 5 Years Ago, Page 51


www.autobodynews.com | MARCH 2018 AUTOBODY NEWS 49


Media and Publicity for Shops

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

Too Many Shops Are Advertising When They Should be Marketing with Ed Attanasio

Ryan Taylor is a former body shop owner who invented Bodyshop Booster in 2009, an app that streamlines the estimating process for both customers and shops. He advises collision repairers all over the world on marketing, the customer experience and how to generate more business by using his tools.

which is different from an impulse purchase, where people are motivated and engaged. An on-demand purchase is like finding out your house is flooded or you have diabetes—it’s not

Why do many body shops stumQ: ble when it comes to marketing and advertising, while others seem to

push all of the right buttons all the time?

When I owned my own shop A: and business started to lag, I thought I could offset it by marketing

my business aggressively, so I spent $100,000 on things like radio advertising, and it didn’t even move the needle. I was shocked, so I brought in a lot of experts, and we tore the collision repair industry apart. We found out that when people get in an accident, it’s an on-demand purchase,

Ryan Taylor, the creator of Bodyshop Booster, advises collision repairers all over the world on marketing and advertising

an acquisition that you wake up in the morning anticipating. I’ve never heard anyone say, “Wow, I hope I get in a wreck today!” Most marketing firms provide services to companies that sell prod-

50 MARCH 2018 AUTOBODY NEWS | www.autobodynews.com

ucts or services that fall into the impulse decision category, such as new cars, vacations, electronics—things that get people excited. So, if you’re working with a conventional marketing company, they probably don’t know enough about the collision repair industry to be effective. Their experience is buying media (such as print, radio and TV broadcast advertising) because that caters to the entire market. But, as a body shop, your customers are limited, so why are you wasting money to advertise to everyone? In summary, remember that your customer does not want to be your customer, and secondly, there is a very small marketing footprint to get to that customer when they need you—all things I learned the hard way.

Why is it dangerous for shops Q: to rely heavily on their DRPs for the majority of their revenue?

Back in 2011, one of our major A: DRPs (28 percent of our total volume) contacted us with a “courtesy

call” that was far from being courteous. They told us that they were going to give all of their work to a consolidator with 300-plus locations, so we lost nearly one-third of our business with one phone call. Every shop knows that this is an exposure spot for us, but we usually think that it will happen gradually or taper off over a 5–10 year period, rather than in 30 seconds. So, after losing that big DRP, we started looking for ways to diversify our business, and one of them was fleet work. We charted it out and found out that customer pay has been growing. In 2008, it was 5 percent and today it’s 20 percent—and there are a lot of reasons for that. Our analysts are telling us that it will be around 30–38 percent by 2020 and eventually, the DRP system will go away altogether. There are a lot of


reasons why the insurance companies can profit by eliminating their DRP programs, and they’re starting to figure it out. So, we see a major shift in DRPs and a lot of this new technology (Allstate’s new photo app, for example) is aiding them in this shift. In Canada, shops are very DRP-dependent, so we haven’t seen this change there yet, but we believe it will happen there too within the next 3–5 years. Another change we’ve seen is that now with deductibles going up ($500– $1,000 on average), the market will split and more cash-pay customers will emerge. In North America, 44 percent of all repairs are what we call Type 1 repairs, which require 11.9 hours or less to complete the job. With all of the new collision avoidance systems, we are seeing more and more of these types of repairs. So, many of these are now customer pay. If the consumer has a $1,000 deductible, for example, and the job is going to cost them $1,500, that’s now within their threshold, so they’re going to pay it rather than call their insurer. Experts claim that word-ofmouth is the best way to get Q: new customers, but how can you man-

age this and reap the benefits?

A:

The latest studies show that every happy customer has the potential to affect 4.1 other people around them. The challenge is how to get them to refer you. Extensive research shows that your average customer will only drive 15 minutes to get an estimate, but they will travel up to 35 minutes for a repair. By harnessing the power of technology, you can get customers who are outside the 15-minute window to commit to a repair appointment and thereby expand your market reach. Studies show that 74 percent of customers make their decision based on convenience. All over the world, deductibles are on the rise, causing customer pay to be more and more common, so capture more work by making the estimate process easier, because ease of doing business is why 83 percent of people will go online to check out repair shops. Supply them with what they are looking for, and you will capture new business. Customers are afraid to make an insurance claim because they fear drastic premium increases. Capitalize on that by making the estimate process smooth and educational.

Continued from Page 48

5 Years Ago

favoritism toward, any party involved to make fair and impartial appraisals.” But The Hartford argued in its successful appeal that the “parties involved” were the insurer and insured, because an appraiser “could not possibly owe a duty of impartiality or reasonableness to the very shops with whom he is negotiating on behalf of an employer.” The state Supreme Court agreed that the unfair trade practices act does not “regulate the conduct at issue” in the case. “It would be patently unreasonable…for us to conclude that the [insurer] is lawfully permitted to determine the hourly labor rate that it is willing to pay for auto body repair [but] that [its] appraisers are ethically required to disregard that determination when negotiating on

the [insurer’s] behalf,” the Court wrote in its unanimous decision. Shops, the Court said, are capable of representing their own interests and “certainly

In 2013, Tony Ferraiolo of the Auto Body Association of Connecticut was still hopeful that a $15 million judgment against The Hartford would hold (but it was later overturned by the state’s Supreme Court)

are under no obligation to accept insurance-related work that is not sufficiently remunerative.”

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National News

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.

Management Success Shares Shop Resolutions That Stick with Chasidy Rae Sisk

On Wednesday, Jan.10, Management Success Senior Consultant Jim Saeli presented a webinar on “Secrets to Success: Shop Resolutions that Stick.” He began by noting, “You probably set goals at the beginning of your business and have achieved them, improving your business and acquiring better control of it. But as time passes, we all tend to lose focus and fall back into old habits and may ask ourselves, ‘What am I missing?’” While it’s easy to think it’s all “fine,” Saeli considers this a bad fourletter word. “If you’re not expanding, you’re contracting,” he said. “If things are just fine, they will catch up with you.” It’s easy to lose focus, so he suggested looking at the shop's basics, some of which are so basic that they’re easy to overlook until it’s too late. It is important to monitor all aspects of one’s business because it’s easy to get lost in the day-to-day actions of shop production and to stop seeing everything, until someone else points out the change. “When you first opened your shop, you set a goal and worked to achieve it, but it’s important to set new goals once you reach your first goal,” Saeli encouraged. “Or maybe you set a goal and had a hard time focusing on the new goal because things changed. There will always be these types of situations in a business, such as changing employees, but you have to figure out how to keep your eye on the ball, and with the start of the New Year, this is a great time to sit down and establish goals for 2018!” Saeli suggested getting in the habit of looking back at goals to determine if they were achieved. He stressed the importance of writing down goals and also encouraged attendees to write down their vision and look at it occasionally. “Your business will always be a work in progress, and your vision will change as your business grows,” he said. “Your job as the owner is to set goals for your business so that you’re the one directing the shop, and you do this by planning. “The owner’s responsibility is to improve the existing situation and

move it toward the idea or vision you have for your business.” He polled attendees to determine how often they plan, suggesting it’s important to decide what each person wants to accomplish this year and emphasizing the importance of writing down plans.

Asking how shop owners track their progress, Saeli informed them that they should be tracking their KPIs and using these numbers to determine whether they’re heading in the right direction. Keep your KPIs up-to-date, look at them weekly, and then make corrections based on that information. According to Saeli, “Your KPIs are a roadmap that allows you to see the past and plan for the future. It’s helpful to put them into graph form to evaluate them quickly. Not having them is like trying to diagnose a check engine light on a car just by listening to the vehicle—and none of you would ever do that! Call this your scan tool; it’ll help you figure out what’s going on with your business.” Figure out your goals by starting with a sales target, broken down into sales for a month and a week, and then figure out the billed hours needed to achieve this goal. Saeli believes that working out weekly targets is a great start, but next, shop owners must share this information with their employees and remind them of it on a regular basis. “This is one of the reasons to have weekly meetings,” he said. “It allows you to go over your targets and reinforce your expectations, plus it helps get everyone behind you, working towards those goals.” When an employee is not producing the way they used to, Saeli advised the shop owners to sit down with them to find out why, suggesting that the employee may need help establishing goals, they may simply need to be pointed in the right direc-

52 MARCH 2018 AUTOBODY NEWS | www.autobodynews.com

tion or they may require additional training to improve their competency. “Talking to your employees is a win/win/win situation,” Saeli noted. “They are better able to help the customer, the shop and make more money themselves. It’s important that we do not become so engrossed in the day-today that we forget about training. “Have you reached your goals? Have you lost your passion for the business? You must see when you reach your goals and set new ones to have something to reach towards, to look forward to. Goals are key, and having them written down helps visualization.” Some ideal targets Saeli suggested for both the individual and their businesses are sales targets, turning over responsibilities to associates and spending a certain number of days away from the shop to do enjoyable things. “Money helps you get things, but time is very valuable,” he pointed out. Noting that all professionals have

coaches to point them in the right direction, Saeli asked attendees about who helps them keep their eyes on their business goals, point them in the right direction and keep them focused and successful. He then shared information on Management Success’ Shop Business Analysis product, which is designed to help in this aspect. As the webinar concluded, Saeli observed, “The more training you receive, the better equipped you are to handle situations, and you become more competent at running your business by setting up a training plan. It’s important to identify the key actions that must occur in order to achieve your goals.” Due to the positive feedback received from this webinar and an overflow of attendees, Management Success will be presenting a live webinar on the same topic with a different presenter and a guest shop owner on Wednesday, Jan. 24.

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Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.

Tips for Busy Body Shops How To Train, Prepare for Negotiations with Stacey Phillips

Keith Manich of the Automotive “The more information you can Training Institute (ATI) said collision provide to whomever that party is that repairers tell him on a regular basis you are discussing this with—That is that they often hear the word “no” what will win the day for you,” he said. when asking to be paid for required “We have to make sure that we’re proprocedures associated with viding the documentation that the repair plan, and that they reinforces the fact that you “feel intimidated.” made a decision for a good As the director of collicause.” sion services for ATI, Manich According to Manich, said shops might be told, “You doing this consistently, helps can’t charge for that,” “I don’t build rapport with insurance care what the OEM says!” or companies. Keith Manich, “No one else charges for that.” director of collision Manich outlined a longservices for the “Threats and intimidaterm disciplined negotiation Automotive tion are nothing more than a strategy for shops. The last Training Institute bully tactic or strategy,” said five steps can be used in the Manich, who trains companies on the short term and typically lead to a pos“executive” side of the business, in- itive result. cluding how to deal with financials, managing operations and negotia- 1) Opportunity tions. Over the years, he has found First, determine what the negotiation that few shops have really good rela- is about. tionships with insurers. He said the key to achieve this is good negotia- 2) Identification tion. Next, identify the goal the shop wishes During the 2017 SEMA show in to achieve as a result of the negotiation. Las Vegas, Nevada, Manich explained Manich said developing (SOPs)will how to set up a standard operating help direct the negotiation. procedure (SOP) for negotiations during his presentation, “Preparing for 3) Frequency and Conducting Negotiations for Col- Think through how often your shop lision Repairers,” as part of the SCRS will have to deal with the particular Repairer Driven Education Series. vendor/insurer. Manich stressed the importance of shops being prepared for negotiations 4) Research with vendors and insurers in order to be Find all supporting OEM information successful. that could be used during discussions, “Negotiation successes result from as well as additional information that preparation using consistent and rewill help build a case for negotiation. peatable processes and the discipline to use them effectively,” he explained. 5) Preparation Effective communication is also Review all documentation in its eninstrumental. His advice is to focus on tirety. Manich said that the opponent the goal, use language targeted to the in the negotiation will most likely take opponent and a positive approach in a financial position. “They will typitone so he or she doesn’t feel belittled, cally be preparing the same way you and anticipate questions that may be do, but looking specifically at the cost asked. of repair,” he said. An opponent may “Both sides are looking at the also take an irrational position, acsame vehicle in two different ways,” cording to Manich. “Always rememhe said. “One is looking at it as a profit ber that they have the checkbook, so center while the other one is looking at they may make determinations based it as cost containment. It’s conflicting on that fact alone, not the repair reobjectives from two sides.” quirements,” he said. The bottom line To reduce that tension, Manich is to be prepared to provide as much insaid information and supportive docu- formation as possible to make a rational mentation are imperative. argument.

54 MARCH 2018 AUTOBODY NEWS | www.autobodynews.com

6) Execution When countering data mining arguments, Manich said to keep in mind that insurers have the scope and scale to gather significant amounts of DRP data. “This puts the repairer at a disadvantage,” he explained. In order to build the execution plan, Manich said to remember that repairers provide this information through their estimates. “When things are removed from the repair plan for whatever reason, there is an ability to control that data,” he said. “It is then used against the repairer ‘showing’ that the repairer in fact doesn’t need it.” An execution plan should include the following: • Looking at the pros and cons of the position and determining if there is value in its pursuit • Completing the negotiation planning worksheet • Getting to know the opponent and finding out what makes him/her tick • Looking at past experiences with that person or the company • Asking others within the shop about their experiences • Identifying supporting documentation • Prioritizing the information • Creating a folder containing the relevant documentation and providing it to the opponent • Making an appointment to complete the negotiation activities • Keeping the invitation formal because it’s a business activity

7) Packing of documents/materials Manich said the powers of persuasion can improve the chances of convincing an opponent. These include having the facts on hand, as well as being credible, authentic and sincere during negotiations. The goal is to be compensated adequately for the vehicle. “The best interests of the customer are what we are responsible to communicate. Make the best choice for the car and customer, and back it up with documentation,” said Manich. “This will make sure you win the negotiation.” 8)

Post-negotiation validation

When is a win a win? According to Manich, it is when both parties come to a mutually beneficial agreement. If a conclusion cannot be reached, it may have been caused by one of the other parties becoming inflexible or defiant. Manich said the next step is to get the customer involved. A successful conclusion is when both parties have come to an agreement that may have set a precedent for future negotiations. In addition, a financial gain is usually achieved as a result of the negotiation exercise. Not only does this approach help in dealing with insurance companies, but Manich said it can also be used for any business activity that involves negotiating. Manich also offered the following tips: Soft skills to use during negotiations:

1) Eye contact: Manich said to look at the triangle area on the other person’s face going from the forehead to the chin, and to spend at least 20 percent of the time making eye-to-eye contact. 2) Pay attention to enunciation 3) Body language 4) Facial expression 5) Presentation preparation 6) Position and posture 7) Personal space Do…: • Practice in the mirror and with others in your shop (no matter how foolish you think it is!) • Keep composure no matter what is said • Be confident while presenting and stick with the negotiation plan • Meticulously prepare—This is critical…Have all documentation ready to deliver • Be ready if the opponent tries to use “scare” tactics and prepared to get the customer involved if necessary. Documentation is imperative. • Prepare for the opponent to use “scope creep,” which will take the focus off the facts. Don’t…: • Take anything personally.

See How to Train, Page 57


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

Family of Game Farmers, Wholesale Parts Experts—The Hunt Family with Ed Attanasio

When Tammy and Paul Hunt aren’t working in the wholesale parts department of Flemington Car and Truck Country/NJ Parts in Flemington, NJ, they run a farm/hunting preserve and help the community whenever they can.

From left: Paul Hunt, Tammy Hunt, Ken Buck, Ella Buck, Cassidy Hunt and JP Hunt operate the Hunt Family Preserve in New Jersey when Paul and Tammy aren't working in the wholesale parts department for Flemington Car and Truck Country/NJ Parts

It’s a busy life consisting of many 14–16-hour days, but the Hunt family loves it and wouldn’t change it for all the money in the world.

As the owners and operators of the Hunt’s Family Preserve in Hunterdon County, NJ, Tammy and David grow hay and raise game birds to be hunted at their 140-acre preserve. For the past 13 years, hunters from all over the world have come to hunt for pheasants and Chukar for two-hour or four-hour stints. Last year, they raised 2,000 pheasants and 600 Chukar for the bird hunting season, which goes from October through March. Starting in May, the farm grows hay, which is harvested in September—just in time to prepare for the hunting season. The entire Hunt family is involved in the operation of the farm, with their two sons helping out wherever needed while their daughter, Cassidy, runs a small business selling eggs. The farm does not turn a profit, but selling the hay and running the hunting preserve pays for itself, Tammy said. “All of the money we make on

the farm goes right back into the operation to keep it going,” Tammy said. “It involves a lot of work, but in the end it’s worth it. It’s been satisfying to watch my children growing up on the farm. They raise the pheasants from day-old chicks until they’re mature at

Wholesale Parts Manager Paul Hunt works exclusively with body shops at Flemington Car and Truck Country/NJ Parts

around 22–24 weeks and weigh roughly 3 pounds. It teaches them things like responsibility and the value of hard work.” Raising birds is not an easy task, especially when uninvited guests can ruin their season.

“We had a fox who got into one of our pens one season, and he killed 280 birds. A raccoon also got 150 one time,” Paul said. “The birds can also get sick when they’re young, and if we get a lot of snow and ice here, that can affect the flock as well.” When she isn’t running a farm, Tammy wears a lot of hats at Flemington Car and Truck Country/NJ Parts—and she likes it that way, she said. “I process credit applications, do our social media and manage the website, but if I need to write a quote, I’ll jump in,” she said. “I used to work in the banking industry, until the last bank I worked for was sold. So I decided to do this and I enjoy it, because every day is different.” Paul has been in the wholesale parts game for 22 years now. He started out as a counterperson and worked his way up to the top, but his first job was working on a dairy farm.

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“I’m a third-generation dairy farmer, but I realized many years ago that it’s almost impossible to make a living doing it,” he said. “I got out in 1992 when the wholesale prices on milk were so low that we couldn’t afford to make a profit. The wholesale parts business provides more stability and the hours are a little more reasonable, even though we are running a farm at the same time.” Paul works exclusively on the collision side by getting hundreds of body shops in New Jersey the right parts on time. As the wholesale parts manager at Flemington Car and Truck Country/NJ Parts, he oversees an enormous inventory representing nine dealerships that carry 26 different brands. It’s a huge undertaking, but he’s not dissuaded by the workload. He prefers working with his knowledgeable crew as opposed to a bunch of cows that just stand around, he said. By being aware of his customers’ unique needs, Paul can better accommodate them. “[The] wholesale parts [industry] is an ever-changing and extremely competitive industry, and we know that it’s not easy for the body shops to make a decent buck,” he said. “Their labor

rates are stuck at $45–$50 an hour and the insurance companies dictate everything. The quality of aftermarket parts has improved considerably, but most shops still want to use OE parts—and that’s why we try to make that happen for them.” Paul also knows that shops expect their parts deliveries to arrive more quickly than ever before, so his department has to respond accordingly. “We have 32 trucks and we know that our customers are judged by their cycle times and CSI scores,” he said. “If our shops call before 1 p.m., we can get them whatever they need the same day. We have to sell service to differentiate from our competitors, and delivery is somewhere we can excel.” Always with an eye to help others, the Hunts all belong to the West Amwell Volunteer Fire Company and are also members of the Future Farmers of America. “We work with students through their high school agricultural programs and assist them with finances through fundraisers,” Tammy said. “The farm life has been wonderful for us, so we want to support the industry if we can, and introducing it to young people is a good way to do it.”

Allstate and Nationwide Among Insurers Using Public Data Sources In Fraud Detection The insurance industry is looking to digital technology to help lower claims costs in several ways, and that includes new approaches to fraud fighting. Policyholder fraud continues to be a leading cause of incurred underwriting losses annually in the U.S. And carriers are now ramping up detection efforts to fight back. The Insurance Information Institute finds nearly 10% of annual property & casualty losses result from fraudulent claims data. A 2017 Verisk Analytics study also found that premium leakage—defined as missing or erroneous Continued from Page 54

How to Train

• Be disrespectful no matter how or where the opponent tries to lead the conversation. • Underprepare—it will be evident during the presentation. • Forget you are the repair expert. • Use intimidating body language and watch the opponent’s. It will show where the most significant resistance to the argument is focused.

underwriting information—amounts to nearly $29 billion a year in losses for personal auto insurers. Allstate is now a few months into its announced fraud detection partnership with insurtech Carpe Data in November. The deal gives the carrier’s claims adjusters license to request on-demand background checks on policyholders using publicly available information. Carpe Data then utilizes AI algorithms to scour social media sites, public databases and news media outlets for proof of limited physical prowess or recent criminal activity.

• Move away from the facts—stick to them because those are what will repair the car properly.

For more information about training programs offered by AMI for the collision repair industry, contact Keith Manich at 301-575-9191.

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In Reverse

John Loftus – The “Dragon Slayer” with Gary Ledoux

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

“In the early 1980s, body shops had it a lot of travel. tough,” said industry veteran John Loftus continued, “I certainly Loftus in a January 2018 interview. stayed in plenty of hotels. But I often “They needed someone or some- stayed in the homes of shop owners thing to pull them together and repre- and industry colleagues—a great sent them on a national scale. They respite from a hotel room. They knew needed some cohesion. Every shop I was working hard for them, and they owner was fighting their own individ- treated me like family. I always tried ual battles with insurance companies.” to return the favor. One of the shop At that time, auto body associaowners even flew me around the Midtions operated at the state level. One rewest in his private plane. gional association, IASA, represented “The organization back then never both the collision and mechanical sides had a lot of money. But we got by. And of the business in 13 states. In fact, if I was asked to speak somewhere, Loftus spent about three years somehow we found a way to as the Collision Industry Dipay for it. In fact, the first time rector for IASA after spendI was asked to speak in Euing 13 years as the owner and rope, I almost turned it down because I didn’t know how we operator of Hawthorne Auto would pay for it. But someBody in Hawthorne, CA, and several years serving in varihow it got done. ous volunteer roles for the “When I first started, John Loftus California Autobody Associsometimes it was hard to get ation. Loftus was a key player in the through to some shop owners. They formation of the CAA for southern Caljust didn’t get it. I told them they had ifornia and spent a year as the director. to start looking at their own costs, like ASA was around at that time as a nathe insurance companies look at theirs. tional organization. They were wasting so much money. At Loftus knew change was coming, one of my first speaking engagements, but it needed help. Other industry I talked for an entire hour and got zero leaders realized it too. So they formed reaction. At another place, I wasn’t a new industry organization, and gave getting through, so we pulled the table Loftus the reins. On Sept. 25, 1982, cloth off one of the tables where we the Society of Collision Repair Spe- had just had dinner, and I stood up on cialists (SCRS) was formed with goals the table and spoke! Some shop ownof providing body shops with techni- ers had to hear me say the same thing cal training and management educa- a couple of times before it sunk in.” tion, improving the quality standards When asked about how many of collision repair services, raising the places he had visited and where he professional standing of those en- spoke, Loftus noted that he had been gaged in the collision repair industry to 44 states and 20 different countries. and securing the financial position of “I stood in front of an industry individuals within the industry. It was group in England [on my first trip to Euthe first national organization dedi- rope] and told them how things worked cated solely to the collision industry. in the U.S. and the battles we had with When asked what SCRS was like insurance companies and adjusters,” he in its early days, Loftus responded, “The said. “They all sat there nodding, beSCRS office was wherever I said it was! cause it was no different an entire ocean I had a home in Texas, a home in Caliaway. Then we went to France, and then fornia, and some friends in Missouri— Germany and then Canada… everywhere we went, the industry problems Bill Wicklund of Wicklund’s Auto Body, where I stayed occasionally,” Loftus were the same. We went to Russia— noted. “I was there so often, I became an that was almost comical. They were still ‘honorary Wicklund.’ If I had access to a repairing cars there like it was 1950.” phone and a fax machine, that’s where Laughing, Loftus said, “I don’t my office was. We made it work!” think they wanted me to speak—I think Back then, as it does today, the they wanted me to teach them modern position of SCRS Director called for repair methods!”

60 MARCH 2018 AUTOBODY NEWS | www.autobodynews.com

In the 1980s, the OEs generally were not as attuned to the collision industry as they are today. But Loftus was quick to point out that SCRS had a good relationship with Toyota back then, as they were some of the first to produce and widely distribute collision repair manuals. He noted that GM was also part of the collision landscape at the time. If there is anything John Loftus is famous for, it’s his self-proclaimed mantra, “Working together is the most important work we do”—and he lived that every day. Loftus is a very one-onone guy and liked to work with individuals. If shops called to tell him that they were having issues with a particular insurance company or a particular adjuster, he would visit them or get the parties on the phone and work things out. “We never threatened to sue them,” said Loftus. “We were never condescending to any party. I always treated

the shop and the insurance company with dignity and respect, and we always came to a resolution because I listened to all parties, and we kept the customer in mind. The consumers spent a lot of money in insurance premiums—now it’s time for the insurance company and the shop to make things right for them because that’s what they paid for.” Loftus remembered one particular instance where an insurance company wanted a shop to clip the rear end of a car. The shop knew it was an unsafe repair, refused to do it, and the shop was removed from that carrier’s DRP program. The shop called Loftus to see what could be done. In a short time, Loftus had talked the insurers into totaling the car, the shop was reinstated in the insurer’s DRP program and the adjuster was exposed for having some ulterior motives for wanting the car clipped. When asked about his “finest moment” as SCRS Director, Loftus pointed

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to a brochure called “Insured Motorists’ Rights.” One of the things that insurance companies had customers do was get three estimates from three different body shops, then make them choose the lowest estimate. Customers found that irritating. Legitimate shops found it counterproductive and less-then-ethical shops used it to low-ball customers to get the work. SCRS worked hard to eliminate that practice. Loftus explained, “For the first time, we had a ‘tool’ that shops could use to fight the ‘three estimate’ practice.” Loftus then went state-by-state, working with the local state-level affiliated associations, getting them to speak with their respective state insurance commissioner to make sure they could distribute their “Motorists’ Rights” brochures. In Illinois, the state insurance commissioner was very difficult to meet with. Finally, the commissioner was due to be at the Chicago airport for a morning flight and told Loftus he would meet him at the airport at a designated time if he wanted to talk then. Loftus hopped on a redeye flight and made his appointment with the commissioner. The “Motorists’ Rights” brochure was approved 10 days later.

When asked if there was any work he had left undone at SCRS—anything he wanted to do but never had the time or resources to accomplish—Loftus replied, “We did as much as we could every chance we got. We never worried about the resources—We would find some way to get things done. It was a rewarding time for me, and people appreciated what we did. I have no regrets or work left undone.” Loftus was the SCRS Director for 19 years, retiring in 2000, when the reins were turned over to industry icon Dan Risley. In 2003, Loftus and his friend, Larry Martin, began Loftus and Martin Long Range deep-sea fishing excursions out of San Diego, each trip escorting 23 anglers on a two-week cruise. And that thing about the “Dragon Slayer”… when Loftus retired he was presented with a huge sword in a wood and glass case by the Kansas City and Topeka Chapter of SCRS, where he was deemed to be the “Dragon Slayer Extraordinaire”… the “dragon” being all the issues and problems Loftus tried to address and resolve during his time as SCRS Director. John Loftus was truly a champion of the industry—a Dragon Slayer Extraordinaire.

Owners of Michigan Rehab Clinic Accused in $1M Staged-Crash Scheme, 8 Others Already Convicted by John Agar, MLive.com

The owners of a physical rehabilitation clinic in Grand Rapids, MI, are accused in a $1 million scheme to defraud insurance companies by staging crashes and fraudulently submitting bills for physical-therapy services. Eight others have already been convicted for staging crashes in the area. Maria Del Carmen Ramirez-Rodriguez, a.k.a. Maria Del Carmen Pou, and Marvin David Ramirez are named in a 14-count indictment alleging conspiracy to commit mail fraud against no-fault auto insurance companies, healthcare fraud and mail fraud. The indictment was recently unsealed after Ramirez's arrest. Eight suspects, including residents of Wyoming, Lansing and Florida, have been convicted in the case. He was arraigned Thursday, Feb. 1, in U.S. District Court in Grand Rapids. He pleaded not guilty and was released on bond. No date has been set for the co-defendant.

The alleged fraud began in December 2011 and ended May 2014, the government said. The government said four defendants set up medical clinics, then billed for services after recruiting others to act as victims of car crashes, records said. The defendants owned and operated Primary Rehab Center LLC, at 2055 28th Street SE in Grand Rapids. They used “patient-recruiters” to find people “willing to participate in staged automobile accidents—accidents that were planned out before they occurred,” Assistant U.S. Attorney Ronald Stella wrote in the indictment. “Defendants also asked the patient recruiters to find individuals who had experienced their own automobile accidents, but were not truly in need of any medical treatment.” Those recruited were usually paid $500 to $1,000 to falsely claim injuries from crashes and become patients of the rehabilitation center, the government said. The defendants “coached the patients on what symptoms to report to” doctors to obtain a prescription

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for physical therapy, the indictment said. The defendants submitted over $1 million in fraudulent healthcare claims, the government said. The government is seeking a judgment for return of those funds. The defendants face up to 20 years in prison if convicted of any of the five mail-fraud charges, and up to five years on the nine healthcare-fraud charges, court records said. A worker at the rehab center, Yoisler Herrera-Enriquez of Wyoming, was earlier sentenced to four years, nine months, in prison. He was linked to others who have already been sentenced to prison: Belkis Soca-Fernandez of Tampa, Florida, 11 years, three months; David Sosa-Baladron of Tampa, Florida, 10 years; Antonio Ramon Martinez-Lopez of Port Richey, Florida, seven years, three months; Gustavo Acuna-Rosa, formerly of Lansing, two years, two months; and Eduardo Pardo-Oiz, formerly of Lansing, two months. They were ordered to pay restitution ranging from $145,000 to $895,000, records showed. Two others were sentenced to probation.

of solvents.” Next, Kizenberger introduced David Sosa, BMW Technical Repair Trainer, who spent an hour reviewing general, participation in the safety group BMW’s levels of structural repairs, varwill save you more than enough money ious BMW construction materials and to cover the cost of your LIABRA BMW advanced technologies. Dismembership dues.” cussing BMW’s correct repair proceKizenberger announced that the dures, Sosa recommended that shops New York State Department of Envivisit bmwtechinfo.com to obtain the latronmental Control (DEC) is visiting est repair procedures when working on Long Island shops to re-register air perany BMW vehicle, and he also advised mits. He encouraged members to call that association members can receive him at 631-941-9647 to ensure their free BMW repair training through their permit applications are completed proplocal BMW dealer. erly if they receive such a visit. Texas Attorney Todd Tracy was inHe warned, “They are also checktroduced next to discuss his experience ing hazardous waste disposal invoices. with the Seebachan lawsuit. As always, make sure your production According to Kizenberger, “Todd and paint areas are neat and clean, and Tracy is a very dynamic speaker, and he you have no open-to-the-air containers reviewed how he won a $42 million lawsuit against the John Eagle Collision Center. Prior to this case, Tracy’s law firm had won $1.2 billion in cases against the OEMs for vehicle crashworthiness. “Todd convinced the jury that the John Eagle Collision Center had done an improper repair in order to save money and had LIABRA and ABCG’s January general meeting attracted more than 200 collision repair industry professionals compromised the safety cage of Continued from Page 34

Todd Tracy

the vehicle, causing it to collapse [and] trap Matthew Seebachan, causing his injuries. The jury awarded Matthew Seebachan $42 million. After the case,

BMW Technical Repair Trainer David Sosa shared invaluable information on BMW’s latest repair procedures

some of the jurors said they would’ve awarded more money had Tracy asked for it! “The bottom line is the jury felt the OEM repair recommendations were actually a repair requirement. If you are repairing collision damage vehicles, you must adhere to the OEM requirements, or you open yourself up to a liability case.” For more information, visit www.liabra .org.

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www.autobodynews.com | MARCH 2018 AUTOBODY NEWS 63


OE Shop Certification

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

OE Shop Certification Programs: Audi’s Mark Allen Interviewed with Gary Ledoux

For this month’s OE certification profile, we spoke with industry icon Mark Allen, Manager of Collision Programs/Collision Training and EV After Sales for Audi.

ABN: Does your program have a specific name?

Audi: It’s called the Audi Authorized Collision Repair Program. It was first started back in 2003, received a major overhaul in 2006 and another one most recently in 2015.

ABN: What is the main purpose of the program?

Audi: Audi is big on controlling the total customer experience. Despite the bad situation an accident brings, we don’t want to make it worse for our clients with a bad shop and a bad repair. So for us, it’s all about customer retention, and making sure the car is fixed properly. ABN: What are the program requirements?

Audi: All shops receive a plaque. Technicians that complete our welding course get a special jacket. All certified shops are on the towing program, so any Audi owner using their Roadside Assistance program due to an accident can have their car towed free to an Audi Authorized shop. Audi Authorized shops are also the first shops of choice to

repair any of our transportation-damaged cars, show-damaged cars or any cars that are corporately owned that suffer an accident. And of course they can promote themselves as an Audi Authorized shop. ABN: What shops are eligible?

Audi: We welcome dealer-owned shops, independent shops and MSOs, but the standards and requirements remain the same. We don’t cut anyone any slack. Right now we have a 60/40 split—60 percent are independent and 40 percent are dealer shops. The dealer percentage is perhaps higher than other OEs, but that is because of our focus on customer retention.

Audi: We focus on three areas: tools, equipment and training. For training, we don’t now require that the shop be I-CAR Gold Class, but many are simply because they are the better shops and are Gold Class by default. Mark Allen However, in the near future we will be requiring all shops to be ABN: Must an independent shop be Gold Class. Then we also have our sponsored by a dealer? If so, has that own classes; some on structural repair, caused any problems? others are model-specific. We also have a 10-day aluminum class and Audi: Yes, a dealer must sponsor an inclasses on carbon fiber. Also, we have dependent shop and the shop must be two levels of training for two levels of in its own market area. If our focus is shops. The hybrid training is the more on the customer experience and rebasic with limited classes. The ultra- taining customers, it makes no sense advanced training includes all classes for a dealer to sponsor a shop that is and is meant for the ultra-advanced 50 miles away. A customer will never drive 50 miles to a body shop. shops. One other thing about Audi training: most of it is hands-on training. ABN: Can a dealer sponsor more than The technicians like it because this is one shop? what they do all day. They can relate better and learn better rather than Audi: Yes, but that rarely happens. The units in operation must warrant more watching a video or reading a book. than one shop in any given dealer’s area of influence. ABN: What are the program benefits?

64 MARCH 2018 AUTOBODY NEWS | www.autobodynews.com

ABN: Are any shops specifically ineligible?

Audi: Our program is limited to dealers and shops in the U.S. A few years ago we used to handle what few participating shops and dealers we had in Canada. Now that there is more participation, Audi Canada handles it

themselves, although we still provide a good part of the training materials.

ABN: Do you have any program partners, such as Axalta, VeriFacts, Summit, Assured Performance or others? If so, what role do they play? Audi: We have VeriFacts handle the information technology for us.

ABN: What is the fee for the program? Does the program run on an annual basis? Audi: Independent shops pay $7,500 for the first year and $4,000 for each succeeding year. Our dealer charge is proprietary information. ABN: Do you inspect every shop and if so, who does the inspections?

Audi: Yes, Axalta conducts the annual inspections for us. We also look at feedback from Audi employees and other Audi corporate people who have cars repaired at these shops. They should have the same good experience and the same proper repair as any Audi customer. On top of that, I travel quite a bit and when I do, I make a point to make a few unannounced visits to Audi Authorized shops. ABN: Is there an optimum number of shops you want to have and if so, how close are you to reaching that number? Audi: The optimum number is about 250. Right now we are at about 192 with about 100 being the ultra-ad-

vanced shops that work on all models, and the rest are hybrid shops that only work on certain models. Of course, that number fluctuates as shops come and go. We will put on more shops, but we want to do it strategically, placing the shops only where they are needed based on units in operation. ABN: Have you had any shops drop out and if so, why?

Audi: We are big on training because we want the cars fixed properly and our customers to drive a safe automobile. I want to be able to stand up in front of a group of people at an industry meeting or show, talk about training and know all of our shops are properly trained. So if a shop can’t or won’t meet our requirements and complete the proper training, we have to part ways. Of course, we give the shop plenty of opportunity to take the training. We call and let them know when the training will take place and ask if we can sign them up at that time.

ABN: If the shop is removed from the program due to a training lapse, and they later take the training, are they allowed back into the program?

Audi: We address that on a case by case basis. It is a lot less work to allow that shop back into the program than to go out and find another shop and start from scratch. ABN: Do you have a field force?

Audi: We have Area After-Sale Managers who work with both dealers and shops, but they are not collision-dedicated. ABN: What has been the biggest challenge in establishing the network?

Audi: Today in 2018, most people in the industry know about high-strength steel, aluminum and such, and know that vehicles with these substrates require different tools, equipment and procedures. When we started back in 2003, this was a foreign concept to most people—even those in the industry. See Shop Certification, Page 79


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Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.

Shop Strategies

How to Build Customer Loyalty, Prepare for the New Customer Mindset with Stacey Phillips

According to surveys conducted by Phoenix Solutions Group (PSG), close to 80 percent of body shop customers choose a collision repair facility that they feel has their best interests at heart. Nick Schoolcraft, president of the Illinois-based company, said shop owners and employees need to stop worrying about what their insurance partners and competitors are doing and how they are marketing. Instead, he stressed the importance of understanding how to best interact with customers and connect with them emotionally. “A collision is an extremely emotional event. We really need to focus on building a strong relationship with customers as soon as they walk in the door,” said Nick during a presentation he gave this past November at the SEMA show in Las Vegas, NV, as part of the SCRS Repairer Driven Education Series. He told conference attendees that taking the time to build this type of relationship will help shops

gain repeat customers, referrals, inNick. “Truly understanding your cuscrease sales and ultimately, run a more tomers is the only way to build loysuccessful business. alty.” Nick’s father, Steve, founded PSG During his SEMA presentation, in 1988 following a car accident. “The Time Has Arrived for Change,” “The experience was so horrible, Nick discussed the new consumer he set out to change the industry,” said mindset. Nick. “Customers are expecting Since then, the company different types of experiences has concentrated 100 percent than they used to,” he said. of its efforts on developing “They are no longer delineatmarketing strategies for repair ing between a retail store and facilities. Part of that focus ina body shop.” cludes surveying collision Instead, they are expecting clients, which gives the com- Nick Schoolcraft, the same type of experience president of pany tremendous insight on they receive from forwardcurrent industry trends and Phoenix Solutions thinking companies, regardGroup ensures shops have a multiless of the industry. dimensional understanding of the voice “Eighty-seven percent of conof the customer. sumers measure all brands against Based on PSG’s research, the comApple, Amazon and Netflix, so having pany found that most shops focus on a deeper understanding of the voice of quality. the customer is critical for businesses “Quality isn’t a differentiator or operating today,” explained Nick. motivator—it’s an expectation,” said PSG surveys specifically focus

on gathering this type of information for the collision repair industry. “Gone are the days where quality and efficiency led the charge for how people chose a body shop,” he said. “Those reasons are actually 1 percent of the total decision that we see in our data.” Nick said customers are now choosing where to take their vehicles based on past experiences, reputation, honesty and additional factors that lead to a really great customer experience. “What’s even more interesting is that in the past 10 years, we’ve seen a 750 percent increase in the number of decision factors that people go through when deciding on a body shop,” said Nick. “More people want the opportunity to make a decision on their own. They don’t want to be told what to do or where to bring their cars.” He pointed out that this movement toward consumer choice is becoming

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apparent with insurance companies too, which has been demonstrated by the recent closing of estimating facilities and the implementation of mobile estimating applications. With an extensive background in marketing, Nick joined Accenture six years ago as a subject matter expert focusing predominantly on customer and employee experience strategies for Fortune 100 brands. “The best type of marketing today is word-of-mouth—interactions with human beings,” he explained. “The ability to connect with a human being is the best way to sell anything. You typically want to buy from those you care about.” Typically, after individuals have been in an accident, they go through a series of processes such as calling the insurance company, the police and the rental car company. When it comes to making a final decision on which shop they ultimately go to, they reach out to those they are closest to, such as friends and family, as well as do online research. “By understanding what your customers want, how they are feeling and what they are looking for, you have the opportunity to differentiate yourself

through empathy,” said Nick. “This ensures a shop has a leg up when selling its services.” He also recommended offering customers an experience that is unmatched. “The problem is that a lot of body shops believe it’s all about getting the vehicle in and out,” said Nick. PSG surveys have consistently shown that customers expect that the car will look the same as it did before the accident. “The differentiator is the shop’s ability to connect one-on-one with the customer,” Nick said. By taking the time to really understand customers and learn exactly what they want, Nick said shops can drive a better marketing strategy and enhance customer interactions. Being courteous, shaking hands, looking a customer in the eye and keeping customers informed about the repair process all contribute to connecting with them emotionally. Nick said that a mutually beneficial relationship with customers in which they feel part of the repair process has been shown to drive best-in-class experiences. Over the last year, a large part of what PSG has set out to do is under-

KEARNY MESA

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stand the areas of the business where it could enhance interactions with customers. This has led to three top priorities for 2018: social media, employee engagement and dynamic marketing. “We are keeping my dad’s legacy as close to heart as we can and finetuning it to be more adaptive to today’s industry’s needs,” said Nick.

1) Social media “I believe a lot of people in the industry today don’t necessarily understand how to use social media effectively,” said Nick. “The misnomer is that many believe that social media should be used as a conversion tool, but the real goal of social media is to create awareness and have a social conversation with those who are following you.” As more people become interested in what you have to say, Nick said, a better social media following will result. Deep customer insight is also critical for businesses, according to Nick. PSG uses the insights gathered from its unique survey to build a robust social media marketing strategy for customers. This involves creating captivating, unique content to drive engagement.

“Social media is only beneficial when the content is relevant to its followers—not through generic, recycled content about cars. If you are posting the same thing that your neighbor is posting or other shops in the country are, your relevancy isn’t really shown,” he explained. “Google and the other search engines pick up on that and it hurts you in the long run.” In addition, he recommended having a consistent look, tone and feel with all social media posts. “This requires a lot of work and insight, but the benefits are far greater when done the correct way,” he said.

2) Employee engagement Another key focus this year for PSG is offering dynamic online learning and training for shops. The company recently invested in a learning management system that will assist collision repair facilities in choosing the training courses that best meet their needs. “The training will be individually tailored to each shop and be directly related to the metrics PSG gathers,” said Nick. He said this will help customers better understand the information the See New Customer Mindset, Page 70

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Shop Strategies

Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.

Mitchell’s ‘Program Freedom Experience’ Features Newest Products, Services with Stacey Phillips

Mitchell executives recently presented the company’s newest products and services during a special event in Palm Springs, California, held in January.

calculations and automate workflows to enhance efficiency for users. Over the next decade, under the leadership of Debbie Day, Mitchell’s auto physical damage business unit will focus on two key themes: proper and safe repairs and partnering with others in the industry to allow more seamless connectivity for the ultimate benefit of the customer. Day joined the company 18 months ago. During the presentation, she outlined the company’s goals and how they relate to the recently announced Freedom initiative.

Alex Sun, Mitchell’s CEO

Titled “The Mitchell Program Freedom Experience,” the afternoon presentation showcased the work the company has been doing over the last few years to ensure it will continue to be a valuable solution provider for repair facilities. These include Mitchell WorkCenter, Mitchell RepairCenter, Mitchell Cloud Estimating and Mitchell Parts. “For me, Program Freedom exemplifies the dynamism we are experiencing in our industry today and the increasing level of sophistication and complexity that is being introduced into the environment,” said Alex Sun, Mitchell’s CEO. “You can’t look at that and not be thinking about how we all

Debbie Day leads Mitchell’s auto physical damage business unit

need to refine or redefine what we do in our business models, so we can ensure we have successful enterprises and we are vital to the ecosystem at large.” Sun explained Mitchell’s plans to continue to invest heavily in technology solutions that are used to make

minded partners who together are creating a seamless experience and interoperability, taking the collision repair and claims industry to the next level.

product management, spoke to attendees about first notice of loss (FNOL). “To Mitchell, that really means embracing consumer self-service products,” said Bainer. “We have built a suite of smart mobile products that give insurers the ability to give their customers the products they want, when and where they want.” Bainer outlined the current (l to r) Kevin Machell-Cox, Dune Pagaduan, Mike Lawlor Mitchell products offered in and John Eck regard to FNOL. Mobile First During the event, Mitchell exec- Notice of Loss allows consumers to reutives outlined the six stages of the re- port the facts of loss, identify the vepair process, from the initial claim hicle damages, determine the best (first notice of loss) to the final deliv- inspection channel available and ery of a properly and safely repaired schedule an appointment. Photo-Based vehicle. Following their presentations, Estimating with Guided Photo Capture demonstrations of Mitchell products gives consumers the capability to take were offered to the more than 200 at- pictures of damaged vehicles and gettendees. ting them back to the insurer so they can be reviewed and ready for an estimate. The tool was built to expedite 1) First Notice of Loss (FNOL) Chris Bainer, Mitchell’s director of See Program Freedom, Page 71

(l to r) Hans Littooy and Chris Bainer

“Freedom is not one thing, and it’s not a product,” explained Day. “It’s a concept where the industry works together to solve its challenges.” Day outlined the four pillars of Freedom: • Single Open Cloud Solution: The Mitchell product is 100 percent cloudbased and offers both EMS and BMS support, as well as transactional capabilities. • Claims Automation: This touchless claims processing method offers artificial intelligence capabilities as well as big data and predictive analysis. • Proper & Safe Repairs: Using advanced analytics, Mitchell’s focus is on comprehensive proprietary information that is contextually and intelligently accessible. This includes enhanced editorial content, diagnostics, OEM-specific estimating and certified network management. • Partner Well: Mitchell’s partners encompass carriers, MSO/repair facilities, OEMs, and additional strategic partners and industry leaders. Day said that Mitchell is working toward a strong collaboration with like-

68 MARCH 2018 AUTOBODY NEWS | www.autobodynews.com

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42 Apprentices Join Service King’s Training Program

Service King Collision Repair Centers announced it has officially accepted and welcomed 42 new auto body repair technicians to its growing Apprentice Development Program at locations in five different states across the U.S. “The entire Service King family is thrilled to welcome the latest class of apprentice technicians,” said Tyra Bremer, Service King Vice President of Talent Development. “It is exciting to witness our apprenticeship program continue to grow and provide immersive training opportunities to aspiring technicians from across the country. We look forward to equipping and training each of the 42 technicians who joined our family this week to prosper in the next chapter of their careers.” The immersive approach to Service King’s Apprentice Development Program features a proprietary curriculum developed with insight from master auto body technicians, management and leading experts from across the industry. The Apprentice Development Program officially launched in 2015, placing more than 125 certified auto body technicians into its workforce.

Continued from Page 67

New Customer Mindset

company supplies and provide employees with tactics on how to improve performance metrics. “We want to ensure our customers’ employees feel as though they have the tools they need to become better educated, and we also want to put in measures for the ownership team to better understand how their employees are doing and the competencies that are occurring within their shops,” he explained. The courses will be focused on management skills and what Nick referred to as the “soft skills” of the industry. “PSG has always been focused on the front of the house instead of the back of the house, and our focus will continue to remain there,” he said. These include courses on topics such as how to set proper expectations up front for customers, how to communicate effectively throughout the repair experience and how to follow up with customers after delivering their vehicles. The courses will be based on the metrics PSG gathers from

SIERRACHEVROLET

shop customers and are expected to be available within the second quarter of 2018. “One of the things that my father always wanted to do is be everything for everybody at every point of the day,” said Nick. “This is our way of extending that to the industry.” Many of the trainings will resemble what Steve created, while being updated to industry standards and expectations.

3) Dynamic marketing PSG also plans to offer shops the ability to market to their individual customers dynamically by personalizing post-repair follow-up letters. Currently, PSG assists shops by sending out hand-signed letters that are focused on particular parameters. “The future letters we send out to customers will change based on the feedback we gather,” said Nick. “They are going to be highly personalized to the individual while incorporating elements the shop wants to market, which will garner a much better response and build trust.” Nick said that this will help address the needs of customers more directly as well as allow more freedom

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in choosing the types of messages sent. “Ultimately, it enables a more personalized experience for shops and their customers,” he said. “Our mission for 2018 is transformation—solidifying the core that my dad created over the past 30 years, which is ensuring we are 100 percent focused on the collision facilities and delivering best-in-class types of products for them. Not only do we want to stay true to the industry and their needs, but we are trying to find ways to incorporate that ever-changing customer mindset.”

For more information about Phoenix Solutions Group, contact Nick Schoolcraft at 847-764-8079 or visit www .phoenixsolutionsgroup.net

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Continued from Page 68

Program Freedom

claims processing and settlements, which is expected to lower loss adjustment expenses. Through Mitchell’s partnership with Guidewire, Mitchell also built two accelerators available today. These include FNOL with guided photo capture application and a standalone guided photo capture application.

2) Network Certification & Assignment Dune Pagaduan, Mitchell and John Eck, General Motors Dune Pagaduan, senior manager, product management for Mitchell, talked about triage and Mitchell’s intelligent assignment for dispatching vehicles to certified repair facilities. “Today’s vehicle complexity is driving the need for certified network management and an intelligent assignment system,” said Pagaduan. “It’s very challenging to take a look at the damaged vehicle and match that with an appropriate repair facility that has the tools and knowledge to handle that repair. It’s important to get consumers back to pre-accident condition

as quickly and safely as possible.” Some of the decision-making factors that help facilitate this intelligent assignment include the proximity to the consumer, whether or not the repairers are qualified to handle the job, if they own the necessary equipment and if loaner vehicles are available.

(l to r) Steve Hansen and Trent Tinsley

“As a consumer, we would like to know all of this information, and collectively as an industry, we have a duty and a responsibility to provide this information,” said Pagaduan. “Based on expertise, qualifications, certification, capacity, skills and expertise of the shop, we find the best match,” said Pagaduan. “Then we present that information to the consumer, who ultimately makes the decision on where to go.” John Eck from General Motors

offered insight on the partnership with Mitchell and how information is facilitated to efficiently improve the repair process and ultimately, the experience for customers.

3) Repair Connectivity & Rental Workflow Steve Hansen, Mitchell and Trent Tinsley, Enterprise

Steve Hansen, Mitchell’s director, product management, explained how Mitchell is offering repair facilities the opportunity to receive an estimate in real time using Mitchell Connect. This allows shops to document damage and communicate with their partners in a seamless manner to fulfill their assignment and repair the vehicle safely. In 2017, Mitchell added 19 carriers, 13,000 shops and uploaded 2 million estimates plus 40 million attachments into its Mitchell Connect solution. “It’s so simple that the repair facilities are able to focus on what matters-—and that’s performing a safe and proper repair,” said Hansen. In addition, a message capabilities system has been incorporated into Mitchell Connect so repair facilities

and their partners can share information and keep up-to-date on the status of the repair. “Mitchell Connect is the single source of all work that the shop has and allows the ability to simply iden-

(l to r) Michael Simon and Jack Rozint

tify the assignment that was given to the proper repair facility,” explained Hansen. From within Mitchell Connect, a shop receives all of the information from all parties. Trent Tinsley from Enterprise then talked about the partnership with Mitchell and Enterprise, which now gives shops the capability to incorporate the rental process into Mitchell Connect.

4) Diagnostic Scanning, Pre-Scan Jack Rozint, Mitchell and Michael Simon, Bosch

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Jack Rozint, Mitchell’s vice president, sales & service, repair, discussed vehicle complexity and the high level of instrumentation in cars today. “We’re actually repairing a computer network on wheels,” he said. As a result, he said nearly all OEM position statements make it clear that scanning is a necessary part of the repair process.

(l to r) Eric Mendoza, Palak Samel and Eric Valenzuela

“Just 10 years ago when a new model vehicle came out, if your technician was I-CAR-trained and had the right welders and was a good tech, he could take the next model car and repair it using the same tools, equipment and procedures, and everything was fine,” said Rozint. “That is no longer the case.” He said research has shown that 80 percent of the shops that have installed OEM repair procedure databases don’t use them. “The reasons you hear are ‘I’m too busy,’ and ‘I don’t have time, and it takes a long time to go and search through the OEM repair procedures,’”

Rozint said. He said there are four keys to success to ensure a proper and safe repair. These include researching the vehicle equipment and accessing the OEM repair procedures; doing a diagnosis of the car with a pre-scan and teardown; the repair/recalibration of the vehicle; and then performing systems tests and a post-scan to validate and conduct quality assurance. Rozint discussed the company’s partnership with Bosch on diagnostics and then demonstrated Mitchell diagnosis tools on two vehicles: a 2016 GMC Arcadia and a 2017 Toyota Forerunner.

5) Cloud Estimating and the integration of repair procedures Palak Samel, Mitchell, and Eric Mendoza, Toyota

Palak Samel, senior manager, product management for Mitchell, discussed Mitchell Cloud Estimating, which was introduced in March 2017, and the integration of repair procedures. She said Mitchell Cloud Estimating allows users the freedom to write estimates anywhere, any time and on any device. “For repair facilities, Mitchell Cloud Estimating provides a solution that enables shops to focus on proper and safe repairs, shop performance and customer satisfaction,” said Samel. “For insurance carriers and independent appraisers, it provides more accu-

rate estimating and better customer satisfaction.” The flexible cloud-based app integrates Mitchell Diagnostics, Mitchell Parts and TechAdvisor for OEM Repair Procedures. In addition, Samel explained that the adaptable solution will

He talked about repair management, including integrated parts, repair procedures and calibration. “As an industry, we all want the same thing—to deliver a proper and safe vehicle to our end customer,” said Butch. “What we also want to do at Mitchell is make sure repair facilities’ solutions are efficient and easy to use.” When it comes to repairing the vehicle, Butch said there are three areas of focus. The first is ensuring the correct parts are on the vehicle. He said the Mitchell Parts portal will allow repair facilities the (l to r) Kenny Crumpler, Thomas Butch and Bill Lopez freedom to automatically dienable Mitchell to evolve the technolrect estimators to parts providers ogy as more complex vehicles are inbased on information from the estitroduced. The goal was to design a mate. The next area of focus is ensurproduct that could be used by a novice ing the repair is being done correctly, estimator as well as an experienced one. using calibration and controller proOther features include an intuitive gramming. Third, he said, is being search capability and guided estimating able to provide a clean bill of health to help in the decision-making process. for the vehicle with a post-scan. Eric Mendoza from Toyota also talked “Our goal is to ensure that a safe about the functionality of Mitchell and properly repaired vehicle is reCloud Estimating with Toyota vehicles. turned to the customer,” said Butch. “By providing the right parts, procedures and the ability to calibrate and 6) Repair Management Thomas Butch, Mitchell and Bill do the right repairs, we believe we can Lopez, VP and GM for the collision do that.” business unit for OEC For more information about Mitchell’s Thomas Butch, director of product solutions, contact Rebecca Janzon at management for Mitchell, oversees the 858-368-8254 or visit http://freedom company’s repair facilities solutions. .mitchell.com/faqs/.

GCIA Kicks Off 2018 with Presentation by Attorney Erica Eversman by Chasidy Rae Sisk

On Jan.18, the Georgia Collision Industry Association (GCIA) held its 2018 kickoff meeting—the group’s first meeting since the passing of Executive Director Howard Batchelor last fall. Despite a highly unusual dusting of snow that caused business closings for several days, around 40 collision repair industry professionals braved the inclement roads to learn how to protect themselves from litigation and be properly compensated for completed repair operations during a presentation from industry attorney Erica Eversman. The meeting was held at Wyndham Atlanta Galleria in Atlanta, GA. Association Secretary Gregg Goff feels association meetings like this one are important in order to “provide information to shop owners and managers that help them promote a more professional and complete repair process. Many do not have time dur-

ing their day to catch up with recent events or news from the collision repair industry.” Goff opened the meeting by discussing several upcoming events for the association: the 2018 Southern Automotive Repair Conference (SARC) in Biloxi, NACE/Automechanika in Atlanta later this year and GCIA’s 2018 golf tournament, scheduled to take place this fall. After reminding association members to update the VRS Labor Rate Survey, he introduced three candidates for the office of Insurance Commissioner in the 2018 election: Tracy Jordan, Jim Beck and Shane Mobley. Goff then introduced Erica Eversman, Chief Legal Counsel for Vehicle Information Services, who presented “Providing Customers Safe, Proper Repairs and Recent Lawsuits Exposing Insurer Interference with that Goal.” Eversman stressed the importance of following OEM procedures and documentation during the repair process. “Erica discussed the difference between a cost estimate (insurer esti-

72 MARCH 2018 AUTOBODY NEWS | www.autobodynews.com

mate) and the damage analysis,” Goff shared. “Cost estimates are done by insurers to verify and document the loss while allocating funds internally to be available for the payment of the claim, and the damage analysis should be completed by the shop as the blueprint for the repair. She discussed how DRP arrangements are seen by legal means as ‘electing to repair’ by insurance companies and puts liability on them for the repair completed, along with the shop. As such, the insurance estimate should not even be considered for the repair process; this keeps the authority in the hands of the shop where it belongs.” Further exploring the implications of shop liability, Eversman cited the following court cases as evidence of the importance of shops following the correct procedures and standing up for themselves and their customers: Cook v. State Farm (KY, 2004), Smith v. American Family S. W. (MO, 2009), Progressive v. North State Autobahn Greg Coccaro (NY, 2011), Seebachan v. John

Eagle Collision Center (TX, 2017), and Nick’s Garage v. Progressive/Nationwide (NY, ongoing). Goff recalled, “As vehicles evolve with ADAS options, they are becoming more and more complicated to repair. Shops must invest in training, equipment, scan tools, OEM procedure information and an internal documentation and auditing program to indemnify themselves in case of legal ramifications relating to repair. Shops must follow OEM repair procedures to protect themselves and their customers.” After her presentation, Eversman engaged in a question-and-answer session, which elicited insightful feedback from attendees. She concluded with, “The real question is whether you, as the repairer, would be willing to repair your child’s vehicle in the same way and feel safe with them on the road.” For more information, visit www.gcia .org.


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Hyundai Showcases World’s 1st Self-Driven Fuel Cell Electric Vehicle

A fleet of Hyundai Motor Company’s next-generation fuel cell electric cars has succeeded in completing a selfdriven, 190-kilometer-journey from Seoul to Pyeongchang. This is the first time in the world that level 4 autonomous driving has been achieved with fuel cell electric cars, the ultimate eco-friendly vehicles. Until now, autonomous driving has been demonstrated at a limited speed on some sections of domestic roads, but this is the first time autonomous cars have driven such a long distance at 100 km/h-110 km/h, the maximum speed allowed by law on Korean highways. Five Hyundai vehicles completed the journey. Three vehicles are based on Hyundai’s next-generation fuel cell electric SUV NEXO, scheduled to be released in Korea next month, and the other two are Genesis G80 autonomous vehicles. All vehicles are equipped with level 4 self-driving technology, as defined by the SAE international standards, and 5G network technology. The vehicles used for the demonstration are “futuristic vehicles” that closely represent Hyundai’s three visions for future mobility: con-

nected mobility; freedom in mobility; and clean mobility. The demonstration started in Seoul on Feb. 2 with the ‘CRUISE’ and ‘SET’ buttons being pressed on the autonomous-driving steering wheel of each vehicle, at which point the cars immediately switched to self-driving mode and began the 190-km journey to Pyeongchang. Entering the high-

them to recognize surrounding vehicles more accurately and make better judgments at junctions and at branching roads, navigate through toll gates by accurately calculating the toll gate’s width and position, and precisely pinpoint the vehicle’s position on a map by using external sensors fitted for situations when the GPS signal was interrupted, such as going through

way, the vehicles moved in response to the natural flow of traffic. They executed lane changes, overtook maneuvers and navigated toll gates using Hi-pass, South Korea’s wireless expressway payment system. Building on the successful demonstration of Hyundai’s vehicles, which drove autonomously in Las Vegas during the Consumer Electronics Show (CES), these cars featured a number of advanced technologies that enabled

long underground tunnels. Hyundai conducted a significant number of highway test drives amounting to hundreds of thousands of kilometers traveled, which enabled them to accumulate a vast amount of data that helped enhance the performance of its self-driving vehicles. “Hyundai’s philosophy for developing autonomous driving technology is to provide the highest level of safety combined with a high standard of con-

“Hyundai’s philosophy for developing autonomous driving technology is to provide the highest level of safety combined with a high standard of convenience that our customers expect,” — Jinwoo Lee

venience that our customers expect,” said Jinwoo Lee, head of the Intelligent Safety Technology Center at Hyundai Motor Group. The exterior and interior of selfdriving vehicles used for this demonstration look similar to Hyundai’s other mass-produced models, but they are equipped with various cameras and LIDARs. Adding a small number of sensors to mass-produced vehicles has enabled the realization of fully autonomous driving technology, and thus brings the company a step closer to the commercialization of self-driving technology. Autonomous driving processes a high volume of data, which requires a lot of power. The fuel cell electric model is able to produce electricity through a reaction between hydrogen and oxygen in the fuel cell stack, making it the optimal vehicle model choice for this test. The NEXO fuel cell electric SUV can drive more than 600 km on a single charge, which takes approximately five minutes. The model boasts a worldclass system efficiency of 60 percent, durability equivalent to internal com-

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bustion engine-driven vehicles and a load space of 839 liters. Connectivity Enhanced Infotainment System: Utilizing the 5G network of KT Corp., a Korean mobile service provider, the vehicles deliver five new advanced information technologies, all accessed through a user interface (UI) that provides an intuitive user experience.

Passengers in the rear seats can use “Home Connect,” a car-to-home technology that enables the user to access and control IoT devices installed in their smart home. They can view home camera images in real-time, control the lighting, remote door lock or TV, and even manage home energy systems. Hyundai plans to phase in the home-to-car and car-to-home tech-

nology to its vehicles from the first half of 2018 and from 2019, respectively. “Assistant Chat” is a technology that allows users to ask a Chat Bot questions with simple voice commands and receive answers in the form of text or images. “Wellness Care” can monitor health information of passengers seated in the rear of the vehicle, such as their stress level, heart rate, and mood state. They can also access relaxing therapeutic services, and they can be connected with a health consultant through a real-time video call. In addition, the vehicle also provides “Noise-Away” cabin noise reduction technology, and “Mood Care,” which provides rear door mood lighting when the music player or Wellness Care is active. The Korean karaoke application “Everysing” also allows passengers to sing along to music on their journey, and it’s possible to stream video to the rear-seat entertainment system. Lastly, users can receive real-time traffic information notifications, supported by

multiple languages, including Korean, English and Chinese. These advanced infotainment features enable drivers to make the best use of their time spent in autonomously driven vehicles, making them more than a simple means of moving from one location to another. Hyundai Motor Group, which includes flagship units Hyundai Motor and Kia Motors, is preparing for the commercialization of the SAE standard Level 4 compliant autonomousdriving system in smart cities by 2021. To this end, the company announced plans at CES 2018 last month to jointly develop self- driving technology with Aurora Innovation, a U.S.based autonomous driving startup. Hyundai also plans to commercialize the technology for fully autonomous driving by 2030. Furthermore, since August last year, Hyundai has been researching and building its V2X infrastructure. As a founding member of the American Center for Mobility, an American research institute for future mobility, Hyundai Motor Group last October invested $5 million in the ACM-led construction of state-of-the-art testing facilities.

1Collision Announces New Call Center, Phone App

The 1Collision Network announced the release of a phone app and call center integrated technology solution designed to assist the motorist—from handling the scene of an accident, to finding the nearest 1Collision repair center, to initializing the repair process. The Network Call Center, a function button on the app, will direct consumers through a toll free number, utilizing an advanced zip code locator as well as an option to connect the caller to the network corporate office directly for support. The 1Collision phone app also assists the motorist in the collision repair process, with features such as “What to Do After an Accident,” “Find a Location,” and “Request an Estimate.” Network President Jim Keller commented, “We are excited to launch these tools aimed at assisting consumers with solutions when the unfortunate happens, and also naturally creating opportunities to increase the traffic at our network locations.”

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MI Body Shop Owner Admits to Bribing Police Officer by Robert Snell, The Detroit News

A city police officer in Detroit, MI, has pleaded guilty to extortion for pocketing bribes from an auto collision shop owner.

Charles Wills, 52, struck a plea deal in federal court Feb. 8 for his role in a broader corruption scandal involving six current and former officers that emerged in December. U.S. District Judge Robert Cleland will sentence Wills on June 12 in federal court in Port Huron. The extortion charge is punishable by up to 20 years in federal prison and a $250,000 fine. Wills admitted to accepting more than $4,000 from a Detroit collision shop operator in exchange for referring owners of two abandoned vehicles to that repair shop. Wills received

the payments in September 2014. “This is another stain on the badge, but it’s important to point out that this doesn’t reflect on the entire Detroit Police Department. The majority of our officers do a wonderful job,” Detroit Police Chief James Craig said Feb. 9. Wills is the fifth person charged in the extortion scandal to plead guilty. The others are: ● James Robertson, 45, pleaded guilty to two counts of extortion. ● Jamil Martin, 46, pleaded guilty to one count of extortion. ● Martin Tutt, 29, pleaded guilty to two counts of extortion. ● Anthony Careathers, 52, pleaded guilty to one count of extortion. A sixth person, Deonne Dotson, 45, is awaiting trial. “The vast majority of Detroit Police Officers are courageous, dedicated, superb public servants, but unfortunately these defendants are an exception to that rule,” U.S. Attorney Matthew Schneider said in a statement Feb. 9. Staff writer George Hunter contributed.

NY Auto Body Shop Releases Humorous Video to Ease the Stress of Collision Repair

Barry’s Auto Body announced the release of the third video in its “I Gotta Guy” series, created to make car repair less intimidating. “The Stain” is a satirical script in which Vito, played by George Passiarello, is being chastised by his father, played by Barry Crupi Sr., for being careless and allowing the white interior of his luxury car to become stained with an unidentifiable red substance. Vito’s father takes one look at the stain and smacks Vito in the head declaring, “...that will never come out!” Vito seems unfazed by his father’s anger as he assures him, “I gotta guy...” to get the stain out. As in the other videos, the camera cuts away to Barry Crupi Jr. standing in the showroom of Barry’s Auto Body as he describes how the shop will use environmentally friendly products to remove the stain and return the vehicle to good-as-new con-

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We thank The Detroit News for reprint permission.

Industry Invited To Sponsor Uniforms for Collision Education Students The Collision Repair Education Foundation (CREF) is facilitating a uniform donation program between collision repair businesses and high school and college collision repair programs for the 2018–2019 school year. Uniforms will create a more professional learning environment for students, preparing them for potential careers in the collision industry. Each local student can be sponsored for $50, which provides the student with a Cintas work shirt and pants. Businesses that sponsor more than 20 uniforms can have their corporate logo featured on a patch on the front of the uniform shirts. Students of Barry Roopnarine, a teacher in the collision program at Edison Technical High School, received donations from The Collision Centers of New York Inc. for the 2017–2018 school year. Roopnarine said, “The sponsorship… allows the students to maintain a professional look. It also makes them aware that the collision industry is taking their education seriously, as they are the future of the industry.” Participating businesses can

sponsor schools of their choice, or they can choose to be paired with a school in need by the Education Foundation. The donation program can lead to long-term relationships between professionals and school programs that are preparing the next generation of collision industry employees. Madison Larson, Human Resources Representative from The Collision Centers of New York Inc., said, “As we move into 2018, it’s important to invest and encourage our next generation of technicians. These uniforms for the Thomas E. Edison auto body program allow the students to feel like they are a part of something special. It creates confidence and excitement for the program. The program is very dedicated to its students, and we are thrilled to be a part of that.” Sponsorship and donations are facilitated through the Collision Repair Education Foundation, but sponsoring businesses are invited to visit the school to meet the students and distribute the new uniforms. Roopnarine said, “Having members from the Collision Centers visit the classroom allowed students the opportunity to explore career op-

76 MARCH 2018 AUTOBODY NEWS | www.autobodynews.com

dition. Later in the video, Donna, played by local comedian Jen Remauro, calls out to Vito and his father, revealing what the red substance is. Previous videos in the “I Gotta Guy” series included education about auto collision repair and how to file an insurance claim. Barry Crupi Jr. said, “We created the ‘I Gotta Guy’ series to relieve the stress that people feel about visiting an auto body shop. Life is stressful enough—We want people to know that automotive and collision repair doesn’t have to be scary.” The videos can be seen on Barry’s Auto Body website and YouTube channel. In addition to the “I Gotta Guy” series, Barry’s Auto Body provides more than a dozen “How to...” videos, covering everything from how to wash a car to how to remove surface scratches from the car’s finish.

tions and gain a deeper understanding of the importance of their education.” Zachary Concepcion, a 12th grade collision student at Edison Technical High School and recipient of uniform donations in 2017, said the donation shows him and his classmates where they can find opportunities in the industry. “It gives us a reason to never be unprepared… and makes us look really professional as a class,” he said. Companies interested in sponsoring the uniform donation program through the Collision Repair Education Foundation for the 2018—2019 school year should contact Collision Repair Education Foundation Director of Development Brandon Eckenrode at Brandon.Eckenrode@ed -foundation.org or 847-463-5244. Roopnarine said, “Through partnership between collision education programs and collision industry associates, it can lead to opportunities to help fill the technician shortage. Without the efforts of the Collision Repair Education Foundation, this opportunity would not have been possible as they help form a link between collision repair schools and the collision industry.”

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Proposal To Repeal Michigan’s No-Fault Car Insurance System by Staff, UpMatters.com

State Rep. Beau LaFave recently joined House colleagues in unveiling an eight-bill package repealing Michigan’s no-fault car insurance system to bring significant relief to drivers paying the nation’s most expensive insurance premiums.

The proposal repeals the nofault system and moves Michigan to a full-tort system similar to other states, such as Wisconsin. Another bill in the package continues benefits for everyone already receiving lifetime health care after a catastrophic traffic accident. “I promised during the campaign that I would come to Lansing, play nice and try to reform no-fault,” said LaFave, of Iron Mountain. “The

Lansing special interests refused to negotiate in good faith, and House Bill 5013 failed. I’m not playing ‘Mr. Nice Guy’ anymore. The arguments in support of no-fault have run out of gas. The time has come to repeal it.” Michigan drivers will still be required to have insurance, but these bills provide them with more choice and flexibility by eliminating the mandate to buy unlimited medical coverage. Accident victims will have the ability to sue at-fault drivers for economic damages and non-economic damages, such as pain and suffering. The legislation also includes a “legacy fee” to continue to fund the Michigan Catastrophic Claims Association (MCCA) until it is no longer needed. The MCCA system will be closed to new entrants. “We don’t want anyone already catastrophically injured to lose their benefits,” LaFave said. “We will implement a legacy fee to make sure those now receiving treatment can continue to do so by funding the MCCA.”

Colorado abandoned its nofault system in 2003. According to a 2008 governor’s study, the average car insurance premium in the state decreased 35 percent since the state moved to a tort car insurance system. Michigan drivers could see greater savings by parting ways with its no-fault system, which is the only one in the nation mandating unlimited medical coverage. Florida, one of the 12 states operating with a nofault system, is also debating repeal. LaFave said the plan would bring more insurance companies to the state, including some that have been avoiding Michigan because of its no-fault system. LaFave also noted that the competition from more companies doing business in Michigan will even further drive down car insurance rates. The bill package, House Bills 5517-23, were formally read into the record the week of Feb. 4. This information was provided by the office of State Representative Beau LaFave We thank UpMatters.com for reprint permission.

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On Feb. 7, the Missouri House Transportation Committee held a hearing to address House Bill (HB) 1444. HB 1444 would repeal Missouri’s vehicle safety inspection program. During the hearing, proponents of HB 1444 cited consumer expense and overall inconvenience as justification for the legislation. They also claimed a lack of evidence as to the program preventing accidents, injuries and deaths. Ben Steinman, ASA-Midwest member and owner of Ben’s Auto Body in Mexico, MO, gave testimony supporting the program, along with representatives from the Missouri State Highway Patrol, AAA and other organizations. Following the hearing, Steinman said, “I see vehicles in my shop daily that are unsafe to operate on the highways. If this bill passes, I would be very concerned about the safety of my family and, for that matter, all motorists on our roadways.” ASA continues to oppose HB 1444 and encourages all interested parties in Missouri to visit TakingTheHill.com and click “Alerts” to contact their state representatives in opposition.

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Bill Garoutte to Take Helm at National Auto Body Council

The National Auto Body Council (NABC) is pleased to announce that Bill Garoutte, a veteran business development, marketing and collision industry executive, has been selected to take the helm at the organization. “We are thrilled to have Bill take the lead to continue Bill Garoutte the tremendous legacy and positive impact that Chuck Sulkala and many of our colleagues have made in our collision industry through the National Auto Body Council,” said Darren Huggins, NABC Board Chairman. Through its signature Recycled Rides™ program, NABC members teamed up to repair and donate a record 300 vehicles in 2017, adding to a total of nearly 2,000 over the past 10 years, to individuals and service organizations in need of reliable transportation.

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SCRS Releases Video of ‘Kool Tools From 2017 SEMA Show & More’

Continued from Page 64

Shop Certification

In January, the Society of Collision Repair Specialists (SCRS) held an open board meeting in Palm Springs, CA, including a presentation from the SCRS Education Committee on “Kool Tools” that may provide assistance or convenience in collision repair tasks. The presentation, led by committee member Toby Chess and SCRS Chairman Kye Yeung, was inspired by the wide range of products and offerings exhibited during the SEMA Show in Las Vegas, NV. Each year, the SCRS Education Committee walks the SEMA Show looking for unique tools, equipment and offerings to the collision repair industry that they feel provide notable value in fixing today’s damaged vehicles. Kye Yeung and Toby Chess purchased these tools, tested them and shared some of their favorites during the live presentation at the SCRS Open Meeting in January. SCRS encourages you to subscribe to the association’s YouTube channel SCRSCollision to be notified as new material is released. For more information about SCRS, or to join as a member, please visit www.scrs.com, call toll free 1-877-841-0660 or email us at info@scrs.com.

First, I had to convince our own corporate team at Audi that changes were necessary. Then we had to convince our dealers. They wanted to continue fixing cars the same way they learned 25 years ago. It was a challenge in 2003, but we eventually started changing minds. ABN: What is you biggest challenge in maintaining the network?

Audi: Our biggest challenge is maintaining communication with our shops. It seems the technician base in our shops is pretty solid—few people come and go. The “curn” is with management people in the shops. It’s a real challenge to get them to keep their profile current so we know who we are talking to when we call. It’s also a challenge to keep everyone’s training current. ABN: What do you see for the future of OE certification programs? Audi: I think it is inevitable that all OEs will have some sort of certification pro-

gram. Those that don’t have a program now will start one. Those that have an existing program will put more teeth into it. In the future, I think OEs will make their customers more aware of their programs and find ways to drive more vehicles to their shops. Also in the future, I think insurance companies will pay more attention to certified shops and give them more credence due to liability concerns. ABN: Any final thoughts?

Audi: We have a lot of other ideas to enhance the program. Some are under development, some are still just ideas. But we will continue to move forward with the industry.

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www.autobodynews.com | MARCH 2018 AUTOBODY NEWS 79


Mike Anderson to Host Free Webinars on Locating OEM Procedures

Trainer and consultant Mike Anderson of Collision Advice will host a new series of free monthly webinars, titled “Learn to Research, Research to Learn,” throughout 2018. The webinars are designed to help shops more easily research and find OEM collision repair procedures. Most will include an automaker representative, and attendees will have an opportunity to text in questions during the live webinar, to be answered by Anderson or the OEM representative. “I’ll be focusing on a different automaker each month, and I will walk shop owners, estimators and technicians through the process of using that OEM’s specific website to locate the repair procedures, information and position statements they need,” Anderson said. Anderson has long been a proponent of shops checking OEM repair procedures for every job, and believes far too few shops are doing that. “Once you understand the automakers’ websites and begin using them, it becomes a much faster and

easier process, and these webinars will help shops do that,” he said. “Repetition is key.” The first of the free monthly webinars will focus on Toyota’s Technical Information System (TIS), and will be held at 2 p.m. (Eastern) / 11 a.m. (Pacific) on Wednesday, Feb. 21. Visit the following URL to register: http://bit.ly/2EQiDk7 Collision Advice is a full-service training and consulting firm offering collision repairers’ businesses of all sizes assistance with virtually every aspect of business management and production, including estimating, SOP development, lean principles, accounting, sales and marketing, customer service, negotiating, workforce development, websites and social marketing. Anderson and his Collision Advice team offer dozens of workshops and seminars throughout the country each year, and provide business and shop operational consulting services for individual collision repair businesses. Collision Advice also conducts quarterly “Who Pays for What?” surveys in conjunction with CRASH Network.

Chuck Sulkala Scholarship Fund to Honor NABC Founder

The Chuck Sulkala NABC Appreciation Scholarship Fund has been established to honor the 50-year career and legacy of the retiring Founder and Executive Director of the National Auto Body Council (NABC).

NABC Chairman Darren Huggins presents Chuck Sulkala, with commemorative plaque honoring his years of service

“We know of no better way to thank and immortalize Chuck’s significant contributions and impact than to help ensure that a future generation of collision repair professionals will benefit from the many opportunities created during Chuck’s labor of love to transition the image of body shops into today’s respected collision repair industry,” said Darren Huggins, NABC Chairman. The Sulkala scholarship fund, which will be administered by the Collision Repair Education Foundation (CREF), was announced at the National Auto Body Council’s Annual Member Reception in Palm Springs.

CARSTAR North America Launches U.S., Canada 1st Brand Campaign

This year, CARSTAR North America will launch a new brand campaign across the U.S. and Canada —its first-ever integrated campaign for North America. A new television spot titled “It’s Your Car” will be unveiled in February, airing for the inaugural time during the Winter Olympics across all of Canada. CARSTAR stores in the U.S. will air the spot in local markets. The commercial shares the story that at CARSTAR, “We care, we are efficient and we are accountable. It’s not just a car. It’s YOUR car.” “Our key findings reinforced our understanding that we know no two accidents are the same,” said Michael Macaluso, President, CARSTAR North America. “Every car is different, and each deserves to be treated with care. That’s why we are committed to making every job count. Because when it’s your car, it matters most. At CARSTAR, we work with you to find a solution that best fits your needs, and make sure that when your car is returned, it’s exactly what you expected.”

PPG Funds Refinish Student Scholarships Through CREF

The PPG Foundation has provided $20,000 in funding for the Collision Repair Education Foundation, which will be awarded to students who have demonstrated a career interest in automotive collision repair and refinish. The scholarships, $5,000 each, are awarded annually to full-time students attending a post-secondary school with a focus on degree programs in collision repair. The funds may be used to assist the students with educational expenses such as tuition, books, tools and equipment. Scholarship award winners will be announced later this spring. Domenic Brusco, PPG Automotive Sr. Manager, MVP Business Solutions & Industry Relations, said, “PPG proudly supports the Collision

Repair Education Foundation’s effort to promote careers in the collision industry and assist future professionals as they train for a career. It is more important than ever to showcase the industry as a rewarding career option for students and, through these scholarships, we can help remove some of the financial barriers they face during their technical education.” Industry members interested in working together with the Collision Repair Education Foundation in supporting secondary and post-secondary collision repair students, instructors and their school programs should contact Director of Development Brandon Eckenrode at 847463-5244 or Brandon.Eckenrode@ ed-foundation.org.

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March 2018 Western Edition  
March 2018 Western Edition