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PPG Confirms Interest in AkzoNobel, So Far ‘No’ PPG confirmed on March 10 that it made an attractive and comprehensive proposal to Akzo Nobel N.V. on March 2, 2017, inviting AkzoNobel to enter into negotiations with PPG on a potential transaction to form a combined company, which AkzoNobel rejected. PPG continues to believe there is a strong strategic rationale for the proposed transaction between PPG and AkzoNobel. Michael McGarry, chairman and CEO of PPG, said, “PPG has long admired AkzoNobel’s businesses, global presence, culture and principles as well as its advances in innovative product development and sustainable business practices. We believe a combination of our two companies is a very compelling strategic opportunity. We are
confident that this combination is in the best interests of the stakeholders of both companies as it presents a unique opportunity to build on the successful legacies of our businesses. PPG has carefully considered the interest of all AkzoNobel stakeholders including shareholders, employees, customers and the communities it serves and has proposed its willingness to enter into serious commitments in respect of all stakeholders.” “Strategically, the combination of PPG and AkzoNobel would deliver an enhanced global player in paints, coatings and specialty materials, combining complementary products, technologies and geographies, and would create a stronger competitor in a highly competitive global market.”
Co-Defendants Plead Guilty in CA Insurance “Scratch Out” Fraud Scheme
ered two auto body facilities in Salinas involved in a “scratch out” fraud scheme in which a fully insured vehicle is fraudulently vandalized by the vehicle owner or an associate of the body shop with the owner’s consent. Thereafter, an insurance claim is filed which is typically inflated and often seeks thousands of dollars to repair the fraudulent damage. When the insurance company pays the claim, the money is shared between the shop owner, the vehicle owner, and any other participants in the scheme. One such facility was West Market Auto Body, operated by Martin Lopez. In mid-2015, a joint operation was See Scratch Out Scheme, Page 10
Change Service Requested
P.O. BOX 1516, CARLSBAD, CA 92018
Monterey County District Attorney Dean D. Flippo recently announced that on February 22, defendant Antonio Arias, age 47, of Salinas, pled guilty to a felony charge of auto insurance fraud and defendant Martin Lopez, age 49, of Salinas pled guilty to a felony charge of auto insurance fraud and a misdemeanor violation of worker’s compensation insurance fraud. Sentencing will take place on March 22, 2017 before Judge Andrew Liu. In 2015, investigators from MADCAT (the Multi Agency Detail Commercial Auto Theft), the District Attorney’s Office and NICB (the National Insurance Crime Bureau) discov-
VOL. 35 ISSUE 4 APRIL 2017
CAA Lobbyist Jack Molodanof Updates Chapter on Labor Rate Surveys, 2017 Laws by Victoria Antonelli
On March 2, California Autobody Association (CAA) lobbyist Jack Molodanof addressed a packed room of industry members gathered at the Brookside Golf Club in Pasadena, CA. Attendees enjoyed dinner and networking opportunities from 6pm to 7pm before CAA Glendale/Foothill
CAA lobbyist Jack Molodanof was the featured speaker at the CAA meeting March 2 in Pasadena
Chapter President Hillel Shamam introduced Molodanof. The CAA lobbyist began by explaining the new labor rate survey regulations that took effect on March 1, 2017. In order for insurers to meet the new standardized requirements, labor rate surveys must be current and have to be completed annually. After that time, they become non-compliant, unless they includes a Consumer Price Index (CPI), which allows for a year extension. The surveys must include all auto body shops in the geographical area that are registered with the Bureau of Automotive Repair (BAR). The geographical area is determined through “geo-coding,” a “very accurate” formula that uses the longitude and latitude of a location to determine the six closest auto body shops. See CAA Lobbyist, Page 21
2017 ASCCA/CalABC/CAA Joint Legislative Day is April 25 by Ed Attanasio
Every year, there are more than 2,500 separate bills that hit Sacramento almost simultaneously. How many will potentially harm the collision repair industry and how many might help it? Every year, this deluge of bills comes around like clockwork and that’s why the annual ASCCA/CalABC/CAA’s Joint Legislative Day on April 25 in the State Capitol is always significant, as body shop and mechanical shop owners meet with their representatives to oppose some bills while endorsing others. The individual sifting through these bills right now is Jack Molodanof, the go-to lawyer/lobbyist in California for the automotive repair industry who represents several state-wide automotive associations, inclu- ding the California Autobody Association (CAA) and Automotive Service Councils of California (ASCCA).
Every year, this enormous job is handled adroitly by Molodanof and his team. “We need to find the bills that are going to directly affect the automotive repair industry in California if they pass,” he said. “There are always a lot of different groups out there with different agendas, so we need to be vigilant and thorough to ferret out the ones we need to address.” Again in 2017, CAA partners with the Automotive Service Councils of California (ASCCA)—the largest independent automotive repair organization in California—to hold this event. With more than 800 members, the ASCCA has been representing all areas of the automotive repair industry, including mechanical, auto body, supplier and educators in the automotive technology field for the past 77 years. With scheduled appointments throughout the Capitol’s offices all day See Joint Legislative Day, Page 8
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