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36 YEARS

W ES TE DI TIO N

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

AUTOBODYNEWS.COM

Vol. 36 / Issue 5 / May 2018

CAA Executive Director David McClune Retires After 17 Years

Todd Tracy’s 10 Ways to Avoid a $42 Million Verdict

by Ed Attanasio

Attorney Todd Tracy’s recent lawsuit against a dealership body shop marks the start of a profound shift for collision repairers. Below is his list of 10 Ways to Avoid a $42 Million Verdict, co-authored by Gene Bilobram, who wrote “The Pre and Post Scan Revolution” featured in Autobody News last spring.

Since 2001, David McClune has been the Executive Director of the California Autobody Association (CAA). Last month, he stepped down to focus on his health and family. During his 17-year reign, McClune built a reputation for being honest and accountable, and worked diligently to improve CAA for its members and business partners. To become the organization’s Interim Executive Director, Don Feeley resigned from the Executive Committee and will form an Ad Hoc

David McClune (center), with CAA State President Kathy Mello and Northern California Representative Pete Bezek, is retiring after 17 years as the Executive Director/COO of CAA

Committee to search for a permanent full-time Executive Director. Ted See David McClune, Page 6

MSO Drops Use of PartsTrader, Remains on State Farm’s ‘Select Service’ Program by John Yoswick

State Farm is allowing Caliber Collision centers participating in the “Select Service” program to remain on the program without using PartsTrader for State Farm claims. Caliber’s corporate office declined to comment on the change, but sources have told CRASH Network that Caliber CEO Steve Grimshaw announced at a company gathering in February that Caliber was curtailing its use of PartsTrader. “We’re now using PartsTrader only for The Hartford,” a source at a

Caliber location in North Carolina confirmed. “I’m not sure if it’s a pilot for [State Farm] dropping PartsTrader, or what.” It is unclear whether the change was initiated by State Farm or Caliber. One source within Caliber said that he expects the company’s use of PartsTrader for The Hartford to end in the near future as well. An estimator at a Caliber location in Georgia said he was happy with the change. “You still have to do your due diligence in searching for alternative parts [for State Farm claims],” he See ‘Select Service’, Page 14

by Gene Bilobram and Todd Tracy

1) Always Follow OEM Repair Specifications Refer to vehicle-specific (year, make, model) and repair-specific OEM repair manual information on every repair. Follow up by seeking any OEM position statement, Technical Service Bulletin (TSB), recall or general procedure applicable to the OEM and its vehicles.

2) Always Follow I-CAR OEM repair procedures do not always exist in a particular vehicle repair situation. In those cases, published I-CAR best practices should be sought out and followed to assure an industry best practices repair. After OEM procedures, always follow I-CAR. 3) Remember Who Your Customer Is The vehicle owner and future owners will live with the consequences of the repairs you make. Keep the customer informed about the high standard of repairs the shop is striving to provide with any insurer resistance to same. It’s the shop’s duty to involve the customer rather than make unilateral decisions which can compromise repairs. The shop’s overriding duty is to provide the safest repair See 10 Ways to Avoid, Page 18

State Farm Responds to Claims of Influencing Non-OEM Auto Repair by Katherine Coig, glassBYTEs.com

A jury recently found Texas-based John Eagle Collision Center liable for injuries sustained by Matthew and Marcia Seebachan following a 2013 crash because a repair was not done according to OEM specifications, according to the verdict. Now, State Farm is in the spotlight for its alleged role in influencing that repair. The couple is suing for negligence and breach of warranty. The lawsuit stems from a non-OEM roof repair, which used an adhesive instead of being welded as Honda’s specifications outlined. According to John Eagle’s director Boyce Willis, State Farm wouldn’t pay the shop unless the repair was done according to its specifications as opposed to Honda’s. “No insurance company should

ever dictate to a collision repair center or body shop how to repair a vehicle. To do so is extremely negligent, and shows a wanton disregard for human life and the safety of others,” said Todd Tracy, attorney for the plaintiffs. “John Eagle did not repair the subject 2010 Honda Fit to Honda’s body repair specifications due to State Farm’s instructions, threats and/or coercion.” State Farm attorneys have responded to the allegations, denying the insurer had any influence over the repair. “To the extent alleged, Defendant denies that it coerced or enticed any body shop to not follow vehicle manufacturer’s procedures, cut corners, take safety shortcuts, or do anything that jeopardizes members of the motoring public,” the response reads. “Defendant denies that it forced John See State Farm Responds, Page 12

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Dealer’s Association Concerned About Tariffs

CONTENTS Led to CAPA Certification Program . . . . . . . 38

$2.5 Million Blaze Destroys Auto Shop at Mt. Whitney High School in CA . . . . . . . . . . . 9 2 Great Danes Reign at Top Dog Garage . . . . . 59 ASA Northwest ATE Sells Out for 5th Year . . . . . 6 CAA Executive Director David McClune Retires After 17 Years . . . . . . . . . . . . . . . . . . 1 Car Fire Burns Auto Body Shop Owner in Yakima, WA . . . . . . . . . . . . . . . . . . . . . . . . 9 CARSTAR Auto World Collision Opens as 1st CARSTAR Location in San Francisco . . . . . . 15 CARSTAR Espana’s 2nd Location in San Jose, CA. . . . . . . . . . . . . . . . . . . . . . . . 10 Chair of CAWA Board of Directors Appoints 2 Industry Veterans to Association’s Manufacturers’ Advisory Council . . . . . . . . . 16 Fix Auto USA Launches Specialized Collision Services Center in CA . . . . . . . . . . . . . . . . . 14 Former Auto Body Artist Explores Mediterranean Cuisine in WA . . . . . . . . . . . 12 NATA Hosts Lunch and Learn on New OR Equal Pay Act . . . . . . . . . . . . . . . . . . . . . . . . 6 NV Body Shop Donates Handicap-Adaptive Vehicle to Teen After Accident . . . . . . . . . . . . 8 OR Auto Body Repair Program Receives $250,000 Donation . . . . . . . . . . . . . . . . . . . 10 Walla Walla, WA, Community College’s Try-A-Trade Draws Crowd . . . . . . . . . . . . . . 10

NATIONAL 1936 Ford Donated to TX Auto Collision and Management Technology Program . . . . . . . 60 AAPEX 2018 Opens Attendee Registration . . . . 15 Access Insurance Company Ordered Into Liquidation . . . . . . . . . . . . . . . . . . . . . . . . . 62 Affectiva Launches Emotion Tracking AI for Connected Car Drivers . . . . . . . . . . . . . . 66 Arizona Suspends Uber’s Driverless Car Tests . 65 ASA ‘Not-Included Operations’ Update . . . . . . . 65 ASA Endorsement of OEM Service Procedures . 16 ASA-AZ Members Race Go-Karts . . . . . . . . . . 16 CAWA Asks AZ to Educate Public on Vehicle Warranty Rights. . . . . . . . . . . . . . . . 60 Dealer’s Association Concerned About Tariffs . . . 3 FedEx Orders 20 Tesla Semi Electric Trucks . . . 66 Mopar Masters Guild Annual Meeting Mixes Business With Fun . . . . . . . . . . . . . . 54 MSO Drops Use of PartsTrader, Remains on State Farm’s ‘Select Service’ Program. . . . . . 1

Attanasio - The Amazing Art of Chris Harsh . . . 44 Industry Experts Address ‘Shop Liability in New Era’ at NORTHEAST 2018 . . . . . . . . . . 26 Ledoux - Duke, Dunk and DuPont—Tales from the 1930s . . . . . . . . . . . . . . . . . . . . . . 28 Ledoux - OE Shop Certification Programs: Toyota. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Phillips - Award-Winning MSO Experiences Tremendous Financial Growth, Expansion . . 50 Sisk - Get to Know WIN’s 2018 MIW Honorees . 42 Yoswick - Problems With Non-OEM Radiators

Hyundai of Kirkland. . . . . . . . . . . . . . . . . . 59

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

Hyundai of Seattle . . . . . . . . . . . . . . . . . . 59

AutoNation Chrysler-Jeep-Dodge-Ram-

Hyundai Wholesale Parts Dealers . . . . . . . 52 Kia Motors Wholesale Parts Dealers. . . 56-57 Launch Tech USA . . . . . . . . . . . . . . . . . . . 71

Bob Smith BMW . . . . . . . . . . . . . . . . . . . . 40

Malco . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Certifications, Estimating". . . . . . . . . . . . . . 24

Bob Smith MINI. . . . . . . . . . . . . . . . . . . . . 40

Mazda Wholesale Parts Dealers . . . . . . . . 68

Robot Cars: Safety and Liability. . . . . . . . . . . . 64

Capitol Subaru . . . . . . . . . . . . . . . . . . . . . 72

Mercedes-Benz . . . . . . . . . . . . . . . . . . . . 13

San Antonio Hosting Sherwin-Williams

Chevrolet of Anchorage. . . . . . . . . . . . . . . 47

MINI Wholesale Parts Dealers . . . . . . . . . . 64

Chrysler-Dodge-Jeep-Ram of Seattle . . . . 59

Mitsubishi Wholesale Parts Dealers. . . . . . 54

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

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

Colortone Automotive Paints . . . . . . . . . . . 12

Moss Bros. Chrysler-Jeep-Dodge . . . . . . . 19

Cutter Auto . . . . . . . . . . . . . . . . . . . . . . . . 22

Nissan/Infiniti Wholesale Parts Dealers . . . 55

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

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

DCH Auto Group Temecula . . . . . . . . . . . . 34

Porsche Wholesale Parts Dealers . . . . . . . 58

Del Grande Dealer Group. . . . . . . . . . . 20-21

PPG . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 10

Dent Magic Tools . . . . . . . . . . . . . . . . . . . 18

Puente Hills Subaru . . . . . . . . . . . . . . . . . 44

Diamond Standard Parts, LLC . . . . . . . . . . 43

Riverside Kia. . . . . . . . . . . . . . . . . . . . . . . 38

Downtown Motors of LA (Audi, VW) . . . . . . 15

Robaina Industries, Inc . . . . . . . . . . . . . . . 31

ECS Automotive Concepts . . . . . . . . . . . . . 26

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

Verdict . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

EMS Automotive . . . . . . . . . . . . . . . . . . . . 30

Shingle Springs Subaru . . . . . . . . . . . . . . 49

Toyota Suspends Self-Driving Test Program . . . 68

Enterprise Rent-A-Car. . . . . . . . . . . . . . . . 32

Sierra Chevrolet-Honda-Subaru . . . . . . . . 53

Equalizer Industries, Inc. . . . . . . . . . . . . . . 35

Spanesi Americas . . . . . . . . . . . . . . . . . . . 29

First Auto Group . . . . . . . . . . . . . . . . . . . . 42

Subaru Wholesale Parts Dealers . . . . . . . . 67

Ford of Kirkland . . . . . . . . . . . . . . . . . . . . 59

Symach . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Ford Wholesale Parts Dealers . . . . . . . . . . 51

Tacoma Dodge-Chrysler-Jeep-Ram . . . . . 27

Galpin Motors . . . . . . . . . . . . . . . . . . . . . . 25

The Bay Area Automotive Group . . . . . . . . 33

Glenn E. Thomas Dodge-Chrysler-Jeep . . . 11

Valspar Automotive . . . . . . . . . . . . . . . . . . . 7

"NORTHEAST Sessions Focus on OEM Shop

State Farm Responds to Claims of Influencing

Repair Estimating Tool. . . . . . . . . . . . . . . . . 52

Anchorage Chrysler-Dodge-Jeep-Ram . . . 24

BMW Wholesale Parts Dealers . . . . . . . . . 65

‘Take Back Your Business’. . . . . . . . . . . . . . 58

Attanasio - Assured Performance Develops

Attanasio - Shop Owner Invents Revolutionary

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

Kearny Mesa Subaru-Hyundai. . . . . . . . . . 41

Shelly Bickett Receives MIW Award. . . . . . . . . 66

Retain Good Employees . . . . . . . . . . . . . . . 48

Serving Alaska, California, Hawaii, Idaho, Montana, Nevada, Oregon, Washington and Wyoming. Autobody News is a monthly publication for the collision industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2018 Adamantine Media LLC.

Axalta Coating Systems . . . . . . . . . . . . . . . 5

NORTHEAST 2018 Panel Shares Tips to

COLUMNISTS

Attanasio - Fill the Void - How to Find,

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

said AIADA President and CEO Cody Lusk. “Auto sales have flattened in recent months, and manufacturers are not prepared to absorb a sharp increase in the cost to build cars and trucks in America. These tariffs, as always, will be passed on to the American consumer. Shoppers looking for a deal will find that they are paying a new tax to transport themselves and their families.” Steel and aluminum tariffs could directly counteract any benefits American manufacturers have seen from tax and regulatory reform. An analysis of tariffs on steel imposed in 2002 found that the Bush steel tariffs cost 200,000 jobs, including 30,000 in MI, OH, and PA alone.

Fiat. . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

EcoLean Level 1 Workshop . . . . . . . . . . . . . 49

Technology to Provide Shop Accountability. . 40

INDEX OF ADVERTISERS

REGIONAL

The American International Automobile Dealers Association (AIADA) expressed opposition on to President Trump’s plan to place a 25 percent tariff on steel and a 10 percent tariff on aluminum imports. Both metals are needed to produce cars and trucks sold in America and would raise the sale prices of those vehicles substantially. In addition to paying more for their vehicles, American consumers and workers can also expect to bear the brunt of the retaliatory tariffs other countries will almost certainly place on goods manufactured and exported from the United States. “These proposed tariffs on steel and aluminum imports couldn’t come at a worse time,”

Non-OEM Auto Repair . . . . . . . . . . . . . . . . . . 1 Tesla Says Autopilot Was Engaged During Model X Fatal Crash . . . . . . . . . . . . . . . . . . 62 Todd Tracy Delivers Updated Presentation at NORTHEAST 2018. . . . . . . . . . . . . . . . . . 22 Todd Tracy’s 10 Ways to Avoid a $42 Million

Uber Self-Driving Car Crash Lawsuit to be Filed in AZ. . . . . . . . . . . . . . . . . . . . . . . . . . 54 Uber’s Former Self-Driving Chief Still Believes in Dream of Safer Roads . . . . . . . . . . . . . . . 68 WAC Signs Association Paperwork, Elects Officers at Recent Meeting . . . . . . . . . . . . . 66 West-MEC Collision Repair Students at AZ SkillsUSA . . . . . . . . . . . . . . . . . . . . . . . . 18

GM Wholesale Parts Dealers . . . . . . . . . . . 61

Valley Auto Dismantlers Association, Inc.. . . 8

H.E.W. And Associates. . . . . . . . . . . . . . . . . 6

Vintage Flatz/Cumberland Products . . . . . . 9

Haddad Dodge-Kia . . . . . . . . . . . . . . . . . . 28

Volkswagen Wholesale Parts Dealers . . . . 69

Honda-Acura Wholesale Parts Dealers . 36-37

Volvo Wholesale Parts Dealers . . . . . . . . . 62

autobodynews.com / MAY 2018 AUTOBODY NEWS

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How Self-Driving Car Policy Will Determine Life, Death and Everything In Between by Brett Frischmann and Evan Selinger, Motherboard

Self-driving cars are here. More are on their way. Major automakers and Silicon Valley giants are clamoring to develop and release fully autonomous cars to safely and efficiently chauffeur us. Some models won’t even include a steering wheel. Along with many challenges, technical and otherwise, there is one fundamental political question that is too easily brushed aside: Who decides on how transportation algorithms will make decisions about life, death and everything in between? The recent fatality involving a self-driving Uber vehicle won’t be the last incident where human life is lost. Indeed, no matter how many lives self-driving cars save, accidents still will happen. Imagine you’re in a self-driving car going down a road when, suddenly, the large propane tanks hauled by the truck in front of you fall out and fly in your direction. A split-second decision needs to be made, and you can’t think through the outcomes and tradeoffs for every possible response. Fortunately, the smart system driving your car can run through tons of scenarios at lightning fast speed. How, then, should it determine moral priority? Consider the following possibilities: 1. Your car should stay in its lane and absorbs the damage, thereby making it likely that you’ll die. 2. Your car should save your life by swerving into the left lane and hitting the car there, sending the passengers to their deaths—passengers known, according to their big data profiles, to have several small children. 3. Your car should save your life by swerving into the right lane and hit the car there, sending the lone passenger to her death—a passenger known, according to her big data profile, to be a scientist who is coming close to finding a cure for cancer. 4. Your car should save the lives worth the most, measured according to amount of money paid into a new form of life assurance insurance. Assume that each person in 4

a vehicle could purchase insurance against these types of rare but inevitable accidents, and then, smart cars would prioritize based on their ability and willingness to pay. 5. Your car should save your life and embrace a neutrality principle in deciding among the means for doing so, perhaps by flipping a simulated coin and swerving to the right if heads comes up and swerving to the left if it’s tails.

Credit: Shutterstock

6. Your car shouldn’t prioritize your life and should embrace a neutrality principle by randomly choosing among the three options. 7. Your car should execute whatever option most closely matches your personal value system and the moral choices you would have made if you were capable of doing so. Assume that when you first purchased your car, you took a self-driving car morality test consisting of a battery of scenarios like this one and that the results “programmed” your vehicle. There’s no value-free way to determine what the autonomous car should do. The choice presented by options 1–7 shouldn’t be seen as a computational problem that can be “solved” by big data, sophisticated algorithms, machine learning, or any form of artificial intelligence. These tools can help evaluate and execute options, but ultimately, someone— some human beings—must choose and have their values baked into the software. Who should get decision-making power? Should it be politicians? The market? Insurance companies? Automotive executives? Technologists? Should consumers be allowed to customize the moral dashboard of their cars so that their vehicles execute moral decisions that are in line with their own preferences? Don’t be fooled when people talk about AI as if it alleviates the

MAY 2018 AUTOBODY NEWS / autobodynews.com

need for human beings to make these moral decisions, as if AI necessarily will take care of everything for us. Sure, AI can be designed to make emergent, non-transparent and even inexplicable decisions. But since the shift from human drivers to passive passengers in self-driving cars shifts decision-making from drivers to designers and programmers, governance remains essential. It’s only a question of which form of governance gets adopted. The scenario we’ve described is based on an old philosophical thought experiment called the trolley problem. In the original experiment, a person is faced with the decision about pulling a level to divert a trolley from one track to another and in doing so, save five lives but take another. MIT developed a modern interactive version called the Moral Machine. It’s not surprising that the trolley problem comes up in virtually every discussion of autonomous vehicles. To date, the debate has primarily focused on death-dealing accidents and raised important questions about who gets to decide who lives and dies. Some insist that the question of who decides must be resolved before autonomous cars are given free rein on the roads. Others argue that such decisions concern edge cases and should be deferred to the future so that innovation won’t be stalled. And some deny that the trolley problem scenarios are even relevant, once super smart braking systems are built into each car. The critical social policy questions need to be addressed proactively while systems are being designed, built, and tested. Otherwise, values become entrenched as they’re embedded in the technology. That may be the aim of denialists pining for perfectly safe systems (unless they’re truly deluded by technoutopian dreams). The edge case argument is more reasonable if you focus exclusively on the trolley problem dilemma. But the trolley problem captures one small, albeit important piece of the puzzle. To see why, we need to consider scenarios that don’t involve life-or-death decisions.

Let’s focus on accidents. Selfdriving cars will reduce the number of accidents, but again, do not be fooled by the siren’s call of perfection. There still will be accidents that cause:

• considerable bodily loss, such as the loss of limbs, but not death;

• considerable bodily damage that disables the injured person for 24 months;

• considerable mental damage that limits the injured person’s ability to ride in an automobile and forces the person to use less efficient modes of transportation;

• considerable damage to the person’s vehicle; or • damage and delays.

Assume that the smart system driving your car is presented with various options that allocate these costs according to the logics reflected in the death-dealing accident scenario. Again, there’s no value-free way to decide, and it’s not an ad hoc decision. Engineers will embed the ethics in decision-making algorithms and code. Again, society must determine how to proceed proactively. Keep in mind that this governance issue is not about assigning fault; it is only about how to determine moral priority and who should bear the social costs. (Of course, as we transition to smart transportation systems over the next few decades, determining fault may be quite important.) Now, put aside accidents, and still, there are many other costs and benefits that smart transportation systems will be asked to manage. Suppose weather causes a disruption and smart traffic management systems kick in. What should the systems optimize? Should the objective be to minimize congestion or the social costs of congestion? Perhaps letting some folks wait for a while on a fully congested road would allow other folks to get to their destination more quickly. Maybe people should be able to pay for higher priority, in which case their vehicles receive speSee Self-Driving, Page 60


autobodynews.com / MAY 2018 AUTOBODY NEWS

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Stein, past President, will be filling Feeley’s vacated position on the Executive Committee on an interim basis to make the transition as seamless as possible.

benefitted in many ways, so all of us are indebted to David and how he helped us in our businesses through his efforts. Don Feeley will fill the position temporarily until we find a new Executive Director. Our next quarterly meeting will be held on May 4–5 in San Diego, and we will undoubtedly start our search shortly thereafter.”

McClune graduated from University of Oklahoma in 1978 with a degree in political science and worked for eight years as a director with Spies Hecker before being appointed to his CAA leadership role. CAA President Kathy Mello is saddened by McClune’s retirement, but knows that his contributions to the organization will always be remembered fondly. “When I joined the CAA board four years ago, I got a chance to work with David closely. That’s when I saw how dedicated and driven he was,” she said. “He gave it [his] all and we

Molodanof Government Relations President Jack Molodanof, CAA’s lobbyist in Sacramento, worked closely with McClune and said he will miss his leadership and support. “As the CAA Executive Director, Dave provided leadership and oversaw many of the CAA’s legislative accomplishments, including prohibition of capping of paint and materials; greater accountability when insurers require use of aftermarket crash parts and establishing guidelines for conducting labor rate surveys,” Molodanof said. “Thank you for all the

Continued from Cover

David McClune

“He has been huge for us because he really represented us well in the industry and in Sacramento,” — Tiffany Silva

NATA Hosts Lunch and Learn on New OR Equal Pay Act

Oregon Equal Pay law,” Webb said. “There are many specifics that comOn March 15, the Northwest Auto- panies [of all sizes] in Oregon need motive Trades Association (NATA) to comply with. Tom went over hosted a Lunch and Learn event in many of the main features of this Portland, OR, featuring Tom Engel bill. Members asked many questions and the event was very successful. Tom also offered his services for an HR review to anyone who needed it to make sure they would avoid any possible finds by the state for non-compliance.” These types of events are important for association members because “many of our members Tom Engel of PBS Vantage spoke to NATA members about are smaller companies and cannot keep track of the upcoming Oregon Equal Pay Act all the regulations and of Vantage PBS to discuss compli- laws, so NATA steps in to help them ancy with the upcoming Oregon deal with these issues,” Webb explained. Equal Pay Act. The event attracted a full house of around 25 NATA members. NATA For more information on NATA, Executive Director Cathi Webb felt visit www.aboutnata.org. attendees responded “very well” to the information about the new government regulation. “Tom talked about the new www.autobodynews.com

years we worked together. We will miss you. Enjoy every minute of your retirement, my friend!” When CAA State Treasurer Tiffany Silva joined CAA, McClune was at the helm, so he is the only leader she’s ever known, Silva said. “He has been huge for us because he really represented us well in the industry and in Sacramento,” she said. “He did it all and we’re forever grateful to him. He led the organization during a time when the collision repair industry changed in so many ways, and we took on a lot of challenges during that period. But David’s positive approach and years of experience helped us navigate through all of it, and now we’re a strong organization as a result.”

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ASA Northwest ATE Sells Out for 5th Year by Chasidy Rae Sisk

ASA Northwest produced its 2018 Automotive Training Expo (ATE) March 16–18 at the Doubletree Hilton Seattle Airport. The event sold out for the fifth year in a row. According to Jeff Lovell, President and Executive Director of ASA Northwest, “We had over 900 industry professionals at ATE 2018 and a record number of shop owners, managers, service advisors, technicians and 62 auto instructors from high schools and colleges attended three days of management and technical training.” Touted as the largest automotive training event on the West Coast, ATE 2018 offered 60 educational sessions for collision, mechanical and service facilities presented by the nation’s best trainers in the industry. “I-CAR again partnered with ATE, offering nine collision classes during this event. We had great attendance for these classes, and after the classes, the students enjoyed the trade expo,” stated Rod Hall, ICAR instructor.

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autobodynews.com / MAY 2018 AUTOBODY NEWS

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NV Body Shop Donates Handicap-Adaptive Vehicle to Teen After Accident “Fighters like you make us realize it’s worth doing what we do.” Stefanie was one of seven students involved in a rollover accident

by Teri Vance, Nevada Appeal

After four months of intensive-care treatment and rehabilitation following a rollover accident in Kings Canyon that left her paralyzed, Stefanie Schmidt is now home in Carson City, NV, adjusting to her new life. “This may not have been the path we chose, but this is the path we’re on now,” said her father, Mike Schmidt. “Out mantra is, ‘Always forward.’” Moving forward got a little easier for Stefanie on March 23 when Rupert’s Auto Body donated a handicap-adaptive 2000 Lexus to the 15year-old girl, who had just received her learner’s permit before the accident. “Driving has always been a goal of mine,” she said. “I’m excited to be able to do that.” In a ceremony in front of the auto body shop on March 23, city officials and first responders gathered to see Stefanie receive her new car and wish her well. “You are the reason why we are here and why we serve,” said Carson City Fire Chief Sean Slamon.

Stefanie Schmidt, 15, who was one of seven teens involved in a rollover accident in Kings Canyon in November, received a car from Rupert’s Auto Body on March 23. She was accompanied by her brother, Zach, 18; father, Mike; and sister, Arianna, 19. Courtesy photo

in Kings Canyon in November. Four of the teens were critically injured. Timothy Jones, of Dayton, later died of his injuries. “Tragedy struck in Carson City when seven of our finest were hurt,” said Mayor Bob Crowell. “When someone is hurt, this community stands together to help them heal.

“I want to say a special thank you to Rupert’s for extending the hand of friendship to Stefanie.” Rupert said the idea came together when a customer donated his wife’s handicap-accessible car. Employees fixed it up and offered it to the teen. “We found out Stefanie had a need and we could fill the need,” he said. “So we made it happen. We wanted to bring the community together to let her know she’s not alone.” Mike Schmidt said the car came at the right moment. “The rehab hospital said that this is perfect for her because she’s never driven before, so she doesn’t have muscle memory,” he said. “She’ll be set up for learning adaptive driving.” Before the ceremony, Carson City Sheriff’s Sgt. Bill Richards, who helped extricate Stefanie from the wreckage, approached her. “I’m glad to see you here,” he said, before giving her his card and instructing her to call if she ever needed anything. After seeing her that night, going in and out of consciousness, he said he was happy to see how well she was doing.

“I’m amazed,” he said. “She seems to have a great spirit.” Mike Schmidt said he and his family have been overwhelmed by all of the support from the community since the accident. “The outreach has been unbelievable,” he said. “My heart has grown four times from it. Carson City is probably the best place to live in America. And now to get this car— this is what stories are written about. We’re living in a fairytale.” School board trustee Ron Swirczek said Stefanie has given as much as she has received. “You are an inspiration to us all,” Swirczek told her. “You brought out the best in this community. We wish you the best going forward, and we’re going to be supporting you all the way.” We thank Nevada Appeal for reprint permission.

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Car Fire Burns Auto Body Shop Owner in Yakima, WA

sponding fire crew of the person inside and the crew was able to A man has been burned after a car find him and get him out of the inside his auto body shop caught auto body repair shop. fire in Yakima, WA. Reports said the owner had inhaled smoke and had minor burns. He was taken to a nearby hospital to be evaluated by medics. Firefighters also located a dog alive in the building and were able to get her outside and watch her until family could get her. Firefighters put out the blaze in less than 15 Car fire burns auto body repair shop owner in Yakima, WA minutes, according to a A crew with the Yakima Fire YFD news release. Department (YFD) went to Central This fire likely started acciAuto Body & Painting, located at dentally from sparks while the vehicle was being welded, firefighters 2302 S. 1st St. The fire prevention officer was said. the first to arrive and reported seeFire investigators said flames ing black smoke coming from the were contained to the car, but the front shop door. business and other vehicles were Witnesses informed firefight- damaged by smoke and heat. ers that the business owner went Officials said the car is a total back inside the building and did loss. not see him come back out. We thank KIMAtv.com for The officer informed a re- reprint permission. by Marie Schurk, KIMAtv.com

$2.5 Million Blaze Destroys Auto Shop at Mt. Whitney High School in CA by Ashleigh Panoo and Lewis Griswold, The Fresno Bee

A fire that started at Mt. Whitney High School in Visalia, CA, the evening of March 19 destroyed the auto body shop on campus, according to Principal Rick Hamilton.

Visalia fire crews work to contain a fire at Mt. Whitney High School in Visalia, CA Credit: Lew Griswold

The fire began in the auto shop portion of the building just before 7 p.m. Fire crews managed to contain it to the auto and welding shops on campus, Hamilton said, but the auto shop will not be salvageable. “It’s a complete loss—structure and contents,” he said. Visalia Fire Battalion Chief Brian Adney said school officials estimated the loss at $2.5 million to the building and its contents. The cause is under investigation.

Mt. Whitney was open for classes on March 20, Hamilton said. He received a call from a former teacher who was at a swimming pool nearby, saying she heard a fire alarm at the school. He got another call moments later from her saying she saw flames. When Hamilton arrived, he saw flames 30 to 40 feet in the air. Adney said firefighters were hampered from going into the building due to hazards and potential roof collapse. The fire was brought under control in about 40 minutes and kept from spreading to adjacent buildings. Adney said fire crews remained on scene throughout the night, extinguishing hot spots. In addition to Visalia Fire Department units, resources from Tulare County Fire Department, Farmersville Fire Department and Tulare City Fire Department responded, totaling eight fire engines, two ladder trucks and 40 personnel. No injuries were reported in the blaze. We thank The Fresno Bee for reprint permission.

autobodynews.com / MAY 2018 AUTOBODY NEWS

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Walla Walla, WA, Community College's Try-A-Trade Draws Crowd

perience hands-on activities with WWCC instructors and current stuMore than 60 individuals from the dents, Crawford said. community visited Garrison Middle “Attendees had the opportunity School on a recent Friday evening to to try a new trade that they may have learn about trade careers, said Walla never considered as a career option,” Crawford said. Numerous college and community resources were also present to provide information: business administration, collision repair technology, cosmetology/ barbering, engineering technology, energy systems technology, health sciences and watershed management WWCC plant operations graduates Siro Diaz, left, and /water resources manageLaurencio Cota flank EST instructor Jason Selwtiz at ment. Try-A-Trade. The pair, who earned associate of applied Current students and rearts & sciences degrees, volunteered their time at the cent graduates shared stotrade career event. Courtesy photo ries about their personal Walla Community College Educa- journeys to achieve higher educational and Career Navigator Cristie tion. Crawford in a release. Energy systems technology inWWCC Transitional Studies structor Jason Selwtiz and recent hosted its fourth “Try-A-Trade” event graduates Siro Diaz and Laurencio in cooperation with Workforce Edu- Cota volunteered to participate in cation Services to increase awareness Try-A-Trade because they are comof professional/technical programs mitted to helping future students available at the college. achieve their goals. They graduated Prospective students could ex- from WWCC with associate of apby Annie Charnley Eveland, Walla Walla Union-Bulletin

OR Auto Body Repair Program Receives $250,000 Donation by Simon Gutierrez, Fox 12 Oregon

Several Salem, OR-area businesses are making a hefty investment in a different side of public education.

Recently, six car dealerships donated $250,000 to the SalemKeizer School District’s Career and Technical Education Center, which teaches students specific skills they need to work in auto body repair. “When you come here, to this place, it’s like you’re going to a job. And you’re treated like an individual, a professional and an adult,” said Noah Jones, a junior. The center, which opened in the fall of 2015, already has a track record of success. According to the district, students who complete just one class at CTEC have a graduation rate of 87 percent. Graduation Credit: KPTV

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rates for those who complete the entire program are in the high 90 percent range, compared to a district-wide average of just over 73 percent. “A lot of times, they go to high school, [and] they don’t really think they belong there,” said T.J. Wilson, an instructor at CTEC. “So they come to a place like this and they find their reason for coming to school every day.” The significant investment by the local car dealerships is an investment in what the companies see as potential future employees working in their shops. “When they come out and have some basic knowledge, then it’s that much faster that they can be productive for us. So it’s really a win-win,” said Dick Withnell, President of Withnell Motor Company. Students who graduate and go on to work in auto body shops can earn close to $50,000 per year, and those with painting experience can earn up to $80,000. We thank Fox 12 Oregon for reprint permission.

MAY 2018 AUTOBODY NEWS / autobodynews.com

plied arts and sciences degrees in plant operations. Diaz is now a maintenance manager at First Fruits at Broetje Orchards and Cota is an operator I at the Walla Walla Wastewater Treatment Plant. WWCC’s first three Try-A-Trade events were on the Walla Walla campus where attendees could tour various shops, labs, classrooms, kitchens and salons. Prospective students may contact the college for more details about the programs at wwcc.edu/ admissions/visit-us/ or Crawford at cristie.crawford@wwcc.edu. The grant-funded Try-A-Trade program strives to increase non-dominant genders in the trades. Thirtysecond videos featuring some of the program’s current students are viewable at wwcc.edu/wes. We thank Walla Walla UnionBulletin for reprint permission.

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CARSTAR Espana’s 2nd Location in San Jose, CA

CARSTAR Auto Body Repair Experts announced the opening of CARSTAR Espana’s Milpitas, located at 950 Thompson St., in Milpitas, CA. This is a satellite location for convenient customer dropoff and pick-up, and supports CARSTAR Espana’s Collision Repair full-production facility at 470 E Brokaw Rd. in San Jose. Both locations are owned by Miguel Espana. Espana, whose family has been providing high-quality collision repair to San Jose drivers for more than two decades, joined the CARSTAR family with his first location in 2015. “We are proud to see Miguel Espana grow as part of the CARSTAR family and expand to a new location,” said Michael Macaluso, President, CARSTAR North America. “As this region continues to see a population boom, we are ready to serve the San Jose drivers with the highestquality collision repairs and excellent customer service.”


autobodynews.com / MAY 2018 AUTOBODY NEWS

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Former Auto Body Artist Explores Mediterranean Cuisine in WA uous. Managing the investment real estate he owns in downtown KenThe newest European restaurant in the newick was too passive. The idea of Tri-Cities combines the arts of auto a restaurant began to form. He initially wanted to purchase body repair and cooking MediterCarmine’s when the founders retired. ranean dishes. When they turned it over to their son instead, Olivas shifted gears and imagined creating his own establishment. He knew he wanted to capitalize on the dishes of home—pasta from Italy and paella from Spain. He imagined setting up in one of his downtown buildings. “I have to put my dream Restaurant owner Gus Olivas stands inside Europa in into effect (while) awake,” Kennewick, WA. Europa will serve authentic Italian and he said. Spanish cuisine. Credit: Noelle Haro-Gomez Tri-City Herald Olivas took stock and conThe food-auto body connection is cluded he didn’t have enough money not as far-fetched as it sounds, said to capitalize a start-up. He began savGus Olivas, who opened Europa Ital- ing, eventually building a nest egg to ian & Spanish Cuisine on April 4 at carry him through the construction 2459 S. Union Place in Kennewick, and early operational stages of his WA’s Southridge area, following a soft restaurant, when expenses can run higher than revenue. opening that began the week prior. He began buying, and selling, Repairing and rebuilding cars is kitchen equipment. an art form. Two years ago, a friend flagged So too is cooking, an epiphany that came to him years ago as he a new retail center planned in rolled meatballs at Carmine’s Italian Southridge and urged him to squeeze Restaurant, a Kennewick restaurant the trigger. “You’ve been talking about this owned by relatives. “This is an art. If I stop doing for years,” Olivas said his friend told auto body repair, I want to cook,” he him. The friend turned him on to the thought. Europa, which specializes in the builder, who turned out to be a neighpasta and paella dishes of Olivas’ na- bor, Don Pratt, a well-known Tritive countries, is the fruition of a City developer. “Don asked lots of questions dream—and plenty of planning and about the concept,” Olivas said. saving to make it come true. Pratt agreed to lease Olivas about As he contemplated retirement, the 63-year-old Olivas knew he 1,700 square feet in a corner spot. He installed high ceilings, ample winwanted to keep working. Auto body work was too stren- dows and a spacious patio for welby Wendy Culverwell, Tri-City Herald

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State Farm Responds

Eagle to use deadly, dangerous, unproven, and untested adhesive rather than welds. Defendant also denies that it forced John Eagle to do anything in

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violation of OEM requirements.” State Farm is motioned to have the lawsuits dismissed, claiming the defense of unconstitutionality. A scheduling order for the case has yet to be filed. We thank glassBYTEs.com for reprint permission.

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MAY 2018 AUTOBODY NEWS / autobodynews.com

coming summer evenings. Sharp-eyed visitors will spot the twigs planted by the columns. In time, they will spread across the structure. Naming the restaurant proved to be one of his bigger pre-opening challenges. Olivas considered variations of his father’s name, but decided it was “too Italian.”

Europa, an Italian and Spanish cuisine restaurant, is located at 2459 S. Union Place, Ste. 110, Kennewick, WA. Its grand opening was April 4. Credit: Noelle Haro-Gomez, Tri-City Herald

He rejected location-based names such as “Tuscany” and “Madrid” for similar reasons. “Europa” came to him and better reflected his mixed cuisine.

Europa’s menu is based on family recipes with an emphasis on authenticity. His fettuccine Alfredo, for example, is served with Italian chicken sausage, not the American-style breast of chicken. To familiarize guests with the real deal, he plans to offer samples of the unfamiliar, such as picadillo, a sweet-spicy Spanish stew of ground beef, potatoes, tomatoes, raisins and cinnamon. Olivas wants to spend his time interacting in the dining room, so he’s trained his kitchen staff to do the cooking. He is reserving one kitchen job for himself though—handrolling the meatballs. Europa’s hours are 5 to 9 p.m. daily except Sunday for dinner. Lunch hours will be added by summer. Follow Europa on Facebook, @EuropaItalianSpanish. We thank Tri-City Herald for reprint permission.

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Fix Auto USA Launches Specialized Collision Services Center in CA

Fix Auto USA announced the launch of a revolutionary collision repair center designed and constructed to meet changing market conditions. Located in Orange County, California, Fix Auto Anaheim North is owned and operated by industry veteran David Caulfield. The collision repair industry has been rapidly evolving and Fix Auto USA has eagerly embraced every change to maintain its market-leading position. As an industry leader, Caulfield has been at the forefront of this evolution once again, evidenced by his launching of Fix Auto Anaheim North, a specialized collision service operation with strategic innovations changing the way customers are served and repairs are processed. Fix Auto Anaheim North’s principal objective is to repair that segment of damaged vehicles that are otherwise burdensome to a traditional full-service body shop—heavy hits, or those requiring structural and/or welded panel replacements. Benefiting from specific systems and processes, as well as workflow management, proper tooling and a highly skilled team, these higher-im-

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pacted collisions are reduced to 3 to 5-day cycle times while realizing significant overall severity reductions compared to a traditional body shop. Unique to this innovative shop is the division of the technical skill sets amongst experts dedicated to disassembly, structural repair, cut-

ting-fitting-welding, metalsmithing, reassembly and more, putting an end to traditional technician “key to key” ownership of the repair process. Fix Auto Anaheim North designed its workplace and its workforce to eliminate quality liability risks, reduce cycle times, cut claim cost severity, optimize OEM parts utilization to drive repair quality and efficiency, and is poised to deliver world-class results in a repair segment that has traditionally been plagued with problems, given its in-

MAY 2018 AUTOBODY NEWS / autobodynews.com

tense and specific focus. This will all be done in 16,000 square feet of production and 4,000 square feet of customer care. “This shop is forging a path unique unto itself and solves many of the challenges our industry faces today,” Caulfield stated. “Opening this location on Fix Auto USA’s platform gave me great comfort that it would be well received on a national scale and would be given the network support it needs to thrive.” “As the market continues to rapidly evolve, Fix Auto USA is excited to continue adapting and offering unique capabilities to our insurance customers and vehicle owners alike,” said Fix Auto USA President and CEO Paul Gange. “Fix Auto USA was founded on a set of core values that demand embracing change and driving continuous improvement through our enterprise. Franchise partners, like David, who share the same innovation, entrepreneurial spirit and passion for excellence, are truly the key ingredient to ensuring we stay ahead of the curve and continue to deliver market-leading results.”

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‘Select Service’

said. “But this saves us a lot of time. I’m not a PartsTrader fan myself. They say there’s some of those out there—PartsTrader fans—but I don’t know any.” Caliber locations in at least three other states also confirmed they are no longer using PartsTrader for State Farm claims, yet remain on the Select Service program. A State Farm spokeswoman said the company considers its agreements with repair facilities to be “confidential and therefore we will not be providing any comment.”

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


AAPEX 2018 Opens Attendee Registration

Online attendee registration is now open for AAPEX 2018, the threeday event representing the $740 billion global automotive aftermarket industry. AAPEX 2018 will be held Tuesday, Oct. 30 through Thursday, Nov. 1 at the Sands Expo in Las Vegas. It will feature more than 2,500 ex-

AAPEX 2018 will welcome more than 2,500 exhibiting companies and 47,000 targeted buyers to the Sands Expo in Las Vegas

hibiting companies displaying the latest products, services and technologies to diagnose, service and maintain the approximately 1.2 billion vehicles on the road today. Attendee registration is only $40 (U.S.) through Friday, Oct. 12 and can be completed online at: www.aapexshow.com/attendee.

Registration includes the trade show, 50-plus AAPEXedu sessions, New Product and New Packaging Showcases, Mobility Garage, Technology Intersection, Let’s Tech presentations and the Service Professionals Program. In addition, AAPEX 2018 attendees will have the opportunity to network with 47,000 targeted buyers from around the world, including automotive service and repair professionals, auto parts retailers, auto parts warehouse distributors (WDs), engine builders and fleet buyers. The fee for registering via fax or mail, instead of online, is $65 (U.S.) through Oct. 12. Beginning Saturday, Oct. 13, online and onsite registration will be $90 (U.S.) and $115 (U.S.) for fax or mail registrations. Registration for approved and credentialed media also is now open and can be completed at: www .aapexshow.com/media. AAPEX is a trade-only event and not open to the general public. Approximately 162,000 automotive aftermarket professionals from more than 135 countries are projected to be in Las Vegas during AAPEX 2018.

CARSTAR Auto World Collision Opens as 1st CARSTAR Location in San Francisco

CARSTAR Auto Body Repair Experts recently announced the opening of CARSTAR Auto World Collision, located at 1100 San Mateo Ave., South San Francisco, CA, 94080. It is owned by Jason Wong.

CARSTAR Auto World Collision has served the South San Francisco and Bay Area communities as Auto World Collision with high-quality collision repairs for the past 20 years. It offers free collision repair estimates, state-ofthe-art laser-precision unibody and frame repair equipment, bumper repair, expert color matching, towing assistance, vehicle pick-up and delivery, a nationwide warranty for most repairs and rental cars through Enterprise. The certified technicians at CARSTAR Auto World Collision are trained to work on all makes and models and participate in on-

going education programs on the latest vehicle technologies and materials. They also specialize in Subaru, Volkswagen and Audi vehicles. Business hours are 8 a.m. to 5 p.m. Monday through Friday. By joining the CARSTAR network, CARSTAR Auto World Collision can access the North American collision repair leader’s advanced tools, technology and training, along with a well-known brand, purchasing efficiencies, national insurance relationships and more. “We continue to expand our presence in Northern California and are proud to welcome CARSTAR Auto World Collision and owner Jason Wong to our CARSTAR family,” said Michael Macaluso, President, CARSTAR North America. “We’re honored to have Jason bring his years of experience and community service to our network. Our first location in San Francisco will provide the highest-quality collision repairs and excellent customer service for drivers in the region.”

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Chair of CAWA Board of Directors Appoints 2 Industry Veterans to Association’s Manufacturers’ Advisory Council

CAWA Chair of the Board Jack Southern California as a Territory Specialist for Eaton’s Weatherhead Gosnell of Next Level Parts has ap- Sales Manager. In this position, he Division. His job provides a liaison pointed Ken Dowler of Idemitsu Lu- successfully introduced various with the six Western NAPA distribubricants America and Terry Satchell branded lubricants for different man- tion centers. This will be Satchell’s of Eaton Weatherhead Division to ufacturer types in domessecond opportunity to be the Association’s Manufacturers’ Ad- tic, Asian and European associated with CAWA visory Council (MAC). imports. Dowler joined leadership, having served When Chair Gosnell announced Idemitsu Lubricants Amerpreviously on the Associathe appointments, he commented, ica three years ago as a tion’s MAC. He looks for“These new MAC members have a Senior Account Manager ward to participating in significant amount of auto care indus- in its aftermarket division. CAWA’s leadership as well try experience and will be contribu- His focus has been on key as helping shape the future Terry Satchell tors to CAWA’s leadership national and reof the association and the team. The association is gional distributor partners industry it represents. pleased that these representhroughout North America. CAWA is an automotive aftertatives will be participating He is also a participating market trade association, which repat the leadership level and member of YANG (Young resents auto parts jobbers, retailers, we anticipate that they will Automotive Networking warehouse distributors, manufacturcontribute to the future sucGroup). ers, manufacturer representatives cesses of CAWA.” Terry Satchell is a vet- and program groups. The association Ken Dowler Ken Dowler gradueran of the automotive af- provides educational, legislative and ated from the University of Califor- termarket industry. He started in high business support to the industry and nia at Santa Barbara and has been in school working for several parts its membership. It is one of the the automotive industry for 11 years, stores and upon graduation from col- largest trade associations of its kind starting with Shell Oil Company lege went to work for the Gates Cor- in the United States and recognized selling branded lubricants such as poration, where his career spanned as a leader in the automotive afterPennzoil, Quaker State and Rotella 38 years. He then went to work for market industry. into the Southern California market. CSF Cooling as the Western ReAfter several years, he joined a gional Sales Manager for two years multi-branded bulk distributor in and is now a Business Development

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ASA-AZ Members Race Go-Karts by Chasidy Rae Sisk

On March 14, members of ASAAZ’s Tucson Chapter gathered for a fun evening of go-karts at their annual Kart Night.

According to ASA-AZ Coordinator Diana DeLeon, “It was another great success. Members bring their employees and families to Kart Night each year, making it a night to look forward to. Shop members

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and associate business members come together for a fun family night of food and go-kart racing. This is the one meeting each year where business is put aside and friendly competitions come out! “Networking is key to our industry. The automotive business is a large business, but a small community in the same. Working together for the community is what makes our members and shop owners the best in the industry. We want to offer more than just sit-down meetings to our members. We want the opportunity to get to know one another, which then turns business contacts into friends. We are always happy to see that Kart Night brings new interest to the association, and new members come from it each year.”

For more information about the association, visit www.asaaz.org.

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MAY 2018 AUTOBODY NEWS / autobodynews.com

ASA Endorsement of OEM Service Procedures

In January 2018, Indiana Sen. Mark Messmer, R-48, introduced Senate Bill (SB) 164 which unanimously passed the Senate Jan. 30 and moved quickly through the House Committee on Insurance. It returned to the Senate with amendments by a vote of 83–13 Feb. 28. The Senate balked and filed a motion to dissent in early March .An amendment, adopted by the House Insurance Committee, would allow a work-around for insurers by recommending adherence to “industry standards” as an alternative to the vehicle manufacturer’s repair procedures. The CDOC of the Automotive Service Association has reaffirmed ASA’s position endorsing the use of required OEM service procedures when such procedures are available. COC members recently discussed several legislative initiatives being monitored. Language in one such initiative in Indiana would have endorsed the use of vaguely defined “industry standards” over the recommended OEM service procedures in the course of collision repair.


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10 Ways to Avoid

available.

4) Up to Date Research Each repair plan should be researched with all available resources in existence, at the time, to achieve the best repair. Because the shop worked on the same or a similar vehicle before doesn’t make the prior repair information necessarily reliable. What was true 6 months ago may be superseded. What works on a 2015 model may not work on the 2016, even if the body style appears identical. 5) Proper Documentation and Record Keeping There is a memorable quote from Alonzo Harris, the detective played by Denzel Washington in the movie Training Day. “It’s not what you know, it’s what you can prove!” It’s crucial to document proper repairs with multiple photos and/or video plus any supporting documentation. If no specific repair information exists, it is prudent to document the at-

tempt. Keep good records! There are no excuses with today’s vast array of digital technology. So, ditch the shoe box of receipts and learn to digitize to back up your hard copies.

can suffer compromised safety and vehicle devaluation. Same goes for accepting imitation parts or skipping proper repair methods.

6) Reporting A key issue, early on in the John Eagle Collision case, was the omission of the repair on a CARFAX report. You may think, “What does it have to do with me” if an unsuspecting consumer buys a vehicle we repaired which was not picked up by CARFAX or other service? Perhaps these words from Eldridge Cleaver will change your mind, “There is no more neutrality in the world. You either have to be part of the solution, or you’re going to be part of the problem.” Ask yourself, would you rather be the problem shop or the solution shop?

8) Never Overpromise What You Can Deliver The repairer should never overpromise with outlandish statements like our repairs make a vehicle “better than new,” “good as new,” or “perfect,” as examples. The following appeared on the John Eagle Collision website, “....our goal is to achieve ‘better than new.’” Those words came back to bite them. When you overpromise, even a tiny speck of dirt in the paint can be a lawsuit in the making.

7) Never Put Profits Over Safety Besides the obvious ethical reasons, cutting corners to increase profits is not a sound long-term business strategy. The shop should not agree to repair a part based solely upon the insurer’s repair versus replace cost analysis. As a result, the customer

West-MEC Collision Repair Students at AZ SkillsUSA

casing the state’s trade, technology and service high school and college students. David Melian, automotive collision instructor at West-MEC Northeast Campus in Phoenix, AZ, entered some of his students in both the Refinish and Body Repair competitions. “I am proud to say I had my first female student, Nathalie Marin, take first in Refinish and bring home the gold,” Melian stated. “We also had Bryson Rush take third in Refinish and Anthony Reyes finished third in Body Repair. They worked very hard to prepare for state.” According to Melian, Marin will go on to represent Arizona in the Refinish competition at (Top-left) Alexis Rafael and Nathalie Marin compete at Nationals in Louisville, the SkillsUSA competition.(Top right) Students paint in the KY, in June. booth. (Lower left) Alexis Rafael sprays Clear Coat. (Lower For more information right) Doug Turan of Sherwin-Williams Automotive judges on West-MEC, visit http: the competition //west-mec.org/. The SkillsUSA Arizona State ChamFor more information on Skills pionships took place April 3–4, show- USA, visit https://www.skillsusa.org/. 18

MAY 2018 AUTOBODY NEWS / autobodynews.com

9) Never Allow the Insurance Company to Dictate the Repair “The Devil made me do it” is an excuse as old as time. It didn’t work for Eve in the Garden of Eden, it didn’t work for John Eagle Collision and it won’t work for you. We all know the misguided influence exerted on repairers by Insurance Company Bullies. However, you are ultimately enticed

by your own desires. Make it your desire to service the “true” customer (#3 above) and you can’t go wrong. 10) Be a HERO and Stand Up to the Insurance Companies Inform the insurance company and the customer in writing that the insurer’s approved repairs violate OEM repair specifications and can cause serious injury or death should the vehicle have another accident. Tell them you will not repair the vehicle in that manner knowing you are placing someone’s life at risk. If the insurance company still refuses to make equitable allowances to repair the vehicle to OEM specifications, tell them that YOU WILL perform the work required by the OEM, take what the insurance company pays and then SUE THE INSURANCE COMPANY FOR THE DIFFERENCE! This list is available in PDF file format at: www.oemprocedures.com.

Courtesy of: www.vehiclesafetyfirm .com ©2018 Todd Tracy and Gene Bilobram - all rights reserved.


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19


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21


Todd Tracy Delivers Updated Presentation at NORTHEAST 2018 by Chasidy Rae Sisk

For several months, Dallas attorney Todd Tracy has been touring the country to present “Anatomy of a Lawsuit,” a discussion on the $42 million John Eagle lawsuit he won in 2017. During NORTHEAST 2018, he delivered an updated version: “Anatomy of a Crisis: Getting Vehicle Safety Professionals Re-Focused on Fighting the Insurance Industry.” He identified his goals as teaching attendees to think like safety professionals, keeping sharks out of their shops and providing details on his recent crash testing and the pushback received. “It’s time to get the insurance companies out of your vehicle repair labs because they’re jeopardizing customers’ safety,” Tracy said. “To make the industry great again will require change and courage. In the spirit of change, you aren’t repairmen anymore—you’re vehicle safety professionals on the front line of safety, and you don’t get the luxury

of a bad day at work.” Tracy suggested a unified mission statement for the industry. “As vehicle safety professionals, we have a moral and legal obligation to ensure that our customers

Dallas attorney Todd Tracy discussed the importance of customer safety and proper repairs during NORTHEAST 2018. Vehicle1, 2, 3 – The three Honda Fits that Todd Tracy crashtested in December 2017 were on display on the Pavilion floor during NORTHEAST 2018

make it home safely because our vehicle repairs were performed properly, responsibly and ethically,” he said. Vehicle safety professionals should be willing to embrace a new philosophy focused on educating

them about crash science, engaging the customers to fight with them against the insurance company and letting the insurers know that the collision repair industry is energized, excited and waiting for a fight, according to the presentation. Emphasizing the need for understanding how different parts of a vehicle operate in an accident, Tracy discussed how seat belt buckles are only good for one crash event and said anti-submarining seat features are not as effective after one crash event. Seat cushion airbags are also only good once. All of these items must be evaluated and replaced after an accident. In rear-impact accidents, seats are designed to yield and deflect, so they must be replaced if an occupant over 125 pounds was in the seat. After an accident, head restraint posts and friction locks must also be evaluated to ensure they haven’t been deformed. Tracy observed that GM vehicles have been using thinner head restraint posts that are hollow in the middle, and said he believes that a recall is in order. Turning to

objects in the trunk, he pointed out that an object can slam into the rear seat and bend the retention brackets. Tracy told attendees that vehicle safety professionals must always think outside the box and check for damage in areas that may not be so obvious when preparing repair estimates. He also said that when restoring vehicles back to a crashworthy condition, they should always preand post-scan vehicles for DTC codes and keep the printouts. “When aftermarket suppliers claim their product is just as safe as OEM parts, never trust them,” he said. “Demand that they verify their claims with actual crash testing. “Insurance companies that bully vehicle repair labs into improper repairs cause you to violate your industry and individual company’s mission statement. When vehicle safety professionals do their jobs right, small cars are just as safe as big vehicles. Do your job right, and families make it home safely, but there are insurance companies who refuse to let you do your job correctly because they hold

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the money and the power, so they make you choose between who survives—your company or your customer. This should enrage your industry, your company and you as a vehicle safety professional because there’s a legal and moral responsibility to protect your customer’s safety. “Are you going to sit there and take it or, if not, what are you going to do about it? We’re going to pick a fight because we have to get them out of your labs! Teddy Roosevelt once said, ‘There is no effort without error and shortcoming.’ What that means is get off the sidelines and get in the game. The time is right for an industry revolution following the $42 million John Eagle verdict, and you should be very afraid. The OEMs are getting in the fight too. We finally have the momentum here.” Tracy then moved on to how he won the John Eagle lawsuit. When he began to investigate the Seebachans’ Honda Fit, the vehicle in the lawsuit, he found that something didn’t add up. Ruling out a manufacturer defect, he found that the roof panels were missing 108 welds and found no evidence of a prior acci-

dent. When he spoke to the previous owner, he learned that the roof had been replaced due to hail damage and was able to ascertain that John Eagle Collision Center had glued the new roof on instead of welding it, as required by OEM procedures. Tracy shared details about how he won the case by exposing John Eagle’s website claims as false, proving that the 3M glue SOP instructed users to follow OEM welds, and using science and expert witnesses to prove that John Eagle’s attorney was being dishonest and manipulating data. Tracy then listed 10 ways for shops to avoid a $42 million verdict: 1.

2.

Always follow OEM repair specifications. Always follow I-CAR.

3.

Know your customer.

5.

Never overpromise.

4.

6.

Use the best resources available and keep documentation. If you make repairs, report the

7. 8. 9.

repairs so future owners know the whole truth.

Never put profits over customers’ safety.

Never admit you’re letting insurance companies dictate how you do repairs.

It’s not always about money. Be willing to walk away from repairs.

10. Stand up to the insurance com panies, and tell them and your customer in writing that the in surer’s approved repairs violate OEM repair specifications and will cause serious injury or death to your customer or any future owner of the vehicle if an accident occurs in the future.

“I have high hopes for each of you because you’re here, because you care, because you want to do something,” Tracy said. “How can you sleep at night knowing you didn’t do it right? Insurance companies have been saying their way is safe for decades, but

now we have them in a trap. Science, engineering and physics have now emboldened your vehicle repair labs to stand up to these insurance bullies because you have a new friend: crash data proof.” Turning to the three Honda Fits that he crash-tested in December, Tracy noted, “I ran those crash tests because your industry needed answers. The aftermarket car experienced structural failures that the other two vehicles did not. OEMs know that aftermarket parts are unsafe.” Tracy then revealed that Ford commissioned an independent test of two frequently replaced F-150 aftermarket crash parts to determine if they would meet the automaker’s dimensional design specifications. Graphics revealed that the aftermarket parts showed a degree of deviation several millimeters outside the Ford specification. Front bumper brackets show significant deviations from Ford specifications. Ford commented, “The results serve to reinforce the importance of repairers researching and using See Todd Tracy, Page 35

autobodynews.com / MAY 2018 AUTOBODY NEWS

23


NORTHEAST Sessions Focus on OEM Shop Certifications, Estimating by John Yoswick

As an increasing number of automakers launch or expand collision shop certification programs, will more of them also restrict sale of some structural replacement parts to only certified shops, as some makers of higher-end vehicles have done?

Aaron Clark of Assured Performance said he believes increased technology and complex materials will lead more automakers to restrict access to some structural replacement parts

That was among the topics addressed in a panel discussion related to OEM certification programs at the 2018 NORTHEAST trade show in New Jersey in mid-March. Aaron Clark of Assured Performance, which administers a number of OEM shop certification programs, said it’s the automakers themselves that make those decisions, noting that there can be significant legal concerns. “Especially if a large manufacturer has been making parts available for decades that could potentially have needed restrictions all that time,”

Danny Gredinberg of the DEG said the website offers a number of free tools that shops can use to improve estimating

he said. “If you’re making millions and millions of vehicles, there’s a potentially large legal battle because you’re going to have a target on your back.” That said, he believes that as 24

more complex materials and technology migrate from high-end vehicles into more mainstream makes and models, there likely will be more parts restrictions. In his view, even some “mild steel and high-strength steel parts should have been restricted from some shops a long time ago because they still repair vehicles incorrectly.” Clark, who sold his multi-shop business back in 2015, added, “We still have work to do at the average shop level with high-strength steel because [those shops] aren’t doing it correctly with high-strength steel, let alone some of these newer advanced materials.” In a wide-ranging discussion during the two-hour session, several panelists said an important consideration for all shops—but especially those seeking automaker certifications—is whether their facility has the electrical capacity to adequately power the needed equipment. “Most body shops have maxed out their electric panel simply by putting in a spray booth or a second spray booth,” said panelist Dave Gruskos of Reliable Automotive Equipment. “The welders are all going to be three-phase. That means you’re going to need wire of a size large enough to carry the amperage. Typically it’s going to be No. 4 wire. The long run from the panel is going to be No. 2 cable going to No. 4 wire to your outlet. You’ll need dedicated outlets for your three-phase welders, with grounds put in to earth. They’re not going to ground to the conduit. They’ll be grounded directly back to the panel to an earth spike. You probably currently have ground wires going to water pipes, but those often have plastic meters on the street so they’ve lost their grounding.” Gruskos said shops may need to spend as much as $50,000 just for electrical upgrades. “But you have no choice,” he said. “If you buy a $25,000 welder from me, and your electrical system is bad, you’ll be calling me 10 months later for an $8,000 repair. You have to have the proper electrical power before you do anything.” Virginia shop owner Barry Dorn agreed, saying his company originally planned to build a new building for

MAY 2018 AUTOBODY NEWS / autobodynews.com

aluminum repair; but once he researched the costs of getting the necessary electrical service to that new building, he chose instead to convert

Virginia shop owner Barry Dorn said expenses related to electrical upgrades influenced where his shop placed its aluminum repair area

an existing building used by his company’s mechanical service department, moving that department to the new building. Gruskos said another power-related concern he has are the types and conditions of the extension cords he sees in use at shops. “The cord should never be smaller. It should always be larger. So whatever wire is coming off your welder, it should plug into a bigger cord,” Gruskos said. “You should be

buying the most expensive, best quality, largest plugs you can get. And you should be [regularly] inspecting these cords. It’s very common that they get beat up, run over. The ground wire may pull out of the extension cord, something you might not even notice.” Improper or poorly maintained extensions cords are another key to avoiding costly needed repairs to welders, he said. “Or worse than all of this, you produce a substandard repair because you didn’t put the proper power to the welder,” he said. In another training session during NORTHEAST, Danny Gredinberg of the Database Enhancement Gateway (DEG) (www.DEGweb.org) offered another example of the value to shops of regularly checking OEM repair procedures. “How many of you pull procedures for interior trim panels?” Gredinberg asked attendees at his “Estimate Toolbox” seminar. “It’s pretty rare. But pulling procedures for See OEM Certifications, Page 35


autobodynews.com / MAY 2018 AUTOBODY NEWS

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Industry Experts Address ‘Shop Liability in New Era’ at NORTHEAST 2018 by Chasidy Rae Sisk

During NORTHEAST 2018, a panel of industry experts held a discussion on “Diagnostics, Calibration and Programming: Understanding Shop Liability in this New Era and How to CYA.”

AirPro Diagnostics’ Michael Quinn moderated the panel discussion on shop liability related to diagnostics, calibration and programming

Moderated by AirPro Diagnostics’ Michael Quinn, the panel consisted of Larry Montanez of P & L Consultants, Greg Potter from Equipment and Tool Institute (ETI), Bob Gruszczynski from VW/Audi America, Aaron Clark from Assured Performance Network, Paul Sgro from Lee’s Garage and Chuck Olsen from AirPro Diagnostics. Olsen began the conversation by giving background information on the history of electronic diagnostics. In the mid-1980s, each vehicle manufacturer created a proprietary and unique set of tools to diagnose and repair their electronically controlled systems. These tools were expensive and rarely available to the public, including repair facilities. In the early 1990s, California introduced mandates that forced the OEMs to have some sort of basic onboard diagnostic tool capability to check emission law compliancy, but because the mandates were not specific, the OEMs went in different directions. Soon, control systems expanded beyond engine and transmission controls to include safety systems, such as air bags, ABS, stability controls and customer convenience features. The OEMs developed software to utilize protocol for aftermarket repair facilities due to the creation of SAE J2534-1 and J2534-2. This is the standard all manufacturers use for programming in their own scan tools. 26

Aftermarket scan tools have added scan and control functionality to address emerging technologies over the years. Asking how the industry got here, Olsen noted, “It’s important for scan tools to scan all systems.” Olsen identified the 1950s through 2000 as the era of safety and convenience, which moved into the ADAS era and has continued into the present. The era of partially autonomous vehicles started in 2016 and is predicted to continue until 2025, to be followed by the era of fully autonomous vehicles. With the constant changes in modern technology, Olsen stressed the importance of checking OEM position papers and service information requirements, and provided a list of resources. Turning to pre-repair electronic diagnostics, he listed the following steps: inspect and document visual electronic issues, scan and document all systems, identify trouble areas, identify optional electronic equipment, identify possible pre-existing conditions, review service information, estimate for diagnostics and calibrations, perform systemspecific diagnostic tests and inspections, avoid unnecessary repairs and advise on repairs not associated with a loss.

Chuck Olsen discussed the history of electronic diagnostics, the eras of safety technology, pre-repair electronic diagnostics and post-repair electronic procedures

During the post-repair electronic procedures, industry professionals should scan and document and then clear, re-read, document and perform additional diagnostics if the codes return. They should then turn to module programming and required calibration, clear the codes, perform preliminary function checks, complete a QC road test and perform a post-road test QC check. According to Olsen, “It’s more than reading and clearing codes,

MAY 2018 AUTOBODY NEWS / autobodynews.com

though. The person reading the diagnostic information must be able to interpret its meaning and apply that to the repair. They need to research the

is a nonprofit association that was founded in 1947 with the mission to “advance the vehicle service industry by providing technical data and open

A group of industry professionals held a discussion on “Diagnostics, Calibration and Programming: Understanding Shop Liability in this New Era and How to CYA” during NORTHEAST 2018. (Pictured left to right: Larry Montanez of P & L Consultants, Greg Potter from Equipment and Tool Institute (ETI), Bob Gruszczynski from VW/Audi America, Aaron Clark from Assured Performance Network, Paul Sgro from Lee’s Garage and Chuck Olsen from AirPro Diagnostics)

service information to determine what the codes indicate, and they need to perform additional checks to verify the condition of the electronic system. They must reference OEM service information in conjunction with the scan tool in order to evaluate the electronic system for conditions that don’t set trouble codes, and remember: The codes may need to be cleared and rechecked when evaluating a system.” Next, Potter explained that ETI

dialogue between the manufacturers of transportation products, government regulators and providers of tools, equipment and service information.” ETI has four main vertical groups: scan tool, mechanical systems, collision repair and shop management and information software. “Essentially, we broker the information between aftermarket scan tool manufacturers and OEMs,” PotSee Shop Liability, Page 34


autobodynews.com / MAY 2018 AUTOBODY NEWS

27


In Reverse 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

Duke, Dunk and DuPont—Tales from the 1930s Duke Norman Unless you happen to be a student of the collision repair industry, you’ve probably never heard of Duke Norman. But if you are a shop owner, estimator or adjuster, you likely use or benefit every day from the product he helped create. In 1938, Norman began his career in the body shop at Robertson Buick in Chicago. He knew little about the business at the time, but became a fast study. At that time, the only reference for collision repair times were factory bulletins—times based on removing and replacing undamaged parts on undamaged cars—an operation performed with considerably more effort when the car was damaged. Shop managers were making estimates based on common sense and their own experience. When the insurance adjuster came in to review the car, the shop manager and esti-

mator would both sit down and negotiate, in good faith, what was required to properly repair the car. Norman quickly saw that there was a need for some standardized times. Others in the industry had the same idea—but Norman did something about it. He began keeping track of the time it took to do a particular operation. He also noted that some technicians took longer or shorter times to do the same operation. After documenting the same operation 10 times, he calculated what the average time was to do that particular operation. At that time there were “a few” companies who began publishing repair data. National was one such company. Periodically, someone from National would stop by the shop, take Norman to lunch and pick his brain about what he was doing … and how he was doing it. Eventually,

in 1950, National offered him a job and thus, Duke Norman, Body Man became Duke Norman, Editor. But coming up with proper times was not enough. Norman had an idea that the books he produced needed exploding drawings. National didn’t want to change—and Norman felt frustrated. Then he met Glen Mitchell. Mitchell had a competing product to Norman’s—and hired him. In January 1958, Norman went to work for what would become Mitchell International. The Mitchell estimating books at that time were sold regionally, and Mitchell wanted to go national. Norman’s job was to build a sales force and figure out how to put illustrations in the manuals. With the proliferation of cars’ models in the late ‘50s and the need for more and better data, Norman’s

former employer could not keep up and was ready to fold. Mitchell stepped in, picking up the National subscribers—and Mitchell was off and running as a nationwide collision industry provider of repair information. To ensure the times Mitchell was using were fair and equitable for all parties, Norman organized meetings all over the country for shop owners, technicians, dealer associations and insurance companies to review repair times and operations. These meetings continued from 1963 to 1968. By the mid-1960s, the team of Duke Norman and Glen Mitchell had grown to 130 people. In 1972, the company was sold to Cordura, a technology-based company, with the intention of bringing Mitchell into the 20th century with new technology.

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In 1973, Norman suffered a stroke. The travel and long hours had caught up to him. He returned to work later that year and retired in 1976. Alfred Dunk Alfred Dunk died of pneumonia in California on March 6, 1936. He was only 61 years old. Few, if anyone, remember Dunk today, but if it had not been for him providing replacement parts to mechanical and body shops for early model vehicles, more cars would have hit the scrap heap at a much earlier age. Dunk was a pioneer in the replacement auto parts field and single-handedly responsible for helping keep probably tens of thousands of cars on the road. No doubt, many mechanics and body men praised him for his simple but visionary idea. During the earliest years of the automotive industry, scores of car companies were founded, lasted a few years, sold a few cars, then went bankrupt or otherwise disappeared. This left thousands of “orphaned” vehicle owners and repair shops with no way to get parts for repair and maintenance. Enter Alfred Dunk.

In 1908, two car manufacturers approached Dunk to set up a parts distribution system for them. The two companies would merge into a company called E-M-F and Dunk would handle parts distribution. Dunk then founded a company called Auto Parts Company and made himself president. By 1910, Dunk was doing such a good job, another car maker, Blomstrom, asked Dunk to distribute parts for them, which he did. Over time, and as more and more car manufacturers went out of business, Dunk found it advantageous to not only buy the manufacturer’s parts inventory, but also the blueprints and drawings so additional parts could be made. Dunk then formed another company called The Puritan Machine Company and began to manufacture parts as his inventory exhausted itself. A magazine article of the time touted that Dunk had parts or could make parts for 196 obsolete automobiles. In 1929, Dunk turned over to the National Automobile Chamber of Commerce, records for parts for 756 companies. Many early auto repairers and early body men certainly

knew and depended on his parts companies. Consider also that this pioneer of the auto parts business was born in 1875, the height of the cattle-drive era of the old west. DuPont Before it was known for its automotive refinish materials and a multitude of other diverse products, DuPont’s main product was gunpowder. In April 1801 (yes, that’s 1801, not long after the American Revolutionary War), the DuPont company was born. In the summer of 1803, its gunpowder factories in America were ready. E.I. DuPont himself sent word to President Thomas Jefferson that his company stood ready to provide gunpowder to the U.S. military as needed. The company called its product “Brandywine Powder.” In the ensuing years, DuPont was a major supplier of gunpowder for the U.S. military as well as other purposes. Through the War of 1812, WWI and other skirmishes, DuPont was there to help defend America. But in December 1934, things turned ugly. DuPont was called before the U.S. Senate Munitions In-

vestigating Committee to answer allegations of profiteering during WWI. Senator Gerald Nye, a Republican from North Dakota, chaired the committee. Ironically, between the end of WWI and 1935, DuPont had changed its product mix from 97 percent explosives to 95 percent non-explosives with a growing number of products aimed directly at consumers. DuPont had been, in a word, “burned” during WWI. They ramped up gunpowder production to a phenomenal level, expecting the war to last longer than it did. When it didn’t, DuPont executives decided they had better diversify. But the newspaper headlines didn’t see that part of DuPont’s business, and the company was viewed as a “merchant of death”—a public relations nightmare. Although some members of DuPont’s upper management still did not see the value in a positive corporate image, others did, and it was decided that something had to be done. In 1926, DuPont got into the sprayable lacquer business for auto See Tales from the 30’s, Page 64

autobodynews.com / MAY 2018 AUTOBODY NEWS

29


OE Shop Certification with Gary Ledoux

OE Shop Certification Programs: Toyota For this month’s OE certification profile, we spoke with George R. Irving Jr., National Manager for Wholesale Parts and Certified Collision Centers for Toyota USA.

Does your program have a specific name? When was it started?

swer them?

OE parts sales are a by-product of proper repair and proper customer treatment. But the program

A:

Q:

The official name is Toyota Certified Collision Centers, or TCCC for short. The program was started back in 1997, so it is 21 years old now.

A:

Back in 1997, certified programs were pretty much limited to European high-line or more exotic cars, and not really considered for mass-produced cars like Toyota and Honda. What was the impetus for starting a certified body shop program back then?

Q:

Back in 1992, the “latest thing” with dealerships was “Certified Used Cars.” It started first with Lexus and then migrated to the Toyota side. Dealers liked the concept because they felt it separated them from all other used car places. Dealers felt using the term “certified” gave them more credibility. Dealers eventually felt that if this idea worked well for used cars, it would work well for those dealers with body shops, and the idea became a program.

A:

Q: A:

What is the main purpose of the program?

First and foremost, the program is about having the car fixed safely and properly and the customer having a good experience. We want the Toyota customer to have a good experience when they buy a new or used car, [and] have that car serviced in the dealer’s service shop or body shop. Some in the industry say these programs are all about selling more OE parts. How would you an-

Q:

30

was not founded on, nor does it revolve around, OE parts sales.

What are the program requirements? (Note: Toyota has some of the most comprehensive program requirements of any of the non-luxury brands. Undoubtedly, this is possible because the program includes only Toyota dealer-owned body shops, thus the closer connection.)

Q:

The requirements include the following: Customer Satisfaction: Must have a CSI tracking and monitoring system / Must have defined procedures and processes in place to assure repair quality, customer treatment, and to ensure that the vehicle is ready when promised. CSI standards require both a minimum score achievement and minimum response rate as defined by Toyota. Training: Must maintain an ongoing training regimen for all collision center employees, including shop manager, estimators and repair and refinish technicians as defined by Toyota Tools and Equipment: Must maintain latest tools and equipment as defined by Toyota Facility: Must maintain a facility that is attractive, clean and professional in appearance with adequate space for efficient work flow as de-

A:

MAY 2018 AUTOBODY NEWS / autobodynews.com

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

fined by Toyota. Business Plan: The collision center must develop and implement a business plan targeting, profit, performance, and body shop productivity. Parts Performance: The shop must create a marketing strategy to increase the sale of Toyota Genuine Parts. This includes monitoring the shops’ parts to labor ratio, in addition to the ratio of Toyota Genuine Parts to salvage and aftermarket parts. Management Practices: Institute and maintain management systems that support established business goals. Marketing Practices: Develop an ongoing marketing plan and advertising campaign to promote the benefits of the Toyota Certified Collision Center to the public and to insurance companies. Production Process: Institute

quality control procedures through each step of the repair process. Safety and Environmental: Provide a safe and environmentally responsible workplace for employees and customers.

Q: A:

What are the program benefits?

Program benefits include the following: ► Access to a Key Performance Indicator reporting system

► Licensed use of the TCCC identification logo

► TCCC marketing materials

► Marketing funds

► Onsite consultation on best practices


autobodynews.com / MAY 2018 AUTOBODY NEWS

31


► Customized vendor support coordination

Every shop is inspected annually by Summit Consulting International and by our Collision Consultants.

► TCCC performance group meetings

Q:

► Monthly KPI Financial and metrics reporting

► Training programs are no charge for Certified Shops ► Toyota-dedicated training facilities are used.

Q: A:

What shops are eligible?

Our program is for U.S. dealerowned shops only—no independents.

Q: A:

Are any shops specifically ineligible?

Toyota operations in Hawaii are not controlled by TMNA. Toyota Canada has a separately run program.

Do you have any program partners such as Axalta, VeriFacts, Summit, Assured Performance or other? If so, what role do they play?

Q:

Summit Consulting International handles all audits for us and they assist with the follow-up if a shop has a gap item. In addition, we have eight Toyota employees that are dedicated to this program. That includes myself, our manager and two administrative people at the national office, plus four field people who work with our dealers and District and Regional Managers. Each field person handles three of our regions. Our four consultants assist with the onboarding process for certified shops and support their success implementing the program.

A:

What is the fee for the program? Does the program run on an annual basis?

Q:

There is an annual fee for the program, but that information is proprietary.

A: Q:

32

Do you inspect every shop and if so, who does the inspections?

A:

Is there an optimum number of shops you want to have and if so, how close are you to reaching that number?

We are just south of 225 shops. There are about 300 Toyota dealers that have body shops, so an optimum number would be closer to 300.

A: Q: A:

Have you had any shops drop out and if so, why?

The program has been around for 20 years and several program administrators have come and gone in those 20 years. I have been with the program since late 2015, so I can’t really speak to what happened before. I would guess that a few shops left when a dealership buy/sell took place and the new owner either was not interested in the program or closed the body shop altogether. The only shop that has dropped the program on my watch is a dealer in Alaska. They had a very tough time keeping technicians. A tech would no sooner get trained, at great expense to the dealership, and then they would leave and the dealer would have to start all over again. Techs were leaving the shop to work on fishing boats.

Q: A:

How long does it take for a shop to become certified?

That depends on a lot of factors. All Toyota collision shops in a dealer’s market are eligible to earn certification. Once shop location is confirmed, the initial review is conducted. Then the techs need to take the requisite training, the shop may need to buy some equipment and all standards must be achieved. So the whole process can take three to six months.

Does Toyota offer any brandspecific training as part of the certified program?

Q:

Yes. We do require repair & refinish technicians at the shop to be Toyota-specific trained at one of

A:

MAY 2018 AUTOBODY NEWS / autobodynews.com

our four training centers in the U.S. where we offer hands-on training. In addition to training the personnel at our certified shops, we also train, at those four centers, any independent shop. An independent shop only has to be sponsored by a Toyota dealer. These would likely be shops that work closely with the dealer, especially those dealers who do not have their own body shop.

Does Toyota do any marketing or promotion to Toyota owners to make them aware of the Toyota-certified shops?

Q:

We have several customer communication programs and in almost all cases, we tag-on some sort of message about our certified network. The program has a specific page on the Toyota Owners website: (collision.toyota.com)

A:

Does Toyota have a magazine or some sort of communication piece for the certified network?

Q: A:

For years, we have produced a quarterly magazine called

CollisionPros. It is distributed as a ride-along with ABRN magazine. All industry shops may obtain a free digital subscription by enrolling at Toyota.com/wholesaleparts. Also, our certified dealers can get extra copies if they want.

Q:

work?

What is your biggest challenge in maintaining the net-

I see three things. First, making sure shops keep up with their training. Second, having the shops attract, find and keep quality technicians. And third, growing the next generation of technicians. I see many quality technicians aging out of the industry. We need to find others to replace them.

A:

Based on the recent John Eagle verdict, will you make any changes to your program?

Q:

I don’t foresee making any changes based on that. However, the John Eagle verdict is certainly a turning point for the auto

A:

See Toyota, Page 47


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33


Continued from Page 26

Shop Liability

ter explained. “OEMs have to make sure their data is available for aftermarket scan tool manufacturers to emulate. It’s a very challenging effort, and it’s important to be aware that data lags happen as well, but we work closely with the OEMs to ensure that cars can be serviced anytime, anywhere.” Gruszczynski then took over to discuss who gets the scan tool information, the differences between different enhanced functions, what participating companies do with the OEM information and the OEM level scan tool functionality. He described how a scan tool commands moduleimbedded OEM software to respond by reading codes, clearing codes and calibrating commands. He then evaluated the differences between these commands and the commands generated from the OEM versions of the scan tools. He also confirmed that OEMs recognize the scan tools created by ETI-participating companies as sufficient and effective.

Turning to the subject of OEM certifications, Montanez explained that there are two versions: restricted and non-restricted parts. “Restricted parts involve a lot of time and investment, but non-restricted parts programs offer a wider

Aaron Clark talked about OEM certifications and the challenges the industry faces as this becomes increasingly prevalent

range of training and some standardization of what a shop needs between multiple OEM programs,” he said. Addressing the challenges involved with OEM certification, Clark noted, “There is a wide array of equipment in the marketplace, and we are trying to better understand what shops will need in the future. We are managing data and getting proof of compliance from shops to

make sure the OEMs have that acknowledgement. We need to do better to provide transparency in this industry; we’ve made a lot of movement, but we aren’t there yet. Some of the dealers don’t have the knowledge for all the procedures, but my concern is the training and skills gap needed at a shop level.” Montanez discussed the value of pre- and post-scans, talking about the involvement of dealerships for some alignments because the resets must be done on a dealer’s computer. He noted, “There’s accountability with these programs. Documentation is vital—you have to keep your files clean! Legal matters often come down to the paperwork, so make sure you retain everything, including copies of your pre- and post-scans, as proof. Every file should be perfect, and you need to keep all your paperwork in order to stay on these programs. “It all comes down to branding. The OEMs want to maintain a good reputation because repair problems impact how consumers view the OEM. Being on an OEM program is almost like being on a DRP. You have

to meet certain criteria for each program you’re on, but the liability all falls on you. I wouldn’t be surprised to see KPIs evolve related to ensuring OEM procedures are accessed and followed.” Sgro, the final speaker, discussed his shop’s experiences with scanning, including its impact on cycle time, liability, productivity and customer service. He said, “A pre-scan is like a doctor check-up. There’s no way to repair a car properly without doing this first. It’s all about safety, and it’s important to know what’s wrong with a vehicle before you start repairing it. You have to be prepared and plan properly in order to do your job of putting the customer back in their proper place.” Potter advised attendees to buy a quality product and update software on a regular basis. Montanez reiterated the importance of reviewing OEM repair procedures and said the OEMs’ specific websites are the sources of the most up-to-date information. The panel discussion concluded with a question and answer session.

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› Temecula, CA 92591


Continued from Page 23

Continued from Page 24

OEM repair procedures every time, and that even slight changes in materials or deviation from proper procedures can have severe consequences.” “We’re in the game. The OEMs are in the game. We need to get the consumers in the game,” Tracy noted. “Now you’re empowered with proof that aftermarket parts and non-OEM methods destroy safety and increase the likelihood of injury. The IIHS jumped into the fight and sided with the insurance industry, but they said the replacement parts must exactly replicate the original parts to preserve crashworthiness, and they even admitted that they don’t know how LKQ is judged. “I’m going to drain the swamp and stop insurance companies from getting involved in safety issues. The people I’ve met in your industry— they care about what they do for a living. As vehicle safety professionals, you’re heroes because you’re responsible for people’s lives.”

most parts these days is going to save you time on the front-end instead of [only] finding out about things at the end of the repair.” He cited a trim panel on the upper B-pillar of the 2016 Honda Civic that is held on by a special clip that actually must be broken in order to remove the trim panel. “If you knew that clip needs to be broken, your technician isn’t spending an hour trying to get the panel off without breaking the clip,” Gredinberg said. Knowing that $0.35 clip is onetime use also enables the shop to get it ordered up front “so you’re not calling the dealership at 5 p.m. on Friday afternoon needing a clip that’s not in stock.” Gredinberg said that example also demonstrates the value of the DEG, which enables anyone to submit inquiries about labor times or operations in any of the Big Three estimating systems, and to see the information providers’ responses to

Todd Tracy

OEM Certifications

these inquiries. The DEG can be used to submit inquiries about any aspect of the estimating databases and system: inaccurate part numbers, missing parts, incorrect or missing labor notes, incorrect part descriptions, etc. “How many of you have called the tech support number and sat on hold with CCC, Mitchell or Audatex?” Gredinberg asked those at his session at NORTHEAST. “You don’t have time for that. Let me do that. That’s what I do. We’ve created relationships directly with Mitchell, Audatex and CCC. So if you have an inquiry regarding the database, I can get an answer pretty quickly. I can’t get an answer for everyone, but we have a much faster approach because we have a connection and know how to contact the right people.” Gredinberg said that until late this past October when a CCC user submitted DEG Inquiry No. 11,418, the Motor Information Services database (used by the CCC estimating system) didn’t show the clip as available separately from the trim panel, nor did the database indicate it was a one-time use part.

“We got that changed in less than 24 hours,” Gredinberg said, noting that the few minutes it took someone to submit that inquiry to the DEG is now likely saving time and money for everyone writing an estimate involving that trim panel. The DEG website has a searchable database of nearly 12,000 inquiries submitted over the past decade, Gredinberg said, so if someone has previously submitted the same question you have, it may take only a minute to find the answer. John Yoswick, a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (www.CrashNetwork.com). He can be contacted by email at john@Crash Network.com.

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H O ND A C A LI FO R N IA

AutoNation Honda Costa Mesa

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

AutoNation Honda Roseville R o s e v ille

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

Barber Honda B a ker sf ield

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

First Honda S i mi Va lle y

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

Galpin Honda M is s io n H ills

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

Honda Cars of Corona C o r o na

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

A C U RA C A LI FO R N IA

Acura of Fremont F re mo nt

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

Acura of Pleasanton P le a s a nt on

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

36

MAY 2018 AUTOBODY NEWS / autobodynews.com


Please contact these dealers for your Honda or Acura Genuine parts needs. CAL IFO R NI A

CAL I FORNIA

C A L IF O RN I A

WA S H ING TO N

Honda of Hollywood

Pacific Honda

University Honda

Ho lly wo od

S an Diego

D avis

A u bu r 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

N ort h Holly wo od

Honda of Oakland Oa k la 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 P as a d en a

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

ID AH O

Larry H. Miller Honda B oise

San Francisco Honda

888-941-2218 208-947-6060

S an Fra ncisc o

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

Scott Robinson Honda

Honda of the Desert

Torrance

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

McCurley Integrity Honda R i chla 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 EVA D A

Findlay Honda

Ta c o ma

L as Veg a s

Ca t h e dral Cit y

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

Selma

Su n ny vale

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

M onrov ia

M on t c la 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 M ilpit 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

CAL IFO R NI A

AutoNation Acura of South Bay To rran c e

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

Bakersfield Acura B aker sfi el d

661-381-2600

Dept. Hours: M-F 7-6; Sat 8-5 fhhparts@findlayauto.com O RE G O N

Lithia Honda of Medford

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

831-464-1800

Sa n t a Cru z

H en derso n

888-234-4498 702-568-3531

CALIF ORNIA

M e d f ord

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

ID A H O

WA S H ING TO N

Metro Acura

Lyle Pearson Acura

Montcl ai r

B ois e

F if e

800-446-5697 909-625-8960

800-621-1775 208-377-3900

253-926-3331

Dept. Hours: M-F 7:30-5:30 wholesaleparts@metrohonda.com

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

Acura of Honolulu

Findlay Acura

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

H en d ers on

866-931-9086 808-942-4557

877-770-5873 702-982-4160

Marin Acura

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

Dept. Hours: M-F 7-6; Sat 8-4 jmoore@findlayauto.com

C or te M ad e ra

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

N EVA D A

HAWAII

Honolulu

800-77-Acura 415-927-5350

Hinshaw’s Acura

Dept. Hours: M-F 8-5:30; Sat 8-4 parts@marinacura.com autobodynews.com / MAY 2018 AUTOBODY NEWS

37


Historical Snapshot with John Yoswick

—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.

Problems With Non-OEM Radiators Led to CAPA Certification Program 20 Years Ago in the Collision Repair Industry (May 1998) The Collision Industry Conference (CIC) task force considering alternatives to the current method of calculating shop compensation for paint materials has drawn up a list of proposed guidelines for any new paint materials calculations system. The task force, which includes collision repairs, insurers, auto and paint manufacturers and estimating system providers, has called for a system that: • is based on surface area of the part being refinished, as provided by the manufacturer of that part; • includes no caps; • uses a multiplier for repaired (versus new) panels; • includes as “refinish materials” only those items listed as such in the Mitchell guide; • includes all refinish surfaces or areas with no deduction for overlap of adjacent panels; • includes a blend allowance that averages 50 percent of materials calculated for full painting of a panel; and • offers different allowances based on the use of different VOC-content products.

Representatives of CIC and the task force said some members of the industry have voiced concerns about changing the current system. But Phil Cunningham of Motor Information Systems pointed out that the changes are inevitable. His company’s customers, he said, have asked Motor to create a refinish materials estimate system, just as Mitchell International has. “So we are going to develop one,” Cunningham said. “We [have] also been told that the current method that takes a rate multiplied by an hourly refinish allowance is not preferred. The method that is preferred is a rate times the surface area. They’re going to be competing refinish materials estimating products out there. The question to the industry is: Does the industry want to be involved in developing the methodology on 38

which material estimating is predicated, or do they prefer the three information providers go off and each develop their own methodology?” – As reported in The Golden Eagle. A wide variety of alternative methods of calculating refinish materials have been proposed over the years, but no single one has gained widespread usage; only about 1-in-4 shops, for example, report using an alternative materials calculator / invoicing system.

15 Years Ago in the Collision Repair Industry (May 2003) The Society of Collision Repair Specialists (SCRS) last month gathered industry leaders from around the country to discuss what they see as key issues facing the industry, and to draft “position statements” based on those discussions. About 80 people, including shop owners and representatives of SCRS state and regional affiliate associations, attended the National Industry Issues Forum and voiced support for five “resolutions” created during the meeting. Perceived problems associated with third-party claims auditing, sometimes referred to as “desk audits” or “remote audits,” were among the issues generating the most discussion during the meeting. The group agreed that a starting point in addressing the problem would be for the CIC to develop some definitions of such terms as “desk audit” and “third-party administrator,” which are often used interchangeably. Shop owners pointed out that “remote auditing” may actually violate some state laws, which can require physical inspection of the vehicle or licensing of claims adjusters, appraisers or estimates. Among the practices of some third-party claims auditors that the group listed to be addressed were: taking of arbitrary discounts without explanations; sending payment without explanation of what was charged on the estimate; not using one estimating system, but “cherry-picking” labor times or procedures from multiple systems; and seeking shop

MAY 2018 AUTOBODY NEWS / autobodynews.com

The language was not as strong as that originally proposed which, without using the term “arbitrarily,”

agreement prior to providing paperwork to the shop. Shops at the event said they are again more frequently being told certain items are part of their “shop overhead” and thus not billable; again, the group felt CIC could assist by revisiting its definition or explanation of “overhead.” – As reported in Autobody News. 10 Years Ago in the Collision Repair Industry (May 2008) Minnesota Governor Tim Pawlenty last week signed into law legislation backed by the Alliance of Automotive Service Providers of Minnesota (AASP-MN) that prohibits an insurer from “unilaterally and arbitrarily disregard(ing) a repair operation or cost identified by an estimating system (that) an insurer and collision repair facility have agreed to utilize in determining the cost of repair.”

In 2008, Judell Anderson of the Alliance of Automotive Service Providers of Minnesota helped enact a state law prohibiting an insurer from “unilaterally and arbitrarily disregard(ing) a repair operation or cost identified by an estimating system.”

prohibited failure to use an estimating system in its entirety or refusing to compensate a shop for documented paint and materials charges identified through industry-recognized systems. Still, AASP-MN Executive DiSee Non-OEM Radiators, Page 47

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39


National News

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

with Ed Attanasio

Assured Performance Develops Technology to Provide Shop Accountability Scott Biggs, CEO of the Assured Performance Network, recently responded to our article from last month (OE Certifications, John Eagle Case Raise Questions of Accountability) to share what his company is doing for its member shops to help ensure they don’t end up like John Eagle Collision. Assured Performance is a nonprofit consumer advocacy organization that was created specifically to assist consumers identify certified collision repair providers that meet OEM requirements to properly and safely repair the next generation of vehicles using advanced materials and technology.

Q: A:

What did you think about the article?

Your article was a good callto-action, but it really didn’t

offer a viable solution. Well, we have made huge strides in that regard and that’s why I wanted to respond to the piece. We’ve made a significant investment in technology to try and give our shops the ability to control and deliver a better quality output. Tell us about the technology you’ve developed to add accountability and transparency for your network members.

Q:

Five years ago, we approached several IP companies and other tech companies to build something, and they all said no. So, years later, we decided to build it ourselves, actually hoping that some other companies would predictably try to build something better once they saw it. This year, we are finally seeing some other companies coming up with pieces of the puzzle in an attempt to emulate or

A:

improve what we’re doing, and that’s fine because it just feeds the need. There are three main reasons and benefits for having this app, which we call our Quality Assurance and Control System (OE-OC). For one, if you think about the John Eagle case, how does a shop mitigate their liability exposure and avoid it from happening to them? There are shops out there right now that are scared by this landmark case and are looking around for a solution. By law, you want to make sure as a shop owner that certain things take place. First, that all your technicians are following OE repair procedures and second, that everything is documented so that you have some sort of proof if you ever end up in court. Third, shops obviously don’t want re-dos, because that can cost them a fortune. If you have shoddy work going out the back of the shop, you’ll have a lot of un-

happy customers and DRPs as a result, so shops are already motivated to do quality work for obvious reasons. The response from shops about the OE-QC system has been very positive, but now the challenge is to get their technicians to use it. It’s an integration process that will probably take a year or even more to get shops to use it on an everyday basis. As other companies come out with their own versions of this system, we have no issues with that. If someone has a better product in this space, we’re happy for them. We did it because it was desperately needed at the time, but we know it’s not going to be the only solution. We now require our member shops to adopt this tool or another tool that is functionally equivalent to cover them with documentation and prove that their technicians are following and using OE repair procedures. As a shop owner, you want to

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cover your act. [You want to] have accountability from your technicians and produce a better quality product—it is really that simple. So we built this tool and tried to keep it as simple as we could, because we know that if it’s too complex, no one will use it. [We decided to build] something that could allow the shop to quickly and easily identify what their technicians are doing through a limited number of clicks and by taking a few photos of the repair process. We also decided to create a quality checklist for all jobs based on the vehicle and the OE procedures that were used in the repair. We made it easy for technicians to be assigned to a repair then document it all right in their hands. It’s very seamless and feeds to the smart app easily, plus it’s all electronic and based on the shop’s data available to them through their management or estimating system. We built it, and then we streamlined it and finally realized that we needed to develop a system where specific technicians can be assigned to specific jobs based on their skill sets. So we created that part of the app and released it two days after the John

Eagle case was announced during our annual conference in Scottsdale, AZ. It was just serendipity, but the timing is indeed significant. If we wanted to charge shops for this app, it would cost them thousands of dollars every year. But because we internalized the cost of it and made it part of our certification, we’re able to give it to our certified shops at no cost. So now the shops will have the tools they need as OEs and insurers begin to jump onboard. As an example, General Motors recently announced that output quality documentation is fundamental to its future certification program. Our shops now have access to at least one tool to help them.

Q: A:

Tell us more about your repair compliance app?

This app transforms the shop’s estimate repair line information into an interactive checklist on the technician’s smart phone, tablet or desktop. Then in just seconds, the technician can use simple touch commands to take photos and provide other documentation as they follow

KEARNY MESA

PARTS DEPT. HOURS:

SUBARU

MON-FRI 7-6 / SAT 8-5

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OEM repair procedures in the proper and safe repair of any vehicle. It allows management to review and approve the technician documentation and see alerts when no documentation is provided. This provides the shops with an efficient and cost effective ability to conduct robust quality assurance programs and build quality into the repair process based upon following OEM repair procedures where they exist. [The program’s simple touch-screen functionality only takes seconds for the technicians to properly document so as to not put quality control at risk or leave it to an unlikely third-party and after-the-fact spot check.]

Q: A:

What is ShopOps?

ShopOps is like a business toolbox. Inside of the program, shops will find many critical tools they need to help run their business. The Quality Assurance Program is one, but there are others too. For example, every shop should have a skills inventory based on the staff they have employed, but how many

shops actually know which of their technicians have what skills and are trained to repair what types of vehicles? That’s a pretty tall order for your average shop to do, so we’re working with I-CAR to give another tool to our shops as part of ShopOps. Inside this application there is a human resources feature functionality that enables the user to assemble and maintain a skills inventory for every employee they have. This way, they can keep track of each technician’s skills based on training or assessments they have, including I-CAR classes, OEM courses, ASE testing, and paint and equipment training classes. It becomes part of that particular shop’s skills inventory, which allows them to have the right mix of skills to accomplish the types of repairs they perform. That way, they can assign only the right technician to the job they’re trained to do and in the future, they can hire techs who can bolster their skills inventory while getting training for those who need more or specific knowledge and skills. This part of our efforts is focused on the foundation of this industry—employees and quality!

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National Associations with Chasidy Rae Sisk

Get to Know WIN’s 2018 MIW Honorees The Women’s Industry Network (WIN) recently announced that four women will be honored as Most Influential Women (MIW) in 2018. They will be celebrated at the MIW Gala and Awards Ceremony, held during WIN’s Educational Conference in Indianapolis May 7–9. Originally established by AkzoNobel in 1999 and taken on by WIN in 2013, the MIW program aims to recognize women whose leadership, vision and commitment to excellence have enriched the collision repair industry. The 2018 MIW honorees are Shelly Bickett, Director and CoFounder of Fix Auto USA; Mary Mahoney, Vice President of the Insurance Replacement Division for Enterprise Holdings; Marie Peevy, Owner of Automotive Training Coordinators LLC; and Collisionista Petra Schroeder. While all of these women are involved with WIN, the association does not select the MIW honorees. Established criteria focused on industry influence, professional accomplishments, mentorship and community service are considered by an independent third-party company that reviews the nominations and selects each year’s winners. This year’s honorees all graciously agreed to discuss with Autobody News their careers, involvement with WIN and how they feel about receiving this recognition. After years in the corrugated box industry, Peevy began her collision repair industry career by chance when she relocated and needed a new job. She recalled, “I liked it from day one, but I began to love it after my first year when I attended an industry conference. I developed a tremendous respect for collision repairers, owners, managers, technicians—all of them. I found the industry interesting and challenging, [and] always providing an opportunity to learn. I have been in the industry since 2005, and I find it hard to believe those 13 years have gone by so quickly.

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“It’s difficult for me to discuss my career without first stating I have five boys ranging in age from 5 to 32! I think this is important because, as most women know, your priorities revolve around your kids first. However, it is important you do something for yourself, so that you leave an example of what is possible for your children. Honestly, my real career accomplishments began when I took a chance on an idea. I saw collision repairers struggling to meet and maintain training requirements and all of the details associated with it. My passion for their struggles drove me to develop and continue to refine an approach that simplifies the process. Every day, I am excited because I know my company, Automotive Training Coordinators LLC, is helping collision repairers and making their lives just a little easier. I am grateful to the people who coached me and even for those that said I couldn’t be successful. Today, my company makes a difference every day.” Mahoney began her career with Enterprise as a management trainee in 1985, learning all aspects of the business and taking on increasing levels of responsibility until she moved to its worldwide headquarters in St. Louis in 1994. There, she spearheaded the company’s first insurance replacement department and was tasked with improving the communication process between branches, insurance companies and collision centers. The same year, she was involved with developing and implementing the Automated Rental Management System (ARMS®). She recalled, “After being part of such a significant milestone, I knew from then on that this was the segment of our business in which I belonged.” In 2004, Mahoney was promoted to overseeing the management of Enterprise’s insurance replacement and collision business throughout North America. “Each promotion at Enterprise has been a personal accomplishment

MAY 2018 AUTOBODY NEWS / autobodynews.com

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.

for me,” she said. “What has been important within each promotion is that I’ve been fortunate to be part of the growth of the Insurance Replacement division and team as well. Being a leader and mentor to this team, many of them women, has been very rewarding, and I’m so proud of the work and advancements being made in the industry. I’ve also been fortunate to be part of important efforts such as NABC’s Recycled Rides and Progressive’s Keys to Progress. These initiatives play key roles in getting vehicles to individuals, [including] veterans, who wouldn’t have otherwise had one.” Mahoney also sits on the board of the Collision Repair Education Foundation (CREF). Bickett became involved in the industry in 1984 when she opened her first collision repair facility in Southern California, a business that

has since grown to include nine locations with more than 250 employees and more than $30 million in annual revenue. The shops are part of Fix Auto USA, which Bickett cofounded. She shared, “I saw the opportunity for success in an industry that was ready for improvement, both in processes, measurements and financial enhancement. My business knowledge, accounting expertise and process improvement training made this a good business venture.” Over the past three decades, Bickett has been on the cutting-edge of industry changes, participating in a variety of industry initiatives and serving roles in several associations. She was a founding member of Caliber Collision in 1991 and co-founded Fix Auto USA in 1997, a franchise that now includes 126 locations. She

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43


Day Job/Night Job

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

with Ed Attanasio

The Amazing Art of Chris Harsh

lucky to meet Bryan Hilleary, who was willing to teach me how to paint. He told me that he would teach me everything he knows and pay me while I was learning, so it was a perfect situation. Over the years, we’ve worked together a few times at different shops, so we’ve been friends for a long time now.” Looking back on his career as a painter, there were a few obstacles along the way, but Harsh always stayed positive and focused on doing a good job wherever he worked. “I was painting camper shells for a while, and that’s definitely a completely different way of working,” Harsh said. “They prepped the shells and loaded them in the booth and I was spraying like a robot. It wasn’t challenging at all, but I could work fast and log eight hours after working only 4–5 hours.” A technical instructor at the AkzoNobel training facility in Always looking for a silver Orange, CA, Chris Harsh is also a highly talented artist lining in every cloud, Harsh Harsh, 41, who is married with used the camper shell job to learn anthree children, started painting cars other valuable skill that would later in high school back in the 1990s, but help him in his current position as a can still vividly remember his very teacher. first body/paint job. “Most of the preppers there “My grandfather left me an old were Hispanic, so I took the oppor1970 Chevelle,” he said. “He was the tunity to learn Spanish,” he said. original owner, so it needed some “Talking to them every day really work. But I got it running, so once I helped, and now I am completely got my license, I was ready to drive. I proficient in Spanish. I am officially worked on the car one summer in my friend’s garage and he showed me how to mix up some body filler. I started sanding the car, fixing dents and applying the primer, and eventually I painted it yellow. People to this day still remember that big yellow car.” Once he realized that he Harsh’s creations are hanging on walls all over the world liked painting cars, Harsh landed a job working for a collision a bilingual instructor, and recently I center in Huntington Beach, CA, was in Mexico City training the Akwhere he met his first mentor. zoNobel technical crew there. I have “I started working there the day met Spanish-speaking painters from I turned 18, so yes—I was ready to all over the country, and connecting work and learn,” Harsh said. “I was with them through language is very When he isn’t working as a technical instructor at the AkzoNobel training facility in Orange, CA, Chris Harsh is pursuing his passions—skateboarding, surfing and art. Thanks to his unique style and integration of different aspects of his background into his paintings, Harsh is getting rave reviews for his seascapes, tree images and even some abstract work that he’s been experimenting with recently.

44

MAY 2018 AUTOBODY NEWS / autobodynews.com

rookie or a veteran,” he said. “If I can make them better painters and teach them something they didn’t know in one of our three-day classes or by coming to their shop, [that is] even more gratifying.” Back in 2002, Harsh was working at a Buick, Pontiac and Mazda dealership, where he became interested in pinstriping. “On the Buicks at that time, they featured handpainted pinstripes, so I started watching their pinstripper in action,” he said. “He gave me Some of his creations use AkzoNobel paint, which is applied some tips and some of his to paint can lids oldest brushes. I got a kit and AkzoNobel products was immedi- practiced, and after a while I got pretty good at it. That kind of fueled my art ately attractive to him. “I really enjoy what I’m doing career.” Seven years later, Harsh began because I am able to share my knowledge and experience with so many working with ink markers and penSee Chris Harsh, Page 60 different people, whether they’re a satisfying.” After 23 years on the body shop side, Harsh was ready to enter a new chapter. Teaching people how to use

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Continued from Page 42

MIW Honorees

helped found CIECA, Cyncast and the Collision Career Institute and has spoken at several conferences. The breadth and extent of Bickett’s knowledge and experience are astonishing and surpassed by few industry professionals. After Schroeder finished high school, her father fell sick, so her parents recommended an apprenticeship that she began in 1969 at Herberts/Standox, a chemical company in Germany, with the intention of resuming her studies. However, she discovered an interest in the industry, sticking with the company to become the first female senior employee in 1992 and the first female assigned to an ex-patriot position in 1995 when she was sent to the United States. Her involvement with the company continued after it was sold to DuPont and then later to Axalta. She was recognized on many occasions, receiving a Clear Coat Technology Research and Marketing Award, a Double Duty Award and an award for Excellence in Customer Experience and Loyalty. In addition to acting as a judge for the Skills USA competition over the past four years, Schroeder has volunteered with SCRS, NABC and WIN where she is now serving her second year as the association’s Chair. Additionally, she volunteers for Emmanuel House, Girl Scouts and other community service projects. “There were a lot of opportunities to just apply myself, and I have a great passion for this industry and the people in it, especially students and other females,” Schroeder said. Schroeder attended her first WIN conference in 2007 and became interested very quickly, volunteering on the association’s committees and joining its board in 2013. She has served as WIN’s Chair since 2016. “Networking with so many women provides steady and mutual learning,” she said. “There is not a conversation that I have without learning from someone else. WIN’s mission to encourage more females to join the collision repair industry fits perfectly with my interests and passions, and receiving the honor of 46

being named a 2018 MIW makes me want to continue volunteering even more.” “I feel very honored, humbled and excited to be recognized as an MIW. As WIN’s Chair, I’ve worked with former MIWs, and it’s great to be part of this impressive list of names. I think all of us who have been honored find that we like this work and we do these things because we have a passion for it; that it’s recognized is just icing on the cake.” Having been involved with the association since it began, Bickett is also passionate about WIN’s mission, which aligns with her involvement in the National Charity League. “Working with younger women in my business, I have watched them grow organically, but there wasn’t anything industry-specific that encouraged and developed women before WIN,” she said. “The women in this industry were mostly surrounded by men, but WIN gives us the opportunity to work together, promote each other and develop our careers and leadership skills.” “Like many women, I just want to get things done: work, improve businesses and take care of employees, business associates, family and friends. It’s nice to validate all of my contributions by being recognized in this way.” Mahoney is inspired by WIN members and their efforts to work together to address the industry’s many challenges. “While there aren’t as many women in the industry as there could be, we are seeing women’s roles grow and advance,” she said. “We’re moving forward very quickly in all aspects of the automotive industry, especially the collision repair industry, and I am so excited to be a part of it.” “I am passionate about what I do every day, and I am passionate about helping others achieve personal and professional success. Being recognized by WIN as an influential woman is a great honor, and I am humbled. It tells me maybe I can make a difference in the industry and in the lives of women I meet on a regular basis. That is so important to me and to Enterprise. It is important that we continue to bring awareness to the collision industry and the criticalness of training and advance-

MAY 2018 AUTOBODY NEWS / autobodynews.com

ment that needs to continue [in] this area, and especially for women.” Peevy said she was nervous when she attended her first WIN conference in 2012 because she only knew one person. “[However,] it didn’t take long before many people were introducing me to others and taking time to help me feel like I belonged,” she said. “I found being involved with WIN and attending the WIN conferences provided a great opportunity to grow and learn. There’s an important lesson in this: get involved, take a few chances and engage others. Networking will help anyone take it to the next level.” “It’s humbling to be recognized as a MIW, especially when I think of all the past winners and even those wonderful women who also are being recognized with me this year. It is an honor to think you are being recognized for being a positive influence. It’s been difficult to believe because this industry is made up of some of the most amazing, kind and generous people you could ever know.” All of this year’s MIW honorees agree that including women in collision repair is important because the industry truly needs a feminine perspective and a healthy balance, and they have all witnessed an increase in females in a variety of roles within the industry over the years. Each woman shared her views as well as advice for young women interested in pursuing a career in the automotive industry. “Women have a growing influence within our industry and we need to recognize those contributions, which are required for the industry to have the healthy balance it needs to succeed,” Peevy said. “Young women should know they will be respected if they show an interest in learning the industry, earning a place in it and respecting it. There’s tremendous opportunity for women in our industry, and by that, I mean there are literally hundreds of roles women can play. In fact, there’s really no role women can’t hold successfully.” Acknowledging that there are not as many women in the industry as there could be, Mahoney stated that there have been definitive growth and advancements in women’s roles. She

praised Enterprise for its promotefrom-within philosophy that rewards employees based on performance and has led to women being well represented in senior leadership positions throughout the company. “It can be a tough process, but it’s also fair and is opening doors for women in every one of our lines of business,” she said. “I think this industry offers a fantastic opportunity for anyone, but especially women, to have a career in so many areas, and I encourage women not to shy away from segments that haven’t historically been considered as a career opportunity for them.” “As I progressed throughout my career and considered each next big promotion, I often questioned whether I was qualified, but support and mentoring taught me that I’d never know what I could achieve unless I got outside of my comfort zone and took a chance. The opportunities are endless!” Bickett said, “The collision industry needs the diversity that women bring. We are different, and this is a benefit to businesses because women bring different experiences and skill sets that complement men’s and can bring synergy to this industry. There are many opportunities for women in the automotive industry, and this can become a career with many avenues. Young women interested in working in this industry should engage with other women, but men also. Network and find a mentor. Have a clear career vision, and empower yourself.” Schroeder also mentioned that women and men offer different skill sets and different perspectives that complement one another, but she believes it’s important “to remain firstclass ladies instead of trying to be second-class men. It’s important to be aware of how you present yourself and women in general. Behavior, wardrobe and language are all important. You cannot demand respect, but once you show that you do what you say and you apply your knowledge and experience, respect will come.”

Congratulations on being named 2018 MIWs to these four spectacular women!

www.autobodynews.com


Continued from Page 38

Non-OEM Radiators

rector Judell Anderson views the legislation as a win for the industry. “Under this bill, insurers will no longer be able to selectively use these estimating systems,” she said. – As reported in CRASH Network (www.CrashNetwork.com), May 12, 2008. CRASH Network in 2009 interviewed Minnesota shops about the impact of the law six months after it went into effect. “It’s still all over the board who is paying what, but we’re seeing changes,” one shop owner said. “It’s improved the awareness and understanding of the P-pages.” More insurers, he said, are paying for feather, prime and block operations, and for de-nib and polish. Another shop owner said, “Where it’s helped us is with wheel alignments and mechanical labor. Some insurance companies like to pay a flat price for wheel alignments or say that procedures designated in the (estimating system) as mechanical labor are body labor. Now I hold up the book and say we use the whole book and nothing

but the book.” He pointed out the law allows for deviations from an estimating system if agreed to by the insurer and shop, so thought it probably hadn’t helped shops on DRP programs. “But it has helped shops that are not on the programs do a lot better in quite a few areas,” he said. “It allows me to say, ‘We’ve got a law, and we only deal with law-abiding companies.’” Montana lawmakers passed similar legislation in 2011. 5 Years Ago in the Collision Repair Industry (May 2013) Speaking at the Automotive Body Parts Association (ABPA) convention this month, Jack Gillis of the Certified Automotive Parts Association (CAPA) said his organization is working on certification requirements for air conditioning condensers and radiators. “We did some preliminary testing on very popular radiators, and we found there are some problems,” Gillis said. “There are great radiators out there and there are not-so-great radiators out there. One of the issues is that radiator failures generally occur six to 18 months down the road when the consumer has forgotten they even

had the radiator put into their vehicle.” Gillis said CAPA compared nine non-OEM radiators to their OEM counterparts for the 2004–07 Chevrolet Silverado, the 2005–07 Honda Accord and the 2000–07 Ford Taurus.

Continued from Page 32

Toyota

repair industry in general and the collision industry in particular. What do you see for the future of OE certification programs?

Q:

We see this as a growth area. Customers like the confidence of having their car repaired at a certified shop. And dealers know they can run a better operation as a certified shop. There is still plenty of profit in collision repair and we want our dealers to understand that.

A:

In 2013, Jack Gillis of the Certified Automotive Parts Association (CAPA) said his organization found problems with non-certified non-OEM radiators

Seven of the nine, Gillis said, failed to match the OEM part. Problems found, he said, included radiator caps that failed pressure testing, premature corrosion issues, leaks dues to poor welding and tube fractures. – As reported in CRASH Network (www.CrashNetwork.com), May 27, 2013. Two years later, CAPA began certifying non-OEM radiators. Gillis retired from CAPA this year after nearly three decades leading the organization.

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47


Media and Publicity for Shops

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

with Ed Attanasio

Fill the Void - How to Find, Retain Good Employees You’re short a technician and an estimator, and your last painter took a job to paint government vehicles for the city because they’re going to pay his medical insurance and offered him a pension. How can a small independent shop (or even an MSO, for that matter) compete with that? What happens when your business is booming and the cars are lining up to be repaired, and suddenly you don’t have the people in place to do the work? For how long can your existing employees work overtime and weekends to catch up before they suffer from major burnout? Comebacks caused by shoddy work are often performed by overloaded and exhausted techs, and after a while it becomes a vicious cycle. Your DRPs are unhappy and after a while, they will start looking elsewhere. Don’t feel alone. It’s getting increasingly more difficult to find the best people who can fit into your company culture and contribute to your organization. And once you have them on staff, what do you do to keep them onboard? I interview body shop owners all over the country all the time, and their #1 concern is how to find good techs, painters, estimators, front office people and customer service representatives. The shortage of talented and well-trained collision professionals is a problem that isn’t going to get any better, so proactive shops are now investing in marketing and recruiting efforts in a big way. So, here are some suggestions on how to find good employees and keep them in the fold, because in the end, you’re only as good as the people who work for you. Loni Amato, the owner of Ingenious Solutions, worked in Silicon Valley for many years and helped a wide range of different companies with their staffing and recruitment. By using several of the techniques listed here, Amato was able to find top talent and keep them onboard. “In any service-oriented, consumer-facing company, the strategies

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are basically the same,” Amato said. “In the end, it comes down to identifying your needs and continually working to fill them with the best people you can find. Many shops find the right people and say, ‘Okay, our work is done.’ But that’s a mistake, because you never know when

ferences where they are likely to meet candidates you may successfully woo.

• Check job boards for potential candidates who may have resumes online, even if they’re not currently looking.

“In the end, it comes down to identifying your needs and continually working to fill them with the best people you can find” — Loni Amato

someone will move, find a better job or retire, for that matter. MSOs have a definite advantage over independent shops when it comes to recruiting and retaining talented people. One of the main reasons is that many chains maintain fully staffed human resources departments that mom-andpop shops can’t compete with.”

Assemble your own inventory of candidates Shops that hire new employees based on the candidates who walk in their door or answer an ad in the paper or online are often missing out on the best candidates. “Some of the best people in the collision industry are likely working for someone else and they may not even be considering a new position elsewhere,” Amato said. “So, here are several simple steps that can help you put more qualified names in your pool of job candidates. By assembling your own inventory of possible candidates, you won’t have to restart the hiring process from scratch every time. The key is to assemble your candidate pool before you need it.” • Invest time in developing relationships with tech school placement offices, recruiters and other organizations that help people find viable careers.

• Enable your current employees to actively participate in industry professional associations and con-

MAY 2018 AUTOBODY NEWS / autobodynews.com

• Use professional association websites and magazines to advertise for professional staff. • Look for potential employees on LinkedIn and other social media outlets. Bring in your best prospects to meet them before you need them.

“I do not encourage poaching employees from the shop down the street for obvious reasons,” Amato said. “Instead, the goal is for you to be in the right place at the right time when someone starts looking around to make a move.” Stay connected to your local schools Engage with the tech schools in your area and play a role as a mentor. If you can get young people to work at your shop, they will likely attract some of their classmates and/or graduates. “Some shop owners work with local schools through mentoring programs,” Amato said. “If you want to hire fairly inexperienced people and then train them to do the job your way, this is an ideal strategy.” Establish an employee referral program

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Human Resources departments at large corporations have strong employee referral systems that have become their bread and butter for attracting and hiring top people. One shop owner told me that one of his technicians had brought him three top estimators and one highly experienced painter through his company’s employee referral program, earning more than $5,000 in bonuses as a result. Some of these programs offer generous bonuses, including things like all-expense paid vacations, tickets to concerts and sporting events, etc. for employees who refer their friends and associates. Instead of conducting “cattle calls” and interviewing semi-qualified people, why not find top candidates through the connections your existing employees already have established? You will quickly find out that good body techs hang out with other good body techs, as do painters, estimators, etc. Build from within and reward top work Providing promotional and lateral opportunities for current employees

positively boosts morale and makes your current staff members feel their talents, capabilities and accomplishments are appreciated. Always post positions internally first. “I always tell shop owners to give potential candidates an interview, even if they are not currently looking for new people,” Amato said. “It’s a chance for you to know them better. They learn more about the goals and needs of the organization.” Be known as a great employer Amato makes a strong case for not just being a great employer, but also letting people know that you are a great employer. “This is how you build your reputation and your company brand,” Amato said. “You’ll want the best prospects seeking you out because they respect and want to work for your brand. Google, which frequently tops Fortune’s Best Companies list, for example, receives around 3,000,000 applications a year.”

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San Antonio Hosting Sherwin-Williams EcoLean Level 1 Workshop

Sherwin-Williams Automotive Finishes announces the next EcoLean™ Level 1 workshop will be held May 22-23, 2018 at the Omni La Mansion Del Rio in San Antonio, Texas. The San Antonio workshop will also include a group tour of the Toyota Tundra assembly plant, one of the industry’s most efficient manufacturing facilities. Sherwin-Williams exclusive EcoLean Level 1 workshops are offered to collision repair center owners and managers, as well as dealer fixed operations managers from across the United States and Canada. They are designed to educate attendees about how to maximize profitability by improving production and eliminating waste throughout their facilities. “The EcoLean curriculum was developed specifically with collision shop operators in mind,” says Lee Rush, Manager of Business Consulting Services, Sherwin-Williams Automotive Finishes. “We give our workshop attendees an extensive and comprehensive look at how they can build a lean culture in their shop from

the ground up.” TheEcoLean Level 1 workshop curriculum includes:

● An overview of lean production and its practical application in collision repair ● Approaches to making a collision facility more efficient and effective ● How to build a lean culture from the ground up

“There’s a reason we continue to sell out our EcoLean workshops; as owners and managers are feeling more and more industry pressure every day, their necessity to perform in both the front office and on the production floor continues to be a challenge,” says Rush. “Those who take our training and deliberately implement the teachings have proven to be incredibly successful within their markets.”

To register online for the upcoming San Antonio EcoLean Level 1 workshop, go to sherwin-automotive.com. For more information on EcoLean workshops, call (800) 798-8572.

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4045 Wild Chaparral Dr. • Shingle Springs, CA 95682 autobodynews.com / MAY 2018 AUTOBODY NEWS

49


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 with Stacey Phillips

Award-Winning MSO Experiences Tremendous Financial Growth, Expansion Named one of America’s fastestgrowing companies in 2015 by Inc. 5000, New Look Collision has been referred to as a model collision repair center by its peers, customers and insurance partners. The family-owned-and-operated MSO specializes in repairing European vehicles and has received numerous accolades since it opened its first location in Henderson, NV, in 2004. In 2011, the company expanded its operations and opened an additional location in Shelbourne, located in the southwestern part of Las Vegas. In June 2017, Michael Whittemore and his wife, Theressa, bought out a competitor in Central Las Vegas. Their fourth location is adjacent to the Henderson shop and was built as an

Body shop owners, suppliers, equipment companies and the Scottsdale Area Chamber of Commerce welcomed New Look Collision during the company's grand opening celebration and ribbon-cutting ceremony in March

overflow facility. The Whittemores’ son-in-law, Paul Williams, is New Look’s general manager and is married to their eldest daughter, Jessica. Together, Paul and Jessica oversee the shops in Nevada. With four locations in Nevada, the MSO opened a new facility in Scottsdale, AZ, in March. Autobody News sat down with Michael during the grand opening celebration on March 27 to find out how this entrepreneur started out in the collision repair business and learn about the processes he has incorporated over the years to operate and expand a successful MSO. Can you tell us about the journey that led to the opening of New Look Collision?

Q:

50

I grew up in the business. My cousin owned an auto body shop, so I spent time helping him out. I also enjoyed restoring old muscle cars. In 1985, I enrolled at a trade school in Johnson City, New York called OTC—Occupational Training Center. After the first year, my instructor, Mr. Heier, told me that I had a knack for doing this type of work and encouraged me to pursue collision repair after I finished school. I graduated from the two-year program at the top of my class out of 50 students. I was 20 years old at the time. The experience prepared me to work in the collision repair industry, but I didn’t realize how green I was. OTC helped me find a job at a Porsche dealership in Vestle, New York. That’s when I found out that I was really green. I just knew the very basics. Fortunately, I had a couple of older technicians take me under their wing. After about a year, I worked at another body shop and then a Ford dealership. Theressa and I decided to move out west to Nevada where her family lived. I spent the next 20 years working as a technician. However, I always had a vision of opening my own shop. It was kind of hard though. In 2003, I was a good technician making a lot of money, but my four kids were pretty young at the time, so I didn’t want to take a risk. As they started getting older, I put a business plan together and with the help of my family and friends, we were able to raise $700,000 to open our first New Look Collision location in 2004 in Henderson. After about 10 years, Theressa and I bought out our investors and silent partners.

A:

What prompted the decision to move into another state to open your fifth location?

Q:

Theressa and I always liked Arizona and we bought a cabin in the Flagstaff area of Northern Arizona two years ago. Many of the claims managers in Nevada are

A:

MAY 2018 AUTOBODY NEWS / autobodynews.com

hubbed out of Phoenix, Arizona so we had already established a relationship with them over the years. They would often ask us about opening a shop in Phoenix due to our cycle time, quality and the fact that we score really well on our KPIs. That’s how we ended up opening our fifth location in Scottsdale. It took about two months to renovate the building to meet our needs. The

The team at New Look Collision’s new location in Scottsdale, AZ. This is the MSO’s first in the state of Arizona

23,000-square-foot facility has a 17,000-square-foot shop workspace and the remainder is allocated to office space, which we will use as we continue to expand in Arizona.

What are some of the challenges of operating in a different state?

Q:

It definitely has its challenges. There are different tax laws and employee laws and we’re learning as we go along. My advice to other shops thinking of moving into another state is to do your homework and make sure that you understand the laws before going in. The people here in Scottsdale and Arizona in general have been very receptive and welcoming, which is nice. Even during our grand opening today, neighboring body shops are coming to support us. We are part of the Nevada Collision Industry Association (NCIA) and plan to join an industry association in Arizona as well to connect with the industry.

A:

Q:

What is the importance of setting up duplicable processes?

All of our locations are pretty much run the same way. We set them up like Ray Kroc set up McDonald’s. You can go into any of our shops and see the same processes: how the vehicles get checked in and tagged and how they run through the shop. There have been times when we’ve had to move employees from one location to another because they were on vacation or sick. Because the locations are run the same, an employee can work at another location with minimal training. Our employees know one another well and keep in contact. If one of our customer service representatives (CSRs) has a question, he or she can call another CSR or office manager at the corporate location to find out the information needed. We also put together standard operating procedures (SOPs) for each of the job duties at the company, so everyone knows what is expected.

A:

How have OEM certifications benefited your business and what is your advice to other shops about obtaining them?

Q:

I started obtaining OEM certifications before they became popular. A business advisor warned me about the recession coming. All of the key indicators were there. OE certification has helped set us apart from our competition; however, one of the challenges is the cost. With some certifications, such as Mercedes-Benz and Audi, it’s about a $1 million investment by the time you factor in the cost of the equipment and training required to be on the program. Not only is the training expensive, but you also have to consider that your top technicians are going to be away for seven to 10 days. It’s a large investment, but it has paid off tremendously for us. My advice for shops, especially the smaller ones, is to focus on one certification at a time and then add on.

A:

See Award-Winning MSO, Page 53


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autobodynews.com / MAY 2018 AUTOBODY NEWS

51


Product Innovation

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

with Ed Attanasio

Shop Owner Invents Revolutionary Repair Estimating Tool Justin Forkuo, the owner of 290 Auto Body, Inc. in Worcester, MA, is now the proud father of a baby girl named Mia, 7 lb., 14 ounces. Another creation he is proud of is a tool called Crash Point Systems. Crash Point Systems makes taking photographs for estimates and appraisals on a vehicle faster and less problematic than ever before by taking

no need to write or attach anything to the vehicle’s surface, thereby reducing prep work. The tool also aids those who have difficulty taking good pictures, regardless of their level of experience. “Most of my technicians speak some type of Spanish and their English is very limited, so that’s when I started using the color-coded wands,” Forkuo said. “Right away, I could see that we were saving time, because we weren’t going back and forth with the insurance companies over the phone. Instead of sitting on hold, which is highly unproductive, my guys were able to keep moving and getting more down.” The color-coded wands are simple and direct, the way Forkuo likes it. Repair is designated with the color Justin Forkuo is the owner of 290 Auto Body, Inc. in yellow. Replace is red; ReWorcester, MA, and the creator of Crash Point Systems move and Install (R&I) is language barriers out of the process, green; Point of Interest (POI) and according to Forkuo. Paint are represented by the color “This tool provides a clear solu- blue. By using the system for 18 tion for the problem of taking colli- months, the crew at 290 Auto Body sion photos that previously were is communicating more effectively difficult to interpret,” Forkuo said. “I than ever. Forkuo’s invention is stripfirst tried it here at my shop to see if ping out language and documenting my crew would embrace it, and I was every aspect of the repair more presurprised by how well it worked. I cisely by using the wands. was looking for a better method to Forkuo wasn’t destined to be a perform vehicle appraisals by creat- collision repair lifer. He began working a standard process for taking ing for a restoration shop and later for photographs and taking all of the a body shop after graduating from guesswork out of the equation.” college, and liked the industry right Three years ago, Forkuo began away. looking for an uncomplicated device “It was a great education bedesigned with maximum efficiency cause at the restoration shop I learned in mind. Based on a series of wands how to use body filler and do metal that are becoming better known as fabrication,” he said. “Then when I crash pointers, he devised a one- started working at a collision repair handed ambidextrous design that al- shop, it was more like changing parts, lows for greater mobility. The but it was also a valuable experience. lightweight, durable plastic polymer Instead of fixing an entire car at the reduces fatigue and resists wear dur- restoration shop, I was fixing panels. ing heavy usage. The five wands are It was a completely different busicolor-coded and use known industry ness.” terms to relay accurate information One day, Forkuo decided he to everyone involved in the repair wanted to do everything he could to process. open his own shop. His inspiration As a touch-less system, there’s was monetary, he said.

52

MAY 2018 AUTOBODY NEWS / autobodynews.com

“I was replacing a hood on a Honda Accord and when I saw the final bill, I thought, ‘Wow, there is a lot of profit here,’” he said. “I did the math and told myself that one day I was going to have my own shop. I still had a lot to learn about the industry, but I was confident that I could do it, so I changed my whole mindset that day and started thinking about going out on my own.” A few years later, Forkuo rented a small shop where he did it all by himself, and surprised many when he achieved $1 million in sales. In 2010, he opened 290 Auto Body, Inc. in Worcester, a city well-known for its bad drivers. “The roads here are not as congested as in surrounding areas. I think that leads to excessive speeds and a lot more accidents,” he said. “Cities like Baltimore and Boston are higher on the list, but we get a lot of acci-

dents in a town of approximately 200,000 people. So I knew the work was there and the market would handle another shop in the area.” Crash Point Systems is now selling its wands in three sizes to accommodate several applications. “For estimators out on the road, we have a set of 7-inch wands that are pocket-size,” Forkuo said. “We also offer them in 18-inch and 25inch sizes, depending on how they’re being used. For example, many people like the 18-inch wands because they allow you to get close enough to touch the area you’re pinpointing, but far enough way to get a clear shot.” The Crash Point System wands also help estimators learn how to take effective photos of damaged areas that adjusters, techs and even painters will be able to decipher easily. “It’s also a teaching tool, because See Estimating Tool, Page 59

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Continued from Page 50

Award-Winning MSO

Q: A:

Where does most of your business come from?

We’re currently contracted with 22 insurance partners, which include small DRPs that give us about five vehicles a month to large DRPs that give us more than 100 a month. We used to be heavily dependent on DRPs, but now it’s about 60/40—60 percent is DRPs and 40 percent is from dealerships and OEM certifications. There are some DRPs we don’t work with because they want too many concessions. We still repair their cars, but we charge our door rate. I think DRPs are always going to be there in some form, so it’s important to build that relationship with your local claims managers and adjusters. I think our DRPs in Nevada know they can trust us. We’re honest and we make sure to put every customer back in a safe car, so we can all sleep at night.

We also have the dealerships pushing cars on us. Now, when people get into a wreck, they usually call their dealership before the insurance company. Some of the cars have a button, such as Cadillac, so the car

(l to r) Owners Michael and Theressa Whittemore with their daughter Jessica, sonin-law Paul Williams and their grandchildren

prompts the owner to the nearest certified collision center. Other car manufacturers are moving toward that as well.

Congratulations on being named one of the top three body shops in Henderson in 2018 by ThreeBest Rated. How has your team managed the shops, the growth and the DRPs so successfully?

Q:

SIERRACHEVROLET

Basically, it’s because we have good people working for us. That’s the key. Having good people, training them well and giving them a competitive wage definitely make a difference. We also look out for our employees and provide perks that other shops don’t offer, such as a nice retirement package and health benefits. Many of our employees come from big MSOs and haven’t received training. The techs themselves have had to pay for it. Word gets around and they hear that New Look pays a great rate per hour, trains employees and offers health benefits. We try to be fair and foster a safe environment where they feel comfortable to work and earn money to take care of their families. All of our techs are ASE- and ICAR-certified and our shops are ICAR Gold Class. I believe we are one of only two shops in the state that is Class A with the Nevada Department of Motor Vehicles. “Class A” is a higher level of licensing where we provided proof of having the necessary equipment to repair cars properly and have ongoing an-

A:

SIERRASUBARU

nual training. Not only do these certifications set us apart from our competition, but our customers can rest assured that they are going to a premier collision repair shop. I think our employees like the culture we have built. Every day isn’t going to be perfect or 100 percent for them, but they know we’re looking out for them.

How has it been helpful to your business to attend a performance group?

Q:

Prior to joining AkzoNobel’s Acoat Selected performance program, we weren’t even using an integrated management system. We’re now using the CCC ONE estimating and management system, which has helped us run multiple locations and track everything. After the first group meeting we attended, we also realized that we had to increase our door rate. I was nervous about doing that because I thought I’d lose customer pay work. However, I quickly found out that I didn’t lose any pay work. It ended up

A:

See Award-Winning MSO, Page 69

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Mopar Masters Guild Annual Meeting Mixes Business With Fun

Another goal that the organization coming better managers in order to keting program that’s designed to sell deliver the best service to its cus- more tires; customer strategies for re- discussed at its annual meeting was a During this year’s NADA Show in tomers, MMG is always promoting calls; the wiADVISOR™ and how to member drive to add 30 active memLas Vegas, held March 22–25, 35 open communication. This year, use it to process customers quickly bers to the group by the end of the year. members of the Mopar Masters Guild they focused even more intently on and accurately and how to get more “Currently, Don Cushing is (MMG) converged to network, attend the topic. customers to fill out surveys and get working on our database and soon we meetings, elect its officers for 2018 will be making a big push to Some of the highlights during the and enjoy a little fun along the way. build membership,” Mcannual meeting included presentations Daniel said. “We will reach from FCA/Mopar executives out to eligible candidates and supporting vendors. through our members to let “Our vendors play an them know that joining important role and we are MMG will benefit them on always anxious to meet many levels. It all starts with with them and find out how our members reaching out to they can help us as memThe formula for every MMG annual meeting is to work hard their colleagues and associbers and as an organizaand share ideas, but also have a little fun too! The week ates and getting the word out tion,” McDaniel said. “With ended with a party at Drai’s After Hours, located in the to the right people.” six tier-one and seven tierCromwell Hotel in Las Vegas During the meeting, the two vendors on our roster, (l to r) MMG Secretary Mike Opperman, President Susan McDaniel, Barbara Davies from Autobody News, Vice they make us stronger and better feedback from them,” Mc- following individuals started their President Joe McBeth and Treasurer Don Cushing at more effective through their Daniel said. “In addition, we discov- two-year terms: MMG’s annual meeting in Las Vegas, March 22–25 efforts and that’s why we ered phone techniques that can be President: Susan McDaniel, Bill MMG President Susan Mc- greatly value their participation.” used to more effectively get back to Luke CJDR Daniel was re-elected for another Subjects that MMG members customers more promptly, especially Vice President: Joe McBeth, Dallas two years, along with several other discussed at the meeting included a when departments are busy and Dodge officers who represent top dealership wide range of marketing and effi- backed up. These types of presenta- Treasurer: Don Cushing, Bald Hill parts departments nationwide. ciency strategies and systems to do a tions foster better communication, DCJR McDaniel is encouraged by what better job. and that is one of the main advantages Secretary: Mike Opperman, Baxter MMG was able to achieve during the Auto Group “We talked about a new tire mar- of being a member of the MMG.” annual four-day meeting. “When we get together, we’re able to share ideas about best practices. Uber Self-Driving Car Crash Lawsuit to be Filed in AZ That’s invaluable because we can take a system of cameras, radar, lasers by David A. Wood, CarComplaints.com and other sensors. Genuine Mitsubishi The lawsuit will seek to deterAn Uber self-driving car crash lawReplacement Crash suit is forthcoming as the daughter mine how the SUV's self-driving Parts are close at hand of victim Elaine Herzberg has re- sensors, cameras, lasers and other from the following quality dealerships: tained Arizona personal injury devices failed to even slow down lawyers to determine why the au- the vehicle. Uber immediately sustonomous Volvo SUV hit and killed pended self-driving road testing while the company investigates how her mother. Herzberg, 49, was killed as she the incident occurred, although Ariwas pushing her bike across a zona officials say they see no reason Tempe, AZ, street when the self-dri- to stop companies from using public (l to r) Marvin Windham (longtime member of ving Volvo struck her as she entered roads as live-fire testing grounds for MMG and Executive Committee), President the same lane as the SUV. Herzberg self-driving cars. Susan McDaniel and Laura Windham network at MMG’s annual meeting Following the Uber crash, was not using a crosswalk and video of the crash shows the Volvo never Toyota said it was suspending selfwhat we’ve discussed and use it to imslowed down prior to impact.The driving road testing operations beprove our departments,” said McUber was traveling in self-driving cause the Uber incident may have CALIFORNIA mode with a human driver behind an emotional effect on Toyota's test Daniel, who is the parts director at Bill drivers.Herzberg's daughter is repthe wheel to allegedly monitor and Luke Dealerships in Phoenix, AZ. Glendale Mitsubishi take control of the Volvo in the resented by Bellah Perez, PLLC. “Networking is a huge part of every GLENDALE CarComplaints.com Editors event of problems. Based on video year’s annual meeting and this year of the crash, the driver wasn't aware Note (3-28-2018): Uber and the 800-424-7884 was surely no exception.” of Herzberg until the crash impact, family of Elaine Herzberg have (818) 549-3850 Fax Mopar is the parts, service and but it leaves many questions as to reached a settlement less than a why the self-driving Uber didn't week after the family retained attorcustomer care organization that supM-F 7:00-6:00 / Sat 8:00-4:00 neys for the case, although details of “see” the woman or the bike. ports Fiat Chrysler Automobiles parts@glendalemitsubishi.com Self-driving cars are promoted the settlement will remain confiden(FCA). Established in 1992, MMG’s as having the ability to mitigate or tial. motto is “The exchange of informacompletely prevent incidents that tion by like-size dealers in a nonhuman drivers would not avoid, pri- We thank CarComplaints.com for competitive environment.” marily because a driverless car uses reprint permission. With the ultimate goal of beby Ed Attanasio

OEM Parts You Need and Trust.

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MAY 2018 AUTOBODY NEWS / autobodynews.com


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MAY 2018 AUTOBODY NEWS / autobodynews.com


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57


NORTHEAST 2018 Panel Shares Tips to ‘Take Back Your Business’ by Chasidy Rae Sisk

On the first night of AASP/NJ’s NORTHEAST 2018, collision repair industry attorney Erica Eversman participated in a panel discussion titled “Take Back Your Business: A Legal Guide” alongside Larry Montanez of P & L Consultants and LIABRA Executive Director Ed Kizenberger. Examining the industry’s focus on proper repairs and following OEM procedures, these industry experts discussed navigating a shop owner’s legal responsibilities while balancing financial requirements. Starting with the Right to Appraisal (RTA) and the Assignment of Proceeds (AOP), Montanez stressed that these are first-party documents only and cannot be utilized as thirdparty documents. He also emphasized the importance of proper documentation in a very clean, organized file. Eversman said, “There is an appropriate time for various documents or various procedures to be pursued. You wouldn’t paint the car before you fixed it. You don’t necessarily want to do something like an AOP on the very first day someone walks in the door. “Part of the reason I say that is because your contract with your customer is to repair the vehicle and to be paid for the repair. The AOP is a separate contract in which your customer is giving you the right to stand in their shoes to collect what has not been properly paid by the customer’s insurance company in exchange for allowing the customer to not have to pay in full at that moment, so you will release the lien you properly have for repairing the vehicle. You’re allowed to keep that car until you’re paid in full. It’s like an IOU. It’s different; it’s a separate contract from the obligation the customer has, that they agreed to pay you. That timing issue is very important to understand.” According to Montanez, “You need a well-written Authorization to Repair and other documents that cover your liabilities. You need to explain the paperwork to the customer before they sign it, and you need to keep it organized because it could be evidence.” Montanez explained that in an RTA, both the customer and the shop 58

hire appraisers, and if the two parties can’t agree, the customer can elect to choose a third-party independent ad-

resort,” she said. Responding to an attendee’s question, Eversman advised that it’s rare to

During NORTHEAST 2018, a panel of industry experts discussed a legal guide to taking back your industry (pictured left to right: Erica Eversman, Kizenberger, Larry Montanez)

juster. If there’s still dissent, the judge will appoint an umpire to make the call. This prevents shops from needing to go to court and saves those expenses. An added benefit is that these situations can be useful for their precedential value. Eversman explained, “If you have positive umpire decisions that your customer has won, you can use those in later umpire scenarios. But you can also use those to submit to whatever respective DOI in your state to demonstrate this is an ongoing pattern or practice of this particular insurance company, [and] that they force their customers to go to these extreme lengths to get what they were entitled to under the insurance policy. So that could be an added advantage of going through the whole ugly process.” The RTA was started by the DOIs because they were tired of insurer/insured disputes over claim valuations. They created a mini-arbitration process to resolve issues without the court’s involvement, Eversman explained. “Some courts look at the RTA clause and want to know you made an attempt to resolve the conflict before you came to them, so always be in the position where you can assure the judge that you came to court as a last

MAY 2018 AUTOBODY NEWS / autobodynews.com

successfully recover legal fees on a shortpay lawsuit. However, Montanez noted, “It’s not always about winning financially.

Sometimes, it’s about proving a point to the insurance companies and setting a precedent so they don’t want to fight with you. You’re not winning THAT case; you’re winning every one after it.” Eversman agreed. “Through multiple RTAs, you can establish your labor rate,” she said. “You get into something we call issue preclusion, which just says ‘We’ve already dealt with this exact issue, and you don’t get to bring it up and fight me on it every single time.’ That can be very helpful in court when you have that precedent, even if it’s just in small claims. This issue has been repeatedly decided and shouldn’t have to be continuously litigated just because the insurance company wants to argue about it over and over again.” The panelists discussed how liability for a proper repair falls solely on the shop and, in some cases, the technician. There are situations where it’s necessary to total a car because they’re meant to save people, but See Take Back Business, Page 69

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2 Great Danes Reign at Top Dog Garage

Shelly and Rod Cotton, the owners of Top Dog Garage in Halendale, CA, (also known as Silver Lakes) have two Great Danes—Hercules (6.5 years old) and Scarlett (3.5 years old)—that are well-known for running their shop.

an NBA center (7 ft. 2 in. when standing on his back paws), but he is starting to slow down. Now, his #1 job is taking long naps, although he still maintains his I-Canine certification. Scarlett has quickly exhibited some amazing abilities to connect with customers and many people ask about Scarlett before they inquire about their vehicles. “’Where is Scarlett?’ they ask,” Shelly Cotton said. “From the beginning, I could see that she loved meeting the customers and our crew

Continued from Page 52

people and work with our DRPs.” Already, Scarlett has impacted the lives of many customers, including a young child who was frightened by dogs for years.

Even working dogs are entitled to two 15-minute bone breaks

Scarlett greets customers at Top Dog Garage in Halendale, CA

Doing primarily collision repair and some restoration work on classic cars in a little town with a population of fewer than 6,000, Top Dog Garage gets 5-bark reviews from the locals for its doggone good work. When the shop opened in 2012, Hercules was there to help wherever he could. Now, however, Scarlett is the lead dog working with customers and chasing away some insurance adjusters if needed. Hercules could be

Hercules helped to open the shop six years ago, and now he’s semi-retired. (Pictured with Co-owner Rod Cotton)

loves her too. I think she could be a great therapy dog, so we’re thinking of maybe getting her certified to help

“When this little boy came into the shop, you could see he was reluctant to greet Scarlett. But she slowly walked toward him, and it was so touching to see the transformation,” Cotton said. “She did her natural thing and as a result, this little boy is now okay with dogs. Her presence here is so calming and people pick up on the vibes. While some customers wait for their cars, Scarlett will jump up on the couch right next to them and explain things like the difference between solvent and waterborne paint and why we try to use O.E. parts whenever we can.”

Estimating Tool

once you use the system a few times, you can pick it up [and] people get better at taking good photos quickly,” he said. “It saves us time and money and assists us with every aspect of each repair. The other ways that were available to us before we developed this tool weren’t working. Highlighting the damage with markers, stickers and magnets was problematic at times. We also needed a clean and dry surface, requiring prep time. In addition, we are often outside doing estimates in inclement weather, which was also a problem when we were using those other methods.” Now, developing software to accompany his wand system, Forkuo is excited about the future of his company and the viability of his secondnewest baby. “It’s all about education through communication and making processes easier as a result,” he said. “A lot of shops need this product, but they don’t know it yet. Once they use the wands in action, they’re sold.”

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59


CAWA Asks AZ to Educate Public on Vehicle Warranty Rights

After CAWA Legislative Advocate Stuart Goodman met with the Attorney General’s Office to discuss the importance of alerting consumers of their rights under the Magnusson-Moss Warranty Act (MMWA), the Office amended its website to include information on the MMWA. See this link to view the information: https://www.azag .gov/consumer/cars. “This action on the part of Arizona’s Attorney General is in the consuming public’s interests and sends the message that they have the right to choose where they have their vehicle serviced and repaired even while it’s on the manufacturers’ warranty,” commented Rodney Pierini, CAWA President & CEO. Contact Jennifer Zins, CAWA Director of Government Affairs, to be informed because it could mean more parts sold and services performed in the aftermarket when the vehicle is still under the manufacturers’ warranty. She can be reached at Jennifer@perrycom.com or 916-871-0603. Continued from Page 4

Self-Driving Car

cial treatment? Today, police cars, ambulances and buses sometimes get special treatment. But these narrow exceptions aside, our roads are managed without prioritization. Firstcome, first-served is the default. In the future, however, we will be able to make finer discriminations about the identities, destinations and activities of individual passengers. Armed with this information, would you place some folks in the fast lane and stick others in slower ones? Perhaps a woman on her way to a business meeting should get priority over a woman who is attending her son’s music recital. Or should it be the other way around? The decisions don’t end there. Suppose only one of the drivers is going to make her event on time and the other will arrive too late even if she speeds. Should the smart traffic management system determine who gets to go and inform the other person to stay home? Over time, these sorts of decisions can be 60

1936 Ford Donated to TX Auto Collision and Management Technology Program

didn’t, he would just stare at it waiting to work on it again,” Gill said. After Charles Gill passed away in December 2017, Ms. Gill debated selling the vehicle. When she did not receive a quality offer, she elected to celebrate her husband’s life by to donating it to TSTC. “I prayed about it and talked to friends and decided that it was best to donate it to the folks at TSTC so the students could experience it and let them learn and get joy out of it like he did,” Ms. Gill said. TSTC’s Auto Collision and Management Technology program was honored and excited to receive the Texas State Technical College in Waco’s Auto Collision gift, and will begin restorand Management Technology program recently received ing the vehicle this fall. a 1936 Ford Tudor Sedan as a donation “I think this will make an excellent recruitment Marye Gill donated her late tool and showpiece for the departhusband’s favorite project of over ment and the school. We will have 25 years to TSTC in hopes of shar- students do all the work with the ing the same joy it brought to her help of instructors, but it will be all husband. the students,” said Clint Campbell, “He worked on the car whenever the program’s statewide chair. he had the money to, and when he The restoration will take sev-

Texas State Technical College’s Auto Collision and Management Technology program in Waco recently received a 1936 Ford Tudor Sedan as a donation from the Gill family of Lott.

expected to occur frequently. Traffic management is a form of social planning. Decisions that get made in any single instance of solving the trolley problem, or any of the other scenarios we’ve noted, reflect broader governing principles and ethical logics embedded in technology. These decisions aggregate and over time become social patterns. So, don’t be fooled when engineers hide behind technical efficiency and proclaim to be free from moral decisions. “I’m just an engineer” isn’t an acceptable response to ethical questions. When engineered systems allocate life, death and everything in between, the stakes are inevitably moral. Brett M. Frischmann is a Charles Widger Endowed University professor in Law, Business and Economics at Villanova University, and Evan Selinger is a professor of philosophy at Rochester Institute of Technology. They are co-authors of Re-Engineering Humanity, Cambridge University Press: forthcoming in April 2018. We thank Motherboard for reprint permission.

MAY 2018 AUTOBODY NEWS / autobodynews.com

Continued from Page 44

Chris Harsh

cils to create images, but quickly gravitated to paint. “I reached the point where I thought buying a set of oil paints or acrylics and a bunch of canvases might be my next move,” he said. “But then I thought, ‘Why don’t I just use the same paint I use at my job every day?’ So I started working with Sikkens Autowave, one of our waterborne products, and I loved how it worked. Then I discovered that I needed something to paint on, and for whatever reason, I started doing it on paint lids. I was around all of these paint cans, so why not put these lids to use? That’s how it began, and since then I’ve painted more than 400 images using automotive paint on paint lids.” After a while, Harsh’s art gained some local recognition, which fueled him to do even more of it, he said. “I have been a skateboarder my entire life, so one day I was at a local skate park and I ran into Steve Ca-

eral years to allow multiple students access and will then be used as a showcase piece and potentially as a fundraiser for the technical program. “My husband and I, and our three sons, are all college graduates, so we appreciate programs like TSTC that aren’t the four-year university that still give an opportunity to change someone’s life and offer a higher education,” Ms. Gill said. TSTC’s Auto Collision and Management Technology program provides hands-on experience to prepare students for careers in auto body repair and related work fields.

For more information about Texas State Technical College, go to tstc .edu.

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ballero, a pro skater,” he said. “We started talking and I showed him some of my work, and he liked it. He then referred me to some of his friends and they liked it too, so they invited me to display my artwork at the Ventura Nationals, an annual car show. They gave me a booth and I sold a lot of art that day, including some art I created right on the spot. It was great to see that people wanted to purchase my stuff, and that inspired me to keep going.” Since then, Harsh’s art has appeared in art shows and other events. Many people have his images on their walls, but he still wants it to be a passion as opposed to a profession, he said. “I do it for the love of it, so I don’t ever want it to be like painting those camper shells,” he said. “I want to work on it at my pace and keep it a hobby, so that I won’t lose that great feeling every time I create a new piece.”

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61


Tesla Says Autopilot Was Engaged During Model X Fatal Crash by Simon Alvarez, Teslarati

Tesla recently released an update confirming that Autopilot was activated on the ill-fated Model X when the SUV crashed into a concrete barrier in March near Mountain View, CA. According to the company’s update, the Model X’s Autopilot was engaged with the car’s adaptive cruise control set to minimum in the moments leading up to the crash. Tesla also noted that the Model X’s driver received several visual and

The aftermath of a fatal Tesla Model X accident. Credit: ABC News Radio/Twitter

one audible hands-on warning earlier on in the drive. The driver’s hands were not detected on the steering wheel for six seconds before the accident occurred as well. Ultimately, Tesla stated that the driver of the ill-fated Model X had about five seconds and 150 meters of unobstructed view of the concrete divider before the accident took place. Logs from the electric SUV, however, revealed that no action from the driver was taken. Tesla also highlighted that the

absence of a crash attenuator—a highway safety device designed to absorb the impact of a collision— was a key reason why the fatal Model X crash was so severe. Tesla noted that it has “never seen this level of damage to a Model X in any other crash.” As Teslarati noted in a previous report, the crash attenuator, better known as a crash cushion, was destroyed in a vehicular accident 11 days before the fatal Model X crash. This is in line with an image that Tesla provided on its first blog post about the incident, when the company showed a picture of the damaged crash cushion a day before the Model X’s collision. Local news agency ABC7 News was able to get in touch with the driver of the vehicle that collided with the crash cushion 11 days before the Tesla accident. According to the news agency, the previous crash involved James Barboza, who was driving a 2010 Toyota Prius at 70 mph. Barboza walked away from the crash with lacerations on his face and complaints of pain all over his body. The Toyota Prius driver was eventually arrested for driving under the influence. In a statement to ABC7, Steven Lawrence, a lawyer who specializes in highway safety, stated that the crash cushion, which could have saved the Model X driver’s life, should have been repaired long be-

Access Insurance Company Ordered Into Liquidation by Katherine Coig, glassBYTEs.com

A Texas district court judge has issued an order of liquidation of Access Insurance Company, an auto insurer incorporated in Texas but headquartered in Atlanta, after the Texas Insurance Department found the insurer unable to pay off its debts. The company, which was founded in 1994, has license to do business in 22 states, including California, Pennsylvania and South Carolina. According to the California In62

surance Department, the insurer’s unaudited 2017 preliminary statutory income statement reflected a negative $27.6 million policyholder surplus as of Dec. 31, 2017, and its unaudited 2018 preliminary statutory income statement reported that its policyholder surplus was a negative $29 million as of Jan. 31, 2018. Additionally, the insurer neglected to file its required yearly statutory statement. Only two states out of the 22 have reported on how many policyholders in their respective states

MAY 2018 AUTOBODY NEWS / autobodynews.com

fore the accident. According to Lawrence, 11 days is far too long to fix a crash cushion, especially in areas where the Model X accident took place.

The aftermath of a fatal Tesla Model X accident. Credit: ABC News Radio/Twitter

“Some states have as short as a three-day repair time for high traffic locations. And if you look at the material in California, this thing should have been repaired within a week. Again, there are a lot of questions about what happened and what went wrong, but it should have been repaired in under 11 days,” Lawrence said. On March 29, CalTrans issued a statement to the local news agency addressing the delay in its repair of the road safety device. While CalTrans admitted that the crash cushion should have been repaired within seven days after the 2010 Prius collided with the crash attenuator, the agency noted that storms in the area delayed the repair. “Once our maintenance team has been notified, the department’s goal is to repair or replace damaged guardrail or crash attenuators within seven days or five business days, de-

will be affected. Pennsylvania Insurance Department released a statement citing the insurer has 42,785 policies in the states. South Carolina Department of Insurance director Ray Farmer said the insurer has approximately 15,500 private passenger auto insurance policies, in a statement from the state’s insurance department. Access policyholders had until April 12 to find new coverage. We thank glassBYTEs.com for reprint permission.

pending on weather. These are guidelines that our maintenance staff follows. “However, as in this case, storms can delay the fix. In this incident, as soon as maintenance was aware of the damaged attenuator, efforts were made to place cones or safety barricades at the site, and the replacement work was scheduled.” As noted in a previous report, the Tesla Model X has a 5-star safety rating from the National Highway Traffic Safety Administration (NHTSA) because of its safety features, such as its 12-airbag system and its huge crumple zone. Roughly 85,000 successful autopilot trips have been done by Tesla owners in the same stretch of road as the ill-fated Model X since the driver-assist feature was introduced in 2015, with around 200 trips being conducted every day. We thank Teslarati for reprint permission.

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63


Robot Cars: Safety and Liability

tems can be easily tricked or hacked. Virtually every automaker has The robots are coming—robotic cars, embarked on some sort of authat is. Are they safe? Will they be an tonomous driving program, scrambling to resolve technological issues economic boon or bust? According to the National High- to get to market. To date, little has way Traffic Safety Administration, in been done on the regulatory side to 2015, the last year for which it had ensure that these vehicles will not final statistics, car accidents were the crash when, say, a sensor fails or a dense fog rolls in. Some leading cause of death in the players in the car industry U.S. for 16- to 23-year-olds. have lobbied intensely to That year, 2.44 million peoavoid responsibility for ple were injured in car their vehicles on the road, crashes. In nearly one-third seemingly hiding defects in of all motor vehicle fatal actheir system by failing to cidents, alcohol played a comply with reporting rerole. Automated driving veAdam Blank quirements and fighting efhicles are being pitched to the public, legislators and regulators forts that would allow consumers to by industry groups on the premise, but hold them accountable for collisions not yet on the promise, that if we take they cause. Legislation must be crafted to away the drunk, drowsy and distracted human element and shift to automated allow these manufacturers to bring automated cars to the masses while driving, crashes will be eliminated. Vehicles equipped with auto- ensuring that manufacturers are remated driving systems will come in sponsible when their vehicles fail. many varieties. Some will need a Safety depends on accountability. If human driver, either to get to where manufacturers are allowed to evade the automation can take over or as a accountability, they have incentive to fallback in case the automated system create a potentially dangerous vehifails. Others are being designed never cle. This is a fraught time for the auto to allow human intervention by phys- industry—fortunes will be made and ically removing the steering wheel lost in automated driving, and withand pedals. However, all of these ve- out proper rules the public may be the hicles will share one defining charac- greatest victim. But, if we can get the teristic—when the automated driving rules right, this technology has the system is engaged, any human being potential to save millions of lives. Even if robotic cars can be in the vehicle is no longer in control. Removing humans from the wheel made safe, the question of their ecodoes not necessarily guarantee safety. nomic impact still looms. Business Today, we already see stories about and government must consider the the trouble automated vehicles have impact these cars will likely have on with bridges, turning left, bicycles or them, their employees and their conanimals in the road. Their vision sys- stituents. If, as anticipated, this techby Adam Blank, Westfair Online

Continued from Page 28

Duke, Dunk, DuPont

refinishers with its Duco brand, followed by Dulux alkyd resin enamel and Lucite Acrylic lacquer. In early 1935, a positive public relations campaign was launched. One of the main initiatives was an entertainment program developed and sponsored by DuPont called Cavalcade of America. It started as a radio show and eventually went to television in 1952, lasting until 1957. The show 64

advertised DuPont non-explosive, consumer-oriented products and made a point to promote ingenuity and patriotism. Out of this PR campaign came the now-familiar motto, “Better Things for Better Living— Through Chemistry.” But despite all the positive messages and slogans, perhaps nothing did more to rejuvenate DuPont’s image than the development of nylon hosiery for women.

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MAY 2018 AUTOBODY NEWS / autobodynews.com

nology can avoid all car crashes, it likely will alter insurance—potentially changing the profit structure of insurance companies and putting a dent into the business of auto body shops, insurance adjusters, medical professionals and attorneys. Theoretically, these vehicles will not violate traffic safety laws, so the $3 billion to $6 billion of revenue that governments receive annually from traffic tickets will evaporate and the police officers who write tickets will no longer be necessary. About 300,000 taxi drivers and upwards of 2 million truck drivers could be made jobless. Driverless cars coupled with ride-sharing systems, such as Uber and Lyft, may mean fewer privately owned vehicles and more fleets, hurting local car dealers and lessening demand for urban parking—a substantial revenue stream for municipalities and private businesses who have invested in costly parking structures. Automated driving vehicles also should have many positive economic benefits. Traffic congestion should

lessen substantially; this, coupled with a decline in travel costs, should make it easier for employers to hire employees from a wider geographic area. Shipping costs should decrease with the elimination of human drivers and the ability of robotic trucks to communicate with one another and travel in a “train” formation. An entirely new market will emerge for technology, entertainment and data companies as they compete to improve the car-riding experience by harvesting data on occupants and advertising to them, providing an “office” or “living room” on the road. The robots are coming. Whether they are safe or not, and how we maximize their economic potential, remains to be seen. Adam Blank serves on the State of Connecticut Task Force to Study Fully Autonomous Vehicles and is an attorney at Wofsey, Rosen, Kweskin & Kuriansky, where he practices in the areas of land use and personal injury law.

We thank Westfair Online for reprint permission.

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Arizona Suspends Uber’s Driverless Car Tests by Mark Huffman, Consumer Affairs

Arizona Governor Doug Ducey has ordered an indefinite suspension of Uber’s public road testing of driverless cars. The decision comes in the wake of a fatal accident involving one of the cars. Uber voluntarily suspended its tests a day after the accident, but the ride-sharing company will not be able to resume its tests until Ducey lifts his suspension. A 49-year-old female pedestrian was struck and killed as she pushed her bicycle across a four-lane highway at night in Tempe, AZ. Tempe Police Chief Sylvia Moir said her initial investigation, based on the Uber car’s video, showed the woman abruptly step in front of the autonomous vehicle. A different view Apparently, Ducey had a decidedly different impression after viewing the video. In a letter to Uber, released to the media, the governor called the accident “an unquestionable failure” on the part of the technology. “In the best interests of the people of my state, I have directed the

Arizona Department of Transportation to suspend Uber’s ability to test and operate autonomous vehicles on Arizona’s public roadways,” Ducey wrote.

Credit: JasonDoiy, Getty Images

Arizona initially welcomed Uber with open arms in 2016 when the company ended road tests in California because of a disagreement over regulations. Uber issued a statement March 26 saying it hoped to work with the governor’s office to clear up any issues. Consumers aren’t asking for selfdriving cars The automotive and technology industries have collaborated to push development of self-driving cars, despite public opinion surveys that consis-

tently show consumers aren’t asking for them. In fact, many surveys suggest consumers have qualms about their safety. In February, a survey conducted by Solace found nearly 60 percent of consumers who drive “connected cars” featuring smart technology said they wouldn’t buy a self-driving car, even if money weren’t an object (these cars cost around $250,000). Consumer and highway safety groups charge autonomous vehicles are being rushed onto America’s roads without adequate testing. In June 2017, Advocates for Highway and Auto Safety issued a statement urging lawmakers to slow down. “As the proverbial way is paved for AV (autonomous vehicles), it is critical to ensure public safety and that industry not be given free rein on our roads and highways without a system of basic safeguards and oversight in place,” the group said in a statement. “Also, states should not be preempted from taking action to protect their motorists in the absence of federal oversight and regulation.”

We thank Consumer Affairs for reprint permission.

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ASA ‘Not-Included Operations’ Update

The Automotive Service Association (ASA) has released the latest updates to its “Not-Included Operations” charts. The resources are available for free to the industry and are designed to ensure collision repairers consider all of the possible operations when they write an estimate. These new resources, “Reference Chart of Not-Included Operations When Installing New Replacement Parts” and “Reference Chart of Not-Included Operations When Installing LKQ Parts” are available on the ASA website and serve as a quick summary of general, not-included operations. They should be used in addition to procedure pages supplied by individual information providers.“...I find that one of the best tools for me to improve the quality of my estimates are the ASA Not Included Charts for New and Recycled Parts,” said Mike Anderson, AAM, of Collision Advice. “In addition, I find the ASA Not-Included charts to be a great tool for training entry-level estimators.”

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Affectiva Launches Emotion Tracking AI for Connected Car Drivers by Sooraj Shah, Internet of Business

Affectiva, an MIT Media Lab startup, has launched the Automotive AI service. The service enables the manufacturers of connected vehicles and in-car systems to track drivers’ and passengers’ emotional responses. The system is designed to boost road safety. Affectiva said that its AI model offers a deep understanding of driver and occupant emotions, cognitive states and reactions to the driving experience, including joy, surprise, fear and anger. More significantly for road safety, it can also identify drowsiness, yawning and other signs of fatigue. It does this by measuring facial expressions and voice tones in real time. The system tracks heads, faces, emotions and eye movements to understand the states of mind of both drivers and passengers. Affectiva said it is working with the likes of Porsche, Daimler, BMW, robotaxi startup Renovo and vehicle safety system providers such as Autoliv, as well as hardware providers NVIDIA and Intel. This suggests that new connected cars will come

Shelly Bickett Receives MIW Award

Fix Auto USA is excited that cofounder and franchise partner Shelly Bickett has been recognized as one of the Women’s Industry Network’s (WIN) Most Influential Women of 2018. She will formally accept her award during the 2018 WIN Educational Conference gala in Indianapolis in May. In addition to being actively involved in the development and growth of Fix Auto USA, Shelly’s decorated career includes the management of an eight-location body shop organization in Southern California, the birth of Collision Career Institute, participation in various corporate boards, leadership roles within industry associations, numerous speaking engagements at industry events and active involvement with the National Charity League. “It’s an absolute honor to be recognized as one of the most influential women in our industry, alongside my colleagues Mary, Marie and Petra,” Bickett stated. 66

equipped with the AI in the near future. Affectiva’s aim is to combine its software with other onboard systems to make for a more connected drive. For example, the AI could trigger au-

Credit: JasonDoiy - Getty Images

diovisual alerts or seat belt vibrations to ensure that the driver remains engaged, or intervene in dangerous driving situations that may stem from fatigue or distractions. By sensing fatigue, anger or frustration, the AI can determine if an autonomous car should take control from its driver—and when it is safe to pass back that control. The software could also call upon a virtual assistant to guide drivers through alternative “road ragefree” routes if they seem angry, or play a soothing playlist to calm them down.

The system isn’t just focused on drivers: passengers are equally important, said Affectiva. Passenger reactions could be used to personalize music or video playlists, or adjust heating and lighting, while the autonomous driving style could be altered if passengers seem anxious or uncomfortable. Affectiva used a database of 6 million faces from 87 countries to build its AI model. The startup has also developed a voice analysis tool for the makers of AI assistants and social robots. Internet of Business says: This innovative mix of AI, incar systems, connected cars and autonomy holds great promise for the future of safer motoring for all—if these systems are designed and deployed sensitively. Too intrusive or insistent a presence in cars may trigger some of the problems that AI is designed to solve. At heart, both driving and personal transport are about people; too machine-like an experience, and many car owners or users may begin to feel that the humanity is being taken out of the picture. We thank Internet of Business for reprint permission

FedEx Orders 20 Tesla Semi Electric Trucks

FedEx Corp. recently announced it has placed a reservation for 20 Tesla Semi trucks. The fully electric trucks, which are scheduled to begin production in 2019, will be operated by FedEx Freight, its less-than-truckload unit. “FedEx has a long history of innovation and incorporating sustainability efforts throughout its global network,” said FedEx Freight President and CEO Mike Ducker. “Our investment in these trucks is part of our commitment to improving road safety while also reducing our environmental impact.” Tesla said its new big rig will deliver a far better experience for truck drivers while increasing safety and significantly reducing the cost of cargo transport. Its advanced technologies, such as surround cameras and onboard sensors, help aid object detection while also enabling Enhanced Autopilot for automatic emergency braking, automatic lane keeping and lane departure warning. The company also touts electric energy cost savings that are half that of diesel.

WAC Signs Association Paperwork, Elects Officers at Recent Meeting by Chasidy Rae Sisk

During the March 13 meeting of Women in Automotive and Collision (WAC), the association signed the documents required to make the group official and elected officers. According to WAC President Shelly Jones, “The main purpose of this meeting was to elect officers, finalize the organization’s structure, discuss marketing/branding and vote on membership dues. I’m very excited to see how much trouble we can stir up on behalf of the automotive industry. And by trouble, I mean career awareness!” In addition to electing Jones as WAC’s President, members chose Jess Crump as Vice President, Peggy Vorwald as Secretary and Julie Hemann as Treasurer. Tricia Belz will fill the role of Social Media Manager, while Suzie Collum will be WAC’s Marketing Coordinator. WAC’s meeting began by thanking everyone who has supported them, talking about their rules of engagement and recapping their previous meetings. The group revised its mission statement to be

MAY 2018 AUTOBODY NEWS / autobodynews.com

simpler and less limiting: “Passionate women in the automotive industry collaborating and leading members to create industry career awareness.” Jones said, “Everyone participated by sharing ideas, asking questions and electing officers. I was so

WAC members gathered on March 13 to sign official association documents, elect members and much more

impressed with the group. I absolutely love that we have dialogue and share ideas like we have known each other for years. Some of us met just that night, and others have met throughout the group’s creation. We got a lot accomplished.” After creating bylaws and setting up a bank account, WAC agreed on a membership fee and discussed branding and marketing initiatives. Jones explained, “During the meeting, we discussed having mem-

bership dues of $100/year. I didn’t know what to expect, but it was unanimous that we should have dues. Most wrote a check or paid cash on the spot. This money will give WAC the opportunity to promote industry career awareness at April events. We will get our swag, collateral, and table cloth made. Members will buy WAC shirts to promote the group. Without membership dues, we would have to wait for the execution of our fundraiser over the summer.” Two new faces joined WAC at its March 13 meeting and joined the group. Jones noted, “This group is growing. We will keep reminding people that it is never too late to join. Too many people fall into this industry vs. seeking it out as a student— including myself, my sister and a lot of women in our group! You should become one of the rock stars that are going to have fun changing that.” WAC’s next meeting will be held on April 17 at 5:30 p.m. at Gateway Motorsports. Dinner will be sponsored by ABRA.

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Uber’s Former Self-Driving Chief Still Believes in Dream of Safer Roads by Aaron Aupperlee, TribLive.com

The former head of Uber’s self-driving car operations urged the entire industry to keep working through what he called a “tough moment” to achieve safer streets and roads for all. John Bares, who left Uber in August and returned to Carnegie Robotics, said he has not lost faith in Uber or the promise of autonomous vehicles. “The company and the dream of the employees is a mode of transportation that is safer and more efficient for everyone, and clearly events like this are a huge step back, but the dream is still there,” Bares said. “And we’re going to get there.” Elaine Herzberg was killed March 18 when a self-driving Uber crashed into her as she walked her bike across a street in Tempe, AZ. Herzberg, 49, is believed to be the first pedestrian killed by a self-driving car. Uber suspended its testing of self-driving cars in Tempe, Pittsburgh, San Francisco and Toronto following the crash. The fleets remained grounded March 26, more than a week later, as the investigation into the crash continued. Tempe police and officials from the National Highway Traffic Safety Administration and the National Transportation Safety Board are investigating. Uber has said it is cooperating with the investigation. The crash threw the self-driving car industry into a tailspin with critics asking whether development of autonomous vehicles is worth the risk it poses to pedestrians, cyclists and other motorists as these cars are tested on city streets. Bares said the crash caused pain and difficult conversations not just at Uber, but across

the many companies working in the field. More than 40,000 people died in traffic crashes in 2017. It’s a statistic that nearly anyone involved in selfdriving cars knows by heart and is working to lower. “It’s going to be tough on people emotionally,” Bares said. “As an industry, we have to pull through.

ued testing, a Ford spokesman said. Waymo CEO John Krafcik, talking about the Tempe crash at the National Automobile Dealers Association in Las Vegas, said its self-driving car could have “handled that situation,” according to Forbes. Waymo, Google’s self-driving car company, is planning to begin an autonomous car service with no driver behind the wheel in the Phoenix area this year. Raj Rajkumar, a longtime autonomous vehicles researcher at Carnegie Mellon University, told USA Today that the Uber’s lidar and sensors should have picked up the woman long before the car hit her. “Clearly there’s a problem,” Rajkumar said. “Maybe it’s John Bares, director of the new Uber Advanced Technologies the sensors not working corCenter in Lawrenceville, speaks during a panel discussion of the closing plenary June 3, 2015, at the ITS (Intelligent rectly or the hardware that Transportation Systems) America’s 25th Annual Meeting processes it, or the software.” and Expo at the David Lawrence Convention Center. In an email to Bloomberg, Credit: James Knox, Trib Total Media Marta Thoma Hall, the For the longer good of humanity, we president of Velodyne, which makes the lidar sensors used by Uber, wrote have to pull through.” Toyota announced the week of the crash “baffled” the company. “Certainly, our lidar is capable March 18 that it was halting its selfdriving operations in the wake of the of clearly imaging Elaine and her bicrash. Boston’s mayor last year asked cycle in this situation. However, our nuTonomy and Optimus Ride, two lidar doesn’t make the decision to put self-driving car companies testing in on the brakes or get out of her way,” the city, to pause testing. Hyundai, Hall said. The New York Times reported which partnered with Aurora Innovation this year to develop self-driving that Uber’s tests in Arizona were cars, said it is cautious about mass struggling and the team was scramproducing autonomous vehicles, ac- bling to prepare for an upcoming visit from new CEO Dara Khoscording to Reuters. Aptiv, which bought nuTonomy rowshahi, who at first wanted to last year and has a large engineering shutter the self-driving car project. center in Pittsburgh where it is devel- The safety driver inside an Uber had oping self-driving technology, did to take control more often than the not stop tests in Las Vegas and else- company would like. Bares said he was not concerned where, a company spokesman said. Argo AI, which is testing cars in about Uber’s self-driving program Pittsburgh for Ford, has also contin- when he left.

Toyota Suspends Self-Driving Test Program by Brandy Betz, Seeking Alpha

Toyota Motor Corp. has halted its Chauffeur self-driving system test program after the fatal pedestrian accident involving an Uber autonomous vehicle. Toyota’s statement to Bloomberg: “Because we feel the incident may 68

have an emotional effect on our test drivers, we have decided to temporarily pause our Chauffeur mode testing on public roads.” Toyota was doing on-road testing in Michigan and California and, before the accident, was discussing plans to team with Uber on autonomous driving.

MAY 2018 AUTOBODY NEWS / autobodynews.com

Toyota shares are up 1 percent to $129.12.

We thank Seeking Alpha for reprint permission.

www.autobodynews.com

Uber lured Bares away from Carnegie Robotics, a company he helped found, to start its Advanced Technologies Group. Improving safety and saving lives has been at the core of Bares’ nearly 40 years of work in robotics. In the early 1980s, Bares worked on robots that went into Three Mile Island Nuclear Generating Station after its partial meltdown. Carnegie Robotics designed robots to detect land mines and improvised explosive devices. At Uber, Bares wanted to prevent traffic deaths and injuries. “Can we make our roads safer?” Bares asked in a 2016 interview. “That’s the thing that tugs me, and I think we can do that over time.” Bares left Uber in August and returned to Carnegie Robotics. He said he was thrilled with his time at Uber. He said Uber’s operation grew to the point where he wanted to return to the small company he helped start.

We thank TribLive.com for reprint permission.

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Continued from Page 58

NORTHEAST Panel

they’ve been damaged to the point that that’s no longer possible. Montanez stressed, “Keep in mind there’s only one way to repair a vehicle. ‘Recommended by manufacturer’ means you have to do it their way because they’ve invested to ensure their way means safety. The insurance company has no say in the matter, and no one cares about your opinion either.” “Vehicles are designed to be safe, and as professional repairers, that’s your fundamental task,” Eversman said. Eversman discouraged attendees from taking a hold harmless or indemnification agreement, explaining that they allow a shop to sue the assignee if the shop is sued. “It basically means, ‘I know this is the wrong way to repair the vehicle, but I’ll do it anyway if you indemnify,’” she said. Montanez agreed. “Never take a hold harmless,” he said. “It’s an issue in court because

you’re the professional and should have done it right.” “If it’s a safety issue, there’s no question that you shouldn’t do it, but in cosmetic cases, such as painting with a bad color, you could possibly use a hold harmless,” Eversman added. “However, both the customer and the insurance company have to sign the hold harmless, and the insurer will almost never agree to that.” Eversman and Montanez returned to the topic of total losses, pointing out that the customer could be prevented from transferring ownership until the shop is paid in full due to the signed authorization to repair. Therefore, if the insurance company tries to avoid paying for the repairs performed before deeming the vehicle a total loss, the consumer needs to file a complaint with the DOI. Eversman and Montanez answered a few questions from the audience as their time concluded.

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May 2018 West Edition  
May 2018 West Edition