July 2022 West Edition by Autobody News

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GM’s Cruise Secures First Permit to Charge for Self-Driving Rides in California by Joey Klender, Teslarati

General Motors’ Cruise became the first autonomous driving program to secure a permit to charge people to ride in a self-driving car after numerous objections from city officials in San Francisco. Cruise won the approval with a unanimous 4-0 vote by the California Public Utilities Commission late June 2, a report from Reuters said. San Francisco is a hotbed for

self-driving test vehicle programs, but Cruise became the first to secure the permit. Cruise will launch paid services within the next few weeks, it said. Its fleet will be comprised of 30 driverless Chevrolet Bolt vehicles. Cruise autonomous vehicles use 40+ sensors to provide the cars with a 360-degree view. It can also map the location of surrounding objects within centimeters, the company said on See GM’s Cruise, Page 17

New-Vehicle Prices Flirt with Record High in May New-vehicle average transaction prices (ATPs) increased to $47,148 in May, according to new data released by Kelley Blue Book, a Cox Automotive company. Prices rose 1% ($472) month over month and remain elevated compared to one year ago, up 13.5% ($5,613) from May 2021. The average price paid for a new vehicle in the U.S. in May was the second-highest on record, behind only December 2021, when ATPs reached $47,202. New-vehicle inventory days’ supply stayed in the mid-30s in May—holding steady since

mid-January—while customer demand remained stable. These conditions enabled most dealers to continue selling inventory at or above the manufacturer’s suggested retail price (MSRP). The average price paid for

a new vehicle has been “over sticker” throughout 2022. In May, new vehicles from Honda, Land Rover and Mercedes-Benz See New-Vehicle Prices, Page 14

Vol. 40 / Issue 7 / July 2022

California Lawmakers Announce Budget Agreement, $10 Billion Taxpayer Rebate by Madison Hirneisen, The Center Square

California lawmakers want to send $10 billion in relief to California taxpayers and business owners using a portion of the state’s record budget, legislative leaders announced as part of their budget agreement June 1. The State Assembly and Senate leaders unveiled their proposed 2022-2023 state budget framework, coming just a few weeks after Gov. Gavin Newsom announced his revised budget in May. The governor and lawmakers have until June 15 to agree on a budget framework, which

would ultimately take effect on July 1. As Californians grapple with record-high gas prices and other cost increases tied to inflation, both Newsom and lawmakers have presented options to return money to taxpayers. The way they want to do it, however, differs significantly. Legislative leaders want to use $8 billion for a “Better for Families Relief Package,” which will provide $200 per taxpayer and dependent for joint filers making up to $250,000 and single filers making up See Budget Agreement, Page 12

Insurers Too Late for Subrogation in Auto Parts Price-Fixing Case, Court Rules by Jim Sams, Insurance Journal

Insurers waited too long to intervene in anti-trust litigation that brought settlements requiring dozens of auto parts manufacturers to pay a total of $1.2 billion to resolve price-fixing allegations, a panel of the U.S. 6th Circuit Court of Appeal ruled June 1. In a published decision, the appellate panel affirmed a U.S. District Court ruling that denied a motion to intervene filed by Financial Recovery Services on behalf of eight insurers that sought “equitable subrogation” for the payments it made to insureds for the total loss of their vehicles. FRS did not seek to intervene in the litigation until long after settlement negotiations were concluded and final-approval hearings were held in 41 coordinated cases. The 6th Circuit panel said in its opinion that allowing intervention would require the court to revisit issues that were settled while FRS “watched from the sidelines.” “Allowing FRS to claim subro-

gation rights after settlement would uproot earlier efforts to define classes, expend considerable resources to amend allocation plans and increase costs associated with the claims-administration process, thereby reducing the amount of settlement proceeds available,” the panel said in an opinion written by Justice Karen Nelson Moore. Attorneys representing consumers in 2012 filed anti-trust lawsuits against dozens of auto manufacturers. The Department of Justice launched an investigation into price-fixing allegations, resulting in guilty pleas by 26 manufacturers that paid millions in fines. The civil lawsuits were consolidated into a single case assigned to the U.S. District Court for Eastern Michigan in Detroit. The court approved four separate settlement agreements between the plaintiffs and 73 of the defendants from 2016 through November 2020. FRS, a third-party administrator for auto insurers, did not get See Price-Fixing Case, Page 17

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CONTENTS Automotive Service Councils of California Announces Corporate Partnership with ACAT Global �� 8 Autonomy’s EV Subscription Service Now Available in California’s High Desert �� 6 California Lawmakers Announce Budget Agreement, $10 Billion Taxpayer Rebate �� 1 Crash Champions Acquires Legendary Mike’s Auto Body in California’s Bay Area �� 10 Fix Auto Escondido Introduces Community to Opportunities in Collision Repair Industry �� 11 Former Tesla Worker Has 2 Weeks to Accept $15M Award for Racism at Fremont Factory �� 11 GM’s Cruise Secures First Permit to Charge for Self-Driving Rides in California �� 1

Customers in the Right Place at the

Anderson - 3 Phrases I’ve Heard with Potential Power in the Collision Repair Industry �� 28 Strandberg - How to Sell Your Automotive Distribution Business—An Insider’s Perspective �� 26 Yoswick - CIC Committees Tackle Ongoing Shortage of Collision Repair Technicians �� 30 Yoswick - What Role Should a Current Backlog of Work Play in Auto Body Shops’ DRP Decisions? �� 35

ltedesco@autobodynews.com

800-699-8251

Right Time �� 32 CIF to Hold Gala July 20 �� 44 Collision Repairers Actually Lament Lack of Insurance Adjusters in Shops �� 20 Cox Automotive Dealer Sentiment Index: Attention Turns from COVID-19 to Inflation, High Costs, Tight Inventory �� 4 CREF Honors I-CAR Committees �� 8 Ford EVs Post New Sales Record in May �� 45 Ford Recalls 2.9M Vehicles For Inability To Shift Into Gear, Risking Crash �� 16 Gas Prices Jump in Leaps and Bounds, Setting Another New Record �� 36 Global Finishing Solutions, 1Collision Partner �� 45 Insurers Too Late for Subrogation in Auto Parts Price-Fixing Case, Court Rules �� 1

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May Auto Sales Expected to Fall to Slowest Pace in 2022 �� 34 Mercury Adds Digital Claims Processing �� 16 NABC Announces Mitchell as Sponsor �� 14 New-Vehicle Prices Flirt with Record High in May �� 1 Pennies From $5: Gas Prices Continue Daily Record High Trend �� 28 Purty to Lead Global Workplace Safety �� 36 Total U.S. Automotive Aftermarket Sales Forecasted to Increase 8.5% in 2022 �� 42 Toyota Auto Body California Donates Nearly

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Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Stacey Phillips Advertising Sales: Joe Momber, Norman Morano, (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bryan Malinski Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Abby Andrews Accounting Manager: Heather Priddy Permissions Editor: Randi Scholtes Office Assistant: Dianne Pray

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. ©2022 Adamantine Media LLC.

American Icon Automotive Finishes �� 6

Kia Motors Wholesale Parts Dealers �� 40-41

Audi Wholesale Parts Dealers �� 35

Kia of Carson �� 36

Auto Data Labels �� 48

Kia of Irvine �� 16

AutoNation Infiniti Tustin �� 26

Larry H. Miller Chrysler-Jeep-Dodge-Ram �� 22

Axalta Coating Systems �� 2

Lithia Honda of Medford �� 20

BMW Wholesale Parts Dealers �� 44

LKQ Corporation �� 13

Car-O-Liner �� 9

Malco Products, SBC �� 11

Car Pros Kia �� 22

Mazda Wholesale Parts Dealers �� 42

Car Pros Kia Renton �� 26

Mercedes-Benz Wholesale Parts Dealers �� 42

Certified Automotive Parts Association �� 18

Michael Hohl Motor Company �� 14

Chase Chevrolet �� 8

MINI Wholesale Parts Dealers �� 44

Citrus Kia-Ford �� 8

MOPAR Wholesale Parts Dealers �� 29

Classifieds �� 46

Niello Audi �� 30

Colortone Automotive Paints �� 27

Nissan/Infiniti Wholesale Parts Dealers �� 43

Courtesy Chevrolet San Diego �� 37

Porsche Wholesale Parts Dealers �� 38

DCH Chrysler-Dodge-Jeep-Ram-Fiat �� 12

Reno Buick-GMC �� 28

Equalizer Auto Glass Tools �� 20

Roseville Kia �� 14

FH Dailey Chevrolet �� 34

Sandberg Volvo Cars �� 22

Ford Wholesale Parts Dealers �� 31

Santa Monica Audi �� 27

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

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Future Nissan of Roseville �� 30

SATA Dan-Am Company �� 5

After the Donation: Veteran’s Donated Car

Through CREF �� 46

Galpin Motors �� 33

Shoot Suit �� 17

Garden Grove Kia �� 16

Spanesi Americas �� 7

Enables Her to ‘Pay It Forward’ �� 18 ASE Agenda, Speakers Announced �� 46 Autel U.S. Enters EV Charging Industry �� 4 Auto Body Shop Veteran Says DRPs Can Be Profitable If Done Right �� 22 Automakers Report May Sales �� 42 Briones is Crash Champions’ Marketing Officer �� 12

Usage-Based Auto Insurance Takes Center Stage as Satisfaction Flatlines �� 39

Glenn E. Thomas Dodge-Chrysler-Jeep �� 10

Subaru Wholesale Parts Dealers �� 39

UTI Opening Campuses to High School

GM Wholesale Parts Dealers �� 47

Symach �� 6

Juniors Interested in Automotive

Honda-Acura Wholesale Parts Dealers ��24-25

The Bay Area Automotive Group �� 21

Technician Training �� 44

Hyundai Wholesale Parts Dealers �� 38

Volkswagen Pasadena �� 34

Industrial Finishes and Systems �� 19

Volkswagen Wholesale Parts Dealers �� 45

Kearny Mesa Subaru-Hyundai �� 23

Volvo Wholesale Parts Dealers �� 44

Kia Downtown Los Angeles �� 32

Wrenchers �� 15

WIN Names 2022-23 Officers, New Board Members �� 38

autobodynews.com / JULY 2022 AUTOBODY NEWS 3

Cox Automotive Dealer Sentiment Index: Attention Turns from COVID-19 to Inflation, High Costs, Tight Inventory U.S. automobile dealer sentiment in the second quarter of 2022 softened as U.S. auto dealers’ attention turned to inflation, high costs and tight inventory, marking the fourth straight quarter-over-quarter decline in market sentiment. The current market index peaked at 67 in Q2 2021 and has been trending downward since. Still, at 54, the current market index remains above the positive threshold of 50 in the Cox Automotive Dealer Sentiment Index (CADSI). The key drivers of sentiment saw disparate shifts in Q2. The three-month, forward-looking market outlook index sharply dropped from the previous quarter and, at 53, is well below the 63 recorded a year ago in Q2 2021. The economy index increased slightly in Q2 to 50, up from 49 in the prior quarter. With the index now at 50, dealers are right at the positive threshold in judging the economy as strong. “U.S. auto dealers are certainly feeling the pressure of inflation and tight inventory,” said Cox Automotive Chief Economist Jonathan Smoke. “Franchised dealers continue to be very profitable, but the steep drop in the market outlook index indicates dealers are less enthused about the future. While all dealers are impacted by higher costs of doing business, the profit story is also different for independent dealers, as used vehicles have started depreciating again.” The Q2 2022 CADSI research was in market from April 25 to May 9, when COVID cases had retreated from omicron-driven records and activity was normalizing compared to the situation in January. Inventory Continues to Impact Sales One worrisome sign in the latest CADSI report is the small improvement in the new-vehicle inventory mix index for franchised dealers. The index increased only two points from Q1 and remains historically low at 25, an eight-point year-overyear decrease. “Today’s market continues to be framed by constrained new-vehicle inventory,” added Smoke. “Low

new-vehicle inventory and the associated low level of incentives and lack of discounting have priced many would-be buyers out of the market and into the used-vehicle market. Others may be delaying purchases, waiting for supply to improve, but supply has yet to see much change.” On the used-vehicle side, the inventory index dropped in Q2 2022 to 35, one point lower than the previous quarter but up fourteen points year over year. The used-vehicle inventory mix index improved among franchised dealers versus independent dealers, showing a 5-point increase year over year in Q2 to 55. All index scores associated with inventory, however, remain below the 50 threshold, indicating dealers are still facing significant inventory challenges for both new and used vehicles. Consistent with last quarter, limited inventory ranks as the No. 1 factor holding back dealer business in Q2. While new-vehicle inventory remains tight, the view of new-vehicle sales improved, increasing from 50 to 52, meaning dealers are now more optimistic about new-vehicle sales. One year ago, the index score was 65, meaning significantly more dealers saw the market as good. The new-vehicle incentives index dropped by two points quarter over quarter to 21, the lowest level since the question was added to the CADSI in Q3 2019. On the other hand, the used-vehicle sales index fell five index points to 47. For franchised dealers, the used-vehicle sales index increased by one point for Q2, breaking a downward streak but is still below year-ago levels. For independent dealers, the index fell six points from the previous quarter to 42 and is down 14 points from a year ago. Overall, most dealers view used-vehicle sales as weak. Dealers Worried About the Economy and Costs In Q2 2022, the cost index—specifically the cost of running a dealership—was at the highest level since the survey began in 2017. After reaching a record low in Q2 2020 of 51 at the height of the pandemic, the cost

4 JULY 2022 AUTOBODY NEWS / autobodynews.com

index has been steadily increasing. Overall inflation in the U.S. economy is clearly contributing to this view. The economy is the second leading factor impacting dealer business at 46%, up from 37% in Q1, with market conditions, expenses and political climate following closely behind. Dealers are worried about inflation and the possibility of a recession along with lagging consumer confidence.

minor shifts in Q2, but three factors—economy, expenses and political climate—saw significant quarter-over-quarter increases. Limited inventory remains in the top spot. The economy rose to No. 2 ahead of market conditions. Expenses ranked fourth overall; political climate rounded out the top five factors. Notably, COVID-19 is no longer a top factor holding back business, falling to No. 7.

Profits Remain Strong for Franchised Dealers The overall profit index saw a small decline to 53, down from 54, but remains higher than at any point before the COVID-19 pandemic. The five highest profit index scores since 2017 have all been recorded in the past five quarters. The profit index also indicates franchised dealers believe profits are particularly strong, at 82, whereas more independent dealers now see profits as weak, with an index score of 44. Importantly, the cost index increased by 11 points in Q2 versus a year ago and reached a new record high of 76, suggesting the overall cost of running a dealership continues to grow. On the plus side, the price pressure index increased only slightly in Q2 to 41, up from 37 in Q1, but remains historically low, indicating fewer dealers feel pressure to lower their prices.

Cox Automotive Dealer Sentiment Index Methodology The Q2 2022 CADSI is based on 1,099 U.S. auto dealer respondents, comprising 568 franchised dealers and 531 independents. The survey was conducted from April 25 to May 9. Dealer responses were weighted by dealership type and sales volume to represent the national dealer population. For each aspect of the market surveyed, respondents are given an option related to strong/increasing, average/stable, or weak/decreasing, along with a “don’t know” opt-out. Indices are calculated by creating a mean score in which: Strong/increasing answers are assigned a value of 100. Average/stable answers are assigned a value of 50. Weak/declining selections are assigned a value of 0. Respondents who select “don’t know” at a particular question are removed from the related index calculation. The total metrics reported have a +/- 3.0% margin of error.

Business Impact of COVID-19 Drops from Top 5 The top five factors holding back the business across all dealers saw

Source: Cox Automotive

Autel U.S. Enters EV Charging Industry Autel U.S. announced its entry into the EV charging solutions provider industry with the release of its MaxiCharger Home and Commercial Level 2 AC chargers. These new chargers, available in 40 amp and 50 amp flexible charging configurations, are compatible with all plug-in electric vehicles and feature innovative software solutions that are the hallmark of all Autel products. MaxiCharger Home 40 amp

chargers are available as either an in-body holster or a separate holster, with either a NEMA 6-50 or a NEMA 14-50 plug. The MaxiCharger Home 50 amp is an in-body holster style and is ready for hard-wire installation. The MaxiCharger Commercial Level 2 AC charger offers 50 amp flexible charging. Visit www. autelenergy.us or contact an authorized Autel dealer for more information. Source: Autel

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Autonomy’s EV Subscription Service Now Available in California’s High Desert Autonomy, the electric vehicle subscription company that offers the cheapest, fastest and easiest way to get a Tesla Model 3, and soon other models and brands, is now available to consumers living in California’s High Desert communities, including Lancaster, Palmdale, Victorville, Adelanto, Apple Valley, Hesperia, Phelan and Barstow. Autonomy’s monthly subscription costs less than Tesla’s own leasing or financing plans. “With gas prices continuing to climb and putting a strain on households, there’s never been a more compelling time to get an electric vehicle,” said Scott Painter, founder and CEO of Autonomy. “Consumers are beginning to fully realize the benefits of driving an electric vehicle, and we’re excited to be offering a more affordable, flexible way of getting one.” Today, the High Desert region has more than 200 charging locations, with 13 Tesla Superchargers strategically placed along the I-15 and SR-14 highways, giving commuters—and those traveling to and from Las Vegas—plenty of options

for charging up. California already has the most charging stations in the country, accounting for about 30% of total charging stations/ports. And more are on the way. This fiscal year, California will receive $56 million as part of the federal infrastructure bill, the second-highest amount in the nation, behind only Texas.

According to CNBC and data provided by the U.S. Census Bureau, Palmdale commuters have the longest commute nationwide, with an average commute time of 85.4 minutes round trip. Like in Palmdale, many people who live in the High Desert have long commutes across the region or down California’s Cajon Pass to the Inland Empire, Orange County and Los Angeles. With Autonomy, commuters can ditch the

high-priced gas and contribute to a more green commute. “Consumers need more options when it comes to accessing an electric vehicle,” said Georg Bauer, co-founder and president of Autonomy. “Subscribing to a car today is what leasing was 40 years ago. Subscribing allows for month-to-month flexibility after an initial three-month holding period and no long-term debt. It’s an exciting time in the automotive industry, with more options for people than ever.” Autonomy’s expansion into the High Desert follows the announcements last month of the start of services in the Coachella Valley, the Inland Empire, Fresno and the surrounding cities, as well as in Sacramento, California’s Central Coast and Orange County. The company earlier this year launched services in Los Angeles and San Diego, and added the San Francisco Bay Area to its market coverage. Autonomy’s monthly payment covers the traditional costs of ownership, including annual registration and licensing fees, routine maintenance, roadside assistance and stan-

dard wear and tear on tires, which are all additional expenses with a traditional lease or loan. A payment dial allows customers to personalize their Model 3 and Model Y. Model 3 subscriptions range from as low as $490 per month with an initial $4,900 start fee, to $1,000 per month with an initial $1,000 start fee. Whichever payment option you choose, a low refundable deposit of $500 and taxes also apply. Adding to the cost advantage, Autonomy drivers have the flexibility to subscribe month to month after a three-month minimum hold period and then can cancel any time with 28 days’ notice. The platform is a viable market option for those who do not want or cannot afford the long-term commitment of buying or leasing an electric car. Autonomy’s subscription model offers a new radical solution to the rising demand for electric cars. An additional advantage is the company’s stock of Model 3s available for delivery or pickup within weeks, compared with the six- to ninemonth wait for a lease or loan. Source: Autonomy

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CREF Honors I-CAR Committees

Automotive Service Councils of California Announces Corporate Partnership with ACAT Global

During I-CAR’s recent Zone Conferences, the Collision Repair Education Foundation (CREF) recognized 21 volunteer I-CAR Committees for their 2021 dedication to the industry’s future by holding a fundraiser for their local collision school programs in 2021. Each committee received a unique bowling pin which was repaired, designed and painted by collision students around the country for use as recognition awards. I-CAR believes local engagement with schools and students is so important that many of their committee goals are related to these efforts. Committees are encouraged to get involved with school advisory boards, the Adopt-aSchool program, host or attend a local career fair and collaborate with CREF to hold a fundraising event to benefit a local school.

The Automotive Service Councils of California (ASCCA) is proud to announce a new corporate partnership with ACAT Global Inc. Available for domestic and import vehicles, ACAT Global’s Metallic Series Catalytic Converters are U.S. federal compliant and also California Air Resources Board (CARB) compliant for many applications under the executive orders published on the CARB website. “Our American-made metallic substrate catalytic converters meet both federal and California emission requirements yet cost much less than those currently on the market,” said Joe Moch, CEO of ACAT Global. “A local shop can easily replace an OEM catalytic converter with one of ours if a unit no longer functions or was stolen.” ACAT Global manufactures sophisticated catalytic converters for internal combustion engine (ICE) applications worldwide. The company’s proprietary technology is engineered for the most demanding on and off-road performance applications. These cost-effective products are typically less expensive than tra-

Source: CREF

ditional products. CARB requires vehicle manufacturers to include engine and emission equipment systems on their vehicles that reduce specific pollutants. Eventually, these emission control systems deteriorate over time and must be replaced. Frequently they are stolen and must be replaced to

“We are excited to partner with ASCCA to give its members access to this reliable and innovative catalytic converter technology,” said Moch. “We’re working closely with various government agencies to implement retrofit programs, as well as replacement for stolen catalytic converters nationwide. We are developing new

“We are excited to partner with ASCCA to give its members access to this reliable and innovative catalytic converter technology,” — Joe Moch comply with emissions standards. An exemption from Vehicle Code Section 27156 (VC 27156), California’s anti-tampering law, is required before any add-on or modified part can be sold in California. ACAT Global’s catalytic converters are available as a universal or direct fit system through independent shops in California on vehicles from 48 different global car brands. Its reliable metallic catalysts use proprietary technology, engineered for easy installation, form, fit and function.

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distribution channels and tools to teach technicians how to quickly install our technology on passenger vehicles. Shops using ACAT Global products can offer their customers a much less expensive, yet much more effective way to keep their vehicles compliant and help battle climate change.” ACAT Global products are available now for all ASCCA members. For more information, visit acatglobal.com or call (231) 437-5000. Source: ASCCA

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Crash Champions Acquires Legendary Mike’s Auto Body in California’s Bay Area Crash Champions announced June 21 it has entered into an agreement with Mike’s Auto Body, a leading family-owned collision repair MSO in the greater San Francisco Bay Area. Slated to close in early August, all 17 Mike’s Auto Body locations will operate under the Crash Champions name and banner, bringing the company’s total number of shops in California to 51. This is a major industry development that not only adds another leading name in California into the Crash Champions platform, but rounds out the company’s footprint in the Golden State. Having first opened its doors in 1972, Mike’s Auto Body has become a well-known and trusted leader in the San Francisco Bay Area for providing high quality collision repairs and outstanding customer service. Founded by Mike Rose, the business offers a full suite of modern collision repair services at its 17 state-of-the-art locations, spanning Napa to Fremont. “For nearly 50 years, Mike’s Auto Body has been a model of excellence for our industry,” said Matt Ebert, founder and CEO of Crash Champions. “When you look at our incredi-

ble growth over the last three years, there’s a common theme with every M&A transaction we’ve completed: true partnership with great operators. “Every deal we have done has been rooted in identifying the right partners who share our operational ethos, and never has this been truer than with Mike’s Auto Body,” Ebert said. “The Rose family has built a phenomenal business with a stellar reputation and robust footprint that fits well with our platform in California. I’m thrilled to welcome the Rose family and their team to Crash Champions, and I look forward to our future together.” Following the transaction, Mike Rose, Brennan Rose and Ragen Rose-Ortland will become equity holders in the company. “After five decades of building this business into the respected leader it is today, I could not be prouder to partner with Matt Ebert and Crash Champions to begin a new chapter,” said Mike Rose. “This is a tremendous day in our history, and we are all very excited to take this next step.” Ragen Rose-Ortland, CFO of Mike’s Auto Body, added: “Matt and his team have demonstrated a

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clear commitment to their customers, employees and the neighborhoods where they live and work, which was important to us with our choice of national MSOs. As we join together with Crash Champions, we know we’re in great hands.” “Since our founding, we have been doing business the right way and putting the people we serve first,” said Brennan Rose, CEO of Mike’s Auto Body. “This approach has led to our success, and in Crash Champions, we know we have found a partner who shares this mission and philosophy—ensuring that our values are maintained moving forward. This is a monumental day for the Mike’s Auto Body family, and I look forward to what the future holds under the Crash Champions banner.” Crash Champions first entered the California market in early 2020 with the acquisition of Pacific Elite, a 23-location operation in Southern California. This was followed by the acquisition of Fountain Valley Bodyworks, an Orange County-based operator of two of the highest-performing collision repair shops in the country, in October 2020.

Through a handful of successful transactions that followed, Crash Champions then entered the Northern California market with the addition of five locations in the San Francisco Bay Area from 2021-2022. With the addition of Mike’s Auto Body, the company now operates 51 high-performing shops throughout the state. This impressive expansion further solidifies Crash Champion’s position as one of the largest collision repair companies by location in California. “California has been a major focus for us, as evident by our many transactions in the market over the last few years,” added Ebert. “With the addition of Mike’s Auto Body—and the experienced team behind their success—our platform now includes powerful assets and capabilities in the center of Northern California. Combined with our strong presence throughout the greater Los Angeles, Orange County and San Diego regions, we are now one of the top players in almost every major market of the state. This is yet another key milestone in our incredible growth story, and we are just getting started.” Source: Crash Champions

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10 52912_LR29_H_ABN.indd JULY 2022 AUTOBODY 1 NEWS / autobodynews.com

4/6/22 2:54 PM

Fix Auto Escondido Introduces Community to Opportunities in Collision Repair Industry

Former Tesla Worker Has 2 Weeks to Accept $15M Award for Racism at Fremont Factory

Deeply involved in the community they serve, Fix Auto Escondido in California is helping prepare the future of the collision repair industry through its commitment to raising awareness of opportunities in the field.

by Maria Merano, Teslarati

Recently, the team participated in two community events, where they highlighted the wealth of opportunity within the collision repair industry. “The Transpo Expo and the USA Multicultural Cinco de Mayo Festival play important roles in our San Diego community, getting different individuals from varying backgrounds together,” said Kirk Henson, owner of Fix Auto Escondido. “We want to introduce

opportunities to new talent within our community, as skilled workers are essential to our industry and our economy.” Extending its efforts beyond local events, Fix Auto Escondido also welcomes interns to its facility, providing a jumpstart to young students interested in the field. “We are big proponents of continuing education, as our industry is always evolving and we have to learn how to change alongside it,” continued Henson. “Providing that important hands-on training early in their careers helps give young students the edge in an industry filled with potential.” Three interns have recently been brought on to the Fix Auto Escondido team. One intern was hired from its partnership with Palomar College Technical careers and the other two, still in high school at Escondido Union High School, will become full-time employees over the summer following graduation. Visit FixAutoUSA.com to learn more. Source: Fix Auto USA

On June 7, U.S. District Judge William Orrick in San Francisco said Owen Diaz had two weeks to accept a $15 million payout for racial abuse at the Tesla Fremont Factory. Diaz is a former elevator operator at Tesla’s assembly plant in California. He accused Tesla of racial discrimination. In an order released June 7, Orrick reaffirmed his decision to reduce the jury’s award from nearly $137 million to $15 million. He stated Diaz had no controlling question of law to justify an immediate appeal of the reduced award. Orrick further explained permitting an immediate appeal “would further delay [the] resolution of a case that is already five years old.” Lawyers representing Diaz disagreed with Orrick’s statements. They said a question of law related to damages for emotional distress justified an immediate appeal.

Orrick reduced the jury’s award April 13. He also rejected Tesla’s request for a new trial. Diaz’s $15 million payout includes $1.5 million for compensatory damages and $13.5 million for punitive damages. The jury initially awarded him $137 million in damages, comprised of $6.9 million for emotional distress and $130 million worth of punitive damages. At the time, the judge concluded the award for compensatory damages was excessive, but would not reduce it to $300,000 as Tesla requested. He also lowered the jury’s award for punitive damages. Orrick’s decision was based on a U.S. Supreme Court precedent that set constitutional limitations on punitive damages at typically less than 10 times compensatory damages. The judge awarded Diaz $13.5 million in punitive damages, nine times the amount of compensatory damages.

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Briones is Crash Champions’ Marketing Officer Crash Champions, LLC, announced June 7 it has named Daniel Briones as chief marketing officer. Briones, previously vice president of marketing and brand for the company, will oversee go-to-market and brand strategies as a key member of Crash Champions’ executive leadership team. Briones has 25 years in the automotive space, 15 of which have been as an experienced, tenured marketing leader. Briones joined the Crash Champions team as a marketing consultant in July 2021, and then transitioned into the role of vice president of marketing and brand later that year. In that time, Briones led Crash’s marketing and brand strategy, playing a critical role in building-out the company’s national platform by driving measurable business growth and successfully positioning the brand for continued expansion. Source: Crash Champions

Continued from Cover

Budget Agreement to $125,000. Under the proposal, a family of five could receive a $1,000 rebate. Meanwhile, Newsom’s proposal wants to use $11.5 billion to send $400 to every registered vehicle owner in the state, with a cap of two vehicles per person. He also wants to use $750 million to provide free public transportation for three months. Leading lawmakers have expressed concern about the impact of Newsom’s rebate proposal, particularly for individuals who do not own a car and wouldn’t benefit from a rebate. In May, Senate President Pro Tempore Toni Atkins said Senate Democrats “do not believe a rebate tied to car ownership does the job.” Lawmakers said June 1 they would continue conversations with the governor to reach an agreement. The fiscal relief package penned by lawmakers also includes $1.3 billion in relief for small businesses and $400 million for ex-

panded tax credits, which includes increasing the minimum California Earned Income Tax Credit (CalEITC) to $255. “With this budget, we are spreading our state’s wealth to hard-working Californians and small businesses like never before,” Atkins said in a statement. “We look forward to continuing the conversation with Gov. Newsom and his office. We all are working toward the same goal, and I have every confidence we will find a united path to get there.” Lawmakers did include several elements of Newsom’s budget proposal in their framework as well, including the governor’s push to expand Medi-Cal to all eligible Californians regardless of their immigration status. Legislators also adopted Newsom’s proposal to spend $200

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Lawmakers in the California Assembly unanimously passed AB 2350, bipartisan SEMA-sponsored legislation that would incentivize consumers to convert gasoline- and diesel-powered motor vehicles into zero-emissions vehicles (ZEV). If enacted, AB 2350 would provide eligible motorists who convert their vehicle with a $2,000 rebate. The bill currently awaits consideration in the Senate. In recent years, California has implemented various programs, including the Clean Vehicle Rebate Program and the Clean Cars for All Program, to promote the purchase of new zero-emission

vehicles (ZEVs). However, none of the programs currently offer benefits for vehicles that started their life with an internal-combustion engine and can be converted to a ZEV via an aftermarket motor package. AB 2350 helps preserve California’s rich car culture while creating new ways to make ZEV ownership more accessible. SEMA encourages its members and enthusiasts in California to contact their lawmakers in support of AB 2350. For further details, contact Christian Robinson at stateleg@ sema.org. Source: SEMA

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million on additional child care facilities. The legislative budget agreement also includes a $21 billion climate package to address drought resilience, sea level rise and extreme heat, though details are “subject to ongoing negotiations.” Some Republican lawmakers, whose party represents a super-minority in both chambers, expressed frustration that they aren’t included in budget negotiations. “California’s Democrat lawmakers have gone off the cliff. They have absolutely corrupted the budget process,” said Senate Budget Vice Chair Jim Nielsen, R-Red Bluff. “They have silenced the voices of the 9 million citizens who Republican senators represent by arrogantly refusing to involve us in crafting a budget. It’s despicable.”

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8/7/20 11:31 AM

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NABC Announces Mitchell as Sponsor The National Auto Body Council Body® (NABC) is proud to announce Mitchell, an Enlyte company, has joined the collision repair industry’s premier philanthropic organization as a level one sponsor. At this sponsorship level, Mitchell will work alongside an elite consortium of collision repair facilities, rental car companies, parts and materials providers, insurance companies, automotive recyclers, towing companies, industry consultants and more to serve communities across the country with programs that help change and save lives every day. Founded in 1946, Mitchell provides collision repairers with a suite of technology solutions designed to reduce cycle time, streamline operations, improve customer satisfaction and support proper, safe vehicle repairs. These cloud-based solutions leverage Mitchell’s comprehensive data and more than 75 years of industry expertise. Source: NABC

Continued from Cover

New-Vehicle Prices were transacting on average between 6.1% and 9.3% over MSRP. On the other side of the spectrum, Buick and Lincoln were selling at nearly 1% below MSRP. “Prices for both new and used vehicles are showing signs of stabilizing, and price growth will likely decline over the course of the summer as the anniversary of the ‘big squeeze’ in inventory passes,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “However, no one should expect price drops, as tight supplies in the new market will hold prices at an elevated level into 2023.” The average price paid for a new non-luxury vehicle in May was $43,338, up $709 from April. Car shoppers in the non-luxury segment paid on average $1,030 above sticker price. Consumers have paid more than MSRP in each month of 2022, whereas one year ago, non-luxury vehicles were selling for more than

$400 under MSRP. In May, the average luxury buyer paid $65,379 for a new vehicle, down $511 month over month but still $1,071 above sticker price. For comparison, luxury vehicles were selling for nearly $1,300 under MSRP one year ago. Luxury vehicle share remains historically high, but decreased to 17.3% of total sales in May, down slightly from 17.4% in April. For comparison, luxury share in May 2021 was 15.9% and, pre-pandemic, luxury share in May 2019 was 13.1% of the total market. The average price paid for a new electric vehicle (EV) dropped again in May compared to April, as more lower-priced models enter the market and offset the many luxury EVs already available. The Chevrolet Bolt, with average transaction prices below $40,000, is available on dealer lots after an extensive recall, and the new Kia EV6 is selling well. Even Tesla had slightly lower ATPs month over month in May. Still, the average price for a new electric vehicle—over $64,000 according to Kelley Blue Book es-

timates—is well above the industry average and more aligned with luxury prices than mainstream prices. New-vehicle average transaction price changes month over month by segment saw all segments increasing except cars, mirroring April. With an ATP of $56,216, trucks saw the largest increase of $888. With an ATP of $48,671, vans saw an increase of $726 in May, while SUVs increased by $526 to an ATP of $46,073. Cars had an average transaction price of $41,902 in May, a $179 decrease month over month. Meanwhile, vans still had the lowest incentives (expressed as a percent of ATP) at 1.4%, and trucks had the highest at 2.9%. Incentives dropped to a record low level in May, averaging only 2.5% of the average transaction price. Source: Kelley Blue Book

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autobodynews.com / JULY 2022 AUTOBODY NEWS 15

Mercury Adds Digital Claims Processing

Ford Recalls 2.9M Vehicles For Inability To Shift Into Gear, Risking Crash

Mercury Insurance announced a new web-based application to help policyholders file a claim digitally immediately following an accident with ease and security. Through a series of recognizable prompts, the software allows drivers to submit their claim with the help of maps and emoji-driven questions. Policyholders will be able to step through every part of the accident with a series of easily understood questions without being asked for repetitive information. Drivers can indicate precisely where their vehicle was damaged by dropping a pin on a map highlighting their location and even the weather at the time of the incident, along with photos submitted from their smartphones. While filing a claim, policyholders will be given access to connect either through the app, web portal, an integrated URL link or by telephone that will match their information.

Ford Motor Co. is recalling 2.9 million vehicles that may shift into different gears than intended or roll away while parked, the third major recall for the automaker this month. The latest recall affects certain 2013-2019 Escape, 2013-2018 C-Max, 2013-2016 Fusion, 20132021 Transit Connect and 2015-2018 Edge vehicles, according to the National Highway Traffic Safety Administration (NHTSA). “A damaged or missing bushing may prevent the vehicle from shifting into the intended gear, and cause the vehicle to move in an unexpected direction. Additionally, the vehicle may roll after the driver selects the ‘Park’ position,” the government website says. Each vehicle model affected is listed separately on the regulatory site, totaling 2,925,968 vehicles. The agency acknowledged the automaker’s June 10 report to safety regulators in a letter dated Tuesday. Ford said in its filing that the company is aware of six reports alleging property damage and four reports alleging injury, related to this concern.

Source: Mercury Insurance

by Phoebe Wall Howard, Detroit Free Press

“The transmission may not be in the park position, even though the shifter position indicates that the vehicle was shifted to park. The driver does not receive a warning message or audible chime,” Ford wrote in its recall letter to federal regulators. “Root cause is unknown,” the automaker said in the letter. “Based on Ford’s root cause investigation, heat and humidity have the potential to contribute to the hydrological breakdown of the bushing material.” A Ford spokesman declined to provide additional comment Wednesday. In the filing, Ford said its dealers will replace the under-hood shift bushing and add a protective cap over the shift cable bushing, free of charge. Ford said it plans to mail letters June 27 to approximately: • 1,726,763 Escape owners • 143,220 C-Max owners • 439,483, Fusion owners • 107,102 Transit Connect owners • 509,400 Edge owners Mustang Mach-E, Expedition woes Also this week, Ford confirmed recalling 48,924 model year 2021-22 electric Mustang Mach-E vehicles

because they could lose power while driving. The 2021 Ford Bronco has also been recalled for “catastrophic” engine failure. Ford recalled 350,000 SUVs, including about 39,000 for engine fire risk in May. Customers who own a 2021 Ford Expedition and 2021 Lincoln Navigator revealed last week they’re suing for the fire risk that potentially affects 39,013 vehicles and currently has no identifiable fix. In February 2020, prior to becoming CEO eight months later, Jim Farley said in a public speech that the company had to get control of warranty costs that were taking a huge bite out of profits. “We know what we need to do,” he said. “We need to lower our warranty spending.” John Lawler, Ford chief financial officer, said late Wednesday morning during the Deutsche Bank Global Auto Industry Conference 2022 livestream that Ford must reduce warranty costs as part of its overall financial strategy. He was not asked specifically about the recent recalls, nor did he offer comment on them specifically.

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Continued from Cover

GM’s Cruise

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its website. PUC Commissioner Clifford Rechtschaffen said during the meeting the panel was being cautious by “taking a careful, incremental approach” to regulating fully autonomous vehicles. “This resolution marks an-

heavy fog, precipitation or smoke and will not be allowed on highways at any point. The restrictions came as a result of concerns from San Francisco fire, police and transit officials, who wanted regulators to impose restrictions on the capabilities of the program before allowing it to carry paying passengers. The officials are hoping to require further approval to expand the fleet.

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other important step in that effort,” Rechtschaffen said. “It will allow our staff to continue to gather very important data that will support the development of future phases.” Initially, cars in the fleet will be limited to a 30 MPH top speed, restricted to an area that avoids downtown, and will only be allowed to operate between the hours of 10 p.m. and 6 a.m. The vehicles will not be operational during

Concerns from San Francisco Fire Department members were valid and related to an April incident where a Cruise autonomous test vehicle blocked a firetruck en route to a three-alarm fire. Another incident where a police officer pulled over a Cruise vehicle, which appeared to then drive off before the cop was finished with the traffic stop, also raised concerns. Cruise said the cars made safe decisions.

Continued from Cover

date of the final deadline. FRS did not provide supporting information about the claims it was attempting to subrogate. It said in pleadings that it “would not be practical to submit claims for many thousands of total loss vehicles before resolving the threshold legal question whether such claims would be permitted.” U.S. District Judge Sean F. Cox denied the motion to intervene. He said in his order that FRS had ample opportunity to intervene earlier but failed to act until after three settlement agreements had been approved. Allowing more claims to be litigated at that late stage would delay distribution of the settlement proceeds, Cox said. The 6th Circuit panel said Cox did not abuse his discretion. “If it were to allow intervention, the district court would have to decide whether FRS has a right to any of the settlement proceeds,” the opinion says. “This would require, for all practical purposes, revisiting the class definition and the plan of allocation, issues that have long been resolved.”

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involved until May 2018. It sent a letter to U.S. District Judge Marianne O. Battani giving notice that its eight insurer clients had a subrogation interest in the settlement payments because they made total-loss payments to policyholders. Court documents do not reveal the identities of FRS’ clients, except for a claim assignment agreement with Selective Insurance Co. that was included in the court’s electronic file. FRS said denying the insurers equitable subrogation would “undeniably result in a double payment to total loss insureds.” But by the time FRS gave notice of its claims, three settlement agreements had already been approved and a fourth agreement was pending a final hearing. The court had set a Dec. 31, 2019, deadline to file claims, but delayed the deadline twice at the request of the plaintiffs’ attorneys. FRS filed a formal motion to intervene on June 18, 2020, the

autobodynews.com / JULY 2022 AUTOBODY NEWS 17

After the Donation: Veteran’s Donated Car Enables Her to ‘Pay It Forward’ by Ed Attanasio

When deserving people get fully refurbished vehicles from auto body shops, whether MSOs or independents, it is always a major win-win for the industry and the community. In this series, we follow up to find out how these vehicles have helped these deserving people as they pursue their dreams and achieve their goals after they’ve received their cars. In this case, TeJae Dunnivant, a U.S. Army Reserve veteran, and her son were awarded a 2014 Volkswagen Jetta from Mike’s Auto Body in northern California’s East Bay in 2016. The car was donated by CSAA Insurance and the giveaway was sponsored by the Blue Star Moms while Dunnivant was working as a veteran advisor at the University of California, Berkeley and pursuing her degree. At the time, Dunnivant needed the Jetta to get to and from school and other chores, but when life threw her a curveball, her vehicle from Mike’s Auto Body became even more vital to the survival of her and her young son. Three months after receiving the vehicle, Dunnivant found out her son Asad, then 12, had leukemia. “In February of 2017, we got some tough news and of course that was a major deal,” she said. “When I initially wrote my letter for the vehicle, I stated that I needed the car to go to the grocery store and food banks, which is hard to do on foot. After a while, we began using it to go back and forth from Albany to Oakland Children’s Hospital, so the Jetta became a lot more important lifeline for us and a more major part of our lives.” Now, let’s fast forward to 2022 and check in with Dunnivant and her son. First off, Dunnivant got a bachelor’s degree in media studies from the University of California, Berkeley. She also worked for one year at Contra Costa College in San Leandro, CA, in its Veterans Center. Then, she moved down to San Diego, CA, to work for Operation Homefront, a national nonprofit

whose mission is to build strong, stable and secure military families so they can thrive in their respective communities. In 2022, Dunnivant is using her donated vehicle to pay it forward to others as an account coordinator, working in the field office program.

Six years ago, TeJae Dunnivant, a veteran of the U.S. Army Reserve, and her son received a 2014 VW Jetta from Mike’s Auto Body in northern California’s East Bay, and the vehicle is still their daily driver.

“We do so much great work for this national non-profit,” she said. “I am in charge of California and Hawaii, working with a team to give backpacks and holiday meals or gift cards for food during the pandemic. We are definitely one of the country’s top-rated nonprofit organizations helping military veterans to succeed and strive as opposed to just getting by.” For more than twenty years, Operation Homefront has provided programs that offer relief, through critical financial assistance and transitional housing programs; resiliency, through permanent housing and caregiver support services; and recurring family support programs and services throughout the year that helps military families overcome the short-term bumps in the road so they don’t become longterm chronic problems. Operation Homefront has earned high ratings from leading charity rating services since day one, including Charity Navigator, which gave Operation Homefront four stars for 11 consecutive years for superior service, full transparency and accountability. At Operation Homefront, 88% of expenditures go directly toward delivering programs and services to the military families who need it the most. Another part of this exciting update is about Asad. He is now 15

18 JULY 2022 AUTOBODY NEWS / autobodynews.com

and a sophomore at Coronado High School, where he plays volleyball and is maintaining a 3.5 GPA. “He is doing very well,” Dunnivant said. “There are no more reoccurrences of the cancer following some rigorous chemotherapy. He sometimes has issues trying to retain information, so we’ve been working with neurologists to help with him in that area. Asad has been taking on a heavy load of classes and that’s why he will be graduating from high school one year early, in June of 2023.” Like his mother, Asad has a dream to make the world a better place to live. “He wants to create change in society, and it surely is special,” Dunnivant said. “He loves his debate class and isn’t afraid to get up in front of people to speak. He was exposed to a lot of positivity when I was attending Cal and gravitated toward people who are willing to take stands about things that matter to them. His plan it to attend community school for the first two

years, then transfer to a four-year school to get a B.A., before going to a top law school.” Another positive experience in TeJae and Asad’s lives relates to their donated vehicle. Their 2014 VW Jetta is still running well and has become a huge part of their success story. “We still rely on this car every day and it always comes through for us,” she said. “It’s enabled me to do the important things I am achieving in my life. Everything has come full circle; I received a hand up from the people at Mike’s Auto Body and now I am helping people myself. Without this car, it would have been pretty difficult to do all these things, and when I look back at it, it surely is very satisfying and fulfilling. I’d like to thank Sal, the Rose family, CSAA Insurance and the Blue Star Moms!”

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autobodynews.com / JULY 2022 AUTOBODY NEWS 19

Collision Repairers Actually Lament Lack of Insurance Adjusters in Shops by John Yoswick

Aaron Schulenburg of the Society of Collision Repair Specialists (SCRS) said he was surprised by one of the findings of the association’s survey earlier this year asking shops about what changes could have a positive impact on their business.

Kyle Bradshaw of K&M Collision in Hickory, NC, said repeated in-shop interactions with insurance adjusters gave his company an opportunity to “educate” them.

“I never in a million years thought the response from a collision repair facility would be: Have more adjusters come back out to my shop,” Schulenburg said, noting multiple respondents shared such statements. During a Repairer Roundtable

panel discussion of the survey findings this spring, Kyle Bradshaw, director of operations for K&M Collision in Hickory, NC, said he understands the sentiment.

ington Metropolitan Auto Body Association (WMABA) said when the law in Virginia was being changed in 2016 to allow for photo estimates, the association fought hard to make

“I never in a million years thought the response from a collision repair facility would be: Have more adjusters come back out to my shop,” — Aaron Schulenburg “We spend a lot of time trying to educate insurance appraisers,” Bradshaw said. “So if it’s somebody who comes to our shop frequently, I don’t have to explain the same operations on every single job. However, [with remote claims handling] it’s basically like playing roulette; you don’t know who you’re going to get. It’s burdensome. It takes a long time. Fortunately, in our state, physical inspections are required. Our members have started to lean back on the administrative code: ‘Listen, you need to physically inspect the vehicle.’” Jordan Hendler of the Wash-

sure a caveat was included in the legislation that “if there is any disagreement with the repairer, then a physical inspection is required.” “That’s something we pushed for, and I’m glad that we did because that’s become really important in the last couple of years,” Hendler said. But later in the discussion, when panelists were asked what they think will not return post-pandemic, Andy Tylka of the Tag Auto Group, which operates 15 shops in Indiana, kept his response brief. “Simple answer: Adjusters being in the shops,” Tylka said.

Schulenburg said he agreed photo-based estimating isn’t going away, but insurers need to recognize they

Andy Tylka of the Tag Auto Group in Indiana said he doesn’t foresee a widescale return on in-shop inspections by insurers.

may not “reap the gains and expect the process to work well” if they also do away with their knowledgeable staff. “That’s one of the things we hear quite a bit from our membership, about the length of approvals, because the process ends up going back into a human’s hands, and the technical acuity of the human who is handling it just isn’t the same as it once was,” Schulenburg said. “So it’s just leading to longer cycle times, longer interactions, that negatively affect the consumer experience.”

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Auto Body Shop Veteran Says DRPs Can Be Profitable If Done Right by Ed Attanasio

Autobody News recently sat down with Jim Huard to talk about what’s important to him and the current state of the collision repair industry. Jim and Kelly Huard are the co-owners of Painters Collision Centers with two locations in Queen Creek and Chandler, AZ. Their goal is 10 locations within the next two years through smart and strategic expansion.

Q: A: Q:

As a body shop owner, what are your top concerns?

don’t pay enough for repairs. Do you agree?

Hiring and retaining skilled labor is our No. 1 concern.

A shop owner told me one time the tug-of-war between body shops and insurance companies will never cease, although it will change and evolve. Do you agree, and how and why have your relationships with your insurers changed?

I respectfully disagree; I am different in how I view this. All repairers can work effectively with carriers if they know how to navigate through the process. It’s not always just about being right. But instead of having the facts, the correct documentation and the right attitude about the relationship is what is truly important.

Jim Huard of Painters Collision Centers in Arizona is not afraid to share his ideas and opinions with body shop owners and the industry as a whole.

Another body shop owner told me the main problem in this industry is the simple fact the insurance companies, in general,

I again respectfully disagree, because from my experience, all insurers will pay to repair the vehicle correctly. I also believe it is a choice to repair a car correctly. Scans, calibrations and the like will be reimbursed as long as they are properly documented. I am a DRP work flow guy. I am fanatical about quality repairs, and we are super picky about what we repair. The insurance companies are always watching the bottom line and there is nothing wrong with that. But I don’t think they ever want us to do sub-par repairs or compromise our quality to save money.

them?

Are most of your DRPs profitable and are you satisfied with

I believe that all DRPs are profitable for all shops. How do you repair a car? And how do you write the estimate? Are you focused on the sales

mix and writing a complete estimate? Are you complacent and write poor estimates and what does your throughput model look like? Profitability is predicated on good quality estimates and throughput. This is a proven fact. A shop that produces 1.5 HPD will put 1.8% to the bottom line, give or take. A shop producing six HPD will put 18% to 20% to the bottom line or better.

How has all of the new technology impacted your productivity? Customer service? Marketing? Online?

We have had to adapt several times over. We created processes to repair higher level technology vehicles effectively while positively impacting our CSI. We also work with a stellar marketing company, Stratosphere Studio, that is engaged, in tune and really knows the collision repair industry.

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I am not, because we are very strategic on how we operate. We do not put all of our eggs in one basket. One of our DRPs generates 37% of our revenue, and another one is at 21%, for example. I work with five partners in total and will not add any more. This is how we are able to provide top level KPIs with compliance and overall stellar performance for each partner.

Do your insurance partners constantly ask you to incorporate more aftermarket and recycled/remanufactured parts into your repairs? Are some of these parts OK to use, or would you want to use OE parts on every repair if you could?

I will answer this carefully. In a perfect world, we would use all OE. This frankly would improve the carrier’s profit. We did a case study on this topic. What we discovered is that with the downtime of getting a used part, and the fact that most come damaged or not useable, we often have to return and wait for another. It’s incredibly time-consuming and costs the carriers thousands

of dollars per day in rental costs. This does apply to some aftermarket and reconditioned parts. The carriers put a ton of pressure on the rentals and cycle time. Most carriers spend $5 million per day on rental replacements while vehicles are being repaired. I also believe that if a consumer purchases a policy that requires aftermarket parts, that is on the consumer. Most aftermarket parts today fit well and are crash tested. Depending on what it is, a reconditioned part is more than acceptable, in my opinion. But as I stated, in an all-OEM world, all parties involved will gain throughput and profit.

From your experience, is it better to pay techs salary/ hourly or flat rate?

I have many opinions here. But from my experience, hourly you will realize low profits, lack of productivity, poor cycle times and usually a sub-tribe of people who are not truly genuine in their efforts. Salary with a bonus incentive again creates a comfort zone for

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most. A person will learn to live on their salary and can become complacent in regard to the bonus. The bonus becomes meaningless this way. Commission or flat rate works for us. I pay flat rates to my techs and commission sales plans with KPI drivers to my repair planners and GMs. Your sales commission percentages are based on the KPIs you provide. These percentages range from 3% to 4.5% of the repair planners top line sale. So, for example: If a repair planner does $150,000 in sales, provides a five-day cycle time, a 97% CSI and a repair ratio of 77% or higher, they yield the highest percentage. So driven writers that get it love this plan. I have writers stacking cash monthly doing it this way.

Q: A:

Imagine this industry in 20 years and share your vision.

I see very advanced technologies, but in many cases, this technology creates accidents; there is just too much going on in the vehicle’s cockpit. It distracts people from being able to focus, hence causing an

accident. I also do not see the EVs taking the roads over. Frankly, I believe that will never occur. I see many shops dropping out because they cannot afford to purchase what it takes to stay up with current times. This happens because many owner operators are marginal at what they do. MSOs and consolidators take a very interesting approach to this as well.

Do you have problems finding top techs, estimators, painters and office people in your region?

This is difficult in any region or market in the U.S. I have created mentor programs that have yielded several quality techs. We have exceptional pay plans, incentives and provide a quality work environment. We upgrade our equipment regularly to ensure happy tech teams. Happy people are good producers. We work hard to attract and retain top people.

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Honda of Hollywood Hollywood

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autobodynews.com / JULY 2022 AUTOBODY NEWS 25

Guest Columnist

Cole Strandberg is a principal with FOCUS Investment Banking, specializing in automotive aftermarket mergers and acquisitions. Cole works closely with automotive equipment providers, paint jobbers and collision centers. For more information, contact him at cole.strandberg@focusbankers.com or (561) 400-1015

with Cole Strandberg

How to Sell Your Automotive Distribution Business—An Insider’s Perspective I left my first stint in investment banking for the less glamorous world of automotive equipment distribution. Going from suits and boardrooms to jeans and paint booth pits was quite a transition, but it helped me realize what more and more people are finding out: the path to wealth is often found in owning a blue collar, service-oriented business, and then eventually selling that business. But if you’re reading this, there’s a good chance you already know that. In my case, the catalyst to leave investment banking was to join my family’s 30-year-old automotive equipment company following a strategic buyer’s interest in purchasing the business. I loved the idea of working with my family, and it was a truly great experience. At the time, I felt my banking experience would be helpful in the

sales process and I would like to experience it firsthand, which is also how I got back into banking. But until that initial acquisition interest, my family had not fully realized how valuable our company would appear to outside buyers. In fact, it was such a niche business that selling had never become a serious discussion. After all, who would buy a business in an industry that 99% of the country has never thought about? Spoiler alert: There was a ton of interest from all sorts of potential buyers. Distribution is sometimes overlooked as the key cog it is in the automotive aftermarket ecosystem. Whether you sell coatings and parts, paint booths and frame machines, or alignment equipment and compressors, you’re vital to the success of your customers. They rely on you to help them make money,

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plain and simple. Now, with massive levels of consolidation among your customers—be they collision repair centers, tire stores or car dealerships—you’re at a bit of a crossroads yourself. As your customers get bigger and more sophisticated, they expect you to do the same—or exit the industry. This “grow or go” conundrum is leading to significant M&A activity among the distribution companies that service those customers. Consolidation is underway, and valuations are high. In short, despite all the challenges you face in the business world right now, it’s a good time to be an owner—and potential seller— of a distribution company in the automotive space. So, if you’re open to selling your distribution business but not sure where to start, here are some

things to think about from someone who’s been involved as both a seller and a banker. The first order of business is to make sure your organization is ready for a transaction. Here are some steps to do just that: Consult an investment bank or M&A advisor: Find the right team to market your business and have your back throughout the M&A process. Your investment bank is an extension of you and your company in the marketplace, so make sure you are well represented. Look for investment banks that specialize in your space and market. It certainly helps when they’re familiar with your industry, its valuation trends and its buyers. Some key things my family and I considered when selecting our investment bank included industry experience and expertise, a high-quality team, FIN-

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RA licensing and a good cultural fit. The right investment bank will help you focus on the right metrics to get you where you want to go, even if you’re not there yet. They will also help guide you through some of the less obvious potential pitfalls that come with selling a distribution business, such as informing your suppliers beforehand and working with them to ensure a smooth transition. That’s what my family did, and it ended up opening a whole new world of potential buyers, allowing us to maximize the business’s value and find the right partners for longterm growth and success. Get your finances in order: One of the biggest factors hampering transactions from taking place is less-than-stellar financial records. If that sounds familiar, don’t fret! When we sold our family business, we recognized our financials were lacking in sophistication and brought in an ace CPA firm to help. It made a significant impact and changed the entire selling process for the better. In our case, we were introduced to our accounting firm

by our investment bank. If you don’t have an accountant, ask your investment banker to refer you to one. Stay focused on growth: When a sale is looming, it is easy for owners to focus on that sale as much or more than the daily operations of the business itself. This is a major trap. Keep pushing the growth! Doing this will ensure you get the best valuation possible and avoid any cold feet from buyers at the finish line. Stability within the business throughout the M&A process is key. Rely on your investment bank to handle the sales process while you concentrate on running your business. Map out the future: Some owners want to be done with their business entirely and ride off into the sunset that is retirement. And that’s perfectly OK. Others don’t want to get out entirely, but they’d like to take some money off the table and find the right partners to fuel growth within the business. Both cases attract two entirely different types of buyers. Based on what you want your business to look like after the sale, your investment bank or M&A advisor will help you

find the right partner. In our case, we wanted to keep some skin in the game and play a major role in the company’s future growth. Selling your distribution business is an exciting proposition, but there are many moving parts and roadblocks that can make the process daunting. You’ve dedicated blood, sweat, tears and—perhaps most importantly—a lot of time to your business. Nailing the transaction to ensure all that hard work is rewarded properly is paramount. After all, you don’t want to fumble at the goal line following a beautiful 99-yard return, right? Selling your business can often be a once-in-a-lifetime opportunity, so when that opportunity comes, make sure it’s executed properly. Find yourself the right partners and maximize your valuation. You’ve worked hard to get here, now finish strong!

Continued from Page 22

Can Be Profitable the country. Is this also true in your state?

Yes, but it’s not at the same pace here in Arizona as compared to some other states. I frankly like having consolidators/MSOs on the same street because the majority of them cannot perform. So, we gain in a big way as a result. Carriers have become increasingly frustrated with MSOs and their poor performance. Scale will be the death of these companies due to the lack of control and the lack of care. Many of them are in it for a paycheck and nothing more. I talk to hundreds of people each year from these companies, and the good ones want to run because they see the demise of the MSOs coming.

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From the Desk of Mike Anderson with Mike Anderson

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

3 Phrases I’ve Heard with Potential Power in the Collision Repair Industry I’ve recently heard three people I respect in the collision repair industry each quote a different phrase that really resonated with me. I found myself continuing to think about how what they said is very applicable to our industry. So I thought I would pass those things along here. First, I was recently at a conference where Dan Risley of CCC Intelligent Solutions used the term “post-collision emotional support.” That brought to mind a couple of experiences I’d heard just recently from owners of General Motors vehicles. In the first, a Texas collision repairer told me his daughter had been in an accident in his vehicle. Not only did OnStar notify him of the accident, but they stayed in contact with him the whole time he was getting to the hospital where his daugh-

ter was taken. In another instance l heard from a GM owner, OnStar not only contacted him at the time of the accident to make sure he was OK, but followed up with him the next day just to confirm. I think that’s pretty amazing. It reminded me that about a year ago, after I’d had a medical procedure, both my doctor and the anesthesiologist called me the next day just to follow up, to make sure I was OK and wasn’t having any side effects. It meant a lot to me that they took the time to do that. I think the automakers are recognizing the opportunity that telematics offer them to provide that “post-collision emotional support” Dan was talking about. I think the GM stories are examples of that, and it’s going to help the OEMs leverage their brand and create raving fans

out of customers who are in an accident in a GM vehicle. So is there a way for us as shops to similarly provide post-collision emotional support? I think there is. How about a follow-up call to the customer the day after they pick up their vehicle, just to ask if everything is good with their vehicle? I know shops struggle with all the demands they have on their time, but couldn’t this be a great way to cement customer loyalty? A second quote that really jumped out at me recently was shared by a Collision Advice teammate, Sheryl Driggers, who I have so much respect for. We were having a team meeting, and she said something like, “Where there is no communication, negativity fills the void.” It made so much sense in the context of our discussion that I

asked her about it. She said she was paraphrasing Jon Gordon, author of “The Energy Bus,” “The Power of Positive Leadership” and other best-selling books. The actual quote from Jon: “Where there is a void in communication, negativity will fill it. Fill the voids so negativity can’t breed and grow.” To me, this really brought to mind all the supply chain issues we’re struggling with. If there are delays with the repair of a vehicle because of back-ordered parts or insurer-caused delays, are you keeping those customers actively informed about what’s happening? If there’s a void in your communication, they may be filling that void with negativity: “Man, that shop has really dropped the ball and isn’t getting my car fixed.” See 3 Phrases I’ve Heard, Page 31

Pennies From $5: Gas Prices Continue Daily Record High Trend by Casey Harper, The Center Square

Gas prices hit a national average price of $4.92 a gallon June 7, according to AAA, the highest price for regular unleaded gas on record, marking yet another record-setting day for gas prices as the national average nears $5 per gallon. Motorists in 13 states are now paying an average of $5 a gallon or more. New Jersey and Massachusetts joined Alaska, Arizona, California, Hawaii, Illinois, Indiana, Maine, Michigan, Nevada, Oregon and Washington. Right now, Americans are paying about double the prices they paid when President Joe Biden was elected. Gas prices have consistently risen, hitting new record highs every day for

more than a week. California leads the nation with a national average price of $6.37 per gallon. Several other states are above $5 per gallon and almost all 50 states are at least over $4.50 per gallon. Diesel gasoline also hit a record high Tuesday at $5.68 per gallon. Critics have continued to blast Biden for the high prices, which come alongside soaring inflation. “With average gas prices now more than double what they were when Biden took office, it’s no surprise that only 27% told a recent ABC poll they approved of his handling of gas prices,” U.S. Rep. Claudia Tenney, R-NY, wrote on Twitter. “We need an all-of-the-above approach to drive down prices.”

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autobodynews.com / JULY 2022 AUTOBODY NEWS 29 5/10/22 12:34 PM

Industry Insight with John Yoswick

—John Yoswick is a freelance writer based in Portland, Oregon who 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.

CIC Committees Tackle Ongoing Shortage of Collision Repair Technicians

Shop Showcase

It’s not uncommon during discus- appreciated. They leave because of sions within the collision repair in- management, period.” She said she has seen technical dustry about the technician shortage with Ed Attanasio for body shop representatives to education teachers “work hard every point to what they see as the inad- day to instill the passion they have equate entry-level skills of students for this industry into those students, completing auto body training pro- and then when they get out into the grams. Educators and others speaking at this spring’swith Collision Industry Ed Attanasio Conference (CIC), however, offered their own perspectives on the issue. “We do not have a recruiting problem. We have a retention problem,” Virginia Oden, a trade and industrial education program specialist with Oklahoma Career Tech, said at with Ed Attanasio Virginia Oden of Oklahoma Career Tech said the meeting held in Oklahoma City. how entry-level technicians are treated when “How we treat our employees is key. they enter the industry impacts whether they If you don’t provide them with opstay in the industry portunity, they will look elsewhere. They will tell you it’s because of industry, they are treated terribly. the dollar. But people do not leave They may leave your shop and go with Ed Attanasio a job they love and where they feel down the street to the next shop.

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But if they’re treated terribly at that shop, they will leave the industry. “They can get better work and better hours, with less hard labor, working at Amazon,” Oden said. “So it’s important once we get them recruited and passionate about what we do, we’ve got to treat them with respect. It’s not about ‘kids today.’ It’s every single person who’s breathing. We all want to be treated with respect.” Speaking from the floor at CIC, Dane Rounkles of American Honda said he once went to a collision shop in the Southeast to visit a student interning there while completing the Honda Professional Automotive Career Training program at a local school. “He wasn’t there, and I asked, ‘Did he not show up?’” Rounkles said. “No, he was mowing the shop owner’s yard. When I spoke to the

Media and Publicity for Shops

owner of the body shop about this, he said, ‘I had to pay my dues. They’ve got to pay theirs. As long as the school keeps sending people, I never have to mow my yard.’ My point: Do not assume these kids need to do what you and I did.” Bud Center, chairman of the CIC Talent Pool and Education Committee, said too often he hears shops and schools pointing to the other as the cause of the technician shortage. “There needs to be more conversation. People need to get on the same page,” Center said. To that end, the discussion at CIC included panelists sharing ideas about ways to improve the technician shortage. Oden said collision repair and other technical training programs in her state hold summer camps that give fifth and sixth grade students some exposure to the differ-

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ent programs. During eighth grade, students tour technical training programs in their area. “It’s all about planting seeds. It’s making students and parents and counselors aware of the opportunities that are out there,” Oden said. “At the same time, having done this for a while, the industry tends to want the fruit off the tree. They don’t want to help plant the seed to grow the tree. So they’re not involved in those summer camps and eighth grade visits and sophomore showcases. It’s like anything: If that student has seen your face, they become comfortable with you. You’re building that relationship. You’re starting that investment.” Amber Alley, manager of Barsotti’s Body & Fender in San Rafael, CA, has spoken at a number of past industry events about the success her shop has seen from its involvement with a local college taking part in a pilot project funded by the Enterprise Rent-A-Car Foundation. The students in the two-year program rotate spending eight weeks at school, then eight weeks working in a shop.

At CIC, Alley said she sees strong evidence of student interest in the trade. “I’ve done job fairs and that type of thing, and it’s not that people aren’t attracted to the industry,” Alley said. “It’s the presentation of the industry that they get once they come in.” Too often, she said, shops aren’t willing “to invest in people, and to offer them fair wages and a career path, because they’re scared that someone down the street is going to give them a dollar more. But not everyone is going to make it at your shop. We all have to be willing to take the calculated risk of investing in someone. We can’t have the attitude that they need to prove themselves to us. We need to prove ourselves to them.” Oden agreed that offering a career path is essential to keep young people in the industry. “They want to know what those steps are: This is where you are going to start. This is the compensation package, and here’s how you grow that,” Oden said. “I can tell you: Every single student in our career tech programs wants to see that.”

But at the same time, Alley said, the industry needs to have “a serious conversation” about what it will take for shops to pay competitive wages that attract and retain technicians in the industry. “None of this is going to matter if we can’t keep our doors open, if we can’t charge what the work costs, if you can’t pay the people what they need to earn to stay in the industry,” she said. “That needs to be a priority, having that conversation. We need to be big boys and girls about it, and be really serious…None of this is going to get solved unless we can pay people what their value is.” Center said when he asks shop owners what they are personally doing to help address the technician shortage and if they are involved with local schools, they often say they don’t have the time. “If you don’t have time as the owner or manager of a business in this industry to help solve this problem, who is going to do it? If you don’t have time, designate someone on your team to take that responsibility, and get this stuff done,” Center said. “Somebody has to take the lead.”

Continued from Page 28

3 Phrases I’ve Heard The fact Sheryl brought this concept to my attention hit home again just a few days later when I heard Ray Chew of CCC talk about what he termed a “no-update update.” Ray was talking about reaching out to customers just to let them know there’s nothing new you can tell them—there’s still no timeline from the supplier for the arrival of the part we need, for example—but you wanted to at least give them that update. The “no-update update” will help fill those communication voices to prevent negativity from creeping in. I’d love to hear how you’re offering “post-collision emotional support” or “no-update updates” to help avoid “voids in communication” at your business. Or if there’s a phrase or quote you’ve recently heard that’s resonated with you, drop me a line at mike@collisionadvice.com.

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Capture the Keys Uses Geofencing to Find Customers in the Right Place at the Right Time by Ed Attanasio

Thomas Zoebelein, owner of Stratosphere Studio in Bel Air, MD, creates marketing concepts for body shops well-known for pushing the envelope. His latest product is Capture the Keys, a software product that can target and pinpoint potential customers who have physically visited competing shops. It’s totally legal and ethical, and has been highly effective in gathering viable leads for Zoebelein’s shop customers since he unveiled it in 2020. Stratosphere Studio has evolved with the collision repair industry since it opened its doors in 2011. “Back then, we were doing primarily digital marketing for body shops—websites, blog content, email marketing and some consumer advertising, and it worked very well for a while,” Zoebelein said. “We found out about geofencing back when it was new, and thought, wow, this is the perfect thing for body shops because you can actually target people that are walking into a facility. I realized that geofencing was the solution, as long as it’s used strategically employed the right way.” The biggest question is how to find that customer immediately after they get into an accident. “Collision repair marketing is like trying to catch lightning in a bottle,” Zoebelein said. “You have to know when the lightning is going to strike in order to be able to put your lid on the jar, right? So, with geofencing we know if somebody’s walking into a competitor’s location and they’re not a vendor or an employee, they’re in the market.” I could write 5,000 words to describe how geofencing works, but Zoebelein can do it in less than 60. “In short, geofencing enables a user to capture any device’s ID’s and Mobile Ad ID’s (MAIDs) for any device that enters a fenced zone,” he said. “Then we can serve ads into the app’s websites and social media feeds of that device. You can also track that back to the activity that the device does after it has been served an ad, such as counting it as a walkin.”

Once Zoebelein saw the potential benefits for using geofencing, he began telling his shop customers about it in 2019—but without luck, at least initially. “It fell on deaf ears at first,” he said. “Nobody was really ready to jump in on the technology at that time. So then when COVID happened, people were starting to hear a little bit about geofencing for shops. One of my shop customers called me and said that he scrubbed down his frame machine for the second time, and his paint booth was spotless. He said I need to get some cars in here, so let’s give that geofencing thing a shot; what’s the harm? It generated a few walk-ins that clearly came from a competitor’s location. And so, I thought, wow, we might be onto something here.” Further testing led to the collection of solid leads, and soon Stratosphere decided to offer Capture the Keys to its clients, primarily independent shops. “We went to another shop with two locations in Pennsylvania and asked them if we could test it with them and they said sure,” Zoebelein said. “So, we ran a second test and had similar positive results. So that’s when we decided to launch geofencing as a service, and then eventually we turned it into a product. “It includes Facebook ads, Instagram ads, as well as Instagram and Facebook content, with geofencing and an in-depth reporting feature,” he continued. “It enables us to show our customers every two weeks how many leads we’ve collected. We send them a video walk-through of all the numbers and it shows how many phone calls they receive, how many walk-ins they get, how many lead submissions they collect and how many clicks they receive from the ads.” Capture the Keys helps shops with their search engine optimization (SEO) as well. “They see an immediate 3035% increase in traffic to their Google My Business page,” Zoebelein said. “We officially launched Capture the Keys at Kristen Felder’s first World’s Fair & Expo in 2020 and that’s when it really took off for us. Shops can send postcards to peo-

32 JULY 2022 AUTOBODY NEWS / autobodynews.com

ple all day long. TV and radio does a good job to build awareness, but it’s a really inefficient way of getting in front of people who are buying right now. “The best way to get in front of buyers is to be able to identify them in real time, and we can do it with geofencing.” Stratosphere is working with a company that tracks devices back to where the phone spends the night, and from there they can tell the physical address and name of the head of household. In some cases, it can pull email addresses in as well. “I can even tell you the year make and model of their vehicle, and even get their birthday in a lot of the cases,” Zoebelein said. “We draw these fences around our customer’s competing locations—whether they’re another body shop or a dealership—including their parking lots. “One of the reasons why geofencing works so well is due to the fact that it doesn’t care what you look at online,” he said. “It’ll start serving ads because it’s tracking the

device, not the user. Many of our clients are getting a considerable amount of walk-ins with people sending in photos of the damage, and filling out submission forms immediately after getting into accidents, and it all happens because of geofencing.” So, what happens when somebody starts getting a banner ad on their device via geofencing? “First, they’ll Google the shop by name,” he said. “So, this is different than doing an auto body repair search. The idea is that you’re going to find your body shop by searching for it online even if that was the only thing available to you. It’s a guaranteed branded search, so we actually don’t care where they click once they’re there. “If they want to go to the website, Yelp or Facebook, it doesn’t matter,” Zoebelein said. “Accessing the shop’s Google My Business page is the last mile in any buying decision for auto repair and it just makes it the very next step. Everything they need to know about the

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shop is right here. They can read reviews on the shop, see photos of the shop, they can book an appointment right from there or just click to call. They can click to get directions or even save it to their phone to access later. “The third thing the user can do is then click on the ad, which takes them to a landing page that explains why they should consider getting a second opinion outlining all of their services, certifications and capabilities.” Zoebelein explained Stratosphere is in the mind-changing business, and Capture the Keys can also help the fight against steering. “Capture The Keys was designed to help collision repair facilities combat insurance steering through a proprietary blend of geofencing and paid media strategies,” he said. “It is designed to find prospects and get a ‘second opinion quote’ from our body shop customers. Leads are handled through our own custom-built CRM for collision repairers and remove the friction in the transition from prospect lead to paying customer.”

The blogs Stratosphere creates for its customers are built to inform and promote the industry as a whole. “We’ve rewritten just about every single OEM position statement out there in layman’s terms,” Zoebelein said. “I like to say we reinvented the blog. It’s not strictly for SEO, but more for customer education and to solidify the fact that each one of our body shop customers is the No. 1 industry expert in their particular region. The whole point in advertising in simple terms is to find, identify and connect the buyer with the seller of a service or product, and we can achieve it all with geofencing.” Fifty shops are currently using Capture the Keys and Zoebelein is looking to work with 50 more. Each shop’s region is protected and spots are limited. So, if you’re on the fence about geofencing, maybe this article will prompt you to consider this technology and its benefits for your business.Learn more at capturethekeys. com. www.autobodynews.com

May Auto Sales Expected to Fall to Slowest Pace in 2022 With no relief from elevated prices and tight new-vehicle inventory, U.S. auto sales in May are expected to drop to their lowest level of the year. According to the Cox Automotive forecast released May 25, the seasonally adjusted annual rate (SAAR) of new-vehicle sales in May is expected to hit 13.1 million, a step backward from April’s 14.3 million level and far below the 16.9 million level posted in May 2021. May sales volume is forecast to finish near 1.14 million units, down 9% from last month and nearly 28% from one year ago. Last year, in May 2021, new-vehicle sales reached 1.59 million, the second-best month of 2021 by volume, behind only March. While high prices and tight inventory are negatively impacting new-vehicle sales this month, the low sales volume can also be attributed to the calendar. There are 24 selling days this month, three fewer than last month and two fewer than May 2021. Tight inventory isn’t the only

headwind facing the market. Other issues may be having a growing impact. Rising interest rates and higher prices, and the resulting increase in monthly payments, are likely hurting demand as well. Vehicle affordability in the U.S. continues to worsen, according to the Cox Automotive/ Moody’s Analytics Vehicle Affordability Index. In addition, lower consumer optimism in the wake of high inflation, surging gas prices and a volatile stock market may be keeping some potential buyers from entering the market. “Historically, the daily sales pace is higher in May than in most other months, with spring optimism in the air, thoughts of summer road trips on the horizon, and the buzz of Memorial Day sales,” said Charlie Chesbrough, senior economist at Cox Automotive. “But many of the industry’s normal patterns have been overturned by tight inventory and the lingering effect of the global pandemic.” Source: Cox Automotive

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Industry Insight with John Yoswick

What Role Should a Current Backlog of Work Play in Auto Body Shops’ DRP Decisions?

Shop Showcase

A national survey in April found repair everything you have. If that’s auto body shops on average have a a business decision you have been work backlog topping four weeks, toying with, now would be a good with Ed Attanasio and during the Society of Collision time to do that.” Other association leaders with Repair Specialists’ (SCRS) Repairer Roundtable this spring, a panel was longer tenures offered some cauasked whether that “unique scenar- tions to consider. “In order to do that, they have io” in the industry should play into a collision repair business’ decisions to have alternative plans,” Jordan related to participation in direct re- Hendler of the Washington Metwith Ed Attanasio pair programs. ropolitan Auto Body Association Three association leaders and (WMABA) said of shops choosing two shop owners responded. to exit DRPs. “I don’t think you can Jill Tuggle, who has been ex- just sever those relationships. I think ecutive director of the Auto Body you have to have a solid plan for eiAssociation of Texas (ABAT) for ther marketing or getting into OEM five years, thinks it should play into certifications. In our association, with Ed Attanasio a shop’s decision. the most successful members are “If there ever was a time that specialized and OEM-certified in at you could test the waters on operat- least five or six brands, minimum. ing independently of those contracts, You need to know how you are goit would be now,” Tuggle said. “Be- ing to create your own customer cause you’re going to get work. stream and own your portion of the with Ed the Attanasio The work is there. You already can’t market in a smart way.”

Some collision repairers have chosen locations with little street visibility, Hendler said, lowering their overhead because they knew direct repair referrals would bring work to the door.

Social Media for Shops

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Jordan Hendler said shops can end direct repair agreements, but first need to have a solid plan about how they can address the changes that will entail

“If you just shut those [DRPs] Media and Publicity for Shops off, you now have no customer vis-

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DRPs [without a plan] and think you’ll be fine. I think that’s a dangerous trap for shops. We’ve seen that happen.” Aaron Schulenburg of SCRS agreed each business has to evaluate its own situation. “I don’t think any one model is right or wrong,” he said. “There’s a lot of successful businesses up here [on this panel] and in the audience and in our membership base that have found success in every type of model.” He said the current situation does provide collision repairers with an opportunity to “prioritize where their profitability lies,” noting even large multi-shop operations (MSOs) that focus on DRP work are saying they are evaluating which of those programs offer the best fit. Ron Reichen of Precision Body & Paint, which is opening its fifth

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location in Oregon this year, said he sees too many shops operate based on fear. “Fear is an emotion, and good business decisions aren’t based on emotion,” Reichen said. “We’ve al-

Oregon shop owner Ron Reichen said he sees too many shops making business decisions based on fear

ways believed that calculated risk is important. But the first part of that is ‘calculated.’ Do your research. Do your homework. Is it a good fit for you? “I think the insurance carriers have leveraged fear: ‘We’re going to shut you off and you’re not going to have any of our work.’ That’s a fallacy,” Reichen said. “Even if you’re a DRP model, you’re building relationships with that client base. Those

clients are still going to come back to you. They may change insurance carriers two or three or four times in their driving history. So [the insurer] doesn’t own that customer, but you do. Even if you are a DRP model, work at owning that customer. Then you can wean yourself off of [DRPs] and not make decisions out of fear. “Would you [be happy with] 20% less work if you made 20% more on the remaining 80%? Of course. That’s a calculated risk,” he added. Andy Tylka was operating a six-location MSO in Indiana until recently, when two MSOs in other markets chose to sell their businesses to Tylka rather than to a national MSO. That expanded his company to 15 shops in 2.5 years. He acknowledged his choice to stay with a DRP model is, as it is for many shops, based to a degree on fear. “Because, obviously, growth results in loans,” Tylka said. “So if I’m not having customers come into my shops, I’m not paying these loans, and I’m responsible for 185 families.” He said collision repairers should recognize the current back-

log the industry enjoys “won’t last forever.” All that said, he acknowledged he’s using this time to make some changes. “Those with the DRP model should be re-evaluating what relationships they do want to keep and which ones they don’t, even if they stay with a DRP model,” Tylka said. “That’s pretty much what we did.” Schulenburg said SCRS works to highlight collision repairers, like some of those on the panel, who have the confidence to operate in a model of their choosing, such as without DRPs. “I think there are a lot of businesses that I speak to that don’t realize there are businesses that operate that way,” Schulenberg said. “It’s not a matter of saying one model over another. But there are businesses that operate successfully in ways that may feel foreign, but it’s their degree of confidence that drives the success.” www.autobodynews.com

UPDATED DAILY

Purty to Lead Global Workplace Safety General Motors on May 27 announced Marcos Purty will be appointed vice president of global workplace safety, effective June 1. Purty will replace Jim Glynn, who will retire after more than 40 years of dedicated service, effective Sept. 1. Purty returns to GM from Amazon, where for the past 18 months he was vice president of North America fulfilment, Amazon Robotics Sortable Operations. Purty spent the first 25 years of his professional career with GM, beginning in 1994 at GM’s former Pontiac Assembly. Purty will report to GM Chair and CEO Mary Barra and report indirectly to Gerald Johnson, executive vice president of global manufacturing and sustainability. Purty built a strong leadership foundation in both operations and engineering. His extensive global experience began in 2002 with an international assignment at Oshawa Assembly in Canada. Source: GM

Gas Prices Jump in Leaps and Bounds, Setting Another New Record by Casey Harper, The Center Square

Gas prices spiked 10 cents in just two days the first week of June, setting new records almost daily. The national average price for a gallon of unleaded gasoline jumped five cents to $4.72 June 2, a record high according to AAA. That increase comes after AAA reported a nickel increase in prices the day before, which was its own record. The price of $4.62 on Memorial Day was an all-time high just a few days ago. California is the only state topping $6 per gallon, though several states are averaging more than $5 per gallon. All 50 states have an average price well over $4 per gallon. Diesel gasoline prices are also elevated with a national average price of $5.56, just below the record high of $5.58 set in May. As prices rise, Americans are increasingly feeling the pain at the pump. Surveys show that soaring inflation and gas prices

have already pushed many Americans to cancel or change their vacation plans. A recent poll from Echelon Insights found “75% of parents say they are concerned about the rising cost of everyday purchases like food or gas.” The poll also found 51% of families said they “changed or canceled plans for a family trip” due to inflation while 41% said they have “changed or canceled activities for my children like camp or extracurricular activities.” The recently released BMO Real Financial Progress Index, a quarterly survey from BMO and Ipsos, found 31% of surveyed American adults are “driving less to offset the soaring cost of gas.” “Prices across the board— from cars and gasoline to groceries and other everyday essentials—are rising at the fastest pace since the 1980s,” said Paul Dilda, head of consumer strategy for BMO Harris Bank.

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autobodynews.com / JULY 2022 AUTOBODY NEWS 37

WIN Names 2022-23 Officers, New Board Members The Women’s Industry Network (WIN) has named its 2022-23 Leadership Officers and Board of Directors. The WIN Board of Directors consists of representatives from numerous industry segments including collision repair organizations, distributors, suppliers, consultants, paint manufacturers, insurance companies and others. By making policy decisions that execute on the WIN vision and mission, the Board of Directors works to ensure the growth and viability of the organization by setting overall strategic direction and executing its signature programs and key initiatives. “The diverse experience, skill and talent brought by these industry professionals will keep WIN thriving, focused and on track with our mission,” said Tanya Sweetland, WIN 2022-23 chair. “I am looking forward to serving the WIN organization with this dynamic team of leaders as we head into our next strategic planning session.” Meet the 2022-23 WIN Officers and Executive Committee: Chair Tanya Sweetland, OEC

Vice Chair Susie Frausto, Boyd Group/Gerber Collision & Glass Immediate Past Chair Jenny Anderson, Entegral powered by Enterprise Treasurer Kathy Coffey, AkzoNobel Coatings Admin Vice Chair Liz Stein, OEC Secretary Laura Kottschade, Jerry’s ABRA Auto Body & Glass New Board Members for 2022-23: Hannah Whitesides, Maaco (Driven Brands) Holly Whitley, Gerber Collision & Glass Blair Womble, Caliber Collision Continuing their service on the Board in 2022-2023: Janette Andrade, Consolidated Dealers Co-Operative, Inc. Kristle Bollans, Hertz Jeanne Esquivel, Entegral powered by Enterprise Trista Anger, BASF Kimberly Frasher, Axiom Accident & Hail Repair Kathy Mello, TGIF Body Shop, Inc. WINConnect Program Expands In Second Year

Designed to increase networking and career building opportunities among its members, the WINConnect program is one of the key initiatives for WIN in the 2022-23 year. WINConnect is available exclusively to WIN members interested in expanding their professional capabilities and knowledge. Participants of the WINConnect program will gather virtually in monthly cohort sessions where they will be able to network and learn throughout the year. Sessions will include a mix of small group check-ins along with professional and career development sessions led by coaching experts. “This initiative will enable WIN members to connect regularly, share experiences and further develop industry talent,” said Frausto. “Working with professional business coaches is important for women who are looking to excel in the collision repair industry.” The second chapter of the WINConnect program will run from July 2022 to May 2023 with its carefully selected cohorts meeting every other month. WIN is making a strategic in-

vestment to fund much of program’s facilitation expenses, though there is a small financial commitment ($100) in addition to the WIN membership fee. Accommodations are available for WIN members in need of additional financial assistance. In brief, the WINConnect initiative will further service WIN members by: • Making consistent and meaningful connections among women in the industry • Sharing experiences and learning from others in an authentic, confidential environment • Building key business skills and acumen applicable across industry segment and experience level • Developing and strengthening a professional support network All current WIN members are eligible and encouraged to participate. To sign up for WINConnect today, visit: https://thewomensindustrynetwork.site-ym.com/page/connect Not a WIN Member yet? Sign up here: https://thewomensindustrynetwork.site-ym.com/page/Membership Source: WIN

Porsche Genuine Parts and Service, only at your local authorized Porsche dealer.

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So. California

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KEARNY MESA HYUNDAI CALIFORNIA Circle Porsche

Long Beach, CA 562-494-1911 562-343-5385 Fax parts@cirlceporsche.com

IDAHO Porsche of Boise

Boise, ID 800-621-1775 208-672-3494 Fax partspc@lylepearson.com

38 JULY 2022 AUTOBODY NEWS / autobodynews.com

The RIGHT COLLISION PARTS

San Diego 4797 Convoy St.

LITHIA HYUNDAI OF FRESNO

800-469-9731

Fresno 5596 N. Blackstone Ave.

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

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Usage-Based Auto Insurance Takes Center Stage as Satisfaction Flatlines A record high number of serious collisions, skyrocketing used-vehicle prices and surging repair costs have created an unenviable scenario for auto insurers: raise rates or go out of business. It should come as little surprise that the J.D. Power 2022 U.S. Auto Insurance Study, released June 13, found customer satisfaction with the price of auto insurance has declined sharply, but notable industry efforts to improve customer engagement has kept overall customer satisfaction at a level similar to a year ago. “The current situation is a tough one for auto insurers, but it is not impossible in the current inflationary environment to build customer satisfaction and retention,” said Robert Lajdziak, director of insurance intelligence at J.D. Power. “J.D. Power finds two bright spots in the data for insurers. “First, those insurers that are transparent and notify customers in advance of price increases can blunt the negative effects of a price increase,” Lajdziak said. “Second, usage-based insurance is growing quickly, with an all-time high number of customers adopting these programs and due to their experience using them, overall

customer satisfaction levels have significantly risen.” Following are some of the key findings of the 2022 study: • Rising prices stifle customer satisfaction: Overall customer satisfaction with auto insurance providers is 834 (on a 1,000-point scale), down from 835 a year ago. However, customer satisfaction with the price of their policies is 769, down a significant five points from 2021. • Usage-based insurance sees record adoption: Participation in usage-based insurance programs, which use telematics technology to monitor driving habits and assign risk and pricing accordingly, has doubled since 2016, with 16% of auto insurance customers now participating in such programs. Price satisfaction among customers participating in these programs is 59 points higher, on average, than among customers overall. • It pays to get out in front of bad news: Premium increases do not bode well for customer satisfaction, but insurers that are proactive about such increases and notify customers in advance are able to mitigate the negative effects they generate. In the

past year, 59% of customers experiencing a price increase were notified in advance by their insurer---up from 44% in 2016—and overall satisfaction scores are 37 points higher, on average, among those pre-notified customers. The phone is the most effective channel for this type of notification. Agents benefit when customers use online self-service tools: When customers engage with their insurer via both digital channels and live channels—such as agents or customer service representatives (CSRs)—satisfaction with the live channel increases. The reason is efficiency, as customers can handle transactions quickly while spending more valuable time with an agent or CSR. A multi-channel strategy is a successful approach, and the same is true when live channels are added for customers who primarily take a digital-first approach. The study measures customer satisfaction with auto insurance in 11 geographic regions. Highest-ranking auto insurers and scores, by region, are as follows: California: Wawanesa (879) (for a third consecutive year) Central: Shelter (866) (for a second

SO. CALIFORNIA

NO. CALIFORNIA

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Santa Cruz Subaru

San Diego (800) 548-9124 (858) 300-3331 Fax Mon.-Fri. 7-6 cguth@kmhyundaisubaru.com www.kearnymesasubaru.com

Subaru of San Bernardino

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consecutive year) Florida: The Hartford (860) Mid-Atlantic: Erie Insurance (867) New England: Amica Mutual (862) (for a 10th consecutive year) New York: New York Central Mutual (834) North Central: Erie Insurance (876) (for a second consecutive year) Northwest: The Hartford (842) Southeast: Farm Bureau Insurance-Tennessee (876) (for an 11th consecutive year) Southwest: State Farm (848) Texas: Texas Farm Bureau (873) (for an 11th consecutive year) The 2022 U.S. Auto Insurance Study, now in its 23rd year, examines customer satisfaction in five factors: billing process and policy information; claims; interaction; policy offerings; and price. The study is based on responses from 36,935 auto insurance customers and was fielded from January through April 2022. For more information about the U.S. Auto Insurance Study, visit https://www.jdpower.com/business/ resource/jd-power-us-auto-insurance-satisfaction-study. Source: J.D. Power

San Bernardino (909) 888-8686 (909) 571-5483 Fax Mon.-Fri. 7:30-7; Sat 7:30-5 parts@subarusb.com www.sbsubaru.com

Santa Cruz (888) 844-7131 (831) 420-1402 (831) 420-1923 Fax Mon.-Fri. 7:30-6; Sat. 8-5 parts@santacruzsubaru.com www.santacruzsubaru.com WASHINGTON

Eastside Subaru Kirkland (425) 820-1676 Mon.-Fri. 7-4 ldarwin@eastsidesubaru.com

NO. CALIFORNIA

Elk Grove Subaru

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autobodynews.com / JULY 2022 AUTOBODY NEWS 39

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Concord Kia

Concord (888) 811-3058 (925) 685-2952 Fax M-F 8am - 5:30pm Sat 9am - 1pm

Rosesville Kia

Roseville (916) 783-8129 (916) 783-1005 Fax M- F 7am-6pm Sat 8am-4pm parts@rosevillekia.com www.rosevillekia.com

SO. CALIFORNIA AllStar Kia

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Car Pros Kia Glendale Glendale (818) 745-1103 (818) 244-0017 Fax M-F 7am - 6pm duncan@carpros.com

Car Pros Kia Huntington Beach Huntington Beach (714) 274-6178 (714) 847-4410 Fax M-F 7am - 6pm Sat 8am - 4pm jasonr@carpros.com

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40 JULY 2022 AUTOBODY NEWS / autobodynews.com

Contact These Dealers For Your Kia Genuine Parts Needs Citrus Kia

Ontario (800) 583-7042 (909) 390-0948 (909) 390-0982 Fax scunningham@citrusmotors.com www.citrusmotors.com M-Sat 7am - 6pm Free Local Delivery Ask for Ike, Jimbo, Chris, Juan, Sean, Jeff Se Habla Español

Kearny Mesa Kia

San Diego (800) 635-6669 (858) 560-5033 (858) 560-9648 Fax Largest wholesaler in San Diego with 17 delivery trucks

Kia of Irvine

Irvine (855) 847-3592 (949) 777-2342 Fax

North County Kia

Escondido (760) 945-9939 (866) 888-3074 Fax parts@autogrp.com www.northcountykia.com M-F 7am - 6pm In San Diego Over 10 Years

NEVADA Jim Marsh Kia

Kia of Alhambra

Las Vegas (877) 274-3820 (702) 946-6084 Fax M-F 8am - 6pm Sat 8am - 2pm johnd@jimmarshauto.com

Kia of Carson

WASHINGTON

Alhambra (626) 289-7803 (626) 289-8807 Fax kip@kiaofalhambra.com

Carson (310) 221-9101 (310) 507-8595 Fax M-Sat 7am - 7pm Sun 8am - 5pm www.KiaofCarson.com

Car Pros Kia Renton Renton (425) 204-6635 (425) 793-3889 Fax M-F 7am - 6pm Sat 8am - 5pm jgaeir@carpros.com

Kia of Downtown LA Los Angeles (213) 342-0923 (213) 342-0980 Fax M-F 7am - 7pm www.kiaofdtla.com

Lee Johnson Kia

Kirkland (425) 823-0188 (425) 284-1790 Fax M-F 7am - 5:30pm Sat 7am - 5pm tthompson@leejohnson.com

Genuine Kia Parts* are specifically manufactured from original engineering specs to ensure the same exceptional quality, performance and safety as when you first drove your Kia off the lot. Plus, they’re covered by our 12-month Replacement Parts Limited Warranty.

not installed by an Authorized Kia Dealer are covered for 12 months from the part only, and any labor charge is the consumer’s responsibility. autobodynews.com / JULY 2022 AUTOBODY NEWS 41

Total U.S. Automotive Aftermarket Sales Forecasted to Increase 8.5% in 2022 The automotive aftermarket continues to demonstrate its market strength with higher-than-expected sales in 2021 in the wake of a slow economic recovery from the COVID-19 pandemic in the U.S. Total U.S. light duty automotive aftermarket sales are forecasted to increase 8.5% in 2022, totaling $356.5 billion, according to the “2022 Joint Channel Forecast Model” produced jointly by the Auto Care Association and the Automotive Aftermarket Suppliers Association (AASA). This data will be examined in a joint, member-exclusive webinar led by Shane Norton of S&P Global Mobility at 1 p.m. EDT June 9. An additional 5% growth is expected for 2023 and growth will average more than 3% in 2024, bringing the light-duty aftermarket to $401.5 billion by 2025. The compound average annual growth rate from 2019 to 2022 will be 5.7%, more than making up for losses seen in 2020 due to the pandemic. “Year after year, the auto care industry continues to show its strength and reliability,” said Bill

Hanvey, president and CEO, Auto Care Association. “In the midst of the highest gas prices on record and an inflation rate at a 40-year high, coupled with persistent supply chain disruptions and war in Eastern Europe, vehicle miles driven, vehicles in operation and consumer spending all increased in 2021 and are projected to increase into the coming years as well.”

“The automotive aftermarket once again shows its resiliency with a stronger than expected recovery from the pandemic,” said Paul McCarthy, president and CEO, AASA. “In fact, the automotive aftermarket rose nearly 25% in the past two years despite ongoing headwinds, and we are excited to see the

Mazda Mazda North American Operations (MNAO) reported total May sales of 15,312 vehicles, a decrease of 63.7% compared to May 2021. Year-to-date sales totaled 127,673 vehicles; a decrease of 18.5% compared to the same time last year. With 24 selling days in May, compared to 26 the year prior, the company posted a decrease of 60.7% on a Daily Selling Rate (DSR) basis. CPO sales totaled 5,077 vehicles in May, a decrease of 26% compared to May 2021. Hyundai Hyundai Motor America reported May retail sales of 59,432 units, a 30% decrease compared with May 2021. May was an all-time record month for Santa Cruz retail sales. Hyundai had no fleet sales in May 2022. Kia Kia America announced May sales

of 57,941 units with the Niro family of hybrid, PHEV and EV models posting best-ever May sales, up more than 28% over the previous record set in 2021. In addition, the first full month of deliveries of the all-new Sportage HEV charged ahead in May, with 2,417 units sold. Sales of Kia’s electrified models were up 132% over the previous May record set in 2021, and up 5% over the all-time monthly sales record for the vehicle category set in March. Subaru Subaru of America, Inc. (SOA) reported 42,526 vehicle sales for May 2022, a 24.8% decrease compared with May 2021 (56,558). The automaker also reported year-to-date sales of 220,620, a 20.8% decrease compared with the same period in 2021. Subaru continues to face inventory challenges as the result of microchip and supply chain issues affecting automakers across the globe. Source: Mazda, Hyundai, Kia, Subaru

42 JULY 2022 AUTOBODY NEWS / autobodynews.com

channel And more The market sizing and forecast are conducted on behalf of the Auto Care Association and AASA by S&P Global Mobility (formerly the auto-

“The automotive aftermarket once again shows its resiliency with a stronger than expected recovery from the pandemic,” — Paul McCarthy a battle for market share. With that, we’ll see one more strength of the aftermarket emerge, collaboration with the right partners to ensure the same pace of success in this next phase of industry dynamics.”

Automakers Report May Sales Automakers on June 1 began releasing May sales results.

landmark market size of $400 billion in 2025. But as the industry advances to that landmark number, look for a new challenge to emerge as we may shift from a market supported by high demand and availability to

Key data in the joint channel forecast model include: • Market trends influencing the aftermarket • A 2021-2025 review of industry growth and forecasts • Industry sales by channel including history and forecasts • Industry sales by distribution

motive team at IHS Markit), a leading business intelligence firm. The forecast is based on the U.S. Census Bureau’s Economic Census; IMR Inc.; and proprietary data, economic analysis and forecasting models from S&P Global Mobility. The Joint Channel Forecast Model is available in the Auto Care Association’s 2023 Auto Care Factbook at digital.autocare.org/ 2023factbook and in AASA’s Aftermarket Size & Forecast Report available at https://www.aftermarketsuppliers.org/resource. Source: Auto Care Association

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The Dealers Below Are Mercedes-Benz Genuine Parts Specialists:

CALIFORNIA

Mercedes-Benz of Valencia Valencia

661-753-5526 661-753-5525 Fax M-F 8am - 5pm

josh.henderson@mbzvalencia.com

SO. CALIFORNIA

Galpin Mazda Van Nuys

818-778-2005

Fax 818-778-2090 www.galpin.com

Genuine NISSAN & INFINITI OEM Wholesale Parts are Superbly Crafted to Strict Quality Standards. THE FOLLOWING DEALERS PROUDLY STOCK GENUINE PARTS FOR YOUR NISSAN OR INFINITI REPAIRS.

NISSAN S. CALIFORNIA

N. CALIFORNIA

DOWNEY NISSAN

NISSAN OF VAN NUYS

Downey

Van Nuys

562-334-1188

818-374-4421

(562) 334-1195 Fax M-F 7-5 wholesaleparts@downeynissan.com

(818) 787-8400 (818) 908-9520 Fax M-F 7-6:30, Sat. 7-6 wholesaleparts@vannuysnissan.com www.nissanofvannuysparts.com

NISSAN OF BAKERSFIELD Bakersfield

888-402-6915

TEMECULA NISSAN

(661) 835-0389 Fax M-F 7-6, Sat. 8-5 www.nissanofbakersfield.com

Temecula

951-972-8430 (951) 972-8396 Fax M-F 7-6, Sat. 7-6, Sun. 8-5 wholesaleparts@temeculanissan.com

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(559) 436-6040 (559) 436-0743 Fax M-F 7-6, Sat. 8-4 etaylor@lithia.com

FUTURE NISSAN Roseville

916-677-5251 (916) 786-0743 Fax M-Sat. 7:30-6 wholesale@futurenissan.com Parts.FutureNissan.com

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N. CALIFORNIA

INFINITI TUSTIN

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Colma

714-832-6252

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650-488-2877

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(818) 787-8400 (818) 809-2727 Fax M-Sat. 8-5 wholesaleparts@vannuysinfiniti.com www.infinitiofvannuys.com

M-F 7-6 parts@goldenstatenissan.com

Ask for Tom Reeser- Wholesale Mgr.

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autobodynews.com / JULY 2022 AUTOBODY NEWS 43

CIF to Hold Gala July 20 As the industry gathers for industry week in Pittsburgh, PA, the Collision Industry Foundation (CIF) is thrilled to announce its 11th Gala event will be held on July 20 at Howl at the Moon, in close proximity to the Omni William Penn Hotel. Starting at 6:30 p.m. ET, directly following the Collision Industry Conference (CIC) special session, you can expect a great time, with great food, open bar, entertainment, dueling pianos, silent auction and a live raffle with lots of prizes. Through the generous support of many industry donors, continuing the vital mission of CIF is possible. Thanks to these donors, hundreds of individuals have received disaster relief assistance over the years, including survivors of hurricanes, wildfires, flooding or other significant losses. Register at www.cifgala.org. Source: CIF

UTI Opening Campuses to High School Juniors Interested in Automotive Technician Training As part of its ongoing effort to address workforce need for skilled transportation technicians, Universal Technical Institute is bringing its three-week Ignite program back to full capacity at its UTI campuses nationwide this summer. The program, which is free to high school juniors, offers students an introduction to the training they’ll need to prepare to enter the workforce as a technician in the transportation industry. Ignite participants are given an introductory sample of the technician training programs completed by fulltime UTI students. Students explore career opportunities in the transportation field and receive hands-on training on current technologies in UTI’s state-of-the-industry classrooms and labs.“It’s important to educate high school students about the demand for skilled technicians, and the extensive opportunities that exist in transportation and the skilled trades,” said UTI CEO Jerome Grant. “Our summer Ignite program gives students invaluable real-world training and can help open doors to lifelong careers they may have not considered. We’re ex-

cited to bring the program back to our campuses at full capacity this year, with the goal of hopefully providing our employer partners with more talented technicians in the future.” Industry demand remains strong for trained automotive and diesel technicians. The U.S. Department of

“It’s important to educate high school students about the demand for skilled technicians, and the extensive opportunities that exist in transportation and the skilled trades,”” — Amber Ritter Labor projects a combined annual average of 111,000 job openings nationwide in the automotive, diesel and collision repair industries. “It’s been encouraging to see growth in the Ignite program. We look forward to welcoming new students to our campuses this summer and opening their eyes to the educational opportunities available to them after high school,” said Sherrell Smith, executive VP of campus operations and services at UTI. “These students are the future of the trade, and it’s promising to see

YOU ONLY GET ONE CHANCE AT THE FIRST REPAIR.

Century West BMW

North Hollywood 818-432-5819 818-769-1520 Fax M-F 8am-6pm Sat 8am-5pm eperez@centurywestbmw.com

New Century BMW Alhambra 626-576-2867 www.ncbmw.com

FL. Participation steadily increased in 2019, before the program went on hiatus during the COVID-19 pandemic. At the end of the three-week program, students have the opportunity to earn UTI credit that can be applied when they enroll.The Ignite program is now accepting applications across UTI’s campuses in Arizona, California, Florida, Illinois, North Carolina, Pennsylvania, New Jersey and Texas. For more information or to enroll, visit www.uti.edu/ignite. Source: UTI

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so many motivated, goal-driven young people willing to spend part of their summer taking our classes and getting a jumpstart on training for a career.” UTI launched Ignite nationwide in summer 2018 following a successful pilot program at campuses in Avondale, AZ.; Houston, TX; and Orlando,

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MINI of Universal City Universal City 818-452-1219 818-508-5082 Fax M-F 8am-5pm Sat 8am-5pm allanv@miniuniversalcity.com

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Ford EVs Post New Sales Record in May Ford sold 154,461 vehicles in May, a 4.5% decrease from its May 2021 sales figures, but a 3.5% increase in the company’s market share over this time a year ago—to 13.5%—despite the continued global industry semiconductor chip shortage.

Gains came from battery electric vehicles, F-Series and Ford SUVs. Nearly 50% of retail sales were comprised of previously placed orders, compared to approximately 9% at this time last year. “While the global semiconductor chip shortage remains an issue for the industry, our inventory continues to turn at record rates with nearly 50% of our retail sales com-

ing from previously placed orders,” said Andrew Frick, vice president of sales, distribution and trucks, Ford Blue. “Our newest models, including Bronco, Bronco Sport and Maverick, continue to enhance our sales volume. Our electric vehicle sales, with the addition of F-150 Lightning this month, increased 222%—growing at almost four times the rate of the industry.” Ford battery electric vehicle sales totaled 6,254 for the month, up 222% over last year, while growing almost four times faster than the overall U.S. electric vehicle segment in May. The Mustang Mach-E posted a new monthly sales record—sales up 166% over last year. E-Transit sales had its best monthly sales since its launch earlier this year with 874 vans sold, while F-150 Lightning recorded its first customer sales at the end of May. F-Series was the only full-size pickup nameplate to post a gain in May over a year ago, with sales up 6.9%. F-Series was able to improve

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on its sales lead, outselling its second-place competitor by 24,300 pickups through May. F-Series continued to turn at record rates, while 59% of its retail sales in May came from previously placed orders. Maverick added an additional 6,089 truck sales in May, while turning on dealer lots in just five days. 97% of Maverick retail sales in May came from previously placed orders. Bronco family, Maverick and Mustang Mach-E continued to be a hit with customers new to Ford, with nearly 70% of sales coming from competitive conquests. Ford’s newest SUVs, Bronco and Bronco Sport, totaled 18,985 vehicles, while improved inventory flows gave both Explorer and Edge a sales gain of 18.7 and 81.2% respectively. Customers are equipping new vehicles with Ford’s BlueCruise hands-free driving technology. More than 38,000 customers have activated the BlueCruise feature, driving a combined 4.5 million miles using the technology. Source: Ford

SO. CALIFORNIA Galpin Volkswagen North Hills

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Volkswagen Pasadena Pasadena

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Fax: 626-568-0387 M-F 7:30am-6pm; Sat 8am-6pm

Global Finishing Solutions, 1Collision Partner Global Finishing Solutions (GFS) is excited to announce a new partnership program with 1Collision. GFS is dedicated to providing high-quality finishing equipment and production-boosting technologies to help automotive body shops and collision repair centers grow their business. 1Collision is an organization of independent and dealer-owned collision repair businesses, offering corporate-level support in all aspects of collision repair center operations. Under the partnership program, GFS will provide 1Collision affiliates with lifelong support and service of industry-leading finishing equipment and technologies that improve paint finish quality, increase throughput and exceed performance requirements. 1Collision affiliates can also take advantage of GFS’s expansive distribution network, which provides support on a local level. Source: Global Finishing Solutions

NO. CALIFORNIA Dirito Bros. Walnut Creek Volkswagen Walnut Creek

925-934-8459

Fax: 925-934-0786 parts@dirito.co

Niello Volkswagen Sacramento

916-482-5790

Fax: 916-481-9579 Mon-Sat 8am-5pm vw.parts@niello.com

WASHINGTON

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University Volkswagen Seattle

206-634-8200

Fax: 206-547-1581 M-F 7am-6pm parts@uvwaudi.com www.universityvw.com

autobodynews.com / JULY 2022 AUTOBODY NEWS 45

ASE Agenda, Speakers Announced

Toyota Auto Body California Donates Nearly 1,000 Quarter Panels to Collision Students Through CREF

The ASE Education Foundation has announced the agenda and keynote speakers for the upcoming ASE Instructor Training Conference. Scheduled for July 12-15 at the Embassy Suites Hotel in Frisco, TX, the conference will feature several informative panels plus a timely keynote panel discussion. Hosted by the ASE Education Foundation, the training conference is open to high school and college instructors from auto, truck and collision repair programs nationwide. The keynote session will be a panel discussion moderated by Catherine “Cat” Treanor, UK business development manager for Electude. The discussion will cover women in auto repair and will focus on what changes need to be made to training programs and workplaces to make them more welcoming to everyone, as well as identifying barriers and ways to overcome them by people who have lived it. Source: ASE Education Foundation

Toyota Motor North America, Inc. believes in taking charge of the future—and that’s exactly why it connected the Collision Repair Education Foundation (CREF) to Toyota Auto Body California, Inc., for a donation of 944 quarter panels, valued at $632,480, which will benefit collision repair educational programs around the country. Quarter panels will be distributed to more than 100 schools, immediately impacting more than 3,000 students by allowing them to practice the skills needed to success in this field; however, the long-term impact will be much higher as instructors often reuse these panels in multiple semesters with many more students. “Technician shortage concerns come up every time I talk to our certified collision centers, field offices and the industry,” Toyota Motor North America Collision Repair & Refinish Manager Kazuyo Jones said in explaining why it’s important to connect the industry with schools. “When Toyota comes across those part or vehicle dona-

tion opportunities, our organization wants to utilize those opportunities for people who need them. We need to energize the industry by doing what we can to support its future workforce.”

across the U.S.,” said CREF Director of Marketing and Project Management Amber Ritter. “This is truly an example of a donation that allows students to learn, practice and hone the important skills that lead to

“This type of in-kind donation is mentioned as one of the most needed items by collision programs across the U.S.” — Amber Ritter Collision education programs are frequently underfunded, limiting instructors’ ability to purchase vehicle parts to use while training students. By partnering with CREF, Toyota is helping ensure that the next generation of collision repair professionals receive the hands-on experience necessary to graduate with the skills they need to successfully join the industry as entry-level technicians. “This type of in-kind donation is mentioned as one of the most needed items by collision programs

rewarding careers. Repetitions are an important part of the learning process, and Toyota’s donation is helping to make that possible.” Industry members interested in getting involved and supporting CREF’s efforts to assist secondary and post-secondary collision repair training programs should contact Brandon Eckenrode, managing director, at 312-231-0258 or Brandon.Eckenrode@ed-foundation. org. Monetary donations can be made online. Source: CREF

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autobodynews.com / JULY 2022 AUTOBODY NEWS 47

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48 JULY 2022 AUTOBODY NEWS / autobodynews.com

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July 2022 West Edition

Articles inside

Members��

Pace in 2022 ��

Enables Her to ‘Pay It Forward’ ��

Perspective ��

Shortage of Collision Repair Technicians��

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Auto Body in California’s Bay Area ��

July 2022 West Edition

Articles inside

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Pace in 2022 �����������������������������������������������

Enables Her to ‘Pay It Forward’ �������������������

Perspective �������������������������������������������������

Shortage of Collision Repair Technicians�����

Right Time���������������������������������������������������

NABC Announces Mitchell as Sponsor �����������

of Insurance Adjusters in Shops������������������

Available in California’s High Desert��������������

Auto Body in California’s Bay Area �������������

Members��

Pace in 2022 ��

Enables Her to ‘Pay It Forward’ ��

Perspective ��

Shortage of Collision Repair Technicians��

Right Time��

NABC Announces Mitchell as Sponsor ��

of Insurance Adjusters in Shops��

Available in California’s High Desert��

Auto Body in California’s Bay Area ��