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38 YEARS

WEST EDITION

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

AUTOBODYNEWS.COM

Vol. 37 / Issue 9 / September 2019

U. S. District Judge Dismisses Repairify’s Lawsuit Against AirPro Based on Venue, Without Prejudice

Solving the Tech Shortage: Focusing on Kina’ole: Doing the Right Thing for the Right Reason

by Chasidy Sisk

by Stacey Phillips

On July 15, U. S. Southern District of Texas Judge Ewing Werlein Jr. released a final judgment in the lawsuit filed against AirPro Diagnostics by asTech parent company Repairify. The case was dismissed because Judge Werlein found there were insufficient grounds for Repairify to sue AirPro in the federal Texas district; however, the ruling merely addressed the venue, not the merits of the case on relevant laws. Because the case was dismissed without prejudice, Repairify is permitted to refile the law-

suit, though the company has not yet indicated whether it intends to do so. In a statement released on July 17 about what it referred to as “asTech’s second unsuccessful attempt to use litigation to damage AirPro’s growth in the marketplace,” AirPro President and CEO Lonnie Margol said, “AirPro remains confident that its ‘Truth Campaign,’ listed on our website, can easily be verified through an independently conducted, side-by-side comparison and renews its challenge to asTech to participate. We are, however, confident that See Lawsuit Against AirPro, Page 12

Mid-Year Update From CAA Chapter President Tiffany Silva by Ed Attanasio

Tiffany Silva is a second-generation shop owner whose father Ed Cichon opened Accurate Auto Body in Richmond, CA, 36 years ago. In 2017, she and her husband/co-owner Dan Silva opened a new 27,000-squarefoot state-of-the-art facility that fixes 150-200 cars every month. For the past 15 years, Silva has served the California Autobody Association (CAA) by holding every office available within the organization, as well as being the president of the organization’s East Bay

Samantha McCauley, a collision repair refinish instructor at Hammond High School in Hammond, IN, said it can be very challenging to acquire the proper tools and equipment needed in her classroom to properly instruct students.

Chapter since.

How long have you been a chapter president for CAA and how has the industry changed during that time?

Q:

I became a board member of the East Bay Chapter in 2012 and became the chapter president in 2013 and the state president in 2019. I’m currently the president at the chapter and state levels. The technology has changed everything drastically within just the last six years.

A:

See Tiffany Silva, Page 26

Toby Chess presented Samantha McCauley, a collision repair refinish instructor at Hammond High School in Hammond, IN, with two full toolboxes during the CIC in July, courtesy of March Taylor Scholarship Fund.

“There are a lot of times that I request equipment and I’m sure other teachers across the country are in the same predicament,” she said. “Our administration says to put our requisition forms in; every week for months, we follow up to find out what happened to the requisition forms only to find out the funds are already gone.” McCauley recently received a special gift to help alleviate that frustration. During the Collision Industry Conference (CIC) in Indianapolis, Toby Chess presented McCauley with two toolboxes, one for her own needs and the other for her students to use. The toolboxes were awarded on behalf of the March Taylor Scholarship Fund. “I truly appreciate what you are See Focusing on Kina’ole, Page 20

ASA Northwest Conference Generates Energy and Fresh Solutions by Chasidy Rae Sisk

On June 27-30, ASA Northwest held its 2019 Summer Retreat and Management Conference at the Clearwater Resort in Suquamish, WA, with nearly 80 industry professionals in attendance. Conrad Jobst Jr., ASA Northwest chairman of the board, stated, “After receiving the weather report predicting rain for the entire weekend, our members were treated to beautiful weather which added energy to the event. I always learn a few things at each of these retreat gatherings. The younger members bring fresh solutions to shop operations and industry issues which is so refreshing.” During the event, ASA Northwest held one of its four annual meetings, reviewing the association’s accomplishments thus far in 2019

and planning for upcoming events. The roundtable on Friday, June 28 was allotted three hours instead of the usual two hours and according to Jobst, “The conversation continued

The conference was held at the Clearwater Resort in Suquamish, WA. Credit: ASA Northwest

after we adjourned, so the additional time was beneficial and we are thankful to everyone who participated. I took several pages of notes to share back at work.” See ASA Northwest, Page 28

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SEPTEMBER 2019 AUTOBODY NEWS / autobodynews.com


Tesla is the Undisputed Leader in EV Awareness in the US

CONTENTS Armed Suspect Shot, Deputy Airlifted After Standoff in Victorville, CA . . . . . . . . . . . . . . . 6 Bernie’s City Garage in Vacaville, CA, Repairs Giraffe Sculpture . . . . . . . . . . . . . . 32 CAA Regrets to Announce the Passing of Past President Warwick Bryan. . . . . . . . . . . 56 Caliber Collision Gifts Vehicle to a California Mother in Need . . . . . . . . . . . . . . . 6 Carlsbad, CA, Gives Green Light to Tesla . . . . . 22 Dozens of Jeep SUVs Destroyed After Nevada Train Derailment . . . . . . . . . . . . . . . 10 Four Automakers Reach Emissions Deal With California, Bucking Rollback . . . . . . . . 30 GM Delays Deployment of Driverless-Taxis in San Francisco . . . . . . . . . . . . . . . . . . . . . . 4 Mid-Year Update From CAA Chapter President Tiffany Silva . . . . . . . . . . . . . . . . . . . . . . . . . 1 Regal Collision in Vallejo, CA, Gets Major Meows for Cat Tower . . . . . . . . . . . . 58 Registration Open for SCRS’ RDE Series at 2019 SEMA Show in Las Vegas. . . . . . . . 32 SEMA Seeks Young Vehicle Builder in Seattle . . 34 Toyota to Pay $15.8 Million in California Dealership Lawsuit . . . . . . . . . . . . . . . . . . . 24 Uplift Clark County, WA, Celebrates Their Fifth Year of Giveaways . . . . . . . . . . . . . . . . 36 Western Association Event Announcements: September 2019. . . . . . . . . . . . . . . . . . . . . 16

ASA Northwest Conference Generates Energy and Fresh Solutions. . . . . . . . . . . . . . 1 AutoNation Names Cheryl Miller CEO, President . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Caliber Collects Over $900,000 in Donations. . 45

Anderson - Check OEM Procedures Before Disconnecting, Reconnecting Batteries . . . . 50 Ledoux - 50 Years - A Retrospective . . . . . . . . 46 Ledoux - Hey Buddy … Got a Millisecond? . . . 69 Phillips - How to Leverage the Certified Repair Model . . . . . . . . . . . . . . . . . . . . . . . 57

AAPEXedu to Address Aftermarket Trends . . . . 76

See EV Awareness, Page 14

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli, Gary Ledoux Advertising Sales: Joe Momber, Bill Doyle, Norman Morano, Kelly Hall (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bill Pierce Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Alexis Wilson Accounting Manager: Heather Priddy Editorial/Sales Assistant: 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. ©2019 Adamantine Media LLC.

Accuvision-3D . . . . . . . . . . . . . . . . . . . . . . . . 26

Hyundai Wholesale Parts Dealers . . . . . . . . . . 76

AkzoNobel Coatings, Inc. . . . . . . . . . . . . . . . . 17

Industrial Finishes and Systems . . . . . . . . . 7, 80

Alloy Wheel Repair Specialists, LLC . . . . . . . . 31

Kearny Mesa Subaru-Hyundai . . . . . . . . . . . . 60

Anchorage Chrysler-Dodge-Jeep-Ram. . . . . . 34

Kia Motors Wholesale Parts Dealers . . . . . 66-67

Audi Burlingame . . . . . . . . . . . . . . . . . . . . . . 61

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

Audi Wholesale Parts Dealers. . . . . . . . . . . . . 75

Larry H. Miller Chrysler-Jeep-Dodge-Ram . . . 12

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

Launch Tech USA . . . . . . . . . . . . . . . . . . . . . 79

AutoNation Roseville. . . . . . . . . . . . . . . . . . . 8-9

Malco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Axalta Coating Systems . . . . . . . . . . . . . . . 2, 22

Matrix Electronic Measuring. . . . . . . . . . . . . . 39

Blowtherm USA . . . . . . . . . . . . . . . . . . . . . . . 59

Mazda Wholesale Parts Dealers . . . . . . . . . . . 74

BMW Wholesale Parts Dealers . . . . . . . . . . . . 72

Mercedes-Benz Wholesale Parts Dealers . . . . 74

Car Pros Kia. . . . . . . . . . . . . . . . . . . . . . . . . . 62

MINI Wholesale Parts Dealers. . . . . . . . . . . . . 72

Car Pros Kia Renton. . . . . . . . . . . . . . . . . . . . 50

Montipower Americas . . . . . . . . . . . . . . . . . . 10

CCC Information Services, Inc. . . . . . . . . . . . . 35

MOPAR Wholesale Parts Dealers . . . . . . . . . . 43

Certified Automotive Parts Association . . . . . . 12

Moss Bros. Chrysler-Jeep-Dodge. . . . . . . . . . 27

Chrysler-Dodge-Jeep-Ram of Seattle. . . . . . . 65

Nicolosi Distributing, Inc. . . . . . . . . . . . . . . . . 36

Classifieds . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

Nissan/Infiniti Wholesale Parts Dealers. . . . . . 71

Colortone Automotive Paints . . . . . . . . . . . . . 46

Penske Hyundai . . . . . . . . . . . . . . . . . . . . . . . 57

Courtesy Chevrolet San Diego . . . . . . . . . . . . 45

Podium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Cutter Chrysler-Dodge-Jeep-Ram . . . . . . . . . 32

Porsche Burlingame. . . . . . . . . . . . . . . . . . . . 61

Potential Hires. . . . . . . . . . . . . . . . . . . . . . . 42

Cyber Garage, LLC . . . . . . . . . . . . . . . . . . . . . 25

Porsche Wholesale Parts Dealers . . . . . . . . . . 68

State Farm Hit by Data Breach . . . . . . . . . . . . 76

Dave Smith Motors . . . . . . . . . . . . . . . . . . . . 51

Puente Hills Subaru . . . . . . . . . . . . . . . . . . . . 58

DCH Auto Group Temecula . . . . . . . . . . . . . . . 30

Rusnak/Pasadena Porsche. . . . . . . . . . . . . . . 14

Dent Fix Equipment . . . . . . . . . . . . . . . . . . . . 47

Sandberg Volvo Cars . . . . . . . . . . . . . . . . . . . 12

Diamond Standard Parts . . . . . . . . . . . . . . . . 53

SATA Dan-Am Company. . . . . . . . . . . . . . . . . 33

Dominion Sure Seal . . . . . . . . . . . . . . . . . . . . 48

SEMA Trade Show . . . . . . . . . . . . . . . . . . . . . 29

Downtown Motors of LA (Audi, VW) . . . . . . . . 64

Sherwin-Williams Automotive Finishes. . . . . . 13

Eckler’s Automotive . . . . . . . . . . . . . . . . . . . . 49

Sierra Chevrolet-Honda-Subaru . . . . . . . . . . . 52

ECS Automotive Concepts . . . . . . . . . . . . . . . 44

Sorbothane Soft-Blow Mallet . . . . . . . . . . . . . 20

Enterprise Rent-A-Car . . . . . . . . . . . . . . . . . . 54

Spanesi Americas . . . . . . . . . . . . . . . . . . . . . 28

Equalizer Industries, Inc. . . . . . . . . . . . . . . . . 23

Subaru Wholesale Parts Dealers. . . . . . . . . . . 69

First Auto Group. . . . . . . . . . . . . . . . . . . . . . . 56

Tacoma Dodge-Chrysler-Jeep-Ram . . . . . . . . 37

Ford of Kirkland . . . . . . . . . . . . . . . . . . . . . . . 65

The Bay Area Automotive Group . . . . . . . . . . . 55

Weidmann Named CIECA’s Executive Director . 34

Ford Wholesale Parts Dealers. . . . . . . . . . . . . 73

Tonkin Parts Center . . . . . . . . . . . . . . . . . 18-19

Why Is Ethics Important for Self-Driving Cars? . . 4

Galpin Motors . . . . . . . . . . . . . . . . . . . . . . . . 63

USI of North America . . . . . . . . . . . . . . . . . . . . 5

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

Vintage Flatz/Cumberland Products . . . . . . . . 38

GM Wholesale Parts Dealers . . . . . . . . . . . . . 77

Volkswagen Wholesale Parts Dealers . . . . . . . 70

Honda-Acura Wholesale Parts Dealers . . . 40-41

Volvo Wholesale Parts Dealers . . . . . . . . . . . . 72

Hyundai of Kirkland . . . . . . . . . . . . . . . . . . . . 65

WD-40 Company . . . . . . . . . . . . . . . . . . . . . . 11

Hyundai of Seattle . . . . . . . . . . . . . . . . . . . . . 65

Wedge Clamp Systems . . . . . . . . . . . . . . . . . 24

CIC: Regulators Show New Interest in ‘Most-Favored-Nation’ Clauses . . . . . . . . . . 54 DRIVE Anticipates Its Largest Event Ever . . . . . 18 Ford Warns Elon Musk That Tesla is Competing With the ‘Ultimate Disruptor’ . . . . . . . . . . . . 74 Garmat Builds Upon CARSTAR Partnership . . . 24 Heidi King Steps Down as Head of the NHTSA . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Hyundai and Kia Airbag Lawsuit Says Airbag Control Units Fail. . . . . . . . . . . . . . . . . . . . . 72 Industry Snapshot Survey Updated . . . . . . . . . 16 Model Y and Gigafactory 3 Heralds a Faster, More Profitable Tesla . . . . . . . . . . . . 64 NABC Names Kristle Bollans From Hertz as New Board Member . . . . . . . . . . . . . . . . 76 SCC’s New Dean Receives National Award . . . 52 Solving the Tech Shortage: Focusing on Kina’ole: Doing the Right Thing for the Right Reason . . 1 Solving the Tech Shortage: In-Prison Automotive Programs Provide Education & Training for

Tesla is the Undisputed Leader in EV

Too Many Openings & Too Few Techs— A Crisis With No End in Sight . . . . . . . . . . . . 38 U. S. District Judge Dismisses Repairify’s Lawsuit Against AirPro Based on Venue, Without Prejudice . . . . . . . . . . . . . . . . . . . . . 1

Wilson vs. Safelite Lawsuit Comes to an End NATIONAL

surveyed 2,503 consumers comprised of electric car owners, EV considerers and EV non-considerers, as well as 308 franchised dealers, to determine the gap between consumers’ and dealers’ barriers and expectations with the current EV realities in the United States.

Caliber Collision Expands Into Texas . . . . . . . . 14

Awareness in the US . . . . . . . . . . . . . . . . . . . 3 COLUMNISTS

There are several notable companies making all-electric vehicles, but among them, Tesla remains the undisputed leader when it comes to raising awareness for EVs. This was recently reflected in a study from Atlanta-based Cox Automotive, which

Through Court of Appeals . . . . . . . . . . . . . . 68

INDEX OF ADVERTISERS

REGIONAL

by Simon Alvarez, Teslarati.com

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

autobodynews.com / SEPTEMBER 2019 AUTOBODY NEWS

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Why Is Ethics Important for Self-Driving Cars? by Sean M. Cleary

Around 40,000 people in the U.S. die every year in vehicle accidents and more than a million globally; so, car manufacturers aim to put an end or at least decrease the number of traffic accidents in the near future. It is a daring goal, but so is the intent of creating self-driving cars. Oftentimes, technology and innovation eclipse state and federal legislation, meaning, for now, the automated road ahead remains hazy as lawmakers, courts and initiatives still try to address issues around liability and ethics posed by self-driving cars. The concept of self-driving vehicles is still in its research stage but computerized driving technology is slowly making its way into vehicles we use nowadays. Our cars are already equipped with automated components which can change gears, detect pedestrians, as well as to help us perform difficult maneuvers and force us to wear the seat belt. In the next few years, vehicles able to steer, brake and accelerate on their own are

expected to be seen on roads. This technology is thought to help avoid traffic fatalities caused by fatigued or careless drivers.

self-driving systems may encounter more complex scenarios to instantly react to, and this matter raises important ethical issues.

Ethical Concerns: the World of SelfDriving Cars Might Cost Lives In a future where most of the vehicles on the road are fully self-driving, the correct and ethical way of programming such automobiles raises huge problems since this encoded core of the cars is the one that controls the actions of these smart vehicles. But such tough decisions cannot be made only by engineers and IT specialists working for car manufacturers. They have to be shared with the society as this new technology will have a great impact on people’s lives and comes at the cost of the lives on the roadways. It is true that, so far, the number of accidents involving self-driving cars is low. However, this is the result of automated vehicles that simply stop when facing an uncertain situation. As technology continues to take over the automotive industry,

No-Win Scenarios Undoubtedly, the topic of self-driving vehicles can be a great source of excitement. More than 30,000 deaths are estimated to be avoided every year in the U.S. alone, not to mention the huge importance of these cars in the lives of people with reduced mobility and physical disabilities. However, a constraining issue arises when autonomous vehicles are confronted with where a collision is imminent and not avoidable—even if it complies with the programmed robotic rules or algorithms. Imagine yourself in a self-driving car on a sunny day when you see people waiting patiently at a bus station. At the same time, another vehicle, driven by a human, is heading towards you at great speed. The autonomous vehicle has two available options: avoid the car but hit

GM Delays Deployment of Driverless-Taxis in San Francisco by Kalea Hall and Ian Thibodeau, The Detroit News

A delay in General Motors Co.’s deployment of its self-driving vehicles is fueling increased skepticism that self-driving cars are not ready to ply America’s roads. GM Cruise LLC, the autonomousvehicle unit of General Motors Co., confirmed Wednesday, July 24 it will delay indefinitely its plan to deploy driverless taxis in the streets of San Francisco — explicit acknowledgement that hype generated by tech enthusiasts and investors is outpacing both engineering reality and safety concerns. “The technology is simply not ready yet,” said Sam Abuelsamid, principal analyst at Navigant Research who focuses on mobility. “It is not sufficiently safe, reliable and robust to be able to handle all these situations that people are going to encounter in the real world.” The Detroit automaker set a self-imposed deadline of year-end to launch a self-driving taxi service from the GM Cruise unit. In a blog post, Cruise CEO Dan Ammann wrote that the company would need to increase its testing and validation 4

miles to reach “the level of performance and safety validation required to deploy a fully driverless service.” That means the company won’t begin the taxi service this year. Ammann did not set a new timeline. The news comes as industry leaders and experts become increasingly cautious about the speed at which autonomous vehicles will hit roadways around the world. “It is not surprising that they have had some delay,” Autotrader Executive Analyst Michelle Krebs said. “I think most people are in agreement that a few years ago everybody got too exuberant on how quickly self-driving cars would get on the roads.” GM’s timeline for autonomousvehicle deployment had been one of the most ambitious of any major automaker. When it first announced the 2019 launch, GM was poised to beat crosstown rival Ford Motor Co. to market by two years. The Detroit automaker and its Cruise team attracted major investment and garnered favor on Wall Street for its approach to developing autonomous vehicles. “If we do this right in our first deployment it’s going to allow us to

SEPTEMBER 2019 AUTOBODY NEWS / autobodynews.com

move faster everywhere else,” Cruise spokesman Ray Wert said. “We’ve got to win the tech race and the trust race.” To be able to launch successfully, he added, Cruise must start ramping up more miles, building EV infrastructure to support the vehicles and heavily engaging the community to win trust. Winning the trust race will be more difficult. The public’s trust in self-driving vehicles dipped after a pedestrian was hit and killed by one of Uber’s self-driving cars in Arizona in March 2018. Highly publicized accidents involving Tesla electric cars driven in “AutoPilot” mode don’t help. What Cruise and other autonomous companies have to do is create a car that can do everything a human can do behind the wheel, but better, experts say. Automakers still must contend with the federal government to get self-driving vehicles on the road legally. Federal motor vehicle standards currently require cars to have human operators, but each automaker is allowed to request 2,500 exemptions to those rules that last for just

the people waiting on the side of the road or crash into the car and probably kill both yourself, and the other driver. Such a scenario sets forth the issue of whether an autonomous vehicle chooses to kill the operator of the vehicle or the third party. Who should decide how the robotic car should react or be programmed – the autonomous vehicle manufacturer or the operator? And if the system makes the decision, what criteria should the system use to determine which individual lives and which individual dies? Is it ethical to injure the passengers of the self-driving vehicle in order to save the other people’s lives? This is the kind of decisions that automated cars will have to face on a daily basis and researchers, engineers, philosophers and society as a whole must work together in order to find the most ethically correct way to program these revolutionary vehicles. The legal and ethical implicaSee Ethics Important, Page 26

two years. This has cleared a path to be able to test the vehicles, but not for them to be mass-marketed. Legislation that stalled last year in the Senate would have pushed that number to at least 80,000 exemptions, while a House version favored 100,000 exemptions per automaker. The National Highway Traffic Safety Administration took 14 months to respond to GM’s petition to deploy vehicles without steering wheels or pedals on public roads. Delays are not unprecedented. Uber suspended all testing of selfdriving cars last March after the fatal crash. What followed was an industry-wide reckoning with autonomous-vehicle testing practices. Many companies took their driverless test vehicles off the roads while they revamped testing practices. Uber wouldn’t resume autonomous vehicle testing for another nine months. “Putting it out there when it’s half-done, when it’s half-baked, and relying on people in the real world to beta-test it is a reckless approach to the problem.” We thank The Detroit News for reprint permission.


autobodynews.com / SEPTEMBER 2019 AUTOBODY NEWS

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Armed Suspect Shot, Deputy Airlifted After Standoff in Victorville, CA

Caliber Collision Gifts Vehicle to a California Mother in Need

by Staff, Victor Valley News

by Staff, Colony Magazine

A barrage of gunfire was heard after San Bernardino County, CA, sheriff’s deputies opened fire on a suspect who attempted to ram deputies with his SUV on Wednesday, July 17.

San Bernardino County sheriff’s deputies opened fire on a suspect who attempted to ram deputies with his SUV in the parking lot of an auto body repair shop. Credit: Victor Valley News

It happened on the 15000 block of 7th Street at about 2:39 pm when Victorville deputies were dispatched to a report of a man with a gun inside his car threatening nearby citizens, officials said. Upon arrival, deputies quickly surrounded a black Chevy Suburban

6

in the parking lot of an auto body repair shop. Officers had their guns drawn and pointed at the suspect for nearly an hour. Verbal commands over a loudspeaker could be heard telling the suspect to exit the vehicle. Sheriff’s officials said, “The suspect refused to exit his vehicle and suddenly accelerated toward deputies and their units.” Joe Vargas, a barber at Stay Fresh Cuts on 7th Street, was on his break and was filming the incident with his cell phone when the shooting occurred. Sheriff’s officials said a deputyinvolved shooting occurred; a deputy was injured and flown to a hospital with what is believed to be non-lifethreatening injuries. Officials said the suspect was taken into custody by SWAT. The suspect was injured and has been transported to a hospital. According to the tweet, two guns were located on the suspect inside the vehicle. We thank Victor Valley News for reprint permission.

SEPTEMBER 2019 AUTOBODY NEWS / autobodynews.com

Lilliana Anderson will receive keys to a 2014 Toyota Sienna from Caliber Collision as part of a national community service program to repair and donate vehicles to individuals in need of reliable transportation. Unable to afford a new car, if she has to go anywhere with all four children, Anderson has no choice but to somehow manage four car seats in her only vehicle, a 2010 Ford Fusion. Reliable transportation is critical as she juggles frequent medical appointments for her four children, often traveling to Los Angeles, Bakersfield and Madera, CA, to see specialists. Her oldest son, 6, is autistic and requires therapy four times a week. Her two-year-old twins defied odds of survival when they were born prematurely at only 25 weeks; but, they still face a multitude of medical challenges. The youngest baby is still going through tests to determine the cause of her

medical issues. Despite the more than fulltime effort to care for her children Anderson also manages to take classes toward her goal of a degree in business administration, knowing this will be the key to providing a brighter future for her family. “We admire Lilliana’s strength and devotion to the care of her children,” said Sean Harlan, regional director at Caliber Collision. “Our purpose at Caliber is to restore the rhythm of life for those in the communities we serve, and we hope this car donation will lift the burden of transportation for Lilliana.” The car donation by Caliber Collision and GEICO is part of the National Auto Body Council’s Recycled Rides program. Over the past seven years, Caliber Collision has teamed up with its industry partners to repair and donate more than 350 cars valued at over $4 million. We thank Colony Magazine for reprint permission.


autobodynews.com / SEPTEMBER 2019 AUTOBODY NEWS

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Dozens of Jeep SUVs Destroyed After Nevada Train Derailment by Staff, GaadiWaadi

Unlike India, where the cars are transported on long-haul specially-made trucks or by driving them down to the respective locations, a lot of countries, especially the United States transport the cars using special goods transfer trains with a lot of coaches. A similar train has derailed near Caliente, NV, in the US, destroying more than a dozen brand-new cars and pickup trucks.

which were totalled in the accident. As per officer Lee, this was the most spectacular mess he has seen, with so many cars destroyed in a

Not only this, the road will remain partially closed for the next seven to ten days because of the construction equipment, train coaches

Credit: Lincoln County Sheriff’s Office

Credit: Lincoln County Sheriff’s Office

The hazmat coach (hazardous material) was just two coaches away from the derailed section of the train as per Lee. Had it been the case, it could have caused the serious environment and personnel problems.

Credit: Lincoln County Sheriff’s Office

Credit: Lincoln County Sheriff’s Office

At least 33 coaches of the train derailed at 9:00 a.m. on Wednesday, July 10, 2019, about 30 miles out of Utah-Nevada border, Lincoln Sheriff Kerry Lee confirmed. The train was carrying Jeep Gladiator pickup trucks and Jeep Rubicon SUVs, a dozen of

Credit: Lincoln County Sheriff’s Office

crash. The crash caused County road 4230 from Elgin, NV, to Carp, NV, to completely close until Thursday, July 11, according to the Lincoln County Sheriff’s Office.

Credit: Lincoln County Sheriff’s Office

and debris blocking the road. Lee also said that the train was loaded with hazardous material apart from the cars but none of those coaches got derailed.

For more information

877-629-8777

Lincoln County borders Utah and Arizona and ends just north of Mesquite, NV, on the south side. There’s no report on how the train got derailed and the Union Pacific is investigating the cause of the derailment. In any case, we are sad on the damaged Jeep vehicles, both of which are incredibly competent in their respected segments. We thank GaadiWaadi for reprint permission.

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SEPTEMBER 2019 AUTOBODY NEWS / autobodynews.com


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move onto something else for ten minutes and it doesn’t create a big mess. Usually when they come back it drills right out and they can proceed with the repair without losing any time.” Eppstein’s passion for the job made him a great addition to WD-40 Brand’s “Live Life Hands On” campaign. The cam-

John Eppstein, owner of John’s Automotive Care, regularly uses WD-40 Specialist Rust Release Penetrant Spray on rusted nuts, bolts and more.

John Eppstein is an ASE Certified Master Technician and opened John’s Automotive Care in San Diego in 1998.

Today, this ASE Certified Master Technician, who is also an active member of Automotive Service Councils of California and an ambassador of WD-40 Company’s PRO Board, has two locations in San Diego and La Mesa, CA. Eppstein relies on a range of WD-40 Brand products, including WD-40 EZ-REACH™, WD-40® Specialist® Rust Release Penetrant Spray, WD-40 Specialist Industrial-Strength Cleaner & Degreaser and WD40 Specialist True Multi-Purpose Grease. Eppstein’s crew uses WD40 EZ-REACH for many applications – the most common involves loosening pesky nuts, broken bolts, squeaky door hinges and stuck locks. “When we do exhaust work or under-car repairs, we use WD-40 EZ-REACH to save time,” he said. “We can get the product into tight spots with the eight-inch flexible straw. Our guys can spray it and then

test asking trades people and DIYers to share how they rely on WD-40 Brand product performance to Live Lives Hands On for a chance to win $5,000. U.S. residents can enter at

WD40.com/Contest until Sept. 15, 2019. Learn how WD-40 Brand empowers professionals and DIYers to Live Life Hands On at WD40.com/LLHO.

paign honors those who rolls up their sleeves and get their hands dirty by sharing real-life stories of DIYers and professionals who rely on WD-40 Brand products to get their jobs done right at work, at home or at play. With an arsenal of WD-40 Brand products, Eppstein uses them to work on high-end brands like BMW, Audi, Mercedes-Benz and Porsche. As an ambassador of the PRO Board, Eppstein and his crew test and review WD-40 Brand products to provide unbiased feedback about how to use them daily. “Our feedback has been positive and constructive,” Eppstein said. “As a technician and a shop owner, we need products we can depend on and WD-40’s products help us to do a better job every day.” Eppstein is just one of many people who work with their hands every day. WD-40 Brand recently launched a conautobodynews.com / SEPTEMBER 2019 AUTOBODY NEWS

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Continued from Cover

Lawsuit Against AirPro

asTech has finally learned through the courts that AirPro meets and exceeds its Ten-Minute Response pledge and that it is far from ‘mathematically impossible’. If asTech decides to continue on its failed path of senseless litigation, AirPro will certainly prevail as it proves AirPro delivers superior customer service using OEM software ‘local’ to the vehicle.” The litigation, filed April 15, accused AirPro of false or misleading badmouthing of asTech and followed and exchange of cease and desist letters between the two companies. On April 9, AirPro shared those letters with the industry and issued a challenge to asTech for “an independently monitored side-by-side comparison between our tools, methods and services.” In response, Repairify issued a statement on April 15 in which Repairify CEO Doug Kelly said “We are extremely proud of our product, which has undergone extensive testing and works as promised. Our team

is focused on promoting the differentiating characteristics of our product and the superior quality of our customer service. We believe the right way to build market share and customer loyalty is by highlighting the positive aspects of our product and business interactions, not by running around and bad-mouthing our competition.” Kelly continued, “Having said that, we fully intend to defend ourselves in the appropriate forum against malicious, false and unfair attacks by others. Unfortunately, we have been forced into a frustrating distraction from the focus on our product and customers resulting in the filing of the attached lawsuit.” On April 28, Repairify requested an injunction against AirPro, asking the court to force AirPro to remove various statements from its website; AirPro opposed the injunction and in a May 15 statement said “This case is all about our Truth Campaign posted on our website, which we firmly stand by. We welcome this opportunity to finally flush out the truth to educate repairers, OEM’s and the industry at large regarding the honest differences

between our technology and services versus that of asTech.” Repairify’s lawsuit stated that AirPro’s attacks against the asTech product had no foundation: “The AirPro website includes misleading statements suggesting that AirPro does have insider knowledge of the current asTech device, and thus is qualified to compare the asTech device with AirPro.” Because the allegedly misleading comments are found on AirPro’s website, they are available for the whole world, including Texas to see. Judge Werlein’s ruling shows how the court evaluates jurisdiction in cases against companies with broad online presences. Although Judge Werlein stated that asTech would be free to sue in Texas if they had produced evidence that AirPro had directly emailed Texas customers with the allegedly defamatory comments, according to the final judgement, “Defendant’s uncontroverted evidence is that, although it distributed the materials about which Plaintiff complains (and which Defendant maintains are truthful), ‘none of the individuals or entities that received

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the information were located in the state of Texas or ‘based in the state of Texas.’” asTech’s argument that AirPro had emailed Asbury Automotive Group, a national chain doing business in Texas and an asTech customer, Judge Werlein said it did not create Texas jurisdiction since the email was sent to a regional manager in Atlanta. In the lawsuit, asTech pointed out that AirPro Sales and Marketing Vice President Frank LaViola has a home in Houston, but Judge Werlein wrote, “Plaintiff infers that based on his title, LaViola must be responsible for the allegedly defamatory statements in Defendant’s advertising campaign (which Defendant calls the ‘Truth Campaign’), but Defendant produces uncontroverted evidence that LaViola was hired in January 2019 and ‘was not involved in the planning, development or initial execution of the Truth Campaign,’ was not ‘involved in any aspect of creating the Truth Campaign,’ does not control the content of Defendant’s website, and ‘did not direct, order or authorize any of the posts complained of in asTech’s complaint. Given this un-


autobodynews.com / SEPTEMBER 2019 AUTOBODY NEWS

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controverted proof regarding the facts that underlie the Plaintiff’s claims, LaViola’s mere presence in Texas does not support Plaintiff’s assertion of specific personal jurisdiction.” Judge Werlein also rejected consideration based on the fact that two percent of AirPro’s customer base is located in Texas, resulting in an attempt to hire staff in that location. He stated, “allegation or evidence that these minimum contacts have any relation to the allegedly false statements that form the basis of Plaintiff’s claims.” Insisting that AirPro’s comments must be demonstrated to specifically target Texans or reference Texas, Judge Werlein wrote, “In the absence of any statements by Defendant about or expressly directed at Texas, the mere fact that Plaintiff is a citizen of Texas is insufficient to establish specific jurisdiction under both parties

compete nationwide ‘effects test,’ particularly where and not only–or even primarily–in Texas,” Werlein wrote. Though asTech’s argument for jurisdiction was supported by the claim that Texans could directly interact with AirPro through ORION and the site’s “Contact Us” feature, the judge stated, “Plaintiff argues that these features make Defendant’s website active, or at least interactive, under the Zippo test used by the Fifth Circuit. [However, asTech hadn’t claimed] there is anything false, misleading or otherwise improper about the interactive portions of Defendant’s website.” Regarding asTech’s disputes with AirPro’s “Truth Campaign” page, Werlein wrote, “Defendant produces uncontroverted evidence—and indeed Plaintiff does not argue to the contrary—that the portions of the website containing the statements that Plaintiff identifies as false and misleading are

not interactive and do not allow for the exchange of information.” In regards to asTech’s petition for limited jurisdictional discovery, Judge Werlein rejected the request, writing “Plaintiff does not state what additional evidence it reasonably expects to find if discovery were allowed. The parties, which know each other well and have engaged in previous litigation against each other, have filed full briefs including their verified evidence related to Defendant’s contacts with Texas alleged in Plaintiff’s complaint. As observed, the evidence submitted fails to establish that Defendant is subject to personal jurisdiction in Texas. Without stating what other facts pertinent to jurisdiction are expected to be discovered and a plausible basis for that expectation, Plaintiff fails to carry its burden to show that additional jurisdictional discovery is warranted.”

Continued from Page 3

open to acquiring an electric car listed Tesla as a vehicle that they were considering for purchase. The gap between Tesla and veteran automakers is notable, with the second place, Toyota,

far behind at 52 percent. Chevrolet was listed by 47 percent of potential EV buyers, Nissan was listed by 42 percent, and Honda was listed by a mere 39 percent of EV considerers.

EV Awareness

Based on the results of the study, 81 percent of car buyers who were

14

SEPTEMBER 2019 AUTOBODY NEWS / autobodynews.com

Caliber Collision Expands Into Texas

Caliber Collision, the country’s largest collision repair company in the United States, announced that it has acquired Herb’s Paint & Body across the Dallas-Fort Worth area. Herb’s was founded in January 1956 by Herb Walne at his Humble Oil (now Exxon) service station at Northwest Highway and Easton Road in Northeast Dallas. Herb’s Paint & Body quickly grew into a family of auto repair businesses famous for superior customer service and commitment to the communities they served. Steve Grimshaw, Caliber Collision’s CEO announced, “We are extremely excited to have Herb’s Paint & Body organization join forces with Caliber Collision as we continue to drive toward becoming the collision repair provider of choice in every community we serve.” “Herb’s Paint & Body main focus is on their team members, which is perfectly aligned with Caliber’s purpose and core values,” Grimshaw added.


autobodynews.com / SEPTEMBER 2019 AUTOBODY NEWS

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Industry Snapshot Survey Updated

The Collision Repair Education Foundation (CREF) and I-CAR have collaborated to provide an updated executive summary of the Snapshot of the Collision Repair Industry survey, which is now available for download. The survey provides data on both the business environment and the technician workforce. “The research clearly shows the collision repair industry’s need to build its workforce development efforts,” said Jeanne Silver, from CARSTAR Mundelein who serves as chair of the CREF Board of Trustees. “The Snapshot Survey of the Collision Industry results provides a detailed view of the challenges facing the collision industry’s workforce and clearly identifies opportunities available to people in the industry.” The updated Snapshot of the Collision Repair Industry survey is available for download from the CREF’s web site or via I-CAR’s web site. Industry members with questions about the survey should contact Director of Development, Brandon Eckenrode at (312) 231-0258.

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Western Association Event Announcements: September 2019 by Chasidy Rae Sisk

ABPAH to Hold Fun Maui Golf Event On Sept. 8, the Automotive Body Painting Association of Hawaii (ABPAH) will host an un-official fun event for members at Maui Golf. Details will be available at abpah.com/upcoming-events. MCRA Fall Conference to Feature Kristen Felder and Larry Montanez On Sept. 13-14, the Montana Collision Repair Association (MCRA) will host its 2019 Fall Conference at Fairmont Hot Springs, near Butte, MT. The conference will feature an informative presentation on Advanced Estimating, delivered by Kristen Felder of Collision Hub and Larry Montanez from P&L Consultants. For more information, visit mcramt.com. ASA Northwest’s September Meetings and Events ASA Northwest has many chapter meetings and events scheduled for September.

• Sept. 3 at 6:30 p.m. – Eugene Chapter Meeting at Izzy’s Grill in

SEPTEMBER 2019 AUTOBODY NEWS / autobodynews.com

Eugene, OR.

• Sept. 5 at 5 p.m. – Piece County Chapter Meeting at LaQuina in Tacoma, WA.

• Sept. 10 at 6:30 p.m. – Whatcom/Skagit Chapter Meeting at Park Bowl Restaurant in Bellingham, WA. • Sept. 12 at 6:30 p.m. – North Sno-King Chapter Meeting at Bob’s Burger & Brew in Everett, WA. • Sept. 17 at 6 p.m. – Olympic Peninsula Chapter Meeting at Kitsap Golf & Country Club in Bremerton, WA.

• Sept. 19 at 6:30 p.m. – South SnoKing Chapter Meeting at Bellevue Brewing Company in Bellevue, WA.

• Sept. 19 at 6 p.m. – Spokane Chapter Meeting at Mirabeau Park Hotel and Convention Center, Lilac Room, in Spokane Valley, WA.

• Sept. 23 at 6 p.m. – Southwest Washington Chapter Meeting at South Puget Sound Community College, Building 27, Percival Room in

Olympia, WA. For more information, visit asanorthwest.com. West Coast Auto Dismantlers Convention to be Held in Palm Springs The 2019 West Coast Auto Dismantlers Convention will be held on Sept. 6-7 at the Hyatt Palm Springs in Palm Springs, CA. The agenda on Friday, Sept. 6 will feature roundtable discussions and a presentation on “Illegal Dismantling in California.” The evening will conclude with a welcome reception. Saturday, Sept. 7 will begin with a presentation by Paul D’Adamo who will discuss “How to Eliminate Risks and Maximize Rewards with Takata Airbags.” In addition to a General Membership Meeting, the day will include training seminars with CarPart, Hollander and Pinnacle. The evening will include a trade show and buffet dinner. For more information, visit scada1.com/events/west-coast-autodismantlers-convention-2/.

www.autobodynews.com


autobodynews.com / SEPTEMBER 2019 AUTOBODY NEWS

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DRIVE Anticipates Its Largest Event Ever by Chasidy Rae Sisk

On September 27-29, DRIVE will present its 2019 DRIVE EXPO WEST at the Sheraton Fairplex Hotel & Conference Center in Pomona, CA. DRIVE CEO Bill Kilpatrick predicted, “The upcoming three-day event in September will be the largest DRIVE EXPO yet. The event brings together shop owners and vendors in a unique environment where the exchange of ideas, networking and access to industry leaders is the stated mission.” “This September’s EXPO will offer the management tools for each DRIVE client that they need to succeed,” Kilpatrick continued. “A key component of the EXPO is creating an environment where shop owners can meet and exchange ideas with other owners. This is unlike any other industry event.” DRIVE is also excited to announce that the keynote speaker at the 2019 DRIVE EXPO WEST will be industry leader Chris Chesney, senior director of customer training at Advance Auto Parts. Kilpatrick stated, “We are honored that Chris Chesney will be delivering the keynote speech.

Jake Rodenroth, asTech’s diHe is one of the most revered experts in the North American automotive af- rector of industry relations stated, termarket. His unique insights and “The upcoming DRIVE EXPO WEST perspective will be well-received by is a great opportunity to bring that latest technology to shops all across DRIVE clients.” Chesney added, “The mission of the country. We believe every shop DRIVE perfectly aligns with my goal owner should know what tools and of informing and encouraging the in- services are out there and how to provide the best repair possidustry to be ready for the ble for their customers. continued tech evolution The DRIVE EXPO is the taking place in each shop perfect place for that and today. I can’t wait to talk to, our team can’t wait.” and learn from, the DRIVE In addition to networkclients at the EXPO in Seping opportunities, the 2019 tember.” DRIVE EXPO WEST will DRIVE EXPO WEST include an awards dinner 2019 will also feature a live and the chance for attendemonstration of asTech’s dees to speak directly with diagnostic scan tool. This Chris Chesney will top industry vendors. Kilon-site demo will showcase be the keynote patrick noted, “Top industry a vehicle being diagnosed speaker during the sponsors are another imporusing the asTech remote 2019 DRIVE EXPO tant aspect of the EXPO. technology. Each demonWEST. Credit: DRIVE Business leaders view this stration will cover the realtime process, from set-up to end conference as an opportunity to speak results, of a tech using the scanning directly to hundreds of DRIVE shop tool, from set-up with the ASE certi- owners.” Among the industry sponsors fied tech at the asTech headquarters, to the final report which includes all scheduled to attend are R.O. Writer, data on the overall electronic status of asTech and BOLT ON Technology the health and safety of the customer’s which are all eager to share information about state-of-the-art products car.

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they have specifically designed for the industry. Michael Risich, CEO of BOLT ON Technology, shared, “BOLT ON was founded on the commitment of helping shop owners run a more profitable business with our innovative software solutions. The clients we’ve had the pleasure of meeting at the DRIVE EXPO are some of the most dedicated, openminded shop owners in the industry who truly ‘get it’ when it comes to finding ways to improve their business and achieve their personal and professional goals.” Attendees will also have access to knowledgeable instructors during a variety of workshops and seminars targeting the most prevalent issues facing the collision repair industry today. Both client and non-clients are invited. Kilpatrick encouraged, “All shop owners need to attend the DRIVE EXPO. Every session addresses business problems shop owners face every day. If you own a shop, I am personally inviting you to this life-changing event!” For full details or to register, visit drive-expo.com.


autobodynews.com / SEPTEMBER 2019 AUTOBODY NEWS

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right way, at the right time, in the place, to the right person, for the Focusing on Kina’ole right right reason, with the right feeling … the first time.” Chess said Taylor was a compasdoing and so will the students,” said sionate businessman who was comMcCauley. She encouraged CIC attendees mitted to changing the collision repair and the industry to get involved industry for the better and helping with students as much as possible— people learn. When Taylor passed away 12 whether that’s speaking to them about the collision repair trade or years ago, the March Taylor Memorial offering tours—and show them the Fund was established in his name to benefit collision repair technicians. possibilities available. “Right now, everyone in the in- Today, Chess said the donations redustry recognizes the need to draw ceived by the industry are used to promore students into the collision repair vide the next generation of technicians field,” said Chess. “We need more a “step upward” through tool scholaryoung men and women. The question ships and mentoring opportunities. With a reputation for being a is: ‘How do you attract them?’” Through his work in the colli- hard worker, Taylor would often start sion repair industry and with the his day early and work after-hours March Taylor Memorial Fund, Chess and weekends. Rather than doing it has found a way to support the in- for recognition, Chess said he did it dustry and reach students who will because it was the “right thing to do.” “March only gave,” said Chess. potentially fill the jobs of the future. “The biggest problem is when “He never took a thing from the inyou are getting an entry-level tech- dustry.” “The March Taylor Memorial nician coming into your shop and Fund was started by those of us who they don’t have tools,” said Chess. To help address this challenge, knew and loved March and believed in Chess has reached out to tool and his passion for the collision industry equipment companies across the and the technicians who made it all country as well as body shops request- possible,” said Barry Dorn, owner of ing monetary and in-kind donations. Dorn’s Body and Paint in Mechanicsville, VA. “March was always about The donations are then used to purhelping new technicians get into the industry.” Dorn is a member of the March Taylor Memorial Fund committee along with Jeff Hendler, CIC administrator; Jordan Hendler, president of Admin Concepts; Dale Matsumoto, president of Auto Body Hawaii; and Chess. Earlier this year in April, at the Collision Industry Conference They have found that a in Nashville, TN, Toby Chess (left) and Jeff Hendler (right) wide cross-section of the presented six students with toolboxes as part of the March collision repair industry has Taylor Memorial Fund shown its support by making chase tools and toolboxes for collision donations that will help provide oprepair students and teachers. In addi- portunities for students, technicians tion to the two McCauley received, six and teachers, like McCauley, while individuals were awarded toolboxes at honoring March Taylor’s memory. “I strive to teach every young the June CIC in Nashville, TN, on behalf of the March Taylor Memorial individual who steps into my classroom the same skills and trades I Fund. Many in the industry are famil- have myself, always maintaining a iar with the name March Taylor, strong level of compassion, integrity who lived and worked in the colli- and perseverance,” McCauley wrote sion repair industry. He was known in her application when applying for for living his life according to the a grant. “My integrity gives me the Hawaiian word “Kina’ole,” which determination to take on the tougher means “Doing the right thing in the assignment and handle them honContinued from Cover

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SEPTEMBER 2019 AUTOBODY NEWS / autobodynews.com

estly while perseverance—most important of all—is needed in the public education system to encourage myself and those around me to not only do the best quality work, but also to do it when we’re under strenuous conditions.” “She’s a champion for her students,” said Jeff Hendler during the CIC presentation. He said helping technicians further their careers through scholarships and tools speaks to the heart of the March Taylor Memorial Fund. “March would be smiling as he always kept his focus on assisting those in the workshop repairing cars,” he said. In addition to the toolboxes, the March Taylor Memorial Fund also offers collision repair technician grants that include I-CAR coupons, partial or full payment for industry training or the ability to attend industry events. An application is available online and can be submitted throughout the year. Dorn said scholarships have been awarded at the Collision Industry Conference (CIC) and at the Society of Collision Repair Specialists (SCRS) Red Carpet

Awards breakfast at the SEMA show in Las Vegas. To apply for a grant, Chess said individuals must have worked in collision repair for at least two years, currently be employed in the industry and their employer must be part of a collision industry association, whether it’s local, state or national. Chess recalls a recent high school graduate who had aspirations to attend a vocational-technical school, on the recommendation of a teacher, but he had some financial hardships and took out a loan to follow his career path. He also applied for assistance through the March Taylor Scholarship Fund and received $2,000 toward his education. “The Memorial Fund will always maintain March’s focus,” said Hendler. “The donations allow us to do that.” “We hope the entire industry gets involved,” said Chess. “We wanted to do something proactive to encourage these individuals to join the profession instead of just sitting back.” For more information about the March Taylor Memorial Fund and to donate, visit: https://www.marchtaylor memorial.org/.


autobodynews.com / SEPTEMBER 2019 AUTOBODY NEWS

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Carlsbad, CA, Gives Green Light to Tesla by Staff, The Coast News Group

Auto giant Tesla is coming to town. The City Council granted approval June 25 for the Carlsbad Raceway Specific Plan allowing the Carlsbad Industrial Park a conditional use permit for Tesla, an electric vehicle company, to develop a dealership and repair shop at 3248 Lionshead Ave.

The site is 125 acres and includes all 28 lots with a 54,000-square-foot building, which includes 35,000 square feet for an electric vehicle repair shop. As part of the specific plan, only electric vehicle sales are permitted. Sales of hybrid vehicles are not allowed. Carlsbad will be the fifth location for Tesla in San Diego County, according to the company’s website. There are two service centers, one in Oceanside and the other in Kearny Mesa, while there are two stores and

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galleries at San Diego UTC and Mission Valley. The Carlsbad location will be part showroom and service center. Angie Prowse, Tesla’s lead architectural manager in North America, said the showroom will consist of all Tesla models, although customers have the option of ordering their vehicles either on site or through the company’s website. Delivery of the vehicles will take place at the Carlsbad location. As for the city, she said the company, which was founded by Elon Musk in 2003 and is based Palo Alto, has been attempting to break into Carlsbad for some time. The company has pulled its permits and is expected to open in September. “Carlsbad is a very large market for us and we’ve been trying to get into this city,” Prowse said. “We are extremely excited to open this location and serve our customers who currently have to travel further distances to get their services.” Tesla did look at potential spaces at Car Country, however, nothing fit

SEPTEMBER 2019 AUTOBODY NEWS / autobodynews.com

While Tesla will be several miles away, the council also asked about the collection of sales taxes, especially since many Tesla customers order online. Prowse said it depends on the city where the car is registered as to who collects those taxes. Regardless, Bill Hofman of Hofman Engineering and Planning, who is working with Tesla on the specific plan, said the company is an ideal fit for the city. “Tesla is the epitome of a clean and environmentally sensitive use and will have Auto giant Tesla is expected to open its showroom and a very low ecological footservice center at 3248 Lionshead Ave. in Carlsbad in print,” he said. “It’s in perSeptember. The City Council approved a specific plan fect harmony with the city’s for the automaker during its June 25 meeting. Credit: and state’s goal of lowering The Coast News Group carbon emissions into the “The spaces that were available air.” According to a recent report from at the time we were performing our real estate search did not align with Bloomberg, Tesla is could set a comour needs,” Prowse said. “The prop- pany record for vehicles delivered in erty we are leasing out is in line with the second quarter, with estimates bewhat we are hoping to move forward tween 90,000 to 100,000. with and not extremely different from any other location around the We thank The Coast News Group for reprint permission. globe.” the needs of the company. Car Country is an anchor for the city’s sales taxes and a popular destination among many living throughout the county.


autobodynews.com / SEPTEMBER 2019 AUTOBODY NEWS

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Toyota to Pay $15.8 Million in California Dealership Lawsuit by David A. Wood, CarComplaints.com

The court battle between Toyota and California dealership owner Roger Hogan has ended with a Santa Ana jury finding the automaker liable for $15.8 million for interfering with the contract between Hogan and Toyota. The lawsuit alleges Hogan had been in business with Toyota nearly 40 years when he created a recall software program called Autovation that could be used by Toyota dealers. The software allegedly helped dealerships find customers who owned vehicles that had been recalled but never repaired. Hogan said he created the software after Toyota’s massive problems concerning unintended acceleration, something the automaker handled by sending recall notices to each customer. Toyota faced massive costs related to problems with sudden acceleration events and was fined more than $1 billion over sticky accelerator pedals and floor mats that interfered with pedals. Hogan alleges hundreds of thousands of vehicle owners didn’t know their vehicles had been recalled, a

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problem the Autovation software could remedy. Hogan argued Toyota’s recall system was broken and made it difficult for dealerships to identify vehicles with unrepaired (open) recalls. According to the lawsuit, the software created by Hogan greatly increased the number of vehicles that were repaired under recall, but this came at a price to Toyota. The lawsuit alleges Toyota didn’t want to spend millions of dollars to repair all the vehicles the Autovation software identified, so the automaker put an end to the program and allegedly set out to destroy Hogan’s dealerships. In particular, Toyota allegedly told Hogan to create a plan to turn the dealerships over to new owners, then rejected the idea of handing the business to Hogan’s sons. The lawsuit also alleges Toyota required multiple expensive actions by Hogan and his dealerships, but it was all an effort to convince him to shut down the dealerships. According to Hogan, Toyota cost him millions of dollars in lost revenue, an argument the jury agreed to support, at least partially. Hogan sued for $100 million,

SEPTEMBER 2019 AUTOBODY NEWS / autobodynews.com

but the jury said the $15.8 million was fair, concluding Toyota wouldn’t have to pay punitive damages because the automaker didn’t intend to deceive the dealerships by concealing material facts. The jury also didn’t buy accusations Toyota committed fraud, but did find evidence that Mr. Hogan wasn’t exactly squeaky clean in the matter because he acted with “unclean hands.” That finding caused the jury to knock $2.3 million off the verdict. Toyota says it respects the decision by the jury, but the automaker believes the evidence shows it followed its contractual obligations to Hogan and his Claremont and San Juan Capistrano dealerships. The Toyota lawsuit was filed in the Orange County Superior Court of California - Roger Hogan, SRK, Inc, dba Capistrano Toyota/Scion, and R&C Motor Corp., dba Claremont Toyota v. Toyota Motor Sales, USA, Inc. The plaintiff is represented by Miller Barondess, LLP. We thank CarComplaints.com for reprint permission.

Garmat Builds Upon CARSTAR Partnership

At the CARSTAR Acceleration 2019 Conference in Chicago, Garmat USA continued its long partnership with CARSTAR, hosting the welcome reception on Tuesday, July 16 for new CARSTAR franchise partners and top independent collision shop owners exploring opportunities with CARSTAR. “We’ve been partners with CARSTAR for many years and are honored to work with so many CARSTAR franchise partners,” said Debbie Teter, director of sales and marketing for Garmat. Themed “Picture Yourself in a Garmat Booth,” the reception featured a photo booth where guests could don paintsuits—along with fun hats, glasses and props—and take snaps in front of the Garmat paint booth backdrop. “We are proud of our many partners like Garmat who support our efforts to welcome new franchise partners to the CARSTAR family,” said Dave Foster, vice president of development for CARSTAR.


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Continued from Cover

Tiffany Silva

You’ve been able to line up some interesting and informational chapter meetings, including with BAR, ALLDATA and CCC. Are there other collision-related companies and/or organizations who want to speak at upcoming meetings of East Bay CAA?

Q:

I promised our chapter members that when I became president, we would only hold a meeting if the subject would bring some level of value to them. I realize that we’re all busy running our own shops and spending time with our families, in addition to navigating through the ugly commute times we have here in the Bay Area. If I hold a meeting, I want to make sure that the subject is relevant to what’s happening in today’s industry. I want people to come to a meeting or watch it later and get some real value out of it. One of the obstacles is that it’s often a challenge to find speakers

who are local or willing to come to speak without paying them for their flight and hotel stay. If there is a company that would like to present to any of our chapters, please contact me at tiffany@accurateautobodyinc .com.

A:

Continued from Page 4

Ethics Important

tions of the decision are most difficult and must be considered by those who design and control algorithms for safe autonomous vehicles. It is impossible with current technology to have an autonomous vehicle on the road that gets you from point A to point B without considering such a scenario. About the author: Sean M. Cleary is a personal injury attorney, founder, and president of the Miami, Florida-based The Law Offices of Sean M. Cleary. The firm

Tiffany Silva (center) is always looking to serve the collision repair industry by playing a wide range of leadership roles in the California Autobody Association while running Accurate Auto Body in Richmond, CA. Credit: Accurate Auto Body

By embracing technology, CAA has developed several new methods to communicate with its members who can’t regularly attend meetings?

Q: A:

Yes, chapter meetings long ago were the only way that mem-

has been listed as an accredited business with the Better Business Bureau. Sean M. Cleary has a thorough knowledge of car accident law and has been able to help people that were hurt in car accidents under all sorts of circumstances gain compensation. He also has high expertise in areas such as medical malpractice, product liability, boating and aviation accidents and all types of personal injuries from paraplegia and quadriplegia to fractures and amputations. Guided by a philosophy of compassion and genuine care for the victims of personal injuries, Mr. Cleary also offers moral support for the individuals and families affected by the negligence of others.

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bers could receive new and updated information regarding our industry. Currently, many members find it a challenge to attend meetings; therefore, the CAA has embraced technology by sending out informative emails. Pete Bezeck’s Shop Tips are emailed out and Jack Molodanof’s Legislative Updates are bringing information directly to our members. We also have a website/portal where members can access information.

Q: A:

What would you say to shops thinking about joining CAA?

The legislation that Molodanof works on benefits every shop in California. By being a member of the CAA, you are supporting the legislative process relevant to our industry. The CAA is not anti-insurance like many have said over the years. We actually work with the insurance companies on many issues. The MSO’s are coming back to the association because they see the benefit they are receiving and they also see our message of working with in-

surance companies. Of course, networking is a major benefit in my eyes. I have been able to seek advice and see my business sales grow 100 percent, with the help of other shop owners.

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We are filling up the landfills with plastic from damaged vehicles. I’m astonished that this is not an issue that everyone is concerned about. I’ve heard from two shop owners whose landfills have told them they can no longer put plastic bumper covers in their garbage. I have always had a reconditioned bumper cover company pick up my bumper covers. However, they recently went out of business and the remaining two local companies can’t keep up with all the shops in the area. I’m not sure where all these bumper covers are going to go.

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27


Continued from Cover

ASA Northwest

Attendees responded favorably to the event. First-time attendees Eric and Teresa DeBolt of GP Automotive in Everett, WA, stated, “It was amazing how willing and eager members were to help with issues

The roundtable on Friday, June 28 provided a lot of useful information on possible solutions to industry challenges. Credit: ASA Northwest

we, as new business owners, are having. We greatly appreciate all the information and personal experiences you all shared with us. It’s a relief to know that we aren’t alone in our adventure. We’ve made new friends and strengthened relationships, and we look forward to future meetings with our local chapter and seeing

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everyone again at our next retreat.” Vicki and Mike Doherty of M&N Absolute Auto Repair in Everett, WA, said, “We had a great experience at the summer retreat. We were pleasantly surprised by the AMI seminar on the Future of Social Media with Jennifer Filzen. We always learn something new from the ASA Northwest conferences we attend and we thought the material was informative. We really liked talking to other shop owners regarding tough issues we all face as automotive shop owners and were informed in the roundtable in regards to options on how to buy, sell and get started with succession planning.” Networking is a big part of ASA Northwest’s semi-annual retreats. Jobst shared, “The time we were not in meetings to learn or make association decisions was spent with our fellow ASA Northwest members, enjoying each other’s company and visiting the area’s sights. The evenings in the Hospitality Suite were spectacular.” The Ascettes, who support the association by raising funds for ASA Northwest activities and scholarship initiatives, held an auction during

SEPTEMBER 2019 AUTOBODY NEWS / autobodynews.com

the event to raise money for the Ascettes Scholarship Fund. Raffle items were donated by Todd and Diane Ainsworth of Swedish Automotive, Kukui Corporation, Dan and Hoa DeBusk of Moose Radiator, Dave and Cathi Lee of Drivelines Northwest, Shawn and Mark Mattingly of Weinand & Associates -

Seattle Seahawks painting for the live auction. The winner of this live auction item was Luther Taylor with a second hand-painted Seattle Seahawks

Joel Baxter was the speaker during lunch on Saturday, June 29 and provided an update on ASA National. Credit: ASA Northwest

During the AMI seminar, Jennifer Filzen discussed the “Future of Social Media.” Credit: ASA Northwest

Country Financial, Lisa Adair of the Clearwater Resort and Jude Larson of Valley Auto & T9O Diesel. Jim Gray of AutoZone donated a $750 Ascettes Scholarship. Ascettes President Jen Smith added, “Thank you Elizabeth Patrick with Drivelines Northwest – you are amazing! Elizabeth donated her hand-painted

painting going to Glenn MacMillian. Thank you again to everyone who donated items to support our Ascettes Scholarship Fund.” Expressing ASA Northwest’s gratitude, Jobst said, “Thank you to all the attendees and sponsors for making this event a success. If you haven’t attended a retreat, please give it a try!” For more information, visit asanorthwest.com.

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autobodynews.com / SEPTEMBER 2019 AUTOBODY NEWS

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Four Automakers Reach Emissions Deal With California, Bucking Rollback by Eric D. Lawrence, Detroit Free Press

Ford, Volkswagen, BMW and Honda have reached a deal with California to increase gas mileage standards and reduce greenhouse gas emissions, creating a template for a national standard, a longtime auto industry goal. The deal between the four automakers and the California Air Resources Board appears to offer a way around the thorny standoff between the Trump Administration and California over the administration’s push to roll back the standards laid out during the Obama Administration. The fight, however, is likely to continue in the courts as the administration works to rewrite the rules based on the direction in Washington rather than in California, which wants tougher standards. “The Trump Administration believes strongly in a national fuel standard that promotes safer, cleaner and more affordable vehicles. The federal government, not a single state, should set this standard. We are moving for-

ward to finalize a rule for the benefit of all Americans,” said Judd Deere, a White House spokesman. Notably, the deal “recognizes California’s authority” and would increase the average fuel economy of the automakers’ new vehicle fleets to almost 50 mpg by model year 2026. During a conference call Thursday,

Ford and three other automakers reached a deal with California on gas and emissions standards. Credit: Ryan Garza, Detroit Free Press

July 25 with California Gov. Gavin Newsom and CARB Chair Mary Nichols, officials noted that the Trump Administration’s plan would bring that only to an average of 37 mpg by that time.

The deal would stretch out the timeline for the improvement on the standards by a year from the Obamaera rules and would only apply if the administration follows through on its rewrite, which Newsom indicated has no justification since automakers themselves are willing to abide by more stringent rules. Newsom called the deal a game changer and said California is asserting itself while reserving its rights to litigate. “Regardless about what the Trump Administration determines in the next few weeks, this is the direction we’re headed in,” he said. Newsom praised the four companies’ “significant leadership” and said they deserve “enormous credit.” He said he anticipates additional companies signing on and the release noted that the deal is available to others. The four automakers issued a statement touting the deal’s benefits. “Ensuring that America’s vehicles are efficient, safe and affordable is a priority for us all,” the statement said. “A 50-state solution has always been our preferred path forward and

we understand that any deal involves compromise. These terms will provide our companies much-needed regulatory certainty by allowing us to meet both federal and state requirements with a single national fleet, avoiding a patchwork of regulations while continuing to ensure meaningful greenhouse gas emissions reductions.” Honda issued its own statement as well. “The framework provides regulatory stability, greater environmental benefits and reduced compliance costs. As a leader in producing efficient, low and zero-emission vehicles, Honda believes this is a win for our customers and for the environment.” The deal follows recent action by automakers to push the administration to reach a deal with broad support from California and other states. Seventeen automakers, including Ford and General Motors, had sent a letter directly to President Donald Trump urging one national standard in hopes of avoiding an extended period of litigation and regulatory uncertainty.

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A Fiat Chrysler Automobiles spokesman, however, said the automaker was not invited to participate in the current discussion. In a statement, FCA said it is committed to improving the fuel economy of its fleet but noted a need to adjust the rules. “We have been clear throughout the federal rulemaking process that the current standards need to be adjusted to reflect changing conditions in the marketplace and today’s announcement acknowledges that is true. We look forward to reviewing the details of this agreement, as well as the federal rule later this year,” the FCA statement said. Those changing conditions involve the relatively low price of gas and the apparent consumer shift away from small cars to SUVs and trucks. GM also issued a statement that did not appear to take a position on the deal. “We are driving toward a future of zero crashes, zero emissions and zero congestion. As we have stated, the pathway includes continuously improving fuel economy and our commitment to an all-electric future.

Our focus remains on working with all parties on a solution that would involve a 50-state solution and a national electric vehicle program,” said Jeannine Ginivan, a GM spokeswoman. U.S. Rep. Debbie Dingell, DDearborn, weighed in on the news, calling it positive and saying the industry needs certainty. “This industry is more fragile than many realize. If the United States is to be competitive, we have to stay at the forefront of innovation and technology, which will help us transition to the next generation of more fuel-efficient vehicles,” Dingell said. “This agreement is a step forward in that direction. I would urge this framework to be a catalyst for all stakeholders to go back to the table. It would be win-win for everyone.” The anti-pollution advocacy group Moms Clean Air Force praised the deal but questioned why other automakers, Toyota in particular, had not already signed on. “Moms are delighted that car companies are moving out of the rollback lane and getting America up to speed on mileage and fuel econ-

omy. We have one question though: where is Toyota USA? They should be part of this deal, showing leadership — as they know how to make fuel efficient cars — instead of hanging back,” said Dominique Browning, co-founder and senior director of the organization. The entire process might be a case of “be careful what you wish for.” Here are the terms of the deal, according to the release: • Revised greenhouse gas standards: The standards would be tightened beginning in the 2022 model year (MY) and extending through the 2026 MY, with increasing stringency at a nationwide average annual rate of three point seven (year-over-year). Of the three point seven percent annual stringency, one percent can be achieved using the advanced technology multiplier credits, below. • Appropriate flexibilities to promote zero-emission technology: Continue current advanced technology multipliers that now expire after MY 2021, extending them through MY 2024 at the current 2.0x for Battery Electric and Fuel Cell Electric

Vehicles (BEV/FCEV), and 1.6x for Plug-in Hybrid Electric Vehicles (PHEV), tapering off at the current MY 2020 and MY 2021 levels in MY 2025 and MY 2026, respectively. • Simplify accounting: Remove the requirement to account for upstream emissions of fuels, as these can be addressed by other programs. • Increase innovation: Raise the current cap on off-cycle menu credits, which account for actions taken outside the formal test cycle framework, from ten grams per mile to 15 grams per mile starting in MY 2020. • Streamlining and process improvements: Improve the off-cycle credit program to facilitate timely review and decision-making regarding the approval of new off-cycle technologies. • Recognize California’s authority: Participating companies are choosing to pursue a voluntary agreement in which California accepts these terms as compliance with its program, given its authority, rather than challenge California’s GHG and ZEV (zero emissions) programs. We thank the Detroit Free Press for reprint permission.

autobodynews.com / SEPTEMBER 2019 AUTOBODY NEWS

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Bernie’s City Garage in Vacaville, CA, Repairs Giraffe Sculpture by Nick Sestanovich, The Reporter

Few stories are as heartwarming as seeing an animal return to its natural habitat. That feeling was captured Tuesday, July 23, when the famed fiberglass giraffe returned to its rightful place outside the Nut Tree carousel in Vacaville, CA. To mark its return, the previously nameless giraffe was finally given a name. Due to the top results in an online poll, the long-necked wonder was officially christened “Patch.” The name is appropriate, given that the sculpture is not only covered in patches but had spent the last four months getting patched up. Back in March, Patch had both of his feet knocked off following a car accident in the Nut Tree Plaza, which also caused minor damage to the carousel and railroad tracks. Patch was subsequently airlifted to Bernie’s City Garage where he would spend the next three months undergoing repairs. David Spencer, lead technician at Bernie’s, said he was recommended for the task after receiving a call by local artist Lisa Rico. Although Bernie’s is an auto

body shop, Spencer had previously done clear-coating on the fiberglass rabbits used in the 2015 Vacaville Museum fundraising event “We Know Jack,” in which local artists created art pieces using the rabbits. The giraffe was a larger project, but Spencer said he was able to manage it.

Patch, the Nut Tree giraffe, gets lifted by crane back to his original spot outside the carousel. Patch had undergone repairs as a result of a car accident in August. Credit: Nick Sestanovich, The Reporter

“It wasn’t bad, other than the size,” he said. “It was hard to move it around, but the way we repaired it and the way we painted it was the same as we would a car.” Spencer and his crew not only repaired the feet but stripped off the original paint to give Patch a darker coat. Following the rehabilitation,

Registration Open for SCRS’ RDE Series at 2019 SEMA Show in Las Vegas It’s never too early to start planning. Registration for the Society of Collision Repair Specialists’ (SCRS) Repairer Driven Education (RDE) series at the 2019 SEMA Show is open and can be accessed at www .scrs.com/rde. The 2019 show marks the tenth year of RDE from SCRS, as the association continues to build upon the attendee feedback and programming successes from the past decade, while working to keep the event fresh and continually evolving. Attendees can continue to expect unique classroom experiences with the industry’s most sought-after subject matter experts, while also finding access to new presenters debuting with their first RDE appearance. The program kicks off Monday, Nov. 4 with a newly added 1:00 pm feature workshop courtesy of Paul Webb and Elle Artison of Paul Webb Training. With ample attendee recommendations to SCRS after their appearance during the BMW Group Certified Collision Repair Center Conference, the association arranged this session to help our audience focus on Advanced Business Communications – The A-B-C’s of Building 32

Trust. With a premise of developing “easy to use skills” that build trust with co-workers and customers, and a focus on understanding communication styles, this program is suited for a wide audience, from collision repair professionals to exhibitor staff members who will be manning the booths for the week-long show. This year’s program—starting with this kickoff workshop—is one you won’t want to miss! When registering for education through www.scrs.com/rde, attendees will have the option to either link the education to an existing registration or to purchase a new show pass at the same time as the education package. While all education sessions are individually available, SCRS encourages attendees to select a full series pass which will provide the greatest value and access to one regular session in each available time slot, access to all three sessions of the OEM Collision Repair Technology Summit sessions, one ticket to the SCRS after-party on Thursday, Nov. 7 night, and admission to the IDEAS Collide Showcase on Friday, Nov. 8 which features ten new ten-minute presentations.

SEPTEMBER 2019 AUTOBODY NEWS / autobodynews.com

Patch was laid onto the bed of a Lister Construction truck on July 23 where he was driven over to the Nut Tree Plaza and lifted on a crane back to his original spot. Several were on hand to witness Patch’s return, including patrons of Peet’s Coffee and STEM summer camp students at the Academy of 21st Century Learning who cheered from the sidelines. Julie Davis, the manager of Dunhill Partners, which itself manages the Nut Tree, said she was excited to have Patch back. “We’re beyond thrilled,” she said. “It’s been a long time waiting, but it’s been worth it.” Davis said that giraffes have been a recognizable element of the Nut Tree for decades. A giraffe rocking horse was part of the original incarnation of the Nut Tree when it was a roadside amusement park and restaurant. Patch, in particular, has been standing outside the carousel since it opened in 2009. The giraffe was created by a North Carolina company and originally painted by Fairfield artist Michael Loebs. Davis views Patch’s return as a welcome one.

“We’re just excited to have him coming back,” she said. “He kind of protects our plaza. He oversees all the kids and now he’s gonna do it again.”

Patch stands tall in his original location. Credit: Nick Sestanovich, The Reporter

Davis was especially grateful for the community’s work to get Patch back into shape from the recommendation by Rico, the repair work by Bernie’s and the transportation by Lister Construction. “You just had so many people interested in it,” she said. “It’s something that just so quickly came about and was pulled together to get the right people in here at the right time. It’s just really been a community effort.” We thank The Reporter for reprint permission.


autobodynews.com / SEPTEMBER 2019 AUTOBODY NEWS

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SEMA Seeks Young Vehicle Builder in Seattle SEMA’s search for young vehicle builders moves to the Pacific Northwest, as the SEMA Young Guns Regional Program joins Formula Drift at Evergreen Speedway in Monroe, WA, on July 20, 2019.

The stop marks the fifth in a nine-city tour where top young vehicle builders (age 27 and under) will win all-expenses-paid trips for two to the trade-only SEMA Show, including transportation of the winner’s vehicle, a designated feature vehicle spot at the Show and entry into the SEMA Battle of the Builders competition. The SEMA Battle of the Builders competition is the automo-

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tive industry’s premier vehicle competition, with participants featured at the SEMA Show, online, in magazines and on television. Open exclusively to builders with vehicles on display at the SEMA Show, the competition expanded in 2017 to provide exposure for a limited number of rising young builders. This year’s program includes partnerships with nine venues, with one winner from each venue awarded a Golden Ticket into the competition. “We’ve already seen some amazing young builders on the SEMA Young Guns Regional Tour,” said Ira Gabriel, SEMA vice president of Marketing, PR & Communications. “The talent, creativity and craftsmanship from the younger generation has been phenomenal. We’re looking forward to seeing what Seattle brings.” Since March, four competitors from across the country have won regional competitions and will be competing in the SEMA Battle of the Builders in November. A fifth builder will be selected

SEPTEMBER 2019 AUTOBODY NEWS / autobodynews.com

at Formula Drift’s event on July 20 in Monroe, WA, about 30 miles north of Seattle. It marks the third Formula Drift event of the year in SEMA Young Guns Regional Competition. “The SEMA Young Guns program has brought an exciting energy to the Formula Drift events,” said Jim Liaw, Formula Drift president. “We’re excited to see the regional winners compete at the SEMA Show and look forward to supporting them in the SEMA Battle of the Builders competition.” Participants for the Seattle competition will be selected from qualified applicants who enter at www.semayoungguns.com. For additional details, visit the website or contact marketing@semaignited.com. Obtained via Business Wire.

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Weidmann Named CIECA’s Executive Director

CIECA is pleased to announce the appointment of Ed Weidmann as CIECA’s interim executive director, effective Aug. 1, 2019. Weidmann has worked in the insurance and collision repair industry for more than 42 years. Weidmann is not new to CIECA. He joined the organization more than ten years ago as a trustee. Since then, he has held the positions of treasurer, vice-chair, and chairman of the board in 2008 and 2014. “I always tell people that CIECA standards streamline the transmission of data among companies, eliminating duplicate programming and minimizing the need for translators when a company works with multiple companies providing similar services,” said Weidmann. As the interim executive director, Weidmann said his goal is to help CIECA expand its product offerings, increase the industry’s understanding of its purpose and streamline CIECA’s internal workflows to more efficiently serve its members. For more information about CIECA, visit www.cieca.com.


autobodynews.com / SEPTEMBER 2019 AUTOBODY NEWS

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Uplift Clark County, WA, Celebrates Their Fifth Year of Giveaways by Staff, The Columbian

For the last five years, Chappelle’s Towing has partnered with Jacobus Carstar in Vancouver, WA, and other local businesses to donate a quality used vehicle to one resident of Clark County, WA, to give them greater freedom and help them better serve their community. They call this Uplift Clark County. Chappelle’s has been able to purchase a vehicle for an upstanding, but financially struggling, member of the community every year for the last five years; four of those years partnering with Jacobus Carstar, and one with the help of Elite Collision in Battle Ground, WA. Much of America is not adequately covered by bus and train lines making car travel one of the only means many people have to make it to work or school. With a car holding such an important place in helping a family earn income and helping transport loved ones, and

This year’s Uplift Clark County recipient was Sheena Barrett who received a 2011 Hyundai Sonata. Credit: The Columbian

with Chappelle’s Towing’s incredible record for local vehicle retrieval, and Jacobus Carstar’s talent in vehicle restoration, it only made sense for both companies to give back through the gift of a car. This Year’s Giveaway This year’s recipient of a certified pre-owned 2011 Hyundai Sonata was Clark County resident Sheena Barrett. She was nominated by the Boys and Girls Clubs of Southwest Washington. Now Barrett and her sons will be able to attend school functions and make it to work on time without being at the mercy of the bus schedule. A vehicle grants freedom as well as greater financial opportunity and when a member of our community succeeds, we all benefit. This year’s ribbon-cutting happened on Wednesday, June 19 at the local restaurant Warehouse 23. It was attended by a 36

number of community members including numerous members of the Greater Vancouver Chamber of Commerce “Red Coat” Ambassadors.

the vehicle, while Mark Matthias and his restaurant Warehouse 23 hosted the event, including catering, web de-

Previous Year’s Giveaways For their first donation, Jacobus Carstar recalls: “We had some 60 nominations, 50 of them were for this young lady here [Rachael Methke]. That obviously says a lot about her character.” Last year’s recipient was Deanna Sanchez who received a 2010 Nissan Versa. Credit: The Columbian

Another of 2016’s recipients was Rachael Methke who received a 2003 Infiniti G35. Credit: The Columbian

Chappelle’s Towing and Jacobus Carstar have been honored to provide assistance to so many incredible people over the years. Methke, the first recipient of a 2003 Infiniti G35 through Uplift Clark County, had this to say: “When you’re in the middle of a crisis you feel like no one’s there and no one cares; you feel the most alone you’ve ever felt in your entire life and then something good happens. In the middle of all the good, you still remember the bad, but all

veloper Webfor provided online support, Greater Vancouver Chamber of Commerce provided the ribbon cutting and advertising and LKQ Corporation donated vehicle parts. It’s important that a partnership of local businesses have come together to help one member of their community. These businesses have a real desire to give back to Clark County. Would you or your business like to help sponsor the event next year? If you would like to join the growing number of business philanthropists,

give Polina Senchilo a call at (360) 696-1710. Nominations for Next Year Do you know someone who needs a vehicle to accomplish selfless acts in Clark County? Do you know someone who deserves a nomination? To qualify they must have been a resident of Clark County for a minimum of three years, have a valid, current driver’s license, be able to carry liability insurance and provide three references. Participants must be nominated by someone outside their household. If you know someone who is a beacon in our community but lacks transportation to productively spread that love, we want to help! Nominations are held each year in the month of May. Follow the hashtag #uplift on social media for more updates. We thank The Columbian for reprint permission.

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One of 2016's Uplift Clark County recipients was Celia Wilbur who received a 2007 Ford Taurus. Credit: The Columbian

the good starts to outshine the bad, and then a miracle like this happens, and you realize the people were right there the whole time by your side watching, caring and seeing your struggles.” Community Benefactors This year, sponsors Chappelle’s Towing and Jacobus Carstar Auto Body Repair Experts helped to purchase

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Too Many Openings & Too Few Techs—A Crisis With No End in Sight by Ed Attanasio

When I interview shop owners or managers all over North America for various articles, they usually end up asking me the same question. “I need a new technician; do you know anybody good?” After an awkward pause they often say, “Someone with a pulse?” From New York City to Los Angeles and everywhere in between, the collision repair industry has too many openings and too few people to fill them. It’s all about supply and demand, and tech schools are enrolling more and more students, but it’s still a matter of “too little, too late.” A recent study conducted by TechForce Foundation quantifies the growing seriousness of the body technician supply shortage. A non-profit organization whose goal is to get more young people interested in careers in auto repair, TechForce has a steep hill to climb as trade schools close or reduce class sizes. The growing gap between postsecondary graduate numbers and job

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openings in mechanical and collision repair is hitting the panic stage, according to the TechForce Foundation’s Transportation Technician Supply Report. Based on the comprehensive analysis performed by the National Center for Education Statistics with 2011-2016 data, TechForce discov-

ered that the postsecondary supply of new body technicians entering the field has not kept up with the expanding demand. The schools are trying to fill the void, but it is growing at a rapid rate. This shortage has been getting worse for the past 15 years, but hit its all-

SEPTEMBER 2019 AUTOBODY NEWS / autobodynews.com

time low in 2013, as the gap between the supply and the demand has continued to grow every year. New technicians breaking into the industry are filling the growth in new positions, as well as replacing those who retire or exit the profession primarily through retirement. They are distinguished from seasoned body technicians who move between employers but don’t add to the overall trained workforce. It’s like a bad drought that isn’t being helped after some heavy rainfall because the need is increasing and many technicians are reaching the retirement stage. The TechForce report reveals that auto tech postsecondary graduates have been declining in a big way since 2013. The number of postsecondary auto graduates decreased by 1,829 in 2016. There were approximately 38,829 graduates for 2016 when compared to the projected Bureau of Labor Statistics demand for 75,900 new techs. Private-sector colleges have experienced the biggest decline while public two-year institutions (mostly community colleges)

have stepped up their efforts and proactively increased their recruitment efforts. So, what can be done to lighten the supply shortage and how long will it take to see some tangible results? Jennifer Maher, CEO/executive director of TechForce, recently said one of the main problems is that the auto tech education system in this country, has stigmatized trade-school education and killing the trades. Prospective students are still holding onto the outdated image of the greasy and sweaty mechanic because parents, instructors and counselors support the theory. Today’s new technicians are compensated well and possess skills that set them up for ongoing success but are burdened by more school debt than their four-year school counterparts. Maher and her foundation are currently creating programs and supporting more students interested in becoming collision repair technicians. Greg Settle, TechForce’s director of National Initiatives, said that with only a small number of students interSee Too Many Openings, Page 62


autobodynews.com / SEPTEMBER 2019 AUTOBODY NEWS

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Solving the Tech Shortage: In-Prison Automotive Programs Provide Education & Training for Potential Hires by Stacey Phillips

Terrance Jones didn’t have any automotive experience when he entered Washington State Penitentiary, let alone a skill or trade. He learned about the educational programs offered by Walla Walla Community College at a minimumsecurity unit of the correctional facility and decided to enroll in auto body repair. During the one-year certificate program held on the facility grounds, he learned how to disassemble and reassemble vehicles, do bodywork and paint vehicles for the local community who brought in their cars for repair. “I loved it,” said Jones. “A lot of these guys, including myself, when we go in, don’t have any experience in any type of field let alone being able to hold down a decent job. The

instructor, Lee Brickey, have been crucial to his success. “He is that guy who actually cares about what happens to the gentlemen who come through this program,” said Jones. As a result, he has been able to move up the ranks quickly at H & I Automotive. “I’m one of their lead technicians and ‘go to’ guy, which feels good,” he added. Jones said the experiences students have in the auto body program give them hope that they can work rather than return to their previous lives. “I know countless guys who I knew when I was inside prison who have gone back already and there’s only a handful of us who are still out and doing well,” said Jones. “It was really based on the skills and trades we learned while in prison.”

upon release,” according to the Washington State Board for Community and Technical Colleges. “Offenders who are provided opportunities to gain job skills are much more likely to be successful in the community upon release and educated offenders are statistically less likely to commit additional crimes.” To help reverse this trend, inprison educational programs are offered by community and technical colleges around the country. The goal is to educate incarcerated individuals so they can re-enter society and be able to work and contribute. Walla Walla Community College in Walla Walla, WA, is one of these. The college has established an inprison auto body and diesel mechanic program at Washington State Penitentiary and an automotive mechanics program at Coyote Ridge Corrections Center. Washington State Penitentiary Hired through Walla Walla Commu-

RN SOUTHE

nity College, Brickey has worked as the auto body instructor for Washington State Penitentiary for the last decade. Prior to that, he instructed at Columbia Basin College for five years and has worked in collision repair facilities for more than 20 years. On a typical day, Brickey’s students spend about six hours a day, five days a week, at the body shop, which was set up at the minimum-security unit of the facility by the college and Department of Corrections. Teaching up to 18 students at a time, Brickey teaches them how to repair vehicles for the surrounding community following the same curriculum that is taught on the college campus. Students have the option of participating in a nine-month program or working toward an associates degree. Upon graduating, they receive a certificate from the community college. If they have done well in the class and haven’t been released from the correctional facility yet, they are invited to work as TAs and are paid

The right part makes the difference.

There are currently 18 students and six teaching assistants (TAs) who take part in the program at Coyote Ridge. Credit: Walla Walla Community College program at Coyote Ridge Correction Center

fact that when I got out I was going to have a trade skill under my belt and I could get a decent job when I first got out was really exciting.” Once Jones earned his auto body certificate from the college, he became a teaching assistant (TA) for the next year and a half before being released from prison in 2016. As part of Washington Department of Corrections’ work release program, Jones was placed at a Maaco facility where he worked for a short time before being hired at H & I Automotive in downtown Seattle. He said the skills he learned in the community college in-prison program from his 42

He encourages body shops to be patient with new technicians who might have gone through a similar program and “not to give up on these guys.” “You might have to sift through a few bad apples before you find a good one but don’t give up because we are out there,” said Jones. Studies have repeatedly shown that increasing education initiatives in prison lead to lower recidivism rates. “Most of the men and women entering correctional facilities lack the literacy and employment skills needed to succeed in our communities

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for helping with grades and student questions. “For anyone who has completed one of the programs, we’ve found that the rates of reoffending go way down,” he said. Brickey recalls one of his students who was 21 years old and had a challenging time working with others. The collision repair instructor gave him a project to focus on—painting a bright red sports car. When the vehicle was unmasked and pushed out of the paint booth, Brickey said it looked impressive. “Everyone was standing around and said it looked really nice,” he recalled. “I talked to him later and he said it was the first time in his whole life that anybody gave him a compliment about anything he had accomplished.” Personal experiences like these are gratifying for Brickey who always had an interest in the automotive trade. When Walla Walla Community College approached him about teaching, he decided it would be a good fit. “I like making a difference in people’s lives,” he said. “It’s amazing sometimes and it’s frustrating some-

44

times because you find out these guys get into trouble and it’s not going to turn out perfect for all of them, but there are ones that it does.” With baby boomers retiring and not enough workers to fill their positions, Brickey said vocational train-

skilled people we have,” he said. His advice to body shops looking for employees is to give inmates a chance. Coyote Ridge Correction Center Over the past two years, Douglas

An in-prison automotive mechanic program was set up at Coyote Ridge Correction Center by Walla Walla Community College. Credit: Walla Walla Community College program at Coyote Ridge Correction Center

ing in state correctional facilities will help address the gap. “It’s amazing the shortage of

SEPTEMBER 2019 AUTOBODY NEWS / autobodynews.com

Leclair has taught an automotive services program at Coyote Ridge. Similar to the Washington State Penitentiary

program, a full-service auto repair shop was established by Walla Walla Community College about a decade ago on the prison grounds where students work on vehicles throughout the week. He currently has 18 students and six teaching assistants (TAs) who take part in the program. At Coyote Ridge, the main focus is on mechanical repair. “Many cars require major assembly removal in order to do the repairs,” said Leclair, who has worked in the automotive field since 1992. “We’re finding in the body shop industry the big body shops will have a mechanic; they have to.” Leclair helps them learn to think critically to diagnose problems and work on soft skills, which he has found to be essential to prepare them to work when they are released from prison. “What made Southwest Airlines so successful is that they don’t hire people with the skillset, they hire people with the right attitude and teach them the necessary skills,” he observed. “We call it ‘men teaching men.’ In the prison system, it’s really


hard for an inmate to tell another inmate what to do, but I think we’ve overcome that in our little area of the world. My TAs are well-respected by the other guys.” By state law, most inmates receive $40 and a bus pass when they are released. Leclair hopes that by teaching them a trade, they can make a living wage when they are released. “A lot of these guys have been incarcerated at a young age and don’t have a skillset or a trade,” said Leclair. “If they leave here with a trade, then they don’t have to resort to activities that are less than desirable. If we give them a skill, they make great employees.” An advisory committee is set up where the automotive instructors regularly meet with the industry as part of the curriculum development to find out what types of positions they are searching for. Last year, one of the inmates who took part in the automotive program was released from prison and hired as a foreman at a Ford dealership in Arizona. Another, who had served 17 years, was hired to work as a mechanic in Yakima, WA.

“He took the skills he learned in the program and within three weeks, he was promoted to be the main mechanic in the facility,” said Leclair. For those questioning whether or not to hire a former inmate, Leclair said if they are given a skill, studies have shown they make great employees. “I had a teacher in high school who took a chance on me,” he recalled. “The guys in here, on average, are good, solid people and they made a mistake.” He also recommends paying new technicians fairly, even those with little to no experience. Through his experience managing a car dealership, Leclair found that offering a competitive wage up front and training individuals from the onset most often led to success; he encourages body shops to do the same. Clayton Long recently completed the automotive mechanics’ program at Coyote Ridge. “I had no prior automotive experience outside of knowing how to drive a vehicle,” said Long. “With that in mind, I knew I had an uphill battle on my hands.”

He said the course curriculum was a system-by-system approach, which made understanding the material much easier. “I soon realized that we weren’t expected to know everything, as this field is constantly evolving,” said Long. “I had to learn that learning never stops; I have to adapt to technology constantly changing and I have to work hard and remain dedicated in order to be successful in my trade.” When Long is released, he said his educational certificate will help get him through the door and into the interview process. “The personal growth that I have achieved is what will get me the job I want,” said Long. “Once I get through the door, I want to do everything—especially the work that nobody wants to do.” Samuel Laur was also one of Leclair’s students at Coyote Ridge who completed the automotive program. “The program has given me hope that I’ll be able to get out and get a good job with a wage that will allow me to support myself and not come back to prison,” said Laur.

Caliber Collects Over $900,000 in Donations

More than 85 food banks across 37 states will be able to restock their shelves to ensure at-risk kids do not go hungry this summer thanks to Caliber Collision’s 2019 Rhythm Restoration Food Drive collecting over $900,000 in donations or 5.4 million meals from April through May. Caliber’s 20,000 teammates were inspired to serve their local communities by raising cash and food donations through fundraising events such as car shows, motorcycle rallies, golf tournaments, dunk tanks and other giving opportunities. “We set a lofty goal of raising five million meals in 2019. Our teammates challenged themselves, our business partners, friends in the community and each other by collecting more than 5.4 million meals across more than 1,100 locations,” said Steve Grimshaw, Caliber Collision’s chief executive officer. Over the past eight years, Caliber’s annual food drive has become one of the largest food drives in the U.S.

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In Reverse with Gary Ledoux

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

50 Years - A Retrospective Fifty years ago this month, September 1969, I took my first job in the automotive industry. I worked at a family-owned auto parts store, Towers Motor Parts, located in my hometown of Nashua, NH, that also sold automotive refinish paint and related supplies. In the days before PBE Jobbers, many auto parts stores divided shelf space between spark plugs, distributor points and condensers with refinish paint, sandpaper and body filler. Nashua, with a population of 55,000 was served by five auto parts jobbers, one of which was a NAPA store who carried a small amount of RM paint and another independent jobber carried a small amount of Ditzler paint. Neither store actively pursued the collision industry. Our store carried a full line of DuPont refinish products, 3M products and mostly everything a body shop of the time could need or want. Being the most aggressive collision-industry jobber in town, we did a brisk business in supplying body shops within about a tenmile radius. Here is a brief overview,

as I remember it, of the collision repair business, 50 years ago. The Job When I started, my responsibilities included mixing paint, delivering parts as well as paint supplies and eventually, waiting on customers. As a DuPont jobber in 1969, our two main paint products were Dulux enamel and Lucite lacquer. Another paint product, Duco, a nitrocellulose lacquer, which had been developed in the 1930s, was still in use, mostly for use on import or “non-domestic” 46

cars because Lucite had not been developed for those cars yet. Within a year or so, Duco was phased out in favor of Lucite and almost as quickly, Centari acrylic enamel and Imron polyurethane enamel was introduced. Initially, Imron, developed primarily for fleet use was available in only about a dozen colors. Before the days of computers (and even before microfiche) paint mixing formulas were printed on index cards and kept in file drawers similar to book index cards in a library of the time. Lord help you if you spilled paint on an index card and destroyed it. Being the town’s major supplier of mixed paints, some days we were backed up for hours.

The Product Inventory The two largest selling paint products were gallons of Dulux for overall refinishing and pints of Lucite for panel refinishing. Most shops would accept a mixed pint of paint if we didn’t have a “factory package” but most shops preferred the factory packaged paint. At any given time, we might have around 1,600 pints of factory-packaged Lucite in stock. The basic colors, like white or beige or yellow were designated with an “L” after the stock number. All “L” colors were about $1.90 a pint as I recall. Those with an “LH” or “LM” suffix were different shades of red and were about $2.25 for LH and $2.75 for LM colors. We carried a full complement of 3M abrasives in various sheet sizes and configurations as well as 3M Glazing Putty and various adhesives. (I wish I had a nickel for every tube of 8001 3M weather strip adhesive I handled!) Nitro-Stan putty in tubes was a big seller as were Detroit brand tack-rags and Marson Fish Eye Eliminator. We carried a full line of Unican body filler products including SnoBall body filler. SnoBall came four 12pound gallons to a case and it was not unusual to sell a case at a time to some

SEPTEMBER 2019 AUTOBODY NEWS / autobodynews.com

shops. Unican also had various fiberglass repair products. In 1969, fiberglass was used to repair Corvettes, repair rust holes in cars (more on that later) and repair front cowls on snowmobiles. (Remember, this was NH … snowmobile country.) Besides plastic body filler, we also sold a fair amount of body lead in one-pound bars, 50 bars to a case. To get paint on the car required a spray gun and the most popular guns at the time were DeVilbiss MBC and JGA guns in siphon configuration. Binks and Sharpe guns were later added. The Customers Maybe because I enjoy the collision repair part of the business so much is why I remember many of the people and reconnected with some of them years later in my capacity as the administrator of American Honda’s

ProFirst body shop certification program. Nashua, in 1969, had few large shops including the local Chevrolet dealer, Lincoln-Mercury dealer, Buick dealer and an independent shop run by four owners. But most shops were small, two and three-man operations. As was typical of the time, with the exception of the Chevrolet body shop, all interior shop surfaces were steeped in a fine coating of filler-dust, and offices and non-production spaces were unkempt. In many cases, it was difficult to find a place to set-down whatever I was delivering. Many used car dealers did bodywork to spruce-up the rusted quarters and rocker panels of a car that was otherwise good mechanically. Before factory-applied E-coat, New England winters with salted and sanded roads caused cars to rust quickly and thoroughly. It was not uncommon to

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pull-away the mats or carpet in the footwells of the front seat and find large-gaping rust holes. Not far from our store was a Ziebart dealer who did a land-office business applying their rust-preventive under-coating on new cars. There were two, one-man shops I distinctly remember. One ran a body shop in a bay in his Atlantic (later ARCO) gas station. Working without a spray booth, he came into the store one hot, sticky summer day to pick up some more paint, covered in overspray … stuck to his hair, eyebrows and clothing. Rather than do mechanical work, he thought bodywork was more profitable. The people from Atlantic Richfield thought otherwise and he moved his collision repair business. The other one-man shop was in a small, one-car garage, with a dirt floor, outside of town in a secluded, wooded area. I drove up to the garage to deliver his paint. He greeted me at the garage door with a beer and lit cigar in one hand and spray gun in the other. Today, 50 years later, his garage is gone, he’s gone and that area is fully commercialized with strip malls.

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The Technology In 1969, two-stage and three-stage paints were still a ways into the future. The paint was either metallic— or not. Metallic finish was not new in 1969, but some people still had some issues with it, spraying it wet enough to get the flakes to lie down but not so wet that it would run. “Paint effects” as they are known today, was still the realm of car customizers— people who had the time and ingenuity to experiment with multiple coats of clear and color. Two-tone paint jobs on cars were pretty much gone by 1969. However, that concept was still popular with pick-up trucks—the main body being one color and a wide swath of the side and top of the cab being white. Before the days of OSHA and the EPA, few shops had spray booths or if they had one, it was a makeshift affair and not overly effective. Some shops that were short on space even painted cars outside. At Towers, we sold a few steel “repair panels” – sheet metal that was designed to replace rotted-out body sections such as rocker panels or headlight buckets. In 1969, nobody had yet

SEPTEMBER 2019 AUTOBODY NEWS / autobodynews.com

heard of aftermarket sheet metal, as we know it today. Before computers, all estimates were written by hand—a slow, arduous process. Also around that time, insurance companies made their customers go around and get estimates from three different body shops, then they generally choose the cheapest one. Needless to say, knowing this, many shops didn’t put a lot of effort into writing estimates. In 1969, it was not uncommon to do collision repairs with a full front or rear clip—made possible because cars were so much simpler. One in particular I recall was done at a local shop, a 1968 Plymouth Road Runner built from two “donor” cars, one severely damaged in the rear, the other severely damaged in the front. The car looked great when they were done. But even my non-technical mind wondered how a car capable of that amount of wheel-torque or speed would fare under severe conditions or worse … a subsequent accident.

or Chrysler vehicles with a smattering of VW’s, Volvo’s, Saabs and Renault’s. Body shops just didn’t like to work on “those foreign cars.” They claimed parts were difficult to get, they could never find the paint code and if they did and could get some paint, it was difficult to match. Eventually, DuPont came up with factory packaged Lucite for import cars and mixing formulas became more readily available.

The Fleet In 1969, the majority of cars on America’s roads were domestic—GM, Ford

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The Future The automotive industry and especially the collision repair industry changed a lot in 50 years. I consider myself fortunate to have had the chance to enter the industry at that time and place at Towers, and was able to make a pretty good career of it. Now, two years into retirement, I don’t have to actually “do the work” anymore … I get to follow my other passion … and write about it.

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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.

Check OEM Procedures Before Disconnecting, Reconnecting Batteries The “Who Pays for What?” summer survey looked at how often shops research the OEM procedures related to disconnecting and reconnecting batteries. The results report won’t be tabulated until early this fall, but for now, we can take a look at some of the intricacies of disconnecting and reconnecting batteries when repairing a vehicle. What was once a seemingly easy step has become more complex and time-consuming as vehicle technology has evolved. Disconnecting the battery prior to repairs has become a common requirement. In the past, it was often considered necessary prior to performing any welding on the vehicle; but, many other procedures require disconnecting the battery, such as removing or disconnecting any electrical component.

• On a particular Audi, the automaker’s procedures state that when reconnecting the battery, you must “activate the one-touch up/down function for the power window regulators.” It also requires that you “Check DTC memories of all control modules, and delete the displayed entry “Undervoltage” under the vehicle diagnostic tester.” Most automakers say disconnecting the battery will set diagnostic trouble codes (DTCs). You can’t check for those without doing a post-repair vehicle scan in conjunction with reconnecting the battery. • Do you think reconnecting the battery is only a more complex process on high-end European models? Guess again. The procedure for the 2018 Chevrolet Cruze is seven pages! It notes that you also need to inform the customer that the “start/stop” feature

Automakers may designate wait times for how long after shutting off the ignition switch a technician must wait before disconnecting the battery; for the Nissan Armada, it can vary based on engine type. Credit: Nissan

varies even by engine type. You have to wait four minutes before disconnecting the battery on Armadas with some engine types, and 12 or even 20

minutes on Armadas with other engine types. Some automakers also have designated wait times after the battery has been disconnected before

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The OEM procedure for reconnecting the battery on the 2019 KIA Stinger includes steps related to the sunroof and auto-up/down power window. Credit: KIA

It’s important to remember that disconnecting and reconnecting the battery is a non-included operation. There is no standard for what procedures are required by the automakers when reconnecting the battery; it varies based on the specific year, make, model and options of the vehicle being repaired. That’s why you MUST research it for every single repair. Let’s look at some examples: 50

on the vehicle “will not be available until the vehicle is allowed to sit for at least three hours undisturbed.” How would you know to do that unless you read the procedures for reconnecting the battery? • Many vehicles have specific wait times after the vehicle is turned off using the ignition before the battery is disconnected. For the 2017 Nissan Armada, for example, the wait time

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you can disconnect certain electrical components. • You also need to check the OEM procedures for what systems need to be initialized or calibrated after the battery is reconnected. Toyota’s procedure for reconnecting the battery on some Camrys, for example, lists five such systems that need to be initialized.

tance of checking the OEM procedures for every job before you do

something as simple as disconnecting or reconnecting a battery. It’s not as

• The OEM procedures also will tell you what type of test drive (or “drive cycle”) is necessary after a battery has been reconnected. Hopefully, these examples alone are enough to convince you of the impor-

The OEM procedures, like this one, for the 2018 Toyota Camry, list the systems that must be initialized or calibrated after reconnecting the battery. Credit: Toyota

SCC’s New Dean Receives National Award Southeast Community College’s Jon Kisby recently attended the North American Council of Automotive Teachers Conference in Calgary, Alberta. He was recognized as Mitchell 1’s Educator of the Year 2019. “Being chosen for this award has been a great honor,” said Kisby. “I really appreciate the way Mitchell 1 supports technical

education, and the one-year subscription for SCC to use their products will be valuable to our students and instructors. I look forward to putting the same effort into my new position as Dean of Agriculture, Welding and Transportation as I did in my teaching career.” Kisby recently moved into his Dean position after several years as an

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simple as the procedure once seemed. And two side notes: Don’t put “R&I battery” on your estimate or invoice if what you are actually doing is just disconnecting and reconnecting one terminal. Doing so could be seen as “work billed but not performed.” Also, have you ever had to buy a battery for a customer because the one in the vehicle died while it was at the shop? If so, avoiding that is another great benefit of performing a pre-repair scan of every vehicle when checking them into your shop. That scan can catch voltage errors that point to a weak battery. You can then inspect the battery, check its date, and maybe sell the customer the new battery they need on ‘day one’ of the repair.

SEPTEMBER 2019 AUTOBODY NEWS / autobodynews.com

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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: Regulators Show New Interest in ‘Most-Favored-Nation’ Clauses What does Amazon’s contract with some online sellers have in common with State Farm’s direct repair agreement? The answer: most-favored nation clauses. Scrutiny by government regulators could be behind Amazon’s decision earlier this year to drop that clause in the United States, which required third-party sellers to price their products on Amazon no higher than they do anywhere else. Amazon had previously ceased using such “most-favored-nation” (or “price parity”) contract clauses in some European countries after government investigations. The revived interest in the potentially anti-competitive impacts of most-favored-nation clauses (MFNs) – such as the one State Farm “Service First” shops have had to sign since 2006 – was discussed by the Collision Industry Conference (CIC) “Governmental Committee” in Indianapolis in late July. Michigan attorney Stephen Bolerjack, whose practice focuses on antitrust and contract issues in the

Attorney Stephen Bolerjack said government regulations interest in most-favored nation clauses used by Amazon might offer collision repairers a window to address similar provisions in direct repair program contracts. Credit: John Yoswick

automotive industry, said that on the surface, MFNs appear pro-competitive and simplify the negotiation process between parties. But they also can focus solely on price and overlook other factors that can impact pricing, he said. “If the seller is doing something different with other buyers, there’s a 54

tendency to ignore that,” Bolerjack said, launching into a fictional conversation to offer an example. “‘Well, gee, you gave them a better deal.’ ‘Well, yeah, because he’s agreed to give me 50 percent of his business in the three-county area, so yes, I gave him a 10 percent discount. Do you agree to that?’ The answer likely will be ‘We just like the lower price. That’s what we’re interested in.’” Darrell Amberson, a collision repairer who chairs the CIC committee, said that’s the case with some MFNs in the collision industry. They may require that a shop give a particular insurer all of the lowest rates or biggest discounts the shop offers any other insurer on parts or labor, even if the shop offers no more than any one of those price-breaks to any other single insurer. Amberson works for a regional multi-location collision repair business, and said even if just one of its locations belongs to an insurer’s DRP, all of its locations must give any discounts that one store offers to that DRP to other insurers who use an MFN. Does he view MFNs as an important industry issue? It might not be up there with issues like OEM repair procedures, Amberson said, but MFNs can have a significant impact on a collision repair business. In the past, he said, it might take a shop two or three months to get all insurers on board with a labor rate increase. “If you’ve got an MFN clause in a DRP contract, you can’t ask that insurer for the higher labor rate until you get the very last insurer that you interact with to move up,” Amberson said, even if the insurer with the MFN would be willing to pay the higher labor rate. “It slows the whole process down and hurts your income.” MFNs in the health insurance market was in the news back in 2010. The U.S. Department of Justice (DOJ) and Michigan’s Attorney General sued Blue Cross Blue Shield of Michigan alleging that the “most fa-

SEPTEMBER 2019 AUTOBODY NEWS / autobodynews.com

vored nation” clauses of the insurer’s contract with hospitals are anti-competitive. The U.S. Department of Justice had brought the lawsuit against the health insurer, saying MFN clauses raise hospital prices, discourage discounting and prevent other insurers from entering the marketplace. It said that some Blue Cross clauses required Michigan hospitals to charge the insurer’s competitors up to 40 percent more for services. “This cannot be allowed in Michigan, and let me be clear: We will challenge similar anti-competitive behavior anywhere else in the United States,” said Christine Varney, the U.S. assistant attorney general’s office antitrust chief at the time. The Department of Justice later dropped the suit when Michigan passed a new law prohibiting “mostfavored nation” clauses in health insurer preferred provider contracts in

that state. A similar law was enacted in North Carolina. The Department of Justice and Federal Trade Commission (FTC) held a joint workshop in 2012 that many saw as an indication that antitrust regulators have “a reinvigorated focus on most-favored-nation (MFN) clauses.” “Although, at times, employed for benign purposes, MFNs can, under certain circumstances, present competitive concerns,” the two agencies noted prior to the workshop. “This is because they may, especially when used by a dominant buyer, raise other buyers’ costs or (prevent) would-be competitors from accessing the market. Additionally, MFNs can facilitate collusion and stabilize coordinated pricing among sellers.” At CIC in Indiana in late July, attorney Bolerjack said antitrust regulators tend to take particular interest


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in MFNs when a buyer imposing them has a significant market share (30 percent or more). Still, he said, the interest shown by regulators in MFNs used by tech giants like Amazon might offer an opening for collision repairers.

CIC Chairman Jeff Peevy said his strong belief that education can bring solutions to industry challenges, drives his leadership of CIC. Credit: John Yoswick

“It may be a time when you have an opportunity … with the feds or it might be a good time to go to your state legislatures,” he said. “These have been outlawed in certain states.” Given that an informal survey of the approximately 350 attendees at CIC in Indianapolis indicated they were first-time attendees to the quar-

terly conference, CIC Chairman Jeff Peevy started the two-day meeting by reiterating three of his personal core beliefs he feels are relevant in his role of leading CIC. “One is respectfulness or professionalism,” Peevy said. “I believe that being disrespectful to one another is counter-productive to our goal. So, as tempting as it may be at times to take a shot at an individual, at a role or at a segment within our industry, it will not be tolerated because it’s counterproductive.” His second core belief results in a bias toward learning and education, he said. “I believe that education provides the solution and solves most of our challenges on any topic,” he said. The third belief is actually the most important, he said, and that’s always putting passenger safety first. “Those families who ride in eh cars that our industry repairs should be at the forefront of our thoughts,” Peevy said. “In fact, there is an empty chair sitting on the stage to help remind us that those individuals are not here and able to speak for themselves.”

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CAA Regrets to Announce the Passing of Past President Warwick Bryan

Warwick Bryan, owner of Precision CARSTAR located in Palmdale, CA, passed away on July 24th. Warwick started in the auto body repair business in the early ‘80s as a seller of auto body repair equipment. In that role, and because Warwick was a “people” person, he got to know most shop owners in the state. Later, in 1989, he was able to acquire a shop in Palmdale, CA, which became Precision Auto Body – and then later joined the CARSTAR franchise. Warwick was past state president of the California Autobody Association (2001) and strongly believed that education and licensing/certification were going to be

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two big problems in the future. He became an I-CAR instructor to promote education and joined Assured Performance (before certification programs) because he believed the industry needed standards. In his spare time, Warwick raced vintage Formula race cars alongside his son, Alan. He was thrilled that his 14-year-old granddaughter also seemed to be following in the family footsteps when she was recently taught how to drive a stick shift race car. Warwick’s infectious personality and big smile will be missed by all that knew him. Warwick’s family plans to take him home to New Zealand for private services.

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Tips for Busy Body Shops with Stacey Phillips

How to Leverage the Certified Repair Model OEM certification programs are increasingly becoming a major topic of discussion among collision repair facilities across the country. Scott Biggs, CEO and chairman of Assured Performance Network, recently shared

The team at Mission Viejo Auto Collision in California, an Assured Performance Network certified shop. (l to r) James Dean, Victor De La Torre, Brad Clark, Todd M. Hesford, Kip Hoover and Frank Elo

how to leverage the certified repair provider model during an Elite Body

Shop Academy webinar. Biggs talked about the specialized business tools, processes and strategies that are crucial to successfully operating as a certified repairer in the changing marketplace. “Nearly 90 percent of automakers in the country have a certification program or a repair network of some kind,” said Biggs. “This has permanently changed the collision repair world.” Many shops are adopting a new business model based on becoming a certified repair provider. Not only are the programs being designed to produce a certified repair, but Biggs said they are also focused on offering customers an exceptional repair experience. Part of this includes creating a repair plan that requires OEM procedures, documents every single repair and enforces quality control throughout the business.

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

tion, which he defined as the process by which goods lose their economic value and are indistinguishable in terms of their uniqueness or brand in Four Contributing Factors to the OEM the eyes of the market. “This means that your product Certification Model Just a decade ago, Biggs said there and what you sell has the same price, was a perfect storm of conditions that look and name,” explained Biggs. In this case, he was referring to body shops having many similarities in the early 2000s, which didn’t allow for them to differentiate themselves from their competitors. Biggs said the second condition that had a significant impact was the negativJoshua Fuller (left) with customer Eric Steinberg at Fuller ity buyers often associated Auto Body in Massachusettts, one of Assured Performance with having a poor collision Network’s certified shops repair experience. “About 62 percent of the time, led to the creation of the compelling if customers had a bad repair, they model that is altering the industry. See Certified Repair Model, Page 60 The first of these is commodizaBiggs said these components will help the shop achieve and maintain high efficiency and profitability.

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Regal Collision in Vallejo, CA, Gets Major Meows for Cat Tower by Ed Attanasio

Cats, as we know, can be a little persnickety, but felines from all over the North Bay Area would have undoubtedly purred when they saw a cat tower created out of a children’s toy vehicle by Regal Collision and their crew in Vallejo, CA, for a pet fundraiser. Canines and the collision repair industry are a natural fit and that’s why there are so many body shop dogs working for free as they help their crews all over the country. But, cats are also present at shops nationwide and that’s why Regal Collision gave them some love this year. Since a few months ago, the crew at Regal Collision converted a children’s toy into a cat tower on wheels and named it “Jester’s Regal Ride”. This year’s fundraiser was named “Mardi Paws” and held by the Humane Society of the North Bay (HSNB) on June 8 at Coal Shed Brewery at the Mare Island Brewing Company in Alameda, CA. More than 400 people dressed up in their finest NOLA-inspired attire, and purchased special light-up drinkware, trinkets, colorful masks and beads on site to help attendees get into the “Big-Easy” vibe.

Body Tech Mike Elliot, Production Manager Kirk Kapfenstein and Owner Jim Boyle pose with “The Jester’s Regal Ride.” Credit: Ed Attanasio

For the past decade, the crew at Regal Collision, led by Production Manager Kirk Kapfenstein, has been designing and constructing a 58

vehicle or other pet-related piece of usable art for this fundraiser. Every year, they always steal the show.

such as ‘Jester’s Regal Ride’”, Boyle said. “It’s an honor to be able to make these every year, because we

A children’s old pedal car looked like this before its amazing conversion into a car tower. From left, Technicians Harry Olcott and Jesus Marquez worked on this Mardi Gras-themed creation. More than a dozen members of the crew dedicated approximately 120 hours into this year’s project. Credit: Ed Attanasio

In past years, they made a dog habitat that looked like a Greek temple on wheels; a pirate-themed pet habitat called “Pirate’s Ride” that contained a fully operable fish tank; “Snoopy’s Camper” for the gala in 2014 entitled “Woodstock—Peace, Love and Pets” and a cat tower they called “Cruisin’ Down the Road” for a Wizard of Oz inspired fundraiser. When it comes to helping pets in their community, Jim and Shellie Boyle, the owners of Regal Collision Repair never paws for a millisecond when it comes to supporting pet organizations in their area. The Boyles step up and support the HSNB through their participation in its annual gala and auction and other activities. Known for his nationally-acclaimed paint jobs on countless motorcycles, Kapfenstein owns and operates Killer Eye Candy in Concord, CA, when he isn’t running the production at Regal. Kapfenstein is always more than willing to help the cause, as a mega-talented artist/painter and the owner of two dogs named Simba and Nala. Jim Boyle, the owner of Regal Collision Repair and a dog named Madison, loves doing community work. Helping the HSNB is just another way to give back to the City of Vallejo, he said. “We always love creating items

SEPTEMBER 2019 AUTOBODY NEWS / autobodynews.com

believe in what the people at HSNB do and we’re big dog owners ourselves. We do as much charity work as we possibly can, because we have

been an integral part of this community for a long time. Many cats and dogs are abandoned and need to find forever homes and these types of fundraisers can help make this happen.” The HSNB provides muchneeded shelter, care and adoption services to thousands of abandoned and neglected animals in the Vallejo area. HSNB President Kristin Eddy is always ready when companies such as Regal Collision are willing to step up when it comes to helping cats and dogs. “Mardi Paws, formerly Barkitecture, was this year’s annual fundraiser to support the Humane Society of the North Bay and our efforts to provide shelter and compassionate care to our community’s animals in need,” Eddy said. “Jim and Shellie Boyle are amazing and they’ve become an integral part of our annual fundraiser. We rely on community support to succeed and that’s why we are so happy to be involved with Regal Collision.”

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Continued from Page 57

Certified Repair Model

would blame it on the car manufacturer or the car, and they would have the propensity to change brands,” explained Biggs.

Corey Ricketts, a technician at Mission Viejo Auto Collision, using Assured Performance Network’s repair documentation tool to send scan results

As a result, car manufacturers were spending excessive amounts of money trying to retain customers. The threat of liability was another condition that Biggs said contributed

to the OEM certification model. “Liability always remains on the repairer or body shop,” explained Biggs. With the advent of advanced safety features in automobiles today, he said functionality is integral to vehicle safety and is critical to the vehicle’s performance to ensure a proper repair. “Even too much paint over a sensor could cause a deathtrap,” he said. The fourth condition that created the perfect storm, according to Biggs, was that the majority of shops didn’t have the necessary equipment and training to repair vehicles properly. “The shops in the industry had no choice,” said Biggs. “They realized they were going to need to retool, retrain and re-engineer. That was a daunting task.” The Formation of Assured Performance Network From his experience working with OEMs and shops across the country as well as sitting on various board of directors of industry associations, Biggs quickly realized something significant needed to be done to help

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bring about change. He established Assured Performance Network in 2004 to help address what was going on in the industry. The non-profit consumer advocacy organization and certifying entity (501 C6) was created in 2008 to address customer service and quality issues as well as what he referred to as “repair capability.” Within a few years, Assured Performance, the Automotive Service Association (ASA), the Society of Collision Repair Specialists (SCRS) and the Alliance of Automotive Service Providers (AASP) signed a joint position statement acknowledging that OEM repair procedures are the industry’s repair standards. “This is a milestone that has permanently changed the industry,” said Biggs. “Up until that point, it was never official that those OE procedures were, in fact, the default standard in the industry.” Since then, Assured Performance has focused on certifying “bestin-class” collision repair businesses across the country. The company’s strategic partners include several of the largest auto manufacturers includ-

ing Nissan, INFINITI, FCA, Hyundai and Kia, and others. Nearly 6,000 shops have been through the five-step Assured Performance auditing process, which includes management review and evaluation, proof of compliance, an

Quality control/detailer Manual Marquina, Mission Viejo Auto Collision, checks off his final quality control list

onsite inspection and audit, and OEM approval. Biggs said that only the top five-to-ten percent of all businesses qualify. “Our number one objective was to achieve full and complete market coverage with qualified operations,” said Biggs. “Certifying these shops

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has laid the groundwork for the next frontier.” The Benefits of Certification Every year, more rigorous requirements are adopted to raise the repair-

Mission Viejo Auto Collision technician Luis Cisneros reviews print out and confirms and documents weld count and location. Management then reviews and confirms communication and documentation from a mobile device or PC

ers’ technical capabilities and meet the industry’s growing demands. In this environment, Biggs said a Continued from Page 38

Too Many Openings

ested in entering a skilled trade as opposed to seeking a college degree, the competition among all the skilled trades for those graduating students is fierce. Body repair technicians can make a very solid, middle-class income, but not initially. Five-year collision body techs are pulling down great salaries and commissions, but starting wages are among some of the lowest. This heavily influences what young men and women will focus on when considering a career decision. Add to that the fact that entry-level auto techs are expected to take on their first job with their own tools, and it does not make these careers very attractive when compared to other choices, according to Settle. In conclusion, without some form of specifically focused collective action, the transportation industry will continue to suffer from insufficiently financed and seriously fragmented efforts to solve this dilemma, 62

shop’s number one job is to increase the value of its business. “If you took two businesses sideby-side and one is certified and one is not, the one that is certified is worth more,” he said. Biggs highlighted some of the direct and indirect benefits of OE certification: • Being a unique differentiator and having the credentials to prove it; • Increasing market share through growth; • Gaining a competitive advantage to leverage OEM brands and credentials; • Developing and improving performance based on a certified repair culture; • The ability to attract, hire and train the best employees; and • The opportunity to build customer credibility and satisfaction. Biggs also shared Kaoru Ishikawa’s model of 5M Quality Production Management Principals. He said many car manufacturers have been influenced by the Japanese theorist who referenced five principals: Man, Machine, Material, Method and Measurement. Maher explained. A solution requires pooling resources and consistent public messaging, she said, in order to change the perceptions about the industry and construct a talent pipeline for tomorrow’s mechanical and collision repair technicians. It’s going to be an enormous undertaking, but unless organizations such as the TechForce Foundation dedicate themselves to solve the root causes of the problems in this industry, the shortage of qualified people will continue to hamstring the industry in many ways. In the 1950s, there was a shortage of engineers in the U.S. In the 1960s, the country didn’t have enough teachers, and in the 2000s, there was a serious need for computer programmers. Those gaps were filled by promoting those careers and getting more young people into the fold. If auto repair programs and tech schools can learn from history and get more people into shops as mechanics and body technicians, one of the industry’s major dilemmas will happily go away, and all of us will benefit as a result.

SEPTEMBER 2019 AUTOBODY NEWS / autobodynews.com

Biggs demonstrated how these principals could be applied to the collision repair industry and the certified repair model.

Man: Was the technician properly trained to repair the vehicle? Machine: Was the shop that repaired the vehicle certified with the proper tools, equipment and facilities? Material: Were OEM-approved parts and paint materials utilized?

Method: Were OEM repair procedures followed? Measurement: Were the vehicle codes scanned and the actual repair documented to provide irrefutable proof the vehicle was repaired properly and is fully functional and safe?

“When you can provide all of that with proof and it can be upheld in court, you can provide a certified repair, which is the ultimate goal for your customer,” said Biggs. To watch the free webinar, visit: https://daveluehr.mykajabi.com/

AutoNation Names Cheryl Miller CEO, President

AutoNation, Inc., America’s largest automotive retailer, announced on July 22 that Cheryl Miller, AutoNation’s chief financial officer, has been appointed chief executive officer and president, replacing Carl Liebert. Miller is the first female CEO of a publicly-traded automotive retailer. “On behalf of AutoNation, I would like to thank Carl for his service, including the passion and enthusiasm he brought to the company. We wish him all the best in his future endeavors,” said Mike Jackson, AutoNation’s executive chairman. Jackson went on to say, “Cheryl has extensive knowledge of automotive retail, having been with AutoNation since 2009 and served as CFO since 2014. In addition, her broader career, including at JM Family Enterprises and Alamo/National Car Rental brands, will bring outside, industry-leading, automotive experience to the role, as AutoNation continues to build its core business and brand extension strategy.”

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Model Y and Gigafactory 3 Heralds a Faster, More Profitable Tesla by Simon Alvarez, Teslarati.com

Tesla’s second-quarter report and its succeeding earnings call provided updates on what could very well be two of the electric car maker’s most pertinent projects to date: the Model Y ramp and Gigafactory 3 in Shanghai, China. MODEL Y When Elon Musk unveiled the Model Y last March, he provided a rough timeline for the upcoming vehicle. During his presentation, Musk mentioned that the all-electric midsize SUV would start deliveries starting fall 2020 for the Long Range, Dual Motor AWD, and Performance versions, and spring 2021 for the Standard variant. Since then, several reports have emerged which hinted at Model Y production being far less volatile and challenging than the Model 3’s manufacturing ramp, a task so difficult that Musk candidly called the period as “production hell.” In the Q2 Update Letter, Tesla confirmed that preparations for Model Y production have begun in the Fremont, CA, factory. The company also mentioned

that due to the overlap in the components of the Model Y and the Model 3, the company was able to “leverage existing manufacturing designs in the development of the Model Y production facilities.”

start the manufacturing of the SUV earlier than expected. GIGAFACTORY 3 Over in China, another understated Tesla project is taking shape. When Musk attended Gigafactory 3’s groundbreaking ceremony back in January, he stated that initial production of the Model 3 in the facility would begin by the end of the year. Six months later, Gigafactory 3’s general assembly building is practically complete and its interior is already being tooled.

Tesla Chief Designer Franz Von Holzhausen confims that test rides are available. Credit: Gene Liu/Teslarati

Several other hints have also emerged suggesting that Tesla will ramp the Model Y with its best technologies available. Considering all the innovation that is being implemented for the Model Y, it appears that Tesla is doing all it can to ensure that the vehicle does not encounter delays with its rollout. In fact, with Fremont already being prepared for the Model Y, and with giant casting machines being designed specifically for the vehicle, it almost seems like Tesla is trying to

Gigafactory 3 Model. Credit: Gene Liu/Teslarati

Quite interestingly, it is not Musk that is providing ambitious timeframes for Gigafactory 3 anymore. Instead, it is Chinese government officials. Local reports, for example, have suggested that China is looking to start initial

Model 3 production as early as September, with the facility ramping to an output of 150,000 vehicles per year early next year. Gigafactory 3 has exceeded expectations since work in the facility entered overdrive. Just like the Model Y ramp, the key to Gigafactory 3 lies in the company’s innovations with Model 3 production. There is no doubt that 2019 is turning out to be an incredibly challenging year for Tesla. Following the first quarter, which saw lower-than-expected vehicle deliveries, Tesla set new delivery records in the second quarter, only to end once more at a loss. Yet, together with this, the company also ended the quarter in more stable footing, as shown by its $5 billion in cash, the largest in its history. Ultimately, the Model Y and Gigafactory 3 seem to be two projects that are heralding a new era for Tesla: one that is more mature, precise and poised to disrupt at a scale that’s never seen before. We thank Teslarati.com for reprint permission.

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SEPTEMBER 2019 AUTOBODY NEWS / autobodynews.com

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autobodynews.com / SEPTEMBER 2019 AUTOBODY NEWS

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Wilson vs. Safelite Lawsuit Comes to an End Through Court of Appeals by Emmariah Holcomb, glassBYTEs.com

The United States’ Sixth Circuit Court of Appeals three-judge panel ruled to dismiss Dan Wilson’s lawsuit which highlighted employee benefit plan issues at Safelite Group, Inc. (Safelite).

‘This dispute centers on what constitutes an employee pension benefit plan under the Employee Retirement Income Security Act (ERISA), and its resolution determines whether the duties and protections of ERISA apply to the plan at issue. Wilson, the former president and CEO of Safelite, sued Safelite for breach of contract and negligent misrepresentation arising from the company’s alleged mismanagement of its deferred compensation plan for executive employees. Finding that the plan was an employee pension benefit plan under 29 U.S.C. § 1002(2) (A) (ii) and not a bonus plan exempted from ERISA

under 29 C.F.R. § 2510.3-2(c), the district court granted Safelite’s motion for partial summary judgment,’ a portion of the court’s decision reads. The case began in 2016 when Wilson made sued his former employer for breach of contract. Wilson was Safelite’s president and CEO of from 2003 to 2008, according to court documents. In 2005, the company’s board of directors created the Safelite Transaction Incentive Plan (TIP), which ‘provided for substantial bonus payments to its participants—five Safelite executives, including Wilson—if they secured a strategic buyer for the company,’ according to court documents. Things changed for the company in 2006, as it was acquired by Belron. According to court documents, Safelite came up with a solution to combat substantial TIP payments. ‘Realizing that Belron’s acquisition would trigger significant payments under the TIP that could increase participants’ tax obligations, the board adopted the Safelite Group, Inc. nonqualified deferred compensation plan (Safelite Plan),’ a portion of court documents reads.

The plan allowed participants to defer two types of income to avoid certain tax consequences. When the Safelite Plan was implemented, four executive employees that included Wilson, were eligible for it.

According to court documents, the two types of income that could be deferred were compensation and TIP amounts. An employee’s compensation was defined as the base annual salary and any annual or long-term bonuses; meanwhile, the TIP amounts were triggered by Safelite’s sale to Belron in 2006 for $334 million. ‘Wilson properly submitted the forms to become a participant in the

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SEPTEMBER 2019 AUTOBODY NEWS / autobodynews.com

Safelite Plan. Between 2006 and 2013, he elected to defer hundreds of thousands of dollars of compensation each year,’ a portion of the court documents read. Wilson left Safelite in July 2008. His complaint showed he had a total of $9,111,384 in deferred compensation. That year, however, a federal audit showed some of Wilson’s elections failed to comply with a tax statute regulating deferred compensation plans. This resulted in Wilson owing income taxes while also gaining tax penalties, according to the court’s decision. Lower courts sided in Safelite’s favor; however, Wilson appealed. He argued the Safelite plan fell under the bonus plan exemption from ERISA. The Court of Appeals panel unanimously disagreed with Wilson. “Because the Safelite Plan is not designed as a bonus plan and instead distributes deferred amounts of nonbonus income, it is not a plan providing for payments made ‘as bonuses for work performed,” a portion of the opinion reads. We thank glassBYTEs.com for reprint permission.


Truck Topics with Gary Ledoux

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

Hey Buddy … Got a Millisecond? During the 2nd annual HD Repair Forum event held in Fort Worth, Texas, in March 2019, John Spoto, National Heavy Duty Truck Commercial Fleet manager for the 3M Company gave a fascinating presentation on the effects of a crash and how so much can happen in a very short amount of time. The following is a brief synopsis of that presentation. It is not meant to be scientifically precise, but only meant to give some perspective on what happens during a crash and what must be done to return the vehicle to road-worthiness. To begin with, there are many variables that determine the severity of a crash including: • The speed of the moving vehicle. Did you know the faster you drive, the greater the impact or striking power of your vehicle? The laws

of physics determine that the force of impact increases with the square of the increase in speed. So, if you double the speed of a vehicle, you increase its force of impact four times. • The weight of the moving vehicle. This is especially crucial with trucks. Is the truck traveling empty or loaded? If it is loaded, how much does it weigh and how secure is the load? • What is the nature of the object the truck will come into contact with? Is it completely stationary and immovable, like a reinforced brick or block wall, a bridge abutment, or a large tree? If so, the impact energy of the truck will be pushed back in an equal amount and the truck will sustain the entire force of the crash. If the truck hits something that will move, like a parked vehicle, for instance, the other vehicle will absorb some of the energy. The deceleration

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of the truck would not be so abrupt and thereby mitigating some of the damage to the truck and occupants. • If truck “A” is going 60 mph and hits truck “B” of equal size and weight in a head-on manner, also going 60 mph, it would be the same as truck “A” hitting an immovable object at 60 mph. The identical speeds and mass cancel out each other or, better said, the two objects push back on each other with equal force. But this rarely happens. Chances are if a head-on collision is to occur with a semi-truck, it will more likely be with a car of considerably smaller mass and weight. From a pure physics point of view, this would help mitigate the damage to the truck, but could be catastrophic for the car. • What is the direction of impact? In other words, was it a head-on crash or a glancing blow which could have dissipated much of the crash energy? SO. CALIFORNIA

What isn’t a variable is a law defined by Sir Isaac Newton – the law of inertia. It says an object in motion tends to stay in motion until acted upon by an outside force. Think in terms of the payload being transported by the truck in question. When the tractor hits the brick wall, Newton’s law of an outside force taking over to stop motion takes over to stop the tractor – but his law of inertia says the load and trailer want to keep going! And just think … what is going to take days or maybe weeks to repair, happened in a matter of milliseconds. How long is a millisecond? It is onethousandth of a second – the time it takes a camera flash to go off. A housefly’s wings flap every three milliseconds. Eight milliseconds is equal to 1/125th of a second or a common camera shutter speed. Researchers at MIT determined that the human eye can interpret images exposed for as litNO. CALIFORNIA

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autobodynews.com / SEPTEMBER 2019 AUTOBODY NEWS

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tle as 13 milliseconds. Anything faster goes undetected. Zero Milliseconds This is the point where the front bumper first makes contact with a barrier or some other object – what you might call the “point of no return.” Using specific materials, parts and fastening protocols, engineers have designed the truck to collapse in a predictable manner to protect the truck’s occupants. This is where all that engineering pays off. And if the truck has been in a prior accident, this will tell if the repair was done in a safe and complete manner—or not. Five Milliseconds The truck’s body structure is already absorbing and managing crash energy. Each section area within the cab has a specific function in the event of a collision to channel the impact energy around the occupants. Ten Milliseconds The front bumper is fully collapsed and crash forces are being channeled through upper and lower members and body panels. Panels are designed to collapse to a certain point to not only absorb the energy, but to keep the occupants from becoming trapped inside. This is also called “Controlled Deceleration.” Starting in January 1965, Ford Motor Company crashed over 175 cars into a concrete barrier at 30 mph. The reason, to build a vehicle frame and structural parts that deform in a uniform manner upon impact to absorb the energy and mitigate cabin deformation, thereby saving the car’s occupants. The culmination of this testing would be introduced in all 1968 model Ford cars with what was being called a “Controlled Crush” front end. Other car and truck makers would follow. 15 Milliseconds The engine has been contacted and the subframe is being deformed. Different strengths of metal are used in the truck’s construction to either “break away” or transfer collision energy to other parts of the truck. (Before the

days of “Controlled Deceleration” the engine may have penetrated the cab at this point injuring the driver.) 20 Milliseconds The structure forward of the engine is now fully deformed and the crash energy is being channeled into the roof rails, rocker and rear portion of the engine subframe. 30 Milliseconds The cab continues to deform. Crushzones crumple and redirect the crash energy around the truck’s occupants. (Crush Zones can be seen as dimples, slots drilled in body parts or different types and thicknesses of metals. Ribs or stamped areas across the width of a part are also called convolutions and designed to aid in a Controlled Deceleration event.) In a repair bulletin, Volvo notes, “The cab frame and body panels form a cage that protects the driver and passenger. The cab exceeds protection safety standards in case of collisions or rollovers. Unlike conventional cab structures, where a load carrying frame supports the outer body panels, both the VN and VHD cab frame and body panels are designed to be part of the load carrying structure.” 40 Milliseconds As the crush zones deform, the crash energy is transferred to the dash, front cowl, floor pan and rockers. At this point, some sheet metal may have been bent, some kinked. Bent metal, depending on its strength and hardness may be bent back into shape. Kinked metal generally has to be replaced, especially if it is high-strength steel. (Straightening kinked metal could weaken it making it collapse in a subsequent crash.) 50 Milliseconds The engine assembly contacts the dash. The “A” pillar, roof, door pillar, rockers and floor pan carry the balance for the crash load. 67 Milliseconds The truck has reached maximum deformation. The penetration into the

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occupant area was controlled and limited due to the construction of the truck and materials used. The crash load was directed around and under the truck occupants. But even in the moment, the truck has completely stopped, momentum continues possibly forcing the payload through the back of the cab. 100 Milliseconds Event is complete Now, the damage estimating and repair process begins. Referring again to a Volvo collision repair bulletin, they specifically point out, “When major body damage occurs, you should replace entire sections instead of changing parts within a section. Replacing an entire section preserves the structural integrity of the cab and generally takes less time.” When reviewing or estimating a crash, the primary point of impact, probably the front of the cab, will no doubt get the most attention as it is the most obvious place to look. However, there could be considerable “Indirect Damage” which could include the frame or any part of the truck as the force of the collision was dissi-

pated through the entire vehicle. This is why it is so important to look over the entire truck, not just the point of impact. Indirect Damage could have occurred on mechanical parts, electrical parts, engine brackets, seat brackets, air valves, dashboard and door trim panels just to name a few. Indirect Damage could have also loosened, deformed or separated seam sealer, cavity foams or those parts secured with adhesives. Some repairers may overlook foams and sealants, yet they perform a vital role in the drivability, and performance of the truck as well as driver comfort. Foam and sealants can be used to reduce noise, vibration and harshness in the cab, stiffen the body structure, as well as seal out dust, rainwater or unwanted fumes. And while you’re at it, don’t forget to apply corrosion protection. When making collision repairs, remember to never compromise safety. Return the truck to the driver/owner with the same structural integrity it had prior to the crash because in a subsequent accident … milliseconds still count!

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Hyundai and Kia Airbag Lawsuit Says Airbag Control Units Fail by David A. Wood, CarCompaints.com

A Hyundai and Kia airbag lawsuit alleges both automakers, in addition to parts manufacturer ZF TRW, are guilty of installing defective airbag control units in these models.

• 2012-2016 Kia Optima Hybrid • 2013 Kia Forte • 2013 Kia Forte Koup • 2013-2019 Kia Optima • 2013-2019 Hyundai Sonata • 2013-2019 Hyundai Sonata Hybrid • 2014 Kia Sedona

According to the plaintiff, the airbag problem is especially dangerous because it occurs only when a crash occurs, the very time an airbag is necessary. The allegedly defective component is the integrated circuit of the airbag control unit that can suffer from electrical overstress.

The problem of overstress is allegedly caused by the electrical signals from the airbag sensors which prevent the airbags from deploying. The proposed class-action lawsuit also alleges the seat belt pretensioners will fail at the same time the airbags fail. Hyundai and Kia allegedly knew about the airbag problems for years before finally letting customers know. The plaintiff claims ZF TRW and both automakers investigated airbag failures between 2011 and 2015 but waited until 2015 to inform the National Highway Traffic Safety Administration (NHTSA). Hyundai and Kia also allegedly downplayed the serious defects even when vehicles were finally recalled in 2018. According to NHTSA, airbag failures killed four people and injured six by March 2018 when federal safety regulators opened an investigation into failures in 2011 Hyundai Sonatas and 2012-2013 Kia Fortes. Tennessee plaintiff Jennifer Johnson owns a 2014 Hyundai Sonata she purchased in July 2015 from a Kia dealership. Although she doesn’t claim the vehicle has suffered airbag prob-

lems, Johnson says if she would have known about the airbag control units she wouldn’t have purchased the Sonata.

The plaintiff says Hyundai and Kia vehicles are worth less than they should be because of the airbag control unit problems and allegedly none of the vehicles were fit for ordinary use by consumers when the vehicles were sold. In addition, Hyundai and Kia continued to profit from selling the vehicles by concealing the true nature of the problems. By claiming the automakers

knew of airbag problems, the plaintiff points to an incident in August 2011 when a Kia Forte airbag failed in a Chinese crash. An investigation conducted with ZF-TRW allegedly showed the airbag control unit told the airbags not to deploy. Then in February 2012, Hyundai learned of a crash of a 2011 Hyundai Sonata with airbags that failed to deploy. ZF-TRW allegedly determined the airbag control unit had been damaged by an electrical overstress condition. Both Hyundai and Kia issued recalls due to airbag control units that were susceptible to electrical overstress that occurred during crash impacts. But the lawsuit alleges Hyundai and Kia failed to recall all the affected vehicles, making owners believe similar vehicles were safe. The Hyundai and Kia airbag lawsuit was filed in the U.S. District Court for the Central District of California, Southern Division - Johnson, et al., v. Hyundai Motor America, Inc., et al. The plaintiff is represented by Keller Rohrback. We thank CarCompaints.com for reprint permission.

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Ford Warns Elon Musk That Tesla is Competing With the ‘Ultimate Disruptor’

Ford CEO Jim Hackett admits that the future of the automobile will be electric. Amidst this transition, the CEO noted that there will be disruptors that are bound to emerge. Yet, despite the arrival of these competitors, Hackett believes Ford will ultimately have what it takes to maintain its place in the auto industry. Poppy Harlow of CNN Business, who was interviewing the Ford CEO, mentioned how Tesla CEO Elon Musk remarked that the Detroit-based veteran carmaker will likely not make in the next recession. Responding to the interviewer, Hackett candidly noted while he respects Musk as a competitor, Tesla will be facing a great challenge in Ford because the automaker is a disruptor itself. “There’s a disruptor coming. I happen to compete with a rocket scientist who’s really smart, and I respect that about him. And yet, he’s competing with the ultimate disruptor in Henry Ford. When you go seven miles from here and you see the Rouge Complex, Henry bet the company, he goes bankrupt because there’s no industrial model in the world that has 100,000 people work-

eration. The automaker already sells more electric cars than any other car company on the market, but production-wise, Tesla’s factories are yet to achieve the same unanimous recognition as Henry Ford’s River Rouge facility. This, according to Hackett, is where Ford has a distinct advantage over Tesla. Thus, the CEO noted that he is not too worried about competition from the Silicon Valley-based electric car maker. “So let’s go back to the challenges of the disruptor. How well does their pro2019 Ford F-150 Raptor. Credit: YOURCAR via Youtube duction system work? How Hackett’s statements harken fast were they building cars? Which back to what could very well be the is saying that fitness, as we were saymost disruptive era of Ford’s history. ing, is a compendium of things that Led by Henry Ford, the company you have to get right. It’s not just the opened its River Rouge factory in technology in this case. You have to 1917, and it revolutionized the pro- have an industrial model. Ford’s reduction of automobiles to such a de- ally good at this,” Hackett said. Apart from his statements about gree that Henri Citroën, Louis Renault and Kiichiro Toyoda, the the competition rising from compafounder of Toyota, all visited the nies like Tesla, the Ford CEO stated that the Detroit-based automaker is plant to study how Ford operated it. Tesla, for its part, has exhibited fully committed to the transportation great growth over its 16 years of op- industry’s shift to autonomous vehiing in it. That one did, and [it] took 12 hours to build a vehicle before [Henry Ford] built it. It went down to 52 minutes. Today, we build an F-150 every 53 seconds,” Hackett stated.

Heidi King Steps Down as Head of the NHTSA by Emmariah Holcomb, glassBYTEs.com

“How do you know when you are working too hard? When your vacation is reported as a career change,” a LinkedIn post from Deputy NHTSA Administrator Heidi King reads, who will now be resigning effective Aug. 31, 2019. The post highlighted King’s discomfort with not being named as the head of the National Highway Traffic Safety Administration (NHTSA). She has worked there for two years. King suggested she would be stepping down from her position, and at the time did not state a reason why. King has been trying to gain confirmation as the head of the National Highway Traffic Safety Administration (NHTSA) since June 2018, when she was chosen by the

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administration to lead the agency for the first time. King, however, did not gain Senate approval in last year’s Congress and was nominated by the administration for a second time at the start of 2019. When she gained the Senate’s approval in April 2019 there was no set timeframe for deliberations from the Congressional Floor. Now she has decided to step down amid a battle between the federal government and California over gas mileage rules. King will be replaced by U.S. Department of Transportation (DOT) Deputy General Counsel James Owens, who will serve as deputy NHTSA administrator and the agency’s acting chief according to the DOT. We thank glassBYTEs.com for reprint permission.

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cles. Hackett said he expects Ford to have fully autonomous cars ready by 2021, which will be ready for realworld testing without human drivers. Similar to Musk’s statements, the Ford CEO mentioned that the company’s self-driving initiatives will largely be dependent on regulators. For now, and with upcoming vehicles such as the Tesla Pickup Truck preparing to enter its most profitable segment, Ford is keeping busy by establishing strategic partnerships. Among these involve electric truck startup Rivian, which received a $500 million investment from Ford, and Volkswagen, whose partnership will allow the companies to come up with two new electric vehicles for the European market. Ford has also invested $1 billion in Argo, a company that develops autonomous driving technology. We thank Teslarati.com for reprint permission.

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AAPEXedu to Address Aftermarket Trends

The 2019 AAPEXedu program will include ten sessions for automotive service professionals, auto parts retailers and warehouse distributors to help them prepare for the future, while also enhancing the service they provide to today’s customers. AAPEX represents the more than $1 trillion global automotive aftermarket industry and will take place Tuesday, Nov. 5, through Thursday, Nov. 7, 2019, at the Sands Expo in Las Vegas. The content for this year’s AAPEXedu is based on the results of an AAPEX survey during which buyers were asked to identify topics of interest to them. The sessions are part of a robust AAPEXedu program that also includes Let’s Tech presentations, and Mobility Garage: Products and Training for Tomorrow featuring underhood training and two sections - Shop Equipment and Technology and Electric Car and Alternative Fuel/Energy. To register, visit aapexshow.com/attendee. For more information, visit www .aapexshow.com or email info@ aapexshow.com.

State Farm Hit by Data Breach by Bethan Moorcraft, Insurance Business Magazine

State Farm – the largest property and casualty insurance provider in the US - has been compromised in a credential stuffing attack. The firm acknowledged the cyberattack, filing a data breach notification with the California Attorney General, and on Wednesday, Aug. 7, it sent out “Notice of Data Breach” emails to users whose online account log-in credentials were obtained by a bad actor. The insurer’s data breach notification email read: “State Farm recently detected an information security incident in which a bad actor used a list of user IDs and passwords obtained from some other source, like the dark web, to attempt to access to State Farm online accounts. During our investigation, we determined that the bad actor possessed the user ID and password for your State Farm online account.” This type of cyberattack is called credential stuffing. Attackers will buy or take usernames and passwords that were leaked from other companies’ data breaches and they will try to use those credentials to log-in to other accounts and sites. It

NABC Names Kristle Bollans From Hertz as New Board Member

The National Auto Body Council (NABC) has named a new member to the NABC Board, filling an open position. Kristle Bollans, director of Replacement Accounts for the Hertz Corporation, joined the NABC Board in August. She has been with The Hertz Corporation for 16 years, holding positions in both the Airport and Off Airport Divisions. In her current role, Bollans oversees a large team of Account Representatives across the US who support both Insurance and Fleet Replacement companies onsite at their facilities. Her team has daily interaction with insurance adjusters and collision repair shops. Prior to that, she worked in several different rental locations, and as an on-site at claim centers interacting directly with adjusters and shops on a daily basis. Bollans has an incredible passion for people and service and is a bold, progressive, forward thinker. With these attributes, she has been able to drive results not only in her division, but in other segments of the business as well. She is a trusted advisor for Hertz and her customers. 76

Her passion about the collision industry extends to giving back those in need. She is a member of the WIN committee and the CREF scholarship review committee. In addition, she is a leader in Hertz’s Woman’s Employee Resource Group committee volunteering her time to the community. Bollans studied Human Resources and Business Management and currently resides in Madison, WI, with her husband and two children. “We have accelerated our strategic initiatives through the guidance and leadership of our NABC board members,” said Bill Garoutte, president and CEO of the NABC. “We welcome Kristle to the NABC board and look forward to working with her and our current volunteer board members to continue to build positive awareness for the collision industry and enhance the foundation of the wonderful institution of The NABC. Also, we thank these board members for their commitment of time and resources to help advance our important cause.”

SEPTEMBER 2019 AUTOBODY NEWS / autobodynews.com

works well against people who use the same password for lots of different sites – something many people are in the habit of doing. State Farm confirmed in its “Notice of Data Breach” email that the attacker was able to get usernames and passwords of some policyholders’ accounts, but that no personally identifiable information was viewable, and no fraud was detected, according to a Bleeping Computer report. It remains unknown if the bad actor actually logged into the accounts. In addition to notifying impacted users, State Farm has also reset all passwords for the accounts whose credentials were breached by the hacker. Credential stuffing attacks have been on the rise, with a number of incidents reported this year. Retailers are usually the top target for credential stuffing attacks, but criminals also continue to target companies within the financial services space, according to Aaron Zander, head of IT at HackerOne, a bug bounty and vulnerability disclosure platform provider. “That password we used hundreds of times in the early 2000s has

come back to haunt us,” Zander explained. “People shouldn’t reuse passwords. But people still do and criminals know this. Adopting good password practices, such as the use of password managers and multi-factor authentication and changing passwords immediately upon receiving notification that your account has been compromised, can go a long way in mitigating against credential stuffing attacks.” “At the same time, it’s also up to companies who operate websites and applications to prevent themselves from becoming testbeds for valid credentials,” he added. “Preventing one person or one IP from submitting more than just a handful of logins or even the same one is important, both in the total amount they are trying and how fast they can submit. Using tools like captcha, email magic links, rate limiting, browser detection and generally thinking about how a login page can be abused can all contribute to removing a website from the field of play for credential testing/stuffing.”

We thank InsuranceBusinessMag.com for reprint permission.

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