September 2022 West Edition

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40 YEARS

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AUTOBODYNEWS.COM

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California DMV Accuses Tesla of False Advertising for Autopilot, FSD by Steven Loveday, InsideEVs

According to the California DMV, Tesla has falsely advertised its Autopilot and Full Self-Driving (FSD) features on its website. Moreover, Tesla CEO Elon Musk and the company itself have made a habit of touting the capability of these features to the point that some people may believe they are fully autonomous. Tesla doesn’t currently make any feature that can drive a car by itself. Instead, the Autopilot and Full Self-Driving capability are driver-

assist systems. Both require a driver to be in the driver’s seat, paying attention and ready to take control at any time.

The DMV’s accusations came forward after complaints were See False Advertising, Page 16

Company Says it Has Recent Auto Body Shop Estimate Data for Sale by John Yoswick

The ongoing discussion about auto body shop data privacy at the quarterly Collision Industry Conference (CIC) meetings took a new turn this summer when an association leader described what a data aggregator company had recently offered to sell to his organization. Aaron Schulenburg, executive director of the Society of Collision Repair Specialists (SCRS), said the company contacted him, after speaking with one of SCRS’s state affiliate groups, to see if SCRS might be

interested in acquiring data it has on recently-written collision repair quotes. The company, which Schulenburg did not identify by name, told him the information could be used by SCRS member shops to contact consumers who received a recent estimate to say, “Hey, I know you’ve gotten a recent quote, and our business could do the work for you.” Schulenburg asked what type of information was available. The company told him, “through our data aggregation partners and proSee Data for Sale, Page 20

Vol. 40 / Issue 9 / September 2022

Reports: GEICO Closing All Offices in California GEICO is closing all of its offices in California, according to reports. The company shut down all of its 38 offices in the state and hundreds of GEICO workers are being laid off, the news website SFGate reported. “We continue to write policies in California, and we remain available through our direct channels for the more than 2.18 million California customers presently insured with us,” GEICO stated in a Sacramento Bee article. Chevy Chase, MD-based GEICO is private subsidiary of Berkshire Hathaway and one of the na-

tion’s biggest auto insurers. GEICO reported a 63% drop in pretax underwriting income in 2021.

Fitch Ratings said in its U.S. Personal Lines Market Update that private See GEICO Closing, Page 16

SEMA Show to Feature Educational Program Focused on Personal and Professional Development Dozens of industry leaders and experts will take the stage at the 2022 SEMA Show Education Program, where attendees will have the opportunity to learn about current and future trends, proven business strategies and new opportunities while at the annual event taking place in November in Las Vegas. Beginning Oct. 31—the day before the official opening of the four-day SEMA Show—the 2022 SEMA Show Education Program will include more than 70 free and premium sessions within 14 tracks. Showgoers may choose individual sessions across different tracks, mixing and matching the offerings to create a personalized agenda that meets one’s individual needs. “The Education Program is one of the SEMA Show’s key pillars, and it’s always been highly rated by participants,” said Pamela Brown-Matthis, SEMA director of education. “We challenged ourselves and pushed to make the program better than ever. We focused heavily on bringing in elite subject matter

experts and high-profile industry leaders. SEMA Show attendees are encouraged to take advantage of the opportunity to hear from industry experts while at the show.”

SEMA Show attendees can learn about current and future trends, proven business strategies and new opportunities from industry leaders and experts as part of the 2022 SEMA Show Education Program.

New this year are four sessions focused on challenges and opportunities associated with Diversity, Equity, and Inclusion (DEI) in the workplace. The first DEI session, “Diversity and Inclusion: How You Can Advance Equal Opportunity in Your Workplace,” See SEMA Show, Page 22

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CONTENTS

AUTOBODY REGIONAL 2 New Auto Glass Now Locations Open in

Yoswick - Gerber Collision CEO Talks Parts, Personnel Challenges ���������������������������������� 36

ltedesco@autobodynews.com

California ������������������������������������������������������� 6 Billings, MT, Firefighters Battle Shop Blaze ������� 6

NATIONAL

CAA to Host Labor Rate Presentation �������������� 18

3M, CREF Donate Products to 300 Schools ���� 61

California DMV Accuses Tesla of False

Agenda Announced for CONNEX 2022 ������������ 22

Higher Than Rest of the U.S. ������������������������� 8 CAWA Announces the 2022 Automotive High School Teachers’ Scholarship Award Winners ������������������������������������������� 13 Classic Collision Adds 2nd Location in Vegas � 10 Fix Auto Beverly Hills Opens in California �������� 10 Ford, GM, BMW to Help Schedule EV Charging in Sacramento, CA �������������������������������������� 18 Hughes Appointed to CAWA’s Board of Directors ����������������������������������������������������� 13 NABC Joins USAA’s Ongoing 100th Anniversary Celebration by Donating 5 Vehicles to Washington Military Members �������������������� 16 Reports: GEICO Closing All Offices in California � 1 Tesla May Be Texas-Based Now, But It’s Still a Dominating Force in California ������������������� 8 Two Prineville, OR, Repair Businesses Rebranded ��������������������������������������������������� 12 COLUMNISTS Anderson - Don’t Let Higher Sales Take Your Eye Off the Ball ������������������������������������������� 26 Attanasio - First Responders Convene at CARSTAR Chilton Auto Body Through the NABC F.R.E.E.™ Program ���������������������������� 48 Attanasio - Forward-Thinking Program Creating Great Auto Body Techs of the Future ���������� 46 Attanasio - How is Your Auto Body Shop Dealing with the Great Resignation? ����������� 34 Attanasio - Mike’s Auto Body Gave Away 100 Cars in 21 Years, Changing Countless Lives �� 50 Phillips - How to Profit from ADAS Services and Calibration—It’s Not Just About the Targets �������������������������������������������������������� 28 Phillips - Lemonade to Use Mitchell’s Claim Solutions for Newest Product ��������������������� 52 Phillips - OEM Roundtable Working to Improve Quality of Collision Repair ��������������������������� 40 Phillips - Repairify’s New Partnership with ATG Will Provide Industry with Advanced Diagnostic Training �������������������������������������� 47 Phillips - Technician/Painter Recovering from Severe Burns Recognized During 11th Annual CIF Gala ������������������������������������������� 44 Strandberg - Build Your Collision Repair Business with a Buyer in Mind ������������������� 38

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

Serving Alaska, California, Hawaii, Idaho, Montana, Nevada, Oregon, Washington and Wyoming. Autobody News is a monthly publication for the collision industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2022 Adamantine Media LLC.

American Chevrolet ����������������������������������������� 6

Kia Downtown Los Angeles ��������������������������� 42

American Icon Automotive Finishes ��������������� 26

Kia Motors Wholesale Parts Dealers ��������� 56-57

Audi Wholesale Parts Dealers ������������������������ 47

Kia of Carson �������������������������������������������������� 50

CREF Invites Collision Industry to Fall 2022

Auto Data Labels �������������������������������������������� 31

Kia of Irvine ���������������������������������������������������� 18

High School & College Transportation

AutoNation Infiniti Tustin �������������������������������� 34

Launch Tech USA ������������������������������������������� 27

Student Career Fairs ������������������������������������ 61

Axalta Coating Systems ����������������������������������� 2

Lithia Honda of Medford ��������������������������������� 36

BendPak ��������������������������������������������������������� 19

LKQ Corporation ��������������������������������������������� 29

BMW Wholesale Parts Dealers ���������������������� 54

Mazda Wholesale Parts Dealers ��������������������� 60

Ford Testing Robot EV Charging Station ���������� 39

Car-O-Liner ����������������������������������������������������� 11

Mercedes-Benz Wholesale Parts Dealers ������� 60

Ford’s July Sales Up 37% Compared to Same

Car Pros Kia ���������������������������������������������������� 22

Michael Hohl Motor Company ������������������������ 40

Car Pros Kia Renton ��������������������������������������� 34

MINI Wholesale Parts Dealers ����������������������� 54

Carworx Distribution, Inc ������������������������������� 21

MOPAR Wholesale Parts Dealers ������������������� 37

Certified Automotive Parts Association ���������� 16

Niello Audi ����������������������������������������������������� 39

Chase Chevrolet ����������������������������������������������� 8

Nissan/Infiniti Wholesale Parts Dealers ���������� 59

Tarnishing Millions of Customer

Citrus Kia-Ford ����������������������������������������������� 26

Novato Chevrolet ��������������������������������������������� 6

Credit Reports ��������������������������������������������� 62

Classifieds ������������������������������������������������������ 62

Porsche Wholesale Parts Dealers ������������������� 61

Colortone Automotive Paints �������������������������� 35

PPG ������������������������������������������������������������������ 9

Corwin Buick-GMC ����������������������������������������� 28

Roseville Kia ��������������������������������������������������� 39

Courtesy Chevrolet San Diego ������������������������ 53

Sandberg Volvo Cars �������������������������������������� 22

Dominion Sure Seal, Ltd ��������������������������������� 12

Santa Monica Audi ���������������������������������������� 35

Eagle Abrasives ��������������������������������������������� 17

SATA Dan-Am Company ���������������������������������� 5

Equalizer Auto Glass Tools ����������������������������� 24

SEMA Trade Show ����������������������������������������� 25

FH Dailey Chevrolet ������������������������������������������ 6

Shoot Suit ������������������������������������������������������ 13

AirPro Diagnostics, CCC Partner ���������������������� 55 Average Collision Repair-Related Rental in Q2 Decreases by Half a Day from Q1 ��������������� 58 BendPak Announces Leadership Plan ������������� 23 Biden Signs $740B Climate, Tax and Health Care Bill into Law ���������������������������������������� 51 CAA Reports on BAR Advisory Group Committee Meeting ������������������������������������ 24 CIECA Forms AI Committee ���������������������������� 51 Collision Repair Association Conducting Study of Blend Time Formula ���������������������� 43 Company Says it Has Recent Auto Body Shop Estimate Data for Sale ����������������������������������� 1

CREF Raises $100,000 at Golf Fundraiser ������� 22 Ford Recalls Maverick Trucks Over Side Curtain Airbags ������������������������������������������� 44

Month a Year Ago ��������������������������������������� 55 GM Offering EV Education ��������������������������������� 4 Hertz Posts Q2 Revenue of $2.3B, Net Income $940M �������������������������������������������� 48 Hyundai Gets $19.2 Million Penalty for

Lightning Strikes Across America: Customer Deliveries Now Stretch Across All 50 U.S. States ����������������������������������������������������������� 4 Lordstown Reaffirms Endurance Pickup Production for Q3 ������������������������������������������ 4 Lucid Cuts Production Goals by 50% Once Again ���������������������������������������������������������� 42 New-Vehicle Prices Set Record in July as Inventory Improves, Luxury Share Remains Elevated ���������������������������������������� 39 Ohio Groups, Lawmakers Praise CHIPS Act Passed to Boost Intel Investment ���������������� 54 Rivian Amazon Vans Delivered 430K-Plus Packages During Pilot Program ������������������� 42 SEMA Show to Feature Educational Program Focused on Personal and Professional Development ������������������������������������������������� 1

INDEX OF ADVERTISERS

Advertising for Autopilot, FSD ����������������������� 1 California’s EV Adoption Rate is Staggeringly

800-699-8251

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

Ford Wholesale Parts Dealers ������������������������ 43

Spanesi Americas �������������������������������������������� 7

Future Nissan of Roseville ������������������������������ 38

Steck Manufacturing Company ���������������������� 30

Galpin Motors ������������������������������������������������ 49

Subaru Wholesale Parts Dealers �������������������� 51

Garden Grove Kia ������������������������������������������� 18

Sunmight USA ������������������������������������������ 14-15

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

Symach ���������������������������������������������������������� 20

GM Wholesale Parts Dealers ������������������������� 63

The Bay Area Automotive Group �������������������� 45

Honda-Acura Wholesale Parts Dealers ������32-33

USI of North America ������������������������������������� 64

Hyundai Wholesale Parts Dealers ������������������ 61

Volkswagen Pasadena ����������������������������������� 46

Millionth Car ������������������������������������������������ 23

Industrial Finishes and Systems ��������������������� 41

Volkswagen Wholesale Parts Dealers ������������ 55

The Gas Price Limbo: How Low Will It Go? ����� 44

Kearny Mesa Subaru-Hyundai ������������������������ 23

Volvo Wholesale Parts Dealers ����������������������� 54

Tesla’s Fremont Factory Produces its 2

autobodynews.com / SEPTEMBER 2022 AUTOBODY NEWS 3


Lightning Strikes Across America: Customer Deliveries Now Stretch Across All 50 U.S. States That was quick—lightning quick. In just two months, Ford has delivered electric F-150 Lightning trucks to customers in all 50 U.S. states, from the shores of the Kenai River in Alaska to Houston and even Hawaii.

Texas—the truck capital of America—and California—the EV capital of America—lead the way with the highest number of F-150 Lightning deliveries through late July. Early customers have discovered F-150 Lightning can handle a variety of needs, regardless of where they are located. Take for

instance Jeff and Tammy Head, owners of both an F-150 and now an F-150 Lightning, who have primarily used their new electric truck to tow a boat from Anchorage to Kenai River, about a three-hour drive, for salmon fishing. “From the time we watched it at the reveal, we knew that we wanted it,” Tammy Head said. “We had no doubt that this truck will have trademark Ford quality which gave us the confidence to transition to an electric vehicle.” “And the guy in me likes having the baddest truck on the planet,” Jeff Head added. Among the most popular and most-photographed features of the F-150 Lightning so far is the Mega Power Frunk. Owners are using the 400 liters of space1 to store gear and are taking advantage of the 2.4 kW of Pro Power Onboard in the frunk to help power their campsite

or charge their power tools while driving. “This truck is a workhorse. We have driven more than 3,000 miles already and towed and carried hundreds of pounds of concrete in the frunk,” said Emre Gol of Texas, who uses his F-150 Lightning Lariat pickup for work at his kitchen and bathroom remodeling business.

“This truck is a workhorse. We have driven more than 3,000 miles already and towed and carried hundreds of pounds of concrete in the frunk,” — Emre Gol Recently, he helped his neighbor’s wife, who was away from home with only six miles of charge left on her electric sedan’s battery. Gol connected his F-150 Lightning with the sedan’s charging adapter and provided enough energy to safely get her back home. Ford’s newest truck is winning EV fans. Nearly 80% of early reservation holders said in a survey that

Lordstown Reaffirms Endurance Pickup Production for Q3 by Joey Klender, Teslarati

Lordstown Motors reaffirmed its plans to start production of the Endurance all-electric pickup during the third quarter of 2022, while reporting its earnings for Q2 in early August.

In the company’s Q2 Shareholder Deck, it listed several outlooks for the future, as Lordstown has struggled to begin production of the pickup. Struggling with cash flow and having trouble keeping its doors open, Lordstown formed a joint venture with Foxconn, with the automaker becoming the company’s primary development partner for EV

development in North America. Lordstown expects Q3 to see the start of commercial production, while deliveries should begin in Q4, it said. However, the company only expects to produce around 500 units through early 2023. “In Q2, we made significant progress towards our plan to launch the Endurance in Q3 of 2022 and begin sales in Q4. We look forward to getting the Endurance into customers’ hands, as we think they are going to love it,” said Edward Hightower, CEO of Lordstown Motors. Hightower also hinted that Lordstown and Foxconn’s first project as a joint venture is currently undergoing “pre-development work.” In terms of financials, Lordstown CFO Adam Kroll noted the automaker will need to raise more money to support the 500-unit production goal. However, Lordstown only requires between $50 million

4 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com

F-150 Lightning will be the first full EV in their household. “The Lightning is the best thing I have ever purchased,” said Chris Ashley, a resident of Maryland and a first-time electric vehicle buyer. “With this truck, I can enhance my love of tailgating while at the same time play a small role in creating a better planet for

and $75 million to accomplish this, a substantial reduction from the $150 million it said it would need earlier this year.

“In Q2, we made significant progress towards our plan to launch the Endurance in Q3 of 2022 and begin sales in Q4. We look forward to getting the Endurance into customers’ hands, as we think they are going to love it,” — Edward Hightower Lordstown reported an operating profit for the first time in its history, but it did not come from the sale of any vehicles, obviously. Instead, Foxconn’s acquisition of the company’s Ohio production facility is where the realized gains came from.

my children.” Ashley has contemplated purchasing an EV for the past couple of years before his wife, Emily, convinced him to buy the F-150 Lightning. Ford has sold more than 4,400 F-150 Lightning electric trucks in the U.S. and Canada (YTD). Source: Ford

GM Offering EV Education As part of its mission to make EV ownership accessible to all, General Motors on July 25 launched EV Live, an immersive, virtual experience that allows participants to interact oneon-one with EV specialists and learn everything about electric vehicles—for free. EV Live allows anyone to connect with an EV specialist from any internet-connected mobile or desktop device. These EV specialists will answer EV-related questions in real time and give virtual tours of the EV Live studio, which houses real EVs and dynamic displays of home charging, public charging, battery technology, sustainability, commercial applications, EV apps and more. EV specialists can also guide participants through the home charging installation process and refer them to certified installers. For more information, visit evlive.gm.com. Source: GM


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Billings, MT, Firefighters Battle Shop Blaze Billings, MT, Fire Department crews were fighting flames at an automotive repair shop early July 26. The fire department was called to Ace Automotive at 242 Nall Ave. at 1:19 a.m. The biggest challenge for firefighters was the lack of easily accessible water hydrants, city spokeswoman Victoria Hill said in a press release.

Credit: Billings Fire Department

The fire department was using a water shuttle, and Lockwood provided mutual aid with its water tender. There was no one inside the building at the time of the fire. Hill said two firefighters were treated for heat exhaustion. A cause of the blaze has not been determined.

2 New Auto Glass Now Locations Open in California Auto Glass Now announced the opening of two new California locations, Auto Glass Now Pinedale, at 30 W. Spruce Ave., Pinedale, CA, 93650, and Auto Glass Now Sacramento, at 9565 Folsom Blvd., Sacramento, CA, 95827. Built from the ground up, both facilities are premier locations equipped with state-of-theart equipment. Focused on providing fast and quality auto glass repair, replacement and calibration services, these two new Auto Glass Now look to provide Californians a new level of service. “Our teams at these two locations have a commitment to their communities to provide fast, friendly and quality auto glass services,” said Michael Lopez, president, Auto Glass Now. “Vehicle technology continues to advance, and our dedicated teams are equipped to keep up with these changes to provide the highest level of repair quality.” Auto Glass Now Pinedale is a 2,500-square foot facility, managed by Fresno local Edna

Marquez. Marquez has been in the auto industry for seven years, most recently in vehicle sales, so she understands how significant a vehicle is to a customer and the importance of proper repairs.

four new locations this year, including these two California facilities. For more information on Auto Glass Now, visit AutoGlassNow.com.

“Our teams at these two locations have a commitment to their communities to provide fast, friendly and quality auto glass services,” — Michael Lopez Auto Glass Now Sacramento is 3,000 square feet and managed by Vicky Yang, an expert in providing exceptional customer experiences through her time supporting leading car rental agencies with their auto glass service needs. “We have talented leaders at the helm of these two new locations, and we know their customers will appreciate their commitment to premier services,” concluded Lopez. Auto Glass Now has opened

Auto Glass Now Pinedale 30 W. Spruce Ave. Pinedale, CA 93650 559-999-3214 Monday to Friday: 8 a.m.–6 p.m., Saturday 8 a.m.–2 p.m. Auto Glass Now Sacramento 9565 Folsom Blvd. Sacramento, CA 95827 916-862-2514 Monday to Friday: 8 a.m.–6 p.m., Saturday 8 a.m.– 2 p.m. Source: Auto Glass Now

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California’s EV Adoption Rate is Staggeringly Higher Than Rest of the U.S. by William Johnson, Teslarati

California has an electric vehicle adoption rate of 38.9%, according to a recent study, which shows the Golden State has a staggeringly higher EV market share than any other other U.S. region. Closest to California’s 38.9% is Florida, which shows a 6.7% market share of EVs. Various factors can indicate “EV adoption” in a state; percentage of EVs within the U.S. per state, EV ownership per 1,000 drivers, or even EV chargers per capita, to name a few. However, the best answers come when you look at all the factors together. What might be even more confounding is what is leading some states to have more EVs than others. Axios has the most recent data on EV ownership; it calculated what percentage of all EVs in the U.S were found in each state. Looking at their data, the obvious front runner is California, with 38.9% of all U.S. EVs located there, followed by Florida at 6.7%, Texas at 5.4%, Washington at 4.4% and New York

at 3.6%. The second most recent data comes from the U.S. Department of Energy in 2020, which found how many electric vehicle chargers were available per 100,000 people. Its data looks far different from Axios’s, showing Vermont leads the way, followed by Washington, D.C., California, Hawaii and Colorado.

could be influencing these states. Foremost, the trends in this data seem to replicate the map of current gas prices according to GasBuddy; the Northeast and West Coast have the most expensive gas, and hence the most EV adoption. However, there are notable exceptions. Florida and Texas have some of the cheapest gas in the country but have significant shares of the U.S. EV fleet, though their higher populations may influence this. Other factors that may influence EV adoption include the availability of EVs via dealers or manufacturers, availability of and size of incentives, or even average temperatures that could make EVs more viable in warmer climates.

Tesla May Be Texas-Based Now, But It’s Still a Dominating Force in California by Simon Alvarez, Teslarati

Tesla may be a Texas-based electric vehicle maker today, but its previous home, California, is still one of its strongest markets. This is especially the case with the Model 3 sedan and the Model Y crossover, the company’s two best-selling electric cars. California is the U.S.’s largest auto market, and one of the most competitive. Tesla, whose roots lie in the state, has always performed well in California. In the first half of 2022, however, the company performed especially well. As noted by Phil LeBeau in a CNBC Squawk Box segment, the Tesla Model Y and Model 3 have been absolutely dominating in California in the first half of 2022. As per data from the California New Car Dealers Association, the Tesla Model Y became the state’s No. 1 model overall in the first half of the year. The Model 3 stood at No. 2.

The last data set from Auto Alliance, from 2018, shows EV ownership per capita. It found California leads with 6.3 per 100,000, followed by Hawaii at 2.5, Washington at 2.4, Oregon at 2.2 and Delaware at 1.9. But why are there such discrepancies in EV adoption? There are a couple of possible factors that

It should be noted the Model Y and Model 3’s rankings are true for California’s overall auto market, not just the state’s electric vehicle segment. Tesla brand sales are up 82% as well. LeBeau noted part of this strong performance is probably due to the company’s Fremont Factory being located in the state. The Fremont Factory is Tesla’s first large-scale auto manufacturing facility, and while it is not as optimized as the company’s Gigafactories in Shanghai, Berlin and Texas, it is still extremely efficient. Today, the Fremont Factory is the U.S.’s largest producing vehicle plant, with a capacity of 600,000 vehicles per year. Tesla’s rise in California’s overall auto market has now pushed the electric vehicle maker to second place in the state’s top auto brands by market share, with a 10.7% share. Toyota still holds the top spot at 17.9%, while Ford stands in third place with an 8.7% market share.

8 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com

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How Waterborne Technology Can Improve Cycle Time Performance The number of color coats required to make a refinish repair is one

waterborne paint. “The color deck is ‘dead-on’,” says Jeff Smith of

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of a refinish paint system. Yet, as most know, the most accurate

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Given that refinishing most often calls for blending, how efficient a system can perform an accurate repair and eliminate chances for redos is especially critical to achieving maximum cycle time performance. PPG’s waterborne system employs an easy, one-gun process designed to achieve a fast, tight blend and accurate match the first time out. In fact, in a 2-3 coat application, it’s possible to perform a spot repair in less than an hour. This fast blend process is aided by a very thin film build, enabling the basecoat to dry fast. Only 2-3 minutes flash time is needed between coats and the clearcoat can be applied in 10-15 minutes. The system’s EN-V® Series clearcoat line offers fast bake times as short as 10 minutes. To ensure color accuracy, the basecoat’s latex particles orient

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comprehensive color formula database. Formulas are updated daily through PPG’s PAINTMANAGER® XI color software. In the long run, the daily update of the database saves the technician valuable time searching for the right color formula. Another real time saver is the Chromatic Variant Deck since it can significantly reduce sprayouts. Comprised of thousands of variant and prime color chips, each chip is sprayed with actual autobodynews.com / SEPTEMBER 2022 AUTOBODY NEWS 9


Classic Collision Adds 2nd Location in Vegas Classic Collision, LLC, a leading national multi-site collision repair operator based in Atlanta, announced a new opening Aug. 15—Classic Collision Industrial Road in Las Vegas, NV. This newly renovated facility is conveniently located in the heart of downtown Las Vegas near the Arts District off Las Vegas Freeway and West Sahara Avenue, and about 5 miles north of Classic Collision Allegiant. “We are excited to be adding a second collision center to the Classic family in this robust city,” said Toan Nguyen, CEO of Classic Collision. “We recognize the need for high service standards and look forward to providing more options to our customers in this market.” Source: Classic Collision

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Fix Auto Beverly Hills Opens in California Fix Auto USA, an industry-leading collision repair network, announced the opening of Fix Auto Beverly Hills, located at 2640 La Cienega Ave., Los Angeles, CA 90034. Ronald Marquez, owner of Fix Auto Beverly Hills, has been in the collision repair industry for more than 25 years, starting at age

Ronald and Steven Marquez.

17. Doing every role from painter to estimator, Marquez worked his way up until he opened his own facility in 2002, Ronald’s Auto Body. “In the 20 years I’ve owned

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my business, joining Fix Auto USA was the best thing I could have done,” said Marquez. “My family and I are grateful to now be a part of a team, where we can share best practices to enhance our capabilities. We have the support we need to help our business and ensure our community continues to get the highest level of repair quality and customer service, for every make and model.” Family-owned and operated, Fix Auto Beverly Hills is an incredibly efficient 7,500-square foot facility. Expertly trained, the team has earned their I-CAR Gold, GM, FCA, Kia, Infiniti and Alfa Romeo certifications. Fix Auto Beverly Hills is also working towards earning its Tesla certification, to continue supporting the changing demands of the region. “Fix Auto Beverly Hills may be independently owned but it’s backed by the support of our in-

credible Fix Auto USA network and entire Driven Brands team,” said Dean Fisher, collision group president, Driven Brands. “We’re proud to welcome longstanding businesses like this into our growing collision family, to better support our growing communities.” Fix Auto Beverly Hills is truly a family-owned and operated business, as Marquez’s son Steven has worked alongside him over the past six years, now as an estimator, and Zuly, Marquez’s wife, is the general manager. Dedicated to the community, the team looks forward to growing its operations to support its growing market. Please join us in celebrating the opening of Fix Auto Beverly Hills. Fix Auto Beverly Hills 2640 La Cienega Ave. Los Angeles, CA 90034 Monday to Friday: 8 a.m.–5 p.m. For more information on Fix Auto USA, visit FixAutoUSA.com. Source: Fix Auto USA

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Two Prineville, OR, Repair Businesses Rebranded by Ramona McCallister, Central Oregonian

Two significant and correlated businesses in Prineville, OR, have recently changed ownership. High Desert RV and Auto Repair and Dave Barlow’s Auto Body Shop were recently acquired and taken over by Mike Montgomery, who also has RV repair shops in Bend, OR, and Vancouver, WA. High Desert RV and Auto Repair is now branded to Pro RV Repair, Prineville. “I bought it April 1,” said Montgomery. “I have two other RV repair shops. I saw an opportunity when this one came for sale, and I wanted to expand anyway. I am trying to create a geographic brand.” He was familiar with Prineville, as he has an uncle and cousins who live in the county. With the amount of people moving from large cities to small towns, and the expectation of 10,000 people per year moving to Central Oregon, Montgomery said it made sense to have an RV repair. “Everyone has an RV here,” he said of the Crook County.

Montgomery added Pro RV Repair also services horse trailers and stock trailers, including those that have living quarters. Other offerings include servicing systems on RVs for electrical, hydraulic and plumbing; repair and replacement of all appliances; roof and ceiling replacements and repair; and repair of chassis and brakes on RVs. On the other side, it provides full RV collision repair, including body repair and collision repair for RVs and trailers. It has a full paint room and can fabricate fiberglass. “We do that in all of our shops,” he added. Montgomery explained the decision to buy his uncle’s auto body shop also made sense and was a strategic move. “It became opportunistic to buy my uncle’s business, Dave Barlow’s Auto Body, in town. We outsourced that collision repair to them, so they would come over here and do the work. When he wanted to retire, I did not want to lose that connection,” Montgomery added. He said Dave Barlow decided

12 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com

to fully retire, and they have rebranded the shop to Pro Collision Repair. The repair staff from this auto body shop contract out the collision repairs for Pro RV Repair. “It’s a really good fit,” he said. They have also hired additional technicians and are looking to hire more help. “We are looking for more technicians at both places. The skill set does not have to be long-standing RV repair technician. If someone is handy and works well with tools— the three most important things for me are initiative, accountability and do not give up until you found a solution,” Montgomery emphasized of his work ethic. He indicated another advantage of the shops in Bend and Prineville is their ability to flex and move expertise where they may need it, depending on circumstances. He may send one of their technicians to Bend when they need extra help, or vice versa. They have a full crew of RV technicians, with eight bays at any given time. He added that an RV technician has specific skills.

“Primarily, they are really handy, because they have to work on a lot of different stuff---electrical, plumbing, hydraulic, propane and carpentry work.” He said often, when they must replace a roof, it requires replacement of the of the underlayment or wood structure. “That is why a good RV technician is worth their weight in gold. We have a great team. This is a wonderful team here, both in the office and out in the shop. They are true professionals; they really take their job seriously and they take their knowledge seriously and make sure to take care of customers.” His team includes a parts manager, Rodger Casey, and business manager/bookkeeper, Ashley Yancey. They also have a service/ operations manager, Loren Cassidy, who runs the shop. He has been in the industry 20-plus years. They have a service writer, John Nelson, and six RV technicians. “I have a lot of confidence in this crew, it is a nice change to have a team that is so strong,” Montgomery concluded.


Hughes Appointed to CAWA’s Board of Directors Steve Hughes of HCS International has been appointed to CAWA’s Board of Directors. “Steve has served CAWA over the years as a member of our Manufacturers Advisory Council and is currently chair of the Public Affairs Committee,” said Michael Rukov, chair of the Board of Directors. “We look forward now to his participation and contributions to our Board of Directors, members at large and the automotive aftermarket industry.” Hughes has more than 48 years of supply chain experience in the automotive aftermarket industry. During that time, he worked or consulted for some of the industry’s leading companies. Hughes is a consultant for both the automotive aftermarket, through its trade associations, and to individual companies, under the aegis of his company, HCS International. In addition, HCS International is the representative for Gemini Shippers Association, a nonprofit ocean freight buying group, to the automotive Industry. Over the years, Hughes has been deeply committed to the international automotive aftermarket community in its efforts to promote free and fair

trade. He is currently chairman of the Import Vehicle Community and sits on the Government Affairs Committee for the Auto Care Association. He is chairman of the Public Affairs Committee for CAWA. And he is the lead voice for the automotive aftermarket industry regarding ocean transportation issues. Hughes served on the Automotive Industry Trade Advisory Committee (ITAC 2) advising on trade policy for the Department of Commerce and U.S. Trade Representative, 2015-2017. He has led three industry coalitions at the International Trade Commission, to overturn unfair anti-dumping duty orders that were harming the industry and costing consumers. He is also a past participant of the Federal Maritime Commission Supply Chain Innovations Team and Demurrage/Detention Innovations Team. Hughes is a member of the Federal Maritime Commissions’ National Shipper Advisory Committee representing the interests of the Auto Care Association and Motor Equipment Manufacturers Association. Source: CAWA

CAWA Announces the 2022 Automotive High School Teachers’ Scholarship Award Winners CAWA is pleased to announce the recipients of its 2022 automotive high school teachers’ scholarship awards. Named the Motorcar Parts of America-Selwyn Joffe awards, CAWA provided two scholarships this year to high school teachers to support their automotive programs. “CAWA is proud to assist these automotive high school teachers, in part, to assure their programs remain viable and well-resourced for the benefit of their students and our industry,” said Rodney Pierini, president and CEO, in announcing the awards. Recipients of the scholarships include: Keith Benson, Petaluma High School, to purchase parts and supplies for classroom use

www.autobodynews.com

Chris Lacey, Livingston High School, for an opportunity to get EV training and to bring back student aids to the program The primary scholarship fundraising effort for this program is CAWA’s annual dinner gala, held traditionally the Sunday night before the AAPEX and SEMA shows. This year, the gala will be held Oct. 30 at the Venetian Hotel and is sponsored, once again, by the Motorcar Parts of America. For details, email programs@cawa.org. To contribute to the association’s scholarship fund, see www. cawa.org. To donate prizes for the 2022 fundraising auction, contact Michael Beam of Idemitsu Lubricants at (480) 818-8816 or mbeam@ilacorp.com, or Pierini at (800) 332-2292 or admin@ cawa.org. Source: CAWA

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NABC Joins USAA’s Ongoing 100th Anniversary Celebration by Donating 5 Vehicles to Washington Military Members On July 21, five deserving Washington military members and their families were honored at Lakewood City Hall in Lakewood, WA, and presented with National Auto Body Council (NABC) Recycled Rides® vehicles, all donated by USAA. The vehicles were refurbished by Seattle collision repair partners Lacey Collision Center and Certified Collision Group affiliates Collision 1 Auburn, Trew Auto Body, 1st Class Auto Body-Burlington and 1st Class Auto Body-Bellingham. The presentation was part of USAA’s 100th anniversary celebration, through which it will gift 100 NABC Recycled Rides vehicles to military families across the country, including Nashville, Seattle, Chesapeake, Savannah, Charlotte, Colorado Springs, Denver, Phoenix, Tampa, San Diego and finally San Antonio later this year. “Today USAA is presenting vehicles to five deserving military families to give them the gift of reliable transportation in commemoration of USAA’s 100th anniversary,” said Luke Harris, VP of innovation, USAA. “Thank you to our many partners, including the NABC Recycled Rides

Continued from Cover

False Advertising filed with California’s Office of Administrative Hearings. The DMV said Tesla has been misleading its customers and potential buyers about the capability of its advanced driver-assist systems. The state went so far as to say Tesla made or published statements that are simply not based on fact. According to a report by the Los Angeles Times, Tesla’s website stated Autopilot “enables your car to steer, accelerate and brake automatically within its lane.” The automaker said FSD adds the ability for the car to obey traffic signals and make lane changes. That said, Tesla also explained Autopilot and FSD do not make a Continued from Cover

GEICO Closing passenger auto joined homeowners in unprofitable territory last year; however, analysts also said GEICO

program, for making this possible.” For 100 years, USAA’s mission has served active-duty service members, veterans and their families. Recipients have been nominated by nonprofit organizations to receive an NABC Recycled Ride. With the partnership of the NABC, a nonprofit committed to serving their communities, and many in the collision repair industry, vehicles are repaired and donated to those identified as in need of reliable transportation. “We are so grateful to see this program come to Lakewood,” said Mary Moss, deputy mayor of Lakewood, who presented a proclamation naming it USAA Day in Lakewood. “Our military community is very important to us, and we are honored to be a part of USAA’s 100th anniversary celebration to present NABC Recycled Rides to five enlisted men and women who will benefit tremendously from the gift of reliable transportation.” The recipients were selected by Support the Enlisted Project (STEP), which builds financial self-sufficiency among junior active duty enlisted members and recently discharged enlisted veterans and their families

Tesla vehicle autonomous, and both features require active supervision from an attentive driver. The DMV believes the details shared by Tesla above are contradictory to one another, which makes the company’s labels misleading and potentially dangerous. You can’t say something is capable of some task, but then turn around and say it actually isn’t without help. As far as punishment is concerned, there’s a chance California could revoke Tesla’s license to build and sell its cars in California. However, it’s not likely it will go so far. According to multiple sources, it seems the DMV may force Tesla to compensate owners, which is similar to what has happened in individual cases abroad. and Progressive will overtake State Farm on the personal auto leaderboard in terms of premium volume in 2023. A GEICO spokesperson has been reached out to for comment.

16 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com

facing financial crisis through counseling, education and grants. The recipients included: • Alex Free, U.S. Army, private second class, received a 2018 Toyota Camry repaired by 1st Class Auto Body • Wendy Bernal, U.S. Army, private first class, was presented a 2019 Toyota CH-R refurbished by Lacey Collision Center • Doodley Joseph, U.S. Army, specialist, was gifted a 2018 Kia Sportage repaired by 1st Class Auto Body • Jacob Simula, U.S. Army, private first class, received a 2017 Hyundai Elantra refurbished by Collision One • Damien Smith, U.S. Army, specialist, was presented a 2018 Toyota Camry repaired by Trew Auto Body “We were honored to join our member USAA in their 100th anniversary celebration, and grateful to our members which refurbished all of today’s beautiful vehicles,” said Dale Ross, NABC Recycled Rides program manager. “It is incredible to meet these military members and their families and hear their stories. We are honored to be able to pay tribute to their service to the country and help

them continue their path to independence and success with the gift of reliable transportation.” “This means the world to me,” said Smith. “I owe a lot of people rides who helped me get places when I didn’t have a car. I’m so grateful to everybody for putting this together. I’m going to try to pass this forward at every opportunity.” Additional partners in the presentation included 1.800.Charity.Cars; Enterprise, which provided TBD to each family; and Longhouse Inventory Solutions, a 100% Native American female-owned company that provides child safety seats to car rental companies, which donated two car seats to the families. NABC Recycled Rides is a unique program in which businesses representing all facets of the collision repair industry team up to repair and donate vehicles to individuals and families in need of reliable transportation. Since the inception of the NABC Recycled Rides program in 2007, members of the NABC have donated nearly 3,000 vehicles valued at some $42 million. Source: NABC

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CAA to Host Labor Rate Presentation CAA will host a presentation on labor rates and what auto body shops can do about them, Sept. 20 at Old Ranch Country Club, 3901 Lampson Ave., Seal Beach, CA 90740. The information will be presented by Tim Ronak of AkzoNobel. Labor rates in the Los Angeles/ South Bay/Orange County area are the lowest in California. The meeting will answer questions related to labor rates: How are surveys conducted? What is the difference between a standardized and non-standardized survey? What is a prevailing rate? How does inflation affect labor rates? What can my shop do? The meeting is open to members only and costs $60 per person to attend. Registration and a meet and greet will open at 5:30 p.m., followed by dinner at 6 and the meeting at 6:30.To RSVP, contact Cindy Shillito of CAA SoCal at 714-9444028 or radiatorgirl@socall.rr.com Source: CAA

Ford, GM, BMW to Help Schedule EV Charging in Sacramento, CA by William Johnson, Teslarati

Ford, General Motors and BMW announced they will partner with the Sacramento Municipal Utility District (SMUD) to roll out an EV charging scheduling program. The electric grid is undergoing significant change right now. Utilities are moving away from fossil fuels, consumers are buying more EVs and driving up demand for electricity, and some homeowners are generating their own power. This rapidly-changing environment means utilities face new challenges in meeting customer demand. To address this, Ford, GM, BMW and SMUD are working together to schedule EV charging. Scheduling EV charging allows for a few things. First, it moves excess demand away from peak hours when utility companies may already be having trouble meeting demand. Second, it allows EV owners to charge their vehicles when electricity is cheapest and least demanded. Third, the grid becomes more balanced in power

production and usage. The charging scheduling program the companies are implementing will pay customers to charge their vehicles at set times

of the day. This initial program will operate as a testing round, allowing SMUD to balance customer electricity usage and ultimately find the best way to spread demand throughout the day. The program will be available to Ford, GM and BMW customers, though the vast majority of EVs on the road in the U.S. are

Teslas. It is not immediately apparent how the program will interact with customers who generate their own power or those with home battery systems, as these factors could significantly change how their vehicles interact with the grid. As more and more utilities face the challenge of balancing new power generation systems with rapidly increasing demand, expect more utilities to implement charging scheduling into their grid management. Electric vehicles consume a significant amount of power, and ensuring electric grids remain stable will require customers to be flexible as to when and where they charge during the day.

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Continued from Cover

Data for Sale cesses, we collect 86% of all quoted collision repairs in North America, whether the quote is taken through a body shop or any insurance carrier.” Even if that quote doesn’t reach an insurer, Schulenburg said he was told, “that data goes into our system within 24 hours.” The 40-plus data fields the company said it has include on a daily basis more than 62,000 VINs and 135,000 quotes---written by shops or insurers. It includes customer name and contact information—address, phone and email—where the

This summer’s Collision Industry Conference (CIC) in Pittsburgh drew hundreds of attendees from around the country

collision occurred and where the repair quote was generated. It includes nearly $72 million of quoted parts per day, and the year, make, model and mileage of vehicles along with body, trim and engine descriptions. The revelation was of interest to a CIC committee that, like SCRS and other organizations, has been looking into how shop estimate information sometimes ends up as entries on vehicle history reports. Schulenburg said the company offering to sell the data was not one he, nor anyone else he has talked to about it, has heard of. “The point here is not that they have this data, but it’s where they are getting it from,” Schulenburg said. The founder of the company, who Schulenburg said he spoke to after the initial call, said a non-disclosure agreement prevented him from revealing the source of the data; he told Schulenburg he couldn’t say more because “if I answer too many questions, you’ll figure it out.” He said it was a company Schulenburg would know because their primary business model “has something to do in collision,” and that licensing the data to be sold is “just a side

stream of revenue.” He confirmed it was not coming from public registries, DMVs or police reports, Schulenburg said. “It is coming from a data aggregator, who is selling it,” Schulenburg said. “There’s a lot of good companies out there that are utilizing data to do the right thing for this industry. And there’s at least one company who is not doing the right thing. There’s at least one company that is turning it into a separate revenue stream to take the information you shared with them for one intended purpose, and selling it to someone else to sell for an entirely different purpose that you didn’t intend.” The leaders of the CIC committee, knowing Schulenburg’s long-standing work on data privacy issues, noted the irony that a data aggregator selling such information would contact him. “It was a complete shock to us that something like that would fall into Aaron’s lap,” said Dan Risley of CCC Intelligent Solutions, cochair of the committee. “I’m glad that it did, though, because I think more discussions will be had.” Risley said it may be a good reminder that vehicle history reporting companies such as CARFAX “shouldn’t be viewed as ‘public enemy No. 1.’” During the committee’s panel discussion following Schulenburg’s presentation, Connecticut attorney Steven Bloch said while issues related to shop estimates resulting in entries on vehicle history reports is troubling, the detailed estimate information being offered for sale poses even greater risks. “What’s of great concern is that a VIN, certainly in combination with personal identifiable information such as Aaron was ticking off—the [customer] name, address, insurance company, plate number—all combines to potentially run afoul of various state and federal [data privacy] legislation, which is only getting stricter, with more scrutiny being paid to everybody in the supply chain,” Bloch said. Panelist Pete Tagliapietra of DataTouch, LLC, agreed. “The information going to the vehicle history companies is the ice above the waterline,” he said. “What’s below the waterline? For you shop owners out there, what’s

20 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com

below the waterline is all of your DRP relationship information: who you have DRP relationships with. What your negotiated labor rate is. Who you buy parts from. What discounts you offer. Anything that can be gleaned off that estimate is being taken, compiled and aggregated, and being used for other purposes.” Though some believe estimate data finds its way to CARFAX or vehicle history reports after the VIN and other information is sent to “live” parts locating services during the estimating process, Tagliapietra blamed thousands of “data pumps” running on shop computer systems, scraping estimate data sometimes without a shop’s knowledge or consent. Virginia shop owner Barry Dorn asked the panel how a shop can know a company that says it is only pulling limited estimate data needed for a specific purpose---like parts locating or customer satisfaction indexing—is actually doing only just that. “You can’t. Not yet. But you will,” said Tagliapietra, whose company is developing a service to root out data pumps on shops’ computers

systems. Panelist Tom Allen of Condition Now said he understands body shops’ frustration with their estimate data resulting in an entry on a given vehicle’s CARFAX or other history report. “The shop becomes the face of this incident,” Allen said. “The officer directing traffic [at the accident scene] may come and go. The insurance company may be just a voice on the other end of the line, or the other side of the app. But the first human we see in this instance is the shop. I believe they get the brunt of things, right or wrong.” Allen said his company for about a decade has offered a way for body shops “to control the negative,” a way to use a vehicle history report to “show the good, not the bad,” by playing up the use of OEM parts in the repair of the vehicle, for example. “Our goal is to actually document that stuff in a way that is helpful to Mrs. Jones, the customer,” Allen said. “To show, not only did we fix your car properly, it was done with OEM certified repair procedures.”

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Continued from Cover

SEMA Show takes place Nov. 1, and will be presented by James Pogue, Ph.D., president and CEO of JP Enterprises. Part of the Business Management Track, each DEI session will feature thought leaders, skill-building seminars, networking, inspiring role models and action-oriented content. “Celebrity Insights,” moderated by African American Racers Association co-founder Chris Harris, features automotive celebrities, legends and luminaries with diverse backgrounds and experiences. The one-hour discussion will give attendees a glimpse into the lives of some of their favorite personalities. “Celebrity Insights” takes place Nov. 4, along with five other sessions that comprise the brand-new Enthusiast Track program. Returning by popular demand is the Leadership Essentials Track, presented by Dale Carnegie. Consisting of six courses spread out over three days, the program can be taken as a whole or individually. Each

CREF Raises $100,000 at Golf Fundraiser The Collision Repair Education Foundation’s (CREF) 20th Annual Golf Fundraiser, co-hosted by PPG Automotive Finishes, was a roaring success. Held on July 19 at the Edgewood Country Club in Pittsburgh, PA, the event sold out to capacity with 146 sponsors and industry supports enjoying a day on the green while raising over $100,000 to support collision repair programs, schools and students around the country. The winning team, with a score of just 56, consisted of Rich Finoli, PPG; Steve Morelli, community supporter; Derek Severns, Bowser Automotive; and John Parran, PPG. Participants also had the chance to win great prizes by competing in individual hole contests. Helicopter ball drop winners included Linda Mazur, community supporter; Charlie Jordan, Caliber Collision; and Mary Mahoney, Enterprise Holdings. Source: CREF

course features acclaimed trainers from Dale Carnegie Training. Known for having a leadership, communications and sales program that improves both individual and business performance, Dale Carnegie Training focuses on core human relations principles and is said to transform lives. Also continuing in 2022 are comprehensive programs from partners, including the Society of Collision Repairers (SCRS), the Inter-Industry Conference on Auto Collision Repair (I-CAR) and the Tire Industry Association (TIA). “The SEMA Show has a lot to offer, from seeing new products and vehicle builds, meeting with manufacturers, learning from experts and developing meaningful relationships that you can only get from an in-person event,” said Tom Gattuso, SEMA vice president of events. “We encourage showgoers to take advantage of all the elements of the SEMA Show, so that they get the greatest ROI.” All sessions are held in meeting rooms at the Las Vegas Convention Center, making it easy and

s

convenient for attendees to schedule seminars between meetings with exhibitors. Registrants can sign up for the education program while applying for SEMA Show credentials at www.semashow.com/ register. Those who are already approved for credentials can add education sessions by going into their SEMA Show dashboard. Sessions will also be able to be added through the SEMA Show mobile app. This year’s information will be updated in the mobile app in August, but the app can be downloaded now from the app store. The SEMA Show is the world premier automotive trade show, featuring new products and trends in vehicle customization. Complete details about the Nov. 1-4 SEMA Show taking place in Las Vegas, NV, are available at www.semashow. com. Source: SEMA www.autobodynews.com

UPDATED DAILY

Agenda Announced for CONNEX 2022 CIECA announced its agenda and speakers for the upcoming CIECA CONNEX Conference, to be held Sept. 13-14 in St. Louis/St. Charles, MO. In addition to a line-up of top industry speakers, there will be networking opportunities, a gifting ceremony by the National Auto Body Council® (NABC) as part of its NABC Recycled Rides® program, CIECA’s open annual meeting and a tour of Hunter Engineering. This year’s theme is “CIECA Next Gen: Evolving to Meet the Needs of the Collision Industry.” All industry stakeholders, including CIECA members and non-members, are invited to attend. Conference attendees are eligible to receive credit toward a professional designation from the Automotive Management Institute (AMi). The day prior to the conference, NABC will be holding the Boone Valley Golf Club Fundraiser in Augusta, MO. Source: CIECA

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Tesla’s Fremont Factory Produces its 2 Millionth Car by Joey Klender, Teslarati

Tesla’s Fremont Factory in Northern California has produced its 2 millionth car: a Red MultiCoat Model 3 Performance.

The Fremont Factory was once Tesla’s main manufacturing plant and could still be considered that today, as it produces all four electric models and was the automaker’s initial production facility in the U.S. Since Tesla moved its headquarters from nearby Palo Alto, CA, to Austin, TX, late last year, the Fremont Factory has continued to be one of the

automaker’s crucial facilities and may even be the subject of a future expansion project. On July 18, the factory built its 2 millionth vehicle since Tesla assumed ownership of it in 2010, according to one employee at the plant who told Teslarati. Tesla employees there also received a small card to commemorate their hard work. In March 2020, Tesla built its 1 millionth vehicle, a red Model Y—not the millionth vehicle to roll out of Fremont but Tesla’s millionth unit produced in its history. Since 2020, Tesla has opened two new factories, increased manufacturing output at both Fremont and Shanghai with expansion projects, and nearly tripled its quarterly delivery rate from Q1 2020—Q2 2022’s 254,695 deliveries are 2.88 times what Tesla delivered in Q1 2020. This accomplishment, how-

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BendPak, Inc., a global manufacturer and marketer of vehicle service equipment and specialty consumer products, announced changes to its executive team, effective Aug. 3. President Don Henthorn, who has led the company since establishing it in 1965, will take on a more limited role in its daily operations as chairman emeritus. Jeff Kritzer will be promoted from executive vice president to succeed Henthorn as president and CEO. At the same time, Rudy Diaz will step up from vice president of information technology to executive vice president and chief operating officer (COO). Jim Fornear moves from financial controller to chief financial officer (CFO). Rounding out the leadership team, Javier Arias continues in the critical role of vice president of operations. Source: BendPak, Inc.

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CAA Reports on BAR Advisory Group Committee Meeting The BAR Advisory Group (BAG) was established to increase the level of communication between BAR, the automotive repair and Smog Check industry, and stakeholders. As a member of the BAG, the CAA has provided a summary of the July 21 meeting. Most regulations mentioned are currently under consideration by the BAR and may become law. Legislative Bill and BAR Regulations Update The legislative bill update included summary of AB 646-Expunged Convictions, AB 1733-Open Meetings, AB 2350-Zero Emissions Aftermarket Conversion Project, AB 2496-Vehicle Exhaust Systems and the following catalytic converter bills: AB 1740, AB 2407, AB 2682, SB 986 and SB 1087. Discussion and concerns surrounded AB 2682, which requires auto shops that install or replace catalytic converters to ensure they are permanently marked with a VIN and requires smog stations to visually inspect and notify customers whether or not converters are engraved with a VIN. Questions regarded the letter/number font size, placement, etc. of the VIN on the catalytic converter, as well as details of the visual inspection. Regulations may need to be implemented to clarify and properly enforce, if the bill passes and signed by governor. Regulations adopted in 2022 included Smog Check Repair Assistance, License and Regulation Training and STAR Program Update. Pending regulations include Smog Check Equipment-Bio Metrics, Smog Check Inspection EquipmentDAD Specification Update, Citation & Remedial Training Requirements for ARDs, ARD Registration Application Requirements and Vehicle Safety Inspection Program. See the presentation here: h t t p s : / / w w w. b a r. c a . g o v / p d f / bag/202207/legislation-andregulations.pdf Storage Fee Referrals In response to concerns raised by the insurance industry about unreasonable storage rates charged by shops, BAR created a dedicated

email to respond to vehicle storage and fee issues. BAR reviews and determines the appropriateness of storage fees and makes recommendations. BAR also educates ARD on laws pertaining to storage fees. More than 30 processed referrals to date and 16 cases have resulted in storage fees being reduced or eliminated. About 15 cases resulted from adjuster/ insurer delays in picking up a total loss vehicle. Discussion and concerns were raised about insurer delays in inspecting vehicles—insurers have six business days to inspect vehicle damage after being notified of claim—which increases storage rates, and failure of insurers to pay for required repairs, which also causes delays. Comments included allowing shops to also use dedicated email to contact BAR regarding storage issues, instead of only insurers. BAR will continue to mediate and educate stakeholders regarding the storage laws and fees. See the presentation here: https://www.bar. ca.gov/pdf/bag/202207/storage-feereferrals.pdf Enforcement/Licensing Modernization Update BAR is in the process of consolidating all DCA regulatory entities into a single licensing and enforcement system. The intent is to modernize business process online. See the presentation here: h t t p s : / / w w w. b a r. c a . g o v / p d f / bag/202207/ELM.pdf BAR-OIS Smog Check Security Update BAR is concerned about security risks for computers running on the BAR-OIS. BAR is recommending all BAR-OIS users move to Windows 10 or Windows 8.1. BAR-OIS will be certified for use on Windows 11 at a date to be announced. See the presentation here: h t t p s : / / w w w. b a r. c a . g o v / p d f / bag/202207/BAR-OIS.pdf STAR Smog Check Program Changes Changes include deleting outdated Gold Shield provisions, modifying existing equipment and eligibility

24 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com

standards, and establishing a STAR certification suspension rather than invalidation process. See the presentation here: h t t p s : / / w w w. b a r. c a . g o v / p d f / bag/202207/star.pdf 2022 Smog Check Performance Report BAR reported vehicles certified by “high performing” smog check stations failed at lower rates at roadside inspections compared to vehicles certified by stations with lower FPR scores. BAR and CARB believe smog could be reduced if all stations operated as effectively as high performing stations. See the presentation here: h t t p s : / / w w w. b a r. c a . g o v / p d f / bag/202207/smog-check-report.pdf Enforcement Statistics Consumer complaint trends as of 2021-22 YTD are as follows: engine repair, 34%; general repair and maintenance, 18%; auto body, 15%; transmission, 8%; smog, 6%; used car transactions, 5%; vehicle

warranty, 5%; unlicensed activity, 2%; towing and storage, 1%. See the presentation here: https:// www.bar.ca.gov/pdf/bag/202207/ enforcement-statistics.pdf Licensing Statistics The BAR currently has 34,093 registered automotive repair dealers in California. See the presentation here: h t t p s : / / w w w. b a r. c a . g o v / p d f / bag/202207/licensing-statistics.pdf The next BAR Advisory Group meeting is scheduled for Oct. 20. Vehicle Safety Inspection Program Regulation Workshop The BAR held a regulatory workshop regarding the proposed vehicle safety inspection program. The new program, based on the passage of AB 471, is designed to protect consumers when purchasing revived total loss salvage vehicles. Many unsuspecting consumers are purchasing rebuilt total loss vehicles that may not have been See BAR Advisory Group, Page 35

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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.

Don’t Let Higher Sales Take Your Eye Off the Ball There’s an expression I’ve been thinking about in relation to the collision repair industry: “Pigs get fat and hogs get slaughtered.” As it applies to business, I think it means if you end up being greedy or taking the good times for granted, it’s going to catch up with you. It reminds me of another expression I use a lot: “Lots of sales cover lots of sins.” You can substitute “mistakes” for the word “sins.” I hear from a lot of body shops about how much their sales are up, sometimes to record levels, and I’m concerned a false sense of security can settle in. It can be easy to take your eye off the ball when work is plentiful. Let’s start with the higher sales number. At least some portion of that is likely attributable to more parts per repair order. CCC Intelligent Solutions reported there were

almost 12 parts per claim on average last year, a number that has been climbing since 2011, and especially in more recent years. I’ve seen some other statistics that suggest there’s anywhere between seven and nine more parts per repair now. Add to that the increased price of those parts. Again, CCC data shows parts prices increased 5% in the first quarter of this year alone, after a 7.4% overall increase last year. I’ve seen other statistics showing some parts prices have gone up between 18% and 23%, depending on the type of part. So if there are more parts per repair order, and the prices for those parts have gone up, then of course your sales should be up. But remember, as a repair order includes more parts and less labor, your overall gross profit as a percentage starts to decline.

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I’m not saying that’s bad or good. All I’m saying is looking at just your increased sales may be giving you that false sense of security. Remember the start of the pandemic, when work temporarily stopped coming to the door? So many shop owners and managers told me during that time they realized they needed to get back to basics, in terms of making sure SOPs were being followed, focusing on selling and capture rate, and offering great customer service. That’s what I’m suggesting to you here, that your increased sales may have led you to stop keeping your eye on the ball. Maybe your estimate quality isn’t as good as it should be, but the higher parts dollars are masking that. Are you continuing to watch your profit margins on labor, parts, materials, sublet, etc.? Is the backlog of work leading

to any customer service “sins”? It can be easy to get complacent when you know if one customer gets mad at you, you have 20 more lined up at the door. But you still need to care about that customer not going somewhere else. Make sure your customer service isn’t slipping. Maybe your outstanding parts credits are stacking up. Maybe your receivables have started to slip. Maybe you’re not closing out ROs in a timely manner. Are you still watching your efficiencies? There are a lot of things to still make sure you’re keeping an eye on. I’m not an economist. I don’t know what the future holds. But in every recession, I’ve seen shops wish they had stuck to the basics. Take some time right now to make sure lots of sales are not masking a lot of sins in your business, and that you’re not going to suffer the fate of the hogs.


autobodynews.com / SEPTEMBER 2022 AUTOBODY NEWS 27


Tips for Busy Body Shops

Stacey Phillips is an award-winning 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.

with Stacey Phillips

How to Profit from ADAS Services and Calibration—It’s Not Just About the Targets Industry statistics show nearly 50% ibrate and validate ADAS systems, of the North American car parc will repairs and calibrations. The compabe Advanced Driver Assistance Sys- ny’s Test Drive CoPilot™ platform with Stacey Phillips tems (ADAS)-equipped by 2025. was chosen as one of 15 semifinalist By 2030, the percentage of ADAS- solutions in the 10th annual Specialequipped vehicles will be more than ty Equipment Market Association (SEMA) Annual Launch Pad Com75%. With the overwhelming growth petition. in this area, Frank Terlep, co-founder of Auto Techcelerators, said col- The Facility lision repair facilities are currently For businesses planning to perform with Victoria Antonelli faced with many challenges conduct- 10 or more calibrations or ADAS ing ADAS services and calibrations. repairs per day, Terlep advised faThe first is location. Based on cilities allocate at least 4,000 square industry data, Terlep said 80% of feet. collision repair facilities do not have “If you are going to do calibrathe required space to perform these tions properly, you can’t do them in services. They also need business a parking lot, under a tree or in space with EdaAttanasio operating system, trained person- where there isn’t enough room for nel and equipment, which includes targets to be the proper distance,” he explained. Terlep recommended setting up three work bays and outfitting the facility to ensure all calibration prowith Gary Ledouxcedures are performed indoors without obstructions or uneven surface shadows. Each calibration bay needs a floor space of at least 33 feet wide by 17 feet in length to perform the Frank Terlep said lighting should be diffused calibrations, and the floor should be with minimal shadows level within four 10ths of an inch with Stacey Phillips targeting systems, diagnostic tools, from one side of the workspace to alignment systems, vehicle lifts and the other. more. “A slight incline along the One of the biggest challenges is floor of the space could result in the identifying a vehicle’s ADAS tech- miscalibration of a camera or radar nologies and required calibrations, sensors, thus skewing the vehicles’ which Terlep noted most shops do reactions,” Terlep explained. with Mike Anderson The floor should be painted in a poorly. He shared a February finding neutral tone, be pristinely clean and from Honda that identified 80% of be able to be written on. appraisals processed through CCC He also stressed the importance Intelligent Solutions that needed of having evenly-diffused lighting a calibration did not include a line with minimal shadows. LED bulbs item related to calibration. should be 300-400 lumens that can During a recent webinar spon- be adjusted based on the seasons, sored by Auto Techcelerators, Terlep weather and time. shared some of what he believes are “These are moving variables the requirements to run a properly depending on the shop’s location outfitted ADAS services and cali- and time of year,” said Terlep. Ideally, the facility’s walls bration business. Established in 2019, Auto Tech- should be a matte color. He reccelerators assists the automotive, ommended a solid color coating in collision, glass, insurance and truck beige, grey, light grey or white with industries to properly estimate, cal- no patterns.

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“Targets are patterns and you don’t want to confuse the sensors you are calibrating with patterns behind the targets,” explained Terlep. “Ensure there are no reflections or

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Frank Terlep recommends a properly outfitted ADAS services and calibration business facility should ensure all calibration procedures are performed indoors without obstructions or uneven surface shadows. Credit: Courtesy of LaMettrey’s Collision, Glass & More

shadows and there are no reflective surfaces that might interfere with the calibration equipment.”

For owners/operators considering opening a mobile business, Terlep said to consider the skills personnel will offer, the cost of insurance and equipment, space availability, lighting, who will be checking the alignments and how documentation will be collected. Tools One of the essential tools for a calibration center to acquire, according to Terlep, is an OEM and/or aftermarket diagnostic tool and/or software. “You probably need both,” said Terlep. “You need multiple aftermarket tools because they all have limitations.” They also need to be kept up to date. “You aren’t going to do a 2022 calibration with 2021 software,” he See How to Profit from ADAS, Page 30

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Continued from Page 28

How to Profit from ADAS noted. One of the costliest pieces of equipment required is the targeting system, which is typically rectangular with black and white patterns. “It’s critical to have the right size targets,” said Terlep. “Be prepared to purchase additional targets when new ADAS systems or components are introduced.” ADAS repairs and calibrations also require additional tools such as reflective metal sheets, metal cones, window calibration tools, floor mat calibration targets, doppler simulators, HUD systems and more. Terlep highly recommended having OEM tools on hand for the vehicles the facility typically repairs or subscribing to a remote diagnostic service. He said there are currently five of these types of businesses available today. Not only do remote diagnostic companies perform pre- and post-scanning, but many also offer remote calibration services. In some cases, Terlep said they provide free targets or a low dollar amount and split the revenue with the facility. He recommended owners/operators compare the remote cost vs. the cost of purchasing OEM software. Another consideration he noted is related to alignments. With 11 auto manufacturers requiring a calibration following a wheel alignment, Terlep said in most cases, a vehicle needs an alignment check before a calibration. “Alignments and calibrations are like peanut butter and jelly sandwiches,” he said. “If the vehicle isn’t aligned correctly, there’s a good chance the ADAS systems aren’t going to work.” As a result, he said facilities must be in the alignment business or have an alignment company nearby. Workflows and Processes Terlep shared what he referred to as the “seven moments of truth” when repairing/calibrating ADASequipped vehicles. They include identifying and locating the technologies and needed calibrations; communicating with the customer;

preparing an accurate repair plan; ordering and scheduling the services; documenting all pre-calibration requirements; documenting calibration actions and results; and performing, managing and documenting the test drive. Organizing Pricing and Getting Paid Although some shops organize pricing by service category, Terlep and his team have found organizing by manufacturer is preferable. He also recommended shops take steps to ensure they have an accurate and detailed billing system. ADAS/Calibration Software For shops planning to enter this side of the business, Terlep said it is critical to have a software platform. However, he believes there isn’t one on the market to meet all of the current needs. “I’ve talked to a lot of businesses and most are using five to seven different systems to manage and operate their companies,” he said. He said the ideal software would help identify and locate ADAS technologies, calibration triggers and required calibrations, educate customers about what needs to be done with their vehicles, and assist shops to create better, faster and more accurate repair plans. The software would also help the business manage all workflows and processes, generate, share and store detailed documentation, and operate an efficient and profitable business. Because most collision repair facilities don’t have the required space to prefer a calibration, Terlep foresees the industry will operate in a “hub and spoke” model in terms of calibrations, where several stores in a certain area will use a central location for these services. As a result, ADAS/calibration software should ideally include this business model. He noted five of the largest organizations in North America currently manage calibrations in this way. Documentation and Liability Terlep recommended facilities document every aspect of the ADAS service/calibration process as if the shop were going to court tomorrow. This includes the vehicle components, calibration triggers and

30 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com

required calibration types, pre- and post-scans, repair order/lines, a health scan and images of a vehicle. It should also include a calibration results report, post-calibration safety system verification test results, a detailed invoice and a workflow report. “How can any organization look at a customer and give them the keys to the vehicle without providing them with validation and documentation that they accurately tested and validated the systems work properly?” said Terlep. He advised shops to remember that ADAS systems directly affect acceleration, braking and steering. “If one is off and doesn’t work, the outcome is not good,” he pointed out. “If an ADAS system fails, who is to blame? The driver, the OEM, the shop or the insurer?” Without documentation, Terlep said, you don’t know. The Investment When determining the investment to begin offering ADAS services/ calibration, Terlep said to consider the cost of the facility, targeting systems, targets, the alignment sys-

tem, diagnostic tools and business software. While he estimates a minimum investment might be around $150,000, it could easily reach $250,000-$300,000. Return on Investment (ROI) To be successful in the ADAS repair and calibration business, Terlep advised facilities to focus on process and volume. “The key to success is to capture three to 10 customers who repair 100 vehicles a month where you can expect to receive 25-40% of those vehicles,” he said. For shops doing 4,800 calibrations annually, he estimated $773,577 annual gross profit. For more information, visit www. autotechcelerators.com. To watch the webinar, visit https:// www.youtube.com/watch?v=dbf5Css50Hk

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autobodynews.com / SEPTEMBER 2022 AUTOBODY NEWS 31


Honda and Acura Genuine Parts is an online ordering portal for repair facilities to order parts directly from the Honda/Acura Dealer(s) of their choice $0 enrollment fee

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32 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com


Please contact these dealers for your Honda or Acura Genuine parts needs. HONDA CALIFORNIA

CALIFORNIA

CALIFORNIA

WASHINGTON

Barber Honda

Honda of the Desert

Scott Robinson Honda

Hinshaw’s Honda

661-396-4235

760-770-0828

310-371-8320

253-288-1069

Bakersfield

Cathedral City

Torrance

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

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

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

Capitol Honda

Keyes Honda

Selma Honda

408-445-4412

818-756-6549

800-717-3562 559-891-5111

San Jose

Dept. Hours: M-F 8-6; Sat 8-5 malvarez@keyeshonda.com

Concord Honda

Larry Hopkins Honda

Concord

925-825-8016

Dept. Hours: M-F 8-6 kevin.valenzuela@concordhonda.com

Galpin Honda Mission Hills

800-GO GALPIN 818-778-2005

Dept. Hours: M-F 7:30-6; Sat 8-2 mteeman@galpin.com

Honda of Hollywood

Sunnyvale

408-720-0221 408-736-2608

McCurley Integrity Honda

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

800-456-6257 509-547-7924

Montclair

800-446-5697 909-625-8960

Dept. Hours: M-F 8-5:30; Sat 8-4 hondaparts@mccurley.net

Larry H. Miller Honda Boise

South Tacoma Honda

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

888-497-2410 253-474-7541

888-941-2218 208-947-6060

Tacoma

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

NEVADA

Findlay Honda

Dept. Hours: M-F 7:30-5:30; Sat 7:30-4 wholesaleparts@metrohonda.com

Ocean Honda

Richland

IDAHO

Dept. Hours: M-Sat 8-5 parts1@hopkinsdirect.com

Metro Honda

Las Vegas

702-982-4260

Santa Cruz

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

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

831-464-1800

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Findlay Honda Henderson

Honda of Pasadena

Pacific Honda

800-433-0676 626-683-5880

858-565-9402

888-234-4498 702-568-3531

Hollywood

800-371-3719 323-466-3205

Pasadena

Dept. Hours: M-F 8-6; Sat 8-4

Henderson

San Diego

jgardiner@pacifichonda.com

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

Selma

Van Nuys

Dept. Hours: Mon-Sat 7:30-6; Sun 8-5 sbettencourt@penskeautomotive.com

Auburn

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

San Francisco Honda San Francisco

415-913-5125

Dept. Hours: M-F 8-5 partsws@sfhonda.com ACURA CALIFORNIA

CALIFORNIA

CALIFORNIA

NEVADA

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Concord

Dept. Hours: Mon-Sat 7-6 keith.whisten@cacargroup.com

Acura of Fremont Fremont

888-435-0504 510-431-2560

Torrance

Dept. Hours: M-F 7-7; Sat 8-5 alvaradow1@autonation.com

Bakersfield Acura Bakersfield

661-381-2600

Dept. Hours: M-F 8-6; Sat 8-5 mike.ohare@acuraoffremont.com

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

Acura of Pleasanton

Marin Acura

888-985-6342 925-251-7126

800-77-Acura 415-927-5350

Pleasanton

Dept. Hours: M-F 7:30-6; Sat 8-6 mitch.cash@hendrickauto.com

Corte Madera

Montclair

Henderson

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

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

Acura of Honolulu

Hinshaw’s Acura

866-931-9086 808-942-4557

253-926-3331

Honolulu

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

Fife

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

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

autobodynews.com / SEPTEMBER 2022 AUTOBODY NEWS 33


How is Your Auto Body Shop Dealing with the Great Resignation? ions. While some of your crew is enthusiastically returning to work, others are reluctant and have concerns about hours, safety and other issues. Regardless of whatever your employees think will happen next, body shop owners and managers are just happy to return to some level of normalcy after these 30 months. But, are things really back to normal—and what is normal now, anyway? In many parts of the country, the shortage of qualified people got even worse during the pandemic. An MSO owner told me recently he could put 80 collision professionals to work immediately, if they existed. I would bet any shop out there right now could use a few more qualified people, as car counts rise and customers who were reluctant to bring their vehicles for repairs start showing up at their doors. Poaching employees is a problem, especially in states like California and New York, and it will undoubtedly get worse within the next year or so, I believe. So, with moti-

by Ed Attanasio

You thought we would be done with the pandemic by now, but like Al Pacino’s character, Michael Corleone, said in The Godfather II, “Just when I thought I was out, they drag me back in!” Will the effects of the pandemic always be a part of our lives? It sure looks like it. There are still many questions we never had to deal with before, and many things we thought would be in our rearview mirrors by now. Are you prepared for the postCOVID work environment? Are you ready for a majority hybrid-remote office model? Are other shops trying to hire away some of your top people? Will some of your upper management take this opportunity to retire? Is it time to sell? These are life-changing decisions and the time to make them is here. We’re now entering the post-pandemic world and many of your employees have different opin-

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vating your crew and strengthening them more important than ever, here are some methods to help you retain your best employees. The pandemic caused body shop owners and managers to centralize decision-making to be more efficient, pulling it into the leadership team without feedback from key stakeholders, like top technicians or the head painter. This was essential during the pandemic, but this will need to change to ensure long-term effectiveness and continued employee engagement. One of the smartest ways to do this is to start inviting employees outside the leadership team and closer to the rest of the crew to participate in the decision-making process. Some body shop owners said communication improved tremendously during the pandemic because it became mandatory. “People were no longer in the same room, so imparting communication changed,” one owner said. “We became a Zoom culture, and in many cases,

we became more comfortable with it and adapted.” The pandemic created a virtual world, but unfortunately it won’t have much of an impact down the road in collision repair, because you can’t fix cars via Zoom. It means some employees who were sitting home for more than a year are going to undergo major changes, like commuting and spending less time with their families. Some people won’t adapt well and it may take a month or two to re-engage, so patience but accountability should play a role. During the pandemic, many shop owners and managers decided to push employee communication to the sidelines. The idea was they should not focus on engagement, saying “We can’t ask our managers, techs, estimators and painters to do one more thing!” Stressed out employees were on their own and forced to navigate it all solo. Some quit and many were laid off, and even a few took early retirement or sold their shops to an MSO.

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34 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com

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So now is the ideal time to reconnect with your top talent if you want to retain them. Post-COVID, your disengaged employees will start looking for a better deal elsewhere. Will the return to normal tempt your best people to pursue other options? The best thing to do is to step up employee engagement and keep everyone in the fold. Turnover can seriously impede a body shop, and poaching can spread quickly. Joe Technician is happy at his new shop and the word is out they’re looking for more people, so a strong bond with your employees is more important now than ever. Focus on retaining your female employees, because they are the most likely to switch or quit altogether. According to NPR, 865,000 women left the U.S. workforce— four times more than men—in just September last year. “The coronavirus pandemic is wreaking havoc on households, and women are bearing the brunt of it,” the NPR study said. “Not only have they lost the most jobs from the beginning of the pandemic, but they

are exhausted from the demands of childcare and housework---and many are now seeing no path ahead but to quit working. Keep Millennials in your discussions. They’re focused on things such as diversity and inclusion, so keep them in the loop. The worst thing is to have them feeling like they’re not being heard. Let them play a role and watch them excel as people and leaders. To accommodate your younger crew members, keep your meetings short and sweet and create mechanisms to enable them to contribute. It’s a whole new game out there and those shops that can adapt will succeed, while others might encounter a never-ending carousel of new and returning employees. The pandemic changed the rules, but many principles of employee communication are still the same. Try to keep stress levels low, keep your eyes open for changes within your team and proceed carefully, and you will be able to retain your people and avoid the pitfalls of the Great Resignation.

Continued from Page 24

BAR Advisory Group repaired properly and are unsafe. The new safety inspection combines the brake and lamp program and adds additional safety criteria before total loss salvage vehicles are approved to obtain revived salvage title certificates. The salvage vehicle safety inspection consists of the following nine sections: information on technical access and vehicle identification, lighting system, passenger compartment, tires and wheels, braking system, steering and suspension system, body structure inspection, road test and equipment requirements. The vehicle safety technician will also possess ASE certification and pass a license examination. Comments and concerns included how the program would specifically

www.autobodynews.com

work and the impact to current brake and lamp licensees. Suggestions included the need for additional inspection requirements such as preaccident photos showing damage, wheel alignments, measuring, bond or liability insurance requirements for vehicle inspection shops and additional certification requirements for inspectors. BAR will review all comments and suggestions and make changes accordingly. See the presentation here: h t t p s : / / w w w. b a r. c a . g o v / p d f / workshops/202207-vehicle-safetyinspection/presentation.pdf See the text here: https://www. bar.ca.gov/pdf/workshops/202207vehicle-safety-inspection/draft-text. pdf See the manual here: h t t p s : / / w w w. b a r. c a . g o v / p d f / workshops/202207-vehicle-safetyinspection/draft-manual.pdf Source: CAA

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autobodynews.com / SEPTEMBER 2022 AUTOBODY NEWS 35


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.

Gerber Collision CEO Talks Parts, Personnel Challenges

Shop Showcase

Tim O’Day, president and CEO of ance partners, and in how it drives Boyd Group Services, parent com- our profitability, to identify and pany of Gerber Collision & Glass, source higher-margin, lower-cost alwith Ed Attanasio referred to his company as “one of ternative parts.” the better users of alternative parts” O’Day said the company is in a presentation this spring at the working toward centralized parts orAutomotive Body Parts Association dering for its more than 800 shops in annual convention. North America. “When we leave the buying de“But right now, we’re more reliant on OEM parts than we’ve ever cision at a local level, there’s somewith Ed Attanasio been, which is unfortunate,” O’Day times influences that aren’t consistold the non-OEM parts manufactur- tent with what our objectives are,” ers and distributors at the event. “It O’Day said. “It could be something negatively impacts our profitability, as simple in the old days as ‘I got tickets to the ballgame tonight, so I’m going to buy parts from this supwith Ed Attanasio plier,’ to something worse than that, that may not be good for our business. The direction we’re moving is to establish contractual relationships in writing with a supplier.” Part of that agreement will be all electronic parts ordering. and it drives repair costs up for our with Ed Attanasio “We’re going to get to the customers. So hopefully the aftermarket will figure out how to bal- point where if you do business with ance out supply so that we can buy us, and one of our stores calls you the parts from you that we want to and says, ‘Deliver me this part, I buy.” need it this afternoon,’ if you don’t O’Day acknowledged that cur- get the order electronically, I don’t rently even OEM partsStacey are often Phillips un- want you to deliver it,” O’Day said. with available, and he doesn’t foresee a “Because what’s going to happen is quick end to supply chain issues. you’re going to deliver the part. I’m “Last year, we probably thought going to put it on the car, and I’m maybe the beginning of the second never going to charge my customer quarter of this year, but I haven’t for it. And 60 days from now, you’re going to come back to me and say, seen it,” he said. “I’veStacey heard temwith Phillips porary positive signs, but nothing ‘You owe me for that part, because that’s systematic that’s going to you didn’t get it in your payables drive the change we need. So I think system and you haven’t paid for it we’re probably in for a couple of yet.’ “So it’s a huge loss for me when years of challenging times.” When asked to compare suppli- we do that. So we want to do busiwith Stacey Phillips er service levels, O’Day said “prob- ness with suppliers that are connectlems with parts that come in incor- ed electronically,” with ordering, rectly is much, much lower with invoicing and payment all handled OEM than it is with the aftermarket. electronically. “I think if you talk to a parts O’Day also discussed the techmanager or estimator at one of our nician shortage impacting all collistores, if pricewith and margin sion repair businesses. He serves on Staceywere Phillips equal, they would buy the OE part the Board of Directors for I-CAR, because it tends to be reliable a high and said the segment of the industry percentage of the time,” O’Day said. renewing its I-CAR Gold Class desBut he noted the gross profit margin ignation in 2019 averaged 9.5 techon non-OEM parts is better, so “our nicians per shop. staff is motivated both in terms of “In the most recent round of how we get measured by our insur- renewals, the average shop has 7.5

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technicians,” O’Day said. “So about a 17 or 18% reduction in workforce. It’s just a highly disruptive environment. And there’s really no shortterm solution. “My view, and most of the repairers I’ve spoken to share it, is the only way we’re going to build our workforce is by paying more money to that workforce, pulling them from other industries,” O’Day said. “The only way we can do that is through pricing. It’s going to cause increased premiums for vehicle owners. But otherwise we’re not going to solve our customers’ problem and get their cars repaired on a timely basis.” He said the industry lacks “a formal, universal way” to work with students coming out of collision repair training programs to build their skills. “They come into our industry, and because we don’t train them

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properly to move them to the next level, we lose them to other industries,” he said. To that end, he said, Gerber created an 18-month technician apprenticeship program for students coming out of school or for internal candidates working as a porter or car-washer. “We spend tens of thousands of dollars per trainee, but they come out with pretty good skills after 18 months,” O’Day said. “We’ve made a commitment to more than double the size of that program this year. But I think in the long run, we can’t do it alone. We really need the majority of collision repair shops to make the same type of commitment, and do it in an organized way so these students grow and are successful in our industry.” Another “area of opportunity” See Gerber Collision CEO, Page 43

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Guest Columnist with Cole Strandberg

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

Build Your Collision Repair Business with a Buyer in Mind Most entrepreneurs start a business based on one or two of many potential reasons—it could be to exploit a unique skillset or access to talent, pursue a passion or simply meet a need otherwise not being met in the marketplace. Most times, though, new entrepreneurs start businesses with the beginning in mind, but not the end, building a business that meets their immediate personal needs without giving much thought to the long term. As a result, many business owners fall into the trap of limiting their business’s growth, and subsequent options for the long term, based on short-term-minded decisions. By contrast, many of the most successful people in the collision repair space have started their businesses with one goal in mind: to sell it. How can you build your business by thinking like a seller? First, let’s discuss what buyers are looking for, and work our way backward. What do buyers want? Footprint and layout: As you might expect, the more space you have, the better. While each potential consolidator’s footprint desires vary, a safe sweet spot is 10,000 square feet of shop space or larger, though not a hard and fast requirement. Additionally, parking and storage is equally important. If you fall short of that square footage, don’t fret. Maximize the space you have. Maximizing shop space via a well-thought-out equipment layout and shop flow allows for more revenue per square foot. If you’re just building a new location, or considering upfitting an existing location, reach out to one of the quality paint booth manufacturers, most of whom will offer a no-charge design consultation. Revenue: You want to maximize your space because consolidators care about revenue, plain and simple. While most businesses I work with are valued based on a multiple of adjusted EBITDA, or earnings before interest, taxes, de-

preciation and amortization, the collision repair industry places significant importance on revenue as well. This is because, for the most part, if a consolidator can generate a certain amount of revenue within a footprint, they believe they can make that revenue profitable. Again, while there is no hard and fast rule on revenue requirements for consolidators, $2 million in annual revenue seems to be an entry point, with $5 million being a common sweet spot. Anything over that, and you should have some compelling regional and national interest when you eventually go to market. It’s important to note purchase price as a percentage of revenue typically goes up as revenue goes up, just as EBITDA multiples increase when EBITDA increases. Obviously, becoming a small multi-shop owner with two, three or more shops can help that revenue scale more quickly, and make you even more desirable to a potential acquirer. Valuation multiples vary significantly based on a multitude of factors, so if you’d like to discuss situation-specific valuations, feel free to reach out to me directly. Community and relationships: While there is no quantifiable value placed on your shop being a pillar within its community, it certainly doesn’t hurt. Many consolidators are very charitable, so a culture of giving in your shop will make it more attractive. Not to mention, local relationships with the customer base, direct repair programs (DRPs) and dealers will only serve to add value to your business. It never hurts to do good things within your community. Talent: As you likely know firsthand, there’s a theme in the collision industry as it relates to constant challenges: talent—much less good talent—is hard to come by. This is evidenced by some of the largest consolidators in the country investing millions in training programs, incentivizing—aggressively, I might add—experienced techni-

38 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com

cians to train apprentices, and more. This industry puts a premium on talent. Therefore, if you have a lot of talent within your organization, it will help your business get a premium valuation. Validate this by having I-CAR certifications, both at the shop and technician level, as well as original equipment manufacturer (OEM) certifications. So how do you build like a seller? In terms of working your way backward, determine what you want your eventual exit value to be. Once that’s determined, you’ll know what you must do in order to get there. The focus, ultimately, is on scalability and avoiding roadblocks to achieving that scale, such as limited space and poor shop flow. While you might not be a seller today, tomorrow or even five years from now, everyone is in business to make money. Modeling your busi-

ness after some of the best operations in the industry is a good thing. Chances are, building your business by regularly taking a step back and looking at it through the lens of a potential buyer will pay off in both the short and long term. Cole Strandberg is a principal with FOCUS Investment Banking, specializing in automotive aftermarket mergers and acquisitions. Cole works closely with automotive equipment providers, paint jobbers and collision centers. For more information, contact him at cole. strandberg@focusbankers.com or (561) 400-1015. Don’t Miss the Weekly Industry NEWS Your Shop Needs. Sign Up Free Today! www.autobodynews.com

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Ford Testing Robot EV Charging Station Ford has developed a prototype robot charging station that drivers operate via their smartphone from inside their electric vehicle. The technology could enable disabled drivers to stay in the car while charging, or they could leave the car while the robot does all the work. Disabled drivers have already identified ease of charging as a key purchase consideration for electric vehicles. Ford is testing the robot charging station as part of a research project to develop handsfree charging solutions for electric vehicles and fully automatic charging for autonomous vehicles. Following initial lab testing, Ford researchers are now putting the robot charging station to the test in real-life situations. Once activated, the station cover slides open and the charging arm extends towards the inlet with the help of a tiny camera. For the trial, drivers were able to monitor the charge status via the FordPass app. After charging, the arm retracts back into place. Source: Ford

New-Vehicle Prices Set Record in July as Inventory Improves, Luxury Share Remains Elevated The average price paid for a new vehicle in the U.S. in July topped June’s record and kept the average transaction price (ATP) solidly above the $48,000 mark, according to new data released Aug. 10 by Kelley Blue Book, a Cox Automotive brand. The Kelley Blue Book new-vehicle ATP increased to $48,182 in July, beating the previous high of $48,043 set the month before. July prices rose 0.3% ($139) from June and 11.9% ($5,126) from July 2021. New-vehicle inventory days’ supply held steady in the mid-30s in July, where it has been consistently since the final months of 2021. Surprisingly, days’ supply the end of July was 27% higher than it was in 2021, when inventory shortages first started to impact the market, demand was even higher and days’ supply dropped into the 20s. Still, with roughly 1.1 million units in inventory in the U.S., new-vehicle inventory remains significantly below levels seen in 2020 and 2019. With tight inventory and sufficient demand, transaction prices remain elevated. Most dealers continue to sell vehicles above the manufacturer’s suggested retail price (MSRP). Honda, Kia, Land Rover and Hyundai continue to show the most

price strength in the market, transacting between 5% to 8% over sticker last month. Ram, Volvo, Lincoln, Buick and the smaller Italian brands, Alfa Romeo and Fiat, showed the least price strength in July, selling 1% or more below MSRP. “It’s still a sellers’ market,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “New-vehicle inventory levels are better than a year ago, but remain historically low, and that’s keeping new-vehicle prices elevated. Still, even though average prices are at a record level, there are affordable vehicles out there. Compact cars and SUVs and subcompact models typically transact for 30% to 40% below the industry average.” The average price paid for a new non-luxury vehicle in July was $44,431, up $363 from June, and a new record for non-luxury vehicles, beating out the high set the prior month. Car shoppers in the non-luxury segment paid on average $875 above sticker price, a decrease from the prior month. Still, shoppers are paying more than they did compared to a year ago when they paid 0.8% below MSRP. In July, the average luxury buyer

paid $65,530 for a new vehicle, down $382 from June, when luxury ATPs hit a record $65,912. Luxury buyers continue to pay more than MSRP for new vehicles, although prices are trending closer sticker prices. For comparison, luxury vehicles were selling for $386 under MSRP one year ago. Luxury vehicle share remains historically high, pushing the overall industry ATP higher, but decreased to 17.8% of total sales in July from 18.2% in June.The average price paid for a new electric vehicle (EV) dropped in July by 2.3% compared to June but increased by 18.8% versus a year ago. The average price for a new electric vehicle—more than $66,000, according to Kelley Blue Book estimates—remains well above the industry average and more aligned with luxury prices versus mainstream prices. Incentives increased slightly in July versus June, but remain low, at only 2.4% of the average transaction price. A year ago, incentives averaged 5.9% of ATP. Full-size cars and luxury cars had the highest incentives in July, while high-performance cars, full-size luxury SUVs and electric vehicles had the lowest incentives. Source: Kelley Blue Book

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OEM Roundtable Working to Improve Quality of Collision Repair by Stacey Phillips

Twenty-five years ago, many auto manufacturers found they were experiencing similar non-competitive issues in the industry. George Gilbert from Ford and Rick Sherwood from Campbell & Co. suggested meeting to discuss these issues. The following year, six exploratory meetings were held with numerous OEMs to find out if it would be helpful to form a more formal group and convene regularly. In 1999, the OEM Roundtable was formed. Since then, the group has held quarterly meetings alongside the Collision Industry Conference (CIC). During the April 2022 CIC meeting in Oklahoma City, OK, representatives from the OEM Roundtable shared some of the history and guiding principles of the group. They included Mark Allen, collision programs and workshop equipment specialist at Audi of America; Dan Ducharme, wholesale parts senior manager for Volkswagen of America; and Devin Wilcox, collision certification manager at Subaru of America. Currently, 13 major member companies are involved in the OEM Roundtable, including Ford, GM, Honda, Hyundai, Kia, Mazda, Mercedes-Benz, Nissan, Stellantis, Subaru, Toyota, Volkswagen and Volvo. Many of the representatives are active participants in industry organizations and committees as well as events and panel discussions. Ducharme is the 2022 president of the OEM Roundtable. Prior leaders include: • 2013–2014: Paul Massie, Ford • 2015–2016: Gary Ledoux, Honda • 2017–2019: John Eck, General Motors • 2020–2021: Rossana Alvarez, Honda • 2021: Mark Zoba, Nissan The group’s mission is to continuously improve the quality of collision repair available to vehicle owners. Allen talked about some of the OEM Roundtable’s frequent topics of discussion, which have included improving access to and use of repair procedures independently devel-

oped by some auto manufacturers, bringing awareness to the technician shortage, addressing challenges faced by repairers and parts sellers, as well as researching new industry programs and technologies.

prove. * Open discussion among those involved in the collision repair process and reliable sources of collision repair data are paramount if the quality of collision repair is to continu-

In addition, the group discusses industry programs and legislative and legal updates. Allen said the OEM Roundtable operates under strict anti-trust guidelines. “We want to help the participants in our programs do better,” said Allen. “By offering support, we hope to build better success quicker for shops.” Wilcox said some of the guest presenters at the quarterly meetings may include information providers, industry associations, training organizations, service and equipment providers, MSOs, dealers and shop owners, and insurers. “We’re always open-minded to meeting and discussing what programs and offerings could be beneficial to us as a network and an industry,” he said. The group adheres to three guiding principles:

ously improve.

* The interests of all parties involved in the collision repair process are best protected when vehicle owners are allowed to make informed decisions regarding collision repairs to their vehicles. * Active participation by all parties in the collision repair process is necessary if the quality of collision repair available to vehicle owners is to continuously im-

40 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com

To support these principles, Allen said OEMs constantly enhance the

availability and functionality of repair information developed by each of them. “The information is there to document the file and repair the car the right way,” he said. “Some of us include what the equipment is that the repair procedures were developed with to get the achievable outcome of repairing the car.” The OEM Roundtable and its member companies are involved in the industry in many ways. This includes financial support and engagement with numerous organizations, such as the Automotive Service Association (ASA), Collision Industry Conference (CIC), Collision Industry Electronic Commerce Association (CIECA), Collision Industry Conference (CIF), Collision Repair Education Foundation (CREF), Inter-Industry Conference on Auto Collision Repair (I-CAR), National Auto Body Council (NABC), Society of Collision Repair Specialists (SCRS) and Women’s Industry Network (WIN). “We want to be available for the

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industry at these conferences and be accessible,” said Wilcox. In 2008, the roundtable launched the www.OEM1Stop.com website to respond to the industry’s request for easier access to OEM repair procedures and information. Auto manufacturer position statements were added in 2016. By 2021, there were more than 300,000 total visits to the website and more than 120,000 unique visitors that year alone. “The number of visits has jumped over 300% since 2016,” said Wilcox. “Many body shops are referencing the site now on a regular basis.” Another resource available is www.CrashRepairInfo.com, launched in 2014. This website provides direct outreach to customers and guides vehicle owners through the collision repair process with a focus on proper repairs. Ducharme explained individual OEMs work internally with their engineers to determine what needs to be done pre- and post-collision to streamline repair procedures. At the same time, the group is increasing

engagement with body shops and insurance partners. “We want to make sure everyone has the knowledge and the ability to keep up with all the latest advanced technologies that, as manufacturers, we’re putting into these vehicles,” said Ducharme. “We’re trying to get feedback from all segments so we can make informed decisions and provide a great experience to our mutual customers.” Looking ahead, the OEM Roundtable hopes to help the industry move forward by increasing collaboration and transparency among all industry segments, providing greater use of tools and continuing to learn from all stakeholders. “As OEMs, we are here to support the industry and make sure vehicles are being taken care of and repaired properly,” said Wilcox. “We’re always looking to make it better,” said Allen. “Let’s become professional and agree that we are going to take a look at these repair procedures, have the conversations with customers and insurance partners, and get the car repaired the right way.”

Rivian Amazon Vans Delivered 430K-Plus Packages During Pilot Program by Maria Merano, Teslarati

Rivian reported delivering more than 430,000 Amazon packages with its Electric Delivery Van (EDV) during the vehicles’ pilot deployments, which rolled out in July. In July, Amazon announced Rivian EDVs would be deployed in locations across the U.S., including Baltimore, Chicago, Dallas, Kansas City, Nashville, Phoenix, San Diego, Seattle and St. Louis. Rivian and Amazon worked closely together to design the EDV vehicle. “A close development partnership with Amazon and its delivery drivers enabled us to optimize the EDV features and design for last mile delivery,” Rivian said in its Q2 Shareholders Letter. “This process included delivering more than 430,000 packages through multiple pilot deployments that began in early 2021—these pilots enabled a rapid refinement of a range of features.” Rivian explained each EDV feature, providing a reason behind each design decision. For instance, the EV automaker equipped the electric delivery van with rear roll-up doors

so it would be easier to load bulky warehouse items. Rivian’s Amazon Delivery Van also has a tall roof, so drivers can easily walk through it. Plus, Amazon EDV vehicles work with Rivian’s fleet management system, called FleetOS. The EV automaker also highlighted how closely Rivian engineers worked with Amazon employees to optimize EDV features. “To ensure optimal temperature, Rivian engineers spent time in the vans during delivery routes, which helped the development of an HVAC system optimized for driver comfort and efficiency,” noted Rivian. One Amazon delivery driver already provided his first impression of Rivian’s EDV via his YouTube channel, Friday Adventure Club. He was impressed with the EDV and listed its advantages over ICE delivery vehicles. Amazon deployed Rivian EDV 700s in July. Rivian has two other variants for its electric delivery van: the EDV 500 and the EDV 900. The EV automaker announced it started production validation for the EDV 500 in Q2 2022.

Lucid Cuts Production Goals by 50% Once Again by Joey Klender, Teslarati

Lucid Group cut its 2022 production outlook to between 6,000 and 7,000 vehicles after citing “extraordinary supply chain and logistics challenges.” Lucid initially projected its 2022 production goal as 20,000 units last year. This was quickly revised in February to between 12,000 and 14,000 vehicles. As automakers across the world struggled with supply issues and parts shortages, startups began to reconsider their goals for the year. Rivian also slashed production goals considerably in early 2022, citing supply issues and other challenges as the reasoning. Lucid’s situation is no different. Struggling with cash flow, the company lost nearly $5 billion in 2021, and took another $220 million loss in Q2, it disclosed in its Shareholder Deck. Only 679 Lucid Air vehicles made their way to customers in Q2. When asked about a week-

ly production rate, CEO Peter Rawlinson said it would be best not to start “cherry-picking specific weekly production rates.” Meanwhile, CFO Sherry House said customers and investors should see deliveries begin to pick up substantially through the next few quarters. “Our revised production guidance reflects the extraordinary supply chain and logistics challenges we encountered,” Rawlinson said. “We’ve identified the primary bottlenecks, and we are taking appropriate measures…We continue to see strong demand for our vehicles, with over 37,000 customer reservations, and I remain confident that we shall overcome these nearterm challenges with a relentless tenacity and a steely determination.” Rawlinson also said Rivian has brought logistics operations in-house and is working to strengthen its executive team. Lucid shares were trading at $18.74, down 8.9% the morning of Aug. 4 in New York.

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Collision Repair Association Conducting Study of Blend Time Formula by John Yoswick

The Society of Collision Repair Specialists (SCRS) has provided a few more details about its study beginning in August into the accuracy of the blend time formula commonly used in the industry.

Aaron Schulenburg of the Society of Collision Repair Specialists said shops have long challenged the accuracy of the estimating systems’ blending formula

Speaking at the association’s open board meeting in late July in Pittsburgh, Executive Director Aaron Schulenburg noted the three estimating system providers each

establish its own refinish labor allowance for any given panel. “The refinish time for a fender in Audatex will look different than the refinish time for that fender in CCC, which will look different from the refinish time in Mitchell,” Schulenburg said. “Which is fine, they’ve each done their own research on it. All three companies identify 50% as a blend value; despite the fact that they don’t have the same refinish values, all identify blend time as 50%. “Our members have long challenged that,” Schulenburg said. “We don’t believe 50% is reflective of what we’re actually doing, because there are a lot of tasks associated with [blending] outside of just the application of the base coat, which, for a large part, is the task that is being adjusted.” Schulenburg said given the lack of “positive movement” SCRS has seen on the issue based on its long-standing discussion with the estimating system providers, the association is working with the five primary refinish companies on a study taking place at Global Finish-

ing Solutions’ Center of Excellence facility in Wisconsin. “We will actually be using a systematic approach where we do complete refinish on doors, fenders and hoods, and then blend on doors, fenders and hoods, to evaluate the delta between the full refinish task and the blend tasks,” Schulenburg said. “We’re not doing a refinish time study. Our goal is not to establish a refinish time on those panels. We will just be evaluating what percentage of the full refinish value blend represents.” He said the study will use panels for a high-volume Ford truck, waterborne products used in all U.S. markets, and color codes that represent a solid, a metallic and a tri-coat. “This has been an issue for a long time,” Schulenburg said. “We hope to put a punctuation mark on this one.”

Gerber Collision CEO he said Gerber is “pursuing pretty aggressively” is improving the “diversity of our industry,” working to attract more women, Black or Asian Americans and other minority groups. “We’re doing a lot to create an inclusive environment that will allow us to successfully recruit people who don’t look like me, and build our workforce with greater diversity,” O’Day said. “Because if we go after the same group that we’ve always been targeting, we’re never going to solve the problem, and we’re not going to be as good of a company. So we have a very strong commitment to improving diversity.”

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Technician/Painter Recovering from Severe Burns Recognized During 11th Annual CIF Gala by Stacey Phillips

Members of the collision industry gathered at the 11th Annual Collision Industry Foundation (CIF) Gala in Pittsburgh, PA, on July 20 to show their support for Bryan Miller, an Ohio-based technician and painter recovering from severe burns he suffered from an in-shop fire in September 2021. The fundraising event, held at the Howl at the Moon restaurant, was the first time CIF has hosted its annual gala since the pandemic. The nonprofit organization is committed to assisting those working in the collision repair industry through crises and tragedies. “I’m happy to report we had record attendance,” said Petra Schroeder, “Collisionista” and secretary of CIF. “About 163 individuals from all segments of the industry were present, of which 41.7% were firsttime attendees.” Earlier in the year, CIF put out a call to the industry at large for the first time looking for volunteers interested in joining the organization’s committees. The following

individuals became part of the gala volunteer committee: Tracy Darrington, Enterprise; Matt Hamerling, Enterprise; Paul Hill, I-CAR; Tom Julius, Car-Part.com; Stacey LaViola; Cherlyn Schultz, Enterprise; Scott Stiber, Enterprise; Ann Swayka, AirPro Diagnostics; and John Webb, TenPointComplete.

CIF Trustee Jim Ocampo presented Bryan Miller with a $15,000 check. Pictured, left to right, are CIF President Michael Quinn, of AirPro Diagnostics; Jim Ocampo, Axalta; Bryan Miller and Kassi Nellett

“I want to give a big shout-out to those gala committee volunteers,” said Schroeder. “What they did to help us was incredibly valuable and their support was outstanding.” Schroeder said the assistance from the volunteers was instrumen-

Ford Recalls Maverick Trucks Over Side Curtain Airbags by David A. Wood, CarComplaints.com

A Ford Maverick recall involves about 65,000 trucks with side curtain airbags that may fail.

Although Ford is still investigating the root cause of the problem, the automaker does know the trucks are in violation of federal safety standards. The National Highway Traffic Safety Administration contacted Ford in June following a compliance audit on a 2022 Ford Maverick.

www.autobodynews.com

“The displacement results for the front lower primary target was 111.9 mm which exceeds the federal regulation of 100 mm,” the NHTSA said. “Ford’s certification test from December 2020 indicates a displacement of 82.5–88.4 mm which meets the regulation of 100 mm and the Ford Acceptance Criteria (FAC) of 93.1 m.” Additional tests conducted by Ford on 2022 Maverick trucks didn’t help engineers determine the root cause of the airbag problems. According to Ford, there are no crash or injury reports relating to the airbags. Ford Maverick recall letters will be mailed Sept. 22, and dealerships will replace both front side curtain airbag modules. Ford Maverick owners may contact Ford at 866-436-7332 and ask about recall number 22C20.

UPDATED DAILY

44 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com

tal in preparing the gala to help Miller and raise money for others in the industry who might need assistance in the future. “The event provided the opportunity to bring industry individuals together as well as the opportunity for additional fundraising through event ticket sales, raffles and silent auctions,” said CIF President Michael Quinn, president of AirPro Diagnostics. “At the gala, we were able to bring one of our most recent recipients of CIF support, Bryan Miller, to meet with and thank in person many individuals from organizations who provided direct support to him.” During the event, CIF Trustee Jim Ocampo, strategic accounts sales manager at Axalta Coating Systems, presented Miller with a $15,000 check. Approximately 40% of the amount was donated by the industry to a campaign specifically to help Miller, and CIF contributed the remainder. Miller began working in the auto industry in 2016 and has spent time since then as a collision technician/painter. Last September, he was

working on a motorcycle at the shop he was employed at, and a fire broke out. When Miller’s body caught on fire, he was trapped in his work area before escaping out of a window. He was transported to a hospital by helicopter. Although he survived, Miller had third-degree burns covering most of his body and multiple surgeries and skin grafts. He said he lives in constant pain and expects it will take at least a year to regain full mobility. Miller, his fiancé, Kassi Nellett, and his cousin, Steve Legg, attended the gala to show their appreciation for the assistance provided by CIF and the industry to help him recover from his injuries and get back to work. “I want to go back to work right now! It’s my passion; I feel blessed to have found a career that’s given me a sense of pride to be able to tell people what I do for a living. I just love everything about my job,” said Miller in an article written by Joel Gausten. For more information about CIF, visit www.collisionindustryfoundation .org.

The Gas Price Limbo: How Low Will It Go? by Andrew Gross, AAA

The national average for a gallon of regular gas fell 10 cents in the previous week to $3.95 as of Aug. 15, due primarily to stable oil prices and fewer drivers than usual fueling up. “Falling pump prices may eventually lead to more drivers hitting the road again,” said Andrew Gross, AAA spokesperson. “But that hasn’t happened yet. Instead, many drivers are waiting for prices to fall further before reverting to their typical driving habits.” AAA found drivers are making significant changes to cope with high pump prices. In a recent survey, almost two-thirds of U.S. adults have changed their driving habits or lifestyle since March. Drivers’ top two changes to offset high gas prices are driving less and combining errands. According to data from the Energy Information Administration (EIA), gas demand rose from 8.54 million b/d to 9.12 million b/d. However, the rate is 307,000 b/d lower than last year. Also, total domestic

gasoline stocks decreased by 5 million bbl to 220.3 million bbl. Although gasoline demand has risen and supplies have tightened, easing oil prices have helped lower pump prices. If oil prices edge lower, drivers will likely see falling pump prices. The Aug. 15 national average of $3.95 is 62 cents less than a month ago, but 77 cents more than a year ago. The nation’s top 10 largest weekly decreases: Maine (-19 cents), Colorado (-18 cents), West Virginia (-16 cents), Arizona (-15 cents), Illinois (-15 cents), New Mexico (-14 cents), Florida (-13 cents), Nebraska (-13 cents), Arkansas (-13 cents) and Kansas (-13 cents). The nation’s top 10 least expensive markets: Texas ($3.45), Arkansas ($3.47), Tennessee ($3.50), Oklahoma ($3.50), South Carolina ($3.50), Georgia ($3.51), Mississippi ($3.52), Kansas ($3.53), Missouri ($3.53) and Alabama ($3.54). Source: AAA


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Forward-Thinking Program Creating Great Auto Body Techs of the Future by Ed Attanasio

In the summer of 2019, Southeastern Community College (SCC) in West Burlington, IA, hired Dr. Ashlee Spannagel as its new dean of career and technical education (CTE) and workforce development. Spannagel entered the job excited and ready to take on the world— and then the pandemic hit. It’s been a “work around” project ever since, but she hasn’t been dissuaded one iota, taking the position and making it her own as the school’s collision repair department benefits in many ways. Spannagel came to SCC after working in education for nine years. One of the first things she did was to

collision repair department. Can you tell us about that?

A:

We receive an annual allocation of funding that is called ACE (Accelerated Career Education) funding. The whole purpose of that money is to reinvest in infrastructure, so that we can provide more classes and accommodate more students. One of the things that we chose to do with the money was to remodel our auto collision facilities, and it has worked out very well. We are confident that this will lead to more enrollment down the road, which is obviously the goal. It shows that we are open and committed to collision repair and ready to pivot if needed.

Q:

It’s a huge job and a big school, so how are you able to do it all?

A:

Dr. Ashlee Spannagel is the dean of career and technical education (CTE) and workforce development at Southeastern Community College in West Burlington, IA

build relationships with established area educators, industry leaders and workforce and economic development partners to continue building opportunities for students. This included local body shops, car dealerships, vendors and companies that manufacture collision repair-related products, tools and equipment. Spannagel stays busy as she oversees the school’s entire CTE division and works closely with faculty and area employers to ensure SCC provides top-notch, industry-level education to its students. Her role within SCC’s auto and collision repair programs is only one small part of everything she does at this forward-thinking institution.

Q:

While other CTE programs in the country have stepped back during the pandemic, you have stepped up in many ways for your

Yes, I am responsible for 47 certificate, diploma and degree programs, and collision is just one them. I’ve been involved in technical education and post-secondary education 13 years now. The technology in the collision repair industry changes so rapidly that we can’t possibly keep up with the changes that are occurring. We need to do our best to keep pace with what’s going on, and then bring in other learning opportunities to help students to be up to date. We have been working very hard to align with industry-recognized credentials and what our local shops need in our graduates, so we rewrote the curriculum and pursued ASE accred-

Southeastern Community College recently remodeled all of its classrooms and labs and invested in a wide range of new tools and equipment

itation to match the newly remodeled shop. We’ve rewritten the curriculum to where we’re actually going to be aligned with I-CAR more, so that our students now will graduate from the

46 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com

program with far more credentials than they would have been qualified to earn previously.

Q:

How can you stay current in an industry that is changing at a rapid rate?

my team who are eligible for retirement in the next five years. There is a lot of talent, knowledge and experience that is highly skilled and invaluable to our programs. So, in the next five years, we’ll have to figure

A:

I personally think our collision instructors are excited that the students are highly interested about technology. Our students have grown up with technology. They are technology natives. So anytime we can include those hightech pieces—either tools, equipment or concepts that the students are likely to engage with—that is ideal. We want to enable the body technician of tomorrow to be adept at using technology and that’s one of our main goals here at SCC.

Q:

How do you find, hire and maybe most importantly retain good instructors?

A:

My biggest concern now is that we have a lot of staff on

The college’s goal is to enable and empower the body techs and painters of the next 30plus years

out how to replace it. I think the way that we’ve handled the pandemic and our instructional continuity has really helped us retain our staff. But now I’m growing concerned about the fact that they’ll be retiring here shortly.

Q:

How has establishing mutually beneficial partnerships with local shops and vendors helped See Techs of the Future, Page 60

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Repairify’s New Partnership with ATG Will Provide Industry with Advanced Diagnostic Training by Stacey Phillips

With the growing need for collision repair technicians to understand the mechanical components of vehicles, Repairify is taking steps to equip them with the skills they need to repair vehicles properly. In July, Repairify announced it acquired the Automotive Training Group (ATG) to create and offer advanced diagnostic training for the industry focused on both mechanical and collision repair. “Their content and workbooks are the best in the industry,” said Chris Chesney, Repairify’s vice president of training and organizational development. “I’m really looking forward to bringing them on board and integrating them into what we do.” Founded in 2004, ATG offers live and virtual technical training worldwide. Chesney has a long history of working with the ATG team over his career and has great respect for the company and team of instructors for presenting excellent in-

formation in an understandable and interesting format. As a result of their new partnership, Repairify will support ATG in such a way that they can produce and deliver meaningful content to a wider audience. This includes offering classes that focus on scanning and calibration, Advanced Driver Assistance Systems (ADAS) and electric vehicles, as well as vehicle data networks. “Part of that network might have been damaged or had corrosion or resistance in connectors or whatever that are not a part of the of the collision but affect the overall results or capabilities of that one network,” said Chesney. “It’s important for [technicans] to know how to triage those and validate that they’re actually working as designed.” Working in this field for the majority of his career, Chesney understands the importance of connecting with technicians so they have a full picture of what needs to be done to be successful on the shop floor. He has worked as a shop owner, service

advisor, trainer, training manager and training program owner. All these roles have focused on the mechanical side of the business. In 2002, Chesney moved to Raleigh, NC, to build out an automotive training team. When he left that organization in 2021, it was hosting 150,000 active learners who were taking self-paced online courses or participating in the 3,000 to 4,000 in-person or live virtual classroom events held each year. About three months after Chesney’s retirement, Cris Hollingsworth, president of Repairify, asked him to join the company in 2021 to head up its training arm. Most of Repairify’s training is currently targeted to internal trainers and technicians and is offered both virtually and in-person. The company also offers product-oriented training to customers in a virtual setting. “Up until now, the primary focus has been to rightsize and enable the internal training team so that our own people can be best prepared to

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serve our customers in their remote services that that we have made tremendous headway with,” he explained. Future training will be presented in what Chesney refers to as an adaptive learning model in which online course materials are customized to the learner for an experience not available in a traditional classroom setting. “Imagine the instructor of a virtual classroom knowing the skills gap of every student on the call,” said Chesney. This will allow instructors to better focus content during the lessons and interact with students. He said Repairify will be working with I-CAR to align ATG content with I-CAR standards to count toward accreditation. Training will be developed with a diagnostic approach, combining OEM support information with real-world technician experience using actual case studies where possible. See Repairify’s New Partnership, Page 52

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First Responders Convene at CARSTAR Chilton Auto Body Through the NABC F.R.E.E.™ Program by Ed Attanasio

Without first responders, countless lives would be lost nationwide on our roads every year. Luckily, more than 2 million first responders risk their lives annually in the U.S. alone to save others. The job of a first responder has changed dramatically since the inception of electric vehicles and hybrids. Pulling someone out of a car was a fairly simple act 20 years ago. But now, with late-model vehicles that can have six to 10 airbags,

The NABC First Responder Emergency Extrication (F.R.E.E.™) program has helped to educate nearly 5,000 first responders on how to extricate people from today’s advanced vehicles

advanced technology or electric/hybrid engines onboard, the rescue can be more challenging than ever. Through the National Auto Body Council® (NABC) First Responder Emergency Extrication (F.R.E.E.™) Program, a four-hour educational event took place Aug. 10 at CARSTAR Chilton Auto Body in Santa Clara, CA, in conjunction with CSAA Insurance and HURST Jaws of Life. After participating in both classroom and hands-on education during the morning, 20-plus fire-

fighters from three Silicon Valley cities—Santa Clara, Oakland and Woodside—will now be better prepared on how to extricate people from today’s advanced vehicles. Steve Sikes, vice president of revenue operations for CARSTAR Chilton Auto Body, was pleased by the number of first responders onsite. “At Chilton’s, we are proud to play a valuable role in educating these amazing individuals and showing them how to extricate drivers and passengers from today’s advanced vehicles,” Sikes said. “On top of that, if we end up saving lives as a result, that’s even better. We are doing something special and helping the community in a huge way. This educational session was hands-on and comprehensive and taught by Eric Sanders from HURST Jaws of Life—so we know that the participants received the latest and relevant training available in the industry.” “The growing popularity of high-voltage hybrid and EVs and the many safety concerns surrounding these vehicles makes this program more and more of a necessity,” NABC said in a statement. “Alternative fuel systems present different challenges when first responders arrive at the scene of an accident. Electric cars, hybrid cars and natural gas vehicles have fuel systems that pose dangers for first responders if the need arises to ‘cut’ the vehicle for rescue.” Sanders, western regional sales manager for HURST Jaws of Life, came up from San Diego, CA, to share his experience and knowledge about his products and extrication

techniques. “We do approximately half a dozen of these educational events every year, and they are all very satisfying,” he said. “In most cases, we get cars from the junkyards, and they aren’t always the newest models. But in this case, we got four EVs and one hybrid so that the firefighters could see how they could

The firefighters had the opportunity to work with extrication tools provided by HURST Jaws of Life

use HURST’s spreaders and cutters to efficiently and quickly extricate people from today’s modern cars. “With all of the ADAS systems onboard, not to mention the highstress metals and new technologies used in them, learning the right way to disassemble these vehicles can save lives,” Sanders said. “We go to the car manufacturers and learn from their engineers about how to use our devices for optimum results on the new cars before they even enter the market.”

Dan Tessadri, APD business consultant, physical damage for CAA, Inc. Group, was happy to report CSAA donated all four vehicles for the program. “There are hidden dangers associated with the EVs and hybrids, and that’s why we wanted to get some newer cars to work with,” he said. “If we can make a positive impact on the community in Santa Clara County, we are always willing to help. It’s not easy to get these vehicles because they don’t often get into serious accidents, and totals can be rare. So, by finding four cars to fit the bill, we’re able to contribute to the success of NABC’s First Responder Emergency Education program with these late- model vehicles.” Brian Newberry, vice president of development for Driven Brands and an NABC board member whose family has a legacy of serving as firefighters, perfectly synopsized the importance of the event. “Helping firefighters, policemen and other emergency professionals through this program is a win for the shops, the emergency personnel, our insurance partners and the drivers in Silicon Valley as well,” Newberry said. “Through the program, NABC and its members have helped educate nearly 5,000 first responders on how to extricate from today’s advanced vehicles and save lives in these communities. When you join NABC, you take advantage of a wide range of great programs, and the NABC First Responder Emergency Education program is surely an excellent example of what we offer.”

Hertz Posts Q2 Revenue of $2.3B, Net Income $940M by Auto Rental News Staff

For the second quarter of 2022, Hertz Global Holdings reported record results of revenue of $2.3 billion in overall revenue, a net income of $940 million and adjusted corporate EBITDA of $764 million, a 33% margin. The revenue was up 25% over the second quarter last year, and 30% quarter over quarter.

Revenue results were driven by Hertz’s international segment, which rose 61% compared to the second quarter of 2021, though adjusted EBITDA was virtually flat. Revenues in the Americas segment jumped 20% quarter over quarter, while adjusted EBITDA rose 16%. In the Americas segment, Hertz finished with 422,113 average vehicles in its fleet, a 21%

48 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com

gain over the second quarter of 2021. Utilization remained steady at 80% compared to last year. Transaction days jumped 17%, while depreciation per unit fell 36% to $49 a vehicle. “Our second quarter results were impressive and position us well for the peak summer season,” said Hertz CEO Stephen Scherr in a statement. “We produced record Adjusted Corporate

EBITDA and adjusted free cash flow, taking advantage of positive market conditions. The hard work of our team and the resulting financial performance provided us with the opportunity to pursue investments in technology and a younger fleet, while returning capital to shareholders.” At end of trading on July 29, Hertz’s stock was up 6.25% at $21.42 a share.


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Mike’s Auto Body Gave Away 100 Cars in 21 Years, Changing Countless Lives by Ed Attanasio

When Crash Champions announced it was acquiring Mike’s Auto Body (MAB) in June, many people throughout the Bay Area thought about MAB’s nationally acclaimed Benevolence Program. It became part of the brand at Mike’s Auto Body as the company and its owners, the Rose family, gave away exactly 100 vehicles to deserving families, individuals and nonprofit organizations over the past 21 years. The goal has always been to give people a hand up as opposed to a handout with the gift of transportation, and the MSO achieved that mission with every vehicle it presented to a deserving recipient. In 2001, Mike’s Auto Body began giving refurbished cars to people in need. The very first recipient was a single mom with two children. Reporter Wayne Freedman from Channel 7 ABC News reported on the presentation and broadcast the story on the evening news. It quickly became an annual tradition, as Freedman and his news team reported on every presentation throughout the years during the holiday season, along with more and more media that flocked to the feel good story. Over the years, Mike’s Auto Body got more people involved in its Benevolence Program, including vendors, technicians, car rental companies and insurance partners. The vendors donated products and their services, the technicians at Mike’s Auto Body donated their time and skills, and the insurance and car rental companies donated the vehicles. The vehicles donated were considered totaled, but by refurbishing them and returning them to their pre-accident condition, they looked brand new. Mike’s Auto Body made its first presentations from 2001 through 2006 at its Concord, CA, location, with a one-year exception in Brentwood, CA. Since then, it has held car presentations at some of its shops in the East Bay, as well as at other locations, including in conjunction with the U.S Coast Guard’s CPOA in Alameda, CA, on the pier in front

of the USS Hornet Museum. The Benevolence Program director at Mike’s Auto Body is Sal Contreras, who has been involved with every car presentation since the program’s inception and is considered the Benevolence Ambassador. “We always say that at Mike’s, we are providing ‘a gift of charity wrapped in dignity,’” Contreras said. “These deserving people are

Over the years, Mike’s Auto Body got more and more people involved in its Benevolence Program, including vendors, technicians and insurance partners. Sal Contreras, Benevolence Ambassador, is pictured far right

working towards making a better life for their families; all they need is reliable transportation to make it happen. “Early on, Mike [Rose] said he wished he could give 100 cars to families; well, we achieved Mike’s dream in December of 2021,” Contreras said. “We presented the 100th car to a single mom who had been struggling to raise her family without a car. The Benevolence Program came full circle, as our first recipient was a single mom raising her family.” The Rose family made the Benevolence Program part of their lives, and it was quickly ingrained into their DNA. “We feel very fortunate to be involved with such a wonderful program and are very excited to be able to give back to the area communities that have supported us for the past 50 years,” owner Mike Rose said. “After receiving hundreds of applications over the years and reading the heartbreaking stories, we only wish that we could do more. But hopefully, with increased publicity of our Benevolence Program, other shops will adopt a similar program of their own.” “As a family-founded company, we have always prioritized philan-

50 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com

thropic initiatives, in particular those that most impact our neighbors and the community organizations they rely on,” said Brennan Rose, CEO of Mike’s Auto Body. “To this end, we could not be prouder to celebrate our 100th vehicle donation as part of our Benevolence Program. For more than two decades, this program has been a staple of our charitable giving, and as we transition under the Crash Champions name and banner, we look forward to finding new and creative ways to give back to the communities where we operate.” CFO Ragen Ortland-Rose was a major force behind MAB’s Benevolence Program. “We never imagined that the program would grow as it did,” she said. “Our people and the community rallied around it, as the power of giving grew exponentially. We’ve always stressed quality in everything we do, and the program illustrates that. We enabled so many worthy people to improve their lives, and that’s why it gained so much momentum.

“Other body shops reached out to us and started their own programs, so the giving spread, and today our program will live through other shops all over the country,” Ortland-Rose continued. “We know that Crash Champions will continue our legacy in some form because they share our passion for helping others. My father and my mother stressed that this is important, and that’s why we did it every year for 21 years. “When we gave away our 100th vehicle, we did not realize that it would be the last within our program, but now it is fitting and a number that all of us can easily remember!” Ortland-Rose concluded. “Thanks to everyone involved, including employees, insurance partners, vendors and the nonprofit organizations that helped us find worthy recipients over the years.”

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Biden Signs $740B Climate, Tax and Health Care Bill into Law by Casey Harper, The Center Square

President Joe Biden signed a $740 billion spending package into law Aug. 16, the final step for the green energy, health care and tax hike bill after months of wrangling and controversy, in particular over the legislation’s hiring of 87,000 new IRS agents to audit Americans. Democrats at the White House on Aug. 16 touted the bill’s deficit reduction of $300 billion over the next decade. The bill includes several measures, including a $35 per month cap on insulin copays, an extension of Affordable Care Act subsidies and authorization for Medicare to negotiate certain drug prices. “With this law, the American people won, and the special interests lost,” Biden said. “This administration began amid a dark time in America...and yet we’ve not wavered. We’ve not flinched, and we’ve not given in. Instead, we’ve delivered results for the American people.” The bill also spends $386 billion on clean energy and climate

change initiatives. That funding includes more than $270 billion in tax credits for manufacturing wind turbines, solar panels, batteries and other electric vehicle and green energy technology.

“We didn’t look back, we looked forward,” Biden added. The bill also includes a 15% minimum income tax on companies with more than $1 billion in revenue. Critics blasted the bill, saying cutting pharmaceutical companies profit potential will disincentivize investment in new medicine. Critics also argued more federal spending means more waste and handouts for large corporations. “Biden’s inflation bill: $7,500 electric vehicle tax credit,” said

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Daniel Turner, head of the energy workers advocacy group, Power the Future. “Ford: Raised price of electric vehicles by $8,500. Way to go, Joe.” One of the bill’s most controversial provisions is $80 billion in federal funding to hire an army of 87,000 IRS auditors, more than doubling the agency’s size. The Biden administration has claimed the increased auditing will more than pay for the $80 billion investment and help pay for the bill. As The Center Square previously reported, experts say more than 30 million small businesses will be in the crosshairs of those audits. “There is no doubt that boosting IRS audit capabilities through a vast increase in the hiring of 87,000 new staff focused on this effort will hit small businesses the hardest,” said Karen Kerrigan, president and CEO of the Small Business and Entrepreneurship Council. “The tax data shows that it is small businesses of moderate means, not ‘the wealthy,’ that are targeted most frequently.”

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Lemonade to Use Mitchell’s Claim Solutions for Newest Product by Stacey Phillips

Mitchell, an Enlyte company, recently announced Lemonade, the insurance company powered by artificial intelligence (AI) and social impact, has chosen Mitchell’s claims management platform for the insurer’s newest product, Lemonade Car. The company will use Mitchell’s claims workflow, automation

and total loss solutions to help streamline and optimize claims handling. “At Lemonade, we’ve set out to make the most lovable car insurance available, and part of that is creating the best experience possible,” said a Lemonade spokesperson. “By collaborating with Mitchell and using the company’s comprehensive claims management technology, we’re able to build efficiencies into our product to make it as seamless and easy for our customers to file a claim following an accident, as well as share necessary information with third-parties including auto body shops and medical facilities.” “We’re extremely proud that Lemonade—a top-rated insurer with a focus on fast, efficient claims resolution—has selected our technology to support their entry into the U.S. auto insurance market,” said Jack Rozint, senior vice president, repair sales, Mitchell Auto Physical DamContinued from Page 47

Repairify’s New Partnership What sets ATG apart from other training, according to Chesney, is the company’s specialization in OEM repair information and its approach to learning. “What ATG does is take that factory information and dissect it,” explained Chesney. “When it’s a competency around a standard that’s used by all brands, then they level the

age division. “Their decision to do so validates Mitchell’s leadership position in claims processing technology.” “We’re honored to support Lemonade,” said Debbie Day, executive vice president and general manager of Mitchell’s Auto Physical Damage division. “At Mitchell, we continue to invest in the development of innovative, cloud-based solutions that are designed to allow our customers to work more efficiently while meeting consumer expectations for an automated, digital claims experience. Our auto physical damage and casualty solutions help carriers like Lemonade scale quickly as they bring best-in-class offerings to market.” Launched in November 2021, Lemonade Car uses telematics to measure how much and how safe people drive. It provides 24/7 on-location roadside assistance, real-time crash detection and dispatch of emergency services, and offers perks for safe and environmentally conscious customers. These include discounts for low-mileage drivers and those who own electric and hybrid vehicles. After being introduced in Illinois and then expanding to Tennessee and Ohio, plans are in place to continue rolling out Lemonade Car across the country. Mitchell, a leading technology and information provider for the property & casualty (P&C) claims and collision repair industries, will support Lemonade in delivering an efficient, digital claims experience for consumers purchasing auto policies.

Lemonade is a full-stack insurance carrier built to provide the best, most delightful and most transparent insurance experience in the world, according to a company spokesperson. A Certified B-Corp, Lemonade gives unused premiums to nonprofits selected by its community, during its annual Giveback campaign. Rozint explained Mitchell’s solutions provide Lemonade with the technology needed to streamline

terms and the diagnostic approach so that it’s brand agnostic.” An important aspect of the training will include learning how to find OEM service information. “The big myth in the industry is the belief that OEM service information is hard to get a hold of,” said Chesney. He stressed the importance of checking the repair information on every vehicle. “In the case of things like ADAS, it changes daily and you need to go

look at it for every repair or calibration,” recommended Chesney. “Otherwise, it can catch you by surprise and get you in trouble.” Repairify’s ultimate goal is to help prepare technicians to repair future vehicles and present information in a way they will understand. “We look forward to enabling technicians with skills and technology so that what happens in the classroom sticks more and it gives them the ability to apply it when they get back to the shop,” he said.

52 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com

key steps in the claims process, including loss reporting and damage appraisal. “Mitchell is committed to helping our customers—both automotive insurers and collision repairers— simplify and accelerate claims management,” said Rozint. “Lemonade presented an excellent opportunity to apply our industry-leading solutions with a partner that is poised for rapid growth.” Through the collaboration, Rozint said Mitchell can assist the insurer with settling claims seamlessly while delivering an exceptional customer experience. “The integration of Mitchell’s solutions with Lemonade’s existing technology stack will support an automated, digital claims process— from first notice of loss (FNOL) to settlement,” he said. Lemonade is also leveraging Mitchell’s auto casualty injury claims processing solutions to automate both

first-party auto and third-party liability claims. “Automating these functions is intended to align with the insurer’s goal for Lemonade Car: to use technology to handle emergencies and settle claims seamlessly, providing the best possible experience for customers,” according to a press release. “Lemonade is advancing the auto insurance market with sophisticated technology and Mitchell, being an auto casualty technology leader, is happy to support those goals with our specialized casualty technology and service solutions,” said Norman Tyrrell, vice president of product management, Mitchell Casualty Solutions Group. “Lemonade will be leveraging Mitchell’s DecisionPoint Medical Bill Processing software as well as a number of our Technology Enabled Solutions.” Several years ago, Mitchell decided to rebuild its core platform around key concepts that included an open, cloud-based architecture, and support for proper and safe repairs. “With each new customer, we believe that the market is validating this direction,” said Rozint. For more information about Lemonade Car, visit www.lemonade.com/ car. For property casualty and collision repair updates and perspectives, follow Mitchell on Twitter @MitchellClaims and @MitchellRepair.

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The company also plans to offer career paths for potential collision and mechanical technicians that are appropriate for their roles. “Bringing ATG alongside what we’re doing on the collision side really allows us to leverage our existing content, so our internal team of technicians and remote techs can be better prepared to help our customers,” said Chesney. For additional information about ATG, visit www.atgtraining.com.


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Ohio Groups, Lawmakers Praise CHIPS Act Passed to Boost Intel Investment by J.D. Davidson, The Center Square

The lack of federal subsidies Intel said was holding up its planned $20 billion chip plant in suburban Columbus, OH, cleared the U.S. Senate on July 27. It was signed into lay by President Joe Biden on Aug. 9. The CHIPS Act, which passed the Senate 64-33, will provide $52 billion to U.S. semiconductor manufacturers to help build plants to make microchips. After announcing in January plans to build and create 3,000 jobs at a microchip facility in Ohio, Intel pulled back over the summer, canceling its July 22 groundbreaking while the federal money remained in limbo. “Today’s passage of the CHIPS Act is critical in the effort to bring semiconductor manufacturing back to the United States, protect our national security and create thousands of high-paying jobs in Ohio,” said Sen. Rob Portman, R-OH. “I was proud to help lead efforts in the Senate to pass this legislation and ensure that Intel’s planned semi-

in a CNBC interview that language was inserted into the bill he believes can avoid China concerns. “We did insert some language that I supported on the so-called guardrails to avoid just what you had talked about. I think that’s important. China is very interested, as you know, in investing a lot of money in chips and providing huge incentives, far more than what we are talking about in the CHIPS legislation here, and so are other countries, by the way, South Korea, Japan, Taiwan of course,” Portman said in the interview. Ohio Gov. Mike DeWine said in January an additional An artist rendering of Intel’s planned $20 billion chip 7,000 construction jobs manufacturing plant expected to be built in central could come from the project Ohio. Credit: JobsOhio that is expected to add $2.8 billion to the state’s annual Opponents argued the bill gross project. Ohio committed nearly $2 serves as both $250 billion in taxpayer subsidies to multi-billion- billion in incentives and tax breaks dollar companies and would to Intel. “The best thing this does— subsidize construction of factories with the CHIPS Act—is to make in China. Portman, though, said July 26 sure these jobs are brought home,” conductor plant in central Ohio remains on track and reaches its full potential. Intel’s announced investment is already the largest in Ohio’s history and the company has indicated that with this CHIPS legislation its record investment will grow even larger over time.”

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Sen. Sherrod Brown, D-Ohio, said in a Twitter video statement. Business and manufacturing groups throughout the state praised the Senate passage. “Ohio’s economy stands to benefit even more from the transformational nature of Intel’s investment in semiconductor manufacturing in our state thanks to the CHIPS Act, which will bolster American manufacturing and national security,” said Steve Stivers, president and CEO of the Ohio Chamber of Commerce. The Ohio Manufacturers’ Association called passage and Intel’s planned investment a unique opportunity for the state and country. “Right now, our country has a once-in-a-generation opportunity to strengthen U.S. manufacturing and ensure it consistently competes and wins on the world stage,” said Ryan Augsburger, president of the OMA. “Just as it has since its earliest days, Ohio will play a key role in the next chapter of American innovation. It is time to finally enact this game-changing investment.”

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AirPro Diagnostics, CCC Partner CCC Intelligent Solutions on Aug. 2 announced AirPro Diagnostics will become the newest member of the CCC® Diagnostics network. Through an integration with AirPro, collision repair users of CCC Diagnostics will soon be able to capture and document AirPro scan and calibration information in their CCC ONE® workfiles. The streamlined service with AirPro is expected to be available via CCC ONE in September. The integration does not require a physical connection between the AirPro device and CCC ONE. Information is uploaded automatically, and the scan report is automatically attached to the vehicle’s CCC ONE workfile. Activation is simple. Repair facilities using CCC Diagnostics select their preferred diagnostic provider(s) from those available through CCC’s network and providers send scan data directly to the CCC ONE workfile. Source: CCC Intelligent Solutions

Ford’s July Sales Up 37% Compared to Same Month a Year Ago On improved inventory flow, Ford for the second month in a row is the only major automaker to produce sales gains, as its July sales grew 36.6% vs. an industry down 10.5%. “Ford was America’s best-selling brand in July powered by strong demand across our lineup,” said Andrew Frick, vice president, sales, distribution and trucks, Ford Blue. “Our overall sales rose 37% in July and electric vehicle sales grew at three times the rate of the EV segment. F-Series hit the 60,000-truck mark for the first time this year, with our all-new electric F-150 Lightning having its best sales month yet. Ford SUVs were up 70%, while E-Transit leads the electric van space with 95% of the electric van segment.” Ford total market share hit 13.9%—up 1.0 percentage point from June and 4.8 percentage points over a year ago. Gains come from higher EV sales and share, F-Series and high-end large SUVs. Ford electric vehicle sales were up 168.7%. With Mustang Mach-E up 74.1%, F-150 Lightning delivering its best-month since launch

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and E-Transit’s dominant share position, Ford grew more than three times the rate of the overall electric vehicle segment in July. Sales of Ford Hybrid vehicles continue to climb, increasing 35.3% in July, placing the Ford brand second in hybrid vehicle sales to only Toyota. F-150 Hybrid sales totaled 4,364 vehicles, while Maverick Hybrid sales totaled 2,153 trucks.

To date, 66,500 customers have purchased Ford’s BlueCruise hands-free driver-assist technology. Ford is expanding BlueCruise through Power-Up software updates, adding nearly 15,000 2021 F-150 and Mustang Mach-E customers in July, with another 35,000

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Average Collision Repair-Related Rental in Q2 Decreases by Half a Day from Q1 The second quarter of 2022 saw the average length of rental (LOR) for collision replacement-related rentals at 17.7 days, a 4.5-day increase from the second quarter of 2021, according to a new report from Enterprise. This represents a decrease of half a day from the first quarter of 2022, when average LOR was 18.2 days. While the overall totals in 2022 are much higher than previous years, this quarter-to-quarter decrease of a half-day fits historical trending from the first quarter of the year to the second quarter. While trending seems to be reverting to historical normalcy, the results themselves continue to illustrate a “new normal.” Alaska recorded the highest LOR in Q2 2022 at 22.1 days, which is also the highest year-over-year increase (7.0). Louisiana recorded an LOR of 21.9 days; Rhode Island was third highest at 21.0 days, followed by Oklahoma (20.7) and Georgia (20.4). Eight additional states had a replacement LOR of 19 days or higher, with nine more states recording LOR of 18 days or more. The states with the lowest LOR were Hawaii (13.1), North Dakota (13.2), Iowa (13.3) and Nebraska (13.7). Hawaii also had the lowest increase from Q2 2021 at 1.2 days. Nebraska (2.5) and Iowa (2.7) were the only other states to have increases less than three full days. As noted in Q1 2022’s results, there was little regional difference in the results, confirming the increases as a national occurrence resulting from many factors, including parts availability and delays, staffing, backlogs and processes. Regarding parts, Enterprise spoke with Greg Horn, PartsTrader’s chief innovation officer, who oversees their data analytics department. “We look at the median plus two standard deviations to properly capture the impact of delivery days for all parts on the repair,” Horn said. “PartsTrader’s Q2 2022 median of 14.9 days, compared to the Q1 2022 median of 15.6 days, represents a reduction of 0.7 days, which aligns with the quarter-over-quarter LOR reduction. “New OEM parts availability is still driving many delays, but the good news is there are fewer brands showing big delays,” Horn continued. “Six

OEM brands had median (plus two standard deviations) delays of more than 20 days in Q1 of this year, while the same was true for only three OEM brands in Q2 2022. As we head in the second half of 2022, aftermarket and recycled parts supply and deliveries

claims involving a catalytic converter increased from 1.9% in Q2 2021 to 3.5% in Q2 2022. Thefts of catalytic converters are being driven primarily by the increase in rare earth metal prices, which have only been exacerbated by the Ukraine-Russia conflict.”

are returning to pre-COVID levels. Most OEMs have made significant improvements as well.” John Yoswick, editor of the weekly CRASH Network newsletter, also shared information regarding parts and repair backlogs. “More than 100 of the 650 shops responding to the latest CRASH Network survey included a written comment about backlog of work,” Yoswick said. “Of these shops, more than onethird cited a similar refrain: ‘Almost every car waiting on parts. Swamped with work,’” a shop owner in San Diego said, according to Yoswick. Enterprise also spoke with Ryan Mandell, director of claims performance for Mitchell International, who offered some additional observations that reflect on LOR and cycle time. “Luxury vehicle frequency increased to 12.9% in Q2 2022 (compared to 10.3% in Q2 2021),” Mandell said. “In addition, BEV frequency increased from 0.63% of repairable claims in Q2 2021 to 0.83% in Q2 2022. BEVs on average have 1.3 days longer keys-tokeys cycle times in the U.S.” Mandell also provided another interesting analysis: “Comprehensive

Drivable Claims Drivable LOR was 15.2 in the second quarter of 2022, an increase of 3.7 days from Q2 2021’s 11.5 days. Louisiana had the highest LOR for rentals associated with drivable repairs at 19.0 days. The next highest state was Rhode Island at 18.6 days, followed by Georgia at 18.0 days. Three states had an LOR greater than 17 days. Eight more had an LOR of 16 or more days, and 13 states had an LOR of 15 days or more. North Dakota had the lowest drivable LOR at 10.1 days, followed by Hawaii (10.7), Iowa (11.2) and Nebraska (11.7). Rhode Island, Arizona, Colorado, Washington and Georgia had the largest drivable LOR increases in Q2—all being five or more days higher than Q2 2021. Hawaii had the lowest year-overyear increase, with LOR only up 0.7 days.

58 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com

Non-Drivable Claims Overall, LOR for rentals associated with non-drivable claims was 26.4 days, up 7.7 days from Q1 2021. In the first quarter of this year, five states had non-drivable LORs 30 days or

greater for the first time. In the second quarter, that number rose to eight states: Alaska (34.7); Montana (32.9), Louisiana (32.0), Colorado (31.8), West Virginia (31.6), Oklahoma (30.9), Delaware (30.5) and Washington (30.0). Markedly, eight states had non-drivable LOR increases of 10 days or greater over last year, with Washington representing the highest increase (12.3). Fourteen states had year-over-year increases of 9.0 days or greater, and nine other states plus Washington, D.C., had increases of eight days or greater. Iowa had the lowest non-drivable LOR at 22.1 days. New York was second at 22.5, followed by Nebraska at 22.8. Massachusetts had the lowest year-over-year increase of “only” 4.2 days. Given recent trending, Enterprise broke down LOR by first-party insureds and third-party claimants. Overall, insured replacement rental LOR was 17.1 days in Q2 2022, whereas claimant rental LOR was 18.7 days. Focusing specifically on non-drivable rentals, insured LOR was 24.1 days in Q2 2022, a six-day increase from Q2 2021. West Virginia’s insured non-drivable LOR was 28.6, followed by Delaware at 28.1. Sixteen additional states had insured non-drivable LOR greater than 25 days. Virginia came in lowest at 19.9 days. Claimant non-drivable LOR was 33.8 days, a 12.8-day increase from Q2 2021. Alaska’s claimant nondrivable results help explain some of the increase—their LOR was 52.9 days in Q2 2022. This is a 25-day jump from Q2 2021. Vermont (43.8), Louisiana (42.5), Montana (41.4), Colorado (40.6) and West Virginia (40.2) were other LORs greater than 40 days. According to the weekly CRASH Network newsletter, the national average repair backlog remains near record levels. While scheduled work at shops nationwide eased somewhat in the second quarter, it was not nearly as much as generally happens heading into spring. The length of time a customer is likely to currently wait to get their vehicle repaired has not changed significantly from this past


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winter’s record-high backlogs. Shops on average are still scheduling work out a full month—4.3 weeks compared to 4.5 weeks in the first quarter of 2022. The decline of 0.2 weeks is only about half the usual decline in backlog between the first and second quarter, when spring brings a seasonal drop-off in winter weather-related accidents and the average shop backlog has typically fallen by 0.4 weeks. General trending of repair volume correlates with historical trending of LOR. Yoswick said: “More than 13% of shops are still scheduling more than eight weeks out, a percentage that, until this past winter, hadn’t exceeded 2%. Shops with three months of backlog are not uncommon.” “Cosmetic work is 11 weeks out, non-drivers are four to five weeks out,” the manager of an independent shop in Fort Wayne, IN, told CRASH Network. An estimator in Georgia, when asked about current backlog in June, said simply, “Middle of July!” Almost four in five shops (79%) are scheduling two or more weeks into the future. Less than 3% of shops have no backlog and can start on a new job right away. Only two regions in the country—South Central and West—have an average backlog of less than four weeks. The shortest average backlog in the West, including California, is 3.1 weeks. Until this past winter, that

region had never exceeded an average backlog of 1.5 weeks in the more than five years CRASH Network has been tracking the statistic. The longest backlogs are in the Pacific Northwest, where shops are scheduling work 5.2 weeks in advance, on average. When describing parts availability’s impact to the repair backlogs, PartsTrader’s Horn agreed: “While there are parts availability improvements in Q2 2022, delays still exist in the OEM parts supply chain and consequently, shops are scheduling farther out to protect themselves from potential parts delays.” Another consideration with non-drivable LOR is in the communication process between shop and insurer. Enterprise spoke with Dominic Martino, owner of Gold Coast Auto Body in Chicago, who said: “We are consistently seeing seven to 10 business days elapse between initial estimate or supplement submission and repair authorization. And if the submission requires reconciliation, we could see an additional three to five days. When insurer staff are coming into the shop in-person, we see reconciliation times drop to 24 to 48 hours.”

2021. Washington was highest at 22.8 days, followed by Oregon (20.9), West Virginia (20.8), Alaska (20.2), Idaho (20.1) and North Carolina (20.1). Iowa was lowest at 14.2 days, followed by Wisconsin (14.5), Nebraska (14.5), Wyoming (14.6), Florida (14.8) and Maine (14.9). While Washington’s results were an increase of 8.4 days from Q2 2021, Hawaii (17.2) dropped 1.2 days, and Wyoming saw a small drop of 0.2 days. Notably, California (16.6) was only up 0.6 days. “With used vehicle values reaching new highs in Q2 2022, total loss frequency continued to decline to the lowest level in the past six years at 14.2%, compared to 17.1% in Q2 2021,” Mandell said. Summary The results for the second quarter of 2022 offer several items of note. As noted in the first quarter, the second quarter results are traditionally the lowest of the year. While the historical trending seems to have returned, the results themselves continue to be

exacerbated by supply chains disruptions, parts delays, collision repair backlogs, claims process challenges and technician shortages. And with the complexity of vehicle repairs only increasing, for both ICE and BEV models, the entire industry must play a part in ensuring all collisionrelated businesses are aligned—not just for procedural solutions, but to ensure our mutual customers receive safe and proper repairs, and excellent experience and peace of mind. Enterprise is committed to partnering with insurers, repairers and suppliers on each one of these issues. Through foundational support provided by the Enterprise Holdings Foundation, Enterprise is spearheading the Collision Engineering Program, in partnership with Ranken Technical College. The program, designed to attract and develop entry-level talent to fill essential roles within the collision repair industry, is piloting at four schools nationwide. For more information, visit www.beacollisionengineer.com. Source: Enterprise

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Total Loss Claims The LOR for rentals associated with total loss claims was 17.3 days in Q2 2022, up 3.1 days from 14.2 in Q2 G E N U I N E PA R T S

Continued from Page 46

Techs of the Future your collision repair department?

A:

Within the past 18 months, we have been working on bolstering the relationships we have with our local body shops. We have a lot of body shops in our service area that are actually owned and operated by former students of the program. We also have a couple dealership repair centers in our area, and we have been able to partner with them as well. I realized we had an opportunity to strengthen our program when six local businesses approached me

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questioning the skills they were seeing in our students who had entered the workforce. So, I personally built relationships with these companies, and their managers have partnered with us in the work we have done to strengthen our program. We have worked to bolster our relationships with local body shops. The shops have been very receptive, very helpful and very engaged. We also work with vendors like PPG that come and do special paint classes for our students. This is just one great example of the learning opportunities we provide our students. In addition, we did just receive ASE accreditation that we have been working on for the past 18 months.

UPDATED DAILY

60 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com

The Right PARTS. A PERFECT Fit. Order Genuine Mazda Parts From These Parts Specialists in Your Area.

The Dealers Below Are Mercedes-Benz Genuine Parts Specialists:

CALIFORNIA

Mercedes-Benz of Valencia Valencia

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

josh.henderson@mbzvalencia.com

SO. CALIFORNIA

Galpin Mazda Van Nuys

818-778-2005

Fax 818-778-2090 www.galpin.com


CREF Invites Collision Industry to Fall 2022 High School & College Transportation Student Career Fairs

3M, CREF Donate Products to 300 Schools

as a means of generating brand awareness for the business but most importantly, in order to showcase the diverse career paths available to the students in attendance.”

As 2021 drew to an end, 3M donated $889,719.50 in products and supplies to 300 schools around the country, through the Collision Repair Education Foundation (CREF). Equipping collision education programs with the most upto-date supplies, materials, tools and equipment allows collision instructors to train students with the same products they’ll be using in their future positions in the industry—without maxing out the department’s budget. Each care package included several DA sanders, along with sanding/graining/finishing discs, sandpaper, repair glue and “all kinds of good stuff,” according to Jerry Goodson, collision repair and refinishing instructor at Chippewa Valley Technical College in Eau Claire, WI. Since 2008, 3M has actively aided CREF’s efforts to assist collision students, instructors and schools, generously providing frequent in-kind donations, funding grants and supporting CREF’s Hire Our Heroes campaign. Source: CREF

Aging workforce blues got you down? Worried about who will fill the workforce as older employees retire? Ready to do something about it? The Collision Repair Education Foundation (CREF) invites industry businesses to participate in its Fall 2022 High School & College Transportation Student Career Fairs, being scheduled across the country to provide employers with an opportunity to get to know thousands of incoming industry professionals. “CREF’s Career Fairs provide a unique opportunity for collision industry employers to connect with hundreds of students who have trained for entry-level positions and are ready to start their careers,” said CREF Program Manager Tiffany Bulak. “Engaging with future transportation industry professionals is vital for all segments of the industry—collision centers, dealerships and even paint, tool and equipment companies—

Fall 2022 High School & College Transportation Student Career Fair Schedule Oct. 4: 3M Headquarters, SaintPaul, MN Nov. 9: Kingwood Park High School, Houston, TX Nov. 10: Collin College, Dallas, TX Dec. 6: Suburban Showcase Conference Center, Detroit, MI To complement the physical career fair events and ensure CREF helps connect students with employers across the country, CREF also has an electronic student resume database with contact information for over 600 collision students. Interested in participating in an event listed above, or in collaborating with CREF to schedule one in your market? Contact Bu-

lak at Tiffany.Bulak@ed-foundation.org. Can’t attend a career fair but still anxious to get your company name in front of incoming technicians? Support local high school and college collision students by sponsoring work uniforms to ensure the future workforce recognizes the value of looking professional. For a donation of just $50 per student, companies can provide students with a brand new Cintas technician shirt, branded with your logo, work pants and a safety kit. Email Tiffany.Bulak@ed-foundation.org to learn more. Industry members interested in getting involved and supporting CREF’s efforts to assist secondary and post-secondary collision repair training programs should contact Brandon Eckenrode, managing director, at 312-231-0258 or Brandon. Eckenrode@ed-foundation.org. Monetary donations can be made online. Source: CREF

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

Visit these Genuine Hyundai Parts Dealers

FOR YOUR COLLISION JOB.

So. California

No. California

KEARNY MESA HYUNDAI CALIFORNIA Circle Porsche

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

IDAHO Porsche of Boise

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

The RIGHT COLLISION PARTS

San Diego 4797 Convoy St.

LITHIA HYUNDAI OF FRESNO

800-469-9731

Fresno 5596 N. Blackstone Ave.

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

559-436-6041 559-436-0743 Fax

858-300-3331 Fax

800-462-2231

Mon-Fri 7am - 6pm; Sat 8am - 4pm etaylor@lithia.com

©2022 Porsche Cars North America, Inc. Porsche recommends seatbelt usage and observance of traffic laws at all times.

autobodynews.com / SEPTEMBER 2022 AUTOBODY NEWS 61


Hyundai Gets $19.2 Million Penalty for Tarnishing Millions of Customer Credit Reports by Michael Gauthier, CarScoops

Hyundai Capital America—the captive finance partner of Hyundai, Kia and Genesis in the U.S.— has been slammed by the U.S. Consumer Financial Protection Bureau for “widespread credit reporting failures” that harmed millions of customers. According to the government, HCA repeatedly provided inaccurate information to credit reporting companies and didn’t take proper steps once problems were identified. Furthermore, the Consumer Financial Protection Bureau alleges the company used “manual and outdated systems, processes and procedures to furnish credit reporting information—which led to widespread inaccuracies—and resulted in negative inaccurate information being placed on consumers’ credit reports through no fault of their own.” The scale of the problem was massive, as the Consumer Financial Protection Bureau found HCA furnished inaccurate information for more than 2.2 million custom-

ers on more than 8.7 million occasions between 2016 and 2020. Even worse, “In many cases, Hyundai knew it was providing inaccurate information and failed to take reasonable measures” to address the issue.

This hurt consumers as HCA would report customers delinquent on loans and leases, despite having been paid on time. In particular, the government found “in approximately 570,000 instances, Respondent (HCA) inaccurately inserted codes showing delinquent or no payments in the PHP (pay-

ment history profile) when the consumer had in fact made the required payments and the account was actually current.” Unsurprisingly, this lowered customers’ credit scores and impacted their access to credit. It also subjected them to higher interest rates due to their lower credit score. Following an investigation, the Consumer Financial Protection Bureau determined HCA violated the Fair Credit Reporting Act by failing to report complete and accurate loan and lease account information, failing to provide date of first delinquency information when required, failing to modify or delete information when required, failing to have reasonable identity theft procedures, and failing to have reasonable accuracy and integrity policies and procedures. In a statement, Consumer Fi-

nancial Protection Bureau Director Rohit Chopra said, “Hyundai illegally tarnished credit reports for millions of borrowers, including by falsely reporting them to credit reporting companies as being delinquent on their loans and leases. Loan servicers must be complete and accurate when furnishing information that affects a borrower’s credit report.” HCA will pay a $6 million civil penalty to the Consumer Financial Protection Bureau, as well as $13.2 million in compensation to current and former customers who had inaccurate information furnished to credit reporting companies saying they were “30 or more days past due on an automobile retail installment contract or lease.” While $19.2 million sounds like chump change, the Consumer Financial Protection Bureau noted this was its largest Fair Credit Reporting Act case against an auto servicer. The bureau also revealed Americans owe $1.4 trillion in auto loans, making it the third largest consumer credit market.

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The Book That Will Challenge Everything You Know About the Collision Repair Business. Order your copy today and join the Body Shop Secrets community!

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INSIST ON GM GENUINE PARTS

Call Any of These Wholesale Parts Dealers Below No. California

No. California

So. California

Nevada

Chase Chevrolet

American Chevrolet

Corwin Buick GMC

209-475-6620

209-491-7810

Thorson Motor Center 626-793-0454

STOCKTON

209-475-6708 Fax

MODESTO

209-575-2564 Fax

PASADENA

RENO

775-333-8777

M-F 7:30 am - 5:30 pm Sat 9 am - 2 pm gmparts@americanchevrolet.com www.americanchevrolet.com

626-795-6872 Fax

M-F 7:30am - 6pm Sat 8:30am - 2pm parts@thorsonmotorcenter.com

775-322-1837 Fax M-F 8am - 5:30pm ahardie@corwinauto.com www.corwinbuickgmc.com

So. California

Montana

925-828-8251

Courtesy Chevrolet

M-F 7am - 6pm Sat 8am - 4:30pm

800-336-1404

SAN DIEGO

Denny Menholt Chevrolet

Michael Hohl Motor Company

619-297-4023 Fax

406-896-3111

M-F 7am - 5pm Sat 7:30am-4:30pm cesar@chasechevrolet.com

Dublin Chevrolet Cadillac Buick GMC DUBLIN

925-829-2941 Fax

FH Dailey GM Parts Center

M-F 7am - 6pm Sat 8am - 5pm www.courtesysandiego.com

800-4A-GMPART

Paradise Chevrolet

M-F 8 am - 5 pm Sat 8 am - 4 pm parts@fhdailey.com www.fhdailey.com

888-5-CHEVY-5

SAN LEANDRO

510-351-0534

925-934-5022

Rydell Automotive Group

M-F 8 am - 5 pm Sat 8 am - 3 pm steadparts@gmail.com

M-F 7 am - 6 pm tsoltis@dennymenholt.com

M-F 7 am - 6 pm Sat 8 am - 5 pm gmparts@michaelhohl.com

(888-524-3895) 805-642-0134 805-644-7214 Fax M-F 7:30am - 6pm Sat 8am - 3pm

925-934-0336 Fax

406-896-3924 Fax

775-884-8645 Fax

VENTURA

Michael Stead Cadillac WALNUT CREEK

BILLINGS

CARSON CITY

775-884-8619

SAN FERNANDO VALLEY

818-832-1660

818-832-1692 Fax

M-F 6am - 7pm Sat 8am - 5pm nrparts@rydells.com

autobodynews.com / SEPTEMBER 2022 AUTOBODY NEWS 63


Please see us at SEMA Booth # 33127

64 SEPTEMBER 2022 AUTOBODY NEWS / autobodynews.com