October 2021 West Edition

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GEICO Seeking to Amend Lawsuit Against Oregon Auto Body Shop

by John Yoswick

GEICO is seeking to amend its lawsuit against Leif ’s Auto Collision Centers and shop owner Leif Hansen to add allegations of unjust enrichment, and to elaborate on why it is asking the court to allow the insurer to refuse to do business with Leif’s because GEICO believes continuing to do so puts its employees’ safety at risk.

Since GEICO originally filed the lawsuit in U.S. District Court in Oregon in 2017, the insurer has argued it should not have to do busi-

ness with Portland-based Leif’s, despite Oregon’s law guaranteeing consumers the right to use their choice of shop, because doing so, GEICO said, subjects its employees to menacing and other harassment by the shop.

See Amend Lawsuit, Page 24

ADAS May Not Curtail as Many Accidents if it Doesn’t ‘Age’ Well

by John Yoswick

In another indication the increased prevalence of advanced driver assistance systems (ADAS) are not likely a death knell for the collision repair industry, a recently-published study estimates there will be about 790,000 “risk events” per year on the roads in the EU in 2029 attributable to reduced performance of lane-keeping assistant systems alone.

Risk events are failures of the system that reduce performance.

The researchers used lane-keeping systems as an example to investigate

the specific impact on the function of ADAS from age-related wear and tear, damage to the system or a lack of calibration of cameras after windshield replacement.

“Assistance systems must function reliably for many years,” said Matthias Schubert of TÜV Rheinland, which conducted the study in collaboration with the British Transport Research Laboratory. “With our study, we have gained initial insights into the circumstances under which lane-keeping systems might function to a limited extent only―and into See Doesn’t ‘Age’ Well, Page 6

Vol. 39 / Issue 10 / October 2021

Are Some Major Players Getting Cold Feet About SEMA? With a rise in COVID-19 cases in Clark County and the State of Nevada’s indoor facemask mandate again in full force, there are understandably some concerns among collision-related companies about whether or not to participate in the 2021 SEMA Show.

The situation has changed dramatically within the last two months, and when you throw in the fact many attendees from Canada and Europe will be prohibited from entering the U.S. for the show, it’s not surprising both exhibitors and attendees are looking for the exit

doors or contemplating alternatives.

On Aug. 31, Spanesi SpA and Spanesi Americas, Inc. decided to remove their exhibit from the Show,

scheduled for Nov. 2-5, in Las Vegas, NV. Their name can now be added to a list that already included Sherwin-Williams and PPG, two See Getting Cold Feet, Page 25

Multiple Shifts Enable Auto Body Shop to Offer Overnight Repairs

by John Yoswick

A recent webinar during Automotive News’ Fixed Ops Forum promised “Five Secrets of a Body Shop That Rocks,” though not all five were too much out of the ordinary.

Dan Dayfer, manager of the Northtown Collision dealer-owned shop in Amherst, NY, for example, discussed the blueprinting and quality control checklist system his shop uses, procedures fairly widely adopted throughout the industry.

But he also discussed the shop’s nearly round-the-clock operation, with one shift working 7:30 a.m. until 9 p.m. Monday through Wednesday, and a second shift working those same hours Thursday through Saturday. Once a month, those two teams switch the days they are working―meaning once a month, one team works six days in a row, while the other team gets a week off.

A third team consistently works nights, 8 p.m. to 7 a.m. Monday through Wednesday.

That enables one of North-

town Collision’s other “secrets”: overnight repairs. Dayfer said any job considered “fast-lane” can be dropped off up until 9 p.m. and will be done by 7 a.m. the next morning.

He said that generally includes jobs with 20 or fewer body labor hours― repair or replacement of a fender or bumper, for example.

“Customers might go out to dinner, drop their car off after that, and it’s detailed and ready before they work the next day,” Dayfer said. “I would say eight to 10 customers every week will take advantage of this.

Usually they’re just blown away. It works great, especially if someone doesn’t want to get into a rental.”

One of the other ideas Dayfer shared was how the shop tracks materials usage.

“All of our supplies are billed to each individual tech’s cabinet,” Dayfer said. “So for instance, if a tech turns 100 hours in a week, and he buys $400 worth of materials, that’s a $4 per hour cost in materials.

Through the month we track this, See Multiple Shifts, Page 12

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CONTENTS CA Lawmakers Stall on Controversial Vaccine Mandate Bill �������������������������������������������������10 CA New Car Dealers Association Foundation Announces Scholarship Awards for 20 Auto Tech Students �����������������������������������������������12 California Truly Now a Golden State for Dealership Growth ������������������������������������������6 Carvana Grows Reach in Nevada with Reno, Carson City Launches �������������������������������������8 Consultant Says CA Auto Body Shops Need to Know the Laws that Affect Them �������������������42 Crash Champions Enters Idaho Market with Acquisition in Coeur d’Alene ����������������������������8 Del Grande Dealer Group Named Top Workplace for 11th Consecutive Year �����������������������������10 Lithia & Driveway Further Expands Network in California ��������������������������������������������������14 Monterey Car Week Auctions Pull Big Numbers, Breaks Records ��������������������������������������������16 Motorcar Parts of America to Again Be Exclusive Sponsor of CAWA’s Annual Dinner Gala ���������14 Nikola Expands Sales and Service Coverage in Southern California ���������������������������������������14 Southern California First Responders Participate in NABC® F.R.E.E.™ Program �����������������������20 Tesla Builds First Supercharging Station in Alaska �������������������������������������������������������16 The Legendary Barris Kustom Shop Behind the

Apple Car Production Gets Potential 2024 Target Amid Talks with Toyota: Report �����������32

AUTOBODY MARKETPLACE

Approaching ADAS: From Customer Perception to Customer Experience ��������������������������������26

section of Autobody News.

Are Some Major Players Getting Cold Feet About SEMA? �������������������������������������������������1

800-699-8251

ASE Awards Busch Memorial Scholarships �������40 Automotive Industry Trend Continues Towards

ltedesco@autobodynews.com

Use of Lightweight Materials �������������������������44 Axalta Announces Board Changes �����������������������4 Behind-the-Scenes DCR Systems Tour Sponsored by AirPro Diagnostics, AkzoNobel & Car-O-Liner® ����������������������������38 Car Insurance Costs for Men vs. Women in 2021 ���������������������������������������������������������55 Clark Named Educator of the Year ���������������������20 Crash Champions Adds 3 Locations to Growing National Footprint ����������������������������52 Despite Continued Inventory Troubles, U.S. Auto Dealer Sentiment Remains Positive, Spurred by Record-High Profits ���������������������40 FCA to Pay $30M Fine for Illegal Payments to UAW Officials ��������������������������������������������58 Ford Names Doug Field Chief Advanced Technology, Embedded Systems Officer ��������29 GEICO Seeking to Amend Lawsuit Against Oregon Auto Body Shop ����������������������������������1 GM Extends Chevy Bolt EV/EUV Plant

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

Serving Alaska, California, Hawaii, Idaho, Montana, Nevada, Oregon, Washington and Wyoming. Autobody News is a monthly publication for the collision industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2021 Adamantine Media LLC.

American Icon Automotive Finishes ����������������� 27

KECO Body Repair Products ���������������������������� 17

Anest Iwata ������������������������������������������������������ 2

Kia Downtown Los Angeles ����������������������������� 34

Audi Wholesale Parts Dealers �������������������������� 51

Kia Motors Wholesale Parts Dealers �����������48-49

AutoNation Honda Costa Mesa �������������������������� 6

Kia of Carson �������������������������������������������������� 25

AutoNation Infiniti Tustin ��������������������������������� 36

Kia of Irvine ���������������������������������������������������� 33

BMW Wholesale Parts Dealers ������������������������ 55

Larry H. Miller Chrysler-Jeep-Dodge-Ram ������� 32

Car Pros Kia ���������������������������������������������������� 16

LKQ Corporation ����������������������������������������������� 5

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

Shutdown Amid Recall ����������������������������������28

Car Pros Kia Renton ���������������������������������������� 28

Malco ������������������������������������������������������������� 12

Original Batmobile and These 10 Other

Henkle Joins Elite Body Shop Solutions Team ����56

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

Markingpendepot.com ������������������������������������ 10

Crazy Creations is Closing �����������������������������22

I-CAR® to Expand Tech Expertise, Capabilities ���24

Classifieds ������������������������������������������������������ 58

Mazda Wholesale Parts Dealers ���������������������� 59

Colortone Automotive Paints ��������������������������� 25

Mercedes-Benz Wholesale Parts Dealers �������� 59

Courtesy Chevrolet San Diego ������������������������� 37

Michael Hohl Motor Company ������������������������� 38

Joyson Safety Systems Leadership Transition ���59 COLUMNISTS Anderson - From the Desk of Mike Anderson:

Mercedes-Benz Celebrates Launch of First Line of Electric Vehicles ����������������������������������4

Researching OEM Procedures for the

Mercury Insurance Wins J.D. Power Award �������52

Paint Shop ����������������������������������������������������34

Mitchell, Car ADAS Solutions Team Up to

Yoswick - Honda Increasing Crash Parts Production, Transitioning Certified Auto Body Shops Over Time ����������������������������������32 NATIONAL 1Collision Names Director of Location Development ������������������������������������������������28 2021 SEMA Show Update: SEMA Affirms

DCH Chrysler-Dodge-Jeep-Ram-Fiat �������������� 26

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

Dynabrade, Inc ������������������������������������������������ 15

MOPAR Wholesale Parts Dealers ��������������������� 35

Eagle Abrasives, Inc ���������������������������������������� 23

Nissan/Infiniti Wholesale Parts Dealers ������������ 57

Offer Overnight Repairs �����������������������������������1

Eckler’s Automotive ������������������������������������������ 8

Porsche Wholesale Parts Dealers �������������������� 50

Observations on Collision Works Sale to Gerber ��52

Fairview Ford-Lincoln-Mercury ����������������������� 22

Reno Buick-GMC �������������������������������������������� 32

FH Dailey Chevrolet ����������������������������������������� 40

SATA Dan-Am Company ���������������������������������� 11

Ford Wholesale Parts Dealers �������������������������� 53

Sierra Chevrolet-Honda-Subaru ���������������������� 29

Future Nissan of Roseville ������������������������������� 24

Sorbothane Soft-Blow Mallet �������������������������� 14

Galpin Motors ������������������������������������������������� 41

Steck Manufacturing Company ����������������������� 20

Garden Grove Kia �������������������������������������������� 33

Subaru Wholesale Parts Dealers ���������������������� 47

Glenn E. Thomas Dodge-Chrysler-Jeep ����������� 21

Sunmight USA �������������������������������������������18-19

GM Wholesale Parts Dealers ��������������������������� 43

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

Honda-Acura Wholesale Parts Dealers �������30-31

TWN Industries Water Transfer Printing ����������� 13

Hyundai Wholesale Parts Dealers �������������������� 46

Volkswagen Pasadena ������������������������������������ 20

Industrial Finishes and Systems ������������������ 7, 60

Volkswagen Wholesale Parts Dealers �������������� 42

JEN6 Equipment ����������������������������������������������� 6

Volvo Wholesale Parts Dealers ������������������������ 38

Kearny Mesa Subaru-Hyundai ������������������������� 39

Wrenchers �������������������������������������������������������� 9

Provide Enhanced Calibration Support ����������56 Multiple Shifts Enable Auto Body Shop to

PPG Provides Sales Update, Reports Worsening Supply Disruptions and Customer Parts Shortages �����������������������������������������������������59 Proposed $42M Settlement Includes Removal

Commitment to Outstanding Show

of Takata Airbag Inflators in 1.35M

in November �������������������������������������������������25

Volkswagen and Audi Vehicles ����������������������59

3M™ Performance Spray Gun is ‘Go-To’ Gun at Santa Margarita Auto Body �����������������������36 ADAS May Not Curtail as Many Accidents if it Doesn’t ‘Age’ Well �������������������������������������1 All-American from Concept to Collision Repair Shop: Pro Spot a Proud U.S. Manufacturer ����46 Alternative Power Vehicles Estimated to Account for 45% of U.S. Light Vehicle Sales by 2035 ��28 Answers to Your SEMA Show Questions ������������54

Sticker Shock: Owning a New Vehicle Costs Nearly $10,000 Annually �������������������������������27 Tesla’s Elon Musk Pledges to Expedite Service Center Openings �������������������������������51 Tesla’s Musk Shares Brutally Honest Take on Dems’ Revised EV Proposal ������������������������4 Third-Generation MSO Steps Up Philanthropy During Pandemic ������������������������������������������50

autobodynews.com / OCTOBER 2021 AUTOBODY NEWS 3

Mercedes-Benz Celebrates Launch of First Line of Electric Vehicles To celebrate the launch of its first line of electric vehicles, Mercedes-Benz USA has developed an activation at the 2021 U.S. Open to educate fans about its electrification efforts.

The luxury automotive brand will engage tournament attendees to create and harvest clean energy that will be used to help power an upcoming exclusive event with global partner Alicia Keys.

The Mercedes-EQ family of vehicles will combine sophistication, sustainability, high-end technology and style for an unprecedented fully electric luxury experience. The first vehicle from the line, the all-new 2022 EQS Sedan, will launch later this year.

As an official sponsor of the U.S. Open, Mercedes-Benz will host fans in its Brand Center at the USTA Billie Jean King National Tennis Center, Aug. 30-Sept. 12.

Mercedes-Benz will invite fans to walk over a pathway of kinetic tech floor tiles, created in partnership with Pavegen, that will generate reusable clean energy with each footstep. As guests walk over the

Pavegen floor tiles, the weight from their footsteps will compress an electromagnetic generator, which in turn will transform each individual footstep into a small amount of energy that is converted into clean electricity.

For each consumer who walks the pathway, Mercedes-Benz will make a $1 donation per footstep to The National Energy Education Development Project (NEED) to help bring sustainability resources to schools through curriculum and customizable programs. With support from Mercedes-Benz, NEED will expand its upcoming pilot curriculum around electric vehicles and create additional training for students and teachers across the country around electrification and the future of transportation.

Additionally, Mercedes-Benz will randomly select one participant each day of the tournament to receive two tickets to attend the exclusive event later this year.

“Mercedes-Benz is committed to an electric future, and with the Mercedes-EQ family of vehicles, we’ve set our sights on the intel-

Axalta Announces Board Changes

by Simon Alvarez, Teslarati

Axalta Coating Systems, a leading global supplier of liquid and powder coatings, on Aug. 30 announced Mark Garrett has stepped down as a member and chair of its Board of Directors, effective Aug. 26, due to his increasing professional commitments in Europe.

The board has appointed William M. Cook as its new chair, effective upon Garrett’s resignation.

Cook joined Axalta’s board in 2019. He previously served as executive chairman of Donaldson Company, Inc. until 2016, and prior to that served as chairman, CEO and president of Donaldson for more than 10 years. During his 35-year career at Donaldson, Cook held various roles of increasing responsibility, including senior vice president, international, CFO and senior vice president, commercial and industrial. Cook also brings to the board strong public company board experience.

Source: Axalta

Tesla CEO Elon Musk shared a brutally honest take on U.S. Democrats’ revised EV tax credit proposal, which happens to be heavily pro-union.

Musk did not hold back on his criticism, stating the revisions were likely written by lobbyists who do not have American taxpayers’ best interests at heart. In a way, Musk’s critique is valid, considering Tesla’s two best-selling cars are also recognized as two of the most American-made vehicles in the country today.

On Sept. 10, Democrats took the wraps off their proposal for a revised EV credit system, part of a proposed $3.5 trillion social spending bill.

Unlike the previous proposal—which aims to uncap the $7,500 tax credit, grants an additional $2,500 incentive for cars produced in a union factory and gives another $2,500 for EVs built in the U.S—the revised proposal practically penalizes EV makers that do not employ a unionized

ligent evolution of transportation that will help create a smarter way of living,” said Monique Harrison, head of brand at Mercedes-Benz USA. “We are excited to engage consumers to help us create clean energy and support NEED’s efforts to train and empower the next generation of the STEM workforce, and hope that with this initiative we will spark excitement from kids to take part in the future of electric transportation.”

“Partnering with Mercedes-Benz is a game-changing opportunity for NEED to share the excitement about electrification and electric vehicles with students and teachers around the United States,” said Mary Spruill, executive director at NEED. “This engagement at the U.S. Open is harnessing the power of tennis fans to support these teachers and students as they learn about the electric grid and what infrastructure is needed to put more electric vehicles like the EQS on the road, helping to make the future of electric transportation incredibly bright and successful.”

As part of the activation, Mercedes-Benz will officially reveal

the EQS, the first all-electric luxury sedan from Mercedes-EQ, to New York consumers with two vehicle displays at the Mercedes-Benz Brand Center. Fusing technology, design, functionality and connectivity, the EQS is the pinnacle of electric luxury, bridging the gap between elegance and sustainability.

The first models being introduced to the U.S. market include the EQS 450+ and the EQS 580 4MATIC and will launch later this fall.

Fans will also have the chance to play a new visually stunning virtual reality tennis game which will feature an LED wall to display energetic movement as the match is played. Taking place on the iconic blue courts of the U.S. Open, guests can use rackets with sensors to serve and hit a virtual ball back and forth in the Mercedes-Benz Brand Center.

Source: Mercedes-Benz USA

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Tesla’s Musk Shares Brutally Honest Take on Dems’ Revised EV Proposal

4 OCTOBER 2021 AUTOBODY NEWS / autobodynews.com

workforce.

Under the revised proposal, the $7,500 tax credit would still be uncapped for automakers. However, the legislation also proposes a whopping $4,500 incentive for vehicles assembled in a union factory. The proposal aims to award a rather conservative $500 to vehicles equipped with a battery manufactured in the U.S. as well.

The revised proposal would apply to sedans priced below $55,000, SUVs priced under $69,000 and trucks that cost $74,000 and below.

Under the revised proposal, Tesla’s electric vehicles would miss out on $4,500 worth of incentives simply because Fremont’s workers have opted to not unionize. The stance of Tesla’s workers at Fremont is not that surprising, considering the facility, back when it was being operated as a Toyota-GM join venture called NUMMI, was closed under the watch of the United Autoworkers Union (UAW). The closure of the plant was not received well by NUMMI workers, with some employees publicly clashing with UAW

officials during discussions.

It’s not just Musk who has spoken out against the Democrats’ heavily pro-union EV tax credit proposal. Honda and Toyota, both of whom do not employ a unionized workforce in the U.S., sharply criticized the Democrats’ revisions.

Honda noted the bill was “unfair” and it “discriminates among EVs made by hard-working American auto workers based simply on whether they belong to a union.”

Toyota noted in a statement the plan discriminates “against American autoworkers based on their choice not to unionize.”

Tesla currently produces two of the most American-made vehicles in the country being sold today. This was proven by the results of the 2021 American-made Index from Cars.com, which revealed the Tesla Model 3 is the most American car in the country.

The Tesla Model Y stands in third place.

“Just one major automaker, Tesla, can claim domestic production for all the cars it sells here,” Cars.com noted

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autobodynews.com / OCTOBER 2021 AUTOBODY NEWS 5

Continued from Cover

Doesn’t ‘Age’ Well

California Truly Now a Golden State for Dealership Growth

by Auto Remarketing Staff

the consequences this may have for road safety.”

As part of the study, TÜV Rheinland drove a vehicle with simulated damages on the windshield or incorrect calibration of the cameras on a test track. Components were artificially aged. In one scenario, there were also changes made to the chassis.

Researchers observed the function of the lane-keeping assistance system deteriorated when, for example, there were simulated stone impacts in the windshield. In rare cases, the system switched off without warning. The vehicle also drove over lane markings without warning or reaction from the system.

Schubert believes too little is known about how accidents, improper repairs or wear and tear affect the functionality of assistance systems and thus road safety in the long term. The study found failures could lead to as many as 2.3 million risk events each year in Europe alone.

When Urban Science released statistics and insights from its 2021 MidYear Automotive Franchise Activity Report (FAR), analysts said “an interesting observation is that California has returned to the list of most active states adding the dealerships.”

The report indicated a small uptick in dealership rooftops na-

tionwide and an increase in sales throughput. But it’s the rise of 24 dealerships arriving on the scene in the Golden State that triggered the reaction from Urban Science on Aug. 18.

As of July 1, Urban Science said there are 46 more dealerships

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(rooftops) in the U.S., taking the Jan. 1 count of 18,157 up slightly to 18,203. This 0.3% increase is small and indicates continued stability overall, according to the report.

This movement is in contrast to the slight decline Urban Science saw for dealerships in 2020 and is back to the same level of 2019.

Analysts added in a news release that the number of franchises, or brands a dealership sells, also experienced a period of stability, slightly decreasing from 31,959 to 31,932.

“Sales throughput for dealers is defined as the number of sales divided by the dealer count,” said Mitch Phillips, Urban Science’s global director of data. “With the current range of 2021 sales forecasts being slightly more than 2020 and a stable dealer count, throughput is forecasted to increase around 103 units to 910 units. This is about the level we saw in 2013.”

A recent Urban Science online study supports this forecast, finding

that, despite the rise in COVID-19 cases across the U.S., consumers are becoming increasingly comfortable with visiting a dealership in-person, with 64% reporting they believe it is “completely safe to go to a dealership today” and 42% are “comfortable visiting a dealership within the next month or sooner.”

When looking at the demographics, Urban Science indicated four in 10 adults living in urban areas report they’ll buy within the next year―twice as many as those in suburban and rural areas.

“Since 2010, the dealership network has set a new normal pattern of stability,” said Phillips, who added the data shows 98% of local markets had virtually no net change.

The report went on to note the most significant (net) dealership changes occurred in the following states: California: +24 dealerships Texas: +8 dealerships New York: +5 dealerships Illinois: -2 dealerships Kansas: -2 dealerships Tennessee: -4 dealerships

autobodynews.com / OCTOBER 2021 AUTOBODY NEWS 7

Carvana Grows Reach in Nevada with Reno, Carson City Launches

Crash Champions Enters Idaho Market with Acquisition in Coeur d’Alene

Carvana, the leading e-commerce platform for buying and selling used cars, is now offering as-soonas-next-day touchless home delivery to Carson City and Reno, NV, area residents.

Customers can shop 45,000 used cars for sale, secure auto financing or use the car loan calculator, purchase, trade in and schedule as-soon-asnext-day vehicle delivery in as little as five minutes. Customers can also sell their current vehicle to Carvana and receive a real offer just as quickly, without even purchasing a vehicle.

Carvana customers can save valuable time and money with The New Way to Buy a Car® by skipping the dealership and shopping online. As the pioneer of online car buying, Carvana gives customers a high-definition, 360-degree virtual tour of every vehicle, inside and out.

Carvana vehicles have passed a rigorous 150-point inspection, have never been in a reported accident and have no frame damage.

Features, imperfections and updated information about open safety

Crash Champions, LLC, one of the nation’s fastest growing independent collision repair companies, announced Aug. 30 it has entered the Idaho market through the acquisition of Coachman Auto Body, with two locations that serve both the Spokane, WA and Coeur d’Alene, ID metropolitan areas.

This transaction provides Crash Champions with entry to the economic and cultural center of the Inland Northwest and positions the company for future growth in the market.

“We are very excited to bring the Crash Champions brand to the Inland Northwest through our acquisition of Coachman, which has established itself as a trusted partner, providing outstanding service in the region,” said Matt

recalls are listed on every car’s vehicle description page.

All 45,000-plus vehicles in Carvana’s national inventory come with a seven-day return policy; an upgrade to the traditional testdrive. This ensures customers have the right amount of time to determine if the vehicle fits their needs.

By living with their vehicle for a week, customers can do everything from test out the fuel efficiency of their newly purchased crossover on a weekend trip to Reno, or simply take it for a spin along the historic Kit Carson trail and explore the city’s rich history from the comfort of a new ride.

Customers looking to make a change can also trade in or sell a vehicle by simply entering their VIN or license plate number on Carvana.com and answering a few questions, and Carvana can pick the vehicle up and bring them a check, as soon as the next day.

Carvana now offers as-soon-asnext-day vehicle delivery to customers in 303 cities across the U.S.

Source: Carvana

Ebert, founder and CEO of Crash Champions. “Coachman offers top-grade, comprehensive collision repair services combined with best-in-class customer service. It was this powerful combination that made them the perfect launch pad for Crash Champions to establish itself in the market.

“On behalf of the entire Crash team, I am pleased to welcome Coachman’s talented professionals and technicians into our family, and I look forward to maintaining their reputation for excellence while continuing to serve the members of the Spokane and Coeur d’Alene communities.”

For more information about Crash Champions, visit www.crash champions.com.

Source: Crash Champions

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CA Lawmakers Stall on Controversial Vaccine Mandate Bill

by Kat Schuster, Patch

A highly contentious bill to mandate vaccines in California was halted in late August amid pushback and questions of how it could be enforced.

The proposal was also adding more fuel to a push to recall Gov. Gavin Newsom.

The proposal, which Democratic lawmakers have deliberated on for a month, would require every worker in the state to verify his vaccination status or test weekly.

The proposal will be held until next year to allow more time to create the “strongest policy possible,” said the bill’s author, Assemblywoman Buffy Wicks (D-Oakland.)

The bill, officially announced

by Wicks on Aug. 30, would have required both public and private sector employers across the state to require a vaccination of or impose a weekly testing requirement on employees.

“We’ve made significant progress over the past couple weeks, and I’m hopeful that this conversation will ultimately lead to an increase in vaccination rates and a decrease in COVID deaths and [intensive care

unit] stays,” Wicks said.

The proposal stopped short of requiring vaccinations for workers as the Food and Drug Administration only formally approved the Pfizer vaccine, not Moderna or Johnson & Johnson ones. It remains to be seen if such mandates come down for residents if all vaccines gain federal approval.

The proposal to create one of the toughest coronavirus-related mandates yet comes as political tensions rise around vaccination measures.

The mere mention of it could also hurt Newsom’s battle against an upcoming election to recall him, an effort that largely gained traction among those who opposed his approach to navigating the pandemic.

Newsom has not publicly commented on the bill.

Gubernatorial candidate and Assemblyman Kevin Kiley (R-Rocklin) swiftly vowed to fight the bill.

“Our victory over AB 455 will be short-lived if we don’t keep up the pressure and elect a Governor who understands the Constitution is more than a piece of paper,” Kiley tweeted Aug. 31.

Del Grande Dealer Group Named Top Workplace for 11th Consecutive Year Bay Area News Group has recognized the Del Grande Dealer Group (DGDG), the Bay Area’s largest family-owned automotive group, as one of the Top Workplaces of 2021, marking the 11th consecutive year DGDG has achieved this honor.

DGDG placed third in the large company category.

Winners are chosen based on results of an annual employee feedback survey completed solely by employees. The survey measures several aspects of workplace culture including alignment, future company vision, execution and communication.

“We are so proud of our team and the accomplishments we have achieved over the past year,” said DGDG CEO Shaun Del Grande.

“This award is the highlight of our year and we are proud to be on this list with such incredible companies. Our team continues to provide a world-class experience for our guests and DGDG will continue to innovate to be at our best for all team members.”

From in-house education-

al training to tech-savvy product specialists, DGDG realizes happy team members are the key to success. DGDG believes employee recognition and promoting from within are paramount to future success and growth.

DGDG is dedicated to the continued development of a modern retail experience using its No Brainer Checkout flow on the Prodigy digital retailing tool, as well as a unified operational and marketing platform on Salesforce. DGDG believes these tools will create a better experience for guests, allowing the company to grow the footprint of its organization through upcoming dealership acquisitions and create more opportunities for team members.

Giving back to the community is also important to the successful culture at DGDG. The DGDG family of employees support community causes with their time, resources and money through Del Grande Does Good, the charitable arm of the DGDG dealership group.

Source: Del Grande Dealer Group

10 OCTOBER 2021 AUTOBODY NEWS / autobodynews.com

A previous draft of Wicks’ bill, obtained by the Los Angeles Times, would have called for anyone entering a restaurant, bar, gym, hotel or event center to show proof of full vaccination. It’s unclear whether that text made it into the most recent version of the bill.

“We all want these tragic times to be over, and to see the pandemic behind us―and the fact is that vaccinations are our pathway there,” Wicks said.

State officials are scrambling to find solutions to a new phase of the pandemic in which the delta variant rips through the unvaccinated population as Californians return to their workplaces and social lives. The coronavirus mutation is highly transmissible and more likely to infect the vaccinated, albeit at a lower rate.

The introduction of a vaccine mandate also raised the question of how frequently booster shots would be recommended and whether they would be required. To date, officials are recommending vaccinated Californians get a booster shot eight months after their last dose.

More than 80% of Californians

14 or older have received at least one dose of the COVID-19 vaccine, Newsom announced Aug. 31.

“That ranks us #9 in the country and #1 among larger states,” Newsom tweeted.

The state’s positivity rate has fallen to 4.2%, down from 6.2% in late July. But cases are still surging among those who are unvaccinated.

Google, based in Mountain View, announced Aug. 31 it was postponing a return to the office for most workers until January amid surging cases. The company will require all employees to be vaccinated once its sprawling campuses fully reopen.

“As an industry that employs millions of Californians, retailers will continue to be part of the effort with the administration, the legislature and in our communities on how we can best move forward on this important public health issue,” Rachel Michelin, president and CEO of the California Retailers Association, wrote in a statement. “We share Assemblymember Wicks’ commitment to moving California past this pandemic.”

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Multiple Shifts

CA New Car Dealers Association Foundation Announces Scholarship Awards for 20 Auto Tech Students

and everybody tries to be the lowest.

We give out gift certificates or buy lunches for those who are lowest every month.”

Similarly, the four-person paint teams on each shift are rewarded with a monthly bonus if their perhour paint and materials costs stay under $14.

“So the two painters will share clear, and any extra base that’s accumulated they use as ground coats,” Dayfer said. “They really do a fantastic job.”

Rob Gehring, a consultant who suggested Automotive News highlight Dayfer’s shop on the webinar, said Northtown Collision produces more than $1 million in monthly sales from an 18,000-square foot facility.

“What I am so impressed with is that his gross profit margin on paint and materials is 70%,” Gehring said. “Frankly, I’ve never heard anyone do a better job than that.”

The California New Car Dealers Association (CNCDA) Scholarship Foundation announced the winners of its annual CAR CAREERS Scholarship Program, providing more than $100,000 to deserving students pursuing careers in automotive technology.

The grant recipients were selected through a competitive application process that evaluated academic performance, career interests and industry experience.

The foundation board selected the top four candidates from each of five regions across the state, who were each awarded $5,000 to cover education and training expenses.

From these 20 grant recipients, Vincent Lagasca was selected as the overall statewide winner, receiving an additional $5,000 for the Peter K. Welch Honorary Scholarship.

“We were very impressed with the students who applied for this scholarship program and are proud to be able to support them as they pursue promising careers in the auto tech industry,” said Bri-

an Maas, CNCDA president and CNCDA Scholarship Foundation vice president.

“What interests me most about the automotive industry is how important cars are to our culture in America and how much people depend on the industry to produce, maintain and repair automotive vehicles,” said Nikolai Hansen, an award recipient from Solano Community College. “From getting to work each day or driving across the country to visit family, we all depend on our vehicles to get us where we need to be.”

“There’s something fulfilling about tightening the final bolt on a project―a sense of accomplishment that I haven’t found anywhere else,” said Molly Poer, an award recipient from Cypress College.

“Being an unconventional student, who has already completed previous degrees, worked in a different field and yet still wants to grow my skill set to transition to a vastly different career, I know that I don’t fit the mold of a traditional technician.

I want to be able to give people,

men and women alike, the peace of mind that their vehicle is in the hands of someone who cares.”

“We want to help encourage more and more students to think about the automotive industry as an attractive career option,” said Cheryl Bedford, chair of the CNCDA Scholarship Foundation. “We believe this scholarship program will help not only support the students who win, but will also serve as a tool to increase interest and awareness about the industry.”

The CAR CAREERS Scholarship will be offered again in 2022.

Information on program specifics and the application process can be found at https://www.cncda.org/ foundation/ Source: CNCDA

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Nikola Expands Sales and Service Coverage in Southern California Nikola Corporation, a leading designer and manufacturer of heavy-duty commercial battery-electric vehicles (BEV), fuel-cell electric vehicles (FCEV) and energy infrastructure solutions, announced Sept. 1 the continued expansion of its Class 8 truck sales and service coverage with the addition of Quinn Company, a leading provider of on-highway truck service and construction equipment in the Central and Southern California regions.

The addition of Quinn Company to the Nikola dealer network will include sales and service facilities across 15 counties.

Quinn Company is uniquely positioned via its infrastructure, expertise and sales and service coverage to support the rapid growth of zero-emission commercial vehicles for all classes of trucks in an area of the country experiencing rapid testing and adoption of this technology.

“Given California’s ambitious forward-looking goals to transition to zero-emission vehicles, our dealer development team has been

highly focused on securing bestin-class dealer coverage to support customers in this highly progressive environment,” said Nikola’s President of Energy and Commercial Pablo Koziner. “With over 100 years of experience, Quinn Company has a deep understanding of how important exceptional sales and service is to the customer. We are thrilled to add Quinn Company to our growing sales and service dealer network.”

Founded in 1919, Quinn Company has built an outstanding reputation in the Central and Southern California regions while servicing thousands of customers.

Nikola plans to continue building its dealer network to secure customer coverage from coast to coast. Most recently, Nikola announced a network expansion into the northeastern U.S. with Alta Equipment Group. This announcement expanded on the previously announced list of 116 dealer locations.

Source: Nikola

Motorcar Parts of America to Again Be Exclusive Sponsor of CAWA’s Annual Dinner Gala CAWA, which represents the automotive parts industry, announced Motorcar Parts of America, Inc. will once again be the exclusive sponsor of its 2021 dinner gala in conjunction with the annual AAPEX and SEMA trade shows being held in Las Vegas, NV.

The annual event is the highlight of the year for CAWA, and is dedicated to raising funds for the its scholarship programs.

The gala will be held at the Venetian Hotel on Oct. 31. Additional information about the event is available by contacting programs@cawa.org or 800-3322292.

“Motorcar Parts of America is committed to the auto care industry, and we are delighted to once again sponsor this year’s gala and recognize the important role of CAWA in supporting automotive aftermarket students and our future leaders,” said Selwyn Joffe, chairman, president and CEO of Motorcar Parts of America.

All proceeds from the event will benefit the CAWA Memori-

al Scholarship Fund, which promotes quality and high standards through education within the auto care industry. These coveted scholarships are awarded to students in a curriculum leading to a degree or certificate in an accredited college, university or technical institute; and automotive high school teachers to assure their programs remain viable and contemporary.

“We are pleased that Motorcar Parts of America will sponsor this year’s gala and appreciate their support over the past several years,” said Mike Mohler, chair of the CAWA Board of Directors.

“Their gracious support allows the association to garner the financial support necessary to continue granting scholarships to future associates in the auto care industry and to support automotive teachers at the high school level.”

Lithia & Driveway Further Expands Network in California Lithia & Driveway on Aug. 24 announced the acquisition of Rock Honda, a Top 20 Honda New Volume Dealer in the U.S.

The purchase of this high-performing Honda dealership in the Inland Empire continues LAD’s fast-paced growth trajectory and expands the reach of its omni-channel network.

Rock Honda is located in Fontana, CA, and was the 16th largest New Volume Honda store in the nation in 2020. In addition to vehicle sales and service, Rock Honda is also licensed to provide customers with personal insurance as part of their consumer offerings.

“We are excited to reach more consumers in the Southwest region and welcome the Rock Honda team

to the Lithia & Driveway family,” said Bryan DeBoer, LAD president and CEO. “This high-performing, customer-focused store expands our omni-channel network and introduces a new adjacency with personal insurance products, further complementing our ability to provide consumers transportation solutions wherever, whenever and however they desire.”

Rock Honda is expected to generate $170 million in annualized revenues, bringing LAD’s total expected annualized revenue acquired to date in 2021 to more than $4.9 billion. Lithia is pacing ahead of its five-year plan to achieve $50 in earnings per share (EPS) and $50 billion in revenue by 2025.

This purchase was financed using an existing on-balance sheet capacity.

Source: Lithia & Driveway

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Tesla Builds First Supercharging Station in Alaska

by Mark Kane, Inside EVs

Alaska’s first Tesla Supercharging station will be opened during the third quarter of this year.

“Timing and location subject to change,” Tesla said. “New lo-

Tesla’s Supercharger network

cations added and timing updated quarterly.”

According to the info, there will be a total of four V3 Supercharging stalls, up to 250 kW, which appears to be enough for the location.

Photos of the site were recently shown on Tesla Motors Club, pointing out there are also two destination charging stalls.

A single new station in Alaska is maybe not a big thing compared to the scale of the rest of the network; however, it’s a major milestone for EVs that expand to the more challenging parts of the world, where EV adoption is still low.

Later this decade, Tesla will probably be able to offer decent coverage of the main routes in all states.

Hopefully, the stations in Alaska will be as reliable as the rest of the network.

As of the end of the second quarter, the company had:

2,966 stations―46% more than a year ago

26,900 individual connectors (stalls)―49% more than a year ago

9.1 connectors (stalls) per station on average―2% more than a year ago Every quarter, Tesla adds a few hundred more stations and thousands of individual stalls.

Monterey Car Week Auctions Pull Big Numbers, Breaks Records

by Elizabeth Puckett, Motorious

2021 marked the return of Monterey Car Week, after 2020 coronavirus restrictions knocked out any chance of it happening.

The whole week went off with a bang. Some pre-event projections seemed a little high, but they got blown out of the water.

Now that RM Sotheby’s, Mecum and Gooding and Co. have officially announced the results, we can confirm expectations were most definitely surpassed.

“This year’s Monterey Car Week auctions include excitement around the traditional sectors of the collector car market, like pre-war cars and 1950s Ferraris. However, newer cars may well prove to be the top sellers in 2021,” said Hagerty Vice President of Automotive Intelligence Brian Rabold.

The projection for the amount of money to exchange hands was $320 million, which was nearly met by just three of the official releases thus far―Mecum, Gooding and Co. and RM Sotheby’s add up

to more than $312 million.

“This year’s sale featured a pronounced lineup of cars, including numerous blue-chip automobiles at multi-million-dollar estimates. In total, 44 lots exceeded $1 million, 16 lots exceeded $3 million and four lots exceeded $5 million over the course of the three-night sale,” according to RM Sotheby’s.

RM’s three-day action added up to $148.5 million with 91% of the lots sold. For the famous auction house, this sets five new records and places it in the top three best Monterey auctions of all time.

Gooding & Company also had a record-setting weekend with an 87% sale rate and $107 million sold. Mecum ended on an extremely high note of $57.4 million and 80% of cars sold, making it their most successful daytime auction to date.

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Clark Named Educator of the Year Michael Clark, automotive technology instructor at Bates Technical College in Tacoma, WA, has been named the Mitchell 1 Educator of the Year. Each year, Mitchell 1 recognizes one of the nation’s top teachers for their commitment to educational excellence in the automotive repair industry. As the 2021 recipient, Clark will receive a one-year complimentary subscription to Mitchell 1’s ProDemand® diagnostic, estimating and auto repair information software for his school, a three-year membership in the North American Council of Automotive Teachers (NACAT), a check for $500 and a $200 Snapon® gift card. Clark started in the automotive industry when he was in high school, working in a service station, then as a diesel technician and later a drivability and electrical technician. In 2006, he got into service management and in 2010 his own automotive transport business.

He continued in that area until the end of 2011 when he became an automotive instructor.

Source: Mitchell 1

Southern California First Responders Participate in NABC® F.R.E.E.™ Program More than 30 first responders from the Monrovia, CA, fire department gathered Aug. 10 and 11 for a hands-on demonstration of the latest techniques in emergency vehicle extrication, preparing them to provide the best response for car accident victims in Monrovia and surrounding areas.

The training was thanks to the National Auto Body Council® (NABC) F.R.E.E.™ program, Seidner’s Collision Centers, Automobile Club of California and HURST Jaws of Life.

When drivers in the San Gabriel Valley have an accident, they rely on the community’s first responders to be there to help them to safety. And when they are driving a late-model vehicle with numerous airbags, advanced technology or electric/hybrid engines, the rescue can be more challenging.

Seidner’s Collision Centers, at 1000 Evergreen St., Duarte, CA, hosted first responders from the surrounding area at a special NABC F.R.E.E.™ education and guidance program to help ensure Duarte area drivers have the best prepared re-

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“We want to help make California drivers safer on the highways by ensuring our first responders have the education and preparation they need to rescue vehicle occupants from late-model cars,” said Gene Lopez, director of development and training for Seidner’s Collision Centers, which has 13 locations, seven in the San Gabriel Valley, and six in the Inland Empire. “This is our way of giving back to the first responders who put our safety first.”

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advanced vehicles, addressing highstrength steel and composite materials, multiple airbags, onboard technology and changing vehicle design.

The vehicles for the program were donated by Automobile Club of Southern California, and HURST Jaws of Life provided the classroom education and extrication demonstration.

The growing popularity of high-voltage hybrid and electric vehicles and the many safety concerns surrounding these vehicles makes this program a necessity. 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 need arises to “cut” the vehicle for rescue.

Source: NABC

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The Legendary Barris Kustom Shop Behind the Original Batmobile and These 10 Other Crazy Creations is Closing

by Chris Chilton, CarScoops

Barris Kustom Industries, the birthplace of some of the most famous modified cars of the 20th century, looks set to close.

Self-proclaimed “king of the customizers” George Barris moved his business to North Hollywood in 1961 after splitting from his brother and former partner, Sam. But according to the L.A. Times, the corner lot is now up for sale for $3.995 million and will almost certainly be redeveloped.

Silver Sapphire

The Munsters, in just 21 days. The 18-foot hot rod was created by fusing three Ford Model T bodies and was powered by a tuned 289 cu-in V8 from a Mustang GT. Barris also built a second car called Drag-U-La for the same show, and when we say it was a real coffin on wheels, we’re not kidding.

The Car Hardly George’s most colorful creation, this modified 1971 Lincoln looks like some kind of novelty inflatable. But it’s still the best thing in the awful 1977 movie of the same name in which the local sheriff, played by James Brolin, investigates a mysterious spate of hitand-run deaths.

Sidewinder With a bike wheel up front and a pair of DC-6 passenger plane wheels at the back, this terrifying chopper trike must have understeered like a Citroen 2CV on a frozen Scandi lake. Wheelie bars at the rear stopped it flipping over when you unleashed the 400 bhp Buick V8, which sat across the frame in the footwell, getting cosy with your shins.

Barris, who passed away in 2015, is best known for creating the original Batmobile. After fellow customizer Dean Jeffries decided he couldn’t meet the TV show’s producers’ tight deadline, Barris finished the job in just three weeks, turning an old 1950s Lincoln Futura concept into a car fit for a superhero. Pontiac GTO Custom Convertible

The metal fabrication was actu- Pontiac’s comeback GTO coupe was ally carried out by another shop on panned for looking too boring, but Barris’s instruction, but Barris was you couldn’t say that about this a canny businessman, and happily took the credit― and the cash. He retained ownership of the Batmobile, leasing it to the show, and eventually sold it for $4.6 million in 2013.

But the Batmobile was far from the only crazy creation to spring from Wagon Queen Family Truckster the mind of George Barris. Here are a few highlights, plus one-off convertible that Barris fitted a couple of lowlights to prove that with Mercedes-McLaren SLR-style even a genius can have an off-day. doors, a chopped screen and ostrich leather upholstery. Not the great The Munster’s Koach man’s finest work, but at least it was According to Barris Kustom’s web- better than his Prius. site, Geroge and his team built this creepy sedan for the 1960s TV show, Voxmobile 22 OCTOBER 2021 AUTOBODY NEWS / autobodynews.com

When UK-based guitar and amp manufacturer Vox contracted Barris to build a promo machine, George turned his imagination dial right up to 11. The twin giant Vox Phantom guitars were fakes but it featured a

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trio of working amplifiers capable of powering 32 guitars and a functional Super Continental organ at the rear.

Wagon Queen Family Truckster The hideously kitsch fictional car driven by Chevy Chase’s Clark Griswold in “National Lampoon’s Vacation” was really a 1979 Ford LTD Country Squire, but modified

by Barris to mock Detroit cars of the time.

SuperVan Haven’t seen 1977 Vansploitation flick “SuperVan”? Me neither, but since IMDb lists “wet T-shirt” and “nipples visible through clothing” as plot keywords we can presume its not Scorcesegrade stuff. Still, the Dodge Tradesman-based lead vehicle, which Barris had originally called “The Love Machine” (what, with that much glass?), looked so futuristic it was even reused as a public bus in “Back To The Future II”’s imaginary 2015.

Silver Sapphire Before Barris became famous for his TV cars, he was one of the biggest names in Southern California’s 1950s and ’60s custom and hot rod See Barris Kustom, Page 24

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The suit alleges Leif’s employees routinely yell at adjusters, threaten to have them arrested or to sue them personally and carry around knives and talk about guns “with the intention of frightening GEICO adjusters.”

The proposed amended lawsuit also alleges once customers bring their vehicles to Leif’s, the shop “often encourages its customer to allow Leif’s to ‘handle’ all issues related to the insurers, including notifying those insurers that particular vehicles are on their property.”

But the shop, the amended lawsuit alleges, “often…intentionally delays” notifying GEICO about such vehicles, “racking up unnecessary or improper fees and expenses (including but not limited to storage fees) while a vehicle is at Leif’s.”

It alleges Leif’s obtained a “power of attorney work authorization” from a customer for a vehicle repaired at another shop and

paid for by GEICO. That vehicle had been repaired using a “refurbished part,” which Leif’s removed and replaced with a new OEM part “even though there was no valid reason to do so.” The shop sought to be paid for this work, “along with hundreds of dollars in unnecessary fees and costs, and has in fact held the vehicle in question for over two years.”

The amended lawsuit also alleges Leif’s “will perform hundreds if not thousands of dollars of work” related to teardown of “an obvious total loss,” while refusing to allow GEICO to inspect the vehicles because the shop “knows that if these vehicles are inspected, GEICO will process them as total losses.”

It also alleges Leif’s accepts funds GEICO pre-pays based on an estimate, performs less work than is specified on the estimate, but then retains the excess funds.

Leif’s and Hansen have asked the court to deny GEICO’s motion to amend the lawsuit, saying rather than simplifying or narrowing the scope of discovery, as GEICO con-

Continued from Page 22

cropped up for sale with Mecum.

Continued from Cover

Amend Lawsuit

Barris Kustom scene. Clarence Catallo’s ’32 Ford coupe had already been worked over by the Alexander Brothers in 1959, but it was Barris Kustom’s roof-chopped incarnation of Silver Sapphire that was immortalized on the cover of the Beach Boys’ “Little Duece Coupe” record.

Chevrolet Aztec Based on a 1955 Chevy, but incorporating custom tail fins from a Studebaker Hawk, DeSoto bumpers and an incredible cantilever roof, the Aztec was built for (and with the help of) Barris’s friend and roommate, Bill Carr.

After Carr sold it in 1961, the Aztec’s story gets weird, and involves bank robbers, a murder and an FBI drugs bust. But it was restored in the 1990s and recently

www.autobodynews.com

The Hirohata Merc One of the most influential custom cars of all time, this one came about when Bob Hirohata asked George and Sam Barris to modify his 2-year old 1951 Mercury coupe.

The top was chopped and the B-pillar removed, making it look like a hardtop, and almost every other bit of metal on the car was re-shaped in some way. Inside, the dashboard was hand-painted by legendary pinstriper Von Dutch.

While the famous Barris shop might be closing, it looks like it might live on in spirit. George’s daughter, Joji Barris-Paster, who has handled much of the running of the business for the last 20 years, told the L.A. Times the garage’s historically significant contents will be boxed up and moved to another location which will eventually be open to the public.

UPDATED DAILY

24 OCTOBER 2021 AUTOBODY NEWS / autobodynews.com

tends, the amendments “undercut months’ worth of discovery conferrals and progress made, at great expense to [Hansen and Leif’s], and do much more than ‘clarify’ and ‘simplify’ the allegations.”

The shop and Hansen have argued nothing in Oregon’s anti-steering law “provides for any express exemption at all, let alone a specific exemption” like the one GEICO is seeking. They also have told the court GEICO should instead seek an order halting “the violating behavior” it alleges is happening at Leif’s, rather than seeking “a judicial revision of the anti-steering law.”

I-CAR® to Expand Tech Expertise, Capabilities I-CAR® on Aug. 26 announced plans to significantly expand its technical expertise, capacity and capabilities, providing new infrastructures to support the ongoing creation and delivery of relevant and best-in-class education for the collision repair inter-industry amid an era of extraordinary vehicle technology change.

A hallmark of the expansion plans, underway now, includes the addition of a second technical center in the Chicagoland area to serve as a catalyst for advanced research and development, uniquely reflecting the ongoing and emerging technology complexities associated with Electric Vehicles (EVs), Hybrid Vehicles (HV), Advanced Driver Assisted Systems (ADAS) and beyond.

The new Chicagoland site will expand upon and complement I-CAR’s existing technical center in Appleton, WI.

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Getting Cold Feet companies who chose not to sign up for this year’s show.

Other companies are searching for a compromise, so they can still participate, but on a smaller level.

One of these companies is Dan-Am Company, exclusive distributor of SATA in the U.S.

SATA’s Director of Sales & Marketing Tony Larimer knows the value of SEMA to the industry, but also wants to take a sensible approach to our “new normal” way of life. Usually, SATA has a large exhibit at the show, but it is presently considering a smaller booth and a skeleton crew to send to Las Vegas in November.

“We usually send 60 to 70 people to SEMA, but with all of the factors in play this year, we are looking at possibly getting a considerably smaller booth,” Larimer said. “The most important thing is everyone’s safety, of course, but we also have to look at it financially as well. We invest a ton of money and resources into this show every year, so we

have to think about the return on investment, especially if a lot of people won’t or can’t attend SEMA this year.”

Larimer and his team haven’t made a decision yet and are currently in negotiations with SEMA representatives, he said.

“SEMA is a huge part of this industry, so if we can still exhibit on a smaller scale, we see the value in it. Right now, we have a lot of questions and SEMA is working hard to accommodate us, so we will keep everyone informed as soon as we know the details.”

Spanesi Americas COO Tim Morgan said opting out of SEMA wasn’t an easy decision.

“Out of an abundance of caution for the health and safety of Spanesi’s customers, distributors, business partners and staff, we have made the difficult decision not to participate in the 2021 SEMA Show,” he said. “The SEMA Show is the cornerstone of our marketing activities.

We always enjoy greeting our current and new customers every year in our booth.”

Unfortunately, given the current

environment, Morgan’s decision to withdraw was inevitable, he said.

“We wish the entire automotive industry health and safety as we all continue to adapt our business operations. Spanesi has been a fixture at the SEMA Show since 2012, and we look forward to seeing everyone again in 2022 with a whole new booth and new equipment offerings.”

SEMA Vice President of Events Tom Gattuso firmly believes this year’s show will happen in early November.

“The landscape with the COVID pandemic is changing frequently,” he said. “Those changes, coupled with uncertainty with international travel, has caused some companies to have

to make the decision to not attend the SEMA Show this year.

“We’re excited that we have five halls full of exhibitors confirmed, and tens of thousands of buyers already signed up to attend the upcoming SEMA Show. There is pent-up demand for an in-person event this year, and we are committed to providing the industry with the best Show yet,” Gattuso continued. “In-person connections are important and valuable and something that cannot be replaced, and this year’s SEMA Show will offer unlimited business opportunities, new programs and features, and networking events that will set up businesses and attendees for future success.”

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Approaching ADAS: From Customer Perception to Customer Experience It’s no secret vehicles equipped with Advanced Driver Assistance Systems (ADAS) are available on dealership lots nationwide.

However, while the industry keeps innovating and releasing more available features, consumer acceptance isn’t happening as quickly as one may think. Which begs the question—how do drivers actually feel about ADAS?

While the growing list of available safety features is sought by over half of drivers, many have a complicated perception of ADAS and its benefits. In fact, as many as 70% of drivers even disable them.

These statistics, along with the newly conducted consumer research detailed in CCC’s 2021 Crash Course Midyear Report, give auto manufacturers a great deal to consider.

Despite the many drivers who wanted ADAS features when purchasing their current vehicle, only 20% begin the buying process seeking out an ADAS equipped vehicle.

And while an overwhelming 84% of drivers feel all ADAS features promote safe driving, many also feel that certain features can actually increase the chance of an accident.

This may point to a challenge many OEMs could face—as they invest in building and improving safety features for their vehicles, how do they convey their value?

Of the drivers that turn off their features, the top reasons for doing so include a belief the features were not working properly, the noises/ lights were distracting or the technology was simply not needed— each a factor to address.

CCC research also revealed it is not uncommon for there to be some level of resistance to a new feature or technology. The seat belt is an example of this hurdle.

It took years, many public safety campaigns, and the passage of state laws to get the majority of drivers to reach for the seat belt every time they entered a car.

Should some ADAS features become regulated in the future, it’s important to understand driver concerns sooner rather than later.

A clear understanding of customer

mindset is key to building the trust necessary for adoption.

CCC’s in-depth look into driver perception can help inform auto manufacturers’ decisions about how they communicate with their drivers regarding included safety features and optional add-ons, as well as how to ensure they are allocating the appropriate amount of resources and budget to future development.

Connected technologies can also play a key role in understanding ADAS usage and impact. The ability to constantly capture and share actionable insights with OEMs can offer a window into how people drive and how ADAS affects collision frequency and severity.

Benefits can extend to the insurer side where more visibility, including better ability to determine if features are active or turned off at the point of collision, can provide additional clarity during the claims process.

And with a unique set of ADAS features present in a variety of vehicles, quote-seeking drivers may also find it helpful to share specific vehicle details with an insurer in hopes of securing a lower insurance premium. OEMs who see the value in facilitating this data share may find it becomes yet another opportunity to enhance the customer experience for their drivers.

Beyond this, in the event of a crash, the presence of ADAS has added a new layer of complexity to repairs. As more technology is embedded into cars, the cost of the average repair goes up. This means fender benders are no longer just that. Damage to a bumper could require a backup camera replacement, or damage to a sideview mirror may impact blind spot detection capabilities.

This complexity creates a unique post-collision moment of opportunity for the manufacturer. Not only can connected technologies allow a manufacturer to offer support in the difficult moments following an accident, but they can help simplify a customer’s next steps—from initiating a claims process with their insurer to helping navigate the path to repair.

The technology exists for OEMs to extend a branded, individualized approach to the repair experience and help their drivers locate nearby repair shop options, which could include certified repair facilities.

Selecting a repair facility is a simple decision with major impact since when it comes to ADAS, high customer expectations cannot be ignored. When features are impacted after a small collision, 81% are likely to bring their vehicle in for repairs, and proceed with those repairs even if it results in higher costs.

Quality and reliability are high on the list with nearly three-quarters of drivers expecting ADAS to work just as well as it did pre-collision.

Repair complexity is also having an impact on connected diagnostic scanning. According to Statista, the average vehicle generates more than 100 million lines of code. Since 2017, CCC has seen a 900% increase in repair facilities’

use of diagnostics scans. This technology—and the ability to access OEM repair methods easily in the cloud—is becoming critical to help simplify scans and help technicians properly analyze and assess ADAS repairs.

ADAS is impacting decision making for both OEMs and their customers. It’s changing experiences both on the road and within the vehicles themselves. It’s amplifying the need for precise data analysis and clear communication.

There is much to be gained as OEMs continue to learn the broad impact of ADAS and the opportunities surrounding it. The time is now to develop more positive experiences and meaningful engagement, helping contribute to increased lifetime value and brand loyalty.

Insights and analysis on the impact of ADAS within the industry can be found in CCC’s 2021 Crash Course Midyear Report at cccis. com/crash-course-2021.

Source: CCC

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Sticker Shock: Owning a New Vehicle Costs Nearly $10,000 Annually

by Ellen Edmonds, AAA

According to the latest research from AAA, the average annual cost of new vehicle ownership is $9,666, or $805.50 per month. The biggest factor pushing the nearly $10,000 annual price tag is depreciation. It accounts for 40% of all ownership expenses outpacing additional costs like fuel and maintenance.

With low inventory at dealerships due to the semi-conductor chip shortage, AAA urges new car buyers to be aware of all the expenses associated with ownership so they can negotiate the best deal for their budget.

“Consumers have to remember the expense of owning a car goes far beyond the monthly payment,” said Greg Brannon, AAA’s director of automotive engineering and industry relations. “Plus, we are seeing costs increase for a number of products recently, and cars are no exception. This trend will likely continue as new vehicles come equipped with the latest technology, which naturally drives up the sticker price.”

The 2021 AAA Your Driving Cost study reviewed nine categories of vehicles—consisting of 45 models—to determine the average annual operating and ownership costs of each. AAA selects top-selling, midpriced models and compares them across six expense categories: fuel, maintenance/repair/tire costs, insurance, license/registration/taxes, depreciation and finance charges.

Depreciation—a measure of how quickly a car loses value—remains the single biggest cost (40%) of new vehicle ownership. Other key findings of this year’s Your Driving Costs include:

Fuel Costs: on average, fuel costs 10.72 cents per mile. This is based on data from May 2020–May 2021, which does not include recent spikes in gas prices. Fuel costs vary widely by vehicle type, ranging from a low of 3.66 cents per mile for electric vehicles, to 15.81 cents per mile for pickup trucks.

Maintenance, repair and tire costs: on average, maintenance and repair costs 9.55 cents per mile. Just

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like fuel, electric vehicles are on the lower end of the spectrum, costing 7.70 cents per mile, while medium sedans are the most expensive at 10.43 cents per mile.

Finance charges: the cost of vehicle loans decreased due to a drop in the prime lending rate. The average interest rate in 2021 is 4.12%, which is 1.056 percentage points lower than last year. As part of the Your Driving Costs study, AAA tracks changes in buying patterns and makes changes to the type of vehicle categories considered to match those trends. For several years now, buyers have moved away from previously popular categories like sedans to newer styles like compact SUVs. For 2021, AAA added two new categories: subcompact SUVs and midsize pickup trucks.

These replaced large sedans and minivans, both of which no longer offer enough new models to be tracked.

The average price of a new vehicle for 2021 is $32,903, which is $1,502 (4.78%) higher than last year, but is mostly due to the addition of new models to the Your Driving Costs study. Models in the small sedan, medium sedan, medium SUV and hybrid categories averaged an increase in vehicle price of $3,064, led by hybrids as consumers opt for larger (hence more expensive) models in this category.

Pickup trucks saw an increase of $4,684 (an average of 11%); however, this has not affected their popularity, as they remain the best-selling category of those included in the study.

Buying a car is the second biggest purchase behind a home most people will make in their lifetime. The car buying process can be seen as difficult, time-consuming and stressful.

With strains on inventory this year, it is critical for consumers to do as much research as possible before beginning the buying process. Understanding all of the options available as well as individual needs can ease some of the anxiety associated with purchasing a car.

AAA offers the following guidance when it comes to shopping for your next vehicle:

Before considering any specific makes or models, consumers should determine what makes sense for their budget including trade-in value and down payment amount.

Another important consideration is whether to finance or lease. For someone who is an early adopter of new technology, likes to change cars often or doesn’t put a lot of annual miles on a vehicle, leasing may make more sense. Consumers should evaluate both options and pick the one that will best suit long-term needs.

Manufacturers and dealerships sometimes offer extended loan terms as an incentive to buyers. In some cases, these loans can be as long as 84 months with interest as low as zero.

Initially, a loan like this may be attractive to a buyer since it helps lower the monthly payment. However, consumers should know that with long-term loans comes a period of time when the vehicle will hold less value than what is owed due to depreciation.

Look at pricing options for both new and slightly used vehicles. New vehicles typically come with longer warranties, buying incentives from the automaker, the latest features and are widely available. When it comes to used vehicles, there are two types to choose from: certified pre-owned and used. The advantage of a certified preowned vehicle is the original owner has absorbed the majority of the depreciation cost, while the vehicle still has quite a few of the latest features and a manufacturer’s warranty.

Consumers should test drive the exact model of the car they want to purchase. If possible, they should pick a route that mirrors their daily driving routine. It is a good idea to test the car’s ride quality and handling on a number of different road surfaces: city streets, hills, freeways and winding roads.

The most important thing to remember is in most cases, there are three separate negotiations that occur when purchasing a car: the price of the new vehicle, trade-in value and finance rate if applicable. Consumer should take their time and negotiate them individually. Consumers can calculate their annual driving cost through AAA’s digital brochure on Newsroom.AAA.com. AAA offers a number of resources consumers can use while car shopping including the AAA Car Guide and AAA’s car buying program.

Source: AAA

autobodynews.com / OCTOBER 2021 AUTOBODY NEWS 27

Alternative Power Vehicles Estimated to Account for 45% of U.S. Light Vehicle Sales by 2035

by Ashley Reyes, SEMA

Sales of alternative powered vehicles, while currently representing just 5% of all U.S. light-vehicle sales today, are expected to reach 45% by 2035, according to new SEMA Market Research.

Eighteen of the top 20 global automakers, which together represent around 90% of new car registrations worldwide in 2020, plan to widen their portfolio of alternative-power models and scale up their production of electric vehicles. However, three quarters of Americans still prefer gas or diesel and have concerns about charging infrastructure, driving range and price.

Also, alternative-power vehicles remain a niche market for the specialty-equipment industry, accounting for just 1% of specialty-equipment retail sales in 2020.

Filled with an in-depth outlook on the landscape of alternative power and electrification in the U.S., the “Emerging Trends: Electrification, Alternative Power

and Advanced Technology” report helps companies understand potential implications for the specialty-equipment industry and how advanced technologies are becoming part of the new vehicle ecosystem. Key findings from the report include: There are currently 4.1 million alternative-power vehicles on U.S. roads today. This represents 1% of light vehicles in operation.

While sales are starting to grow, significant hurdles remain, around range, charging and electrical power generation, in the shift towards more electrified vehicles.

As sales of electric and other alternative energy vehicles increase in coming years, it will take a while for current vehicles to cycle out of operation. The average age of a vehicle today is just over 12 years.

Alternative power currently represents a very small share of the specialty-aftermarket sales but will be more important as their presence grows. In 2020, alterna-

GM Extends Chevy Bolt EV/EUV Plant Shutdown Amid Recall

by Steven Loveday, Inside EVs

As was recently reported, General Motors decided to idle its Orion (MI) Assembly plant while it moves forward with the massive Chevy Bolt EV and Bolt EUV recall.

GM is recalling every Bolt ever built due to a handful of fires. Now, the automaker has confirmed the factory will remain idle until at least Sept. 24.

According to a report

by Autoblog, GM is working alongside battery supplier LG Chem to figure out exactly how to progress with the recall. Until some decisions are made, the plant will not continue producing the electric hatchback or crossover.

GM has made it clear it has no intention to produce new Bolt EVs or EUVs―nor will it replace current vehicles―prior to having the utmost confidence the newly updated battery packs are safe.

Of course, GM is looking

to LG Chem to provide the necessary information to allow production to continue. The battery maker is expected to prove without a doubt the updated packs are defect-free and not prone to fire risk.

Thus far, the situation with the Bolt has cost GM nearly $1 billion, and it will likely cost a whole lot more as everything progresses. Autoblog writes due to “GM’s lack of confidence in its supplier, it seems unlikely that the work stoppage will extend only through the end of September.”

This all makes perfect sense since GM has been dealing with this for some time, and a previous fix didn’t work. If the automaker goes to great lengths to replace the battery packs in every car, and more fires occur thereafter, it could prove to be a devastating blow.

This is a developing story.

We’ll update this article or provide another once more information becomes available.

28 OCTOBER 2021 AUTOBODY NEWS / autobodynews.com

1Collision Names Director of Location Development

tive power accounted for only 1% of specialty-equipment retail sales at $0.42 billion.

Automakers continue to integrate vehicles with advanced technology to increase safety and comfort on the road. This opens potential growth opportunities for the aftermarket industry in older vehicles.

While 58% of drivers want more safety features, 86% say they are afraid of fully autonomous vehicles. They cite safety and liability as their biggest concerns.

To learn more about SEMA’s outlook on electric vehicles and emerging trends and technology, download the new SEMA “Emerging Trends: Electrification, Alternative Power and Advanced Technology” report at www.sema.org/ research.

Source: SEMA

1Collision proudly announced John Hollingsworth as director of location development.

Hollingsworth will be responsible for the continued growth and development of 1Collision expansion of independent single and multiple location collision repair centers throughout the U.S. Prior to joining 1Collision, Hollingsworth spent more than seven years in a collision industry training organization working with teams on their culture and leadership.

“I’m excited to be back in a different capacity but one that still allows me to use my gifts,” Hollingsworth said.

“Having conducted a national search for the right individual to lead the business development charge, we are delighted John has joined our team,” said 1Collision President and COO Jim Keller.

Source: 1Collision

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Ford Names Doug Field Chief Advanced Technology, Embedded Systems Officer Ford Motor Company named Doug Field as the company’s chief advanced technology and embedded systems officer as it continues to advance its Ford+ growth plan.

Field joins Ford from Apple, where he served as VP, special projects. Before that, he was senior vice president, engineering, at Tesla.

His appointment to Ford was effective Sept. 7, and he reports to Ford President and CEO Jim Farley.

“Doug is one of the world’s most respected engineering and product design leaders and has been a driving force behind breakthrough products across auto, tech and mobility, including at Apple, Tesla and Segway,” Farley said. “His talent and commitment to innovation that improves customers’ lives will be invaluable as we build out our Ford+ plan to deliver awesome products, always-on customer relationships and ever-improving user experiences. We are thrilled Doug chose to join Ford and help write the next amazing chapter of this great company.”

Field will lead Ford’s embedded software and hardware organization currently consisting of vehicle con-

trols, enterprise connectivity, features, integration & validation, architecture & platform, driver assistance technology and digital engineering tools. This includes: ▪ Leading design, development and implementation of the Blue Oval Intelligence tech stack for Ford, Lincoln and Ford Pro products to create intuitive, always-on experiences for customers ▪ Delivering customer-facing attributes, technologies and features, such as infotainment, navigation, driver-assist technology, connected services and vehicle cybersecurity ▪ Developing scalable technology platforms that can be deployed across Ford global products ▪ Leading and managing relationships with key technology partners and the digital developer ecosystem ▪ Leading Ford Power-Up over-theair updates to delight customers, improve quality and reduce costs “I’m thrilled to be joining Ford as it embraces a transition to a new, complex and fascinating period in the auto industry,” Field said. “It will be a privilege to help Ford deliver a new gener-

SIERRACHEVROLET

ation of experiences built on the shift to electrification, software and digital experiences, and autonomy. I’m committed to helping the team make those experiences seamless, delightful and continually advancing over time.”

Field will partner closely with Hau Thai-Tang, Ford’s chief product platform and operations officer, to create the next generation of Ford’s connected products and experiences.

Thai-Tang will continue to oversee product development, purchasing, design, research & advanced engineering, EPLM/D-Ford, advanced manufacturing and Ford Ion Park.

“Doug’s track record of innovation and expertise with embedded systems will help Ford accelerate the development and implementation of our Blue Oval Intelligence tech stack,” Thai-Tang said. “I’m excited to partner with and learn from Doug as we bring our Ford+ plan to life.”

For Field, this marks a return to Ford, where he began his career as a development engineer from 1987 to 1993.

“I’ve always felt a deep connection to Ford. Ford products have been in my life as long as I can remember―F-150s on my dad’s farm,

SIERRASUBARU

a ’65 Continental picking us up at my wedding and my thrill when I discovered the brilliant elegance in the design of the Model T,” Field said. “I’m grateful for the opportunity to help the team build the next generation of iconic Ford vehicles and prepare Ford for the next hundred years.”

Field said his learnings and approach―developed over decades of product development across auto, mobility and tech sectors―will inform his work at Ford.

“There is a set of common principles that unite companies building world-changing products,” he said.

“A fundamentals approach to engineering, grounded in physics. A relentless pursuit of excellence in everything they do. An integrated way of thinking about all the disciplines that come together when developing new products. And a sensitivity to design, and why customers fall in love with products and brands.

“I am lucky enough to have worked in teams and companies that embody these principles, and I know they will be a part of building great products and experiences at Ford.”

Source: Ford Motor Co.

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autobodynews.com / OCTOBER 2021 AUTOBODY NEWS 31

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.

Honda Increasing Crash Parts Production, Transitioning Certified Auto Body Shops Over Time

Shop Showcase

Collision repair shops reporting dif- trying to get the common sheet metal ed to collision repairs. The vehicle, ficulties in getting replacement parts items out to shops on a timely basis. for example, has extended range this year may be glad to hear Hon- We are checking our back orders and blind spot information sensors on with Ed Attanasio seeing which [other parts] we can some trim packages. da is ramping up parts production.

“The original radar saw, I be “As we all know, back orders are ramp up production on.” really hitting the industry hard, regardless of the manufacturer,” Dane Rounkles, manager of wholesale collision parts for American Honda, said during with a GuildEd 21 webinar Attanasio in late summer. “So we went to senior management, and anything we stamp here in the U.S., we’ve asked for them to increase production to make the parts available.

“Now, some of you may still have some back orders on sheet metwith Ed Attanasio al, and that may be something we stamp in another country,” Rounkles Collision repairers need to be aware the replacement procedure for the laser-brazed roof panel on continued. “But we have increased the 2022 Honda Civic requires a combination of welding, adhesive and mechanical fasteners greatly the availability of sheet metal parts, and we will continue to do so. The automaker also used the lieve, 3 or 4 meters,” said Scott Right now, I don’t have Ed the quantities with Attanasio webinar to highlight some informa- Kaboos, collision technical specialthat we want of every part, but we are tion about the new 2022 Civic relat- ist for Honda. “This one can see 75

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SEMA Show Goes On

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meters. So it’s much more intense of a radar.”

The system no longer requires a specific aiming inspection procedure, but instead is capable of self-learning while the vehicle is driven more than 18 mph. Those test driving the vehicle should be aware that until the self-learning is complete, the reset system is limited to 9.8 feet of detection.

There are also new limits on what repairs can be made to the areas on the rear bumper through which the radar system operates. Honda provides a printable template technicians can tape onto the bumper to determine where the radar wave area is.

“If within that area, there is a crack, a dent, a gouge, anything like that, it cannot be repaired,” Kaboos said. “As a matter of fact, they tell us we cannot even use touch-up

Apple Car Production Gets Potential 2024 Target Amid Talks with Toyota: Report

Shop Strategies

of its preparations for the developwith Stacey Phillips

by Maria Merano, Teslarati

ment and eventual production of its Apple is reportedly looking to Asia all-electric vehicle. One of the main as it lays some groundwork for the focuses of the visits is rumored to be the battery supply chain for the Apple Car.

The tech giant reportedly plans Apple Car. In August, Apple was rumored to visit Toyota to discuss the Apple to be talking to multiple EV comCar’s mass production, expected to with Stacey Phillips start by 2024. ponent manufacturers in Korea.

Toyota isn’t the first legacy The California-based company automaker Apple has approached reportedly talked with Korean batsince talk of the Apple Car re- tery manufacturers LG Chem and emerged in recent months. Earlier SK Innovation. While in Korea, this year, reports emerged that Ap- Apple also talked with Hanwha, a ple was taking preliminary steps company that offers its expertise in withbyStacey Phillips petrochemical technology and adin its EV project talking with South Korean carmaker Hyundai. vanced materials.

Apple seems open to partner- Hanwha also promises to proing with traditional OEMs on its vide innovative and sustainable EV project. However, the com- solutions to its customers, hintpany also appears to be exploring ing at Apple’s direction with its other manufacturing options for EV’s supply chain. Apple seems the Apple Car. For instance, Apple hyper-aware of the type of elecwith Stacey Phillips reportedly considered partnering tric vehicle people want, down to with Magna International, a Can- its tiniest components. The fact ada-based company that offers EV Hanwha was considered an option for the Apple Car’s supply chain manufacturing services.

According to DigiTimes, Ap- means the tech company knows ple’s current efforts to visit Asian the significance of sustainability to carmakers and suppliers are part customers today.

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with Victoria Antonelli

32 OCTOBER 2021 AUTOBODY NEWS / autobodynews.com 59725_COL21_8thV_AB .indd 1

1/7/21 3:46 P

paint in that area or it can mess with the radar. If it has some fine scratches, you can polish, but you need to polish that entire area evenly. The thickness of the paint affects the radar quite a bit.”

He said that also means no blending of primer or color can be done in that area.

“It is a challenge if you have damage near that area, I’m not going to lie to you,” Kaboos said. “There’s going to be more bumpers replaced than in the past generation of Civic.”

Another change to the 2022 Honda Civic collision repairers need to be aware of is the resin composite front bulkhead, replacing mild steel one on the previous Civic model.

The automaker says the design improves access to the engine compartment for assembly and service but also that it should be checked for cracks following a collision.

“It can look fine, but when you wet it down, all of a sudden a crack can become apparent,” Rounkles said. “So you really need to pay attention to that. While the vehicle may not have gotten hit hard enough to hit into the rails, these [composite

parts] can crack and not be overly visible.”

Kaboos concurred.

“I know just spraying a little wax and grease remover on it to add a little gloss does make those cracks show up a lot better,” he said.

Kaboos said the 2022 Civic is now the third Honda model with a laser-brazed roof panel that requires a combination of welding, adhesive and mechanical fasteners for replacement. Shops need to be aware they must order a number of brackets and bolts in addition to the replacement roof panel.

Kaboos and Rounkles said they sought to have the parts bundled as a kit with the roof panel, but think because the parts come from different vendors, creating a kit wasn’t feasible for the automaker.

Honda also doesn’t supply much information about the foam dam that must be used in replacing the roof― to ensure the adhesive, a specified 3M product, doesn’t flow out of the joint while it cures―but Kaboos found a Kent product that works.

“If you skip that part of the step, there’s a good chance you’re not go-

ing to have enough adhesive left in that joint when you’re done,” Kaboos cautioned.

The 2022 Civic also has a hem flange on the rear side outer panel the 2021 model did not.

“Honda has a special tool to install these available in our Honda tool rental program,” Kaboos said.

“Or you can buy it, but I’ll be absolutely honest: It is ridiculously expensive. It was designed in Japan, and by the time it got through the build process, they had put such tight tolerances on it, that it is extremely expensive. We are working on that. But probably your best solution is to go through the tool rental program and just rent it from us.”

Rounkles also provided more information about the automaker’s auto body shop certification program, which will begin transitioning certified shops from ProFirst to the new Honda and Acura Certified Collision program on their next renewal date. He said the company hasn’t ruled out certifying additional shops in some markets.

“We are currently technically full in terms of the number [of

shops] we wanted to have in our certification program,” Rounkles said.

“But we will add shops as needed based on geographical and units-in-operation conditions. We do not have a specific radius of how close a [certified] shop can be to another one. We’re going to try not to put one right across the street from another, but I can tell you that I have actually seen four certified shops in a two-block area. But that’s because in the metro area, that’s where they put all the body shops. So we will have situations like that.”

He said Honda maintains a waiting list for shops interested in joining the program.

“As units-in-operation change, or shops decide to no longer be certified, we will reach out to the shops that we have on our list first before we go seeking other shops,” Rounkles said.

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autobodynews.com / OCTOBER 2021 AUTOBODY NEWS 33

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.

From the Desk of Mike Anderson: Researching OEM Procedures for the Paint Shop One of the things I think our collision repair industry has been making small strides in is researching OEM repair procedures. I don’t think we’re where we need to be on that yet―every repair on every vehicle every time―but we’re making small strides.

But one thing I think even fewer people are thinking about and doing is researching OEM repair procedures from a refinish perspective.

mend baking the Volt vehicle for more than 60 minutes at 160 degrees. Damage to the high voltage battery may occur.”

“During refinishing operations, the paint booth temperature must be set at or below 140 degrees with a bake time of 45 minutes or less,” Ford states about its 2017 Fusion hybrid.

Hyundai’s time limits are even more limited for curing its 2017 IONIQ hybrid: heat treatment “must not exceed 70 degrees Celsius for 30 minutes, or 80 degrees Celsius for 20 minutes.”

So it’s important as you repair electric and hybrid vehicles that you understand you need to make sure you research the procedures Audi says the lithium-ion battery in its 2017 Q5 Quattro from a refinish perspective hybrid can be damaged when the temperature goes above to understand the curing 158 degrees limitations.

One example: This will hope- Another example: key fobs. If fully not come as news to repairers you read a lot of the owners’ manuin markets with significant numbers als or OEM repair procedures, they of hybrid and electric vehicles, but will say not to leave a key fob in a automakers generally have very de- spray booth because if you have the fined limits on the curing times and heat cranked up too much, it can temperatures for electric vehicles. damage the key fob.

As with so many things, these limits Some other refinish-related recan vary not just by automaker, but search you should be doing: even among different models from the same automaker.

▪ Cure time limitation for adhesives.

Audi, for example, indicates As with paint curing, there are often the lithium-ion battery in its 2017 Q5 Quattro hybrid is functional only up to 131 degrees, and can be damaged when the temperature goes above 158 degrees.

“In order to not exceed 158 degrees, do not leave an Audi high voltGeneral Motors does not recommend baking the Volt age vehicle longer than 60 vehicle for more than 60 minutes at 160 degrees minutes in the paint drying cabin,” the automaker’s documen- strict parameters that need to be foltation states. lowed.

Acura states when drying a 2016 RLX AWD hybrid in a heated ▪ Limited-use toners. With OEMs paint booth, “make sure the tempera- introducing more and more unique ture does not exceed 149 degrees.” colors, shops are more likely to have In documentation for the 2017 a need for a limited-use toner, one Chevrolet Volt, it’s clearly stated, they don’t keep in stock because it “General Motors does not recom- is used infrequently. If you don’t do 34 OCTOBER 2021 AUTOBODY NEWS / autobodynews.com

the research early in the process to determine if there is a need for such a toner, you’re likely to run into delays in production.

clearcoat blending in any warranty or collision repair.”

▪ Paint precautions around sensors.

Honda’s 2022 Civic has areas on both ends of the repair bumper where variations in paint thickness can significantly impact the performance of the blind spot information sensors.

Honda provides a printable template technicians can tape onto the bumper to Honda’s 2022 Civic has areas on both ends of the repair bumper where variations in paint thickness can significantdetermine where the radar ly impact the performance of the blind spot information wave area is. That means sensors no blending of primer or ▪ Clearcoat blending. Visit www. color can be done in that area.

OEM1Stop.com to download the clearcoat blending statements issued All this makes it pretty clear: We by many automakers. Ford’s state- need to be researching OEM proment, for example, says the auto- cedures from a refinish perspective, maker “does not approve the proce- not just from a body or mechanical dure of clearcoat blending or using perspective.

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autobodynews.com / OCTOBER 2021 AUTOBODY NEWS 35 9/1/21 11:47 AM

3M™ Performance Spray Gun is ‘Go-To’ Gun at Santa Margarita Auto Body

by Stacey Phillips

Nearly eight months ago, Mitch Barrett was researching spray guns as the head painter at Santa Margarita Auto Body in California. He learned about the 3M™ Performance Spray Gun from Stan Ehresmann, a regional business manager at 3M.

“He encouraged me to try it and wanted to know what I thought,” said Barrett. “I’ve used it every day since then.”

In addition to being cost-effective, Barrett said ease of use and dependability are of the utmost importance when choosing a spray gun, and the 3M gun meets both those requirements.

Mitch Barrett, the head painter at Santa Margarita Auto Body, used the 3M™ Performance Spray Gun to paint this 1958 Chevrolet Apache

“This gun is great,” said Barrett.

“You can feel comfortable while using it and you don’t feel like anything is going to go wrong. It’s my ‘go to’ gun.”

Barrett estimates he has probably spent thousands on spray guns over the last decade. Many of them have been complicated to set up and use.

With the 3M™ Performance Spray Gun’s simple design, he believes someone with less experience can use the gun and deliver a consistent and professional paint job.

Since using the gun, Barrett has found it is extremely versatile. With a change of the replaceable atomization heads, he can spray a full range of coatings, including primer, sealer, basecoats, topcoats and clearcoats.

Because the paint doesn’t pass through the body of the spray gun, cleanup is quicker and easier than a traditional spray gun.

“I’ve painted everything from a 1990 Honda Civic to a brand new Bentley,” he said.

With multiple jobs taking place simultaneously at the collision repair facility, Barrett said it can get

overwhelming at times.

“I may have six bumpers for six different cars in six different colors.

Having a gun like the 3M™ Performance Spray Gun allows you to pop on every different color really quickly,” he said. “This makes the process go a lot faster, with a shorter amount of time spent in the booth.”

Established in 2006, Santa Margarita Auto Body has a total of seven employees. Mitch and his brother, Tyler, work at the shop, owned by their father, Dennis.

With its versatile design, the 3M™ Performance Spray Gun can be easily converted to spray from either a gravity cup or pressurized source for bulk spraying applications like RVs and fleet vehicles.

The guns are made from an advanced impact-resistant, stainless steel-reinforced composite material to reduce its weight by up to 50% compared to conventional metal spray guns.

“That’s important because any time you are working with plastic and air, it can tend to generate some static,” said Rob Blue, collision customer specialist, 3M Automotive Aftermarket Division. “The 3M™ Performance Spray Gun is all about precision.”

He said the 3M™ Performance Spray Guns are easy to clean, and the company is receiving good feedback on transfer efficiency and coverage.

“The transfer efficiency of most metal guns is in the range of 65 to 72%,” said Rob. “Third-party testing showed a high 78% transfer efficiency while spraying automotive base coat, exceeding the other leading metal spray guns tested.”

He said this can equate to potential savings for shops on their coatings.

Prior to the guns being released in 2020, a series of field tests were held with auto body shops across the country.

“A lot of the painters in the industry like the lightweight 13.3-ounce gun because they are painting all day long,” said Brandon Russell, collision customer specialist, 3M Automotive Aftermarket Division. “They also love how easy the cleanup is.”

The spray gun weighs 8.4 oz with gravity nozzles and 13.3 oz with

36 OCTOBER 2021 AUTOBODY NEWS / autobodynews.com

pressure nozzles to enhance comfort without sacrificing performance or durability, according to Russell.

ing the atomizing head and wiping the needle clean.

“The 3M™ Performance Spray

“Innovative quick-change replaceable nozzle technology means cleanup can be as simple as a twist and a wipe,” he said. “Every time a painter puts on a fresh nozzle, it’s like getting a brand new spray gun.”

With quick-change replaceable 3M™ Performance Gravity HVLP Atomizing Heads, cleanup involves twisting the locking collar, remov-

Gun is so much different than the other guns I’ve used,” said Barrett.

“It’s lighter, feels good in your hands and you just know that you are going to come out of the paint booth with a job well done.”

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Behind-the-Scenes DCR Systems Tour Sponsored by AirPro Diagnostics, AkzoNobel & Car-O-Liner® from multiple organizations, including vendors and representatives Members of the collision indus- from GM as well as other auto body try recently had an opportunity to shops. tour the DCR Systems location in “They were extremely imMentor, OH, prior to the July Col- pressed with the operation and took lision Industry Conference (CIC) in notes,” he said. “It was great workCleveland. ing with the other sponsors to put Founded in 2004 and owned this together.”

by CEO Michael Giarrizzo, DCR “As a long-term partner with Systems is known for its progres- Michael Giarrizzo and DCR Syssive thinking and operating in a pro- tems, AkzoNobel thought that while the industry was meeting in cess-centered environment.

The company helps dealerships Cleveland for CIC it would be a outsource their auto body shops by rare opportunity to showcase what having DCR team members run dai- Michael and his team have accomly operations while being co-brand- plished,” said Nada Jokic, business ed with the auto dealer. Currently, consulting services manager for the DCR Systems operates nine produc- West Region at AkzoNobel. “The tion cells in seven dealer-based col- feedback was extremely positive as lision repair facilities in four states: many had heard of DCR but few had Ohio, New York, North Carolina and actually seen the systems and faciliMassachusetts. ty in person.”

The tour was sponsored by Air- Tim Ronak, senior services Pro Diagnostics, AkzoNobel and consultant for AkzoNobel, said the Car-O-Liner® and included trans- ability to share information about DCR Systems and the processes that support proper repairs aligns with AkzoNobel’s desire to educate the industry.

“Process-centered environments are the key to optimizing throughput efficiency while ensuring an OEM repair methodology is central to repair decisions,” Pictured, left to right, are Doug Bortz, Car-O-Liner, North said Ronak. “Michael GiAmerica; Michael Quinn, AirPro Diagnostics; Pam and Miarrizzo has created a rechael Giarrizzo, DCR Systems; and Nada Jokic, AkzoNobel peatable and documentable portation, dinner and a behind-the- process to support OEM procedure scenes look at the Mentor facility. repair methods and is successfully executing with this model daily.”

Doug Bortz, sales manager of Sponsors Showcase DCR Systems Car-O-Liner, North America, said Mentor, OH, Facility “One of our core principles at Air- the company welcomed the opporPro Diagnostics is education and in- tunity to sponsor the event, which cludes educating the repair commu- was overwhelmingly attended. nity on safe repairs and processes,” “DCR Systems and Car-O-Linsaid Michael Quinn, president of er have a long-standing relationship AirPro Diagnostics. “Knowing Mi- based on one synonymous philosochael Giarrizzo and his family for phy―to create efficiencies that conover 20 years, I’ve watched DCR tribute to healthier work environSystems evolve into what it is to- ments and better customer service,” day―a process-oriented operation. said Bortz. “There is a continued We couldn’t miss the opportunity desire for industry notables to parto share their highly-disciplined ap- ticipate, learn and share insights to proach with the industry at large in elevate industry processes and ulattendance at CIC.” timately serve all collision repair Quinn said the event was very shops and customers at the highest successful and included leadership level.”

by Stacey Phillips

38 OCTOBER 2021 AUTOBODY NEWS / autobodynews.com

ogy offers a very predictable and accelerated drying process that helps workflow run more consistently.

“We are proud of our team’s vision for this industry, and it was an honor to share what we are doing with so many in the industry,” said Cheryl Boswell, CFO and managing partner of DCR Systems.

“We have an amazing team and we are passionate about what we do,” said Giarrizzo.

Many of the company’s technicians are homegrown.

“It’s really gratifying,” Giarrizzo said. “It warms Pictured, left to right, are Jeff Hendler, J.D. Hendler/ my heart when you take Associates; K. Michael Bradshaw, K&M Collision; Todd Hesford, Mission Viejo Auto Collision; Kye Yeung, European somebody who has no clue Motor Car Works; Amber Alley, Barsotti’s Body & Fender; what they could accomTony Adams, AkzoNobel; Tim Ronak, AkzoNobel; and plish and within a couple of Jordan Hendler, Admin Concepts years, he or she can reach a master level of technician and do implemented into their daily work things and create a lifestyle they environment. Attendees also viewed didn’t think was possible.” the Symach equipment used in the

Boswell said Carey Hehr, prefacility.

Giarrizzo said Symach technol- op specialist at Classic Accident DCR Systems Team Shares Process Efficiencies After gathering for an Italian dinner, DCR Systems representatives took various groups through the facility highlighting the many process efficiencies they’ve developed and

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Repair Center, is one example of an employee who has developed into a skilled writer and production enthusiast.

Hehr joined DCR Systems eight years ago as a customer service representative (CSR).

“I enjoyed helping customers and making sure they understood their rights when getting their cars fixed,” Hehr said.

After assisting the company’s dealer partner and addressing warranty claims and small jobs, she realized she enjoyed writing and wanted to learn more.

“With this amazing company they gave me every opportunity to grow and learn,” said Hehr. “I now have been writing for three years and enjoy every day.”

During the tour, Mandy Wynn, national training and support manager, and Arynne Giarrizzo, central claims specialist, shared information about DCR Systems’ production process.

“The patented production process at DCR Systems is unique in that it streamlines all of the variables associated with collision re-

pair by eliminating waste, rework and stress, leading to increased profitability,” said Wynn.

“It also empowers the team and allows everyone to continuously and creatively improve processes throughout,” added Arynne.

Wynn first described the pre-op phase of the process. Here, all the variables related to the repair are thoroughly researched, investigated and discussed, so a one-time parts

Arynne said the production line is able to move continuously because it tells employees where they need to work.

“The team recognizes where there may be a potential bottleneck in the production line and our team adjusts where they need to work,” she said.

Wynn and Arynne also explained how the process differs from other collision repair facilities. One big difference, according to Wynn, is the strict structure and validations the company has in place during every step in the process.

“Despite the random working environment, we have the same process that all cars go through to achieve consistent quality and performance on every single vehicle. This Pictured, left to right, are Roy Schnepper, Butler’s Collision; allows us to not only produce Dan Risley, CCC Intelligent Solutions; Ray Fisher, Automoconsistent quality but also an tive Service Association; and Jim Keller, 1Collision OEM-guided safe repair,” order can be placed before vehicles she said. “How we ultimately benefit are put in the production line. is in what our customers say about us “Pre-op is vital to ensure con- and our passion to fix vehicles.” tinuous flow in our production line,” Arynne described how the prosaid Wynn. cess enables the team to crosstrain.

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“This allows us to use resources where the work is needed,” she said.

“We train team members and educate them on OEM manufacturers’ guidelines to ensure their greatest potential.”

Andy Warren, store support specialist, explained the virtual huddle to tour attendees.

“The virtual huddle is the last step prior to the repair plan being finalized,” said Warren. “It is basically an estimate review but done virtually.”

Using FaceTime, virtual huddles are used every day throughout the company. The repair planner goes over the repair plan that shows the damages to the vehicle. Then, it is scrubbed for any items that may have been overlooked and verified all repairs are being done per OEM guidelines.

“Performing the virtual huddle on each job is important for us because having that extra set of eyes glance over each repair plan is so crucial in our world,” said Warren.

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something on the front end, then we can keep our process flowing and not lose valuable days on the back end.”

He said it has also helped DCR Systems by having someone verifying all stores are performing OEM procedures.

Another highlight was learning about the DCR Claims Portal, developed by Warren and Harley Wegman, repair plan specialist.

Dave Martin, operations director, said the DCR Claims Portal is a revolutionary interface that allows for a complete claims settlement package and has myriad benefits for all facets of the repair industry.

This includes a shop looking to make sure they have assembled all the documentation needed for a repair and adhering to OE certification programs, an insurance company looking to settle a claim for a policyholder or a subrogation claim, and a customer searching for a better understanding of what will be done to their vehicle.

“The application dynamically aligns the work to be done with the corresponding evidence in a single

view,” said Martin. “It is the most simple and intuitive way to present the information for a repair and eliminates the countless hours spent trying to decipher buckets of documents and photos to specific repair operations by aligning all of that for the user.”

He said the assembly of the portal is a great self-check on the completeness of the repair plan.

“It helps ensure that your team has pulled together all of the necessary information to restore the vehicle per OE specifications once up-front rather than multiple times when requested by insurers throughout the repair process,” he said.

“This results in an impressive time savings overall.”

The development of the portal was born from the idea of continuous improvement. DCR Systems had a virtual portal prior to this version, but Martin said it did not meet the company’s needs to streamline its process.

“The portal is a prime example of the persistence and ingenuity of our team to come up with better ways of doing things, even when

something doesn’t appear ‘broken’ in the first place,” he said. “It demonstrates what team members can accomplish when leadership encourages them to run with some of their ideas.”

Most of DCR Systems’ processes have been created by team members. Arynne said working in a team-based environment empowers everyone to make continuous improvements.

“We have a team of people who are game changers in our industry and we have a passion in what we do in collision repair,” said Wynn.

“It’s a passion that’s contagious, especially when you have leaders such as Michael Giarrizzo and Cheryl Boswell.”

Wynn said it’s not just about fixing a vehicle to collect a check at the end of the job.

“We want to put safe vehicles back in customers’ hands, vehicles that we would trust to put our family and friends in and know that we have repaired them the way the manufacturer of that vehicle would have wanted it done,” she said.

ASE Awards Busch Memorial Scholarships The ASE Education Foundation announced the recipients of the Michael Busch Memorial Scholarships for the 2021-22 school year.

The two honorees, Brendan Arthur of Huntington Valley, PA, and Najah Brown of Philadelphia, PA, were each awarded Busch Scholarships in recognition of their outstanding academic achievement. The Michael Busch Memorial Scholarship fund was created in memory of the son of a former collision shop owner and ASE board member, Jim Busch, who operated a shop in Issaquah, WA, until his retirement. His son, Michael, was an automotive technology student who tragically lost his battle with cancer. Each year, two scholarships are awarded in Michael Busch’s name. Qualified applicants should be a graduating high school senior or have graduated from high school or received a GED certificate, and be enrolled or planning to enroll in a two- or four-year-college or an ASE-accredited program.

Source: ASE Education Foundation

Despite Continued Inventory Troubles, U.S. Auto Dealer Sentiment Remains Positive, Spurred by Record-High Profits As tight vehicle inventory continues to vex the auto industry, U.S. dealer sentiment in the third quarter softened but remains mostly positive and above levels recorded in Q3 2020 and Q3 2019.

The current market index reading of 62 in the most recent Cox Automotive Dealer Sentiment Index (CADSI) indicates more dealers feel the automotive market is strong compared to the number who feel the market is weak.

The key drivers of sentiment saw varying shifts in Q3. The three-month market outlook index saw a three-point decrease from the prior quarter, meaning the outlook is waning, although, at 60, more dealers still see the future market as strong than see it as weak.

The profits index saw a slight improvement compared to the prior quarter, hitting a record of 60. At the same time, the price pressure index increased modestly from Q2’s record low—slightly more dealers are now feeling pressure to lower prices, although that group is still in the minority.

“Dealer sentiment has moderated from a record high in the spring,” said Cox Automotive Chief Economist Jonathan Smoke. “Dealers are still optimistic about the coming months, but the new-vehicle inventory situation is not improving, and sales are suffering.”

Consistent with current market trends, the new-vehicle inventory index was unchanged from last quarter’s record low of 13 and down by a notable 16 points compared to Q3 2020. Not only is inventory tight, but the mix is poor as well and getting worse. The new-vehicle inventory mix index fell to a historically low reading of 18 in Q3.

While new-vehicle inventory remains challenged, there are signs used-vehicle inventories are improving. The used-vehicle inventory index saw substantial growth from Q2 to Q3, increasing by 10 points to 31. The used-inventory mix index also improved, although only modestly. Both indices remain below the threshold of 50 and are

40 OCTOBER 2021 AUTOBODY NEWS / autobodynews.com

seen by dealers as declining, not growing.

Tight inventory levels are now negatively impacting sales, according to dealer sentiment. The view of new-vehicle sales was down significantly from Q2 and compared to last year.

The new-vehicle sales index fell to 51, the second-lowest reading on record. The used-vehicle sales index fell as well, although it remains historically high at 59, the second-best reading in the index’s history and behind only the record set last quarter.

The top five factors holding back the business across all dealers were unchanged in Q3 from Q2, with Limited Inventory in the top spot with 62% of dealers citing it.

Market Conditions in the second spot rose to 37% of dealers citing it, while Business Impacts from COVID-19 was in the third spot, down from No. 2 in Q3 2020. The Economy and Expenses rounded out the top five factors holding back dealer business this quarter.

Source: Cox Automotive

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Consultant Says CA Auto Body Shops Need to Know the Laws that Affect Them

by Ed Attanasio

It all began with a poorly-painted Camaro, which led to a career as an industry consultant whose services are coveted by auto body shops primarily in California.

When things go sideways and a shop owner or manager has more questions than answers, they don’t call the Ghostbusters―they call Juan Martinez.

He learned the industry by working for top shops on primarily luxury brands in southern California over two decades. But the way he entered the collision repair industry happened literally by chance when Martinez was 12.

“My sister had a 1970 Camaro and she wanted to sell it,” Martinez said. “I told her don’t do it, I’ll figure out some way to pay for it eventually. I painted it in forest green and showed it to my father and he told me it was mine. I didn’t have to pay a dime.

“There was a mom-and-pop paint store in our town, and they helped me through the process. It cost me $500 to paint that car, and I started driving it before I was 16.

The cops would spot me and pull me over, but they never gave me a ticket. They would say, keep the vehicle parked right where it is, and then I would walk home. But they always gave it back.”

The experience led to a job at an auto body shop in San Diego, CA, as a prepper, and for the next 20 years, he worked as a painter, estimator, shop manager and regional manager.

When he realized collision repair was in his blood, Martinez dropped out of college and went all in. He landed a job as an estimator at a prestigious shop in Beverly Hills, learning from great mentors and accumulating knowledge he could call upon throughout his career.

Some years ago, Martinez started JM Business Solutions, Inc., in West Covina, CA, which helps body shops with fixed operations, business tactics, insurance relationships and customer service. Martinez trains how to write cleaner sheets, navigate through DRPs and make more money on parts and repairs, for example. He’s all about first-person,

one-on-one training, visiting 20 to 30 shops almost every week.

Q:

cerns?

As a body shop industry consultant, what are your top con-

A:

First, I would say safety and then insurance abuse are two issues that immediately come to mind.

I encounter them literally every day.

Some body shops are doing things right now that are not safe.

They just don’t know when to say “I shouldn’t take this car in.” These shops are more concerned about making money. But if you’re not a Porsche-certified shop, don’t try to work on one. Their attitude is that they’ll figure it out, but in the end it’s unsafe for the owner of the vehicle. Not to mention that it’s also a bad business decision for the shop.

In many cases, they’re not going to make money on the repair. It’s likely that they will also make mistakes, which is a liability issue. I can safely say that 80% of all the shops out there right now have at least one vehicle they should not be repairing.

It’s no sin to admit you don’t have the training or equipment to work on a certain vehicle, so find a shop that can do it and give them a referral.

I get calls all the time from shops who say we don’t know how to write an estimate on a higher-end vehicle, can you help us? Ninety-nine percent of the time they shouldn’t have taken the car in at all.

I tell them to refer it, get your teardown money and a couple days of storage, and then move on.

The insurance companies abuse body shops by operating with impunity and violating legislation that was created to protect consumers.

Most shops don’t know the law. So, they can’t usually catch things, like paint caps that are illegal. But no one addresses them, so guess who pays for it?

If you don’t have well-trained estimators, they won’t catch things and the insurance companies love it. They prey on the fact that most shops don’t know the regulations, so it’s to their advantage. I see so many poorly written estimates, it’s crazy.

To make money, they must be cutting corners, because otherwise they

42 OCTOBER 2021 AUTOBODY NEWS / autobodynews.com

would be out of business by now.

Q:

What’s your opinion about DRPs? Should shops pursue them or reject them?

A:

There’s a market for DRPs, but the problem is they’re not the same. The DRP game has changed so much in the last 10 to 15 years, and more and more shops are gravitating away from it. Unless you have other sources of revenue, DRPs aren’t profitable enough to keep the doors open.

They used to be the main source of revenue for many shops, but now they’re looking for other venues, usually from dealerships or fleet work, for example. If you are a new shop and you don’t have a book of business, a DRP might be good for the short-term, but it won’t likely be sustainable.

Every DRP contract I’ve seen within the last five years is so one-sided, I can’t understand why any shop would sign one. They take advantage of the less experienced

shops and thrive on their lack of knowledge. I’ve convinced some of my clients not to take certain DRPs on and they end up thanking me every time.

One source of revenue for shops that’s fairly new in California involves working with attorneys, who want to represent their clients in personal injury cases. They find them on Yelp and are building business relationships with shops that are getting good reviews. It has become a viable source of business for shops because these lawyers are representing injury victims and want to make sure that their cars are being repaired properly.

In southern California, everyone owns a Porsche, a Lexus, a BMW or an Audi. This means OE certifications are more important here than in many other parts of the country. Shops have to make certain their training is up-to-date and that they have the right equipment to do the job. Because if they can’t or won’t, there are 20 other qualified shops out there that can.

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Q:

What are some of the most common problems your clients have encountered while working with insurers?

A:

The Fair Claims Settlement Act (Section 2695.8) states that insurers need to pay out in a “workmanlike manner,” but they don’t do it.

When a shop writes an estimate, there are three things the insurance companies can do. First, they can adjust the claim, which means that they will write their own estimate. That means that the car has to be fixed using nationally distributed data― ALLDATA, Mitchell, for example― or the vehicle’s repair manual.

The insurance companies don’t do any of it. In fact, they write the lowest estimate possible. They make it impossible to fix the car correctly.

Then, when you request a supplement, they do it again―over and over.

There are a small handful of insurance companies that don’t do it, but the majority of them do. It ends up being a complete waste of time for the shops, not to mention for the

consumers.

The insurers would save a ton of money on rental cars without wrestling over every penny. They push cycle time through their DRPs, and then they choke them. Then they start calling the shop every day, asking when will the car be ready?

In many cases, the vehicle is sitting there because the shop is waiting on the insurance company. It makes no sense.

If they followed the legislation, then these problems would not exist. When a shop files a complaint, they will quickly discover that the California Department of Insurance (CA-DOI) employees don’t understand the legislation. Half the time, they will bail and send a letter that the dispute is over pricing and they can’t mediate.

Most of the time, we’re not asking them to mediate, but to simply look at the legislation and the evidence provided. But, they don’t. The shop thinks the complaint didn’t go anywhere because the CA-DOI is on the insurance company’s side. But that’s not the case―they just don’t know.

Steering does exist, but the insurance companies have gotten better at it. They don’t put anything on paper. When you file a DOI complaint, the DOI requests the claim file. In that claim file, the DOI won’t find any trace of steering. All steering communication takes place over the phone, using specific language to get a vehicle pulled out of a specific shop that won’t play by their rules.

The solution to that problem would be for the DOI to request phone recordings pertinent to that claim file to hold these insurers accountable. Maybe petitioning or amending legislation to keep up with the electronic data of today would be beneficial.

Q:

Do your clients often encounter issues over the constant wrestling match between aftermarkets parts vs. OE parts?

A:

The legislation states that aftermarket parts must have non-removable markings. But, most of them don’t―they use stickers.

The legislation also says the

parts have to be the same in fit, quality, safety and finish along with the non-removeable markings. The majority of these aftermarket parts aren’t the same because if they were they would be counterfeit parts.

Aftermarket parts have to be physically different, that’s the fact.

That’s why they don’t fit and why you’ll see gaps and other irregularities.

When this happens to one of my clients, I direct them to write a new estimate to re-repair the car and submit it with their final bill. It states that the shop used aftermarket parts and they don’t fit. The insurance company will then say hey―why didn’t you tell us? They wanted the cheapest parts they could find, and now they’re shocked. But they know they’re on the hook, so they have no options.

Once they see you understand the legislation, they will never try that again.

Q:

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Automotive Industry Trend Continues Towards Use of Lightweight Materials

by Stacey Phillips

Since the early 20th century, steel has been the material of choice by auto manufacturers worldwide. Almost every vehicle model has been designed using steel due to its strength, cost-effectiveness, workability and availability.

Ryan Mandell, director, Claims Performance, Auto Physical Damage Solutions for Mitchell International.

“Automakers are now moving away from the use of mild steel, which was a core substrate used for automotive construction for a long time,” said Ryan Mandell, director, Claims Performance, Auto Physical Damage Solutions for Mitchell International.

Instead, OEMs are increasingly using lightweight materials such as aluminum, high-strength steel, ultra-high-strength steel and plastic.

Mandell has worked in a variety of industry segments over his career.

He joined Progressive Insurance as an adjuster after graduating college in 2004 and then worked for a medium-size MSO, Precision Collision Auto Body, based in Washington. Before he was hired by Mitchell in 2017, he was in charge of five wrecking facilities owned by B&R Auto Wrecking in the northwest for four years.

Autobody News talked to Mandell about the use of lightweight materials in current and future model vehicles and how this shift will impact collision repairers.

Q:

Why are automakers moving away from the use of mild steel and using lightweight materials?

A:

Manufacturers are moving away from the use of mild steel for a couple of reasons. First, they want to improve fuel economy in response to the National High-

way Traffic Safety Administration (NHTSA)’s Corporate Average Fuel Economy (CAFE) standards, which regulate how far vehicles must travel on a gallon of fuel. The current requirement is for automakers to raise the average fuel efficiency of new cars and trucks to 54.5 miles per gallon by 2025.

With an increased focus on manufacturing electric and hybrid vehicles, lightweight materials are being used to offset the weight of the batteries. Many people believe electric cars are lightweight because they don’t have an engine, but lithium-ion batteries are really heavy.

According to a study conducted by a global transportation company named Kar-Tainer, the company found that if you look at the average weight of an internal combustion vehicle versus an electric one, the electric vehicle on average was a little over 400 pounds heavier.

Lithium-ion batteries have a low energy density ratio. In order to produce the kind of range and performance and be competitive in the market, you have to have a large battery. Until we get to the point

where we’re using solid-state battery technology with a higher energy density, this will be the case for some time.

The shift away from steel is also about improving crashworthiness. A university study compared structural aluminum to mild steel, which has been used in structural applications for an extended time.

They found that aluminum absorbed twice the crash energy than steel.

Q:

Can you tell us about the trend toward lightweight materials and if it’s expected to continue in the future?

A:

The use of lightweight materials has ramped up over the last decade. When I worked

44 OCTOBER 2021 AUTOBODY NEWS / autobodynews.com

in a body shop in 2008, the incidents of aluminum in our facility were minimal. By the time I left in 2012, it was becoming more common.

Looking at Mitchell data from our estimating customers, we see a couple of percentage points growth every year in terms of the major component parts constructed of these types of materials.

Looking ahead, it is predicted that this trend will continue to evolve. A study conducted by IHS Markit showed that over the next 10 years, we’re going to see highstrength steels have higher percentage content in vehicles than mild steels. Higher tensile strength steels are fired at higher temperatures, which produces more rigidity, so the material is not only lighter, but also stronger.

Q: A:

How is this shift expected to impact collision repairers?

As manufacturers continue to use more non-traditional materials, it will ultimately impact collision repairers. When Ford manufactured the all-aluminum F-150 in 2015, there was much discussion around the use of this material. As a result, some collision repairers have already set up their facilities to accommodate aluminum repair with a clean room and dedicated tools, dust evacuation systems, etc.

In addition to aluminum and lightweight steel, I think we’ll also see a shift in the use of composite plastics. All these changes are likely to affect the repair versus replace decision-making process. Certain materials are simply going to create a different pattern of damage than steel.

With some parts of the car comprised of ultra-high-strength steel, for example, a repair is prohibited because it will ruin the vehicle’s structural integrity. Other parts, such as composite plastics and even carbon fiber, can be repairable in certain instances but this is rarer than if the panel was comprised of mild steel.

The properties of the metal in the vehicle dictate how it will respond in an accident. Because alu-

minum becomes more brittle when impacted, it’s more likely that it will crack versus deform. When mild steel is impacted, it dents. It deforms the energy and continues to travel through the rest of the car because that energy hasn’t been dispersed quickly enough.

When you have something that cracks, that energy disperses much more efficiently. If you have a fend-

This Audi structure at the SCRS booth during SEMA consists of stamped and extruded aluminum with carbon fiber reinforcements.

Credit: Tim Ronak

er with a dent, it might be repairable; however, it probably can’t be fixed if it has a crack.

Take the 2018 Audi A3. There’s an A3 with a gas engine and an Audi e-tron, the plug-in electric vehicle. With the gas engine version, the fenders are made of mild steel.

The fenders on the plug-in version are aluminum. The front ends look identical and there is no difference cosmetically.

However, when those cars are in an accident and subjected to impact, the fenders are going to respond very differently. There will be different patterns of damage simply due to the materials. That’s at the core of why this is important.

The chief engineer of the Ford Explorer, Bill Gubing, said that weight was a factor in every decision they made on the 2020 Explorer, according to FordAuthority.com.

The engineering team looked at every part and how they could achieve weight savings and still achieve the same type of performance or better in a crash test. Ford uses aluminum in the 2020 Explorer, but it also uses steel, magnesium and plastic.

This is a great example of how automakers are looking at all the components in the vehicle to deSee Lightweight Materials, Page 47

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autobodynews.com / OCTOBER 2021 AUTOBODY NEWS 45

All-American from Concept to Collision Repair Shop: Pro Spot a Proud U.S. Manufacturer

by Chasidy Rae Sisk

Growing up in Sweden, Ron Olsson believed his future would one day lead him to America. After moving to California, he founded Pro Spot International in 1986, introducing the collision repair industry to resistance spot welding, which OEMs already used while building vehicles.

Since its inception, Pro Spot equipment has “always been manufactured in the U.S., under one roof, from start to finish,” Olsson said.

and manufacture all Pro Spot equipment under one roof.

“We have to be fast-acting in this industry, and having everything in-house provides us with instant access to engineering and the production line when we need to react,” he said. “With everyone in the same building, feedback reaches the right team quicker, allowing efficient adjustments when needed, without relying on another facility’s response times. That’s priceless in this industry.”

sistent, yet we’ve had three strong quarters which help us feel optimistic that we’ll be able to return to normal soon,” Olsson said.

Noting vehicle technology is rapidly changing with the inclusion of electric and autonomous vehicles, Olsson said, “Having the right infrastructure is vital to producing products that will keep pace with new technology coming down the pipeline and the increasing demands accompanying those advancements.

At Pro Spot, we’re always thinking five years ahead so we can prepare for the next set of changes in vehicle technology.”

With technology changing so rapidly, collision repair professionals know training is more important than ever before, and Olsson agrees.

In addition to its Carlsbad headquarters, Pro Spot has training centers in Florida, Tennessee and Colorado, which “allows us to be more proactive in training our local and regional markets, while also offering convenience by saving clients from unnecessary travel expenses,” Ols-

son said. “Customers particularly benefit from training at headquarters where they can see how Pro Spot manufactures the equipment they’re learning to use effectively.”

As vehicle design advances, Pro Spot continues to follow suit.

Ryan Swanson uses a pull tester to qualify spot welding strength results

“We’re adjusting our designs and technology as OEMs update vehicle designs and technology,” Olsson said. “Yes, Pro Spot is a welding company, but we’re more of a joining technologies company, and as vehicles change, we’ll adapt as well, ensuring that we provide our customers with the support they’ve come to expect from Pro Spot.”

A small glimpse of the Pro Spot headquarters’ Training Center

“We’re proud to be the only American-made spot-welding manufacturer. Living in this great country means something, and our distributors and customers can take pride in using products made in the USA.”

For the past 20 years, Pro Spot’s catalogue of products has come to life in its 60,000-square foot facility in Carlsbad, CA. From design and engineering to prototyping, and then manufacturing and shipping its products, Pro Spot “dreams up everything we do right here. On-site engineers design our equipment on a CAD program, and after testing the prototypes, we manufacture the product,” Olsson explained.

Originality and adaptability are key components to Olsson’s business philosophy. He places much emphasis on the ability to engineer

The adaptability Pro Spot enjoys by having the entire process under one roof was paramount while contending with the global pandemic.

“We reacted and adapted quicker than other manufacturers because we control everything on-site,” said Olsson. “During the worst of the shutdown, Pro Spot supported our distributors by offering creative financing options to ensure our equipment was available to those affected

by COVID and its impact on the economy.”

Of course, the pandemic continues to present challenges, including a shortage of raw materials and an increase in freight prices. Despite rising costs, Pro Spot has not raised its product prices.

“Our prices have remained con-

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Continued from Page 44

Lightweight Materials termine how it can be made lighter.

For repairers, this means the opportunities for fixing the components in a collision repair setting are reduced. You don’t have as much decision-making capability due to the

A BMW i8 using carbon fiber. Credit: Tim Ronak

materials being used. Subsequently, your potential profit margins are reduced and cycle times will likely increase.

Q:

How do you recommend collision repairers educate themselves and prepare for these

changes?

A:

As we see the use of these mixed materials increase, understanding the materials and the makeup of vehicles is key. In addition to having the proper tooling and equipment, training is critical. Although it can often be challenging to do in a shop environment, over the last 18 months during the pandemic, many shops have had more time to educate technicians. It’s also important to include customer service representatives, estimators and managers.

I-CAR is going through a revamping of its content, which will be very valuable for the industry.

There are also a variety of webinars and classes available that can be helpful.

A huge component of education involves referencing the OEM repair procedures, which are changing all the time. That’s why we are working hard at Mitchell to integrate those in the estimating platform so it’s not so cumbersome for shops to do that research.

Shops also need to set appro-

priate expectations with customers.

This starts with the estimating process. When writing the initial esti-

Q: A: A McLaren using carbon fiber. Credit: Tim Ronak

mate, it’s important to educate owners of newer model vehicles about the types of materials used.

Consumers are unaware of many of these changes and don’t understand the impact of the materials when they are in an accident.

Having those types of conversations up-front is an opportunity for collision repair facilities to put themselves in a position where they are the experts and demonstrate they are looking out for their customers’ best interests.

We’ve also seen interest from

What are some of the opportunities available for repairers?

In the future, I think there will be more specialization in the market. By training employees to repair vehicles with these types of materials, shops can create a healthy profit center. It’s not going to be for every shop but depending on the market and the customers you serve, there could be some opportunities, whether you are an independent repair facility or part of a consolidator.

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Third-Generation MSO Steps Up Philanthropy During Pandemic partnership.

“NABC does a great job and Auto body shops all over the coun- the process is absolutely seamless,” try put their charitable efforts on Kendrick said. “They make it easy hold during the pandemic for ob- and that’s why we will keep workvious reasons. But a few shops out ing with them on these car presentathere took the opportunity to step up tions.” and do even more, by reaching out Here is a lengthy list of Kendto their local communities and find- rick Paint & Body’s charitable efing more ways to help. forts: A good example is Kendrick They recently delivered 50 Paint & Body, a third-generation boxed lunches from Fat Man’s to the MSO with eight locations in Geor- University Hospital Emergency Degia. partment in Augusta, with Kendrick there to assist.

“We thank all the health care workers giving their all during this continued pandemic,” he said.

A local promotional company, Showpony, designed a T-shirt for Kendrick Paint & Body, and donated $2,000 from the proceeds to Ronald McDonald House Charities of Augusta (RMCHA).

“Since the COVID-19 Steve Kendrick Jr., center, stepped up his company’s pandemic began, the RMcharitable efforts during the pandemic HCA hasn’t been able to In 2008, owner Steve Kend- operate at full capacity due to occurick Jr. bought the shop from his fa- pancy and social distancing requirether, whose father had founded it in ments, and they have placed some 1950, and decided to scale the fami- families in local hotels,” Kendrick ly’s successful business. As a result, said. “The hotels were an additional, today they have eight locations with non-budgeted item, and that’s why 165 employees and fix approximate- we’re happy to help cover some of ly 1,300 cars monthly. the expense with our donation.”

During the pandemic, Kendrick Kendrick Paint and Body decided to continue on the path his teamed up with Manuel’s Bread Cafe grandfather started. and delivered 100 meals to the staff Some shops put one person in at Augusta University. Kendrick, charge to coordinate all of their com- Manuel Carron, Ansley Kendrick pany’s philanthropy, and that’s why and Britton Zier delivered meals at Kendrick’s Operations and Market- lunch. ing Specialist Carson McLaughlin “We were happy to donate and is always busy. give appreciation for our incredible “She has done an amazing medical professionals,” Kendrick job,” Kendrick said. “We find new said. causes and organizations in need The company recently partall the time, especially here in Au- nered with David Goodbread and gusta, where we cover a large area FP Mehan of Insurance Services of in a fast-growing community. I tell Augusta and delivered meals to the people it’s a ‘small big town’ where North Augusta Public Safety, and everyone knows everyone. So be- also delivered 100 lunches to Aiken ing known for helping others, that’s Regional Medical Center. huge and something we’re proud Kendrick Paint & Body and the of.”

JLA Group teamed up to help beau The business has been involved tify downtown Augusta by providwith NABC’s Recycled Rides for ing landscaping on the Broad Street several years and has given away medians between 13th and 15th eight vehicles since entering into a streets.

by Ed Attanasio

50 OCTOBER 2021 AUTOBODY NEWS / autobodynews.com

For the past several years, Enterprise has partnered with Kendrick Paint & Body to present a $2,000 grant to the American Red Cross Augusta Chapter.

“The money helps the Red Cross continue operations in our area,” Kendrick said. “The Augusta chapter covers 15 counties with only three paid employees. The remainder are dedicated volunteers.

“In 2018 alone, we had six natural disasters. As a result, the Red Cross sheltered more people in 45 days than in the last five years combined. The Augusta chapter sheltered more than 3,000 people during Hurricane Irma. The donations help keep these operations in place to ensure the Red Cross is able to help serve in disasters and tough times.”

Every February, the company participates in the Red Cross Boot Scoot Boogie, an annual event that generates more than $100,000 for the Augusta Chapter of the American Red Cross.

Each year, Kendrick Paint & Body supports SafeHomes Domes-

tic Violence Center by sponsoring the Fake It to Make It lip sync competition. The event has raised more than $160,000 annually to help fund SafeHomes’ mission.

“SafeHomes is committed to ending domestic violence through advocacy, awareness and education,” he said. “They have an array of highly-specialized and comprehensive services to assist victims, regardless of the stage they are at on their journey. All services are completely free and completely confidential.”

By constantly looking for more ways to give, Kendrick is proud to be a contributing member of his community, a role he wants to play as long as he can.

“There will always be people and organizations out there that will need help, and if we’re in a position to do it, why not?” www.autobodynews.com

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Continued from Page 43

Tesla’s Elon Musk Pledges to Expedite Service Center Openings

by Maria Merano, Teslarati

Tesla CEO Elon Musk recently pledged to expedite the company’s ramp of its physical service centers, even as the company expands its mobile service fleet.

A Tesla Model 3 Performance owner asked Musk when Tesla would open more service centers in the northeastern U.S. The owner, @JeffTutorials, informed Musk he received a wait time of three or more weeks for just an appointment with a service center.

Jeff wanted to replace the front upper control arm of his Model 3 and believed it could not be done via Tesla Mobile Service.

“Thank[s] for bringing this up. Tesla will expedite service center openings. Have you tried our mobile service that comes to you,” replied Musk.

As Tesla’s fleet grows, it may be time to focus more on delivering quality service and more service options. Currently, Tesla has service centers in 39 countries worldwide. In the U.S., Tesla has service centers in at least 34

different states. Some states only have one Tesla Service Center.

There are no listed Tesla Service Centers in three of the nine states in the northeastern U.S.: Maine, New Hampshire or Vermont.

Among the northeastern states that do have a Tesls Service Center, only one each is listed in Rhode Island and Connecticut.

New Jersey has four Tesla Service Centers, while Pennsylvania has three. New York has the most Tesla Service Centers in the northeast, with seven.

That’s a total of 20 Tesla Service Centers in the northeastern U.S. For perspective, California alone has 39 Tesla Service Centers.

During the Q4 2020 earnings call, Automotive Director Jerome

Guillen said Tesla hoped the Mobile Service team would address 50% of customer service needs in 2021.

According to Guillen, Tesla planned to open 46 new service centers in North America in the first half of 2021. In retrospect, 46 service centers may not be enough to accommodate Tesla’s growing customer base in the U.S., and even more would be needed to address service needs around the globe.

Tesla is working with third-party repair shops to deliver service to customers. However, it would take experience and knowledgeable technicians to service a Tesla properly.

Lately, Tesla seems to be considering other service options it can provide to owners as its customer base grows. Recently, Tesla quietly debuted service subscriptions, which included a diagnostic software package that could help owners make minor repairs on their own at home.

Consultant Says Association’s Foothill chapter. Tell us about the importance of the organization and its role in the industry in California.

A:

The shops that join CAA are always the top shops who see the value in the organization and what they do. The CAA provides its members with a lot of valuable information through people like Jack Molodanof, their lobbyist in Sacramento, and speakers we’ve had such as Michael Anderson, BAR representatives and industry leaders.

I think the MSOs would benefit from joining CAA too. We plan on meeting again soon as opposed to Zoom calls, and we have some big plans for 2022, so now is the perfect time to join.

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Regardless of the age of your customer’s Audi, Audi dealers have access to over 200,000 part numbers and are supported by a nationwide network of distribution centers to help ensure non-stocked parts are delivered the next day. autobodynews.com / OCTOBER 2021 AUTOBODY NEWS 51

2021 SEMA Show Update: SEMA Affirms Commitment to Outstanding Show in November

by SEMA Editors

“At a time when COVID is back in the headlines, SEMA wants you to know that the association is 100% committed to holding the 2021 SEMA Show, Nov. 2–5, and showcasing two years of product innovations, vehicle trends and industry-leading education,” said Tom Gattuso, SEMA vice president of events.

“The SEMA Show is the only place in the world that brings together the people, products, vehicles and ideas that drive the aftermarket industry.”

Concerning safety measures, the COVID landscape and state and local requirements are changing week to week. With this rapid pace of change, SEMA expects to know more in the coming weeks about the specific measures that will be required in November.

“Meanwhile, the basics are in place. The Las Vegas Convention Center has been awarded the GBAC STAR certification, which demonstrates the highest standards

for daily cleaning, air filtration and sanitization. It is the gold standard for safe facilities,” said Gattuso.

Select aisles have been widened for enhanced attendee flow.

An updated floorplan will also make the Show easier to navigate and allows for optimal locations for new and returning event features.

“SEMA is committed to delivering an event that exhibitors and attendees can rely on to network and conduct business,” said Gattuso. “We are working with Nevada authorities amidst an evolving landscape to deliver an outstanding event consistent with local health and safety requirements in November.”

To register and learn more about the 2021 SEMA Show, visit www.SEMAShow.com.

Source: SEMA

Crash Champions Adds 3 Locations to Growing National Footprint Crash Champions, LLC, one of the nation’s fastest growing independent collision repair companies, announced Sept. 14 it has acquired Robbie’s Auto, located at 238 Route 46 East in Dover, NJ; Total Auto Body, located at 1635 N. Port Washington Road in Grafton, WI; and Racine Auto Body, located at 1100 S. Airline Road in Racine, WI. With the addition of Robbie’s Auto, Crash Champions marks its first entrance into the New Jersey market, a natural complement to the Pennsylvania presence the company gained following its acquisition of Signature Collision Centers earlier this year.

The additions of Total Auto Body and Racine Auto Body strategically supplements the company’s recent acquisitions of D&M Auto Body, Quality Auto Body, Silver Spring Collision Center and Gillette’s Collision Center, bringing the company’s number of locations in Wisconsin to eight.

Observations on Collision Works Sale to Gerber

By David Roberts, Focus Advisors Automotive

The following is a letter sent Sept.

1 to Focus Advisors’ clients and colleagues by Managing Director David Roberts.

Gerber’s recent acquisition of Collision Works (CW) is the largest acquisition of an independent MSO in the last three years. Combined with the acquisition of John Harris Body Shops in South Carolina, we estimate Gerber has added nearly 10% to its overall revenues with these two large acquisitions.

These two acquisitions by Gerber reflect the continued strength of large consolidators in growing their businesses. It takes a lot of revenue to move the dial on a big enterprise like Gerber.

We estimate Collision Works’ revenues in the $100 million range in Oklahoma and Kansas, three fast-growing Midwestern markets (Oklahoma City, Kansas City and Tulsa), and a host of smaller adjacent markets. John Harris operated 16 shops with an estimated revenue of $40 million with large and small shops across South Carolina

and parts of Georgia.

The growth of Collision Works is a template for other rapidly growing MSOs

Jake Nossaman and his team built a solid foundation, beginning with large well-located operations in and around the Oklahoma City market. They continued to grow with both greenfield and acquisition strategies.

CW entered a second large market, Kansas City, with a greenfield development and proceeded to acquire shops in and around that market. With an eight-shop MSO acquisition (Auto Craft), CW expanded its reach into the Wichita market and continued adding single shops to reach the full complement of 36 shops upon sale to Gerber.

To finance some of its initial growth, CW teamed up with a substantial capital partner—Bank of Oklahoma. In 2019, it refinanced its real estate portfolio to acquire $50 million in additional capital and used these resources to pay down debt, continue buying and integrating shops across their markets.

52 OCTOBER 2021 AUTOBODY NEWS / autobodynews.com

Exit Strategies Along the way, Collision Works also looked at the possibility of joining forces with a very large private equity firm. In the end, because of its scale and infrastructure, Collision Works had multiple exit opportunities—from selling to a consolidator to recapitalizing the company with a large private equity investor to merging with other strong operators.

With few remaining regional MSOs left in the U.S. approaching the size of Collision Works, we expect the scarcity value will allow those remaining operators with more than $50 million in sales to continue to find enthusiastic buyers—or private equity investors.

For rapidly growing regional and super-regional MSOs, scale, infrastructure, relationships with insurers and access to capital will be the primary elements determining future success.

Source: Focus Advisors

AUTOBODY

“With these three acquisitions, I am excited for Crash Champions to enter the New Jersey market and strengthen our presence in the Milwaukee market,” said Matt Ebert, founder and CEO of Crash Champions.

“What unites these three facilities is that they each possess highly trained technicians that work in state-of-the-art facilities and provide the highest quality repairs.

Their dedication to the customer experience and commitment to safety exemplify everything that we stand for at Crash, making each of them a natural addition to our growing national footprint of locations.

“I am pleased to welcome them to our championship team, and I look forward to leveraging our resources to further enhance the services provided to customers and partners.”

For more information about Crash Champions, visit www. crashchampions.com.

Source: Crash Champions

Mercury Insurance Wins J.D. Power Award Mercury Insurance is ranked No. 1 among insurers for overall satisfaction in the shopping segment of the J.D. Power 2021 U.S. Digital Experience Study.

This marks the first time Mercury has received a J.D. Power award.

The study, which evaluates digital consumer experiences among P&C insurance shoppers seeking quotes and existing customers conducting typical policy-servicing activities, examines functional aspects of desktop, mobile web and mobile apps based on five factors: ease of navigation, appearance, availability of key information, range of services and clarity of the information.

The study was conducted in partnership with Corporate Insight, and is based on 11,548 evaluations fielded in February and March.

Mercury Insurance provides auto, homeowners and business insurance in 11 states.

Source: Mercury Insurance

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autobodynews.com / OCTOBER 2021 AUTOBODY NEWS 53

Answers to Your SEMA Show Questions

By Della Domingo, SEMA

SEMA vice president of events Tom Gattuso recently answered questions about the 2021 SEMA Show’s health and safety plans.

Read below for more details, or visit www.SEMAShow.com for the most up-to-date information about the SEMA Show.

Q:

What is SEMA, AAPEX and Automotive Aftermarket Industry Week?

TG:

off-road, restyling, mobile electronics or another segment, this is the place to discover the new trends and products, and to connect with other businesses in your segment.

Both events include seminars, meetings and events for the automotive industry, so businesses can get a lot accomplished while in Las Vegas during the week. It makes for a really busy week, but with the entire industry in attendance and so many activities taking place, it is the best place for businesses to be, and participation delivers the greatest ROI.

The SEMA Show and AAPEX are two different shows that take place during If the two events share regthe first week of November in Las istrations, why are there two Vegas each year. Together, they different health and safety policies make up the automotive industry’s (or strategies) in place? Wouldn’t leading trade gathering—it’s an ex- it be easier to just have one policy citing weeklong event that we call that applies to both events?

Automotive Aftermarket Industry Week, or AAIW for short.

The COVID landscape is

Both events are B2B, and they complicated, and organihelp companies succeed and grow. zations are making decisions and They are conveniently co-locat- planning in their own ways. SEMA ed within a few miles believes that we will of one another, and a serve our industry best single attendee regisby having the benefit of tration allows access some time, which will into both events; but, give us more current as mentioned earlier, and reliable decisions from state and local authe SEMA Show and thorities for the event AAPEX are two unique taking place in Novemand different events.

AAPEX takes place ber.

SEMA Vice President of Nov. 2-4 at the Venetian We’ve seen a lot Events Tom Gattuso Expo & Caesars Forum, change in the past few and it features aftermarweeks, and we anticiket replacements parts—the type of pate more changes to come. We’re products that are required to keep working with Nevada authorities your car or truck running. to understand what will be needed

The SEMA Show is a four-day for the SEMA Show. We believe we show taking place Nov. 2-5 at the will have a better read in the weeks Las Vegas Convention Center, and ahead and will act accordingly. it features products and services that enhance the performance, stylIs there a chance SEMA will ing, comfort, convenience and safeimplement the same meaty of cars, trucks and SUVs. sures AAPEX and other events are

It’s where you’ll find the eye implementing, and require proof of candy and discover the newest vaccination in order to attend? products available to modify and personalize your vehicle into a oneIt’s not possible to know with certainty today what of-a-kind creation—from superchargers and performance brakes the Nevada requirements will be to seat covers and custom paint or in November. Rather than specbedliners. The SEMA Show covers ulate on what may or may not be ever market niche, so whether you required, we are closely monitoring work in racing and performance, the COVID landscape and working

Q:

TG:

Q:

TG:

54 OCTOBER 2021 AUTOBODY NEWS / autobodynews.com

with state and local authorities, and we will share details that the industry can rely on as soon as we can.

Q:

How long will we have to wait until SEMA makes a decision?

TG:

We don’t have a specific date at this time, but we can tell you that we are 100% committed to having the Show in November and helping the industry and our customers succeed.

As soon as we learn the specific measures that will be required in November by state and local governments, we will share those details by posting them on our websites, in our social media channels and emailing registered participants. We will do everything we can to notify our customers as soon as possible.

Q:

It sounds like masks are required at all indoor events in Las Vegas. Should I be prepared to have to wear a mask all day long

while at the SEMA Show?

TG:

Currently (as of this Sept.

1 interview), Nevada does require that masks be worn by everyone while indoors in Las Vegas, but that may change. We will have to assess the situation and the requirements that will be place, and it’s just a bit too early to make that determination. We’ll know more in the coming weeks.

Also, there is more than a million square feet of outdoor activation space, including feature vehicles, displays, drifting and ride and drive experiences, where masks are not required.

Q:

Doesn’t SEMA have an option to require proof of vaccinations from attendees, and then not require masks to be worn the entire time?

TG:

That is not currently (as of Sept. 1 interview) an option for events such as trade shows in See SEMA Show Questions, Page 56

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Car Insurance Costs for Men vs. Women in 2021

by Aaron Besson, QuoteWizard

On average, QuoteWizard found men pay $720 per year for auto insurance, while women pay $739 per year.

The cost difference between teenage men and women drivers is easy to explain. Men pay significantly more for car insurance than women in their teen years, while women pay slightly higher premiums in later years. On average, we found men pay $720 per year for auto insurance, while women pay $739 per year.

But these rates depend on age: during their younger years, men pay more for auto insurance than women. This cost difference usually evens out at age 25 for both genders.

However, women see a comparatively slight hike in their rates by age 35. Why women wind up paying more for auto insurance over time is not really known, and some states have already started taking steps to eliminate gender as a rate factor.

Our research found men pay an average of $720 per year for car

insurance, while women pay $739.

Which gender pays more for auto insurance at any given point in time depends on the age of the driver.

On average, young men pay much more for car insurance than young women. This is because car insurance providers find men to be riskier drivers than women, especially when they are younger.

insurance costs regardless of your age and gender, make sure to compare multiple auto insurance quotes from many companies. Rates and coverage offerings can vary widely.

Getting a broad overview of what’s available can save you a lot of money.

On average, men pay $720 a year, or $60 a month, for auto insur-

When they are older, women start to pay slightly higher rates.

Besides age, other factors that can affect the car insurance rates of either gender include driving history, where you live, car make and marital status.

In order to defray higher auto

ance. At age 18, a male driver pays an average of $5,124 a year, or $427 a month.

At 18 years old, men pay more than $1,000 more per year on average than an equal-aged female driver. The key reason for this? Teen males show a higher level of crash risk than women of the same age.

According to a 2018 CDC study, the rate of fatal car accidents for men between the ages of 16 and 19 was almost twice the death rate for equally-aged women drivers. Auto insurance providers take this into account when factoring risk levels to calculate premiums.

Men’s auto insurance rates decrease significantly around age 25.

After that, rates stabilize, then stay fairly constant for many years if a clean driving record is maintained.

Women pay an average of $739 a year, or $62 a month, for auto insurance throughout their lifetime. Eighteen-year-old female drivers can expect to pay an annual average rate of $4,118, or $343 a month. Women have safer driving records than men overall. At age 35, however, women see slightly higher average rates.

Since they show a better reputation for safe driving than men, women tend to pay cheaper rates when they’re younger. At age 25, both genders see fairly equal rates due to maturity and more experience behind the wheel.

Then why do women see higher

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rates than men when they’re older?

There is currently no clear answer.

In 2017, the Consumer Federation of America (CFA) found women between the ages of 40 and 60 paid more for minimum liability coverage than men with similar histories.

Looking at the underlying factors used to calculate claim risk level, there doesn’t seem to be a clear and constant risk factor in women drivers’ histories to reveal a reason for the cost difference.

Women may also pay significantly more than men depending on where they live. Our analysts found 31 states where women pay more than men, 15 where men pay more than women and four where men and women pay the same amount.

We also found when women pay more, they tend to pay substantially more. Women pay more than $100 more than men in four states, while the most men pay more than women is $64.

Women, however, tend to see a slightly smaller increase in their insurance premiums after a driving incident. We found on average, men will see a larger increase in their insurance premiums after a speeding ticket, accident or DUI.

Given the vagueness of the reasoning underlying the rate differences between men and women, states have started putting laws on their books to prohibit insurers from using gender as a rate factor when calculating premiums. The removal of gender when calculating auto insurance premiums could go a significant way towards equalizing rates, especially car insurance rates for younger drivers.

States that currently have laws that prohibit gender from being used as a car insurance rate factor are California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania.

The average rates used in this article are based on thousands of quotes for full-coverage car insurance in random ZIP codes across the country for drivers 18 and 35 years old with excellent credit and no accidents. The vehicle used for data is a 2012 Honda Accord LX with 16,000 miles in annual mileage.

Source: QuoteWizard

autobodynews.com / OCTOBER 2021 AUTOBODY NEWS 55

Henkle Joins Elite Body Shop Solutions Team An expert more than 30 years in the making, Brent Henkle joined forces with Elite Body Shop Solutions, the most prominent business in auto body shop leadership and management training.

Henkle obtained hands-on experience with Price’s Collision Centers, working closely with every department to optimize performance, grow the business and elevate employee engagement. During his 34 years in automotive, he dedicated 13 years to collision centers alone, specializing in process and management optimization.

With Elite, Henkle will focus on his role as training manager. He will use the position to help auto body shops harness the power of their management systems, which are often the most underused and yet the most essential tools in the business.

Source: Elite Body Shop Solutions

Continued from Page 54

SEMA Show Questions Las Vegas.

Nevada recently announced an option for fixed-seat event organizers—such as concerts and football games—to require proof of vaccination from attendees in Las Vegas, and not require masks be worn. It seems that many do not realize that this option does not apply to trade shows—the current requirement in Nevada is for masks to be worn by all individuals while indoors in Las Vegas regardless.

This is an example of the confusion that recent changes have created. We will have greater clarity about the November requirements for trade shows in the coming weeks, and will announce details at that time.

Q:

Lots of people are saying they want proof of vaccination, masks, pre-event testing. Why not set those requirements now?

TG:

The COVID-19 landscape is changing week to

week. We need to rely on the health experts and believe that the safety measures that will make sense to the greatest number of people are the measures that Nevada health authorities will have in place after a few more weeks pass, and we get closer to our November Show dates.

Q:

What are the other health and safety measures for the SEMA Show that are in place?

TG:

The basics for a successful 2021 SEMA Show are already in place and we are prepared for the industry to reconnect in November.

Inside the LVCC, there is an upgraded GBAC Star Certified Air System. This is a hospital-grade system and represents the highest standard for daily cleaning and sanitization. The new West Hall also provided us with higher ceilings and 25% more space, so we can spread out more and have wider aisles throughout the entire convention center and accommodate attendees to distance more freely.

We will also have hand-sanitizing stations throughout the event, and daily cleaning in high-traffic areas.

We also know that, unlike a year ago, trade shows today are taking place successfully throughout the country. A year ago, gatherings were limited to no more than 250 people. At the Las Vegas Convention Center, 17 events are scheduled to take place between now and the SEMA Show.

The health and safety of those at the Show is important to us, and we are confident that the 2021 SEMA Show is going to be an amazing event that will provide the industry with the best opportunity to reconnect and do business. There is two years’ worth of pent-up demand from the industry to reconnect in person, and the 2021 SEMA Show will give the industry with the best opportunity to do that.

Source: SEMA www.autobodynews.com

Mitchell, Car ADAS Solutions Team Up to Provide Enhanced Calibration Support Mitchell, a leading provider of technology, connectivity and information solutions to the Property & Casualty (P&C) claims and collision repair industries, and Car ADAS Solutions, an ADAS technology and services company, have joined forces to offer enhanced support for dynamic and static ADAS calibrations.

Mitchell’s MD-500 scan tool and MD-TS21 target system combined with Car ADAS Solutions’ onsite evaluation, training, implementation and support services can help North American collision repair facilities reduce cycle time and generate additional revenue by opening their own ADAS calibration centers.

With at least one ADAS feature on nearly every new automobile, recalibration of radar, ultrasonic, LIDAR and camera sensors has become essential to proper, safe vehicle repair.

Instead of subletting the work, repair facilities can invest in the equipment and operational support required to perform calibrations onsite. This can assist them in managing existing repairs more efficiently while accessing new revenue oppor-

tunities as a retail calibration center for other collision repairers, mechanical repair shops and glass installers.

“With the significant increase in ADAS, calibrations are required on a growing number of repaired vehicles, with many necessitating multiple calibrations,” said Greg Peeters, CEO and founder of Car ADAS Solutions. “Together with Mitchell, we help shops build an ADAS calibration business, thereby creating an entirely new profit center―one designed to service their repaired vehicles, as well as their surrounding market.”

Car ADAS Solutions provides onsite evaluation, technician training, proprietary calibration manage-

56 OCTOBER 2021 AUTOBODY NEWS / autobodynews.com

ment software, ongoing auditing, quality control and technical support. Through its collaboration with Mitchell, the company will work directly with repair facilities using the MD-500 and MD-TS21.

Mitchell’s computer-based ADAS target system leverages Bosch’s diagnostics expertise, best-in-class vehicle coverage and patented technology― delivering a complete solution for static and dynamic calibration, pre- and post-scanning and repair blueprinting.

Since it works with Mitchell Cloud Estimating and its Integrated Repair Procedures, repair planners can also use the equipment to write estimates, take photos, link directly to OEM repair information from Diagnostic Trouble Codes (DTCs) and automatically upload pre-scan, postscan and calibration reports.

“ADAS calibrations are one of the fastest growing and most complex elements of modern collision repair,” said Jack Rozint, senior vice president of repair sales at Mitchell.

“Car ADAS Solutions, along with Mitchell’s latest generation of diagnostic equipment and software, offer an end-to-end solution for repairers

seeking comprehensive assistance with setting up and successfully operating their own calibration centers.”

“Having access to the right tools and services becomes even more critical now that ADAS calibrations are a key part of the repair process,” said Michael Simon, director of strategic accounts at Bosch Automotive Service Solutions. “Connecting Bosch technology, Mitchell software and Car ADAS Solutions support can assist technicians in the delivery of proper, safe repair for the cars of today and tomorrow.”

Additional information can be found at www.mitchell.com/ products-services/collision-repair -shop-solutions/car-diagnostic-system and caradas.com.

For collision repair and property casualty updates and perspectives, follow Mitchell on Twitter @Mitchell Repair and @MitchellClaims.

Source: Mitchell International

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FCA to Pay $30M Fine for Illegal Payments to UAW Officials FCA US LLC (FCA) was sentenced Aug. 17 in federal court in Detroit after pleading guilty in March to conspiracy to violate the Labor Management Relations Act, also known as the Taft-Hartley Act, by making more than $3.5 million in illegal payments to officers of the UAW between 2009 and 2016. FCA’s sentence requires payment of a $30 million fine, triple the base amount provided for the offense by sentencing guidelines.

In addition, FCA will serve a three-year term of probation and be subject to three years of oversight by Frances McLeod, an independent corporate compliance monitor selected by the U.S. McLeod is a founding partner of Forensic Risk Alliance and head of its U.S. offices, and recently served as the independent compliance monitor for IAV GmbH, a German company recently prosecuted in connection with the Volkswagen emissions conspiracy.

FCA is one of the big three American automobile manufacturers and the North American operating subsidiary of Stellantis. The illegal payments to UAW officials took various forms, including extravagant meals,

rounds of golf, lavish parties for the UAW International Executive Board, an Italian-made shotgun, clothing, designer shoes and other personal items paid for with credit cards issued by the joint training center.

FCA executives also paid off the $262,000 home mortgage of former UAW Vice President General Holiefield. Holiefield and his widow also received hundreds of thousands of dollars funneled through Holiefield’s purported charitable organization, as well as sham companies under Holiefield’s control that had lucrative contracts with the training center.

In many instances, FCA passed the illegal payments through the UAW-Chrysler Skill Development & Training Program d/b/a the UAW-Chrysler National Training Center (NTC). Ostensibly, the NTC was supposed to provide training and health and safety protections for FCA workers.

The sentencing was announced

by Acting U.S. Attorney Saima S. Mohsin. “The sentencing of FCA marks a significant milestone in this historic case,” said Mohsin. “Congress enacted the Taft-Hartley Act

to ensure that union members could have confidence in their union leaders.

FCA violated these principles through corruption. By lavishing millions of dollars in gifts and cash upon UAW leaders, the FCA sought to improve its relationship with UAW leaders, and FCA thereby harmed the hardworking men and women of the UAW. “A compliance monitor and a significant fine are important steps towards ending this type of systemic corruption and deterring future corporate malfeasance.”

Thus far, as part of this investigation of illegal payments by FCA to UAW officials, as well as fraud and embezzlement by other UAW officers, 14 individuals have been convicted of federal crimes, including three former FCA executives:

Former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison) Former FCA Financial Analyst Jerome Durden (15 months in prison) Former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison) Former UAW presidents Dennis Williams (21 months in prison) and Gary

Jones (28 months in prison) Former UAW vice presidents Norwood Jewell (15 months in prison) and Joseph Ashton (30 months in prison) Former UAW Region 5 Director and UAW board member Vance Pearson (12 months in prison) Former UAW Midwest CAP President Edward “Nick” Robinson (12 months in prison) Former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Michael Grimes (28 months in prison) and Monica Morgan, widow of Holiefield (18 months in prison). Holiefield died in 2015.

Mohsin commended the outstanding work of the IRS-Criminal Investigations, the U.S. Department of Labor–Office of Labor-Management Standards and Office of Inspector General, and the FBI in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.

Source: U.S. Attorney’s Office Eastern District of Michigan

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Joyson Safety Systems Leadership Transition

Proposed $42M Settlement Includes Removal of Takata Airbag Inflators in 1.35M Volkswagen and Audi Vehicles

Joyson Safety Systems (JSS), a leading global supplier of mobility safety components and systems, announced President and CEO Guido Durrer will retire from his current position Dec. 31.

The company also announced Tao Liu has joined JSS as deputy CEO, with plans to name him president and CEO on Jan. 1, following a four-month transition of leadership.

Following a career that spanned more than three decades of leadership roles in the automotive industry, Durrer joined Joyson Safety Systems shortly after its formation in 2018 as the company’s first president and CEO. Immediately following his retirement, Durrer will assume an advisory role in the chairman’s office, and he will continue to serve as a board member of JSS.

Liu will be based in the JSS global headquarters in Auburn Hills, MI.

Plaintiffs in the Takata Airbag Product Liability Multidistrict Litigation on Sept. 1 filed a class action settlement agreement resolving claims against Volkswagen Group of America, Inc. and Audi of America, LLC, and its affiliates that will accelerate the removal of dangerous airbag inflators from approximately 1.35 million affected vehicles while also compensating consumers for their economic losses.

The proposed $42 million settlement will provide numerous benefits to current and former owners and lessees of the affected vehicles, similar to agreements previously announced with Toyota, BMW, Mazda, Subaru, Nissan, Honda and Ford. The agreement was filed in the U.S. District Court for the Southern District of Florida, Miami Division, as part of the multidistrict litigation being overseen by Judge Federico A. Moreno.

“We are pleased that after three years of hard-fought litigation we have reached a settlement with Volkswagen that will bring significant monetary and other relief to more than a million class members,” said Peter Prieto, court-appointed plain-

Source: Joyson Safety Systems

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The settlement also provides compensation to class members for their economic losses resulting from the recall in the form of reimbursement for reasonable out-of-pocket expenses, a possible residual distribution payment of up to $500, requirements to provide rental cars to class members while they wait for their recall remedies and the provision of a customer support program for repairs and adjustments on the replacement inflators, including an extended warranty.

This settlement is subject to court approval. If preliminary approval is granted, class members will receive more information about the terms of the settlement. The benefits of the Enhanced Rental Car Loaner Program will be provided no later than the date of preliminary approval.

When and if the court grants final approval, the claims process will open to eligible class members pending any appeals that are filed. Personal injury claims related to the Takata Airbag Litigation are not covered by this settlement.

Source: Schwartz Media Strategies

PPG Provides Sales Update, Reports Worsening Supply Disruptions and Customer Parts Shortages

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tiffs’ chair lead counsel, who, along with other members of the plaintiffs’ leadership, negotiated the settlement on behalf of consumers. “This agreement will not only expand awareness of the Takata recalls and improve driver safety by accelerating the removal of defective airbags from our roads, but will provide compensation to affected VW and Audi consumers,” Prieto said. “We will continue to vigorously prosecute our claims against Mercedes Benz, General Motors and FCA to ensure that our clients obtain the relief they deserve.”

Among the benefits provided for in the settlement is an outreach program overseen by an independent settlement special administrator that enhances and expands upon VW’s and Audi’s outreach efforts to significantly increase recall remedy completion rates. The program will regularly contact class members through direct mail, phone calls, email, internet ads and social media to educate them about the settlement and incentivize them to receive the recall remedy and exercise their rights under the settlement agreement.

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PPG on Sept. 7 announced it expects sales volumes in the third quarter 2021 will be lower by $225 million to $275 million, compared to what the company anticipated at the start of the third quarter.

PPG’s sales volumes are being impacted by the increasing disruptions in commodity supplies; further reductions in customer production due to certain parts shortages such as semi-conductor chips; and continuing logistics and transportation challenges in many regions, including the U.S., Europe and China.

In addition, raw material inflation for the third quarter is trending higher than previously communicated by about $60 million to $70 million.

The coatings commodity supply disruptions have further deteriorated since the company’s earnings announcement July 19, due to several additional force majeure declarations and lower material allocations from certain suppliers.

The company also continues to assess the full impact of Hurricane Ida, which could include additional

supply chain effects.

The company reported aggregate global economic demand remains robust, and inventories in many of the company’s end-use channels are at very low levels.

When supply conditions normalize, the company continues to expect strong sales growth into 2022.

In addition, the company reported it continues to make measurable progress implementing selling price increases to help offset the elevated raw material costs, and is seeking further increases. Overall price increases for the third quarter are estimated to be about 5% with similar contributions from both operating segments.

Based on the uncertainty created by these continuing and evolving disruptions, the company has elected to withdraw previously communicated financial guidance for the third quarter and full-year 2021.

Source: PPG

www.autobodynews.com

autobodynews.com / OCTOBER 2021 AUTOBODY NEWS 59

SYSTEMS • TECHNOLOGY • SUPPORT Social distancing is not the same as disconnecting…

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800.531.1305 - www.IndustrialFinishes.com 60 OCTOBER 2021 AUTOBODY NEWS / autobodynews.com