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Vol. 36 / Issue 12 / December 2018
2018 Legislative Roundup in California: It Was a Very Good Year
MSO Seeks Help for Paradise, CA, Auto Body Shop Staff in Wake of Camp Fire
by Ed Attanasio
by John Huetter, Repairer Driven News
There were a lot of proposed bills this year that could have either helped or hurt the collision repair industry in California. But by working hard to support or oppose them, CAA lobbyist Jack Molodanof was able to say it was a productive and successful year, legislatively speaking. “The state legislature adjourned for the year, and the governor finished taking action on many bills,” Molodanof said. “CAA had a very successful legislative year, which
included supporting new laws that require preventative maintenance facilities to be registered with BAR and allowing customer authorizations through text message and other electronic means. CAA was also actively involved in stopping several pieces of legislation, including bills that would have: 1.) allowed insurers to conduct labor rate surveys in a manner skewing results and suppressing market rates; 2.) treated auto repair facilities as debt collectors and 3.) created new tires fees.” Below is a summary of key bills See Legislative Roundup, Page 12
Automakers at OEM Summit Offer Updates on Certified Collision Repair Center Programs by John Yoswick
The Society of Collision Repair Specialists’ (SCRS) day-long OEM Col-
Nicole Riedel of Subaru said the automaker’s certified shop program will be opening up for independent shop participation
The Paradise, CA, location of the four-shop Collision Pros MSO has been destroyed by the Camp Fire raging in the California Sierra Ne-
lision Repair Technology Summit held in Las Vegas during SEMA included updates from a number of automakers on their collision shop certification programs. Nicole Riedel of Subaru of America, for example, said that independent shops will soon be added to her company’s shop certification program that was launched with dealership shops this past June. “We have a little over 600 retailers across the U.S., and of that, at most one-third have collision centers,” Riedel said. “That’s not nearly See OEM Summit, Page 14
Credit: Collision Pros via Repairer Driven News
vada area. The owner is seeking assistance for his employees’ families.
The industry can help in one of two ways. Collision Pros owner Brian Von Tress has created a GoFundMe page specifically for his team, seeking $30,000. As of Nov. 14 at 4:20 p.m., the shop has raised $30,500. The Collision Industry Foundation, created specifically to help anyone connected to the collision repair ecosystem following disasters, is also in contact with Collision Pros about aid. Unlike GoFundMe donations, contributions to the CIF are tax-deductible and can be used for other businesses too. “I’ve been overwhelmed by the number of people who have reached out asking what they can do See MSO Seeks Help, Page 10
11th Circuit Considers Whether to Reinstate Auto Insurance Price-Fixing Claims
ices by agreeing among themselves to pay a preset “market rate” and to enThe U.S. Court of Appeals for the force compliance by “steering” their Eleventh Circuit heard arguments Oct. insureds to businesses that play ball, 23 leveled by a group of auto body re- effectively boycotting other shops. pair shops claiming State Farm InsurIn addition to State Farm, the defendants include Allstate, Progressive, GEICO, Nationwide, USAA, Liberty Mutual and Hartford, among others. Sitting en banc, the judges were considering whether to keep alive multidistrict litigation that was tossed out by a district judge for failure to Mark Shurtleff (left) and John Eaves. Republished with state a claim, then revived by permission. Credit: John Disney, ALM/Daily Report a split panel last year. ance and a host of other national The cases have been combined carriers are conspiring to fix prices. in Florida’s Middle District, and the The plaintiffs say the insurers instant appeals represent five of 14 have conspired to drive down the similar complaints combined in the prices they’re charged for repair servSee Price-Fixing Claims, Page 18 by Greg Land, Daily Report
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DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
Don’t Miss the Weekly Industry NEWS Your Shop Needs.
CONTENTS 2018 Legislative Roundup in California: It Was a Very Good Year. . . . . . . . . . . . . . . . . 1
Sisk - The Next Generation Speaks Out on Their Collision Repair Careers. . . . . . . . . 52
AUTOBODY
After the Donation: SF Skate Club’s Donated Car Is Still Rolling Along . . . . . . . . . . . . . . . 14 Annual Career-Technical Education Roadshow Drives Into Sandpoint, ID . . . . . . . . . . . . . . . 16 ASA Northwest Chapters Hold Annual Lights-On Events . . . . . . . . . . . . . . . . . . . . . 6 Automakers at OEM Summit Offer Updates on Certified Collision Repair Center Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Insurer Group Hammers Claim that CA Prop 103 Saved Drivers Billions . . . . . . . . . . 8 MSO Seeks Help for Paradise, CA, Auto Body Shop Staff in Wake of Camp Fire . . . . . . . . . . 1 OR Moves Closer to Driverless Car Testing . . . 22 SeaTac, WA, Attempts To Get in Front of Autonomous Technology . . . . . . . . . . . . . . . . 6
Anderson - Toyota’s Training Website Offers Free Information for Collision Repairers . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Attanasio - Industry Veteran Creates Vintage Wine Furniture . . . . . . . . . . . . . . . . 60 Attanasio - PPG’s Jennifer Jarzembowski Discusses Impact of OEM Certifications . . . 38 Ledoux - The Fabulous ‘50s and Mr. O’Donnell’s Invention. . . . . . . . . . . . . . . 32 Phillips - 5 Key Steps to Implementing Practical Production Processes . . . . . . . . . . 58
AAPEX 2018 Announces Best Booth
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli, Gary Ledoux Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bill Pierce Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Rochelle Beckel Accounting Manager: Heather Priddy Editorial/Sales Assistant: Randi Scholtes
Serving Alaska, California, Hawaii, Idaho, Montana, Nevada, Oregon, Washington and Wyoming. Autobody News is a monthly publication for the collision industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2018 Adamantine Media LLC.
Anchorage Chrysler-Dodge-Jeep-Ram . . . 22
Industrial Finishes and Systems . . . . . . . . 41
Audi Wholesale Parts Dealers . . . . . . . . . . 65
Kearny Mesa Subaru-Hyundai. . . . . . . . . . 43
AutobodyLaw.com . . . . . . . . . . . . . . . . . . 32
Kia Motors Wholesale Parts Dealers. . . 56-57
AutoNation Chrysler-Jeep-Dodge-Ram-Fiat. 34
Kia of Carson . . . . . . . . . . . . . . . . . . . . . . 46
AutoNation Collision Parts . . . . . . . . . . . . . 13
Launch Tech USA . . . . . . . . . . . . . . . . . . . 71
Axalta Coating Systems . . . . . . . . . . . . 2, 11
Mazda Wholesale Parts Dealers . . . . . . . . 66
BMW Wholesale Parts Dealers . . . . . . . . . 67
Maxtrix Automotive Finishes . . . . . . . . . . . 31
Capitol Subaru . . . . . . . . . . . . . . . . . . . . . 72
Mercedes-Benz . . . . . . . . . . . . . . . . 5,23,33
Chevrolet of Anchorage. . . . . . . . . . . . . . . 42
Mercedes-Benz Wholesale Parts Dealers . . 64
Chicago Pneumatic Compressors . . . . . . . . 6
MINI Wholesale Parts Dealers . . . . . . . . . . 66
Chrysler-Dodge-Jeep-Ram of Seattle . . . . 49
Mitsubishi Wholesale Parts Dealers. . . . . . 68
Classifieds . . . . . . . . . . . . . . . . . . . . . . . . 70
MOPAR Wholesale Parts Dealers . . . . . . . . 39
Colortone Automotive Paints . . . . . . . . . . . 24
Moss Bros. Chrysler-Jeep-Dodge . . . . . . . 15
Courtesy Chevrolet San Diego. . . . . . . . . . 48
Nicolosi Distributing, Inc . . . . . . . . . . . . . . 28
Cutter Chrysler-Dodge-Jeep-Ram. . . . . . . 30
Nissan/Infiniti Wholesale Parts Dealers . . . 59
Dave Smith Motors . . . . . . . . . . . . . . . . . . 47
Pacific Best, Inc. . . . . . . . . . . . . . . . . . . . . . 8
DCH Auto Group Temecula . . . . . . . . . . . . 26
Penske Hyundai . . . . . . . . . . . . . . . . . . . . 52
Del Grande Dealer Group. . . . . . . . . . . 20-21
Polyvance . . . . . . . . . . . . . . . . . . . . . . . . . 18
Jumps 47% Over Past Year . . . . . . . . . . . . . 64
Dent Magic Tools . . . . . . . . . . . . . . . . . . . 16
Porsche Wholesale Parts Dealers . . . . . . . 60
PPG to Acquire SEM Products, Inc. . . . . . . . . . 44
Dominion Sure Seal . . . . . . . . . . . . . . . . . 27
Puente Hills Subaru . . . . . . . . . . . . . . . . . 58
Downtown Motors of LA (Audi, VW) . . . . . . 55
RBL Products . . . . . . . . . . . . . . . . . . . . . . 25
ECS Automotive Concepts . . . . . . . . . . . . . 38
Riverside Kia. . . . . . . . . . . . . . . . . . . . . . . 40
Winners . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Enterprise Rent-A-Car. . . . . . . . . . . . . . . . 44
Robaina Industries, Inc . . . . . . . . . . . . . . . 45
Sherwin-Williams Joins CIECA . . . . . . . . . . . . . 6
Equalizer Industries, Inc. . . . . . . . . . . . . . . 35
SATA Dan-Am Company . . . . . . . . . . . . . . 17
First Auto Group . . . . . . . . . . . . . . . . . . . . 50
Sherwin-Williams Automotive Finishes . . . . 7
Ford of Kirkland . . . . . . . . . . . . . . . . . . . . 49
Sierra Chevrolet-Honda-Subaru . . . . . . . . 54
Ford Wholesale Parts Dealers . . . . . . . . . . 63
Spanesi Americas . . . . . . . . . . . . . . . . . . . 10
Galpin Motors . . . . . . . . . . . . . . . . . . . . . . 51
Subaru Wholesale Parts Dealers . . . . . . . . 61
Glenn E. Thomas Dodge-Chrysler-Jeep . . . . 9
Symach . . . . . . . . . . . . . . . . . . . . . . . . . . 14
GM Wholesale Parts Dealers . . . . . . . . . . . 69
Tacoma Dodge-Chrysler-Jeep-Ram . . . . . 29
Honda-Acura Wholesale Parts
The Bay Area Automotive Group . . . . . . . . 53
Award Winners . . . . . . . . . . . . . . . . . . . . . . 11 AutoNation Embarks on New Parts Path . . . . . 66 AutoNation Launches New Theme Vehicle for Breast Cancer Awareness . . . . . . . . . . . 66 Autonomous Vehicles May Hit U.S. Roads Under Pilot Project . . . . . . . . . . . . . . . . . . . . 4 AWAF Workshop Focuses on Finance, Accounting for the Non-Financial Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Collision Industry Author Donates First Funds . . 8 CREF Fundraiser Co-Hosted by PPG Raises $130,000 . . . . . . . . . . . . . . . . . . . . . . . . . . 68 CREF Receives $100,000 Donation
Fake Recall Notices Get Car Dealers in Trouble With FTC . . . . . . . . . . . . . . . . . . . . . 67 How Safe Is a Collision-Repaired Police Vehicle? . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Number of Flooded Cars on the Road
Thieves are Stealing Airbags From New Honda Civics and Accords . . . . . . . . . . . . . . 68 Trump’s EPA Rattles Self-Driving Car
Teaches Body Shop Owners Another
Industry by Picking ‘Winners and
Way of Conducting Business . . . . . . . . . . . . 46
Losers,’ Critics Claim . . . . . . . . . . . . . . . . . . 4
How To Develop a WINner’s Mindset . . . . . . 40 Sisk - RDA 2018 IMPACT Performance
Autobody News P.O. Box 1516 Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com
SEMA Announces New Product Award
Sisk - CCRE’s Fall Seminar & Convention
Sisk - Dave Luehr Teaches WIN Members
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Conference Breaks Attendance Records . . . 34
INDEX OF ADVERTISERS
REGIONAL
WIN Announces Opening of Most Influential Women Nominations . . . . . . . . . . . . . . . . . . 62
Dealers . . . . . . . . . . . . . . . . . . . . . . 36-37
Vintage Flatz/Cumberland Products . . . . . 19
Hyundai of Kirkland. . . . . . . . . . . . . . . . . . 49
Volkswagen Wholesale Parts Dealers . . . . 60
Hyundai of Seattle . . . . . . . . . . . . . . . . . . 49
Volvo Wholesale Parts Dealers . . . . . . . . . 68
Hyundai Wholesale Parts Dealers . . . . . . . 62
YesterWreck . . . . . . . . . . . . . . . . . . . . . . . 12
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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Trump’s EPA Rattles Self-Driving Car Industry by Picking ‘Winners and Losers,’ Critics Claim by Joe Williams, Washington Examiner
Critics are blasting a new Environmental Protection Agency rule that they claim breaks the Trump administration’s commitment not to arbitrarily pick winners and losers in the self-driving car market. Tucked into the EPA’s proposed Safer Affordable Fuel-Efficient, or SAFE, Vehicles rule released in August is language that would give companies credit toward emissions standards for producing cars that include vehicle-to-vehicle communication capabilities—technology that allows autonomous cars to exchange speed and position information with each other to prevent accidents. The EPA and the National Highway Traffic Safety Administration are suggesting that the credit, which might be granted without a requirement for corroborating evidence that the technology reduces carbon dioxide output, be tied to a car’s ability to transmit data using dedicated shortrange communications, or DSRC, which relies upon a specific wireless spectrum to blast out signals. Shortly before President Trump
was sworn into office, the Obama administration released a controversial draft rule mandating that DSRC be used in autonomous cars. The Trump administration reportedly shelved the proposal, and some manufacturers are starting to use cellular communication instead, which proponents argue is more reliable and has a longer range. Companies such as Audi and Ford have embraced the technology and demonstrated it in vehicles earlier this year. Toyota and General Motors, meanwhile, have adopted DSRC, though it’s unclear why that system was chosen by the EPA. Neither manufacturer responded to inquires about whether it had lobbied for the provision. GM, which offered dedicated short-range communications in some 2017 Cadillac sedans, pledged in July to expand it to other vehicles. Other manufacturers such as Tesla and Mercedes-Benz raised concerns over the technology’s security vulnerabilities, however, and critics of the EPA proposal say the Department of Transportation, which encompasses the traffic safety administration and has repeatedly stressed that it would
take a technology-neutral approach to regulating self-driving vehicles, is reneging on its commitment. “If they were to go forward with this, this would violate the [agency’s] pledge to technology neutrality,” Marc Scribner, senior fellow at the Competitive Enterprise Institute, told the Washington Examiner. “What they are doing is picking technology winners and losers.” That might be happening at the expense of better, safer options. “It creates, inadvertently, technological lock-in,” Ryan Hagemann, senior director for policy at the Niskanen Center, said in an interview. “You are more likely to simply rest on your laurels and default to what the standard is rather than trying to improve on top of it.” Scribner said the provision could also spur other companies to “lobby to try to gain similar favors in the future for their particular technologies” and anger environmentalists who were already critical of the data EPA used to justify credits. “It could wind up putting a big target on the entire program’s back,” he said. The EPA directed inquiries to
Autonomous Vehicles May Hit U.S. Roads Under Pilot Project by Mario L. Major, Interesting Engineering
The U.S. DOT and NHTSA, two key agencies involved in the automotive industry, are both making efforts to be more inclusive of the emerging autonomous car industry.
Credit: Pexels
Autonomous cars, self-driving cars, unmanned cars, driverless cars ... Whatever we choose to name them, they are entering our lives in unprecedented numbers, with almost every major car company in the world dramatically stepping up efforts to enter the market or laying out concrete plans to do so via the ever-effective concept car unveilings. Although it is clear that the industry is on board with developing 4
autonomous vehicle technology, it is equally important to have healthy engagement and support from local governments. For this reason, the recent announcement of an autonomous vehicle pilot program being considered by the Trump Administration is drawing attention. According to the National Highway Traffic Safety Administration (NHTSA), the powerful agency that serves as the final authority on deciding which vehicles get to hit the roads in the United States, it is behind the initiative. In the report on the program, which calls for collaborative research with the U.S. Department of Transportation (U.S. DOT), the agency indicated the program was developed to understand “how best to foster the safe development and implementation of ADS vehicle technologies on our nation’s roadways.” This move also coincides with the announcement of a new set of vehicle safety ratings. The NHTSA already has in place a clear set of the six levels of driver assistance tech-
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
nology advancements, which is another endorsement of the technology, but this new program would play a big role in helping reduce some of the technical obstacles (lack of pedals or steering wheels), which seem to place heavier restrictions on automated car use. Agency Support Is Shifting in the U.S. The support, though reserved, of the NHTSA represents a strong official endorsement of the growing influence of autonomous vehicles and more importantly, offers the symbolic meaning of government and industry coming together around this vital technology. It also helps to quiet the critics, lobbyists and various members of government who voice opposition to the vehicles based on concerns about safety. Another positive development is a U.S. DOT-supported effort to simplify the legal frameworks surrounding autonomous vehicles. The U.S. DOT provided an 80-page document titled “Preparing for the Future of Transportation: Automated Vehicles 3.0.” “The safe integration of automated vehicle technology into our transportation system will increase
the Department of Transportation, which referred inquiries to the traffic safety administration. That organization said it would carefully consider all comments before enacting a final rule. The Alliance of Automobile Manufacturers, which counts GM and Toyota as members, also supported DSRC. Executives at the group met with officials from the transportation department, the EPA and the Office of Management and Budget in June to discuss the SAFE Vehicles rule. A spokesman for the group was unaware whether the provision was discussed. “If those types of credits were brought up, they would have played a very minor role in the discussion,” he said in an emailed response to inquiries. While self-driving technology is an unconventional means of reducing toxic emissions from vehicles, it is effective, he added. “The agencies should incentivize the adoption of these technologies and provide for possibly additional credit,” he said. We thank Washington Examiner for reprint permission.
productivity, facilitate freight movement and create new types of jobs,” said Secretary Elaine L. Chao. The goal of the program is to (1) provide a framework for communication between industry and the U.S. DOT, (2) identify in greater clarity any existing policy issues and (3) create a blueprint of multi-modal safety that incorporates autonomous vehicles. The agency also makes clear its commitment to overhauling the language it uses in order to create standards that take into account the new technological reality of autonomous vehicles: “U.S. DOT will modernize or eliminate outdated regulations that unnecessarily impede the development of automated vehicles or that do not address critical safety needs. Whenever possible, the department will support the development of voluntary, consensus-based technical standards and approaches that are flexible and adaptable over time.” We thank Interesting Engineering for reprint permission.
www.autobodynews.com
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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ASA Northwest Chapters Hold Annual Lights-On Events by Chasidy Rae Sisk
During the month of October, ASA Northwest chapters held their Annual Lights-On events across Washington in support of National Car Care Month. The program was developed by ASA Northwest to improve vehicle and driving safety during the fall and winter months. Member shops volunteer to provide free vehicle inspections and are often assisted by local automotive technology students. Vehicle owners can also have faulty exterior bulbs and headlamps replaced or charged at no cost, with the exception of unusual or exotic installations. On Oct. 6, ASA Northwest’s Pierce County Chapter held its Annual Lights-On event at the South Hill parking lot behind Sears and Red Robin. According to Pierce County Chapter President Dan DeBusk, “We had a great turnout this year and no rain. About 30 volunteers came out to join us, including students from both Clover Park Technical College and Green River College, along with ASA shops.
“We could not have been so successful with this event without the help and sponsorship from Seattle Automotive Distributing for providing all the lights needed to help the public. We would like to thank LKQ Corporation for the sponsorship
The Whatcom Chapter inspected 105 vehicles
of our breakfast and lunch for the volunteers. Thank you to everyone who helped us make this event so successful.” The association’s Whatcom Chapter also held its Lights-On event on Oct. 6 in the Bellingham High School parking lot with around 30 people volunteering from eight shops, seven students from Bellingham Technical College, their in-
SeaTac, WA, Attempts To Get in Front of Autonomous Technology by Ted Land, KING 5
Carmakers and tech companies are racing to build self-driving vehicles, which they hope will transform the way people get around. The city of SeaTac, WA, sensing change is looming, started developing an action plan last year for deploying autonomous cars, trucks and buses on its roads. “We think that the industry would be interested in a place like SeaTac that’s easy to reach as a place to show their capabilities,” said John Niles, executive research director at the Seattle-based Center for Advanced Transportation and Energy Solutions. Niles helped the city develop the plan, which explores whether self-driving cars are feasible on its roads. “The city is not interested in being a test track or a lab center; what they’re interested in is understanding the applications of automated vehicles in the city that would benefit their citizens,” Niles said. One idea is to launch a selfdriving shuttle service to ferry com6
muters from bus and rail stations to neighborhoods within a few miles. The service could be a public-private partnership to help offset costs to taxpayers. “I don’t think new lanes need to be painted; a few traffic lights might need to be changed to give priority to these vehicles. These are vehicles that move no faster than 25–30 mph,” Niles said. The SeaTac City Council approved a measure Oct. 23 expressing support for autonomous vehicles. Niles said the team working on autonomous vehicles is talking with Tukwila and Des Moines about developing a similar framework. A state group is also hammering out a plan. The Autonomous Vehicle Work Group met Oct. 24 to talk about how to adjust the rules of the road, licensing and transportation infrastructure, anticipating that within a few years a lot of drivers will put their faith in a computer, transforming the way they get around. We thank KING 5 for reprint permission.
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
structor, two allied members and two representatives from Bellingham NAPA Auto Parts who supplied the bulbs. Whatcom Chapter representative Pete Harksell stated, “We had a wonderful day of sunshine with lots of help. We had vehicles lining up at 8:30 a.m., and we inspected the 105 vehicles that came through our lines between the hours of 9 a.m. and 1 p.m. with 73 of them needing bulbs. We replaced about 135 bulbs. “All in all, it was a good day [with] good food, lots of help and lots of cars. Wes Anderson provided lunch, and Wynns/WesMar supplied donuts and coffee for us along with gift cards for our students from BTC. April from AutoZone helped direct traffic, assisted in our advertising, arranged for a coat drop-off through the fire department and also donated gift cards to the students. Andy Jewell Insurance sponsored the radio show, ‘In The Shop,’ who were onsite for the first hour of our event, and Unifirst provided the shop coats. Thank you to all who helped.”
For more information about ASA Northwest, visit asanorthwest.com.
Sherwin-Williams Joins CIECA
Based in Cleveland, OH, the company manufactures and distributes a complete line of advanced technology paint and coating systems for the automotive refinishing industry. “We are thrilled to join CIECA and its efforts to create an eCommerce-enabled collision industry,” said Phil Matisak, global color marketing director, Sherwin-Williams Automotive Finishes. “The standards promoted by CIECA are integral to the industry’s efficiency, from customer service to data integrity and security. “We are at all times developing products, processes and tools to help our customers improve their efficiency and effectiveness. Color is a major part of who we are and what we do, and excellent color service often comes down to efficient communication. That’s why we and so many of our partners, including body shops, insurance companies and parts providers, support CIECA.”
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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Insurer Group Hammers Claim that CA Prop 103 Saved Drivers Billions by Staff, Insurance Journal
The insurance industry is taking exception to a new report commemorating the 30th anniversary of one of California’s primary auto insurance laws that claims the law has saved drivers billions of dollars. The Consumer Federation of America reported on Oct. 17 that Proposition 103, the insurance reform law passed by California voters in 1988, has saved drivers $154 billion on their auto insurance and that the law has lowered auto liability premiums in California by 5.7 percent since 1989, even as liability premiums rose across the rest of the country. Mark Sektnan, vice president of the Property Casualty Insurers Association of America, said it wasn’t Prop 103 that saved Californians all that money but other reforms that have been made since then. “California has a healthy and competitive auto insurance market despite Prop. 103,” Sektnan said. “The exorbitant liability and auto insurance costs plaguing California in the 1980s, which drove passage of Prop 103, were reduced through court de-
cisions, stronger highway safety laws, increased seat belt usage and safer car manufacturing. “No other state has adopted the same anti-competitive, restrictive regulatory system as Prop 103 since it was enacted in 1988.” According to Sektnan, insurers routinely work to keep auto insurance costs lower by advocating for
“California has a healthy and competitive auto insurance market despite Prop. 103,” — Mark Sektnan
auto safety laws, controlling liability costs and keeping auto body repair rates under control. “It is these actions to reduce underlying costs that have provided benefits to Californians, not Prop. 103,” he added. The CFA credited the savings and stability of rates to the provisions in Prop 103 that require insurance companies to justify and get approval for rate increases, allow the public to challenge unfair insurance company practices and excessive rates, and
Collision Industry Author Donates First Funds
While speaking before the most recent Collision Industry Conference held in Las Vegas, NV, announcing the official launch of his new book, YesterWreck: The History of the Collision Repair Industry In America, industry veteran and author Gary Ledoux stopped to call to the stage Brandon Eckenrode, director of development for the Collision Repair Education Foundation to present him with a check for $500 for the Chuck Sulkala NABC Appreciation Scholarship Fund. A portion of each book sold by Ledoux is earmarked for the fund. The book first went on sale on Sept. 12. The Sulkala scholarship program honors National Auto Body Council (NABC) founder and longtime Executive Director Chuck Sulkala, who retired earlier this year after a most notable career in the collision repair industry. The funds will help future collision repair technicians further their education. NABC is the premier organization of collision industry partners dedicated to strategic networking opportunities to positively promote the collision repair industry. 8
that made the insurance commissioner an elected post. Californians will elect a new insurance commissioner in November. “Three decades ago, California voters joined together with tens of thousands of small donations to put Proposition 103 on the ballot and pass it, despite an unprecedented $63 million campaign of lies and deception
“This industry is known for ‘giving back’ in so many ways,” said Ledoux. “I am proud to be able to do that in my own small way—by bringing the industry’s history to light and helping future industry technicians further their education.” Author Gary Ledoux has spent almost 50 years in the automotive business, starting at an auto parts – PBE jobber in his native New Hampshire. The last 29 years of his career were spent at American Honda. The last 12 of those years were spent on the collision side of the business, where, among other duties, he administered the OE’s body shop certification program. Ledoux retired in October 2017 and now works part-time as a freelance journalist. His book is available through his website at www.yesterwreck.com.
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DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
by the insurance industry,” Harvey Rosenfield, the author of Proposition 103 and the founder of Consumer Watchdog, said in a statement. “$154 billion is a 30th birthday gift from Prop 103 to the people of California, rewarding a battle against insurance company overcharges and abuses that has been waged every day for the last three decades.” The CFA study showed that: •
Californians have saved $154
billion, or $6 billion a year, since Prop 103 took effect in 1989 compared to what premiums would have been had they followed the national average growth rate.
• Auto insurance liability premiums, excluding comprehensive and collision coverage, went down 7 percent in California since 1989; during the same period, liability premiums went up 58.5 percent nationwide. • Californians spent just $93.48 more on auto insurance in 2015 than they did in 1989; nationwide drivers spent $352.71 more. Proposition 103 was passed by California voters on Nov. 8, 1988. Among other provisions, Prop 103 requires that auto insurance rates be based primarily on a driver’s safety record, miles driven and driving experience. It requires all automobile rating factors be approved by the California Department of Insurance and prohibits rating factors like credit score, ZIP code and race. We thank Insurance Journal for reprint permission.
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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Continued from Cover
MSO Seeks Help
to help,” Von Tress wrote in his GoFundMe description. Von Tress wrote that the shop employs members of eight families who lost everything in the devastating fire. By Nov. 12 at 10:45 a.m. ET, the Camp Fire had burned 113,000 acres and was 25 percent contained. It destroyed 6,453 residences and 260 commercial structures and threatened 15,500 locations. “I have donated to each of them and will continue to support payroll, but I can’t do this all by myself,” Von Tress wrote. “I’d love to help them meet their immediate need or for those with no insurance to make an effort to restore their lives. Please help me make a difference and show these people we are here to help.” He vowed to donate “100 percent of these funds” to the victims. “If we could raise these funds this week, I’m sure it could change lives,” Von Tress wrote. Von Tress also planned to post a list of other items the families might
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need. “I’m trying to help the employees through stuff,” Von Tress said in an interview Nov. 12. The business itself is struggling too. Von Tress said he has discovered “we’re grossly underinsured” on the shop’s contents and learned that his landlord let the insurance lapse on the structure. “There’s no building anymore,” he said. The shop had only purchased the facility (formerly known as Classic Auto Body) two years ago, according to Collision Pros’ website. Even if Collision Pros were to rebuild, the fire also took away its customer base, Von Tress said. “Nobody lives there” following the fire’s devastation—nor would they for years, Von Tress said. “It’s just a horrible situation,” he said. His employees’ tools were all contained within the facility. “There was no getting anything out,” he said. Representatives delivering the evacuation order said occupants couldn’t gather their things. Von Tress said he’s attempting to
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
wade through the insurance situation and wasn’t sure if his employees’ tools were covered or if working at another Collision Pros facility would affect their claims. Even if the staff were transferred to another Collision Pros, it would mean the site’s regular employees would lose hours, he noted. “We’ll keep ‘em on payroll somehow,” he said. He said seven of the families were confirmed to have lost houses in either Paradise or nearby Chico, CA. The eighth likely did as well, but the more rural location of the home prevents the employee from confirming the loss, according to Von Tress. Three of the families were renters and lacked renter’s insurance, he said. The other five were insured but don’t know how fully they’ll be covered, according to Von Tress. Either way, the loss inevitably “costs something,” he observed. The shop has given each family a $1,000 gift card to buy necessities, and Von Tress’ church has also responded to help donate clothes and diapers and take the children shopping for toys.
Von Tress said his shop handles the vast majority of the business in the area, but three other smaller collision repair facilities also serve the market. He said he assumed his competitors’ were destroyed as well. Their people and other individuals with ties to the collision industry might need help after both the Camp Fire and the Woolsey Fire in Southern California, though CIF board member Michael Quinn (AirPro) said Nov. 12 that Von Tress was the only one to have reached out at that point. The Woolsey Fire has burned 91,572 acres and is only 20 percent contained as of 12:29 p.m. ET Nov. 12. At least 370 structures have been destroyed—only 15 percent of the damage has been examined—and 57,000 threatened by the fire. CIF is a good resource for donors and victims of shops lacking Von Tress’ initiative or employee support. CIF memorably contributed about $250,000 in donations and helped about 150 households following Hurricane Katrina in 2005. It provided more than 80 tool sets during that storm—often more important than other donations, as technicians
felt, “‘If I had tools, I could work,’” according to board member Jordan Hendler (Washington Metropolitan Auto Body Association). Those affected by disasters such as the California fires or this year’s hurricanes can request aid themselves online, email collisionindustry foundation@gmail.com or call 855-424-3243 or 804-427-6982. Donate to CIF at https://www .collisionindustryfoundation.org/ donate.html. Also, don’t forget that the Collision Industry Foundation is on Amazon Smile. If you designate them as your charity and buy products on smile.amazon.com instead of the regular Amazon website or the app, the retail giant will donate a little bit to the foundation every time you buy one of millions of designated products. We thank Repairer Driven News (www.repairerdrivennews.com) for reprint permission.
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AAPEX 2018 Announces Best Booth Award Winners AAPEX 2018 presented its new Best Booth Awards to nine exhibiting companies during a ceremony on Wednesday, Oct. 31, at this year’s event in Las Vegas, NV. Premiere specialists from different parts of the exhibition industry toured the show floor during AAPEX to select the winners using design, exhibition best practices and staffing as the criteria. Judges were Kimberly Hardcastle Geddes, CEM, president, Marketing Design Group; Dana Freker Doody, vice president, Communications and Strategic Client Solutions, The Expo Group; and Nancy Drapeau, PRC, senior research director, CEIR – The Center for Exhibition Industry Research. Bill Hanvey, president and CEO of the Auto Care Association, and Bill Long, president and COO, of the Automotive Aftermarket Suppliers Association (AASA), presented the awards. The two Best of Show awards went to Ullman Devices, booth 856, 10 x 10 or Linear - Both Levels; and Gates Corporation, booth 4038, Peninsula or Island, Both Levels. Winners also were announced in the following categories:
■ Best 10 x 10 Booth - Level 1: Korea Ocean Biocluster, booth 7606, for good use of color and branding, integration of technology, and a friendly and on message booth staff,
■ Best Linear 200 sq. ft. or more Booth - Level 1: BG Automotive, booth 7638, for product displays on outside periphery, attention-grabbing display, good use of space and incorporating their product and meeting area,
■ Best Small Peninsula (under 800 sq. ft.) - Level 1: Zhejiang Master Injection System Co., Ltd., booth 10046, for cohesive branding, strong color, good use of signage, lighting and multidimensional booth, ■ Best 10 x 10 Booth - Level 2: BTS Industries, booth 4545, for good lighting, well-organized product, efficient use of space, and attentive and engaging booth staff,
■ Best Linear 200 sq. ft. or more Booth - Level 2: Ullman Devices, booth 856, for seamless visuals with effective branding, smart integrated use of product demo, and engaged
and energetic booth staff,
■ Best Small Peninsula (under 800 sq. ft.) - Level 2: Norma Group, booth 5546, for clear communication of the value proposition and key messages, use of color, lighting, florals and product display,
■ Best Large Peninsula (over 800 sq. ft.) - Both Levels: MYCHANIC, booth 1871, for good signage, multiple levels, placing attendees in a familiar-feeling environment conducive for doing business, good use of color and strong branding, ■ Best Small Island (under 800 sq. ft.) - Both Levels: Sampa Otomotiv, booth 42015, for artfully highlighting products, natural elements, lighting and floral work that creates an exquisite environment for attendees,
■ Best Large Island (over 800 sq. ft.) - Both Levels: Gates Corporation, booth 4038, for an inviting kinesthetic and three-dimensional display, good use of technology with a virtual reality (VR) component and actual product, plus signage that incorporates the company’s employees.
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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Continued from Cover
Legislative Roundup
that CAA worked on this year, along with BAR activity. AB 2276 (Burke). Labor Rate Surveys. Oppose. The bill allows insurers to conduct “alternative labor rate surveys” but eliminates important standards set forth in Department of Insurance regulations that produce consistent, accurate and reliable labor rate survey results and instead allows insurers to skew the results in a manner that would suppress market rates. It died on the Senate floor, but is expected to be reintroduced next year. “This was the biggest bill of the year for CAA and the one we really worked hard to defeat,” Molodanof said. “The insurers were trying to create alternative labor rate surveys, but the way they drafted the bill, it would have led to a whole new set of problems. CAA stepped up and took an active role fighting this one, and that helped to defeat it. This was a reintroduction of a bill from last year, and we’re fairly confident that it will be coming back in one form or another next year, but we’ll be prepared if and when that happens.” AB 2825 (Jones-Sawyer). Debt Collectors. Oppose unless Amended. The bill treats auto repair shops, including body shops, as “debt collectors.” Customer communications would be regulated and would potentially subject shops to strict liability, fines and frivolous lawsuits. Status: The bill died in the Senate Appropriations Committee but is expected to be reintroduced next year. “This one is definitely going to come back next year in some form or another,” Molodanof said. “The bill was very complicated [and] farreaching with many unintended consequences. It would have treated the industry as debt collectors. Auto repair businesses are not debt collectors; they service and repair vehicles for their customers. It’s good that it was defeated because otherwise it would have turned the industry upside down.” AB 3141 (Low). BAR. Support. This bill would include currently exAUTOBODY
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empted maintenance service providers under BAR jurisdiction while maintaining oil changers’ business model. The bill also does not require a written estimate for preventative maintenance services as defined, if certain conditions are met. Status: Approved by governor.
“Any company that does even minor services now has to be registered with BAR, which is good for consumers and the automotive industry,” Molodanof said. “We supported this bill because it protects consumers by unifying the automotive maintenance and repair industry in the state under the jurisdiction of BAR while preserving access to cost-effective preventative maintenance services.” AB 2908 (Berman). Tire Regulatory Fee. Oppose. The bill gives CalRecycle the ability to create a new tire fee up to $1, on top of the current $1.75 per tire fee already charged. The bill was amended to allow a tire retailer to separately charge the new fee on the invoice. Status: Vetoed by governor but expected to be reintroduced next year. “CAA opposed the bill because CalRecycle has a surplus, so they don’t need the money,” Molodanof said. “We believe that recycling tires is a good thing and that the current $1.75 per tire is fair; there is no justification for giving CalRecycle the ability to add a new tire fee. CalRecycle should spend its existing money responsibly rather than impose a new tire fee on consumers.” AB 2392 (Santiago). Vehicles: Towing and Storage. Neutral. This bill requires all towing and storage fees to be reasonable and establishes criteria and presumption for reasonable towing and storage fees. Status: Approved by governor.
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DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
“This bill was in reaction to the fact that some towing and storage facilities were gouging people,” Molodanof said. “We heard stories where people were illegally parked and their cars [were] towed, and when they went to get them out, it cost $2,000 more, which was ridiculous. We had some concerns with the bill and wanted some amendments made to it, so we were neutral on it, but it did pass.” SB 993 (Hertzberg). Sales Tax: Services. Oppose. This bill is intended to make major tax reforms, including expanding the sales tax to services. A series of hearings on the measure are being planned that will include experts to do a “deeper dive” into the issue of taxing services. Status: The bill is dead for the year but expected to be reintroduced next year. “This one comes back every year, and we continue to oppose it,” Molodanof said. “It died again, but it will be coming back and we will fight it again. If this passed, it would definitely hurt the collision repair industry. Cars that are now repairable would be tipped over into the total loss category and increase the cost of
fixing cars significantly. In California, we used to make things, but now we’re a service industry and they’re losing that tax base as a result. They want to recoup some of that money by taxing services like some other states do, but we fight it every year and will continue to do so.” Electronic Documents and Authorization Approved. The BAR. Support. Electronic estimate and invoice authorization regulations took effect on Sept. 13, 2018. The regulations allow for electronic estimates and authorizations, transmission and storage of repair transaction documents; reorganization of estimate, work order and invoice provisions to more closely align with automotive repair transactions; and clarification of language as necessary. “This is a good thing because now electronic signatures and other electronic communications such as text message from consumers are legal and binding and help streamline the repair process,” Molodanof said. “It’s a faster and more convenient way to get customer authorization, and that’s a big reason why CAA supported it.”
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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After the Donation: SF Skate Club’s Donated Car Is Still Rolling Along by Ed Attanasio
Back in 2014, Regal Collision in Vallejo, CA, presented a completely refurbished van to the San Francisco Skate Club that is still running strong. The organization had been using a van that was barely hanging on, so when Regal Collision stepped up to provide a “new” one four years ago, it meant a lot to the children of the SF Skate Club and one of its founders, Shawn Connolly. Connolly, a former professional skateboarder who operates the nonprofit organization with his wife, Thuy Nguyen, is impressed with the vehicle’s longevity after putting more than 120,000 miles on it. “It’s pretty amazing, that’s for sure,” he said. “For the first two years, we let the Booker T. Washington Community Service Center use it during the week, taking students to and from school every day, so it got a lot of use. And then on the weekends, we used it for our skating events and Bay Area camps during the summer. Countless kids have been transported in the van, and it’s still hanging in there.” The San Francisco Skate Club strives to provide a safe, positive and Continued from Cover
OEM Summit
enough to cover the [Subaru] unitsin-operation in this country, so we will have to depend quite heavily on independent collision centers.” She said the requirements for the program—including KPIs that Subaru will be monitoring—are “relatively stringent” but do not include being sponsored by a dealership.
Mark Zoba of Nissan North America said that about 1,900 shops are in or have applied for the automaker’s certified collision shop program, but Nissan needs only about 1,650 shops in the program
“That was a very intentional decision,” she said. “As long as there are enough units-in-operation to go around, to make it worth being a certified collision center, we want any14
fun environment for youth of diverse backgrounds to pursue their passion or desire to skateboard, meet and form friendships with other young skaters at the SF Skate Club and learn from experienced skateboarders who are role models in the community.
“I know that Regal Collision has given away a lot of vehicles to deserving people over the years, but I would bet that our van has been utilized more than any of the others,” Connolly said. “Now we are loaning it to an organization called FACES SF that helps low-income families with things like early childhood development, workforce training, enrichment programs for kids and family support services.” By staying on top of its maintenance, the van has only required a little TLC due to considerable wear and tear, Connolly said.
one qualified who wants to raise their hand to be able to join. We want the best people on this initiative.” She said Subaru is working to ensure its “Starlink” vehicle telematics system will be integrated with the certified shop program to “make sure our customers feel the ‘Subaru love’ when they’ve been in a crash [and] have the help and guidance they need to get their car fixed to the way it was when they bought it.” Dealership shops, she said, will not be given priority over independents in the program when customers are told about certified shops. “There’s nothing in any kind of contract that says that dealers get first dibs,” Riedel said. “We’re doing it by proximity. And in the event that you [and the dealer are] both exactly 4.125 miles from [the customer], we’ll have to figure out what that secondary plan is to break that tie. But I imagine that will be more about your KPIs rather than whether you’re a Subaru retailer or not.” To request information on the program, send an email to info@ subarucertifiedcollision.com. See OEM Summit, Page 26
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
“The crew at Regal gave us a vehicle that was in amazing mechanical condition,” he said. “We had to fix a door and do a few minor mechanical things, but other than that, it’s been mostly minor upkeep. Regal Collision put off-road tires on the van, so we’re still using the same tires, and the vehicle has easily passed two smog checks as well.” Connolly still looks back on the day when the shop presented him and his young skateboarders with the van. “Traveling to Regal Collision from San Francisco with all the kids was a bonding experience and special for the children,” he said. “When the kids saw the van, their eyes got big and they were so thrilled. For the past four years, we have had good, reliable and safe transportation, and the van is now a part of the family. We want to personally thank Jim and Shellie Boyle for this incredible donation!” Co-owner Jim Boyle at Regal Collision has given away many cars over the years, but this one really stands out for a lot of reasons, he explained. “Once I met the kids, my initial thought was, ‘I want to help them succeed in any way I can.’ Skateboarders are artistic and adventurous and could be future technicians, so there was a
connection right away. I’m so happy to hear that the van is still going strong and that they’ve gotten so much use out of it. It has touched a lot of lives and enabled them to do things they might not have been able to do without the transportation, and that’s exactly what our mission is with our Benevolence program,” he said. To emphasize the stylish aspect of the van, the techs at Regal Collision, led by Production Manager Kirk Kapfenstein, added some nice touches to the vehicle, including red bumpers, pinstripes, cool rims and the organization’s motto painted on the van: “Skate with a Friend.” The van came along at the perfect time, Connolly said. “Our old van had reached the ‘classic’ stage, so this refurbished vehicle is a real plus for the SF Skate Club. The people at Regal Collision are amazing, and we couldn’t be more grateful,” he said. The van giveaway was part of the AkzoNobel Benevolence Program, a community relations program that generates goodwill at the local level while improving and promoting the image of the collision repair industry as a whole.
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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Annual Career-Technical Education Roadshow Drives Into Sandpoint, ID by Mary Malone, Bonner County Daily Bee
More and more emphasis is being placed on career-technical education, which provides students with handson skills to better prepare them for future careers. The more that students learn about these CTE programs, the more aware they become of the options out there. That’s why Sandpoint High School has made hosting the North Idaho College CTE Roadshow an annual event. Friday, Oct. 12 marked the third year of the event.
Area students learned about all sorts of careertechnical education opportunities Oct. 12 during the North Idaho CTE Roadshow at Sandpoint High School. Credit: Mary Malone
“The more exposure they have to it, the more likely they are to understand more each time they see it—what the careers will entail, and especially what the education would entail to gain the career,” said Malia Meschko, event organizer and computer-aided design instructor at SHS. NIC representatives travel to different schools each year to introduce the different CTE programs available at the college. Some of those programs include diesel mechanics, aerospace technology, carpentry and construction, computer-aided design and more. Friday’s roadshow was attended throughout the day by students from SHS, as well as Priest River Lamanna High School, Clark Fork High School and Sandpoint Middle School. For some students, the roadshow can help guide them on a career path. For others who know the area of study they plan to focus on, like SHS junior Angalee Smith, the roadshow also includes information on programs for just about any career. Smith said she plans to go into the medical field as a psychologist or surgeon. In the meantime, Smith was enjoying some of the hands-on activ16
ities available at the roadshow. “I got to paint an imaginary car door, and that was super trippy—it was so cool,” Smith said. Smith was referring to a virtual reality paint simulation, which students got to try out courtesy of the NIC collision repair program. Mike Huber has been in the collision repair program for three months and said the class does everything from painting to body repair, as well as some mild mechanical work. The students spend about a month learning to paint virtually before being trained on the real thing, he said, which is saving the college money in the long run. The college purchased the virtual reality paint sprayer for $25,000 and is now in its second year of using it. NIC saved more than $6,000 in product last year, Huber said. “Give it a few years, and it will pay for itself,” Huber said. It is about 97 percent accurate compared to real-world application, he said. The one thing that Huber said is not accurate is the weight of the gun because paint levels will vary in real life, changing the gun’s weight constantly. The spray patterns, however, are exactly the same as in the real world, he said. Cyrus Mimbs, a junior at SHS, said that while it wasn’t fully realistic, he didn’t expect the virtual reality painting to be as realistic as it was. “Surprisingly, you can’t really tell anything outside of it—you can only see what is going on in there,” Mimbs said. Mimbs said he found the roadshow interesting because he is currently taking a computer-aided design class and plans to go into an engineering field, though he has not chosen a specific career yet. “It really showcases a lot of different careers,” he said of the roadshow. CTE can also foster lifelong learning and teaching. Dominic Acia, for example, is a student in the NIC computer-aided design program. Acia spent 12 years in the military in a nuclear power program, he said, which included two years of education that was “the most intense” schooling and training. While he received indepth training on chemistry, thermodynamics, physics and more, he said
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
it was very specific to nuclear power plants. Then, when he got out of the military, Acia said he started a business centered on building race cars. “I saw all these holes in the market where I felt like products could be improved or redesigned,” he said.
Local students learned the technique of plastic welding during the North Idaho College CTE Roadshow at Sandpoint High School. Credit: Mary Malone
“I had a bunch of designs on paper or in my head, and I was hiring people to put them into the software system ... Well, my designs kept getting stolen.” Rather than continuing to rely on others, Acia decided to go to NIC in January 2016 for degrees in physics,
education and mathematics and is currently a half-semester into the computer-aided design program. He talked to students about 3D printing and the program on Friday. Alex Gray, SHS instructor and CTE coordinator for the Lake Pend Oreille School District, was one of the initial organizers of the roadshow when it came to SHS in 2016. The idea, Gray said at the time, had come up during a conversation on an airplane. The goal was to bring hands-on experiences to the students, while also giving them an opportunity to meet with some of the instructors and students in the CTE programs. Since its inception, the roadshow has expanded to include new technology each year, such as the virtual reality painting. “I think this is an awesome opportunity for our kids,” Gray said as he looked around at the bustle of activity in the gymnasium on Friday. “And hats off to Malia Meschko, who put this whole thing together— it would not be possible without her.” We thank Bonner County Daily Bee for reprint permission.
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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Continued from Cover
Price-Fixing Claims
action. The body shops in the MDL are in Kentucky, Missouri, New Jersey and Virginia. Although there are certain variations in the individual complaints, in general they allege the insurers have all agreed to follow a market rate established by State Farm, which is accused of using a method of ranking body shops by criteria, including number of employees, number of work bays and area density, which it then “manipulates” as it solicits businesses to be part of its direct repair program. If a body shop in the program tries to charge rates higher than those demanded by State Farm, they are met with an “ongoing pattern of coercion and implied threats” to enforce compliance, according to court filings. Shops not complying are dropped from the program, and customers are “steered” away by the insurer. In 2016, the five complaints at issue were dismissed for failure to state a claim, but a split panel re-
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versed that ruling last year. The majority opinion was written by Judge Charles Wilson with the concurrence of Washington Western District Judge Barbara Rothstein, sitting by designation. Judge R. Lanier Anderson dissented. According to Wilson’s opinion, the complaints claimed that State Farm and the other defendants used unverified and manipulated market rates to depress costs. “They use tactics such as requiring a body shop to repair a faulty part rather than installing a replacement part, even when the shop strongly recommends against continued use of the faulty part; requiring a shop to install a used or recycled part, even when a new part is available and would be best; and requiring a shop to offer discounts and concessions, even if doing so will force the shop to operate at a loss,” Wilson wrote. The opinion noted that claims of horizontal price fixing based on inferred agreements rather than evidence of such deals must be bolstered by other evidence, or “plus factors.” Among those cited by the plaintiffs were routine notices from the other in-
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
surers that they would not pay any more for repair work than State Farm paid. Anderson said in a dissent that he agreed the described behavior might be “objectionable,” but that didn’t make it illegal. “With regard to the antitrust claims,” he wrote, “binding case law indicates to me that the allegations of these complaints do not give rise to the necessary reasonable inference of agreement or conspiracy and, therefore, fail to state a claim.” On Oct. 23, attorney Mark Shurtleff represented the lead plaintiff, Quality Auto Painting Center of Roselle Inc., along with colleague John Eaves of John Arthur Eaves Law Offices in Jackson, MS. Shurtleff began by arguing that the complaining body shops were acting in the best interest of their customers, while “the others’ loyalties lie with the insurance companies.” Several judges were skeptical, with Chief Judge Ed Carnes asking how the insurance companies’ behavior in matching each others’ rates was any different from other businesses.
“It happens in about every case,” said Carnes. “One raises it, they all raise it.” Shurtleff pointed to the “uniformity of prices” demanded by the insurers, noting that uncooperative body shops were targeted for criticism and boycotted. Judge Stanley Marcus wondered whether commonplace business activity, such as an insurer recommending one shop and disclaiming another, was enough to “nudge your case across the line” into illegal price fixing. Under questioning, Shurtleff agreed that the insurers did not necessarily prohibit their policyholders from utilizing a particular shop and that simply showing that the prices demanded by State Farm and then demanded by other carriers did not necessarily prove collusion in itself. The insurers were represented by three lawyers: Alston & Bird partner Michael Kenney for State Farm, Dentons partner Rick Fenton for Allstate, and Daniel Goldfine of Lewis Roca Rothgerber Christie for GEICO. The defense lawyers argued there was no direct evidence showing the See Price-Fixing Claims, Page 27
Jeff Allen Builds Unique Vehicle for SEMA Memorial Scholarship Fund
ation of automotive aftermarket industry leaders and innovators. “The V06 isn’t the normal classic Jeff Allen, owner of Flat 12 Gallery, debuted his newest one-of-a-kind car build. I wanted to do something vehicle at the Shell “Pioneering Per- special—never-been-done-before— formance” Pavilion at the 2018 SEMA for the SEMA Memorial Scholarship Fund,” Allen said. “This is a car that Show in Las Vegas, NV. makes you look twice but can also perform like a beast. Our test drives have been phenomenal.” Over the last few months, Allen’s Flat 12 Gallery team transformed the Volvo 122’s 85HP performance level into a 600HP beast that makes full use of the Pennzoil Synthetics under the hood, a Lingenfelter Built LS7, The V06 is a one-of-a-kind vehicle that combined a 1963 Forgeline Wheels and Baer Volvo 122S Amazon with a 2013 Grand Sport Corvette Brakes. from Copart. It was unveiled at the Shell “Pioneering After a cross-country tour, Performance” Pavilion at this year’s SEMA Show the V06 will be auctioned To create the vehicle, affection- off by Barrett-Jackson. All proceeds ately called the “V06,” Allen com- will benefit the SEMA Memorial bined a 1963 Volvo 122S Amazon Scholarship Fund, which offers finanwith a 2013 Grand Sport Corvette cial assistance to students pursuing an from Copart. It will be auctioned off automotive career. “It was very exciting to see this to raise money for the SEMA Memorial Scholarship Fund, which pro- build come to life,” said Mark Henry, vides financial assistance of up to brand communications and influencer $5,000 to help foster the next gener- manager for Shell Lubricants. by Ed Attanasio
In addition to being the owner of Flat 12 Gallery—a boutique that features a facility that has had hundreds of unique builds, movie cars and celebrity-owned rides under its roof— Allen is a car guy, the host of the iTunes podcast “Skidmarks Show” and the former host of “The Car Chasers” on CNBC. The SEMA Memorial Scholarship program, a 501(c)3, is dedicated to activating the next generation’s automotive workforce by providing financial support and career resources to students, schools, educators and programs that benefit the professional developJeff Allen, owner of Flat 12 Gallery and host of the ment of young professioniTunes podcast “Skidmarks Show,” designed and als enrolled in various high built this amazing vehicle schools, universities, colThe end result is what Allen con- leges and/or vocational schools in siders to be the ultimate “enthusiast” the United States. Students who are car, capable of competing in a plethora interested can apply for the scholarof events from road rallies, airstrip at- ship at sema.org/scholarships. tacks, autocross events, drag racing and drifting. The V06 is the type of car that enthusiasts could take out www.autobodynews.com every weekend to compete at different events. UPDATED DAILY “Shell and Pennzoil are privileged to work with Jeff and the SEMA Memorial Scholarship Fund to help young people pursue automotive careers.”
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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OR Moves Closer to Driverless Car Testing by Caleb Diehl, Oregon Business
Legislation is being developed that would pave the way for testing driverless cars in Oregon. Rep. Susan McLain (D-Hillsboro) is drafting a bill for the 2019 session that would allow limited testing of autonomous vehicles. The bill, she said, is modeled closely on legislation in California and Washington. “There’s just a lot to look at,” McLain said. “We’re starting slow with the basics on testing.” Uber and other technology companies want to step on the gas. McLain said the bill will “remain silent” on commercial deployment—selling the cars to the public. That’s something the industry explicitly asked for in earlier discussions. McLain’s bill is based in part on recommendations submitted in September from the Oregon Department of Transportation’s autonomous vehicle task force. The group of 33 industry and government representatives recommended that the state establish a framework for testing but hold off on deployment. The committee members voted unanimously, but they remained far from agreement. Many submitted public comment letters clarifying their positions. A schism between tech and active transportation advocates was evident in the comment letters. The League of American Bicyclists, a national nonprofit advocacy group, alluded to an Uber driverless car killing a woman walking in Tempe, AZ, in March as reason to put on the brakes. The Technology Association of Oregon played down the incident, commenting that “only one person was killed” by an autonomous vehicle, while drunk drivers kill around 28 people per day. In his letter to the task force, Uber spokesman Jon Isaacs expressed concern that Oregon is “falling behind” other states in developing autonomous vehicle policy and wrote that a testingonly policy would have “limited utility.” He wrote that the tech industry’s views were underrepresented with four of the 33 task force members, and that they would not support a bill that doesn’t spell out a path to deployment. Joanie Deutsch, executive di22
rector of TechNet, a national network of technology CEOs, warned that a testing-only policy might not lead to testing at all. Nine states already authorized deployment, Deutsch noted, so companies might just test in other states with friendlier legislation. Sometimes, Deutsch wrote, “the greater good demands cautiously taking an action that is not strictly consistent with the law.” Basically, advance technology first and the law will catch up. McLain said she’s continuing to meet industry to address their concerns. The testing legislation, she said, will eventually lead to deployment, but the process can’t be rushed. Deployment would require amending 26 state statutes and would take at least five years. In the rush to deployment, some user groups are getting left by the roadside. In another public comment, bike and walk activists called out the Oregon Department of Transportation for pressing ahead without representing the interests of vulnerable road users. While Uber complained about having only four tech representatives on the task force, bike and walk groups were left with exactly zero. Despite a host of organizations—Oregon Walks, the Community Cycling Center, Bike Portland—expressing interest, none made it on the roster. “The Pedestrian/Bicycle/Vulnerable Road user viewpoint is missing in every material packet presented on the ODOT website,” wrote A.J. Zelada, a board member for the League of American Bicyclists. Zelada noted that driverless cars behave erratically around people walking and biking. In San Francisco, researchers found autonomous vehicles exhibited four of the five driver behaviors most likely to endanger vulnerable road users. In Pittsburgh, a bike advocacy group recorded a number of near misses. Unions and trade groups also cautioned against rushing autonomous vehicle legislation. The Oregon AFLCIO testified about the impacts on the 70,000 workers in the state’s transportation industry. Todd Spencer, CEO of the Owner-Operator Independent Drivers Association, a nonprofit that represents commercial drivers, wrote that, “a hurried and mis-
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
guided introduction of AVs” would prove unsafe and threaten the jobs of 3.9 million people with a commercial driver’s license. If driverless cars take the wheel, drivers will need workforce training to transition to other roles. Planners have dubbed the driverless car revolution a “heaven or hell” scenario. It might either create a network of shared vehicles that clears the road of unneeded cars or create privately owned cars that circle all day instead of paying for parking and ferry their owners for untold miles. The Portland Bureau of Transportation estimates that shared driverless cars would contribute to a 4–43 percent rise in miles driven and up to a 16 percent boost for transit trips. Privately owned cars would mean a 12–68 percent increase in miles traveled and a drop in transit ridership of up to 43 percent. Countless questions remain. Who’s liable when two driverless cars collide? How should police stop and ticket them? How can we ensure low-income people have access to the technology?
Besides listening to the task force conversations, McLain said she’s read more than 75 articles on all of this, and that’s why she’s taking it slowly. As the 2019 session draws closer, McLain and other legislators are navigating sensitive terrain. They must clear the road for innovation while keeping the necessary stop signs in place. They face mounting pressure from the tech industry as they sort through enormous legal complexity. “They want to make sure there’s nothing that’s a barrier for their innovative forwarding of this technology,” McLain said. “We agree with them. We just want to make sure we do that correctly.” We thank Oregon Business for reprint permission.
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SEMA Announces New Product Award Winners The Specialty Equipment Market Association (SEMA) announced its Best New Products Award winners Oct. 30 at the 2018 SEMA Show. These awards are given to the most innovative and cutting-edge automotive aftermarket products that will be consumable in 2019.
SEMA’s annual New Product Awards competition recognizes outstanding achievements in the development of products being introduced to the automotive specialty-equipment market at the SEMA Show. Products are judged in 16 award categories, and each category has one winner and two runners-up. Nearly 3,000 products were entered into the 16 different Showcase categories to be considered for a SEMA New Product Award this year. Winners were selected based on a variety of factors that included superiority of innovation, technical achievement, quality and workmanship, consumer appeal and marketability, and more. The New Product Award Winners are:
Collision Repair & Refinish Product Winner: ITW Evercoat, OPTEX Color Changing Body Filler and Putty Runner Up: Bonding Solutions, Like90 Gun Cleaner Runner Up: Scangrip, NOVA-UV S Engineered New Product Winner: Flaming River Industries Inc., VDOG variable angle gear Runner Up: Holley/MSD, Racepak CL2 OBD2 & EFI Cloud/Mobile Based Data System Runner Up: QA1, MOD Series Shock Exterior Accessory Product Winner: Lund International, AVS Aeroskin LightShield Hood Protector Runner Up: ORACLE Lighting, ORACLE Lighting Vector Series Grill for the Jeep Wrangler JL Runner Up: Steelcraft, Stubby Jeep 24
Bumper
LS series engines
Interior Accessory Product Winner: Speed Dawg Shift Knobs, Dodge Drag Pack 1320 Racing Stripe Shift Knob Runner Up: Lock’er Down Security Products, EXxtreme Console Safe Runner Up: Intellitronix, 1967-1972 Chevy Truck Direct Replacement Analog Gauge Cluster
Powersports Product Winner: Warn Industries Inc., VRX 45-S Runner Up: Race Sport Lighting, Race Sport Lighting Voltage Gauge Display Runner Up: Dynojet Research, Power Vision
Merchandising Display Winner: Dee Zee Inc., Rotary Running Board Display Runner Up: Putco, Tec Rail POP Display Runner Up: Cooper Tire, Discoverer AT3 360 Interactive Display Mobile Electronics Product Winner: AAC, Trigger 4 Plus Runner Up: Kicker, KEY 180.4 Runner Up: Daystar Products, Daystar GMRS Radio Kit for JK Wrangler Off-Road/4-Wheel Drive Product Winner: Rancho/DynoMax, Rancho JL Wrangler Sport Suspension System Runner Up: Rock-Slide Engineering, Next Generation Step Slider Runner Up: BODYGUARD, 18+ Jeep JL Full Width Front Bumper Packaging Design Winner: Pedal Commander, Pedal Commander Performance Throttle Response Controller Runner Up: Mishimoto, Carbon Fiber Baffled Catch Can Packaging Runner Up: Surly Soap, Soap Infused Hand Cleaner Performance-Racing Product Winner: ProCharger Supercharger Systems, ProCharger CrankDrive™ Supercharger Gear Drive Runner Up: QA1, MOD Series Shock Runner Up: QA1, Carbon Fiber Sway Bar Performance-Street Product Winner: Turbosmart, Kompact-EM Universal Blow Off Valve Runner Up: Dakota Digital, HDX Universal Competition Analog Instruments Runner Up: Livernois Motorsports & Engineering, DOD/AFM system failure prevention kit for Gen4 GM
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
Street Rod/Custom Car Product Winner: Flaming River Industries Inc., VDOG variable angle gear Runner Up: Wilwood Disc Brakes, Compact Tandem Master Cylinder Runner Up: Dakota Digital, RTX 5557 Chevy Car Instruments Tire and Related Product Winner: Cooper Tire, Cooper Discoverer AT3 4S Runner Up: Continental Tire, Continental VikingContact 7 Runner Up: Mickey Thompson Tires & Wheels, Baja Pro X Tools & Equipment Product Winner: Newarc Tech LLC, NewArc
SRS-3 Portable Wheel Straightening System Runner Up: Towtector/AaLadin, UNDERCARRIAGE CLEANER Runner Up: Rhino Metals Inc., IWTC6534D Van/Pickup/Sport-Utility Product Winner: Brandmotion, Radar Blind Spot System with Cross Traffic Detection Runner Up: Air Lift Co., Wireless One EZ mount Runner Up: TITAN Fuel Tanks, XXL Direct Replacement Fuel Tank Wheel and Related Product Winner: Wheel Pros, Asanti Wheels AB-816 Runner Up: The Wheel Group/Wheel1, TR75 (Style No. 3275) 20x9 Brushed/Dark Tint Runner Up: APR, B&M Racing, Dinan, Flowmaster & Hurst Performance, APR S01 Forged Wheels (20x9 - Silver/Machined)
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OEM Summit
Nissan May Cull Number of Shops in Program Mark Zoba of Nissan North America said his company’s certified collision network has grown from fewer than 500 shops in 2014 to more than 1,500 today, with about 400 more applications in process. But, he said, 1,900 shops is more than the program likely needs or will maintain. “I don’t have a specific number, but what I need for full network buildout, to make sure there’s a light in every market, is about 1,650 shops,” Zoba said. “So I’ll be culling the herd a little bit, I think over time ending up at about that 1,650 number.” What will determine which shops are added or remain on the program? Zoba said the automaker is developing scorecards to “hold shops more and more accountable” on such metrics as documented research and use of Nissan repair procedures, OEM parts usage, cycle time and CSI. “The shops that are performing, obviously we want to keep in the
network,” Zoba said. “If they’re not performing, we’re probably going to ask them to step aside.” He said the automaker is working to bring more value to the program for certified shops as well, including a refined shop locator and more Nissan-specific training. Zoba said Nissan worked with trainer Mike Anderson to develop a multiday “Collision Estimating Essentials” required course—launching this month—that covers researching Nissan procedures, technical aspects of Nissan vehicles that affect estimating, identifying single-use parts, etc. Also, as of January, any Nissan paint warranty claim must be handled by a certified collision center, even if that means a non-certified Nissan dealership shop has to send the work to a certified independent shop.
drawing applause from attendees at the summit. “We do not allow any aftermarket or LKQ utilization, or reconditioned parts, on our vehicles.” He said that even though salvage parts may often be “OEM,” Volvo can’t know the history or condition of the part and so can’t stand behind its use.
Volvo To Require All OEM Parts Ken Park, manager of Volvo’s certified collision program, said that one important change in the program next year involves parts. “Currently, we require 95 percent OEM parts on all repairs. In 2019, we will require 100 percent,” Park said,
Park said the automaker’s research has found that 85 percent of Volvo drivers search online for a certified facility online after an accident. “That’s a huge opportunity for our facilities,” he said. There are currently just over
Ken Park (left) of Volvo and Ben Cid of Mercedes-Benz responded to questions about their companies’ certified shop programs at the Society of Collision Repair Specialists’ OEM Collision Repair Technology Summit in Las Vegas during SEMA
200 Volvo-certified shops across the United States, but Park said he hopes to expand the network to as many as 350. The goal, he said, is to have a certified shop within 10 miles of its customers, although its roadside assistance program will tow a vehicle up to 50 miles after an accident. Unlike the Subaru program, Volvo does require independent shops to be sponsored by a Volvo dealer to join the program. He said the program includes audits of participating shops. That can include pulling 10 to 20 random repair files, for example, to check to see if Volvo repair procedures were researched and documented within the file. “When we look at the data on how many [shops in the industry] are actually researching the repair procedures, it’s pretty dismal,” Park said. “But as shops research the procedures more and more, they find they get very proficient at it. Right now, I think it’s more of a hurdle just because they’re not regularly doing it. As shops spend the time actually doing it, it’s going to become easier See OEM Summit, Page 35
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Annual Top Honors Awarded At 2018 SEMA Show SEMA, the trade association representing the $43 billion automotive specialty equipment industry, presented its top honors during the annual SEMA Awards Banquet Nov. 1 at the 2018 SEMA Show in Las Vegas, NV. Winners of the prestigious awards are:
• SEMA Person of the Year: Melanie White - President, Hellwig Products
• Gen-III Innovator of the Year: Jon Pulli - CEO, Turn 14 Distribution • SEMA Rep Agency of the Year: Bob Cook Sales
• SEMA Distributor of the Year: Turn 14 Distribution • SEMA Manufacturer of the Year: Aeromotive Inc. With more than 3,000 industry luminaries and business owners in attendance, the SEMA Awards Banquet is considered by many to be the indus-
try’s premier gala—similar to the Oscars for the entertainment industry. “The SEMA Awards Banquet is a highlight of the week,” said Chris Kersting, SEMA president and CEO. “After several days of business at the SEMA Show, it’s a great time to switch gears and celebrate the passion that fuels the industry. The award winners are all examples of this passion and the innovation that we’ve seen all week. We’re honored to be able to recognize them with these industry awards.” With entertainment from bluesinspired rock-pop music artist ZZ Ward, the banquet provided showgoers with the ultimate networking and social event. New SEMA Hall of Fame members Donnie Eatherly, Ed Pink and Chris Thomson were also honored, along with many industry leaders, rising stars and volunteers. Melanie White, who was recently named the first woman president of Hellwig Products, received the association’s most prestigious award: SEMA Person of the Year. Family-owned-and-operated Hellwig Products is one of the original SEMA Show exhibitors from the
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1967 show at Dodgers Stadium. White began working at the company in 2005 but has been long associated with the company her great-grandfather founded in 1946. Today, White is an active industry volunteer and leader, most recently assuming the role of chair of the SEMA Cares Committee. The 2018 GEN-III Innovator of the Year award was presented to Jon Pulli, CEO of Turn 14 Distribution, Inc. At 36 years old, Pulli has done a lot for the aftermarket industry by reinventing the field of wholesale distribution by bringing new technologies and ideas to the space. At Turn 14 Distribution, Pulli created a transparent, effective and efficient sales channel that allows manufacturers greater access to dealers. Bob Cook Sales won the SEMA Rep Agency of the Year Award, Turn 14 Distribution was named SEMA Distributor of the Year and Aeromotive Inc. was selected SEMA Manufacturer of the Year. The awards recognize outstanding commitment to the industry and a high level of involvement with SEMA committees, task forces, councils or board of directors’ participation.
Price-Fixing Claims
insurers’ alleged action constituted price-fixing and urged the judges to hew closely to the U.S. Supreme Court’s 2007 decision in Bell Atl. Corp. v. Twombly. That decision toughened the standards for bringing price-fixing claims and established that a simple showing of “parallel conduct” was, without evidence of an an actual agreement, insufficient to support such claims. “There is no way here to show that what is alleged is anti-competitive activity,” Kenney said. Copyright 2018. ALM Media Properties, LLC. All rights reserved.
Republished with permission from the Daily Report.
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The Big Show Rolls On—Shots and Scenes from SEMA 2018
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HS Customs Wins Chevrolet Designer’s Choice Award at SEMA 2018 by Ed Attanasio
Cam Miller, owner of HS Customs in Logan, UT, won the 2018 Chevrolet Designer’s prize at the SEMA show in Las Vegas for his 1981 Chevrolet K-20 truck.
Cam Miller, owner of HS Customs in Logan, UT, won the 2018 Chevrolet Designer’s prize at the SEMA Show in Las Vegas for his 1981 Chevrolet K-20 truck
Every year, the judges from Chevrolet walk the entire SEMA floor in search of unique and innovative designs to showcase the diversity of the specialty equipment market. This year, Miller’s truck stole the show. Miller, who also displayed a 1970 Chevrolet Camaro at SEMA, had a feeling that his truck would get attention, but winning the Designer’s Award was a pleasant surprise.
Miller was honored by the Chevrolet team on Nov. 1
“What made this truck special was the fact that we swapped out the engine with a 2007 Duramax diesel motor with an Allison transmission,” Miller said. “Putting diesels in these old trucks has developed a strong cult following, and more and more people are gravitating toward these engines. It has 1,000 ft. lbs. of torque, so it’s got a lot of power, and truck fans love it.” With approximately 6,000 hours 30
of work put into the vehicle, Miller built the truck for Cody Veibell of Brigham City, UT. “I was able to communicate my vision with this truck, and the owner let us do our thing,” he said. “We put everything we have into every build, and this one was surely no exception.” On Nov. 1, the people from Chevrolet approached Miller at his booth to tell him the good news. “We knew that they were looking at it but had no idea that we were going to win. I think it was a combination of the engine we put in it coupled with the design elements we integrated into the truck. When you start one of these projects, you never know exactly how it will come out, but this one really exceeded our expectations, and I guess Chevrolet agreed,” Miller said. Miller has been building trucks and cars for the last six years after working on ATVs and motorcycles for many years. He opened HS Customs in 1997 and claimed the prestigious Battle of the Builders award with a PPG-painted brilliant white 1969 Camaro at the 2016 SEMA Show. The vehicle, owned by Alex Short of Bluffdale, UT, wowed the
crowds and was dubbed “Under Pressure.” It was painted exclusively with PPG refinish products. In addition, this year Miller’s 1970 Chevy Camaro made it into the Top 10 list in the hot rods category for the Battle of the Builders competition. “Winning the Battle of the Builders two years ago was huge for us and something that I will never forget,” Miller said. “It is always ex-
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
citing and very satisfying whenever our hard work pays off. We are grateful for all the amazing technical support and guidance we received from PPG.”
After roughly 6,000 hours of work on the truck, Miller and his crew at HS Customs were delighted with the prestigious award
Using PPG’s Envirobase basecoat on the truck played a major role in landing this award, Miller said. “PPG’s products are awesome, but their advice and support really help us in many other ways,” he said. “They work closely with custom painters and know what we need, which is special. They go beyond and are always here for us, and that’s
why we feel like family when it comes to PPG. They put us on the map, and we will always be grateful to them for everything they’ve done for us.” Miller is always thinking about what he will be bringing to next year’s SEMA Show. “We will likely do another Chevy truck and are planning to do a 1968 Chevelle, so stay tuned!” he said. The other winners of the Chevrolet’s SEMA Awards include: • Crate Engine: ‘70 Chevelle from the Roadster Shop
• Parts & Accessories: ‘68 C10 from Creative Rod & Kustom
• Classic of the Year: ‘42 Pickup from Big Oak Garage • Truck of the Year: ‘56 Pickup from Premier Street Rod Parts
• Car of the Year: ‘58 Corvette from Heartland Customs
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In Reverse with Gary Ledoux
Gary Ledoux is an industry veteran with 48 years’ experience in the automotive and OEM collision parts industry. His column appears exclusively in Autobody News. He can be reached at YesterWreck@yahoo.com
The Fabulous ‘50s and Mr. O’Donnell’s Invention The decade of the ‘50s marked a golden era in the auto industry. American servicemen were back from the war. No longer were factories turning out bombs and bullets. It was time to build some cars that were destined to be classics—and time to introduce some new automotive technology. Mainstay models like the Chevy Corvette and Ford Thunderbird were introduced. The 1957 Chevy Bel Air became the quintessential classic car. Ford’s 1957 Fairlane became forgettable. It was also the decade that saw the emergence of the import car with names like VW, Triumph and Jaguar. Typically at the time, import cars were first characterized as vehicles that were difficult to repair and difficult to find replacement parts and refinish paint for. That stigma would remain until the 1970s. In 1950, with so many people hitting the roads after being limited for so long by gas and tire rationing and simply lacking a vehicle, vehicle miles traveled and the accident rate began to soar. In 1950, 34,763 highway deaths were reported. It was time to implement some safety measures. Wide curved-glass windows, front and rear, gave drivers an extra measure of safety to avoid accidents … and offered replacement window re-installers a new challenge. The new Chevy small-block V8 gave drivers safety in the way of more power on the new interstate freeways to pass and merge into traffic. Safety became more of an issue in the 1950s for body repairers, the motoring public and civil and safety engineers. Vehicle safety meant greater use of seat belts and padded dashboards. The concept of automotive safety airbags was developed in the 1950s, but they were not very practical. To deploy an airbag, a driver or passenger had to anticipate a collision and flick the “deploy” switch in time. Most people weren’t quick enough. Roads became safer with new legislation that called for more signs and lane separation. Civil engineers
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designed roads with a crown in the middle, allowing rain water to run off to the edges, leaving a better, less slippery surface. It was also the start of the interstate highway system, which promoted driving and led to more accidents and more need for body shops.
Some key events in the 1950s would lead to the industry’s first voice in the 1960s. In June of 1955, Emil Stanley founded Stanley Publishing, which produced two magazines: Transportation Supply News and Jobber Product News. Little did he realize, he would later be an innovator in the world of publishing for the collision repair industry. In 1962, Stanley would produce the first nationally distributed collision trade publication, Auto Body News and Good Car Care magazine. Finally, the collision repair industry in general, and shops in particular, had a voice. Auto body painters finally learned that breathing toxic paint fumes all day was just not good for their lungs, and great strides were made in the world of paint application and the paint-application environment. It was around this time that German engineers developed downdraft technology for rapid air movement and adapted it for use in paint booths. During the war, people and soldiers in Germany worked underground for protection and secrecy. German engineers devised a method of pushing fresh air underground to soldiers and workers and pulled spent air out the bottom along a trench and then exhausted to the outside. When
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
the industrial infrastructure of Europe was rebuilt, engineers turned to the downdraft method. This was a technology whose time had come because painter health and safety became more of an issue in the 1950s. The downdraft system could quickly and efficiently suck fumes and spray away from the painter and into a floor trench. Fire prevention also became more of an issue, which promoted improvements in spark and fume control and spark containment within the booth. However, not every shop had a booth or saw the need for a booth. Lacquer was the paint of choice in the ‘50s, a product that dried so fast that overspray didn’t go nearly as far as enamel. Besides, lacquer needed to be polished to a shine, so a little overspray that
settled on a freshly painted surface was not a problem. In the early 1950s, the average hourly rate for collision repair was $4 to $5 per hour. The average hourly wage for a body man was $1.75 per hour. This seems ridiculous today, but back then, bread was $0.12 per loaf, and 3 pounds of hamburger cost $0.89. An article appearing in a 1969 trade journal provided one long-time shop owner’s vision of the collision business over the past 20 years. He noted that 1949–1954 were the best years of his operation. There were few shops and plenty of work. He employed 15 body men—a huge shop for the time. Intrusion from the insurance companies was almost non-existent, and in fact, the insurance appraisers seemed most amiable. See The Fabulous ‘50s, Page 44
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National Associations with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
RDA 2018 IMPACT Performance Conference Breaks Attendance Records On Oct. 1–3, the Refinish Distributors Alliance (RDA) hosted its second 2018 IMPACT Performance Conference in Louisville, KY. Attendance for the event exceeded 100 industry professionals.
RDA Executive Director Robert McKenzie Jr. opened the IMPACT Performance Conference by welcoming attendees and encouraging complete engagement throughout the event
According to RDA Executive Director Robert McKenzie Jr., “The recent RDA IMPACT Performance Conference held in Louisville broke
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previous attendance records with every member and manufacturer represented. “The purpose of the event is to create an opportunity for RDA members and supporting manufacturers to come together and strengthen their relationships. We achieve this by providing high quality speakers presenting relevant topics that benefit all attendees. We purposefully include a significant amount of time for networking and team building. Lastly, it is always a good thing to include a degree of ‘fun’ activities. If we make the meeting enjoyable, it is so much more valuable to all who attend.” This biannual event, held in April and October, is important to association members because it reinforces the message that “we are stronger together than we are apart,” McKenzie stressed. “The PBE industry is in a period of consolidation.
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
RDA members and PBE distributors, in general, are experiencing the financial impact of this consolidation. By coming together, RDA members are better able to leverage resources for the benefit of each other. The in-
Gene Marks of the Marks Group P.C. presented “The Latest Political, Technological, Economic and Management Trends That Will Dominate Your Business Over the Next Two Years.”
dustry at-large benefits from having strong PBE distributors to complete the supply chain necessary to support collision shops all across the U.S.”
The conference began on Monday with an optional “Shop Data Collection” workshop facilitated by John Halstead, RDA Business Support. During the General Session at 3 p.m., McKenzie kicked things off by welcoming attendees and facilitating the member and manufacturer roundtable discussions. The day concluded at Churchill Downs with the welcome reception and dinner, allowing everyone to enjoy an evening track tour and exciting virtual racing. Tuesday’s agenda commenced with a presentation delivered by Jim Webber on workplace issues. Webber conducted a fun game show of HR, RDA and Louisville trivia. Following lunch, business guru Gene Marks provided the latest data and information relevant to attendees and their businesses before the RDA shareholders meeting. The afternoon ended with an IMPACT product dis-
play and discussion with attending manufacturers, followed by a reception and dinner that included “some surprising entertainment and lessons! Prizes were handed out throughout
a workshop titled “Why Change?” which will continue during RDA’s next conference. McKenzie noted, “The meeting received the highest reviews of any
RDA members and manufacturers pose in front of Churchill Downs during the October 2018 IMPACT Performance Conference in Louisville, KY
the day to several lucky winners,” McKenzie shared. The final day of the IMPACT Performance Conference was open only to RDA members. Corporate Visions’ Steve Zelechoski presented
meeting we have had to date. Many positive comments were received, such as: ‘Thank you all for a great time in Louisville! From the first evening until the last, not only did I enjoy, but learned quite a bit as well. Excellent
presenters all around. Looking forward to the next conference!’; ‘I don’t know how you do it, but you always raise the bar to the next level. Each meeting is better than the last;’ and ‘We all get so much out of the conferences and I always walk away learning new things and keep my focus on thinking ‘outside of the box.’ “The event exceeded my expectations. All RDA members and supporting manufacturers were in attendance. The agenda was filled with top-rated speakers, providing all attendees with valuable takeaways. When you bring together the best PBE distributors and manufacturers, you can expect a meeting full of exuberant conversation and the sharing of market strategies. In addition, it never hurts to have a reception and dinner at the Kentucky Derby facility.” RDA’s next IMPACT Performance Conference is scheduled for April 1–3, 2019 at the Omni Hotel in Frisco, TX. For more information about RDA, visit rda-impact.com or contact Robert McKenzie, Jr. at 731-2179081 / robertemckenzie@me.com.
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OEM Summit
and easier … One thing I have seen work very well for some shops is assigning one person in their office to [be the one] who looks up these procedures. As they get more familiar with it, it becomes easier for them to navigate through it.” Mercedes-Benz Looking To Add More Shops Ben Cid, collision business manager for Mercede-Benz, said that like Volvo, it is looking to expand its certified shop network, which currently includes about 280 shops. “There are some areas where we need coverage,” he said. “We’re looking to be somewhere around 400 to 420 shops.” He said Mercedes has begun using its roadside assistance program and other means to connect its customers with certified shops in the event of an accident, so his main focus this next year will be to build the network as needed to accommodate that. See OEM Summit, Page 44
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First Honda S i m i Va l l e y
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Galpin Honda Mission Hills
800-GO GALPIN 818-778-2005 Dept. Hours: M-F 7:30-6; Sat 8-2 mteeman@galpin.com
Honda Cars of Corona Corona
800-557-3652 951-734-9045 Dept. Hours: M-Sat 7-5 terry.love@pscauto.com
ACURA CALIFORNIA
Acura of Fremont F re m o n t
888-435-0504 510-431-2560 Dept. Hours: M-F 8-6; Sat 8-5 mike.ohare@acuraoffremont.com
Acura of Pleasanton Pleasanton
888-985-6342 925-251-7126 Dept. Hours: M-F 7:30-6; Sat 8-6 mitch.cash@hendrickauto.com
36
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
Please contact these dealers for your Honda or Acura Genuine parts needs. CALIF O R N I A
CALIFORNIA
IDAHO
WA SHINGTON
Larry H. Miller Honda
McCurley Integrity Honda
Honda of Hollywood
Pacific Honda
Hollywood
San D i e g o
800-371-3719 323-466-3205
858-565-9402
Boise
R i ch l a n d
jgardiner@pacifichonda.com
Dept. Hours: M-F 8-6 parts@hondaofhollywood.com
San Francisco Honda
888-941-2218 208-947-6060
800-456-6257 509-547-7924
Dept. Hours: M-F 7-6; Sat 8-5
Dept. Hours: M-F 8-5:30; Sat 8-4 hondaparts@mccurley.net
San Fra n c i s c o
Honda of Oakland
415-913-5125
Oakland
Dept. Hours: M-F 8-5 partsws@sfhonda.com
Findlay Honda
Scott Robinson Honda
702-982-4260
Honda of Pasadena
Torra n c e
Pasadena
310-371-8320
Dept. Hours: M-F 7:30-5:30; Sat 8-5 fsanchez@findlayauto.com
800-433-0676 626-683-5880
Dept. Hours: M-F 7-6:30; Sat 7-5 mluna@scottrobinson.com
510-547-8047 Dept. Hours: M-F 7-8; Sat 7-6
Dept. Hours: M-F 8-6; Sat 8-4
Honda of the Desert Cathedral City
760-770-0828
N E VA D A
L a s Ve g a s
Selma Honda
Findlay Honda Henderson
Dept. Hours: M-F 7-6; Sat 7-5 mpartridge@honda111.com
Dept. Hours: M-F 7-6; Sat 7:30-4:30 hondapartsmgr@selmaautomall.com
Larry Hopkins Honda
Sierra Honda
Sunnyvale
Mon r ov i a
408-720-0221 408-736-2608
800-322-8540 626-932-5614
Ta c o m a
888-497-2410 253-474-7541 Dept. Hours: M-F 7:30-6; Sat 8-5 bgregory@southtacomahonda.com
Henderson
888-234-4498 702-568-3531
Sel m a
800-717-3562 559-891-5111
South Tacoma Honda
Dept. Hours: M-F 7-6; Sat 8-5 fhhparts@findlayauto.com OREGON
Dept. Hours: M-Sat 8-5 parts1@hopkinsdirect.com
Dept. Hours: M-F 7-6; Sat 8-4 parts@sierracars.com
Metro Honda
South Bay Honda
Montclair
Milp i t a s
800-446-5697 909-625-8960
877-475-1142 408-324-7460
Dept. Hours: M-F 7:30-5:30; Sat 7:30-4 wholesaleparts@metrohonda.com
Dept. Hours: M-F 7:30-5 parts@southbayhonda.com
Lithia Honda of Medford M e d f o rd
888-471-7445 541-770-3763 Dept. Hours: M-Sat 7:30-6; Sun 10-5 medfordhondaparts@lithia.com WA S H I N G T O N
Hinshaw’s Honda Auburn
253-288-1069 Dept. Hours: M-F 7-6; Sat 7:30-4:30 rickb@hinshaws.com
Ocean Honda Santa Cruz
831-464-1800 Dept. Hours: M-F 7-6; Sat 8-4:30 mickw@oceanhondasantacruz.com
CALIF O R N I A
AutoNation Acura of South Bay Torrance
310-784-8680 Dept. Hours: M-F 7-6; Sat 8-5 iwashitas@autonation.com
Bakersfield Acura Bakersfield
661-381-2600
CALIFORNIA
IDAHO
WA SHINGTON
Metro Acura
Lyle Pearson Acura
Mont c l a i r
Boise
Fife
800-446-5697 909-625-8960
800-621-1775 208-377-3900
253-926-3331
Dept. Hours: M-F 7:30-5:30 wholesaleparts@metrohonda.com
Dept. Hours: M-F 7:30-6 acuraparts@lylepearson.com
Acura of Honolulu
Findlay Acura
Dept. Hours: M-F 7:30-5:30 bakersfieldacuraservice@yahoo.com
Henderson
866-931-9086 808-942-4557
877-770-5873 702-982-4160
Marin Acura
Dept. Hours: M-F 8-5; Sat 8-4 Johara@lithia.com Tokuda@lithia.com RayleenGarcia@lithia.com
Dept. Hours: M-F 7-6; Sat 8-4 jmoore@findlayauto.com
Corte Madera
Dept. Hours: M-F 7-6; Sat 8-5 johnny@hinshaws.com
N E VA D A
HAWAII
Hon o l u l u
800-77-Acura 415-927-5350
Hinshaw’s Acura
Dept. Hours: M-F 8-5:30; Sat 8-4 parts@marinacura.com autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
37
National News
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
with Ed Attanasio
PPG’s Jennifer Jarzembowski Discusses Impact of OEM Certifications National Account Manager, OEM After Sales Jennifer Jarzembowski from PPG advises shops all over the country on the advantages of attaining OEM certifications and helps shops obtain them.
Q:
nies?
Are OEM certifications important to insurance compa-
mand marketing, smart phone apps and the increased use of vehicle telematics give the OEM the advantage of the first notice of loss. OEM certification training, equipment and tooling can be costly. If a shop is dedicated enough to meet the requirements of a certification, a consumer can be reassured that the facility is doing safe and proper repairs.
OEM certification continues How can OEM certifications to grow, and existing prostrengthen shops’ relationships grams are becoming more and more with their DRPs? refined. The availability and required OEM certification can make a use of repair procedures and position facility less dependent on the statements make certified shops the authority on collision repair. The in- insurer. It can help leverage the insurance company authority is be- surer to allow the facility to repair coming less of a factor and there is the vehicle to the manufacturer standards (and in a timely manmore emphasis on the repair ner), allowing them to use method, OEM compliance OEM parts and get paid a and liability exposure rather fair rate. While a certified than alternative parts usage facility may still need to exand severity. I believe that plain the necessary costs to consistency in estimates and insurers, automakers are safe and proper repairs is bedoing a good job of educatcoming important to the inPPG’s National ing and keeping the insurers surance companies, and Account Manager, OEM After Sales informed regarding their challenging certified shops is therefore decreasing. They Jennifer Jarzem- certification requirements. bowski said that are showing interest in ac- OEM certifications Customers are being influcessing network manage- are an investment enced by the automakers to that many shops go to a certified facility, and ment systems that provide certified shop information might have to make they are much less likely (if and KPIs. Knowing who the to stay competitive at all) to be influenced to certified facilities are and knowing take the vehicle to a shop that is not the quality of their repairs makes it certified. Their trust has already been more likely that they will send work attained. Emerging legislation in several states will also drive consumer to them. consent and appropriate repair rates. Why are OEM certifications important to consumers? Shouldn’t a shop be discerning when pursuing an OE cerOEMs, consumer advocacy tification? organizations and media are When pursuing an OEM cereducating consumers on the importification, many factors need tance of identifying shops that meet OEM requirements, can assure a to be considered. It is absolutely esproper and safe repair of their vehicle sential that diligent research is done and will restore them to pre-collision, to ensure that there will be a return factory condition. OEMs are giving on investment (ROI). While I believe vehicle owners the level of confi- that ultimately it is an investment dence that they have identified quality that many shops might have to make shops at the point of vehicle purchase. to compete long-term, the proper exCertified shop locator sites, on-de- ecution of choosing a particular pro-
A:
Q: A:
Q: A:
Q: A:
38
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
gram or programs is essential. Some major points to consider are vehicles in operation in their market, relationships with the area dealers, and initial and ongoing investment for equipment and training (and budgeting for it) based on the program requirements and ROI, etc.
them make decisions in the process. Interested facilities should express interest with their local PPG territory manager, and we will work with that shop on a case-by-case basis to help them make informed decisions in pursuing certifications.
What role do you play at PPG in helping shops get signed up for OE certifications? What’s the process?
You recently made an offer at a CAA meeting that you would help shops in the certification process, even if they don’t use PPG. Is that true and if so, why?
A:
A:
Q:
Our OEM after sales team in PPG automotive refinish works with the manufacturers and their administrators regarding the growth of their programs, and we remain educated on the program requirements. While it is the responsibility of the shops to pursue certification, we can certainly provide them with the knowledge and tools to help
Q:
PPG is dedicated to working creatively to help solve not only our customers’ challenges, but those of our industry as a whole. We welcome the opportunity to collaborate with all shops where it makes sense, as well as all other industry associations in the interest of, and as an end goal of, producing a safe and See Jennifer Jarzembowski, Page 43
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
39
National Associations with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
Dave Luehr Teaches WIN Members How To Develop a WINner’s Mindset On Wednesday, Oct. 10, the Women’s Industry Network (WIN®) hosted a webinar featuring Dave Luehr of Elite Body Shop Solutions, who presented “Developing a WINner’s Mindset (Pun Intended!).” “Right now is the greatest time to be in the collision repair business, but only for those with the right mindset,” he said. “But, what IS the right mindset? “When I think of the word ‘limitless,’ I’m immediately inspired by the beauty of human potential. It makes me think of a childlike quality that dares to dream big and live life to the fullest. No one said this business was going to be easy. Many people fail, but it’s those people who honor the struggle and dig deep to find the great opportunities that exist within the difficulties—it’s these people who are creating a life of their choosing. “Building a great business is an art. In the collision industry, great men and women have created great businesses through the power of their imaginations. I believe everyone has the power to create greatness. It has very little to do with a person’s situation in life compared to their attitude toward their situation. Bring back that child within you. I can promise you it won’t be easy, but nothing worthwhile ever is. With a structured approach and a childlike imagination, you truly are limitless.” Luehr welcomed attendees, thanked WIN for the forum and encouraged any non-members to join the organization. Beginning his presentation, he noted that there are two fundamental problems in the industry: Everyone seems to be looking for a magic solution to their problems instead of looking within themselves, and many people believe they can have anything they want in life as long as they work hard enough. “Hard work does not make you successful… working hard on the right things makes you successful!” he said. After sharing a story about his background in the industry, Luehr
40
talked about losing his first business after his mother’s death and how it shook his confidence for many years. He recalled difficult times in the industry during the first decade of the new millennium and noticing so many people who were succeeding. This led to him starting Elite Body Shop Solutions.
However, he said, “I still had to get out of my way. The only limitations that are keeping you from where you want to get in life are the ones you’re creating yourself. That was one of the greatest things to ever happen to me.” He identified four factors that contribute to developing a winner’s mindset: confidence, challenging limiting beliefs, personal responsibility, and finding the positive within the negative. Confidence “truly is at the foundation of whether we’re going to be successful or not. If you think you can be successful, you can because we get what we think in life, and confidence is at the very core of that,” Luehr emphasized. “You can have doubts and still have confidence that you’ll succeed. It’s really what you do in those moments of doubt that makes all the difference between success and failure. Why not you?” Confidence is only gained by doing—especially actions taken outside your comfort zone. Being afraid does not eliminate courage as long as you do it anyway. Explaining the confidence-competence loop, Luehr noted, “Every time you take an action that you’re a little fearful of, you become a little more competent. You know that you can do it and become better each time you do it. Don’t let your lack of knowledge about a certain subject
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
avoiding the status quo. “Real freedom comes when you’re being your best authentic self,” Luehr encouraged. “Take responsibility for your successes and your failures.” He then discussed three types of people: Card players, who play the hand they’ve been dealt; card haters, who act like victims and complain; and card fighters, who “make it their personal mission to go out and fight what’s wrong in this world.” Finding the positive within the negative is the final step to developing a winning mindset. This means finding the opportunity in each chapter. “Every time something bad happens, we have to find the good hidden in it,” Luehr advised. “Failing is OK, but fail brilliantly! Once you know it’s okay to fail, that changes
keep you from starting.” The second step to developing a winning mindset is to challenge limiting beliefs. Luehr observed that there are a lot of old beliefs that keep people stuck. “The majority of beliefs in our brains today were in place by the time we were 4 years old, so there could be faulty information in there. But many of us identify so much with our beliefs that it becomes part of who we are and can be difficult for people to swallow. Challenging your belief system does not make you wishy-washy; it makes you wise!” Luehr said. Moving on to personal responsibility, Luehr shared three tips for discovering your best self: exploring outside your current “truth,” determining the origin of those truths, and
See WINner’s Mindset, Page 55
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41
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.
Toyota’s Training Website Offers Free Information for Collision Repairers One of the occasional frustrations I experience is seeing the industry fail to make use of some of the great (and free!) resources shops have at their disposal. When you find, for example, something is missing or seemingly inaccurate in one of the estimating systems, please take a few minutes to submit an inquiry to the Database Enhancement Gateway (www.degweb.org). In October, for example, someone questioned why there was no paint time for the fender bracket for the 2017 Toyota 4Runner in the CCC estimating system; within a day, CCC responded that it was adding two-tenths of an hour of paint time for the part. The entire industry benefits from the few minutes it took someone to submit that inquiry to the DEG. If every shop in the country were to submit even just one or two inquiries a year, the estimating sys-
tems would be far more complete and accurate. Can’t find some specific collision repair information? There’s “Ask ICAR,” an excellent, searchable database of questions submitted by your colleagues and answered by the great
sion beams or bumper reinforcements? The answers are right at “Ask I-CAR” (https://rts.i-car.com /ask-icar.html). If your question isn’t there and already answered, you can submit it to be answered for you – likely helping others as well. (Full disclosure: There’s a subscription fee for I-CAR’s Repairability Technical Support resources, but it’s waived for any shop that is regularly training with ICAR.) But perhaps the free resource I most often see shops scribbling down in their notes when I talk about it in my classes is Collision The Toyota training website offers sections of information Repair & Refinish Training both for body technicians and painters (www.crrtraining .com), folks at I-CAR. Wondering if Hyundai which is packed with tools to help or Kia has sectioning procedures, for you repair Toyota and Lexus vehicles. example? What does I-CAR say It’s not a substitute for subscribing to about repairing damaged door intru- Toyota’s repair information website,
but it offers tons of great information. Here are just a few portions of the website that I think shops should check out: • Start with the “News” tab at the top of the homepage. On the righthand side is a list of categories of content, including “Tech TIPS.” Divided up between “Painters Corner” and “Body Corner,” the Tech TIPS offer Toyota’s information and advice for your technicians on such topics as blending, decoding paint codes and sensor recalibration. • The “Training News” category is divided up further by topics including “paint,” “body,” “electrical” and “safety.” I usually suggest starting with the “recommended procedures” topic because you’ll probably find something of immediate use and interest, such as articles on zero point calibration, calibrating bird’seye view cameras and welding tech-
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DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
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are offered online through the website, and you can also find a complete schedule for the instructor-led courses Toyota offers at its three training facilities around the country. (A fourth location is “coming soon.”) • I also encourage shops to sign up to receive Toyota’s “Collision Pros” magazine. It’s a free quarterly publication that offers repairer information on Toyota’s newest vehicles, advice on finding the Toyota information you need and tips such as how to Videos on the site offer information on such topics as order replacement vehicle scanning Toyota vehicles information labels. You can Eric Mendoza walking you through sign to receive it using this link: the proper procedures for conducting https://tinyurl.com/CollisionPros. a “health check” (a diagnostic scan) But until you receive your first copy on a Toyota vehicle. (or if you ever want to see articles • If you haven’t already done so, from previous issues), some of the use the “CR&R Info” tab from the magazine’s content is available at the home page to register for the “Se- Toyota training website. cure Personal Identification Number” (SPIN) that you need to register I commend Toyota for creating all for any of the collision repair train- the content that they have to help the ing courses Toyota offers for both industry. Now it’s up to you to put dealership and independent shop the website to use to help your techtechnicians. Many of those courses nicians and your business. niques that minimize heat-effect. • The “Video” category includes about a dozen brief videos. One of the best videos features Toyota trainer
KEARNY MESA
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Continued from Page 38
Jennifer Jarzembowski
quality repair for the consumer.
Jennifer Jarzembowski joined PPG automotive refinish in May 2018 as national account manager, OEM after sales. She works with OEMs on the growth of their certified collision programs, PPG product approvals and identifying opportunities for their field sales organization. Jarzembowski has more than 10 years of experience working with facilities on a national level and assisting them with achieving OEM certifications. She brings a wealth of knowledge in certification requirements, including equipment and training. Her goal at PPG is to help bring value and profitability to already-certified shops and those seek-
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ing certification. Prior to joining PPG, Jarzembowski worked with Assured Performance Network (APN) as director of certification integration and OEM account manager. Before APN, she spent 24 years with Axalta Coating Systems as a national account manager. In this role, she was responsible for various aftermarket collision programs, including building and maintaining program materials and managing a network of inspectors. She also held positions in managing color & technical service, regulatory, health & safety and product management. Her career also includes eight years as a Russian linguist and U.S. Naval petty officer, as well as four years as a licensed Part 135 and 121 aircraft dispatcher. She studied languages and world business at Eastern Michigan University.
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43
PPG to Acquire SEM Products, Inc.
PPG announced that it has reached a definitive agreement to acquire SEM Products, Inc. The transaction is expected to close in the fourth quarter 2018, subject to customary closing conditions. Financial terms were not disclosed. SEM is a leading manufacturer of repair and refinish products used primarily for automotive and other transportation applications. The company is known for various flagship products that offer convenience, including Color Coat, the original flexible coating and mixing system; Bumper Coater, the first product to restore original equipment manufacturer (OEM) finishes on plastic bumpers and cladding; and Dual Mix, a two-part cartridge system for adhesives, fillers and sealers. “PPG’s acquisition of SEM will complement our current automotive refinish product offering and add specialized, value-added products that address the needs of distributors and body shops,” said Gary Danowski, PPG vice president, automotive refinish. Continued from Page 35
OEM Summit
He said unlike some of the automakers, Mercedes has defined what a “certified repair” is, and repairers on the program can offer the customer “signed proof” that they followed Mercedes repair procedures. GM Defends Required Use of Mitchell Estimating John Eck of General Motors said more than 1,000 shops have already applied for its broader collision shop certification network, which officially launches next year. He defended the program’s required use of the Mitchell International estimating system, saying GM wanted a partner that could integrate the automaker’s repair procedures into the estimating system, eliminating the shop’s need to research those procedures as a separate process. (He noted those procedures are available for all Mitchell estimating system users, not just those in the certified shop network.) He said GM 44
Continued from Page 32
The Fabulous ‘50s
As the industry as we know it today was taking shape, it was composed primarily of skilled auto body craftsmen—artisans who knew how to work metal. However, many lacked the leadership and professional skills to deal with the more business-savvy insurance companies and the changing landscape. They were craftsmen, not businessmen. According to a report done in 1969, almost 10 percent of those in business during the 1949–1954 period refused to change with the times and the changing industry dynamics. Instead of changing, they became bitter and frustrated, allowing the industry to be permeated with low-paying or no-paying work. This later paved the way for early industry leaders, such as Silvie Licetra, to conduct business training courses in the early 1960s, which became popular. Then, according to the industry veteran, from 1954–1959 things started to go downhill. Insurance also needed an estimating platform available throughout North America. (CCC Information Services’ estimating system, for example, is not available in Canada.) Eck said efficiencies, rebate opportunities and other benefits for certified shops can also help offset the cost of adding another estimating system if a shop wishing to join the program needs to do that. “We made a choice and a business decision, and I think every repairer is in that same position,” Eck said. “They have to make the decisions that make sense for their business.” He said GM will be measuring and scoring certified collision shops based largely on their documented research and use of those procedures, along with customer satisfaction and cycle time. John Yoswick, a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (www.CrashNetwork.com). He can be contacted by email at john@Crash Network.com.
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
companies found it difficult to find good appraisers. They were illtrained and not experienced. They became argumentative. Out of frustration, this was the period auto body associations, some around since the early 1940s, began to be more prevalent. The only problem was that those shop owners in the association would say one thing at the association meetings and do the opposite at their shops the very next day. Shop owners began to ask insurance companies to be their “shop of choice,” setting the stage for the future DRP concept. As an incentive to the insurance companies, some shops offered a 10 percent parts discount on claims. However, many made the offer “tongue-in-cheek,” knowing that they would increase the labor charges to make up for it. Thus, the insurance company demand for parts discounts was on. Prior to this time, body lead was required to fill small imperfections in sheet metal. The lead was sold in 1pound bars, 20 bars to a box. It was heated and turned into a molten form, then worked into a fender or other sheet metal panel with a wooden
spoon. It worked pretty well. But by about 1955, health and environmental issues raised with the use of lead spelled its demise. A Mr. J.C. O’Donnell invented body filler in 1955, but it would take another year before it was referred to as plastic body filler. Next to the development in 1956 of acrylic lacquer by DuPont Company and Rinshed-Mason, plastic body filler was one of the most profound developments of the collision repair world in the ‘50s. It didn’t take long before many simply referred to all plastic fillers by one of its most popular trade names: bondo. Plastic fillers were easier to use, enabling the shop to make a cheap and fast repair. The problem was, however, that early plastic fillers sometimes fell off the car, prompting either a redo of the repair or a very angry customer—or both. O’Donnell went on to found the Unican company on July 31, 1962, which is wellknown for its variety of body filler products. By the mid-1950s, the collision repair industry as we know it today was in full swing.
autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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National Associations with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
CCRE’s Fall Seminar & Convention Teaches Body Shop Owners Another Way of Conducting Business On Sept. 28 and 29, the Coalition for Collision Repair Excellence (CCRE) held its Fall Seminar and Convention at the Embassy Suites at the Atlanta Airport. According to CCRE President Tony Lombardozzi, “Attendees hailed from all parts of the country, including Utah and Alaska. The room held a full house of eager-to-learn collision repair shop owners and other guests who wanted to learn another way of conducting business in our industry. Many of them have realized that the present system is not working and is not a profitable method of operation.”
the group strives for collision repair excellence and the right to operate as independent business owners without being influenced by a third-party entity. The presentation then continued to explain that the industry fell into this state through apathy, poor business management skills, inappropriate behavior, insurers’ influence and the industry’s poor image. Lombardozzi emphasized that the correct alignment of contracts is a repair shop having a contract with the vehicle owner while the vehicle owner has a contract with the insurance company. When the contractual rela-
Steve Behrndt presented on job costing during CCRE’s Fall Seminar in Atlanta
The weekend commenced with Lombardozzi’s opening introduction, followed by a presentation on how the industry ended up in its current condition, where it is today and where it is headed in the future. He shared, “We spent a great deal of time discussing how we let go of the control of our industry and how we let insurers into the repair process.” Lombardozzi’s “An Educational and Networking Experience with Industry Peers” began by focusing on who CCRE is, how it has influenced the industry and what its future plans will entail. Future plans include development of state-by-state programs to develop a systematic resolution of day-to-day business issues, a network of attorneys for assistance in business-related situations and consumer issues, continued educational opportunities for shops and the teaching of the importance of documentation as 46
tionships become a “terrible triangle,” the repairer loses. Discussing insurer interference in the collision repair industry, Lombardozzi touched on hold harmless agreements that insulate insurers from liability, specified vendor purchasing, insurer supplements, the required use of crash guides for estimating and much more, predicting that the industry is in for an even tougher future if shops do not establish contracts with the vehicle owners directly, educate consumers, and remove the insurer’s third party influence from their businesses. One way to do this is by creating necessary procedures, for which attendees discussed some options. Lombardozzi shared some rules and tips for everyone to follow to take control of their businesses. He also advised, “Stop sharing information on social media, and quit bragging and boasting online; Big Brother watches everything! We are
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
trying to solve a difficult puzzle, but the goal is attainable; if you learn the process, the pieces will all fit together. It’s time to begin making money, not just repairing vehicles!” Next, Jeff Bryant of Autosport Body Works delivered a presentation on billing paint and materials using a cost accounting program. Lombardozzi recalled, “One of the highlights of his discussion was how he discovered that almost 50 percent of the materials he was using were never being billed or accounted for. After using a P and M invoicing program, the shop’s profits on those materials being used increased substantially.” Bryant explained that paint and materials are the cost of doing business, but that any costs incurred to produce repairs should be a profit center for the business. He explained, “The rate per hour
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system has no real basis in reality and is not profitable, so why do we still use and accept it? Because the insurance companies like it because it benefits them. You will never win as long as you play their game by their rules on their field!” Exploring the cost of the rate per hour method, Bryant walked attendees through some financial scenarios. He shared, “The first year Autosport implemented paint and material cost accounting and proper collecting, the results were an additional $67,000 collected. A 6–8 percent increase is huge considering most shops operate on a less than 5 percent net profit margin.” Bryant shared how to account for paint and material costs in the shop, how to account for allied materials and how to assist the vehicle owner in getting reimbursed from their insurer.
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“You have to be willing to hold the customer accountable for the charges. It is hard to argue with facts, so make it factual and be willing to defend it,” he said. The last presentation on Friday was “Managing Customer Expectations: CCRE Guide to Implementation,” delivered by Shane Coker of Cokers Auto Body in Alabama. He “discussed his new method of business and front office management that has made it easier and more relaxing for him and his family while at their facility. He also discussed the many documents and forms he has created and shared those documents with all those in attendance, and additionally, word tracks and proper nomenclature of operations were discussed,” Lombardozzi shared. Coker began by asking, “What does consumer choice mean to you? What should it mean? It’s not just about choosing your shop … It’s choosing in everything!” He went on to talk about scheduling your day, refusing to negotiate with the insurance company and the value of educating the consumer. “If the customer ‘hears’ what
the insurer may say beforehand, they are prepared to counter, plus it builds credibility for the shop when the customer is prepared for insurance company attempts to steer,” he said. Moving on to integrating customer forms, Coker talked about estimate authorization, including prequalifying the customer, recording the vehicle owner’s intentions, the level of repair and how the entire conversation with the customer presents an opportunity to educate them, even if they choose not to repair at your shop. He went on to discuss disassembly, diagnosis and the repair contract, which “sets the rules of the repair and expectations for payment, protects the customer and shop and explains the contract of insurance is between the vehicle owner and insurer. The repairer is not party to the contract of insurance.” After discussing how his shop now handles interactions with insurance companies, Coker advised, “Start with one or two customers each day, not everyone. Don’t kill yourself in the beginning by trying to educate everyone that comes through the door. Learn your script; become com-
fortable with your techniques and materials, find out what your customer wants and decide if you can deliver. Long-term, we need to separate the shop from the insurance company by taking control of our shops [and] educating customers so they become advocates of our shops and make the insurance company irrelevant in our businesses.” On Saturday morning, Steve Behrndt of Crawford’s Auto Center in Pennsylvania presented “CCRE Job Costing.” Lombardozzi explained, “Steve presented a job costing program that provided the reasons for using this type of system and how it could be implemented in even the smallest size shop. Knowing your costs will allow you to know what price to sell your services for and be profitable at doing so.” Asking how shops determine hourly rates and how they know the cost of doing business, Behrndt encouraged attendees to engage in job costing on each and every repair order. “Every other industry realizes the need to job cost. Manufacturers need to calculate labor, materials, ad-
ministrative, research and development costs, as do other businesses, to find their gross profit,” he said. “Why not body shops, or do we not want to know? Not wanting to know seems to be the normal reaction in the industry because we have been programmed to accept less, but the answer is right in front of us ... If you continue to do what you’ve always done, you will always get what you always got.” He questioned how shops can know that estimating databases are accurate if they do not job cost. In order to know an employee’s actual wages, shops need to track an employee’s individual labor tasks and then calculate their true labor cost, which includes their hourly rate as well as all benefits. Discussing the difference between an estimate and a repair order, Behrndt identified an estimate as a third-party’s supplied document, which is “a guesstimate of damages sustained, a rough calculation only.” He also emphasized that automated estimating programs are only guides. “These programs do not write repair orders,” he said. “They are only guides! The first step in taking control of your business is realizing you can-
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not operate your business profitability following an estimate prepared by a third party. The second step is to eliminate the third party’s estimate from your business, and the third step is knowing you cannot use an estimate as your final invoice. You cannot job cost by estimating, and you cannot estimate your job costing.” Reiterating that it is possible to make a profit in the industry, Behrndt told attendees that it begins with job costing each and every job. He explained how to calculate a shop’s average gross profit by tracking every order, including labor tasks performed, all parts utilized in the repair, sublets, mark-ups, return items and sales tax amounts. He said, “We want to help shop owners grasp the importance of tracking expenditures and become more profitable by helping you understand the true costs within your business vs. your operating costs.” Behrndt walked through examples and calculations to show how many shops operate at a financial loss. He talked about a variety of ways to track technicians, and he concluded by elaborating on the importance of ac-
curate, complete documentation. The final presentation, “Autosport Testimony and Customer Expectations,” was delivered by Shey Knight and Bryant, who shared their experiences working for Autosport Body Works, a former DRP shop that they eventually ran according to the CCRE philosophy. Lombardozzi noted, “They discussed how to meet your customers’ expectations and listen to what they are really asking of you. They discussed repair contracts and other documents that are in use at their facility and how these documents and processes have made them a more profitable business.” Autosport Body Works became a DRP for State Farm in 2001. The business enjoyed increased business and a good partnership until State Farm started expecting more and more for less money. According to Knight, “Our ‘partnership’ with State Farm started to look more like a dictatorship, and we started to hate the business we once loved.” Despite the belief that it was the way the industry had always been,
Knight and Bryant believed there had to be a better way. So, they started talking to other shops and got involved with CCRE to create a system that worked for them. Bryant shared, “So, what’s the problem with our industry? We all have different ideas and practices, but instead of working together, we fight amongst ourselves. We are all too busy to take the time to step out of our business so we can work ON our business. We are all at different stages in running our business, but I urge you to take your first step in becoming truly independent.” Knight and Bryant then went on to explain how they run their business. Vehicle owners contract with the shop, and insurance adjusters are not permitted to enter the shop or work areas; only after a vehicle has been disassembled and moved out of the shop can an adjuster sign in to see the vehicle on their lot. They refuse to accept insurer estimates and will not negotiate with the adjusters. Rather than write estimates in rates and hours, they bill in dollars, and they will not supplement insurer estimates; however, at the vehicle
owner’s request, they will provide a Notice of Deficiencies. Knight stressed, “The key to it all is the customer! You have to become customer-focused and remove the third party influence.” The presentation continued to cover customer expectations, the customer service process, obtaining the commitment, rejecting excuses and keeping the customer involved throughout the repair process. At the end of it all, Knight and Bryant emphasized that shops can get paid, saying, “Simplify. Educate yourself. Educate the consumer. Be persistent. Be patient. Get support. Have fun.” The seminar concluded on Saturday afternoon with breakout sessions and open discussions on a variety of topics pertaining to the industry, and attendees shared their challenges and the solutions they had found. Lombardozzi stated, “Judging by the feedback from those who attended, this was a very successful event for all.” For more information on CCRE, visit theccre.com.
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How Safe Is a Collision-Repaired Police Vehicle? by Gary Ledoux
We’ve all seen them on television shows, movies and of course in real life—police cruisers all smashed-up, usually as a result of an accident, sometimes sustaining collateral damage when forcing a “bad-guy” off the road, sometimes damaged at the end of a high-speed chase. In any case, the cars need to be repaired and put back in service. Having never delved into that side of the business and given the recent changes in auto-building technology,
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that most departments have weaned themselves of the older Ford Crown Vics and that they are now into newer vehicles with new technology, it was worth a little investigation. Autobody News spoke with several police departments from Florida to California with fleets ranging from a dozen cruisers to almost a thousand. Also interviewed were several body shops in Florida, California and Texas, including dealerowned shops and independent shops. Several other shops and six other police departments were contacted for the article but declined to be interviewed. We were able to speak very briefly with a representative of the NYPD. Most of the old Ford Crown Vics built with old technology are gone, except for a few that have been retained as back-up vehicles for when front-line cars are out of service. Most departments now use either the Ford Explorer or the Dodge Charger. A couple of smaller departments in Texas like the Chevy Tahoe. And most cruisers are not more than 4 years old. One police department fleet manager stated that 25 percent of their fleet is turned over every year, which is very conservative. Other departments do it more often 50
or overturn a larger percentage. The number of wrecks a department endures seems to be directly proportional to its size. The two small departments we spoke to in Texas might have one wreck per year, per department. The large sheriff’s department in California with almost 1,000 vehicles will have 40 to 50 cruisers down for collision repair on any given day. One of the key questions posed to both shops and police department fleet managers was about how a particular shop was chosen to repair police vehicles. A shop owner in New York claimed it was because of their good reputation and because he promised to get the cars in and out as soon as possible—not making the car wait in a queue but bringing it in right away. There was no other vetting process. One of the dealer shops noted that the local police have been buying vehicles from them for decades. They have counted on the dealer to take care of all their needs, both mechanical and collision. Conversely, the owner of an independent shop noted that the local police department gets three bids from three different independent shops and simply goes with the lowest bid. A California sheriff’s department had a more business-like approach to selecting shops, sending out an RFP (Request for Proposal) to a number of shops all over the county they cover. They looked for shops that had ASE-certified techs and were I-CAR Gold Class and well-equipped. However, being that the county covers more than 7,000 square miles of mostly rural area, many of the shops making repairs were small operations that may not be Gold Class or employ ASE technicians, which was not a dealbreaker for the sheriff’s department. They opted to have the cruisers fixed locally in the rural areas by what may be a less-than-qualified shop, rather than have the cruiser towed to a bigger, better-equipped shop. Other departments selected shops based on a bid process, going with the shop with the lowest labor rate.
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
One department fleet manager noted, “For years, we used the same shop here in town—they were always the lowest bidder. Unfortunately, they have gone out of business, so now we need to find another shop.” We asked department fleet managers if they were aware of some of the new technology used on late model vehicles, including the use of HSS, UHSS, aluminum, magnesium and the new methods required to properly repair them. We asked if the shops they were using were properly equipped, the technicians were properly trained and the technicians were kept current on their repair knowledge. We asked if they knew about I-CAR Gold Class shops or ASE Blue Seal shops. Some fleet managers had some cursory knowledge of the latest trends in the industry but trusted the shop to be well-equipped, well-trained and current on the latest technology. We posed similar questions to the shops. Some were Gold Class, some not. Some had ASE technicians, some did not. When asked what other
training they had had, all answered training from their paint company for the latest paint technology. We asked if they had any OE certifications. One had a Nissan certification, but none had certification from Ford or FCA. We asked if they looked up repair procedures each time for every repair. Some shops said yes, through CCC. Some said no, it wasn’t necessary because all the police cruisers are the same. No one mentioned going to the OE website to look up repairs. We asked the shops if they scan every police vehicle in and out. Most seemed to understand the gravity of scanning and replied yes. When asked if they did the recalibration as necessary, all said they sublet it to the local dealer or in the case of a dealer-owned shop, sublet it to their own service department. (Note: It would appear that most Ford Explorers used as police cruisers have no ADAS systems, as these are part of a second- and third-tier upgrade trim level. Police cruisers, because of the
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The Next Generation Speaks Out on Their Collision Repair Careers by Chasidy Rae Sisk
It is common knowledge in the collision repair industry that there is a shortage of incoming technicians. Over the past few years, many articles, educational seminars and programs have been dedicated to this dilemma. However, while many industry professionals have spoken about what shops can do to engage millennials and Generation Z (those born between 1995 and 2009), rarely does this information come with feedback from the young people in these age groups who have decided to join the industry’s workforce. Why did these young people pursue a career in the collision repair industry? What factors are most important when considering a company for which to work? What misperceptions have they encountered about the industry, and how can the industry’s image be improved to attract more of their peers? These are some of the questions that several young industry professionals graciously answered for Autobody News. Their responses will help their more seasoned peers better understand their generation in order to attract and maintain new employees. Like any other group, no two individuals are the same, and their responses vary as much as their personalities. However, there are some underlying similarities and themes across their responses. Most of those interviewed were interested in the industry from a young age. Travis Jeske, a UTI graduate who works for Caliber Collision, grew up in the automotive industry with a mechanic for a father, and he decided to pursue collision repair training so that he could open his own mechanic and body shop one day. Alex Casillas-Mendoza, another UTI graduate and Caliber employee, shared “I have a passion for cars and have always been intrigued by the engineering, assembly and disassembly of any vehicle.” Nineteen-year-old Meghan Grant worked in the garage with her dad when she was younger and developed a “passion for cars, trucks, bikes—you name it. Typical fatherdaughter stuff. My mom, on the other 52
hand, was very artistic, so I was always painting and doing arts and crafts with her. I love being able to create things on my own, so I figured, why not mix the two? I started dabbling in the collision repair industry when I was around 13 and started seriously pursuing the field when I was 15.” Shiloh Taft, an employee at Julian’s Auto Body and Frame, has “always enjoyed working with my hands and fixing things. It’s amazing to get
nothing but increase. I was excited to find out there was a one-year vocational school I could attend to put me in a career I actually wanted to do. [When seeking employment,] the most important factor to me was getting my student loans paid off within the next five to 10 years, so I didn’t apply to companies that don’t offer student loan benefits, but luckily, I found a company that has decided to help me repay my student loans once my probation period ends.”
Casillas-Mendoza agreed that the most important factor when considering a place of employment is “the opportunity to grow and build my career path progressively.” For others, the work environment plays a vital role in their decision-making. Taft stated, “A good group of people can really make work flow more efficiently. It’s very important for me to work with people who have the same goals as I do so we can get
something that’s broken and restore [it to] its original form.” ABRA’s Mackenzie Hanberry found the industry a little later in life when she was working in the car wash industry and became interested in learning body work as a response to customers asking her how to repair issues with their vehicles. Looking at what’s most important when considering a job, the young industry professionals were given five categories to prioritize: company culture, compensation and benefits, charity and community involvement, training opportunities and potential for advancement. Overall, training opportunities were the most important factor. Potential for advancement tied in second place with compensation and benefits, followed by charity and community involvement; company culture came in last. For Jeske, “All of these are about the same importance. What’s most important is a good process because without it, work becomes a nightmare. How the shop is managed and that quality repairs are being performed outrank everything else.” Student debt assistance was a very important consideration for Ashley Cambern of Woodlands Collision Center after she graduated school and began looking for employment. “After high school, I wasn’t prepared to go to college and study four more years when I could be out in the world doing something I love and making money,” she said. “Plus, college tuition prices have done
Potential for advancement is also vital to Cambern, who stated, “I don’t want to work anywhere that I can’t get a better-paying job in the long haul. I understand starting at the bottom and working your way up, but if you have the skills and they hold you back—you don’t need to work for a place like that.”
the job done in a timely manner and do it right the first time.” Grant added, “I already love what I do, so the only thing that extremely concerns me is the work environment. I wouldn’t want to work somewhere that management was horrible and made me feel like I didn’t want to be there.”
“I already love what I do, so the only thing that extremely concerns me is the work environment. I wouldn’t want to work somewhere that management was horrible and made me feel like I didn’t want to be there.” — Meghan Grant
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
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These young professionals shared a lot of opinions about misperceptions of the industry. Cambern said she feels that many people believe “you have to be trained your whole life to work on a wrecked vehicle, but it’s really just about getting familiar with the types of materials used, understanding how they fit on the vehicle and learning how to do the repair.” Hanberry takes the opposite view. “One big misperception about this industry is that anyone can do this, and while technically that’s true, I feel it takes a certain type of skill set that needs to be required as a technician becomes more and more advanced,” she said. The largest misperception Grant has noticed “revolves around women in the industry. I’ve experienced firsthand people saying women can’t do it, and they’re awful at it and not strong enough. It really breaks my heart but also fuels it… whenever someone tells me women can’t work in this industry, I do my best to prove them wrong. The collision repair industry needs more women because women
in this industry are amazing at what they do!” Taft shares a similar experience. “I always hear, ‘You don’t look like a collision repair technician.’ What is a technician supposed to look like?” she said. “Some men in this industry have also told me I shouldn’t be doing a man’s job. The only way to combat that is by proving them wrong and showing that we women can do just as well as they can.” The general consensus for improving the industry’s image is making sure the job is done well and the customer is happy. As Cambern pointed out, “Just one positive thing can go a long way.” Hanberry added, “The better the repair, the more work will come in and the more money will be produced.” Public image is also a major factor that needs improvement. Casillas-Mendoza noted, “We are often portrayed as the bad guys. When insurance companies fight about repairs being done per OEM requirements, it delays vehicles getting repaired in a timely manner and results in customers getting upset with the shop. We need to regain control
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ready decided what they want to do in life. We need to get kids interested in cars and ensure high schools keep having shop programs – that’s how I got into this industry,” he said. A big deterrent to pursuing a career in the industry is the view that more experienced professionals have of the younger generation. Hanberry shared, “Being a millennial, we have a really bad reputation of being lazy and not wanting to work for our money. That’s how the older generation sees us, but if they’d sit down and work with us, they’d realize we are driven by hard work and being rewarded for that work.” Casillas-Mendoza believes the older generation should recognize “that we have a fresh outlook on the industry, and we’re ready to work hard and grow in experience to become the next great generation of technicians. One major thing older guys do is underestimate the new generation techs. They think we don’t have the drive it takes to succeed in this industry, but I work hard to achieve OE-approved repairs and prove to myself and others that our generation of technicians can do as well or
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of our industry and not let insurance companies dictate how vehicles should be repaired to improve turn-around time and provide a better customer experience.” When asked how to attract more young people to the industry, Cambern and Hanberry agreed that money talks. According to Cambern, “People my age are going to college or just getting out, and paying for their student debt is the biggest thing on their mind. Also, tools are very expensive, and you can’t make money without them. I think more people would be interested in this industry if employers offered a $2,000 voucher for tools that could be repaid slowly through monthly payments.” Hanberry added, “I understand starting at the bottom, but as a technician gets better and learns more, their pay should increase. More people are flocking to work on computers, and few people see manual labor as rewarding.” Jeske believes the industry needs to work on attracting fresh blood at a younger age. “Most people my age have al-
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
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better than the older generation of industry veterans.” According to Grant, “The biggest thing the older generation should know about us is that there are lots of us out here with a thirst for knowledge who want to get dirty, work hard and learn. Some of us might take a little more time than others to learn, but most of us have that drive, thirst and hunger for more knowledge so we can become the best we can be.” Cambern hopes that established industry professionals will also recognize her generation’s need for advancement. “We’re capable of doing things they’ve been doing for a long time,” she said. “Many places that hire people from my generation often lose them because there’s no room for advancement. It seems that younger technicians are only promoted when an older guy retires or passes away. My generation likes to feel wanted and important; they strive to do their best when they feel like they have purpose, but if their job doesn’t provide those things and offers no room for advancement, they’ll move on because there’s no reason to stay in
a job that gives them no purpose.” Brandon Eckenrode, director of development for the Collision Repair Education Foundation, agrees that the industry needs to focus on getting students involved in collision repair and showcasing the industry in a better light at middle school and high school levels. “The industry needs to take on responsibility. Many misperceptions about collision repair can be rectified simply by making shops and schools look professional,” Eckenrode suggested. “We need to address this at a local level by getting local employers involved to demonstrate the need for these programs. Career fairs are also helpful for showing there are plenty of jobs available for those who are properly educated.” Offering an example of a local industry-led program that has effectively engaged local students, Eckenrode noted, “Since the Atlanta I-CAR Committee got involved with their local high school, they’ve raised nearly $400,000 to reinvest in the programs, and enrollment has doubled. The Committee’s involvement with local collision repair programs
and students has had a drastic impact on the school.” Gerry Poirier, chair of the Atlanta I-CAR Committee, recalled, “We got involved because we needed to do more than just try to get more techs into the industry. We reached out to Maxwell High School of Technology around seven years ago and approached the faculty to explain our goals. They had around 20 kids in their collision program at the time. We established an Advisory Board and started fundraising for them. We’ve donated nearly $100,000 in grants, scholarships and supplies, and their program now attracts around 80 students each year.” The Committee is also involved with Athens Tech, Chattahoochee Tech, Atlanta Tech and North Georgia Tech, all of which have received CREF’s Makeover Grant. Their next phase will include a signing day program that guarantees employment to good students. Poirier said, “We want to define career paths, help the schools determine if the paths are a good fit for their students and encourage students to follow the path.”
Continued from Page 40
WINner’s Mindset
everything in your life. Failure is a necessary part of the success process. You can’t have real success in your life unless you fail.” Concluding the webinar, Luehr shared a poem called “Our Deepest Fear,” written by Marianne Williamson. It begins, “Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness, that most frightens us.” Luehr reiterated, “Right now is the best time in history to be in the collision repair business!” before opening for questions from attendees. For more information on WIN, visit womensindustrynetwork.com. For more information on Luehr and Elite Body Shop Solutions, visit elitebody shopsolutions.com
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Tips for Busy Body Shops with Stacey Phillips
Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.
5 Key Steps to Implementing Practical Production Processes “Sometimes I think pushing a repair through a collision center is like putting a bag into the security scanner at the airport,” said John Shoemaker, business development manager for BASF Automotive Refinish Coatings North America. “You put the bag on the belt and hope it comes out the other end without any complications.”
John Shoemaker, business development manager for BASF Automotive Refinish Coatings North America
Shoemaker spoke to a group of body shop owners and managers during NACE Automechanika in Atlanta, GA, this past summer about practical production processes and how critical it is to incorporate them into your business. When Shoemaker walks into a body shop, he often notices half-repaired vehicles waiting for a missed part or sublet vendor to arrive. Dur-
that the car is ready to be repaired,” he said. “There are little things you are going to need as you work on that vehicle, and if you don’t have those things, your technicians are just staying busy working on cars but not being productive—completing repairs and getting them out the door.” His advice: “Don’t put a vehicle in production until you are 100 percent sure that it’s ready to be repaired and will go through the shop without any stoppage.” Shoemaker said that careful production planning can reduce the “chaos” of collision repair. Experience has shown that it can also help with productivity and reduce cycle time, improve touch time and ultimately improve overall customer service and a shop’s key performance indicators (KPIs). Shoemaker shared five key steps to repair production planning:
1) Systematic damage appraisal inspection – itemizing all operations necessary to repair the vehicle
The first step is to review the vehicle using a damage appraisal as a guide and disassemble the car to ensure all of the damage is identified. As you disassemble the vehicle, systematically list the parts that will be needed for any identified repairs. “A certified tech and damage appraiser should identify every single step that’s involved in repairing that vehicle on day one,” said Shoemaker.
John Shoemaker stressed the importance of putting a vehicle in production when you are 100 percent sure that it’s ready to be repaired
ing his presentation, he stressed the importance of ensuring that everything needed to repair the car is organized in advance. “Just because you have an estimate and a technician doesn’t mean 58
2) Focus on all parts, materials and sublet identified on the damage appraisal
Next, Shoemaker said to determine the type of part to be used, whether it’s OEM, aftermarket or recycled. “Not only should you have the parts necessary, but you should also have everything related to replacing
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
that part,” he advised. This includes accessory items such as fasteners; decals, emblems and labels; seam sealers, corrosion protection and sound pads; and pin-
to follow OEM repair procedures every time to learn exactly what is going to be needed for the repair and to reference Standard Operating Procedures (SOPs) from companies such as 3M. Another option is asking the dealer selling the parts to obtain the OEM procedure. “If you order a roof panel from somebody, ask them to send the repair procedures with it,” he said.
3) Validate available reference materials that were used Tim Rousseau, technician, at Tom Bush Collision Center to capture repair process opin Jacksonville, FL. Credit: Tom Bush Collision Center in erations During this stage, Jacksonville, FL Shoemaker said it’s critical to stripes. He said to pay close attention capture all operations using P-Pages, to validating internal/external repairs information from ALLDATA, the such as glasswork, key coding, me- SCRS Guide to Complete Repair Planning, the vehicle manufacturer repair chanical repairs and framework. Shoemaker encouraged attendees See 5 Key Steps, Page 61
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autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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Day Job/Night Job
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
with Ed Attanasio
Industry Veteran Creates Vintage Wine Furniture He’s got mad skills when it comes to making furniture out of wine barrels and old wood that he finds or purchases for his creations. It’s something he does when he isn’t meeting with insurance companies as the director of insurance relations for Cook’s Collision. Frank Quadrato has 37 years of experience in the collision repair industry in northern California. He credits much of what he learned about the industry to Peter Lock, the former head instructor at Contra Costa College, where he graduated in 1986. After working for several independent shops as a technician to learn every facet of the industry, Quadrato was hired by Cook’s Collision nearly 20 years ago. Seven years ago, Quadrato began building furniture and other items such as tables, fire pits, chairs and other items that are in high demand.
But his first creation was something completely different. “My son Chris (then 14) and I wanted to buy an old truck and restore it,” Quadrato said. “To raise the
Frank Quadrato’s wine furniture gets rave reviews and sells quickly
money, we designed and manufactured what we called ‘Dream Falls,’ a water feature made out of metal and slate. It was a nice father-and-son
project and an opportunity to teach Chris how to weld. We built a few of them and took them to the Clayton Wine Festival, and they were a hit. We did it the following year and got enough money to buy the truck. After we restored it, I was looking around for other projects, and that’s why I started making things out of wood.” To make the fire pits, Quadrato takes old wine barrels and re-purposes them. They’ve become a popular item and many of Quadrato’s friends and associates now have them on their patios and in their backyards. “I cut a hole in the barrel and put a fireplace insert in there and then make a small door for the gas hookup,” he said. “Then, I take winery box tops and attach them in a ring around the outside of the fire pit. People who love wine really appreciate the skills and craftsmanship that go into these fire pits, and I think
they also like the fact that I am taking these old barrels and making them useful again.” The wine barrel fire pits take 8-10 hours on average to make and retail for $950. Quadrato sells them at wine festivals throughout the Bay Area and gets a lot of satisfaction with great reviews for his work. In addition to designing and building a wide range of other items, he is always looking for that next project and challenge. “I’ve made thousands of things now, including large tables, candlesticks, chairs, stools, cabinets and all types of furniture using old, stressed wood,” he said. “I recently made an 8-foot table out of wood that I got from an old barn. I build everything from scratch in my garage and then we sell them at shows. I was an iron worker for three years before I became a body man, so I know how to
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DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
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build things, which allows me to creatively combine wood and metal in many of my pieces.”
Lisa (left) and Frank Quadrato work together to make tables, fire pits, chairs and other items out of old wood and wine barrels
Building furniture is a family affair at the Quadrato house in Clayton, CA, because Frank’s wife, Lisa, helps him with the staining and finish work. “She is great and has an eye for detail. We work very well together,” Quadrato said. “We always seem to have at least one project going on here. Recently, we made wine tables and chairs and sold them at four East
Bay wine shows. We have the best wine in the world right here, and people love the fact that we are repurposing wine barrels to make furniture.” A winery in St. Helena recently contracted Quadrato to make furniture after designing and building the vineyard’s sign. “I found an old barn in Martinez, CA, and disassembled it,” he said. “Then I took the wood and made picnic tables for AXR Vineyards out of it. I love using old and distressed wood because it has a distinct look and character.” Quadrato just turned 59. When the time comes for him to step down at Cook’s Collision, he knows that building his furniture will play a major role in his retirement. “It keeps me busy, and I like making things after fixing things for so many years. When I get a positive response from someone for a fire pit or a table, for example, it’s very satisfying and fulfilling,” he said.
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Think Genuine Subaru Parts.
Continued from Page 58
5 Key Steps
specifications and/or refinish procedures. “Make sure you have them attached to your damage appraisal,” Shoemaker recommended. “They should be systematically documented and work hand-in-hand so there are no questions down the line.” He said this outlines to everyone involved exactly what steps have to be taken for the repair and the process that is going to be used. The information can also be helpful in the event of litigation.
4) Review damage appraisal with paint team leader to validate refinish requirements The reason this is important, according to Shoemaker, is that team members often have differing opinions about what needs to be painted and how it should be accomplished. This may be related to paint code, validating blend areas and verifying the refinish process—whether it’s single
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5) Validate with the production coordinator, parts specialist and lead body technician
After the repair has been validated, Shoemaker said it’s time to develop a repair plan for the management system. “Having an accurate repair plan will help you create timelines for each step, monitor the progression and allow all involved to understand what needs to be done,” he said. “Having a solid repair production plan will help keep your customers properly informed and is the first step in having them completely satisfied when the job is complete.”
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stage, base/clear, tri-stage, four-stage or matte finish. By having everyone involved from the onset, Shoemaker said, you’re closing the loop and ensuring all employees have a voice at the beginning of the process. “Using this method, you’re able to confirm everything that has to happen on that repair the first day of the repair,” he said. “This allows everything to move steadily through the shop without stopping.”
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autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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Continued from Page 50
Police Vehicle
nature of the bid process, will be “base models” with no ADAS systems. However, other Ford models that may be used as detective vehicles or community outreach vehicles are not police-prepped, but regular civilian vehicles that would probably have ADAS systems. Based on current information on the FCA website, it would appear that base Dodge Charger models will have some ADAS features, but not all.) We asked fleet managers if their department specified the use of OE repair parts. One said that their contract with the shops calls for “OE or equivalent.” A department in Florida said, “We prefer to use OE parts, especially on newer cars. For older cars, or cars that are nearing retirement, it doesn’t matter as much. First and foremost, I need the car back in service.” A fleet manager in California noted, “We always request OE parts. However, there are many factors that would circumvent that, including
availability and price, or if it is an ornamental part or a structural part.” In New York City, the NYPD has so many vehicles that they are able to scavenge parts off one totaled cruiser to fix another that is repairable. Perhaps the most interesting part of these conversations centered on insurance companies and who pays for what when repairing a police vehicle. In cases where a third party is involved and a civilian’s insurance company must pay for the damage to a police vehicle, the battle over repair times, labor rates and parts is no different than it is on any civilian vehicle. However, when a department is self-insured, it’s a different story. A fleet manager for a large department noted, “We are self-insured, so fighting with the insurance company just doesn’t happen. The shop fixes the car and the bill gets paid.” A smaller department fleet manager noted, “We use an insurance company that specializes in small municipality fleets like us. When we have a wrecked cruiser, it goes to the shop right away and work is started immediately to get the car back in
WIN Announces Opening of Most Influential Women Nominations
The Women’s Industry Network (WIN®) recently announced that nominations for the prestigious Most Influential Women (MIW) awards will open on Thursday, Nov. 1, 2018 and be accepted through Monday, Jan. 14, 2019. The winners will be recognized at a gala during the 2019 WIN Educational Conference being held May 6–8, 2019 in Fort Lauderdale, FL. Nominations of women working in any segment of the collision repair industry across the United States and Canada are welcomed. “I’d like to encourage you to nominate the women in our industry who you know are making a positive difference in their companies, communities and/or the industry at large,” requested Cheryl Boswell, who co-chairs WIN’s MIW Committee and was also named a MIW in 2015. “The MIW nomination process is a great way to recognize deserving women and let them know they are making a difference.” Since its inception in 1999, the Most Influential Women program has recognized more than 90 62
women who have enriched the collision repair industry with their leadership, vision and commitment to excellence. WIN acquired stewardship of the Most Influential Women program in 2013 and continues to evolve the program to align with WIN’s mission of “driving the future of collision repair by attracting, developing and advancing women.” “It is important to recognize women for their leadership. This award focuses on four areas: industry influence, professional accomplishments, mentoring and support for others in the collision repair industry, and going beyond the requirements of their professional lives to give back to their communities,” commented Michelle Sullivan, WIN chair and 2016 MIW honoree. Additional information about the MIW program and the 2019 nomination form can be found on the WIN website at http://www .womensindustrynetwork.com.
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DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
service. Sometimes an adjuster may want to look at it to quibble over a few hundred dollars. I tell them to hurry over to the shop—otherwise it may be fixed before they get there. If there is a discrepancy, I have department funds to cover it. I need the car fixed right and fixed right now. I don’t have the time to quibble over a few bucks.” In an unrelated conversation with an independent shop, the shop owner noted, “The police don’t fight me over labor rate, what they will pay for and what they won’t when I fix a cruiser. However, when I submit my final bill, it may take them three weeks to look at it. And if something isn’t quite right, it gets sent back, I make a correction, and it may take another three weeks for them to look at it again. I have had some bills outstanding for over 100 days waiting on payment on a police cruiser.” When asked, “What was the toughest part of working on a collision-damaged police cruiser?” the one thing both shops and fleet managers could agree on was time … the time it takes to get the cruiser repaired and back into service. Most
departments retain a few older vehicles to fill in when a first-line vehicle is down, but it may not be an optimum situation for the police officer having to drive it. So … how safe is a collision-repaired police vehicle? Probably no more or less safe than any civilian car repaired by the same community of shops in America. The difference is that most civilian vehicles are not regularly driven at over 100 MPH and subjected to the severe driving stresses of accelerating, braking or cornering that a police cruiser is. For our men and women in blue, their job is stressful enough. Their collision-repaired cruiser should be as ready as they are to meet the job’s challenges. Each department’s fleet manager and each police officer is counting on shops for a complete and safe collision repair.
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The RIGHT
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autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
63
Number of Flooded Cars on the Road Jumps 47% Over Past Year That figure is a 47 percent increase— more than 150,000 additional cars— from 2017, when hurricanes Harvey and Irma devastated the Gulf Coast and Southeast. With two major hurricanes impacting the U.S. this year, the number of flooded cars cleaned up and resold will likely grow. CARFAX estimates that at least 107,000 vehicles were damaged during Hurricane Florence. To help protect consumers, CARFAX is letting them check for reported flood damage free of charge at CARFAX.com/flood. Vehicles reported as flood-damaged by a state’s Department of Motor Vehicles (DMV), Canadian province, insurance companies and more are in use in every state. These 10 states have the most flood-damaged vehicles (percent increase over 2017): 1. 2. 3. 4. 5. 6. 7. 8. 9.
Texas – 168,600 (230%) Florida – 34,400 (79%) Pennsylvania – 22,100 (11%) Kentucky – 21,700 (36%) Louisiana – 16,800 (-42%) Illinois – 15,500 (3%) South Carolina – 13,500 (4%) North Carolina – 12,400 (-5%) New Jersey – 11,900 (5%)
10. Michigan – 11,600 (6%)
The top five metropolitan areas with the most previously flooded cars back in use are Houston, New York City, Miami, Philadelphia and Dallas. “Our data suggests that severe weather events, especially historic ones like Harvey and Irma, have a nationwide impact. This surge in flood cars also underscores the importance of identifying these waterlogged wrecks before it’s too late,” said Dick Raines, president of CARFAX. “Flood cars can resurface no matter where you live, so we urge car buyers and sellers to use the resources available that will best protect them. Vigilance is key; start with a vehicle history report, mechanic’s inspection and thorough test drive to help prevent con men from ripping you off.” There are safety, health and financial concerns about flooded cars. Water can compromise the mechanical, electrical and safety systems of a vehicle, turning them into ticking time bombs. Hazardous mold and bacteria may develop in the soft parts of the car. Additionally, unsuspecting buyers often pay thousands more than a flooded car is worth.
CREF Receives $100,000 Donation From Allstate Insurance
Allstate Insurance Company has continued its strong commitment to the future of the collision industry by contributing $100,000 to the Collision Repair Education Foundation.
Industry donations such as Allstate’s assist the Foundation in its ability to support high school and college collision school programs, instructors and students nationwide. “Collision repair education is exceptionally important in preparing the next generation of technicians,” said Allstate Claims Vice President Dave Prejna. “Contributing to the Collision Repair Education Foundation is an investment in the future and something we take great pride in at Allstate.” “Allstate’s continued support 64
has allowed the Collision Repair Education Foundation to support collision schools that graduate students who are productive, efficient and capable staff members [from] day one on the job within the collision industry,” said Clark Plucinski, executive director of the Collision Repair Education Foundation. “As repair facilities are seeking the next generation of technicians who will be safely repairing consumers’ collision-damaged vehicles, Allstate’s support assists in our ability to help high school and post-secondary collision instructors provide a quality technical education to their students.”
Industry members interested in joining the Collision Repair Education Foundation’s roster of supporters to assist high school and post-secondary collision school programs and students should contact Brandon Eckenrode, the Education Foundation’s director of development, at (312) 2310258 or Brandon.Eckenrode@edfoundation.org.
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
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autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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AutoNation Embarks on New Parts Path by Gary Ledoux
The current dynamic for the collision repair industry is that parts have always been sourced from separate OEM & aftermarket providers. As a result of growing utilization of aftermarket parts, franchise dealers may have seen erosion of their OEM parts sales. “When an OE dealer’s parts department receives a collision parts order from a body shop, they only get 50 to 60 percent of what that car needs for replacement parts. The rest of the order, and the parts profit it generates, goes to the aftermarket or salvage,” said Tom Calloway, Vice President of Customer Care and Corporate Operations for AutoNation in a recent interview with Autobody News. AutoNation wanted to capture a greater share of the wholesale collision parts market, so it embarked with a new vision and business model to serve the collision repair industry. The goal: leverage its scale and expertise to deepen its market share by complementing the current OEM collision parts offering with aftermarket parts as well.
So in 2017, AutoNation set off to build the structure for its new offering – from sourcing and transporting parts from overseas to expanding its current wholesale distribution network to serve its cus-
Tom Calloway, Vice President of Customer Care and Corporate Operations for AutoNation
tomers. In keeping with the moniker of America’s largest automotive retailer, AutoNation continued to put
AutoNation Launches New Theme Vehicle for Breast Cancer Awareness by Gary Ledoux
Every two minutes, a woman is diagnosed with breast cancer. AutoNation has a deep commitment through its Drive Pink initiative, and is committed to drive out cancer, through awareness and critical research. AutoNation is a proud supporter of the Breast Cancer Re-
Robin Adkison, also known as “Robin1000,” a street artisan turned custom vehicle painter, stands with this year’s AutoNation theme truck.
search Foundation and other cancer-related charities. Since 2013, AutoNation has raised and donated over $16 million to fund cancer research and treatment from coast to 66
coast. This year’s Drive Pink themed vehicle is a new Toyota 4Runner painted with … of all things … spray cans. Debuting such a vehicle at SEMA seems almost odd in a world of high-quality paint and exotic application processes. But you can’t argue with the results. Texasbased Robin Adkison, better known in the world of street artisans as “Robin1000,” was busy painting street murals on sidewalks and on the sides of buildings when he was selected by celebrity and vehicle builder/designer Jeff Allen with Flat 12 Gallery to paint AutoNation’s themed vehicle. “I’ve been painting and drawing since I was a little kid,” said Adkison. “I’ve used pencils, oil paints on canvas and spray cans on brick and concrete, but this was the first time using ‘rattle-cans’ on steel.” The vehicle was completely stripped of its finish, then, over the course of three days, Adkison went to town with spray cans. “[There’s] a fine line between graffiti and art,” Adkison said. “This is definitely art.”
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
its scale to work in expanding its parts network. “With over 300 locations nationwide, representing most major brands, we were well positioned to take the business to the next level when we expanded both our distribution network and our parts offering,” Calloway said. In early 2018, AutoNation launched its expanded aftermarket parts distribution network in Washington, Northern California, Phoenix, Memphis, Dallas-Fort Worth and Orlando, with more markets scheduled for 2019. They also integrated into the industry’s top electronic ordering platforms. Along with the two-pronged offering of OE and aftermarket parts, AutoNation is supporting the new offering with single, consolidated deliveries. Although there are myriad logistics playing out behind the scenes, they will all be invisible to the shop ordering the parts. All they will see is the AutoNation truck delivering both their OE and aftermarket parts. Calloway explained that this will have a positive effect on a shop’s cycle time and margin improvement. Calloway commented that the
expanded OE/aftermarket parts solution has also helped its own collision network become more efficient. “One of our biggest customers to benefit from this is our own network of 80+ collision shops.” How has the industry embraced the new solution? Calloway explained that its own AutoNation collision centers, as well as current customers, like the new consolidated concept of OE and aftermarket, and early adoption is already demonstrating tangible benefits. Customers now reap the benefit of a new solution in the marketplace, supported by a backbone of experienced parts experts providing worldclass service. Calloway explained AutoNation’s reason for making this pioneering change. “With the marriage of OE and now aftermarket parts, we feel like we’ve created a winning combination for our customers, from MSOs to independents. By offering this new solution in the market, our network is creating efficiencies for doing business and enabling customers to lower costs. When they know ‘One Call Does it All,’ that’s a powerful partnership.”
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The Dealers Above Are Original MINI Parts Distributors ©2018 MINI, a division of BMW of North America, LLC. The MINI name, model names and logo are registered trademarks.
Fake Recall Notices Get Car Dealers in Trouble With FTC by David A. Wood, CarComplaints.com
We thank CarComplaints.com for reprint permission.
Fake recall notices have caused DCarea car dealers to settle a Federal Trade Commission (FTC) complaint that accuses the dealerships of mailing more than 21,000 fake “urgent recall” notices to consumers in 2015 and 2017. According to the FTC, the dealers and a marketing firm agreed to settle the deceptive advertising charges that allege the notices were mailed to convince car owners to visit the dealerships. The car dealers do business as Passport Toyota, Passport Nissan of Alexandria, VA, and Passport Nissan of Marlow Heights, MD. The marketing company, Temecula Equity Group, LLC, does business as Overflowworks.com and is located in California. Considering the huge number of vehicles on the roads that have open (unrepaired) recalls, the government has taken measures to combat fake recall notices sent by companies to convince owners to visit dealerships.
The National Highway Traffic Safety Administration (NHTSA) estimates 30 percent of drivers completely ignore recall notices, even if the safety defects could cost lives. In 2014, NHTSA announced that all manufacturers must use distinctive labels for recall mailings to consumers, using white, uppercase letters against a red background.
According to NHTSA, the recall label is intended to “help protect consumers from misleading sales and marketing materials that mimic, in their wording and presentation, legitimate safety recall alerts from manufacturers that can lead owners to purchase costly products and services that have no connection to a le-
gitimate safety recall.” However, the FTC says the DCarea car dealers sent fake recall notices that used the same color scheme as official notices sent by automakers. The government says the vast majority of vehicles covered by the fake recall notices did not have open recalls, even though the notices said, “URGENT RECALL NOTICE” in large, boldfaced uppercase letters. On the reverse side, it said, “VEHICLE RECALL NOTICE” and “WARNING” in large red and black boldfaced, uppercase letters on a white background. The FTC complaint alleges Passport first sent about 7,000 Toyota fake recall notices in 2015, and then the dealers sent about 14,000 notices to Nissan customers in June 2017. Those fake notices were mailed even though numerous complaints were made after the first notices were sent in 2015. The government says hundreds of vehicle owners contacted the Passport dealerships and were told the cars needed to be brought to the dealers to learn whether the cars had
Original Thought #78
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Sterling BMW Newport Beach 949-645-8729
unrepaired recalls. In addition, the FTC says some of those car owners paid for repairs that had nothing to do with recalls. While the FTC alleges the notices were mailed to increase business at the service departments of the dealerships, Passport claims the fake recall notices were mailed in an attempt to “correct unrepaired vehicles subject to a recall and it was not our intention to mislead anyone.” But although Passport says it mailed the notices to “correct unrepaired vehicles subject to a recall,” the company also says “open recalls were unavailable to Passport or other dealerships.” Passport further says the language used on the fake recall notices “was not created by Passport—it was originated by a California company unrelated to our business.” By agreeing to settle the allegations, Passport and Temecula Equity Group are “permanently prohibited from misrepresenting, expressly or by implication: 1) whether any motor vehicle is subject to an open safety recall or service campaign, or 2) certain other material facts about motor vehicles.”
• Original BMW Parts & Accessories When you repair a BMW, use the parts that are identical to those used in Series production – and just as reliable. Choose Original BMW Parts and Accessories. Because you can’t repair your reputation.
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autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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Why Are Thieves Stealing Airbags From New Honda Civics and Accords? by Jay Traugott, CarBuzz
If you own a late-model Honda Civic or Accord, or any relatively new Honda or Acura model, you might want to pay attention to this. Perhaps it’s already too late for some. According to USA Today, criminals across the U.S. have been stealing airbags out of late-model Hondas to resell on the black market, be it online or to shady local repair shops. Both the driver and front passenger airbags are being targeted. Law enforcement agencies in cities such as New York, Miami and the Washington DC area have noticed an increased number of Honda airbag thefts lately. However, this is also a nationwide issue. Unfortunately, this type of theft is not easy to track because both the FBI and the National Highway Traffic Safety Administration don’t track airbag theft. The National Insurance Crime Bureau estimates about 50,000 airbags are stolen every year. However, the NICB doesn’t track specific trends, such as Hondas specifically being targeted for their airbags, so it’s
unable to provide an answer as to why this automaker is a higher risk. In Miami-Dade County, for example, thieves stole 875 airbags last year. In 2013, only 13 airbags were stolen. In the Virginia suburbs around DC, thieves recently smashed the windows of 10 Hondas at an apart-
ment building complex for the specific purpose of stealing the airbags. Turns out, some Honda airbags can go for as much as $500 a pop at chop shops. “Because of their portability, airbags can be easily removed and installed as ‘new’ by unscrupulous collision repair shops,” the NICB said. “These dishonest operators will then charge the vehicle owner or their insurer the full price for the replacement, thus committing insurance fraud.” We thank CarBuzz for reprint permission.
AWAF Workshop Focuses on Finance, Accounting for the Non-Financial Manager by Chasidy Rae Sisk
On Oct. 19, the Automotive Women’s Alliance Foundation (AWAF) hosted its Fall 2018 Professional Development Workshop at the VisTaTech Center at Schoolcraft College in Livonia, MI.
Titled “Finance and Accounting for the Non-Financial Manager,” the four-hour workshop was taught by Jean Stenger, CPA and senior manager at DKSS CPAs and Advisors as well as treasurer for AWAF. Stenger’s educational, interactive and fun workshop focused on understanding the fundamentals of accounting and finance. She discussed how to read and understand critical financial reports as well as how to spot red flags and how to 68
use these reports to answer key questions about investments, business growth and more. Stenger also taught attendees to budget to add value, covered KPIs and lectured on projecting cash flow. Stenger stressed, “Own your financial statements. Know your number, talk your numbers and use your numbers to define your future—both professionally and personally. Become confident in your knowledge of the numbers, and never be afraid to ask questions!” Attendees included small business owners, professionals and managers in engineering, sales, program management, finance, purchasing, education and training. Participants agreed that the information Stenger shared was valuable, and interest was expressed in scheduling a fullday workshop on this topic.
For more information about AWAF and its events, visit awafoundation .org.
www.autobodynews.com
DECEMBER 2018 AUTOBODY NEWS / autobodynews.com
CREF Fundraiser Co-Hosted by PPG Raises $130,000 The annual Collision Repair Education Foundation industry fundraiser, co-hosted by the automotive refinish business unit of PPG, raised $130,000 through the support of attendees and sponsors.
Sponsors and participants enjoyed a day of golf at the Trophy Club of Apalachee in Dacula, GA, on August 6, 2018. The funds raised from this event will go toward supporting scholarships and grants for collision schools and students. “PPG is proud to support an event of this caliber,” said Tom Wolf, PPG director of business development, automotive refinish. “It’s an honor to bring together industry professionals from around the country and to assist the foundation in making sure that collision repair students are well-prepared for entering our industry. With the Education Foundation staff working towards another great event
OEM Parts You Need and Trust.
next year, I encourage industry members to participate through a sponsorship, by attending or by donating items for the raffle table and silent auction. This is a wonderful and important investment in our industry’s future.” “Through the generous support of sponsors, attendees and volunteers from the Atlanta I-CAR committee, we had another great golf fundraiser event that will increase the Education Foundation’s ability to support high school and college collision school programs. We must extend a special thanks to the automotive refinish professionals at PPG for their continued co-sponsorship of the event,” said CREF Director of Development Brandon Eckenrode. Next year’s event will take place July 23 in Indianapolis, IN, in conjunction with the events surrounding the Collision Industry Conference. Individuals and companies interested in getting involved with next year’s fundraiser should contact Eckenrode at (312) 231-0258 or Brandon.Eckenrode@ed-foundation .org.
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autobodynews.com / DECEMBER 2018 AUTOBODY NEWS
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DECEMBER 2018 AUTOBODY NEWS / autobodynews.com