Western Edition California Nevada Arizona
VOL. 31 ISSUE 8 AUGUST 2013
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ASA to Hold ASRW 2014 in Detroit Alongside I-CAR and CIC July 28–Aug 2 The Automotive Service Association (ASA) announced at the Collision Industry Conference (CIC) in Boston that the NACE expo will be moving away from its traditional fall event schedule to stage a summer show beginning in Detroit in 2014. NACE (the International Autobody Congress & Exposition), I–CAR (Inter–Industry Conference on Auto Collision Repair) and CIC (Collision Industry Conference) have announced the formation of Industry Week 2014, uniting several of the industry’s key events. The announcement was made by ASA Executive Director Dan Ris-
ley at the opening of this week’s CIC meetings at the Westin Boston Waterfront. Speaking in front of the assembly, Risley said the move backs the ASA’s promise he relayed at CIC in April that NACE will see substantial changes in the coming years. Industry week will take place July 28–Aug. 2, 2014 at Detroit’s Cobo Center, and has the following preliminary schedule of events: Tuesday, July 29 – CIC Meeting & Reception Wednesday, July 30 – I–CAR Conference & Reception See ASRW 2014, Page 13
Rodney Pierini is President & CEO of CAWA
serves as the voice of the aftermarket parts industry in the West. We sat down with Pierini recently to discuss his organization and how its role affects and impacts the aftermarket/warehouse parts business within the collision industry in the three states he represents and also on a national level. ABN: While representing your membership, how do your goals feed into the collision industry and how do you support your membership in these areas?
RP: The collision industry is a segment of the automotive aftermarket and as such we are in the business to See Rodney Pierini Interview, Page 48
Change Service Requested P.O. BOX 1516, CARLSBAD, CA 92018
Rodney Pierini has been the President and CEO of the California Automotive Wholesalers Association (CAWA) for the past 17 years. The CAWA a nonprofit trade association representing Rodney Pierini has automotive afterbeen at the helm of market parts manuCAWA for the past 17 facturers, jobbers, years, an organization warehouse distributhat represents automotive aftermarket tors and retailers in parts manufacturers, California, Nevada, jobbers, warehouse and Arizona. The distributors and organization was retailers in California, formed in 1955 and Nevada, and Arizona
State Lawmakers Around U.S. Consider Or Approve Legislation Affecting Body Shops by John Yoswick
Dozens of proposed laws that will have an impact on collision repairers get introduced in state capitols around the country every year. Paying attention to them—even if they aren’t up for consideration in your state now—can pay off because you may be interested in getting similar laws enacted in your state. Conversely, a bill you don’t like in another state could make its way to your Capitol, so it’s helpful to know what to watch for. Here’s a look at some of the bills that have recently been introduced, are under consideration or have been passed by lawmakers around the country. Parts-related legislation A New York bill (A 7234) (similar to
one introduced in Maryland) takes aim at PartsTrader by prohibiting an insurer from requiring a shop to use a specific vendor or process for the procurement of parts or materials necessary for repair of a vehicle. Another New York bill (A 3872) introduced would require consumer notification and consent regarding the type of parts to be used in repairing their vehicle, and would prohibit the use of anything other than new OEM parts for vehicles less than three years old. A similar bill (HB 362) in Vermont would place a 2-year ban on the insurer-use of the parts on new cars. New regulations that will go into effect in California early next year place significant new limitations on the use of non-OEM parts in that state. See Legislation Affecting Shops, Page 14
Special Cerritos Tradeshow Draws About 400 and 50 Vendors for Training and Fundraiser A special tradeshow and training event was held June 26 in Cerritos, CA, for southern California shops. The unique tradeshow included an evening of training for advance vehicle technology repairs. Approximately 50 vendors and nearly 400 people attended. The event was also a fundraiser for California Autobody Association chapter president Linda Holcomb of the Glendale/Foothill chapter. Holcomb is currently in treatment for breast cancer and $8,500 in funds raised from this event will go towards her medical expenses. Attendees included independent shops, MSOs, consolidators franchises, insurance field appraisers and OEMs representing Toyota, Audi, Porsche, and BMW. The tradeshow was organized by industry leaders Toby Chess and Lillian Maimone. The tradeshow was held from 2-6 p.m., with dinner from 6-7 p.m., and OEM training sessions
were held from 7-9 p.m. Vendors showcased their new products and services.
Event organizers Toby Chess and Lillian Maimone
Representatives from the following companies were in attendance: 1st Class Collision of Murrieta AES Technologies AkzoNobel Coatings ALLDATA Angel Warehouse Annex Paint See Cerritos Tradeshow, Page 20
Presorted Standard US Postage PAID San Bernardino, CA Permit #2244
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Contents MFN Clauses . . . . . . . . . . . . . . . . . . . . . . . 38
‘Da Wagon’ Pulls Them In for Auto Body
ASA to Hold ASRW 2014 in Detroit Alongside
Anderson Shop Owner is Rotarian of the Year . . 4
ASRW Will Have Main Stage with
Hawaii on the Big Island . . . . . . . . . . . . . . . 52
ASA of Arizona Meets with Arizona Dept of
I-CAR and CIC July 28–Aug 2. . . . . . . . . . . . 1 Rotating Speakers . . . . . . . . . . . . . . . . . . . 13
Insurance Director on Consumer Fairness. . . 4
Bookkeeper Sentenced to Seven Years
with Shooting . . . . . . . . . . . . . . . . . . . . . . . 53
Caliber Completes Another Successful
Compliance with New Regulations . . . . . . . . 8
Carlisle and Company Blogs About PartsTrader . . 9
Body Shop Foreman in Las Vegas Charged CAA Urges Shops To Monitor Insurer
Car Thefts Up For First Time in Years,
California Highest . . . . . . . . . . . . . . . . . . . . . 4
CARSTAR Adds Southern California Location . . 8 Gene Crozat of G&C Auto Body Can’t Seem
to Give Enough, Fast Enough . . . . . . . . . . . 36
For Theft from Florida Body Shop . . . . . . . . 25 Food Drive . . . . . . . . . . . . . . . . . . . . . . . . . 18
Car-O-Liner Gets Honda Approval As
Official Supplier . . . . . . . . . . . . . . . . . . . . . 30
Chrysler Issues Recall on Air Bag Modules . . . 34 CIC in Boston: 200 in Attendance
Voice Disparate Priorities . . . . . . . . . . . . . . . 6
LA CAA Featured BMW i3 Technology
Collision Industry Makes Gains at SEMA Show. 59
Oregon Body Shops Grade Insurance
FIX Auto Relocates Headquarters to San Diego . 46
at June 19 Meeting. . . . . . . . . . . . . . . . . . . 19 Companies. . . . . . . . . . . . . . . . . . . . . . . . . 44
Rodney Pierini is President & CEO of CAWA . . . 1 Santa Clara CAA Golf Tournament is
30th Annual Celebration . . . . . . . . . . . . . . . 50
EPA Reduces Regulatory Burden of Wipe Use . . 3
Ford to Hire 3000 Salaried Workers in 2013 . . 34
Ford to Recall 13K Vehicles over Door Latches . 34 Future Looks Bright for U.S. Auto Industry,
Hiring, Sales. . . . . . . . . . . . . . . . . . . . . . . . 35
GM and UTI Partner to Help Grow
Windshield Repair Tech Pleads Guilty
GM to Recall Four 2012 Volts . . . . . . . . . . . . . 34
and 50 Vendors for Training and Fundraiser . . 1 to Insurance Fraud . . . . . . . . . . . . . . . . . . . . 4
Attanasio: Pinterest, Instagram and Tumblr—
Special Cerritos Tradeshow Draws About 400
Supply of Auto Techs . . . . . . . . . . . . . . . . . 34
Honda Reponds to Amended Class
Action Complaint . . . . . . . . . . . . . . . . . . . . 35
I-CAR Tech: OSHA Hazard Communication
Standard Revision . . . . . . . . . . . . . . . . . . . 22
Three ‘New’ Forms of Shop Media . . . . . . . 40
Japan’s Diamond Electric to Pay
Consumer Sales?. . . . . . . . . . . . . . . . . . . . 38
Japan’s Toray Buys Stake in Plasan
Depends On You and Your Estimators . . . . . 30
MD Shop Owner Wins A Short-Pay
Expertise in Public Relations to AASP/MA. . 58
Nissan Plans Major Reforms in Buying,
Issues Important to Repairers. . . . . . . . . . . 16
NOLA Shop Owner Implicated in Cover-Up
Labor Rates, SkillsUSA. . . . . . . . . . . . . . . . 26
OEMs, CARE, and AAIA Seek Solution
Supports Members’ Concerns and Fights
Rearview Cameras Delayed . . . . . . . . . . . . . . 34
Franklin: Still Using a Quota System For
Insider: Insurers Hate to Admit It, But Our Success
Sisk: Executive Director Jillian Zywien Contributes Sisk: Repairer-Only Rountable Airs the
Sisk: SCRS Board Meeting: Partial Panels,
Sisk: Auto Body Association of Connecticut
$19M Price Fixing Fine . . . . . . . . . . . . . . . . 34
Carbon Composites . . . . . . . . . . . . . . . . . . 34 Lawsuit vs GEICO. . . . . . . . . . . . . . . . . . . . 12 Shipping, Building . . . . . . . . . . . . . . . . . . . 34
of Hit and Run, Fourth Suspect Sought . . . . 42 to Right to Repair . . . . . . . . . . . . . . . . . . . . 35
Unfair Legislation . . . . . . . . . . . . . . . . . . . . 45
Shop Robber Caught Red-Handed,
at this Month in Collision News History. . . . 28
State Lawmakers Around U.S. Consider Or
Yoswick: Historical Snapshot: A Look Back
ASA Meets with Administration Re
Another Bleeds, Runs . . . . . . . . . . . . . . . . . 12 Approve Legislation Affecting Body Shops . . 1
Volvo: Six State Class Action Should
Recently, the U.S. Environmental Protection Agency (EPA) modified the hazardous waste management regulations under the Resource Conservation and Recovery Act (RCRA) to exclude solvent-contaminated wipes from the EPA’s hazardous waste regulations, under condition that businesses clean or dispose of wipes properly. This comes as EPA’s final risk analysis, published in 2009, concluded wipes possessing certain hazardous solvents do not pose significant risk to human health and the environment if properly managed. The EPA noted that wipes are used in conjunction with solvents for cleaning and other purposes by tens of thousands of facilities in numerous industry sectors including automobile repair shops. According to Mathy Stanislaus, assistant administrator for the EPA’s Office of Solid Waste and Emergency Response: “Today’s rule uses the latest science to provide a regulatory framework for managing solvent- contaminated wipes that is appropriate to the level of risk posed by these materials … I’ve heard directly from stakeholders about the benefits of this rule and the need to finalize it. The rule reduces costs for thousands of businesses, many of
Not Be Certified . . . . . . . . . . . . . . . . . . . . . 35
which are small businesses, while maintaining protection of human health and the environment.” This ruling excludes only wipes that are contaminated with solvents listed as hazardous wastes under RCRA that are properly cleaned or disposed of. To be excluded, solventcontaminated wipes must be managed in closed, labeled containers and cannot contain free liquids when sent for cleaning or disposal. Additionally, facilities that generate solvent-contaminated wipes must comply with certain recordkeeping requirements and may not accumulate wipes for longer than 180 days. The EPA first proposed modified regulations for solvent-contaminated wipes Nov. 20, 2003, and published a revised risk assessment for public comment Oct. 27, 2009. Once the final ruling has been published, it will be accessible through ASA’s legislative website, www.TakingTheHill.com.
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: Tom Franklin, David Brown, John Yoswick, Rich Evans, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia
AAPEX . . . . . . . . . . . . . . . . . . . . . . .29 Audi Wholesale Parts Dealers . . . . .46 Automotive ID . . . . . . . . . . . . . . . . . .26 Axalta Coating Systems . . . . . . . . . . .5 BASF . . . . . . . . . . . . . . . . . . . . . . . . .2 Bill Luke Chrysler-Jeep-Dodge . . . .36 Bill Luke Fiat . . . . . . . . . . . . . . . . . . .36 BMW Wholesale Parts Dealers . . . .51 Bob Smith BMW . . . . . . . . . . . . . . . .45 Bob Smith MINI . . . . . . . . . . . . . . . .45 Buerge Chrysler-Jeep-Dodge . . . . .27 Car-Part Pro . . . . . . . . . . . . . . . . . . .35 Certified Automotive Parts Association (CAPA) . . . . . . . . . . .31 Classifieds . . . . . . . . . . . . . . . . . . . .62 Collision Trade Show 2013 . . . . . . .21 Downtown Motors of LA (Audi, VW, Porsche) . . . . . . . . . . .39 Drew Hyundai . . . . . . . . . . . . . . . . .52 East Bay BMW-MINI . . . . . . . . . . . . . .8 Elk Grove Toyota . . . . . . . . . . . . . . .22 Enterprise Rent-A-Car . . . . . . . . . . .10 Equalizer Industries . . . . . . . . . . . . .12 Extractor . . . . . . . . . . . . . . . . . . . . . . .4 Ford Wholesale Parts Dealers AZ, CA, & NV . . . . . . . . . . . . . . . .47 Forklift Wrecker . . . . . . . . . . . . . . . . .9 Galpin Motors . . . . . . . . . . . . . .24, 37 Garmat USA . . . . . . . . . . . . . . . . . . . .6 Glass Technology, Inc . . . . . . . . . . .28 GM Wholesale Parts Dealers . . . . . .60 Herkules Equipment Corporation . .19 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . .32-33 Hyundai Wholesale Parts Dealers . .42 Innovative Tools & Technology, Inc .40 Kearny Mesa Subaru-Hyundai . . . . .49
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EPA Reduces Regulatory Burden of Wipe Use
Kia Motors Wholesale Parts Dealers .55 LKQ . . . . . . . . . . . . . . . . . . . . . . . . .63 Los Gatos Luxury Cars . . . . . . . . . .25 Maita Subaru . . . . . . . . . . . . . . . . . .30 Malco . . . . . . . . . . . . . . . . . . . . . . . . .9 Mazda Wholesale Parts Dealers . . .54 MINI Wholesale Parts Dealers . . . . .50 Mitsubishi Wholesale Parts Dealers .56 Momentum Auto Group . . . . . . . . . .11 MOPAR Wholesale Parts Dealers . .43 Moss Brothers Chrysler-Jeep-Dodge .15 NACE Trade Show . . . . . . . . . . . . . .57 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .48 North County Kia . . . . . . . . . . . . . . .14 Power Chrysler-Jeep-Dodge of Arizona . . . . . . . . . . . . . . . . . . .18 Preval Spray Gun . . . . . . . . . . . . . . .64 Pro-Spray . . . . . . . . . . . . . . . . . . . . . .7 Renick Subaru . . . . . . . . . . . . . . . . .20 Replica Plastics . . . . . . . . . . . . . . . .38 Riverside Metro VW-Honda-HyundaiNissan-Mazda . . . . . . . . . . . . . . .41 SEMA Trade Show . . . . . . . . . . . . . .17 Sherwin-Williams Automotive Finishes . . . . . . . . . . . . . . . . .12, 13 Shingle Springs Nissan-Subaru . . .59 Sierra Chevrolet-Honda-MazdaSubaru . . . . . . . . . . . . . . . . . . . . .44 Sonnen BMW . . . . . . . . . . . . . . . . . .16 Subaru Wholesale Parts Dealers . . .61 Timmons VW-Subaru . . . . . . . . . . . .53 Toyota Wholesale Parts Dealers . . .46 VIM Tools . . . . . . . . . . . . . . . . . . . . .56 Volkswagen Wholesale Parts Dealers .58 Volvo Wholesale Parts Dealers . . . .54 Weatherford BMW . . . . . . . . . . . . . .23
www.autobodynews.com | AUGUST 2013 AUTOBODY NEWS 3
ASA of Arizona Meets with Arizona Dept of Insurance Director on Consumer Fairness The ASA AZ Committee for Consumer Fairness met recently with Director Germaine L. Marks of the Arizona Department of Insurance. The goal of the Committee is to ensure that consumers, as outlined in Title 20-461 of the Arizona Revised Statutes, are dealt with in a fair and ethical manner when processing insurance claims. Three issues were addressed with the Director: • Types of replacement vehicles allowed in 3rd party claims as well as reimbursement for loss of use when the renting of a vehicle is not practical • Direct billing of rentals in 3 rd party claims • Underpayment of claims to vehicle owners as a result of poorly written insurance estimates Director Marks, along with Andrew Carlson, Executive Assistant for Policy Affairs, listened to the concerns and various scenarios that repairers experience on a daily basis. The Department discuss these issues with the Consumer Affairs Department and will also review the wording on the 3 rd Party Consent Form which allows a per-
son to assign, on their behalf, another individual the right to file a complaint with the Department of Insurance. “We hope that this will be the first of many meetings with the Department that will allow ASA the opportunity to resolve is sues on behalf of consumers.” Indicated Luz Rubio, Executive Director of ASA. “As an association serving members of the collision repair community, where excellent customer service is the ultimate goal, these issues need clarification in order to provide guidance to consumers.” The Automotive Service Association of Arizona is a not for-profit trade association of its kind dedicated to and governed by independent automotive service and repair professionals. ASA of Arizona serves a membership base that includes groups from both the mechanical and collision repair segments of the automotive service industry. ASA of Arizona’s mission advances professional ism and excellence in the automotive repair industry through education, representation and member services. For additional information about ASA of Arizona visit www.asaaz.org.
Windshield Repair Tech Pleads Guilty to Insurance Fraud
Windshield repair technician Jacob Dufur, 22, has pled guilty to a felony charge of insurance fraud for submitting fraudulent work orders on windshield repairs, according to a statement from the District Attorney (DA) for Sacramento County, CA. An investigation by the California Department of Insurance’s Urban Auto Task Force uncovered the situation, DA Jan Scully said in the statement. Dufur and an accomplice were employed as windshield repair technicians for a Chipio franchise that specialized in repairing small windshield cracks. Dufur’s alleged accomplice has been named. He is Jeremy Horstman and an arrest warrant for insurance fraud has been issued in his name. “There are still outstanding aspects of this case that we are pursuing,” says Dale Kitching, Supervising Deputy DA. “He is believed to be in Mississippi and we are trying to persuade him to return to California to resolve his case. “Between May 7, 2011 and March 19, 2012, Dufur and an accomplice submitted 121 fraudulent work orders to the parent company,
Chipio Inc., for payment on windshield repairs that neither of them had repaired,” according to the DA. “After paying Dufur and his accomplice for the alleged cost of the windshield repairs, the parent company then submitted the work orders to the customers’ automobile insurance companies for payment,” the DA continued. “The franchise, the parent company and the insurance companies ended up paying $7,373 on the fraudulent work orders.” Dufur faces a sentence of two years in state prison. Sentencing is set for July 24 in Sacramento County Superior Court. “The California Department of Insurance and our office are also working on a similar case, which we hope to conclude in September,” he adds. “I believe it will be helpful to the industry to be aware of the MO (modus operandi) used in these cases so we can prevent additional fraud.”
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Car Thefts Up For First Time in Years, California Highest
U.S. auto thefts probably rose in 2012 after eight straight years of declines as criminals took advantage of California’s budget cuts and reduced police forces, an insurance-industry group said. Thefts rose 1.3 percent last year from 715,373 in 2011, according to preliminary data released today by the National Insurance Crime Bureau. Thefts fell about 3 percent in 2011 from a year earlier to the lowest levels since at least 1967, the NICB said, citing data from the Federal Bureau of Investigation. “There were budget crunches in a lot of areas,” Frank Scafidi, a spokesman for the Des Plaines, Illinois-based NICB, said in a telephone interview. “There have been layoffs of police. There’s been less focus on non-violent crimes, because there’s been more focus, as there should be, on violent crimes and crimes against people.” Modesto, California, including Stanislaus County, placed No. 1 in the ranking of auto thefts per capita in 2012. Thefts in Modesto increased by 29 percent from 2011 to about 817 cars per 100,000 people, according to the NICB.
Anderson Shop Owner is Rotarian of the Year
Michael Hubert, Sr., 72, of Anderson, CA, and owner of an auto body shop and towing company, was selected as Rotarian of the Year for 2013 by Anderson Rotary Club. Hubert owns Mike’s Autobody and Anderson Towing. He also serves as one of five elected members to the Anderson Fire Protection District’s board of directors. The service club’s 50 members were notified of the selection during an award presentation Wednesday by Lance Voorhees, who conducted his final meeting as club president after serving in that position for a year. Joining in the applause was Judy Hubert, wife of the honoree for 49 years. Hubert was nominated by Anderson Rotary Club treasurer Norma Comnick and drew the most votes from members among the three nominees, Comnick said.“He works at a lot of our community events and he brings the supply trailer even when it isn’t his turn to do so,” Comnick gave as reasons for nominating Hubert. As a vehicle mechanic, Hubert has volunteered time and again to improve, modify and protect the club’s investments in equipment and cooking trailers, Comnick said.
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CIC in Boston: 200 in Attendance Voice Disparate Priorities by Chasidy Rae Sisk
Boston was established in 1630 by Puritans seeking rights they had been denied in the old world. It is a city renowned as a leader in innovation, and the large population of teachers and students who congregate in its plethora of educational facilities has caused many to dub Boston as the “Athens of America.” The Boston Tea Party is just one example of Bostonians overthrowing the tyranny of a ruling third party who wanted to dictate costs that were none of their concern. With such a reputation, it is fitting that collision repair professionals chose Boston as the place to gather and discuss current trends and concerns in this ever-changing industry. Held in conjunction with I-CAR’s meetings in the same location, the Collision Industry Conference (CIC) met on Tuesday, July 23 and Wednesday, July 24 at the Westin Boston Waterfront, located at 425 Summer Street. Over 200 collision repair professionals gathered in the hotel’s Grand Ballroom to hear what’s been going on at CIC and throughout the industry as a whole. After Chairman George Avery called the meeting to order on Tuesday afternoon, CIC opened with the national anthem, accompanied by a video which depicted a collage of American scenery and symbolism. This was followed by a general welcome, antitrust guidelines and finally CIC’s mission statement which establishes the meeting as “a forum where collision industry stakeholders come together to discuss issues, build broad understanding, find common ground and communicate to the industry at-large, findings and possible solutions.” John Van Alstyne, President and CEO of I-CAR, briefly advertised Thursday’s Collision Repair Education Foundation (CREF) golf tournament with which I-CAR is affiliated, and then Dan Risley, Executive Director of ASA, announced that I-CAR, CIC, NACE and CREF are collaborating to put on an Industry Week at the Cobo Center in Detroit MI during the week of July 28 through August 2, 2014. (See related article on cover.) After CIC’s Technical Committee briefly submitted their findings regarding an increase in technical issues and the need for assistance with logistics, John Petrarca from the Auto Body Association of Rhode Island (ABARI)
took the stage to discuss the recent approval of House Bill 5263 which redirects the ability to deem a car a total loss apart from the insurer. Petrarca emphasized the importance of legislation: “the only way to correct our industry is through legislation… [we must] never stop informing and simply never give up.” He said it is imperative that this industry persists with informing and educating consumers for the betterment of the industry at large. This update preceded a presentation by the Governmental Committee, led by Janet Cheney and Steve Regan, entitled “Our Government: More or Less, What Works Best?” which began by sharing the feedback from CIC’s last panel discussion in Phoenix. The first question asked whether the government should prohibit insurers from recommending a repairer to the consumer. Shockingly to some, the majority of participants responded in the negative, as they did to the question asking if the government should regulate the use of aftermarket parts. When asked their opinion about the level of government involvement regarding environmental and safety laws, 56% believed it to be too much while 32% felt the government is involved a sufficient amount. As the committee moved on to the second part of their presentation, Regan introduced the panel: Colette Bruce of Team Safety, Darrell Anderson of ASA, Randy Hanson from Allstate Insurance, Rick Tuuri from Audatex and Ron Reichen, Chairman of SCRS. When asked if the laws and regulations governing the collision repair industry are working, Anderson stressed the importance of being aware of what’s going on in Washington, while Bruce believes the laws are working when they protect workers and the environment. Regan then asked the audience if more laws are needed to which 69% of respondents answered “no.” The majority of respondents said they do not believe that current laws are adequately enforced. The panel then discussed whether federal or state governments should have primary jurisdiction over the insurance collision repair industry. Tuuri feels it is not a great idea to involve the government, yet he also recognizes that sometimes it is necessary to ask for help. Anderson believes that both entities should be involved, though state regulations tend to be convoluted and
6 AUGUST 2013 AUTOBODY NEWS | www.autobodynews.com
should require some consistency. Attendees were about equally divided between these two options when polled. Asking if the collision repair industry could do a better job of governing itself, Regan shared his opinion that it’s “incumbent on the industry to do as much as it can to govern itself.” Tuuri prefers this option to involving the government, while Reichen agrees that the industry could do a better job. Bruce would prefer to see the industry govern itself also, but he cannot envision the federal or state governments relinquishing such control. When polled, 87% of respondents replied affirmatively that the industry could do a better job of governing itself. This conversation raised several additional questions: Who would have primary responsibility? How would they determine the appropriate conduct and/or standards that individual stakeholders would abide by? How would they enforce actions against violators? These questions were tabled for future committee discussion. The conference continued with Ron Guilliams, Chris Evans and Rick Tuuri from the Definitions
Committee whose mission is to “clarify and bring universal understanding to the terminology used in the automotive damage repair and refinish process.” Their project consisted of reviewing and updating their Class A shop document which they renamed “Recommended Equipment and Capabilities for a Collision Repair Facility” and which is meant to provide a definition of minimum shop requirements. In order to enable the subcommittees to focus in their areas of expertise, the document was divided into the following three categories: Equipment & Capabilities, Training & Certification, and Compliance & Sustainability. They pointed out that a great deal of effort has gone into creating this document with lots of active participation from the CIC body, leaving Evans convinced that this is a comprehensive document which represents the next generation of the Class A Repair Standards document which has existed for many years. The information gathered will now be transitioned over to the Standards Committee to use in their work. See CIC in Boston, Page 54
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CAA Urges Shops To Monitor Insurer Compliance with New Regulations The California Autobody Association (CAA) is asking shops in the state to asking them to report any insurer violations of the new insurance regulations which took effect this year. Insurance Regulation Amended Section 2695.8, took effect in March this year. The new regulation addresses issues including aftermarket parts and procedures for adjusting shop estimates. The CAA has been working with the department to assist in clarifying the areas of aftermarket parts usage and claims settlement and the new regulations are, in part, a result of CAA discussions with the CDI. In order to assist the CDI, the CAA is now asking shops that are aware of non-compliance by an insurance company related to the new regulations, to submit an Autobody Complaint Form to the CDI. The new regulation addresses a number of issues in the collision repair industry. The regulations: 1) Require the current insurer’s warranty of aftermarket parts be expressly stated in the estimate of repair generated by the insurer; 2) Require an insurer to cease use
of a part known to be non-compliant, and notify the part distributor within thirty (30) days. 3) Require an insurer to pay for an amount to repair the damaged vehicle to its pre-loss condition in a good and workmanlike manner, based upon the repair standards required by auto body repair shops licensed to the BAR; 4) Require an insurer to pay for the costs associated with returning a defective part and the cost to remove and replace the defective part with a compliant non-OEM part or an OEM part; 5) Insurers’ estimates cannot deviate from the standards, costs, and/or guidelines provided by the estimating software used by the insurer. The CAA notes that the section of the new regulations dealing with the shop estimate and how insurers may make adjustments, is extremely important and shops need to know how this section specifically applies. The section states that, if a claimant contends that necessary repairs will exceed the written estimate prepared the insurer, the insurer shall reasonably adjust the shop’s estimate by either 1) providing the claimant
8 AUGUST 2013 AUTOBODY NEWS | www.autobodynews.com
with an edited copy of the shop estimate or, 2) providing a supplemental estimate based on the itemized copy of the shop estimate. The section states, “The adjusted estimate shall identify the specific adjustment made to each item and the cost associated with each adjustment made to the claimant’s shop’s estimate.” In January the Association of California Insurance Companies (ACIC) had complained that the new regulations “essentially require insurers to pay whatever auto repair shops demand” and that insurers “no longer have the ability to negotiate the most effective, less costly repair.” Armand Feliciano, ACIC vice president, said in a published interview at the time that, “Auto repairers have resorted to legislation via the regulatory process. We feel that some of these regulations that have been put into place are outside of what the CDI has the authority to do.” To read the full text of the regulation: www.insurance.ca.gov/0400-news/ 0100-press-releases/2013/upload/ nr001AftermarketPropAmend.pdf
CARSTAR Adds Southern California Location
CARSTAR Auto Body Repair Experts recently added Browning Collision CARSTAR in Cerritos, Calif., to its national network of collision repair shops. Browning Collision, which has been in business for more than 25 years as a member of the Browning Automotive Group, is independently owned by Kent Browning and managed by Jim Hanson. “CARSTAR provides the expertise to build a solid organization and the tools to improve cycle time and CSI,” Hanson said. “CARSTAR also allows us to have the national exposure required in today’s everchanging auto collision marketplace.” As a member of the CARSTAR network, Browning Collision now has access to the company’s management system, business resources, 19 corporately managed direct repair programs and 45 corporately managed purchasing programs. “We are excited to have Kent Browning join the CARSTAR network,” said David Byers, CEO of CARSTAR. “We are thrilled to expand our presence in the southern California region.”
Carlisle and Company Blogs About PartsTrader Carlisle and Company is a consulting firm, not to be confused with Carlyle Group (an American-based global asset management firm active in acquiring collision MSOs, such as Service King recently), which develops market strategies that help OEMs manage risk and optimize performance. Carlisle and Company is known for its data benchmarking, both in service and parts, designed to help member companies improve dealer service support, and service quality to vehicle owners. One of their groups, the North America Parts Benchmark (NAPB, formerly NASPC) has been analyzing the parts supply chain since 1993, so
PartsTrader rollout plan
it’s interesting to read the company blog, which recently addressed the ongoing PartsTrader controversy. The text
dering platform is meant to capitalize on all the efficiencies of e-commerce, reducing the cost of parts by
present, insurance carriers pay about $10 billion dollars of that total, but have little influence over the parts pro-
following comes directly from the Carlisle blog (www.carlisle-co.com): If you’re involved with the collision repair industry, you’ve no doubt heard the hullaballoo regarding State Farm and PartsTrader. For those who haven’t, here’s a brief summary: State Farm recently launched PartsTrader, a mandatory online parts ordering platform for their Select Service (Direct Repair Program (DRP)) shops. These Select Service shops receive State Farm’s collision customers in return for ceding some control to the insurer. The parts or-
requiring suppliers to submit competitive bids. PartsTrader is undergoing a gradual rollout throughout the United States. It’s clear that State Farm isn’t just interested in an efficient online ordering platform. Otherwise, they could just mandate that their Select Service shops use any online platform for parts ordering, and do this at no cost to themselves. Instead, they’ve spent millions of dollars on a brand-new online ordering platform. Why? The collision parts market in the United States is about $16 billion. At
curement process or pricing. State Farm’s competitive online parts marketplace provides leverage by pitting suppliers against each other to offer the best price on parts. Even a one percent reduction in parts cost represents a $100 million savings for insurance companies. There are two significant negative impacts for OEMs. Loss of market share: A wider reach throughout salvage yards and aftermarket suppliers in the United States for parts sourcing will eventually mean that more alternative parts
It’s clear that State Farm isn’t just interested in an efficient online ordering platform. Otherwise, they could just mandate that their Select Service shops use any online platform for parts ordering, and do this at no cost to themselves. Instead, they’ve spent millions of dollars on a brand-new online ordering platform. Why?
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are used. This impacts OEM profitability and customer repair quality. Financial harm to dealers: A competitive marketplace means that dealers will have to offer even greater discounts. Parts suppliers, including dealers, will also be required to pay a fee to participate in PartsTrader. Unfortunately, even if OEMs and IRFs band together and manage to kill
collision parts pricing from the rest of your pricing rules and strategies, and get down into the details. This means creating strategies for pricing specific part numbers and car models. Although OEMs do pursue pricing strategies and aging curves, this is usually done at a broad, part-type level. In other words, your strategy for pricing a bumper for a full-size pickup truck should not nec-
in the United States can’t competently complete repairs on structural aluminum. 99.9% of body shops in the United States can’t competently complete repairs on structural carbon fiber or CFRP. If OEMs can control the training associated with advanced materials, they can make sure that vehicles get repaired at shops which use more OEM parts.
State Farm’s PartsTrader, Nationwide or GEICO will almost certainly come out with a similar program. The business case is far too compelling and the stakes far too high for insurance carriers to leave parts cost in the hands of the parts supplier, the shop and the claims adjuster. Eventually, this concept is going to be implemented in such a way that it takes off. It may not be this goaround with PartsTrader, but the competitive online parts marketplace will happen. The industry is consolidating, and there’s even more incentive for large multi-store operators to follow the insurance companies’ policies in return for repairs. After all, keeping the doors open at a big shop requires a healthy volume, and the easiest way to a healthy volume is through DRP.
essarily be the same as your pricing strategy for a bumper for a midsize sedan. And the key to the success of pricing strategies is dynamic management of strategies, rather than “set, forget and revisit in 5-10 years.” Promote price competitive programs and alternative online ordering tools. Insurers may have leverage over behavior for their DRP shops, but OEMs have first-mover advantage here. CollisionLink has been in the market for nearly a decade, and combines online ordering with OEM price-competitive capabilities. In contrast, PartsTrader is only in a few markets, but more are sure to follow, and other insurance carriers will jump in the game shortly. An aggressive push by the OEMs to get their tools embedded in the market at the dealer and shop level before the insurance carriers enter will make the road harder for insurance companies and promote OEM market share. Your price competitive programs have to be integrated into your smart pricing strategy, or you’ll be working at cross-purposes. Expansion of advanced technical training. Factors such as CAFE, safety regulations, and the natural order of progress—that is, advanced materials and design—have made parts more complex, and more expensive. That complexity works to OEMs’ advantage. 95% of body shops
Core returns and salvage leakage. How does a part wind up in an LKQ yard? If OEMs can control the spread of cores and salvageable parts using core return charges and total-loss buyback programs, they can starve the network of salvage parts. Of course, this comes at a cost, but salvage parts are the fastest-growing segment and the most risky for OEMs. After all, it is easy to argue that an aftermarket-
Unfortunately, even if OEMs and IRFs band together and manage to kill State Farm’s PartsTrader, Nationwide or GEICO will almost certainly come out with a similar program. The business case is far too compelling and the stakes far too high for insurance carriers to leave parts cost in the hands of the parts supplier, the shop and the claims adjuster.
If the concept is here to stay, what strategies should OEMs explore?
Adopt, use and manage smarter pricing. Right now, OEMs have access to tremendous quantities of data through estimating platforms and CollisionLink. OEMs also have relatively sophisticated pricing systems and access to robust analytical platforms. Together, pricing systems and data enable surgical precision on parts pricing far in advance of what aftermarket parts providers can manage. Separate out
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produced part does not meet or exceed OEM standards. It is more challenging when that part came from the OEM at some point. Many OEMs are already active in this area – but they need to dial up the breadth of parts covered and the aggressiveness of the programs. Certified Body Shops. A certified shop network provides the OEM with additional input into the repair process and helps take some of the leverage away from insurance carriers. When combined with advanced training and access to OEM tools, equipment and techniques, certified body shops are in a position to capture more of the high end of the increasingly complex repair market. OEMs may lose the battle on covers and similar nonstructural parts, but there are opportunities to make up ground in structural, safety, and specialized parts. The bottom line: Expect insurance companies to increase their involvement in the parts procurement process, and expect it to have a significant negative impact on OEM market share. Just maintaining current market share will require a tremendous amount of additional effort.
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Shop Robber Caught Red-Handed, Another Bleeds, Runs A 49-yr old man is under arrest after surveillance cameras caught him stuck in a fence while trying to escape from Reynolds Auto Body Shop on Cervantes Street in Pensacola, FL on July 8. Weatherspoon was trying to steal items stored out back of the shop, including “two space heaters that were in the scrap pile going to the scrap yard, and a ten-year old radar detector,” said Daniel Williams at Reynolds Auto Repair. But as Weatherspoon tried to make a quick getaway and jump the fence, he got stuck just as police arrived. “Luckily he wasn’t smarter than a fence. He was caught on the fence, and when PPD got him, he had his leg up, caught in the act, [literally] redhanded,” said Williams. Police say Weatherspoon also had marijuana on him when he was arrested. The hapless Weatherspoon wasn’t the only would-be thief trying to steal from local auto repair shops that night. John Denman Owner of Discount Mufflers reported a break in at his location. “It didn’t sound like they were really on top of their game there,” said Denman. He has owned Discount Mufflers for 20 years and said that, while his auto repair shop has been broken into before, this lat-
est criminal is in a class of his own. “They hurt themselves real good in the process because we had blood all over the floor and all over the cars and stuff” Mechanics spent the morning replacing windows the suspect broke while trying to access the shop. Denman believes the suspect actually broke in twice because he moved a tool box in front of the broken window the first time... Only for it to be knocked down again hours later. And apparently it wasn’t money the suspect was after. Rather, it was gas. “There were some wrenches on the floor where they had came back into the building, and at that time they got the extension cord and the drill,” he said. Denman believes the suspect tried to drill into the gas lines of cars at the shop. But unfortunately for the suspect, the drill was broken leaving him empty-handed. Police are still looking for the suspect in the Discount Mufflers break-in.
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MD Shop Owner Wins A Short-Pay Lawsuit vs GEICO
A Maryland body shop owner has won a short-pay lawsuit he filed against GEICO on behalf of a customer. Mark Schaech, co-owner of Mark’s Body Shop of Baltimore, filed the suit against GEICO due to the insurer’s refusal to pay $392.95 in repair costs on behalf of its policyholder. The underpayments included: degreasing vehicle prior to repair; feather, prime and block repaired panels; clean vehicle for delivery; clear OBD fault codes; reset electronics (recorded settings); mask for primer; and overhaul door handle for refinishing. “We offer exceptional quality and service to our customers, and to continue to do so without being properly compensated is simply unreasonable and unsustainable,” said Schaech. “While my father (partner) and I would rather avoid having to take such legal actions, something had to be done as the insurer’s efforts to underpay our customers continued to increase. I felt like that guy in the movie Network where he stuck his head out the window and yelled, ‘I’m mad as hell and I’m not taking this anymore!’ “While Maryland does not allow the recovery of legal fees to the prevailing parties in such issues, we
couldn’t allow that to be a deterrent in our being able to properly serve our customers and our employees. Insurers have continued cutting their costs while our costs for labor, materials and overhead have steadily increased. The only way we could survive was to either concede to the underpayments and cut our quality of materials and labor…or push back. We found shortpay litigation necessary to stop the insurer’s practice of underpaying our customers and to enable us to provide the quality repairs that earn our customers (and their referrals) for life.” Schaech credited a free legal seminar in Florida hosted by Barrett Smith of Auto Damage Experts, Ray Gunder of Gunder’s Auto Center and Gunder’s attorney, Brent Geohagan, with motivating him and giving him the information he needed to take action. “That was a turning point for us. To hear Ray talk about how he knew that if he hadn’t done something he would be out of business struck a chord in me, and I knew then that I, too, needed to do something or we would lose our business,” Schaech said. “Ray gave much credit to his success in having a great support team in Barrett as his consultant and Brent as his legal counsel.”
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Continued from Cover
Thursday, July 31 – Collision Repair Education Foundation Golf Outing Thursday & Friday, July 31–Aug. 1 – NACE Education & Expo Saturday, Aug. 2 – Education & Hosted Industry Tours “Co-locating NACE with the ICAR and CIC conferences in July and creating Industry Week represents the beginning of a new era for our industry, and this is extremely exciting. Professionals in the industry can now truly take ONE week and participate in all the meetings they need involving the industry’s most influential in-
dividuals and organizations, attend all the conferences, walk the show, network, and receive the education critical to their business success,” said Risley. “Beyond the events already mentioned, there will be innumerable opportunities for attendees and exhibitors because it’s located in Detroit, the heart of the automotive industry. Additional announcements will be forthcoming in the ensuing months but suffice it to say, if you are a ‘car person’ you will not leave the city disappointed.” John Van Alstyne, I-CAR CEO & President, shared his enthusiasm, “Industry Week is an opportunity to bring more of the industry together and simplify coordination of scheduling for all events, which we believe
will be valued by the industry.” He added, “Industry Week will present attendees with excellent educational, knowledge–building, and networking opportunities; and I-CAR’s longstanding July Conference, which has been aligned with CIC for many years, will remain an independent event that will now take place under the new umbrella of Industry Week. Additionally, the annual fund–raiser for the Collision Repair Education Foundation will continue to be held the same week, offering a fantastic social networking opportunity while raising money for a great cause that helps us to sustain the future of our industry.” “The Collision Industry Conference looks forward to meeting during
this time when all groups come together,“ stated Jeff Hendler, Founder, Collision Industry Conference. “The more often that all entities attempt to share the calendar with the varying functions of meetings, educations, trade displays, and networking opportunities, the better it is for those who attend. Everyone and every entity stands to benefit.” “The Collision Industry Conference looks forward to building upon our longtime alignment with I–CAR to welcome ASA into the fold and offer our collision industry stakeholders the opportunity to attain even more industry knowledge, make even more valuable industry connections, and conduct even more business,” said George Avery, CIC Chairman. “Better yet, Industry Week lets them do it all in one week, under one roof, and in the heart of the Motor City to enable everyone to maximize their time and travel.” Additional details on each event taking place during Industry Week 2014 will be released by each organization in the coming months. Hotel details will be available in the near future. More information will soon be available at http://www.naceexpo .com, http://www.i-car.com, and http://www.cic.com.
ASRW Will Have Main Stage with Rotating Speakers
ASRW 2013 will have a brand new area on the show floor called the ASRW Main Stage. Located prominently on the expo floor, the ASRW Main Stage will showcase a different industry speaker every hour during show hours. ASRW will take place Thursday and Friday, Oct. 1718, with education beginning Wednesday, Oct. 16, at the Mandalay Bay Convention Center in Las Vegas. A total of 12 speakers will comprise the ASRW Main Stage, with six speakers on Thursday and six speakers on Friday. The ASRW Main Stage presentations will take place each hour between 10 a.m. and 3 p.m. “The powerful slate of speakers and topics planned for the ASRW Main Stage make it the first of its kind,” stated Dan Risley, ASA executive director. “Attendees won’t find these speakers in one place at any other event.” Seating will be on a first-come, first-served basis as tickets/registration will not be required. Additional details, including the full schedule of ASRW Main Stage speakers and topics, will be announced in coming weeks.
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Legislation Affecting Shops
Continued from Cover
The California Department of Insurance finalized regulations this year requiring insurers to pay for the costs to remove, replace and return a defective or non-compliant part; to cease the use of any part known to be non-compliant and to notify the distributor within 30 days; and to pay for repairs based on “accepted trade standards” set by shops licensed by the California Bureau of Automotive Repair. Insurer groups have indicated they may challenge the new regulations, which they say are unnecessary and thwart their ability to negotiate “the most effective, less costly repair,” nor do anything but “pay whatever auto repair shops demand.” Eileen Sottile, vice president of governmental affairs at LKQ Corporation, told non-OEM parts distributors at their convention earlier this year that it’s unclear whether the regulation will have a significant impact on insurers’ use of non-OEM parts in California. She said LKQ is reviewing legal analysis related to a possible suit against the regulator. Such a suit, she said, could challenge the Commissioner’s authority to promulgate the rule, or could be based on the rule’s impact if “we see it has damaged our ability to compete.” Other options, she said, could be to address the issue through legislation, or to do nothing “if we see there truly is no market impact.”
Rates are focus of some bills Nevada lawmakers have approved a bill (SB 170) capping daily storage fees charged by shops at 1.5 times the prevailing storage rate determined by state survey; the new law also sets limits on when storage fees can be charged. After three attempts over the last six years to get legislation related to labor rates passed by Massachusetts lawmakers, a fourth such bill (H 969) has been introduced for the 2013-14 legislative session. The bill has evolved over the years, and now if passed would establish a labor rate in Massachusetts based on data from an independent study of the average labor rate of five other Northeastern states.
Airbags under scrutiny The National Highway Traffic Safety Administration’s warning last fall to
consumers to avoid counterfeit airbag replacements seems to have resurfaced the topic of airbags among some state lawmakers. The New Mexico House unanimously passed a bill (H 118) that would prohibit the manufacturing, sale or installation of a counterfeit or substandard airbags. It would also prohibit selling or installing a device that causes the vehicle diagnostic system to inaccurately indicate that the airbag is functional when a counterfeit airbag is installed. Similar bills have been approved by lawmakers in New York and Connecticut, and by the House in Ohio. Also in New York, a bill (S 3779) would place significant new restrictions on anyone selling or installing a recycled airbag. The seller or installer, for example would be required to maintain records including the airbag identification number, the VIN of the vehicle from which it was removed, the name and address of the purchaser, and the VIN of the vehicle in which it was installed.
Other proposals, new laws Bills in other states tackle a variety of topics impacting the industry. Some states have established a damage value threshold at which a vehicle must be declared a total loss. But previously nothing prohibited an insurer from totaling a vehicle below that threshold. The Rhode Island legislature, however, has approving a bill (HB 5263) prohibiting an insurer in that state from declaring a vehicle a total loss if the cost to repair is less than 75 percent of the vehicle’s preaccident value, unless the vehicle owner provides written authorization to do so. Texas Gov. Rick Perry in June signed a new law (HB 500) that allows independent repair shops to be taxed at the same rate as dealerships, parts stores and tire stores; previously shops operated by dealerships were taxed at a significantly lower rate because these businesses were classified as “retail” businesses. A new North Carolina law (HB 247) signed by Gov. Pat McCrory, deals only with health insurance but does ban insurer’s use of “most-favored nation” clauses (such as the one in State Farm uses to require the best rates and discounts that its Select Service shops offer any other insurer) when contracting with health care providers.
14 AUGUST 2013 AUTOBODY NEWS | www.autobodynews.com
The Automotive Service Association (ASA) in June wrote to a New Jersey Assembly committee, opposing proposed “Right to Repair” legislation (AB 352), saying that it puts at risk ASA’s agreement with automakers that “already provides independent repairers access to service, tool and training information.” Aaron Lowe, vice president of government affairs for the Automotive Aftermarket Industry Association (AAIA), told the committee his group supports the legislation, but also urged lawmakers to hold off further action on the bill while his group is in “negotiations with the vehicle manufacturers regarding a national agreement on Right to Repair.” Similar Right to Repair bills have been introduced in Maine and New York this year. Connecticut Gov. Dannel Malloy has signed a new law (effective January 1) designed to reduce insurer steering of glass claims; under the new law, insurers (or third-party claims administrators) must disclose to insured’s during their initial contact that, “You have the right to choose a licensed glass shop where the damage to your motor vehicle will be repaired. If you have a preference, please let us know.”
And under a new law (SB 86) that went into effect this past December and designed to combat chop shops, Pennsylvania shops must photocopy the ID of anyone towing or selling a vehicle or major component; the law, requires that photocopy (along with the name and license number of the towing company) must be maintained for three years, and law enforcement agencies have the right to inspect body shops or other automotive businesses (to look for stolen vehicles or parts) any time work is being performed. 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 (for a free 4-week trial subscription, visit www.CrashNetwork.com). He can be contacted by email at: jyoswick@SpiritOne.com.
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Repairer-Only Rountable Airs the Issues Important to Repairers by Chasidy Rae Sisk
For the sixth time since the Repairer’s Roundtable began over a year ago, collision repairers from across the nation gathered for three and a half hours on Tuesday, July 23 at the Westin Boston Waterfront. The exclusive event intended only for representatives of collision repair businesses was hosted by AASP-MA, but while Aaron Schulenburg, Executive Director of the Society of Collision Repair Specialists (SCRS), was present to kick off the meeting, he repeatedly told the attendees that the “goal here is to have discussion from everyone in the room,” stressing the concept of “your agenda, your meeting.” Over forty individuals gathered to discuss current concerns with the collision repair industry and possible solutions. The dialogue began with a local shop owner objecting to the fact that Massachusetts has the lowest labor rates in the country, a travesty he partially attributed to steering. Regarding a possible solution, it was suggested that there could be a national campaign to promote consumer awareness and education; distributing a common message to association members who would, in turn, relay the information to their customers seemed to be the most viable option for disseminating this important message. As options for educating consumers were introduced and debated, one suggestion was to distribute a nationally consistent message through social media, on either a weekly or monthly basis. Another suggestion was made to provide and disseminate pre-packaged material for social media consumption. Tony Ferraiolo, President of the Auto Body Association of Connecticut (ABAC), emphasized the need for a joint effort between national and local associations as well as shops to promote the message, noting “insurer steering is easy because consumers just don’t know.” In addition to utilizing social media, the group endorsed the effectiveness of Public Service Announcements as consistent with the way consumers obtain their information, directing them to association websites for further information. Ferraiolo acknowledged that there are no simple solutions, “but we can do a better job of educating consumers” through the
vast array of technology not being utilized currently. Seeing a parallel between consumers and repairers when it comes to the distribution of information, Schulenburg noted that lots of information intended for collision repair shops is never utilized, asking what the key to inspiring the use of these resources
ent repair facilities because they’re inanyone [else] to tell us where we’re terested in vehicles being repaired headed; the experts in our industry need to determine where we’re properly. The ideas that shops are expected to invest in additional training going.” Peter Abdelmaseh, former Exwithout expecting any return on their investment led Schulenburg to ask, “is ecutive Director of AASP-MA, added this really an issue of whether or not that there is a huge distrust of associwe should invest in training and ations within the industry, and it is equipment, or is the model of how we necessary to look outside the associations to understand their limitations. do business broken?” As participants discussed They can’t do everything repairers want them to do unless they are which issues to tackle later in the meeting, one participant com- strengthened. Another repairer pointed pared the collision repair indus- out that it is impossible to overcome try to a sinking ship; though this distrust if those repairers are not in the room. there may be many leaks, the In addition to the difficulties in first step is to find the biggest getting away from their businesses hole and plug it up. Many particand spending money to attend events ipants pointed to the low levels of local collision repairer busi- and meetings, low self-esteem is a (l to r): Tony Ferraiolo, Peter Abdelmaseh & Tony ness representation in the room. major contributing reason that many Lombardozzi at Repairer’s Roundtable repairers opt against participating in Lombardozzi immediately concould be. One attendee noted that curred, citing an overarching apathy associations and industry events, acOEMs will be funding Public Service in the industry as the biggest obstacle cording to Lombardozzi who believes Announcements this fall to explain faced. Most repairers see the prob- “the only way we can change that is to that new vehicles which are being re- lems, but they assume that someone bring the message to them.” leased cannot be safely repaired the else will fix them. This apathy allows Nearly all of the attendees agreed same way as older vehicles, but the others (insurers, OEMs and so forth) that too many third parties are insertmessage has nothing to do with selling themselves into the collision busito assume control of the industry, but ing more OEM parts. It’s about main- Lombardozzi insists, “we don’t need ness, so repairers must be very taining the safety and value of the vehicles. It also stresses that modern Original BMW Parts repairs require specific educational and equipment components and that the fact that the industry is changing. bmwusa.com The conversation turned to the issues surrounding manufacturer certifications with some repairers seeing the value of becoming certified while others, such as Tony Lombardozzi, President of the Coalition for Collision Repair Excellence (CCRE), took a more skeptical view. Lombardozzi asked “what good is a certification? It’s just a piece of paper that says you have knowledge, but you can have knowledge without that paper.” He suggested that this issue may create crises in the industry as a shop can have all the proper training and equipment and still not complete the repair Original BMW Parts & Accessories correctly. This debate led to a general ques• Dedicated Wholesale Staff tion: do repairers trust OEMs? Several clarified that their issues with manu• Competitive Wholesale Prices facturer certifications are less related • Exceptional Customer Service to trust than ‘pecuniary inequalities,’ • Prompt & Dependable Delivery especially in the MA market where labor rates are so low, making it diffi415.482.2000 Sonnen BMW cult to pay the costs associated with 415.482.2024 Fax the certification. Several attendees 1599 East Francisco Blvd. then engaged in a conversation about San Rafael, CA 94901 www.sonnenbmw.com OEMs offering training to independ-
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cautious when deciding who to partner with. As the roundtable continued, many topics were broached without being pursued in great depth. There was some discussion about repair standards, and several attendees expressed concern with the domineering growth that multishop organization (MSOs) are taking in the industry and how this will affect smaller shops’ competitive abilities. However, one opposing view suggested that the recent interest of private equity firms and their decision to invest in MSOs could see these firms taking a stand to demand the right to establish their own pay rates which could, in turn, benefit the entire industry. Schulenburg’s inquiry regarding how to take the voices of those in attendance and present it at larger forums, led to an impassioned discussion about CIC’s agenda and significance to actual collision repairers. Several expressed belief that CIC has abdicated their role as a leading organization in the collision industry. Some expressed sentiments that they feel CIC has been “overtaken” by special interests and no longer works.
The discussion of third-party interference led back to repair standards and who should be involved in the process of establishing and implementing them. Most attendees agreed that the creation and establishment of repair standards has nothing to do with insurers and should be left to OEMs and repairers, yet there were some dissenting views about whether insurers should play a role in the implementation of the standards since they do possess their own areas of expertise that may be important in this part of the process. Many of the attendees agreed it was necessary to walk away from the meeting with at least one unified position that could be shared as a consensus of the repairers represented at the meeting, and this particular topic was chosen by the audience participants. The repairers in attendance represented as wide a diversity as exists in the collision industry—single location and both regional and national multi-shop operators, DRP and independent shops, family-run business and dealerships—but even in the diversity, there was commonality in their beliefs. The discussion concluded that nearly all in attendance
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felt it was important to convey that any formulation of standards for the collision repair industry should be developed and managed by the collision repairer, inviting in expertise in certain areas when needed, but never relinquishing control of the standard. As the Repairer’s Roundtable’s time drew to a close, Schulenburg announced that the next gathering will be held at SEMA in November, and he asked what can be done constructively to result in meaningful action and to be certain that something relevant comes out of the meeting. Everyone agreed that the most important way to improve these meetings is to encourage everyone in the industry to attend. The take home message to repairers is ‘So what are you waiting for?’ As Martin Luther King Jr. once said, “change does not roll in on the wheels of inevitability, but comes through continuous struggle. And so we must straighten our backs and work for our freedom. A man can’t ride you unless your back is bent.” Don’t let anyone bend your back! Join associations. Attend meetings. Support and institute change today for a better industry tomorrow.
Caliber Completes Another Successful Food Drive
In one of the largest food drives in the collision repair industry, Caliber Collision employees collected a record amount of food and cash donations in June that resulted in more than 275,000 meals for at-risk children in five states. Caliber Collision locations in California, Arizona, Nevada, Texas and Oklahoma participated in the company’s 2nd annual Rhythm Restoration Food Drive from June 3rd through June 21st. The company-wide program is aimed at providing meals for at-risk children who may go hungry during summer months without regular school lunches. This year’s food drive resulted in 40% more meals than last year’s effort, significantly exceeding company-wide goals. In addition to the food items collected, Caliber Collision also provided a corporate donation of $10,000. “We are very proud of the way our associates routinely set and exceed goals that help restore our customers and the communities we serve to the rhythm of their lives,” said Steve Grimshaw, President & CEO of Caliber Collision.
LA CAA Featured BMW i3 Technology at June 19 Meeting The Los Angeles chapter of the California Autobody Association met June 19 with 110 members in attendance to view a special showcase of the new BMW i3 technology.
Guest speaker Tom Brizuela, body and paint technical team leader for BMW North America, introducd and reviewed the new BMW i3 platform that features carbon and aluminum composite technology. The meeting included an actual cutaway view of the BMW i3 platform to review the repair methodology crash worthiness of its new generation platform.
Brizuela began working on cars at age 15, with the dream of someday working for a car manufacturer. He served in U.S. Marines as a diesel/automotive technician and graduated from National Technical College in Los Angeles with an AS degree in Automotive Diagnosis and Repair. Over the years, he worked at independent high-line and exotic auto body repair shops, restoration shops, and a Mercedes Benz dealership, and in 1988 as head paint technician for BMW of North America, Inc. at their Vehicle Processing Center in Oxnard, CA. In 1990, Brizuela was promoted to the BMW Service Training Department and began developing BMWâ€™s Body & Paint Service Technician Education Program (STEP). From 1991 to 1995, he was responsible for STEP training at the BMW Montvale New Jersey facility.
In 1995, Tom accepted a Body and Paint training/curriculum development position with Toyota Motor Sales, USA, at their Los Angeles corporate headquarters. During this time, he was promoted to Body Service Group Supervisor where he became responsible for Toyota and Lexus body and paint training development, technician certification, and training facility management. In 2000, BMW of North America
committed to build a new body and paint-training center in Oxnard, CA., to train entry-level technicians, and BMW dealer technicians. He saw this opportunity and returned to BMW as Body and Paint Technical Team Leader. The meeting was held at Nick Alexander Los Angeles Imports in Huntington Park, CA.
Search: Autobody News Anthony Guinn (l) and Nick Alexander
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Continued from Cover
AP Auto Services AudaExplore Auto B Craft Collision Center Auto Center Auto Body
Jim Hubka and Cindy Shillito
Auto Club of Southern California Auto Collision Solutions AUTO NATION AutoBody-Review.com Automotive Equipment Solutions AUTONATION Autopark Appearance Center Axalta Coating Systems Banh Collision Center BASF
Jeff Black, Ray Becerra and Thad Forney
Bay cities Auto body Beverly Coachcraft Beverly Hills Autobody Group Bistagne Bros Body Shop Blue Mountain Collision Brotman Auto Body Caliber Collision California Autobody Association California Marketing Group CARSTAR CCC Information Services
Al Ortiz and Karen Mendez with RelyOn technologies
Chaffey Auto Body Class Auto Center/Spectrum Collision Classic Collision Center Collision Consultants Collision Repair Completes Plus Craftsmen Auto Body
D J S Fabrications DC Autocraft Douglas Auto body Dynamic Collision Centers Eli’s Collision Repairs Estorga’s Collision Filters Plus Fix Auto USA Full Color Paint & Supplies Gator Corp Global Collision Center Goliath Carts Grand National Auto Body Greenleafs Auto Body Greg’s Auto Body
Steve Howard, Mark D’Angelo and Craig Flagtwet
Greg’s Collision Center Honda World Body Shop Infratech Inter-Industry Conference on Auto Collision Repair Intertek J&L Body and Paint Shop Jim & Jack’s Collision Center Kent Automotive La Sierra University LKQ
National Oak Distributors North Ranch Bodycraft Number One Auto Collision Nuventory, LLC
Mike Moore and Jon Dady with CCC
Pacific Produx, Inc Precision Auto Body Pride Collision Centers, Inc. Rancho Auto Body Reliable Automotive Equipment Rely-On Technologies Reseda International Collision Center Robaina Industries Inc./Eurocar Bench System
Warwick Bryan, Toby Chess and Jeff Goldenberg
Same Day Auto Body and Paint Santa Monica Ford Santana’s Auto Body
Saprex SATA Spray Equipment Scandinavian Coachcraft Schiro’s Collision Repairs Selman Chevrolet Collision Center Service Dynamics Sherwin Williams Automotive Finishes Sidle’s Automotive Specialty Body Works Inc. Spectrum Collision
Cindy Shillito with CAA
State Automotive State Farm Insurance Steamericas Inc TG Products uParts Valspar Automotive Refinish Van Nuys/Cerritos Collision VeriFacts Automotive VMS Auto Collision Center Wawanesa Insurance
SUBARU Bruce Newell and Larry Merrill
Loma Linda LSV CARTS M@M Paint & Body Sho Marco’s Collision Centers Marina Auto Body Markham Boling Collision Martin Auto Color Mercury Insurance Merrill Consulting Mikeloff Brothers Mitchell International Modern Auto Body
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Thank You! We want to recognize these exceptional companies and organizations who made our Collision Trade Show, Dinner and OEM Training a trememdous success. Thank You to all our friends in the collision industry who support the people who support us.
— Toby and Lillian Collision Trade Show, June 26, 2013 ♦ Cerritos, CA Exhibitors:
• 1-800 Every Rim • AES Technologies • Akzo Nobel Coatings • ALLDATA • Annex Group • Auda Explore • Autobody Review. Com • Automoitve Equipment Solutions -Prospot • Axalta Coating System (Dupont) • BASF • California Autobody Association • Car-O-Liner • CARSTAR • CCC Information Services • Complete Plus • D'Angelos Business Group • Dent Fix Corp. • DJS Fabrication • E-Quip • ERAC • Finish Masters • Fix Auto-USA • Goliath Carts • Harouts BMW & Honda Foreign Auto Parts
• I-CAR • Infratech Corp. • Kent Automotive • LKQ Corp. • Lord Fuzor Corp. • Mitchell International • Morgan Stanley Financials • Norton Abrasives • Nuventory • PPG • Reliable Automotive Equipment • Rely-On Technologies • Robaina Industries • Saprex • Sata Spray Equipment • Sherwin Williams Automotive Finishes • Sims Welding Supply • Single Source • Spanesi USA • Steamericas Inc. • TG Products • The Matrix Wand • Uparts • Verifax
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This article first appeared in the I-CAR Advantage Online, which is published and distributed free of charge. I-CAR, the Inter-Industry Conference on Auto Collision Repair, is a not-for-profit international training organization that researches and develops quality technical education programs related to collision repair. To learn more about I-CAR, and to subscribe to the free publication, visit http://www.i-car.com.
OSHA Hazard Communication Standard Revision The Occupational Safety and Health Administration (OSHA) is requiring that all employees be trained, by December 1st of 2013, on the revision to its Hazard Communication Standard. The revision to the 1994 standard more closely aligns with the Globally Harmonized System (GHS), an international approach to labeling and classifying hazardous products. Why the change? Credit the global marketplace. The U.S. is both a major importer and exporter of chemicals. American workers often see labels and material safety data sheets (MSDS) from the U.S. and from other countries. The diverse and sometimes conflicting national and international requirements can create confusion among those who seek to use hazardous material information effectively. Major Changes The Hazard Communication Standard regulates identification and communication of hazardous products in the workplace. The major changes include:
■ Hazard classification: There are now specific criteria for classification of health and physical hazards, to help ensure that evaluations of hazardous effects are consistent across product makers. ■ Labels: Chemical manufacturers and importers will be required to provide a label that includes the product name, supplier identification including an emergency phone number, the word “Warning” or “Danger,” pictograms, and hazard statements for each hazard class and category. Precautionary statements must also be provided. ■ Safety Data Sheets: The word “Material” has been dropped, and there is a specified 16-section format. The previous standard had a nine-section material safety data sheet, but product makers could generally deviate from that as long as the information was there. Now all safety data sheets will be 16 sections. If manufacturers, importers, distributors, or employers become newly aware of any significant information
regarding the hazards of a chemical, the label should be revised to the new standard within six months of becoming aware of the new information. With products that have not changed, product makers have between June and December of 2015 to convert their labels and safety data sheets to the new standard. Why the December 1st 2013 training requirement for employees if the product makers have until 2015 to implement the new standard requirements? OSHA believes that American workplaces will soon begin to receive labels and SDSs that are consistent with the GHS, since many American and foreign chemical manufacturers have already begun to produce GHScompliant labels and SDSs. It’s important to ensure that when employees begin to see the new labels and SDSs in their workplaces, they will be familiar with them, understand how to use them, and be able to access the information effectively. Label Requirements The supplier must provide at least the following on every hazardous material label:
■ The product identifier (name) ■ A signal word, indicating the relative level of severity of the hazard, either “Danger” (more severe) or “Warning” (less severe) ■ Hazard statements assigned to each applicable hazard class or category, such as “Flammable” or “Carcinogen” ■ Pictograms, eight to choose from and one environmental hazard option ■ Precautionary statements stating what should be done to protect the worker from the hazard, such as “Respiratory protection required” or “Keep away from open flame” ■ Name, address, and telephone number of the product maker or importer or other responsible party
The eight pictograms are shown on page 24. Note that the pictograms are all within a red diamond. There are two new pictograms, one indicating “Health Hazard” and one indicating “Explosive.” Health Hazards include
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carcinogens, reproductive toxins, and other toxins that target a specific organ. Explosives have been separated from flammables. The Environment pictogram is non-mandatory, as OSHA does not oversee environmental hazards.
Workplace Labels Workplace labels are mentioned in the revised standard, but nothing has really changed. The minimum requirements for a workplace label are still the product name and indications on the specific hazards of the product, using pictograms, phrases, or words, whatever is available and applicable. If pictograms and phrases are used, they should be consistent with the revised standard. Sources for the label can be as complicated as using labeling kits from a safety catalog, or writing the information directly and legibly on the container in permanent marker.
National Fire Protection Association (NFPA) labels, with the diamond shape and the color and numbering system, can be used as workplace labels, but there’s an important difference in the numbering system used by the NFPA compared to the GHS. With the NFPA system, the higher the number the greater the hazard, so a “1” is the least severe hazard. With the GHS, it’s just the opposite, the lower the number the more severe the hazard, so a “1” is the most severe hazard. When using the NFPA label as a workplace label, use the GHS numbering system. The numbers are often included in the SDS.
Safety Data Sheet (SDS) The information required on the SDS remains essentially the same as that in the 1994 standard, except that the information must be presented using 16 specific headings in a specified sequence.
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The format of the 16-section SDS should include the following sections: ■ Section 1. Identification ■ Section 2. Hazard(s) identification ■ Section 3. Composition/information on ingredients ■ Section 4. First-Aid measures ■ Section 5. Fire-fighting measures ■ Section 6. Accidental release measures ■ Section 7. Handling and storage ■ Section 8. Exposure controls/personal protection ■ Section 9. Physical and chemical properties ■ Section 10. Stability and reactivity ■ Section 11. Toxicological information ■ Section 12. Ecological information ■ Section 13. Disposal considerations ■ Section 14. Transport information ■ Section 15. Regulatory information ■ Section 16. Other information, including date of preparation or last revision. Note that although the headings for Sections 12–15 are mandatory, OSHA will not enforce the content of these four sections because these sections are within other agencies’ jurisdictions.
• Carcinogen • Mutagenicity • Reproductive Toxicity • Respiratory Sensitizer • Target Organ Toxicity • Aspiration Toxicity
HCS Pictograms and Hazards Flame
• Flammables • Pirophorics • Self-Heating • Emits Flammable Gas • Self Reactive • Organic Peroxides
• Gases Under Pressure
Flame over Circle
• Irritant (skin and eye) • Skin Sensitizer • Acute Toxicity (harmful) • Narcotic Effects. • Respiratory Tract Irritant • Hazardous to Ozone Layer (Non Mandatory)
• Skin Corrosion/burns • Eye Damage • Corrosive to Metals
• Explosives • Self-Reaction • Organic Peroxides
• Aquatic Toxicity
• Acute Toxicity (fatal or toxic)
Environment (Non Mandatory)
One or more of these pictograms must be on supplier labels.
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Skull and Crossbones
Employer’s Responsibility Repair facility owners and managers need to become familiar with the standard revisions and train their employees on recognizing the new labels and reading the new SDS versions by December 1st. OSHA has some downloadable “quick cards” available for help with this training. Go to www.osha.gov.
Besides the general information, it’s even more important that repair facility owners and managers explain how the hazardous communication procedures will change in the specific facility. If OSHA makes a visit, that is what they will be looking for; if employees know how to find and read the information on hazardous materials that they work with.
Conclusion OSHA recently updated its Hazard Communication Standard, which covers requirements for labels, safety data sheets, and hazard material classifications. Several product makers have already begun using the new labeling and SDS system, so OSHA is requiring employees be trained to recognize the new label
and SDS format by December 1st, 2013. Even more important than general information is for shop owners and managers to inform employees about how hazard communications will change in the repair facility. For comments or suggestions on the Advantage Online, please contact I-CAR at email@example.com.
Bookkeeper Sentenced to Seven Years For Theft from Florida Body Shop Jennifer Vasseur could have gotten six months in jail, but when she couldn’t make restitution, she was given a seven-year prison sentence. As part of a plea deal, the 38-year-old Winter Haven woman had to repay more than $20,000 that she stole from A&E Auto Body in Eagle Lake, where she worked as a bookkeeper and secretary. The deadline was July 9. She was short about $15,000. Her punishment was up to Circuit Judge Catherine Combee to decide. She ordered Vasseur to serve seven years in prison followed by 10 years of probation. Vasseur was arrested in May 2011 after an investigation by the State Attorney’s Office in Bartow. She
wrote unauthorized checks in her name, her husband’s name and to cash, according to a complaint affidavit. Vasseur told investigators that she took the money to help pay bills, the affidavit states. In May, she pleaded guilty to grand theft and making false entries on the books of a corporation. During the hearing, Vasseur vowed to “pay back every single penny.” She asked for house arrest or probation. “I will pay the money back,” she said. “I’m not the person that I was.” Victoria Arrington, owner of A&E Auto Body, said she and her employees were supportive of Vasseur while she worked there for four years.
She described many examples of assistance provided to Vasseur over the years: getting her a car, paying to turn her power on, giving her a computer, providing her extra money to eat at restaurants on the weekend, paying for her cellphone, purchasing massages for her, helping with preparations for her wedding, offering to pay for her to continue her education and sending Vasseur’s daughter to a theater camp. Vasseur’s theft was painful, but the business was able to carry on, she said. “We didn’t lose faith in people though,” Arrington said. “We still hire people, and we still trust them. We could have been cynical, but we be-
lieve that people are good.” Prosecutors asked for a five-year prison sentence. The judge went higher, noting Vasseur’s past criminal history. Vasseur said she didn’t know that her plea deal exposed her to a sevenyear prison sentence, or she wouldn’t have signed it. She thought the most that she faced was 15 months in prison. Vasseur was also ordered to pay $20,729 in restitution.
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SCRS Board Meeting: Partial Panels, Labor Rates, SkillsUSA by Chasidy Rae Sisk
In the midst of the CIC and I-CAR conferences being held in Boston during the week of July 22–26, the Society of Collision Repair Specialists (SCRS) also held their board meeting. The 2hour meeting was held in the Hancock room of the Westin Boston Waterfront, located at 425 Summer Street in Boston, MA. Led by thirteen board members, including Ron Reichen making his debut as Chairman, the meeting was to convey updates from SCRS staff and committees to outline current and future work initiatives. Approximately twenty attendees gathered to listen to these updates. The SCRS Education Committee, led by Toby Chess, offered a presentation focused on repairing aluminum, stud welding and dent-pulling equipment technologies. Moving on to a pressing industry issue, Executive Director Aaron Schulenburg addressed partial panel finishing and dissatisfactory compensation from insurers, noting that this problem which was seemingly corrected back in 2007-8 is returning. SCRS has seen a drastic increase in the number of queries about this issue since the beginning of 2013. Even more disheartening, this issue is not geographically isolated, occurring throughout the country. SCRS issued letter to six different carriers in May 2013 to enquire about their guidelines. Surprisingly, the overwhelming response was that carriers have not made any changes to their policies, with many of the carriers saying that their expectations for reduced refinish time on repaired panels are based on receiving a mutual agreements with individual repairers based on the repair needs. Additionally, no company has provided or admitted to any corporate position or policy which specifies any precise reduction in time, although some examples of such documentation have been received by SCRS. The association is continuing to work with these carriers to address the issue and hopefully resolve what has become a pattern of practice for some in 2013. Schulenburg’s said his concern arises because SCRS has received complaints from repairers who don’t agree to a reduction in time yet are being told that it is a matter of company policy. The question he now poses to
insurers is how to respond to claims that this is company policy when, in fact, it is not. Schulenburg emphasized that such conflicts benefit neither collision repair shops nor the relationships between repairers and insurers. SCRS will continue to seek answers to this dilemma and will provide an update on the situation at SEMA in November. SCRS Past Chairman Barry
a stronger presence, especially legislatively. Currently, AASP-MA is trying to get the Auto Body Labor Rate Bill approved into law. Since 2008, the state has seen a free market resurgence with new insurers writing new policies, however, there have been no changes to labor rates in fifteen years, leaving Massachusetts with some of the lowest
(l to r): Ron Reichen, Aaron Schulenburg & Andy Dingman at SCRS Board Meeting
Dorn reported that over 6000 inquiries have been received through the Database Enhancement Gateway (DEG)— but while the number is a milestone accomplishment for the free industry resource, that number should be significantly higher. Collaboratively supported by national associations, the DEG is funded by SCRS, AASP and ASA who monitor the received inquiries through a full time administrator. Though the DEG has seen an increase in the number of inquiries received, there are over 30,000 collision repair shops nationally, suggesting that the number of submissions from repair facilities who have experienced issues with estimating data could significantly increase if more in the industry became aware of the tool, and how easy it was to use. The industry as a whole benefits from each inquiry, as they are publicly posted into a database. Next, Schulenburg introduced representatives from their local SCRS Affiliate Association to talk about local industry efforts. SCRS represents 40 state and regional Affiliate Associations across the U.S. Molly Brodeur, Vice President of AASP-MA, provided updates on current industry activities in Massachusetts as well as an overview of her association’s efforts. The association has hired a management firm, Lynch Associates, as of May 2013, and with that addition came new Executive Director Jillian Zywien (see my interview with her this issue p. 36) who was excited to attend the week’s events and looks forward to her increased involvement within the industry. Through their partnership with Lynch Associates, AASP-MA hopes to create
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rates in the nation. The Auto Body Labor Rate Bill proposes an increase in labor rates to reach a more competitive level, combined with a review and possible increase of rates every three years. AASP-MA has also redesigned their website recently to enhance their member benefit packages as they strive to increase membership. Since there is not much I-CAR influence in Massa-
chusetts, the association is also working to change that by focusing on acquiring Gold Class certifications for local shops. Through their work with the Collision Repair Education Foundation (CREF), AASP-MA awarded the first recipient of their tool grant at their 2012 golf outing. As Brodeur concluded, Schulenburg turned the meeting’s focus toward the future as he assured attendees that SCRS’s plans for SEMA are coming along well. He encouraged collision repairers to attend the November event, claiming it is a great environment where a shop can learn how to market itself, add revenue or just learn more about the industry. SCRS is most closely involved with the Repairer Driven Education series at the SEMA Show, and this year’s development of different learning tracks will allow individuals to choose the focus of their education. SCRS has engaged compelling industry speakers for the vents, and Schulenburg believes, “the program hits home for repairers and will provide tangible benefits.” See SCRS Board Meeting, Page 29
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Historical Snapshot with John Yoswick
—John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
A Look Back at this Month in Collision News History This month we begin a new type of column that takes a look back at this month in collision history 20, 15, 10 and 5 years ago. You may be surprised how many issues we think of as recent concerns were in the news back then. Keep in mind that these stories may have turned out differently than the way they were reported at the time. Where they did, we attempt to clarify the later outcome.
20 years ago (August 1993) Collision repairers may soon be hearing about EXACT, a Colorado-based foundation that wants to see body shops take part in an early trial of its autobody repair standards. So far, the foundation’s executive director, Phil Freeman, has sent out applications for membership to repairers in Rochester, NY, and Chicago. If they take part, shops pay $3,160 after undergoing extensive training, testing and certification. While shops may
balk at paying yet another fee for another organization that’s supposed to bring them success, EXACT wants to establish comprehensive industry standards that will be for autobody work what building codes are for building contractors. “One of the things we’re trying to do is keep it out of the hands of lawmakers,” Freeman said. “A legislator could come in and try to establish something for an industry he’s not too familiar with.” Already EXACT has spent three years writing up 140 pages of repair standards that Freeman expects to become even more refined over the years. Called the Uniform Autobody Repair Code, the standards will have to be approved by the collision repair industry. “They’ve been through a technical committee of 27 shop owners,” Freeman said. “We anticipate approval around the first of the year.” ►The EXACT Foundation sub-
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sequently reached an agreement with I-CAR under which that organization would continue to develop, manage and market the code under the name Uniform Procedures for Collision Repair (UPCR)
15 years ago (August 1998) I-CAR also made two significant announcements about its Uniform Procedures for Collision Repair (UPCR) at its annual meeting. First, Toyota Motor Sales USA, Inc., has agreed to provide its Toyota and Lexus collision repair manuals for inclusion with the UPCR. Beginning with the January update to the UPCR, subscribers will have access to the same collision repair technical information made available to Toyota and Lexus dealers. I-CAR’s Tom Mack said he hopes Toyota is just the first of many vehicle manufacturers to make their collision repair manuals available to UPCR subscribers.
The second announcement about the UPCR made at the meeting was that 20th Century Insurance Company has become the first insurer to purchase the UPCR for widespread use by its employees. John Bierer of 20th Century said he was charged earlier this year with improving the consistency of the estimating, adjusting and reinspection efforts of the insurer’s staff. He said after reviewing the UPCR with his claims office management, he presented it to his superiors as the solution they were looking for. “Each one of our adjusters, our quality control reinspectors, our supervisors and mangers will have a copy of UPCR on their laptops to use in their adjusting, inspecting and quality control,” Bierer said, adding that he hopes other insurers will follow 20th Century’s lead. ”I think it’s what we’ve been looking for for quite some time.”
► I-CAR one year later shelved its UPCR product, which included collision repair procedures as well as vehicle and product manufacturerspecific information, saying sales were “reasonably underwhelming,” but a revival of UPCR has been raised by some during more recent discussions of collision repair standards.
10 years ago (August 2003) (From Autobody News): Aftermarket parts manufacturers and CAPA are likely vexed by the newly-released “Crash Parts Certification Study” published by the California Bureau of Automotive Repair (BAR). The report blasts the parts certification process, concluding that “certification has no value to the customer…If there are problems with the certified product, the certifying entity does not stand behind their own certification process.” Legislation enacted in 2001 authorized $125,000 to be spent by the BAR, a sub-agency of the California Department of Consumer Affairs, to study the best process for certifying crash parts, and to designate the agency to bear responsibility for overseeing crash parts certification. For two-anda-half years, the BAR held meetings
with repairers, insurers, OEMs and aftermarket parts certifiers. It sent out surveys to auto body repair shops and conducted field test on crash parts. In the end, the BAR reached several conclusions, most notably: ● Elimination of non-certified aftermarket crash parts is not a viable option. Outlawing non-certified aftermarket parts (as suggested by CAPA) would make the market less competitive and leave a shortage of such parts. ● Certification does not protect consumers from poor quality parts… If the certifying entity warranted their certified parts it would provide ‘added value’ to the certified part, and protect consumers against poor quality parts. The study compared the CAPA Quality Seal to the well-known Good Housekeeping Seal of Approval. The Good Housekeeping seal carried a limited warranty stating that if any product bearing the seal proves to be defective within two years of the date of purchase, the product will be replaced or the purchase price refunded. “If CAPA or Global Validators feel their certification parts fit the criteria of their certification program, why don’t they stand behind their certified parts?” the BAR report asks.
5 years ago (August 2008) The Progressive Insurance fraud lawsuit against Greg Coccaro and his New York shop, North State Custom, was dismissed. When Progressive concluded presenting its evidence and testimony, Coccaro’s attorneys moved for a directed verdict (a standard practice in many cases) and Judge Mary Smith granted the motion, dismissing the case, saying Progressive had not presented sufficient credible evidence for the trial to continue. Coccaro issued a press release saying he was “elated with the Judge’s decision” and “extremely grateful and touched by all of the support and encouragement shown by fellow members of the collision repair industry.” “We are disappointed by the court’s decision, and we plan to appeal,” spokeswoman Cristy Cote of Progressive Insurance. ► Progressive indeed appealed and the case was retried, only to have a jury find Coccaro not guilty in 2010; Coccaro earlier this year reached an out-of-court settlement with the insurer just days before trial was set to begin in his tortious business interference lawsuit against Progressive (terms of the settlement are subject to a non-disclosure clause).
SCRS Board Meeting
Continued from Page 26
The show floor at SEMA promotes enthusiasm for the collision repair industry, due in large part to the vast array of exhibiting corporations, with attendees groups coming from as far away as Australia and New Zealand. Several SCRS board members proceeded to talk about their involvement with Skills USA, emphasizing the importance of reaching out to young people who “truly are our future,” according to Reichen. Schools with students participating in the competition received a free SCRS membership, and student competitors received individual recognition from SCRS, letting them know the industry supports their efforts to become the best in their field, and is watching their accomplishments. The overall consensus was that an amazing energy surrounded the event which deserves to be supported and promoted; SCRS is excited to be a part of it and plans to continue their involvement. As always, SCRS emphasizes the importance of continuing education.
www.autobodynews.com | AUGUST 2013 AUTOBODY NEWS 29
Inside Insurance with The Insurance Insider
The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com
Insurers Hate to Admit It, But Our Success Depends On You and Your Estimators
Every insurance company knows that stead, Allstate finds itself being pulled their profitability and loss cost ex- down by an otherwise benign Englishpense relative to auto claims has many accented lizard. Er, I mean gecko. At independent variables. often have with We Chasidy Rae any Siskrate, I’m sure it’s creating mayno control over them. For an obvious hem within Allstate.) example, we can’t ask Mother Nature One thing is for certain: When a to reduce the number of hurricanes company begins losing market share, that ravage areas bordering the ocean. it causes them to ratchet down on exAnd we have no control over the numpenses. Let this serve as your adber of accidents that ourChasidy policyholders with Rae vanced Sisk warning: Allstate likely will be are involved in. stingier than ever. On the flipside, there are some What makes Allstate’s investment variables within our control—to vary- in educating their staff even more ining degrees, to be sure, but within our teresting is the fact that other large carcontrol nonetheless. I’m referring to riers (including several I’ve worked our staff adjusters. If our staff is well for) don’t require any training. Some trained, if we maintain strict operating may wonder if they are taking an opprocedures, and if we provide proper posite strategy, sort of a “survival of oversight of our employees, we can the dumbest.” As Forrest Gump fareduce our overall loss cost expense. mously said, “Stupid is as stupid Therefore, most insurance carridoes.” If you don’t know how to propers spend a lot of time and money to erly write an estimate, nobody can train and supervise their staff. In addiblame you for trying to cheat them. tion, they regularly make large capital There are dozens of other indeinvestments to purchase or develop pendent variables that impact loss tools to automate an additional level costs, but let’s focus on “dependent of oversight. The challenge is that variables.” A dependent variable is even the best electronic tools can’t re- loosely defined as those things that inplace the effectiveness of a human surance companies depend upon a colbeing. lision repair shop for. I never thought Several insurance carriers have I’d say that we depend upon shops but made a especially significant commit- we do. ment to education. Allstate is one exMost of you are probably guessample. They are the largest insurer ing that we depend on you for proper that requires their staff to be I-CAR part selection or cycle time. Although Platinum. That’s quite an investment both of those are critically important for a company that was recently re- to controlling loss costs and improvported as being on the verge of drop- ing profitability, there is one even ping into the third spot among the more key variable. An insurance comlargest carriers in the United States. pany’s loss costs have less to do with (Oh, how the mighty have fallen. your standard operating procedures or Not so long ago, Allstate was a lock part type selection than they do with solid No. 2 and looking for ways to your estimator. knock State Farm off its pedestal. InYour profitability and our loss
Northeast News Shop Showcase
cost expense ultimately are based on your estimator’s ability to write an accurate estimate, manage a claim and follow our guidelines. If you have an experienced estimator that understands a particular carrier’s program guidelines, you are better off than 90 percent of the people reading this article. You should make sure that he or she is well compensated. The skills they have are about as rare as you receiving labor time for prime, block and fill on a repaired panel. That individual can turn a company around and make a historically unsuccessful shop successful. I’ve seen shops that have performed at a high level for years fail miserably when their lead estimator left. Collision repair shops that have the most astute owner, ironclad operational procedures and long-tenured technicians have come to a screeching halt when they lose the glue of the operation provided by a good estimator.
I’m sure it is going to cost some shop owners money when their estimator realizes he’s worth far more than you are paying him. Great technicians are probably more difficult to replace, but you can overcome the loss with an average technician and strong estimator. I’ve been in meetings where shops beg to remain on a program after a few months of poor performance. They are quick to indicate that they have lost their best estimator. Without trying to sounding heartless, I don’t care about that. My job isn’t to help you manage your operation. Our goal is to make sure that the best shops are repairing our customer’s cars. If you can’t do it, we’ll gladly take our work to the shop owner that realizes that having only one All-Star on your team is poor planning. So do you have a contingency plan? If you don’t, today would be a good day to start making one.
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Car-O-Liner Gets Honda Approval As Official Supplier Car-O-Liner has announced participation in American Honda’s Tool and Equipment Programs as an official approved supplier of collision repair products. The programs offer the advantage of one-stop shopping for all service tool and equipment needs. Equipment has been selected for these specific manufacturers in order to enhance collision centers’ productivity and efficiency while properly returning the vehicles to factory specifications.
“Car-O-Liner is pleased to be a part of Honda’s and Acura’s Tool and Equipment Programs,” said Peter Richardson, key accounts manager for Car-O-Liner. “Adding Car-O-Liner to their approved equipment offering means greater flexibility, accuracy and efficiency. Our complete solutions will provide Honda and Acura collision centers with the products they need to maximize their repair potential.”
30 AUGUST 2013 AUTOBODY NEWS | www.autobodynews.com
Call us Today!
877.484.4870 916.484.4876 Fax: 916.484.4878 Hours: M-F 7:30 am - 5:30 pm 2410 Auburn Blvd. - Sacramento, CA 95821
www.autobodynews.com | AUGUST 2013 AUTOBODY NEWS 31
32 AUGUST 2013 AUTOBODY NEWS | www.autobodynews.com
The Honda and Acura Dealers Listed Here are HO N D A CA L I F O R N I A
Autowest Honda Roseville
Honda Cars of Corona
Dept. Hours: M-F 7:30-6; Sat 8-5:30 email@example.com
Dept. Hours: M-Sat 7-5 firstname.lastname@example.org
Avery Greene Honda
Honda of Hollywood
Va l l e j o
H o l l y wo o d
Dept. Hours: M-F 7-6; Sat 8-5
Dept. Hours: M-F 7:30-6; Sat 7:30-5 email@example.com
Dept. Hours: M-F 7:30-6; Sat 8-5 firstname.lastname@example.org
San Francisco Honda
Dept. Hours: M-F 7-5:30; Sat 7-5 email@example.com
Honda of Oakland
B a ke r s f i e l d
Dept. Hours: M-F 8-5:30 firstname.lastname@example.org
Dept. Hours: M-F 8-5:30 email@example.com
Dept. Hours: M-F 7-8; Sat 7-6
Clawson Honda F re s n o
Kolbe Honda Reseda
Dept. Hours: M-F 8-5; Sat 8-5 firstname.lastname@example.org
Dept. Hours: M-F 7:30-6; Sat 7:30-5 email@example.com
Larry Hopkins Honda
S i m i Va l l e y
888-523-0698 805-584-6646 Dept. Hours: M-F 7-6; Sat 7:30-5 firstname.lastname@example.org
Galpin Honda Mission Hills
800-GO GALPIN 818-778-2005 Dept. Hours: M-F 7-6; Sat 8-5 email@example.com
S u n n y va le
408-720-0221 408-736-2608 Dept. Hours: M-Sat 8-5 firstname.lastname@example.org
Metro Honda Montclair
800-446-5697 909-625-8960 Dept. Hours: M-F 7:30-5:30; Sat 7:30-4 email@example.com
Dept. Hours: M-F 7-6; Sat 8-4:30 firstname.lastname@example.org
Robertson Honda North Hollywood
Selma Honda Selma
Chapman Honda Dept. Hours: M-F 7-6; Sat 8-4 email@example.com
AutoNation Honda Chandler
Tempe Honda Tempe
800-571-7019 480-421-4860 Dept. Hours: M-Sat 7-6 Jdodge@penskeautomotive.com
800-717-3562 559-891-5111 Dept. Hours: M-F 7-6; Sat 7:30-4:30 firstname.lastname@example.org
University Honda Davis
800-585-8648 530-758-8770 Dept. Hours: M-Sat 8-6; Sun 8-5 email@example.com NEVADA
Findlay Honda Henderson Henderson
got repair info?
888-234-4498 702-568-3531 Dept. Hours: M-F 7-6; Sat 8-5 firstname.lastname@example.org
AC U R A CA L I F O R N I A
Acura of Fremont
Santa Monica Acura
F re m o n t
Dept. Hours: M-Sat 8-6 email@example.com
Dept. Hours: M-F 7-7; Sat 7-6 firstname.lastname@example.org
Dept. Hours: M-F 7-7; Sat 8-6 Scott.email@example.com
Dept. Hours: M-F 7-6; Sat 7-5 firstname.lastname@example.org
Acura of Pleasanton
Dept. Hours: M-F 7:30-6; Sat 8-6 email@example.com
Dept. Hours: M-F 7:30-5:30 firstname.lastname@example.org
Acura of Sunnyvale
Power Acura South Bay
S u n n y va l e
To r ra n c e
Acura Authorized Service Center Dept. Hours: M-F 8-5:30; Sat 8-5 Mike.Oâ€™Hare@sunnyvaleacura.com
Dept. Hours: M-F 7-6; Sat 8-5 email@example.com
Acura of Peoria
Acura of Tempe
Findlay Acura Henderson
877-770-5873 702-982-4160 Dept. Hours: M-F 7-6; Sat 8-4 firstname.lastname@example.org
866-455-6601 480-344-6703 Dept. Hours: M-F 7-6; Sat 8-5 email@example.com
www.autobodynews.com | AUGUST 2013 AUTOBODY NEWS 33
AUTOMAKER, OEM, AND RECALL Autobody News
CALIFORNIA • NEVADA • ARIZONA
Chrysler Issues Recall on Air Bag Modules
GM to Recall Four 2012 Volts
Japan’s Toray Buys Stake in Plasan Carbon Composites
Ford to Hire 3000 Salaried Workers in 2013
Chrysler is recalling certain model year 2013 Town & Country and Dodge Grand Caravan vehicles manufactured June 11, 2013, through June 12, 2013. The occupant restraint control module (ORC) has incorrect software installed which may adversely affect air bag deployments in collisions. Thus, these vehicles fail to conform to the requirements of Federal Motor Vehicle Safety Standard No. 208, “Occupant Crash Protection” and No. 214, “Side Impact Protection.”
Japan’s Toray Industries Inc. has taken a minority stake in U.S. auto carbon fiber supplier Plasan Carbon Composites Inc. in a move underlining the potential growth for carbon fiber parts. The 20 percent stake comes as Plasan begins to launch its biggest and highest profile project —making two body panels for the 2014 Chevrolet Corvette Stingray. The companies did not disclose financial terms of the deal. Tokyo-based Toray has been establishing development centers globally to help speed the use of carbon fiber in the auto market. The investment in Plasan takes Toray’s involvement further, and helps to ensure a distribution channel to U.S. automakers and to establish Toray as part of a vertical integration system for the material.
Nissan Plans Major Reforms in Buying, Shipping, Building
Nissan Motor Co. is attempting to pare U.S. operating costs by rethinking the way it buys parts, builds cars and moves cars and components around the continent. U.S. executives are looking for the cost reductions to help Nissan meet CEO Carlos Ghosn's "Power 88" business plan, which calls for a global consolidated operating profit of 8 percent by March 2017.
General Motors Co. said it will recall four 2012 Chevrolet Volts because of an electronic glitch that could increase the risk of a crash — the first recall of the Detroit automaker’s plug-in hybrid electric vehicles. GM says the electronic stability control may not work as intended and increase the possibility of a crash in an emergency braking incident. GM is unaware of any crashes or injuries associated with this condition. This is the first recall for the Volt since late 2010.
Ford Motor Co. said it will hire 3,000 salaried workers this year—800 more than previously announced. Ford said 80 percent of the new employees will be technical professionals with “new skills.” The company expects 85 to 90 percent of those hires will be placed within the state of Michigan. Ford said it also plans to increase hourly employment by 12,000 by 2015. “Engineers and technical professionals are in as much demand as our cars, trucks and SUVs,” Felicia Fields, Ford’s group vice president for human resources, said in a statement. “Global demand and increasing capacity in North America and Asia requires that we aggressively seek out technical professionals in order to continue our growth.” The vast majority of the technical hires will be engineers in purchasing, manufacturing and product development. About 200-300 will be hired in IT-related fields. Fields said some of the hires are attrition replacement, but more than two-thirds of the hires will be new jobs. As a result of the recession, Ford reduced its workforce by 13,000 salaried employees between 2006 and 2009, she said. “There are some people that we did lose during that downturn that have skills and capabilities that we absolutely welcome back into Ford, and some of those employees have returned to Ford,” Fields said, adding that there are still many “new,” advanced skills that require fresh talent.
34 AUGUST 2013 AUTOBODY NEWS | www.autobodynews.com
Ford to Recall 13K Vehicles over Door Latches
The Ford Motor Co. said June 27 it will recall about 13,100 vehicles for door latches that may fail and cause child safety locks to deactivate. The Dearborn automaker will recall three 2013 model-year vehicles — the Explorer SUV, Taurus sedan and Lincoln MKS sedan — built at Ford’s Chicago Assembly Plant. Upon opening or closing a door, the child safety lock may change from “activated” to “deactivated.” Ford said that no accidents or injuries have been reported. As part of the recall, dealers will test rear door latches and child safety locks, and replace the latch if necessary. The affected vehicles, sold in the U.S., Canada and Mexico, were built between Nov. 29 and Dec. 12, 2012. The problem was first discovered on Dec. 6 during a routine audit, the latch supplier identified a latch with lower-than-expected child safety lock retention torque. On Dec. 7, Ford’s Chicago Assembly Plant was notified of the condition and a stop-ship was issued. Ford spent months testing the issue, using accelerated testing on each vehicle line. This is not the first time that Ford has recalled model year 2013 Explorer, Taurus and Lincoln MKS vehicles.
Japan’s Diamond Electric to Pay $19M Price Fixing Fine
A Japanese manufacturer of ignition coils that were sold to Ford, Toyota and Subaru parent Fuji Heavy Industries Ltd. has agreed to plead guilty and pay a $19 million fine for its role in a conspiracy to fix prices of automotive components, the U.S. Department of Justice said. The plea agreement with Diamond Electric Manufacturing of Osaka, Japan, marks the first time that the Justice Department's broadening automotive parts price-fixing probe has involved parts sold to an automaker headquartered in the United States, the government said in a statement.
GM and UTI Partner to Help Grow Supply of Auto Techs
Universal Technical Institute has formalized an agreement with General Motors Co. (GM) to develop a 12week elective training program for UTI students. The program will first be available at UTI’s Avondale campus. “The availability of qualified, trained automotive technicians is and will continue to be a critical area of importance for GM,” said Mike Durkin, Director Dealer Service and Warranty Operations, at GM. “When looking at UTI’s industry leading curriculum, facilities and student and employer support services, we knew we had a solid partner to build something great with, supporting a growing need for technicians at our dealerships across the country.” The curriculum for the GM elective program will be developed in partnership between UTI, GM and Raytheon Professional Services. For more follow UTI on Facebook at www.facebook.com/UTI, or on Twitter at @UTITweet.
Rearview Cameras Delayed
The Obama administration is again delaying regulations on whether new cars and trucks must come equipped with rearview cameras to protect against drivers backing over people in blind spots behind their vehicles, a victory for automakers who say requiring the cameras is too costly. Transportation Secretary Ray LaHood said Thursday in letters to three members of Congress that more research is needed. He set a new deadline of January 2015 for the regulations. An average of 228 people are killed and 17,000 injured each year because of back-over accidents. Nearly half the deaths involve children under age 10. The elderly also frequently are victims. Congress passed a law in 2008 requiring the government to issue final regulations aiming at protecting against backover accidents by Feb. 28, 2011, and that the changes be in place for model year 2014 vehicles. But the regulations have been delayed repeatedly.
Honda Reponds to Amended Class Action Complaint
Honda has filed a response to an amended class action complaint, which alleges some of the automaker’s vehicles have defective window regulators. In the case, Grodzitsky versus American Honda Motor Co., the plaintiffs argue the window regulator defect results in the sidelite falling into the door frame or becoming stuck in the fully-open position. Phyllis Grodzitsky, owner of a Honda Odyssey, and Jeremy Bordelon of Tennessee, owner of a Honda Element, alleged in the original complaint that they reported repeated failures of window regulators in their vehicles. Grodzitsky further claims that she contacted her local Honda service manager and was told, “all [Honda Odysseys] have that problem.” In its response to the amended complaint, the automaker’s attorneys write, “Honda expressly denies that ‘all Honda Odysseys have that problem.” Honda’s attorneys deny most of the allegations. Honda admits that within some, but not all, vehicles that are part of plaintiffs’ putative class definition, side windows are moved up and down by a window regulator that operates with a central track, a shuttle and a cable, attached to a motor.
Volvo: Six State Class Action Should Not Be Certified
Citing a recent U.S. Supreme Court decision, Volvo has filed a motion requesting that the U.S. New Jersey District Court reconsider certification of a six-state class action over an alleged sunroof defect. In March, Judge Dennis Cavanaugh granted plaintiffs’ motion for certification of statewide classes in Massachusetts, Florida, Hawaii, New Jersey, California and Maryland. “In doing so, the court rejected Volvo’s argument that certification of plaintiffs’ statewide classes was improper because, among other reason, plaintiffs had offered no proof that class-wide damaged could be proved with common evidence,” Volvo’s attorneys argue in the motion. “Rather, the court relied on the allegations of the second-amended complaint to conclude that the relief sought by the plaintiffs applies to all members of the certified classes. The United States Supreme Court issued its opinion in Comcast Corp. versus Behrend... [which] makes clear that the court’s decision to certify a class without any showing that damages can be proved on a class-wide basis was in error. The court should reconsider and reverse its decision,” the attorneys write.
Future Looks Bright for U.S. Auto Industry, Hiring, Sales
The auto industry is about to go on a hiring spree as car makers and parts suppliers race to find engineers, technicians and factory workers to build the next generation of vehicles. The new employees will be part of a larger, busier workforce. From coast to coast, the industry is in top gear. Factories are operating at about 95 percent of capacity, and many are already running three shifts. As a result, some auto and parts companies are doing something they’ve been reluctant to consider since the recession: Adding floor space and spending millions of dollars on new equipment. “We’re really bumping up against the edge,” says Michael Robinet, managing director of IHS Automotive, which forecasts auto production. “So it really is brick-and-mortar time.” The auto industry’s stepped-up hiring will help sustain the nation’s job growth and help fuel consumer spending. The government said U.S. employers added 175,000 jobs in May, roughly the monthly average for the past year and a sign of the economy’s resilience. U.S. consumer confidence has reached a fiveyear high. The auto industry’s outlook is bright. Vehicle sales for 2013 could reach 15.5 million, the highest in six years.
OEMs, CARE, and AAIA Seek Solution to Right to Repair
At a hearing on New Jersey Right to Repair bill, representatives of AAIA and CARE along with auto OEMs said they want to develop a national solution on the right to repair issue. Hope to conclude an agreement by the end of July. ASA believes its 2002 deal with manufacturers is working. After more than a decade of effort to pass legislation, first at the Federal-level, then at the statelevel, some of the organizations supporting Right to Repair legislation appear to be seeking a negotiated solution with automakers. In testimony before the Consumer Affairs Committee of the New Jersey State Legislature on Assembly Bill 352, the Motor Vehicle Owners Right to Repair Act, Aaron Lowe, with the Automotive Aftermarket Industry Association (AAIA) stated that while they remain strong supporters of right to repair legislation in the states, nationally, they are in discussions with auto manufacturers on a national solution. Lowe said that after the passage of Right to Repair legislation and the success of a later ballot measure in Massachusetts, AAIA and CARE began to seek a national solution with OEMs.
www.autobodynews.com | AUGUST 2013 AUTOBODY NEWS 35
Gene Crozat of G&C Auto Body Can’t Seem to Give Enough, Fast Enough gram that takes place every holiday season as he covers peoples’ parking Gene Crozat, the owner of G&C fees in downtown Santa Rosa, CA—a Auto Body known as a fierce business program G&C has sponsored for the competitor to surrounding shops, has past 20 years. But, now the man and always done everything in a big way. his family are fast-tracking and inIf you ever visit any of his 10 Bay creasing their charitable efforts, by giving away more cars and more cash for people and organizations that need it. For example, last year the Crozat family made recordsetting pledges to the Christmas Wish program and The Children’s Village, as well as many smaller donations to local community non-profit organizations including MenFrom left, Kent Bjustad from Sonoma Media Group, car R-Pigs, Becoming Independrecipients Destiny Snell, Brad Snell and Gene Crozat in front of a vehicle G&C Auto Body donated to the family ent, the Jon Michael Martin as part of their Car-A-Month Giveaway program Medical Fund and the Boys Area locations, you’ll see they look & Girls Club of Marin, local Boy more like The Bellagio in Las Vegas Scout troops, softball leagues and elethan a body shop. Crozat is already mentary schools. legendary for generously donating Recently, Teri and Gene Crozat money, clothing and other items to sponsored a trip to Disneyland for 14 of the staff and all 24 kids of The Chilfamilies throughout northern California, for no reason other than to know dren’s Village in Santa Rosa, as well as donating an entertainment center in he has helped someone. He is also well-known for his Meter Beaters Pro- their existing rec room. They also doby Ed Attanasio
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nated the use of the company’s luxury and then refurbished by the techs and suite at a Giant’s game, including 12 detailing team at G&C. In some cases, Crozat repairs cars that nomitickets, as an item for the annual auction at The Children’s Village Gala, nated people already own to make them drivable and dependable. raising $6,000. As he meets these recipients and The Children’s Village of Sonoma County provides nurturing, gets to know them, Crozat has also family-style homes for children and helped many of these families in their siblings in foster care. Opened in Au- daily lives, helping out with bills, handing out $5,000 worth of $100 gust 2006, The Village currently conSafeway grocery gift cards with sists of four large houses serving 24 $5,000 more ready to go, gas cards, children, and four apartments for seniors who act as surrogate grandparents. As another way to help the communities surrounding G&C’s locations and take advantage of the availability of technicians and connections to parts dealers, Gene started a Car-A-Month Giveaway with the help of local radio stations, receiving hundreds Morgan Weatherly (left) receives her van’s pink slip from of letters from listeners in the G&C’s Alayne Saturday. She also received a job at a G&C Santa Rosa, Ukiah, and Fair- shop, where she works currently field areas. G&C gave away six cars taking families shopping for clothes, last year to those in need and is on paying for weekly stays at hotel track to donate 18 cars in 2013, all of rooms, “door ditching” with enwhich are purchased at the Car Mart velopes of cash to needy families and at the Sonoma County Fairgrounds other acts of kindness, according to
Govinda Crozat, the company’s Outreach Director and the wife of Shawn Crozat, G&C’s Chief Operations Officer. One of the first recipients of G&C’s giveaway program was Morgan Weatherly, who submitted this letter last December. “My name is Morgan. I am a single mother of four beautiful smart, good kids—ages 17, 7, 3 and 18 months. We live nearly 20 miles out of town; out in the country and nowhere near public transportation. Having a reliable car is critical in our situation. Lack of reliable transportation has been a huge source of stress and hardship over the years. My 7-year-old daughter was born two months premature and at one point I had to hitchhike to deliver “pumped” bottled breast milk to her while she was in the hospital. I have health issues and must travel to U.C.S.F. Medical Center in San Francisco once a week. All my kids go to different schools because of their age differences. I also take care of my mother who is ill and without transportation. I take her to all her doctor’s appointments. I would be so grateful if someone can help me to get a good car or van. I will give back in any way I can.
I would be willing to work for free at your shop, cleaning up, etc. I hope you can help us.” In January, out of a huge stack of letters read by several people, Weatherly was chosen to receive a used Town and Country, as well as a paid job at a G&C location.
Govinda Crozat (left) and her husband CEO Shawn Crozat have taken Gene’s charitable efforts to a whole new level
Brad Snell, another vehicle recipient, is a student at Santa Rosa Junior College studying to work in the human services/advocacy industry.
Last year, he finally gained custody of his 15 year-old daughter Destiny and in January after complaining that she couldn’t see they discovered that she needed emergency brain surgery. The surgery was a success, but there is still a mass on her brain that requires regular tests performed in San Francisco, a 1.5 hour trek from Santa Rosa. When a friend wrote to a local radio station promoting the G&C Auto Body Car-A-Month Giveaway, Self was completely unaware of all the wonderful things that were about to happen to him and his daughter. When he got the word, Snell was shocked and actually on his way to San Francisco with his daughter for more tests, in a borrowed car. “I can’t believe that a man at a body shop could do something so amazing for us,” Snell said. “We were really struggling to get to San Francisco and Gene Crozat gave us more than just a car—he gave us the confidence to make all the appointments. Destiny is doing better now, but there is still work ahead. But, having reliable transportation has made it so much easier. Every time I get in this car with my daughter I say a little prayer to the people at G&C.”
Gene Crozat has built a large, successful business and now he wants to enjoy his grandchildren and perform charity work, as he slows down but never stops when it comes to giving back, he explained. “I tell my kids if they want to open new locations, go for it, but my goal is to help as many people as I can while I’m around. I worked hard for many years and now this is how I find happiness. In the end, you can’t take it with you.” Shawn Crozat learned the business from his father and he shares his passion for every aspect of the collision repair game and all of the opportunities for philanthropy that can come with it, he said. “My father has always taught us to pull for the underdog and for years he has been hiring ex-convicts and addicts to give them a real chance at earning a living for themselves and their families. Now that he has grandchildren and is slowing down a little bit, he notices the downtrodden nature of those in need more than ever, especially children and families with illnesses, single mothers, etc. He has become more and more generous every day and it’s amazing to watch.”
www.autobodynews.com | AUGUST 2013 AUTOBODY NEWS 37
On Creative Marketing with Thomas Franklin
Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at firstname.lastname@example.org. See Tom’s columns at www.autobodynews.com under Columnists > Franklin
Still Using a Quota System For Consumer Sales? I was surprised recently to learn of a tomer is out the door before he or she shop that still uses sales quotas. As a is on the phone to the customer’s inprofessional in marketing and sales, I surance company to get an adjuster am very familiar with quotas, and the out to look at the car. If the company pros and cons of the practice. It’s says five days, he or she immediately likely that the various sales reps that contacts the customer to call and push call on collision repair shops, selling his or her insurance company to get everything from computer systems, out to see the car in three days or less. estimating software and spray booths The rep also pushes for a quick tearwithareDick Strom to frame machines, expected to down to expedite the parts orders and meet sales quotas. It’s also likely that avoid supplements. at the end of the month when a rep is If the end of the month is coming still way under his or her quota that quickly and some of that rep’s vehisome drastic measures will be taken to cles have still not been completed and force yet one or two more sales. That’s closed out, the rush is on to find out just the nature of using a sales quota why not. Delayed delivery of parts is system. a hard problem to overcome, but supBut I had to ask what a collision plements are a different story. I was shop sales person could do to close surprised to learn that a shop owner more business for the shop at the end willing to work with this kind of quota of the month? Earlier in the month he pressure would permit a rep to go the or she could have gottenLee on the phone customer with Amaradio Jr. to approve a supplement if and called prior customers, or placed the insurance company is holding more follow-up calls to prospects who back on it. When the job is completed brought in their vehicle and didn’t if the insurance company hasn’t paid leave it to be repaired. Or when the for the supplement, the customer will shop has dealership connections, the get the bill. Now the aggressive rep sales rep could push hard on the dealhas to convince the customer that he ership service drive for collision work. or she will be able to collect back from But at the end of the month, the story the insurance company eventually. would only be told with closed tickSo here we arrive at why few ets. What could he or she do to push shops allow this kind of last minute that up to meet a quota? quota pushing. A customer who is I talked to with one repSheila who saidLoftus the pushed to authorize supplements and game begins when a customer brings collect back from his or her insurance in a car to be repaired. The aggressive company may not choose to use this rep on quota barely waits until the cusshop again. It was obvious this shop
ASA Meets with Administration Re MFN Clauses
Automotive Service Association Michigan regarding the use of MFN (ASA) leaders recently gathered in clauses. In 2012, the commissioner of Washington, D.C., to meet with ad- the Office of Financial and Insurance ministration and Capitol Hill officials Regulation of Michigan issued an to discuss Most Favored Nation order, which prohibited the use and clauses contained in some direct re- enforcement of any MFN clause in a pair program (DRP) agreements with health insurer provider contract that insurance companies. ASA wrote ad- has not been previously reviewed and approved by the commissioner. The ministration officials 2012 asking with in Janet Chaney that they also consider the impact of Michigan legislature followed with a MFN clauses on parties involved in ban on MFN clauses in health insurer property and casualty insurance. Tes- contracts. The North Carolina legislature timony by administration officials on Capitol Hill to date have reflected approved House Bill 247, a bill that more interest in health insurance restricts MFN use by allowing health agreements. ASA maintains that the providers and health insurers to freely anti-competitive nature of the clauses negotiate reimbursement rates by proputs both consumers and collision hibiting contract provisions that reshops at a disadvantage. In 2010, the strict rate negotiations. The bill has U.S. Department of Justice filed a suit been signed into law and will become against Blue Cross Blue Shield of effective Oct. 1, 2013.
Industry Overview with Janet Chaney
38 AUGUST 2013 AUTOBODY NEWS | www.autobodynews.com
owner put the highest value on quotas and profits, while another might do everything possible to not irritate a customer. I could see that this shop is highly profitable and capable of bringing in plenty of jobs without worrying about retaining every customer in the long run. I could also see why many shop owners would shy away from using quotas, but might there be a way to do it without irritating and possibly losing customers? A long history of successful companies using sales quotas says they serve an important purpose. Sales reps are strongly motivated by sales contests, sales bonuses, commissions and more. Even the mention of quotas when hiring a rep will tell an owner whether or not this person can work with that kind of pressure. Many cannot and it’s best to determine this as soon as possible. The pressure of having to meet a quota will probably drive a laid-back employee crazy but
an aggressive sales type will thrive on it and draw on a depth of ingenuity to bring in or close business that otherwise could have slipped away. After this conversation about quotas, I asked a few other shop people whether or not they used quotas in their shops. No one else I spoke to used them, but there was often a greater emphasis on targets and team closing. It seemed to me that individual quotas could be difficult to manage in most collision shops, but given the new emphasis on lean processes and team production, I think there is definitely a place for some sort of target or quota system. At first glance this might not seem applicable to a small, independent shop but perhaps that’s where it may be needed most to “light a fire” under sometimes complacent estimators and owners who now have to compete in a much more ruthless collision repair marketplace.
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Social Media for Shops with Ed Attanasio
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at email@example.com.
Pinterest, Instagram and Tumblr—Three ‘New’ Forms of Shop Media Social networks such as Pinterest, Instagram and Tumblr are rapidly gaining momentum as content distribution tools and becoming more and more attractive for B2B purposes, including within the collision industry. When new forms of social media get hot, others fall off and disappear—so how do we know which ones are gaining while others are failing? While many body shops use one or more of the aforementioned sites, smart operators can gain an advantage over other body shops that don’t know about them or care. Pinterest Let’s examine Pinterest first, because it seems to be the best known one on this list. Pinterest is a virtual scrapbook that enables businesses, organizations and individuals to organize and share images. Users can pull videos, photos, drawings, paintings, etc., anywhere from the Web on Pin-
terest and other members can re-pin the images elsewhere within Pinterest. Users can organize their Pinterest pages by categorizing content on their own boards.
The obvious goal is to generate new leads and referrals to your shop by using Pinterest. More than 20% of the people who use Facebook use Pinterest daily. Women use it more (72%) and are joining it more than men (2-to-1) which is ideal for the collision industry, because more women take their cars in for repairs than men do. Pinterest has a dedicated iPhone app that gets approxi-
40 AUGUST 2013 AUTOBODY NEWS | www.autobodynews.com
mately 250,000 downloads every day. And most Pinterest users are between the ages of 25–54 and earning $60,000 annually, right smack in the middle of that highly-desired demographic sweet spot where they have money and can afford to pay their deductibles. Sure, Pinterest is used by a lot by artists, musicians, photographers and creative types, but more and more companies of all types are using it for SEO, marketing, public relations and advertising purposes. Roger Henson from Advertising Business Consultants in Willow Glen, CA is a Pinterest expert and uses it for a wide range of his clients, he explained. “When it comes to any of these emerging forms of social media, they offer a great opportunity, because in many ways, it’s virgin territory,” Henson said. “We’re always looking for the next thing, and that’s why we’ve recommended sites like Reddit, Stum-
bleUpon, Tumblr and Pinterest well before everyone started jumping on the bandwagon. It’s all about getting as many sets of eyes on your brand and message as you possibly can, and Pinterest works for us and our clients, including several body shops who are getting track able results from Pinterest.” Henson likes Pinterest because businesses can use it to attract traffic to their websites while sharing content, products, services and news, he said. “We’re constantly seeing great numbers and the site is growing in leaps and bounds (145% in the last 16 months). People spend more time on it then Facebook, for example, and we’re hitting a younger audience. In the collision repair business, it’s wise to engage these younger customers, because they are the future of your industry. Once you build that familiarity and establish some trust, the rest is easy.”
Tumblr Tumblr is a micro blogging platform and social networking website that allows users to post multimedia and other content to a short-form blog. Users can follow other users’ blogs, as well as make their blogs private. Most
of Tumblr’s features are accessible from the “dashboard” interface, where the option to post content and posts of other blogs that are of interest to the administrator can appear. Tumblr was recently purchased by Yahoo so expect to see some investment in the product. Larry Sawyer, a social media maven and the owner of Da Bomb Media in Surprise, AZ. His job is to be up on all of the latest social media sites and he believes that Tumblr will be gaining popularity with businesses for a wide range of reasons, he said. “Blogging is not going away and in fact, blogging is exploding and that’s why Google and WordPress are seeing huge spikes in mem-
bership,” Sawyer explained. “A body shop can share postings from other body shops, their vendors’ blogs and even local community blogs, to keep that level of interaction high. If you’re looking for another form of social media to use, I would suggest taking a close look at Tumblr. By adding it to your dashboard, you can be a part of Tumblr quickly and easily, especially if you already have a blog. By being involved in more social media sites, you’re building your SEO and get in front of more people on the Internet.” Instagram Instagram is an online photo-sharing, video-sharing and social networking service that enables its users to take pictures and videos and apply digital filters to them. At the same time users are sharing them on a variety of social
networking sites, such as Facebook (which owns Instagram), Twitter, Tumblr and Flickr. A distinctive feature of Instagram is that it confines
photos to a square shape, similar to Kodak Instamatic and Polaroid images, in contrast to the 16:9 aspect ratio now typically used by mobile device cameras. Instagram is distributed through the Apple App Store and Google Play, and it was considered valuable enough to Facebook to be worth its billion dollar purchase price. Jeremy Eaton is the marketing manager at Collision Repair Specialists in St. Joseph’s, MO. He’s always looking out for the newest social media to support his family’s burgeoning body shop and he uses all of Pinterest, Tumblr and Instagram because he knows they attract a younger customer that will drive for many years and probably get into at least a few accidents. “We’ve been using Instagram for two years now to share our community events and many of the awards we’ve won,” Eaton explained. “It’s all based on photographs and other images and that’s why it’s ideal for the younger demographic (18-15 yrs.). They’re less into text and more into photos, because they get a more immediate response and have more impact. Keeping your customer informed and engaged is always the key with any
type of social media and we’ve had some very favorable feedback about our Instagram involvement. Some of our younger clients request that we use Instagram to show them the progress of their car as it is being worked on in the shop.” By easily integrating Instagram into his other forms of social media, Eaton is able to connect everything together with just one click of the mouse. “We have Instagram on a dashboard with Facebook and Twitter, for example. It’s simple and doesn’t require a ton of time to manage it. People think it takes hours and hours to do these things, but if you do it right—you can get it done in minutes.” The mobile aspect of Instagram appeals to Eaton and his customers, he said. “Everything is going to be done on smart phones eventually. Lap tops and desk top computers and even tablets are going to eventually become less prevalent, because people want the convenience of doing their computing anywhere and at any time. So, the fact that Instagram is geared toward mobility makes it an ideal form of social media for any business, including body shops of course.”
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NOLA Shop Owner Implicated in Cover-Up of Hit and Run, Fourth Suspect Sought The owner of the New Orleans body shop at which police found the car allegedly involved in a fatal hit and run of an officer bonded out of jail the morning of July 11. Best of the Best Auto Shop owner Bill Cager, 33, was booked with obstruction of justice and accessory after the fact to manslaughter. His bond was set at $100,000. Officer Rodney Thomas was fatally struck by a Porsche Panamera, which was allegedly being driven by Justin McKey, 25. McKey was booked on manslaughter and felony hit and run charges, as police said that he was behind the wheel of the 2013 Porsche Panamera that hit Officer Thomas on the High Rise at around 1 o’clock the morning of July 7. Orleans Parish Sheriff’s records show McKey posted $50,000 bond at 7:39 p.m. July 9. A third suspect in the case, Kenneth Halley, 28, remained jailed as of July 11. Halley is accused of taking the damaged Porsche to Cager’s Best of the Best Automotive and Collision Center, at 2635 Gravier St. Bond was set at $100,000 for charges of accessory after the fact to manslaughter and obstruction of justice. But he was being held without bond for parole violation. New Orleans police are searching for a fourth suspect in the fatal hit-and-run of NOPD officer Rodney Thomas, according to NOPD spokesman Frank Robertson. Police released a grainy photograph of the suspect on July 10 (see photo at www.noladefender.com/content/n34ew-pers78on-interest-cops-hitand-run-death.) According to police,
Anyone with information on the whereabouts of this man is asked to call Crimestoppers at 504.822.1111 or toll-free at 1.800.903.7867 McKey turned himself in at 3:30 p.m. July 8, told police where to find
Kenneth Halley, were arrested. Hal- was sentenced to 30 days, a $350 fine ley has a previous felony conviction including court costs, and one year according to court records. inactive probation. According to court documents, Halley has a lengthy criminal Cager used towels to wipe blood off record, which includes multiple arthe car. NOPD technicians found rests, including charges for second blood stained rags in degree murder and heroin distribugarbage cans in and around tion. He was arrested multiple times the business the next day, as in 2008 alone, resulting in convicwell as hair on the car’s tions for distribution of heroin and windshield. cocaine and attempted possession of The vehicle had exten- a firearm by a felon. sive damage to the front end Halley was released on good beand passenger’s side, and havior in 2011, serving only two the windshield had a mas- years of a five-year sentence that sive indentation where glass would have been up in 2014. had shattered. Shop owner Cager was arrested According to court docu- in 2002 for unauthorized use of a Rosalyn Thomas, far right, the wife of New Orleans Police ments, Halley picked up a motor vehicle, illegal possession of a Department Officer Rodney Thomas, looks at a photo of friend and drove the Porsche stolen auto worth over $500, and alher husband, far left, on the hood of a NOPD car during a to the body shop within an tering or removing an auto VIN numvigil at 2nd District Police Station on Magazine Street in New Orleans on Thursday, July 11, 2013. (Photo by Chris hour of the crash. ber, all of which were refused. Cager Granger, Nola.com) Surveillance cameras inside also had a 2002 municipal court the Porsche, and admitted he was be- and outside the business showed the charge for disturbing the peace. hind the wheel when he hit Officer vehicle arriving at the business, and Thomas’ funeral services were Thomas on the Interstate 10 high rise the subsequent attempts to clean the held morning of July 12 at Franklin around 12:45 a.m. July 7, said court car, said prosecutors. Avenue Baptist Church. The cererecords. McKey has a January arrest in mony was conducted with full police Before the hit and run, Thomas which he pled no contest to criminal department honors, described by the was involved in a minor traffic accident trespassing (domestic violence) and local media as a “sea of blue.” in a personal vehicle on the way home from his night shift in the second district, and began directing traffic while in his uniform and reflective vest. While Thomas was directing traffic, witnesses said the Porsche side-swiped Thomas’ truck before striking Thomas, carrying him on the hood of the vehicle before he fell to the ground. The Porsche then sped off. McKey told investigators he was driving the “car in and out and it was See these Hyundai dealers below for all your collision parts needs! dark and he didn’t see him.” McKey’s neighbors said he SO. CALIFORNIA and his mother have lived in Kearny Mesa Hyundai Drew Hyundai the neighborhood for years, SAN DIEGO SAN DIEGO and they have never before 800-469-9731 888-839-0777 seen a white Porsche on their 858-300-3331 Fax 619-668-7782 Direct street, raising questions Mon-Fri 7am - 6pm; Sat 8am - 5pm 619-460-4082 Fax about who owns the car. firstname.lastname@example.org email@example.com Court documents confirm, www.kearnymesahyundai.com www.drewhyundai.com Halley was previously cited New Orleans Police have arrested Justin McKey, left, for driving the Porsche erratKenneth Halley, center, and Bill Cager, right, in connection with the fatal hit-and-run accident that took the life of NO. CALIFORNIA ically near the MercedesNOPD Officer Rodney Thomas early the morning of July 7. Benz Superdome around 9 Lithia Hyundai (Orleans Parish Sheriff's Office) pm on July 6, hours before FRESNO the photo was taken from surveilthe fatal hit and run. 800-462-2231 lance video inside the Best of the Police have not yet said who 559-436-6041 Best of the Best Automotive and Col- owns the Porsche. 559-436-0743 Fax Mon-Fri 7am - 6pm; Sat 8am - 1pm lision Center, at 2635 Gravier St., and When the car was discovered at firstname.lastname@example.org was recorded the morning Thomas Cager’s shop, he and another man alwas killed. legedly involved in the cover up,
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Oregon Body Shops Grade Insurance Companies State Farm and two smaller Northwestbased auto insurers continue to be among the best at taking care of their customers after an accident. And some of the other larger, best-known insurers—including GEICO, Safeco and Farmers Insurance—are among the worst. That was the finding of the latest survey of businesses that interact with auto insurers on behalf of vehicle-owners every day: Oregon collision repair shops. “Just as medical providers see how health insurers take care of patients, collision repair shops interact with auto insurers on a daily basis, so we feel it’s worthwhile to ask how those insurers treat Oregon drivers after an accident,” said Barbara Crest, executive director for the Northwest Automotive Trades Association (NATA), which conducted the survey of Oregon shops. “We believe their views will be helpful to insurance companies and consumers.” More than 500 collision repair shops throughout the state received the survey, which asked them to grade the Top 20 auto insurers in the state in terms of how well each company’s
“policies, attitude and payment practices ensure quality repairs and customer service for Oregon motorists.” This is the seventh time the association has conducted such a survey since 2004. Crest pointed to a number of items of interest in the findings of the latest survey: ● Repairers have consistently given the same three companies a grade of B or better all seven times the survey has been conducted. State Farm has continued to hold on to the top spot, receiving an overall grade of B+ again this year. But a Northwest insurance company, Oregon Mutual, nudged up from a B last year to also receive a B+ in the latest survey. Mutual of Enumclaw once again ranked third with a B. State Farm is the largest auto insurer in Oregon: Mutual of Enumclaw and Oregon Mutual are ranked 12th and 13th, respectively. ● In addition to Oregon Mutual, six other insurers saw their grades improve from the 2012 survey. Travelers became the fourth-highest graded insurer by earning a B- (up from a C+ last year). Progressive, Ameriprise and Country Companies each moved up
half a grade to C+. ● Although the same four insurers were on the bottom of the rankings for the third straight year, the order amongst them changed because Allstate improved to a C (from a C-) and Geico brought its D+ in 2012 up to a C- this year. ● Progressive’s improvement is notable given that it had a D+ or worse (and the lowest or second-lowest ranking) in every survey between 2004 and 2009. Even last year it was ranked 16th on the list with a C, but this year moved to 8th with a C+. ● Although Allstate still only receives an average grade, that’s an improvement over the D or D+ it received in each survey between 2008 and 2011. ● Three insurers saw their grades drop. USAA, which ranked fourth last year, dropped behind Travelers and Kemper/Unitrin when it received a C+ rather than the B- it did last year. American Family and Liberty Mutual also dropped half a grade. ● Farmers and Safeco received a “F” from about one-in-four shops, the most failing grades received by any insurer. (By comparison, GEICO, the
third-lowest graded insurer, received about half as many Fs as Farmers.) State Farm received an “A” from well over half of shops. ● In most cases, the grades given a particular insurer from shops involved in that insurer’s direct repair program (DRP) were higher than those given by shops that are not part of that insurer’s program. This was particularly true with USAA and The Hartford; their DRP shops gave them grades of A- or better while non-DRP shops gave these same insurers grades of C or C+. But even American Family and Farmers Insurance direct repair shops gave those insurers only average grades of C. “Collision repairers say the insurers receiving the highest grades—which includes both larger and smaller insurance companies—do the best job of taking care of Oregon drivers after an accident,” Crest said. “We hope consumers will take these ratings into account when choosing an auto insurer, and that insurers that received lower grades will work to improve their performance.” More than 70 shops throughout Oregon responded to the survey.
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Northeast News 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 email@example.com.
Auto Body Association of Connecticut Supports Members’ Concerns and Fights Unfair Legislation Since 1968, the Auto Body Associa- ing and monitoring legislation, the tion of Connecticut (ABAC) has been ABAC endeavors to protect the best fighting for the collision repair indus- interests of consumers, its members with Chasidy Rae Sisk try. While their and the collision repair industry.” ABAC has many ongoing goals focus has changed many times over and projects in 2013. One of their prithe past 45 years, mary focuses is on education. They ABAC is still ded- strive to educate their members on inicated to preserv- dustry-related issues and training, as ing the integrity well as promoting education on and and independence protection of consumer rights. ABAC Tony Ferraiolo of repair specialists educates and trains their members on throughout their state. Because there are currently so many important issues facing the industry, Tony Ferraiolo, President of ABAC, took time to share the association’s goals and stances with Autobody News readers. Regarding their mission, Ferraiolo states, “ABAC continuously strives to proper repair procedures, including educate the motorists of Connecticut the latest information from OEMs. and to enhance the abilities and knowlAdditionally, they protect the driving edge of its members, through education, to provide safe and dependable public with consumer advocacy groups which provide the necessary repairs to the public. Through propos-
tools to allow the average driver to make informed decisions about their repair needs. Another important goal for ABAC is related to legislation. In addition to supporting class action lawsuits when necessary, the association monitors current legislation, serving as a watchdog to expose insurers for violating fair trade practices and to combat legislation attempts seeking to limit the independence of collision re-
pair facilities. Beyond education, ABAC’s current projects focus on ongoing legislative reforms by maintaining and improving communications with local, state and federal officials.
They are currently in the process of pushing two class-action lawsuits. When asked about the biggest challenges facing the industry today and possible ways to overcome these issues, Ferraiolo lists “the influence that insurance companies have in the auto body industry. Actions to overcome these influences include lawsuits (class action and individual), legislative reforms, and consumer education.” ABAC does not approve of the PARTS Act because “the OEMs should have the same protection that’s given to any other parts manufacturer. We defer to the OEMs because it’s the safest, best way to repair the vehicle. The research and development that is put into the OEM parts should not be undermined. The PARTS Act will hamper innovative new designs and cause costs to be amortized over a short period of time, driving costs up. Therefore, we reject the PARTS Act.”
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They also reject the Right to Repair. Ferraiolo notes, “We believe all information should be given out to everyone so as not to discriminate against any repairers. Information should be shared so that vehicles can be safely and properly repaired.” Ferraiolo also believes “PartsTrader is bad for our industry.” In their press release on PartsTrader from September 2012, ABAC notes, “the endeavor is a wolf in sheep’s clothing. It is bad for repairers, part manufacturers, and most importantly, consumers. The only two enterprises in place to profit- and profit handsomely- are State Farm Insurance and PartsTrader.” It is clear that PartsTrader does not benefit repairers or consumers as PartsTrader’s model shows insurers collecting more premiums only to find ways to pay less on
claims, which “is fundamentally corrupting both industries,” the press release continues. Even worse, ABAC predicts that it is only a matter of time before other insurers institute similar programs to the detriment of the collision repair industry. This is the reason that ABAC refers to PartsTrader as “an embodiment of what’s wrong with the auto body industry and a harbinger of what’s to come,” which is why they encourage their members (and collision repairers nationwide!) to become educated on the program and stand up for themselves. “In light of the longterm damage this program will likely cause our industry, we are respectfully encouraging those of you who have not yet weighed in on this debate, to carefully examine the pilot program and voice your opinions.”
ABAC was formed in 1968 when around seven independent organizations joined together to form one association: the Auto Body Association of Connecticut. At that point, ABAC was comprised of two officers from each individual organization who gathered for monthly meetings, but each organization continued to operate separately as well until around 15 years ago when all of those individual organizations joined together to strengthen ABAC. According to Ferraiolo, “because individual groups consolidated and became one, the organization runs more efficiently. The locals were able to concentrate on committees and, therefore, accomplish more for the association. There is strength in numbers.” While keeping their busy repair members engaged in the forefront of
FIX Auto Relocates Headquarters to San Diego Fix Auto recently announced the consolidation of their Orange County and San Diego administrative offices into a new San Diego-based headquarters. The move is a response to Fix Auto’s recent growth, as the new state-of-theart facility will allow Fix Auto to best
serve their growing membership through improved organizational efficiencies. “This development is significant in a number of ways,” said Fix Auto President and COO, Paul Gange. “While a major driving force behind
the decision is securing a modern facility to accommodate our rapidly expanding staff of professionals, relocating the majority of our corporate staff under one roof will improve communications, create cross-departmental synergies and foster innova-
the industry, by participating in the latest developments, is always a challenge, ABAC rises to the occasion repeatedly. Other benefits of membership include group discounts, educational meetings and quarter meetings which allow members to stay up-todate on the latest trends to maintain national awareness. Though ABAC has over 400 members, including honorary members, shops and vendors, they still strive “to grow and strengthen our membership to create a stronger association.” Auto Body Association of Connecticut (ABAC) 104 Cheshire Rd Prospect, CT 06712 203-767-5731 www.abaconn.com firstname.lastname@example.org
tion on an unprecedented scale.” Fix Auto’s new street and mailing address is 11555 Sorrento Valley Road, Suite 201, San Diego, CA 92121. Their new corporate phone number is (858) 433-3963. Toll free numbers are unchanged.
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Rodney Pierini Interview
Continued from Cover
promote and protect the industry, particularly, in the government affairs arena. Through legislative and regulatory alerts we keep our membership apprised of what is happening in government that will impact their business. Many of our members supply the collision industry with parts and products required to service customers in a qualitative and timely fashion, as well. ABN: Why do you think business professional groups like the CAWA help the industries they serve and maybe cite some specific examples?
RP: As an automotive aftermarket trade association, CAWA was founded by members of the aftermarket industry to collectively speak as one voice, to promote training for themselves and their employees and to come together to improve their purchasing power in business service programs and products, e.g., business insurances. ABN: You’ve been the President/CEO of the CAWA for many years and have
seen the automotive parts industry change. What are the most significant changes your members have encountered? RP: Consolidation and a more intense and sophisticated competitive business environment.
ABN: There’s an on-going push and shove when it comes to the aftermarket/recycled/re-manufactured parts industry vs. the manufacturer’s OE parts industry. Talk about how the aftermarket parts sector has become more efficient and responsive to changes within the market and how the quality is equal with OE parts, in many instances. RP: In many cases, the major OE supplier is also manufacturing replacement parts in the aftermarket. These parts are as good as, if not better than the part that rolls off the assembly line (because of the improvement in manufacturing post assembly). Also, the remanufacturing segment is at the forefront of reduced emissions and a greener industry footprint in the automotive sector of today’s economy. In the government affairs process we
continuously stress the quality of aftermarket replacement parts and their contribution to the overall economy and public good, i.e., the aftermarket gives the consumer the choice of where to purchase their parts and where to have their vehicles serviced.
ABN: If you wanted to give any feedback or advice to body shops or the manufacturers of aftermarket collision parts, what would you tell them? RP: Look to the CAWA membership who offers quality collision parts and products. Also, see the hard parts manufacturers, manufacturer representatives, distributors and retailers as an ally in promoting and protecting the collision segment of the industry. This notion strengthens all segments of the industry.
ABN: What changes do you think will occur in the auto repair industry overall within the next 10-20 years that will impact the aftermarket parts industry? RP: Parts generally are manufactured and re-manufactured to high quality standards today and will continue to
improve as the industry adapts and changes to new technologies and the vehicles of the future. As technology becomes more sophisticated, we’ll see more repair specialization that will require the parts industry to remain nimble and responsive to this emerging trend. New vehicle technology will also add to the ever-changing future and the parts industry will adapt and , as always, find ways to respond to the yet unforeseen future of the automobile. ABN: New legislative bills emerge all the time, and if passed, they can greatly affect your membership. Tell us how you play a role in staying on top of these proposed bills/laws and how you stay vigilant on these developments as they arise?
RP: Perhaps the greatest service we provide to the aftermarket industry is our legislative work. If CAWA were not in California, Nevada and Arizona, the industry would feel the void in uncontested intrusion through legislation and the regulatory powers of all levels of government. If the aftermarket voice is not heard in these state capitols, business owners would find
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themselves helpless to the governments’ presence in the conduct of daily business. CAWA monitors legislation, regulation and other government programs to assure our members and the industry are not ill served by these processes and the insatiable financial appetite of political operatives. And we promote legislation that supports our members and makes doing business more palatable in the face of government politicians and bureaucrats throughout the western states.
ABN: How have aftermarket/warehouse parts businesses figured out how to survive the collapse of 2008 and has it become a more competitive market as a result?
RP: There is no doubt that the market is more highly competitive today and has been so for several years. That’s one reason we still see parts warehouses and jobber stores going out of business. Those that are purchasing right, managing right, constantly monitoring revenues and expenditures and going to market in an efficient manner will continue to be successful. Those not up to the challenges of todays and
tomorrow’s competitive environment will not be around in 5-10 years. Those that have survived have also created alliances with other aftermarket business to strengthen their buying power and position in the market place. There are many very competent and entrepreneurial owners and managers in this industry that adapt well and quickly to survive and stay competitive. ABN: You’ve been working closely with other organizations and sponsored a joint series of meetings between the CAWA and ASCCA earlier this year. What is the purpose for this partnership and how has this alliance worked? RP: As you know, ASCCA represents the mechanical repair garage owners in California. We have enjoyed a very rich and long termed relationship with them. We meet regularly with our lobbyists to assure we are speaking with one voice at the Capitol and, if not, we understand why and respect each other’s positions on issues. Parenthetically, being on opposite sides of an issue is very rare and virtually non-existent.
ABN: In the collision industry, there has been a trend where MSOs (Multiple Shop Operators) are flourishing, while many small independent body shops are struggling to survive. It’s all about centralization and the convenience of dealing with one large entity rather than 10-15 smaller ones. Is this
also happening in your industry?
RP: Yes, unfortunately the smaller distributors are, for the most part, struggling to survive. Unless they are specialized, in a niche market or geographically situated with less competition, they are challenged to continue. It’s not unlike other industry evolutions, however. When I think of all the past and future family business that did not or will not survive it makes me sad. My father had his own family business and I remember the nights when mom and dad struggled to “make ends meet”. Somehow, though, his business survived and he retired at 70 with no regrets. Like my father’s business was to the aircraft industry, aftermarket family businesses are important to this industry and there will be those that do survive and continue the tradition embodied within this great industry!
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About four years ago, the boards of directors of both associations wanted to strengthen the relationship among the volunteer leaders of both groups. So, an Industry Summit was developed whereby the leaders and members of both associations would come together for a dialogue of contemporary issues affecting the industry and to better understand each segment of the industry. Since then it has developed into one of the premiere industry events in California. So much so, that more groups and associations want to co-sponsor the 2014 Industry Summit. The national Automotive Aftermarket Industry Association (AAIA), the California Automotive Business Coalition (CalABC), the California Automotive Teachers (CAT) will join with CAWA and ASCCA to sponsor next year’s Industry Summit.
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Santa Clara CAA Golf Tournament is 30th Annual Celebration by Ed Attanasio
Mark Twain called golf a “good walk wasted” and advised golfers that “It’s good sportsmanship to not pick up lost golf balls while they are still rolling.” Yes, the golf balls were definitely
Chris Leverkuhn representing Operation Comfort (left) receives a check for $10,000 from SC-CAA President Randy Greenblat at the chapter’s 30th annual golf tournament in San Jose, CA
rolling on June 19 when the Santa Clara Chapter of the California Autobody Association (SC-CAA) hosted its 30th Annual Golf Tournament at Cinnabar Hills Golf Club in San Jose, but most of them ended up in the bushes, water hazards and sand traps. 64 golfers enjoyed playing 18 PGA-level holes on a beautiful day in the South Bay, forgetting for a moment
about their car counts, DRPs and other business-related drama to spend time with their friends and associates. This year’s tournament was especially notable for two reasons—to celebrate its 30th year and to donate $10,000 to Operation Comfort, an organization that provides opportunities for wounded service members to participate in rehabilitative, adaptive sports and a program called Automotivation, in which they are trained how to work on cars. Operation Comfort also provides financial assistance and therapeutic trips to wounded members of the military and their families.
From left, Dave Pillado, Martin Auto Color, Don Dutra, Martin Auto Color, Brent Fryer from Martin Auto Color and Parnell Castilla were in it to win it at the SC-CAA’s annual golf tournament
SC-CAA’s President Randy Greenblat doesn’t play golf, but he always plays an integral part in the plan-
ning and promotion of his chapter’s tournament. “It’s always a lot of work doing this event, but with Tabias
From left, Gene Lopez from I-CAR, Tabias Padilla from Hertz, Mike Bonafante and Larry Rede finished well out of the running, but Lopez was the best golfer of the tournament, hitting greens consistently (he said :-)
Padilla from Hertz and Don Dutra from Martin Auto Color involved, it makes it easier,” Greenblat said. “Tabias did a great job again this year making it happen. There are so many details with the planning of a tournament, but he steps up every year and he definitely deserves the credit.” Platinum sponsors for this year’s tournament were BASF, Enterprise Rent a Car, Hertz and PPG. Gold sponsors were Annex Automotive, Martin Color Supply and LKQ. Silver sponsors were 3M, Bascom Trim, Califor-
nia Payroll, Carborundum, Lord Fusor and Last Call Marketing. Color Supply sponsored the closest to the pin prize; Toyota of Palo Alto sponsored the hole-in-one prize and Unique Towing sponsored the longest drive, which was won by Gene Lopez from I-CAR. SC-CAA Treasurer David Mello found out about Operation Comfort last year at SEMA in Las Vegas and was immediately attracted to the organization’s purpose and mission, he explained. “When I learned that the National Auto Body Council (NABC) had adopted Operation Comfort as their organization of choice for philanthropy, we thought why not?” Mello said. “We were looking for a charity to raise money for and we really like what they’re doing. Aligning ourselves with a great cause like this makes it all worthwhile. The golf tournament provides a fun way to unwind and get away from the shop, but in the end, it’s all about service and helping others.” For more information about Operation Comfort and its Automotivation Program, go to: www2.operationcomfort.org.
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‘Da Wagon’ Pulls Them In for Auto Body Hawaii on the Big Island by Ed Attanasio
Do you have a red Radio Flyer Wagon back when you were a kid? As an American toy classic, right alongside Legos, slinkies and silly putty, the
The entire crew at Auto Body Hawaii in Kona poses with “Da Wagon.”
Radio Flyer name makes people in this country wax nostalgic. And that is why Dale and Rissa Matsumoto, the owner’s of Auto Body Hawaii in Kona, HI, designed and built a one-ofa-kind version of this iconic toy that gets oohs and ahhs wherever it goes. They call it “Da Wagon,” and it always makes a huge impression, primarily at community events, fundraisers and other shop-sponsored activities. Why so much attention for a children’s wagon? Well, because the Matsumoto family does everything in a big way.
Auto Body Hawaii is the largest collision facility on the Big Island and their Radio Flyer Wagon also makes a big statement, because it’s 10 ft. long, six feet high and has 60-inch wheels! If you’re not familiar with the Flyer Radio Wagon, they were invented back in 1917 in Chicago Illinois by a company called the Liberty Coaster Company. Their signature red wagons have never wavered in popularity and even during the Great Depression, 1,500 were being produced daily. In 1999, the Radio Flyer was inducted into the Toy Hall of Fame in Rochester, NY. Today, the company is known as Radio Flyer and they still
Da Wagon” had some very interesting passengers during this year’s Kailua-Kona Fourth of July Parade
when I flashed on the idea of a huge make wagons, as well as scooters, bired wagon, figuring it would be a big cycles and tricycles. Back in November of 2011, the attention-getter.” crew at Auto Body Hawaii sat down at a meeting to brainstorm about innovative marketing ideas that could bring business and attention to the shop while allowing for further philanthropy. Auto Body Hawaii has always worked very hard at reaching out to the people of Kona and its surrounding Built completely from scratch, the building of “Da Wagon” got the entire crew at Auto Body Hawaii in on the conareas, because they see the struction and design value of helping others and playing a positive role in the island’s After deciding to build “Da business community, according to Wagon,” Dale Matsumoto and his crew Rissa Matsumoto. jumped quickly into production mode, It all began when Dale Matbecause they had a definite deadline for sumoto started making junior drag- completing the project, he explained. sters for local youth programs and “We wanted to have it ready for the aneventually it evolved into the realiza- nual Christmas parade they do here in town and so we didn’t have much time. tion of “Da Wagon.” “Our junior dragThe entire shop got involved and it was sters were a hit and we were winning awards for them,” Matsumoto said. an exciting period.” After three weeks of intense work, “And then we started seeing these little red wagons in local parades, with a “Da Wagon” came together nicely and dog or a child in the back and getting the local buzz started to build. “We pulled around by an adult. That’s were working on the wagon between
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fixing cars and running a busy shop,” Rissa Matsumoto said. “There were a lot of nights and weekends, but we pulled it off. It was a great team-building experience and when it was complete, you could feel the sense of accomplishment and the pride. It was a wonderful thing to see.” When Auto Body Hawaii unveiled “Da Wagon” for the first time at the 27th annual Kailua-Kona Christmas Parade two years ago, the Big Island greeted the big wagon in a big way. “People here couldn’t stop talk-
this community and we want to do what we can through our shop, our employees and this wagon, to help people and show we’re not going anywhere.” Since then, da shop has pulled out “Da Wagon” on several occasions, but most notably, it has appeared in two Christmas parades and a pair of Fourth of July parades. In addition, the Matsumotos will show it off whenever it can, especially for fundraising or charitable efforts. “Sure, it’s a marketing tool and there’s no doubt about it,” Rissa Matsumoto said. “But that’s not why we’re doing it. If people can see the wagon and think of us in a positive way, we’ve done our job. And if it entertains people, that’s even better.” –People have suggested that the “Da Bomb” needs to be modernized, with a motor, a fancy sound system “Da Wagon” is not motorized and needs to be pulled, just and expensive rims on its the way the Matsumotos want it huge wheels, but Dale Mating about it,” Dale Matsumoto said. sumoto likes it just the way it is. “And they haven’t stopped yet. We “Sure, we could do a lot of stuff to it, never imagined the incredible rebut I like the fact that’s it simple. It’s sponse. It conveys a message we really large, sure-but it’s basically stock and like and it’s basically hey—we work in that’s how we like it!”
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Body Shop Foreman in Las Vegas Charged with Shooting
A fight between co-workers at an auto body shop in Las Vegas resulted in both with gunshot wounds and one of them charged with attempted murder after an altercation on June 24. Las Vegas Metro police released an arrest report describing an incident that resulted in charges against 47-year-old Kevin Montalvo. Both the shop foreman and the employee sustained gunshot wounds as a result from their altercation. When police arrived at the S&M Body Shop in the 5100 block of Dean Martin Drive in Las Vegas, NV, they found shop foreman Kevin Montalvo holding an ammunition magazine for a semi-automatic pistol, but not the gun, according to his arrest report. Montalvo told police that he was attacked by two of his employees and shot one of the men in self defense. Shop employee Bryan Jackson had been shot four times. Both men fled the scene. While talking to officers, Montalvo complained of chest pain. When medical personnel discovered he had been shot in the chest, he was transported to University Medical Center trauma unit for emergency surgery. The third man involved, who had not been shot, drove Jackson to UMC, according to the arrest report. Police found the gun in Jackson’s car. Video footage at the
body shop showed Montalvo approached Jackson and Jackson reacted by beating him, according to police. The footage also showed Montalvo with a pistol and he appeared to be firing at Jackson before the two struggled for the gun. Both men were in stable condition after surgery. According to the witness in the report, Montalvo went to the business and confronted victim Bryan Jackson, who was on the job at the time. The witness said that Montalvo was at odds with Jackson about his work performance. Montalvo was arrested in absentia because of his injuries. He faces charges of attempted murder with a deadly weapon, battery with substantial bodily harm, and discharging firearm into occupied structure. Police said that surveillance video indicated the physical confrontation was intiated by Jackson. That was when, according to the witness, gunshots were fired. The witness told police he saw Montalvo with a gun aimed at Jackson, who was charging at the suspect. A struggle ensued, the witness described between Montalvo and Jackson. The witness told police he was able to seize the gun out of Montalvo’s hands, allowing both he and Jackson to flee to the hospital in the victim’s car, the report said.
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CIC in Boston
Continued from Page 6
As soon as attendees were given the opportunity to respond, the body was eager to learn what will happen to shops that do not meet these requirements since many shops do not meet these standards, to which Avery responded that the topic should be postponed until November, after the Standards Committee has the chance to see where and how the document fits into their work. Evans stressed that this document is mostly just updated with current technology from previous documents with improvements and enhancements as appropriate for what exists in the industry now. Schulenburg then repeated the title of the document, “Recommended Equipment and Capabilities for a Collision Repair Facility”, asking “to do what?” He said he does not believe that these requirements necessarily translate into being able to fix a car or to be considered a viable collision repair facility. Though he sees the benefits of many of the items on the list, including some of the systems, he does not agree that anyone other than
the shop owner should be able to decide what is needed. Schulenburg questioned if this document is indicative of requirements mandated by insurers to participate on their programs. The Definitions Committee again defended their document, pointing out that they are trying to define a baseline for a topic that contains many variables. Additionally, Jeff Hendler reminded attendees that the document is only a document; it does not have authority unless the government mandates its authority or insurers require these recommendations in order to participate in their DRPs. Hendler believes it is necessary to develop something “to distinguish between those that do and those that don’t, those who almost get there and those who actually do.” Michael Quinn, former CIC Chair now of uParts, Inc., then led the presentation by the Standards Committee which began in 2006 and is scheduled to close after they submit their research on the inspections and verifications aspects of repair standards at SEMA in November. The Standards Committee is in agreement with the various repair trade association and their position that OEM repair
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procedures are the default standard. The questions they seek to answer by November, as gathered from the CIC body at previous meetings include: Does this include OEM recommendations? Does it apply to body repairs and paint procedures? Is this OEM Part Replacement Procedures? What is procedures aren’t available? What resources are available? Van Alstyne then lead discussion on the lack of clarity on positions regarding OEM procedures. Though he believes OEM repair procedures should be the standard, they are not available from all manufacturers, leaving repairers to do their best to safely repair vehicles. I-CAR plans to work with OEMs to determine these standards and to institute best practice procedures in order to add to I-CAR’s curriculum. Van Alstyne noted that I-CAR’s Repairability and Technical Support Program has been approved by their Board and is proceeding with the intention of instituting an industry technical knowledge portal, repairability summits, an industry/OEM repairability linking pin and a technical industry segment advisory council. They also plan to expand their technical team through an increased load of courses, including new
classes. Van Alstyne said, “we are serious about this and believe we can add value for the benefit of the industry.” Tony Molla, Vice President of Communications for the National Institute of Automotive Service Excellence (ASE) presented their position statement. ASE recognizes OEM service procedures as the primary guide to repairs, but where no such procedures exist, ASE recommends using the National Automotive Service Task Force (NASTF) to collect and identify gaps in repair information; ASE is prepared to cooperate with any segment of the industry to provide individual technician certification credentials where appropriate. After a brief history of CIECA, which was founded in 1994, Executive Director Fred Iantorno noted “change is happening all the time.” The pace of this technology began in 2000, and the BMS standard, which was first published in 2004, has expanded into 19 versions to keep pace with the growth of information and technological requirements. Now, technology is moving into a new revolution of mobile and cloud technology. Iantorno believes that collaboration See CIC in Boston, Page 56
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CIC in Boston
Continued from Page 54
and representation are the keys to success with each industry segment being represented in the Board and on committees. Still, he reminded attendees, standard development isn’t a “once and done” environment; the industry is constantly changing, so standards work never ends unless the industry is dying. Michael Condon, Principal of Condon Consulting LLC, presented the Repair Standards Entity Research Executive Summary, explaining that research was conducted via 42 anonymous interviews with industry professionals, broken down into 43% repairers, 17% associations, 14% insurers, 7% OEM, 12% suppliers and 7% research training certification programs. The questions explored the importance and expectations of success, scope of CIC’s rule, level of support by the industry, value of certifications and valuations, the standards “gap” and possible preferred business models, comparing the GAAP model, the licensing model and the institute model.
Results indicated that insurers and OEMs are less enamored by the initiative than other segments of the industry, and while CIC’s role is viewed as somewhat important, there were many dissenters. Most respondents agreed that there is a gap in the repair standards procedures which needs to be filled, but success is viewed as questionable because of its complexity, a lack of leadership and the absence of a compelling value proposition. The consensus reached by all segments of the industry appeared to be that insurers should not be involved in establishing repair standards. All of the proposed business models demonstrated strengths and weaknesses, indicating that a hybrid of the three proposed models should be considered. Based on the results, in order to move forward, CIC and their committees must develop industry consensus on the mission and the scope of the effort, plus develop compelling value propositions for select segments as required, and finally, they need to aggressively address the issue of independence for the technical bodies responsible for repair standards. Before the Standards Committee closes in November, their agenda is to explore possible solutions
and to determine what the American National Standards Institute (ANSI) does and how other industries have embarked on creating standards, according to Paul Krauss, CEO of Craftsmen Auto Body. Jeff Hendler announced that the next CIC meeting will be held at SEMA in Las Vegas and will begin with the Collision Industry Awards. The first day concluded with George Avery’s message that it’s time to visit some of the issues addressed so that the industry can take the next steps. On Wednesday the meeting resumed with Cheryl Boswell of the Collision Industry Foundation (CIF) explaining their mission to collect and distribute funds to shops in need, sharing how they donated $2000 to two different Staten Island shops after Hurricane Sandy. CIF has also raised over $25 million for disaster assistance following the deadly tornadoes in Oklahoma. The Foundation will hold their annual fundraising event on Thursday, January 16, 2014 at 6 pm at Lulu California Bistro during the spring CIC meeting in Palm Springs. The Parts and Materials Committee then gathered a panel to present on their Electronic Parts Procurement Sur-
vey. The panel was composed of Mike Kunkel of Team PRP, Michael Quinn of uParts Inc., Mary Lou Lubrano of Car-Part.com, Aaron Lofrano of Lofrano & Sons Collision Centers, and Karen Fierst of KerenOr Consulting. Asking that only repairers respond, they questioned the relevance of the seven categories of questions included in their survey of 30 questions. Their goal is to develop a document that repairers can use to compare the features of various parts procurement systems. Audience comments indicated that questions should be as specific as possible, but attempts to discuss free market competition were brushed aside for the moment as Avery suggested that the topic be resumed at the November meeting where it could be facilitated by a committee of past Chairs. Returning to the matter at hand, attendees presented questions about integration, profit margins and business models. The committee’s next steps will be to evaluate responses, then finalize and conduct the survey so that they can analyze their findings to be reported at SEMA. Next to take the stage was the Insurer-Repairer Relations Committee See CIC in Boston, Page 60
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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 firstname.lastname@example.org.
Executive Director Jillian Zywien Contributes Expertise in Public Relations to AASP/MA with Chasidy Rae Sisk
Recently, the Massachusetts chapters implement electronic and social media of the Alliance of Automotive Service contacts. The members will find this Providers (AASP/MA) Jillian with named Chasidy Rae provides Sisk a growing stream of industry Zywien to the position of Executive related information at their fingertips.” In recent months, a large part of Director. Zywien is honored to be chosen to represent the association’s best AASP/MA’s attention has been fointerests, and she looks forward to im- cused on education. Having instituted a variety of training options during her plementing new programs to benefit their members. Despite the time de- career, both industry-specific and general business topics, Zywien notes that mands of her new duties, she was eager to take time to share her plans “Education is a primary focus of the for the association. services professional associations proAs a senior account executive for vide… For example, we recently began providing Lynch Associates, Zywien’s experieducational opporence is primarily based in the Public tunities through Relations and Communications fields, webinars for ease and she believes that her work in assoof delivery to ciation management consulting across members. These a broad spectrum of industry organizaprograms provide tions will benefit AASP/MA as she members with the steps into her new role. Jillian Zywien opportunity to ac“During my tenure, I have applied my skills to broaden communications cess educational content at any time to members; to enhance marketing of that is convenient to them. We would love to hear what members think and events and benefits to members, and to
how we can better cater to their needs.” AASP/MA has also spent a considerable amount of time in filing complaints about insurance companies with the Auto Damage Appraiser Licensing Board (ABALB). Zywien believes these efforts are yielding fruit, and it’s important to attend these hearings on members’ behalf because “In order to continue to influence the regulatory process, we must build a robust and ongoing relationship with the Board of governance over this industry. Relationship building and strategic interaction are two of the goals we have for AASP members with the ADALB Board. Demonstrating that an issue is a frequent reoccurrence allows us to approach remedies from the broader viewpoint, as such, we will continue prior practices relative to the ADALB board.” One of AASP/MA’s largest projects in 2013 has been the re-filing of the Labor Rate Bill. Zywien is taking
an active role in this process; “Having just come into the position in the last few days, our first goal will be to meet with our legislative committee and formulate a long-term strategic plan that addresses all of the public policy objectives the association is confronting. Issues include the labor rate, insurance company practices with consumers, and matters brought before the ADALB. For the mechanical side of the industry, we will remain vigilant on the implementation of the recently enacted Right to Repair initiative. It is our goal to take an expansive view of both statutory and regulatory initiatives affecting the automotive service industry, and develop remedies that may occur in a variety of governmental bodies.” Additionally, Zywien feels it is imperative to educate consumers on their rights under the policy and with regard to repairs in particular. “One of our many goals is to ensure that the AASP/MA is a resource, not only for
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the industry, but also for our consumers. It would be our hope that providing this education would begin to overcome the misimpressions often left by insurance companies and empower consumers when it comes to their own vehicles.” Though it’s no surprise that many AASP/MA members are discouraged by the past failures in passing the Labor Rate Bill, Zywien remains optimistic. “A new broom sweeps clean. Each industry advocate comes to the table with different perspectives on how issues can be addressed. Our relationship with the association provides for an opportunity to rebrand and expand the arguments used on policy debates. We would ask that the members remain open to new strategies and informational delivery systems. Clearly the reason people join associations is to enhance their own business environment. We are keenly aware of that and will work to build the members’ confidence for new strategies. We will provide members with informational content they can use to advocate on their own behalf with elected officials and regulators. I would ask the members to give us a chance to change the dynamics and reinvigorate advocacy
efforts regarding their issues.” As Zywien strives to implement improvements throughout the association and the industry as a whole, she believes that now is the perfect time to join AASP/MA. By contributing many new, innovative ideas, she hopes to continue strengthening the foundation created by the current leadership of the association. Additionally, her involvement with Lynch Associates provide beneficial resources as the firm consists of many long-term professionals in the association consulting market, and they’ve already outlined several new programs to the Board, making it easier for members to access benefits, participate in programs, and receive timely communications. Zywien’s enthusiasm and energy makes her an idea choice for Executive Director of AASP/MA, and she’s diving right in to her new responsibilities. “This provides an exciting opportunity to grow AASP/MA and we are ready to roll up our sleeves and share the enthusiasm we have for the organization. Look for new branding, look for new benefits, look for new educational opportunities, and please provide feedback. We serve the members, and we want to do it with excellence.”
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Collision Industry Makes Gains at SEMA Show With warm summer months still ahead of us, collision repairers have already been hot to book their fall travel plans to attend the 2013 SEMA Show in Las Vegas, Nevada. Since 2010, the Society of Collision Repair Specialists (SCRS) has provided the acclaimed Repairer Driven Education (RDE) series during the Show, attracting record breaking attendance numbers with each year. As of July 1st, SCRS reports an attendee registration increase of over 250% (YTD), in comparison to the same time period last year. With more than four months remaining until the Show opens on Tuesday, November 5th, the pace at which the program is gaining registrations is a tremendous indicator that the 2013 SEMA Show will be the destination for professionals in the collision repair industry. “We are extremely proud of the series we have developed this year, and still have some additional programming we are working on to even further amplify the experience this fall,” shared SCRS Chairman Ron Reichen. “Attendee reaction to our events is always the best indicator of whether or not we are delivering what the industry is looking for in our series. Based on the feedback we have re-
ceived so far, and the extremely compelling numbers, we are confident that the varied content is going to provide very tangible value to all involved.” The RDE series isn’t the only area of the Show where the collision industry is demonstrating early spikes in activity. Show management numbers through the end of June indicated an increase in collision industry exhibitor counts, square footage occupied by exhibiting collision industry companies and both overall and collision-focused attendee registration. While the primary activities for the collision repair industry take place in the Collision Repair & Refinish section of the show in the North Hall of the Las Vegas Convention Center, industry meetings, forums and newly expanded show floor space also extend into the Las Vegas Hotel & Casino (LVH). In addition, many collision industry companies take advantage of space that is available in virtually every area of the show. Areas such as Tools & Equipment (North Hall), Restyling & Car Care Accessories (North Hall), Racing & Performance (Central Hall), Hot Rod Alley (Central Hall) and at the First Time & Featured Exhibitors (LVH) all feature companies that have a strong collision repair focus.
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CIC in Boston
Continued from Page 56
which consisted of Ti Adelmann of ABRA, Doug Irish of VeriFacts, Ron Vincenzi of Oakland Auto Body, Aaron Schulenburg of SCRS, Jeff Peevy of I-CAR, Randy Hanson of Allstate Insurance, and Mark Allen from Audi. Since their focus is on training as it relates to insurer-repairer relations, they asked the audience “who has taken a training program in the past 12 months of their own volition?”—64% of attendees responded in the affirmative with 45% of them saying they did so because it improves their ability to ensure a safe repair. Peevy discussed the current collision training landscape, noting that 69% of facilities have no consistent tech training. He believes “the work of the future is going to be different because technology is changing at such a rapid rate.” This is why training is so important; consistent training has been proven to improve cycle time, touch time and CSI scores across the board. Furthermore, CynCast Ratings indicated that I-CAR Gold Class shops
outscored other shops by 32%, suggesting that the accomplishment of receiving the Gold Class certification is a predictive indicator of success. Peevy believes that the shops that will survive the changes coming in the industry are those with proper equipment, consistent training, access to OEM information and continuous operational improvements which comply with regulations. When Vincenzi was asked why he was one of the shops to become
training is a good thing, but in reference to relationships between insurers and repairers, he noted that much friction arises from pricing models because many shops that invest heavily in training are paid the same as those that do not, yet it’s imperative the investments yield returns in order to run a successful business. Though Irish does not foresee a pricing schedule based on training, mainly because insurers don’t want to
with shops that are properly trained and equipped, recommending that adequate training should weigh more heavily in how a shop is rated than other factors, such as cycle time. CIECA’s Fred Iantorno then led the Education Committee’s presentation on “The Value that You Can’t See in BMS,” explaining that the BMS is a collection of 146 data exchange formats which support an equal number of business functions, allowing com-
Gold Class certified, he noted that he wanted to do the right thing to ensure he was correctly repairing vehicles for his customers’ safety. “It wasn’t a business decision; it was a moral decision. I’ve found that if you make a moral decision, it ends up being a good business decision.” Hanson agreed that education and training provide an effective way to address many of the industry’s concerns. Schulenburg also agrees that
be responsible for addressing whether repairs are done properly and efficiently, training offers many other value benefits and affects recruiting, retention and morale. Schulenburg’s rebuttal emphasized the inequality of stating insurers cannot be expected to change while simultaneously insisting repairers change, suggesting there’s a need to “discuss how to incentivize repairers for training.” Vincenzi suggested that insurers should make sure to do business
panies to transmit only necessary data without compromising confidentiality. CIECA developed the BMS for use by all facets of the collision repair industry to facilitate the increasing data flow caused by progresses in technology. The BMS also serves another important business function: providing responses to the messages received. The next step will involve taking this data content and implementing it for mobile and cloud computing as
“69% of [shops] have no consistent tech training... Consistent training has been proven to improve cycle time, touch time and CSI scores across the board... CynCast Ratings indicate that I-CAR Gold Class shops outscored other shops by 32%” —Jeff Peevy
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every segment of the industry. Toby Chess then lead a Technical Presentation entitled “Everything You Wanted to Know about Glass and More.” reminding attendees that the main functions of windshields in modern vehicles is the vehicle structure, to be part of the frontal air-bag system, and to restrain passengers in the vehicle. He continued to discuss the types of vehicle glass, indicating that the labels, or “bugs,” on the glass indicate the type of glass used; only A1 glass should be used for windshields as it is
laminated and provides at least 70% light transmission, making it the clearest automotive glass used. Chess reviewed the differences between laminated and tempered glass and suggested that since modern vehicles are designed with the windshield bug being a key structural component, it is imperative that it be constructed and repaired accordingly for consumer safety. He discussed the differences between OE and aftermarket glass, noting that AFM glass cannot duplicate OE glass; it must possess a
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