Hammer & Dolly March 2024

New angles to explore.

WMABA FEATURE

8 SHARE YOUR STORIES BY TAKING WMABA’S 2024 INSURER SURVEY

Weigh in on the best and worst.

WMABA MEMBER PROFILE by Alana Quartuccio

12 FORMER WMABA LEADERS PARTNER AS COLLISION SAFETY CONSULTANTS

Helping with Diminished Value and the Appraisal Clause.

SOUTHEAST COLLISION CONFERENCE UPDATE

14 SOUTHEAST COLLISION CONFERENCE

SAVE THE DATE & CLASS SCHEDULE

NATIONAL FEATURE by Chasidy Rae Sisk

16 SCRS CONTINUES DOI DIALOGUE ABOUT CONSUMER COMPLAINTS

Top five auto insurance complaints from CA DOI.

INDUSTRY ADVICE: ASK MIKE

32 HOW CAN SHOPS TALK TO CUSTOMERS ABOUT DATA SHARING?

The benefit of being with collision repair peers.

IMMEDIATE PAST PRESIDENT’S Steven Krieps (304) 755-1146 skrieps@live.com

MESSAGE

As I prepare to bid farewell to my role as WMABA President, I am filled with a profound sense of gratitude and humility. It has been an extraordinary privilege to serve on this Board alongside such esteemed individuals and to contribute to the advancement of our shared mission. Reflecting on my time, I am overwhelmed by the depth of our collective accomplishments and guiding minds. The passion, professionalism and resilience that WMABA and its members display inspired me every step of the way. I am immensely proud of all that we have achieved together, but I know there is much work to be done. I also want to express my heartfelt appreciation to our dedicated staff, whose tireless efforts and unwavering dedication have been the driving force behind our accomplishments. Remember: not all heroes wear capes.

Together, we have navigated through both triumphs and challenges, always guided by our unwavering commitment to excellence and integrity. From expanding our pursuit for education of both consumers and colleagues to teaming up with the Carolinas Collision Association (CCA) in the expansion of the Southeast Collision Conference to spearheading innovative initiatives as our industry transforms and expands, our accomplishments have been nothing short of remarkable.

WMABA OFFICERS

PRESIDENT Kris Burton kris@rosslynautobody.com - 703-820-1800

VICE PRESIDENT Phil Rice phil@ricewoods.com - 540-846-6617

TREASURER John Shoemaker john.a.shoemaker@basf.com - 248-763-4375

SECRETARY Barry Dorn bdorn@dornsbodyandpaint.com - 804-746-3928

IMMEDIATE PAST PRESIDENT Steven Krieps steve@gregclineauto.com 304-755-1146

Rodney

Tom

Torchy

ADMINISTRATION

EXECUTIVE DIRECTOR

Jordan Hendler (jordanhendler@wmaba.com) 804-789-9649

WMABA CORPORATE OFFICE

Tracy

510-915-2283

We still have a lot of work to do when it comes to advancements in materials and repair techniques, the integration of cutting-edge technologies like AI and augmented reality, EV technology and even more ADAS systems. As professionals in the automotive industry, we must understand and remember that adhering to established repair protocols is not just a matter of best practice, but a fundamental aspect of ensuring quality, safety and customer satisfaction. Adhering to repair procedures is essential for maintaining the safety of both technicians and vehicle occupants. Now more than ever, even seemingly simple repair tasks involve working with complex systems and potentially hazardous materials. Deviating from established procedures can increase the risk of accidents, injuries and even fatalities.

I expect and look forward to seeing each and every one of you at the Southeast Collision Conference in NC at the Greensboro Coliseum in May. Alongside CCA, we will continue our collective pursuit of innovation and sharing of the minds. Collision P.R.E.P. will facilitate educational opportunities, as well as provide an amazing experience. And the main floor will be full of vendors showcasing new repair technology and equipment to improve and expand operations. Don’t miss it! H&D

HAMMER

& DOLLY STAFF

PUBLISHER Thomas Greco thomas@grecopublishing.com

SALES DIRECTOR Alicia Figurelli alicia@grecopublishing.com

EDITORIAL/CREATIVE Alana Quartuccio

COORDINATOR alana@grecopublishing.com

MANAGING EDITOR Chasidy Rae Sisk chasidy@grecopublishing.com

OFFICE MANAGER Donna Greco donna@grecopublishing.com

PRODUCTION Joe Greco COORDINATOR joe@grecopublishing.com

@grecopublishing

www.grecopublishing.com

PUBLISHED

EVERLASTING STUDENT

WMABA is in anticipation of an opportunity made for you. All that we do in preparation of the Collision P.R.E.P (Professional Repairer Education Program) series coming May 16-18 at the Southeast Collision Conference in Greensboro – see page 14 – is prepared so that our industry can have opportunities to increase their awareness and professionalism. In these modern times we never imagined, the community we have is as important as ever!

Every conference and meeting I attend is a testament to how gravely important it is for shops to be engaged – from management to technician to detailer – in the gathering of technological and structural advancements taking place in today’s vehicles and today’s business climate. When I say structural, I mean the vehicle and how you’ve structured your business model. Repairers who are adapting and changing are making headway, and it’s important that the entire industry do the same.

We are a skilled profession, not a trade. I don’t take credit for that realization; it goes to someone who’s a longtime owner who has always strived to repair vehicles by the OE procedure every time. But it’s true, and we don’t - as a community - stand in a place of authority.

Much happens without you knowing, if you don’t leave your four walls. I give the analogy that it’s like our industry is suffering from perpetual “Covid shut-in syndrome”. What does that mean? It means, you’re not getting out; many are only getting the education that comes to their doorstep or online. Trust me, ladies and gents: In so many ways, it’s not the same. When you come to education events in person, you get a greater sense of purpose, of industry, of community and of knowledge. And it’s vital to every aspect of your day-to-day; no matter your position.

If you make one investment in your business this year, let it be the Southeast Collision Conference.

There’s too much at stake, both for you and your customers, to stick to the daily grind and not engage. I promise you will gain insight as to your own future and ways in which you can get to it, and people who will rally around and with you to see it happen.

The Conference isn’t just a conference, it’s our associations’ best weapon against the onslaught you face and we want to raise you into a leader who knows how to bring resources into power and light. H&D

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FEATURE SHARE YOUR STORIES BY TAKING WMABA’S 2024 INSURER SURVEY

Every collision repair professional can tell a tale (or a thousand) about their challenging interactions with insurance carriers, but dealing with some insurers may seem like a fairy tale compared to the horror stories that result from encounters with other carriers.

Born from a desire to know how claims are handled in the MidAtlantic region, WMABA has opened its third biennial “Shops Rate Insurers” survey as part of its ongoing efforts to create and provide consumer-driven resources, tools and information to help the collision repair industry at-large.

Conducted online, the survey allows repairers to anonymously rate insurance company behaviors in several categories, including shop relations/claims handling, customer experience, insurer knowledge base, overall fairness, insurer payment for proper procedures and transparency. Collision shops will rate each insurer on a scale of 1 to 5, with 1 being the lowest score and 5 being the highest.

Survey respondents also have the opportunity to share specific feedback regarding the largest insurers by market share to help identify trends and issues as they emerge and develop resources and solutions to support WMABA members and their customers.

WMABA launched its first Insurance Survey in December 2018, attracting high participation. Results from the previous survey supported many expected perspectives – both positive and negative – about certain carriers, but it also yielded some unexpected findings. Additional comments from survey respondents indicated beliefs that insurers are only concerned about profits and that they are tragically prone to disregarding OEM procedures. Not surprisingly, many repairers expressed frustrations with adjusters’ continuous insistence on the “we don’t pay for that” narrative.

The pandemic provided many new challenges for collision repairers, including insurer delays related to photo estimating and refusal to pay for disinfectant application, and WMABA expects some

of those challenges to be reflected in the responses collected this time around.

The information compiled provides a good resource for consumers seeking more knowledge about these carriers and their practices, and survey results are an effective tool for starting conversations with customers who can also use the information to help them in the policy-buying process. WMABA anticipates that the information collected on approximately two dozen carriers will also be beneficial when approaching consumer protection agencies regarding inappropriate insurer behaviors in the future.

By identifying the specific market tactics individual insurers use in their market, WMABA plans to use the information to demonstrate the repair industry’s perceptions about those practices to carriers and hopes to engage in meaningful dialogues that will hopefully improve shops’ relationships with local carriers.

Results of the 2024 survey will be published in a future edition of Hammer & Dolly, just as the results of the 2018-19 survey were published in the May 2019 issue (available at bit.ly/ins1819) and the results of the 2022 survey can be found in the May 2022 issue (available at grecopublishing.com/hammer-and-dolly-may-2022).

There’s no movement in still waters, so it’s time for collision repairers to rock the boat. Positive change will never occur unless repairers use their collective voices to stand up for their customers, their shops and the industry at-large. WMABA’s Insurance Survey offers a quick and easy way to share your thoughts and be part of positive progress.

Although the 2024 “Shops Rate Insurers” survey is a local undertaking, WMABA encourages participation from industry professionals outside the region as well. Share your opinions by taking the survey at wmaba.com/labor-rate-survey or scan the QR code below. H&D

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MEMBER PROFILE

FORMER WMABA LEADERS PARTNER AS COLLISION SAFETY CONSULTANTS

Three longtime collision repair professionals have partnered in a new business venture centered on doing the right thing by way of the consumer.

Former shop owners and past WMABA Board members Mark Boudreau, Pete Petursson and Timothy Pfeifle have combined their decades of experience into the launch of Collision Safety Consultants of MD, VA and DC – a vehicle to assist consumers, shops and insurance companies find common ground on Diminished Value and Appraisal Clause claims.

“As fellow shop owners, we’ve each had a lot of experience over the years, dealing with the frustrations of making sure that we were able to help get consumers what they deserved,” Boudreau explains. Each dealt with their share of under-indemnified consumers time and time again when they ran their shops.

“What we discovered, and what made this venture possible, is that it really just boiled down to doing the right thing. From the shop owners’ perspective, that meant fixing the car the way it needs to be fixed with the best methodologies that we have, which nowadays has become OEM procedures, and that requires tremendous training and the appropriate and proper equipment.”

From the vehicle owner’s perspective, most of them likely don’t realize that they are being under-indemnified, and that is where Collision Safety Consultants come in. They are there to help them figure out what they’re entitled to. Boudreau says the three of them recognized this need that is basically “outside the usual day to day purview of a collision repair facility and below the expertise of attorneys to make sure that consumers are made whole. And that’s where we fit in. We saw the opportunity. We’ve got tremendous expertise, so we decided to see what we can build.”

Only a few months into their new venture, the three have a 100-percent success rate in making their clients whole.

Whereas their primary client is the consumer, they set out to help all the parties involved, including the insurer, to “find common ground and a low-friction, common sense result to make sure everyone is made whole and that these claims can be closed,” according to the team.

Being former shop owners is really key in doing what they do to assist their clients. “I certainly enjoy this,” Pfeifle says of their partnership. “I’ve been a consumer advocate since I ran my shops. Trying to get them the correct settlement for their losses was always my ultimate goal. This venture gives us an opportunity to really shine with that, and we help shops as well, which is huge for us. It makes this job so much more enjoyable because we know we really are helping people.”

“When vehicles get damaged, there is a potential for significant diminished value, or accelerated depreciation as we call it,” observes Petursson. “Thanks to CARFAX and other tools, it is easy to determine if a vehicle has a prior wreck history. Given the culture of damaged goods, these repaired vehicles carry a stigma that a discounted price can help equalize. That newly discounted price is the ‘diminished value’ (DV) of that vehicle. It’s our job to quantify that and to settle that for the consumer.

“Appraisal Clause claims are the result of the policyholder disagreeing with the amount of the loss with their own insurance company,” he continues, clarifying the distinction between Appraisal Clause and DV. “While claimants may disagree with the carrier’s offer on a repair cost or total loss, they do not have a contract with that company (the policy), so therefore have no standing, short of hiring a lawyer. When

Pete Petursson

Tim Pfeifle

Mark Boudreau

claimants disagree with an insurance company, they would have to switch to their own carrier, make a claim and then invoke the Appraisal Clause if there was still disagreement.”

Vehicle owners being short-changed is surely not a new occurrence; however, in the 1990s and early 2000s, those amounts were in the few hundred dollar range. Nowadays, these shortages amount to thousands of dollars. “The delta has just grown exponentially,” shares Petursson. “In the past, consumers would shrug it off and pay the balance and grumble out the door. Now, they’re sticking the fork in the ground and saying no, they won’t pay $3,000 to $5,000 for something their insurer should cover.”

“Insurance companies will dissect the claim and fight the shop on every single item, but once the Appraisal Clause is invoked, the insurance company has to hire their third-party person to come in while the consumer hires us,” adds Pfeifle. “So the insurance company is pretty much out of it at that point, which helps us settle the claim with reasonable parties.”

“We’re not here to argue, and we’re not here to just beat each other into the ground, which so many times happens in the shop environment where it’s shop versus insurance, insurance versus shop, and it just turns into this personal vendetta. That’s not our role here,”

Petursson sums up. “We get paid a flat fee to resolve this claim. The majority of appraisers that we have come across tend to be more fair and reasonable and understand we’re here to resolve this. The faster that we can get through this, the faster the consumer can get back on track and the car can get back on track, if it’s a repairable situation, so the customer can get back to his life.” H&D

1 6 - 1 8 GREENSBORO NORTH CAROLINA

8:30am – 10:00am |

Future-proof Your Shop: Tomorrow’s Success Starts with Today Mike Anderson, Collision Advice

11:30am – 1:00pm | LUNCH & LEARN

Efficiency Unleashed: Rethinking Roles in Collision Repair

Michael Bradshaw of K&M Collision, Barry Dorn of Dorn's Body & Paint, and Kris Burton of Rosslyn Auto Body

2:00pm – 3:00pm | Option 1

The Critical Steps Involved to Achieve an OEM-Centric Calibration

Greg Peeters, CEO, Car ADAS Solutions

2:00pm – 3:00pm | Option 2

Building Value in Your Shop

Matt DiFrancesco, CExP™, Principal/Certified Exit Planner, High Lift Financial

4:30pm – 5:30pm | Option 1

Self Confidence: An advanced repair plan you can expand on

Danny Gredinberg, the DEG, and Kyle Motzkus, General Manager of Hunter Autobody and Missouri Autobody Association

4:30pm – 5:30pm | Option 2

Navigating the Challenges of Recruiting & Retaining Technicians

Jay Goninen, Co-Founder & President, WrenchWay

and even more happening on the tradeshow stage!

8:30am – 9:30am | Option 1

100% Disassembly

Mike Anderson

8:30am – 9:30am | Option 2

Do You Have Leaky Profit? Find Out Where

Profit Leaks from Your Collision Center and How to Fill the Holes! Taylor Moss, OEConnection

11:00am – 12:30pm | LUNCH & LEARN

Repairer to Repairer: RTA’s and PRI’s, The Process & the Shop’s Role Panelists: Adrian Mora, Collision Consumer Advocates, Billy Walkowiak, Collision Safety Consultants; Moderated by: Steve Krieps, WMABA Imm Past President / Collision Safety Consultants of WV

2:00pm – 3:30pm | Option 1

Nurturing the Goose That Laid the Golden Egg Bruce Schronce, StrongLead’s Executive Partner and Leadership & Business Consultant

2:00pm – 3:30pm | Option 2

Increased Profitability through Proper Documentation: How communication, documentation and collision shop positioning must change in 2024 and beyond

Keith Manich, AMAM - Director of Collision Services, Automotive Training Institute

FEATURE SCRS CONTINUES DOI DIALOGUE ABOUT CONSUMER COMPLAINTS

When a vehicle owner encounters challenges in the claims process, their collision repair facility often works with them to file complaints with their local department of insurance, but they often “become frustrated with that process because they’re expecting a different outcome than these departments are scoped with and that they intend to address through their processes,” suggested Aaron Schulenburg, executive director of the Society of Collision Repair Specialists’ (SCRS) during the organization’s recent Open Board Meeting in Palm Springs, CA.

In an effort to alleviate some of these frustrations, SCRS has made an effort to open the door to more communication between its members and these departments, beginning last April when the Virginia and North Carolina Commissioners of Insurance were invited to discuss their departments’ duties (read the recap at grecopublishing.com/hammer-anddolly-june-2023). The open dialogue was so well-received that SCRS embraced the opportunity to continue the discussion, Schulenburg explained as he introduced California Department of Insurance (DOI) Deputy Commissioner Tony Cignarale.

Sharing his background as an attorney who was raised in New York, Cignarale recalled spilling green paint all over himself in his father’s body shop. Most of his team,

which specifically handles the auto repair complaints, also has various levels of prior experience, either in a body shop or as an insurance appraiser. In the past year, his department received approximately 200,000 phone calls and 50,000 written complaints, of which 42 percent were auto complaints. According to Cignarale, 90 percent of those complaints came directly from consumers, while 10 percent were filed by auto repair facilities.

“There’s three parties and us: the consumer, the shop stuck in the middle and the insurer,” he said. “And it creates tension between trying to take care of the customer and get paid what you feel you’re owed and dealing with the insurance company trying to limit what they want to pay. And that does create some issue and tension for us with regard to some of the outcomes because we’re not a judge or jury that determines how many hours for an operation.

“But if a shop has a particular issue getting paid for performing certain operations that are OEM required procedures, it has been really helpful when shops actually send that [documentation] to us; however, we do have some issues with regard to recommended guidance because it’s not required,” Cignarale continued. “It’s just a suggestion, so it’s difficult for us to resolve those issues.”

Cignarale discussed the top five auto

insurance complaints that his department receives: estimating standard operation times, labor rates, towing and storage, steering and paint estimates.

When it comes to operation times, California implemented a regulation preventing insurers from deviating from the estimating software. “Whether it’s Mitchell, CCC or Audatex, if the program says eight hours, the insurance company can’t come back and say four,” Cignarale said, though he acknowledged, “There are exceptions where they have some support through particular facts of the case or pictures that may create a factual dispute that we might not be able to resolve, but 90 percent of the time, we’ll tell them, ‘You deviated from it and need to put it at least up to that level.’”

In the case of P-pages with input time, there’s some subjectivity that requires negotiation between the insurance company and the shop which makes it difficult for the DOI to get involved.

Unfortunately, no California law allows the DOI to regulate how insurers pay labor rates, though Cignarale’s team created a standardized labor rate survey to create a more level playing field. “Those standardized surveys seem to work very well when they’re used. Unfortunately, not every company uses it.”

He also acknowledged that there are differences in rates between shops within the same geographic area, referencing the need for different rates based on facility size and the type of vehicles they specialize in. Another issue he identified related to insurers using DRP rates in the surveys they conducted. “We were able to get rid of that [practice], so that was really helpful.”

When a recently passed law created confusion in regard to towing and storage charges, the California Bureau of Automotive Repair (BAR) provided useful guidance for interpreting that statute. “We were able to put a regulation and said any reasonable charges must be paid,” according to Cignarale. “We forced companies to remove those caps from those policies.”

Collision professionals gathered for the SCRS Open Board meeting.

Referring to steering as the “most difficult issue for us to deal with because it’s very subtle,” Cignarale noted that antisteering laws passed in recent years have reduced the number of steering complaints received, but he expressed doubt that steering has actually been eliminated. “I’m sure it didn’t solve the problems; I’m sure it is still an issue.”

Inflation over the past three to four years has increased issues related to refinish material costs. According to a California regulation and statute, “The insurance company can’t deviate from the method of refinishing costs used by the body shop,” Cignarale explained. “If I’m using an hourly rate for paint in my estimate, the insurance company cannot come back and say, ‘Well, we used a paint calculator and it’s less.’ It has to be apples to apples.”

Cignarale also discussed various other issues that his department encounters, including inspections, bill deductions, sublet repairs, policy variances and rate increases.

When asked about what happens when an insurer commits repeated violations, he noted that the department first receives a citation, which is recorded in the system, and the DOI reviews the number of violations within a given year to look at systemic issues and get them resolved and also for enforcement reasons. “If it’s a big enough issue, and it comes to us frequently enough, we’ll gather evidence and refer it over to our market conduct area, who will then go into doing a targeted exam that will focus on a particular issue,” he said.

Regarding other states’ DOI, Cignarale pointed out that most are not as large as California’s, so they do not have the same capacity that his department has or a staff dedicated to auto complaints. He recommended that any association interested in discussing issues with their DOI should request a meeting.

During the SCRS Open Board Meeting, the association’s committees provided updates on their current initiatives. SCRS Chair Amber Alley (Barsotti’s Body and Fender; San Rafael, CA) acknowledged a professional milestone, soliciting a round of applause in recognition of Schulenburg’s 15 year anniversary as executive director.

Schulenburg announced that SCRS has opened its call for content for SEMA 2024 and indicated that using the “opportunity to highlight voices that haven’t been in front of those audiences, finding new discussions to have that let somebody come home and be

influenced, is really important to us.”

The Education Committee’s Dominic Martino (Gold Coast Auto Body; Chicago, IL) presented the Kool Tools discovered at SEMA 2023, including a POD 2.0 Pressure On Demand Steamer, Kent Automotive 4PLASTIC Bumper Push Hand Tool, an Innovative X-Stand from Innovative Tools & Technologies Inc. and more products designed to make body work easier and more efficient.

California Department of Insurance (DOI) Deputy Commissioner Tony Cignarale addressed top auto insurance complaints at the recent SCRS Board meeting.

Tools aren’t just important for shops; schools educating the next generation of collision repairers also need access to up-todate tools and equipment. Continuing the program started in 2022 to award a level two glue pull repair system to one vo-tech school per quarter, based on nominations from SCRS affiliate organizations, Chris White (KECO Products) announced the most recent winner: Olathe Advanced Technical Center (Olathe, KS), nominated by the Kansas Auto Body Association.

Updates were provided on SCRS’s 401(k) and healthcare plans (a detailed look at these valuable member programs is available at grecopublishing.com/ hd0223natlfeature).

Erin Solis (Certified Collision Group) of the Media Development Committee announced that SCRS had recently released a video of Michael Bradshaw’s (K&M Collision; Hickory, NC) IDEAS Collide presentation on culture as well as a consumer tips video on protective films with Mike Anderson (Collision Advice) and Danny Gredinberg of the Database Enhancement Gateway (DEG). The next round of videos will begin production in March. Schulenburg encouraged industry professionals to

contact SCRS with any specific topics they’d like to see addressed in the consumer tip videos as the goal is to provide interactive material to help educate shop customers on different areas of the repair process. He also encouraged shops and vendors to link to the videos.

SCRS Treasurer Robert Grieve (Nylund’s Collision Center; Englewood, CO) updated attendees on the Blueprint Optimization Tool (BOT). “It’s working great for the industry. Many shops across the country have found huge success using this tool. In fact, since launching the BOT almost four years ago, well over 100,000 operations have been added to repair plans across the country,” he shared.

Gredinberg’s DEG Report focused on explaining the purpose of the resource (see grecopublishing.com/hd0523natlfeature) and encouraging repairers to submit inquiries. In 2023 alone, a total of 202,165 inquiries were submitted, and “nearly 52 percent of the inquiries submitted for CCC users resulted in a resolution and a change in the database,” he said.

Schulenburg addressed the importance of participation in these types of conversations: “The world is run by those who show up. We’re all grateful for those of you who decide to show up for this industry, your businesses and the people we serve. The people who care deeply about making a difference show up to do so.”

In honor of National Mentoring Month, he encouraged, “Find people you can lean on. That’s what the association is about; it is a community. The people in this room are those who show up and make a difference. We’re sharpened by the best in the industry. Know that your passion and the things you do matter. And the people you do it with are critical. Find the people who believe that, surround yourself with them, and be part of that. We’ve got a lot of work to do.” H&D

Executive Director’s Thoughts

The continued efforts of SCRS to not only keep its membership educated on association activities and initiatives, but to also host critical conversations like the one had with CA DOI Deputy Commissioner Cignarale, are so important to the continued success of our industry. If you’re not paying attention to what SCRS is up to, I highly recommend you start now!

-

Jordan Hendler

VISIT BOOTH #521 AT AASP/NJ’S NORTHEAST SHOW!

MARCH 15-17

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Co-celebrating decades of creating chemistry between two industry leaders

Here’s to 241 years of combined service excellence

This year, as Albert Kemperle Inc. celebrates its 83rd anniversary, BASF also celebrates its 158th anniversary. We are proud of our decades of partnership with BASF and years of serving the auto paint and body industry together. Kemperle’s founders would be proud of this relationship and the growth their company has experienced because of it.

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Thank you for your many years of loyalty.

COVER STORY

of Bad Repairs, Pretty Paint, AI & More

Typically, the focus of collision repair professionals’ is to fix what’s damaged, restoring vehicles to their pre-accident condition. But during the most recent Collision Industry Conference (CIC), held in Palm Springs, CA in conjunction with other industry meetings, industry professionals took things a step further as committees repositioned themselves to tackle common topics from new angles. And although the full day of back-to-back presentations surely got attendees thinking, it’s mind-blowing to realize that CIC merely scratched the surface in these discussions which are certain to continue playing a role in the industry for years to come.

What’s the cost of a bad repair? The OEM Relations Committee explored how to mitigate risk by addressing substandard repairs in order to help protect the manufacturer’s brand. “When there’s a poor repair experience, that can leave the customer with a negative brand impression,” explained Committee Co-Chair Liz Stein (OEC). “But that same repair experience can have multiple negative consequences, not only for the consumer, but for every other stakeholder in the business, so we wanted to examine the safety and economic repercussions of a substandard repair.”

Each example began as a vehicle repaired at a legitimate facility, but the vehicle owner found something that concerned them, so they took their car to another facility to be examined or re-repaired. Of the 26 studied vehicles that were taken in for such a post-repair inspection, over 90 percent wound up being totaled after an independent post-repair inspector uncovered substandard repairs, and around 50 percent had moderate to severe frame damage that had not been addressed in the initial repair. The secondary repair cost an average of 3.5 times the original estimate.

A 2016 Subaru WRX with an initial estimate of $7,000 was first brought in for an inspection due to a poor paint job – masking lines, inclusions in the paint and the wrong paint altogether – but much more was uncovered. Although the customer was billed for frame work, there was no evidence of clamp marks, and the steering column had not been addressed as instructed by the OEM. Numerous poor-quality aftermarket and used parts had been utilized, causing fitment issues. With a secondary repair cost of $18,500, the vehicle was declared a total loss.

As the committee presented several additional case studies, a common theme became apparent. “What is the vehicle owner’s perception?” asked Co-Chair Ron Reichen (Precision Body & Paint). “It’s the first thing they see, so the majority of the time, the process

started because of inclusions in the paint or paint color match. That starts the process because they don’t see what’s underneath the onion, but those paint flaws raise a red flag.”

But those paint flaws weren’t the only consistencies apparent among the case studies. “The lack of pre and post-repair inspections was prevalent. Lack of a pre-alignment, let alone a secondary alignment after the repairs. Calibrations were just simply overlooked, and there was a failure to recognize OE repair procedures, which all boils down to not following a defined process,” he continued, stressing, “If you have a proper blueprint and accountability within the repair process, you have a much better chance of a predictable outcome.”

Such scenarios create negative experiences for the consumer but also for the employees that left panelists wondering how some of these vehicles made it out of a shop, not just once but often multiple times. “One of these vehicles, the customer had gone back to the original shop nine times,” recalled Erin Solis (Certified Collision Group). “How does it get out of there in the first place? But then, it also got out of there a second, third, fourth time… the customer kept coming back, and it was still blatantly wrong.”

Even more frightening is the reminder that only 26 vehicles were studied. “Any of these vehicles could have resulted in an experience like the Honda Fit in Texas [in the John Eagle case], but these 26 vehicles are just a small fraction of what is out there on the streets,” Reichen pointed out. “And where did those total loss vehicles go? Were they crushed, or did they end up back on the roads again? How many more of those vehicles are out there? It should be terrifying to all of us because those vehicles are coming at us and our families.”

Acknowledging that it’s easy to forget the empty chair, which CIC reserves as a reminder to keep the vehicle owner in mind, when looking at statistics, Stein directed the conversation to solutions, recommending that shops educate customers and maintain professional communication throughout the process. She also stressed the importance of being properly trained, tooled and equipped for every repair and always accessing OEM repair information.

“Have a quality control process in place,” she reiterated. “And always make sure that no matter what, your people are empowered at any point in the process to be able to stop and say, ‘This isn’t right,’ to call a timeout and send it back to the technician without being penalized for stopping the process. There needs to be an inspection with checklists and processes for ensuring all necessary procedures were followed.”

In response to attendees’ questions, committee members confirmed that the vehicles were all repaired at legitimate, licensed facilities, though none of the vehicles Solis reviewed had initially been repaired at an OEM-certified collision center. In addition to observing an absence of calibrations and scans on the repair plans, inspectors also noticed a pattern of denial by bill payers when calibrations were requested.

“The solution starts at the beginning,” Reichen added. “We, as an entire industry, have to recognize that we are no longer in a trade. We are a skilled profession, and we need to start acting like it.”

Paint flaws may have alerted vehicle owners to the need for a post-repair inspection in those case studies, but with the multitude of ADAS equipped on modern vehicles, paint

continued on pg. 28

Tackling the most-pressing issues. BY CHASIDY RAE SISK

CIC’s OEM Relations Committee explored how to mitigate risk by addressing substandard repairs. Pictured L-R: Erin Solis (Certified Collision Group), Ron Reichen (Precision Body & Paint) and Daniel Rosenberg (BASF).

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continued from pg. 25

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just

is more than merely decorative, as the Parts and Materials Committee set out to explain from the perspectives of an OEM, two paint manufacturers and a shop manager.

Showing an image of the many systems one of his company’s vehicles could be equipped with, Benito Cid (Mercedes-Benz USA) emphasized that sensors “require a clear line of sight,” comparing it to a person walking around. “You’re seeing and hearing things that help you make decisions on what you’re going to do. The car uses these radar sensors to make those decisions.

“The importance of making sure the systems function properly is not just where the cameras are pointed or if they are mounted in the right place. Those things are important, but now, a big part that was really not thought of as much before is how much paint is on it? What color is on it? Some technology has limitations on not just how much paint you can put on but if it can be repainted at all, and the only way to know how to work on it properly is by accessing the repair procedures.”

AkzoNobel’s Ryan Brown agreed that it’s imperative for repairers to always research the OEM’s manual, even on what one might consider a “simple” paint job. “Paint has always

been cosmetic; it is no longer just cosmetic. It is also part of the safety system, and we need to recognize that and make sure we’re taking the proper steps to repair the car correctly for the customer.”

While the OEM is responsible for creating repair manuals and granting access to them, it’s the repairer’s responsibility to obtain and adhere to the required repair methods. He identified several factors that exert influence on radar sensors, such as material thickness of the substrate. Primer and clearcoat have limited impact on transmission, but no blending is allowed in the radar zone since this disrupts the signal. Additionally, bodyfiller application, welding and repair to the plastic substrate is not allowed. No manual tinting or color correction of the approved color is allowed.

be able to paint that bumper without blending into the quarter, and that is something you want to know early on in the repair process. It’s really important that you think about these things in advance.”

BMW has published very clear guidance on refinishing near sensors, according to Andrew Batenhorst (Pacific BMW Collision Center), who shared the OEM’s flowchart of repair plan considerations and acknowledged that he most often sees the third process where bumpers are replaced; however, he believes the most important factor is simply having a consistent process and standard. “If you have a repair planning process in your shop, no process can exist without having a standard. And if each time you’re assessing damage to a vehicle, you’re assessing it in a different way and different people are interpreting the process in a different way, you’re not going to get a consistent work

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that have been very painful, and we replaced bumpers when we did it wrong. So we learned quickly that if each person is interpreting what needs to be done in a different way, we’re not

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Jeff Wildman (BASF) began by observing that there are thousands of different colors that can impact radar, and those colors are different for every manufacturer. Likewise, every OEM has their own radar specification, and it’s imperative to research the repair procedures and ensure use of the right formula during a refinish.

“You cannot blend over that radar,” Wildman noted. “But a lot of times, you may not

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Establishing processes and standards is one method for solving some of the problems shops encounter, but the Emerging Technologies Committee offered a high-level overview of AI (artificial intelligence), which was defined, “at its simplest form” as being “a field which combines computer science and robust datasets to enable problem solving.”

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Paint

vehicles is more than

cosmetic, as CIC’s Parts and Materials Committee set out to explain. Pictured (L-R): Ryan Brown (AkzoNobel), Jeff Wildman (BASF) and Aaron Schulenburg (SCRS).

Chuck Olsen (AirPro Diagnostics) emphasized the quality of an AI program – like with any computer program – is contingent on its inputs. “Garbage in, garbage out. If you have a bad program or train AI with inaccurate information, it will give incorrect answers every time. The model is dependent on its inputs; it perceives the world based on how it is programmed. And if used properly, it can be a tool for us to use in the future.”

Co-Chair Bob Augustine (Opus IVS) added, “AI is built on a model that is continuously being tuned based on feedback from the humans who help train it.”

Panelists all agreed that the human element remains important, stressing that the AI model is unable to employ common sense, so it will never be 100 percent perfect and will always rely on an ethical human to make a final decision.

“AI helps you make decisions,” James Spears (Tractable) offered input. “It should be very fast, accurate and reputable.”

Still, AI utilization presents many opportunities for the industry, from analyzing DTCs to assisting with training and even organizing service information for easier review.

“There’s a lot of AI around us, and we need to embrace it,” contributed Scott Brown (Diagnostic Network), who shared information on his company’s AI bot, AiDN, which was designed to think like a technician and respond to questions to provide “a starting point on where to go to properly triage a problem” as a means of enhancing efficiency in the shop.

Of course, the most effective way to improve shop efficiencies starts at the beginning of the process with repair planning, and it’s helpful to stay on top of any p-page update, which is why Estimating and Repair Planning Committee Chair Danny Gredinberg (Database Enhancement Gateway) provided a detailed overview of the estimating systems’ most recent p-page updates. Users of Audatex, CCC and Motor can access the P-pages through their platforms, but non-users can also review the P-pages for any of the three information providers (IP) by going to degweb.org, selecting “estimators toolbox,” then clicking on “estimating systems” and choosing the specific IP.

Gredinberg examined the recent P-pages in detail; view his complete presentation at ciclink.com/meeting-presentations

Although the information shared at CIC was invaluable, everyone knows it’s not very useful if the collision industry doesn’t start attracting more young talent into shops. During a special presentation by the Talent Pool and Education Committee, “Collisionista” Petra Schroeder and Charlie Robertson (Collision Career Institute) shared a new industry outreach video (available at bit.ly/rev-up-collision-career), which they hope will be used to offer young people a better view of the exciting career opportunities available in the collision repair industry.

CIC’s next meeting is scheduled for April 17, 2024 in Seattle, WA. Registration information, as well as presentations from previous meetings, can be found at ciclink.com H&D

Executive Director’s Thoughts

If you read my Executive Director’s message this issue (and if you didn’t, go back to page 6 to do so!), this coverage of the most recent CIC as a whole is a perfect callback to what I was talking about. There is quite simply nothing that compares to the faceto-face interaction, idea-sharing and networking that happens in these rooms. There’s still time to join us in Seattle in April; I promise you will find tremendous value in the conversations to be had before, during and after what is sure to be an exciting Industry Week! -

Jordan Hendler

Position Your Business

OFFICERS

PRESIDENT:

Kris Burton kris@Rosslynautobody.com 703-820-1800

SECRETARY:

Barry Dorn bdorn@dornsbodyandpaint. com 804-746-3928

VICE PRESIDENT:

Phil Rice

phil@ricewoods.com 540-846-6617

TREASURER

John Shoemaker john.a.shoemaker@basf.com 248-763-4375

BOARD

PAST PRESIDENT:

Steven Krieps srkrieps@live.com 304-755-1146

EXECUTIVE DIRECTOR:

Jordan Hendler 804-789-9649 jordanhendler@wmaba.com

Tom Brown thbrown@ppg.com 703-624-5819

Bill Hawkins

Just like equipment and training, WMABA membership is not only a commitment to excellence, but also a valuable investment.

WMABA is recognized both regionally and nationally as the key forum for the exchange of ideas concerning the D.C., MD, VA and WV collision repair industry. It is the venue to discuss, learn about and impact evolving standards and policies in the technical, administrative and legislative fronts of our industry. Shops and industry supporters can best develop themselves and their employees by actively engaging in the association and its activities.

Automotive collision repair facilities in Maryland, Virginia, West Virginia and Washington, D.C. who are willing to adopt WMABA’s Standards of Membership and offer a guarantee to their consumers are encouraged to engage their business as an active member of the association. For over 40 years, the WMABA membership of professional collision repair businesses and affiliates have committed to operating at a higher standard on behalf of their industry and their consumers. Over the years, WMABA has proudly represented the collision repair industry at hearings on Capitol Hill, in Annapolis, MD, and Richmond, VA as well as almost every national collision repair event. While WMABA has a rich history of dedicated men and women serving the local collision repair community, WMABA also boasts numerous past and current accomplished Board members who represent our membership at the national level.

WMABA offers current and dynamic discussion forums on topics facing collision repairers, technical information and educational seminars, opportunities to network and discuss pressing topics with leaders of the collision repair industry, an arbitration program that works with consumers to help resolve issues they might have, apprenticeship programs, legislative representation and the ability to receive and contribute to one of the nation’s leading collision repair magazines, Hammer & Dolly

hawkinswilliamjr@gmail.com 510-915-2283

Tracy Dombrowkski tracy@collisionadvice.com 571-458-0648

Rodney Bolton rbolton@aacps.org 443-386-0066

Torchy Chandler torchy.chandler@gmail.com 410-309-2242

ADVICE INDUSTRY ASK MIKE:

How Can Shops Talk to Customers About Data Sharing?

This month, we “ASK MIKE” for his thoughts on how shops can talk to customers about the possibility of data sharing. We at Hammer & Dolly hope you find the following exchange useful, and we encourage you to reach out to us if you have a question for Mike on this or any industry-related matter that he can answer in a future issue.

Hammer & Dolly: There’s a lot of information generated during the repair process, and there are concerns about that – both in and out of the industry. What are some ways that shops can talk to their customers about the information that’s been gathered, how it’s used and the protections that are in place to keep it safe?

Mike Anderson: I’m sure there are a lot of people in our industry who have thoughts on where certain data comes from and how it’s probably being shared with entities like CARFAX. Unfortunately, nobody has come forward in a public forum to present facts and information on how data is being shared. If you have a conversation with a customer in advance of their repair about the possibility of their data showing up on CARFAX, that could open a can of worms. If you do it after the fact, you could end up dealing with an unhappy customer. Unfortunately, I don’t have a clear industry-wide answer – but if you’re asking me how I would respond to that question, let’s start by taking data privacy out of it. No matter what, you need

to start by making sure you have a good customer authorization form that authorizes you to dismantle or work on the vehicle and indicates your charges and payment options. Even 10 years ago, we’d need an authorization form to scan a vehicle or share data with a third-party payer.

I know of a situation where a shop scanned a customer’s vehicle for a rear-end hit. The customer said the navigation unit hadn’t been working since the accident, but the data from the scan showed that the navigation stopped working six months prior to the collision. The shop later shared that information with the insurance company, which said it wouldn’t pay for that navigation unit. The consumer then went after the body shop and said, ‘You didn’t have my permission to share that information.’

Obviously, there have been various discussions in the industry as to who owns that data. Does the car own the data? Does it belong to the consumer? What about the insurance company or the lienholder? I don’t have an answer – and perhaps the question will be resolved in a court of law someday – but I do believe that you need to let the customer know in the authorization form that you’re going to scan their vehicle, explain what the word ‘scan’ means and that the information may need to be shared with a third-party payer to justify repairs. You’ll also need to inform the customer that you’ll perform a test drive to achieve the set conditions as part of the repair process.

If the vehicle is a total loss, the customer still has personal data – everything from phone contacts to the GPS coordinates for their home – in it. That’s more data we need to consider. Shop may want to ask the customer if they want that personal data erased before the vehicle is released to the salvage yard. Then there’s the data that could end up on CARFAX, and that’s a difficult area

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to address right now. At the end of the day, I don’t know whether to advise shops to have that conversation with customers at the beginning or to suggest they wait until those customers come to them to talk about it. But whenever you have that conversation, it’s important to say to them, ‘We don’t share your data, but there are systems we have to use to write the damage analysis on your vehicle, order your parts and work with your insurance company.’ Talk with them about the ways that data could be shared, but also reassure them that you’re not the one doing it. I don’t know a single shop that’s sharing customer data with CARFAX.

On a related topic, shops need to be aware of the dangers of being hacked and held ransom for bitcoin. I know of at least 13 shops – independents, dealers and MSOs [multi-store owners] – that had that experience. As of now, none of them have been able to get out of it because none of their IT sides were set up for it. Make sure to check with your insurance company to confirm that you have coverage for it. Some business insurers offer training modules that employees can take to help them be more cautious of clicking or selecting something online that could get them hacked.

H&D: This all seems to be a variation of the standard advice given to DRPs to review their contracts before signing on the dotted line – only this time, all shops are encouraged to read

Mike Anderson is an Accredited Automotive Manager (AAM) and the former owner of Wagonwork Collision Centers, two highly acclaimed shops located in Alexandria, VA. He has served as a member of many industry organizations throughout his career, including the WMABA Board of Directors, the Mitchell Advisory Board, the MOTOR Advisory Board, the ASE Test Review Committee, the National Auto Body Council, the Collision Industry Conference and the Society of Collision Repair Specialists. Additionally, he is a past Virginia SkillsUSA chairman, serves as a facilitator for Axalta Coating Systems’ highly recognized Business Council 20 Groups in both the US and Canada and facilitates numerous courses for Axalta Coating Systems’ Educational Series. He currently offers expert industry consulting via his latest venture, Collision Advice (collisionadvice.com). H&D

Explain the protections you put in place.

WITH MIKE ANDERSON

their EULAs [end-user license agreements] before agreeing to do anything.

MA: Shops need to read those agreements with any software provider – whether it’s a scan tool, your computerized measuring or paint-mixing software or your estimating and management systems. Reading those EULAs is very important.

Give your customers the reliability and

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3301

301-890-3060

Fax: 301-890-5473

mbsilverspring@mileone.com

Hours: M-F 7:30am-5pm, S 8am-3pm