Hammer & Dolly September 2014

RICO Suit Plaintiff Rejects Joining Antitrust Actions - page 28

September 2014 Volume 8, No. 9 $5.95 www.wmaba.com

ALSO THIS ISSUE CIC's New Leadership A Closer Look at SEMA SCRS Hits Detroit

www.grecopublishing.com

September 2014

3

CONTENTS September 2014 COVER STORY

38 BEHIND THE CURTAIN:

INSIDE STORIES FROM WMABA MEMBER SHOPS

Four different shops, four intriguing looks at the past, present and future.

NEWS ANNOUNCES NEW CHAIR, REVISES MISSION & VISION STATEMENTS 20 ACICleading MSO owner will soon take the reins at the Collision Industry Conference.

22

A major threat to safety is explored in Detroit.

24

The national association continues its work on behalf of the industry.

28

The Crawford's team goes it alone.

28

A common industry problem gains major mainstream attention.

US OFFICIALS VISIT CIC TO WARN AGAINST COUNTERFEIT AIRBAGS

RENTAL CONCERNS, MEDIA OUTREACH DRIVE SCRS AGENDA

DEPARTMENTS

RICO SUIT PLAINTIFF REJECTS JOINING ANTITRUST ACTIONS

6

ABC NEWS SPOTLIGHTS DRP CONTROVERSY

LEGAL PERSPECTIVE 16 THE PROS AND CONS OF AN ACTIVE

10

Editor’s Message JOEL GAUSTEN

12

President’s Message DON BEAVER

44

WMABA Board of Directors

48

Publisher’s Message THOMAS GRECO

SOCIAL MEDIA PRESENCE

Exploring the ins and outs of surviving - and thriving online as a small business. BY WHITNEY CLEAVER SMITH

NATIONAL FEATURE 30 INSIDE SEMA 2014: A PREVIEW OF THE

Calendar of Events

50

Advertisers Index

INDUSTRY'S LARGEST EVENT

Shops from around the world prepare for a return trip to Las Vegas. BY JOEL GAUSTEN

TECHNICAL FEATURE 34 WHO IS MORE AT FAULT FOR IMPROPER REPAIRS: REPAIRERS OR INSURERS?

Our resident experts get to the heart of the turmoil behind the repairer-insurer dynamic.

Cover Photo ©thinkstockphoto.com/Jupiterimages THIS PAGE, CLOCKWISE FROM TOP: ©thinkstockphoto.com/Jupiterimages ©thinkstockphoto.com/JGI Photo courtesy of www.semashow.com ©thinkstockphoto.com/shutter_m ©thinkstockphoto.com/Darko Novakovic

BY LARRY MONTANEZ III, CDA & JEFF LANGE, PE

September 2014

5

CALENDAR OF

EVENTS September 2, 2014

2015 FORD F-150 STRUCTURAL REPAIR TRAINING COURSE Coxton’s Gold Team Collision Center, Yorktown, VA

September 4, 2014

FULL-FRAME PARTIAL REPLACEMENT Refinish Solutions, Springfield, VA 2015 FORD F-150 STRUCTURAL REPAIR TRAINING COURSE Timbrook Kia, Cumberland, MD

September 9, 2014

VEHICLE TECHNOLOGY & TRENDS 2014 Coxton’s Gold Team Collision Center, Yorktown, VA SECTIONING OF STEEL UNITIZED STRUCTURES Manheim (Harrisonburg) Auto Auction, Harrisonburg, VA ADHESIVE BONDING Beamon & Johnson Automotive Paints, Virginia Beach, VA

September 11, 2014

SUSPENSION SYSTEMS Frederick Co. Career & Tech, Frederick, MD ADHESIVE BONDING Coxton’s Gold Team Collision, Yorktown, VA

September 16, 2014

HAZARDOUS MATERIALS, PERSONAL SAFETY & REFINISH SAFETY Beamon & Johnson Automotive Paints, Virginia Beach, VA CORROSION PROTECTION Coxton’s Gold Team Collision Center, Yorktown, VA

September 18, 2014

SQUEEZE-TYPE RESISTANCE SPOT WELDING Refinish Solutions, Springfield, VA DOCUMENTATION & DIGITAL PHOTOGRAPHY Frederick Co. Career & Tech, Frederick, MD

September 23, 2014

CORROSION PROTECTION Manheim (Harrisonburg) Auto Auction, Harrisonburg, VA WHEEL ALIGNMENT & DIAGNOSTIC ANGLES Keystone Linthicum, Linthicum, MD

September 24, 2014

COLOR THEORY, MIXING TONERS & TINTING Refinish Solutions, Springfield, VA

September 25, 2014

BLUEPRINTING PROCESS & DAMAGE DISCOVERY Frederick Co. Career & Tech, Frederick, MD STEERING & SUSPENSION DAMAGE ANALYSIS Beamon & Johnson Automotive Paints, Virginia Beach, VA

September 29, 2014

INSPECTING REPAIRS FOR QUALITY CONTROL Virginia Farm Bureau, Richmond, VA

September 30, 2014

OVERVIEW OF CYCLE TIME IMPROVEMENTS FOR THE COLLISION REPAIR PROCESS Beamon & Johnson Automotive Paints, Virginia Beach, VA

October 2, 2014

Industry training opportunities and don't-miss events.

October 14, 2014

INSPECTING REPAIRS FOR QUALITY CONTROL Manheim (Harrisonburg) Auto Auction, Harrisonburg, VA

October 16, 2014

SUSPENSION SYSTEMS Beamon & Johnson Automotive Paints, Virginia Beach, VA ALUMINUM EXTERIOR PANEL REPAIR & REPLACEMENT Frederick Co. Career & Tech, Frederick, MD

October 23, 2014

HAZARDOUS MATERIALS, PERSONAL SAFETY & REFINISH SAFETY Frederick Co. Career & Tech, Frederick, MD

October 28, 2014

STATIONARY GLASS Manheim (Harrisonburg) Auto Auction, Harrisonburg, VA RACK & PINION & PARALLELOGRAM STEERING SYSTEMS Beamon & Johnson Automotive Paints, Virginia Beach, VA

October 30, 2014

ALUMINUM-INTENSIVE VEHICLE REPAIRS Beamon & Johnson Automotive Paints, Virginia Beach, VA

FULL-FRAME PARTIAL REPLACEMENT R N R Auto Body, Hagerstown, MD

October 6, 2014

ELECTRIC & ELECTRIC HYBRID VEHICLES Virginia Farm Bureau, Richmond, VA

October 9, 2014

RACK & PINION & PARALLELOGRAM STEERING SYSTEMS Frederick Co. Career & Tech, Frederick, MD

www.i-car.com or (800) 422-7872 for info ®

Save the Dates for NORTHEAST 2015!

Top-Notch Educational Opportunities Over 150 industry-leading exhibitors Fun for the Whole Family, And More!

March 20, 21, 22 6

September 2014

www.aaspnjnortheast.com

September 2014

7

8

September 2014

September 2014

9

Joel Gausten

EDITOR’S

(973) 600-9288 tgpjoel@verizon.net

MESSAGE THE CURE FOR BOREDOM In the nearly eight years I have been involved in Hammer & Dolly, I have never experienced anything quite like 2014.

From the ongoing controversy over insurer-mandated parts procurement to shops across the country racing to catch up with aluminum repair training, members of this industry have never been more active in responding to the changes around them. As a result, we at Hammer & Dolly rarely face a situation where we don’t have enough material to fill our pages.

Simply put, if you think things are quiet these days, you are not paying attention to the whirlwind.

As discussed many times in these pages over the years, Hammer & Dolly serves to inform the WMABA community of important industry news and views regionally, nationally and from around the globe. We strive to make sure that those members who are unable to be a part of events like the Collision Industry Conference (CIC), the quarterly SCRS Open Meetings and the upcoming SEMA Show still feel like they have a front row seat to these gatherings simply by reading our publication.

This is especially true of this issue, which spotlights all three of these events (pages 20,

22, 24 and 30) while also giving members of various shop sizes and experiences an opportunity to share their stories with fellow repairers (“Behind the Curtain,” page 38). We feel that this level of diverse content has helped Hammer & Dolly remain the top industry news source for the MD, VA and DC collision repair industry.

As you begin the final months of this very busy year, please keep us in mind if you have exciting news to share, encounter an issue in your day-to-day business, are trying out a new way to generate revenue or just want to share whatever is on your mind about your profession. We have no doubt that 2015 will be even more intense, and we want to remain your go-to source as everything from the new F-150 to PartsTrader’s new dealer subscription charges start impacting your work in this field. We look forward to working with you during what is sure to be an even busier time than the one we’re all having right now. This industry is many things; boring isn’t one of them. H&D

2014 WMABA OFFICERS PRESIDENT

VICE PRESIDENT

TREASURER SECRETARY

IMMEDIATE PAST PRESIDENT

Don Beaver Dbeaver@antwerpenauto.com 443-539-4200 ext. 17061 Torchy Chandler torchy.chandler@gmail.com 410-309-2242 Mark Schaech Jr. mark@marksbodyshop.com 410-358-5155 John Krauss jkrauss@craftsmanautobody.com 703-534-1818 Barry Dorn bdorn@dornsbodyandpaint.com 804-746-3928

BOARD OF DIRECTORS

Rodney Bolton (rbolton@aacps.org) 410-969-3100 ext. 250 Mark Boudreau (crashdaddy@aol.com) 703-671-2402

Kevin Burt (kevinburt@walkermillcollision.com) 301-336-1140 Bobby Wright (bobby@burkevillebodyshop.com) 434-767-4128

©thinkstockphoto.com/andreusK

ADMINISTRATION

EXECUTIVE DIRECTOR Jordan Hendler (jordanhendler@wmaba.com) 804-789-9649 WMABA CORPORATE OFFICE P.O. Box 3157 • Mechanicsville, VA 23116

10

September 2014

STAFF

PUBLISHER MANAGING EDITOR/ DIRECTOR OF SALES

EDITOR

ART DIRECTOR OFFICE MANAGER

Thomas Greco thomas@grecopublishing.com

Alicia Figurelli alicia@grecopublishing.com

Joel Gausten tgpjoel@verizon.net

Lea Velocci lea@grecopublishing.com

Sofia Cabrera tgp4@verizon.net

PUBLISHED BY TGP, Inc. 244 Chestnut St., Suite 202 Nutley, NJ 07110 973-667-6922 FAX 973-235-1963 Reproduction of any portions of this publication is specifically prohibited without written permission from the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of TGP Inc. or of the Washington Metropolitan Auto Body Association (WMABA). Copyright © 2014 Thomas Greco Publishing, Inc.

September 2014

11

PRESIDENT’S

MESSAGE

Don Beaver

(443) 539-4200 ext. 17061 Dbeaver@antwerpenauto.com

THE POWER OF PEOPLE Over the many years I have been in

the industry, I’ve often stopped to think about the people I have met, friends I

have made and the network of contacts I have accumulated. At times, I wonder

where it all came from, but having been

in dealership body shops for the last 15 years (give or take), I have had the

pleasure of being involved in some great OE certified programs, performance

groups and training. What I’ve gained

from those kinds of meetings has been immeasurable. Not everyone in the industry has access to these types of

courses and gatherings, but what you do have access to are associations and

events like the Collision Industry Confer-

ence (CIC), the SEMA Show and NACE.

number of someone you’ve met who is experiencing - or has already conquered - that same prob-

events and not taken something away

more you are involved, the more ears you have to bend. And the more people you can reach out to

I have never been to one of these

that either makes my shop run smoother,

increases production or helps us be-

come more profitable. The funny thing is

that a lot of what I take away from these

events may not have come out of sitting

in a class or seminar, but from having a

meal and maybe a few cold ones with

colleagues who are in the trenches

every day like me.

Life becomes so much easier when

©thinkstockphoto.com/scanrail

you have a problem and you can go to

your Rolodex to pull up a name and

12

September 2014

lem you’re having any particular day. The same holds true with associations like WMABA: The when problems arise.

We are heading into the time of year where plans are being made for these upcoming events,

both on a local level with WMABA and on a broader scale in the upcoming 2014 SEMA Show. I im-

plore you to make the time to attend some of these outings. What you take away from these

events will come back to you tenfold. I know they have for me.

Hope to see some of you soon. H&D

September 2014

13

14

September 2014

Contact these Ford or Lincoln Mercury dealers for all your parts needs:

BOB BELL FORD 7125 RITCHIE HWY, GLEN BURNIE, MD 20161 Phone: 410-689-3038 Fax: 410-766-1275 www.bobbell.com

PLAZA FORD 1701 BEL AIR RD, BEL AIR, MD 21014 Phone: 410-879-3367 Fax: 410-877-7248 www.plazaford.com

SHEEHY FORD 5000 AUTH RD, MARLOW HEIGHTS, MD 20746 Phone: 301-899-6300 Fax: 301-702-3650 www.sheehyford.com

WALDORF FORD 2440 CRAIN HWY, WALDORF, MD 20601 Phone: 301-843-3028 Fax: 301-843-0334 e-mail: parts@waldorfford.com www.waldorfford.com

APPLE FORD 8800 STANFORD BLVD, COLUMBIA, MD 21045 Phone: 800-492-7999 Fax: 410-312-0928 www.appleford.com

HAGERSTOWN FORD 1714 MASSEY BLVD,HAGERSTOWN, MD 21740 Phone: 800-200-0276 Fax: 301-733-0603 www.hagerstownford.com

ACADEMY FORD 13401 BALTIMORE AVE, LAUREL, MD 20707 Phone: 301-419-2700 Fax: 301-419-0222 mrobinson@academyfordsales.com www.academyford.com

KOONS FORD OF ANNAPOLIS 2540 RIVA ROAD ANNAPOLIS, MD 21401 Phone: 410-266-3083 Fax: 410-224-4239 www.koonsford.com

TED BRITT FORD 11165 FAIRFAX BLVD, FAIRFAX, VA 22030 Phone: 703-673-2420 Fax: 703-870-7982 www.tedbrittparts.com

© 2014, Ford Motor Company

September 2014

15

LEGAL

PERSPECTIVE

©thinkstockphoto.com/shutter_m

THE PROS AND CONS OF AN ACTIVE SOCIAL MEDIA PRESENCE

16

September 2014

What’s happening at the State House, in your industry and everywhere in between.

BY WHITNEY CLEAVER SMITH, Attorney, The Law Offices of Alexander & Cleaver

In today’s technological world, social media can be a great help to small businesses. A presence on LinkedIn can connect people in the same field, allowing for an exchange of ideas, or to help employers find knowledgeable employees to hire. Articles or media blasts on Facebook and Twitter allow small businesses to get their name in front of hundreds of people who might not see traditional marketing materials. A presence on customer-review website Yelp allows prospective clients to review the work - both good and bad - done by the business in the past.

It is almost impossible to survive in today’s business climate without some sort of social media presence. Traditional methods of marketing are just not as far-reaching as they once were. You may, however, run across some pitfalls associated with social media that small businesses need to be aware of. First and foremost, businesses want to ensure that their employees are not posting defamatory or derogatory comments about their employer, or disclosing trade secrets or proprietary information, whether it is accidentally or on purpose. In addition, businesses need to be careful in protecting their clients’ privacy. For instance, a man who brings his new sports car in for repair may not want that information made public on Facebook or Twitter, nor his license plate number accidentally thrown into cyberspace.

So how can a business balance this wealth of inexpensive marketing against the potential for angry clients and avoid a pulpit for disgruntled employees? Small businesses must construct a clear, well-conceived policy regarding social media that they effectively communicate to their employees. This policy must balance the employer’s desire to control the content put out on behalf of the business, against the rights to free speech held by the employees. An overly broad social media plan can fail for this very reason. In addition, a perfect social media policy will fail without reasonable oversight and enforcement by the company.

To ensure that your social media policy adequately protects you while complying with constitutional rights held by your employees, you should sit down with the assistance of a knowledgeable attorney to construct a detailed social media plan.

Whitney Cleaver Smith’s practice of law focuses on personal injury, primarily representing clients in court. She continues to build on her impressive track record of achieving court awards for clients in excess of previously offered insurance settlements. She works with clients on social media issues. For more information, please contact Whitney Cleaver Smith at wsmith@alexander-cleaver.com or (301) 292-3300 to construct or review social media policies.

September 2014

17

18

September 2014

September 2014

19

Information and updates from WMABA and beyond.

NEWS

CIC ANNOUNCES NEW CHAIR, REVISES MISSION & VISION STATEMENTS The Collision Industry Conference (CIC) is going through some major changes.

As announced during the July 29 CIC in Detroit, several of the group’s past chairs met in Chicago in June for a special strategic planning session to discuss the organization’s future direction as well as confirm the next chair. After a lengthy review of potential candidates, the past chairs selected longtime CIC participant Randy Stabler (Pride Collision Centers, Greater Los Angeles, CA) to lead the group for a two-year term beginning in 2015. He will replace outgoing Chairman George Avery (State Farm), who will step down from the position following the November CIC meeting in Las Vegas.

CIC Administrator Jeff Hendler explained that the process of selecting a CIC chair actually begins as soon as the current one is announced.

“It is a considerable process of watching who’s on the committees, who’s chairing the committees, who’s in the room and who’s doing the job that CIC hopes to perpetuate,” he offered.

During the current chair’s second year, the past chairs eventually narrow the list down to one person. Hendler was quick to wish this latest individual well in his new role on behalf of the industry.

“We think we’ve got a good Chairman coming up [in Stabler], and we hope you’ll give him all the help you can going forward,” he said.

Michael Quinn (uParts), who served as Conference chair from 2011 to 2012, publicly thanked the past chairs for devoting their time and efforts to making the recent strategic planning session a success.

“Remember, this is a volunteer group of individuals,” he said.

“Each one of them paid their own way to fly to Chicago, spend an evening there and [put in] a full day of work for the betterment of this Conference.”

Past CIC chairs include Russ Thrall (CollisionWeek), Chuck Sulkala (National Auto Body Council), Lou DiLisio (Automotive Industry Consulting, Inc.) and Rick Tuuri (AudaExplore).

Avery congratulated Stabler on his new position and promised to help make the transition as smooth as possible.

“I pledge to be as good a past chair as [Quinn] was for me,” he said. “I’ve made a commitment that [if there is] anything you need, I will be here.”

Stabler is the co-founder of Pride Collision Centers, a multimillion-dollar collision repair company launched in 1983 that currently boasts six locations in Southern California. He is expected to make his first public address before the CIC body at the November meeting.

In other news, the past chairs announced that they had agreed to revise the mission and vision statements for the organization.

Moving forward, the CIC vision statement will read, “A collision industry in which all segments work together to enable a complete, safe and quality repair.” The revised CIC mission statement is as follows: “A forum where collision industry stakeholders come together to discuss issues, enhance understanding, find common ground and communicate possible solutions to the industry.”

More information on the Collision Industry Conference is available at www.ciclink.com. H&D

CA-based shop owner Randy Stabler has been named the new chairman of CIC.

Michael Quinn (uParts; far left) joined his fellow past CIC chairs in updating attendees on the group's future direction.

20

September 2014

September 2014

21

Information and updates from WMABA and beyond.

NEWS

US OFFICIALS VISIT CIC TO WARN AGAINST

COUNTERFEIT AIRBAGS Andrew Florell of the National Intellectual Property Rights Coordination Center warned CIC attendees of the dangers of counterfeit airbags.

Counterfeit airbags are on the rise, and it’s up to the collision repair industry to put a stop to it.

This was the message heard loud and clear during an alarming presentation given by various government representatives (including members of the Department of Homeland Security) during the CIC Parts & Materials Committee’s July 29 presentation in Detroit.

The fight against the distribution and use of counterfeit airbags is being pushed by the National Intellectual Property Rights Coordination Center (IPR Center), a collaborative effort of 21 federal and international partner agencies.

“We tell you this to warn you in the collision industry,” offered Andrew Florell, national program manager for the IPR Center’s Operation Engine Newity. “This threat is out there. Look for it; deal with reputable individuals. Do not buy things from China, and be very cautious when dealing with online marketplaces.”

To illustrate the dangers of counterfeit airbags, Florell showed a video of one of these phony products going off in a test collision. Not only did the airbag system shatter into several pieces (which would strike the passenger in the face at 200mph), but Florell noted that a bootleg airbag could contain a number of toxic substances – including one that could be fatal if inhaled or absorbed through the skin.

“It’s not just about the trauma of an exploding airbag,” he said.

“It’s also about the chemicals that are used.”

Not surprisingly, the government is coming down hard on anyone caught perpetuating the use of these dangerous items. One counterfeiter in North Carolina, Igor Borodin, was caught with 1,514 fake airbags and $60,000 in cash in 2012. He pled guilty to the distribution of counterfeit merchandise and illegal possession of explosive

devices and forfeited $1.7 million in sales proceeds. Borodin was later sentenced to 84 months in federal prison and will be deported to Russia when his term is completed.

William Hayes, a deputy special agent for the Department of Homeland Security, suggested that an airbag’s retail cost is a good way to determine if what you’re buying is of questionable quality.

“If a legitimate item is $1,000 and you’re getting it ‘on sale’ for $400, price is often a very good indicator of a counterfeit,” he said. “If it’s too good to be true, it probably is.”

China and Hong Kong make up 82 percent of the sources of counterfeit goods seized by the Department in the last year. When India and Pakistan are added, the number increases to 86 percent.

Most of the counterfeit items seized are coming into the US through small parcels shipped via Express Mail or the US postal service.

Even worse, some fake airbags are entering the country on commercial passenger airlines and even ending up in military vehicles, thus placing American soldiers at risk.

Florell urged the collision repair industry reps in the room to spread the word about his agency’s work and to contact them if a shop has any information regarding counterfeit airbags.

“It’s not a black hole; I look at these [requests], and several other agents and analysts look at these,” he insisted. “We take it very seriously. We’re always looking for complaints. If you get counterfeit [items], let us know. If we don’t know about it, we can’t do anything about it.”

More information on the IPR Center is available at www.iprcenter.gov. H&D

©thinkstockphoto.com/Victor Emond

“If a legitimate item is $1,000 and you’re getting it ‘on sale’ for $400, price is often a very good indicator of a counterfeit,” Hayes said. “If it’s too good to be true, it probably is.”

22

September 2014

September 2014

23

Information and updates from WMABA and beyond.

NEWS Rental Concerns, Media Outreach

Drive SCRS Agenda

Although the summer months are typically a time of rest and relaxation, the Society of Collision Repair Specialists (SCRS) is not slowing down in its activities on behalf of the national auto body community. As evident during the association’s July 28 Open Meeting in Detroit, SCRS has maintained a robust schedule in addressing issues of importance to both professional repairers and the consumers it serves.

Over the last several months, SCRS has focused considerable attention on the issues surrounding the average length of car rentals during the repair process, and how utilizing unrealistic expectations or faulty multipliers to determine this amount of time impacts consumer experience. Since the previous Open Meeting in April, SCRS has worked with the Information Providers as well as a variety of vendors including Enterprise Rent-A-Car and Hertz in looking at the data available regarding the average length of rental and comparing these figures to the average hours per claim. Based on this research, SCRS Executive Director Aaron Schulenburg stated that it was the association’s impression that “the average of actual time spent in rentals is a bit different than the expectations that are asked of the shop.” The association recently released a special educational research project (http://archive. constantcontact.com/fs161/110130700968 7/archive/1117246772024.html) to illustrate their concerns.

“Ultimately, if consumers are being

SCRS Board member CJ Vermaak got in the spirit of the "Reverse Jeopardy" game show hosted by the SCRS Education Committee.

24

September 2014

given information that doesn’t accurately articulate what’s actually going to happen in the process, they will have less of a positive experience than they could have if we had provided them with a more realistic idea on the onset of what that rental period would look like,” Schulenburg noted. “Our focus is... that the metrics used for the pre-determination of the lengths of rental is reconciled with the realities of what is being produced on average in the industry, rather than perpetuating a misperception that if we place unrealistic expectations, we’ll get unrealistic results.” The length-of-rental debate will be further explored in a feature in an upcoming issue of Hammer & Dolly.

In other news, SCRS continues to be used as a resource by a number of national media outlets looking to learn more about the issues surrounding the collision repair industry and its work with insurers. In response to these ongoing requests, the association developed a media statement that Schulenburg says “accurately and comprehensively characterized the mindset of many of the repairers out there today who are really trying to do quality repair work [under] the pressures that exist in our marketplace.” A portion of the statement reads as follows: The government’s pressure on automakers to reduce emissions is going to continue to impact vehicle design, and increase the prevalence of an expansive list of lighterweight materials and advanced technology.

This continual evolution in automotive architecture intends to produce safer, lighter, more efficient vehicles, and inherently requires increasing amounts of skill to repair. It is absolutely the industry’s obligation to react, equip our businesses and train our technicians to meet the demands of our changing fleet. The good news is that through efforts from industry organizations such as the Society of Collision Repair Specialists (SCRS), I-CAR and others, the collision repair industry has increasingly more robust access to information from the automakers on the proper repair methods that should be used, the necessary equipment and the hazards of using certain parts or unaccepted procedures. As our industry

Kye Yeung offered expert information on aluminum-intensive vehicles during the SCRS Open Meeting in Detroit. invests in this highly sophisticated equipment and intensive, specialized training that are both often make and model-specific, the costs of such investments have to be recovered. The biggest challenge facing repairers isn’t capability, but rather the downward pressure placed on repair businesses to do more, and invest more, perform faster and to do so for a lesser return.

Interestingly, in the United Kingdom (UK), the UK Competition Commission issued a summary of findings after analyzing the interaction between the insurance and collision repair market. They came to a conclusion that many repairers in the United States have known for a long time; the market is not working well.

In fact, they specified that the market is not working well because “competition between repairers to obtain business from insurers is focused on low cost rather than high quality of repair; that is, repairers are insufficiently rewarded for offering a high quality of repair.”

In addition to the statement (which was slated to be posted at www.scrs.com at press time), SCRS’ recent public outreach included participation in a special workshop hosted by the Federal Trade Commission and the Department of Justice last June in Washington, DC. “When we have the opportunity to go and participate – and especially talk to the panelists and share and interact with them about some of the things that we see going on in our industry from a pricing practices standpoint – they are often astounded that

SCRS Executive Director Aaron Schulenburg detailed his group's recent actions on behalf of the industry and motoring public.

organizations such as ours exist and are present at those types of workshops,” Schulenburg said. “When they hear the correlation [between] their discussions and some of the things that we’re working on, it opens up lines of communication where we find opportunities to potentially bring back information to our members.”

SCRS reported on Liberty Mutual removing a commercial, which the association had communicated concerns about, from television and YouTube in July. Members had reached out to the association regarding what they felt were condescending, destructive and misleading statements about those not involved in the Liberty Mutual referral program. Schulenburg, who said that many of his members were “disappointed by the approach that was taken by the carrier to promote their program at the expense of the remainder of the industry,” was pleased to report that the offending commercial will no longer be seen by the motoring public and that the carrier was very responsive to the industry concerns presented.

SCRS is also actively addressing concerns from members regarding requests by certain carriers for shops to perform mid-panel clearcoat blending.

“It’s a frustrating issue, because I don’t think there is any OEM out there who would accept that repair approach,” Schulenburg said.

The association has requested position statements on the matter from all major paint manufacturers and plans to report on the responses received on www.scrs.com in the near future.

The SCRS Open Meeting also featured “Reverse Jeopardy,” a humorous mock game show hosted by SCRS Education Committee members Toby Chess and Kye Yeung that quizzed “contestants” (who were given horns and other noisemakers) on their knowledge of aluminum technology and repair. The fun nature of the festivities offered a good-natured approach to an increasingly important topic for shops throughout the country.

The next SCRS Open Meeting is scheduled for November in Las Vegas. For more information on this and other upcoming SCRS events, please visit www.scrs.com. H&D September 2014

25

26

September 2014

September 2014

27

Information and updates from WMABA and beyond.

NEWS ABC NEWS SPOTLIGHTS DRP CONTROVERSY

An explosive TV investigative news report by ABC Action News in Florida has put the issue of potentially dangerous repairs performed by DRP shops directly in front of the motoring public. According to the segment, Florida vehicle owner Will Dunn was directed by his insurer to use one of their Direct Repair shops for the repair of his Nissan Altima.

“My insurance adjusters called and...pretty much steered me to their shop,” he says.

Dunn claims that shortly after receiving the repaired vehicle, he noticed gaps in its rear seams.

“The comment that was made when my wife picked the car up was that the car must have been built like that,” he recalls.

He took his Nissan to Gunder’s Auto Center in Lakeland, where owner Ray Gunder discovered a crushed portion of the frame in the right rear of the vehicle.

“Whoever sits in that back seat is going to be put in major harm’s way,” he said.

ABC Action News reported that the Insurance Information Institute went on record in defense of the Direct Repair system as a tool to manage repair costs. In an email, a spokesperson pointed out, “When the insurance industry takes steps to manage repair costs, it is a consumer benefit. Savings are passed on...using a DRP is a consumer choice…”

According to Dunn, his insurer totaled the car and towed it away after he mentioned he had contacted the ABC Action News I-Team.

The station added that Gunder’s Auto Center is one of 20 Florida collision repair facilities that have filed suit against 30 insurance companies, alleging “a pattern of coercion to force these shops to take shortcuts on repairs to keep costs low.” The ABC Action News video is available at www.abcactionnews.com/news/local-news/i-team-investigates/insurance-companies-accused-of-short-cut-repairs-that-may-put-yourfamily-at-risk-on-the-road. H&D

©thinkstockphoto.com/jerry2313

In Memory: Allan Lock

Allan Lock passed away on Sunday, July 13. Lock had a long career in the collision repair industry, starting at

28

September 2014

RICO SUIT PLAINTIFF REJECTS JOINING ANTITRUST ACTIONS

On July 14, Crawford’s Auto Center of Downingtown, PA filed an Interested Party Response opposing the consolidation of its suit against several auto insurers (“RICO Lawsuit Targets Top Auto Insurers, Alleges Conspiracy Against Repairers,” H&D, July 2014) with a number of current antitrust lawsuits against carriers. According to CollisionWeek Online (www.collisionweek.com), these suits include litigation currently filed in Mississippi, Florida, Indiana, Utah and Tennessee.

While the Plaintiffs in the case did not seek to have Crawford’s consolidated with the other lawsuits, Allstate identified the lawsuit filed by Crawford’s as a potential tag along suit. Explaining their opposition to the motion, Crawford’s response states, “Like the majority of defendants who have filed responses to the proposed MDL [multidistrict litigation]...Crawford’s opposes consolidation of the RICO Class Action with the Antitrust Actions.”

As previously reported in Hammer & Dolly, Crawford’s filed an exhaustive 164-page lawsuit last spring against State Farm, Allstate, GEICO, Progressive, Farmers, Liberty Mutual and Nationwide, alleging that the companies conspired to control the cost of automobile repairs. Additionally, the complaint argues that these carriers violated the Racketeer Influenced and Corrupt Organization Act (RICO) by creating artificial “prevailing” rates based on their DRP shops’ use of products by the industry’s three leading Information Providers, who have been named as conspirators. The suit also names USAA, Travelers and American Family as conspirators but not as defendants. Crawford’s seeks to have the lawsuit granted class action status to allow for the inclusion of any nonDRP facilities that “performed automotive collision repair work or services on or in connection with a vehicle insured by, or covered under insurance issued by” any of the seven defendant insurers and used a CCC, Mitchell or Audatex estimating program for a repair estimate or supplement since January 1, 2006.

As this issue of Hammer & Dolly went to press, CollisionWeek Online reported that the Judicial Panel on Multidistrict Litigation (JPML) approved the consolidation of the five abovereferenced suits to the U.S. District Court for the Middle District of Florida. The plaintiffs had originally filed a motion to consolidate the suits to the U.S. District Court for the Southern District of Mississippi for consolidated pretrial proceedings. The RICO suit remains unchanged by the decision. H&D

Manassas Datsun in 1974, and also worked at Stohlman Nissan, Woodbridge Nissan, Kline Infiniti, Rosenthal Nissan, Browns Nissan, Dominion Nissan and Halls Nissan until he retired in 2007.

He is survived by his daughter, Jessica; his son, Eric and his brother, David, who

currently works at Infiniti of Tysons Corner.

Lock’s late father, John, worked for Nissan for 25 years.

WMABA and Hammer & Dolly extend their deepest condolences to Allan Lock’s family. H&D

September 2014

29

The industry gets ready for the fun and education in Las Vegas.

NATIONAL

FEATURE

INSIDE SEMA 2014:

A Preview of the Industry’s

Largest Event In 2009, the Society of Collision Repair Specialists (SCRS) went on a journey to create the industry’s most comprehensive national trade show experience by joining forces with the legendary SEMA Show in Las Vegas. Through the support of a legion of industry vendors and an industry audience who was looking for a new, more inspiring approach to offerings that gave them tangible solutions to bring back to their businesses, the SCRS’ Repairer Driven Education (RDE) program blossomed and the association’s inaugural SEMA experience proved to be an overwhelming success. Now, with the

30

September 2014

BY JOEL GAUSTEN

collision industry gearing up for its fifth year at the Show (November 4-7 at the Las Vegas Convention Center), SCRS has already met elevated expectations thanks to an extensive schedule of unique happenings designed to address the needs of its membership and the industry at-large.

With just under 100 days left to go at press time, SCRS Executive Director Aaron Schulenburg was pleased to report largerthan-expected registration figures and an increase in the number of collision repair vendors signing up to be a part of the festivities. This includes not only new names to the

exhibition area, but also newly expanded footprints by scores of previous vendors.

“The numbers continue to go up every year, and I think that demonstrates the way this content hits home with repairers,” he says. “We have a great partner in SEMA; they really share the vision we have for delivering a home for the collision industry at this event.”

A major reason for the elevated buzz surrounding this year’s SEMA is SCRS’ OEM Collision Repair Technology Summit on Wednesday, November 5. This special allday event will offer a content-rich agenda focused on emerging trends and the evolution of vehicle design, construction and technology as it relates to the collision repair environment. The format, featuring elevated discussions surrounding shop-floor issues, will include high-level speakers, panel discussions, breakout sessions, hands-on technology displays and organized interaction with OEM representatives and others with direct impact on vehicular changes relative to collision repair. OEMs confirmed to attend include representatives from Mercedes, Ford, Toyota, BMW, Tesla, GM and Audi; current sponsors of the Summit include PPG, BASF, Ford, Hertz and Toyota. Seats are limited for this event, which is expected to sell out.

“We really tried to look at every element of the changes in technology, the investment involved and what’s necessary for the industry, and relate it back to how collision repairers can make decisions in their businesses to be sustainable, relevant and ahead of the curve looking down the road into the future,” Schulenburg says.

Pleased to see the OEM Collision Repair Technology Summit take shape, SCRS Chairman Ron Reichen feels that the daylong event will provide attendees a rare

A MAJOR REASON FOR THE ELEVATED BUZZ SURROUNDING THIS YEAR’S SEMA IS SCRS’ OEM COLLISION REPAIR TECHNOLOGY SUMMIT ON WEDNESDAY, NOVEMBER 5.

opportunity to gain distilled information about industry advancements without having to search through dozens of news sources or technical bulletins. In his mind, the convenience of such a gathering will go a long way in helping shops become more aware of – and armed with greater knowledge to combat – the changes occurring now and into the future.

“You have to educate [technicians] and make capital investments in training and equipment in order to repair these vehicles that are coming out,” he says. “They’re coming out at such a rapid speed that you can’t wait and see and then make a decision.”

Of course, one way this year’s SEMA aims to help showgoers stay ahead is by offering a considerable focus on the repair of aluminum-intensive vehicles. Some of the many aluminum-specific offerings during SCRS’ RDE program at this year’s Show include an overview of 2015 F-150 repair information offered by Larry Coan and Gerry Bonanni of the Ford Motor Company on November 6 and a special “Aluminum 2014 & Beyond” class presented by Ken Boylan of Chief Automotive Technologies on November 7.

SEMA veteran and regular Hammer & Dolly contributor Larry Montanez will also tackle aluminum repair, offering “Aluminum Repair Procedures, Techniques & Requirements” on November 4. The longtime educator promises a greatly expanded look at the topic that will go far beyond what he has offered so far in the pages of this magazine.

“The course will be an extended version of three or four articles [Jeff Lange and I] have written, along with pictures from certified German aluminum repair facilities and a lot of the techniques, equipment and tools that are being utilized,” he says.

Above all, Montanez’s course will educate attendees on what it actually takes to become an aluminum repair facility, if that investment is advantageous to a shop’s bottom line or if it’s worth it to sublet the repair. Additionally, the course will delve into some of the common restrictions that shops could face when attempting to perform aluminum repairs – especially when dealer sponsorships come into play.

In Montanez's mind, being Ford-certified for aluminum “doesn't mean you're going to be able to touch [certain] German vehicles. A lot of them have restrictions and won't even sell you parts.”

Montanez will also present “Check Yourself: Departmental Quality Control to Prevent Incorrect Repairs,” a November 6 course

designed to cover commonly missed operations or procedures discovered during postrepair inspections that often result in re-dos.

He hopes that the discussion will serve as a warning shot that certain common mistakes can become a nightmare if the shop isn’t careful.

“In each department, there are usually 10 to 15 specific things that are always missed,” he explains. “For example, [when] somebody welds a panel on, we usually see that the back side is not only improperly ground, but it’s not even dressed afterwards. By the time the car gets to re-assembly, everyone’s forgotten to look for that; the car goes out without corrosion protection products being re-applied to those collision-repaired or replaced areas.”

All attendees of Montanez’s class will receive a list of P&L Consultants’ “commonly forgotten items” for each department.

Although aluminum is the latest topic to earn the industry’s collective attention, Schulenburg reminds SEMA attendees that there are several other issues of importance that will have a place at the show.

“Aluminum represents a growing area of what we’re going to see in our fleets, but based on what we know today, it’s unlikely that it will be the majority of what we’re going to see coming through our shop doors,” he says. “There are a lot of advancements being made in the aluminum industry, the steel industry and the carbon industry. There are a slew of different materials that our shops are going to have to gear up for and figure out how to address, fix and work a production model on in order to create sustainable business practices. That means being prepared to address a fleet of multiple substrates that has different training and tooling requirements, creating a variety of specializations within our repair businesses. ” For many forward-thinking business owners, developing these kinds of practices begins with tracking – and developing responses to – industry trends. During “Using Industry Statistics to Your Advantage” on November 4, Mike Anderson of CollisionAdvice (www.collisionadvice.com) will provide collision repair centers with the latest industry-related statistics, OEM trends and statistics from the latest sources from across the country.

“My goal or objective out of my class is to tell people how to interpret the data, how to use it to improve their businesses and how to use the data to problem-solve in their businesses so they can lower their stress level and improve their profitability,” Anderson explains.

“A lot of times, we don’t know how we’re doing unless we have some gauge in our business to tell us – much like your car. Would you rather drive down the road always guessing about how much gas you have, or would you rather have a fuel-tank gauge that tells you, ‘Hey, you’re down to a quarter of a tank?’”

In Anderson’s mind, this approach of using data to one’s advantage is in line with SCRS’ goal of providing what is necessary for shops to thrive in an ever-changing marketplace.

“You really have to be out there on the leading edge to see what’s happening – not so much with what’s happening today, but what’s coming down the road,” he says. “We have to be more proactive instead of reactive, and SEMA gives you a great opportunity to do that.”

This November, the collision repair community will be among the 100,000-plus people from around the world who will converge in Las Vegas for the automotive world’s biggest gathering. Although the auto body field comprises one section of the larger picture that is SEMA, rest assured that this unforgettable event will offer the definitive representation of the national – as well as the global – auto body repair industry.

“There is no other place where collision repairers can benefit from the connection to the grander automotive industry footprint, or where they can find more comprehensive offerings specifically crafted for collision repair professionals,” Schulenburg says. “Even if you are only interested in collision repair and related goods and services, SEMA is the place to be.

There are more vendors, opportunities and options than you can find anywhere else in this industry. It’s also in one of the most exciting, inspiring and fun environments, where you can go and feel re-enthused about the industry we work in. That’s one of the things that I think SEMA delivers that nothing else does in a similar capacity.”

The complete SCRS RDE schedule at SEMA (including registration information) is available at www.semashow.com/scrs.

H&D

Executive Director’s Thoughts

SEMA was the go-to place for repairers to diversify their business well before the collision industry had its own section and “Repairer Driven” education. Now that all things we need are in one place, surrounded by an infinite number of additional opportunities, there really is no excuse for a repairer not to attend.

- Jordan Hendler

September 2014

31

32

September 2014

September 2014

33

TECHNICAL

©thinkstockphoto.com/monkeybusinessimages

FEATURE

Nuts and bolts, tips and tricks from our resident industry experts.

BY LARRY MONTANEZ III, CDA & JEFF LANGE, PE

WHO IS MORE AT FAULT FOR IMPROPER REPAIRS: REPAIRERS OR INSURERS? We are sure most of you reading this have seen at least some of the Facebook, LinkedIn and other social media posts and/or news reports about the epidemic of bad, improper or incorrect repairs plaguing the auto industry. The insurance companies, auto rebuilders associations (recyclers) and aftermarket alternative parts industry are all saying the parts utilized in the repair process on these cases meet or exceed the OEM component, and that these are just isolated incidents. The body shops are saying they are being forced by the insurance companies to the use these inferior or rebuilt parts and perform substandard repairs. As you can see, there’s a lot of finger pointing and “he said, she said” going on. Both sides sound believable, and both sound like they are making their point. So who is really at fault here? This article will look at what we think is the reason behind why the collision repair and insurance industries are in so much turmoil right now.

©thinkstockphoto.com/JGI

OEMs’ General Position The OEM’s primary business is selling new vehicles. They produce and/or have parts produced for building their vehicles, and these components not only service the aftermarket field for mechanical service and failures but serve the collision repair industry as well.

Over the past few years, many OEMs have produced specific repair procedures and parts usage “Position Statements,” basically stating “we recommend,” “we require” and/or “we suggest” to do this or that or use only this to do this or that in a certain way. In a nutshell, the OEMs state that their parts are superior to those of the copies, and that using recycled parts - although originally produced by the OEMs may cause an issue due to the unknown condition of the part. Now, we may agree with the copied parts (a.k.a. aftermarket) not being the same as the original. Original parts can be broken down into three categories:

34

New OEM: Components produced during manufacturing when the vehicle is first made.

New OEM replacement: Components produced for the sole purpose of being replacement components for mechanical and body repairs. These components are held to strict guidelines as to how many times the dies can be used prior to replacement, the type and thickness of the substrate and the type of coatings applied.

Used OEM: Components taken from a donor vehicle that are either new OEM and/or components that were replaced with new OEM replacement components.

September 2014

Any one of these three options may be used during repairs, but keep in mind that many OEMs do not recommend the use of used components, even if they originally produced them. We feel that most bolt-on body components can be a viable replacement option, if there are no safety or crash management issues that may arise; the component is in good condition and has no previous repairs; and of the consumer has approved of their use. Please make sure to inform the consumer if the OEM does or does not recommend the use of used parts; if the consumer elects to use them anyway, it is their decision.

Remember: If you as the shop go against the OEM recommendation, then you are fully liable. We do not endorse or recommend the use of used safety components or weld-on components.

Aftermarket components are, well…knockoffs. In many cases, there are fit and finish issues and differences in substrate material, tensile strength, material thickness, corrosion coatings, dimensional inconsistencies and so on. Most OEMs have position statements against the use of aftermarket components and reconditioned wheels.

Reconditioned wheels can cause a multitude of dangerous situations and should never be used if the OEM has a position statement, if there are any structural deformities or if any welding or if adding or removing material is required. Generally, refinishing is approved by many.

Insurance, Aftermarket and Rebuilders Industries’ General Position The representatives or lobbyists from these industries will have you believe that the use of used and aftermarket components keep insurance rates low as they control costs. They will tell you that if you replaced every part on a 2012 Toyota Camry with new OEM, it would cost over $125,000. Who would pay $125,000 for a 2012 Toyota Camry?

They’re right, but what they DON’T tell you is, if you replaced all the same parts with aftermarket and/or used, the cost would exceed $75,000 - $90,000. And who would pay that for a 2012 Camry? All that they prove is that a vehicle is worth more money in pieces then it is as a whole unit. They don’t, however, discuss the issue of underwriting and the calculations that go into determining insurance premiums. Obviously, the costs of repair are a consideration on these calculations. But do they use OEM component prices, or aftermarket?

There may be a savings to using alternative and used parts, but the overall replacement cost still exceeds the value of the vehicle. So what’s the truth? Well, a small part of the savings does come from parts usage, but the big savings come from the Direct Repair Program (DRP) agreements. Now, we are not privy to the actual agreement parameters, but common sense and industry articles can give us a basic idea of what the following advantages to the DRP process could be for the insurance industry: • A capping of prices on Labor Rate and material charges; • More control over claim process with a cost savings (DRP repair facilities have a certain number of days to make the repairs in; otherwise, the facility may have to absorb some costs); • Control over rental costs, as facilities that cannot make the repairs in the required days may have to pay for rental overages; and • Low repair costs due to no-charges on many procedures and fees (many DRP agreements require repair facilities to not charge for pickup/drop off, detailing, additional procedures, parts discounts, rentals and more).

For the insurance company, there are a lot of savings in using the DRP system, with some additional savings following the use of aftermarket and used parts. Many times, we hear shops complain that the insurance companies want them to try to repair something when the shop knows it can’t be repaired. Now, no insurance company would ever want an incorrect repair performed or have an unsafe vehicle go back out on the road. However, it happens. But why does it happen…and how?

The insurance company has three basic options to repair a vehicle as follows: • Control the repair by repairing the vehicle themselves. This will never happen, as insurance companies are in the business of insuring, not repairing. (While they do have some control over costs with the DRP system, they are not repairing the vehicle.)

• Pay for the value of the vehicle. This is commonly referred to as “totaling out” the vehicle. This can happen at any price on third-party claims, and at any price over the insured’s deductable, depending on state laws.

• Pay the insured or claimant for the cost of repairs to restore the vehicle to its pre-loss condition. In some states, there are OEM or nonOEM parts policies. We know of one or two situations where there is an HMO-type DRP system for discounted rates. However, in most states, the insurer is paying the vehicle owner the amount they owe to the repair facility for the repairs to restore their vehicle to its pre-loss condition.

So where does it all go wrong? Why are there so many improper repairs? Please read on...

Collision Repair Professionals Collision repairers will say that their Labor Rates are suppressed, and that they are "forced" to use inferior or used parts. And when repairs are found to be incorrect, the facilities use the “that was all they paid” excuse. Well, we are here to tell you that those excuses are complete lies.

Insurance companies cannot force a repair facility to do anything, ever.

The repair facility chose to cut corners on procedures, use inferior parts, use antiquated equipment, fix components that should have been replaced or neglected to restore corrosion protection. The time has come where repairers need to be held accountable for their business decisions. We see poor quality repairs from both DRP and non-DRP facilities. As we stated before, insurers have no say on the shop’s decisions, even for a DRP. Remember: The facility owner(s) agreed to the terms, but it was their decision.

The Rules The insurance company owes the insured or claimant the proper amount to repair their vehicle to its pre-loss condition or for the value of the vehicle.

The repair facility is obligated and contractually bound to honor their agreement with the vehicle owner. Any and all decisions will be their liability, regardless of whether the insurer approved those procedures, parts or services. The repair facility is the expert and will be held accountable.

The insurance company has as much right to tell a shop how to repair a vehicle, what procedures and parts to use and what Labor Rate to charge as repair facility owners have in telling insurers what premiums to bill, what coverage to honor and what deductibles to charge.

In next month’s article, we will look at a case study of a poor-quality repair and explain who is at fault for where things went wrong. H&D

Larry Montanez, CDA is co-owner of P&L Consultants with Peter Pratti Jr. P&L Consultants works with collision repair shops on estimating, production and proper repair procedures. P&L conducts repair workshops on MIG & resistance welding, measuring for estimating and advanced estimating skills. P&L also conducts investigations for insurers and repair shops for improper repairs, collision repairability and estimating issues. P&L can be reached by contacting Larry at (718) 891-4018 (office), (917) 860–3588 (cell), (718) 646–2733 (fax) or via email at larrygoju@aol.com. The P&L website is www.PnLEstimology.com.

Jeff Lange, PE is president of Lange Technical Services, Ltd. of Deer Park, NY (www.LangeTech.net). Jeff is a Licensed New York State Professional Engineer who specializes in investigating vehicle and component failures. Lange Technical Services, Ltd. is an investigative engineering firm performing forensic vehicle examinations and analysis for accident reconstruction, products liability and insurance issues. Jeff can be reached at (631) 667-6128 or by email at Jeff.Lange@LangeTech.net.

Executive Director’s Thoughts

The parts controversy rages on, and this showcase by Larry and Jeff brings home many of the pertinent points we have to discuss during even the legislative process. A repairer inevitably must inform the customers – the vehicle owners – of their choices and let them make them. The insurer wins only the money game, but the vehicle owner gambles with his or her life on potentially inferior parts. - Jordan Hendler

September 2014

35

Conquest your Mitsubishi parts needs!

Mitsubishi now offers Genuine OEM parts through our new “Opt-OE” parts program at discounted prices. See Mitsubishi’s Ultra-Conquest parts and prices in the Optional OEM Suppliers category of popular collision estimating systems.

Ultra-Conquest Collision Parts Program Highlights: • Discounted prices on quality new and unblemished OEM parts • Automated price and part selection in collision estimating systems • High parts availability • Delivery to most major U.S. cities within 24 hours • Available through all participating Northeastern area Mitsubishi dealers • Includes the majority of key collision components for select popular models • We can meet or beat aftermarket prices!

To find out more about Ultra-Conquest pricing contact your local Mitsubishi dealer.

For Genuine Mitsubishi parts, contact these authorized Mitsubishi Dealers.

Jerry’s Mitsubishi

Fitzgerald Mitsubishi

Younger Mitsubishi

Malloy Mitsubishi

1906 East Joppa Road

1930 West Street

1945 Dual Highway

14655 Jefferson Davis Hwy

Baltimore, MD 21234

Annapolis, MD 21401

Hagerstown, MD 21740

Woodbridge, VA 22191

Toll Free: 800-255-0691

Direct: 410-224-4636

Direct: 800-296-1190

Direct: 703-490-8263

Direct: 410-668-2119

Fax: 410-224-4264

Fax: 301-733-5465

Toll Free: 888-533-3400

Fax: 410-513-0236

E-mail: adamsf@fitzmall.com

www.youngermitsubishi.com

Fax: 703-490-3864

www.jerrysmitsubishi.com

hmkparts@aol.com

Buy Genuine Mitsubishi Parts and get the perfect fit at the perfect price.

10% off on all parts orders when you mention this ad.

36

September 2014

September 2014

37

An inside look at how four members found success in the field.

COVER

STORY BEHIND THE CURTAIN: INSIDE STORIES FROM WMABA MEMBER SHOPS

What makes a multi-shop operator tick? What drives a business with a dozen employees? What enables a body shop to survive into a second generation? Hammer & Dolly reached out to WMABA members of varying sizes and experiences to learn more about their history, business practices and goals for the future. As you’ll read, these shops have more in common than you might think.

By Joel Gausten

Generations of Greatness For longtime WMABA member and Fredericksburg mainstay Milton Parrish, expertly bringing vehicles back to pre-accident condition is a true family tradition. A thirdgeneration shop owner, Parrish continued in the footsteps of his grandfather Vernne and father Stanley when he launched his current business, Parrish Body Shop, in 1983. Already working in his family’s shop by the time he was 16, he had no doubt that collision repair would be his life’s work.

“Growing up, my brother Michael and I would whitewash the walls, scrape the windows and sort out the nuts and bolts until we were big enough to learn how to do bodywork and paintwork,” he says.

The Parrish family’s story in auto repair began in Kentucky around the time of the Great Depression, when Vernne – a blacksmith by trade – started a shop with his son-

in-law. Stanley followed his father in the trade, eventually serving as an airplane mechanic during World War Two. After settling in Fredericksburg after the war and honing his skills at a few dealerships, he started his own shop in 1958.

Today, Milton keeps the spirit alive at Parrish Auto Body. A celebrated part of the community, the 9,600-square foot facility is A+ rated by the Better Business Bureau and was the proud recipient of the 2012 AutocheX Premier Achiever Award from Mitchell. He maintains this high standing in the community thanks to the efforts of a 12person staff.

In an effort to stay relevant in today’s marketplace, Milton has worked to keep Parrish Body Shop on the cutting edge of technology.

“We were the first people in the area who put in waterborne paint because we

Parrish Body Shop: Award-winning service has helped this family business stay at the top.

38

September 2014

thought it was right for the industry,” he says.

“We’ve always been progressive. My father was the first person to actually have a real frame machine in Fredericksburg [back in 1959].”

Naturally, the Parrish family’s commitment to excellence has resulted in 56 years’ worth of referrals and repeat business from customers who know they receive quality work for their hard-earned dollars.

“My father used to have a philosophy that if you did 10 people right, you’d be lucky if one person went out and said something good about you,” Milton says. “If you do one [person] wrong, he or she is going to tell 10 people. We still use that philosophy every day here. With that, we have built generations of people coming to Parrish Body Shop.”

Currently, Milton is joined in the shop by his son Jeremy (who serves as the production/parts manager) and son-in-law Frank Perkins, who is training to be a body man.

His brother Michael also remains active in the industry, currently enjoying a career at Larry’s Import Center in Virginia Beach.

Away from the shop, Milton does what he can to improve the industry as a whole.

An avid supporter of I-CAR, he has served on the organization’s International Advisory Committee (IAC) and continues to encourage his fellow repairers to take advantage of the various educational opportunities available to them.

“If you don’t know the inner workings of I-CAR, get involved with it because it will help

The Hanagan family has thrived in the auto repair industry for generations: Left to right: Sean, Tony, Jimmy, Big Jim, Tim and Anthony.

you,” he offers. “Take the time to get in these things and see what’s available for you.”

Interestingly, Milton’s work on behalf of the industry has enabled him to see just how well respected WMABA is across the country.

Whether he’s in Idaho or Los Angeles, his collision repair counterparts are fully aware of what the association is doing to help members in the Washington Metropolitan region and beyond.

“They all know WMABA,” he says. “They wish they had this type of influence in their areas. It’s a tremendous organization.”

All in the (Friends and) Family What is the secret to longevity in this industry? For longtime WMABA business Hanagan’s Auto Body (Silver Spring, MD), finding ongoing success in the trade is a matter of taking care of customers and employees.

Celebrating his 55th anniversary in business this year, Hanagan’s co-founder Jim Hanagan believes if you consistently treat your staff with care, fairness and respect, they will remain loyal and dependable members of your team. While employee turnover may be an issue at some other shops, Hanagan’s has been fortunate enough to build a sizable longterm staff. This is especially true of the shop’s collision repair department, which hasn’t seen the need for a new hire since the late 1990s.

“We treat our people like family,” offers Jim, who started the shop with his late brother Pat in 1959. “We provide them with a safe environment to work in, and we stay aware of their needs.”

Already a 20-year veteran of the collision repair world by the time he joined the Hanagan’s Auto Body family in 1993, technician Brian Cho was immediately impressed by the shops’ warm, welcoming spirit. It was exactly what he wanted out of his career.

“I wanted to work in a family situation; I didn’t want to go to a big dealership where people didn’t know each other,” he says. “This has been a family shop for a long time.”

A longtime car enthusiast, Carlos Murillo

began at Hanagan’s in the mid ‘90s while a junior at Thomas Edison High School of Technology in Silver Spring. After succeeding in the co-op program, he signed on to work at the business soon after graduation. Nearly two decades later, he still views working with the Hanagan family as the realization of a childhood dream.

“I’m happy because I get to do what I wanted to do when I was in school,” he says. “I love to work on cars; every one is different.”

In fact, Carlos was so pleased to be a part of the shop’s crew that he encouraged his brother Milton to join the shop in the late ‘90s.

After starting out at the shop by cleaning cars, Milton soon became a valued body tech. His arrival at Hanagan’s marked a dramatic change in his career goals: Although he studied to be a mechanic, this custom car enthusiast actually pursued a four-year career in restaurant management before the allure of working on autos finally drew him back to his original passion.

“You have to love what you do,” he says.

“If you don’t like what you do, this is the wrong career. I love working on cars.”

Although veteran technician Steve Alper has been with Hanagan’s Auto Body for nearly 40 years, his history with the Hanagan family

Hanagan's Auto Body is home to some of the industry's best and most loyal technicians.

Front left to right: Milton Murillo, Carlos Murillo. Back row: Manuel Mejia, Big Jim (owner), Brian Cho and Steve Alper.

September 2014

39

COVER STORY

dates back even further. He grew up right across the street from the family’s house and shared the same junior high school bus stop spot with Jim’s son Timmy. After spending the first four years of his career moving between various shops, he finally found his perfect fit at Hanagan’s in 1976. All these years later, he sees the Hanagans more as friends than employers.

“They’re not really ‘bosses;’ it’s not like someone who is constantly on you, telling you what to do,” he explains. “The jobs always look good, so there are no complaints there.”

Looking back on his career, what does Alper – who will soon celebrate his 60th birthday – view as the greatest thing about spending a life in the collision repair field?

“Taking something that’s crashed and making it look nice,” he replies. “I’ve always liked that.”

A 15-year veteran of Hanagan’s, Manuel Mejia was already a seasoned body tech in his native El Salvador when he moved to the United States in 1990. In addition to welcoming the opportunity to showcase his skills on any

40

September 2014

Taylor's Auto Body carries on into its second generation of business.

type of vehicle that arrives at the shop, he truly enjoys and appreciates the chance to be a critical part of an always-thriving business.

“They’re very nice,” he says of the crew.

“We all work together to make the business grow.”

Considering the spirit of family togetherness evident at the shop, it comes as no surprise that other Hanagans are actively involved in guiding the business into the future. With Jim semi-retired these days, Hanagan’s Auto Body moves forward thanks to his sons Timmy, Tony and Jimmy. In addition, the shop is now in its third generation, as Jimmy’s son Sean and

Tony’s son Anthony currently handle the IT and customer service side of things.

Driven by multiple family members and a firmly established collision repair team, Hanagan’s Auto Body shows what is possible when owners and technicians work together in a spirit of mutual respect and a commitment to serving consumers.

As Carlos Murillo says, “The way they treat me here is excellent, and we have work constantly. I don’t need to be at another shop.”

Carrying the Torch Seventeen years ago, Chris Taylor started working full time as an estimator at his parents’ body shop, Taylor’s Auto Body in Charlottesville. Even then, the 23-year-old knew that his professional life would involve the daily workings of the family business, which was founded in 1986.

“I wanted to be home and I liked living here in the area, so it seemed like a logical step,” he says. “I grew up in it, so it was something I had a lot of knowledge about, even at a young age. Once I thought about it, I wanted to

carry on what my mom and dad had already done.”

Fast-forward to 2014, and Chris is indeed overseeing the daily success of the operation.

One of the busiest facilities in the region, Taylor’s Auto Body is rarely without work – even without the benefit of multiple DRP arrangements. While some shops depend on insurers to send work through the door, Chris utilizes TV, radio, social media and print advertising to let people know about the shop’s services.

“People aren’t told to come here,” he says. “We have to sell ourselves.”

Once a customer is enticed to give the 17,000-square-foot shop a try, Chris and his 21-person staff earn that vehicle owner’s trust by maintaining a strong focus on efficiency and quality.

“We keep everything in-house so we can control it,” he says. “We have our own alignment machine, wheel balancer, tire mounting machine and we do all of our air-conditioning work here. We also have scanners to do all of our diagnostics.”

An early adapter of waterborne, Taylor’s

Auto Body has followed a “green” mindset since 2009.

“People really see that we’re conscientious about that,” Chris says. “We try to take good care of our employees and the environment. We recycle everything here, and we use waterborne paint. Obviously, as soon as the waterborne clear comes out and is ready, we’re going to be ready to try that, too.”

In addition to maintaining a Green philosophy, Taylor’s Auto Body keeps its finger on the pulse of changing repair trends and requirements. Already aluminum-certified for Corvette, the shop is currently working to get up to speed in time to service the 2015 Ford F-150s when they start hitting the road later this year.

Looking ahead, there is little doubt that Taylor’s Auto Body will continue to thrive as a family-owned and -operated establishment.

Chris’ parents Doug and May still work at the shop part time, while his sister Marcie Llera handles everything from advertising and marketing to invoicing and scheduling. Chris’ aunt, Melissa Mahon, has served as the shop’s office manager for the past 25 years.

Although this industry has its fair share of ups and downs, Chris Taylor is pleased to be able to move his family and business into a bright future.

“My mom and dad basically started from nothing, so I’m just very proud to be able to carry on and still service customers they did,” he says. “We’re a small business in a small town; we’re really well known and a lot of people come here. It’s really gratifying.”

An Amazing Education Very few people get to learn from some of the best in the industry, but that’s exactly what past WMABA Board member Edward Vallejos did when enjoyed stints at Bevis Auto Body (with owner and former WMABA President Randy Bevis) and Craftsman Auto Body (with industry legends Frank Krauss and Jerry Dalton) early in his career. With the values and skills he picked up from these special experiences, Vallejos struck out on his own on Labor Day 1976 and opened his first shop, Professional Auto Paint & Body.

The years that followed saw Vallejos (who

Ed Vallejos (right) and Warren Aldridge have built Professional Collision Centers into one of Virginia's most popular collision repair institutions.

Courtesy of Professional Collision Centers/photos by Mark Gilvey.

September 2014

41

COVER STORY

became a WMABA member at the behest of then-Executive Director Sheila Loftus) grow his professional reputation throughout the community. In 1984, he partnered with Warren Aldrich, an attorney/CPA who added substantial legal and financial skills to the company. The business was relocated from Newington to Springfield in 1981, then to Woodbridge in June of 1986, where it grew to a multimillion dollar sales organization. In 1999, Vallejos and Aldrich dedicated a brand-new, 23,000-square-foot, multimillion dollar cutting edge facility located on Route 1 (Jefferson Davis Highway) that sits on 3.5 acres. Later, they opened a new 15,000square-foot, state-of-the-art-facility in Stafford that sits on two acres. Each step of the way, Vallejos has ensured success by maintaining strong communication with Aldrich and his staff, which now totals 70 people. Additionally, he makes sure his facilities, collectively known as Professional Collision Centers, keep up with technologies including aluminum repair. Currently, he plans to add an aluminum room to his business in the not-too-distant future.

“Lack of adaptability is one of the big reasons why a lot of shops don’t make it,” he says.

“You want to make sure you’re on the leading edge.”

When not making sure his businesses have the equipment and expertise needed to get the job done right, Vallejos strives to ensure that his locations are clean and aesthetically pleasing, especially to female customers.

“If you come to our two locations, you’ll say, ‘Wow, this is not a body shop!’” he says.

“You would never know we fix cars.”

Three years ago, Vallejos took a major step forward in the managerial side of things by bringing in professional business coach Donna Blackman, who has added tremendous value to the shops’ operations.

“She keeps us active, moving forward and on our toes,” he offers. “[Having a coach] makes you more accountable to yourself and to your team.

“It’s very dangerous for you to sit still and fall asleep at the steering wheel,” he adds.

“You’ll wake up in a couple of years and say, ‘Oh, wow, I’m so far behind. I have to catch up!’

So that’s why we said we needed to have a business coach.”

42

September 2014

Like many repair professionals, Vallejos has had the pleasure of seeing his children find success in the field. His son Todd has been a technician at the Woodbridge location for 20 years, while his other son Ryan serves as a general manager at Fairfax Collision Center in Chantilly.

With nearly four decades in the trade behind him, Vallejos still looks forward to each day as an opportunity to better his business and add something new to his experiences as an auto repair professional.

“Every day, I look at change and how we can do things better,” he says. H&D

Executive Director’s Thoughts The histories of those repairers in WMABA really have shaped not only their stories, but the story of the association. It’s been a humbling experience to serve those who have dedicated so much of their life to the betterment of their business and this industry. - Jordan Hendler

DARCARS Director Gary Higgins Passes On July 26, the WMABA community lost one of its most dedicated industry members with the passing of Gary Higgins, who served as fixed operations director of the DARCARS Group since the mid-1970s. He was 63.

In a special memorial written by the Washington Area New Automobile Dealers Association (WANADA), the organization paid tribute to Higgins’ commitment to making the industry better for those around him:

“[Higgins] recognized what he believed to be the single most significant component for success in his world, namely, the people on staff to get the job done. This mentality clearly formed the basis of his consistent and continual support of career training, education and recruitment of young people into the field of auto technology, tangibly evidenced by his longstanding leadership of the Montgomery Students Automotive Trades Foundation Mini-Dealership Program, his co-founding of WANADA’s ADEI Technician Development Program at Montgomery College, his personal involvement in Toyota’s T-10 Program and the mentoring he did through Toyota at the AutoTech Center at Ballot High School in DC.” Higgins is survived by his wife Connie, daughter Meghan and sons Bryan, Kevin, Collin and Martin. WMABA and Hammer & Dolly offer the Higgins family our deepest condolences. H&D September 2014

43

44

September 2014

September 2014

45

46

September 2014

September 2014

47

PUBLISHER’S

MESSAGE

Thomas Greco

(973) 667-6922 thomas@grecopublishing.com

CHANGE

©thinkstockphoto.com/rafal_olechowski

Change can be good. Change can be scary. Change can be difficult. Change can be easy. Of course, change can be any and all of those things combined.

There are those who welcome change. To be honest, I have never been one of them. But in order to not only succeed, but also survive in today’s business world, you have to change. Or else you get left behind.

The first thing I’d like to change is to somehow grow back some of the hair I had when the photo at the top of this page was taken. But seriously, like the automotive repair industry, the publishing industry is changing at what seems like a breakneck pace. Although our “bread and butter” remains our print edition, over the last five years we have expanded our presence on the web through www.grecopublishing.com (where you can find digital editions of Hammer & Dolly to read on your phone, tablet or computer), our H&D e-newsletter and social media such as Facebook and Twitter.

Let’s face it. Time is limited and so are attention spans. People want to be able to access their favorite magazines, books, music, movies, TV shows, etc. at their fingertips and every day some new form of technology makes that happen in a faster and more efficient way.

So we at Greco Publishing, like you in your shop, have to be prepared to adapt. And change. If not, you might as well take advantage of all our wondrous new government entitlements.

I was raised by a second-generation Italian-American bricklayer. He didn’t believe in

48

September 2014

government entitlements. He taught us to work hard and earn a living. He believed in the “American Dream.” Now, I’m not foolish enough to think 2014 is anything like the ’40s or the ’50s or even the ’80s. Hard work doesn’t guarantee anything these days, and that’s sad.

But it’s no reason to give up or stay stagnant. You have to change.

This month, we made a major change at Greco Publishing by promoting our Vice President/Managing Editor Alicia Figurelli to Vice President/Director of Sales. Alicia is a familiar face. You’ve seen her at WMABA meetings. You’ve seen her at SEMA. You’ve seen her in these pages. She has been an integral part of Hammer & Dolly for nearly a decade and is as responsible as anyone for the success we have enjoyed since we began publishing H&D in 2007. Now she gets the chance to make Hammer & Dolly even better, as we adapt and change to face the future of automotive repair trade publishing along with the industry we represent.

It’s things like this that quell the fear of change in me. In fact, it makes it pretty damn exciting. Embrace it. H&D

September 2014

49

ADVERTISERS’ INDEX Alexander & Cleaver............................16 Alexandria Toyota ................................42 All Foreign Used Auto..........................25 American Honda Motor Co. ................4

Audi Group ..........................................11

Axalta Coating Systems ......................OBC

BMW Group ........................................26-27 BMW of Bel Air ....................................IBC BMW of Fairfax....................................3

BMW of Rockville ................................IBC BMW of Towson ..................................IBC CAPA ..................................................8

Car-part.com........................................46

Chesapeake Automotive Equipment ..50

Empire Auto Parts................................17 Ford Group ..........................................15 Future Cure ........................................43

GM Parts Group ..................................47 Hendrick Honda ..................................46

Honda Group ......................................14 Hyundai Group ....................................19

Koons Ford ..........................................37 Malloy Auto Group ..............................9

Mazda Group ......................................21 MINI Group ..........................................29

MINI of Baltimore County ....................IBC Mitsubishi Group..................................36 Mopar Group ........................................18

Nissan Group ......................................45 NORTHEAST® 2015 ..........................6

O’Donnell Honda ................................25 Packer Norris Parts ............................13

Porsche Group ....................................32

PPG ....................................................IFC P&L Consultants ..................................37 Russel Toyota ......................................17

Safety Regulations ..............................42 Sherwin-Williams ................................7

Steck Manufacturing............................50 Subaru Group ......................................23

Toyota Group ......................................33 VW Group............................................49

50

September 2014

September 2014

51