Texas Automotive February 2019

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The official publication of the Auto Body Association of Texas and the Houston Auto Body Association

February 2019 $5.95

THE VALUE

Why Social Media

of MEMBERSHIP

Matters

ABAT and HABA Members Share Their Experiences

A Total Loss

Page 18

Tutorial

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Contents

February 2019

on the

cover

18

THE VALUE

ABAT BOARD OF DIRECTORS

Vice President Brandon Dodd Lloyd's Body Shop brandon@lloydsbodyshop.com (903) 734-5175

President Burl Richards Burl's Collision Center burl@burlscollision.com (903) 657-8082

of MEMBERSHIP ABAT and HABA Members Share Their Experiences

Chairman of the Board Corey Pigg S&W Expert Collision Repair coreyp@swcollision.com (936) 634-8361

By Joel Gausten

Treasurer David Osburn South West Collision Center dosburn@southwestautogroup.com (855) 395-2720 Executive Director Jill Tuggle jill@abat.us (817) 899-0554

ABAT BOARD MEMBERS

DEPARTMENTS

6 10 12 15 21 24

Official publication of the Auto Body Association of Texas and the Houston Auto Body Association

8

PRESIDENT’S MESSAGE

By Burl Richards

Why Social Media Matters

EXECUTIVE DIRECTOR’S MESSAGE

By Jill Tuggle

See You on the Road

Kevin Ellison Westway Ford kellison@vtaig.com (972) 584-9033

Chad Neal Innovative Collision Equipment Chadwneal@yahoo.com (817) 527-2143

Chad Kiffe Berli's Body & Fine Finishes chadk@berlisbody.com (512) 251-6136

Darrell Smith McDaniel’s Quality Body Works Inc darrell-mcdaniels@sbcglobal.net (903) 753-5391

Dean Griffin Moritz Dealerships dean.griffin@moritzmail.com (817) 696-2000

Robert McDorman Auto Claim Specialists rmcdorman@autoclaimspecialists.com (817) 756-5482

EDITOR’S MESSAGE By Joel Gausten “YouTube-Certified” LOCAL NEWS Bigger and Better Than Ever: ABAT Partners with Greco Publishing for 2019 Texas Auto Body Trade Show

Manuel Rubio Miracle Body & Paint manuelr@miraclebp.com (210) 843-9564

Mike Williams All Star Collision Center sales@allstarcollision.us (903) 589-3160

Eric McKenzie Park Place Dealerships emckenzie@parkplace.com (214) 443-8250

HABA BOARD OF DIRECTORS ASK THE EXPERT By Robert L. McDorman Exploring Total Loss Threshold, Total Loss Formula and Salvage INDUSTRY ADVICE: ASK MIKE By Mike Anderson Why Are OEM-Approved Scan Tools the Best Option?

INDUSTRY FEATURE By Joel Gausten Drama, a DRP and a Re-Repair Disaster

President John Kopriva Kopriva Body Works jtkopriva@gmail.com (713) 923-4412

Vice President Ronnie Brush Westside Lexus Collision Center rbrush@westsidelexus.com (281) 584-2285 Chairman of the Board Greg Luther Helfman Collision Center gluther@helfman.com (713) 533-6226

PUBLISHER Thomas Greco / thomas@grecopublishing.com

ASSOCIATION NEWS 28 ABAT MEMBER PROFILE

SALES DIRECTOR Alicia Figurelli / alicia@grecopublishing.com

30 HABA NEWS

Berli’s Body & Fine Auto Finishes

29 ABAT MEMBER APPLICATION

31 HABA MEMBER APPLICATION

ADVERTISING SALES: Jill Tuggle / jill@grecopublishing.com CREATIVE DIRECTOR Lea Velocci / lea@grecopublishing.com EDITORIAL DIRECTOR Joel Gausten / joel@grecopublishing.com EDITORIAL/CREATIVE COORDINATOR Alana Bonillo / alana@grecopublishing.com

ADVERTISERS’ INDEX 300 Advantage ..........................................................11 AAMStraining.com ....................................................20 Auto Claim Specialists ............................................3 Beacon Equipment Resources ..............................20 Capital Paint & Refinish............................................27 CAR-O-LINER Southwest ........................................IFC Chevyland ..................................................................30 Classic Chevrolet Sugar Land................................10 Classic Chevrolet Grapevine..................................11 Dallas Dodge..............................................................OBC

OFFICE MANAGER Donna Greco / donna@grecopublishing.com

Findpigtails.com ........................................................30 FinishMaster ..............................................................7 Glick Automotive Enterprises ................................26 Innovative Collision Equipment ............................14 Phantom Equipment & Hydraulic Repair ............9 ProLine Tool & Supply..............................................7 Reliable Automotive Equipment............................17 Scott Portfolio ............................................................23 Spanesi ........................................................................14 Tasco Auto Color ......................................................11

4 FEBRUARY 2019 Texas Automotive

Published by: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963

www.grecopublishing.com TEXAS AUTOMOTIVE is published monthly and is sent to ABAT and HABA members free of charge. Subscriptions are $24 per year. TEXAS AUTOMOTIVE is published by Thomas Greco Publishing Inc., 244 Chestnut St., Nutley, NJ 07110. The editorial contents of TEXAS AUTOMOTIVE are copyright © 2019 by Thomas Greco Publishing Inc. and may not be reproduced in any manner, either in whole or in part, without written permission from the publisher and/or editor. Articles in this publication do not necessarily reflect the opinions of Thomas Greco Publishing Inc. Stock Images courtesy of www.istockphoto.com.

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5 FEBRUARY 2019 Texas Automotive

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President’s Message

Why social media matters It’s funny how much things can change in just a few years. In many ways, 2009 felt like the Stone Age.

H

How many of your shops had a Facebook page back then? How many of you were members of industry-related online groups? Exactly. But things have definitely changed. As a shop owner and an industry representative, I make it a point to spend at least a little time each day on Facebook and other social media sites to check in on how my collision repair colleagues – both here in Texas and in other parts of the country – are making out in their dealings with insurers, adhering to ever-changing OEM requirements/recommendations and maintaining a strong workflow, among other things. I often contribute

to online discussions by sharing my own experiences out there in the field. At the same time, getting involved online allows me to learn new things about how to be a more successful facility owner and association president.

A quick scroll through Facebook provides me with information that I can later use when an insurer comes in and refuses to pay for the necessary procedures we perform – and gaining that knowledge didn’t cost me airfare, miles on the road or a great deal of my time. e internet gives all of us an invaluable platform to express ourselves and pick up new things along the way.

Burl Richards ABAT President It’s one of the most critical tools we have in our industry today, and I encourage our members to take advantage of this free opportunity as much as possible.

Now, here comes a warning: Not everything you will encounter online is valuable – or even safe. ere are a lot of bad repairers out there sharing opinions and posting videos of their “work” that could get you in a lot of trouble if you take what they say as gospel. Just because everybody has a voice doesn’t mean you should believe everything you read. Use discretion and proceed with caution.

Follow pages by auto body associations and established regional/national industry leaders. Read comments by known educators and advocates. Always confirm whatever you see online with the OEM’s official documentation before following someone’s “advice.” If you follow these simple guidelines, your online experience can broaden your horizons in inspiring ways. Please feel free to reach out to me if you need insight on where to go on Facebook, Twitter or your preferred social media platform for a real-world experience you can trust.

TXA burl@burlscollision.com

6 FEBRUARY 2019 Texas Automotive

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Executive Director’s Message

SEE YOU ON THE ROAD

L

Last month, the ABAT Board of Directors had our first-ever in-person meeting. While the monthly Board meetings are usually done virtually, 14 directors from across the state met in College Station to discuss important topics. We pored over the draft of our House Bill, voted on meeting dates and brainstormed ways to reach more shops and increase much-needed membership. e meeting was highly productive, and I am excited to share upcoming events with you all.

If you’ve been curious to find out what ABAT is all about, the best thing you can do is come to a regional meeting. ese meetings are free and educational, and we guarantee you will take some bit of information back to your shop that will make you more profitable immediately. We are

committed to ensuring that you will not be trapped in a sales pitch or be pressured to join ABAT. e quality of our messages is what keeps people coming back for more, and they almost always do. We do not sit around and complain about the industry or bash insurance companies, DRP-heavy shops or MSOs. You have nothing to lose if you show up and it’s not for you. But if it is for you, you’ll realize you’ve been leaving so much on the table.

Check out our Calendar of Events and stop by a meeting near you!

Contact me directly at jill@abat.us for more information.

TXA

Jill Tuggle ABAT Executive Director

ABAT CALENDAR OF EVENTS February 4 - 5:30pm Zero One Ale House 20 West Beauregard, San Angelo, TX 76903

jill@abat.com

Get to know ABAT/Profit Opportunities in Plastic Repair February 5 - 10am Anne Marie’s 12475 Starcrest Dr. San Antonio, TX 78216

PPG Sponsored - Leading Change Luncheon featuring Mike Jones.

(Body shops only)

February 6 - 10am Marriott South Austin 4415 South IH-35 Austin, TX 78744

PPG Sponsored- Leading Change Luncheon featuring Mike Jones (Body shops only)

February 12 State Capitol Austin, TX “Collision Day” at the Capitol. Bringing awareness to our House Bill and collision industry issues April 11 Dallas, TX TBD May 2019 Dallas, TX Annual Skeet Shoot september 20-21, 2019 Fort Worth, TX Texas Auto Body Trade Show

8 FEBRUARY 2019 Texas Automotive

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9 FEBRUARY 2019 Texas Automotive

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Editor’s Message “YouTube-certified” After reading Burl Richards’ President’s Message for this issue, I was inspired to share some thoughts on what I encounter online in regard to the collision repair industry.

B

Burl is absolutely right; the internet is an extraordinary educational tool for the auto body community. ere are a lot of brilliant minds out there doing amazing things on behalf of this profession, and you should absolutely spend time on Facebook and other sites every single day. However, I’m quick to echo Burl’s warning about following the wrong sources of information.

Not too long ago, my vehicle was involved in a minor collision that necessitated the replacement of a fender.

Curious to see what I could expect from the process, I entered my year/make/model and “fender replacement” into Google. e results in-

cluded a link to a YouTube video of this exact procedure being performed. I clicked that link…and proceeded to watch in horror as the two yahoos working on the car “massaged” an aftermarket fender into place. e number of views this video has received? Just under 70,000. You know who watches a lot of YouTube? Consumers. You know who else watches it? Teenagers – the exact demographic this industry is trying hard to attract. is is the kind of information that’s out there – and the kind of garbage that can bite you in the you-know-what if you follow it.

Take Burl’s advice: If you’re going to use the internet as a source of knowl-

Joel Gausten Editor

edge and training, make sure you’re utilizing the best resources. I’ll add to that by asking everyone reading this to do your part in combatting the misinformation and nonsense that is corrupting the industry’s message. Follow the OEM – always. Make sure your customers know why this is important.

And hey, maybe even take the time to produce your own YouTube video explaining what safe and proper repairs should look like. Lord knows we need to see a lot more of that in cyberspace.

TXA joel@grecopublishing.com

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Local News

By Alana Bonillo

Bigger and Better Than Ever: ABAT Partners with Greco Publishing for 2019 Texas Auto Body Trade Show ABAT is pleased to announce it has partnered with omas Greco Publishing, Inc. (TGP) to manage the upcoming 2019 Texas Auto Body Trade Show.

Since its inception four years ago, the Trade Show has grown to become the premier event for Lone Star State auto professionals. is new relationship with TGP, event manager of the NORTHEAST® Automotive Services Show in New Jersey, will enable ABAT to greatly expand what it has already accomplished with past events. ABAT has been working closely with TGP since they partnered to launch Texas Automotive in 2018.

“We are very excited!” comments ABAT President Burl Richards. “e

ABAT Board sees this as a new chapter going forward, and we are enthusiastic about what TGP will bring to the table.”

“We are thrilled to be involved with the show and ABAT,” adds TGP President omas Greco. “We have had much success with our partnership on Texas Automotive. We plan to achieve the same level of success with this show – making it the can’t-miss event for the Southwest.” e very first Texas Auto Body Trade Show was put together in roughly three months and drew about 100 attendees, which Richards found very encouraging.

From there, it gained momentum.

Richards credits Janet Chaney (Cave Creek Business Development) for being

LET US TURN THEM AROUND!

Contact Texas Automotive Sales Representative Jill Tuggle

(817) 899.0554

JILL@GRECOPUBLISHING.COM 12 FEBRUARY 2019 Texas Automotive

instrumental in helping the show grow. He adds that none of it could have been achieved without the hard work and dedication of the ABAT Board. e 2018 Trade Show was the biggest yet, boasting some of the industry’s top vendors, in-depth educational discussions and leading speakers (such as Texas-based attorney Todd Tracy). Richards anticipates an even greater response from industry members for the upcoming 2019 installment.

“With TGP’s experience – and knowing what they are capable of – it’s going to be a great win for everyone. Once we get new attendees to the show, they will want to come every year. ere is just so much value education-wise – and with all the technology of today, it’s a great opportunity for vendors to show new equipment.”

“We are excited to add omas Greco Publishing to our trade show planning team,” agrees ABAT Executive Director Jill Tuggle. “ey have an excellent reach with their publications and their work with the NORTHEAST show. We want our show to reach that same level, and we are confident that TGP will take it to the top.”

Like Richards, Tuggle credits Chaney for helping tremendously in getting the Trade Show off the ground. Chaney will continue to work with the ABAT team and TGP during this new era.

“We are diving in full force,” shared Greco. “We will work closely with ABAT, Burl, Jill and Janet to make this the best show possible.”

TXA

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Ask the Expert

By Robert L. McDorman

Exploring Total Loss Threshold, Total Loss Formula and Salvage Dear Mr. McDorman: I own a collision facility in Beaumont. I read your December 2018 article, “Please Help Me Understand Why the Insurance Carrier Totaled a Repairable Vehicle.” In the editorial, the individual who contacted you said, “I’ve heard insurance adjusters make catty comments such as, ‘Good news for us; we totaled another one.’ We routinely deal with similar situations with total losses in our facility. When the insurance appraiser deems a vehicle a total loss, they will often tell us it is due to the salvage value being high. You wrote, “Texas is a 100 percent total loss threshold state, and it does not recognize the total loss formula to define what constitutes a nonrepairable or salvage vehicle.” What is the difference between total loss threshold and total loss formula? Also, if Texas is a total loss threshold state, why does the salvage value matter? ese are two great questions. Please allow me to answer them by both providing and explaining the two total loss formulas and offering examples. e result of each formula is used to calculate a damage ratio (percentage of loss to value), and a damage ratio greater than 100 percent is typically used to justify deeming a vehicle a total loss. e total loss formula method adds the total cost of the repair plus the salvage value of the vehicle. In the event the two are greater than the actual cash value, the vehicle is eligible to be deemed a total loss. e total loss threshold method compares the actual cash value of the vehicle to the allowable repair cost. In the event the allowable repair cost is less than the actual cash value (and

there are no missing or unrepairable components and the vehicle can be safely returned to its pre-loss OEM condition), the vehicle should be eligible for repair. In my experience, the total loss formula almost always benefits the insurer by more often deeming a safe repairable vehicle a total loss. I will give you an example with a claim we recently handled where a carrier deemed a safe, repairable vehicle a total loss and tried to escape the liability of the OEM blueprint repair plan by using the total loss formula method.

Our client had a 2013 Infiniti G37 that the carrier deemed a total loss. e carrier offered a proposed perceived base value of $12,757 and valued the salvage at $3,300. e complete OEM blueprint to safely return the G37 back to its OEM pre-loss condition was $9,432. e carrier’s gross liability for this claim was the base value of $12,757, plus sales tax of $797 and less our client’s $250 deductible – totaling $13,304 plus storage, blueprint fee and other related charges.

Should the carrier deem this G37 a total loss and the client accept the proposed base value of $12,757 as the correct actual cash value, the carrier’s estimated liability would be $10,004 ($13,304 $3,300) plus storage, blueprint fee and other related charges.

Total Loss Formula (TLF): (Cost of Repair Plus Salvage Value) Greater an Actual Cash Value Equals Total Loss First, let’s look at the G37 under the total loss formula method. e cost to repair is $9,432, and the proposed perceived salvage value is $3,300. e sum of the two is $12,732. e proposed base value is $12,757. Under the total loss formula, the G37 is within $25 of being eligible to be deemed a total loss. e damage ratio is 100 percent.

15 FEBRUARY 2019 Texas Automotive

Robert is a recognized Public Insurance Adjuster and Certified Vehicle Value Expert specializing in motor vehicle-related insurance claim resolution. As the general manager of Auto Claim Specialists, Robert expertly leads this National Public Insurance Adjuster Agency, which is currently licensed in 11 different states and specializes in providing automotive-related claim liquidation techniques, strategies and motor vehicle valuation services to all parties, including individual consumers, body shops, auto dealers, repair facilities, towing and storage operations, lenders, finance companies, banks, legal professionals, governmental agencies and others. The firm’s consistent success can be attributed to Robert’s 35+ years of automotive industry knowledge, practical hands-on experience and multiple certifications, including licensure by the Texas Department of Insurance as a Public Insurance Adjuster. Auto Claim Specialists clients can absolutely trust that they will be provided with analytical, sophisticated, state-of-the-art, comprehensive, accurate, unbiased and up-to-date data and information that all parties can rely upon as both factual and objective.

Robert can be reached at (800) 736-6816, (817) 7565482 or asktheexpert@ autoclaimspecialists.com.

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Ask the Expert

Total Loss reshold (TLT): Allowable Repair Cost Greater an Actual Cash Value Equals Total Loss Now, let’s look at the G37 under the total loss threshold method. e repair cost is $9,432. Texas allows the refinishing time, paint materials and sales tax to be deducted from the repair cost prior to the damage ratio calculation. e $9,433 repair cost included refinishing time ($1,615), paint materials ($1,098) and sales tax ($466). e allowable repair cost under the Texas Transportation Code is $9,432 - $1,615 - $1,098 - $466 = $6,253. With a proposed base value of $12,757 and an allowable repair cost of $6,253, the damage ratio is only 49 percent. As previously mentioned, Texas is a 100 percent total loss threshold state.

By using the total loss formula, the carrier can deem the vehicle a total loss and lower its liability. e carrier’s assessed liability is limited to just $10,004 plus storage, blueprint fee and other related charges, allowing them to escape the OEM blueprint repair plan, rental expense and other costs associated with a safe repair. Also, any excess recovery over the expected $3,300 salvage cost would reduce the carrier’s liability even further.

In the total loss threshold example, the carrier’s liability is for the initial repair cost of $9,432 plus rental expense and the extremely likely addition of supplement charges. e total carrier liability would easily exceed $10,500.

You can clearly see why the carrier always pushes to use the total loss formula method when calculating a total loss. e greater the salvage value of the vehicle, the lower the assessed liability for the carrier and the greater the benefit of deeming a reparable vehicle a total loss. However, please note that in either total loss calculation method, the ACTUAL CASH VALUE OF THE VEHICLE IS PARAMOUNT. Our subsidiary, Vehicle Value Experts, can help your client be assured their claim is being valued correctly.

In most insurance policies, these types of loss disputes can be resolved through an appraisal process. Using the Appraisal Clause, loss disputes can be resolved relatively quickly, economically, equitably and amicably by unbiased, experienced and independent third-party appraisers instead of through costly and timely mediation, arbitration and litigation.

Over the years, we have handled thousands of complex Appraisal Clause assignments. We have most insurance policies in our library. Please call me should you have any questions relating to the Appraisal Clause process.

I thank you for your question and look forward to any follow-up questions that may arise.

Sincerely, Robert L. McDorman TXA

16 FEBRUARY 2019 Texas Automotive

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Cover Story

THE VALUE of MEMBERSHIP ABAT and HABA Members Share Their Experiences This year is going to matter.

From a massive legislative push at the Texas State Capitol to a dramatic increase in both membership and education/training initiatives, the Auto Body Association of Texas and the Houston Auto Body Association have entered their most critical and active eras – and their members are taking notice and leading the way.

For current HABA president and second-generation shop owner John Kopriva (Kopriva Body Works), becoming active in association life was a matter of necessity. Joining the family business in 1988 after the passing of his father, Johnny, Kopriva soon found himself facing many of the same obstacles that have plagued repair professionals for decades.

“My dad had told me, ‘As long as I’m alive, you’ll never come into this business!’ I asked him why, and he said, ‘e business you’re in [banking] is respectable, you’ll make more money and have less headaches there than you would in this industry – and you’ll have less resistance and you’ll be dealing with a different class of people.’ He wasn’t talking about our customers; he was talking about all the pushback from the insurance companies. I never really realized that until I actually went into the business. I sat down with my mom and asked, ‘Who represents us? Is there anyone here we can go to?’ She said, ‘Basically, there’s nobody locally.’”

Before long, Kopriva was putting in the time and effort to create the initial incarnation of what is now HABA. His past experience in the military and the banking industry helped him instill a sense of structure

18 FEBRUARY 2019 Texas Automotive

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By Joel Gausten

into the early days of the association, which has helped HABA blossom into one of the most active industry groups in the South-Central region. ree decades after first deciding to grow a group committed to serving the industry’s needs, he remains a firm believer that HABA plays a critical role in making the collision repair field stronger.

“I did it for a reason. I felt like everybody basically repaired cars the same way, but many shops were doing it better than others. I thought, ‘Why not get everybody on the same page and try to bring along the shops that aren’t doing it so well and bring them up to standard?’” e new year finds HABA engaged in the most active time in its history. In addition to actively promoting legislation (see page 30), the group is currently solidifying a hefty slate of training seminars and member/sponsor appreciation events throughout 2019.

Additionally, it maintains a fruitful collaboration with the non-partisan citizen advocacy organization Texas Watch (texaswatch.org). As Kopriva enters his fourth term as president, he urges his fellow repairers in Houston and beyond to join the push for a better profession.

“We need you. You may think your presence is unnecessary and that someone else will do it for you, but you need to get involved and be a part of the process.”

Of course, part of that process includes leaving the four walls of your business and starting new relationships with industry peers. is has been a major part of David “Ozzy” Osburn’s ongoing success as an ABAT participant and Board member. “e old days of, ‘Hey, the shop down the street is my enemy. I hope those rotten suckers die!’ are gone. We’ve got to reach out to those people, take them to lunch, get on a first-name basis with them, communicate with them and not be scared to reach out to them to get some help or shape the same direction so we’re all fighting the same cause.”

A fixture of ABAT since the very first official meeting, Osburn was one of many area professionals who helped establish

the group’s presence in North Texas. As manager of SouthWest Autogroup Collision, he does all he can to attend as many ABAT-sponsored training events as possible.

“Education is number one. I can’t put a value on the education I’ve received by being involved with ABAT. at’s the most important part of it to me.”

Looking ahead, he is hopeful that ABAT and HABA will continue their individual and collective work on behalf of collision community members and the motoring public.

“Legislatively, we need more boots on the street and more people fighting for the same cause. Also, [we need to] make sure that people are repairing cars properly. We all revert back to the John Eagle lawsuit; to me, that was a gamechanger for the industry.”

With ABAT and HABA succeeding in providing the Texas automotive scene with a genuine voice in the Legislature and beyond, the future for both groups and their ever-expanding memberships looks incredibly bright.

Above all, making association dues a worthwhile investment comes down to rolling up your sleeves and getting to work.

“Everybody thinks, ‘Oh, well somebody else will take care of it.’ ey just don’t realize that ‘someone else’ is [a small number of ] guys,” offers Greg Luther (Helfman Collision Center), a 20year industry veteran who currently serves as HABA’s chairman of the board. “e industry needs a lot of help. ere are too many forces working against the individual shop to perform a proper repair and be thoroughly compensated for it.”

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Fortunately, Luther knows firsthand how irreplaceable association membership can be. Comparing his first decade as a repairer without HABA to his past 10 years as an active participant, he believes the benefits far outweigh the dues.

“During the second half of my career, I’ve focused more on the safety aspect and a complete, proper repair. I think it’s one of those ‘you don’t know what you don’t know’ scenarios. I thought I was doing the right thing; I thought that every car was being repaired the way it should be repaired. But getting involved with other guys who were doing it better than me [showed me] I didn’t even know what I was doing in reality. I was coming to work every day and taking care of my customers – so I thought. But at the end of the day, I wasn’t providing them with the service or repair they were actually owed.”

Still energized by the recent success of HABA’s Fall Conference, Luther is thrilled to see HABA expand its horizons and plot an array of special activities for 2019.

“We’re doing everything we can to schedule classes and meetings and work with legislators and other associations around the state. Areas that don’t have an official association are reaching out to us wanting to start something.”

With ABAT and HABA succeeding in providing the Texas automotive scene with a genuine voice in the Legislature and beyond, the future for both groups and their ever-expanding memberships looks incredibly bright. Although every auto body association out there wants to attract new members, it’s equally important to make sure those new members stay. Osburn has some clear and simple advice for new recruits hoping to get the most out of the experience.

“Come to all of the meetings. Come to the Trade Show. Reach out to some folks who are in your market. Get their phone number and email address, and start sharing information and communicating back and forth.”

TXA

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Industry Advice: ASK MIKE Why Are OEMApproved Scan Tools the Best Option?

At the August 2018 Collision Industry Conference (CIC) in Atlanta, industry consultant and former shop owner Mike Anderson (Collision Advice) publicly disagreed with a presenter’s endorsement of aftermarket scan tools, citing potential telematics issues when they are used on vehicles equipped with systems such as OnStar and Toyota Safety Connect, which OEM tools detect for disabling during a repair. This month, we “ASK MIKE” to elaborate on his position. We at Texas Automotive hope you find this 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 subsequent issue.

Texas Automotive: You’ve taken a public stand in support of OEM-approved scan tools. Why do you believe these tools provide the best opportunity for technicians to perform a safe and proper repair?

Mike Anderson: Some people don’t like my insights into this, but I feel strongly about it.

When someone says to use an aftermarket scan tool, are they also saying that if Ford says I have to use a certain rivet gun that it’s okay to use another one? What about when Audi says to use a certain welder? You have to remember that Ford and Audi tested that equipment. eir engineers have done validations on that equipment for accuracy.

I have a hard time when people say it’s okay to use an aftermarket scan tool but that they have to use a certain welder or rivet gun. I work directly with several car manufacturers, and I have personally scanned vehicles with aftermarket tools versus OEM. ere is a difference.

I was in a shop recently that had a car come in with 17 miles on it. e customer bought it brand new and wrecked it pulling out of the dealership. You’re not going to find an aftermarket scan tool that is going to

be able to scan a vehicle that new. Generally, when OEM scan tools roll out, they’re usually six months ahead of any new releases. Aftermarket scan tools generally lag behind. Sometimes, when aftermarket scan tools don’t have access to the data, they provide phantom or ghost codes, so your tech is chasing down something that is not even legitimate. But we know that the OEM scan tool has been engineered and designed by that vehicle manufacturer. Aftermarket scan tools are not tested. I wouldn’t want that liability.

After I spoke at CIC, some people said that my comment about disabling OnStar and Safety Connect was far-fetched, but it’s not. My own sister’s car, which was a Lexus, went to a body shop. ey didn’t disable Safety Connect, and my sister got inundated with emails. At the end of the day, how do you disable that? You disable that by using a factory scan tool. If you don’t disable it and it generates an email to Lexus and then the customer receives emails, then you have to replace a back-up battery. General Motors did a manual process, which means I can manually disable OnStar. But I’m waiting for someone to show me how to utilize an aftermarket scan tool to manually

21 FEBRUARY 2019 Texas Automotive

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).

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Industry Advice: ASK MIKE

“

I think shops need to move away from relying on position statements.

They also need to put the scanning or initialization procedures as specific line items on the estimate, and they need to create a bulletproof file.

disconnect Safety Connect on a Toyota or Lexus. I just think this situation is a Pandora’s Box. TXA: Scanning really gained a lot of attention when the position statements started coming out a few years ago, but proper OEM scanning was a part of repair procedures long before that. As the scanning trend has grown thanks to these position statements, so has the insurance industry’s reluctance to pay for it. Based on the “Who Pays for What?” surveys you conduct with CRASH Network, how would you gauge where the insurance industry is right now as compared to three years ago in terms of understanding the need for this?

MA: I think we’re at a tipping point. We’re right there at the top of the mountain, and we can either backslide all the way down or push over the other side. One of the problems is that people are trying to lump everything into a labor time for scanning. I think you have to separate the diagnostic and research time from the actual scan time. To me, the researching and recording of the diagnostic trouble codes and the time to troubleshoot them should be totally separate from the actual scan time. e industry

needs to get more educated to understand there’s a difference between the diagnosis of the problem versus the recording of the diagnostic trouble codes.

TXA: As a former shop owner, how would you respond to an owner who says they are not performing scans because insurers won’t pay for them?

MA: When I had my shops, if the insurance company would not pay me to do what I thought was required for a safe and proper repair, I charged the consumer the difference. At the end of the day, an insurance company refusing to pay me to do a safe and proper repair did not remove me from the liability. I think shops need to move away from relying on position statements. ey also need to put the scanning or initialization procedures as specific line items on the estimate, and they need to create a bulletproof file. rough my consulting, I still work at shops at least once a week every other month. In this capacity, I’m still negotiating with insurers and putting my estimator hat on. I was recently writing an estimate on an Infiniti, and all I had was a grille. I could imagine an insurer telling me, ‘I’m not going to pay for you to scan this car. It’s just a grille.’ Well, I went into Nissan/Infiniti’s technical information and looked up the R&I grille procedure. I saw that there was a part attached to the grille that had a ‘onetime-use’ symbol – which is black circle with a white x. It turned out that it was an Intelligent Cruise Control cover. I selected that part and looked up the R&I procedure for that, and it told me that it required a calibration. When I clicked on that calibration, I saw that the vehicle needed a full tank of gas and a four-wheel alignment. I ended up with a huge supplement, and the insurance company looked at me like I had two heads. I had to take the time to show them what was needed to be done step by step. I got reimbursed, but I couldn’t just give them a position statement from Nissan/Infiniti and say, ‘I need to scan this car.’

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TXA

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Industry Feature

DRAMA, a DRP and a RE-REPAIR

DISASTER It’s one thing to write about collision repair, but it’s another thing entirely to experience the process firsthand. Well, I did exactly that not too long ago. And it was a complete nightmare.

Last October, I was inside my parked car checking messages on my phone when a driver attempting to park in the adjacent space grossly misjudged the distance and plowed into me. Although I was physically unharmed in this minor collision, my car suffered a dented-up driver’s side fender and front bumper. A repair was imminent. us began one of the most frustrating and ridiculous experiences of my life.

In all my years of covering the industry, I’ve never once heard of the company listed on the at-fault driver’s insurance card. at raised a red flag in my mind, so I immediately decided to bite the bullet and file a claim with my insurer, GEICO, instead of trying to deal with a company I’ve heard absolutely nothing about. After the police officer arrived at the scene and took our information, I went home and called GEICO to get things started.

Right off the bat, I knew I wanted my vehicle repaired at a GEICO Auto Repair Xpress shop. To be frank, the vast majority of “shops” I’ve seen where I live in New Hampshire (that is, when I’m able to actually see through their filthy windows) haven’t filled me with tremendous consumer confidence. Life up here can often feel a good 20 years behind the times, so I wasn’t about to allow myself to feel that same way as my car entered a bay. I figured that going with the closest GEICO shop – even when it was a good 35 minutes away from my home – would at least provide some level of checks and balances during my repair. After all, insurers track their shops’ KPIs, repair quality and customer feedback, don’t they?

To GEICO’s credit, the claims representative I got on the phone stressed that I did not have to use one of the company’s program shops. is message was immediately repeated to me the moment I met up with the GEICO appraiser at the Auto Repair Xpress location. It was refreshing to not feel pressured to utilize a certain facility, and I was very pleased that my insurer was so forthcoming in reminding me of my rights as a consumer.

Let’s talk about the shop. It is a very large repair facility that services a prominent dealership in the area. As soon as I entered the reception area, I spotted a display with brochures touting the benefits of I-CAR Gold Class and a sign extolling the virtues of vehicle scanning. e place was also quite clean, and the staff members I encountered were polite and professional. ings were off to a great start.

As a vehicle owner, I like to drive my cars – which are always economy models – until I can’t get another second of life out of

them. at’s why I currently drive a 2008 Toyota Yaris with 170,000-plus miles. To be fair, I didn’t expect my insurer to supply me with fresh and shiny OEM parts for a car of that age, and I went into the repair process expecting to receive high-quality used parts for the damaged fender and bumper. Aftermarket parts were not an option for me, especially since I’m in fairly regular contact with Todd Tracy these days and, well, you just don’t mess with Texas.

Of course, aftermarket is exactly what the GEICO estimator wanted to put on my car. He explained that since I had filed the claim through them, they would only pay for repair work up to the limits of my policy and pursue the most cost-effective way to do so.

First of all, I was not the at-fault driver; shouldn’t this (at least in principle) be a blank check since GEICO would later handle this through subrogation anyway? Second, shouldn’t the word “safest” replace “cost-effective” when an insurer lays out its plans for a repair? Why would an estimator actually tell a policyholder that they’re going for the cheapest option – especially with policy renewal time right around the corner?

In any event, I told the GEICO estimator that I would not accept any aftermarket parts on my vehicle unless he could provide me with the crash test data for those products. He responded by saying that the parts were certified. I still refused to accept them and told him I would gladly pay the difference for high-quality used parts. I also just happened to mention what I did for a living, and we had a nice chat about the then-upcoming SEMA Show.

Ultimately, he wrote to repair the bumper and replace the fender with a used part (but only if that part was “insurer quality.” ose words made me shudder.) e estimate came to $990.05 for a three-day repair, and I scheduled the work to begin the Monday after SEMA. Naturally, it wasn’t a three-day job. In addition to the usual supplement, the shop was unable to source a decent used fender in the area and eventually went with the new OEM option (which my insurer paid for, thus earning them a check in my plus column.) I finally got the call to pick up the car on the ninth business day – Black Friday. After running errands all day, I got to the shop as the

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By Joel Gausten

sun was beginning to set. I walked in the office, signed the necessary paperwork, paid the bill (via the money I had already received from GEICO – another positive checkmark)…and was then told to go find my car in the parking lot.

No walk-around with a customer service rep? No attempt to see if I had any follow-up questions once I got to my car? Very odd – and more than a little concerning.

Even with the limited outside light, I could see there were issues with my car as I approached it. For one thing, the edge guard above the front driver’s side tire was crooked, while the rubber fender trim wasn’t fully attached to the car and sticking out more than it should. Exhausted and cranky after a very busy afternoon (and with the shop minutes away from closing), I decided to let it slide for the time being and just get home for the evening. Turning my key in the driver’s side lock, I felt much stronger mechanical resistance than usual. I got in the car, started it, backed up about six inches and thought, “No! I’m going to get them to address these things now.” I drove the car back into the parking space, got out and locked the driver’s side door out of habit. Hmm…the resistance from the lock was still pretty strong. I then went to unlock it and…the door wouldn’t open. At all. Something was definitely wrong.

After going back to the reception area and waiting several minutes, the technician who washed the car – thinking that the lock might have frozen after it was brought outside – walked me out to my car to have a look at the door. e door still didn’t budge.

“I’m not sure what’s going on,” the tech said, shaking his head. “I’ve only been here a week.”

After later explaining the situation to the shop’s estimator (who presumably had a little more than five days’ experience at the shop), it was determined that the door had been put on incorrectly after being removed during the repair. e car was brought back in the bay (after a tech crawled in through the passenger side), and the issue was fixed just as the shop closed for the weekend.

Unfortunately, I was informed that I would have to come back the following week – and make a special 70-minute roundtrip – for them to fix the other issues I brought to their attention. is annoyed me, but I was tired and just wanted to get home to my evening commitments by that point. I agreed to come back in a few days.

I returned to the shop the following Wednesday; within an hour, the edge guard and fender trim looked better than before.

As I got in my car, I joked to the shop’s estimator, “Don’t take this the wrong way, but I hope I never have to see you again.”

We both chuckled as I drove away. at evening, the power in my neighborhood went out for several hours. As I drove down the road to run a quick errand, I couldn’t help but notice that my headlights seemed dimmer than

usual. I chalked it up to my pitch-black surroundings and forgot about it. Two nights later, I was back on the road at night – this time driving a long distance for something I couldn’t cancel.

Again, the lights looked strange. I pulled into the nearest rest area…and stared in disbelief at a completely dead driver’s side headlight – which of course had been removed and reinstalled by the shop during the repair.

“Furious” is the G-rated description of how I felt.

I spent the rest of the evening driving to and from my destination with my brights on whenever there wasn’t a passing car. Inevitably, I got pulled over by a policeman – who quickly got perhaps the most surreal excuse ever from anyone driving with a bad light. I showed him the invoice from the shop, which thankfully was still sitting on my passenger seat, and explained that the malfunctioning headlight appeared to be the result of the shop’s negligence. ankfully, he bought it, and I was sent on my way to stew, cuss and curse the shop and GEICO the rest of the drive home. e following day was a Sunday, and I made it a point to leave a message with the GEICO estimator to call me at 8am Monday morning. I gave him a brief summary of the unreal experience I had with the shop and that I couldn’t be unhappier with how I had been treated as a policyholder. After not receiving a call back by 9am the following morning, I called up the guy’s supervisor and left a similar message. Within minutes, the supervisor called me back. I started the conversation by saying, “is is the part of the job where you deal with an irate customer.” First, I told him that I found it odd that I never received a single follow-up call from GEICO in the six business days following the completion of the initial repair. I then told him I could give GEICO one last chance to get their shop in line or I could take up the matter directly with the New Hampshire Insurance Department. He assured me that a call to the Department was unnecessary and that GEICO would address the matter promptly. I scheduled another appointment with the shop for 8am the following morning. I later received a very apologetic call from my original GEICO appraiser, who said that his delay in calling me back was due to an unexpected family emergency. I accepted his apology and advised him to make sure his company did whatever would be necessary to make things right.

Once I arrived at the shop for yet another re-repair, I was greeted by a new GEICO rep who had no clue why I was there.

Wonderful. After filling him in, the shop’s estimator came out.

Poor guy. “is is the third time I’ve gone back and forth with you on this car,” I said. “Take six months to get this right if you need to; I don’t care. I don’t want to be bothered until this car is perfect.

If I have to come back here a fourth time, it will be in connection with a consumer fraud case.”

WHERE IS I-CAR IN ALL OF THIS?

This was a Gold Class shop.

Embarrassing. Talk about a stain on the I-CAR brand.

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Industry Feature After I received the requisite showering of “yes, sir,” I drove off in another rental car. Two days later, I picked up my car after an out-of-state work trip. e shop estimator explained that the light appeared to have failed due to age and corrosion.

(What an odd coincidence that it also happened to be the light that was touched by the shop’s techs during the original repair!)

While I initially assumed the shop was saying this to back out of eating the cost of the new items and the associated labor, I wasn’t charged a dime. As of this writing, I haven’t had a reason to return to the shop – which is good news for all parties involved. I hope I never have to drive in that shop’s direction again; I suspect they feel the same about me. I’m currently considering my future as a GEICO customer very carefully.

What began as a $990.05/three-day repair turned into $1,596.14, 11 days and three re-repairs. What a joke. I’m not going to kid myself or anyone reading this and suggest that my story was an isolated case of bad luck at a crummy shop. Let’s get real; this happens all the time in this industry. If this shop – a GEICO DRP – could mangle a straightforward repair on a Yaris, how are they handling $20,000 repair orders? Here are some additional questions to consider:

can “save” on insurance didn’t encourage my purchasing decision – the quality of coverage I thought I was paying for did. I deserved more than the “most cost-effective” repair method possible from my insurer. Shame on them.

Where is I-CAR in all of this? is was a Gold Class shop.

Embarrassing. Talk about a stain on the I-CAR brand. ose nice Gold Class brochures should always be worth more than the paper they’re printed on, and I-CAR should always mean more than just a logo on the wall.

Why is this shop allowed to stay on GEICO’s program and continue to perform dealership work?

Why did I receive more calls and follow-ups from Enterprise Rent-A-Car than I ever did from GEICO and the DRP during this ordeal? What’s the real priority here?

Why was this whole situation allowed to take place when it was known from the beginning that I was a journalist who covered the collision repair industry?

Well, at least GEICO was right about one thing during this mess: I do have the right to take my car anywhere I choose.

So, thanks for the friendly reminder, Mr. Gecko. I’ll be sure never to take it to one of your shops ever again.

TXA

Why do insurers think it’s reasonable to go for the cheapest repair option when some customers – like yours truly – select a policy based on coverage and not just price? e cute little character in GEICO’s commercials that talks about how much I

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ABAT Member Profile

By Joel Gausten

Berli’s Body & Fine Auto Finishes

Berli’s Body & Fine Auto Finishes is an active member of the ABAT community.

Chad Kiffe, general manager at Berli’s Body & Fine Auto Finishes, and his crew make it a daily mission to maintain the tradition of excellence that Joe Berli built with his own two hands more than 30 years ago. e facility, which specializes in high-line vehicles, first opened its doors in 1983. Today, it is still the go-to place for repairs in the Austin area.

“I think our reputation in this town has stood on its own for years, and we continue to strive to keep that quality where it needs to be,” comments Kiffe. “No matter what type of vehicle we work on, we will provide the same quality of work to each customer.”

When the shop first opened, it was just Joe Berli doing all the work himself - picking up cars and then repairing, painting and delivering them. In 1998, he purchased the land where the shop exists today, on Grand Avenue Parkway in Pflugerville, and built it all from the ground up. e facility later underwent additional remodeling in 2002, 2010 and most recently in 2018.

Roughly 15 years ago, Berli and Kiffe happened to be sitting at the same table during a lunch break at an industry training seminar. Kiffe was talking with another manager about a production idea that made an impression on Berli. e two did not actually meet that day, but it started the wheels of motion for them to cross paths down the road. Two years later while managing another local body shop, Kiffe was concerned about repairing a Cadillac XLR that was towed to the location.

“Our shop wasn’t really equipped with the staff, training or tooling to work on the late-model Cadillac XLR. I remember the insurance company recommended Berli’s Body & Fine Auto Finishes to come take a look at it.”

Berli and one of his top technicians came to the shop Kiffe was managing, and they once again met up. Berli observed Kiffe working with a customer, which was something he valued in a manager. Berli built his company with a hands-on approach and wanted his general manager to have that same customer involvement. Shortly after running into each other again, Berli reached out to Kiffe; after a couple of interviews, he offered him the position of general manager. Although Kiffe is in charge of the day-to-day operations, Berli is still very active with the business.

When asked what led him to the world of collision repair, Kiffe said the opportunity simply presented itself. At a time in his life where he wasn’t sure what career path to follow, he was offered a chance to come on board as an estimator at a

dealership. Later, he became the general manager at that location before taking on his current position at Berli’s.

Before he got into this business, he never realized that a vehicle could be returned to its original condition after an accident.

“I always tell people I thought I knew quality, but it wasn’t until I started working for Berli’s that I could fully appreciate what quality was.”

Now, he strives to do that with each customer he serves.

“I don’t think there is a better time in history than right now [to be in this field] with all the advances. It’s challenging but fun at the same time. It definitely keeps you on your toes. Day in and day out, you are constantly learning. It’s never redundant.”

As for challenges, Kiffe says insurance companies make it difficult for the shop to perform what it deems appropriate work based on manufacturer recommendations/requirements.

“We are trying to get paid to fix cars the right way.

Unfortunately, there are shops that are willing to cut corners. at makes insurance companies question why some do and some don’t.”

Currently, the shop is OEM-certified in Acura NSX, Aston Martin, Bentley, Maserati, Mercedes-Benz, Land Rover, Jaguar, Porsche and Tesla.

Kiffe will never forget the day he received a call from David Norris at Park Place in Dallas about an ABAT meeting.

Impressed with what he heard and saw, he immediately signed Berli’s Body & Fine Auto Finishes up as a member. Not too long after, he was elected to the association’s Board of Directors.

“I highly recommend that any shop that wants to do the right thing – fix cars right – join ABAT. e knowledge they will gain through the meetings and the Trade Show is definitely eyeopening. Just being able to network, meet other shop managers and talk to someone who may have worked on the same type of vehicle is worth the membership alone.”

What does the future hold for Berli’s? Kiffe says there are plans down the line to open a second location in the city.

“Our goal is to open another location on the other side of town that will be more convenient for customers in that area. It will also give our employees more opportunity for growth within the company, a very important aspect Joe Berli wants to provide to his employees.”

TXA

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HABA News Houston Auto Body Association Preps “Collision Day” at the Capitol!

This could end up being the most important month in Houston Auto Body Association (HABA) history.

On February 6, members of HABA – along with members and representatives from ABAT – will hit the Texas State Capitol in Austin to pass out literature to legislators informing them of two important matters: e soon-to-be-filed updated version of previous House Bill 3804 e numerous collision industry professionals who will return to the State Capitol on February 12 for “Collision Day,” an associationsponsored event designed to further explain the legislation to lawmakers and secure the commitment of co-sponsors e updated bill will aim to give the Texas Department of Insurance [TDI] further authority to enforce the Texas Consumer Bill of Rights. “is bill is about the future of the industry,” explains HABA Legislative Liaison Larry Cernosek. “If we don’t get it passed, then all the small guys will no longer exist. ere will only be big consolidators left. is is a steering issue; it’s illegal in Texas, but the Texas Department of Insurance [TDI] is saying that there’s no law that says they can enforce it.

We think the Consumer Bill of Rights says that they can, but they want it to be more specific. at’s one of the things we’ve done with this bill. We

got the bill out of the House during the last session, but it was too late to go to the Senate. at’s why we’re trying to get this all done in advance.”

HABA members who attend “Collision Day” will be provided with a word track with an explanation of the bill to share to lawmakers. In addition to having strong member participation at both events this month, the association hopes to boast a large crowd when the bill is heard later in this legislative session.

“We’re trying to get enthusiasm up so we have 100 people show when our bill comes up this time!” offers Cernosek.

Enterprise Rent-A-Car has graciously volunteered to provide transportation/drivers from its Houston location to the Capitol for both events.

With such a massive legislative push planned for 2019, HABA and ABAT are confident that genuine change for the Lone Star State’s collision repair community is right around the corner.

As Cernosek says, “If we get this bill passed, it’s going to be astronomical and solve a lot of problems.”

Members who are interested in participating in these upcoming events at the Capitol are encouraged to contact HABA and ABAT for more information.

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Phone: (318) 425-3471 Email: jlawler@chevyland.com

Hours of Operation: Monday - Friday 7:30am - 6pm Saturday 8am - 2pm

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HOUSTON AUTO BODY ASSOCIATION Membership Application Please Print

Company Name:

Primary Contact:

________________________________

________________________________

Business Address, City, Zip Code

Phone:__________________________

________________________________

Years in Business: __________

Email:___________________________

Website:_________________________

____ Member Dues $450 (all body shops)

____ MSO dues $250 Per Shop

____ Af liate dues $450

____ Sponsorships - See Attached

NOTE: Please make your check payable to Houston Auto Body Association or (HABA) and submit membership dues and application to: Houston Auto Body Association 4619 Harrisburg Blvd.

Houston, Texas 77011 or sign up online @ www.HABAonline.org All new membership applications require nomination and review from the Board and a majority vote for nal approval.

(Please Sign Here) X _______________________________________ Referred By:

_______________________________________

By signing this form, I agree to abide by the Association code of ethics including all bylaws that govern the Houston Auto Body Association.

OUR MISSION The Houston Auto Body Association is comprised of collision repairers devoted to the advancement of the collision repair industry. Our mission is to create an environment of professionalism, respect, accountability, excellence, enthusiasm and the ability to collect fair and reasonable compensation for collision repairers who properly restore vehicles to their safe pre-loss condition.

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