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The official publication of the Auto Body Association of Texas and the Houston Auto Body Association
May 2019 $5.95
www.grecopublishing.com
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Contents
MAY 2019
on the
18
cover
THE CALL FOR CHANGE:
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
ABAT and HABA Testify in Support of House Bill 1348
Chairman of the Board Corey Pigg S&W Expert Collision Repair coreyp@swcollision.com (936) 634-8361
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
Photo by Jill Tuggle Cover Photo by Christian Benavides/Texas Watch
By Joel Gausten
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
DEPARTMENTS
4 6 8 10 12 15 22
Official publication of the Auto Body Association of Texas and the Houston Auto Body Association
PRESIDENT’S MESSAgE By Burl Richards A View from Austin EXECUTIVE DIRECTOR’S MESSAgE By Jill Tuggle Getting What You Pay For
EDITOR’S MESSAgE By Joel Gausten Thank You, Marcia
Robert McDorman Auto Claim Specialists rmcdorman@autoclaimspecialists.com (817) 756-5482
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 LOCAL NEWS ABAT Hosts DEG Information Sessions INDUSTRY UPDATE B2B Automotive Welcomes New Team Member Spring McCann ASK THE EXPERT By Robert L. McDorman What Happens to a Total Loss Vehicle When It Leaves the Collision Repair Facility?
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 SALES DIRECTOR Alicia Figurelli / alicia@grecopublishing.com
VENDOR SPOTLIgHT By Alana Bonillo English Color and Supply
ADVERTISING SALES: Jill Tuggle / jill@grecopublishing.com CREATIVE DIRECTOR Lea Velocci / lea@grecopublishing.com
ASSOCIATION NEWS 24 ABAT MEMBER APPLICATION
EDITORIAL DIRECTOR Joel Gausten / joel@grecopublishing.com
26 HABA MEMBER APPLICATION
EDITORIAL/CREATIVE COORDINATOR Alana Bonillo / alana@grecopublishing.com OFFICE MANAGER Donna Greco / donna@grecopublishing.com Published by: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963
ADVERTISERS’ INDEX 300 Advantage ..........................................................11 AAMStraining.com ....................................................10 AkzoNobel ..................................................................13 Auto Claims Specialists ..........................................16 Beacon Equipment Resources ..............................16 Capital Paint & Refinish............................................21 CAR-O-LINER Southwest ........................................IFC Classic Chevrolet Sugar Land................................24 Classic Chevrolet Grapevine..................................10
Dallas Dodge..............................................................OBC Innovative Collision Equipment ............................14 Intrepid Direct Insurance ........................................22 Phantom Equipment & Hydraulic Repair ............7 Reliable Automotive Equipment............................17 Scott Portfolio ............................................................22 Spanesi ........................................................................14 Tasco Auto Color ......................................................9 Wheel Technologies ................................................27 3 MAY 2019 Texas Automotive
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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President’s Message
A View From Austin On April 9, I had the honor of testifying before the House Committee on Insurance in support of House Bill 1348 on behalf of ABAT and our industry. The hearing saw participation from several members of the ABAT and HABA communities who are determined to see this critical piece of legislation progress in Austin and get signed into law. I encourage you all to read the coverage of this history-making event in this month’s issue and learn more about our push for safer repairs for Texas families.
S
Speaking in front of the Committee gave me the opportunity to explain our recent work with attorney Todd Tracy in crash testing a variety of OEM and aftermarket parts. Although Todd was unable to testify due to a family emergency, I was able to provide legislators with an overview of the process we undertook to demonstrate the potential dangers in using non-OEM parts in repairs and the results these tests generated. e crash tests that ABAT and HABA arranged to have performed with Todd in California were long overdue. As I stated during my testimony, “Why did it take a redneck [like me] to take a car and repair it to OEM standards and aftermarket standards to prove whether or not it would hold up the same?” is is not a matter of pointing the blame for the lack of previous testing; this is a matter of using the information we gathered to better inform the industry and the public that certain parts just don’t perform as well as others – and lives could be put at serious risk as a result. Although Todd’s a lawyer who routinely sues our industry, make no mistake that he is at the forefront of getting this bill
Burl Richards ABAT President
passed and stands with us in protecting Texas motorists. When ABAT first started working with Todd, I took a lot of flack for letting the fox in our henhouse. However, the association and I felt that the industry needed to gain insight into what went wrong for the shop involved in the Seebachan case and figure out ways to prevent this tragedy from ever happening again. Our members employ thousands of hard-working men and women across Texas, and it is our duty to do whatever we can to protect them from liability. One of the ways House Bill 1348 aims to do this is by establishing the manufacturers’ documented procedures as the true standard of repair. is is not an “anti-aftermarket” bill. e use of aftermarket parts would still be allowed if this bill becomes law, but those products would need to be proven to be as structurally and functionally safe as original parts. is was a compromise put into the bill to ensure that safety – not party type – remains the engine driving our legislative goals. If aftermarket parts manufacturers want to sell parts in Texas, they should have to provide documented proof that they meet the same safety standards as the OEM parts. I realize this is an added expense, but that’s just the “cost of doing business.” In closing, I’d like to offer my heartfelt thanks and appreciation to Marcia Seebachan, who overcame great physical discomfort and emotional stress to travel to Austin and testify in support of our bill. It took tremendous courage for her to share her story and support everything we are trying to accomplish with our current efforts. I will never forget the minutes she spent in front of the Committee. Our industry owes the Seebachans more than we could ever possibly give. Our hearts will always be with them and everyone who trusts us to do the job the right way.
TXA burl@burlscollision.com 4 MAY 2019 Texas Automotive
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Executive Director’s Message
Getting What you pay for
Y
“You get what you pay for” was one of the phrases that stood out to me as I sat in the audience during an OEM panel at the recent NORTHEAST® Automotive Services Show in New Jersey. It was not the main topic of discussion, but it still struck a nerve for me. We all use this phrase, but do we practice what we preach? I hear it often on social media and in conversations I have with shops. e context is usually referring to when a customer is looking for a repair shop and chooses the lowest estimate or a potential deductible savings. I also hear it when a repair shop is being asked to use aftermarket parts or is referencing the lack of coverage their clients have opted for in the name of lower premiums. “Getting what you paid for” is easily thrown around when it doesn’t pertain to us. I use it myself! We are quick to throw that stone when we feel shorted, like when a customer doesn’t choose our shop or we are not being properly reimbursed for required operations. at begs the real question: Are you applying this philosophy when you are the consumer? Quality work requires quality investments in tools, processes, vendors and even employees. However, in our industry, the buck doesn’t stop at quality. e resounding
message lately is that OEM certification is the wave of the future in collision repair. at means that even the greatest tool on the planet may not be the right one for you. As shops, we tend to buy what presents itself to us first. A one-size-fitsall solution can be very attractive, but it may not always fit our needs. e hardest things to compare are the products that we didn’t even know existed until we are captivated by a sales presentation and tempted to buy on the spot. Ware Wendell of Texas Watch recently gave me some solid advice. I was interested in a service I found online that I didn’t even know existed. It was a platform that would help our legislative efforts. It also came with a hefty price tag. Because of the nature of its features, it wasn’t something I could easily “Google” to see what else was out there. In an effort to find out if it was a quality product (features and price in mind), Ware told me to ask, “Who are your top three competitors?” Using that information, I was able to compare their system to others. In the end, the product was way more than what we needed at this stage in the game. ey built the Ferrari of platforms, and we just needed a bike. It sure feels good when the most expensive tool on the market is not what you need for the job!
Jill Tuggle ABAT Executive Director Outfitting your shop in all aspects needs to be a process. ink about your goal. Do you want to implement any OEM certifications in the next five years? If you’ve done that even once, you know that XYZ rivet gun may do the exact same thing as ABC rivet gun, but you’re required to buy the approved model to be certified. Some tools satisfy the requirements of many certifications, and you should always refer to the OEM rep to verify that you’re buying the right one. Hire employees and jobbers who are well aligned with your goals. Choose tools that are well suited for you. Ask who their top three competitors are, and then compare. Only this process will lead you to the Ferrari. Or the bike, if that’s all you need.
TXA
jill@abat.com
6 MAY 2019 Texas Automotive
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Editor’s Message
Thank You, Marcia Joel Gausten Editor
I’ve written thousands of automotive-related articles in my career, but the most important story I’ve ever done appears in this issue of Texas Automotive.
L
Last month, Marcia Seebachan testified in Austin in support of House Bill 1348. Although it is critical for members of the collision repair industry to always speak out in favor of things that better ensure consumer safety and professional repairs, Marcia’s words illustrated the importance of this bill more than any auto body representative ever could. In heartbreaking detail, she explained how the improper repairs on her Honda Fit resulted in near-fatal injuries that changed her life – and the life of her husband, Matthew – forever. She reminded everyone involved in this profession that it’s not about money; it’s about making sure that everyone who gets a repair is able to drive safely
knowing that shoddy work won’t kill or severely injure them in a subsequent collision. A few days after her testimony, Marcia graciously accepted Texas Automotive’s request for an interview. I held back tears as she shared her health and emotional struggles, Matthew’s harrowing injuries and how life has changed as a result of non-OEM-approved procedures. No matter how much money the Seebachans received in court, nothing will ever make their lives the same again. No auto body customer should ever have to face such a tragedy, and no body shop should ever expose themselves to such liability.
What happens on your shop floor matters. Please work every day to ensure that you’re doing the right thing. Read Marcia’s words in this issue and feel what it means when things are not done properly – and never compromise on the quality of your work for the sake of profits. ank you, Marcia, for giving me the opportunity to share your story. It means more to me than you will ever know.
TXA
joel@grecopublishing.com
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8 MAY 2019 Texas Automotive
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Local News
ABAT Hosts DEG Information Sessions Developed in 2007 and funded by the Alliance of Automotive Service Providers (AASP), the Society of Collision Repair Specialists (SCRS) and various sponsors, the DEg is a free online service where end-users can submit Database Inquiries to the three major Information Providers (IPs). To date, the DEg has handled 13,300 inquiries.
Danny Gredinberg of the DEG brought information on the system to ABAT members.
On April 10 and 11, ABAT facilitated two special presentations by Danny Gredinberg of the Database Enhancement Gateway (DEG; degweb.org) as a way to better inform members of the services and estimating information available to them through the system. e informative discussions were held at the Wyndham Garden Hotel in Austin and Vale Training in Arlington, respectively. e wellattended events marked the first time the association hosted the DEG in the Lone Star State. Developed in 2007 and funded by the Alliance of Automotive Service Providers (AASP), the Society of Collision Repair Specialists (SCRS) and various sponsors, the DEG is a free online service where end-users can submit Database Inquiries to the three major Information Providers (IPs). To date, the DEG has handled 13,300 inquiries. e progress and final result of each inquiry is displayed on the DEG website for easy reference.
Gredinberg’s presentations provided an in-depth overview of the DEG process and how end-users could operate the platform to access and utilize data on not-included items. ABAT Executive Director Jill Tuggle was pleased to see the association host the meetings and introduce Texas repairers to the DEG’s many benefits. “With everything going on in our industry, there is an uprising. People want to educate themselves now more than ever, because there’s a lot at stake. Whenever we’re out talking with potential member shops, we always share the DEG resource with them. While this is the first time we formally had the DEG give a presentation, we’ve been talking about them for years.” Speaking with Texas Automotive following the events, Gredinberg noted the positive response his discussions received. “When the shops’ estimators heard about the information that’s available to them – and that the IPs are acknowledging these operations – their ears perked up and they had a sense of relief that their voices were being heard.” Gredinberg believes that the DEG will help elevate collision repair knowledge in the Texas industry as more shops in the state begin to use it. “We can’t stress the importance of OEM information enough. As a business owner, it’s also important to get reimbursed for various operations, but [the DEG] is not just about labor issues. We also work to clarify the PPages to today’s verbiage we’re accustomed to and not what was initially written when the guides were developed. e ability to use current terms and clearly understand the scope of what is or isn’t being factored allows the repairer to better research and understand these procedures – which they can charge for to do the repairs as per the OEMs.” Additionally, he was quick to credit ABAT for organizing these meetings and showcasing tools that can strengthen shops’ chances of success out in the field. “It’s great that ABAT worked with the DEG in delivering this to its members. If it wasn’t for industry groups and others supporting what we do, none of these resources would be available.” In other ABAT event news, the association recently gave an hour-long presentation on the benefits of membership during the 2019 PPG Leading Change Luncheon in Irving and hosted a special “Meet ABAT” meeting in Abilene. Information on upcoming ABAT events is available at abat.us.
10 MAY 2019 Texas Automotive
TXA
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Industry Update B2B Automotive Welcomes new team member spring mccann B2B Automotive is proud to announce that Spring McCann will be joining its team as its new director of operations. She is well versed in many industry skills, including project management, copywriting and social media, search engine optimization, Direct Repair Programs and OEM certifications. Much like B2B Automotive CEO Michelle Nelson, McCann is a veteran of the automotive industry. Here are just some of McCann’s credentials: • Accredited automotive manager through the Automotive Management Institute • Former director of operations for Preferred Collision, a Mercedes-Benz repair facility in Houston, where she managed the repair facility and staff. • Former business associate, Wagonwork Collision Consultants, with industry guru Mike Anderson • SEO & WordPress specialist
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Get to know
Spring
“We are so excited to welcome Spring to our team!” said Nelson is a statement. “We cannot wait for the growth it brings our company. Everyone is looking forward to working with her. Spring’s wide variety of skills and experience in the automotive industry will make her a valuable asset here at B2B.”
TXA
12 MAY 2019 Texas Automotive
Spring lives in Friendswood, TX with her husband, nine-year-old daughter and fur babies Gunner and Gizmo. She also has three grown children in Dallas, Denver and Los Angeles. Traveling the world is her hobby any chance she gets. She loves art, with Georgia O’Keefe being her favorite. She has been in the business of serving clients (whether it be restaurants, body shops or marketing) for over 25 years. Her love of the automotive field came from being a manager of a body shop in Houston, and she has been involved in the field in one way or another since then. SEO guru, WordPress expert and ranking aficionado all come to mind when thinking of some of her assets.
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PHONE: 732-495-7900 FAX: 732-495-7904 E-MAIL: bill@rae1.com www.raeservice.com VISIT US ON FACEBOOK www.facebook.com/ReliableAutomotiveEquipment 13 MAY 2019 Texas Automotive
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14 MAY 2019 Texas Automotive
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Ask the Expert
By Robert L. McDorman
What Happens to a Total Loss Vehicle When It Leaves the Collision Repair Facility? Dear Mr. McDorman: I own and operate several collision facilities in East Texas. Between our locations, we handle an average of 35 total loss claims per month. As an OEM-certified repair facility for the makes and models we repair, I always question the validity of the carriers’ decision to deem the vehicle a total loss on at least 30 percent of these transactions. In these situations, the liable carrier always picks up the vehicle and pays our associated charges. After this point, we lose track of the vehicle and what happens next. I have multiple reasons for wanting to understand what happens to the vehicle after it leaves our facility. Each of my concerns and questions revolve around
consumer safety. If my hunch is correct that at least 30 percent of these vehicles that were deemed a total loss could have been safely repaired and returned to their OEM pre-loss condition, then what happened to them? Could they have been sold to a rebuilder who would have possibly performed an unsafe repair and then made the vehicles available to be sold to the public? For the remainder of the vehicles that could not be safely returned to their OEM pre-loss condition, what measures are in place to prevent them from falling into the hands of a rebuilder who would perform a less than desirable unsafe repair and then make them available for sale? Does Texas have a system in place to prevent this from happening?
15 MAY 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 ese are great questions. e safety mechanism in place to prevent a total loss vehicle from being repaired and made available for sale to the public is the Texas Department of Motor Vehicle titling system. Almost always, the auction facility that picks up the vehicle from the collision facility also serves as the procurement department for the titling of the vehicle for the insurer. From time to time, if not most of the time, the total loss vehicle WILL NOT be titled as a salvage vehicle if it does not meet the Texas Transportation Code 501 definition of a non-repairable or salvage vehicle. When the vehicle IS NOT titled as a non-repairable or salvage, this allows it to be sold to the rebuilder with a clean or blue title. Texas is a 100 percent total loss threshold state. e 100 percent threshold definition states that should the repair cost not exceed the actual cash value, and the vehicle is not missing a major component, then the vehicle is not non-repairable or salvage. Additionally, Texas Transportation Code 501 takes the equation one step further and says that the repair cost (including parts and labor other than the cost of materials and labor for repainting and excluding sales tax on the total cost of repairs) must exceed the actual cash value of the motor vehicle immediately prior to being damaged. Before the calculation of determining if the vehicle fits the Texas Transportation Code definition of non-repairable or salvage, all refinishing time, paint materials and sales tax must be deducted from the final repair invoice. e accumulated dollar amount of these three components typically average approximately 25 percent of the total estimate, which in return drastically decreases the severity percentage. Once this value is determined, and should it be less than the true actual cash value of the vehicle, that automobile does not meet the Texas Transportation Code 501 definition of a non-repairable or salvage vehicle. e total loss vehicles are placed for sale by the auction facility that also is the procurement department for the titling of those vehicles. Should the vehicle deemed a total loss not meet the Texas Transportation Code 501 and it has a clean or blue title, the auction facility promotes and presents it as such. Regardless of the condition of a total loss vehicle, should it be titled as clean or blue, the vehicle will bring a premium price. e buyer understands and knows that
The safety mechanism in place to prevent a total loss vehicle from being repaired and made available for sale to the public is the Texas Department of Motor Vehicle titling system. once this vehicle is rebuilt, it will be sold with a clean or blue title. Any vehicle with a clean or blue title is the gem of the salvage sale and promoted as such. Your question led us to perform a study of the total loss claims we have handled for Texas clients. We randomly selected 200 total loss claims we handled this past year and researched the title history for each. Our findings showed 118 (or 59 percent) were titled with salvage titles, 60 (or 30 percent) were still in the claimant’s name (blue title) and 22 (or 11 percent) had been subsequently transferred to another individual with a clean or blue title. I found it alarming that over 40 percent of the 200 total loss claims we randomly picked and researched either had been since sold and titled with a clean or blue title or still had an open (untransferred) blue title. In closing, it is my professional opinion that if the vehicle is deemed a total loss by the carrier, then the next step of the claim closure and titling process is the transfer of the title to the carrier as a salvage title, and that any such subsequent sale or transfers would reflect this status. is process would curtail the purchasing, marketing and selling of total loss vehicles that have been unsafely rebuilt and made available to the public with clean or blue titles. Please call me should you have any questions relating to a motor vehicle insurance claim. I thank you for your letter and look forward to any follow-up questions that may arise. Sincerely, Robert L. McDorman TXA
LET US TURN THEM AROUND!
Contact Texas Automotive Sales Representative Jill Tuggle
(817) 899.0554
JILL@GRECOPUBLISHING.COM
16 MAY 2019 Texas Automotive
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17 MAY 2019 Texas Automotive
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Cover Story
THE CALL for CHANGE: ABAT and HABA Testify in Support of House Bill 1348 April 17 was a day that mattered. After careful consideration, the Texas House Committee on Insurance voted favorably on April 17 to advance House Bill 1348, otherwise known as the Auto Body Insurance Accountability Bill, to the Calendars Committee. is step puts the legislation one step closer to a vote on the House floor. e Committee on Insurance’s encouraging action followed intense activity in Austin on April 9, when various members of the Texas collision repair industry spoke in support of the bill. Representative Travis Clardy (R-Nacogdoches), who is sponsoring House Bill 1348, was the first to address the Committee and held nothing back in outlining the legislation’s goals on behalf of Texas motorists. “Consumers should be protected by state law and should not be subjected to unsavory business practices that can lead to catastrophic events. Automobiles are among the biggest purchases our constituents make. We count on them to deliver us to our destinations safely. After a collision or damage event, Texans have a right – and really an expectation – that their vehicle will be repaired to its pre-accident condition. Repairs need to be made safely, using safe parts and by following accepted safety procedures.” Addressing the element of the bill that seeks to address steering, he explained to his fellow legislators that insurers regularly direct policyholders to partner shops and discourage them from using non-Direct Repair Program facilities by telling them (among other things) that the repairs could take longer or they won’t be able to get their deductibles back. “Subtle – but sometimes not too subtle – forms of steering by the insurance companies [are being done] as a way they can reduce costs, have inferior repairs made and pass that burden of proof back to the consumers, who paid good dollars – like we all do – for insurance policies and for our premiums.” Clardy’s testimony also took the Texas Department of Insurance (TDI) to task for not doing more to properly address many of the issues that House Bill 1348 aims to solve despite having the statutory means to do so. “I was told by the TDI officials…that they didn’t think they had the specificity within the statute to direct [insurers] on how to deal with this. I will say I think I have a fundamental disagreement on how the TDI seems to view its relationship between consumers and insurance companies. I don’t see it as the broker, the mediator, the
18 MAY 2019 Texas Automotive
ABAT President Burl Richards
go-between or the liaison between consumers and the insurance companies. I view the role of the TDI to be the advocate – the protector – of consumers, our constituents and real Texans over the insurance companies.” ABAT President Burl Richards testified that House Bill 1348 would promote consumer safety by establishing the use of OEM procedures as the definitive standard of repair. “ere’s been a growing epidemic – across not only the state, but the nation – of insurance companies dictating the repair of a vehicle, putting dollar signs over the lives of your constituents. ey write the policies, they dictate the cost of repair and the methodology in which [that] vehicle is repaired. ey do this by refusing to pay for I-CAR and original equipment manufacturers’ safe practices and by only paying the ‘prevailing rate.’ is is an undefined term that insurance companies write in their policies to dictate the cost and method of repair.” (Read Richards’ President’s Message in this issue for more of his thoughts on House Bill 1348 and the hearing.) Calling the legislation “a common sense bill,” ABAT Board member Chad Kiffe (Berli’s Body & Fine Finishes) stressed that evolving automotive technologies demand stricter guidelines for repair than what was seen in the past. “With the way these cars are being built these days, it’s not like it was in the ’80s, ’90s or continued on page 20
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By Joel Gausten Photo credit: Christian Benavides/Texas Watch
Marcia Seebachan
SPEAKS
For everyone who appeared at the Texas State Capitol on April 9 in support of House Bill 1348 (and for those who viewed the various testimony online), the most powerful point came when Marcia Seebachan – who, along with her husband, Matthew, was in the poorly repaired Honda Fit that launched the multimillion-dollar lawsuit against John Eagle Collision Center in Dallas – sat in front of the House Committee on Insurance and shared her deeply personal story of the life-threatening accident and its harrowing aftermath. Although the Seebachans gained attention for suing an auto body facility, Marcia tells Texas Automotive that she and Matthew are 100 percent in support of this bill and those shops that are committed to safety. “Originally, [Texas Watch] was telling us about the efforts they wanted to move forward with. When I found out that was in partnership with the auto body associations, it kind of caught me off guard. You don’t hear often about service industries asking for more government regulation; often, their efforts are put towards having much less government regulation. That really stood out to me...Thinking it through and reading the different articles [made me] realize that you have shops that understand what’s on the line and
understand the liability and safety issues that happen when things aren’t done correctly [but who] are kind of at the mercy of not having rules in place that require things to be done correctly.” Not surprisingly, testifying before the Committee brought up a host of emotions for Marcia, who was still in her late twenties when she and Matthew experienced the unimaginable. “I walked into [the hearing] feeling as if I would never be able to do any body work on my car again. My husband and I have a car right now that has hail damage on it that we have resigned to never getting fixed. We would never feel safe or know how to ensure [the correct work] was done. But hearing the testimony from the body shops and meeting some of those men who are passionate about doing this work correctly, I better understand what questions I could ask and [how to] look for someone at the shop who expresses those values.” Tragically, the Seebachans now contend with much more than apprehension over future repairs. In addition to experiencing frequent pelvic pain and ocular migraines, Marcia now has a stent in her aorta that needs to be assessed by a vascular surgeon on a regular basis. The physical discomfort she now feels as a result of the accident followed her to Austin. “Sitting all day and flying down on the plane before that [put me] in a lot of pain. I had to do some physical therapy exercises to get that back under control after I got back.” Matthew, who was employed at a pharmacy prior to the crash, will likely never work again due to the severe extent of his injuries. He was only 33 when the collision took place. “My husband will always be in pain. We often get asked, ‘Has it gotten better? Will it get better?’ It’s not reasonable to assume it will. There’s a certain degree of pain that will always exist with the repair to his burns and the nerves involved in that…[He] has a lot of cognitive stuff related to all the medications he’s taken. He just can’t function on the same level as he could before.”
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While the $42 million verdict grabbed headlines, nothing will ever come close to compensating the Seebachans for the realities they now face. “After our trial, we had friends ask us, ‘Does this type of jury judgment make it worth it?’ We said, ‘Absolutely not.’ There’s no value that we could have put on having our marriage changed and having Matthew lose the purpose that he had in life.” After all the Seebachans have been through in recent times, Marcia has a clear message to send to her fellow consumers in Texas and beyond. “Feel empowered to ask questions of everyone involved – the insurance company, repair shops and previous owners. We started this much less informed than we are now about how the industry works and how much information we are entitled to when we purchase a car. I would really encourage people to ask more questions and not to trust that if someone hasn’t told you an answer, there are good intentions across the board and that you would be told or know if something was wrong.” Marcia also urges shops to do all they can to educate their customers and involve them in the repair process. “If you’re a shop that wants to do things correctly, take that opportunity to educate the consumer as to why that’s important and why it matters – even if your estimate is going to be higher. Explain why so that a consumer knows there’s a difference between you and the shop down the road, which might offer a lower estimate but not explain that the reason is because they are finding ways to have your vehicle aesthetically returned to normal but maybe not functionally.” Looking ahead, Marcia is hopeful that sharing her story with legislators and the collision repair community will lead to genuine change and stronger security for every vehicle owner who drives a repaired vehicle. “The closest thing that we could ever see of making lemonade out of these lemons is actually having a significant impact on an industry that will help everyone be more informed and safer when they’re purchasing cars.”
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Cover Story even the early 2000s. I got into this business in the early 2000s; OEM procedures weren’t something you looked up. Today, if you’re not looking them up and reading them, you’re not fixing the car the correct way.” Kiffe added that House Bill 1348 was created to ensure consumer safety – not to eliminate aftermarket parts from the Texas marketplace. “As a shop manager, I would have no problem using aftermarket parts if they were certified to meet the requirements of this bill. If they were certified and proven [to be] the same, and they met the same specifications as the OEM parts, body shops wouldn’t have a problem using them.” Greg Luther, chairman of the board for HABA and body shop manager of Helfman Motors, addressed the anti-steering portion of the bill, noting his negative experiences after dropping “more than 10” DRP partners at his operation. “After ending these agreements, the steering started almost immediately. Companies that once referred clients to us were now sending them to their other shops. ese other shops still work under a flawed business model that incentivizes bad behavior, such as fast, cheap repairs in order to cut corners for the insurance companies.” Luther noted that he still works with a few insurers under the DRP model “who work for the customer and work for us.” Eric McKenzie, who serves on the ABAT Board of Directors in addition to his role as collision director for Park Place Dealerships, cited a number of state, national and international organizations – including the Texas Auto Dealers Association, the North Texas New Car Dealers Association, the Alliance of Automotive Service (AASP), the Automotive Services Association (ASA), the Society of Collision Repair Specialists (SCRS) and the insurance industry-supported ICAR – that have publicly stated their support of OEM recommended/required procedures. Ware Wendell, executive director of the Texas-based consumer advocacy group Texas Watch, presented Committee members with a packet of letters from 1,100 Texans in support of House Bill 1348. Additional testimony in support of the effort came from Gerald Condon, president of the Southeast Texas Collision Group. e hearing took an emotional turn when Marcia Seebachan, known for the multimillion-dollar lawsuit she and her husband, Matthew, brought against John Eagle Collision in Dallas, appeared in front of the Committee to testify in support of the bill. In heartbreaking detail, she outlined some of the physical and emotional effects of the crash, including her spinal damage and Matthew’s boneexposing burns. Representative Travis Clardy
HABA President John Kopriva “It is exceptional that we’re alive today…e effects of the wreck on our health, marriage, family, careers and finances were devastating. is pain was exacerbated when we were told that [our] CARFAX report was completely inaccurate and the car had in fact been repaired poorly before we owned it. e insurance company and the body shop had decided that, for cost efficiency, they would replace the roof with a 3M adhesive instead of welding it in the 108 places that the OEM standards specified. is choice impacted the structural integrity of the car, and it is the reason that our injuries were as severe as they were.” (Read Texas Automotive’s exclusive interview with Seebachan on page 19.) Speaking in opposition of the bill, Kevin Fisk of LKQ Corp. cautioned Committee members that passage of this legislation could lead to a “de facto ban” on aftermarket parts. “While it’s been stated that this is not an anti-aftermarket bill, we’ve seen these and figured out that if you allow the OEM […] to write the procedures you have to follow, they have – and they will – write procedures that say, ‘You can only use OEM parts to properly repair the vehicle.’” Joe Woods, vice president of state government relations for the American Property Casualty Insurance Association, suggested that repair facilities could use House Bill 1348 for dishonest financial gain. “ere’s nowhere [in this legislation] that says there’s any regulation that’s going to confirm that these folks actually used the manufacturer’s manual. ey’re going to charge a $250 blueprint fee – which they do now – which is the time they spent looking at the manual to figure out how to do the repair…ere’s no guarantee anywhere that they actually will do that. “is is a highly unregulated business,” he added. “e insurance adjusters are really the only people who have any shot of regulating practices and quality.” Other groups that offered opposing testimony included the Auto Care Association, the Texas Automotive Recyclers Association, the Association of Fire and Casualty Companies of Texas, the National Association of Mutual Insurance Companies and the Texas Coalition for Affordable Insurance Solutions. Despite the pushback given by these groups, ABAT Executive Director Jill Tuggle tells Texas Automotive that the association received nothing but encouragement in the days following the hearing. “We’ve received an overwhelming response from Board members who were not able to attend as well as other ABAT members. People in the national industry have also reached out to us. Everyone has had positive feedback on our testimony and how what we delivered was clear, concise and powerful.” Tuggle is confident that the industry’s testimony succeeded in
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addressing and eliminating the common misconception that House Bill 1348 targets aftermarket parts. “We’re not asking for repair procedures to be required by body shops. We’re not going to force everybody to do OEM repair procedures, but the ones who do – and are doing it right – should be reimbursed. We’re also not asking to outlaw aftermarket parts. We’re asking that if we’re going to use aftermarket parts, then these parts need to be tested so we know they’re safe. Shops can make more money if they use an aftermarket part, but it’s not about the dollars – it’s about knowing that we’re putting safe parts on our customers’ vehicles. Right now, the burden of proof on whether that part is safe is on the body shop, and that’s not fair.” “ere’s a lot of concern on the part of the insurance industry that we’re going to put a lot of people out of business, and that there are going to be layoffs and everybody is going to have to use OEM parts,” adds HABA President John Kopriva, who also testified in favor of the bill. “at is not at all what was said. is is not about profit; it’s about the safety of the consumer, which has been long overlooked.” Wendell also took issue with the opposition’s position on what collision repairers and his organization are working to achieve with this legislation. “I felt that their arguments were unpersuasive. If you’re making parts that are truly like kind and quality - meaning they’re at least as good as OEM parts – then you should have no problem with the bill.” e Committee’s April 17 vote included a Committee substitution specifying that “a motor vehicle covered under an automobile insurance policy may be repaired with a part or product that is of like kind and quality as an original equipment manufacturer part or product.” ese “like kind and quality parts” must still adhere to the following standards previously established elsewhere in the original draft of the bill:
parts they want me to as long as I know it’s a safe part that’s going to fit and react the same way when involved in an accident.” “[e substitution] changed the language of the bill, but not the concept and the bottom line of the bill,” adds Kopriva. “at was a very important factor. I’m just interested now in seeing it move on and go forward.” ABAT/HABA lobbyist Jacob Smith agrees with the associations’ appraisal of the change of events. “I believe the Committee substitution addresses and gives flexibility to parts vendors to where you can buy a part from any part dealer or manufacturer as long as it meets a certain safety standard. In this bill, every section is geared towards safety. e only opposition we have is the insurance industry, which doesn’t want to pay for goodquality parts for vehicles. ose companies are looking at this from a profit standpoint, and we’re only looking from a safety standpoint. We’re going to put lives over profit any day of the week.” While the ultimate conclusion of the House Bill 1348 campaign was unknown at press time, the words and perspectives shared on April 9 will stand as some of the most definitive industry arguments ever made for the use of OEM procedures and the right for consumers to receive appropriate repairs. “I feel we’re on the right side of the law and on the right side of the issue,” Wendell says. “ose who are arguing that [this bill] is going to raise rates are ignoring the fact that if people are in safer vehicles, their injuries are going to be far less severe when they’re in collisions. at’s really what we should be keeping our focus on – protecting families and making sure that our kids and loved ones are safe.”
TXA
• Meet the fit, finish and quality criteria established for the part or product by the original equipment manufacturer of the part or product; • Be the same weight and metal hardness established for the part or product by the original equipment manufacturer of the part or product; and • Be tested using the same crash and safety test criteria used by the original equipment manufacturer of the part or product. Not surprisingly, the post-hearing news of the Committee’s actions on House Bill 1348 is cause for celebration among the legislation’s strongest advocates. “Obviously, this is something we are excited about,” Tuggle says. “Of course, I had been holding on to the hope that this would be the result from the Committee at this stage of the process, but I remained very grounded knowing that we were asking for a lot in this bill and had a big force in the opposition that we were going up against. It’s inspiring; seeing this kind of progress this quickly is a very hard thing to accomplish. It shows that body shops do have a voice and that consumer safety is important to people.” Additionally, ABAT and HABA were satisfied with how the bill was amended during the Committee’s review process. “e intent of the [substitution] is to say, ‘You must still have to follow all OEM-recommended processes and procedures other than parts,’” observes Richards. “at’s fine, because whatever parts they use have to meet the same standards. From my perspective, I’ll use any
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Vendor Spotlight
By Alana Bonillo
English Color and Supply English Color and Supply has locations and rich histories in various states, but the company prides itself on having deep Texas roots. Founded in 1946 by the late Bob English and currently headquartered in Richardson, English Color and Supply currently boasts spots in Texas, Arizona, New Mexico, Colorado, Oklahoma, Louisiana, Arkansas, Tennessee, Mississippi, Florida and Alabama. However, 35 of its 60 locations are found throughout the Lone Star State. Additionally, 175 of its nearly 350 trademark red delivery trucks offer sameday service to customers right here. e company offers products from nearly two dozen of the industry’s biggest names, including 3M, Auto Magic, PPG and BASF. On the equipment side, English Color and Supply is proud to be the Blowtherm distributor for the US and offer distribution services for Pro Spot. “Our multiple locations allow us to service a bigger portion of the state,” explains James Tucker, English Color and Supply’s vice president of sales. “No other distributor has that footprint. Our company was built on delivering customer service. Our goal is to be a one-stop shop. If you want to start a new collision center or update the one you have now, we want to be the folks who provide you with the paint and tools you need for your business.” English Color and Supply also has a keen eye on educating its ever-expanding
The English Color and Supply executive team during the company’s 70th anniversary celebration in 2016.
customer base. e company’s training centers in Richardson and San Antonio host paint manufacturing classes by PPG and BASF as well as various 3M and ICAR events. An active exhibitor at ABAT’s Texas Auto Body Trade Show since the event’s inception, Tucker views his company’s ongoing support of the event as a way to reach out to customers in ways that other marketing methods simply don’t offer. “ere’s no other outlet of that magnitude that you can be a part of. By being there, we get to see a lot of folks from different parts of the state. It’s one area where everyone can come together. ere’s no other show available today that fills that need.”
Nearly 75 years after first opening its doors, English Color and Supply remains one of Texas’ most beloved and dependable automotive institutions. Tucker is confident that the enterprise’s unique brand of hands-on service will keep it at the forefront of the state’s paint industry for years to come. “We consider our customers as partners. We want to provide them with the highest quality of automotive products to succeed in this competitive market.”
For more information on English Color and Supply, please visit englishcolor.com. 22 MAY 2019 Texas Automotive
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24 MAY 2019 Texas Automotive
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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. 26 MAY 2019 Texas Automotive
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