Texas Automotive November 2019

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

November 2019 $5.95

Plus: Remembering Dean Griffin Holiday Gala Preview suffering with sublets

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Contents

NOVEMBER 2019

on the

16

cover

COllIsION CONFusION:

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

ABAT BOARd OF dIRECTORs

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

Inside the Debate over “Opt-OE” Parts

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

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

By Joel Gausten ABAT BOARd MEMBERs

DEPARTMENTS

4 6 8 10 12 14 18 22

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

PREsIdENT’s MEssAgE By Burl Richards Suffering with Sublets EXECUTIVE dIRECTOR’s MEssAgE By Jill Tuggle Why Associations Exist - and Why You Should Join Them EdITOR’s MEssAgE By Joel Gausten The Ripple Effect

Robert McDorman Auto Claim Specialists rmcdorman@autoclaimspecialists.com (817) 756-5482 Eric McKenzie Park Place Dealerships emckenzie@parkplace.com (214) 443-8250

LOCAL NEWs Remembering Dean Griffin LOCAL NEWs ABAT to Host First-Ever Holiday Gala AsK THE EXPERT By Robert L. McDorman “Was My Client’s Vehicle Really a Total Loss?”

VENdOR sPOTLIgHT By Alana Bonillo Innovative Collision Equipment INdUsTRY AdVICE: AsK MIKE By Mike Anderson Is the Industry up to Speed on ADAS Procedures?

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

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

PUBLISHER Thomas Greco / thomas@grecopublishing.com SALES DIRECTOR Alicia Figurelli / alicia@grecopublishing.com 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

ASSOCIATION NEWS 20 ABAT MEMBER PROFILE

OFFICE MANAGER Donna Greco / donna@grecopublishing.com

21 ABAT MEMBER APPLICATION

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 ....................................................15 AAMStraining.com ..............................................17 Advanced Automotive Equipment ..................8 Beacon Equipment Resources ........................13 CAR-O-LINER Southwest ..................................7 Dallas Dodge ........................................................OBC Ecotech ..................................................................IBC English Color and Supply ..................................9

FindPigtails.com ..................................................9 Innovative Collision Equipment........................19 Park Place ..............................................................IFC Reliable Automotive Equipment ......................5 Spanesi ..................................................................19 Tasco Auto Color..................................................15 Wheel Technologies............................................13

3 November 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

Suffering with sublets

C

Collision repair businesses exist to make a profit from safe repairs. e above sentence is simple enough, but this point seems to be lost on many people on the insurance side of the equation. is has always been a thorn in the side of our industry, but the situation is getting worse all the time. As vehicle technologies continue to advance, more and more of us have to sublet certain procedures to third parties. ese procedures run the gamut from window re-tinting to scanning. Of course, there is more involved than just utilizing the services of an outside party to have these things performed for our customers. ere’s admin work, time spent getting

the vehicle to and from the place, fuel expenses – you name it. ese are all things that contribute to markups, but many insurers refuse to even consider paying them when we present the invoice. is is a dangerous place to be. I know there are some DRP shops that receive markup payments, but nonprogram shops are left high and dry. I have a real problem with that.

Not too long ago, I ran into an issue with State Farm over a sublet charge on a spray-in-bedliner procedure. ey only wanted to pay for transportation costs. I said to a higher-up at the company, “Wait a minute. You guys do a survey.

Most shops are going to ask for markup

Burl Richards ABAT President on that.” He replied, “at’s not a question we ask on our survey, so we don’t consider that a prevailing competitive price.” is was frustrating, to say the least.

Run your business like any other business. If shops don’t stand up for themselves, they’re going to keep losing a little more each day. None of us can afford to keep doing this. It’s time to treat our businesses like businesses and stand up for what we deserve. TXA

burl@burlscollision.com

4 November 2019 Texas Automotive

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www.raeservice.com 5 November 2019 Texas Automotive

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Executive Director’s Message

Why Associations Exist – and Why YOU SHOULD Join Them It’s that time of year again…ABAT membership dues are now up for renewal. On the fence about joining?

Wondering why an auto body association exists? If you haven’t been to an ABAT event, then you may be asking these questions.

A

Associations are popping up every day, and there’s an association for just about anything. Just here in Texas, we have the Association of School Nutrition, the Austin Cat Fanciers Association, the Texas Soft Drink Association, the Tortilla Industry Association and the Holiday Decorating Association, just to name a few. But why? Surely, these obscure associations wouldn’t have even formed unless at least a few people saw a need for them. What does an association really do for its members? e American Society of Association Executives (ASAE) defines an “association” as “an organization or group of individuals affiliated with one another who share a common purpose, interest or mission and exist for the mutual enrichment and advancement of their membership.” People usually belong to an association so they can meet other people with a common interest, make contacts, share information and learn from each other.

Associations help their members achieve this by holding conferences, producing publications and creating networking opportunities. Some associations are very active, while some

never really took off or slipped into dormancy. Here at ABAT, we are lucky to have “taken off,” and we have done this because we have a strong Board of Directors and active members.

Associations were built for networking purposes, but – like ABAT – they are usually much more than that. ey harness the power of the multitudes to accomplish goals. When we submitted House Bill 1348, we were asked how many members our association had. e more members we had to support the bill, the more attention and respect it garnered. One body shop would have very little luck alone in the legislative ring. With the support of many shops, we were able to hold a rally and hire a lobbyist; in 2021, we will go back in for Round Two. e Texas Department of Insurance has taken notice and is finally willing to listen to us since we have made such a name for ourselves as a unit. Other states have approached us about helping them form associations.

ABAT travels the US to attend meetings with other association leaders, including the Society of Collision Repair Specialists (SCRS), to unite for one goal. A national alliance like this

6 November 2019 Texas Automotive

Jill Tuggle ABAT Executive Director

will be very powerful in the coming years.

ABAT keeps a finger on the pulse of what is happening nationally and locally and reports to you directly every month right here in Texas Automotive, through our email newsletters and via social media.

Most importantly, ABAT teaches shops how to perform safe and proper repairs and how to get paid for their work. We rally together to create a safer and more profitable industry. We give shops the confidence and the evidential support to stop being bullied by insurance companies.

ABAT will be five years old next year. We’ll be growing out of its infancy stages and offering some additional benefits to members that will guarantee more profit for their businesses. Stay tuned for these announcements in the coming months.

So, what are you waiting for? Join today and be a part of something that can change your business forever.

TXA

jill@abat.com

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Editor’s Message

The Ripple Effect It’s an exciting time for the Texas collision repair industry.

I

In addition to recently hosting the 2019 Texas Auto Body Trade Show and announcing its merger with the Houston Auto Body Association (HABA), ABAT continues to make waves in the Lone Star State and beyond. As ABAT Executive Director Jill Tuggle discusses in her message this month, the association is actively involved in a number of industry groups and events beyond Texas, which gives it a stronger presence on the national scene as well as the inside track on news and trends happening in other parts of the country. is allows ABAT to be more than a state industry association.

When you join ABAT, you become part of a group with ties in multiple states, which results in some of the strongest

representation and advocacy of any industry group in the United States.

Of course, ABAT’s efforts at home continue to have a substantial impact on the American auto body community. At the time of this writing, Matthew and Marcia Seebachan were scheduled to appear at the Collision Industry Conference (CIC) this month in Las Vegas to be interviewed on stage about their life-altering collision and historymaking lawsuit against John Eagle Collision Center. ey will be speaking in front of hundreds of shop owners, technicians, vendors, insurers and other industry professionals. eir appearance is sure to have a huge impact – and it all stemmed from CIC taking an interest in

8 November 2019 Texas Automotive

Joel Gausten Editor

Texas Automotive’s interview with Marcia earlier this year. Never think that ABAT’s efforts go unnoticed.

With 2019 coming to a close soon, now is the time to commit to supporting ABAT like never before. Your issues, concerns and efforts are being recognized everywhere, and your state industry is poised for even more victories down the road. Let’s work together to make the rest of 2019 – and 2020 and beyond – a time of even greater progress.

TXA

joel@grecopublishing.com

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55 O v e r o ns ti Loca ve you r to se

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9 November 2019 Texas Automotive

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local News

Remembering Dean Griffin The ABAT community is devastated over the news of the sudden passing of Board member George “Dean” Griffin on October 5. Known throughout the region as the manager of Moritz Body Shop (Fort Worth), Dean, 56, was among the first to join the ABAT Board in the DFW region and was extremely dedicated to his role within the association.

“Dean believed very strongly in what we were doing; it was a big part of his life,” shares ABAT President Burl Richards. “He was a doer. He didn’t just talk about it; he actually did something about it. I’m going to miss that guy.”

“Dean was one of the good old boys,” adds ABAT Executive Director Jill Tuggle. “He conducted his business based on friendships and character, made deals on a handshake and was a man of his word. He was always fun to be around, and there was never a dull conversation. Dean swore like a sailor, but it was part of his charm. I considered him a friend and someone I could call on if I ever needed anything. I had the pleasure of being a colleague of his for 10 years, and I can tell you that there are few left like him in this world. He will be greatly missed.”

ABAT Treasurer David “Ozzy” Osburn, manager at SouthWest Autogroup Collision, knew Dean since the earliest days of the association.

He remembers his friend as a fiercely independent repair professional and leader who pushed back against insurer control for the benefit of his employees and customers alike.

“Dean was passionate about standing up against things certain insurers do in this industry. He was always 100 percent about taking care of his employees. at was second only to taking care of his customers. He believed that his staff was not a team, but rather his family. He got to know their kids, spouses and hobbies. He told me, ‘We are all in this together,’ and he wanted their opinions when big business decisions needed to be made.

One such decision, which also required the backing from Dean’s boss, was to eliminate all DRP relationships. Dean talked about it for months and finally decided to do it. He said it was the single best thing he ever did for his ‘family’ – his staff – and he never looked back. I looked up to him; he was a good man, and he will be missed.”

ABAT Board member Eric McKenzie (Park Place Dealerships) recalls Dean’s passion for uniting the industry.

“He would often talk about how energized he was because of ABAT’s efforts, our team and the collaboration we all had together. He said it was

10 November 2019 Texas Automotive

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more fun coming into work since his involvement with ABAT because of what we’ve been able to accomplish just bouncing ideas off each other and sharing successes.”

“I am still trying to accept he’s gone,” comments Duck Brewer, collision director at Sam Pack’s Five Star Ford (Fort Worth). “He and David Griffin are like brothers to me. You could call him any time of day or night, and he would always be there for you. He did things his own way, and for that I looked up to him. All he wanted was to be treated fairly and do what was right in our industry. I thank God every day for letting us cross paths.”

One of Dean’s oldest friends, industry veteran Danny LaPier (previously with Lone Star Collision; Colleyville), knew him since high school and got his first job in the industry at David McDavid in Irving thanks to his help. e two later worked together at Trophy Nissan in Mesquite. Like many, LaPier got to experience Dean’s unique level of care for those around him.

“He believed in fairness and taking care of the customers. If he could take care of you, he would. A car is a car; Dean was big on people.”

Wes edford, a painter at Moritz Body Shop, first got to know Dean through ABAT before joining his collision team a year ago. He echoes many of the sentiments shared by others.

“When I wasn’t working for him, I’d often hear him talk about his people and how much he cared about them and his customers. When I came to work for him, I saw that wasn’t just a line; it was really the truth. If you called him a ‘manager,’ he’d kind of get a little upset with you. He’d say, ‘I just have my part in it; you guys have your part in it, and I just do what I can.’ I personally think the industry is worse off without a guy like that in it.”

Of course, nobody was more familiar with Dean’s dedication to the industry more than his wife, Kim. In addition to raising their beautiful nineyear-old daughter, Natalie, Kim works as a warranty administrator at Automotive Warranty Network and understands all that her husband did to better the profession.

“He was very adamant about not being a Direct Repair facility for any of the insurance companies. ey had to pay what they had to pay without any negotiations. He was very adamant against aftermarket stuff. I liked how he went to Austin to try to plead the case of how insurance companies try to hurt the public and body shops.”

Kim believes Dean’s devotion to always doing the right thing will be his greatest legacy in the automotive community.

“Dean was very vocal and passionate about getting the word out there.

He had repeat customers over the last 19 years, and it wasn’t about the insurance companies – it was about morals and doing the job correctly. You can’t promise anything you can’t deliver – in the industry and in life. Dean taught me that. I was very lucky to be his wife and his partner for the last 13 years.”

An avid outdoorsman, Dean was an active part of making ABAT’s annual Skeet Shoot a success. In honor of his commitment, the ABAT Board of Directors has unanimously voted to rename the event the Dean Griffin Memorial Skeet Shoot.

ABAT and Texas Automotive offer Dean’s family, friends and industry colleagues our deepest condolences.

TXA 11 NOVEMBER 2019 Texas Automotive

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local News ABAT to Host First-ever

holiday gala On November 16, ABAT will celebrate an active 2019 and set the stage for the future with its first-ever Holiday Gala. Held at the St. Luke Catholic Church in San Antonio, the evening gathering will feature music, food (including BBQ), refreshments and a chance for ABAT members to meet and network with various Board members and fellow industry supporters.

Manuel Rubio, ABAT Board member and owner of Miracle Paint and Body in San Antonio, has been an active participant in growing ABAT’s presence in his market and sees the upcoming Gala as a landmark step in accomplishing this goal.

“It’s an event where all of us can gather and celebrate the holiday and the brotherhood and sisterhood that we’re cultivating. It gives the Board members the opportunity to come down to South Texas and meet and greet our members here and expand their influence, concerns and vested spirit in proper workmanship and improving the repair industry statewide.”

In addition to welcoming ABAT members throughout Texas, Gala organizers have invited various legislators to attend the festivities and learn more about the industry’s push for professional repairs and consumer safety. Rubio hopes

ABAT HOlIDAY GAlA November 16, 2019

Holiday Celebration

this will aid ABAT members in driving home the importance of OEMrecommended/required procedures.

“It doesn’t matter if you’re a Democrat or Republican. If you’re driving in Texas, you’ll benefit from vehicles being repaired correctly in this state.”

Bexar County Sheriff Javier Salazar is set to deliver a keynote address on behalf of first responders and the motoring public. “ere are a lot of car accidents in Texas every year, and there are a lot of people who get injured – even fatalities,” Rubio explains. “e last thing that the Sheriff, the Department of Public Safety and first responders want are more injuries and fatalities. ey know there are different standards of repairs, and the Sheriff’s there to lobby for the best and safest repairs in our community. He knows there are struggles in getting the insurance companies to understand all the safety items that are required, but he’s counting on us to make sure that we do things right.”

For more information on the ABAT Holiday Gala, please contact ABAT Executive Director Jill Tuggle at jill@abat.us or (817) 899-0554.

TXA

12 November 2019 Texas Automotive

St. Luke Catholic Church Parish Hall 4603 Manitou San Antonio, TX 78228 Doors Open at 6:00 p.m.

Event ends at 11:00 p.m.

Dinner Served at 6:30 p.m.

Barbeque Dinner, Music and Dancing Business Casual Attire Door Prizes, Silent Auction Donation $100

For tickets or more information Email: jill@abat.us

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Ask the Expert “Was My Client’s Vehicle Really a Total Loss?” dear Mr. Mcdorman:

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.

I have attended your seminars at previous ABAT Trade shows, and I attended your seminar at this year’s event. I learned several new techniques from your seminar as well as the other education presentations I attended. I will be able to use each of the educational items I learned in my business. We also routinely refer our clients to you for inherent diminished value claims, policy-related issues and total loss claims. Over the years, we have been able to repair many of the vehicles the carrier deemed a total loss once Auto Claim specialists became involved. In your presentation this year, you used several examples of carriers deeming a vehicle a total loss and then agreeing to repair it after the client retained Auto Claim specialists. You mentioned your records reflect that a large percentage of the vehicles the carriers are deeming total losses could be safely returned to their pre-loss condition. How can the insured detour the carrier from wrongfully deeming a safely repairable vehicle a total loss? ank you for your question, and thank you for attending my seminars and referring your clients to us. is is correct. Many of the total loss claims we review are repairable vehicles that should have been repaired under the policy guidelines without our involvement.

Below are a few steps the insured can take to make sure the carrier has properly indemnified them for their loss. e first step is to read the LIMIT OF LIABILITY section of the policy. What we routinely see in our office is that claims-handling guidelines do not match the policy. As an example, most Texas insurance policies under LIMIT OF LIABILITY state the following: Our limit of liability for loss will be the lesser of the: a. actual cash value of the stolen or damaged property; b. amount necessary to repair or replace the property with other of like kind and quality; or; c. amount stated in the declarations of this policy. e LIMIT OF LIABILITY listed above is the common language in most Texas motor vehicle policies. is policy language does not give the carrier the right

to deem the vehicle a total loss because the salvage value is high. In my experience, I have never seen a Texas policy that allows the carrier the right to do this.

However, we hear daily that carriers inform the insured they are deeming their vehicle a Total Loss because the salvage value is so high. e second step is to review the proposed settlement for the actual cash value of the vehicle to determine the accuracy. In Texas, the driving force of determining if the vehicle can be repaired is the proper actual cash value and the cost of the repair plan to safely return the vehicle to its pre-loss condition.

Whenever there is a dispute over step one or two, the insurer and the insured must look to the policy for relief. Most Texas policies have appraisal clauses, such as the one below, to resolve loss disputes in a fast and amicable manner: APPRAISAL If we and you do not agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will select a competent appraiser. e two appraisers will select an umpire. e appraisers will state separately the actual cash value and the amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding.

Each party will: 1. pay its chosen appraiser; and 2. bear the expenses of the umpire equally.

We do not waive any of our rights under this policy by agreeing to an appraisal.

As noted in the policy, all either party - the insurer or the insured - needs to do is not agree on the covered loss, and either party can invoke said right. e binding appraisal process is an extra-judicial means designed to avoid litigation on the issue of damages/loss. If the insured has suffered no prejudice due to delay, it makes little sense to prohibit the appraisal when it can provide a more efficient and cost-effective alternative to litigation. An appraisal is intended to take place before a suit is filed; courts have held it is a condition precedent to a suit. e appraisal process in most policies will allow the insured the relief needed to ensure they are made whole. e appraisal process in most policies grants the insured the right to remove the inexperienced claim handler’s ability to mismanage the claim and place it in the hands of experienced professionals to adequately manage the loss.

14 NOVEMBER 2019 Texas Automotive

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The 300 Advantage™

By Robert l. McDorman

In today’s world regarding motor vehicle insurance policies, claim management, frequent changes in insurance carrier claim handling policies and various GAP Addendums, there are many variables that could affect the resolution of the claim. Over the years, we have found it is always in the best interest of the insured or claimant to have their proposed insurance settlement reviewed prior to accepting. ere is never an upfront fee for Auto Claim Specialists to review a motor vehicle claim or proposed settlement and offer a professional opinion as to the fairness of the settlement. e spirit of the Appraisal Clause is to resolve loss disputes fairly and in a timely and cost-effective manner. rough the Appraisal Clause, loss disputes can be resolved relatively quickly, economically, equitably and amicably by unbiased, experienced and independent third-party appraisers when compared to mediation, arbitration and litigation.

Please call me should you have any questions relating to the policy or covered loss. We have most insurance policies and GAP Addendums in our library. Always keep in mind a safe repair is a quality repair, and quality equates to value. I thank you for your questions and look forward to any follow-up questions that may arise.

Sincerely, Robert L. McDorman

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15 NOVEMBER 2019 Texas Automotive

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Cover story

COLLISION CONFUSION: Inside the debate over “Opt-OE” Parts

If you want to survive as a collision repairer, then you need to get accustomed to swimming in alphabet soup on a regular basis. e typical auto body estimate has all kinds of letters, codes and numbers designed to point a shop and insurer to the methods necessary to complete the repair. However, a growing trend in the marketplace has cast a shadow over the appropriate use of certain “OEM” parts.

“Opt-OE,” “Alt-OE” or “Surplus OE” are terms commonly used to identify original automaker parts that have been sourced outside of traditional OEM dealers/suppliers. is includes OEM parts built for use in other countries but end up in the American marketplace despite potential incompatibility with American vehicle design and technical demands. While the presence of “OE” would suggest that recipients of these parts are utilizing proper, OEM-approved products, there is considerable confusion in regard to whether such parts truly fulfill a shop’s obligation to perform a complete repair as specified by the manufacturer.

Considering ABAT’s commitment to addressing pertinent industry matters as they arise, it came as no surprise that the “OptOE” dilemma was a topic of discussion at this year’s Texas Auto Body Trade Show. During a special OEM panel, Nicole Riedel of Subaru noted that the automaker is utilizing its special counterfeit unit to combat the spread of fake and foreign/“grey market” parts in legitimate OEM sales channels.

“It’s either coming through a retailer, or it’s not a genuine part. If you find our parts and they’re coming from someone who’s not a retailer, we want to know about it.”

“We’ve been working very closely to try to round-in the term and just make sure everybody’s following the same standards, which they’re not,” noted General Motors representative and fellow panelist Kelli Doherty. “Do we have some grey market [parts] that come in from Canada and Mexico? Absolutely. Do we have some ‘surplus’?

Yes, but it’s very, very small. It’s not even a truckload’s worth of parts.

We do have legitimate ‘Opt-OE’ parts that come through various channels that you’re familiar with, but it’s the grey area and the terminology that people are using ‘Opt-OE’ for an OE part, and that’s what we’re trying to tighten up on.”

Moving beyond the OEM parts definitions debate, panelist Clint Allen (Mercedes-Benz) used the discussion as an opportunity to reiterate his company’s stance on the use of aftermarket crash products.

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By Joel Gausten

“ere [are] no ‘aftermarket parts’ for us. Anything ‘aftermarket’ is all reverse-engineered [and] counterfeit. Mercedes doesn’t license anyone to make ‘aftermarket’ parts. If it’s not coming through your dealer, that’s not from us.”

While OEMs stress that shops can only guarantee the legitimacy of parts if they purchase them through approved sources, audience feedback during the OEM Panel indicated that parts of questionable origin and quality have somehow made their way into some Texas dealerships. is is in line with reports we received earlier this year that Toyota “Opt-OE” parts were being sold at dealerships in the New England region of the East Coast. In an official web article entitled “Don’t Opt for Opt-OE Parts” (toyotapartsandservice.com/collision/dont-opt-for-opt-oeparts), Toyota cautions that “Opt-OE” parts are “not Genuine Toyota Parts that have been designed to be distributed in the North American market.” Last summer at a Collision Industry Conference (CIC) in Indianapolis, we asked CIC panelist Eric Mendoza, manager of Toyota’s North American collision operations department, for clarification on the matter. Although he didn’t wish to directly define “Opt-OE” at CIC out of respect for the ongoing discussions on the subject already taking place at the forum via a special Parts & Materials Committee, he noted that “the question is coming from that ‘Opt-OE’ category and what’s getting dumped in that bucket more so than how the part was distributed and if it’s

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[through] authorized distribution.” He also confirmed that the terminology could find its way into legitimate North American wholesale parts operations.

“Our dealers are always encouraged to put parts in the ‘OptOE’ category because ‘Opt-OE’ is more appetizing to some of the people who are paying the bills for them. So, that muddies the water of what’s getting put into ‘Opt-OE’ and if it’s genuine.”

When even a major automaker admits to the existence in ambiguity in current parts definitions, repairers need to monitor the quality and safety – and, above all, the sources – of the parts they use very carefully. While parts terminology and classifications are seemingly still up for debate in this industry, there are some already willing to draw a line in the sand with respect to “Opt OE” and related verbiage.

As Aaron Schulenburg, executive director of the Society of Collision Repair Specialists (SCRS), noted during an Open Board of Directors Meeting earlier this year, “An OEM part is one that is made for and by a manufacturer, it comes in manufacturer packaging and comes from an authorized supply channel, such as a dealer. It would also come with an OEM warranty. If a part doesn’t meet those four categories, I think many of us believe it’s disingenuous to identify that as an OEM part.”

TXA

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Vendor spotlight

By Alana Bonillo

Innovative collision equipment

Chad Neal (left) and Rey Torres of Innovation Collision Equipment

e desire to teach and educate others has always been a driving force behind Chad Neal’s work. e owner of Innovative Collision Equipment and Paint Works started his career as a painter and body technician back in 1982 while living in Oklahoma.

He later moved to North Carolina, where he spent six years working for an independent shop. While there, he discovered a paint line called U-tech. In 1998, the death of his father led him to move to Texas, and he opened up Paint Works, which started off selling the U-tech line and soon after became a single-line distributor for AkzoNobel.

Before he opened his paint distribution business, Neal considered opening a body shop. But as a technician with 17 years of experience under his belt, he knew what the industry was lacking and what shops needed. He believed he could offer more by going the distributor route.

“I knew what it was like to not have anyone to call on. I decided to become a distributor instead, because I really wanted to have a technically based company that would help painters and techs by bringing them information on processes and procedures and things that help them. In

my day, distributors dropped off paint, and that was it. I love teaching and helping people, and I found this was a better fit for me, as I’m able to touch more people this way.”

He started out with one truck and a trailer in 1998 and opened his first location in Tyler in 1999. In 2014, he opened a second location in Louisiana and simultaneously started a second company solely for the distribution of equipment. at was when Innovative Collision Equipment was born. Neal says he was motivated to start this equipment distribution company based solely on how much technologies had been changing due to the advances in motor vehicles. “e evolution of cars and the equipment needed to repair cars will just make your head swim. ings aren’t the same as they were a few years ago, and it isn’t slowing down anytime soon.”

Neal’s operation continued to grow and now spans through parts of Texas, Louisiana and – as of April of this year – the Little Rock area of Arkansas. He sees himself as an “information provider” and spends most of his time on the road visiting customers.

“I am in contact with every single customer. I cover parts of three states. I go in and visit and look to see if they have anything that needs to be addressed.”

Training is another big element of what his companies offer.

“Almost every single person in my company came out of the body shop. We put on clinics, and we work with [customers] in their shops and help them improve and get better. Our technical expertise and body shop knowledge helps us help our customers run a better body shop.”

Neal’s belief in bringing information to the people is one of the many reasons he helped get ABAT off the ground. A founding member and seated member of the Board of Directors, Neal was there at the beginning.

“It’s about bringing the information to the people. ABAT is an educational resource. We bring people in from all over the country to educate us on how to run our businesses better.” e association has been doing that through its annual Texas Auto Body Trade Show, which Neal is proud to see get better every year.

“It all started with the idea of bringing vendors and shops together under one roof.”

Neal hopes the future will bring a chance to bring more regional groups together for an even stronger voice and to learn from each other. If strong associations begin in neighboring states, he would like to see them convene with ABAT for a oneday meeting; even more effective would be a national one with members from associations from all over the country.

When it comes down to his own goals and inspiration, Neal is motivated by just working to always improve.

“It’s about just trying to get better – not only with what we do, but also to help our customers and prospects alike to run a better body shop and repair vehicles correctly.”

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ABAT Member Profile

By Alana Bonillo Linear Automotive is one of the area’s most recognized and celebrated facilities.

Linear Automotive Linear Automotive has established itself as one of the most renowned facilities for collision repair and automotive care in the greater Plano area.

A family-run operation led by owner Joel Ozburn and his two nephews (Adam Godinez - general manager and Marcus Godinez production manager), Linear Automotive specializes in the repair of luxury European vehicles. Much of the shop’s success comes from excellent customer service and its ability to serve repeat consumers through its full-service center.

“We are a one-stop shop,” boasts Ozburn. “Our full-service department sets us apart from a lot of facilities.”

Ozburn had been in the business for decades before he took the helm at Linear Automotive eight years ago. Working as an operations manager for another company, he considered getting out of the industry, which was growing more difficult by the day due to constant pushback from insurance companies. But when an opportunity to take over a bankrupt (but fully equipped) shop presented itself, Ozburn just could not pass it up.

It was a bit of a struggle to get things off the ground at first.

Ozburn started off with limited funds, but once the ball got rolling, things took off.

“If I was going to do it [myself ], I was going to go all in and we were going to be everything I wanted us to be, or we weren’t going to do it. We were going to do everything to OE specs, do only high-quality work and get paid for exactly what we do.”

Since Ozburn took over, the business has grown at the rate of about 10 percent each year. is progress includes purchasing the building, expanding the crew to 15 members and continuously investing in training and updating equipment. Other family members have come on board since. Marcus’ stepdaughter, Bailey Trosper, does all the bookkeeping, payroll and accounting work, while Marcus’ son Gavin works after school in the summer.

Ozburn is proud to say they have never gone the DRP route.

“I have never needed someone to send me work.” e shop also takes an organic approach towards marketing.

Ozburn says they have never paid for any advertising; they do all their own marketing and have developed a strong presence online. ey are among the first shops anyone will find when they search for shops in the area. e crew also produces in-house videos for the shop’s website on topics of interest to their customers “When they pull up to your front door, they have to already

have been ‘wowed,’ and know they can trust you before they leave you with their car.”

As a member of ABAT, Ozburn enjoys the camaraderie and conversations with other shop owners about how to combat industry changes.

As equipment, training and other professional necessities continue to get more expensive, he is fully aware of how challenging it is for a shop owner to stay in business.

“A lawnmower repair Joel Ozburn of Linear Automotive with technician makes more per Calvin, the true star of the show. hour than we do. You have to be efficient and organized. You’ve got to stay on your game to stay in this business.” is is especially why he applauds the ABAT’s work earlier this year at the Capitol, where the association fought on shops’ behalf. “eir commitment to trying to get some laws passed that protect independent shops and small shops really drove me in this year.”

Ozburn is beginning to look ahead and plan for the future. In about five years, he would like to turn more responsibility over to his nephews so he can semi-retire and do some traveling. But being in this business leaves him with something he likely wouldn’t get in other professions. Serving customers comes with the satisfaction of knowing that he did things right and the shop presented a customer with a vehicle that “looks better than before [they] wrecked it.”

Every single member of the crew is available and interacts with each customer who comes in that door. is includes Ozburn’s dog, Calvin, who has become so popular with customers that many call on him by name. When this happens, Calvin happily trots over to greet them.

Ozburn believes that a love for customers and respect for their properly lead to lasting prosperity in the auto body field.

“It’s not just about cars and money; it’s creating relationships with customers and – when they drive away in that car – knowing that they trust you because you always do the right thing.”

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Industry Advice: AsK MIKE Is the Industry up to Speed on ADAS Procedures?

This month, we “AsK MIKE” to share some of his thoughts on whether collision repair facilities are properly researching and utilizing OEM repair procedures for advanced driver-assistance systems (ADAs). 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 industryrelated matter that he can answer in a subsequent issue.

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).

Texas Automotive: Based on your “Who Pays for What?” surveys through Collision Advice (collisionadvice.com) and what you’re seeing in person at shops across the country, where do you see the industry in terms of readiness for ADAS? Are they performing those repairs? Are they looking up the right information for these procedures?

Mike Anderson: ‘ADAS’ is a pretty broad subject. A lot of things fall into that category: Parking sensors, blind-spot monitors, adaptive cruise control, cameras in the mirrors – all kinds of things. I think what we have to understand is that every vehicle needs to be judged on its own merits, and every vehicle needs to be researched via that specific vehicle’s VIN and build data. Also, it seems that a lot of shops are subletting these processes to dealerships or mobile vendors. It’s important that those shops still research those procedures even when they sublet them out. ey should print them out, bring them to the dealership and say, ‘I need to make sure you do this procedure right here.’

As a good rule of thumb, whenever you’re going to do a repair in the vicinity of one of these ADAS components, you need to research to make sure you know of any repair or refinish limitations on that area. For example, Volkswagen says that if a bumper cover is damaged within the specific dimension of a specific area, you can’t do a repair or use filler. With a Chevy Equinox, you can’t paint a parking sensor.

Even if it’s just nicked, you need to make sure you replace it.

It’s also important to learn and understand the key research terms within the OEM repair procedures in order to find the right information that ensures a safe and proper repair. Words like ‘calibrate,’ ‘calibration,’ ‘recalibrate, ‘initialize,’ ‘initialization,’ ‘reinitialize,’ ‘relearn’ – those are good ones to look up.

I see shops not researching the procedures required when they disconnect the battery. I’ve seen some vehicles with seven pages of procedures for

disconnecting that battery. As we see more and more of these systems introduced into the collision repair environment, it makes it all the more critical that we research the OEM repair procedures.

When a new vehicle comes out, most if not all of the OEM websites have a ‘new car features’ section for it. is is sometimes referred to as ‘NCF.’ I think it behooves us to go into that section and read about the new features that are on that vehicle so we understand what those systems are called. For example, a Nissan Infiniti might say ‘intelligent cruise control,’ but Toyota calls it ‘adaptive cruise control.’ Knowing the specific names of these systems will lead us to know what keywords to use in our search terms in the OEM repair procedures.

TXA: Let’s talk about a more controversial topic.

We both know that a lot of insurers are reluctant to pay for something as basic as pre- and postrepair scanning. Looking at greater ADAS procedures, what have your surveys revealed as far as how successful shops have been in receiving compensation for this high level of work?

MA: Honestly, I don’t think compensation is the issue; I think the issue is that shops aren’t even researching or asking for it. Again, keep in mind we are talking about calibrations and such – not scanning. I don’t want to disrespect anybody, but there is a lack of knowledge and awareness on the collision repair side. I do estimating classes for several OEMs, and we have shops bring samples of their estimates in with them. I’ll ask, ‘Okay, how many of you have this on the estimate?’ A lot of people won’t have the operation itemized. Before we can get approval for reimbursement from an insurance company, we need to make sure we’re knowledgeable ourselves. I say this with love, but oftentimes we use the insurance companies as an excuse for our ignorance or lack of knowledge. Shops say insurers won’t pay for it, but that’s an easy copout when the reality is that they don’t even know enough to ask for it.

TXA

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