Page 1

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2010 GMC Terrain Small SUV

January 2010

COLLISION NEWS SCRS, MABA and AASP Address Paint Material Pricing Concern With Mitchell


Lexus’ First Supercar Redefines the Segment for the 21st Century

SCRS Effectively Minimizes Negative Ramifications of NCOIL Model Act Antitrust Repeal Amendment to Senate Healthcare Reform Act

MECHANICAL NEWS Congressional Support for Right to Repair Reaches 51

DEALER NEWS U.S. House Passes Omnibus Appropriations Bill Automotive Dealer Protection Arbitration Included

As the first Lexus supercar, the highly anticipated LFA serves as the flagship for the F portfolio of Lexus performance models and redefines the supercar for the 21st century. The Lexus F brand complements the core Lexus DNA by emphasizing serious performance. The LFA was carefully developed from a blank canvas by a small and dedicated team of hand-picked engineers that pushed every possible dynamic boundary. “The development of the LFA was

unlike any other Lexus,” said Mark Templin, Lexus division group vice president and general manager. “Minute details were engineered to provide an engaging and serious supercar that delivers impressive performance on and off the race track. Only 500 will ever be built worldwide, and each will be assembled to customer order, offering a once-ina-lifetime chance to be part of a small, exclusive group of individuals.” LFA Please Turn to Page 5


PERMIT NO. 00335

2010 SRX

Southern Automotive Journal P.O. Box 675097 Marietta, Ga 30006-0009 (770) 321-9920


IN-HOME: Dec. 1, 2008

Acura Jackson Acura


678.259.9500 877.622.2871 Nalley Acura 770.422.3138 800.899.7278 SONS Acura



Atlanta Classic Cars 678-924-4249 800-241-6086 678-924-4257




Global Imports 770.951.9389 800.235.2987 770.952.3390 Mini of South Atlanta 678.479.4622 800.959.2241 678.479.4695

866.961.SONS 770.968.5507

Jim Ellis Audi 770.955.2580 800.253.8242 Nalley Audi 678.795.3500 877.625.5393


Nissan Jim Burke Nissan 205.320.7320 866.320.7320 205.458.4452 Nalley Nissan



Global Imports BMW 770.951.9389 800.235.2987 BMW of South Atlanta 678.479.4622 800.959.2241 Nalley BMW 404.296.8644 800.622.2021 United BMW 770.476.8413 800.334.5645

770.952.3390 678.479.4695 404.297.9134 770.623.4320

Chrysler Jim Burke 205.320.7320 866.320.7320 205.458.4452


205.823.5237 Hayes 770.963.6263






Ivan leonard Chevrolet

205.823.5428 205.823.5237


800.239.5100 800.633.4304

Nalley Honda 770.306.4646 800.367.9834 SONS Honda 770.228.2888 800.243.4130 Tameron Honda



205.320.7320 Jaguar






Nalley 770.664.4408



Jim Burke Subaru

205.320.7320 866.320.7320 205.458.4452 Troncalli Subaru 770.889.8951 800.646.9438 770.889.2545 Suzuki Suzuki of Memphis 800.338.5481 800.338.5481 301.347.4207 Toyota


Limbaugh Toyota 205.788.9390 800.239.5050 205.780.5215 Nalley Toyota of Roswell 678.832.4300 877.594.8696 770.552.2365



770.964.8252 800.43.PARTS 678.815.1010 Kia of Town Center 770.423.4404 770.423.3518

Mazda Jim Ellis Mazda of Marietta

770.590.4468 800.543.4647 770.795.0645

Scion Limbaugh Scion

800-467-0699 205-443-7656

Kia Kia of Union City

770.590.4468 800.543.4647 770.795.0645


770.281.8645 877.625.5392 Nalley Infinti- Decatur 404.292.0831 800.522.3324 Izuzu

Jim Burke

Jim Ellis Porsche

770.216.7580 888.685.3280 770.216.7560 SAAB Jim Ellis SAAB of Marietta

Tameron Hyundai 800-467-0699 205-443-7656 Infinti Nalley Infinti- Marietta




Jim Burke

770.514.7408 800.966.5398 770.590.4132 Nalley Lexus Roswell 678.795.2050 877.495.3987 678.795.9606

205.788.9390 800.239.5050 205.780.5215 Nalley Scion of Roswell 678.832.4300 877.594.8696 770.552.2365


Lexus Nalley Lexus Marietta

205.979.3048 205.823.5238

Jim Burke Hyundai


404.292.4774 800.647.7278 404.297.6962 Nissan of Union City 770.306.9817 800-43-parts 770.964.5754 Nissan of South Atlanta 770.968.3582 800.422.6783 770.968.6938

Nalley Volvo 770.951.1043 800.782.9313 770.933.0118 Volvo of Memphis 800.338.5481 800.338.5481 301.347.4207


Jim Ellis 770.955.2580 800.253.8242 770.952.6199

Recycled Reconditioned Remanufactured Bumper Plus

770.422.Plus 888.492.Plus 770.422.7501

Sport and Import


Buyer’s Guide • Tear Out

General Motors Jim Burke 205.320.7320



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Volume 14 Issue No. 1 Southern Automotive Journal P.O. Box 675097 Marietta, Ga 30006-0009 (770) 321-9920 E-Mail

Jim Tucker Publisher Michele Tucker Editor

Contributors Dennis Martin Ami Vonesh Joyce Ethridge Russ Heaps Southern Automotive Journal (ISSN: 1092-6321) is published monthly by Southern Automotive Journal Inc. P.O. Box 675097, Marietta, Ga 30006-0009.SAJ accepts no responsibility for the opinions, views statements of the authors or for claims made by advertisers. Views expressed by writers are not necessarily those of the publication. Subscription: $12.00 per year. No representation is made as to the accuracy or the completeness of the information provided by this publication. Entire contents copyright 2009. All rights reserved.

Southern Automotive Journal

January 2010

LFA From Front Cover All 500 LFA supercars will be hand-assembled by skilled technicians in the “Lexus LFA Works” at the Motomachi Plant in Toyota City at a rate of no more than 20 per month. The rear-wheel drive LFA is dynamically styled and powered by a sophisticated new high-revving 9,000 rpm (redline) 4.8-liter V10 engine that generates 552 hp and 354 lb.-ft. of torque for adrenaline-fuelled 202- mph performance. This specially-developed powerplant is paired with a unique six-speed Automated Sequential Gearbox (ASG) with blazing-quick paddle-activated shifts for ultimate driver control. Linked by a rigid torque tube for excellent drivetrain integrity, the ASG is located in a transaxle layout over the rear axle for an optimal 48:52 front-to-rear weight distribution. Motorsport-developed lightweight aluminum alloy suspension components are complemented by Carbon Ceramic Material (CCM) brake discs and an innovative electrically assisted rack and pinion steering system.

Lightweight, powerful and balanced, the LFA features advanced Carbon Fiber Reinforced Polymer (CFRP) construction for its chassis and much of its bodywork to deliver a light, incredibly strong and impact-resistant structure. Rather than outsource this sophisticated materials technology, the LFA team took the radical step of developing its own CFRP processes internally for ultimate quality control and to make a sound engineering investment in the future. The LFA’s sporty styling is distinguished by coherent lines that flow from roof to sill in a seamless convex to concave line for sophisticated aerodynamics. Its front-mid engine layout, long wheelbase, short overhangs, and snug, low-slung cabin identify it as a supercar. CFRP also gave the LFA’s designers a far higher degree of design freedom, allowJanuary 2010

ing them to create shapes, curves and edges that would have been impossible with metal. For example, the sharp trailing edges at the rear of the LFA that help provide superlative aerodynamics would not have been possible had traditional metal been used for the bodywork. A dramatic low-slung cockpit has been intelligently designed and handassembled with the finest materials to reflect the car’s driver-centric dynamics. The intimate two-seat cabin has been conceived at every stage – ergonomics, acoustics, materials, comfort, versatility and visibility levels have all been painstakingly engineered – to put the driver at the center of the driving experience.n Southern Automotive Journal

SCRS Effectively Minimizes Negative Ramifications of NCOIL Model Act On November 19th - 21st the Society of Collision Repair Specialists (SCRS) participated in hearings held by the National Conference of Insurance Legislators (NCOIL) in New Orleans, Louisiana relative to a proposed model act on airbag fraud and being entertained by the NCOIL Property and Casualty committee. SCRS had previously provided testimony in opposition to the model at the summer NCOIL meeting held in Philadelphia, Pennsylvania, and has since been involved in at least seven interim conference calls with legislators held on both this particular model act, and another that addresses both aftermarket crash parts and steering. NCOIL model acts are developed and passed by NCOIL, and then made available for individual state’s legislators to consider for adoption within their own legisla-

Southern Automotive Journal

tive sessions. In the most recent November meeting, SCRS’ testimony of opposition, delivered by Executive Director Aaron Schulenburg, was paired with similar opposing testimonials from the Alliance of Auto Manufacturers (AAM), the Association of International Auto Manufacturers (AIAM) and various individuals representing automakers such as BMW and GM. The opposition was not against direct notification to the consumer, or more thorough documentation as outlined in the model; but was specifically over the perception that the model may legitimize the use of salvaged airbags by describing a proper process to follow if they are used in the repair process. It was also conveyed that the industries hold a tremendous amount of concern over the safety for the consumer and liability for the repair

January 2010

facilities that is tied to the use of salvaged airbags, a currently uncommon practice in collision repair facilities. In addition, the testimony offered by SCRS discussed concerns of the “unintended consequences” the model may have, which could generate a more widespread use of airbags, opening the door for insurers to specify these parts in claims settlement, which was seemingly legitimized through the original language in the model. The preliminary hearing was held on Thursday, November 19th with a vote held on Saturday, November 21st. After the preliminary hearing, SCRS offered an interim update via email to its affiliate associations urging the state affiliates and its members to immediately start on a grassroots outreach to NCOIL Please Turn to Page 25

Collision Repair For The 2010 Chevrolet Camaro The new 2010 Chevrolet Camaro is built on a General Motors global rearwheel drive platform and shares some of the same chassis parts with the Pontiac GTO and G8. Although the new Camaro looks like a 1969 Camaro, it is quite different from a collision repair point of view. This article will cover some of the repair options and considerations when working on a collision-damaged Camaro. General Motors body repair procedures can be accessed at the GM GoodWrench Collision Technical Repair Information web site. To access service information for mechanical and electronic systems, visit The front half of a front lower rail may be sectioned using two separate procedures for the inner and outer rails. However, either of these may be done individually if damage is limited to only one side. The cut locations between the inner and outer rails are slightly offset


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from each other. For the inner rail, the cut location is identified by measuring from a reference hole (see Figure 1). The outer rail is sectioned at the rear edge of the strengthening bead located between the wheelhouse reinforcements. Different joints are used for the inner and outer rails. A butt joint with backing is specified for the inner rail, using a 25 mm sleeve for the backing. The sleeve can be made from an unused portion of the service part. For the outer rail, a flanged lap joint is specified. This involves creating a stepped flange on the service part that fits under the remaining portion of the original rail during installation. Both joints are welded with a combination of GMA (MIG) plug welds and seam welds. The complete upper rails are available as service parts and replaced at factory seams. The outer rocker panels may be sectioned on any of the straight areas on the bottom edge of the door openings.

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A sectioning joint on the outer rocker panel should be done using a 25 mm overlap joint. The service part is cut to overlap the original outer rocker panel 25 mm. The joint is then seam welded. The rocker panel reinforcements are made from cold-rolled martensitic ultra-high-strength steel (UHSS) and cannot be straightened or sectioned (see Figure 2). The entire rocker panel reinforcement must be replaced at factory seams if damaged. During removal, it is recommended to remove spot welds from the backside of the part where possible because UHSS is difficult to drill. UHSS is also more sensitive to heat than mild steel, so it may be a good idea to alternate plug weld locations during installation to avoid creating a heat-affect zone. The lower outer A-pillar may be sectioned on the straight areas of the upper A-pillar and rocker panel. A 50 Camaro Please Turn to Page 21



email email

January 2010

Southern Automotive Journal

NCOIL Property and Casualty Committee Approves Model Airbag Fraud Act The National Conference of Insurance Legislators' Property and Casualty Insurance Committee has passed the Model Act Regarding Auto Airbag Fraud. The model act was, however, amended to include restrictions on the use of salvage airbags as an option for airbag replacement. A permanent

sticker must be placed on the dashboard of the vehicle stating that the vehicle contains a salvage airbag. This model legislation is a recommendation only to state legislatures. Members of the Automotive Service Association (ASA) contacted their state legislators who are members of

NCOIL's Property and Casualty Insurance Committee in opposition to the salvage airbag provisions of the model act. NCOIL has delayed action on the Model Act Regarding Motor Vehicle Crash Parts and Repair until its next meeting. ASA also opposes this proposed legislation.n

OTC Adopts Coatings Resolution Falls Short on Equipment Requirements The Ozone Transport Commission (OTC) adopted a resolution, the Model Rule for Motor Vehicle and Mobile Equipment Non-Assembly Line Coatings Operations, at its recent fall meeting in Baltimore. The OTC was established by the U.S. Environmental Protection Agency (EPA), under the Clean Air Act, to ensure

Southern Automotive Journal

the development and implementation of regional strategies to reduce concentrations of ground-level ozone to healthful levels in the Northeast and Mid-Atlantic regions. Member states include: Connecticut Delaware District of Columbia

January 2010

Maine Maryland Massachusetts New Hampshire New Jersey New York Pennsylvania Rhode Island Vermont Virginia The resolution states "the OTC member states will pursue as necessary and appropriate state-specific rulemakings to update state rules in accordance with the OTC Model Rule for Motor Vehicle and Mobile Equipment Non-Assembly Line Coatings Operations." The OTC followed the California Air Resources Board Suggested Control Measure for Automotive Coatings, which was released in October of 2005. In addition to volatile organic compound (VOC) limits outlined in the Model Rule, the OTC proposal contains equipment, training and recordkeeping requirements. The rule does not go as far as the U.S. Environmental Protection Agency's auto refinishing regulation with regard to equipment requirements, i.e., requiring a spray booth. These federal U.S. EPA regulations will be effective for existing collision shops in early 2011. The compliance date for the OTC Model Rule is Jan. 1, 2012.n

House Financial Services Committee Passes Federal Insurance Office Act Includes Study on Insurance Modernization and Improvement The U.S. House of Representatives Committee on Financial Services has passed H.R. 2609, the "Federal Insurance Office Act," by a unanimous voice vote. H.R. 2609, introduced by Rep. Paul E. Kanjorski, D-Pa., chairman of the Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises, will establish an Office of Insurance Information in the Department of the Treasury. Rep. Melissa Bean, D-Ill., and Rep. Ed Royce, R-Calif., offered an amendment to H.R. 2609 that requires the director of the Federal Insurance Office to conduct a study on how to modernize and improve the system of insurance regulation in the United States. The study will consider the following:

• Effective systemic risk regulation with respect to insurance.
• Strong capital standards and an appropriate match between capital allocation and liabilities for all risk.
• Meaningful and consistent consumer protection for insurance products and practices.
• Increased national uniformity through either a federal charter or effective action by the states. Both Bean and Royce have been advocates for an optional federal insurance charter, including property and casualty insurers. Earlier in the 111th Congress, they introduced H.R. 1880, which provides for an optional federal insurance charter. The Automotive Service Association (ASA) supports H.R. 1880, specifically the federal regulation

of property and casualty insurers. There are other key purposes for the Federal Insurance Office Act. The committee believes H.R. 2609 will leverage the federal government's expertise regarding the insurance industry. The Federal Insurance Office would offer a unified voice on insurance matters for the United States in global deliberations. Though the industry remains segregated by states, today's financial markets are global, with the committee concluding that a cohesive voice might strengthen the United States' role in the global industry. The final purpose of H.R. 2609 is to increase the knowledge base at the federal level to promote stability in the U.S. financial system.n

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Southern Automotive Journal

Leahy Files Antitrust Repeal Amendment to Senate Healthcare Reform Act Sen. Patrick Leahy, D-Vt., chairman of the U.S. Senate Judiciary Committee, has filed an amendment to the Patient Protection and Affordable Care Act, H.R. 3590, to repeal the McCarran-Ferguson Act for health insurers. “This amendment will prohibit the most egregious anticompetitive conduct-price fixing, bid-rigging and market allocations-conduct that harms consumers, raises health care costs, and

for which there is no justification,” said Leahy. “Subjecting health and medical malpractice insurance providers to the antitrust laws will enable customers to feel confident that the price they are being quoted is the product of a fair marketplace.” The amendment contains language previously offered in September by Leahy in the “Health Insurance Industry Antitrust Enforcement Act,” S. 1681.

The Automotive Service Association (ASA) sent a letter to Leahy in support of his amendment. ASA still has concerns with the underlying health care reform legislation. “Chairman Leahy’s McCarran repeal amendment is the first step toward meaningful insurance reform. ASA appreciates the chairman’s efforts for a full repeal of McCarran-Ferguson in the past,” said Bob Redding, ASA Washington, D.C., representative. “Our goal is to see the repeal one day apply to property and casualty insurers, too.” Your order is urgent to your business The U.S. House of Your order needs to be accurate Representatives’ health Your order is essential to your customer care reform bill includes Acura Vehicles and Acura Parts language similar to the Leahy amendment. H.R. 3962, the “Affordable Health Care for America Act,” was passed on the Call Kenny McMillan, House floor in a vote of Your Trusted Name in Acura Parts 220-215 in November. The “Health Insurance Industry Direct Antitrust Enforcement Act” is co-sponsored by 18 senators and supToll Free ported by U.S. Senate Majority Leader Harry Reid, D-Nev. Senate coFAX sponsors include Sens. Maria Cantwell, DWash., Richard Durbin, D-Ill., Russ Feingold, Wis., Dianne Feinstein, D-Calif., Chuck Schumer, D-N.Y., Arlen Specter, DPa., Claire McCaskill, DMo., Ron Wyden, D-Ore., Al Franken, D-Minn., Sheldon Whitehouse, D-R.I., Ted Kaufman, DDel., John Rockefeller, D -W.V., Roland Order From us to Increase Your Chances to Win Burris, D-Ill., Michael Bennet, D-Colo., Frank 1ST Place VIZIO 42" HDTV Flat Screen Lautenberg, D-N.J., with Vizio High Definition Sound Bar John Kerry, D-Mass., nd 2 Place VIZIO 36" HDTV Flat Screen and Joe Lieberman, IThird Place: $200 PLUS Weekly giveaway is 100 "OPA BUCKS" which can be used as a Conn.n discount or payment toward a purchase from any OPA member.

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Southern Automotive Journal

January 2010

U.S. House Passes Omnibus Appropriations Bill Automotive Dealer Protection Arbitration Included The U.S. House of Representatives has passed, in a vote of 222-202, the Fiscal Year 2010 Financial Services and General Government Appropriations Bill as part of the Omnibus Appropriations Conference Agreement. The Financial Services portion of this $446.8 billion omnibus spending bill, H.R. 3288, is $24 billion. Included in the Omnibus Appropriations bill is protection for automobile dealers targeted for closure by General Motors and Chrysler. These provisions, negotiated by Rep. Steny H. Hoyer, D-Md., majority leader of the House; Rep. Chris Van Hollen, D-Md.; and Sen. Richard J. Durbin, D-Ill., Senate majority whip; create an arbitration process under which the arbitrator must examine the economic interests of the dealerships, the company and the public


when considering reinstatement of the canceled agreements. The factors to be considered by the arbitrator shall include: • The covered dealership's profitability in 2006, 2007, 2008, and 2009
• The covered manufacturer's overall business plan
• The dealership's current economic viability
• The dealership's satisfaction of the performance objectives established pursuant to the applicable franchise agreement
• The demographic and geographic characteristics of the covered dealership's market territory
• The dealership's performance in relation to the criteria used by the covered manufacturer to terminate, not renew, not assume or not assign the covered dealership's franchise agreement
• The length of experience of the covered dealership.

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To view the entire text pertaining to the protection for auto dealers, see the attachment below. Fiscal Year 2010 Financial Services and General Government Appropriations Omnibus Appropriations Bill SEC. 747. (a) DEFINITIONS.-For purposes of this section the following definitions apply: (1) The term "covered manufacturer" means (A) an automobile manufacturer in which the United States Government has an ownership interest, or to which the Government has provided financial assistance under title I of them Emergency Economic Stabilization Act of 2008; or (B) an automobile manufacturer which acquired more than half of the

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Southern Automotive Journal


SCRS, MABA and AASP Address Paint Material Pricing Concern With Mitchell Body and refinish materials represent a significant and continually growing component in the overall cost of an auto body repair; therefore, it is critically important that the cost-accounting of these materials be as accurate as practically possible. The “refinish calculators” presently available from several vendors, with new offerings presently under development, offer the potential for more detailed and accurate calculations of these costs compared with the “dollars times refinish hours” approach that has been prevalent in the United States for several decades now. Two of the primary reasons that these refinish calculators claim increased accuracy is because they a) factor in cost variations that may be present relative the specific color (paint code) in use, and b) their pricing is regularly updated to reflect the most current paint manufacturer pricing. The Mitchell Refinish Materials Calculator (RMC) is one such product. Beginning in the year 2006, and in parallel with significantly rising petroleum costs, the auto body industry experienced significant increases in the cost of paint and paint-related materials. During

this same time period, some individual RMC end-users began to experience what they perceived as an apparent disconnect between published paint manufacturer price increases and the accompanying RMC calculation increases. In simple terms, it appears to the product users that suggested refinisher paint costs have increased in price at a pace that significantly exceeds the frequency and amount of the increases reflected in the the periodic RMC data updates. These RMC end-users, through their affiliations with national and regional trade associations, took it upon themselves to investigate the matter further. The trade associations involved in addressing the concerns are the Massachusetts Auto Body Associations (MABA), the Society of Collision Repair Specialists (SCRS), and the Alliance of Automotive Service Providers (AASP). Beginning in 2008, the above three associations began to jointly and formally interact with Mitchell on this issue. Our objectives were clear and focused: We sought a better understanding of the intended relationship between RMC calculations and “suggested cost to refinisher” pricing.

We sought an explanation of what we saw as a disparity between RMC calculations and the rising material costs. If the investigation revealed errors in RMC calculations and/or process, we sought reasonable disclosure to RMC end-users and a prompt and reasonable process toward correction, if warranted. From October 2008 to the present, there have been several interactions with Mitchell in an effort on our part to accomplish the above three objectives. These interactions have included written communications, numerous conference calls, as well as a face-to-face meeting at Mitchell’s San Diego headquarters. Early on within this process, we concluded that an audit of RMC data, in direct parallel with a compilation of paint manufacturer pricing data, was the most clear and direct approach to either identifying any existing issues or to clarifying any data misinterpretations that may have existed on our part. Mitchell agreed to this audit and furthermore agreed to have the results of this exercise be shared transparently both with our trade associations and Paint Material Pricing Please Turn to Page 21

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January 2010

President Plans to Accelerate Job Growth Through Small Businesses Legislation Will Be Offered in 2010

President Barack Obama recently announced his proposal for reducing the high unemployment rate that continues to plague the United States. Congressional Democrats and the White House hope to enact legislation by next year to address the jobs issue. In a speech Dec. 8, Obama outlined his proposals - many of which would build on efforts that were part of the economic stimulus bill enacted in February, additional tax breaks and spending focused on infrastructure projects, energy conservation programs and small businesses. Specifically pertaining to small businesses, the president outlined the following key points for helping small businesses to increase investment, hire workers and access credit: • Tax cuts to support additional business investment next year - with a particular focus on struggling small businesses - with much of the cost recouped over time. 
• Zero capital gains for small businesses: To encourage investment by small businesses and improve their

access to capital, the administration is calling for a one-year elimination of the tax on capital gains from new investments in small business stock. The Recovery Act allowed a 75 percent exclusion from capital gains taxes on small business investments. 
• Extension of enhanced expensing provisions for small businesses: The administration is also calling for the extension through 2010 of the Recovery Act provision that allows small businesses to immediately expense up to $250,000 of qualified investment. 
• Extension of Recovery Act bonus depreciation tax incentive: To give businesses an incentive to invest, the administration is calling for extending the Recovery Act provision that accelerates the rate at which business can deduct the cost of capital expenditures. This provision will put more than $20 billion in the hands of businesses in 2010, while enabling the U.S. Treasury to recoup much of the funding as businesses regain their strength. 
• A new tax cut for small businesses to

January 2010

encourage hiring in 2010. Although the economy is now growing again, many businesses remain reluctant to hire. In this economic environment, an employment tax cut for small businesses has the potential to accelerate the pace of hiring. The administration believes it is important to provide a short-term tax incentive to encourage small business hiring and support employment, and it will work with Congress to design a provision that accomplishes these goals. 
• The president called for the elimination of fees and an increase in guarantees for loans through the Small Business Administration (SBA), a measure that extends provisions in the Recovery Act through the end of 2010. In addition, the president called for continued Treasury efforts to use the Troubled Asset Relief Program (TARP) to support small business lending. The Congress may opt to include additional incentives for small businesses during the legislative process next year.n

Southern Automotive Journal


Omnibus Bill From Page 11 assets of an automobile manufacturer in which the United States Government has an ownership interest, or to which the Government has provided financial assistance under title I of the Emergency Economic Stabilization Act of 2008. (2) The term "covered dealership" means an automobile dealership that had a franchise agreement for the sale and service of vehicles of a brand or brands with a covered manufacturer in effect as of October 3, 2008, and such agreement was not assigned in the form existing on October 3, 2008 to another covered manufacturer in connection with an acquisition of assets related to the manufacture of that vehicle brand or brands, not renewed, or not continued during the period beginning on October 3, 2008, and ending on December 31, 2010. A covered dealership that was not lawfully terminated under applicable State law on or before April 29, 2009, shall have the right to seek, through binding arbitration, continuation, or reinstatement of a franchise agreement, or to be added as a franchisee to the dealer network of the covered manufacturer in the geographical area where the covered dealership was located when its franchise agreement was terminated, not assigned, not renewed, or not continued. Such continuation, reinstatement, or addition shall be limited to each brand owned and manufactured by the covered manufacturer at the time the arbitration commences, to the extent that the covered dealership had been a dealer for such brand at the time such dealer's franchise agreement was terminated, not assigned, not renewed, or not continued. (c) Before the end of the 30-day period beginning on the date of the enactment of this Act, a covered manufacturer shall provide to each covered dealership related to such covered manufacturer a summary of the terms and the rights accorded under this section to a covered dealership and the specific criteria pursuant to which such dealer was terminated, was not renewed, or was not assumed and assigned to a covered manufacturer. (d) A covered dealership may elect 14

Southern Automotive Journal

to pursue the right to binding arbitration with the appropriate covered manufacturer. Such election must occur within 40 days of the date of enactment. The arbitration process must commence as soon as practicable thereafter with the selection of the arbitrator and conclude with the case being submitted to the arbitrator for deliberation within 180 daysof the date of enactment of this Act. The arbitrator may extend the time periods in this subsection for up to 30 days for good cause. The covered manufacturer and the covered dealership may present any relevant information during the arbitration. The arbitrator shall balance the economic interest of the covered dealership, the economic interest of the covered manufacturer, and the economic interest of the public at large and shall decide, based on that balancing, whether or not the covered dealership should be added to the dealer network of the covered manufacturer. The factors considered by the arbitrator shall include (1) the covered dealership's profitability in 2006, 2007, 2008, and 2009, (2) the covered manufacturer's overall business plan, (3) the covered dealership's current economic viability, (4) the covered dealership's satisfaction of the performance objectives established pursuant to the applicable franchise agreement, (5) the demographic and geographic characteristics of the covered dealership's market territory, (6) the covered dealership's performance in relation to the criteria used by the covered manufacturer to terminate, not renew, not assume or not assign the covered dealership's franchise agreement, and (7) the length of experience of the covered dealership. The arbitrator shall issue a written determination no later than 7 business days after the arbitrator determines that case has been fully submitted. At a minimum, the written determination shall include (1) a description of the covered dealership, (2) a clear statement indicating whether the franchise agreement at issue is to be renewed, continued, assigned or assumed by the covered manufacturer, (3) the key facts relied upon by the arbitrator in making the determination, and (4) an explanation of how the balance of economic interests supports the arbitrator's determination. (e) The arbitrator shall be selectJanuary 2010

ed from the list of qualified arbitrators maintained by the Regional Office of the American Arbitration Association (AAA), in the Region where the dealership is located, by mutual agreement of the covered dealership and covered manufacturer. If agreement cannot be reached on a suitable arbitrator, the parties shall request AAA to select the arbitrator. There will be no depositions in the proceedings, and discovery shall be limited to requests for documents specific to the covered dealership. The parties shall be responsible for their own expenses, fees, and costs, and shall share equally all other costs associated with the arbitration, such as arbitrator fees, meeting room charges, and administrative costs. The arbitration shall be conducted in the State where the covered dealership is located. Parties will have the option of conducting arbitration electronically and telephonically, by mutual agreement of both parties. The arbitrator shall not award compensatory, punitive, or exemplary damages to any party. If the arbitrator finds in favor of a covered dealership, the covered manufacturer shall as soon as practicable, but not later than 7 business days after receipt of the arbitrator's determination, provide the dealer a customary and usual letter of intent to enter into a sales and service agreement. After executing the sales and service agreement and successfully completing the operational prerequisites set forth therein, a covered dealership shall return to the covered manufacturer any financial compensation provided by the covered manufacturer in consideration of the covered manufacturer's initial determination to terminate, not renew, not assign or not assume the covered dealership's applicable franchise agreement. (f) Any legally binding agreement resulting from a voluntary negotiation between a covered manufacturer and covered dealership(s) shall not be considered inconsistent with this provision and any covered dealership that is a party to such agreement shall forfeit the right to arbitration established by this provision. (g) Notwithstanding the requirements of this provision, nothing herein shall prevent a covered manufacturer from lawfully terminating a covered dealership in accordance with applicable State law.n

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ASA Announces Benefit Agreement with Airbag Solutions ASA Members Save 20 Percent on Database Subscriptions The Automotive Service Association (ASA) is pleased to announce a new member benefit agreement with Airbag Solutions, an online pictorial database displaying OEM requirements for servicing airbag and restraint systems after deployment. The Airbag Solutions database is sold in annual, one-month or one-day subscriptions and covers more than 3,500 vehicles from years spanning 1988-2010. ASA members save 20 percent on annual and monthly subscriptions.

Airbag Solutions provides photographs rather than drop-down screens or pencil sketches so users see which components are required and where they are located, allowing users to eliminate supplements, simplify airbag repairs and reduce cycle times. "Airbag Solutions provides to the ASA member quality repair information in an easily accessible subscription format," said John Scully, ASA's executive vice president. "I am confident the addition of Airbag Solutions to our benefit

portfolio will be a plus for our association." Airbag Solutions subscribers will learn about potential peripheral damage to check, understand airbag light resetting procedures, as well as scanner and fault code information. "We are delighted to have this opportunity to partner with ASA to bring much needed clarity to the confusing landscape of airbag service information," said Ruth Weniger, chief executive officer of Airbag Solutions.n

Congressional Support for Right to Repair Reaches 51 Congressional support of the Motor Vehicle Owners’ Right to Repair Act (HR 2057) has reached 51, it was announced recently by Kathleen Schmatz, president and CEO of the Automotive Aftermarket Industry Association (AAIA). Reps. Brian Bilbray (R-CA), Donna Christensen (D-VI), Elijah Cummings (D-MD), Lloyd Doggett (D-TX), Grace Napolitano (D-CA), Collin Peterson (DFLMN) and Laura Richardson (D-CA) are the most recent co-sponsors of the Right to Repair Act, which has gained steady support since its introduction. “We applaud these seven members of Congress for backing this critical piece of pro-consumer and pro-small business

legislation,” said Schmatz. “Every single person who owns or operates a vehicle stands to suffer economically if the Right to Repair Act is not passed.” A new study conducted by John Dunham and Associates for the Automotive Aftermarket Industry Association (AAIA) and the Coalition for Auto Repair Equality (CARE) shows that consumers greatly benefit from a competitive vehicle repair marketplace. According to the study, independent auto repair shops save American consumers nearly $26 billion annually or $360 per family. The data is available not only by state, but by congressional district, and can be viewed at www.guerril-

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January 2010 “This new study shows that the automotive aftermarket and its independent repair shops are a central part of the U.S. economy. With the significant dollars at stake, it’s not hard to figure out why the car manufacturers want to retain control of the non-proprietary repair information, tools and software needed by independent repair shops to service late model vehicles,” said Ray Pohlman, president of the Coalition for Auto Repair Equality (CARE). “Passage of the Right to Repair Act will prevent a vehicle repair monopoly by ensuring that consumers have safe and affordable choices when it comes to auto repair.”n

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J.D. Power and Associates Reports: Despite Higher Customer Satisfaction with the New-Vehicle Sales Process, Automotive Brands, on Average, are Losing 12 Percent of Buyers to Competitors Due to Poor Customer Treatment Overall satisfaction with the new-vehicle purchase experience has improved from 2008, but automakers are losing 12 percent of new-vehicle sales to other brands, on average, as a result of poor customer treatment at dealerships, according to the J.D. Power and Associates 2009 Sales Satisfaction Index (SSI) Study(SM) released recently. The study is a comprehensive analysis of the new-vehicle purchase experience. Overall customer satisfaction is measured for five factors: dealership facility; salesperson; paperwork/ finance process; delivery process; and vehicle price. Overall satisfaction averages 836 points on a 1,000-point scale in 2009, up by 11 points from 2008(1). Satisfaction with each of the five factors improves from 2008, with the greatest improvements in the two areas that are most within the dealer’s control--the salesperson and delivery process factors. In particular, salespeople have improved most notably from 2008 in helping buyers stay within their budgets and in negotiating prices quickly. Within the delivery process, dealerships have improved considerably in providing complete explanations of the owner’s manual and explaining vehicle features. “In this difficult economy, dealerships are working particularly hard to close sales, but need to be attentive to customers without exerting unwanted sales pressure,” said Jon Osborn, director of automotive research at J.D. Power and Associates. “Nearly one in four buyers in 2009 reports experiencing sales pressure from their selling dealer.” The study finds that more than one in five shoppers who leave a dealership without purchasing a vehicle do so because they experienced poor treatment or dealer performance issues such as pricing games, sales pressure tactics or discourteous treatment. While 43 percent of these buyers ultimately purchased from a different dealer of the same brand, 57 percent decided to pur-

chase from a different brand altogether. in 2009, and is the most-improved brand For the industry as a whole, this equals this year. a 12 percent loss of retail sales to other The study findings also include the brands. following key trends: “With the billions of dollars that On average, new-vehicle buyers automakers spend designing, producshop at fewer than three dealerships, ing and marketing new vehicles, as well including the dealership from which as in driving customers to showrooms, they ultimately purchased. Nearly oneit is critical that potential buyers are not half (49%) of all new-vehicle buyers visit pushed out the dealer’s door because of a only their selling dealer during the purpoor customer experience,” said Osborn. chase process. Therefore, dealers should “Manufacturers and dealers should be view all shoppers as serious prospects concerned with the experiences of all and treat them accordingly. shoppers, whether they purchase or not. Satisfaction scores among buyers From a buyer’s perspective, recollections who visited only the selling dealer (848, of their shopping experience include not on average) are considerably higher only the selling dealer, but also all of the than those of customers who visited other dealers they visited.” more than one dealer (826, on average). Sales Satisfaction Index Segment Customers who have a particularly satisRankings fying experience at the first dealer they Of the 38 brands included in the visit are less likely to shop other dealers. study, 29 have improved from 2008. The 2009 Sales Satisfaction Index Jaguar receives an award for a second (SSI) Study is based on responses from consecutive year and ranks highest in approximately 48,000 new-vehicle 2009 among luxury brands in satisfying buyers who purchased or leased their buyers with the new-vehicle sales pronew vehicles in May or June 2009. The cess. Jaguar performs particularly well in study was fielded between August and the salesperson and paperwork/finance October 2009. To view ratings on cusprocess factors. Following Jaguar in the tomer satisfaction with the new-vehiluxury brand rankings are Cadillac, Lexus cle sales process or an article on study and Mercedes-Benz (in a tie) and Land results, visit Rover, respectively. Among mass market brands, Mercury ranks highest and perCheck us out on the Web forms particularly well in all five tors. Following in the mass market segment rankToll Free Direct ings are smart, Buick, Pontiac and Chevrolet, respecFAX tively. All seven Ford and GM mass Finished Bumpers In Stock market brands rank Recondition Your Bumpers above the segment Recycling Program average. M I N I Competitive Pricing improves by 16 Inventory, Pricing & Ordering on the Web rank positions from 400 Glover Street • Marietta, GA 30060 2008 to rank sixth

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ASA Joins Diverse Coalition in Effort to Protect Parts Quality, Safety

The Automotive Service Association (ASA) has joined other major associations in distributing a letter to both the U.S. Senate Judiciary Committee and the U.S. House of Representatives Judiciary Committee in opposition to legislation that would create an exception from infringement of design patents for certain component parts, including automotive parts, used to repair another article of manufacture. A coalition of original equipment manufacturers (OEMs), intellectual property organizations and other broad-based business associations asked U.S. Sens. Patrick Leahy, D-Vt., and Jeff Sessions, R-Ala., chairman and ranking member of the U.S. Senate Committee on the Judiciary, respectively, to oppose Senate Bill 1368, the Access to Repair Parts Act. The coalition also contacted Reps. John Conyers, D-Mich., and Lamar Smith, R-Texas, chairman and ranking member of the U.S. House of Representatives Committee on the Judiciary, respectively, to oppose House

Bill 3059, S. 1368’s companion bill. This coalition includes: Alliance of Automobile Manufacturers (Alliance) American Automotive Policy Council (AAPC) American International Automobile Dealers Association (AIADA) Association of Equipment Manufacturers (AEM) Association of International Automobile Manufacturers (AIAM) Automotive Service Association (ASA) Global Intellectual Property Center (GIPC) Intellectual Property Owners Association (IPO) Michigan Intellectual Property Law Association (MIPLA) National Association of Manufacturers (NAM) National Association of Minority Automobile Dealers (NAMAD) National Automobile Dealers Association (NADA) United Automobile Workers of America (UAW)

United States Hispanic Chamber of Commerce (USHCC) ASA opposes this legislation because of concerns about automotive parts quality. There is no comprehensive national automotive parts policy for quality and safety. The coalition wrote: “Manufacturers of unlicensed automobile parts have to meet only one basic threshold, to produce a copy that looks similar to an original part. Those who produce such parts incur no costs attributable to original design, research and development and most importantly, product safety testing. Accordingly, the manufacturer of the original product for whom such unlicensed replacement parts are made does not know how these parts will perform and how their use will impact the quality and integrity of the original product. Automotive collision repairers are very concerned about the quality of replacement crash parts. Permitting this intellectual property infringement also exposes consumers to significant safety, performance or durability risks.”n

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Paint Material Pricing From Page 12 with the industry at large. Unfortunately, we are disappointed that through all the efforts over the last year and a half, we do not feel as if much progress has been made toward achieving our three main objectives. At the association level, we find ourselves frustrated, but more importantly obligated at this point in time to share with our membership the issues we have Camaro From Page 7 mm backing is specified for the A-pillar sectioning joint. The backing should be trimmed to fit behind the sectioning joint and is attached with plug welds to the vehicle and service part. For the rocker panel sectioning joint, an overlap joint is specified. The B-pillar reinforcement is made from high-strength, low alloy steel. The sectioning joint should be located 50 mm below the sectioning joint for the outer B-pillar. Refer to the quarter panel sectioning procedure for sectioning the outer B-pillar. A butt joint with backing is used for the B-pillar reinforcement sectioning joint (see Figure 4). The backing can be made from an unused portion of the service part. The quarter panel may be replaced by sectioning the upper portions of the B- and C-pillars and the rocker panel. The illustrations in the procedure show the general locations for the cuts.

identified and our efforts at resolving them. While Mitchell has stated that they remain committed to interacting with our trade association representatives, we must frankly convey our frustration at the overall process and lack of conclusion. Mitchell seemingly does not share our concern or sense of urgency in this matter based on the fact that after all this time they have not addressed our concerns in a manner that we feel satisfies our obligation to our members and

our industry. We are committed to both work with Mitchell towards the above stated goals, and to continue to report back to the industry with the results of this effort. While one might conclude that a refinish calculator is of lesser significance than an estimating platform, we contend that the concept and need for the greatest practical level of data accuracy applies equally to both product types.n

The B-pillar reinforcement is used as a backing for the outer B-pillar sectioning joint (see Figure 4). For the upper C-pillar, a 50 mm backing is specified for the sectioning joint. The backing should be made from an unused portion of the replacement part and is attached to the vehicle and service part with GMA (MIG) plug welds, spaced 40 mm apart. Also note that the foam carrier can be used as a dam for installing replacement foam (see Figure 5). The plastic carrier is available as a replacement part. General Motors requires the application of weld-through primer to all welding surfaces. Also, use a skip or stitch type of welding method when making seam welds to control heat. It is commonly recommended to trim service parts to allow a 1½ metal thickness root gap for sectioning joints. The occupant classification system is designed to turn the front passenger airbag OFF if it is not occupied, or occupied by a small child. General Motors

refers to this system as the passenger presence system (PPS). The PPS on most GM vehicles requires replacement as an entire calibrated assembly, including the sensor pad, seat cushion foam, and the control module. However, the Camaro has a new type of PPS that allows the control module or seat cushion to be replaced separately (see Figure 6). The PPS must be rezeroed if any parts of the system have been replaced or the seat cushion trim attachments have been removed. However, the 2010 Camaro is not supported by the Tech 2 scan tool. A multiple diagnostic interface (MDI) unit (see Figure 7) and global diagnostic system (GDS) software is required for rezeroing the PPS on a 2010 Camaro. Although the 2010 Chevrolet Camaro has a nostalgic appearance on the outside, the construction and repair methods required are entirely modern. There are several partial replacement procedures that make this car quite repairable in the event of a collision. n

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GMC Forges New Ground With All-New 2010 Terrain Small SUV screens Standard OnStar and XM Satellite Radio. Segment-best safety is anticipated, with features that include fourwheel disc brakes with StabiliTrak electronic stability control and traction control, as well as six standard air bags: dual frontal air bags; head curtain side air bags and pelvic/thorax seatmounted side air bags. OnStar with one-year Safe and Sound service is also standard. Bold styling Terrain has a balanced, athletic stance and offers a commanding view of the road. Its design is characterized by bold, muscular fender flares, repGMC’s all-new 2010 Terrain is a five-passenger crossover SUV that blends bold styling with fuel efficiency and premium features. “The new Terrain brings GMC’s history of innovation and engineering excellence into a smaller, fuel-efficient package for today’s buyer,” said Susan Docherty, Buick-GMC vice president. “The capability attributes that make a vehicle a GMC are ingrained in Terrain, making it an appealing choice for existing traditional SUV customers who are looking for distinctive styling and increased efficiency.” A new, 2.4L four-cylinder engine that features direct injection is expected to deliver best-in-segment, EPA-estimated highway fuel economy of 32 mpg. Maximum fuel economy is achieved in part with an “eco” mode that is activated via a console-mounted button. When engaged, it lowers the torque converter lockup speed to 1,125 rpm to help save fuel on models equipped with the 2.4L engine. A 3.0L DOHC direct injected V6 engine delivering 264 horsepower (197 kW) will be optional. Both engines are mated to efficiency-enhancing sixspeed automatic transmissions and offer a refined, confident driving experience. Front-wheel-drive and all-wheeldrive models are offered in SLE and SLT trim levels. A comprehensive list of standard and available features includes

22 22

Southern Automotive Journal

purposeful technologies such as: Standard rear-vision camera Programmable power rear liftgate Bluetooth hands-free phone capability MultiFlex sliding rear seat that increases passenger comfort or provides optimal cargo space Remote vehicle start USB audio connectivity; MP3 playback Seven-inch touch screen navigation system and a 40-gigabyte hard drive DVD-based rear-seat entertainment system with two independent January 2010

resenting GMC’s aesthetic. Surfacing is angular yet refined, with a strong and capable front-end appearance that features precise, squared-off edges. “We wanted to carve the GMC Terrain away from the pack and establish its identity as a powerful, fresh crossover SUV with a confident and strong stance,” said John Cafaro Jr., director of exterior design, Global Crossover Vehicles. “Everything about the Terrain communicates a sense of tailored toughness and passionate craftsmanship.” Terrain Please Turn to Page 30


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NCOIL From Page 6 the state legislators who were in attendance at the meeting, and strongly urge to oppose the model act as written. “I am proud of the efforts from those ‘back home’ in our industry,” stated Schulenburg. “I had numerous representatives of the legislature serving on the NCOIL committee comment to me on how many calls and emails they received from SCRS members and collision repair facilities on Friday. It was very obvious that the direct communication from our industry to the legislators from the district level was impactful and effective in their votes on Saturday. Our industry’s voice was heard, and the concerns expressed certainly played a large role in improving the outcome.” After much lobbying and discussion with the representatives, the opposing parties, including SCRS, supported an amendment offered by Kentucky Representative Steve Riggs which added that, “any person who installs a salvaged airbag in a vehicle shall apply a permanent, durable label that clearly states that the vehicle contains a salvaged airbag. Such label must be permanently installed on the dashboard of the vehicle. Any person who removes such a label shall be guilty of a criminal offense.” “We appreciate the support from Representative Riggs and all those who voted in favor of including this amendment in the model,” added SCRS

Chairman Barry Dorn. “This one amendment reduces the negative impact we felt the bill had the potential to unleash, and ensures that any consumer who owns or enters the vehicle, now or in the future, is aware of the presence of salvaged airbags and can make informed decisions due to that very visible information.” Schulenburg concluded, “It is obvious that there are many entities pulling at the state level legislators

January 2010

in attendance at NCOIL, but we are fortunate they are willing to listen to, and act upon, reason. It is important for our industry to have a strong and unwavering voice present as decisions that impact our industry our made; a voice that represents the best interest of those who continue to pick the tools up and fix the car the right way without compromise, and I am glad that SCRS could be involved on behalf of our members in this capacity.”n

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ORIGINAL MINI PARTS: POWER HARNESSED FOR THE GOOD OF MOTORINGKIND. While much about the MINI’s boundless energy remains a mystery, some of its vigor can be traced to Original MINI Parts. Built to strict OE specifications for stellar fitment and performance, MINI Original Parts are the same parts used in MINI production. They’re backed by a potent, 24-month, gajillion-mile limited warranty. And they come with technical support available from your servicing MINI dealer. Now that’s a powerful combination, indeed.

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2010 Cadillac SRX Brings Efficiency And Emotion To Luxury Crossover The completely redesigned 2010 SRX crossover brings a more dynamic alternative to the luxury crossover segment. It features a dramatic design, inside and out, with more efficient engine choices offered on a new luxury crossover architecture. The midsize SRX’s advanced V-6 engines are the smallest-displacement engines Cadillac offers in North America. A new, 3.0L direct injected V-6 engine is standard and a new, 2.8L turbocharged V6 is optional. Both employ advanced technology that helps produce strong performance that is typical of larger-displacement engines, but with greater fuel economy and lower emissions. SRX FWD models with the 3.0L engine are EPA-rated at 25 mpg on the highway. “The all-new SRX injects emotion into a segment previously devoid of it,” said Steve Shannon, executive director of Cadillac marketing. “With new technologies for increased efficiency and safety, the redesigned 2010 SRX crossover aims at the heart of one of the industry’s strongest categories – the luxury crossover segment.” Performance and safety are enhanced by an available all-wheeldrive (AWD) system designed to optimize vehicle handling and stability in all driving conditions. The pre-emptive, active-on-demand system provides an extra measure of capability in wet or icy conditions. The 2010 SRX rides on a wide track designed to deliver a nimble, responsive driving experience. It seats five, with generous occupant and cargo room, and can tow up to 3,500 pounds (1,587

kg) when properly equipped. “Cadillac is known for bold design. The 2010 SRX builds on that reputation,” said Clay Dean, Cadillac global design director. “As with the 2008 CTS, we advanced our Art and Science design to create a crossover for style-conscious customers. The exterior features a dramatic diving gesture on the body side to impart the feeling of movement, even at rest.” A multi-piece shield grille and Cadillac’s iconic vertical headlamps – with light pipe technology and available adaptive forward lighting – are the face of the SRX. They blend into a tightly wrapped, sweeping body that tapers downward at the rear, giving the vehicle a sporty profile, Dean said. The SRX has a wide stance, minimal overhang and wheels pushed to corners. Eighteeninch wheels are standard and 20-inch wheels are offered. A bold accent line dives across the body side and culminates at a chrome front fender vent that incorporates a side marker lamp. An integrated spoiler on the rearward edge of the roof extends the sleek lines and SRX Please Turn to Page 28

January 2010

Southern Automotive Journal


SRX From Page 27

improves aerodynamics. “Inside the new SRX, technical precision blends with old-world craftsmanship,” Dean said. “Hand-cut-and-sewn coverings on the instrument panel and ambient lighting details convey a finely tailored cabin.” An integrated center stack houses controls for climate and audio systems, while the navigation system rises from the center of the instrument panel. A signature example of the SRX’s attention to detail is the Cadillac script logos in the front door sill plates that illuminate when the doors are opened. The 2010 SRX features numerous advanced electronic systems. Highlights include a “pop-up” navigation screen in the dashboard with threedimensional imaging, adaptive forward lighting that swivels the headlamps in synch with vehicle steering, power liftgate with programmable height setting, integrated hard disc drive for audio storage and a dual-screen system for rear entertainment. Bluetooth compatibility is standard, as is OnStar’s Turn-by-Turn Navigation service for buyers who do not select the navigation system option. The interior and exterior design of the new SRX communicates that Cadillac’s new crossover is a more dynamic alternative to its competitors. Likewise, the technology and driving performance of the SRX is completely new, featuring smaller engines and the introduction of a new chassis. SRX’s new engine lineup marks a major change, with the standard 3.0L and optional 2.8L engines replacing the previous generation 28

Southern Automotive Journal

SRX’s 3.6L and 4.6L engines. The SRX is powered by a new, fuelefficient direct injected 3.0L V-6 that delivers 265 horsepower (198 kW) and has a six-speed automatic transmission. Direct injection results in more power, better fuel economy and lower emissions, all with a smaller-displacement package. As a result, the new V-6 engine may achieve a 1 0- to 15-percent fuel economy improvement over the previous standard engine. The 3.0L direct injection V-6 is a smallerd i s placem e n t version of the 3 . 6 L , direct inject i o n engine featured in the

CTS sport sedan and named one of the world’s 10 Best Engines for 2009 by Ward’s Automotive. Along with direct injection technology, the 3.0L engine uses variable valve timing to optimize power and fuel efficiency and reduce emissions. It is paired with a Hydra-Matic 6T70 six-speed automatic transmission with manual shift control.

January 2010

A 2.8L turbocharged V-6, derived from a family of refined engines GM uses in luxury European models, is optional in the SRX and will be introduced at the middle of the 2010 model year. It delivers an estimated 300 horsepower (224 kW) under full boost, but the fuel economy of a smaller engine during lower-load driving conditions, such as highway cruising. An Aisin AF40 six-speed automatic transmission is matched with the 2.8L turbo and includes a driver-selectable “eco mode” that alters transmission shift points to maximize fuel economy. The driving experience of the SRX blends the best elements of a sports sedan with the safety and excellent traction capability that crossover and SUV buyers value. One of its core elements is a new, advanced AWD system, featuring an electronic limited-slip differential (eLSD.) The eLSD enables the system to distribute torque from the front to rear axle, and also side-to-side, across the rear axle. Developed in partnership with Haldex, a leader in AWD technology, the system provides torque to the wheel with the most traction. The advanced AWD system provides excellent traction in slippery conditions like rain, snow or ice. In all conditions, the system bolsters other driving dynamics, such as cornering. The suspension includes an available, continuously variable real-time damping system in conjunction with AWD that delivers smooth ride quality by adjusting shock damping rates in response to road conditions. Crossovers and SUVs are sometimes best appreciated from the inside out, as their owners highly value the people- and cargo-hauling practicality they offer. The new SRX was developed with that in mind. Despite having more compact exterior dimensions than its predecessor, the cabin space is optimized for five-passenger luxury and good cargo-carrying ability. The rear compartment includes a Cargo Management System that features a U-Rail track system. It includes an adjustable cargo fence that segments the cargo area to contain smaller items, and also retracts beneath the load floor when not in use.n

U.S. House Passes Estate Tax Bill Senate Passage by Year’s End Questionable The U.S. House of Representatives has passed H.R. 4154, “The Permanent Estate Tax Relief for Families, Farmers and Small Businesses Act,” in a vote of 225200. The sponsor of this bill is Rep. Earl Pomeroy, D-N.D., a senior member of the House Ways and Means Committee. According to the committee, H.R. 4154 permanently extends current law, which would exempt estates up to $3.5 million per individual or $7 million for married couples with a maximum rate of 45 percent on estates above this threshold. Additionally, the bill would repeal

the enactment of carryover basis rules that would require many heirs, even those exempt from paying estate tax, to pay additional taxes on the built-in gains of property inherited starting in 2010. Sen. Jon Kyl, R-Ariz., U.S. Senate minority whip, said, “When something is that partisan, it becomes more difficult to accomplish over in the Senate … Given the fact that Sen. Blanche Lincoln, RAriz., [chairman of the Senate Agriculture, Nutrition and Forestry Committee] and I got 51 votes in the budget debate to move forward with a fairer estate tax reform, my

January 2010

hope would be we could pass that over here and that would be what ultimately became law. I think unfortunately, and this is really unfortunate, nothing is going to pass and be signed into law before the end of the year, so you end up with a retroactive change in estate tax law.” Further, the Senate’s preoccupation with the healthcare bill might prevent them from bringing up the estate tax. One option under consideration is to include the estate tax legislation on a fiscal year 2010 appropriations conference report.n

Southern Automotive Journal


Terrain From Page 22

Additional design features include a unique, three-element grille that is accented by a prominent chrome surround and projector-beam headlamps mounted in large, rectangular housings with chrome accents. Interior details and flexibility The Terrain’s rich, premium interior is influenced by industrial sculpture and exudes refinement exemplified by contrasting stitching and fine materials that create a structured look throughout the cabin. A “floating” center stack, highlighted by warm ambient lighting, houses ergonomic comfort and convenience controls. The Terrain also features great attention to detail, with smart use of storage space and compartments that are suitable for a variety of items. They include an oversized glove box, a closed storage area in

the instrument panel above the center stack, a closed storage compartment under the center armrest large enough for a laptop computer, and two-tier storage in the doors. Terrain’s seats were developed to provide outstanding comfort. The standard MultiFlex sliding rear seat can be moved fore or aft nearly eight inches (200 mm), providing increased passenger comfort or greater rear cargo capacity. The 60/40-split rear seatback offers additional configurations for passengers and cargo. The rear cargo area offers 31.6 cubic feet (894 liters) of storage, as well as one of the Terrain’s four auxiliary power outlets.n

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Southern Automotive Journal provides news trends and perspectives to professionals in the automotive collision industry including, independe...