Southern Automotive Journal

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BMW 3 Series


Sports & Imports Collision Converted Basecoat Paints From Solvent to Waterborne

May 2010

Right to Repair Bill Introduced into Senate with Bipartisan Support ASA Collision, Mechanical Members to Discuss Hot Issues on Capitol Hill

MECHANICAL NEWS House Holds Hearing to Modernize OSHA Penalties AAIA Forecasts 3.8 Percent Increase in Aftermarket Sales for 2010

DEALER NEWS NADA: Outlook for New and Used Vehicle Sales Upbeat

The All-New Volvo S60 - Stepping Up To The Next Level The all-new S60 reveals that the Volvo Cars design team is stepping up to the next level in the development of the products’ DNA. “The all-new S60 will be one of the strongest players in a segment where the competition is razor-sharp,” says Volvo Cars President and CEO Stephen Odell. The coupe-inspired lines that gave the original S60 its characteristic stance are even more pronounced in the next generation. “The sporty design gives visual promise

of an enthusiastic drive and I can assure you here and now that the all-new S60 will live up to that promise. The driving properties are better than in any previous Volvo. The car’s technology will also help you to be a better and safer driver,” says Stephen Odell. “The concept car’s exterior gives a clear indication of what customers can S60 Please Turn to Page 4

Hyundai Elantra

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S60 From Front Cover

In each of the headlamps, the lights create a sculpture creating the image of two miniature Viking longboats sailing side by side, one for main beam and one for dipped beam. When driving

expect of the all-new S60. On the inside we’ve been even more daring - there the focus has been on creating a vision of the future in the s l i g ht l y longer p e r s p e ctive,” says Volvo Cars D e s i g n The grille has a new appearance Director adding refinement to its form. in the Steve dark, the light is Mattin. reflected from the concealed, Scandinavian inspiration and drama u pw ard - f a ci n g The front of the S60 Concept natuHigh Performance rally sports the enlarged iron mark in the LED bulbs, protrapezoidal grille. The grille itself has a somewhat new appearance with structured horizontal vanes adding refinement to its form. Two DNA lamps that flank the grill emphasise the vertical stance of the front and promote the hood’s Vshape. The angled headlamps flow up into the strongA new lateral shoulder line ly sculptural hood. Combined with a gentle double wave. the lower air intake’s reverse trapezoidal jected ahead shape, this gives the concept car a very by the ships’ expressive “face”. filled sails. “Dynamic and with considerable character, but without appearing aggresDouble wave and sensational doors sive. It is packed with inspiration from Viewed from the side, the concept Scandinavian design and from the car’s slim coupe roofline Swedish coastline’s cliffs and and window graphics seas. A thrilling blend of are accompanied drama and sensuality,” by an entirely says Steve Mattin. new lateral shoulViking longboats in der line, the headlamps forming a The concept gentle doucar’s headlamps unite ble wave. classic Scandinavian Stretching influences with modern from the headhigh-tech. lamps all the way

Southern Automotive Journal

May 2010

to the tail, it adds emotional excitement and plays with the surface and its highlights. The unique rear parallelogram doors offer a spectacular show when they are opened and shut. Door opening is initiated by pressing on a button and

the movement starts off in the traditional way. In the next phase, the forward section also swings out away from the car’s body and the door glides parallel with the side of the car until it reaches its end position by the rear wheel. forms Interior indicates future design direction With the interior of the Volvo S60 Concept, Volvo Cars’ design director Steve Mattin and his team are displaying a variety of spectacular nextgeneration ideas. “You could say that we are showing the road we would like to take in the future. This interior is without doubt the most exclusive we have ever created,” says Steve Mattin. The interior is packed with exciting details, all of which together create a Scandinavian fresh light feeling, full of visual harmony. In the middle of the four-seater car glitters the jewel in the crown: a floating center stack made out of handmade, solid Orrefors crystal. It floats like a gentle, calm wave from the instrument panel

all the way to the rear seat backrest.

The technology, Collision Warning with Full Auto Brake and pedestrian detection, will be introduced in the allnew Volvo S60. “Up until now, we have focused on helping the driver avoid col-

ogy should help the driver avoid collisions with pedestrians at speeds below 20 mph. If the car is being driven faster, the aim is to reduce the impact speed as much as possible. In most cases, we can reduce the collision force by about 75 percent,” says The interior of the Volvo S60 Concept, displays a Thomas Broberg. variety of spectacular next-generation ideas. This technology is also highly beneficial in the event of rearend impacts with other vehicles. Studies indicate that half of all drivers who drive into another vehicle from behind do not brake prior to the collision. In such cases, Collision Warning with Full Auto Brake can help entirely avoid a collision if the relative speed difference

Driver-oriented environment The entire driver’s environment has been designed to provide total overview and convenient control. The combined instrument too has the centre stack’s floating, almost weightless feel about it. The instrument is built up in several layers. “The speedometer is designed as a three-dimensional glass spiral. The low numbers appear closest to the eye and the figures appear to be increasingly distant as you accelerate. The idea is that the speedometer should provide a visual reminder of the forward motion,” The floating center stack is made out of handmade, explains Steve Mattin. solid Orrefors crystal. Slim, floating leather seats The floating theme continues in the concept car’s slim, lightweight c o n toured seats, made of soft Light B l o n d leather with contrasting stitching. The seats are attached to the centre console’s lower section and inner sill, which means that they don’t actually touch the floor. New technology detects pedestrians in the danger zone The S60 Concept also presents a ground-breaking safety innovation that, among other things, can detect a pedestrian who steps out into the path of the car - and the car’s full braking power is automatically activated if the driver does not respond to the danger.

lisions with other vehicles. Now we are taking a giant step forward with a system that also boosts safety for unprotected roadusers. New sensor technology also makes it possible to advance from fifty percent to full automatic braking power. To our knowledge, none of our competitors have made such progress in this area,” explains Thomas Broberg, safety expert at Volvo Cars. Avoids collisions at speeds below 20 mph The car’s speed is of considerable significance to the outcome of a collision with a pedestrian. If speed drops from 50 mph to 30 mph, the chance of a pedestrian’s survival dramatically increases. “Our aim is that this new technol-

May 2010

cles is less

between the two vehithan 25 mph.

Visual warning on head-up display In an emergency situation, the driver first gets an audible warning together with a flashing lightin the windscreen’s head-up display. In order to prompt an immediate, intuitive reaction, the visual warning is designed to look like a brake light coming on in front. If the driver does not respond to the warning and the system assesses that a collision is imminent, the car’s full braking power is activated automatically. CO2-emissions at 119g/km The engine that Volvo Cars has chosen for the Volvo S60 Concept is a fourcylinder 1.6-litre petrol unit using highefficiency GTDi (Gasoline Turbocharged Direct Injection) technology and producing 180 horsepower. The engine in combination with a range of other technical measures makes it possible to cut carbon dioxide emissions to 119 g/km (5.0 l/100 km).n

Southern Automotive Journal

House Holds Hearing to Modernize OSHA Penalties The U.S. House of Representatives Committee on Education and Labor’s Subcommittee on Workforce Protections held a hearing March 16 on “Protecting America’s Workers Act: Modernizing OSHA Penalties” to discuss modernizing workplace health and safety penalties. The subcommittee discussed U.S. Rep. Lynn Woolsey’s, D-Calif., legislation, H.R. 2067, Protecting America’s Workers Act. The purpose of H.R. 2067 is to amend the Occupational Safety and Health Act of 1970 (OSH Act) to expand coverage under the act, increase whistleblowers and increase penalties for violators. Witnesses at the hearing included:

John Cruden, acting assistant attorney general, Environment and Natural Resources Division, U.S. Dept. of Justice, Washington, D.C. David Michaels, assistant secretary of labor, Occupational Safety and Health Administration (OSHA), Washington, D.C. Eric Frumin, health and safety coordinator, Change to Win, New York, N.Y. Jonathan Snare, partner, Morgan, Lewis & Bockius LLP, on behalf of the Chamber of Commerce, Washington, D.C. Rep. Woolsey shared her reasons for re-introducing H.R. 2067 in her open-

ing statement: “H.R. 2067 addresses three major weaknesses in the OSH Act. First, the legislation provides OSHA coverage to the 8.5 million state, county and municipal workers who currently have limited or no protection from safety and health hazards at work. Second, the bill makes changes to OSHA’s whistleblower provisions because today’s process is inadequate; putting off decisions and depriving workers of due process. Finally, the bill brings OSHA enforcement into the 21st Century, by updating civil and criminal penalties.” OSHA Please Turn to Page 19

Right to Repair Bill Introduced into Senate with Bipartisan Support Protecting consumers’ rights to choose where they get their vehicles repaired gained bipartisan support as Sen. Barbara Boxer (D-CA) and Sen. Sam Brownback (R-KS) introduced the Motor Vehicle Owners’ Right to Repair Act (S 3181) into the Senate. The House version of the bill (HR 2057) was introduced by Reps. Edolphus Towns (D-NY),

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Anna Eshoo (D-CA) and George Miller (D-CA) and currently has 57 cosponsors. The Right to Repair Act protects motoring consumers from a growing and potentially hazardous vehicle repair monopoly by requiring that car companies provide full access at a reasonable cost to all service information, tools, computer codes and safety-related bul-

May 2010

letins needed to repair motor vehicles, thus leveling the competitive playing field between dealerships and independent repair shops. The legislation further provides car companies with strong protections for their trade secrets, only requiring them to make available the same diagnostic and repair information they provide their franchised dealers.




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Congress Questions NHTSA’s Effectiveness The U.S. House of Representatives Committee on Energy and Commerce’s Subcommittee on Commerce, Trade and Consumer Protection recently held a hearing titled, “National Highway Traffic Safety Administration (NHTSA) Oversight: The Road Ahead.” Members of the committee questioned David L. Strickland, NHTSA administrator, on NHTSA’s functionality and effectiveness. Rep. Bobby Rush, D-Ill., chairman of the subcommittee, said the purpose of the hearing was to “examine NHTSA’s configuration, its organization, and its performance in the areas of defects investigation, safety standards and enforcement.” Recently, the Automotive Service Association (ASA) wrote a letter to Strickland requesting that NHTSA use its authority to regulate aftermarket crash parts. In light of the hearing, ASA also sent the letter to members of the Energy and Commerce Committee. The letter outlined concerns with


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NHTSA’s inaction, stating: “The lack of federal regulation of the aftermarket crash parts industry opens the vehicle owner to a host of quality and safety concerns. How can NHTSA’s mission statement, ‘Save lives, prevent injuries and reduce economic costs due to road traffic crashes, through education, research, safety standards and enforcement activity,’ ignore the types of parts used to repair a vehicle after a collision?” In the hearing, Strickland expressed a desire to improve NHTSA’s effectiveness and increase legislative authority. He said, “One of the first questions I asked when I became the administrator of NHTSA is whether our current statutory authority - drafted largely in the 1960s and 1970s - is sufficient to address the modern automobile and the global automotive marketplace. I have asked our legal and program staffs to take a very close look at the scope and effectiveness of those authorities and make

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Southern Automotive Journal

May 2010

recommendations about how they may be improved. I look forward to working with this committee on how NHTSA’s ability to perform its mission might be strengthened through legislation.” Strickland discussed at length, in his testimony, the function of the Office of Defects Investigation. Joan Claybrook, former NHTSA administrator and president of Public Citizen, highlighted seven remedies for the agency to be more effective: Low Priority for Enforcement. Agency Secrecy Makes Public Oversight Difficult. Penalties Are Insufficient to Deter Violations. Agency Resources Need to be Drastically Increased. Information Gathering and Data Systems Are Insufficient. New Safety Standards Should Result from Investigations and Testing. Conflict of Interest Rules Need to be Strengthened.n



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AAIA Forecasts 3.8 Percent Increase in Aftermarket Sales for 2010 U.S. motor vehicle aftermarket sales are expected to increase 3.8 percent in 2010, according to preliminary analysis being compiled for the Aftermarket Factbook to be released in May by the Automotive Aftermarket Industry Association (AAIA). The Channel Forecast Model featured in the Factbook attributes the increase partly to anticipated pent-up demand for vehicle maintenance and repair by consumers during 2009, when the aftermarket industry sales dropped for the first time in more than a decade to negative 2.4 percent. “According to the Channel Forecast Model, the rebound in macroeconomic conditions in the U.S. that began in 2009 is expected to continue and accelerate in 2010 and 2011,” said Kathleen Schmatz, AAIA president and CEO. “Most major economic indicators have already begun to move in a positive direction or will begin to trend that way during the year.” Among the positive and negative impacts described in the model are:

in 2009. A rebound in the housing market and consumer wealth will further encourage consumer spending. Miles driven are expected to increase as the unemployment rate declines. Negative Impacts: Increasing energy costs are helping

to constrain disposable income growth. Light vehicle sales should approach pre-recession levels of near 16 million units by 2012. 2008 through 2010 total vehicle sales of 35 million is 30 percent less than recent pre-recession historical threeyear averages, reducing the number of vehicles entering traditional prime repair ages.n

Positive Impacts: Nominal GDP growth should average over 4.5 percent annually from 2010 through 2012. Unemployment will peak in Q3 2010 at 10.0 percent, but decline steadily to 7.9 percent by Q4 2012. Dramatic increases in savings rate seen in 2009 and 2010 will ease as consumers show growth in consumer spending after a decline May 2010

Southern Automotive Journal

SCRS Announces More Details on REPAIRER DRIVEN EDUCATION at the SEMA Show The Society of Collision Repair Specialists (SCRS) has announced additional details regarding their upcoming educational opportunities being featured at the 2010 SEMA Show. The educational track, entitled REPAIRER DRIVEN EDUCATION (RDE), will feature over 21 seminar offerings, many of which are being offered for the first time during RDE, and all of which specifically focus on issues and information that are relevant to collision repair professionals operating in today’s marketplace. The RDE track, being conducted between 8:00 a.m. and 3:00 p.m. on Thursday, November 4th and Friday, November 5th, will be launched with an inspiring opening seminar conducted by Charles Coonradt, Author of The Game of Work, Managing the Obvious and The Better People Leader. For the past 25 years, Coonradt’s concepts in the book The Game of Work have enriched the lives and businesses of thousands of collision repairers across the country, and in this rare opportunity RDE attendees will have the chance to hear from the author himself, how they can implement his concepts so that they, and their employees, will learn to enjoy

work as much as play. Attendees will return to the workplace charged with excitement at the opportunity to apply these principles, and be able to partake in the final speaking engagement of Mr. Coonradt’s illustrious career. The two day RDE program will also be packed full of information from speakers such as Mike Anderson, Toby Chess, Erica Eversman J.D., John Sweigart, Patrick McGuire Esq., Steven Feltovich, Tim Ronak, Greg Horn and many more. The seminar topics will range from how to legally and practically address steering, to getting ready for transitioning your business to a lean model; understanding and performing OEM recommended repairs to finding out how ‘quirky’ customers can be your most valuable resources; how a lack of understanding of wage & hour compliance could devastate your business, to a look at how to drive business to your door through social networking media. A complete list of seminars included can be found on the SCRS website which includes more specific details necessary to plan your time in Las Vegas. “Any time the industry finds addi-

tional venues and opportunities where repairers can learn about ways to improve their businesses and capitalize on the energy derived from stepping out of your box to focus on the business, we win as an industry,” shared SCRS Executive Director Aaron Schulenburg. “Not only are the attendees going to have access to some of the best educational opportunities, speakers and specialists available to our industry, but additionally the participants are going to be able to harness all the excitement that the SEMA Show has to offer.” “One of the most attractive benefits we see for SCRS’ affiliation with the SEMA Show is the opportunity for growth and enhancement that it presents to the average repair facility,” added Barry Dorn, SCRS Chairman and repair facility owner. “In today’s market, it is increasingly more difficult for repairers to operate with diminishing margins and increased pressure. As a business owner, I am really excited about exploring what other revenue sources may exist that I can plug in to my existing business. I have the build-


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May 2010

RDE Please Turn to Page 27

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I-CAR Announces Online Training Initiative With KMC On Demand I-CAR, the Inter-industry Conference on Auto Collision Repair, is announcing that it has signed a Memorandum of Understanding to launch a strategic initiative with KMC On Demand, a provider of web-based learning management technology and web-based learning for the insurance and claim services industries. The initiative will provide greater access and improved functionality for I-CAR online training offerings. “We are very pleased to be able to take this step with an innovative organization like KMC On Demand. It will greatly improve I-CAR’s ability to provide more training in an online training man-


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agement environment built to training industry standards,” said I-CAR President and CEO John Edelen. “In our work with the industry on a role-based curriculum, known as the Professional Development Matrix, we have heard clearly from all industry segments that they are looking for more online training deliverables from I-CAR. This initiative with KMC will support I-CAR’s ability to respond to this industry need and greatly expand the access to I-CAR training for all industry segments,” said Edelen. Currently, I-CAR offers learners the opportunity to attend instructor-led classes that provide detailed learning

May 2010

about vehicle-specific collision repairs and general collision concepts. This is complemented by a limited offering of online training courses. The KMC On Demand platform will enable I-CAR to offer a significantly broader curriculum of online learning modules with improved access and functionality. Under this initiative, KMC On Demand will be able to offer I-CAR online auto collision training content to KMC’s current and future customers from the insurance and claims services industries. Individuals in the insurance industry, as I-CAR Please Turn to Page 27

NADA Statement in Response to Chrysler’s Announcement to Reinstate Dealerships The following is a statement by Ed Tonkin, chairman of the National Automobile Dealers Association (NADA): “The announcement by Chrysler today of its intent to reinstate 50 dealers

is a move in the right direction. This, coupled with previous contracts or Letters of Intent awarded to 36 other closed dealerships, brings the total to 86 dealerships that could be reinstated. NADA views

this as a good faith effort, and hopes that this carries forward in Chrysler’s continuing settlement and arbitration discussions with the other terminated dealers.”n

Senate Banking Committee Passes Restoring American Financial Stability Act The U.S. Senate Committee on Banking, Housing and Urban Affairs quickly passed on March 22 Chairman Christopher Dodd’s, D-Conn., “Restoring American Financial Stability Act of 2010” along party lines. The bill now goes to the Senate floor where the bill is expected to be challenged with amendments by Senate Republicans.

by the committee include: Consumer Protections with Authority and Independence: A Consumer Financial Protection bureau will be housed at the Federal Reserve, where it will have the power to write and enforce the rules. Ends too Big to Fail: Ends the possibility that taxpayers will be asked to write a check to bail out financial firms that threaten the economy.

Highlights of the new bill reported



Advanced Warning System: Creates a council to identify and address systemic risks posed by large, complex companies, products and activities before they threaten the stability of the economy. Transparency and Accountability for Exotic Instruments: Eliminates loopholes that allow risky and abusive pracFinancial Stability Act Turn to Page 23

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Volume 14 Issue No. 5 Jim Tucker Publisher Michele Tucker Editor

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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.

May 2010

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The BMW 3 Series Sedan - The Worldwide Sports Sedan Benchmark The BMW 3 Series is the internationally-recognized symbol of the intelligently sporty motor vehicle. It is also the best-selling premium vehicle in the world. Updates for the 2010 Sedan include: subtle e x terior- design freshening; refinement of interior design and functions; new and/or revised options; a new generation of the iDrive control and display system; expansion of BMW Assist functions; and an all-new BMW Advanced Diesel engine. Fundamentally unchanged – and still not successfully challenged in other quarters – are the 3 Series’ essential attributes of rear-(or all-)wheel drive, harmonious front/rear weight balance, outstandingly precise steering and skillfully engineered suspension…all of which conspire to produce the uniquely satisfying driving experience that is quintessentially BMW. Thanks to the various facets of BMW EfficientDynamics – especially via the new diesel-powered 335d Sedan – the 3 Series experience is more satisfying than ever before. As an important element of BMW EfficientDynamics, the 335d Sedan represents a significant step forward in combining high performance with high fuel efficiency. The 3.0-liter, twin-turbocharged inline-6 diesel engine powering the 335d – its predecessor has been widely acclaimed in Europe – is completely new to the U.S. Also new is its BMW BluePerformance emission-control technology. Among the turbodiesel engine’s advanced attributes are aluminum construction, high-pressure direct fuel injection with piezo injectors (also a feature of BMW’s twin-turbo gasoline 14

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engines), and a turbocharging system that employs both a small and larger turbocharger for optimum response at low and higher speeds. As a worldwide advance also being newly introduced in Europe, BMW BluePerformance controls emissions to a strict level that enables the 335d to be sold in all 50 U.S. states. Specific features of this system include an exhaust particulates filter and a Selective Catalytic Reduction exhaust after-treatment system. Given the stringent emission control and fuel economy that will truly raise eyebrows, one might expect performance to suffer. On the contrary: this new power concept achieves not only abundant power (265 hp, 0-60 mph in 6.0 seconds with the standard 6-speed automatic transmission), but immense torque (425 lb-ft.) that gives the 335d allspeed acceleration response that simply has to be experienced to be believed. And – a quality of smoothness and sound that fully lives up to the BMW reputation for sonorous power. All other 3 Series models continue with their (also) acclaimed 3.0-liter inline 6-cylinder gasoline engines. The 328i models are powered by a naturally aspirated (i.e., non-turbo) engine featuring advanced, weight-savMay 2010

ing magnesium/ aluminum construction – still unique among the world’s automobiles. Its Valvetronic system enhances efficiency by employing variable valve lift, rather than a throttle, to regulate engine power. This engine produces 230 hp and 200 lb-ft. of torque. It is a sterling example of BMW’s longstanding tradition of the smooth, sonically delightful “inline six” that delivers excellent performance. For those who desire more than merely excellent performance, the 335i models are powered by a completely distinct 3.0-liter six, boosted by twin turbochargers and fed with fuel by High Precision direct fuel injection. This unique and highly advanced unit delivers 300 hp and 300 lb-ft. of torque, 060-mph times as quick as 5.4 sec., and EPA highway mileage ratings up to 26 mpg. If the 328i engine has been enthusiastically acclaimed, the 335i unit has garnered downright delirious praise, particularly by the automotive enthusiast media. Continuing for 2010 is BMW’s truly intelligent AWD system, now taking the system’s name into their model designations: 328i xDrive Sedan and Sports Wagon, and 335i xDrive Sedan. The Coupe models also have xDrive available. At the core of this permanent AWD system is an electronically controlled multi-disc clutch that steplessly varies torque distribution between the front and rear wheels, and does so with nearinstantaneous speed. xDrive doesn’t just BMW 3 Series Please Turn to Page 24

ASA Collision, Mechanical Members to Discuss Hot Issues on Capitol Hill The Automotive Service Association to the "business of insurance" only to the vehicle safety inspection, and through(ASA) is hosting a "Taking the Hill" Flyextent that such business is not regulated out those states the programs are inconIn and AMI Leadership Conference in by state law. The anti-competitive consesistent. Washington, D.C., May 11-12, 2010. The quences of McCarran-Ferguson impact The Automotive Management fly-in will address key issues facing colboth consumers and small businesses in Institute (AMI) Leadership Conference lision and mechanical repair professiontheir relationships with insurers. sessions scheduled for May 11 will allow als, and allow members to meet faceMechanical repairers will hone in attendees to participate in two threeto-face with policymakers on The Hill on federal incentives for safety inspechour workshops focusing on ethical Wednesday, May 12. ASA collision repair tion programs. ASA supports federal leadership. The workshops are designed members will meet with their House and incentives for state safety inspection to enhance attendees' business and perSenate representatives to discuss afterprograms, as less than 20 states require sonal success.n market crash parts policy and insurance reform. ASA mechanical repair members will meet with their representatives to discuss federal incentives for safety inspection programs, vehicle emisww sions testing as part of clean w. Ja air policy efforts, and federal ck automotive vocational eduso na cation and training support. cu Call Kenny McMillan, ra Rep. Zoe Lofgren's, .co Your Trusted Name in Acura D-Calif., Access to Repair m kmcmillam @jacksonacura. Parts Act (H.R. 3059), which exempts copies of certain component parts from infringing U.S. design patents, has recently been Your order is urgent to your business reviewed by the House Your order needs to be accurate Judiciary Committee. Senate Bill 1368 is companion legisYour order is essential to your customer lation in the U.S. Senate. ASA opposes this aftermarket Acura Vehicles and Acura Parts crash parts legislation, which makes no assurances for the quality and safety of nonDirect FAX Toll Free original equipment manufacturer (OEM) parts. Fly-in participants will continue the dialogue from ASA's 2009 fly-in on insurance reform and a full repeal of the McCarran-Ferguson Act, with collision repairers once again discussing this issue with their congressional leaders. Since 1945, insurance companies have had a "limOrder From us to Increase Your Chances to Win ited" exemption from federal antitrust laws that apply to most other industries assured to them through an act of 2nd Prize- $500.00 cash Congress. The McCarran3rd Prize-$200.00 cash Ferguson Act provides that PLUS Weekly giveaway is 100 "OPA BUCKS" which can be used as a discount or payment toward a purchase from any OPA member. federal antitrust law applies


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New Vehicle Fuel Economy Rules to Cost Consumers In response to the new model year 2012-16 automobile and light-truck fuel economy mandates, Ed Tonkin, chairman of the National Automobile Dealers Association (NADA) released the following statement: “These new rules are the most expensive fuel economy mandates in history. In part, this is a result of three different fuel economy standards set by three different agencies (U.S. Department of Transportation, U.S. Environmental Protection Agency and the California Air

Resources Board) under three different sets of rules. This is in direct contradiction to the one national fuel economy standard established by Congress in 2007. “America’s new car and truck dealers support higher fuel economy standards, but recognize that for most Americans a car or truck is a necessity, not a luxury. Under these new mandates, the price of new cars and light trucks will rise significantly, meaning fewer Americans will be able to buy the new vehicles of their choice.

“With tight family budgets and a shaky job outlook, consumers want to maximize their transportation dollars, not pay more for redundant rules and an unnecessary bureaucracy. “Also troubling, EPA’s rule allows for lower standards for some automakers, creating an uneven playing field for some dealers selling makes that are fully regulated. These loopholes will reduce fuel savings, and needlessly distort the fragile auto market, further hurting consumers.”n

The U.S. Environmental Protection Agency (EPA) and the Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) have finalized their “National Program to Reduce Greenhouse Gases and Improve Fuel Economy for Cars and Trucks.” California, followed by 13 other states, has already set vehicle greenhouse gas (GHG) limits. The administration advocates that this initiative aims to clean the air we breathe, strengthen the automotive industry, create new jobs and decrease the amount that consumers pay at the pump. The new standards apply to new passenger cars, light-duty trucks and

medium-duty passenger vehicles, covering model years 2012 through 2016. The EPA GHG standards require these vehicles to meet an estimated combined average emissions level of 250 grams of carbon dioxide (CO2) per mile in model year 2016, equivalent to 35.5 miles per gallon (mpg) if the automotive industry were to meet this CO2 level all through fuel economy improvements. California had included a super warranty initiative in its original clean car program. Several of the 13 states that followed California’s GHG initiative also included the super warranty language. The Automotive Service Association (ASA) opposes super warranties as estab-

lished by the state of California. Clean car programs that are practical and cost effective should be considered by regulators, not programs that harm small businesses and have a long-term negative impact on consumers. It is important to note that the new refrigerant regulation for the substitute HFO-1234f should also become final this year. ASA and several hundred of its members filed formal comments with the EPA for the HFO-1234f proposal asking that the final regulation include restrictions on the use of this substitute, specifically requesting that only trained, appropriately equipped professionals be allowed to use HFO-1234f.n

EPA, NHTSA Announce Vehicle Greenhouse Gas Regulation

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Hyundai Elantra Cruises Into 2010 With 35 Miles Per Gallon Blue Model The awardwinning Elantra enters 2010 an improved weapon against gas prices, with the all-new Blue model achieving an estimated highway fuel economy rating of 35 miles per gallon. Smart engineering enhancements to the rest of the 2010 Elantra lineup improve fuel efficiency by up to four percent. These new fuel economy numbers give Elantra an advantage in price-per-MPG ratio, making it an even stronger value for 2010. To make the Elantra “Blue,” engineers added a “smart” alternator management system, lower friction engine components, revised transmission gear ratios, engine calibration changes and a shift indicator to last year’s Elantra GLS manual. This new high mileage Elantra will be indentified with unique “Blue” badging. From the Blue edition, the rest of the Elantra line receives its lower friction engine components, “smart” alternator management system and an improved lock-up torque converter to maximize fuel economy at highway speeds. In addition, the Elantra has also received a five-star frontal and fourstar side crash rating in the compact

with other Hyundai models and neatly integrated bodycolor door handles and mirrors. The rear styling complements the front design with tail lights that echo the theme of the headlights and nicely complete the bodyside character line. T h o u g ht f u l design touches bring harmony

passenger car segment from the National Highway Traffic Safety Administration (NHTSA), and earned a “Good” rating in the IIHS’s frontal offset test, the Institute’s highest rating. Finally, the addition of a standard Tire Pressure Monitoring System, which alerts drivers if tires are under inflated through an illuminated readout on the dash, rounds out Elantra’s safety features to make it one of the smartest purchases in the compact class. Elantra’s front appearance and rising beltline create a premium statement. For added distinction and assertiveness, chrome headlight bezels, a new waterfall chrome grille and chrome rear trim are standard. The Elantra profile features sculpted surfaces, an expressive bodyside character line that is shared

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NADA: Outlook for New and Used Vehicle Sales Upbeat The following is a statement from Paul Taylor, chief economist with the National Automobile Dealers Association (NADA) on new and used vehicle sales: “The March data shows a welcome increase in new-car sales, reflecting in part some ‘catch-up’ sales from snowstorms that froze out activity from Washington, D.C., to Bangor, Maine, in February. Strong sales from major automakers in March led to overall gains of more than 20 percent. OSHA From Page 6 Cruden urged the committee to crack down on employers who do not meet OSHA standards. He said: “The misdemeanor violations in the OSH Act provide little incentive for prosecutors and other law enforcement personnel who must reserve their limited resources for those crimes that Congress has deemed most egregious by designating them as felonies. The relatively low monetary penalties currently available to OSHA mean that unscrupulous companies may view these violations as an acceptable cost of doing business. Accordingly, the Dept. of Justice supports the strengthening of the OSH Act’s criminal penalties so that they are more consistent with other criminal statutes.” Michaels also supports H.R. 2067

“March sales will also reflect consumers with ‘cabin fever’ getting out to new-car dealerships. And April newcar sales will provide an indication of what the economy will support without intervening factors, such as ‘catch-up’ sales. March, and to a lesser extent sales in April, will reflect the current incentive surge launched by Toyota and Honda.” “Used-vehicle prices continued to follow an upward trend during March. Most indicators suggest the used market will continue to support high used

prices. However, new-vehicle incentives at the current levels will cause the resale values of used vehicles to decline because car shoppers will shift from the used to the new market, while at the same time the used-vehicle supply will increase from trade-ins. “An indicator to watch will be the new vehicle Consumer Price Index and new-car incentives. If manufacturer incentives drive stronger new-vehicle sales, used-vehicle prices will moderate in the wholesale lanes at auctions.”n

because it modernizes OSHA to be effective in the modern workplace. He said: “If we are to fulfill the department’s goal of providing good jobs for everyone, we must make even more progress. Good jobs are safe jobs, and American workers still face unacceptable hazards. More than 5,000 workers are killed on the job in America each year, more than 4 million are injured, and thousands more will become ill in later years from present occupational exposures. “Moreover, the workplaces of 2010 are not those of 1970; the law must change as our workplaces have changed. The vast majority of America’s environmental and public health laws have undergone significant transformations since they were enacted in the 1960s and 1970s, while the OSH Act has seen only minor amendments ... I

therefore appreciate the work of this subcommittee in proposing legislation that would strengthen the law and significantly increase OSHA’s ability to protect American workers.” Michaels also said: “Because OSHA can visit only a limited number of workplaces each year, we need a stronger OSH Act to leverage our resources to encourage compliance by employers. We need to make employers who ignore real hazards to their workers’ safety and health think again. We need to bring OSHA into the 21st Century ... Safe jobs exist only when employers have adequate incentives to comply with OSHA’s requirements. Those incentives are affected, in turn, by both the magnitude and the likelihood of penalties. ... However, OSHA’s penalties are not large enough to provide adequate incentives.”n

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The National Safety Council Releases White Paper on Brain Distraction During Cell Phone Use While Driving

The National Safety Council today released a white paper describing the risks of using a cell phone while driving. The white paper, “Understanding the distracted brain: Why driving while using hands-free cell phones is risky behavior,” addresses the lack of understanding about the dangers of cell phones and hands-free devices. The white paper includes references to more than 30 scientific studies and reports, describing how using a cell phone, hands-free or handheld, requires the brain to multitask – a process it cannot do safely while driving. Cell phone use while driving not only impairs driving performance, but it also weakens the brain’s ability to capture driving cues. The white paper is available for

free download on the NSC Website. The paper describes how drivers who use cell phones have a tendency to “look at” but not “see” up to 50 percent of the information in their driving environment. A form of inattention blindness occurs, which results in drivers having difficulty monitoring their surroundings, seeking and identifying potential hazards, and responding to unexpected situations. Numerous public opinion surveys show most drivers believe using a cell phone while driving is dangerous. However, many admit they regularly talk or text while driving. At any time, 11 percent of all drivers are using cell phones, according to the National Highway Traffic Safety Administration.

NSC estimates more than 1 out of every 4 motor vehicle crashes involves cell phone use at the time of the crash. “Cell phone use while driving has become a serious public health threat,” said Janet Froetscher, NSC president and CEO. “This white paper provides the necessary background and context for lawmakers and employers considering distracted driving legislation and policies. Several states and municipalities have passed legislation allowing hands-free devices while driving. These laws give the false impression that hands-free phones are a safe alternative, when the evidence is clear they are not. Understanding the distraction of the brain will help people make the right decision and put down their cell phones while driving.”n

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House Judiciary Committee Holds Hearing on Design Patents for Auto Replacement Parts The U.S. House of Representatives Committee on the Judiciary held a hearing on “Design Patents and Auto Replacement Parts” March 22. The hearing focused on Rep. Zoe Lofgren’s, DCalif., “Access to Repair Parts Act,” H.R. 3059. Witnesses at the hearing included: Jack Gillis, director of Public Affairs, Consumer Federation of America (CFA), Washington, D.C. Damian Porcari, director, Enforcement and Licensing, Ford Global Technologies, LLC, Dearborn, Mich. Robert C. Passmore, senior director, Personal Lines, Property Casualty Insurers Association of America, Des Plaines, Ill. Perry J. Saidman, principal, Saidman Design Law Group, Silver Spring, Md. Lofgren opened the hearing by stating the purpose for her bill - prevent price gouging combined with auto manufacturers not needing a monopoly over crash parts to spur innovation - but also recognized that “intellectual property rights exist to create incentives for innovation - that’s why it’s in our constitution ... these government-created exclusive rights are crucial to the legal framework that promotes innovation in our country.” Gillis, who is also the head of the Certified Automotive Parts Association (CAPA), supports Lofgren’s bill. Gillis said, “For over 25 years, consumers have benefited from competition, albeit limited, between car company brand replacement parts and independently branded parts. Such competition, where it exists, lowers prices, provides choices and improves quality.” Gillis’ main reasons for supporting H.R. 3059 follow: Elimination of competition will increase the cost of

repairs. Eliminating competition will increase insurance premiums for consumers. Eliminating competition in crash parts could diminish safety. Eliminating competition will result in more “totals.” Eliminating competition protects the automakers’ “double whammy.” Gillis described the automakers’ “double whammy” as meaning “not only will the lack of competition allow car companies to charge whatever they want for the parts we need to fix our cars, but when they charge so much that the car is ‘totaled,’ our only recourse is to go back to them and buy another one of their products.”

May 2010

Congress can preserve consumer access to affordable, competitive and quality crash parts by adopting a “repair clause” in the design patent law. Porcari testified against H.R. 3059, stating: “Copycat parts hurt Ford, our employees, our suppliers, our dealers and our customers. Ford customers rarely know that they are getting copycat parts because their use is frequently concealed. Customers purchase a Ford vehicle for many reasons, including its features, quality, styling and value ... The bill’s proponents present no basis for treating visible repair parts differently than other items protected by intellectual property. The copyists want to elimiDesign Patents Please Turn to Page 23

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Design Patents From Page 21 nate design patent protection because that’s what they make. As soon as their business model includes engines, brakes and air bags, we will likely hear the call for the elimination of patent protection on all types of replacement parts. And it won’t stop with cars. The denial of intellectual property rights will always reduce copiers’ costs.” Porcari offered another reason for opposing H.R. 3059, saying, “Some background about the insurance industry will Financial Stability Act From Page 13 tices to go on unnoticed and unregulated. Federal Bank Supervision: Streamlines bank supervision to create clarity and accountability and protects the dual banking system that supports community banks. Executive Compensation and Corporate Governance: Provides shareholders with a say on pay and corporate affairs with a non-binding vote on executive compensation. Protects Investors: Provides tough new rules for transparency and accountability for credit rating agencies to protect investors and businesses. Enforces Regulations on the Books: Strengthens oversight and empowers regulators to aggressively pursue financial fraud conflicts of interest and manip-

illuminate what’s really spurring foreign parts copiers and unscrupulous insurance companies. Ford provides insurance companies with its genuine Ford replacement part pricing for every new Ford vehicle. Insurance companies use genuine Ford replacement part prices to set their insurance rates. After state regulators approve these rates, insurance companies then refuse to pay for genuine Ford parts and steer body shops to use cheap, copycat parts ... This entire discussion about consumer choice and right to repair is merely a distraction

from the basic unethical business practice of pricing insurance premiums and using genuine Ford parts and then giving consumers cheap foreign parts.” The Automotive Service Association (ASA) opposes H.R. 3059 because it makes no assurances for the quality and safety of non-original equipment manufactured (OEM) parts. ASA sent a letter, along with other associations, opposing Lofgren’s bill in 2009. ASA has also provided a draft letter for repairers to send to their representatives opposing H.R. 3059.n

ulation of the system that benefit special interests at the expense of American families and business. Office of National Insurance: Creates a new office within the Treasury Department to monitor the insurance industry, coordinate international insurance issues, and requires a study on ways to modernize insurance regulation and provide Congress with recommendations. Considerations shall be based on and guided by the following: Systemic risk regulation with respect to insurance Capital standards and the relationship between capital allocation and liabilities, including standards relating to liquidity and duration risk. Consumer protection for insurance products and practices, including gaps in state.

The degree of national uniformity of state regulation. The regulation of insurance companies and affiliates on a consolidated basis. International coordination of insurance regulation. Costs and benefits of potential federal regulation of insurance across various lines of insurance (except health insurance). The feasibility of regulating only certain lines of insurance at the federal level, while leaving other lines of insurance to be regulated at the state level. The potential consequences of subjecting insurance companies to a federal resolution authority, including the effects of any federal resolution authority. Streamlining the regulation of surplus lines of insurance and reinsurance through state-based reforms.n

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Restating BMW’s traditional Lform are the taillight clusters of both Sedan and Sports Wagon models. Their two main segments, for the taillights and turn signals, are composed of LED rows for an even higher-tech look than before. On Sedans, the trunklid is newly shaped to go with the new taillight design. And the 0.6-in.-wider rear track does its part to strengthen an already road-gripping stance.

BMW 3 Series From Page 14 optimize traction; it can also enhance both agility and stability on grippy as well as slippery road surfaces. The design: unique, unmistakable, elegant The current 3 Series, already strong on BMW dynamism and identity, now gains an additional measure of both by virtue of discreet updates and refinements. At the rear, a widened track enhances these vehicles’ plantedon-the-road stance; careful and subtle modifications to the front, sides and aft end make the total design even more harmonious. A bold front spoiler/bumper ensemble imparts sportier, stronger character. Its center air intake is larger than before, enhancing the air supply for mechanical components; upswept lines in the lower air intakes, the bumper itself and the newly shaped headlight clusters emphasize the wide stance. Double longitudinal hood lines, more 3-dimensional than ever, rise toward the A-pillars and frame the hood’s power dome. The lower character line that runs from just behind the front wheel well to just ahead of the rear wheel well, is more prominently contoured and strongly expresses the low stance.

Interior: newly refined materials, surfaces and colors Here too, subtle updates and refinements mark the newest 3 Series Sedan and Sports Wagon interiors. Materials and surface quality add appeal; certain functional elements including the optional iDrive controller and climate and audio controls offer refined appearance and tactile qualities. In g e n eral, the interior space – with its a t t r a ctive interplay of convex and concave surfaces, its sporty elegance and technology-oriented esthetics is more appealing than ever. n

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NADA Statement in Response to GM's Announcement to Restore 661 Dealers The following is a statement by Ed Tonkin, chairman of the National Automobile Dealers Association: "The announcement by General Motors today of its intent to reinstate 661

dealers is a significant move forward in advancing the state of dealer relations. We're eager to work with Mark Reuss and his team as they focus on restoring stronger ties with their dealers.

"We appreciate the good faith effort that GM is showing and hope that this carries forward in its continuing settlement and arbitration discussions with the remaining wind-down dealers."n

I-CAR From Page 12

KMC platform. The KMC technology will be accessible through the I-CAR website or through KMC. “We are very proud I-CAR selected KMC to partner on this initiative, as we share with I-CAR a similar vision that every person in the collision industry has the skills to achieve a complete and safe repair by increasing access to knowledge-

based training directly related to his or her role in the field.” said Colm Keenan, V.P. Knowledge Management. “This collaboration brings together two industry leaders to seamlessly integrate the elearning capabilities of KMC On Demand and the training expertise of I-CAR.” The market launch of this initiative is targeted for late 3rd quarter of 2010.n

place for our industry to meet.” “The SCRS and its members represent and important audience at the SEMA Show,” stated Peter MacGillivray, SEMA vice president of events and communications. “We’re pleased to be working with them to develop programs and features that are relevant to the collision repair industry.”

Exhibitor space sign-up for the show has already opened, and exhibitor applications received with deposits by May 7th, 2010 will be included in the priority space selection process. Attendees will be able to register for both their SEMA Show entrance and SCRS RDE seminars through the show website www. .n

well as those in collision repair and other related industries will be able to maintain their I-CAR training recognition status and state continuing education (CE) credits, as both CE credits and I-CAR recognition will be awarded for completion of the appropriate coursework on the RDE From Page 10 ing and I have the staff; if there is another business opportunity that caters to my customer base, and only requires investment in some inventory and additional training, I want to know more about it. The SEMA Show is certainly the perfect venue to learn more, and such a logical

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Sports & Imports Collision Converted Basecoat Paints From Solvent to Waterborne


By Russ Heaps

Gene Hamilton and Jeanette Hamilton reviewing environmental compliance records provided by ReComply

Not satisfied with simply worrying about the environment, Gene Hamilton of Sports & Imports Collision is making major investments to reduce the negative impacts of his business on the earth. His efforts include a wide variety of initiatives from reducing waste to converting his paint booths from solvent to waterborne basecoats. “I've always been conscious of the environment,” Hamilton said, “but there are a million ways to go.” With shops on West Hospital Avenue in Chamblee and McDaniel Road in Duluth, Hamilton's embracing of good environmental stewardship can be traced back to the 1990s when he installed a water reclamation system. The Society of Collision Repair Specialists gave him an award for that initiative, and he has been going “green” ever since. Today Hamilton uses Nevada-based ReComply, an environmental records management company, to help steer his green efforts for maximum effect. It not only serves as a liaison of sorts between Hamilton's business and the EPA, as well as other regulatory agencies; but aids Hamilton in developing his green strategy. It ensures Sports &

Southern Automotive Journal

May 2010

Imports Collision is in compliance with all federal, state and local regulations. It also has the authority to issue the Certified Green Investment (CGI) certification the EPA uses to qualify a business for subsidies and tax incentives. “ReComply has created a little extra work,” Hamilton explained, “but has been a source of savings in terms of the improvements we've made. They say, 'This is available and here are the steps you need to take.'” Arguably the largest investment to date has been to convert his paint booths to waterborne. Retrofitting a paint booth for waterborne paints can cost between $5,000 and $50,000 according to Howard Batchelor, the business development manager for FinishMaster, Inc., an independent paint distributor headquartered in Indianapolis, Indiana. He added that waterborne basecoats are healthier for the painter, require less paint to cover the panels, and are free of solvents. “The end game is to increase efficiencies with water-

borne basecoats,” Batchelor said. “There are some extra costs, though; the paint is a little more, but in the right environment, it can speed up the process.” Hamilton doesn't shy away from the financial commitment his environmental activism requires. He recently spent $150,000 on a new waterborne paint booth for one of his shops. Waterborne paints reportedly eliminate virtually all volatile organic compounds (VOCs). Consequently he is convinced that eventually waterborne paint will be federally mandated, and he is serious about staying ahead of the curve. Echoing FinishMaster's Batchelor, he said, “Waterborne is a little more expensive, but much more environmentally sound.” Although converting to waterborne paints is the centerpiece of Hamilton's environmental strategy, it represents only a fraction of his green efforts. “Anything that has to do with energy,” he stated, “we're trying to handle it right: water, electric, and so on.” He is aggressive about managing waste. He makes regular trips to the recyclers with cardboard, shredded aluminum, and shredded metal. “We even separate our cardboard and sell it,” he said. “We get $8 a ton for it and that's about what it costs us to take it down there. We shred and sell all of our aluminum and metal.” Hamilton's shops recycle their oil and waste as well. stated. “The EPA said they had never heard of anybody that keeps that kind of rein on their waste.” When asked what his employees think about all of his green activities, Hamilton said he thinks they are on board with his efforts and have become more environmentally conscious themselves. “All of the things we are doing here and plan to do just all seem kind of normal to them,” he added. For Hamilton, being environmentally friendly is an ongoing process. He is always looking ahead and consulting with ReComply on the next environmental enhancement to make. Next on the agenda is exchanging 50 incandescent lights and fluorescent tubes with LEDs. “We're going to change out $.60 bulbs for $19 LEDs,” he said laughing. “Yep, they cost more, but they draw less power and will last 15 years.”

Arguably the largest investment to date has been to convert his paint booths to waterborne. Retrofitting a paint booth for waterborne paints can cost between $5,000 and $50,000 Howard Batchelor Business Development Manager FinishMaster, Inc., Future plans call for installing motion-detector light switches in the restrooms that will automatically switch off when unoccupied. Hamilton is also considering using solar panels to power the outdoor lighting at his shops. “We think it will reduce the cost to operate them by 25% to 50% of what we've been paying,” he said. This spring Hamilton intends to plant a garden at one of his shops. What we grow we'll donate to the homeless,” he explained. There is no question that Hamilton is passionate about the environment; however, it's his willingness to invest in that passion that really impresses. FinishMaster's Batchelor, when asked to comment on Hamilton's commitment, said, “There are other shops going green, but not to the extent that Gene has. This was a true team effort between BASF, FinishMaster, Sports & Imports and Recomply. “What we're trying to do,” Hamilton said, “is follow a better plan to protect the energy of the world. There are just so many small things that go into it.”n May 2010

Sport and Imports Going Green Partners BASF FinishMaster ReComply

Southern Automotive Journal


Elantra From Page 18 include heated seats as well as steeringwheel-mounted cruise and audio controls; the steering column also tilts for improved control. Cool blue back lighting adds a modern, easyto-read ambience at night. Music lovers will welcome the 2010 Elantra’s inclusion of XM Satellite Radio and standard auxiliary input jacks (3.5 mm mini-jack and USB input) to accommodate and charge audio devices such as iPods. When an iPod or flash drive is connected through the USB port, not only does it play music through the vehicle’s six-speaker audio system, but it also charges the iPod. The new audio display included with this system also allows both driver and passengers to easily view four lines of song/artist/title information and control the music from

the audio head unit rather than from the iPod itself. Thanks to advanced clean engine technology, most Elantras sold in

California, Oregon and several Northeast states are certified as Partial Zero Emission Vehicles (PZEV) by the EPA. The PZEV Elantra is as clean as many hybrid electric vehicles and helps Hyundai meet its environmental commitments. Outside of these “green” states, the Elantra is available in Ultra Low Emission Vehicle

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Southern Automotive Journal

(ULEV) configurations. Hyundai’s advanced 2.0-liter, in-line four-cylinder engine powers the Elantra. This sophisticated 16-valve powerplant employs Dual Over Head Camshafts (DOHC) and Continuously Variable Valve Timing (CVVT) for a very broad power spread, coupled with high fuel efficiency and low emissions. The ULEV variation is rated at 138 horsepower at 6,000 rpm and 136 lb.-ft. of torque at 4,600 rpm. PZEV engines are available only with a four-speed automatic transmission, and are rated at 132 horsepower at 6,000 rpm and 133 lb.-ft. of torque at 4,600 rpm. The Elantra Blue’s estimated mileage is 26 mpg city, and 35 mpg highway. With the four-speed automatic transmission found in the Elantra GLS and SE, the estimated rating is 26 mpg city and 34 mpg highway.n

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