Autobody News November 2011 Western Edition

Big changes are instore this month forone of the coun-try’s biggest multi-ple shop operators(MSOs): CaliberCollision Centers.

Caliber Collisionwill be relocating

the company’s corporate headquartersfrom Irvine, California to Lewisville,Texas—a suburb in the northern areaof the Dallas-Fort Worth Metroplex.

“Our relocation to Texas allowsus to consolidate management spreadacross a number of locations in Cali-

fornia and Texas,” said SteveGrimshaw, President and CEO ofCaliber Collision Centers.

Caliber plans to move into theirleased 16,397 square foot space at 401E. Corporate Drive in Lewisville,Texas in mid-November. Caliber willmove because of Dallas-Fort Worth’saffordable metropolitan area, centrallocation, business-friendly environ-ment and large, diversified work-

Caliber Collision Moves Headquarters to Texas,Acquires ‘911 Collision’ in Arizona and Nevada

The 2011 SEMA show will occupy the LasVegas Convention Center from October 31to November 4 and attendance numberscontinue to climb as the show draws closer.The show boasts over 2,000 exhibiting com-panies already registered for booths, morethan 500 of which are exhibiting for the firsttime. The ever-popular Paint, Body andEquipment section will also return this year,showcasing companies who offer products,services and equipment suited for the colli-sion repair professional. See page 62 forI-CAR and SCRS RDE Schedule.

Moderator, ASA’s Bob Redding Terri Seefeldt, Rogers Benefit Group

Don Seyfer, Seyfer Automotive Jim Houser, Hawthorne Auto Clinic

Health CarePanel at:

NACE/CARS 2011

An auto service-oriented Health Care Panel at NACE/CARS revealedsurprising misconceptions, passionate disagreement, divided opin-ions and competing priorities for Health Care and how it should bepaid for and managed in America. A three-part series on Health Careand its likely impact on shop owners begins next month.

See preview at:autobodynews.com

See also ‘Profile of the EvolvingCollision Repair Markeplace’ onMSOs, by Romans Group, p. 46

See Caliber, Page 49

Steve Grimshaw

Brock Bulbuck, The Boyd Group Steve Grimshaw, Caliber Collision

Cathy Bonner, Service King Rollie Benjamin, ABRA Auto Body and Glass

CEOs of Four of the Largest MSOs in the Industry holdfirst-time MSO Symposium at NACE/CARS

See MSO Insights, Page 44

The opening generalsession at NACE/CARS,introduced by MitchSchneider, CARS Chair,and Ron Nagy, NACEChair, (r).Autobody News hasextensive coverage ofthe show at:www.autobodynews.com/events/nace-2001.html

Stay up-to-date at this year’s SEMAshow with Autobody News.Visit http://www.autobodynews.com/events/sema-2011.html for moreSEMA show coverage.

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REGIONALABRA Auto Body & Glass Expands GlassOperations with Location in Phoenix, Arizona. 6

Arizona Dust Storm May Have Caused 7 CarWreck . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Arizona’s Lax Driver-Test Rules Lure Foreigners . 6CA Airbag Law Signed Into Law by Governor . 4CA Dealers Now Required to Sticker SalvagedVehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

CA Insurance Commissioner Dave Jones SeeksLegislation to Oversee Insurance Annuities . 8

CAA San Diego to Host its Annual HolidayEvent in Nov. . . . . . . . . . . . . . . . . . . . . . . 24

Caliber Collision Centers Adds NorthHollywood Shop. . . . . . . . . . . . . . . . . . . . . 6

Caliber Collision Moves Headquarters toTexas, Acquires ‘911 Collision’ in Arizonaand Nevada . . . . . . . . . . . . . . . . . . . . . . . . 1

California Law Protects Claims FromDisabled Insureds. . . . . . . . . . . . . . . . . . . 23

Collision Repair Standards on their Way,Industry Veteran Alerts . . . . . . . . . . . . . . . 12

Cook’s Collision Centers Adds Two NewLocations . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Dennis Grau of Exide Technologies Appointedto CA/NV/AZ Automotive WholesalersAssociation (CAWA) Manufacturers’Advisory Council . . . . . . . . . . . . . . . . . . . 23

Driving and Texting Ban Takes Effect in Nevada. 6Foremost Insurance Upgrades Auto Programin Arizona. . . . . . . . . . . . . . . . . . . . . . . . . . 8

Golden State Collision Centers Gives Back toCommunity with Harvest Festival . . . . . . . . 8

Roseville, CA, Company in talks to buyCarmichael Honda in Citrus, CA . . . . . . . . . 9

San Diego Chapter of the California AutobodyAssociation (CAA) Hosts Frank Terlep ofSummit Software Solutions for DigitalMarketing Meeting . . . . . . . . . . . . . . . . . . . 4

Santa Clara CAA Hosts 18th Annual GolfTournament . . . . . . . . . . . . . . . . . . . . . . . 16

Sierra Vista, AZ Gets Red Light Cameras. . . . 14Southern Polyurethanes Inc. Retains House ofKlear for Southern California Distribution. . 18

COLUMNSAmaradio - There is No Such Thing as a ‘BadDecision’ in Business . . . . . . . . . . . . . . . . 41

Attanasio, Pro-Spray - Busy Shop ClearlySees Benefits Working with Pro-SpraySolvent & Waterborne. . . . . . . . . . . . . . . . 27

Attanasio - How to Use Five Different Formsof Social Media to Gain Customers . . . . . . 28

Chess - SEMA’s Repair Driven Education andGovernment Regulations . . . . . . . . . . . . . 66

Franklin - Choosing a More Profitable Market . 14Insurance Insider - Can the Collision IndustrySupport Two Major Trade Shows? . . . . . . 33

Weaver - Dealing with Angry Customers andGrowing ‘Alligator Skin’. . . . . . . . . . . . . . . 39

Williams - A Relatively Young Audi DealershipMakes Quality Pay Off . . . . . . . . . . . . . . . 68

Yoswick - SCRS Affiliate Groups Help MembersAddress Legislative and Regulatory Issues . 20

NATIONAL2011-2012 Chevrolet Corvettes Recalled forRear Hatch Hinges . . . . . . . . . . . . . . . . . . 38

A Profile of the Evolving Collision RepairMarketplace . . . . . . . . . . . . . . . . . . . . . . . 46

AAIA ‘Shop of Tomorrow’ Vehicle Serviceat AAPEX . . . . . . . . . . . . . . . . . . . . . . . . . 51

AAPEX Learning Forum to Provide 30 A/MPrograms . . . . . . . . . . . . . . . . . . . . . . . . . 51

ALLDATA Expands Integration with ElectronicParts Catalogs . . . . . . . . . . . . . . . . . . . . . 64

ALLDATA Training Center to Exhibit at AAPEX. 40Allstate and Progressive Agree to SettlePatent Litigation . . . . . . . . . . . . . . . . . . . . 59

AM Tow Package Wiring Harnesses forHyundai/Kia Recalled . . . . . . . . . . . . . . . . 38

At NACE, State Farm Announces Change toShop Locator to Allow Ranking Based onInternal Performance Score, Will Use‘PartsTrader’ for DRPs . . . . . . . . . . . . . . . 63

California Man Guilty of Selling CounterfeitALLDATA Products . . . . . . . . . . . . . . . . . . 64

CARSTAR 2011 Holds National TeleconferenceAt Annual Seattle National Conference . . . 18

Chrysler to Invest $165 Million in Body Shopat MI Plant . . . . . . . . . . . . . . . . . . . . . . . . 65

Despite Poor Economy, Auto Sales RemainStrong . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Dollar Thrifty Halts Sale Process, Hertz StillInterested in Acquisition . . . . . . . . . . . . . . 24

DuPont Custom Finishes to Exhibit at SEMA ‘11. 10DuPont Exhibit at SEMA Show Live PaintDemonstrations . . . . . . . . . . . . . . . . . . . . 60

EPA Federal Office Response to SCRS Letteron 6H Rule . . . . . . . . . . . . . . . . . . . . . . . . 65

Fiat 500 Top IIHS Safety Pick . . . . . . . . . . . . 65Florida and Michigan AAA Clubs Join Forces,Now 2nd Largest . . . . . . . . . . . . . . . . . . . 59

Girl Scouts Gear Up at NACE for CollisionHub’s Tools for Success. . . . . . . . . . . . . . 26

GM Introduces Industry-First Front CenterAirbag . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Houston Auto Body Assn Says Tell TX DOIYour Labor Rates . . . . . . . . . . . . . . . . . . . 61

I-CAR Repairability Summit: Don’t SectionUltra-High-Strength Steel . . . . . . . . . . . . . 69

IRS Offers Employers Tax Relief if WorkersReclassified . . . . . . . . . . . . . . . . . . . . . . . 60

Kristen Felder Nominated for Car Care Council“Aftermarket Woman of the Year” Award. . 10

LKQ Founder Donald E. Flynn Passes Away . 65MBUSA CEO Lieb Ousted . . . . . . . . . . . . . . . 65Mitchell Partners with Enterprise Rent-A-Car,Integrates with Update Promise.com toDeliver Services via RepairCenter™ . . . . . 59

Mitchell RepairCenter™ Standardizes SpecialMaterials Repair Data within TechAdvisor,Single Source Access to Multiple OEMs . . 64

MSOs Share Insights During First-timeSymposium at 2011 NACE . . . . . . . . . . . . 44

NABC Nominees for 2012 Board of DirectorsAnnounced. . . . . . . . . . . . . . . . . . . . . . . . 60

Nationwide Insurance Buys Harleysville Group. 61Polk Execs Speak about Aftermarket at AAPEX. 40Polk Execs Speak about the Aftermarket atAAPEX . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

State Farm Offers to Settle Three of Gunder’sCustomers’ Lawsuits . . . . . . . . . . . . . . . . 32

U.S. Deer-Vehicle Collisions Fall 7 Percent . . 51Virginia Branded Title for Water DamageSettles at $2500. . . . . . . . . . . . . . . . . . . . 60

Women's Industry Network Awards TwoScholarships to NACE . . . . . . . . . . . . . . . 42

World’s Oldest Running Car Fetches HighPrice at PA Auction. . . . . . . . . . . . . . . . . . 70

Contents

Publisher & Editor: Jeremy HayhurstGeneral Manager: Barbara DaviesAssistant Editor: Erica SchroederContributing Writers: Tom Franklin, David Brown, JohnYoswick, Lee Amaradio, Rich Evans, Janet Chaney, TobyChess, Mike Causey, Tom McGee, Ed Attanasio,Chasidy SiskAdvertising Sales: Joe Momber, Sean Hartman(800) 699-8251Sales Assistant: Kristy NavarroArt Director: Rodolfo Garcia

Serving California, Nevada and Arizona, Autobody Newsis a monthly publication for the autobody industry. Per-mission to reproduce in any form the material publishedin Autobody News must be obtained in writing from thepublisher. ©2011 Adamantine Media LLC.

Autobody NewsP.O. Box 1516, Carlsbad, CA 92018(800) 699-8251 (760) 721-0253 Faxwww.autobodynews.comEmail: [email protected]

AkzoNobel . . . . . . . . . . . . . . . . . . . .11Audi Wholesale Parts Dealers . . . . .68Autoland Scientech . . . . . . . . . . . . .39Automotive ID . . . . . . . . . . . . . . . . . .44BASF . . . . . . . . . . . . . . . . . . . . . . . .17BMW of Vista . . . . . . . . . . . . . . . . . .42BMW Wholesale Parts Dealers . . . .53Buerge Chrysler-Jeep-Dodge . . . . .23Carlsen Volvo . . . . . . . . . . . . . . . . . .34Cebotech/Tecna . . . . . . . . . . . . . . . . .4Chief Automotive . . . . . . . . . . . . . . . .9Classifieds . . . . . . . . . . . . . . . . . . . .70Completes Plus . . . . . . . . . . . . . . . .44Crash-Writer . . . . . . . . . . . . . . . . . . .20Crevier BMW . . . . . . . . . . . . . . . . . .24Crystal Glass . . . . . . . . . . . . . . . . . .41Diamond Hills Auto Group . . . . . . . .52Diamond Standard . . . . . . . . . . . . . . .8Downtown Motors of LA

(Audi, VW, Porsche) . . . . . . . . . . .49Drew Hyundai-Volkswagen . . . . . . .48DuPont . . . . . . . . . . . . . . . . . . . . . . . .5Elk Grove Toyota . . . . . . . . . . . . . . .62Enterprise Rent-A-Car . . . . . . . . . . .67Equalizer Industries . . . . . . . . . . . . .50Ford Wholesale Parts Dealers

AZ, CA, & NV . . . . . . . . . . . . . . . .25Galpin Motors . . . . . . . . . . . . . .32, 40Garmat USA . . . . . . . . . . . . . . . . . . .28Gema . . . . . . . . . . . . . . . . . . . . . . . .26GlennE. ThomasChrysler-Jeep-Dodge .15GM Wholesale Parts Dealers . . . . . .61Goliath Carts . . . . . . . . . . . . . . . . . . .6H & S Auto Shot . . . . . . . . . . . . . . . .28Honda-Acura Wholesale Parts

Dealers . . . . . . . . . . . . . . . . . .36-37Hyundai Wholesale Parts Dealers . .59Infratech . . . . . . . . . . . . . . . . . . . . . .14Kia Motors Wholesale Parts Dealers .57

LKQ . . . . . . . . . . . . . . . . . . . . . . . . .71Malco . . . . . . . . . . . . . . . . . . . . . . . .19Matrix . . . . . . . . . . . . . . . . . . . . . . . .22Mattei . . . . . . . . . . . . . . . . . . . . . . . .52Mazda Wholesale Parts Dealers . . .63MINI Wholesale Parts Dealers . . . . .66MOPAR Wholesale Parts Dealers . .43Moss Bros. Chrysler-Jeep-Dodge . . .7Motor Guard . . . . . . . . . . . . . . . . . . .12Nick Alexander BMW . . . . . . . . . . . .13Nick Alexander MINI . . . . . . . . . . . .72Nissan/Infiniti Wholesale Parts Dealers .56Paint EX . . . . . . . . . . . . . . . . . . . . . .18PPG . . . . . . . . . . . . . . . . . . . . . . . . . .2Pro-Spray . . . . . . . . . . . . . . . . . . . . .21RBL Products . . . . . . . . . . . . . . . . . .50RealParts.com . . . . . . . . . . . . . . . . .35Replica Plastics . . . . . . . . . . . . . . . .65Riverside Metro VW-Honda-Hyundai-

Nissan-Mazda . . . . . . . . . . . . . . .58Safety Regulation Strategies . . . . . .63SATA Spray Equipment . . . . . . . . . .16Shingle Springs Nissan-Subaru . . .54Shop-Pro Equipment . . . . . . . . . . . .29SierraChevrolet-Honda-Mazda-Subaru .46Southern Polyurethanes, Inc. . . . . .45SprayZone.net . . . . . . . . . . . . . . . . .30Star-A-Liner . . . . . . . . . . . . . . . . . . .33Steck Manufacturing . . . . . . . . . . . .10Subaru Wholesale Parts Dealers . . .51Timmons VW-Subaru . . . . . . . . . . . .47Toyota Wholesale Parts Dealers . . .69VeriFacts . . . . . . . . . . . . . . . . . . . . . .42VIM Tools . . . . . . . . . . . . . . . . . . . . .64VolkswagenWholesale Parts Dealers .60Volvo Crash Wholesale Dealers . . .62Weatherford BMW . . . . . . . . . . . . . .31Zurada Law Group . . . . . . . . . . . . . .34

Inde

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The San Diego chapter of the Califor-nia Autobody Association (CAA) heldtheir monthly members meeting onSeptember 27 at 7p.m. at Tom Ham’sLighthouse in San Diego. The meet-ing’s guest speaker was Frank Terlepof Summit Software and Mobile So-lutions.

Frank’s focus was digital market-ing and how shops can better use dig-ital marketing to capture more cars,customers and revenue.

Digital marketing producesexact, measurable results and allows

customers to reacha more targeted au-dience than tradi-tional marketingefforts. The cost isalso dramaticallylower than that oftraditional market-ing. Frank’s pres-

entation focused on how to use email,web, mobile and text services and so-cial media to accomplish marketingfor shops.

“82% of consumers will purchasea product or service from a companywhen marketed to consistently for 24months,” said Terlep.

The first order of business forshops to start taking advantage of thelarge amount of ‘digital consumers’—people who regularly use digital mar-kets—is to increase their webpresence. Terlep talked about a fewways to go about doing this includingusing social media sites, review andlocation sites, and creating a companynewsletter; however the number oneway should be to have a complete and

engaging company website.“Treat your website like your on-

line lobby,” said Terlep.Terlep also encouraged shops to

start actively collecting email ad-dresses and mobile numbers from cus-tomers in order to better reach themthroughout the job process. Accordingto Terlep emails are a great way to fol-llow up on unsold estimates as well.

Terlep also touched on using mo-bile phones to communicate with theincreasing amount of people who reg-ularly use them. Terlep’s is not talkingabout calling these mobile numbers—he’s talking about texting.

Terlep said shops can text a cus-tomer about their vehicle status, emer-gency communications, promotionsand short surveys. Mobile texts alsohave a 7 to 10 percent response rate,which is a large return on investmentwhen you consider the amount of ef-fort required to send a text, accordingto Terlep.

Reaching out to mobile phonecustomers also means thinking abouthaving an app created for your busi-ness. Read more about Terlep’s appsuccess with Nigro’s Auto Body inPhiladelphia, PA, by searchingNigro’s on www.autobodynews.com.

“Shops need to start thinking likea retailer,” said Terlep. Terlep wasadamant about shops making theircustomer experience closer to that of aretail store, which is the experiencemost customers are more familiarwith.

Terlep also talked about using so-cial media to market shops. He sug-gested that shops only use Facebook

and other social media sites to edu-cate, post activities, create contestsand post specials and reviews abouttheir businesses—not to sell to theirfollowers.

According to Terlep 82 percent ofcustomers select a shop based on re-views, so checking and managingyour shop’s Yelp page is critical.

Terlep talked about using surveysto create your own reviews on yourpersonal website. He said that mostshop surveys are entirely too long andwordy for customers. Terlep said theonly two questions that really must beon a survey are “What did you thinkabout us?” and “Would you refer us tofriends or family?”—”That’s all youneed,” said Terlep.

Lastly Terlep touched on using e-coupon sites and posting your ownspecials and deals on your website andsocial media to draw in more repeatbusiness. He used an example of tex-ting “Half price detailing until noontomorrow” to your database of mobilenumbers when having a slow after-

noon at your shop. He said with that 7to 10 percent return on investmentfrom texts you should have some busi-ness come in on that slow afternoon.

Using coupon sites like Grouponand Living Social are also a great wayto get customers in for maintenancetype work and get them to know youand your shop, according to Terlep—this way they are more likely tochoose your business when they havea collision.

Effectively using the databaseyour shop already has from existingcustomers is a great way to increasesales.

“It is much easier to get repeatbusiness than it is to get new busi-ness,” said Terlep.

Terlep recommended that shopsspend 80 percent of their marketingefforts and budgets on digital market-ing.

“You need to fish where the fishare,” said Terlep.

For more information please visitwww.summitsoftwaresolutions.com.


NACE Booth #N531SEMA Booth #11041

San Diego Chapter of the California Autobody Association (CAA) HostsFrank Terlep of Summit Software Solutions for Digital Marketing Meeting

Frank Terlep

California Gov. Edmund Brown hassigned into law CA S.B. 869, legisla-tion that amends current law regulat-ing automotive repairers.

The new law amends the Auto-motive Repair Act. It provides that anautomotive repair dealer who preparesa written estimate for repairs that in-cludes the replacement of a deployedairbag and then fails to restore theairbag, as specified, is guilty of a mis-demeanor punishable by a $5,000 fine,one-year imprisonment in a countyjail, or both the fine and imprisonment.

Because this legislation would es-tablish a new crime, the bill would cre-ate a state-mandated local program.

The California Constitution requiresthe state to reimburse local agenciesand school districts for certain costsmandated by the state.

Statutory provisions establishprocedures for making that reimburse-ment. This bill would provide that noreimbursement is required by this act.

CA Airbag Law Signed Into Law by Governor

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A dust storm is moving through Ari-zona and may have caused a seven-carwreck on Interstate 10 that injured 13people, according to Claims Journal.

HectorVasquez, a meteorologistwith the National Weather Service,says the dust storm isn’t all that denseand hasn’t caused the agency to issue adust storm warning because visibilitywas at between 1 and 5 miles.

Other dust storms this summerhave reduced visibility to less than aquarter mile.

The storm began near Tucson andwas heading toward Phoenix.

Vasquez says Interstate 10 nearPicacho Peak got a “direct hit” fromthe storm and may have caused an ac-cident that backed up traffic formiles.

The Arizona Daily Star reportsthat the seven-vehicle wreck includedtwo tractor-trailer rigs, and that dustprevented helicopters from transport-ing patients for a while.

Five people were taken by ambu-lance to local hospitals.

Arizona Dust Storm MayHave Caused 7 Car Wreck

ABRA Auto Body & Glass, a Min-nesota-based damaged vehicle repaircompany and industry leader, an-nounced on October 3 the opening ofa new glass division repair center inthe Phoenix suburb of Peoria, Ari-zona.

The facility is located at 16784North 88th Drive and increases thetotal number of ABRA repair centersto 109 in 12 states.

Jim Richardson, ABRA’s VicePresident of ABRAAuto Glass stated,“We’re excited to move into thePhoenix market. ABRA is expandingto meet the growing needs of vehicleowners and our insurance partners inthe community. ABRA is committedto make it convenient for customersto find an ABRA Auto Body & Glassrepair facility no matter where theyhappen to live or work.”

The glass repair facility isequipped with all the latest technol-ogy to maintain high standards andassure top quality repairs.

Staff technicians have extensiveexperience and receive ongoing state-of-the-art industry training.

“We plan to add several newABRA collision centers in the

Phoenix-Scottsdale area in the near fu-ture,” said Tim Adelmann, ABRA’sExecutive Vice President of BusinessDevelopment. “Through acquisitionor by converting existing vacant prop-erties into collision repair centerswe’re confident our collision and glassservice will impress both the vehicleowner and our business partners.”

The company is continuallyworking to become greener and envi-ronmentally friendly and participatesin neighborhood activities and localevents which continually enhance thecommunity.

ABRA’s mission is to be the pre-mier auto body and glass company inAmerica by repairing damaged vehi-cles right the first time, on time whileproviding an exceptional customerexperience.

For more information pleasevisit www.abraauto.com.

ABRA Auto Body & Glass Expands Glass Operationswith Location in Phoenix, Arizona

Arizona has become a magnet for for-eigners who find it easier to get a dri-ver’s license than in the states wherethey live, according to Claims Journal.

It’s a development that’s raisingpublic-safety and national-securityconcerns.

Arizona has more permissiverules than any other state governingwho can get a license, how they can getit and how long the license is valid be-fore it expires.

Hundreds of people come to Ari-zona from stricter states seeking driv-ing credentials.

TheArizona Republic reports thatimmigrant-rights advocates say Ari-zona provides an essential service forpeople who are in the country legally,often as refugees.

They know how to drive a car butare unable to get a license in theirhome states because they can’t pass awritten test in English and translatorsaren’t allowed.

Arizona’s Lax Driver-TestRules Lure Foreigners

Caliber Collision Centers, a multi-shop operator of 84 collision repairfacilities, announced October 3 itscontinued expansion in the Los An-geles area with the grand opening ofa newly renovated 12,000-square-foot state-of-the-art collision repairfacility located in North Hollywood,Calif. The MSO operates shops inTexas and California.

“We continue to expand our ca-pacity in the Los Angeles area tomeet the growing needs of our cus-tomers and insurance clients acrossthe largest automobile market in theU.S.,” said Caliber Collision CenterCEO Steve Grimshaw. “The open-ing of this newest Los Angeles loca-tion further supports Caliber’scontinued expansion plans while of-fering our auto insurance clientsbest-in-class operational consistency,customer focus and cost manage-ment.”

Added Caliber Collision CenterCOO Mark Sanders, “The additionof this new North Hollywood loca-tion further expands our penetrationin California as we continue to growinto being the collision repairprovider of choice in every commu-nity we serve.” For more informationvisit www.calibercollision.com.

Caliber Collision CentersAdds North Hollywood Shop

Cook’s Collision Centers, a NorthernCalifornia-based collision repair op-eration, on Monday announced theaddition of two new locations inNapa and Fairfield, CA.

The Napa location, formerlyHanlee’s Volkswagen-Subaru BodyShop, will serve the California com-munities of Napa, Yountville, St. He-lena and Calistoga. The Fairfieldlocation, formerly Les Scarlett’s BodyShop, will serve the California com-munities that border the corridor join-ing the San Francisco East Bay withSacramento, according to Cook’sCollision Centers. Cook’s CollisionCenters now operates 18 locations.

Cook’s Collision CentersAdds Two New Locations

The new NV law banning talking on ahand-held cell phone or operating anelectronic device while driving took ef-fect Oct. 1. When the state Legislaturepassed the bill earlier this year, Nevadajoined eight other states to prohibit alldrivers from using a hand-held cellphone. Nevada also is among 34 statesto ban text messaging for all drivers.Starting Jan. 1, violators will be slappedwith fines—$50 for a first offense,$100 for a second and $250 for a thirdviolation within a seven-year period.

Driving and Texting BanTakes Effect in Nevada

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Foremost Insurance Group has up-graded their enhanced auto programwhich became available in Arizona inJune, according to Insurance Journal.The Foremost program features newdiscounts, increased coverage optionsand improved online processing fea-tures.

The Foremost Auto programalso now features the following up-grades:● A continuous insurance discountbased on length of time an insured waswith their most recent insurer. This dis-count is automatically verified througha third party report and requires no fol-low-up.● Accident forgiveness for accidentswith Foremost where the total payoutis less than $500.● The option to “go paperless” whenthe customer agrees to receive the pol-icy and billing documents via a validemail address.● Online enhancements including animproved web rater, new vehicle andownership questions to help get moreaccurate quotes and rates, enhancedhelp text on IAProducers.com, andVIN pre-fill at the beginning of thequoting process.

Foremost Insurance UpgradesAuto Program in Arizona

Golden State Collision Centers willhold their annual Harvest Festival onNovember 15 from 5:30 P.M. – 7:30P.M. at the MSO’s Orangevale, CAlocation.

This mixer will serve to benefitthe Twin Lakes and Orangevale FoodBanks, as well as providing localbusinesses an opportunity to networktogether. The collision center is thebeneficiary of the Orangevale Cham-ber’s $500 ‘Chamber Gives Back’grant, which will be presented to thefood banks, along with all canned andnon-perishable food items collectedfrom October 1 through November15th.

The MSO will be collectingfood donations from October 6through November 15. Simply dropoff your food items at Golden StateCollision Center’s Orangevale loca-tion located at 9439 Greenback Lane,Orangevale, CA. If you are unable todrop off donations, please contact Re-becca Endres at (916) 580-5637 [email protected] she can drop by your business tocollect your donations.

Golden State Collision CentersGives Back to Community withHarvest Festival

The California insurance commis-sioner is urging Gov. Jerry Brown tosign into law legislation that seeks toincrease oversight of insurance annu-ities.

Approved handily by the As-sembly and Senate chambers lastweek, the two-bill package headedfor Brown’s desk is aimed at protect-ing consumers from potential abusein the marketplace, said InsuranceCommissioner Dave Jones.

He noted that in 2010, Californi-ans spent $20.7 billion on annuities.

Assembly Bill 689 would re-quire insurers to set standards andprocedures to ensure annuities pur-chased, exchanged or replaced by aconsumer are indeed suitable forthem.

The proposal seeks to expand onrequirements set forth in the 2010National Association of InsuranceCommissioners’ (NAIC) AnnuitySuitability Model Regulation, a billanalysis noted.

Jones said seniors are sometimestargeted by unscrupulous insurers andtheir agents selling annuities notsuited for the consumer.

“After several years of failed at-tempts to pass similar legislation, I’mpleased that we prevailed in gettingthis annuity suitability legislationpassed to protect hard-working con-sumers and vulnerable seniors fromabuse and exploitation of harmful fi-nancial investment transactions in-volving annuities,” Jones said.

Assembly Budget CommitteeChair Bob Blumenfield (D-San Fer-nando) introduced the bill, whichwould add Article 9 (commencingwith Section 10509.910) to Chapter 5of Part 2 of Division 2 of the Insur-ance Code.

The second annuities-relatedmeasure, A.B. 793, would prohibitunscrupulous insurance agents andbrokers from participating with, em-ploying, or making referrals to an in-dividual involved in the sale ofreverse mortgages, with the sole pur-pose of cross-selling inappropriateand unsuitable non-casualty insur-ance products such as an annuity.

CA Insurance Commissioner Dave Jones SeeksLegislation to Oversee Insurance Annuities

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A fast-growing Roseville-based autosales company is closing in on anotherbig acquisition, according to theSacramento Bee.

The California Superstores Auto-motive Group is buying CarmichaelHonda fromlongtimeownerNorrisRan-court. Rancourt confirmed that talks areunder way but says nothing is finalized.

Rancourt opened his business in1962, selling Honda motorcycles.When Honda started making cars adecade later, he became one of thecompany’s first U.S. dealers. In hisyouth, Rancourt raced motorcycles.Now 77, he says he’s “obviously look-ing toward retirement.”

Carlos Hidalgo, head of the Cal-ifornia Superstores operation, is alongtime local dealer who now has 11dealerships stretching from Folsom toLos Angeles.

Roseville, CA, Company intalks to buy CarmichaelHonda in Citrus, CA

California automobile dealers muststart labeling salvaged vehicles with ared warning sticker under a new lawsigned Sept. 26 by Gov. JerryBrown. The new law also requiresdealers to use electronic vehicle reg-istration for all car sales and allowsdealers to charge consumers more torecoup added costs.

Under most states’ laws, a sal-vage vehicle is a vehicle that hasbeen wrecked or damaged to such anextent that it is considered too ex-pensive to repair. In almost all cases,salvage title is given to any vehiclethat has sustained damage worth75% or more of its value. Require-ments are going to vary by state. InFlorida, a car has to be damaged to80% of its value before the accident.Vehicles in Minnesota are consid-ered salvaged when they are de-clared “repairable total loss” by aninsurance company, were worth atleast $5,000 before the damage orare less than six years old.

The title, license plates, and a re-quired fee are submitted to the stateDepartment of Motor Vehicles (DMV)

and a Salvage Certificate is issued forthe vehicle.

Although many salvage vehiclesare expertly repaired, some vehicles:are not properly repaired and/ortested and may be dangerous to oper-ate and have been repaired withstolen parts. In California, if the Cal-ifornia Highway Patrol or DMV de-termines the vehicle or its parts havebeen stolen, the vehicle cannot beregistered and the vehicle or partswill be seized.

All sellers, including dealerships,are legally required to disclose the ve-hicle’s salvage title and history, butthe law is difficult to enforce, espe-cially when cars come in from anotherstate.

Both the California New CarDealers Association and consumer ad-vocates backed the new law.

“No other state can match thebuilt-in protections and convenienceawaiting Californians,” PeterWelch,president of the state’s dealers associ-ation, said in a statement. “Like everysmall business, dealers want to focuson customers instead of paperwork.”

About half of California’s dealersalready participate voluntarily in theelectronic registration system. Underthe new law, they will be able to in-crease the maximum documentationcharge from $55 for sales and $45 forleases to $80 for both.

Even with that jump, documentcharges in California will be the sec-ond lowest allowed in the nation. Reg-istrations also will be processed muchfaster. Consumers will wait only amonth for their license plates, insteadof as long as six months under the cur-rent system.

Consumers also will benefit fromthe new warning sticker requirements.California is the first state in the na-tion to adopt that mandate. All new-and used-car dealers must post a redsticker on any used car flagged in afederal database as junked, salvagedor flood-damaged.

“Consumer advocates have longsought the protections offered in thisbill,” said Rosemary Shahan, presi-dent of Consumers for Auto Reliabil-ity and Safety. “For the first time, auto

CA Dealers Now Required to Sticker Salvaged Vehicles

See Salvage Titles, Page 10


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dealers will be required to providevital information about a vehicle’ssafety, reliability and worth beforeconsumers even start negotiating.”

The California Department ofConsumer Affairs has found that morethan 700,000 structurally damagedand 150,000 salvaged vehicles are re-turned to streets and highways everyyear without a safety inspection, andpose a potential hazard to all of thestate’s motorists

The State of California “brands”its titles. These brands indicate the ve-hicle’s past history:● Salvaged: Vehicles marked with a“salvaged” brand were involved in anaccident or incurred considerable dam-age from another source, such as a flood

or vandalism. This brand includes pre-viously dismantled (junked) vehicles.● Original Taxi or Prior Taxi: Vehiclesformerly used “For Hire” which usu-ally have high mileage.● Original Police or Prior Police: Ve-hicles formerly used by law enforce-ment and which usually have highmileage.● Non-USA: Vehicles manufacturedfor use and sale outside the UnitedStates which have been converted tomeet Federal and California safetyand emissions standards.● Warranty Return or Lemon LawBuyback:Vehicles which have beenreturned to the manufacturer underCalifornia’s Lemon Law.● Remanufactured; Vehicles con-structed by a licensed remanufacturerand consisting of used or recondi-tioned parts. These vehicles may besold under a distinctive trade name.


Continued from Page 9

Salvage Titles

DuPont Custom Finishes to Exhibit at SEMA 2011DuPont Custom Finishes will partici-pate at the annual Specialty Equip-ment Market Association (SEMA)tradeshow in Las Vegas, NV.

The show will be held at the LasVegas Convention Center, Nov. 1 - 4.DuPont Custom Finishes, exhibitingin booth #22789 in Hot Rod Alley,Central Hall, will feature DuPont™Cromax® Pro, ChromaPremier® andHot Hues™ custom paint products.Industry airbrush and pinstripe artistswill be showcasing their skills withlive demonstrations in the booth usingDuPont™ Cromax® Pro waterborneproducts.

Vehicles on display in the boothwill include a 2012 DuPont Calendarwinning ’61 Chevy Impala, owned byTim Brown of Jacksonville, FL; a ’71Challenger owned by Bob and KaronZeitler and painted by John Riehn ofJohn's Autobody and Paint. Imperial,MO; and a ‘50 Fleetline built by TimStrange, owner of Strange MotionRod & Custom Construction and hostof PowerBlock TV series Search&Re-store. Strange will make appearancesto sign autographs in the booth 10a.m.to 12p.m. on Wednesday, Nov. 2 and1p.m. to 3p.m. on Thursday, Nov. 3.

The SEMA Show takes place at

the Las Vegas Convention Center.In addition, the SEMA Show

provides attendees with educationalseminars, product demonstrations,special events, networking opportuni-ties and more. The SEMA Show is atrade-only event. For additional de-tails about the show, or to register toattend, visit: www.semashow.com.

More information about DuPontCromax® Pro Waterborne, Hot Huescustom finishes or ChromaPremier®

paint products is available by visitingwww.pc.dupont.com or by calling 1-800-GET-DUPONT.

DuPont has been bringing world-class science and engineering to theglobal marketplace in the form of in-novative products, materials, andservices since 1802. The company be-lieves that by collaborating with cus-tomers, governments, NGO’s andthought leaders we can help find so-lutions to such global challenges asproviding enough healthy food forpeople everywhere, decreasing de-pendence on fossil fuels, and protect-ing life and the environment.

For additional information aboutDuPont and its commitment to inclu-sive innovation, please visit:http://www.dupont.com.

Kristen Felder Nominated for Car Care Council“Aftermarket Woman of the Year” AwardCollision Hub Founder and CEO,Kristen Felder was recently nomi-nated for this year’s Car Care CouncilWomen’s Board “Aftermarket Womanof the Year,” an award that honorswomen in the aftermarket for theirdedication and service to the industry.

The winner will be announced atthe 14th Annual Car Care Council

Women's BoardReception on No-vember 1; 5 p.m. -6:30 p.m. at theSands Expo Cen-ter in Las Vegas,Nevada during theannual SpecialtyEquipment Market

Association (SEMA) tradeshow.“Our Women’s Board ‘Aftermar-

ket Women of the Year’ awards are away for us to applaud exceptionalwomen in the aftermarket for theirdedicated service, as well as to recog-nize women who are going above andbeyond to make a difference in the in-dustry,” said AAA’s Ruth Ehlinger,

president of the Car Care CouncilWomen’s Board.

“I have always been passionateabout education and supporting womenin the industry as a Women’s IndustryNetwork board member, an AkzoNobel Most Influential Woman and thefounder of Collision Hub,” said Felderupon receiving the nomination.

“Collision Hub was created as asafe space for all parties in the automo-tive industry to come together and col-laborate towards transformation andpositive change.” For moreinformation about the Car Care Coun-cil Women’s Board, visit women.car-care.org or e-mail [email protected].

For more information aboutCollision Hub, visit www.collision-hub.com or contact Elizabeth Black-man at [email protected].

Kristen Felder

www.autobodynews.comC

www.autobodynews.com at www.autobodynews.com

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by Ed Attanasio

It’s a looming specter in the collisionrepair industry’s immediate future withpotentially serious repercussions.We’re talking about Collision RepairStandards, and they will have more in-fluence over the auto repair and claimsindustry than any single factor in its il-

lustrious history, according to DaleDelmege, an industry spokespersonwith more than three decades of colli-sion experience. Delmege spoke onSeptember 20th to the membership ofthe East Bay Chapter of California Au-tobody Association at Scott’s SeafoodRestaurant in Walnut Creek, Calif.

“We are at a critical crossroadsand some of the most powerful forcesin our industry either don’t know it orare picking the wrong route with colli-sion repair standards,” Delmege said.“One way or another, the standardsissue will affect every player in this in-dustry, either adversely or positively.”

Devising collision repair stan-dards has been a long ongoing con-versation without any results or otheraction for several reasons, Delmegesaid. “It’s a complex situation, be-

cause it involves the body shops, thetechs, the OEMs, the insurers and theend users. It’s a tug-of-war with eco-nomic and psychological factors

thrown in. On any given day, the in-surance companies, OEMs and bodyshops are pulling mightily in differentdirections, but repair standards wouldalleviate a lot of this tension.”

Delmege cited the standards sce-nario that took place two years ago inthe U.K., where all of the parties in-volved provided input to establish theirrepair standards. “The shops, OEMs andinsurance companies in the U.K.worked together in a voluntary industrystudy that led to what’s now calledPAS125. The government said theywere going do it if the industry wouldn’tdo it on their own, so they were moti-vated to act. Now, it’s an easier industryto make a living in, because they createdan unmovable anchor and set some stan-dards. Now the mysteries concerningbody repairs are gone and there’s lessfighting among the parties involved.”

If we don’t do the same in thiscountry, the government will take thereins and no one is likely to be satisfiedwith that idea, Delmege explained. “Ifwe can’t co-exist in this business envi-ronment and do it ourselves, we couldencounter a national regulatory frenzy.We’ve seen it done too many times be-fore in other industries.” There is awindow of time currently available, butif we don’t act quickly, it’s likely we’llsee a ton of class action suits and theuncertainty will further aggravate thealready bumpy relationship betweenthe body shops, OEMs, insurers andpolicyholders.”

‘Collision repair standards are wayoverdue’ was the takeaway messageDelmege left the CAA Chapter audi-ence with. “Other industries have spe-cific standards they use every day, suchas in machining, for example. If you’rea machine shop, each part you make isaccompanied with a step-by-step set ofspecifications, describing the methodsin careful detail, so that the machinistknows how long it should take to makeit and what it will cost. Collision repairdoesn’t have this oversight, and all thatdoes is create confusion.”

“Without defined repair collisionstandards, there are too many ques-tions and not enough answers,”Delmege said. “People buy insuranceto feel safe and responsible and whenthey get in an accident, they logicallyexpect that their vehicles are returnedto pre-accident condition. How manycars drive away from a body shopwith at least one deviation from an al-legedly safe and compliant repair?

There aren’t definitive answers, be-cause we have no standards.”

Reporting as an observer, Delmegehas visited more than 400 body shops inNorth America since 1989. Following acareer which included various roles insales and marketing at Black andDecker, and VP Marketing for Ingersoll-Rand Automotive Tools from 1989 to

1994, Delmege served as Senior VicePresident Sales, Marketing and R&D,and subsequently Executive Vice Presi-dent Operations, at Mitchell Interna-tional, the auto claims repairinformation provider. Prior to its sale hewas also a principal inAutocheX, whichmeasures customer satisfaction follow-ing a collision repair.

In 1994, Dale Delmege foundedthe Chelsea Group to assist auto claimsbusinesses. Since then his company hasserved the collision repair and autoclaims industry in a wide range of ca-pacities. Delmege is also a founder, pastdirector and Chairman of the CollisionIndustry Electronic Commerce Associ-ation (CIECA), and a founder and pastdirector of the National Auto BodyCouncil. He is a Lifetime Member ofthe Society of Collision Repair Spe-cialists, one of two such honors everconferred on a non-shop owner. Mr.Delmege produced and facilitated thewidely acclaimed VeriFacts InvitationalSymposiums in 2009, 2010 and 2011,featuring claims industry CEO’s andAuto Claims VP’s of Allstate, Progres-sive, Esurance, State Farm and USAA.

Collision Repair Standards on their Way, Industry Veteran Alerts


SEMABooth#11062

Featured speaker Dale Delmege (left) andRon Arth, Manager of George V. Arth & Sonin Oakland visit at the September meetingof the East Bay CAA chapter

Jim Boyle, owner of Regal Collision Repair inVallejo and Peter Locke, collision tech programcoordinator at Contra Costa College catch upat the East Bay CAA chapter meeting inSeptember

At the conclusion of the meeting, MichaelGovette, branch manager for Finish Masterin Concord (at center) distributed the modeltrucks for their 14th Annual Toy TruckCompetition, to Bill Andrews, auto body andpaint technology instructor at College ofAlameda (at left) and Dan Welsh, co-ownerof Crocketts Premier Auto Body in Pinole (atright). The event will be held on November15th at the Blackhawk Auto Museum inDanville, Calif.


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These days going to the movie theatercan be very expensive. Theater own-ers have come to realize that formerpatrons now get their films onlinefrom services like Netflix. To com-pensate for the loss of these cus-tomers, they have begun to add luxuryamenities like select seating and per-sonalized service in the auditorium.And of course the price of a ticket hasskyrocketed, in my area to around$14.00 for a ticket.

Sadly, in this economy, lower-in-come car owners have also migratedto cheaper paint and body providers.Shops like “One Day Paint and Body”are getting much of the business thatquality shops used to get to keep theirtechnicians busy and keep paint pur-chase volume up.

It may be time for shop owners totake a hint from theater owners andmore thoroughly focus on higher in-come prospective customers. Manyshops already do aim their marketingat higher end European vehicles likeBMWs and Mercedes, but the rangeof vehicle choices has also increasedgreatly. The Korean automakers havebegun to claim a larger share of themarket. Like theater owners, a shopowner has to ask, “What specialamenities will get all better qualitycar-buyers to choose my shop overany other?”

Many shops have already fo-cused on pampering their customers.They go beyond proving a rental carto taking the rental car to the customerand having a lock box for keys so thecustomer can drop off the rental car atthe shop after hours. A shop may also

choose to cover the difference in costfor a luxury rental vehicle. A luxurylounge with big TV, WIFI, computergames for kids and up-scale refresh-ments are already commonplace.Many shops offer a car wash and inte-rior clean. For higher end customers,shops may even include exterior andinterior detail. But who pays for all ofthese amenities when insurance com-panies are working to reduce whatthey will pay for?

Like theater owners who raise theprice of tickets, astute shop owners arerealizing the need to offer more self-pay options even for insurance payjobs. Unlike theater owners, they can’task for $5.00 for a box of popcorn ora cold drink. More ingenuity is calledfor. Time is a major concern for manyvehicle owners, so one new specialtycalled “Cosmetic Car Repair” in-cludes an in-house bumper repair kitthat can sometimes enable the shop toturn out a bumper repair in just a fewhours. This eliminates outsourcingcosts and also delivers the rapid repairthe customer wants.

Another aspect of the same sys-tem is a more sophisticated version ofpaintless dent repair. Once again,speed of repair is the special value. Al-though cosmetic car repair is a spe-cific system, other cosmeticimprovements may be desired. Manyshops have a contract with a vehiclegraphics provider who will do pinstriping, clear car bras and more.

Another dimension of the luxurytheater game is a focus on providingselect films specifically chosen for anaudience with those preferences. Invi-

tation-only showings have alreadybegun. If a shop has managed to cap-ture sufficient information about cus-tomers, it may be in a position to doinvitation-only showings. For exam-ple, as baby-boomers age, there aremore handicapped drivers. A showingof power lifts, power running boardsand special driver’s seat modificationscould bring in previous customerswho were, or have become, handi-capped. Prior customers whose chil-dren are reaching driving age mayrespond to an invitation to see black-box driving controls and speed gover-nor systems.

Parents of younger children aremore concerned with child car seats.These must be placed properly to pro-vide maximum protection. Manufac-turers of products like these may bewilling to send a representative to theshop to do an invitation-only demon-stration for customers with small chil-

dren. More than a million pets arekilled every year in vehicle accidents.Pet restraints and other controls arenot only another add-on a shop canoffer pet owner customers, but if ashop has collected customer informa-tion about pets, an invitation-onlypresentation of pet control products ispossible.

As a shop gets more involved inproviding a few luxury accessories,significant opportunities open up to gobeyond repairs and become an infor-mation provider. Like the child carmanufacturers or distributors, theseaccessory providers have a wealth ofrepresentatives eager to go out to gen-erate business for their companies. Allyou, as the shop owner, have to do issend out the invitations and providethe space and perhaps a few refresh-ments. In a sense, you become thenew theater owner in a business oncelimited to collision repair.


SEMA Booth#11115

Choosing a More Profitable Market

On Creative Marketingwith Thomas Franklin

Tom Franklin has been a sales and marketing consultant for fifty years. He has writtennumerous books and provides marketing solutions and services for many businesses.He can be reached at (323) 871-6862 or at [email protected] Tom’s columns at www.autobodynews.com under Columnists > Franklin

Sierra Vista’s first red light photo en-forcement camera is clicking away.Redflex systems will be installing atleast four more cameras at city inter-sections, according to Claims Jour-nal. The cameras will catch driverswho run red lights, even if they areturning left or right. The cameras willalso take pictures of drivers who gomore than 10 miles per hour over thespeed limit.

KVOA-TV reported that driverswho are caught in the first 30 dayswill only get a warning in the mail.

City officials say Sierra Vista isnot out to make money. All themoney goes to Cochise County Jus-tice Courts.

Redflex will make $45 on eachof the first 150 paid tickets, and $35after that. Redflex only makes moneyif the offender pays the citation.

The city can cancel the contractif accidents do not improve by 25percent in the first year.

Sierra Vista, AZ Gets Red Light Cameras




by Ed Attanasio

Golf is a difficult game, but running abody shop is even harder. So, logicallyyou would think that playing golfwould be an easy task for peopleworking in the collision industry. Ev-idently, it’s not the case.

Golf balls were raining down likesunshine on a beautiful day when theSanta Clara Chapter of the CaliforniaAutobody Association hosted its 18thAnnual Golf Tournament at theCinnabar Hills Golf Club in San Jose,California in late August. The only

problem was—most of the balls werelanding in the bushes, on golf pathsand in surrounding trees.

With 75 golfers primed to attackthis beautiful course overlooking Coy-ote Canyon, body shop personnel,vendors, industry icons and friendswere quickly humbled by the course’sundulating greens, tight fairways andbottomless bunkers. Cinnabar Hills isan award-winning course consistingof 27 holes, but 18 were more thanenough for the participants, accordingto Rob Snow, SCC CAA member andformer officer.

“It’s not about the golf, fortu-nately,” said Snow, who owns Mon-terey Collision in San Jose. “It’s abouthanging out with people you respectand work with. Getting a nice crowdfor this tournament is a big deal andmaybe it tells us that we’re comingout of this recession and looking forbetter days.”

Tobias Padilla from Hertz wasthe main force behind the event. “Itwas a strong turnout and everyone hada great time,” Padilla said. “We allwork very hard in this industry, so

when we get a whole day to enjoy asport like golf, it’s a much-neededbreak. The people at Cinnabar were

great and I want to thankeveryone who volunteeredtheir time to make it a big suc-cess.”

The biggest Tiger Woods-like moment of the day tookplace when Young Ko, theowner of KS California AutoBody in San Jose nailed theclosest to the pin, when hisball landed less than a footfrom the 17th hole. The mod-est gallery (three squirrels anda pigeon) gasped at the majes-

tic shot and Ko is undoubtedly stilltalking about it.

Ko’s name also appeared in thevictorious foursome thatcaptured the tournament,with Vince Rojas fromAnnex Color & Supply,associate Jeff Parkerand Joe Bugisle fromBASF. With a good shareof birdies sprinkled inwith a passel of pars, thisfoursome took the titleand walked away withthe coveted title.


Santa Clara CAA Hosts 18th Annual Golf Tournament

From left, Ron Vincenzi from Oakland AutoBody, Randy Greenblat, Auto Collision Center,and Joe Culbertson, Nor Cal Vada Equipmenttell tall golf stories at the SCC-CAA’s annualgolf tournament at Cinnabar Hills

From left, Ron Neilson, Active Auto Body; Shawn Saidi,Active Auto Body (SCC-CAA Chapter President); ChadIken, Enterprise Rent-a-Car (SCC-CAA Chapter Secretary);Alex Ornelas, Toyota of Palo Alto and Steve Sturken,Sturken Auto Body unwind after a big day of golf

From left, Martin Auto Color featured an amazing foursome,consisting of Monte Merritt, Julio Castillo, Don Dutra, (Golf Co-Chair) and Dave Pillado



CARSTAR held their annual NationalConference for 2011 in Seattle, WA,from September 24 through 27. Theconference drew in around 400 indus-try members and franchisees. Duringa teleconference leaders of the multi-ple shop operator (MSO) offered in-sights into their future plans forgrowth over the next few years.

CARSTAR’s CEO, David Byers,who was added to the team as of thisyear, started the conference by high-lighting where CARSTAR ispresently. Byers said the MSO is ontrack to reach total sales of at least$600 million, and that according to in-dustry averages for independentshops, individual CARSTAR fran-chises make about twice as much peryear.

Byers also talked about how theMSO has been able to continue togrow thanks to continued industryconsolidation since the company’s in-ception in 1989 and an increasingtrend of insurers moving towardsusing MSOs.

At the Conference Ryan Kellerwas named the new head of Business

Development, and he is expected tohelp the MSO open 40 to 50 newstores in the next year. This is 2 to 3times more growth than the MSO hasbeen able to produce over the last few

years. This dramatic increase ingrowth is expected because of a re-newed focus on acquiring new storesand adding a lot of new staff, accord-ing to Byers.

Dan Young, Senior Vice Presi-dent of Insurance Relations mentionedthat part of CARSTAR’s success canbe attributed to the way their franchisesare set up. Although each store is a

CARSTAR franchise, there remainsone owner at each location and this en-ables the franchises to self-manage andhave a single point of contact for in-surers and customers per franchise.

Stacy Bartnik, Vice President ofField Services also talked about theMSO’s continued efforts to grow ex-isting stores as well. She mentionedtraining existing shops on leanprocesses so they can improve cycleand touch times.

Gerald Wicklund, Owner ofWicklund’s CARSTAR was also on theteleconference. His franchise was thefirst franchise of CARSTAR and he isthe second generation owner. Hetalked about the Conference’s focuson educating their franchises about ef-fective marketing and website and so-cial media management.

Wicklund also mentioned that themilitary appreciation efforts his fran-chise makes have been very effectivemarketing tools for his business.

“25 to 30 percent of my cus-tomers that come in the door havedone their own research before I writethe estimate,” said Wicklund.

Wicklund’s CARSTAR was alsohonored with the Outstanding CSIAward at the conference this year.For more information please visitwww.carstar.com.

CARSTAR 2011 Holds National Teleconference At Annual Seattle National Conference

left to right: Stacy Bartnik, VP, Field Services; Bill Garoutte, AVP, Marketing; Ermie Lakey, VP,Purchasing; Ryan Keller, VP, Franchise Development; Dan Young, VP, Insurance Relations; BradRein, Director of IT; Bing Wong, CARSTAR Canada; Michael Macaluso, CARSTAR Canada

Southern Polyurethanes Inc (SPI),manufacturer of clear coats, primersand other products for 17 years, hascontinued to expand its' distributionnetwork with the addition of Houseof Klear as the exclusive distributorof the full SPI product line for South-ern California.

Last year SPI achieved a 35%annual growth in sales over the pre-vious year due in part to the additionof new distributors.

House of Klear, a division ofYoung International, is focused onbringing superior refinish materials tothe Southern California market.

"After a successful 1 year prod-uct evaluation with key shops, we arevery excited to be offering such aquality product line to our currentcustomers and of course those shopswe have yet to meet. I believe we areproviding shops the opportunity toimprove the quality of their refinishwork at the same reduce their materi-als costs" said JohnYoung, House ofKlear managing director.

"Our customers have confirmedthat the SPI products are truly amongthe industries best and one of the bestkept secrets in the business. House ofKlear is experiencing tremendoussales growth and the customer base is

growing rapidly. I think times arevery tough for many shops and find-ing products that improve quality andreduce costs is a good formula. Weinvite quality production shops,restoration shops and individualpainters to try SPI and see the differ-ence," continued Young.

SPI product include Universal,Euro and Production Clear Coats, 2KRegular Build, High-Build and TurboHigh-Build Primers, 2K Sealer,Epoxy Primer, Plastic Adhesion Pro-moter, Waterborne Wax & Grease Re-mover, Polar Accelerator, LiquidFlattening Agent and Urethane Re-ducers.

Please visit www.Southern-Polyurethanes.com for more infor-mation.

Southern Polyurethanes Inc. Retains House ofKlear for Southern California Distribution

e-mail:[email protected]

800-699-8251

To advertisecall Sean Hartman at:




State and regional associations—thattogether represent more than 2,000body shops—participated in the sixthannual “Affiliate Leadership Confer-ence” organized by the Society ofCollision Repair Specialists (SCRS)and held near Chicago in mid-Sep-tember.

SCRS Chairman Aaron Clarksaid the event is designed to helpthe national association gatherinput from its state affiliates on itsdirection and efforts, as well as tohelp those groups work with oneanother and with the national or-ganization.

The affiliate groups reported ontheir recent and upcoming legislativeefforts, their interactions with shopand insurer regulators, and other ac-tivities and issues in which they haverecently been involved.

In Montana this past spring, forexample, Governor Brian Schweitzer

signed into law a bill, sponsored bythe Montana Collision Repair Spe-cialists, that prohibits a insurer from“unilaterally disregard(ing) a repairoperation or cost identified by an esti-mating system” that the insurer andshop have agreed to use to determinethe cost of repair.

Bruce Halcro, a Montana shopowner and president of the associa-

tion, said gettingthe state autodealers’ associa-tion involved inbacking the legis-lation was part ofwhat helped pushit through the leg-islature, where it

narrowly failed just two years earlier.The Montana association this

year had also backed a bill that wouldhave allowed body shops and others– rather than only consumers—to file

complaints with the state insurancecommissioner’s office. That bill wasoverwhelmingly approved 97-3 bythe Montana House, but died in aSenate committee.

Jordan Hendler, executive di-rector of the Washington MetropolitanAuto Body Association (WMABA),said that this was the second year theassociation battled efforts in Virginiato raise the threshold of damage re-quiring a flood-damaged vehicle to re-ceive a branded title from $1,000 to$5,000. Proponents—including a state

legislator whosevehicle was to-taled after the sun-roof of his vehiclewas left open in ara ins to rm—ar-gued that thethreshold had beenset decades ago,

and was unrealistic given inflation and

the increased value of vehicles.Hendler said her group tried to pointout that today’s vehicles have far moreelectronics than cars had decades ago,and that no consumer should unknow-ingly buy a vehicle that has had thou-sands of dollars in water damage. Inthe end, she said, the threshold wasraised to $2,500.

Hendler said the association isalso working with the Virginia De-partment of Environmental Qualityon a possible shop registration pro-gram that could prohibit the large-quantity sale of automotive paint toanyone other than registered shops.

A sales tax issue has recentlyarisen in Indiana, according to TonyPasswater, executive director of theIndiana Auto Body Association. Ashop in that state contacted the asso-ciation after a sales tax audit resultedin a $13,000 assessment plus penal-


Bruce Halcro

Jordan Hendler

SCRS Affiliate Groups Help Members Address Legislative and Regulatory Issues

See SCRS, Page 22

Industry Insightwith John Yoswick

John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in thefamily and has been writing about the automotive industry since 1988. He is the editor of theweekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com).Contact him by email at [email protected].



ties for failure to collect and remitsales tax on items such as sandpaperand tape consumed in the repair of ve-hicles. Passwater said the auditor re-lied on a document that refers only todealers of new cars and trailers.

“There’s no possible way youwould infer it had anything to do witha collision repair facility,” Passwatersaid. “The very last section says adealer must pay sales tax on shop ragsand towels and consumables that arenot billed to the customer.”

He said he is discussing the mat-ter with the state revenue departmentin a effort to clarify and resolve theissue.

Ron Stamm of the AutomotiveService Council of Kentucky said hisgroup expects to make a third attemptnext year to push for consumer noti-fication legislation in that state. Theassociation-backed bill, which hasnarrowly missed making it throughthe legislative process this year andlast, would require insurers to includenotification of a consumer’s right to

select a repair shop on the bottom ofprinted estimates, and to tell the con-sumer of that right prior to explainingany direct repair program.

The Texas Senate this pastMarch approved a bill to establish anadvisory board of shop, insurer, and

public representa-tives to providerecommendationson the regulationof auto insurancein that state, Buttthe bill nevergained traction inthe Texas House,

according to James Brown of theHouston Auto Body Association.

Likewise the Senate passed (butthe House did not) a bill that wouldhave required insurance companies toprovide written notice to both shopsand consumers explaining how theirpayment policies and claims proce-dures differ between direct repair fa-cilities and non-direct repair facilities.The bill also would have required in-surers to provide to shops, upon re-quest, a written explanation of therequirements to become a DRP facil-ity with that insurer. It also would

have made county mutual insurers—which account for about 45 percent ofthe Texas market—subject to stateanti-steering and consumer choicelaws (from which they remain ex-empt).

More recently and even closer tohome for the Houston association,Brown said his group is opposing (inits current form) new shop and autorecycler licensing requirements beingconsidered by the Houston CityCouncil. The proposal sets out newdisclosure and documentation re-quirements, and establishes an 11-member “automotive board”appointed by the mayor (and not nec-essarily including a collision repairshop representative). While the pro-posal includes no minimum require-ments for equipment or training, ithas detailed rules regarding fencingaround the business property, andmakes it unlawful for “grass or vege-tation to grow to a height of morethan nine inches above the ground.”

Brown said there is a lot to likein the 28-page proposal, and he ap-plauds the council’s effort to dealwith the businesses—including shopsconnected with towing storage lots—

that “hold vehicles hostage” andcharge exorbitant fees to release a ve-hicle that a consumer wishes to moveto another repair facility.

But, he said, some of the man-dates—such as requiring customersignature on any supplement over$100, and storing (at customer re-quest) old part sfor up to three days toreturn to the customer—are just toocumbersome. His group is also con-cerned that the proposal essentiallygives insurers, as the “authorizedagent” of the consumer, the samerights as the owner of the vehicle.

In an unrelated effort, Brownsaid the Houston association recentlyhad a shop labor rate survey con-ducted by an independent third-party.Shops are being urged to notify stateinsurance regulators if an insurer isunwilling to pay the shop’s postedlabor rate by taking a photo of theposted rate and emailing it along withthe estimate at the lower rate (withcustomer and claim information omit-ted) to the Texas Department of In-surance.

“Right now they’re just collect-ing those and we’re laying thegroundwork,” Brown said.

James Brown


SCRS

Dennis Grau has been appointed tothe California/Nevada/Arizona Auto-motive Wholesalers Association’s(CAWA) Manufacturers’ AdvisoryCouncil (MAC), representing ExideTechnologies. His office is inPhoenix, Arizona.

He was appointed by Chair ofthe Board, Mary Davis, NGK SparkPlugs of Sacramento, California.

“We are pleased to welcome Mr.Grau into the leadership of CAWAand look forward to his participationand contributions to the Associationand the industry we represent outwest”, said Davis following the ap-

pointment. Davis went on to say that“we are pleased that he has steppedforward in volunteer service to theAssociation”.

CAWA is an automotive after-market trade association, which rep-resents auto parts jobbers, warehousedistributors, retailers, manufacturersand manufacturer representatives inCalifornia, Nevada and Arizona.

The Association provides educa-tion, legislative, regulatory and busi-ness support to the industry and itsmembership. It is one of the largesttrade associations of its kind in theUnited States and recognized as a

leader in the automotive aftermarketindustry.

For more information pleasevisit www.cawa.org.

In addition to discussing ways toaddress issues that many of the stategroups are facing, the affiliates alsodiscussed some of the issues SCRS ispursuing, including a survey to in-surers about their policies on partsusage, and interaction with the Envi-ronmental Protection Agency regard-ing interpretation and enforcement ofits new refinishing regulation.

John Yoswick, a freelance writerbased in Portland, Oregon, whohas been writing about the auto-motive industry since 1988, is alsothe editor of the weekly CRASHNetwork (for a free 4-week trialsubscription, visit www.CrashNet-work.com). He can be contacted byemail at [email protected].


California Law Protects ClaimsFrom Disabled InsuredsA new California law helps levelthe playing field for consumersfighting disability claim denialswith insurance companies. Signedby Gov. Jerry Brown Oct. 3, thenew law voids discretionaryclauses in disability, health andlife insurance that give insurerssole discretion to interpret thepolicies and decide if policyhold-ers are entitled to benefits. The useof discretionary clauses has be-come particularly troublesome fordisability insurance policyholders.

“Discretionary clauses havebeen increasingly relied upon byinsurers to reject legitimate claimsfor disability insurance when aconsumer becomes disabled,” In-surance Commissioner Dave Jonessaid. “Insurers know that manyconsumers will give up their claimand that those who challenge theclaim denial face a very high legalburden to overcome the denialsince the discretionary clause vestssole discretion in the insurer to de-cide if the consumer is disabled.”Jones said the new law gives con-sumers an even chance to provethey are entitled to disability andother insurance benefits. The law,authored by Senate InsuranceCommittee Chair Ron Calderon,D-Montebello, and sponsored byJones, goes into effect Jan. 1,2012.

Dennis Grau of Exide Technologies Appointed to CA/NV/AZ AutomotiveWholesalers Association (CAWA) Manufacturers’ Advisory Council

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Car rental firm Hertz Global Holdingsstill wants to buy Dollar Thrifty Auto-motive Group, despite missing a dead-line to make a final offer, and is chasingantitrust approval for a takeover of itssmaller rival, according to Reuters.

On October 11, Dollar Thriftysaid it failed by end-October 10 toflush out any final takeover bids thatmet antitrust concerns, and planned togo ahead as a stand-alone company.

However, Dollar Thrifty, whichhas been at the center of an 18-monthtug-of-war between Hertz and rivalAvis Budget, said it would considerany changes to Hertz’s offer or anyother offer that might be made.

“We remain interested in acquir-ing Dollar Thrifty. We remain focusedon receiving an FTC consent decree,”Hertz spokesman Richard Broometold Reuters, referring to the FederalTrade Commission. “That’s the firststep in the process.”

Dollar Thrifty is seen as the lastbig prize in an industry that has con-solidated in recent years, but itstakeover has been uncertain as thiswould leave three players dominatingmore than 90 percent of a U.S. carrental market worth close to $21 bil-lion in 2010. The market leader is pri-vately-held Enterprise.

One of Dollar Thrifty’s biggestshareholders said it was highly likelyHertz would win antitrust approvaland would push to get a deal throughearly. The shareholder asked not to beidentified due to the sensitivity of theissue.

He noted that Avis, whichdropped out of the bidding last monthciting volatile debt markets and its re-cent $1 billion acquisition of its Euro-pean arm, has the potential to return tothe bidding fray in a few months whenit has paid down its debt.

Dollar Thrifty had come up withOctober 10’s deadline as it sought tospeed up the bidding race betweenHertz and Avis, but the ultimatum lostits edge once Avis withdrew, he said.

In August, Dollar Thrifty CEOScott Thompson said the long-pend-ing deal had kept the company frommoving forward on growth initia-tives and, last month, he wrote toboth Avis and Hertz asking for their

final written proposals by October10.

Dollar Thrifty decided that contin-uing the sale process—with uncertaintystill over regulatory approval—wouldbe costly and time-consuming, said aperson close to the situation, who wasnot authorized to speak to the media.

Hertz has a tender offer open toDollar Thrifty shareholders that val-ues the company at around $1.92 bil-lion.

Thompson said his counterpartat Hertz called him on October 7 toreaffirm the company’s commit-ment to pursuing a deal. “... thefact remains that they have notmade a proposal that addresses our

board’s requirements,” Thompsonsaid.

Hertz was always seen as morelikely to win regulatory clearance as itserves the high-end market, and is al-ready in the process of selling its low-cost Advantage brand.

But Hertz will have to raise its$66.21 per share offer to somewherein the region of $75 a share, the Dol-lar Thrifty shareholder said.

Tulsa, Oklahoma-based DollarThrifty reiterated its third-quarter out-look, and said it would soon start a$400 million share buyback program,buying back around $100 millionworth of shares per quarter over thenext four quarters.

Dollar Thrifty Halts Sale Process, Hertz Still Interested in Acquisition


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The San Diego chapter of the Califor-niaAutobodyAssociation (CAA) willhold their 7th annual holiday event onNovember 5 at Tom Ham’s Light-house in San Diego from 7p.m. tomidnight.

This year’s holiday event will behosted by close-up magician andgame master Barryn Vaughn. The costof the event is $45 for members, fam-ily and friends before October 31.After October 31 the cost is $50.

For the cost of the ticket atten-dees get a buffet dinner, (1) 50/50 raf-fle ticket, dancing, and a fun-fillednight of holiday escapades.

Raffle prizes will be drawnthroughout the night, the 50/50 rafflewill be drawn at 10:30p.m.

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With over 100 girls registered andnearly that number in attendance, Col-lision Hub’s second annual GirlScouts: Tools for Success program wasa huge success. For the event, the GirlScouts of Citrus Council in Orlandocame to the NACE show floor for anhour of conversations with leaders inthe industry about the incredible op-

portunities available to young womenin the collision repair.

The girls learned about frameequipment and measurement systemswith Bob Holland of Chief, the his-

tory of DuPont with Petra Schroeder,the chemistry of paint and color withLaura Yerkey of ProSpray, advancedsoftware and new technologies fromCCC’s Susanna Gotsch, scholarshipopportunities with the Women’s In-dustry Network, and more.

Following the NACE Tools forSuccess tour, Collision Hub hosted a

Women’s Panel sponsored by LKQand moderated by Eileen Sottile,which featured:● Kristen Felder—Founder andCEO, Collision Hub● Denise Casperson— Manager,ASA Collision Division● Audra Fordin—Owner, GreatBear Auto Repair and Auto BodyShop, Flushing, NY● Stacee L. Royce—LaboratoryManager, Paint Applications andMasking Systems, 3MAutomotive Aftermarket Div.● Petra Schroeder—Brand De-

velopment Manager Standox, DupontPerformance Coatings● Victoria Jankowski—P&C ClaimsConsultant, State Farm and Presidentof WIN

Girls heard from these incrediblewomen about everything from theirpersonal journeys into the industry towords of advice going forward. Colli-sion Hub offers this program as a wayto connect with the leadership pipelinethat is the Girl Scouts and to possiblylight the spark that will one day usherthem into the industry as our futureCEOs, Marketers, Painters, Lobbyists,Technicians, Mechanics, Shop Own-ers, Engineers, Chemists, Industry An-alysts and more.

“In addition to their time on theNACE floor visiting selected companybooths, we were able to introducethese dynamic young women to thework of the Women's Industry Net-work and the National AutobodyCouncil's Recycled Rides Program,”said Kristen Felder, Collision HubFounder and CEO. “We believe thatOctober 8, 2011 was yet another steptowards a wonderful career explo-ration and mentoring program betweenthe Girl Scouts of America and the col-lision repair industry at large.”

Tools for Success was PresentedBy Enterprise Rent-A-Car with the

Women’s Panel Discussion and lunchProvided By LKQ. Other event sponsorsincluded: Chief Automotive Technolo-gies, 3M, PPG, VeriFacts Automotive,AutoBody America, AkzoNobel, FixAuto, DuPont, CARSTAR, Mitchell,Esurance, Pro-SprayAutomotive Refin-ishes, Automotive Service Excellenceand CCC Information Services.

The Girl Scouts is reforming itsmission to incorporate an emphasis onengineering, science, and technologyand are seeking avenues to achievethis goal. As the collision repair indus-try continues to seek ways to recruitnew talent and creative methods forconnecting with costumers, CollisionHub hopes to offer access to a truly un-tapped demographic.

Tools for Success offered aunique opportunity for leaders in ourindustry to speak with a premieregroup of goal-oriented and intelligentyoung women and capture their poten-tial as future leaders and consumers aswell as the support of each scout’s ex-tensive personal network as potentialcustomers and champions of the colli-sion industry.


Girl Scouts Gear Up at NACE for Collision Hub’s Tools for Success

Local Girl Scouts were able to tour the NACE floorand get a taste of the collision repair industry inCollision Hub’s second annual Tools for Successprogram


SHOP & PRODUCTSHOP & PRODUCTSHOWCASESHOWCASE

As the owner of Icon Collision inMemphis, Tennessee, Tim Russellruns a body shop that fixes approxi-mately 210–230 cars every month,does $6 million in business annuallyand oversees six busy divisions—in-cluding two detailing businesses, aPDR department, a glass division, aretail collision branch and a whole-sale body shop. Specializing in high-end luxury vehicles, Icon works withseveral Memphis-area car dealer-ships that don’t have their own colli-sion centers, such as Lexus ofMemphis, Wolfchase Toyota-Scion,Performance Toyota and WolfchaseDodge, Chrysler Jeep. Russellneeds a paint system that will pro-duce top tier paint jobs each andevery time, either waterborne or sol-vent, depending on the job. That’swhy he’s pleased to be using both ofPro-Spray’s paint systems—the Sol-vent Basecoat and the H2O Water-borne Basecoat.

Russell, now 51, worked for six-teen years at a Memphis dealershipgroup running their collision centerand servicing their eight dealerships.When the group was sold to a largecompany, the climate changed rap-idly. Russell wasn’t happy with thenew corporate environment, so hedecided to start his own shop. IconCollision was opened in 2006 andthe business grew at an alarmingrate. The shop did $80,000 in salesthe first month and doubled that thesecond month. Today, the businessgrosses roughly $500,000 everymonth.

When Russell opened the doorsat Icon six years ago, he initiallysigned with another paint company.“In the end, I left them because theircolor matches were not accurateenough. We just weren’t able to hiton a lot of the colors. They broughtin their managers and it got towhere I couldn’t even hit whitepearls for Lexus cars anymore andit got embarrassing. So, we startedlooking around for a better solu-tion.”

Russell sat down with MikeAguirre from Color Connection, whohe had known for quite some timeand who was now representing Pro-Spray. They met with Todd Berry,Pro-Spray’s local distributor and PhilRich, Pro-Spray’s territory salesmanager and went through the ad-vantages and savings associatedwith the Pro-Spray products. As theysay, the proof is in the pudding, soRussell and his crew tested and re-tested the products.

Recalls Russell, “One day, Icouldn’t get a match on a Lexus wewere painting, so I called Mike atColor Connection and said can youmatch this color?” He said, ‘we canbutt match it.’ I told him, ‘get downhere and if you can butt matchthese panels, we’ll talk.’ He gave usthe Pro-Spray paint and without tint-ing or mixing, we hit it right the firsttime. I thought that was pretty in-credible.”

“All of the Pro-Spray peoplecame here to the shop and we talkedto them. I looked at the pricing andrealized it’s about 40 percent lessthan what I was paying with the othercompany. I could also see that theyhadn’t done a price increase in threeyears, while our other paint companywas raising their prices about6–10%, or even more, every year.”

Other benefits became clear themore he looked at Pro-Spray. “I ana-lyzed Pro-Spray’s clear coats, be-cause that is always one of the mainthings I look at. I like high solidclears, and they have 52% high solidclear, with the competition coming inat 48%. It doesn’t look like a big dif-ference, but if I can get a better clearat a lower price, why not? “The majorthings we were concerned aboutwere the color matches and the pro-tection provided by the clear coats.It’s not rocket science. If it’s preppedproperly, it will last. We’re more con-cerned with the color match and theclear.”

Hitting on color matches withPro-Spray also got his attention,Russell explained. “Hey, I‘m not ex-pecting every paint manufacturer to

match every color every time, be-cause it just isn’t going to happen.

There are times you’re going tohave to tint, for various reasons, andthat’s a reality. But, Pro-Spray defi-nitely impressed me and I made adeal with them. We started with Pro-Spray in late 2009 and we’ve beenspraying it ever since.”

Adopting Pro-Spray was a grad-ual yet fairly drama-free process,Russell said. “We started by usingtheir solvent product and about sixmonths ago we added their water-borne line. They brought in their peo-ple and we didn’t have to sendanyone to a school, so it was con-venient. They had five people herefor a full two weeks with the solventand two people here in the shop withone week for the waterborne. Weadded the waterborne because moreand more of these newer models arepainted with waterborne.

Right now he’s painting morecars with solvent, but that maychange, Russell stated. “I have bothsystems in place and I’m letting mypainters decide. They’re picking90% solvent right now, becausethey’re comfortable using it and rightnow it takes them 15-20% longerusing the waterborne. So, I’m goingto have to make a decision soon onwhether to make a full changeoverto waterborne or use both. My guysget paid flat rate and the more carsthey paint means more money intheir pockets. Everyone hateschange, but we like the Pro-SprayH2O waterborne, so once we canget faster at using it, the transitionwill be easier to make.”

Owner Tim Russell values Pro-Spray’s color-matching capabilities, as well as its attractivepricing and the quality of the finished product.

Icon Collision ServicesLocation: Memphis, TN

Telephone: 901-213-3266www.iconcollision.com

Company At A Glance...

Type: Collision Repair

Facility Employees: 23

In Business Since: 2006

DRP Programs: Zero

Number of Locations: One

Combined Production Space:24,000 square feet

Pro-Spray Automotive FinishesPhone: (800) 776-0933email: [email protected]: www.ProSprayFinishes.com

www.ProSprayH2O.com

Tim Russell at Icon Collision knows that no paint company will come up with perfect color matches100% of the time, but Pro-Spray gives him the best matches he’s ever achieved.

Busy Shop Clearly Sees Benefits Working withPro-Spray Solvent & Waterborne

Icon Collision in Memphis, Tennessee, is cur-rently using both solvent and waterborne prod-ucts by Pro-Spray in his busy shop. They’repainting more than 200 cars monthly.

by Ed Attanasio

I mentioned social media to a bodyshop owner recently and, to my sur-prise, he was almost hostile to the con-cept. There seems to be a verylocalized group in the collision indus-try that really understands socialmedia and this guy was not one ofthem.

“Why would I put my shop onFacebook?” he said. “I don’t have alot of customers who are teenagegirls!” I told this gentleman that Face-book and most other forms of socialmedia aren’t being used exclusivelyby teenage girls. Facebook’s 800 mil-lion members aren’t all teenagers, andthey certainly aren’t all girls.

Last month’s NACE meeting fea-tured a keynote speaker, Chris Bro-gan, who’s a social media guruaccustomed to talking to large auto-motive groups like those attendingNACE/CARS, and the GM Dealers ofCanada, for example.

What’s going on here? Whywould some shops and associationsspend valuable time instructing on so-cial media while others can’t run awayfrom it fast enough?

David Moore, the owner of Col-lisionBuilder.com, a company that de-signs web sites and develops socialmedia plans for body shops and re-lated businesses, has seen a recentspike in body shops getting involvedin several forms of social media.

“It’s unavoidable,” Moore ex-plained. “Three or five years ago, hav-ing a company web site was enough,but now your shop’s customers areusing more and more social media. It’snot just for students or people in their20s anymore. Corporate types, seniorcitizens, your employees and yourcompetitors are using it and in manycases, several times daily. To keep intouch with your clients on a regularbasis and attract new ones, more and

more body shops are gravitating to-ward sites like Facebook, Twitter,LinkedIn and even Youtube, with solidresults.”

One of the early adopters of so-cial media in the collision industrywas Wren’s Body Shop in Dou-glasville, Georgia, a company that re-pairs 160 cars monthly, employs 20people and does approximately $3million in annual sales. Owner JamesWren jumped into the social mediagame with both feet several years agoand it’s paid off for him in a big way.

“I know for a fact we’ve receiveda good amount of business throughour involvement in Facebook andLinkedIn,” Wren said. “Sometimes weget several new customers everymonth and the social media keeps usin touch with our past customers.We’re still doing the other forms ofadvertising, but now we’re focusingmore on social media. All it costs us

is our time, so it makes a lot moresense. Facebook has been great for usgetting new business. LinkedIn hasbeen booming for us recently andwe’re definitely interested in usingYoutube to get exposure for a videowe produced.”

Facebook and LinkedIn are idealvehicles for body shops or profes-sional organizations, such as the Cal-ifornia Autobody Association, to keepits members informed and in the loopabout news and events. Rather thangetting an avalanche of e-mails fromyou, people interested in your busi-ness can check in for updates alongthe way. It’s not as disruptive as e-mail because you don’t have to worryabout spam. When your neighbors andpeers see your social media posts, itadds immediate value to your mes-sage, and the interaction among thegroup can rapidly build.


How to Use Five Different Forms of Social Media to Gain Customerswith Ed Attanasio

Social Media for Shops Ed Attanasio is an automotive journalist based inSan Francisco, California. He can be reached [email protected].

See Social Media, Page 30


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The first thing you need to do inorder to start a social media plan, (inmy opinion), is to create a Facebookpage. Then, invite friends to your pageand spread the word. Get your em-ployees, customers and vendors whouse Facebook to invite their friends aswell. This will enable you to contactanywhere from hundreds to thousandsof people just be tapping into youremployees’ friends’ lists. For a directapproach, it’s very easy to find spe-cific people by searching for them onFacebook and sending them a mes-sage through the link that’s under theirprofile picture.

What types of information shouldyou post about your shop? Well, prettymuch anything and everything to cre-ate ongoing online conversationsamong your friends. Did you recentlyrepair a rare or classic vehicle? Didsome of your techs win an award fortheir job performance or recentlycomplete some I-CAR courses? Doesyour painter have an amazing hotwings recipe (forward it to me,

please)? These are the types of thingsthat will keep your circle of friendsengaged and continually checking outyour social media. Make it fun andreadable and people will come backagain and again.

The process with LinkedIn is ba-sically the same, but focusing more onyour professional contacts. With anyform of social media, setting it up is abig step, but administrating and main-taining it is also crucial. Too manyshops start doing it because their com-petitor down the street is doing it, buteventually they let their social mediasit dormant. People think “If I build it,they will come” but that couldn’t befurther from the truth. Ideally, youshould have a person dedicated tokeep the dialog flowing and your so-cial media up-to-date, with at 2-3 newposts monthly.

The advantage of Twitter is thatanyone out there in cyberland can findyour shop. I suggest putting the nameof your city in your Twitter address(like @joesbodyshopsanjose) so thatpeople can find you searching thatway. Hopefully, if you’ve been tweet-ing for sometime already, you alreadyhave a considerable Twitter commu-

nity assembled, but if not you can rap-idly build one by letting all of yourcurrent and former customers, ven-dors and associates about your newTwitter account, by sending notifica-tions to everyone on your e-mail list.

Blogspot.com (others are blog-ger.com, wordpress.com, tumblr.com)is an easy site to use for setting up andmaintaining a blog for your shop.Blogs are stronger than ever beforeand they provide advantages over websites, because they can easily be up-dated on a regular basis. Think of anewsletter concentrating on yourshop. Blog readers will anticipate andexpect fresh information. Give cus-tomers helpful tips; talk about yourpaint, parts and equipment vendors(they appreciate it) and continuallysell your brand. It’s fairly easy to pub-lish a blog and by leveraging it andlinking it to your main web site, you’llget major mileage out of it. To learn alot quickly about blogging, there are aton of books and online tutorials. But,trust me—blogs are easy to create. Ifyou know how to attach a photo or cutand paste text, you’re already there.

Finally, Youtube can help you toattract people to your company. Shoot

some video of the shop, interviewingyour managers or your techs andcounter people. You can even inter-view your vendors and/or customers,but get them to sign releases first. Andthen post the videos on Youtube, link-ing them to your social media, includ-ing your blog and your web site. Onesuggestion is make your videos lessthan two minutes in length, becausestudies show that people have veryshort attention spans and won’t sitthrough anything longer.

A step beyond a blog would be amore dedicated phone app which pro-vides a service but also helps cus-tomers find your shop such as thosecreated by shops like Nigro’s inPhiladelphia. See last month’s Auto-body News or go online to check thisout.

Hopefully we’ve outlined somebasic forms of social media for you touse to promote your business, attractnew customers, strengthen your rela-tionships with your existing customersand make money. All it takes is time,a rudimentary knowledge of softwareand the willingness to induct yourselfinto the new age of customer-focusedadvertising.


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Following Ray Gunder’s charge al-leging altered documents that showState Farm’s manipulation of theirmarket survey of rates and allowances,State Farm has elected to pay thecharged amounts of Gunder’s AutoCenter and avoid further discovery ofits business records. See sidebar.

In seeking discoverable informa-tion pertinent to three separate law-suits by three of Gunder’s customers(of which Gunder was acting on behalfof each customer through power-of-attorney) State Farm’s refusal/failureto provide the requested documenta-tion within the time-frame providedresulted in a court’s order compellingthe nation’s largest personal auto in-surer to comply and present the sub-poenaed records ‘or else.’

As a result, State Farm first madeovertures of a global settlement toavoid further litigation (and discovery)by inviting Gunder’s to mediate themore than 30 pending lawsuits pressedagainst them on behalf of Gunder’scustomers for claims including, but notlimited to Tortious Interference againstState Farm employees includingLarry

Swearengin and Bob Davis as well asBreach of Contract and Bad Faithclaims against State Farm Insurance.

While guarded, Ray Gunderagreed and thus the Contempt of Courthearing scheduled for September 22ndwas postponed and mediation wasscheduled for October 6th, 2011.

On September 27th, Gunder re-ceived notice that State Farm wouldprovide full payment for the amountsoutstanding on the three lawsuitswhich were pending which includedthe issue of Contempt of Court.● Raymond Ellsworth Gunder[Wincey] v. State Farm Florida Insur-ance Company Case No.: 53-2008SC-005094-0000-00, County Court, PolkCounty, FL Initial amount at issue$163.31● Raymond Ellsworth Gunder[Miller] v. State Farm Florida Insur-ance Company Case No.: 53-2008SC-005093-0000-00, County Court, PolkCounty, FL Initial amount at issue$124.48.● Raymond Ellsworth Gunder[Dewey] v. State Farm Florida Insur-


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State Farm Offers to Settle Three of Gunder’s Customers’ Lawsuits

These claims on behalf of customersof Gunder’s Auto Center are part of along legal history between the autocenter and State Farm. In early 2010Gunder filed a claim against StateFarm for Tortious Interference andSlander following disparaging com-ments allegedly made by employeesof the insurer to their customers re-garding the body shop.

“This entire matter hinges onwhether any insurer, including StateFarm, can merely target a repairer andhave the right to say anything they wishwith the intent to harm the repairer anddisparage their good name in an effortto interfere with the relationship be-tween the repairer and their customer;so long as the insurer does not breachthe legal limit referred to as ‘ExpressedMalice’, said Ray Gunder, owner of theshop, in a statement last May.

The suit has gone through the ap-peals process multiple times since theinitial complaint was filed. Most re-cently, in April of 2011, the U.S.Court of Appeals for the Eleventh Cir-cuit upheld a lower court’s ordergranting summary judgment in favorof State Farm in Gunder’s claim of

slander and tortious interference witha business relationship against the na-tion’s largest personal auto insurer.

In June Gunder filed an appeal ofthe decision with the U.S. SupremeCourt.

“After considerable thought,counsel and discussion with familyand close friends, and as a result of re-cent activities on other pending casesagainst State Farm, I decided to pro-ceed with submitting what is referredto as a Petition for Writ of Certiorarito the United States Supreme Courtrequesting their review and opinion ofthe lower court’s ruling,” Gundersaid. “As we continue to ‘pound thatrock,’ I see we are standing on a sub-stantial amount of gravel…and asI’ve said before, we’re all-in andwe’re too close to quit now and willcontinue until we either prevail or ex-haust all opportunities to do so.”

A Bit of History in Gunder’s Case Against State Farm


on FacebookSee State Farm Offers, Page 34

“The Insider” is an auto insurancecompany executive who wishes to re-main anonymous. This column reflectssolely the opinion of The Insider in hisunvarnished view of various issuesimpacting the collision industry.

Can NACE Survive as a ‘traveling re-gional trade show’?Well, it’s that time of year again:lights, slots, dice, scantily-cladwomen, lavish parties, casinos andNACE? Actually, it’s not—NACE isalready over. In case you missed it,NACE (the International AutobodyCongress and Exposition) took placein early October in Orlando, the firsttime it moved from Las Vegas in morethan a half-dozen years.

Yes, I was one of a handful ofpeople that showed up to support theindustry’s longest-standing nationaltrade show. I have missed only four ofthe 29 of these annual extravaganzas,

and I wasn’t about to let a trip to sunnyFlorida deter me from attending.

I have to admit, I was apprehen-sive about spending the money andtime to attend two shows this year. .How this small industry can supporttwo national trade shows (NACE andthe SEMA show in November, whichI will discuss in my next column) isbeyond comprehension. In fact, Iwould say it’s not possible.

Here’s my best guess: We will beback to one national industry tradeshow in the next three years. There’sno way that the large companies buy-ing booth space will continue to throwgood money after bad. Even asidefrom the poor economy, national tradeshows like NACE are a dying breed.Yup, even the mighty dinosaur even-tually went extinct.

The once-almighty NACE isdying a slow death. Before anyonesubmits an obituary, please note that

the show still stands some chance ofsurvival. Although this year’s NACEwasn’t the typical NACE we’ve beenaccustomed to, there was somethingdifferent and positive. Aside from thefact that there weren’t a lot of peoplethere, which made it easier to navigatethe show floor, the smaller eventmeant my feet were intact after a fewdays of walking. Usually, I can hardlywalk after the weekend marathon.

All kidding aside, the positivenews is the reality that NACE couldsurvive and possibly reinvent itself asa traveling regional trade show. Thereis a small percentage of people whohave attended NACE in the past fewyears who walk a trade show floor tofind a special deal or see somethingnew. But the vast majority of the at-tendees attend the show to participatein other related industry events, or tonetwork and reduce future travel ex-penses by meeting with large groups

of people over a short period of time.Because this article is about shar-

ing inside information and helping mydedicated readers gain a broader per-spective, I suppose I should tell yousomething you probably don’t know.NACE transforming into just a largeregional trade show didn’t happenovernight or by accident. It’s been aslow death. In the years leading up toits demise, the industry tried to tell or-ganizers it was time for change. Theyassembled a committee of industry ex-perts that were supposed to help guidethem to “NACE: The Next Genera-tion.” The goal: to actually create atrade show that met the demands oftheir customer and once again gener-ated excitement.

NACE organizers slowlychanged the direction of the show, butby then it was too late. The excitementof NACE was basically reserved forthose looking for a Las Vegas vaca-


Can the Collision Industry Support Two Major Trade Shows?with The Insurance Insider

Inside Insurance The Insider is a corporate-level executive with a Top 10 auto insurerin the U.S.. Got a comment or question you’d like to see him addressin a future column? Email him at [email protected]

ance Company Case No.: 53-20011SC-00895-0000-LK, CountyCourt, Polk County, FL Initial amountat issue $1,461.01.

The payments included consider-ation for the underpaid amounts forpaint & materials (supported by PMCLogic invoicing), low labor allowancesand refusal to provide consideration forrarely questioned simple proceduresfrom R&I of hardware and trim opera-tions to refinish related processes suchas car-cover, color sand and buff, etc.

The initial mediation betweenGunder’s and State Farm took placeon the morning of October 6th andwhile a monetary offer (which wouldno doubt be considered substantial bysome) was presented by State Farm’slegal counsel, it was found by Gunderto be insufficient and thus rejected.

Following the mediation Gunderstated: “While I’m disappointed thatwe couldn’t come to an agreement; asI would very much like to put the is-sues behind us and be compensatedfairly to restore people’s vehicles and

their peace of mind; we are encour-aged to continue on with discoveryand having our day in court. We haveno fewer than 30 similar cases in theprocess of being filed on behalf of ourcustomers; all with same or similar is-sues. State Farm is paying approxi-mately $120,000 in legal fees andcosts for these three cases which theyhave now elected to settle and will nodoubt be paying substantially more inthe coming months and years shouldthings continue as in the past.”

Shortly after mediation, a settle-ment letter came from State Farm. Re-view of the letter from State Farm legalcounsel states in part: “After furtherconsideration, and to discontinue theneed for further litigation, State Farmhas decided to tender the amounts atissue in each of the above-referencedmatters, with interest.” The amountsState Farm will pay are: $163, $124 and$1,461, totalling $1748 and change.

“In summary, with this letter,State Farm has paid the amount as-serted by the insured to be in disputefor the above referenced claim,thereby curing any circumstance re-lating to any alleged improper esti-

tion. Attendance plummeted. The re-ported show attendance became simi-lar to an Enron annual report: Therewas a lot of inflated numbers and nota whole lot to support the fact that thetrade show floor looked like a bocceball court on the weekend. Onewould swear that they were using adog-years multiplier where every oneattendee accounted for seven [orga-nizers said 15% more attended thanlast year].

Although NACE organizersmade a lot of mistakes along the wayand often acted with arrogance, therewere other contributing factors. Thisis kind of like a murder mystery:There are a lot of suspects and clues,but we still aren’t sure of the killer orthe murder weapon.

But I think that the real killer ofNACE was the SEMA show. SEMAis offering something that NACE nolonger does: attendees, attendees andmore attendees. Oh, and somethingelse: attendees. SEMA can be foundin the dictionary under the word “ex-citement.” SEMA will have about 10times the number of attendees asNACE did this year.

As far as the murder weapon, I

think it was a vote at a Collision In-dustry Conference (CIC) meeting inearly 2010. The attendees of this con-ference were asked to vote when andwhere they would like their fall meet-ing to be held: keep it as scheduled inNovember in Las Vegas, or move it afew weeks earlier to when NACE hadbeen rescheduled to be held. Theyvoted for the conference to be held inLas Vegas at the same time as SEMA[by one vote—Ed.]. The rest is historyand we now have two trade shows tosupport.

That’s it for now. See you inVegas, baby.

The Insider is a corporate-levelexecutive with a Top 10 auto insurerin the U.S. Got a comment or questionyou’d like him to address in a futurecolumn? Email him at [email protected].


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Avery Greene HondaVal le jo

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Barber HondaBakersf ie ld

661-396-4235Dept. Hours:M-F 8-5:30

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Clawson HondaFresno

559-435-5000Dept. Hours:

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Galpin HondaMiss ion Hi l ls

800-GO GALPIN818-778-2005

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Honda Cars of CoronaCorona

800-557-3652951-734-9045

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Honda of OaklandOakland

510-547-8047Dept. Hours:

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Honda Redwood CityRedwood Ci ty

650-364-1011Dept. Hours:

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Kolbe HondaReseda

800-735-1424818-609-7441

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Larry Hopkins HondaSunnyvale

408-720-0221408-736-2608

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Metro HondaMontc la i r

800-446-5697909-625-8960

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Nelson HondaEl Monte

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Robertson HondaNorth Hol lywood800-508-3894818-301-3511


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Selma HondaSelma

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General Motors announced the indus-try’s first-ever front center air bag onSeptember 29. The airbag is an inflat-able restraint designed to help protectdrivers and front passengers in far-side impact crashes where the af-fected occupant is on the opposite,non-struck side of the vehicle.

The front center air bag will beintroduced on the Buick Enclave,GMC Acadia, and Chevrolet Traversemidsize crossovers in the 2013 modelyear. This new safety feature will bestandard on Acadia and Traverse withpower seats and all Enclaves.

The front center air bag deploysfrom the right side of the driver’s seatand positions itself between the frontrow seats near the center of the vehi-cle. This tethered, tubular air bag isdesigned to provide restraint duringpassenger-side crashes when thedriver is the only front occupant, andalso acts as an energy absorbing cush-ion between driver and front passen-ger in both driver- and passenger-sidecrashes. The air bag also is expectedto provide benefit in rollovers.

GM analysis of the NationalHighway Traffic Safety Administra-tion’s Fatality Analysis ReportingSystem database, found that far-sideimpact crashes, which the front cen-ter airbag primarily addresses, ac-counted for 11 percent of the beltedfront occupant fatalities in non-

rollover impacts between 2004 and2009 involving 1999 model year ornewer vehicles. These far-side fatali-ties, where the occupant is on the non-struck side of the vehicle, alsorepresent 29 percent of all the belted

front occupant fatalities in side im-pacts.

“The front center air bag is notrequired by federal regulation, andno other air bag in passenger vehi-cles today offers the type of restraintand cushioning this air bag is de-signed to provide for front occu-pants,” said Scott Thomas, seniorstaff engineer in GM’s advanced re-straint systems.

The front center air bag is ex-pected to add to the vehicles’ recordof third-party crash test performance.The 2012 model year editions of thesemidsize crossovers have receivedfive-star Overall and Side Crashsafety ratings from NHTSA’s NewCar Assessment Program, and 2011Top Safety Picks from the InsuranceInstitute for Highway Safety.

“The front center airbag has realpotential to save lives in sidecrashes,” said Adrian Lund, presi-dent of the insurance Institute forHighway Safety. “GM and Takata areto be commended for taking the leadin this important area.”

GM and technology supplierTakata developed the front center airbag over the course of three years,testing many design iterations toachieve packaging, cushioning, andrestraint for a variety of crashes andoccupant positions. Numerous ele-ments of the air bag’s jointly patentedcushion design address the restraint’sunique performance characteristicswhile considering a range of occupantsizes.

“While no restraint technologycan address all body regions or all po-tential injuries, the front center air bagis designed to work with the other airbags and safety belts in the vehiclesto collectively deliver an even morecomprehensive occupant restraintsystem,” said Gay Kent, GM execu-tive director of Vehicle Safety andCrashworthiness. “This technology isa further demonstration of GM’sabove-and-beyond commitment toprovide continuous occupant protec-tion before, during and after a crash.”

More information can be foundat www.gm.com.

GM Introduces Industry-First Front Center Airbag

GM’s industry-first front center airbag willdeploy from the right side of the driver’s seatand protects the driver in side crashes

Curt Manufacturing is recallingabout 2,400 tow package wiring har-nesses because moisture can seepinto the converter module and defeatthe internal circuit protection, ac-cording to reports made by Con-sumer Reports.

This could potentially cause themodule to overheat, leading to a firehazard.

Sold as an aftermarket product(not through Hyundai), the tow pack-age wiring harnesses connect tow ve-hicle lighting circuits to trailerlighting circuits for 2009 through2011 Hyundai Veracruz and KiaSorento vehicles. The affected unitsthat are not water tight, will havepart number 56024.

According to the NationalHighway Traffic Safety Administra-tion, Curt Manufacturing has alsoidentified a similar problem with thetow harnesses designed for 2009 to

2011 model year Hyundai Santa FeSUVs.

NHTSA and Curt have ex-panded the recall to include thesemodels, part number 55538, believedto be installed in approximately2,254 Hyundai Santa Fe vehicles.

The safety recall to notify own-ers begins this month, and the towpackage wiring harness will be re-placed for free.

Veracruz and Sorento ownerswho are uncertain the brand of towgear on their vehicle should check,as it is possible that many consumersdid not register their purchase andtherefore would be difficult for CurtManufacturing to reach.

For more information, con-sumers can call Curt Manufacturingat 715-831-8713, or contact the Na-tional Highway Traffic Safety Ad-ministration at 888-327-4236, orvisit Safercar.gov.

AM Tow Package Wiring Harnesses for Hyundai/Kia RecalledThe National Highway Transporta-tion Safety Administration (NHTSA)has announced a recall for 2011 and2012 model year ChevroletCorvettes, according to reports madeby Consumer Reports.

The sport coupes have rearhatches that can separate during acollision and cause further injuries.

According to NHTSA, the prob-lem stems from faulty hinges, whichmay not be able to bear the weight ofthe sport car’s rear hatch.

These rear hatch hinges, whichfail to meet federal safety standards,may have been installed in about5,755 Chevy Corvettes from Januaryto September of this year.

General Motors is currentlyworking to iden-tify whichCorvettes are in-volved in thislatest recall. Thecompany willcontact ownersaffected by thisrecall to bringtheir cars tolocal dealerships

where mechanics will replace bothrear hatch hinges free of charge.

For more information, con-sumers can contact Chevrolet (800-630-2438) or NHTSA (toll-free:888-327-4236) or visit the Safer Carwebsite: www.SaferCar.gov.

2011-2012 Chevrolet Corvettes Recalled for Rear Hatch Hinges


If there is one thing I find hard to dealwith in this topsy turvy world of theauto repair business is the way somepeople will react when they are at therepair shop. It’s the way they conductthemselves at the shop when it comestime to get their car repaired.

Over the years I’ve beenpraised, and degraded. I’ve beencalled a saint and I’ve been called thedevil (or worse). I’ve heard theshouting and the stuff I probablywasn’t suppose to hear (walls don’talways block sound you know).After awhile you’ve heard it all be-fore, and the attitudes that you see atthe front desk become a part of thedaily grind. Coping with all this iswhat I call; “growing alligator skin”.I try not to take things so personal,I’ll let the alligator skin handle it,and then take off my protective coatbefore I get back home to the wifeand kids.

What gives with the need forsuch a thing as “alligator skin”? I be-lieve there a several factors inherentto the automotive industry that bringson this crocodile coat of protection.

Mistrust of the automotive repairworld in general is what I believe isthe number one factor; but whatbrings on that mistrust? Is it the in-competent mechanic? I doubt that isalways the case. Is it the money outof their pockets which they were notexpecting when they drove down theroad to the repair shop? I believe it’smore in the hands of the unknowingconsumer who reads and watches toomany evening news reports on theunscrupulous business practices ofthe few out there that really are ripoffs and not the normal operations ofcountless decent shops in this coun-try.

If you tie that into the other partof the equation it starts to make some

sense. What is that other part? Thecustomer, their car, and what they door don’t do with their family trans-portation.

As I try to tell my customers;“Maintenance on a new car doesn’tdo much to the value of the car or itscurrent condition. It’s when it’s olderand the miles are creeping up that allthe previous maintenance pays off”.The inevitable degrading condition ofthe car doesn’t happen all at once, ittakes time and miles for that to hap-pen. And, sometimes some old fail-ures will cause new failures to occur.

“General Maintenance” isn’t aguy in the Army reserves, it’s some-thing we all need to do. It is almostalways overlooked, and a lot of timeswe will avoid or put it off, until it’stoo late. That’s when the raisedvoices or mistrust starts at the serv-ice counter and that alligator skin be-comes a necessity again.

Of course, there are alwaysthose TV scammers that will try totell you they have the latest greatestproduct to aide in the diagnosing ofyour vehicle. Let’s not forget aboutthe internet and the “wonderful”sources of information out there thatthe customer will no doubt informyou about when they show up with acomplaint.

I’m sure there are doctors,lawyers, and many other profes-sional trades that know who’s thebest and the worst in their field. Wesometimes hear about those on theevening news, just not as often as thecar repair business seems to be fo-cused on. But cars are needed byeveryone, no matter what the condi-tion. Think about it, you may notneed a lawyer tomorrow morning toget to work, but I’ll bet you’ll needyour car.

Dealing with Angry Customers and Growing ‘Alligator Skin’with Gonzo Weaver

Gonzo’s Toolbox This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com.Gonzo has been serving the Tulsa area at Superior Auto Electric for over 27 years. See his book“Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age.The book is available at amazon.com. Contact Gonzo at [email protected].

See Alligator Skin, Page 40

Educating the customer shouldstart from the time they sign on thedotted line and purchase their vehicle.No recourse is given to educate thenew owner on what needs to be donein the future with their new foundhorsepower. It’s up to the owner todeal with the maintenance issues andany repairs that come up. I personallyhave never bought a car and had thesalesman walk over to me and men-tion, “Now you know, you’ll need toset some money aside for generalmaintenance and the usual breakdowns.” Without the needed “know-how” the car is left to its own demiseand the maintenance is left for an-other day. So, once you add up allthese factors there is only one thingthat is going to happen at the repairshop—a disgruntled owner with anissue about their car.

Now we are back to the originalproblem, how do you deal with all ofthis? Start with a bit of Alligator skin,be prepared for the customer to tellyou their life story about their car.

They’re going to tell you what theythink no matter what you say or do.Let them get it out and keep your al-ligator skin intact. Stay calm, but pro-fessional.

Most of the time, if you explainthe diagnostic procedures and the re-sults of the repair in terms that theycan understand. Things will go a lotsmoother. Sometimes I might have togo through it a few times but it’sworth the effort.

So the key to this whole ordeal isto do a good job, be prepared to backup what you do with an explanationthat can be understand by the typicaldriver. As long as you do that you cankeep your wits about you and youwon’t lose too much skin for your ef-forts. Keep in mind; it can be a littlerough around the water’s edge. Youmay have to stand your ground andmake your point known. Keep it ascalm as possible and explain as bestas possible.

These issues usually don’t applyto the person who keeps up with theirmaintenance schedules or comes inon a regular basis. They understandthe need and respect the work you do.It’s the ones that only show up when

their car has reached the water’s edgeand can’t go an inch further withoutfalling into the crocodile infestedwater. They will stammer around try-ing to find a way to get their car re-paired without stepping off into thedeep end and risk losing money, time,and their temper. We’ve all beenthere, and we can all understand theproblems involved.

Let’s not forget that explainingthings can only go so far. You don’twant to have to resort to their tactics,that’s not good business.

But, remember one thing, thecustomer is still dealing with an alli-gator, and they can bite back ifthey’re not careful.


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Alligator Skin Polk Execs Speak aboutAftermarket at AAPEXSeveral Polk executives will provide af-termarket insight as part of the annualAutomotiveAftermarket Products Expo(AAPEX) Nov. 1–3, 2011 in Las Vegas.Polk presentations will include Polk’sunique perspective and broad expertisein both the OEM and aftermarket seg-ments of the industry. Tim Rogers, Polkpresident, will kick-off the annualAAIATown Hall meeting with comments onfive key trends Polk sees affecting theautomotive aftermarket, Wed., Nov. 2 at7 a.m. in the Venetian Hotel Ballroom.Other talks will beld that afternoon.

ALLDATA Training Centerto Exhibit at AAPEXALLDATA has developed a new con-venient training option for customers,the online ALLDATATraining Center.Launched in late August, over 400 cus-tomers have already taken advantage ofthis service. Demonstrations will begiven in booth #3265 at the 2011 Auto-motive Aftermarket Products Expo(AAPEX), November 1-3, in LasVegas. The Training Center is an inter-active website where customers can-learn how to use ALLDATA products.Access is available 24/7.

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First let me say that there is no “right”answer to most of the challenges acollision owner faces today. Thingsthat worked in the past will no longercut it today and we need to constantlyre-invent the wheel. I will give someexamples of ways to cautiously moveforward in today’s market.

One example is advertising, inthe past we would get a bigger yellowpage ad, and maybe we would donewspaper and maybe some TV. Intoday’s market the consumer rarelypicks up the phone book and newspa-per sales are at an all time low, whileTV is still questionable with DVR’speople can fast forward through yourexpensive 30-second commercial.

Another example is purchasingequipment and your ROI. In the past ashop would buy a thirty thousand dol-lar frame rack or measuring systemand they would be able to close a salebased on something they had that their

competitors didn’t. Today, repair stan-dards and requirements to repair a col-lision have become so advanced thatmost decent collision facilities havethe same equipment. So purchasing alarge piece of equipment in today’smarket most of the time offers “no”return on your investment.

ChallengesDecision-making is the key to busi-ness success, and there is “no suchthing as a bad decision.” As business-men we decided to venture out on ourown and start or purchase a business.No one gave us any guarantees or se-curity blankets. We made the decisionand went for it. I know I went forbroke. No one stood behind me. I wason my own and I had to make deci-sions every moment that would set thedirection of the future of my company.There was no road map then and thereisn’t one now.

I have learned that when I make adecision I need to make it based on theinformation I have at the time. Wedon’t have a crystal ball to see the fu-ture but many of us tend to beat our-selves up when these decisions don’tpan out. I always remember this be-cause, when I think back, I would nor-mally make the exact same decision ifI had the exact same information atthe time. In other words, all else beingequal, I wouldn’t change the decisionsthat I’ve made in the past.

When we hire a new technician,for example, we check all their refer-ences and make sure they have all ofthe required training. Some turn out tobe our worst nightmare. But that deci-sion to hire someone was based on theinformation we had at the time. Weneeded someone and we hired them.We only know much later that it wasthe wrong person. Hiring was a gooddecision—but the wrong person may

have been hired. So, not making a de-cision is the only wrong decision here.We could never have known this techwas right or wrong unless we had ven-tured out and made a decision to hirethem.

All business challenges requiredecision-making—that’s our job—embrace it because its what we do. It’swho we are. Another name for a busi-nessman should be “Master DecisionMaker.” I say this because if someoneasks me what my job description wasI would say more than anything elseits making decisions, and they are allgood.

ChangesIn the past we made advertising deci-sions based on information we hadthen. The younger generation are alliPhone and internet savvy now andnever pick up a phone book or newspa-per so we are changing our advertising

There is No Such Thing as a ‘Bad Decision’ in Business

Action Countswith Lee Amaradio Jr.

Lee Amaradio, Jr. is the president and owner of “Faith” Quality Auto Body Inc. in Murrieta,California. Lee is president of the CRA as well as an advocate for many other industrygroups. He can be contacted at [email protected]

plans to accommodate this high-techfuture generation. We just canceled ourlast phone book ad. We do more “Mar-keting” and leave less to chance and weare not really sure of our final destina-tion but we do know the direction haschanged. Will this be a good decision?‘Yes,’ based on the information wehave at the time (now).

Similarly, we must continue topurchase major equipment (to keep upwith vehicle technology), but we areno longer expecting a return on our in-vestment. We treat it as a liability likea rent increase—something that wecan’t do anything about but we needto deal with, and this forces us to runa leaner operation.

In retrospect, I made a decisionto expand my operation at the worstpossible time, but when the decisionwas made it was based on the bestinformation I had at the time. Manywould say it was the wrong deci-sion—who would expand in themiddle of a recession? The answeris “no one,” not even “me,” but Ididn’t know there was a recessionwhen I expanded and, given thesame set of circumstances, I wouldmake the same decision again be-

cause it was a good decision. So re-member there is no such thing as a“bad decision in business” becausethat’s what we do. ‘Not deciding’ isnot an option.

With this in mind, it may be timeto go back to the drawing board andre-invent yourself. As the leader ofyour company take charge and makethose tough decisions quickly andmatter-of-factly based on the infor-mation you have at the time. Don’tlook back and never second-guessyourself. Once you make a decision,move forward to the next deci-sion—like firing that tech you nowwish you hadn’t hired (because of theinformation you have now that youdidn’t have before.)

Think of yourself as a Generalleading your troops into battle. Youneed them to trust your decisions andfollow you. No one wants to followsomeone that is indecisive and inse-cure. If you don’t trust your own de-cision making, how can you expectanyone else to trust it and follow yourlead?

And quit beating yourself up(about events that turned out differ-ently in hindsight)!


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The Women’s Industry Network(WIN) awarded the group’s annualscholarship to attend NACE to thetwo top-placing female winners atSkillsUSA.

This year’s recipients areAlexandra Domer, who placedeighth in the automotive refinishingtechnology category, and ElizabethMoore, who placed 10th in the colli-sion repair technology category.

The WIN scholarship includesairfare, lodging and associated ex-penses, as well as a full access NACEExpo Pass provided by the Automo-tive Management Institute (AMI) andAutomotive Service Association(ASA).

Additionally, Domer and Moorewere honored at the ASA sponsoredindustry awards ceremony on Oct. 6,and also will receive a 2012 WINmembership.

After high school, Domer at-tended the Waubonsee CommunityCollege, where she earned two Asso-ciate Degrees in Applied Science, onein Automotive Body Repair and Au-tomotive Technology. She graduatedin the spring of 2011 and hopes tohave her own collision repair facilityone day.

Moore graduated from FreedomHigh School in the spring of 2011,and is currently attending UTI inHouston.

“The WIN NACE scholarshipgoes to the heart of WIN’s mission tosupport and encourage women whoare entering the industry, particularlythose in the technical ranks. Sur-rounded by our amazing WIN mem-bers, this scholarship has consistentlybeen a wonderful way to introduceyoung women to the collision indus-try,” said Teresa Bolton, Director,Collision Repair Test Development,ASE who also serves as WIN’sScholarship Co-Chair and Treasurer.

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by John Yoswick

More than 400 shops were representedon a panel discussion at this year’s2011 International Autobody Con-gress & Exposition (NACE) – butonly four chairs were needed on thestage.

That’s because the four speakerswere representatives of some of thelargest multiple shop operations(MSOs) in the industry, which com-bined have more than 7,200 employ-ees and annual sales topping $1.26million.Ca

The four were speaking at a newforum held for the first time at thisyear’s NACE in Orland, Fla., a day-long session aimed at (and open to)only MSOs. Much of the content ofthe panel discussions during the sym-posium, however, could have beenequally of value to the single-locationshop owner who wants to expand hisor her business.

During the “Lessons LearnedFrom the Big Four” panel discussion,for example, Cathy Bonner, the pres-ident of the 47-shop Service King

chain in Texas, was asked what rolesocial media plays in her company’sextensive marketing efforts. Bonnersaid she thinks it’s a stretch to thinkthat people want to “socialize” with acollision repair shop, and that measur-ing return on an investment in socialmedia is difficult given how infre-quently the average driver needs ashop’s services.

Still, she said, Facebook andTwitter are reasonable inexpensiveways to help build a brand and nameawareness by helping promote, for ex-ample, Service King’s charitable ef-forts. Social media are how a growingpercentage of the population may findyour shop and understand your repu-tation, she said.

“People want to do business notjust with good-performing companies,but with companies they like,” Bon-ner said. “They want an emotional at-tachment to that company. Socialmedia can help you develop that.”

The panel was asked what, otherthan improved pricing, they expectfrom their vendors as they have grownas buyers. Rollie Benjamin, CEO of

the 110-shop ABRA Auto Body &Glass chain, said his company focusesmore on service than price whenworking with vendors. In terms ofparts, for example, ABRA looks forvendors that can do more to help withcycle time by getting the right part tothe shop at the right time.

“We survey our people to scorethe vendors on what level of customersatisfaction they giving our managersrunning these shops,” Benjamin said.“We give a report card to the ven-dors.”

Steve Grimshaw, CEO of theCaliber Collision Center chain, whichoperates 92 shops in four states, heconsiders what aspects of businessthat vendors excel in – and then looksfor ways to put that expertise to workfor Caliber.

“Rental car companies are ex-perts at customer service,” Grimshawsaid. “I expect them to leverage thatexpertise to help me train my peoplehow to be customer service experts.You have paint vendors who are ex-perts on lean processes; I expect themto dedicate resources to help improve

our operations. There’s generally a lotof willingness on their behalf to dedi-cate resources to help us achieve ourobjectives. So it becomes more of astrategic relationship than a vendor re-lationship.”

What are the MSOs looking forin terms of expanding into new mar-kets or acquiring other collision repairbusinesses? Benjamin said his com-pany operates company-owned shopsin currently six major metropolitanareas, but 35 of its shops are franchiseoperations in mid-sized cities.

Bonner said her company’smodel is to operate large shops inhigh-visibility locations. The averageService King location, for example,has 13 direct repair programs – nearlytwice that of most other MSOs – anddoes $5.4 million in annual sales. Agood candidate for Service King ac-quisition, she said, may be family-owned like Service King, will have asimilar culture, and will have room toperhaps double its sales from$250,000 to $500,000 a month.

She said that although all of the


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by Vincent Romans, Romans Group

A half decade has passed since westarted tracking collision repair organ-izations that generate repair revenueof $20 million or greater annually.During these past five years we haveseen a remarkable amount of change,not only within the collision repairand auto physical damage aftermarketindustries, but also with our U.S. andworld economies.

July 2010 marked the “official”start of the recovery from the 2007 to2009 recession, but it feels like a re-covery in name only for many people.Our economy has been described bymany economists and media punditsas being in a “soft patch.” A growingnumber of forecasters believe we areat risk of a double-dip recession dueto the sluggish economy and a broadspectrum of increasing dynamic, com-plex U.S. macroeconomic and globaldowndraft variables that continue toinfluence fundamental structuralchange within our business, financialand government institutions withsome currently identifiable and still

indeterminable impact on the collisionrepair, property and casualty insur-ance, and OEM and aftermarket autophysical damage segments.

Who will lead the collision repairindustry and how those leadershipcompanies will influence the collisionrepair, property and casualty insuranceand related auto physical damagebusiness segments is an evolving storythat is playing out at this very mo-ment. This evolving story can be sum-marized by viewing it as part of along-term continuum involving threesimultaneously active industry chang-ing phases: Contraction, Consolida-tion and Convergence. We have seenboth long-term historical and real timecontraction within the auto repair andaffiliated industries. Collision repairindustry contraction is due to an in-creasing number of complex dynamicmacroeconomic and industry-relatedvariables including, but not limited to:● Continued overcapacity and frag-mentation● The persistently weak U.S. econ-omy’s impact on consumer attitudes,confidence and spending habits

● The multitude of fluctuating andconflicting trends affecting collisionfrequency, the number of accidentsand vehicle repairs● Proliferation of vehicle accidentavoidance and safety technology● Safer drivers due to aging popula-tion, insurance company auto policypremium discount programs based ongood driver/vehicle monitoring tech-nology, accident and incident-freedriver experiences, graduated teenagedriver training programs, and feweralcohol-related accidents● The changing profile of business-to-business relationships and their in-terdependencies and partnershipexpectations on how business is andwill be conducted in the future● Globalization

This contraction stimulates andaccelerates market share land grab,which in turn increases the likelihoodof further consolidation, which thenplays out through merger and acquisi-tion expansion.

The contraction and consolida-tion phases open the door to a conver-gence of businesses across different

and similar business segments. Thesecompanies combine and integratetheir organizations’ strategic interestsand competencies to win and furthersucceed through leadership, innova-tion, technology, market share gains,competitive positioning, and businessexecution.

Following are examples of con-vergence among some key auto phys-ical damage segments. This type ofconvergence includes clear examplesof merger and acquisition activity,globalization and the integration ofmerged technology platforms amongdifferent business segments that willcontinue to alter and change the land-scape for the collision repair industryand related auto physical damagebusiness segments.

♦ P & C Insurance▪ Mapfre Insurance acquires Com-merce Insurance▪Liberty Mutual acquires Ohio Casu-alty and Safeco▪ AIG acquires 21st Insurance▪ Farmers acquires AIG/21st Century▪ QBE Insurance - acquires Balboa In-


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A Profile of the Evolving Collision Repair Marketplace

surance▪ Allstate announces Esurance acqui-sition▪ Nationwide announces acquisition ofHarleysville Insurance

♦ Collision Repair▪ Boyd Group acquires True2Form▪ Boyd Group acquires Cars Collision▪ Service King acquires Alamo Colli-sion▪ Service King acquires B&B Bodyand Paint

♦ Paint, Body and Equipment▪ Uni-Select acquires Finish Master

♦ Parts▪ LKQ acquires Keystone▪ LKQ acquires Greenleaf▪ LKQ acquires AKZO (40 Locations)

♦ Rental-Technology▪ Enterprise acquires National andAlamo▪ Clayton Venture Group acquiresCynCast▪ Audatex acquires New Era Software▪ Audatex acquires See Progress, Inc.

People frequently ask where the

collision repair industry is headingand what does its future look like.Since perception frequently influencesreality, one guess is as good as an-other. However, one way that questioncan be answered is by following theactual numbers and by tracking thetrends. This white paper provides thatinformation for the growing $20 mil-lion-plus collision repair organizationsegment. We are now beginning to de-velop insight and understanding intoanother important and evolving colli-sion repair segment that includes op-erators processing $10M to $20Mannually.

Our profile of $20 million multi-ple-location collision repair operators(MLOs) continues to include:● Independent, dealership and insur-ance company-owned and managedcollision repair operators processing$20 million or more annually withinthe U.S. market● Operators with one or more loca-tions in single or multiple geographicmarkets within the United States● Professionally-managed operatorsproviding performance-based, brand-recognized and competitively-differ-entiated collision repair services

● Companies focused on achievingtop-tier performance results, high cus-tomer satisfaction, and consistent andsustainable quality repairs● Businesses that tend to pursue mul-tiple customer segments for collisionrepair revenue including property andcasualty insurance, automotive dealer,accident management, rental car, anddirect-pay consumersWe believe that the $20 million-plusand the $10 to $20 million collisionrepair segments will continue to growtheir share relatively faster than othersegments of the collision repair mar-ket. This growth will be driven by anumber of variables.● The segment’s local and multi-mar-ket footprint which offers greater con-sumer and insurance company choiceMulti-level selling and marketing for

insurer choice brand preference withaccess to insurance company direct re-pair claims● Ongoing operational improvementresulting in increased vehicle repairquality, daily throughput and reducedcycle time● Business service differentiation andmarket segmentation● Market leadership through sustain-

able top-tier competitive performanceresults● Expanded business hours of opera-tion including multiple daily shifts,hybrid work shifts and weekends

Single point of contact with opera-tional conformity and predictable re-pair quality and performanceoutcomes● Access to capital for business andmarket growth, expansion and infra-structure development● An integrated sales and marketingapproach to capturing consumer, in-surance, rental, and fleet businessthrough brand recognition, reputation,performance, and multi-level insur-ance company focused selling andmarketing● Mergers and acquisitions

Examples of this type of acceler-ated growth and expansion is BoydGroup’s 2010 mid-year acquisition ofTrue2Form’s multiple-location, multi-market business which had 37 loca-tions and $71.0 M in annual revenueat the time of acquisition and theirJune 2011 acquisition of Cars Colli-sion. With the Cars acquisition,Boyd’s U.S. business increased its lo-


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cations by another 28 repair facilitiesfor a total, of 164 locations in NorthAmerica, 127 located in 13 U.S. mar-kets. This expanded Boyd’s networkreach and operating platform and isseen as being advantageous by a num-ber of insurance companies. Thesetypes of acquisitions and mergers willcontinue to influence the consolida-tion and right-sizing of the collisionrepair industry as well as increase theMLO market share in the U.S.

The $20 million MLO collisionrepair profile used for this analysis ex-cludes repair facilities that focus ex-clusively or primarily on expeditedpaint and cosmollision, small dent,glass repair only, mechanical only, andcollision repair related primarily toauction vehicles. We do recognize thatwithin this segment some companiescontinue to be in various stages ofstrategic growth, transformation andtransition to business models ap-proaching that of an insurance com-pany DRP wholesale or diversifiedcustomer segment platform.

Portions of this report include aspecific segment of collision repairconversion and multi-segment cus-tomer-focused franchisors which we

refer to as multiple-location networks(MLNs). The MLNs included areMaaco, CARSTAR, ABRA franchis-ing, and Fix Auto, currently a hybridmodel which includes both a franchiseand non-franchise brand banner net-work model. These organizations rep-resent a significant market segment ofthe collision repair industry that webelieve warrants continued trackingand monitoring.

We recognize that there are vari-ous types of multiple-location net-works that are not currently includedhere such as integrated and outsourcedauto physical damage and glass net-works like LYNX APD and the Inno-vation Group, buying networks suchas Assured Performance, accidentmanagement providers such as CEI,and peer performance groups like TheEverest Partners.

Key findings of our 2010 $20M MLOdiscovery, research and analysis in-clude:● The 56 $20 million MLO organiza-tions process 10.8 percent of the $31.0billion in collision repair revenue na-tionally representing $3,350 million,up from 9.1 percent in 2006.

● Within the top ten $20 millionMLOs, five are independent and fiveare dealer groups. These top ten or-ganizations account for 44.9 percentof all $20 million MLO production lo-cations and 53.3 percent of all $20million MLO revenue.● $ 20 million MLOs have 2.9 percentof the 37,700 locations and 10.8 per-cent of the revenue.● On average, the $20 million MLOsprocess $3.1 million per location, overfour times more than the average an-nual revenue for non-MLO repairersof $754,949.● Revenue for the top ten independ-ent and dealership MLOs was $1.8billion, an increase of $495 millionover 2006’s revenue of $1.3 billion● Our early research on the $10 to $20million collision repair segment indi-cates that there are roughly 1,000 to1,200 independent and dealer-ownedcollision repair businesses represent-ing approximately 3,000 to 4,500shops that process between $4.0 bil-lion and $5.0 billion in revenue. Whencombined with our 2010 findings forthe $20 million MLOs, these two seg-ments represent a range of revenuebeing processed of $7.5 to $8.5 billion

through approximately 4,100 to 5,600repair facilities.● Training does matter for collisionrepairers when maintaining and ex-panding the scale of their business.Our research and collaboration with I-CAR indicates that over 90% of the 56MLOs have and maintain the I-CARGold Class Professional designation.Many of these organizations also haveor are working toward increasing thenumber of Platinum technician desig-nations within their employee ranks.

There continues to be a widerange of opinions, anecdotal informa-tion and various government and pri-vate sector data reporting on anddetermining a meaningful and rele-vant collision repair market size. Thisis especially true in light of the after-math of our last recession, the currentweak economy, and the macroeco-nomic conditions which have influ-enced the accelerated loss of bothdealership and independent collisionrepair operators in 2009 and 2010.

Based on our longitudinal re-search and analysis involving pub-lished third-party industry sources,property and casualty insurance and


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force—all of which will support thecompany’s growth throughout theUnited States, said Grimshaw.

“Our move to Lewisville pro-vides us with an opportunity to con-solidate much of our managementwhich is currently spread across anumber of locations in California andTexas,” said Grimshaw.

Grimshaw also said the reloca-tion does not indicate any change inthe company’s approach to current orfuture markets. “Our first priority is toensure we have sufficient coverage inour existing markets for our clientsand customers. We also look to seek

new geographic growth opportunitiesin states contiguous to California andTexas, such as Nevada and Arizona,and finally other markets based on ourclient’s needs.”

The planned move is aimed at sup-porting the company’s general focus on

growth; Grimshawsaid, “As we con-tinue our strategicgrowth plans overthe next five years,the move will allowus to consolidatethe back end opera-tions more effi-

ciently with future large acquisitions.”Grimshaw said that almost all

employees currently working at theIrvine, CA headquarters were offered

their same positions in the new Texaslocation, and any associates that arenot moving are still working with Cal-iber to ensure a smooth transition.

The MSO, operator of severalcollision repair facilities in Californiaand Texas, also announced on October5 it has signed an agreement to ac-quire 911 Collision Centers; confirm-ing suspicions of the merger withinthe industry.

Recognized as one of the premier col-lision repair companies in the southwest,911 Collision Centers has seven loca-tions including four locations in Tucson,Arizona, one location in Scottsdale,Ari-zona and two locations in Las Vegas,Nevada.

Steve Grimshaw, Caliber Colli-sion Centers’ Chief Executive Officer

announced, “Our acquisition of 911Collision Centers sets a new corner-stone in Caliber’s continued expan-sion plans. After spending time with911’s management team, it quicklybecame apparent that 911 CollisionCenters provides Caliber with the per-fect opportunity to enter the Arizonaand Nevada markets behind a well-es-tablished, high quality brand.”

“Partnering with Caliber Colli-sion Centers will allow us to grow ex-ponentially over the foreseeable futurewhile sharing corporate best practicesand operational efficiencies across theArizona, Nevada, Texas and Califor-nia markets” said Michael Quinn,Chief Executive Officer of 911 Colli-sion Centers.

This is Caliber Collision Centersfirst expansion into locations outsideCalifornia and Texas and increases thecompany’s total number of locationsfrom 84 to 91.

Caliber Collision Centers is nowone of the largest collision repair com-panies in America with 91 I-CARGold Class Professional certified col-lision repair centers throughout Cali-fornia, Nevada, Arizona and Texas.

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Continued from Front Page

Caliber

Michael Quinn

mate of damage or payment under theapplicable policy, and any claim orcoverage denial, claim handling ortrade practice as the result of same,”the settlement continued. Ray Gunderstated further; “we’ve been sharingour legal journey with the collisionrepair industry and we’ll continue todo so in the hopes our successes willencourage others to consider theirlegal options. Meanwhile, we’ll con-tinue to ‘Pound the Rock!’”


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government sources, primary and sec-ondary research, and industry “knowl-edgeable and experienced,”

professionals, we continue to ascertainthat there is no one certain numberthat is universally rec-ognized or accepted asbeing the “correct”number of collision re-pairers in the U.S. today.

Our estimated U.S.market size for the num-ber of collision repairersthrough year end 2010is 37,700. This estimate

continues to reflect the long-term de-cline which began in the late 1980s.As seen in the chart below, the numberof independent and dealership colli-sion repair facilities in the U.S. has de-clined by 53 percent over the past 30years. Since 2006, we see a reduction

of approximately 7,300independent and dealer-operated collision repairfacilities within theUnited States, a 16 per-cent decline.

Over the nextdecade, we believe thatgreater market share willcontinue to shift to the$20M plus MLOs, the$10 to $20M MLOs, and

MLNs. Their focus will be on growth-oriented strategies which deliver high-

quality and consistent repair perform-ance, have strong insurance and con-sumer brand recognition andreputation, and adapt quickly to mar-ket, consumer, and insurance needsthrough innovative solutions, technol-ogy and services. This market shareshift will move the industry toward aless fragmented and capacity-normal-ized model.

Using our best-efforts approachin sizing the collision repair insuranceand consumer-paid auto repair claimsmarket size, insurance-paid repairable

claims expenditures for 2010 roseslightly to $28.3 billion from $27.7billion in 2009. Consumer-paid claims

were relatively stable at $2.7 billion.We estimate that the combined insur-ance and consumer-paid claims for re-pairable vehicles for 2010 wasapproximately $31.0 billion.

The total number of collision re-pairers within the United States con-tinues to have value as the traditionaldata point for calculating marketshare. Repairers who operate and in-tegrate within their business collisiondamage estimating and shop manage-ment systems while leveraging otherclaims processing and management

software such as audit-ing, capacity utilization,scheduling and key per-formance metrics analy-sis will be the collisionrepair providers laststanding and preferredby insurance and otherclaims production com-panies.

Our analysis ofMLO production mar-ket share includes threeprimary market defini-

tions: the total number of collision re-pairers, total estimating systems and




Evolving Marketplace

Source: The Romans Group LLC

Source: The Romans Group LLC


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ber of deer-vehicle collisions in the U.S.has dropped, according to a study doneby State Farm Insurance. And the down-turn is accelerating. The percentage de-cline over the last year is nearly threetimes as large as during the previous twoyears combined. Using its claims data,State Farm® estimates 1.09 million colli-sions between deer and vehicles occurredin the U.S. between July 1, 2010 andJune 30, 2011. That’s 9 percent less thanthree years ago and 7 percent fewer thanone year ago. Among those states inwhich at least 2,000 deer-vehicle colli-

sions occur per year, Vermont (24 per-cent), Michigan (23 percent), West Vir-ginia (22 percent) and Connecticut (22percent) experienced the largest one-yearpercentage declines. There were 23,000fewer deer-vehicle altercations in Michi-gan alone. Michigan is second on the listof states with the highest total number ofthese collisions (78,304), well behindPennsylvania (101,299).

For the fifth year in a row, West Vir-ginia tops the list of states where an indi-vidual driver is most likely to run in to adeer. Iowa remains second on the list. Deer-vehicle collisions are least likely in Hawaii.

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management system software users.Values for these market size data

points are represented in the followingchart.

Our summary findings concludedthat in 2010 there were 56 independ-ent and dealership collision repair $20million MLOs processing over $3.3billion annually through 973 produc-tion locations.

We attempted to identify non-production estimating and drop-off lo-cations and base our market share onproduction locations only. While these$20 million MLOs represent 2.9 per-cent of the estimated 37,700 collisionrepair facilities nationally, theyprocess 10.8 percent of the $31.0 bil-lion in insurance and customer-pay

collision repair rev-enue.

The NationalAutomobile DealersAssociation, NADA,estimates that 5,841dealers processed$6.4 billion in repairrevenue in 2010 ver-sus $6.6 billion in2009. The balance of$24.6 billion is beingprocessed by ap-proximately 31,859independent colli-sion repair locations.On average, the $20million MLOsprocess $3.1 million per location, overfour times more than the average an-nual revenue for non-MLO repairersof $754,949. There are many smallerindependent and dealer non-MLO re-

pairers that achieveg r e a t e r - t h a n - t h e -industry average annualrevenue, especially thosewho represent and oper-ate in the $10.0 millionto $20.0 million seg-ment.

While this paper is focused on in-dependent and dealership multiple-lo-cation operators, we think it isimportant to recognize the continuedinterest in other collision repair mod-els which we identify as multiple-lo-cation networks or MLNs. TheseMLNs are growing competitively withtheir service offerings, insurance-pre-ferred value proposition, and marketinfluence. When combined, their mar-ket share for vehicle repairs processedand their local, regional and national

footprint become relevant.We have included ABRA,

CARSTAR and Maaco, all franchis-ing organizations, and Fix Auto USA,a hybrid franchisor and brand bannernetwork, as part of our multiple-loca-tion network segment for 2010. To-gether they represent a total of 884locations repairing approximately$1.3 billion in vehicle revenue. We seeinterest on the part of collision repair-ers to investigate and consider thebenefits of multiple-location fran-chisor and banner networks.

The independent-brand model,historically believed by many repair-ers to be the most desirable way tosuccessfully maintain and grow theirbusiness, may now be seen by a grow-ing number of collision repairproviders as possibly more risky thanbeing associated with an MLO orMLN, especially in light of currentmacroeconomic, market and competi-tive conditions. Some repairers see theopportunity to adopt and integrateMLN member benefits as a potentiallybetter way to sustain and grow theirbusiness through:● Leveraging the MLN value propo-


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sition, brand association, multi-seg-ment customer reach, multi-level sales

and marketing, and insurance com-pany business affiliation● Franchisee performance tools forbusiness and customer analysis,benchmarking and peer ranking● Personnel, operational and generalbusiness training and development● Standardized processes and procedures

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Our regional loca-tion market repre-sentation for these$20 million MLOs ishighest in the South-east at 25.2 percent.In 2008 the Westwas the dominant re-gion with a 25.4 per-cent share; it nowrepresents 22.9 per-cent of the market.The lowest $20 mil-lion MLO represen-

tation continues to be in the Northeastat 6.1 percent which is down 4.3 per-centage points from their 2006 shareof 10.4 percent.

Another way to view regionalrepresentation is to assess the geo-graphic reach of the $20 million MLOorganizations. Do they tend to contain

themselves in a relatively small areaor do they expand their influenceacross many states?● Of the 56 $20 mil-lion MLO organiza-tions, 31 do businessin only one state. Ofthose 31 organiza-tions, 25 are independents and 6 aredealers.●Within the top ten rankings, onlytwo independent and three dealerMLO organizations strategically posi-tion themselves in only one state.

The West has the highest numberof MLOs with at least one location inthat region, 26 MLOs are represented

which represents 46.4percent of MLOs.

The companiesrepresented within thetop ten MLO organiza-tions have not substan-tially changed since2006 and have only lostone member. Whiletheir share of all colli-sion repair locations hasbeen relatively constant,revenue among thisgroup had been increas-

ing year over year in total as well asper location.

Within the top ten $20 millionMLOs, five are independent and fiveare dealer groups. These ten organiza-tions account for 44.9 percent of all$20 million MLO production loca-tions and 53.3 percent of all $20 mil-lion MLO revenue. These top tenMLOs display trends similar to thetotal $20 million MLO group; higher


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revenue produced through fewer pro-duction locations.

Smaller and non-MLO repairers,those with total collision repair rev-enue below $20 million annually, varywidely in claims processed per loca-tion. For the top ten independent $20million MLOs, theaverage repair rev-enue per locationsignificantly sur-passes that of theirsmaller and non-MLO counterpartsat $3.0 million ver-sus $740,619, overfour times more av-erage revenue perlocation. Top tendealer $20 millionMLO performancealso exceeds theirsmaller and non-MLO counterpartsat a repairs-processed averageof $3.9 million perlocation versus$964,691 per loca-tion for smaller and non-MLO dealerrepairers; four times more revenue perlocation. The trend for both the inde-pendent and dealer groups is towardhigher revenue per location in both theMLO and non-MLO segments.

Comparing the top ten independ-ent and dealer group $20 millionMLOs, the independents have 69 per-cent more locations producing 27 per-cent more revenue than dealer repairorganizations. However, in 2010 thetop ten dealer repairers manage $3.9million in average revenue per loca-tion versus $3.0 million per location

for independent organizations.Within the top ten independent

$20 million MLOgroup, the rankinghas remained fairlyconsistent over thepast four years. Thetotal number of pro-duction locations hasincreased along withtheir representativeshare of all $20 mil-lion MLO locationsto 40.7 percent from40.5 percent in 2006.This group’s share ofall $20 million MLOrevenue has in-creased to 39.7 per-cent, up 5.7percentage pointsfrom 34.0 percent in2006.

The trend in the number of deal-erships operating collision repair fa-cilities has continued to decline since2006 when 41 percent had repair lo-cations down to 33 percent in 2010.

Both the number of new car dealer-ships and the number of dealers oper-ating collision repair facilitiesdeclined significantly since 2006.Using NADA’s reported total of17,700 dealers at the end of 2010, thisrepresents an estimated 5,841 dealer-operated collision repair facilities, adecline of 32.8 percent or 2,851 fewerdealer collision repair operators from2006 when there were 8,692 dealersoperating collision repair facilities.

As can be seen in the followingchart, the number of dealerships oper-ating on-site body shops since 1994

has dropped significantly from a highof 52 percent to a low of 33 percent in2010, a 19 point drop over 16 years.

Looking at the dealership shareof the collision repair marketplace,and according to NADA, revenue de-rived from collision repair work per-formed by dealerships declined to$6.4 billion in 2010, down nearly 33%percent from $9.5 billion in 2007.

During the past 22 years, dealer-ships had seen their collision repair

revenue increase steadily until around2005 when the industry’s total salesdollars began to decline to what arenow levels equal to 1998. The revenuedecline has started to tapered off since

2008.There was a 4.1

percent decline in thenumber of new car deal-erships from year-end2009 to year-end 2010,along with a 10.3 per-cent decline in the num-ber of dealershipsoffering collision repairservices. The significantdecline in the number ofdealerships in 2009

slowed in 2010. About 1,550 dealer-ships closed in 2009 and 760 closed in2010, leaving the dealership count at

17,700, a drop of 4.1 per-cent.

Within the top tendealer group, there has beensome minor shifting. Forthose dealers, average rev-enue per location has in-creased over the past yearby $500,000, a considerableswing from the $300,000decline in 2009.

We expect that theevolving collision repairlandscape will be the resultof a number of industry-spe-

cific and macro-economic conditionslikely causing a continuation of colli-sion repairers exiting the business,MLO mergers and acquisitions, mar-ket share growth and expansion, andinnovative partnerships and strategicalliances. Some of the prevailing con-ditions include:● Insurance companies working with

a more limited numberof single and multiple-location operators

○ DRP claims con-version is expected toincrease over the nextfive years

○ Performancemanagement results willdrive DRP claims uti-lization and influence totop-tier collision repairperformers

○ DRPs and pre-ferred provider pro-grams are influencinglarger repair volumes toemerging end-gamewinners

○ Insurance com-panies increased adoption of the mul-tiple-operator business model andsingle point of contact● Fluctuating and conflicting trendsaffecting accident frequency and the

Source: NADA, The Romans Group LLC

Source: NADA Industry Analysis Division



number of repairable claims.The negative impact of the current

macroeconomic and business condi-tions and their influence on collisionrepairers remaining in business or de-

ciding to exit their business● Acceleration of aggressive repairerselling, marketing and branding oftheir competitive value propositionsand performance to current andprospective wholesale and consumersegments● Development, marketing and im-plementation of new and innovativeservices that many repairers will nothave the ability or the inclination to

pursue with their customer base● Lean production and its businessbenefits leading to competitive advan-tage and long-term business sustain-ability for some repairers compared to

their competition● Hybrid claims manage-ment and process modelsthat not all repairers are will-ing or able to accept, adoptor maintain● Insurers co-managing withrepairers a growing numberof their insured’s collisionrepairs through direct repairprograms.● Innovative, risk-taking re-pairers will move toward aself-managed vehicle repairmodel which will require

less insurance company oversight, in-volvement and disintermediation.● Technology and its affect on theevolution and movement toward anintegrated electronic claims process-ing model● Continued contraction, consolida-tion and convergence of all industriesassociated with and including colli-sion repair● Globalization and the potential U.S.

market entry of for-eign companies inthe collision repair,property and casu-alty insurance andauto physical dam-age industries

The good newsis that there is stillmuch opportunitywithin the collisionrepair industry forthose who adapt tothe changing condi-tions and leveragetheir business, mar-ket, financial, andstrategic competen-cies and capabilitiesfor growth and fu-ture success.

For further information, contactVincent J. Romans or Mary JaneKurowski of The Romans Group at

[email protected], [email protected] or visitwww.romans-group.com.


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17 shops Service King has added thisyear have been in Texas, the companyis interested in expanding into otherstates.

“My father used to tell me youcan plan your work, but don’t plan onit working out,” Bonner added as acaveat. “It is important to plan, but interms of growth and decisions aboutacquisitions, you have to have adapt-ability as well.”

Grimshaw said reputation withina market is critical when consideringbusinesses to acquire.

“If you think you’re going to buya (shop) that wasn’t performing welland that when you put your name onthe sign, all will be forgiven, that’sbeing a bit naïve,” Grimshaw said. “Ittakes a long time and you have tomend a lot of fences to reestablish areputation.”

The panel was asked to commenton a proposition, espoused by an in-surer in the United Kingdom, thatbusiness often “trip over themselves”trying to exceed customer expecta-

tions when they would be better offjust ensuring they consistently meetthose expectations every time.

Brock Bulbuck, CEO of TheBoyd Group, a Canadian-based firmthat also operates 128 shops in theUnited States (many under theTrue2Form and Gerber tradenames)said the problem with that concept isthat customer expectations keep ris-ing.

“If you don’t strive to wow andexceed and set the bar as high as youcan, I think you run the risk of estab-lishing a culture in your organizationwhere just doing your job is goodenough,” Bulbuck said. “I don’t thinkthat’s conducive to create promoters(among customers) and growing yourbusiness.”

Grimshaw, too, said exceedingexpectations is the key to differentiat-ing your business from the competi-tion.

But Bonner said there is somelogic in what the U.K. insurer was es-pousing.

“I think in collision repair, theprimary customer is insurance, and ifyou don’t exceed their expectations,you will not be rewarded with

growth,” she said. “The secondarycustomer is the traditional retail cus-tomer. I think it’s true that you don’thave to exceed their expectations; youjust have to satisfy them. That’s whatwe’re rewarded on by the primarycustomer, the insurance companies,whether we have satisfied those cus-tomers and given them great service.”

As the panel discussion ended,Bulbuck said he’s interested in seeingother MSOs succeed because itdemonstrates the success of the busi-ness model overall.

“I truly believe the success ofeveryone in this room is dependentupon the collective success of theMSO sector,” Bulbuck said. “So myadvice is a bit self-serving: Never putyour business at risk, never bet thefarm, either operationally or finan-cially.”

The MSO symposium was a newevent at what was the first NACE heldoutside of Las Vegas in seven years.NACE organizers said the return towhat will likely be a 3-city rotation(Orlando, New Orleans and LasVegas) appears to have paid off; re-ported attendance at this year’s event(more than 18,000 people) was up 15

percent over 2010. About 40 percentof those who pre-registered indicatedthey were first-time attendees.

Next year’s event will be heldOctober 10-13 in New Orleans, andorganizers say the success of thisyear’s MSO symposium will result ina similar session being held next year.While it will continue to be open onlyto MSOs, organizers point out thatNACE includes nearly 90 other train-ing sessions that have no such restric-tion on attendance.

John Yoswick, a freelance writerbased in Portland, Oregon, who hasbeen writing about the automotiveindustry since 1988, is also the edi-tor of the weekly CRASH Network(for a free 4-week trial subscription,visit www.CrashNetwork.com). Hecan be contacted by email [email protected].


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Mitchell Partners with Enterprise Rent-A-Car, Integrates withUpdate Promise.com to Deliver Services via RepairCenter™Mitchell has announced a partnershipwith Enterprise Rent-A-Car. Under theterms of the agreement, Mitchell willdirectly integrate Enterprise Rent-A-Car services into both its auto repairmanagement software and insuranceclaims management software solu-tions, RepairCenter™ and WorkCen-ter™, by automating and simplifyingthe end-to-end vehicle rental workflowfor insurance carriers. Planned forearly 2012, the integration simplifiesthe rental process by eliminating man-ual updates and “middleman” commu-nication between the insurer, bodyshop, rental agency and consumer.When a repair is delayed, an automaticnotification can be sent from Repair-Center’s shop management system di-rectly to WorkCenter insurance usersor to the Enterprise representative to letthem know they need to perform arental task. Representatives and claimshandlers will be able to send rental re-quests, extend rentals and receiverental updates.

Paul Rosenstein, Mitchell’s VicePresident of Claims Solutions, said“Partnerships with respected industryleaders like Enterprise Rent-A-Car area part of our commitment to simplifyand optimize complex claims and busi-

ness environments, ultimately creatingan exceptional customer experience atevery stage of the claims process.”

Dave Smith, Vice PresidentStrategic Solutions Sales, for Enter-prise Rent-A-Car, said, “This is a sig-nificant opportunity for insurers tospeed up automotive claims processingand increase customer satisfaction. Inaddition, direct integration of Enter-prise Rent-A-Car into Mitchell’s solu-tions empowers small insurers to gainaccess to rental integration withouthaving to build it themselves.”

Separately, Mitchell has alsoteamed with UpdatePromise.com™ toenhance its RepairCenter™ auto repairshop software with proactive repairstatus updates. UpdatePromise is aWeb-based service provider that deliv-ers automated repair status updates tocollision customers via text messageand e-mail. This allows body shopusers to manage delivery date prom-ises, repair status updates, and cus-tomer responses from within theRepairCenter body shop softwareworkspace. The widespread use of textmessaging gives auto repair shops animproved option to communicate andconnect with their customers in a con-sistent, proactive way.

Allstate and Progressive Agreeto Settle Patent LitigationAllstate Insurance Co., Allstate Fire &Casualty Insurance Co. and ProgressiveCasualty Insurance Co. announced theyreached a settlement agreement over lit-igation involving technology patentsand questions of trademark infringe-ment. In the suit, Progressive allegedthat Allstate infringed on its usage-based car insurance and online insur-ance policy servicing technology.Progressive also alleged trademark in-fringement. The companies entered intoa trademark co-existence agreement in-volving the Drive and DriveWise trade-marks. They also cross-licensed certainpatent rights with each other.

“This was about protecting andleveraging Progressive’s investment ofmore than 15 years in usage-based in-surance research, development, testingand piloting,” Chuck Jarrett, Progres-sive’s chief legal officer, said. “We havealways said we are willing to license ourintellectual property rights to others andthat we will enforce those rights whennecessary.”Allstate said: “Althoughconfident in the merits of its case, All-state is pleased to be able to leverage itspatent portfolio in this settlement byproviding a license to Progressive andto eliminate the distraction from this lit-igation.”

TwoAAAclubs have combined opera-tions to become the second largestAAAclub in NorthAmerica.AAAAuto ClubSouth, based in Tampa, Fla., affiliatedand combined with The Auto ClubGroup based in Dearborn, Mich., effec-tive Oct. 1. The new enterprise, knownas The Auto Club Group, now servesmembers and customers across 11states and two U.S. territories. They are:Florida, Georgia, Iowa, Michigan, Ne-braska, North Dakota, Wisconsin,Puerto Rico and the U.S. Virgin Islands.The group also serves most of Illinois,Minnesota and Tennessee, as well as aportion of Indiana. The new organiza-tion provides membership, travel, in-surance and financial services to morethan 8.4 million members throughabout 300 office locations. It is main-taining corporate headquarters in bothDearborn and Tampa. Robert Sharp,chair of the former Auto Club Southboard, is now chairman of the board ofThe Auto Club Group. CharlesPodowski continues as CEO, and JohnTomlin, former Auto Club South CEO,is chief operating officer. The AutoClub Group will provide access to abroader array of insurance products andservices in the former Auto Club Southregion.

Florida and Michigan AAAClubsJoin Forces, Now 2nd Largest


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Virginia Branded Title for WaterDamage Settles at $2500Jordan Hendler, executive director ofthe Washington Metropolitan AutoBody Association, said a Virginia statelegislator whose vehicle was totaledafter the sunroof of his vehicle was leftopen in a rainstorm was a proponentthis year of legislation to raise thethreshold of damage requiring a flood-damaged vehicle to receive a brandedtitle from $1,000 to $5,000. Advocatesfor increasing the bar said that the four-decade-old limit was unfair, especiallybecause of inflation and rising stickerprices. They argued that the higherlevel would help consumers at resale aswell as used-car dealers that don’t wanta vehicle branded because of $1,000 ofdamage to a luxury car’s sunroof orleather seats. Hendler said WMABAtried to point out that today’s vehicleshave far more electronics than cars haddecades ago, and that no consumershould unknowingly buy a vehicle thathas had thousands of dollars in waterdamage. The threshold was raised to$2,500, down from the $3500 pro-posed. The Virginia water damagethreshold had been unchanged since1966. Only Virginia, Washington, D.C.,and Hawaii set thresholds—all at$1,000—on water damage allowed be-fore a vehicle’s title is branded.

The IRS has launched a new programthat will enable many employers to re-solve past worker classification issuesand achieve certainty under the tax lawat a low cost by voluntarily reclassify-ing their workers. The new programwill allow employers to get into com-pliance by making a minimal paymentcovering past payroll tax obligationsrather than waiting for an IRS audit.The IRS says under the VoluntaryWorker Classification Settlement Pro-gram companies will owe about 1 per-cent of wages paid to reclassifiedworkers in the past year, with no inter-est or penalties due. The program is partof a larger “Fresh Start” initiative at theIRS to help taxpayers and businessesaddress their tax responsibilities. Theprogram will allow businesses thathave been improperly labeling theiremployees as independent contractorsto reclassify workers and make only asmall payment to cover past payrolltaxes. To be eligible, a company musthave consistently treated the workers asnon-employees; have filed required1099 tax forms for the past 3 years; andnot be under a worker classificationaudit. Part of the program will be in-creased vigilance about misclassifica-tion of workers in the future.

IRS Offers Employers TaxRelief if Workers Reclassified

NABC Nominees for 2012Board of Directors AnnouncedThe National Auto Body Council(NABC) hasclosed nominations forthe seven 2012 board positions comingopen at the end of this year’s term.Every nominated individual has ex-pressed their interest and desire to workfor the NABC board. They were of-fered the opportunity to participate inthe discussions and approval of theNABC’s new mission and vision state-ments, as well. The candidates arelisted in their order of nomination:Keith Bell, Akzo Nobel; Stacy Bartnik,CARSTAR; Kenneth Seavey, HertzFirst Edition; Mike Jordan, Manches-ter Collision; Karen Fierst; FredIantorno; Jon Faris, Enterprise CarRental; Kristen Felder, Collision Hub;Elizabeth Stein, Fix Auto; David Nie-stroy, 3D Body Works; Richard Perry,Chief Auto Technologies; Mark Lovell,Precision Collision. Based on NABCbylaws, an official ballot will be sent toall NABC members for their consider-ation. The actual election will takeplace at the NABC annual meeting tobe held in the Hilton Hotel in Las Vegason Tuesday, November 1, 2011 at12:30 p.m. concurrent with the SEMAShow. Only Individual members in at-tendance or their designated represen-tative can participate in the vote.

DuPont Custom Finishes (DuPont)will participate at the annual SpecialtyEquipment Market Association(SEMA) tradeshow in Las Vegas, Nov.1–4. DuPont Custom Finishes, ex-hibiting in booth #22789 in Hot RodAlley, Central Hall, will featureDuPont™ Cromax® Pro, Chroma Pre-mier® and Hot Hues™ custom paintproducts. Industry airbrush and pin-stripe artists will be showcasing theirskills with live demonstrations in thebooth using DuPont™ Cromax® Prowaterborne products. Vehicles on dis-play in the booth will include a 2012DuPont Calendar winning ‘61 ChevyImpala, owned by Tim Brown of Jack-sonville, Fla.; a ‘71 Challenger ownedby Bob and Karon Zeitler and paintedby John Riehn of John’s Autobody andPaint. Imperial, Mo.; and a ‘50 Fleet-line built by Tim Strange, owner ofStrange Motion Rod & Custom Con-struction and host of PowerBlock TVseries “Search & Restore.” Strangewill make appearances to sign auto-graphs in the booth 10 am–12 pm onWednesday, Nov. 2 and 1–3 pm onThursday, Nov. 3. More informationabout DuPont’s paint products is avail-able at www.pc.dupont .com or phone1-800-GET-DUPONT.

DuPont Exhibit at SEMA ShowLive Paint Demonstrations


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Despite Poor Economy, AutoSales Remain StrongU.S. auto sales are continuing toslowly recover, says Ford Motor Co.analyst George Pipas. He says Sep-tember auto sales are better than Au-gust at SAAR levels, and will probablybe the best sales month we've seensince April. Pipas doesn't expect salesto drop off much throughout the rest ofthe year, saying we may not see anydrops at all. Incentives are always apossibility, of course, but Pipas doesn'tsee bigger discounts around the cornerjust yet.

Nationwide Insurance BuysHarleysville GroupNationwide Mutual Insurance says itwill acquire Harleysville Group, Inc.,for $760 million in cash. HarleysvilleInsurance has operations in 32 statesand the acquisition will give Nation-wide a greater presence in the Northeastand Mid-Atlantic states, where Harleys-ville's business (75 percent of which iscommercial insurance) is concentrated.The growth also may help Nationwide,the eighth-largest personal auto insurerin the U.S., catch up to USAA in termsof total premiums.

The Houston Auto Body Association re-cently had a shop labor rate survey con-ducted by an independent third-party. Itis now urging shops to notify state in-surance regulators if an insurer is un-willing to pay the shop's posted laborrate by taking a photo of the posted rateand emailing it along with the estimateat the lower rate (with customer andclaim information omitted) to the TexasDOI. "Right now they're just collectingthose and we're laying the groundwork,"said James Brown of HABA.

Houston Auto Body Assn SaysTell TX DOI Your Labor Rates

Polk Execs Speak about theAftermarket at AAPEXSeveral Polk executives will provide af-termarket insight as part of the annualAutomotive Aftermarket Products Expo(AAPEX) Nov. 1–3, 2011 in Las Vegas.Polk presentations will include Polk’sunique perspective and broad expertisein both the OEM and aftermarket seg-ments of the industry. Tim Rogers, Polkpresident, will kick-off the annualAAIA Town Hall meeting with com-ments on five key trends Polk sees af-fecting the automotive aftermarket,Wed., Nov. 2 at 7 a.m. at the Venetian.


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November 1Tuesday / 8amTitle: I-CAR: Plastic and Composite Re-pair (PLA03) / Where: Las Vegas Con-vention Center, N231-242 / I-CAR, theInter-Industry Conference on Auto Col-lision Repair, 2011 SEMA ShowI-CAR,the Inter-Industry Conference on AutoCollision Repair, is returning to theSEMA Show in 2011 with I-CAR train-ing available to attendees each day ofthe SEMA Show

Title: I-CAR: Exterior Panel DamageAnalysis (DAM10) / Where: Las VegasConvention Center, N231-242

Tuesday / 12:30pmTitle: SCRS Repairer Driven Education:Having Your Cake and Eating it Too:Marketing Practices / Repairer DrivenEducation, RDE, SCRS, 2011 SEMAShowSCRS REPAIRER DRIVEN EDU-CATION (RDE) series will feature sem-inar offerings

Title: SCRS Repairer Driven Education:Load Leveling – The Hidden Enabler forShop Performance

Title: SCRS Repairer Driven Education:Understanding Design Based Repairs

Tuesday / 3pm

Title: SCRS Repairer Driven Education:Economic Pricing Considerations forthe Collision Industry in 2012

Title: SCRS Repairer Driven Education:You Don’t Know What You Don’t Know- How New Auto Regulations Impactthe Body Shop

Title: SCRS Repairer Driven Education:Leading for Performance & Profitability

Lean 3.0 = A Practical Path to UsingLean to Improve Process Flow

Wednesday / 3pmTitle: SCRS Repairer Driven Education:Educate NOT Alienate: The Key to Suc-cessful Collision Negotiations (Part II)

Title: SCRS Repairer Driven Education:Design Thinking for the Collision Re-pairer

Title: SCRS Repairer Driven Education:Getting Ready for the Water Wave

try: The wins, the losses and a view ofthe future

Title: SCRS Repairer Driven Education:Achieving Service Excellence (Part I) /Where: LVCC

Thursday / 3pmTitle: SCRS Repairer Driven Education:Achieving Service Excellence (Part II) /Where: LVCC

Title: SCRS Repairer Driven Education:Right and Wrong Ways to Repair NewMetals and their Reactions / Where:LVCC

Title: SCRS Repairer Driven Education:Contracts: Terms and Ties that Bind /Where: LVCC

Thursday / 5:30pmTitle: SCRS Repairer Driven Education:Mission: Control – Flawless Executionin Business Combat / Where: LVCC

Wednesday / 8amTitle: I-CAR: Restraint Systems Dam-age Analysis (DAM11) / Where: LasVegas Convention Center, N231-242

Title: I-CAR: Corrosion Protection(CPS01) / Where: Las Vegas Conven-tion Center, N231-242

Wednesday / 12:30pmTitle: SCRS Repairer Driven Education:Educate NOT Alienate: The Key to Suc-cessful Collision Negotiations (Part I)

Title: SCRS Repairer Driven Education:How to Capture More Cars, Customersand Revenues Through Digital Market-ing

Title: SCRS Repairer Driven Education:

November 2

Thursday / 8amTitle: I-CAR: Steel Unitized StructuresTechnologies and Repair (SPS07) /Where: Las Vegas Convention Center,N231-242

Title: I-CAR: Unitized Structures andFull-Frame Damage Analysis (DAM12)/ Where: Las Vegas Convention Center,N231-242

Thursday / 12:30pmTitle: SCRS Repairer Driven Education:Estimology and P-Page Logic 101

Title: SCRS Repairer Driven Education:A New Legal Era in the Collision Indus-

November 3

Friday / 8amTitle: I-CAR: Advance Material DamageAnalysis (DAM08) / Where: Las VegasConvention Center, N231-242

Title: I-CAR: Recycled Parts for Colli-

November 4


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Autobody News.

At NACE, State Farm Announces Change to Shop Locator to Allow RankingBased on Internal Performance Score, Will Use ‘PartsTrader’ for DRPsState Farm has changed its shop locatorsystem, accessible from its consumerwebsite, to now rank its Select Serviceshops based on current performancescores as assessed by State Farm in thegeographic region the customer selects.Previously the system listed shops inorder based only on proximity to the ad-dress entered.

State Farm’s Claims Consultant,George Avery said that once the systemis fully implemented, if a customer istrying to find a Select Service shopwithin 15 miles of a certain zip code,they will see a list of all Select Serviceshops in that area. The system defaultsat 15 miles, but they can contract theirsearch or expand it up to a 50-mile ra-dius.

The shop with the best score in thearea will be listed first, the shop with thesecond best score will be listed second,and so forth. State Farm said it’s possi-ble the customer would have to advancea page to see the bottom-ranked SelectService shops if the search area is largeenough, but again, all Select Serviceshops in the area specified by the cus-tomer will be shown.

The scores themselves will not beshown on the shop locator, but SelectService shops always have access to

their score and performance data. Ashop’s score, on a scale of 1 to 1,000, isupdated monthly and is establishedusing a proprietary formula that takesinto account the key performance indi-cators State Farm uses to track eachshop’s performance.

Several other features of the repairfacility locator have been modified in aredesign of both Statefarm.com andState Farm’s B2B site for shops.

“We’re not going to list the highestperforming shop that’s 100 miles away,”said Avery. “It’s all pulled from the samesource,” he said. “It’s the same data feedthe repair facility uses. My guess is thatthe day the shops get their update, theymay go to the locator to see where theyfall in the list.”

Avery continued: “We’ve evalu-ated what our capacity needs are basedon the needs of our customers and askedlocal management to use some tools wehave to determine how many SelectService shops they need in their givenmarkets,” he said. “We’re always inter-ested in dealing with high performers.Some repairers have improved, and ifthey have, we encourage them to con-tact local management and share somekey KPIs to give them a sense of howthey’re doing business. And then if there

is a capacity need, local managementwill approach them. Most local man-agement has an ongoing dialogue withmany repairers in their neighborhoodbecause, just because you’re not on Se-lect Service, doesn’t mean you’re notgood. So don’t be offended if there areno openings.”

As far as the electronic parts order-ing system that State Farm is exploring,Avery says they continue to explore thatconcept as they feel it’s in the best in-terests of their customers and repairers.

“We want to be very transparentthat we’re gathering information andvisiting people and getting their input tohelp us build an application,” saidAvery. “We think it will help everyone.”

Insurer will Require ‘PartsTrader’Avery also said that PartsTrader will bethe electronic parts ordering system theinsurer expects it will eventually requireits Select Service shops to use. He saidtesting of the system in several marketscould begin in December. “It’s hard totell for sure, but we would like to getsome testing started before the end ofthe year,” Avery said. PartsTrader hasyet to launch but has a provisional web-site at www.partstrader.us.com. Notethis is not ThePartsTrader.com.


Mitchell RepairCenter™ Standardizes Special Materials RepairData within TechAdvisor, Single Source Access to Multiple OEMsMitchell International, Inc. has an-nounced the integration of its SpecialMaterials Quick Reference Guide intothe RepairCenter™ TechAdvisor autorepair shop software solution. The in-tegration simplifies the structuralidentification process for techniciansby presenting the special materialsdata in Mitchell’s proprietary formatthat remains consistent across the dif-ferent OEM’s.

“Instant access to the SpecialMaterials Quick Reference Guide viaRepairCenter represents the first timethat special materials specificationsare available from multiple manufac-turers in a consistent, user-friendlyformat from a single repair shop solu-tion,” said Jason Bertellotti,Mitchell’s Vice President of RepairSolutions. “This enhancement is justone example of Mitchell’s ongoingcommitment to optimizing the colli-sion repair process. We continue to in-vest in TechAdvisor and find newways to leverage Mitchell’s collisionexpertise to augment the OEM dataand create a truly unique value propo-sition for the collision repair indus-try.”

TechAdvisor’s Special Materi-als Quick Reference Guide helps en-

sure the proper repair of today’s ad-vanced vehicles by identifying andcolor-coding special materials suchas HSS and aluminum consistentlyacross all manufacturers in an easy-to-read format. Color codes indicatethe composition of parts, helpingtechnicians to perform the correct re-pair procedures and estimators to de-termine whether the parts can berepaired or replaced. Collision re-pairers are empowered to morequickly research today’s complexcars and trucks, write more accurateestimates, and ensure proper repairswith the end goal of reducing cycletimes and increasing customer satis-faction.

RepairCenter TechAdvisor is aleading-edge auto repair shop solu-tion that provides a searchable data-base of historical vehicle repairreference data spanning up to 30years and leveraging Mitchell’s 65years of collision industry expert-ise.

For more information aboutTechAdvisor and Mitchell’s otherbody shop software solutions for col-lision repair facilities, call Mitchell at800-238-9111 or visit the website atwww.mitchell.com.

California Man Guilty of SellingCounterfeit ALLDATA ProductsOn June 28, 2011 the ALLDATA Anti-Piracy team in conjunction with theSacramento Valley Hi-Tech CrimesTask Force concluded a six-month in-vestigation into illegally copied ALL-DATA products being sold out ofNorthern California. The subject of thisinvestigation was publicly advertisingthe pirated software in his efforts todistribute it. Undercover officers con-versed with the target who agreed toprovide the illegal product in exchangefor cash. After the actions of the sus-pect placed him in violation of Cali-fornia law, he was taken into custody.The subject is being charged withfelony counts of Possession/Sale ofCounterfeit Articles in reference topenal code 350(A)(2) which statesthat the offense involves 1,000 ormore articles. On July 27, 2011 thesubject pleaded guilty to felonycharges in Superior Criminal Court.ALLDATA has a team that actively in-vestigates the illegal copying, sale anddistribution of its products and workswith law enforcement throughout thecountry to prosecute persons who sellALLDATA products illegally. TheSacramento Valley Hi-Tech CrimesTask Force includes 32 local, state, andfederal law enforcement agencies.

ALLDATA has recently launched up-dates to their shop management sys-tem, ALLDATA Manage. “Theexpanded features and parts catalog in-tegration was in direct response to cus-tomer feedback,” said MarkGunnerson, Director of Sales and Op-erations. ALLDATA Manage key fea-tures include:● Integration with major parts cata-logs: AutoZone, Internet Auto Parts,WHI Solutions/Nexpart, Autoi, Acti-vant and WorldPac● Expanded online ordering providessingle click stock checks, pricing andparts order processing● Easy to use catalog setup and view-ing● AutoZone parts images, specifica-tions and availability● Improved product speed and per-formance“Integration with leading parts catalogshas significantly lifted sales for bothALLDATA and our affiliated partssuppliers,” said ALLDATA PresidentJeff Lagges. “Ordering parts online issuch a huge timesaver for shops. Intoday's competitive business environ-ment, it is critical for shops of all sizesto lower expenses through efficiencies.Our system is designed to do just that.”

ALLDATA Expands Integrationwith Electronic Parts Catalogs


Chrysler to Invest $165 Million in Body Shop at MI PlantChrysler Group plans to invest $165million to build a new 1 million-square-foot body shop at its assemblyplant in Sterling Heights, MI, accord-ing to reporting by Bradford Wernle inAutomotive News.

The body shop will begin produc-ing Chryslers next generation of mid-size sedans in 2013, said Chryslerspokeswoman Jodi Tinson. The plantcurrently builds Chryslers two mid-size sedans: the Chrysler 200 andDodge Avenger.

The announcement marks thesecond major investment in the Ster-ling Heights plant. This follows anannouncement in December 2010that the company would spendnearly $850 million to build a newpaint shop for the plant. ChryslerGroup has now invested nearly $3.5billion in its U.S. plants since June2009.

To some Chrysler employees,the Sterling Heights factory has cometo symbolize the company’s come-back story. Before Chrysler’s 2009bankruptcy, previous owners Cer-berus Capital Management had de-cided to close the Sterling Heightsplant, but Chrysler CEO Sergio Mar-chionne changed course and decidedto keep it open.

“Today marks another milestonein the rags-to-riches story of the Ster-ling Heights Assembly Plant,” ScottGarberding, Chrysler senior vice pres-ident of manufacturing, said in a pre-pared statement.

“A plant that was slated to closenearly two years ago will now be astate-of-the-art facility that will play anintegral role in the success of this com-pany by building the next generation ofall-new vehicles.”

The vehicles will be built on aFiat front-drive platform adapted forthe U.S. market.

The investment includes theconstruction of the new body shop aswell as the installation of equipmentand conveyors that will be some ofthe most advanced in the industry.Tinson said the new body shop wouldreplace the factorys current bodyshop, which will be “repurposed” foranother use. There will be no net gainin terms of jobs, she said. SterlingHeights now employs 2,524 workerson two shifts.

General Holiefield, vice presidentof the UAW/Chrysler Department,praised the news in a statement, sayingthe project “recognizes the commit-ment and dedication of this highlyskilled workforce.”

The diminutive Fiat 500 received a toprating from the Insurance Institute forHighway Safety. IIHS said the 2012500 Sport two-door had earned goodmarks for front, side rollover and rearcrash evaluations.

Results reflect performance incrashes that would occur with similar-sized vehicles. The only other mini carto earn similar scores was Ford MotorCos Fiesta. The top score for frontcrash resistance was earned during aretest in August after Fiat/Chryslermodified front seating to make it moresecure, the IIHS said. Chrysler iscounting on the hatchback 500 andother fuel-efficient vehicles to reviveits lineup, which is dominated by pick-ups and other light trucks.

The IIHS assesses a range ofmodels each year. Underwritten by theinsurance industry, the institutes ratingsare closely followed by automakers,consumer groups and safety regulators.

Fiat 500 Top IIHS Safety Pick

Donald F. Flynn, Founder and Chairmanof the Board of Directors of LKQ Corp.,passed away on October 10, 2011. “Weare saddened by the loss of a great leaderand friend to so many. Don’s vision andleadership were key to the amazinggrowth LKQ has witnessed since 1998,the year the Company was founded. TheCompany and our shareholders oweDon a debt of gratitude for his dedica-tion to LKQ. Our thoughts and prayersare with his family and friends,” statedJoseph Holsten, Vice Chairman and Co-CEO of LKQ.

Daimler AG has relieved Ernst Lieb ofhis duties as CEO of Mercedes-BenzUSA, effective immediately. Even insid-ers were taken by surprise, and they be-lieve the decision must be somethingpersonal since MBUSA has been grow-ing steadily under Lieb’s watch. Thecompany said that “daily business oper-ations of MBUSA will be conducted byHerbert Werner (CFO and Vice Presi-dent Finance, Controlling & IT) untilfurther notice.” Mercedes has strength-ened its sales position in the last twoyears, becoming the No. 2 luxury brandbehind Lexus in 2009 and 2010.

LKQ Founder Donald E.Flynn Passes Away

MBUSA CEO Lieb Ousted

On April 4th, 2011, the Society ofCollision Repair Specialists (SCRS)and 26 of its Affiliate Associations is-sued a letter to the ten EnvironmentalProtection Agency (EPA, Agency) re-gional offices, requesting clarificationon their interpretation and intendedenforcement of exemptions listed inthe EPA rule Subpart HHHHHH- Na-tional Emissions Standards for Haz-ardous Air Pollutants: Paint Strippingand Miscellaneous Surface CoatingOperations at Area Sources (Rule6H.)

In addition to expressed concernthat the rule as written “invalidatespollution controls based solely on thesize of tool being used rather than theamount of pollution being generated,”the letter specifically requested a re-sponse from the EPA on three items:1. A documented response regardingthe exemption for coatings appliedwith a paint cup equal to or less than3 fluid oz., and clarification that therule applies to the type of work beingperformed.2. A documented response that a 3fluid oz. cup cannot be used and re-

peatedly filled to circumvent the rule.3.Clarification that while a businessapplying coatings may be exemptfrom Rule 6H by meeting certainstated requirements, the exemptiondoes not negate other additional regu-latory requirements (such as OSHA,local zoning codes or fire ordinances)that may prohibit spraying flammablesolvent or coatings with HazardousAir Pollutants (HAPs) outside of acontained environment.

In a response letter received bySCRS and issued by the EPA AirBranch, Monitoring, Assistance andMedia Programs Division, it was clar-ified that the 3oz cup was indeed de-fined by the Agency as a way todistinguish conventional collision andvehicle repair from “operations thatperform vehicle repairs of small stonechips and scratches.” The letter con-tinues to point out that both “mobileoperations and conventional collisionrepair shops are subject to the rule re-quirements for training, spray equip-ment, and the use of a spray booth orother ventilated and filtered enclo-

EPA Federal Office Response toSCRS Letter on 6H Rule

See 6H Rule, Page 70

SEMA is just around the corner andmany of you will be attending the tradeshow and SCRS repair-driven educa-tion. I am teaching a class on how gov-ernment regulations will impact thecollision industry right now, but forthose who cannot attend, I am going tohighlight my presentation here. Let’slook at the US Government CAFÉ(corporate average fuel economy)standards. By the year 2015, the CAFÉstandard for the industry (cars andtrucks combined) is 31.6 MPG (35.7for cars and 28.6 for trucks). How willthese standards affect body shops?

First, cars will need to get lighterand smaller. The use of aluminum willincrease. You will see more hoods,deck lids, fenders and other body partsbeing made from aluminum. Manyaluminum hoods are double paneledwith virtually no access to the backside. Most shops today do not the ca-pability to repair this type of damage.What is needed is an aluminum studgun.

The unit pictured first comes withthe stud gun and a number of handtools for repairing aluminum. The ma-chine pictured second is just the studgun with the puller. You will need toinvest in hand tools because aluminumtools can’t be used on steel compo-nents because of the likelihood of gal-vanic corrosion. Dent Fix, ReliableAutomotive Equipment and ProSpotare a few examples of companies thatsell aluminum repair equipment. You

will also need to invest in training. Re-pairing aluminum is not difficult, butthere are a few techniques that need tobe learned to achieve a successful re-pair.

You will also see smaller vehi-cles. With smaller cars, you will see anincrease in the use of ultra highstrength steels in cabin reinforcementsfor passenger protection. Nearly allmanufacturers require full replacementof these reinforcements and that willlead to more total losses. Let’s look atFederal Motor Vehicle safety standard216A.

FMVSS 216A deals with roofcrush. The standard for 2009 was 2.5times Gross Vehicle Weight. In otherwords, if a car weighs 2000 pounds,the roof would need to support 5000lbs. The Insurance Institute for High-way Safety did not think the 2.5 stan-dards were sufficient, so they set astandard for 2009 at 3 times GVW and4 times GVW by 2012. To gain a 5 starrating, the vehicles manufacturers hadto increase the strength of the ‘B” pil-lar reinforcements. How does this in-creased strength affect the collisionindustry?

The first thing that comes to mindis the need for OEM data. You cannotdo structural repairs or structural partsreplacement without it. For example,you can section a “B” pillar on (lowerportion) on a Toyota Venza, but youwill need to replace the entire rein-forcement on a Toyota Camry.

The following page was takenfrom Toyota’s Technical InformationSystem or TIS for short. The sheetshows where to section and the type ofwelds that are needed for a quarterpanel replacement. You can subscribeto TIS or you can subscribe to ALL-DATA (they obtain the OEM data foryou).

While at SEMA, check with the

OEMs for their current data (most ofthe time they make it available free) orcheck out ALLDATA. It is another in-vestment that any body shop will needmake. The stronger reinforcementshave also created a need for pre-mea-suring for damage analysis.

Besides the roof crush, thesesuper strong reinforcements are de-

signed to transfer energy and deform.This energy will travel to the oppositeside of the vehicle and, if not measuredbefore an estimate is written, can leadto all kinds of problems. The “B” pil-lar on the opposite side of the car canmove (side impact), but the floor maynot and this can lead to all kinds of im-proper fit issues. You will need to lookat measuring systems that can measure“A” and “B” pillars without placing avehicle on a frame machine.


Choose Original MINI Parts.Because you can’t repairyour reputation.

YOU ONLY GET ONE CHANCE AT THE FIRST REPAIR.

These Dealers Below Are Original MINI Parts Distributors:

S Hardtop 2011

South Bay MINITorrance310-939-7342310-939-7343

California

Nick Alexander MINILos Angeles800-800-NICK323-583-4109 Directwww.alexandermini.com

Tech Notes

National News in BriefWEB WINDOW: - www.autobodynews.com

Regional News in BriefWEB WINDOW: - www.autobodynews.com

with Jeremy HayhurstPublisher’s Page

with Karyn HendricksShop Showcase

with David M. BrownShop Showcase

Shop Showcasewith Jeremy Hayhurst

Hey Toby!with Toby Chess

California Autobody Associationwith David McClune

Collision Repair Association of CA.with Richard Steffen

Insurers Excel at Steeringwith Richard Steffen

Year in Quoteswith John Yoswick

Transition Planningwith John Yoswick

Mainstream Media

My Turnwith Joe Momber

Toby Chess is an I-CAR program instructor, Welding specialist, and former salvage yardoperator. Toby is universally known in the collision industry for his charitable works,worthy causes, and magic tricks. He can be reached at [email protected]

SEMA’s Repair Driven Education and Government Regulations

Some of the manufactures thatmake this type of equipment are,Celette, Car-O-Liner, The CollisionEquipment Group and Chief Automo-tive Equipment. You see all of thesemachines at SEMA. Still dealing withthe stronger “B” pillars, you will need

to invest in an inverter spot welder.Ultra High Strength steels are verysensitive to heat. MIG welding pro-duces a large heat affected zone.

The weakest part of the weld is inthe heat affected zone. The tempera-ture when MIG welding can approach

2000 degrees Fahrenheit and UHSSsteel becomes mild steel at that tem-perature. It’s weaker and it loses all ofits energy transfer properties. A spotweld, on the other hand, has a verysmall heat affected zone.

Inverter Spot welding machineshave computers to reduce the heat af-fected zone on HSS and UHSS metals.

Manufacturers of these smart ma-

chines include Car-O-Liner, Elektron,Wielander+Schill, Tecna, and Com-puSpot. Besides being able to producea smaller heat affected zone, comparedwith their predecessors, they are fullyautomatic and can keep records on thewelds for each repair job. But don’trun out and buy one without doingyour homework. First and foremost,you will need to check your electricalsupply. These machines only work on3-phase power. They also require largegauge wires (minimum of 4 gauge isrecommended) due to the increase inamps that is needed. Again, before youpurchase one of these “bad boys,’ getthe electrical needs and consult with a

qualified electrician. One more item pertaining to side

impact, is the side curtain. Side cur-tains will be mandatory on all vehiclessold in the United States by the year

2013. With more vehicles with sidecurtains, knee bolsters, and betweenseat air bags, the cost of repairs isgoing to skyrocket and that will in turnlead to more total losses. Moreover,with a number of insurance companiesnot paying sublet markups (they arenow calling them handling fees), youbetter start doing the work yourself.That translates into more training andequipment.

A scan tool will be needed to resetthe codes on the SRS system. Youneed this tool to clear the codes on theoccupant classification system, when

you R&I the front passenger seat. Youwill need this tool to reset the steering-angle sensor.

Let’s review the SAS. The gov-ernment has mandated all vehicles bythe year 2012 have some sort of elec-tronic stability system. Part of that sys-tem is the steering angle sensor. Thesteering angle sensor counts the steer-ing-wheel revolutions accordingly.The overall steering wheel angle isthus made up of the current steeringwheel angle together with the numberof steering wheel rotations. If a cor-rection is needed, the ABS is activatedand/or the engine is retarded to slowthe vehicle down to prevent skids androllovers. Every time an alignment isneeded, a complete 4 wheel alignmentis done followed by a recalibration ofthe steering angle sensor. If this is notdone, the ESC may not work properly


Heat Affected Zone

Heat Affected Zone

See Hey Toby!, Next Page

The newest member of the AutobodyNews Distinctive Dealerships Groupis Audi-Mission Viejo in SouthernCalifornia. A relatively new dealer,only seven years old, Audi-MissionViejo has managed to thrive by alwaysputting quality first.

Quality is in all areas of the partsdepartment. Justin Stinnett is a partsdirector who knows how to makequality pay off. Justin began only twoyears ago, with a bloated inventoryand untrained personnel. He needed

all of his twenty years experience tochange that. Since then, there has beena steady rise to the top and is one ofthe best Audi parts departments in theregion. His secret has been to insist onquality. Quality means the newest andbest available technology for his de-

partment, and the best employees hecan find.

Justin’s investments in technologyinclude state-of-the-art inventory con-trol, and a simple and easy internetorder system. Audimv.com is a goodexample of how to set up a simple on-line parts link. A well organized depart-ment holds over a half-million dollarinventory, and a modern communica-tions system completes the basics.

Justin has four quality counter-men, led by Armando with twenty

years experience,then Henry andRobin with eightyears, and Mariowith six. A bilin-gual crew workswell in the south-ern Californiamarket, languageissues are noproblem. Thisteam works to-

gether with common goals, to keeptheir department the best in the region.Their efforts have been rewarded,their wholesale business has tripled!

Customer service is the standardhere, promises are kept, and orders arealways completely filled. Such serv-

ice creates the friendships and loyaltyso necessary to success in these times.

Justin sees himself as a business-man, instead of a parts man, and re-gards the changes he has made asinvestments, not expenses. He believes“You get what you pay for. And if youhave great people, you will achievegreat results.” Results, for a dealer,equal profits. This parts departmentcreates profit, which is exactly my phi-losophy. With proper management, theparts department will be a dealership’sbest investment, not its worst.

Again, no dealership can succeedwithout support. Audi is a companythat wants to have the best parts de-livery system possible. They have in-stituted a “local parts council,” whichmeets quarterly, to communicate withdealers and ensure a smooth flow ofparts to all of their customers. Audirecognizes Justin’s hard work, and haschosen him for membership in their

council. When important visitors ar-rive from Germany, Audi-MissionViejo’s parts department is on theirtour, as an example of growth, organ-ization, and cleanliness.

An aside to all body shops in theMission Viejo area… Should youneed any parts for an Audi, call Audi-Mission Viejo. You are guaranteed toget great service, and I am proud to in-clude them in my list of DistinctiveDealerships.

In other areas, I’d also like to rec-ommend Audi of Downtown LA in LosAngeles and Circle Audi in Long Beach.

To see all of Larry Williams’ arti-cles go to autobodynews.com and se-lect Williams under the Columnistsmenu. See also Larry’s popular seriesof Parts for Profit articles in his col-umn section. You can also link di-rectly at: www.autobodynews.com/columnists/williams-larry.html


AudiGenuine Parts

Order Audi Genuine Parts from these select Dealers

Nothing else measures up.

Audi ofDowntown LALOS ANGELES213-747-7248213-222-1261 FaxAsk for Carlos or Fausto

Circle AudiLONG BEACH800-675-2472562-597-2854 FaxAsk for Eddie or Nate

So. California

with Kathy Steck-FlynnAutobody CSI

with Dan EspersenALL OEM Information

with Tom McGeeALL OEM Information

with J.R. CarlsonConsumer Callout

Automaker Actions and Announcementswith Jeremy Hayhurst

Autobody Techwith Jeremy Hayhurst

Parts Profileswith Larry Williams

Automaker Actions and Announcementswith Janet Chaney

I-CAR Tech

Amaradio Explains CRAwith Lee Amaradio Jr.

Consumer Callout

The Right Causewith Mike Causey

with Ed AttanasioShop Showcase

Say What?!

Larry Williams is an innovative parts manager with national awards and over 30 years of experience increating and managing profitable departments. He can be reached for consultation at [email protected] read all his columns go to http://www.autobodynews.com/columnists/williams-larry.html

A Relatively Young Audi Dealership Makes Quality Pay Off

or, even worse, not at all. Most sys-tems will not show a fault code on thedash, therefore, a scan tool will beneeded to reset the steering angle sen-sor. A couple of other governmentalitems that are on the horizon that youshould be aware of are the new Freonrefrigerant—HFO-1234yf and, ofcourse, waterborne paints for those notyet mandated.

HFO-1234 yf is a new type ofFreon that is now being used in Eu-rope. GM will be using it on their U.S.vehicles next year. This new Freon ismuch safer to the environment than134A. You will have to invest in a newrecovery system, leak detection equip-ment, and new manifolds.

Many states have mandated theuse of waterborne paints in areas of

poor air quality. It is only a matter oftime before the paint companies willswitch entirely to waterborne so, ifyou’re not already there, you better geton-board soon. You will have to retrainyour paint staff and invest in newequipment. It is easier to do it now andnot when it is mandated. Where areyou going to get the money to pay forall of this equipment?

It comes from profits and everytime you give something away, youare making a lot less in profits. I sug-gest that you visit the Society of Col-lision Repair Specialists web site(scrs.com). Scroll to the center of thepage and click on the Guide to com-plete repair planning. There are over800 not-included items on their esti-mating guide and by adding a few ofthese items to all your estimates; youcan achieve some higher profits. Thebest part of all, it is free for everyone.Enjoy SEMA, I know I will.


Hey Toby!

Unless specifically recommended bythe vehicle maker, parts with a tensilestrength over 600 MPa should only bereplaced at factory seams. This is just

one of the “best practices” identifiedat a Repairability Summit hosted by I-CAR earlier this year. Summit atten-dees consisted of subject matterexperts from vehicle makers, tool andequipment makers, collision repair fa-cilities, insurance companies, and theAmerican Iron and Steel Institute.

The primary intention of thesummit was to identify best practicesfor working with ultra-high-strengthsteels (UHSS) and the new construc-

tion methods found on latemodel vehicles. In February2012, I-CAR will premiereits Best Practices for High-Strength Steel Repairs(SPS09) course, highlightingissues covered during theSummit and other best prac-tices.While vehicle maker recom-

mendations should be fol-lowed first and foremost,

these best practices can be leveragedwhere none exist. For example, whilethere’s a lot more information on steelstrengths in the vehicle service infor-mation with each new model year,sometimes the information is notthere. Summit attendees discussedvarious tests the technician can per-

form in the repair facility that helpidentify if the steel is mild, HSS, orUHSS (see Figure 1).

Knowledge GapTo prepare what information wouldbe discussed at the summit, I-CARconducted a survey of tech-nicians in the field, askingwhat kind of informationthey would like to see fromI-CAR in a future course onthe subject of advancedconstruction. The survey re-vealed a lack of informationamong technicians actuallymaking the repairs, and adefinite need for a courseaddressing the subject.

Summit DiscussionsThe agenda for the summit was laidout like a repair plan. After the dis-cussion on steel strength identifica-tion, the group discussed bestpractices for anchoring and pullingand different removal methods. Thecreated heat-affect zone from heatingand removal methods was a major dis-cussion point (see Figure 2).

A discussion on attachmentmethods focused on GMA (MIG)welding heat-effect on UHSS, thechanges in spot weld machine set-

tings, and how destructive testing ofspot welds differs on UHSS panelscompared to HSS or mild steel.

Somewhat new attachment

methods like MIG brazing and self-piercing rivet bonding were dis-cussed, including the applicationswhere they are recommended andpossible future uses (see Figure 3).

To facilitate the conversation,I-CAR brought in two vehicles with

similar side damage. The vehicleswere of the same make and model,and even though separated by onlyone model year, the later modelcontained significantly more UHSScompared to the previous model.The two vehicles were used to iden-tify the necessary changes in re-pairs due to more use of UHSS.

SummaryIt became clear during the recent I-CAR Repairability Summit that vehi-cles cannot be repaired using the same

repair methods that were ac-ceptable just a few years ago.

Industry experts that at-tended the Summit addressedthese issues and agreed on alist of best practices that canbe used when vehicle makerrepair information does notexist. The list will be avail-able in the Best Practices ForHigh-Strength Steel Repairs(SPS09) course premiering inFebruary 2012.

Watch a video describing some ofthe highlights on the Best PracticesFor High-Strength Steel Repairs(SPS09) course at www.i-car.com.


THESE DEALERS ARE GENUINE WHOLESALE PARTS SPECIALISTS.

CALIFORNIA

Elk Grove ToyotaELK GROVE

916-405-4700800-952-5307916-405-8045 FaxMon. - Fri. 7am - 7pm;

Sat. 8am - 5pmwww.elkgrovetoyota.com

I-CAR Repairability Summit: Don’t Section Ultra-High-Strength Steel

with Kathy Steck-FlynnAutobody CSI

with Dan EspersenALL OEM Information

with Tom McGeeALL OEM Information

with J.R. CarlsonConsumer Callout

Automaker Actions and Announcementswith Jeremy Hayhurst

Autobody Techwith Jeremy Hayhurst

Parts Profileswith Larry Williams

Automaker Actions and Announcementswith Janet Chaney

I-CAR Tech

Amaradio Explains CRAwith Lee Amaradio Jr.

Consumer Callout

The Right Causewith Mike Causey

with Ed AttanasioShop Showcase

Say What?!

This article first appeared in the I-CAR Advantage Online, which is published and distrib-uted free of charge. I-CAR, the Inter-Industry Conference on Auto Collision Repair, is anot-for-profit international training organization that researches and develops qualitytechnical education programs related to collision repair. To learn more about I-CAR, andto subscribe to the free publication, visit http://www.i-car.com.

Figure 1 - Industry experts discuss steel identification

Figure 2 - Industry experts discuss anchoring andstructural straightening of UHSS

Figure 3 - Industry experts discuss MIG brazingapplications

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sures,” and that while “the 6H ruledoes not extend to spray-applied coat-ings applied from a hand-held devicewith a paint cup capacity that is equalto or less than 3.0 fluid ounces, theAgency may find that persons whorepeatedly refill and use a three ouncecup, as a means of avoiding rule ap-plicability, are attempting to circum-vent the 6H rule...and reserves theright to bring enforcement actionsagainst any person whose actionequates to rule circumvention.”

“We are pleased that the EPA hasresponded with a clear and concisemessage that collision repairers andmobile operators alike will be held tothe same regulatory requirements asit relates to the 6H Rule,” statedSCRS Chairman Aaron Clark. “Intheir response, the EPA Office has

made it clear that much of the rule en-forcement is based on intent. In somecases the use of the 3.0 ounce cupmay be a necessity of the job beingperformed, but it is clear to us that theEPA offices will not accept inten-tional circumvention of the rule byhabitually “fragmenting paint jobsinto smaller tasks” or “refilling 3.0ounce cups in an effort to avoid regu-lation.” This is the basic clarificationwe were looking for, and anticipatethat this will provide solid informa-tion for shops.”

One additional point of clarifica-tion offered by the EPA letter con-firmed that “the 6H rule does notnegate other regulatory requirements(such as federal or local occupationalhealth and safety requirements, localzoning codes, or fire ordinances) thatmay prohibit or restrict sprayingflammable solvents or coatings con-taining HAPs within or outside of acontained environment.”

To view the full letter provided tothe ten EPA regional offices and the EPAofficial response follow these links:h t t p : / / w w w . s c r s . c o m / p d f -news/EPA%20Regions%203oz%20Rule%20%20FINAL%20FOR%20WEBSITE.pdfhttp://www.scrs.com/pdf-news/6H-rule.PDF

Additional information is availableat the SCRS Web site: www.scrs.com.You can e-mail SCRS at the followingaddress: [email protected].


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6H RuleWorld’s Oldest Running CarFetches High Price at PA AuctionThe oldest existing car in the world, an1884 De Dion Bouton Et TrepardouxDos-A-Dos Steam Runabout, was soldat auction for 4.62 million dollars at Oc-tober’s RM Auctions sale in Hershey,PA. The car, named La Marquise, set arecord price for vintage vehicles. Theoldest car was put up for an Americanauction house RM Auctions. Auctionorganizers hoped to gain for rarity 2-2.5million dollars. the auction house didnot disclose the La Marquise Buyer’sname , who became the fifth owner ofthis car in its history. The first owner ofLa Marquise was a French nobleman,Count de Dion, who took part in its cre-ation. In 1906 De Dion sold the car tothe French army officer Henri Doriolyu,whose family has owned La Marquiseuntil 1987. The next owner was a mem-ber of the British club classic cars, TimMoore , who restored the car and took itto fully operational status. In 2007, LaMarquise was sold to a collector fromTexas, John O’Quinn.

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Autobody News November 2011 Western Edition