48
Autobody News asked former State Farm Estimatics Team Manager Steve Plier about his thoughts on PartsTrader earlier this month. Plier worked for State Farm for more than 22 years, starting out in 1987 as a property dam- age claim representative handling auto claims, and in 1993, he moved into a supervisory position where he spent the last 13 years of his State Farm career as an estimatics team manager. Today, Steve Plier is president of Consumer Auto Repair Excellence, Inc. (CARE). ABN: Why did you quit State Farm? Plier: I resigned my position at State Farm because my responsibilities were being defined as ‘manage in a The Georgia Collision Industry Asso- ciation met on Sept. 20 and hosted guest speaker George Avery, State Farm’s claims consultant. Avery gave information about the PartsTrader parts procurement pilot program to a crowd of approximately 130, some of whom had traveled to the meeting from Birm- ingham, AL, one of the test markets. “Mr. Avery gave an overview of the PartsTrader program and why they started the pilot program,” said GCIA Executive Director Howard Batche- lor. “He said that they spend roughly $3 billion a year on parts and needed a way to control the cost. The meeting was mainly subdued until the Q&A session at the end. Many of the atten- dees wanted to know how this benefits the shops. There [was concern about] additional administrative duties for both the suppliers and the shops.” Avery also talked about some of the enhancements State Farm has cre- ated since the pilot began. “The esti- mating systems have created an interface that will update the prices on the estimate. They have also cut the time to respond from two hours down to 30 minutes. Several shops from Alabama also attended and said that PartsTrader needed to work out some of the bugs George Avery Spoke on PartsTrader to GCIA Sept. 20: Parts Margins “Not Guaranteed to Remain” As Are Former State Farm Claims Rep, Steve Plier, Now Consultant, Talks ‘PartsTrader’ See Avery to GCIA, Page 46 See Steve Plier, Page 12 NACE 2012 in New Orleans Attendance was down on the show floor but some booths attracted record business. ALLDATA’s Dan Espersen imparts his 37 plus years of experience in “OEM Best Practices.” CARS chair Bill Moss (l) and NACE chair, Ron Nagy, address the opening session. Mike Dolabi (l) of National Autobody Parts Warehouse and Terry Fortner of LKQ on the Parts Panel discussion. Dick Cross, keynote speaker at the opening session, demonstrates the pyramid top of the organization. See story p. 36. A New Orleans-style National Anthem kicked off the keynote address. New Orleans appears to have recovered its pre-Katrina spirit. AEII’s Tony Passwater presented on designing and implementing a complete repair plan. The Autobody News staff doing its part to cover the industry. Southeast Edition Florida Georgia Alabama Mississippi YEARS www.autobodynews.com 31 31 31 ww.autobodynews.com ww VOL. 3 ISSUE 9 NOVEMBER 2012 Presorted Standard US Postage PAID San Bernardino, CA Permit #2244 P.O. BOX 1516, CARLSBAD, CA 92018 Change Service Requested

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Page 1: November 2012 Southeast Edition

Autobody News asked former StateFarm Estimatics Team Manager StevePlier about his thoughts on PartsTrader

earlier this month. Plier worked forState Farm for more than 22 years,starting out in 1987 as a property dam-age claim representative handling autoclaims, and in 1993, he moved into asupervisory position where he spent thelast 13 years of his State Farm career asan estimatics team manager. Today,Steve Plier is president of ConsumerAuto Repair Excellence, Inc. (CARE).

ABN: Why did you quit State Farm?Plier: I resigned my position at StateFarm because my responsibilitieswere being defined as ‘manage in a

The Georgia Collision Industry Asso-ciation met on Sept. 20 and hostedguest speaker George Avery, StateFarm’s claims consultant. Avery gaveinformation about the PartsTrader partsprocurement pilot program to a crowdof approximately 130, some of whomhad traveled to the meeting from Birm-ingham, AL, one of the test markets.

“Mr. Avery gave an overview ofthe PartsTrader program and why theystarted the pilot program,” said GCIAExecutive Director Howard Batche-lor. “He said that they spend roughly$3 billion a year on parts and needed away to control the cost. The meetingwas mainly subdued until the Q&A

session at the end. Many of the atten-dees wanted to know how this benefitsthe shops. There [was concern about]additional administrative duties forboth the suppliers and the shops.”

Avery also talked about some ofthe enhancements State Farm has cre-ated since the pilot began. “The esti-mating systems have created aninterface that will update the prices onthe estimate. They have also cut thetime to respond from two hours downto 30 minutes.

Several shops from Alabama alsoattended and said that PartsTraderneeded to work out some of the bugs

George Avery Spoke on PartsTrader to GCIA Sept. 20:Parts Margins “Not Guaranteed to Remain” As Are

Former State Farm Claims Rep, Steve Plier,Now Consultant, Talks ‘PartsTrader’

See Avery to GCIA, Page 46

See Steve Plier, Page 12

NACE 2012 in New Orleans

Attendance was down on the show floor butsome booths attracted record business.

ALLDATA’s Dan Espersen imparts his 37 plusyears of experience in “OEM Best Practices.”

CARS chair Bill Moss (l) and NACE chair, RonNagy, address the opening session.

Mike Dolabi (l) of National Autobody PartsWarehouse and Terry Fortner of LKQ on theParts Panel discussion.

Dick Cross, keynote speaker at the openingsession, demonstrates the pyramid top of theorganization. See story p. 36.

A New Orleans-style National Anthem kickedoff the keynote address. New Orleans appearsto have recovered its pre-Katrina spirit.

AEII’s Tony Passwater presented on designingand implementing a complete repair plan.

The Autobody News staff doing its part tocover the industry.

SoutheastEdition

FloridaGeorgia

AlabamaMississippi YEARS www.autobodynews.com

313131ww.autobodynews.comww

VOL. 3 ISSUE 9NOVEMBER 2012

Presorted StandardUS Postage

PAIDSan Bernardino, CA

Permit #2244

P.O. BOX 1516, CARLSBAD, CA 92018

Change Service Requested

Page 2: November 2012 Southeast Edition

2 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Page 3: November 2012 Southeast Edition

REGIONALAlabama Repairers Forming NewCollision Association . . . . . . . . . . . . . . . 4

AutoBody America Opens 20th Locationin Mid-South . . . . . . . . . . . . . . . . . . . . . 4

Collision Repair Industry Loses aLegend and a Friend. . . . . . . . . . . . . . . 10

Collision Repair Tech Students ReceiveScholarship . . . . . . . . . . . . . . . . . . . . . 28

Drive Automotive Invests $50 Millionin SC Facility . . . . . . . . . . . . . . . . . . . . . 4

English Color Acquires Stores . . . . . . . . . . 4GCIA Holds Golf Tournament in Atlantaon October 3 . . . . . . . . . . . . . . . . . . . . . 4

GCIA Succeeds in Getting Allstate toReverse Decision on Sales TaxReimbursement . . . . . . . . . . . . . . . . . . . 6

Inventory and Family: The Keys toSuccess for Jim Ellis Hyundai . . . . . . . . 8

Pink Car Tribute to Breast Cancer Survivors . 6Prestige Auto Body Custom BuildsUnique Bra Bank . . . . . . . . . . . . . . . . . 35

COLUMNISTSAttanasio: The Original Social Media, andMost Important, is the Phone Call . . . . 30

Franklin: The New Co-Op Marketing . . . . . 34Gesterkamp: E-Coated Parts Procedure . . 18Insider: Clean Up Your Own House BeforeYou Gripe About Someone Else’s . . . . . 28

Sisk: CCRE’s Fall Seminar CoversAdhesion, Warranties, and Much More. 14

Sisk: The NitroTech Spray GeneratorControls the Uncontrollable . . . . . . . . . . 7

Yoswick: NACE Keynote Speech Focuseson Thinking about Business . . . . . . . . . 36

NATIONALAAIA Expresses Support for WTOActions on China . . . . . . . . . . . . . . . . . 29

Advance Auto Parts Helps Raise$2M for Charities . . . . . . . . . . . . . . . . . 29

AkzoNobel Secures McLaren AutomotiveSupply Agreement . . . . . . . . . . . . . . . . 29

ALLDATA Shows Off New ComplianceTool at NACE . . . . . . . . . . . . . . . . . . . . 47

American Honda Launches ProFirstShop Recognition Program . . . . . . . . . 23

ASA’s Caspersen Comments onPartsTrader Meetings . . . . . . . . . . . . . . 41

ATI Expands Curriculum to IncludeCollision Repair . . . . . . . . . . . . . . . . . . 29

Automaker, OEM and Recall News . . . . . . 26AZ Shop Owner Arrested inDisappearance of Partner. . . . . . . . . . . . 3

BASF Showcases Newest Additions toVisionPlus Online Tools at NACE . . . . . 42

Car-O-Liner to Lead Training at SEMA 2012 . 4Carroll Shelby Foundation UnveilsSignature Program. . . . . . . . . . . . . . . . 17

CARSTAR Recognizes OutstandingPerformers . . . . . . . . . . . . . . . . . . . . . 31

CCC Releases 2012 Crash Course Report . 31CCC Says it Has Converted 17,000Shops to new CCC ONE. . . . . . . . . . . . 35

Copart Says It is Posting BalancedVolume Gains . . . . . . . . . . . . . . . . . . . 47

DEG & the Keys to Successful EstimatingPresented in New Orleans . . . . . . . . . . 45

Don Porter Joins United RecyclersGroup (URG) . . . . . . . . . . . . . . . . . . . . 31

DPC Launches New Catalog. . . . . . . . . . . 45Dykstra Automotive Institute SurveyIdentifies Broad Industry Concernsin 2013 . . . . . . . . . . . . . . . . . . . . . . . . 40

East Bay CAA Members Get Schooledat University of Toyota . . . . . . . . . . . . . 20

Education Foundation Gets 70Makeover Applications. . . . . . . . . . . . . 31

Enterprise Supports Bill to Get UnsafeRental Cars Off the Road . . . . . . . . . . . 41

Esurance recognizes Three CARSTARshops with awards. . . . . . . . . . . . . . . . 43

Greg Coccaro Wins Significant Appealfrom Progressive Insurance . . . . . . . . . 17

Honda Develops New Welding Technology, UHSS Structure for 2013 Accord . . . . . 22

How to be a ‘Courageous Leader’Presented at NACE. . . . . . . . . . . . . . . . 43

I-CAR courses now online . . . . . . . . . . . . 45Insurers Talk MSOs, Consolidation,the Cloud, and Tech Trends . . . . . . . . . 32

John Shoemaker Coaches Shopsto ‘Negotiate for Success’ . . . . . . . . . . 40

Kelley Blue Book: September VehicleSAAR is 14.3M . . . . . . . . . . . . . . . . . . 39

Martin Senour Kicks Off 4Q TrainingProgram . . . . . . . . . . . . . . . . . . . . . . . 43

Matrix Electronic Measuring, Inc.Awarded Two Patents. . . . . . . . . . . . . . 22

Mitchell Adds New Insurance Client,Affirmative, to Roster . . . . . . . . . . . . . . 35

NABC Gifts 6 Vehicles to NeedyNew Orleans Families at NACE . . . . . . . 44

NACE 2012 in New Orleans . . . . . . . . . . . . 1NACE Sees Fewer People, ButQuality Events . . . . . . . . . . . . . . . . . . . 37

New York Auto Body Owner FacesFelony Charges over State PoliceVehicle Repairs . . . . . . . . . . . . . . . . . . 39

NHTSA Declares Danger inCounterfeit Airbags . . . . . . . . . . . . . . . 41

OSHA and SCRS Offer ShopSustainability Training . . . . . . . . . . . . . 47

Overhaulin’s New Season StarringChip Foose . . . . . . . . . . . . . . . . . . . . . 47

P.B.E Jobbers Warehouse Givesto Education Foundation. . . . . . . . . . . . 38

Prevost ALR Aluminum Air Piping isan Easy System. . . . . . . . . . . . . . . . . . 10

Shops Help Victim of Road Rage Repair Car. 10State Farm Hit With Class ActionAlleging Short Claims . . . . . . . . . . . . . 35

Steve Trapp Presents ImplementingBest Practices for SOPs . . . . . . . . . . . . 42

White Mountains Ins. Sues Allstateover Esurance Sale . . . . . . . . . . . . . . . 35

WIZARDS Introduces Nano-TechnologySpray Wax . . . . . . . . . . . . . . . . . . . . . . 17

WMABA Sees Good Turnout atPartsTrader Meetings . . . . . . . . . . . . . . 47

PartsTrader CoverageFlorida Autobody Collision Alliance Made Statewide Tour to Discuss PartsTrader . . 6

Former State Farm Claims Rep, Steve Plier, Now Consultant, Talks ‘PartsTrader’ . . . . 1

George Avery Spoke on PartsTraderto GCIA Sept. 20 . . . . . . . . . . . . . . . . . . 1

PartsTrader Reduces MinimumQuote Time to 30 mins . . . . . . . . . . . . 34

Contents

Southeast

Publisher & Editor: Jeremy HayhurstGeneral Manager: Barbara DaviesAssistant Editor: Melanie AndersonContributing Writers: Tom Franklin, Stefan Gesterkamp, John Yoswick, Janet Chaney,Toby Chess, Rich Evans, Ed Attanasio, Chasidy SiskAdvertising Sales: Joe Momber, Sean Hartman, Jay Lukes (800) 699-8251Sales Assistant: Kristy NavarroArt Director: Rodolfo Garcia

Serving Florida, Georgia, Alabama, Mississippi and adjacent metro areas, Autobody Newsis a monthly publication for the auto body industry. Permission to reproduce in any formthe material published in Autobody News must be obtained in writing from the publisher.©2012 Adamantine Media LLC.

Autobody NewsBox 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 721-0253 Faxwww.autobodynews.com Email: [email protected]

Allan Vigil Ford . . . . . . . . . . . . . . . . 18Auto Data Labels. . . . . . . . . . . . . . . 11BASF . . . . . . . . . . . . . . . . . . . . . . . . 15BMW Wholesale Parts Dealers . . . . 41Chief Automotive. . . . . . . . . . . . . . . 27Classifieds. . . . . . . . . . . . . . . . . . . . 47Delray Honda . . . . . . . . . . . . . . . . . 34Don Reid Ford. . . . . . . . . . . . . . . . . 29Equalizer Industries . . . . . . . . . . . . 10Ford Wholesale Parts DealersFL, GA, AL, MS . . . . . . . . . . . . . . 48

Garmat USA . . . . . . . . . . . . . . . . . . . 8Gray-Daniels Auto Family . . . . . . . . . 5Gus Machado Ford. . . . . . . . . . . . . 22Haydell . . . . . . . . . . . . . . . . . . . . . . . 7Honda-Acura Wholesale PartsDealers. . . . . . . . . . . . . . . . . . 24-25

Hyundai Wholesale Parts Dealers . 45Jim Ellis Hyundai . . . . . . . . . . . . . . . 9Kia Motors Wholesale Parts Dealers. 33Malco. . . . . . . . . . . . . . . . . . . . . . . . 19Mazda Wholesale Parts . . . . . . . . . 43Mercedes-Benz Wholesale Parts

Dealers . . . . . . . . . . . . . . . . . . . . 29Mitsubishi Wholesale Parts Dealers. 46MOPAR Wholesale Parts Dealers . . 14Nalley BMW. . . . . . . . . . . . . . . . . . . 12Nissan Wholesale Parts Dealers. . . 44Palmers Toyota . . . . . . . . . . . . . . . . 37PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 2Porsche Wholesale Parts Dealers . 39Reliable Automotive Equipment . . . 23Safety Regulations . . . . . . . . . . . . . . 4Sam Galloway Mazda . . . . . . . . . . . 36SATA Spray Equipment . . . . . . . . . 31SCA Appraisal Company . . . . . . . . . 6Serra Mazda . . . . . . . . . . . . . . . . . . 32Serra Automotive Group. . . . . . . . . 21Solution Finish . . . . . . . . . . . . . . . . 42Southtowne Hyundai . . . . . . . . . . . 16Star-A-Liner . . . . . . . . . . . . . . . . . . . 13Subaru of Gwinnett . . . . . . . . . . . . . 28Subaru Wholesale Parts Dealers . . 38Tameron Hyundai . . . . . . . . . . . . . . 30Toyota Wholesale Parts Dealers . . . 35

Inde

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www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 3

AZ Shop Owner Arrested in Disappearance of PartnerThe co–owner of a Tempe auto bodyrepair shop and his wife are facingmurder and hindering charges afterbeing arrested in connection to whatofficers believe is the homicide ofJason Johnson, the other co–ownerof the business who was reportedmissing since Sept. 14.

Chad Norris, 33, co–owner ofScottsdale Auto Collision Center inTempe, and Tamara Norris, 31, werearrested on suspicion of second–de-gree murder and felony hindering, re-spectively in connection to the case.

A missing persons report wasfiled with Tempe police after it wasreported that Johnson, 45, had notbeen seen since approximately 6 p.m.Sept. 14 at his auto body repair shopnear Priest Drive and Elliot Road inTempe.

Detectives contacted several em-ployees at the business during thecourse of follow–up on the missingpersons report and during question-ing, detectives acquired informationabout a confrontation that happenedbetween Johnson and Chad Norris.

After Chad and Tamara Norriswere contacted about the disappear-ance of Johnson, neither one of themwere willing to cooperate with au-thorities, according to Tempe police.

Detectives then conducted sur-veillance on the Norrises based on theevidence that they were involved withJohnson’s disappearance.

Later that day, detectives ob-served suspicious activity from thecouple that led them to believe theywere attempting to cover up a crime.

The Norrises were observedleaving their residence with a boxtrailer attached to the rear of an SUV.The couple then drove to an area inPhoenix where they abandoned thetrailer, police said.

Police deployed a canine ca-daver dog and obtained a search war-rant. The search revealed whatdetectives believe to be a homicidescene. Blood was located inside thetrailer along with spent shell casingsfrom a firearm and a wallet that con-tained Johnson’s Arizona driver’s li-cense, according to police.

Investigators believe that John-son was killed and his body hidden inan unknown location and have yet tofind his body.

www.autobodynews.comC

www.autobodynews.com

Page 4: November 2012 Southeast Edition

4 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

English Color & Supply, a Texasbased jobber, has acquired three newstores in Tennessee, bringing thecompany to a total of 47 locations ineight states. The family-owned busi-ness, founded in 1946 by Bob Eng-lish, acquired the three locations ofAuto Color Supply in Murfreesboro,Shelbyville and Columbia fromowner Pat Anderton.

English Color & Supply oper-ates stores in Texas, Oklahoma,Arkansas, Louisiana, Tennessee,Mississippi, Alabama, and Florida.

English Color Acquires Stores

Wiley’s Body Shop in Spartanburg,SC, suffered a loss on Sept. 21 whensomeone stole a car from the shopand killed two Rottweilers.

The incident occurred in theearly morning hours. SpartanburgPublic Safety officers heard gunfirebut could not find where the shotswere fired. It wasn’t until six hourslater that an officer was dispatched tothe body shop. The shop ownerfound a vehicle missing. The gate tothe back lot was torn and in the road-way, according to an incident report.

Two dogs had been shot. Onewas dead on the scene, and the otherwas taken to a veterinarian’s office,where it was euthanized.

Michelle Wiley, wife of theshop owner, said they had raised bothdogs since they were puppies. Morethan guard dogs, she said the Rot-tweilers were pets.

Wiley said one of the dogs, Sher-iff, was 11 years old. She said he wasshot in the chest. Bubba Jack, 1, waseuthanized because a bullet had hit hisspinal cord and left him paralyzed.

The car is a 1989 ChevroletCaprice with a pearl white exterior,gray and blue interior, and a grillwith 30-inch rims, the report states.

Thieves Steal a Car, Shoot 2Dogs at Auto Body Shop

Founding members of a new Ala-bama statewide collision repair asso-ciation will meet in early Novemberto begin the process of organizing thenew association.

Members will include repairersand parts suppliers. The new associ-ation is called the Alabama Automo-tive Repair Industry Society ofExcellence or ALARISE.

According to its website,ALARISE is a non-profit organiza-tion that is dedicated to consumerawareness and education along withpublic awareness to industry trainingand employment in the automotiverepair industry.

Steve Plier, President of Con-sumer Auto Repair Excellence Inc.(CARE), said 34 members havejoined in its beginning stage withmembership continuing to grow.

For more information or to join,contact Plier at (205) 623-9307or email [email protected].

Alabama Repairers FormingNew Collision Association

Drive Automotive Industries ofAmerica, a manufacturer of autobody panels and systems, will invest$50 million to expand its GreenvilleCounty, SC, production facility by150,000 square feet, with plans togenerate 60 new jobs.

Drive Automotive Industries ofAmerica is a manufacturing divisionof Cosma International, which is anoperating unit of Magna InternationalInc. Its manufacturing facility is lo-cated on Moon Acres Road in Pied-mont, SC.

Drive Automotive manufacturesautomotive body panels and assem-bles body systems using state-of-the-art equipment such as multi-tonhydraulic presses and advanced ro-botic systems. This expansion willsupport a growing customer baseamong the major automotive andheavy truck manufacturers, the Gov-ernor’s Office said.

“We celebrate Drive Automo-tive’s decision to invest $50 millionand create 60 new jobs. South Carolinacontinues to show that it is the rightplace to do business. Announcementslike this one show we are doing theright things to help companies prosperand grow,” said Gov. Nikki Haley.

Drive Automotive Invests$50 Milion in SC Facility

AutoBody America, a Nashville-based collision repair operator withlocations in Tennessee, Mississippiand Arkansas, announced the open-ing of its 20th store in the mid–southand first in the Knoxville market.

The 18,000-square-foot facility,previously a dealership, has under-gone a major renovation and is now astate–of–the–art, full–service colli-sion repair center. The newest Auto-Body America repair center islocated on one of Knoxville’s hightraffic business arteries and provideseasy interstate access to the sur-rounding communities in Knox andBlount counties.

“With our entrance into theKnoxville market, we now have apresence in the seven largest popu-lation centers of Tennessee, whichhelps us toward our goal of beingthe provider of choice for customersand insurance partners across ourhome state,” said President WillJohnston.

“More importantly, it helps usbring our brand of best-in-class cus-tomer service to more Tennesseans,while giving them the confidence ofa warranty good at any of our ever-growing number of locations.”

AutoBody America Opens20th Location in Mid-South

GCIA Holds Golf Tournamentin Atlanta on October 3The Georgia Collision Industry As-sociation held its 16th Annual GCIAGolf Tournament on Oct. 3 at theTrophy Club of Atlanta in Al-pharetta, GA, with 72 golfers com-peting.

The first place team was MistyGoolsby of DuPont, Paul Wheatleyof DuPont, Jeff Griffith of DaveGordon Auto Supply and ShaneSteele of Elite Collision. PaulBridges of Enterprise won closest tothe pin and Bill Favini, RBM of At-lanta North, had the longest drive.

Sponsors included Auto DataLabels, Enterprise, 3M, FinishMas-ter, AkzoNobel and many othercompanies.

(l to r) Ron “The Ringer” Atyeo, ABRABuckhead; Louie “Left Turn” WilsonWeaver; Bill “Dead eye” Dubis Weaver

Car-O-Liner®, a leading globalprovider of collision repair equip-ment to the automotive aftermarket,has retained Larry Montanez ofP&L Consultants, LLC, to developand present a hands-on workshop en-titled “Fast Tracking Vehicle Re-pairs.”

The seminar debuted at thisyear’s NACE show in New Orleans,LA, and will also be presented at thisyear’s SEMA show in Las Vegas,NV.

The presentation will coverdamage analysis to include quickchecks, damage classification, pre-measuring, and how Car-O-Linerequipment aids in the Triage andBlueprinting process. Classes will beheld in the Car-O-Liner booth at eachshow.

Car-O-Liner to Lead Trainingat SEMA 2012

Page 5: November 2012 Southeast Edition

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 5

GGGGGGGrrrrrraaaaaayyyyyy--DDDDDDDaaaaaannnnnniiiiiieeeeeellllllssssss NNNNNNNiiiiiissssssssssssaaaaaannnnnn ooooofffffff JJJJJaaaaaccccckkkkksssssooooonnnnnfffffGray-Daniels Nissan of Jackson

• Trained Wholesale Crew• In State Next Day Shipping w/Quick Local Delivery• Great Discounts

Hours: Monday - Friday 7 am - 5:30 pmSaturday 8 am - 4 pm

Parts Manager: Steven Hill800-530-7522601-899-7462 [email protected] I-55 North Frontage Rd.,Jackson, MS 39211

GENUINE SERVICE & PARTS

GGGGGGGrrrrrraaaaaayyyyyy--DDDDDDDaaaaaannnnnniiiiiieeeeeellllllssssss NNNNNNNiiiiiissssssssssssaaaaaannnnnn ooooofffffff BBBBBrrrrraaaaannnnndddddooooonnnnnfffffGray-Daniels Nissan of Brandon

• Collision Parts Price Matching• Dedicated Wholesale Sta!• Large Inventory

Hours: Monday - Friday 7 am - 6 pmSaturday 8 am - 4 pm

Parts Manager: Jack Willoughby800-530-7989601-985-3753 [email protected] Gray-Daniels Blvd.,Brandon, MS 39042

GENUINE SERVICE & PARTS

GGGGGGGrrrrrraaaaaayyyyyy--DDDDDDDaaaaaannnnnniiiiiieeeeeellllllssssss CCCCCCChhhhhheeeeeevvvvvvrrrrrroooooolllllleeeeeetttttttGray-Daniels Chevrolet

• Prompt, Accurate and Free Local Delivery• Dedicated Wholesale Sta!• Large Inventory

Hours: Monday - Friday 7:30 am - 5:30 pmSaturday 8 am - 4 pm

Parts Manager:Eddie Williamson800-729-6160601-206-5894 local601-206-5899 [email protected] I-55 North,Jackson, MS 39211

GGGGGGGrrrrrraaaaaayyyyyy--DDDDDDDaaaaaannnnnniiiiiieeeeeellllllssssss FFFFFFFoooooorrrrrrddddddGray-Daniels Ford• No Order Too Big or Too Small• Highly Experienced Parts Personnel• Great Discounts

Hours: Monday - Friday 7 am - 6 pmSaturday 8 am - 12 pm

Parts Manager:Bill Styrone800-898-1944601-591-2648 [email protected] Octavia Drive,Brandon, MS 39042

GGGGGGGrrrrrraaaaaayyyyyy--DDDDDDDaaaaaannnnnniiiiiieeeeeellllllssssss LLLLLLLiiiiiinnnnnnccccccoooooollllllnnnnnnGray-Daniels Lincoln• Trained Wholesale Crew• In State Next Day Shipping w/Quick Local Delivery• Great Discounts

Hours: Monday - Friday 7 am - 6 pmSaturday 8 am - 12 pm

Parts Manager:Bill Styrone800-898-1944601-591-2648 [email protected] Octavia Drive,Brandon, MS 3904

Gray-Daniels ToyotaGray-Daniels Toyota

• Prompt, Accurate and Free Delivery• Dedicated Wholesale Sta!• Large Inventory

Hours: Mon. - Fri. 7am - 6 pmSaturday 8 am - 4 pm

Parts Manager: Steve Calhoun800-530-7955601-948-0576601-965-8458 [email protected] Gray-Daniels Blvd.,Brandon, MS 39042

GGGGGGGrrrrrraaaaaayyyyyy--DDDDDDDaaaaaannnnnniiiiiieeeeeellllllssssss SSSSSSScccccciiiiiioooooonnnnnnGray-Daniels Scion• No Order Too Big or Too Small• Highly Experienced Parts Personnel• Great Discounts

Hours: Mon. - Fri. 7:30 am - 6 pmSaturday 8 am - 4 pm

Parts Manager: Steve Calhoun800-530-7955601-948-0576601-965-8458 [email protected] Gray-Daniels Blvd.,Brandon, MS 39042

For All YourCollisions Part Needs

WWW.GRAYDANIELS.COM

Visit our E-Store:www.graydanielsnissannorthparts.com

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Page 6: November 2012 Southeast Edition

6 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

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GCIA Succeeds in Getting Allstate to Reverse Decision about Sales Tax ReimbursementThe Georgia Collision Industry Asso-ciation (GCIA) announced that it hasbeen successful in getting Allstate toreverse its decision that it would nolonger reimburse shops for the salestax charged to consumers on paint andmaterials. Several weeks ago, Allstatehad communicated this change in pol-icy to many GCIA members.

GCIA then contacted the GeorgiaDepartment of Revenue, which citedRegulation 560-12-2-.08:

In general, regulation [560-12-2-.08] provides that the sale of autopainting can be structured as either

1) the sale of painting services,where the auto painter must pay taxon all tangible personal property usedto perform his service and will bill hiscustomer for painting services only;

or 2) the retail sale of paint withpainting labor, where the auto bodyshop will purchase the paint exempt forresale, and then bill his customer for thepaint and repair/painting labor, and thencollect tax on the sale to the customer.

Of course, the labor charge willbe exempt if itemized on the cus-tomer’s invoice. Regulation 560-12-2-.08 supports both types of transactions.The Department can only require thatthe tax be applied correctly to the type

of transaction chosen by the seller andbuyer.

After communications with theGeorgia Department of Revenue andAllstate regarding this issue, the GCIAreceived word from Allstate that theirstand on this issue had been reversed.

On Sept. 25, Dan Risley, marketmanager (south) for Allstate, spoke toHoward Batchelor, executive direc-tor of GCIA, and told him that All-state will pay sales tax on paint andmaterials.

However, GCIA is attempting toobtain an official written statementfrom Allstate.

In addition, GCIA is working onguidelines for members as to howshops should pay, collect and remit thesales tax on paint and material items.

Anyone wishing to assist in writ-ing these guidelines should contactHoward Batchelor at (770) 367-9816or [email protected].

The Florida Autobody Collision Al-liance (FACA) launched a statewidetour in October to conduct town hallmeetings to take a stand against andshare facts about State Farm’s Part-sTrader pilot program.

Prior to the statewide tour, FACAofficials spent months visiting pilotcities and speaking with several shopsand vendors to gather informationabout the pilot program.

FACA Executive Director CathyMills, FACA President Dave McB-room (who passed away on Oct. 11),and former State Farm estimaticsteam manager Steve Plier conducted

the town hall meetings in a three-week tour which covered severalcities, including Jacksonville, Talla-hassee, Pensacola, Orlando, TampaBay, Space Coast, Ft. Lauderdale,Miami and Ft. Myers.

“As everyone is aware, thingscontinue to heat up in Florida and theindustry as a whole over the StateFarms Parts procurement program,”said Mills.

“FACA continues to feel a strongneed to continue to bring industryawareness to everyone,” Mill said.

“State Farm has said its Part-sTrader process should improve partsavailability, process efficiency, orderaccuracy and create a better experi-ence for customers. But the programhas been met with overwhelming re-sistance from shop operators and sup-pliers who argue it cuts into profits,slows operations and relinquishes toinsurers one of the last segment ofbusiness that repairers actually con-trol,” Mills said. “FACA has visitedfour of the pilot cities gathering dataand information on how this programwill affect shops and vendors.Whether you are a select service shopor not, PartsTrader will affect every-one,” Mills said.

Florida Autobody Collision Alliance MadeStatewide Tour to Discuss PartsTrader Issues

Pink Car Tribute to Breast Cancer SurvivorsWillie Robinson of North Carolinawanted to find a way to support hismother after her diagnosis of breastcancer, and he hit upon an unusualidea: painting a Crown Victoria pinkto honor her and other breast cancerpatients and survivors.

“I will do this for my mother, andfor all women with breast cancer,”said Robinson, 25. “They will knowthat someone is thinking about them.”

Robinson approached his friend,Dave Moore, who runs an auto bodyshop, Southside Rides. Moore alsoruns a non-profit related to his busi-ness, dedicated to teaching at-riskteens about auto body custom paint-ing.

“I told (Willie), put away yourmoney; I will do this,” Moore said.“We want to make this a survival car.”

Larkins Paint in High Point do-nated the paint, and Lewisville Motor

Co. donated some car parts to fix upthe car, which had been wrecked.

The car was spray-painted pink,then detailed with drawings of pinkribbons, hearts and angels.

The car was featured in afundraising march in honor of womenwho have had breast cancer. At theend of the march, breast cancer sur-vivors were encouraged to write theirnames and a message of inspiration onthe car.

The money raised by the walkerswill go to Susan G. Komen For theCure, a national organization dedi-cated to raising funds for breast can-cer research and treatment, and somewill go directly to Pamela Robinson,Willie’s mother, to help pay her med-ical bills.

Pamela Robinson, 44, who wasdiagnosed in June, said she is over-whelmed at what her son has done.

“I think he is doing this so Iwon’t quit, so I won’t give up,”Pamela Robinson said. “He knows aslong as I will see this pink car everyday, I’ll get through it.”

caption: This Crown Victoria is aboutto be decorated by David Moore’sSouthside Rides Auto Body shop forcancer survivor Pamela Robinson.The shop is donating the work.

Cathy Mills

Follow us on Twitter:@autobodynews

Accept no Substitutes!

Page 7: November 2012 Southeast Edition

For many collision shops, spray paint-ing with compressed air means deal-ing with uncontrollable or difficult tocontrol variables, including tempera-ture, humidity and pressure.

“Compressed air is a problem be-cause air changes based on tempera-ture, altitude, and other variables thatcannot be readily controlled,” saysMichael Haydell, president of Hay-dell Industries. As a result, the viscos-ity of painting material also changeswith each use due to moisture andtemperature, as well as the build-up ofstatic electricity. Static makes the ma-terial do what it wants to do, not whatthe painter wants it to do.

Haydell Industries offers a solu-tion to this dilemma in the form oftheir NitroTech Spray Generator.Their vision is to “be the premierprovider of Innovative solutions andsystems for customers’ productivity,”and they achieve this through theirvalues of integrity, excellence, com-

munication and accountability.Haydell Industries was founded in

1986 by Michael Haydell as a manu-facturing representative company. Buttheir focus changed to the productionand distribution of nitrogen-based spraysystems in 2005. They also now sell avariety of shop equipment, includingindustrial paint booths and filters.

The use of inert nitrogen offerspainters a gas to spray with, providinga more consistent finish. This leads toa reduction in the use of wet materi-als, an increase in booth throughput,and a decrease in the cost of booth ex-haust filters. As an added bonus, theNitroTech Spray Generator is also en-vironmentally friendly as it signifi-cantly reduces the VOCs and HAPsreleased into the air.

Haydell Industries separates theimpurities at a gas level to redirect theair’s properties, and by controlling thetemperature through their hose, theyare also able to control viscosity, while

using ionization processes to eliminatestatic electricity. This uses less paint asthe nitrogen allows the substrate to befully covered in fewer coats than canbe accomplished using compressed air.

Though an air compressor is stillnecessary to supply the NitroTechSpray Generator with compressed air,the compressed air is replaced by a per-fect fluid carrier of Nitrogen, Argonand/or Carbon Dioxide. The system caneasily be integrated into a shop’s exist-ing system without changing sprayequipment, processes or the preferredcoating. The only maintenance requiredfor Haydell’s Nitrogen system is achange of inlet air filters once a year.

Since Haydell Industries’ Ni-troTech Spray Generators reduce the useof materials by 30–50%, collision shopscan save up to 20–30% in material costsby integrating this technology into theirrepairs. Nitrogen spray also reduces ap-plication time by 30–50%, providingeven more savings in man hours.

Haydell Industries received theirpatent for the third generation of theirNitrogen Technology in May 2012.Michael Haydell proudly states, “Ournewest generation uses 250% lesscompressed air than the first genera-tion, making it 250% more efficient.”

Haydell Industries’ impressivelist of clientele includes Boeing, Mer-cedes-Benz and Hendricks MotorSports. Their website claims, “we aregaining momentum, ensuring we re-main in the forefront of any competi-tion, as we keep a firm hold onAdvanced Application Technologiesthrough our nationwide distributionnetwork...

Haydell Industries can be reached at:163 Pellerin RoadLafayette, LA 705601-800-877-43621-337-989-0307 (fax)[email protected]

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 7

The NitroTech Spray Generator Controls the Uncontrollable

with Chasidy Rae SiskCompany Connections

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware,who writes on a variety of fields and subjects, and grew up in a family ofNASCAR fans. She can be contacted at [email protected].

Page 8: November 2012 Southeast Edition

by Chasidy Rae Sisk

Jim Ellis Hyundai of Atlanta, GA, hasreceived many positive reviews sinceopening in 2000. Their goal is to pro-vide customers with the best possiblesavings when purchasing a new orused Hyundai. Their parts and servicedepartments play a significant role intheir success as they support the salesdepartment by ensuring customer sat-isfaction in order to promote repeatbusiness, as well as by generating ad-ditional revenue for the dealership.

Jim Ellis Hyundai Parts offerscompetitive discounts and free deliv-ery to their wholesale accounts. Ac-cording to Parts Director Ron Gay,who has been employed by Jim Ellisfor over 20 years, “Using Hyundai’sSmart Stock system helps us maintaina high level of service to our cus-tomers by allowing us to stock moreof the parts we need so that we havethem at the time they are needed. Weaverage a 90% same-day fill rate toour customers, meaning that most ofthe time, we already have the materi-als stocked that are necessary for aspecific job.”

The parts department is able tomaintain such a high same-day fill rateby using nine delivery trucks to delivertheir orders to the greater Atlanta met-ropolitan area. These trucks run twicedaily, and the deliveries are managedusing GPS-based tracking software tomonitor the deliveries and keep theirdrivers operating as efficiently as pos-sible. Jim Ellis Hyundai Parts also of-fers OEconnection to their customers,allowing body shops to electronicallytransmit their estimate to Jim EllisHyundai’s parts department withouttaking the extra time to send a fax ormake a phone call. This is particularlybeneficial as Jim Ellis Hyundai Partssells directly to body shops, and thisbusiness comprises approximately40% of their overall parts sales.

Gay notes that much of Jim EllisHyundai Parts’ success is due to theircommitment to inventory and theirdedicated staff. “We are proud to be thelargest dealer in Georgia and ranked16th nationally.” Additionally, as theirmotto “Expect the Best” suggests, JimEllis Hyundai is committed to excel-lence, and they do their best to providetheir customers with exceptional serv-ice and competitive discounts.

In addition to their impressiveparts department, Jim Ellis Hyundai is

proud to offer a “top-notch service de-partment with skilled technicianstrained to accurately diagnose vehicleproblems,” according to their website.Their collision team has over 70 train-ing certificates, including ASE and I-CAR certifications. In addition toperforming repairs on all makes and

models, they have been directly certi-fied by several manufacturers, includ-ing Porsche, Audi, Volkswagen andGeneral Motors, which includes theCorvette Z06 and ZR1. The Jim EllisCollision center also accepts all insur-ance, and they are part of the preferredprovider programs for Chubb, USAAand Met Life.

The service department also of-fers a free iPhone and Android appli-cation that allows customers to tracktheir service visits and fuel mileage—two ways that customers can go green.This application allows customers tokeep track of their service history andmaintenance, schedule service ap-pointments, call Roadside Assistance,gain access to owner’s manuals, askquestions of Jim Ellis’s service advi-sors, and receive specials from thedealership. Customers can also trackfuel used, expenses and MPG, andthey are able to store information forup to four vehicles, such as a photoand important information about theirvehicle, including VIN, license plate,insurance policy information andradio and navigation codes. Jim Ellisalso shows their dedication to cus-tomer service through their blog andmonthly newsletter.

Jim Ellis Hyundai is an AskPattyCertified Female Friendly Dealer,demonstrating their dedication tovaluing and educating their femalecustomers. Because the Jim Ellis Au-tomotive Group’s reputation is builton being a family-owned and operatedbusiness, this certification seemed likethe perfect fit as they always try totreat their customers like members oftheir own families.

Though Jim Ellis Hyundaiopened in 2000, Jim Ellis began hisautomotive empire in 1971 with theVolkswagen brand. During his youth,Ellis held many jobs, such as workingon a farm, doing construction, main-taining a concessions business atGrant Park, and running milk, paper

and laundry routes.While earning his BBAin general managementfrom West Georgia Col-lege and Georgia StateUniversity, Ellis workedas a prison guard andforeman, and he sold in-surance, IBM machinesand real estate. Afterserving two years in theU. S. Army, he tried his

hand in various fields until he foundhis place in the automotive industry in1960 with General Motors. Ten yearslater, Jim and Billie, his wife, took ahuge financial risk in order to estab-lish their own automobile dealership;selling all of their assets, utilizing theirsavings, and cashing in Billie’s 15-year retirement fund from GeorgiaTech, they gathered $35,000 in assets.

They then borrowed the remaindernecessary to open Jim Ellis Volkswa-gen in 1971.

Since their inception, Jim Ellisdealerships have been family-ownedand operated. Jim Ellis is currently thePresident and CEO of the company,and he is still extremely active in thecorporate and capital decisions thatare made. Billie, his wife, serves asSecretary and Treasurer of the corpo-ration. Their son Jimmy is the VicePresident and Chief Operating Officer,while their daughters, Karen andKristi, are Corporate Officers. Karen’sdaughter, Brooke, works as the SocialMarketing Director for Jim EllisHyundai. Wes, Jimmy’s son, is theGeneral Manager of Jim EllisHyundai, and Jimmy’s daughter,Stacey, serves as the General Managerof Jim Ellis Saab of Atlanta and JimEllis Mazda Atlanta. Jim’s great-nephew, Chris Roper, contributes tothe family business as the InsuranceLoss Control Administrator for allCorporations.

In regards to the way that thebusiness is run by the Ellis family,

Inventory and Family: The Keys to Success for Jim Ellis Hyundai

8 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

See Jim Ellis Hyundai, Page 13

Page 9: November 2012 Southeast Edition

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 9

Direct Wholesale:770-234-7995 or 800-533-118024 Hr. Fax: 770-234-7988

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Page 10: November 2012 Southeast Edition

10 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Dave McBroomFebruary 16, 1945 – October 11, 2012

The collision repair industry is mourn-ing the loss of Dave McBroom, pres-ident of the Florida AutobodyCollision Alliance, and friend, brotherand mentor to countless people whoselives he touched.

William David “Dave” McB-room passed away peacefully on Oc-tober 11, 2012 in Jacksonville, FL, atthe age of 67. A native of Cookeville,TN, and a graduate of the Universityof Tennessee, Dave served in the U.S.Army for 21 years and was a deco-rated helicopter pilot in Vietnam be-fore retiring as a Colonel.

Dave was also president of Sun-beam Autobody in Jacksonville andwas committed to raising the profes-sional image of the collision repair in-dustry. Through Dave’s leadership andpassion, the Florida Autobody Colli-sion Alliance was formed and grewfrom three body shop owners havingcoffee once a month to more than 400members in six chapters throughoutthe state.

“FACA’s members and board ofdirectors grieve Dave’s untimely deathand extend our deepest condolences tohis wife Terri and his entire family,”

said Cathy Mills, FACA’s executivedirector. “Dave was an absolute rolemodel—a caring friend, a supportivehusband and loving father and grand-father, and a passionate industry ad-vocate. Our lives will be foreverchanged with his passing.”

“I have lost a very dear friend,”said Chuck Sulkala, executive direc-

tor of the NationalAuto Body Coun-cil. “Dave’s everpresent greetingof ‘what can I doto help you today’will be my pleas-ure to ask of oth-ers I now meet. Iam sad beyondbelief and he will

be missed deeply. May Dave’s legacybe with us forever.”

“Dave McBroom was an amaz-ing, inspiring individual,” sharedSCRS executive director AaronSchulenburg. “His membership, hispeers, and his friends flocked to him.He had a lifetime of well earned expe-riences that gave him the apt ability totell an inspiring tale on just about anysubject matter, and a compelling kind-ness in his disposition that offered acharisma held by few. His passion for

the industry, for what is right, and forliving life to its fullest was unparal-leled and it is an immeasurable loss forall of us.”

Dave leaves behind his wifeTerese “Terri” Walker McBroom,sister Marilyn Joyce “Joby” Clouti-aux; children Kevin McBroom (Pam)of St. Augustine, FL, Stephanie Nel-son (John) of Cookeville, TN andAmy Helms (Alan) of South Carolina;niece Shayne Harris (Kirk), nephewRobin Trousdale (Sonia); grandnieceand nephew Ashley Pelfrey and Clay-ton Hopper. As “Pap,” he will bemissed by his adoring grandchildrenAndrew, Isaac, Kingston, Winston,Ally, Abby, Lily, Lyla, William, Ash-lyn, and Lexy.

Funeral services were held Oct.18 in the Chapel of Hardage-Gid-dens Funeral Home of Mandarin.Interment will be held at a later datein Double Springs Cemetery ofCookeville, TN.

In lieu of flowers, the family re-quests donations be made in memoryof Dave McBroom to Hubbard HouseWomen’s Shelter, Attn: Development,P.O. Box 4909, Jacksonville, FL32201, or Concerns of Police Sur-vivors (C.O.P.S) 5530 Beach Blvd,Jacksonville, FL 32207.

Collision Repair Industry Loses a Legend and a Friend; McBroom Passed Away Oct. 11

Dave McBroom

The second largest energy cost in theaverage automotive shop is generat-ing and maintaining compressed air.A new Prevost ALR aluminum airpiping system can pay for itself inless than two years in lower energycosts while extending the life of com-ponents and pneumatic tools. PrevostALR comes in seven sizes from 20mm to 80 mm diameter.

The key to the cost saving arethe smooth walls of the piping, alu-minum’s excellent corrosion resist-ance and the system’s “bubble tight”compression connectors.

Another major benefit of PrevostALR piping is installation cost savings.According to the MCAA Labor Man-ual, installation time for a 300-foot alu-minum looped header system is 20hours compared to 63 hours for blackiron and 74 hours for copper. The sys-tem can be easily installed or modifiedby shop staff without threading, sweat-ing or gluing and produces “bubbletight” connections. And the system caneasily be reconfigured or dismantledand moved to another location.

For more information on Pre-vost ALR Aluminum Air Piping Sys-tems, call 800-845-7220 or visitwww.prevostusa.com.

Prevost ALR Aluminum AirPiping is an Easy System

Shops Help Victim of Road Rage Repair CarRadio listeners in Seattle, WA, steppedup to help a woman who was a victimof road rage. Emily Lawson works fora non–profit organization and said shewas unable to pay for the repairs to hercar. When 97.3 KIRO FM radio airedthe story, two generous listeners of-fered to help Lawson pay for the re-pairs needed to her car.

Shayne Hedahl with SpecialInterest Auto Body in Everett offeredto complete all the repairs needed,and Jason Martin with Auto GlassUSA spoke with Lawson about re-placing the back window that wassmashed.

The damage was done to Law-son’s Ford Escort while Lawson wasdriving home from a family barbecue.She was at a red light and when thelight turned green, a boxy, black SUVcut her off. The SUV was driving er-ratically. Lawson said when it movedover to the shoulder, she was able toget around him.

“He proceeded to follow us,swerving around the road, screamingand waving his arms,” said Lawson.

It was so ridiculous, Lawson andher 25-year-old passenger laughed itoff at first. That is, until both cars gotstuck at a red light. The driver of theSUV stopped behind her, jumped outand ran toward her car.

The man, described as six-feettall and a very muscular 200 pounds,jumped on the back of Lawson’s carand slammed his arms down on theroof hard enough to leave a dent.

Then, Lawson said, he ripped thespoiler off the back of her car andused it to smash through her backwindow. The impact was so hard,pieces of glass flew at the back ofLawson’s head and up onto the dash-board of her car.

“As soon as he busted out thewindow and was still screaming insuch a fit of rage, I thought he wasgoing to kill us,” Lawson says.

When the light finally turnedgreen and Lawson drove away, she saysthe man threw the spoiler back into hercar through the missing back window.A few minutes later she stopped to call911, and she realized a lot of peoplemust have seen what had happened.

“Nobody stopped to help us.That was disappointing. We were twowomen in a car being attacked by this‘Hulk’ guy who was just bashing ourcar up,” said Lawson.

Lawson works for a non-profitthat does outreach to homeless kids.She said she could not afford to fix allthe damage to her car. She was ec-static when she learned she would nothave to pay for the repairs.

Page 11: November 2012 Southeast Edition

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 11

Auto Data Labels is a preferred vendor for MSO’s, Dealership Collision Repair Centers, Franchises, Networks, Independent Collision Repair Facilities, and Insurance Companies throughout North America. If your business would like to make Auto Data Labels your “Preferred Vendor” pleasesubmit your info through our “Contact Us” page and we will be more than happy to assist you.

Page 12: November 2012 Southeast Edition

perfect world by numbers.’ Moreoften than not, in this industry, realityis much different than the perfectworld. Reports/scorecards of repairersare formed through a perfect worldcomputerized format. For example:new parts can and are often damagedin shipping, causing returns and de-lays; used parts often are not of qual-ity to be used in the repair process;vehicle owners often leave their vehi-cles (that are safe to drive) at repair-ers on Fridays because a claimsrepresentative has ok’d a rental. Theseexamples are only a few that come tomind that can affect a repairer’s score-card. Some of the numbers/averageson the scorecard include formulas thathave key performance indicators in aweighted format that could never beexplained as how the particular num-ber/average score was determined.Not a comfortable situation when at-tempting to discuss a repairer’s per-formance considering we do not livein a perfect world.

ABN: What do you think of the Part-sTrader pilot program?Plier: My opinion of the Partstraderprogram is not positive. The informa-tion provided to me by repairers onthe program, from individuals thatwere in meetings with State Farm em-ployees during the test pilot roll out inAlabama, the information that is beingprovided by the many different publi-cations and the information providedby State Farm Consultant GeorgeAvery at the recent Georgia CollisionIndustry Association meeting indicateto me there are a lot of questions thatState Farm and/or PartsTrader eitherrefuse to answer or do not have an an-swer for. I would suggest everyone toconsider if something is mandated,why is it being mandated? Items, pro-grams, actions, etc. that have to bemandated usually have a lot more badfor a large multiple sectored groupthan good. Is this the reason the por-tion of the Select Service agreement isbeing actively enforced on this pro-gram? Any repairer on the SelectService program agreed if re-quested/required by State Farm to usea parts locating/procurement programthey would. There are several otherssections within the Select Serviceagreement with the same type lan-guage that repairers have agreed to.

ABN: Why do you think State Farmintroduced this program? Where doyou think State Farm is going with it?Plier: I feel there are multiple rea-sons. First and for the immediatetime, I feel State Farm was aware ofmanufacturers offering parts pricingmatch programs and believed the im-plementation of a program such asPartsTrader could lead to supplierstaking an aggressive approach to ex-pand business by reducing prices in abid/quote program such as this. How-ever, I believe the bigger purposehere is if successfully implemented,this would open the door to the othersections of the Select Service agree-ment requiring additional actionsfrom repairers as agreed to such asthis.

ABN: How do you think the programwill affect the industry? Repairersare saying this pilot program is inef-ficient and costs them more than itsworth.Plier: I feel if State Farm is success-ful with this program resulting inmandated use of locating and pro-curement systems, the balance of theinsurance industry will quickly fol-low with the same or similar pro-grams. My opinion is this will not begood news for the consumer. I knowState Farm is saying this is intendedto be focused on claims expense andno one should be against anythingthat might result in reduced cost, andaccording to State Farm, a possiblereduction in premiums for policy-holders. I am currently a State Farmpolicyholder; I definitely want mypremiums to be as cheap as possible,but even more importantly, I want myvehicle repaired properly. For repair-ers to keep up with the ever-changingtechnology, training is a must. Equip-ment requirements must be main-tained so if programs such as thisaffect industry members’ ability tomeet these needs it is not good. Ihave read and heard Mr. Avery sayState Farm does not want to tell re-pairers who to buy from, but I havenot heard State Farm address the ac-tual inefficiencies that to date I haveseen this program cause to repairersand other inefficiencies I have beentold of by repairers. There does notseem to be any concern from StateFarm and/or Partstrader that this pro-gram does indeed have an additionallabor and administrative time/ex-pense associated to it for the repairerand supplier. I read in an article, that

according to the writer, the repairersthey had spoken with suggested anaverage additional 30 minutes perday. The repairers I have spoken within Birmingham suggest to me theyapproximate spending an average ofan additional 30 minutes per claim.Birmingham repairers note you mayhave some claims that only require anadditional five to ten minutes of ad-ditional time, but you also have thoseclaims they may require an additionalhour of administrative time. I havenot spoken specifically with anyparts suppliers on the PartsTrader list,but feel any supplier on the Part-strader list is also incurring addi-tional administrative time andexpenses if they are following therules of the program.

ABN: Does this program offer anybenefits to the repairers?Plier: Based on the current infor-mation provided and from the feed-back received from Birminghamarea repairers, I have not been ableto identify what I would consider abenefit for a repairer on the pro-gram. State Farm has stated theyhave received positive feedbackfrom their evaluations, the only

thing is, to my knowledge, StateFarm has not to this date provided asingle item with the industry thatcan be viewed as positive feedback.If there has been anything positivefor the repairer, I have not heard norhave I read about it.

ABN: With repairers highly wary ofthe program, what do you think the so-lution is?Plier: I feel the distrust and con-frontational nature of this industry be-tween the two parties are much deeperthan this program. I am not sure thereis a simple solution for this issue if allsides must benefit. If attempts aremade to identify efficient alternatives,both sides must work together to iden-tify the many different possibilities.There already exist electronic order-ing opportunities used by many re-pairers, so if there is ever to be asolution that all sides agree to, I feelthere will be multiple businesses/venders to choose from. I do not feelmandating a particular program is theanswer.

ABN: Was State Farm too aggressivein launching this program?Plier: Considering the information

12 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

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Continued from Cover

Steve Plier

Page 13: November 2012 Southeast Edition

Ron Gay notes “the responsibilities ofthese family members are clearly di-vided, and many of the family mem-bers play an active role in thebusinesses. We now have three gen-erations working every day in ourfamily business. The fourth genera-tion is coming up with eight mem-bers, ages one to eleven. They areyoung, but we are planning for themto have an opportunity to work withus too, when they complete their cho-sen education.All family members have workedtheir way up in the organizations byworking in all departments and learn-ing the policies and procedures of thecompany.” Ellis plans to continueproviding customer service for trans-portation needs as long as there arewilling and able family members whocan successfully run the business.

Jim Ellis Hyundai5785 Peachtree Inc. BlvdAtlanta, GA 30341P- 800-533-1180Parts Manager - Ron Gay

that has been provided to the industry,‘yes.’ I do not believe the details hadbeen thoroughly reviewed and con-sidered.

ABN: What does it suggest to youwhen State Farm can’t come up with asingle benefit to repairers?Plier: Maybe because there is not asingle benefit associated to the shopin regards to this program. I believe ifState Farm had identified benefits forthe shops and or the suppliers, wewould all have heard about them bynow.

ABN: What kind of damage controlcould State Farm do now?Plier: I’m not sure there is a definitesingle thing that could be focused onhere. There are many issues in the re-pair industry that need to be addressedfor the “RIGHT REASON”—the con-sumer. Many of these issues havebeen around for many years, but havenever been addressed. As rules identi-fied in repair agreements continue toexpand, the magnification of the manyissues grow. For example: the need foran independent third-party surveyprocess to identify a competitive pric-ing range; the agreement that the re-

pair procedure pages are not pick andchoose, but will be honored com-pletely at all times, just to name a cou-ple.

ABN: What should affected shops bedoing right now about PartsTrader?Plier: My recommendation wouldbe for each and every repairer on theSelect Service repair program or anyrepair program to review their pro-gram agreements and then rereadthem again. List questions or con-cerns identified in the agreementsand contact the particular insurancecompany to discuss any questions orconcerns. After any discussions,make a business decision based onconsideration of all factors of whatyou feel is in the best interest of yourbusiness.

ABN:What is the background of StateFarm’s previous efforts on this issue?Plier: State Farm had a trial programin California and Indiana in 2009, butdiscontinued the program afterChrysler filed for bankruptcy and GMaccepted a government bailout in2009. The trial was structured differ-ently then as compared to the Part-sTrader program now.

About CAREPlier started his business, CARE, in2010 after leaving State Farm. Hisgoal, focus and efforts with ConsumerAuto Repair Excellence, Inc. has beento assist repair facility owners andmanager with a better understandingof simple business principles, such asunderstanding their business operat-ing cost and the importance of qualitycontrol programs, and to understandsimple things involved in the repairprocess, that if itemized, they shouldand could be compensated for by themajority of the insurance companies.

The services provided by CAREalso involve assistance to repairersby investigating issues and ques-tions that repairers encounter andproviding documentation to back therecommended positions. Plier as-sists repairers with identifying pos-sible solutions that would bebeneficial to the industry and in par-ticular focused on what is appropri-ate and in the best interest of theconsumer.

Steve Plier, PresidentConsumer Auto Repair ExcellenceInc. www.consumerautocare.com205-623-9307

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 13

Continued from Page 8

Jim Ellis Hyundai

Page 14: November 2012 Southeast Edition

As a follow-up to the CCRE legalseminar held in March 2012—whichI attended and wrote about in Auto-body News (search “CCRE” at auto-bodynews.com)—the PennsylvaniaCollision Trade Guild (PCTG) hostedthe Coalition for Collision Repair Ex-cellence for the second event in thisseries of seminars.

CCRE’s 2012 Fall Seminar washeld Friday and Saturday, September21–22 at the Airport Embassy Suites inPhiladelphia, PA. PCTG decided tohost CCRE again due to the over-whelmingly positive responses they re-ceived on the 2012 Spring Seminar. Anaudience of nearly 50 came to Philadel-phia from as far away as Alaska.

Attorneys Erica Eversman andJohn Parese joined the CCRE’s legalseminar as featured speakers to sharetheir legal expertise on the collisionrepair industry.

In his welcome and introductionspeech, Steve Behrendt, president ofPCTG and CCRE Board Member, ad-dressed the importance of understand-ing adhesion, or more specifically, anadhesion contract. [Editor’s note: Anadhesion contract is one which is im-balanced in favor of one party over theother so that there is a strong likeli-hood it was not freely negotiated.

Example: a rich landlord dealingwith a poor tenant who has no otheroptions and must accept all terms of alease, no matter how restrictive or bur-densome, because the tenant cannotafford to move. An adhesion contractcan give a “little guy” the opportunity

to claim in court that the contract withthe “big shot” is invalid. This doctrineshould be used and applied moreoften, but the same big guy-little guyinequity may apply in the ability to af-ford a trial or find and pay a resource-ful lawyer.]

Behrendt explained how a rela-tionship with a third party (i.e., the in-surance company) triggers a legal andbinding contract which exploits ashop’s ability to do business individu-ally. Behrendt said that avoiding ad-hesion will help collision repair shopsoperate independently by providingthem with the freedom to be paidbased on the services performed as ad-hesion can influence a court’s decisionagainst a shop as it regards their rela-tionship with a third party. In contrast,an authorization to repair form pro-tects a shop’s independence, their re-lationship with the customer, and theirneed to make a profit by distancingthem from the insurance company.Through adhesion, third parties try tomake the reserve estimate part of ashop’s repair process by utilizing theirestimate as a method of payment, butthe estimate is only the third party’sguess at the cost of the repair, not ablueprint for the repair.

The insurance company’s estimateis created to verify that there is a legiti-mate claim and to set a claims reservewhich is money earmarked for eventualclaim payment. Shops need to find away to eliminate this estimate in orderto prevent insurance companies fromcontrolling their business. One way todo this is by stamping all third partydocuments as “for informational pur-poses only.” This preserves the shop’sindependence by avoiding adhesion andany type of agreed-price scenario. Italso allows shops to distance their busi-ness from a third party’s control and be-havior. Shops should prepare and workoff of their own repair blueprint andanalysis, and this is what should be usedfor the repair and the final invoice.Shops should properly prepare andclose their final invoice based on theshop’s job costing and gross profit,handing the invoice to the insurancecompany for final payment.

Moving from a collision re-pairer’s point of view to a legal point

of view, attorney Erica Eversman tookthe floor to discuss repair contracts andauthorization to repair which was verysimilar to the presentation she gave in

March of this year. Discussing the dif-ferences between the two contracts ina non-DRP relationship compared tothe three contracts that make up a DRPrelationship, she noted that “insurerslike to think they’re in charge of every-thing. They want all of the control andnone of the responsibility.” In a DRPrelationship, two informed parties

have an agreement about how to sat-isfy the obligations of their individualcontracts to the customer, usually be-fore a collision actually occurs. In thecurrent aberration for individual shops,the insurer acts as if the repairer hasduties to this third party which is whyit is so important for shops to utilize awritten repair contract. A classic ex-ample of a contract of adhesion isfound in insurance policies as oneparty has more power than the othersince consumers are legally required tohave auto insurance. This is the onlyindustry where consumers do not re-ally have the ability to negotiate theircontracts or even see the terms beforethey purchase it, which is why thisbinding contract can be cancelled.

In the relationship between a re-pairer and a consumer, the repairer’sresponsibility is to inform the cus-tomer, acquire authorization and repairthe vehicle, while the consumer shouldreceive information, approve the re-

14 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

CCRE’s Fall Seminar Covers Adhesion, Warranties, and Much More

with Chasidy Rae SiskNortheast News

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware,who writes on a variety of fields and subjects, and grew up in a family ofNASCAR fans. She can be contacted at [email protected].

Steve Behrendt addresses the contract ofadhesion

Attorneys Erica Eversman and John Parese

Page 15: November 2012 Southeast Edition

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 15

Page 16: November 2012 Southeast Edition

pairs and pay. Repairers have no rightto expect payment from the insurancecompany as they should expect pay-ment from the consumer, but thoughit’s important to provide customerswith an estimate of the repair cost, con-sumers are more concerned with howtheir car gets fixed since the insurancecompany actually pays the bill. This iswhy Erica recommends getting thecustomer’s informed consent after therepair process has been fully explainedto them so they understand what isgoing on with their vehicle.

A repair contract should definethe customer, the shop’s duties, whattype of parts will be used, the damagesto the vehicle and the repairer’s pro-fessional judgment. A wise inclusion isthe right to expectancy damages whichwill entitle the collision shop to getpaid for costs accrued if the customeropts to take their car to a differentshop. This also includes reimburse-ment for loss of work if the insurancecompany persuades the consumer tohave their vehicle repaired at a DRPshop. Additionally, this encompassesthe preparations that the shop hasmade, such as ordering parts and allo-cating time and personnel. This canalso include opportunity cost, definedas potential business that may havebeen turned away because the shop’sresources had already been dedicated.This will help to establish recoveryfrom tortuous interference. The signedcontract ensures that the shop has theright to sue for expectancy damages.

The repair contact is designed toemphasize that the repairer is the pro-fessional and that repairs are based onthe repairer’s professional judgment.When there is a conflict in the opinionsof the repairer and the insurance com-pany regarding what is right to do, therepairer’s opinion should take prece-dence because they are the profes-sional. Erica believes this is importantfor developing a better public relationsstanding regarding how complicatedcollision work is since there are manyvariables that come into play; unfortu-nately, the collision industry is losingthe public relations war because insur-ance companies spend a lot of moneyadvertising about how they repair ve-hicles, leaving consumers with themisconception that their insurancecompany will fix their car, through theinsurer only pays for the repair.

Emphasizing that shops “must re-member that the insurance company isnot their customer,” Erica reiteratedher lesson from March about the three

options that insurers have when han-dling a claim and how a DRP relation-ship allows them to control the repairwithout accepting liability. She dis-cussed the usefulness of addressing re-plevin in the repair contract. Replevin,sometimes known as “claim and de-

livery,” is a legal remedy which allowsthe recovery of goods unlawfully with-held from possession via a legalprocess in which a court may require adefendant to return specific goods tothe plaintiff at the outset of the action(i.e. before judgment). Replevin grantsthe shop the right to a possessory lien,allowing them to retain the vehicleuntil payment is received. Erica ex-plained the benefits of an Assignmentof Proceeds and other documents.

Another useful document is the Ac-knowledgement Terminating RepairContract and Releasing of Motor Vehi-cle which is designed to protect collisionshops by giving them the chance to re-tain business by informing the customerof what is going on and by improving ashop’s chances should they decide totake the case to court. A Customer No-tice of Insurance Deficiency informs thecustomer of their insurance company’srefusal to fully pay to properly andsafely repair the vehicle. This helps inthe public relations battle as it shows theshop’s refusal to breach their repair con-tract by adhering to the insurer’s pres-sure to provide an unsafe repair.

A Customer Notice of InsurerDelay keeps the customer informedregarding their repair by alerting themto delays caused by their insurancecompany. Shops can also provide theircustomers with the Vehicle DamageInsurance Election form which theycan send to their insurer demanding toknow how they plan to pay for the re-pair. Though it is highly unlikely thatany insurance company will sign thisdocument, the insured has the right todemand a response from their insur-ance provider. A Notice of AdditionalCost can also be sent to the insurancecompany to inform them of additionalcosts incurred during the repair. This

document helps independent collisionshops avoid third party interference byrefusing to permit the insurer to causeinefficiency and by giving the impres-sion that the insurer must respond tothe shop, reiterating the point that therepairer is in control of the repair.

Erica Eversman also recom-mended providing consumers with aParts Notice and Authorization docu-ment, which she plans to publish onautoepi.org for distribution, in order tohelp consumers understand the vari-ous types of parts that may be used torepair their vehicle. She ended thispresentation by repeating her opinionof the dangers of aftermarket and sal-vage parts and discussing what shopsshould and should not warrant, em-phasizing that shops should not offer a

warranty on anything other than theirworkmanship.

Next, John Parese, Esq., dis-cussed the definition and uses of an as-signment. An assignment is a transferof property or another right from oneperson to another which confers a com-plete and present right in the subjectmatter. As a contract between these twoparties, an assignment is subject to con-tract law and interpretation. Causes ofaction issuing from a wrong whichcauses injury to the property or fromtort by which the property is dimin-ished or damaged are generally assign-able, and a party may assign their rightto recover damages to the propertywithout conveying title to the property.A valid assignment requires clear evi-dence of the intent to transfer rights anda description of the subject matter ofthe assignment; it must be clear and un-equivocal, and it must be noticed to theobligor. While there are no formal re-quirements for an assignment, the lan-guage used must indicate the owner’sintention to transfer the claim.

Valuable consideration is essentialto support an assignment, and thoughthe word “consideration” does not nec-essarily have to appear on the assign-

16 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

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Page 17: November 2012 Southeast Edition

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 17

North State Autobahn Inc., a Westch-ester-NY-based body shop owned byGreg Coccaro, has won an importantvictory in the New York SupremeCourt Appellate Division against Pro-gressive Northeast Insurance Com-pany, Progressive Casualty InsuranceCompany, Progressive Direct Insur-ance Company, Progressive SpecialtyInsurance Company, and NicholasStanton. The result likely creates acase law basis for deceptive acts andpractices claims against auto insur-ance companies that divert policy-holders away from repair shopsoutside their DRP networks.

In a fifteen page decision, thecourt went into great lengths explain-ing the history of “Business LawSection 349, Deceptive BusinessPractices” and the intent of it, writ-ing: “This case presents us with thequestion of whether a business entity[North State] has stated a valid causeof action for violation of GeneralBusiness Law §349(h) where it al-leges that another business entity[Progressive] deceived and misledprospective customers, causing it tosustain direct economic loss in theform of more than $5 million in lostbusiness sales. We conclude that itdoes.”

North State sued Progressiveunder New York’s deceptive actsand practices statute, General Busi-ness Law section 349, for mislead-ing consumers into taking theirdamaged vehicles away from NorthState to competing body shopswithin Progressive’s “network.”

North State’s suit alleges that the in-surance company coaxed customersaway by maligning the shop’s workand pricing.

In North State Autobahn v. Pro-gressive Insurance, the Second Depart-ment’s ruling, denying Progressive’smotion for summary judgment and al-lowing North State’s suit to go forward,confirmed a business’ standing to re-cover for direct harm caused to it byanother business’ deceptive acts andpractices—even if that business is acompetitor.

Justice Robert Miller, writingfor a unanimous panel, held that NorthState’s allegations concerning Pro-gressive’s acts depriving consumers oftheir choice of body shop satisfied thestatute’s requirement that the decep-tive acts at issue have an impact onconsumers at large. The court furtherheld that the law does not require thatNorth State identify specific con-sumers who were harmed.

The court also rejected Progres-sive’s argument that North State’s in-jury was merely derivative of that ofthe injured consumers, finding thatNorth State adequately alleged directharm the instant customers were mis-led into taking their vehicles to a net-work shop, regardless of whether suchcustomers ultimately suffered pecu-niary injury. The fact that North Statewas a business competitor and not theconsumer in the transaction was heldto be irrelevant for purposes of stand-ing under the statute, under whichpunitive damages and attorneys’ feesare recoverable.

“This is a significant decisionthat enables businesses to pursue ‘de-ceptive acts and practices’ claims inbusiness-to-business disputes—evenbetween competitors—that have animpact on consumers at large,” saidDennis Artese, a shareholder at An-derson Kill & Olick who representedNorth State. “That’s critically impor-tant because it allows well-fundedbusinesses to police deceptive prac-tices where the state attorney generaldoes not, and where individual con-sumers cannot, because they just donot have the financial means to fightan insurance goliath like Progressivein the legal system.”

Along with Artese, North Statewas represented by Finley Harckhamof Anderson, Kill & Olick and solopractitioners Anthony J. Mamo, Jr.and Richard P. Stone.

The Progressive Group was rep-resented by Nelson Levine de Luca &Horst, LLC, New York, N.Y. (MichaelR. Nelson, Kymberly Kochis, andFrancis X. Nolan IV of counsel), forappellants.

BackgroundIn 2007, North State Autobahn, Inc.commenced this action against theProgressive defendants and a numberof Progressive employees, includingthe defendant Nicholas Stanton. As-serted in the complaint, was that theProgressive defendants had violatedGeneral Business Law §349. Specifi-cally, the complaint alleged that theProgressive defendants deceivedclaimants who sought to have their ve-

hicles repaired at the plaintiffs’ andother repair shops that did not partici-pate in their DRP by making misrep-resentations as to [Coccaro’s shop’s]workmanship, price, timeliness ofservice, and character. North Statealso alleged that the Progressive de-fendants issued damage repair ap-praisals well below fair-market valueat about one-half the estimate of theplaintiffs’ estimate, and that the Pro-gressive defendants represented toclaimants that the plaintiffs wouldmake only partial payments for repairswhich would necessarily requireclaimants who had their vehicles re-paired by the plaintiffs or other inde-pendent shops to incur out-of-pocketexpenses.

The plaintiffs further alleged thatthe Progressive defendants engagedin such deceptive practices in order tomislead customers of the plaintiffsand other independent shops to be-lieve that they must have their vehi-cles repaired at repair shops that weremembers of the DRP. The Progressivedefendants allegedly failed to informthese claimants that the repair shopsthat participated in the DRP used in-ferior aftermarket parts, or were notregistered or qualified to work on spe-cific vehicle models. As a result of theProgressive defendants’ actions, theplaintiffs alleged that they sustaineddirect economic loss in the form ofmore than $5 million in lost businesssales, and that the public at large sus-tained other damages. For more onthe case, search on “Coccaro” atwww.autobodynews.com.

Greg Coccaro Wins Significant Appeal from Progressive Insurance, Changes Case Law

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Established by automotive legendCarroll Shelby, the Carroll ShelbyFoundation will honor the man whodevoted his time to helping children inneed with the highly-anticipated un-veil of the exclusive Carroll Shelby“Commemorative Signature” Pro-gram. Dedicated to providing financial

support for children and medical pro-fessionals to help overcome life-threatening health issues andcontinuing education among today’syouth, the Carroll Shelby Foundationwill offer this exclusive commemora-tive signature program to raise moneyfor its mission.

“The commemorative signatureprogram is a way to remember andcontinue Carroll’s good work,” saidJenni Shreeves, executive director ofthe Carroll Shelby Foundation. “Wehope people join us in the fight to helpchildren at home and around the worldreceive the medical treatment and

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Enthusiasts will have the optionto receive the commemorative signa-ture on an assortment of exclusiveitems including signed art, sculptures,die-cast models, books and more.

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Page 18: November 2012 Southeast Edition

For some months now, people keepasking me why I haven’t recently con-tributed to Autobody News. The an-swer is simple, I didn’t feel I hadanything interesting or of value towrite about. This changed a fewweeks ago.

As a paint manufacturer’s rep,there is not a month that goes by with-out being put in the middle of colli-sion repairers and insurers, expectedto chime in on a dispute about what isnecessary for a proper repair. One ofmy customers called and informed methat an insurance agent declined topay for priming or sealing new e-coated parts. The agent told my cus-tomer that sealing or priming newparts wasn’t a necessary step in aproper repair process. Anybody thatknows me well will not be surprisedto learn that I got very excited aboutthis statement. How can someone inour industry make such an irresponsi-ble statement? And then I leaned backand thought about this for a moment.

During the course of a year, I visithundreds of shops and have witnessedthis exact procedure performed moreoften than I cared to admit. By sim-ply looking around our industry, aninsurance agent that likely never hadto repair a vehicle for a living couldeasily get the impression that sealingor priming new parts is an optional,but not necessary, step in a repairprocess. I feel comfortable about thefact that most, if not all major paintmanufacturers will agree with me,painting directly over e-coat is not arecommended repair process. Fur-thermore, paint failure as a result ofthis practice would not be covered bymost manufacturer’s warranties.

There are several problems withpainting directly over e-coated parts.Although OEM e-coat is an excellentcorrosion protection coating (not sureabout some of the aftermarket parts),e-coat contains no UV protectionpackage. E-coat is generally epoxybased and unless completely shielded

from UV rays, its surface can becomeunstable. Resulting in paint layer sep-aration and peeling. Some of the new-bies in our industry may notremember the early 90’, but many ofus do. How many GM and Chryslerfactory paint peelers did you repair inyour professional career? These carsand trucks peeled for the same reason,UV exposure to the e-coated surface.If you repaired one of these vehicles,you likely remember that the surfaceof the vehicle was powdery after youpeeled of the paint layer. This pow-dery subtends that easily rubbed offonto your fingers was the top layer ofdeteriorated e-coat.

Just put enough paint on it andyou should be fine, right? I wish itwere that easy. The first problem withthis thought process is: how much isenough? Are you thinking 4, 5, or 6coats of paint? 8 to 10 coats on somereds? The truth is that no one knowswhen full coverage is achieved duringthe paint process. Take a piece of glass

and paint it with basecoat and clear.After it cured completely, hold it up tothe sun and see if any light penetratesthrough. Attempting this exercise willquickly demonstrate that this ap-proach doesn’t work. It takes muchmore paint than anticipated before100% coverage is achieved throughbasecoat application. Protecting theintegrity of your work through sealingor priming instantly emerges as amore cost effective solution. And ifcost wouldn’t be a factor, the resultinghigh film build of basecoat colorwould present a paint problem of itsown.

The next issue with painting di-rectly over e-coat is stone ship resist-ance. E-coat is a very hard coating.The difference in hardness between e-coat and basecoat is too great for along lasting paint finish. The applica-tion of a primer or sealer to the e-coatwill bridge this cap. Although there isno way of fully preventing rock chips

E-Coated Parts Procedure

with Stefan GesterkampPaint Management

Stefan Gesterkamp is a Master Craftsman and BASF representative who has been inthe automotive paint industry for 27 years. He started his career in a custom shopbefore turning to collision repair. Stefan graduated from the University of Coatingsand Colorants in Germany and is the author of “How to Paint Your Show Car.”

18 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

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ment, Parese recommends it. An as-signment requires an exchange, such asallowing a customer to take their vehi-cle without the shop receiving paymentif they sign the assignment. An Assign-ment for Money Due should identifythe customer, facility, vehicle and loss.The document does not need to be no-tarized and should be enforceable with-out defects. Parese also advises shopsto have all customers sign a repair con-tract. Parese ended his presentation byusing clips from “Hot Coffee” and sev-eral insurance commercials to reiteratehis message about public relationsfrom the March seminar.

Tony Lombardozzi, President ofCCRE, followed with a brief talk onthe need to change the mindset of col-lision repairers and to send a messageof whose business the insurer is visit-ing. In the collision industry, “we op-erate every day on fear”, Lombardozziclaimed, continuing to elaborate thatshops fear losing business and beingsubjected to steering.

On Saturday, John Parese beganthe seminar with a presentation entitled

Ten Steps to Consider When Filing aLawsuit. The first step is to provideproper documentation, including asigned repair contract and the final in-voice. Noting that “the insurance com-pany doesn’t like being sued,” Paresereminded attendees that the insurer’sestimate is just a guess on the likelydamages and is not reliable. The sec-ond step is to verify that all work wascompleted and billed correctly. Be-cause lawsuits result in hyper scrutinyon both ends, it is imperative that therepairer did everything they claim theydid during the vehicle’s repair.

Step 3 requires the use of a properAssignment of Claim which will allowthe shop to stand in the customer’sshoes to acquire payment. The fourthstep involves choosing a reasonablecustomer, and it is important to lay theproper foundation of information assurprises in the courtroom are a badidea. The case a shop chooses to fightin court should involve a cooperativeand informed consumer.

Step 5 is to establish liability withthe information to prove the basis of theclaim. Parese notes that “you have toestablish negligence in order to proveliability”, but on short pay cases, it canbe argued that the insurance company

accepted liability by paying on the dam-ages, even if they did not pay in full.

Step 6 requires securing all nec-essary documents, including the policereport, proof of liability and all infor-mation about the parties involved. Pro-viding all of this will make the processas easy as possible on the lawyer.While shops may not win every singlecase, each small victory affects busi-ness since it will dissuade insuranceadjusters from harassing the shop. Theseventh step involves finding an attor-ney to take the case, and Parese notesthat small cases are often combinedinto one larger case. Step 8 is to createa labor rate survey by surveying 12–20local shops to disprove the insurancecompany’s common claim that a shophas the highest labor rates in the area.This survey can help justify the claimthat your rates are reasonable, and thegoal is for your posted rates to fallsomewhere in the middle of the shopsincluded in the survey; however, it isimportant not to share this informationto avoid accusations of conspiring withothers to increase labor rates.

Step 9 is to provide several exam-ples of being paid your labor rate, prov-ing your posted rate is reasonable andfair. This is critical as the insurer shouldbe paying the same rate as a customeroff the street. The tenth step is to stampall documents with “accepted underprotest as partial payment only for prop-erty damage.” Repairers should appearat court dressed professionally and witha business-like approach in order toshow the judge that they are taking thecase seriously, and this will help over-turn preconceived misconceptions andstereotypes about the industry as well asto show that the repairer is not trying totake advantage of anyone but is tryingto stop getting taken advantage of.

Parese ended his presentation bydiscussing tortuous interference withthe repair contract and how to prove theinsurance company intentionally soughtto interfere with the contract betweenthe repairer and the customer. In orderto show that the defendant’s conduct istortuous, the plaintiff must prove im-proper motive and willful malice. Thissends the message that the insurer is notabove the law and that they can and willbe sued for refusal to comply with theCode of Ethics and other laws.

Once Parese concluded, KurtLundgren, an attorney in the medicalinsurance industry, presented about thesimilarities between the automotiveand medical insurance industries andtheir issues. He noted that it is naive for

collision repairers to believe they areimmune to the insurance companies,but repairers are in the business of fix-ing vehicles and providing customerservice to make money, so they shouldget to the bill when dealing with insur-ers. He pointed out that “this is all agame for the insurance company, butthis isn’t a game for you guys.”

Lundgren noted that in both theauto and medical insurance industries,proof is required to prosecute, but heurged repairers to recognize and em-phasize that they are doing this to helpthe consumer. He also praised atten-dees for being on the right track abouthow they deal with insurers, agreeingthat shops should not negotiate withinsurance companies.

Tony Lombardozzi led a discus-sion about the audience’s experiences.He urged attendees not to put anythingon paper or online that they are not pre-pared to defend in court. Though he ad-mits that the industry can be depressingat times, he insists that repairers canhave fun with fighting the insurers, aswell as making money, because it is ex-citing to make the insurance companiesjustify their actions. He believes thatshops “need to see that the processworks and they can have fun with it.”

Discussing how insurers have theirown versions of estimating software thatprovides a lower estimate than the shop’sversion, Tony noted that everything in-surers do is based on this estimate, so re-pairers need to take that tool out of theirhands by removing the insurance com-pany’s estimate from the equation. Tonyadded that the insurers “constantly havetheir hand in our pocket… and come atus in so many ways that it’s hard to keepup with them.”

Tony noted that the insurancecompanies have spent 30 years brain-washing repairers to believe they arethe insurer’s servants, but in reality,collision shops only need to allow ad-justers to look at the vehicle, completetheir paperwork and go home. Ericachimed in, encouraging attendees to“make it painful for [the insurancecompanies] by doing it your way, theright way... make it clear to them thatyou’re not going to be the one whochanges.” She went on to state that in-surance companies have no right toexpect collision repairers to stop theirprocess just because the insurer hasadopted another bizarre practice. In-surance companies are great at propa-ganda and brainwashing, but whenthey try to dictate what a shop can and

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 19

Continued from Page 16

CCRE Seminar

See CCRE Seminar, Page 23

Page 20: November 2012 Southeast Edition

20 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

by Ed Attanasio

They don’t have a sports team, a fightsong or a mascot, but it’s a major insti-tution that can help body techs andpainters throughout the country to worksmarter while repairing a leading car

brand. It’s calledthe University ofToyota and it offersthe collision indus-try a unique oppor-tunity to learn howto work on 27 dif-ferent models ofone of the world’smost popular vehi-cles ever made.

When the EastBay chapter of the

California Autobody Association(CAA-EBC) convened for their Sep-tember meeting in Walnut Creek,CA, the evening’s speaker was ChrisRisdon, a senior product educationand development administrator forthe University of Toyota’s producteducation department. That meansthat he’s a mega-expert on how to re-pair any vehicle manufactured byToyota within the last two decades.

Risdon shared his wisdom with theshops in attendance and his presenta-tion was followed by a spirited ques-tion and answer session. The hottesttopic in the room revolved around howto properly work on the Prius. With

more than one million now in the coun-try’s fleet and especially popular inCalifornia, body shops want to knowmore than before about this model andthe manufacturer’s other hybrids.

The University of Toyota trains ap-proximately 8,500 collision profession-als every year at their three locations—in

Los Angeles, Jacksonville, FL and NewJersey. The cost for the training is nom-inal and most classes last no more thantwo days. The University’s mantra is“Fix-It-Rite/Fix-It Smart” and Risdonexplained that its one of the few institu-tions of its type in the world.

“We’re one of the few car manu-facturers out there that teach collisionrepair,” Risdon said. “By offering colli-sion professionals the latest tools to fixthese vehicles, it helps the industry as awhole. It impacts the body shops, be-cause their techs and painters can savetime and thereby money. It’s essentialinformation for any tech or painter andeven more crucial for those who workon a flat rate/commission/bonus plan.As these cars become more and moresophisticated, the proper informationand associated procedures will be moreessential than ever before.”

Risdon stressed the importance ofaccessing Toyota’s ongoing collisionrepair bulletins, because new, impor-tant information becomes available toshops all the time, he said. “By stayingon top of the changes, you can elimi-nate the guesswork. With our latestmodels and all of the new technologies

involved, such as the 2012 Camry SEwith the new Entune in-car technology,for example, you’re going to need thebest, most updated repair proceduresavailable. We want your techs fixingthese cars with confidence and correct-ness and without training and data,

they’re just guessing. If you don’t havethe latest technical information, you’reprobably fixing it incorrectly.”

Hybrid classes are one of the mostcoveted forms of training offered by theUniversity of Toyota for obvious rea-sons, Risdon explained. When he askedhow many shop owners in attendancehad at least one Prius in their shop rightnow, more than a few hands were raised.“Our 100% dedicated hybrid training isworld-class and our advanced hybridtraining is very popular with body techsnationwide right now. By coming to theuniversity and tapping into this training,you learn how we want it done, andthat’s vital to developing a solid, safeand effective repair plan.”

As Toyota strengthens its position

in the development of new vehiclesusing emerging technologies, the Uni-versity of Toyota will be offering newtraining, Risdon said. “We’ve got a lotof new, exciting things on the boardsright now, including hydrogen vehi-cles and natural gas cars. We’ve alsobeen exploring the viability of an au-tonomous car, which drives itself.That’s obviously down the road, butwe should all accept the reality thatwithin the next six to eight years, con-ventional gas-powered cars will be theminority in this country.”

The University of Toyota was cre-ated to help the collision industry to fixits cars right, even though it’s not themanufacturer’s main objective, Risdonstated. “We’re actually in the car salesbusiness, not the repair business. But,we know that by fixing our vehiclesproperly the first time they come into

your shop, it provides a better customerexperience, makes everyone’s liveseasier and makes your techs more pro-ductive. And that’s we provide all thisinvaluable training.”

In other CAA East Bay news,Mike Govette from FinishMaster dis-tributed model trucks for the chapter’s15th annual Model Truck Customiza-tion event, to be held on Nov. 20 at theprestigious Blackhawk Auto Museumin Danville, CA.

East Bay CAA Members Get Schooled at University of Toyota

Arth & Sons in Oakland, California was well-represented at the meeting with (from left) OwnerRon Arth, Body Tech Scott Ledbetter and Assistant Manager Tom Lehman enjoying the evening.

University ofToyota’s ChrisRisdon was thekeynote speaker atthe East Bay CAA’sSeptember meeting

The model trucks for this year’s Toys for Tots Model Truck Customizing Competitionon November 20th were passed out to the participants after the meeting. From left,Bill Andrews, head automotive instructor at College of Alameda, Event Coordina-tor/Founder Mike Govette and Peter Lock, head automotive instructor at ContraCosta College get ready to compete

Estimator Bernadette Lira (at left) and Owner Giovanna Tanzillo from Uptown Body & Fender inOakland brought Michael Bott (center) owner of Torchio’s Auto Repair as their guest to theEB-CAA’s September meeting

Follow us on Twitter:@autobodynews

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Page 21: November 2012 Southeast Edition

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 21

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Honda has developed some new tech-nology for vehicle construction, andthey have applied it for the first timein the world to a mass-production ve-hicle; and not just any mass-produc-tion vehicle, the Honda Accord, one ofthe top-five selling vehicles in theUnited States.

The newly redesigned 2013Honda Accord went on sale in theUnited States on September 19, and itsconstruction is the result of Honda’snext-generation Advanced Compati-bility Engineering (ACE) body struc-ture which utilizes the new weldingtechnique as well as hot-stamped andother ultra-high strength steels to buildits cabin structure.

The Accord’s subframe is madewith a combination of steel and alu-minum joined together with a processcalled Friction Stir Welding (FSW).The continuous weld technology gen-erates a stable metallic bond betweensteel and aluminum by moving a ro-

tating tool on the top of the aluminumwhich is lapped over the steel withhigh pressure. Honda says the result-ing weld strength is equal to or greaterthan conventional MIG welding.

Honda also developed a non-de-structive inspection system for qualitycontrol that uses a highly-sensitive in-frared camera and laser beam to in-spect every unit. The carmaker saysthe Friction Stir Welding system it de-veloped for this process can be also beused for aluminum-to-aluminumwelding and could be used for pro-duction of a full-aluminum subframe.

The subframe however, shouldnot cause many repairability issues ac-cording to I-CAR Technical Director

Jason Bartanen, asHonda provides no re-pair procedures at all forthe part, and specifiescomplete replacementonly.

“What will cause someissues is the high strengthsteel used in this car’sbody structure,” saidBartanen speaking fromthe I-CAR Tech Centre inAppleton, Wisconsin.

The newly redesigned2013 Accord body uses

55.8% high-tensile steel, more than inany previous Accord. And 17.2-per-cent of the steel is grade 780, 980 and1,500 MPa, extremely high gradesthat have never before been used inany Accord, and in fact, very fewother cars, according to Bartanen.

“This is one of the first cars touse such high strength steel (1500MPa) in its body structure,” says Bar-tanen. “Most applications only use itonly for bumper beams. But the new

Accord uses ultra-high strength steelin its A pillar and B pillar reinforce-ments as well as its rocker reinforce-ments. Honda is requiring MIGbrazing only in these areas.

While Honda is not the very firstto build such a body structure, none ofthe previous vehicles even come closeto the sales volume of the Accord.“The Volvo XC60 is also using similarultra-high strength steel (1,500 MPa)in the structure,” Bartanen noted.

The Accord has historically soldbetween 250,000 and 400,000 units ayear compared to XC60 sales of ap-proximately 25,000.

Bartanen said I-CAR is currentlyupdating its Honda andAcura training avail-able online. The newAccord will be coveredin I-CAR’s CollisionRepair Overview forHonda and Acura Vehi-cles (HON01) andshould be availablewithin the next fewmonths.

“We have an Ac-cord body in white on

its way here right now,” Bartanennoted. “We are going to paint it toshow the various steels used in this carand prepare it for display at the SEMAshow.”

The ninth generation Accord,which also contains Forward CollisionWarning and Lane Departure Warningtechnologies, officially debuted atdealerships across the U.S. on Sep-tember 19 at a base price of $21,680plus destination charge.

Honda Develops New Welding Technology, UHSS Structure for 2013 Accord

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Matrix Electronic Measuring, Inc. Awarded Two PatentsMatrix Electronic Measuring Inc., adeveloper of advanced measuring de-vices for the automotive collision re-pair industry, has obtained two patentsfor its new vehicle measurement sys-tem called the Matrix Wand.

Rob Bailey, director of sales en-gineering and business developmentfor Matrix Electronic Measuring Inc.,details how the Matrix Wand adds ef-ficiency and quality to shop estimat-ing procedures. Watch now »

The Matrix Wand is a handheldvehicle measurement device used forestimating structural collision damage.The tool, which was publicly launchedin April, uses two cameras that capturethree-dimensional images of vehicledamage. Estimators can use the imagesto measure all damage on a vehicle’sbody and engine components, revealhidden damage, verify repair qualityand enable predictive wheel alignment.

Matrix has been awarded twopatents for the measurement systemand method, which was developed byGuidelight Business Solutions, aglobal business and enterprise appli-cation development company basedin Austin, Texas. Matrix has twomore patents pending on the tool,which the company expects to beawarded soon.

With ownership of the patents,Guidelight said Matrix will be able toreduce the number of competitors inthe market and obtain revenue from li-censing.

“The patented innovations Guide-light has developed for Matrix pushesthe Matrix Wand to the forefront of theburgeoning marketing of vision sys-tems and augmented reality,” saidGeorge Stevens, CEO of Guidelight.

For more information about theMatrix Wand, visit thematrixwand.com.

Page 23: November 2012 Southeast Edition

cannot do, it is necessary to ask whyor who says so. Erica stressed, “theycan’t make you do anything becauseyou don’t work for them.”

For the final segment, Tony intro-duced the Stump the Layers panelwhich consisted of Erica Eversman,John Parese and Kurt Lundgren. Re-sponding to questions from the audi-ence, the three attorneys and theseminar attendees discussed topicssuch as liens, total loss, consumerfraud, repair contracts, unfair claims,how to handle estimates, supplemen-tals, court cases, invoices, short pay,explaining things to customers, codesof ethics and bringing claims. As hewrapped the event up, Tony explainedthat he wants everyone to understandthat collision shops do not need to keepoperating the way the insurance com-panies want them to. His goal is toshow independent collision shops howto successfully operate their shopswithout outside influence by focusingon the legal aspects of running theirbusiness without insurer interference.

For more information contact:CCRE at theCCRE.com.

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 23

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Start Fixing“The RightWay”

American Honda Motor Co, Inc. an-nounced the launch of the ProFirstbody shop recognition program onOct. 15. Open to both dealer-ownedand independent collision repair shops,the program is designed to promote thecorrect, complete, and safe repair ofHonda and Acura vehicles and providesupport to shops that have demon-strated a commitment to a high level ofcustomer care and satisfaction.

To qualify, shops must conduct aminimum number of transactionsusing OEConnection’s Collision-Link software, be a designated I-CAR Gold Class Professionals®

business, and have at least one per-son presently employed by the shopwho has completed the I-CAR course,Collision Repair for Honda and AcuraVehicles (HON01).“CollisionLink is a component of theProFirst program because of the nu-merous benefits it provides to bothshops and dealers, said Bill Lopez, Di-rector of OEM Program Developmentat OEConnection. “Through Colli-sionLink, shops can take advantage ofHonda’s Collision Select parts pro-gram, which enables them to use moregenuine Honda and Acura parts whilemanaging their overall repair costs.”Lopez added, “CollisionLink alsohelps to increase efficiencies and parts

ordering accuracy, which means fewerreturns, faster cycle times and, ulti-mately, more satisfied customers”

John Van Alstyne, I-CAR CEO& President stated, “The ProFirst bodyshop recognition program, in conjunc-tion with the I-CAR Gold Class Pro-fessionals designation, will alignparticipating shops with a training pro-gram that is meant to elevate the cus-tomer experience and enable shopemployees to work up to their full po-

tential.” Van Alstyne added, “Trainingand knowledge provide a platform forbusiness and personal excellence, gen-erating benefits for both the organiza-tion and the customer, includingincreased operational efficiencies, re-duced cycle times, minimized repairmistakes, and most importantly, com-plete and safe repairs.”

Qualifying shops will receive ahandsome plaque, a place on the shop-locator tool on the recently-launchedAmerican Honda consumer web site,free access to the Honda and Acuraparts catalog, parts bulletins, serviceand repair information, and more.

Shops will benefit through in-creased recognition of the shop’s pro-fessionalism, increased opportunity toreach more customers and the promo-tion of customer confidence and loy-alty.

To see full program details, go toprofirst.honda.com or profirst.acura.com.

Each shop must enroll as a sepa-rate entity at its place of business asthe ProFirst web site will manage the

shop’s access to the parts catalogsand service information.

Jim Roach, Senior Vice Presi-dent for American Honda’s Parts &Service Division noted, “We arepleased to be working with OECon-

nection and I-CAR for the ProFirstprogram. As the industry changes andautomotive technology changes, wemust make changes in our programs tokeep pace. ProFirst, and our associa-tion with both OEConnection and I-CAR, is a step in the right direction.ProFirst is a win / win for all involved,especially for Honda and Acura own-ers.”

For more information on the I-CARGold Class Professionals® program, visitthe I-CAR website (www.i-car.com) andclick on “Collision Repair Gold ClassProfessionals® “ under the “Training andRecognition” tab.

American Honda Launches ProFirst Shop Recognition ProgramContinued from Page 19

CCRE Seminar

Page 24: November 2012 Southeast Edition

24 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Page 25: November 2012 Southeast Edition

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 25

Autoway HondaClearwater

888-205-2564727-530-1173

Dept. Hours: M-F 7-7; Sat 8-5; Sun [email protected]

Braman Hondaof Palm Beach

Greenacres888-479-0695561-966-5185

Dept. Hours: M-F 7:30-6; Sat 8-4:[email protected]

Classic HondaOr lando

888-893-4984407-521-1115

Dept. Hours: M-F 7-7; Sat [email protected]

Coggin Deland HondaDeland

800-758-0007386-626-1811

Dept. Hours: M-F 7:30-6; Sat [email protected]

Delray HondaDelray Beach

877-392-1150561-526-5351

Dept. Hours: M-F 7-6; Sat [email protected]

Ed Morse HondaRiv iera Beach

800-232-1098561-844-8089

Dept. Hours: M-F 7:30-6; Sat 7:[email protected]

Hendrick Honda DaytonaDaytona Beach800-953-4402386-252-2301

Dept. Hours: M-F 7:30-6; Sat [email protected]

Maroone Hondaof Hollywood

Hol lywood800-542-8121954-964-8300

Dept. Hours: M-F 7-7; Sat 7-5; Sun [email protected]

Rick Case HondaDavie

877-544-2249Dept. Hours: M-F 7-7; Sat 7:30-4

[email protected]

South Motors HondaMiami

888-418-3513305-256-2240Dept. Hours: M-F 8-7

[email protected]

Carey Paul HondaSnel lv i l le

770-985-1444Dept. Hours: M-F 7-7; Sat [email protected]

Ed Voyles HondaMariet ta

800-334-3719770-933-5870 DirectDept. Hours: M-F 7-7; Sat [email protected]

Gerald Jones HondaAugusta

800-733-2210706-228-7040

Dept. Hours: M-F 7:30-6; Sat [email protected]

Gwinnett Place HondaDuluth

800-277-8836678-957-5151

Dept. Hours: M-F 7:30-6; Sat [email protected]

Honda Mall of GeorgiaBuford/Gwinnet t678-318-3155

Dept. Hours: M-F 7-7; Sat [email protected]

Milton Martin HondaGainesv i l le

770-534-0086678-989-5473

Dept. Hours: M-F 7:[email protected]

Nalley HondaUnion C i ty

866-362-8034770-306-4646

Dept. Hours: M-F 7:30-7; Sat [email protected]

Southern Motors HondaSavannah

888-785-8387912-925-1444

Dept. Hours: M-F 8-6; Sat [email protected]

Jerry Damson HondaHuntsv i l le

800-264-1739256-382-3759

Dept. Hours: M-F 7-5:30; Sat [email protected]

Serra HondaBirmingham

800-987-0819205-949-5460

Dept. Hours: M-F 7:30-5; Sat [email protected]

Patty Peck HondaRidgeland

800-748-8676601-957-3400

Dept. Hours: M-F 7:30-6; Sat [email protected]

FLORIDA FLORIDA GEORGIA ALABAMA

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ACURA

Acura of Orange ParkJacksonvi l le

888-941-7278904-777-1008

Dept. Hours: M-F 7-8; Sat 7-5; Sun [email protected]

Duval AcuraJacksonvi l le

800-352-2872904-725-1149

Dept. Hours: M-F 7-7; Sat [email protected]

Rick Case AcuraFort Lauderdale800-876-1150954-377-7688

Dept. Hours: M-F 7:30-6; Sat [email protected]

Jackson AcuraRoswel l

877-622-2871678-259-9500

Dept. Hours: M-F 7-6; Sat 7:[email protected]

Nalley AcuraMariet ta

800-899-7278770-422-3138

Dept. Hours: M-F 7-7; Sat [email protected]

Southern Motors AcuraSavannah

800-347-0596912-232-3222

Dept. Hours: M-F 7:30-6; Sat [email protected]

Jerry Damson AcuraHuntsv i l le

800-264-1739256-533-1345

Dept. Hours: M-F 7-5:30; Sat [email protected]

GEORGIA

GEORGIA

Page 26: November 2012 Southeast Edition

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AUTOMAKER, OEM, AND RECALLAUTOMAKER, OEM, AND RECALL

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Autobody News November 2012FLORIDA • GEORGIA • ALABAMA • MISSISSIPPI

26 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Honda Recalls 820,000 Civics,Pilots Over Headlight ProblemHonda recently expanded itsMarch recall of vehicles with alow-beam headlight wiring issue toinclude 820,000 Civics and Pilotsin North America, its second bigexpansion of a recall in recentdays.

“[A] potential failure with thewiring of the headlight switch ...may cause the low-beam head-lights to become inoperative” inthe model-year 2002-2003 Civicsedans and 2004-2005 Pilot sportsutility vehicles that have beenadded to the recall, the carmakersaid in a statement. Meanwhile,some 550,000 model-year 2002-2004 CR-Vs and 2003 Pilots werethe vehicles named in the initial re-call in March.

Honda said the low-beamproblem could “increase the risk ofa crash,” but stated that “no crashesor injuries have been reported re-lated to this issue.” The companyadvised owners of the models inquestion to take their cars to author-ized Honda dealers for inspectionand replacement of components inthe headlight wiring system if nec-essary.

Honda also recently expandeda May recall related to a leakypower steering hose to include572,000 model-year 2003-2007Accord V6 cars in the U.S., in ad-dition to the 2007-2008 Acura TLmodels in the original recall.

High temperatures under thehood on those models can causethe power steering hose to crackand leak fluid that could causesmoke or even a fire. Honda saidone engine fire had been reportedbut no reported accidents or in-juries had occurred as a result ofthe problem.

The carmaker said owners ofvehicles being recalled for thepower steering hose issue wouldn'tbe able to have their cars fixeduntil early 2013 due to a shortageof parts.

The company said it beganmailing customers about the low-beam recall in late September.

General Motors Co. is recalling about41,000 Chevrolet, Pontiac and Saturncars in the United States because ofconcerns that a defective plastic partmight cause a fuel leak, according tothe National Highway Traffic SafetyAdministration. GM’s latest movefollows the company’s recall of473,841 Chevrolet, Pontiac and Sat-urns in September to fix a conditionthat could lead the cars to move whenthe drivers think they are in park. Po-tentially, 40,859 vehicles sold inArkansas, Arizona, California,Florida, Nevada, Oklahoma, or Texascould be affected in the latest recall.

GM Recalls 41,000 Chevy, Pon-tiac and Saturns Over Fuel Leak

Chrysler Halts Tests Plug-insAfter Batteries OverheatChrysler Group LLC temporarily sus-pended testing of its fleet of advancedplug-in hybrid electric vehicles afterthree of the pickups were damagedwhen their prototype lithium-ion bat-teries overheated.

The trucks were unoccupiedwhen the incidents occurred, and noone was injured. But the automakerwill replace the batteries in the testvehicles with units that use a differentchemistry.

“Hiccups happen. We’re disap-pointed, but it by no means spells theend of the program,” said Chryslerspokesman Eric Mayne.

The pickups are part of a fleet of109 trucks being evaluated by theAuburn Hills automaker and a group ofutility companies and municipalitiesacross 20 states. It is part of a programjointly funded by Chrysler and the U.S.Department of Energy.

They include the first-ever factory-produced vehicles capable of reversepower flow. The experimental systemwould allow fleet operators to use theirplug-in hybrids to supply electricity fora building during a power outage, re-duce power usage when electric ratesare high or even sell electricity back totheir utility company.

“You can link them all togetherand establish your own mini grid,”Mayne said.

Chevy Dealer Sells Car forWrong Price, Buyer ArrestedA Virginia man spent four hours in jailafter purchasing a Chevrolet Traversefrom Priority Chevrolet in Chesa-peake, VA. The dealer’s sales staff ac-cidentally sold the SUV to DannySawyer for $5,600 less than theyshould have, and when Sawyer re-fused to sign a new, more expensivecontract for the correct amount, thedealership called the local police al-leging the buyer had stolen the vehi-cle. Law enforcement then pickedSawyer up and held him for four hoursbefore getting the situation straight.

Dennis Ellmer, president of Pri-ority Chevrolet, says he owes Sawyeran apology on behalf of the dealership,and had intended to do right by thebuyer by letting him have the vehicleat the agreed-upon price. But Sawyer’slawyer says it’s a little too late for say-ing sorry. The briefly-incarceratedowner has filed two lawsuits againstthe dealer, accusing the business of ma-licious prosecution, slander, defama-tion and abuse of process. All told, thesuits seek a total of $2.2 million indamages, plus attorney fees. That$5,600 seems awfully cheap now.

GM Recalls SaturnsGeneral Motors is recalling certainmodel year 2007-2010 Saturn Auraand model year 2008-2010 ChevroletMalibu and Pontiac G6 vehicles,equipped with a 4-speed automatictransmission. On these vehicles, thetabs on the transmission shift cableend may fracture and separate.

If the tabs were to fracture andseparate, the shift lever and the actualposition of the transmission gear maynot match. The driver would be ableto move the shifter to PARK and re-move the ignition key, but the trans-mission gear may not be in PARK.The vehicle may not be able to berestarted and the vehicle could rollaway after the driver has exited thevehicle, resulting in a possible crashwithout prior warning. GM will no-tify owners, and dealers will install aretainer over the cable end or replacethe shift cable as necessary. This serv-ice will be performed free of charge.

Dodge Charger As All-WheelDrive Enters Police MarketChrysler Group is upping the ante in thebattle for the police cruiser market, of-fering a new all-wheel-drive version ofits Dodge Charger Pursuit sedanequipped with a powerful 5.7-literHEMI V-8.

“Adding available all-wheel-drivecapability to the already popular DodgeCharger Pursuit will broaden theCharger’s appeal to police departmentsthat are accustomed to dealing withrough winters and adverse weather con-ditions,” said Peter Grady, vice presi-dent in charge of fleet operations for theAuburn Hills automaker.

“With the Charger Pursuit now of-fering dual capability of both rear- andall-wheel-drive, we’ll be able to meetthe needs of our police fleet customersacross the country.”

The all-wheel-drive version willbe equipped with the same engine as theHEMI-powered rear-wheel-drivemodel that achieved the fastest-ever laptime at the 2012 Michigan State Police’sVehicle Evaluation Test at GrattanRaceway in Michigan. The engine de-livers 370 horsepower and 390 lb.-ft. oftorque.

GM Recalling Some SonicsGeneral Motors is recalling certainmodel year 2013 Chevrolet Sonic ve-hicles manufactured from May 29,2012, through August 29, 2012.When a turn signal lamp fails to op-erate, the Body Control Module inthese vehicles does not detect thiscondition and will not indicate thecondition to the driver. These vehiclesfail to conform to Federal Motor Ve-hicle Safety Standard No. 108,“Lamps, Reflective Devices, and As-sociated Equipment.”

If the driver is not aware that theturn signal is not functioning anddoes not have the light repaired, otherdrivers may not be alerted that the ve-hicle is turning, increasing the risk ofa crash. GM will notify owners, anddealers will reprogram the BCM andthe vehicle’s key fobs, free of charge.The safety recall began on October 3,2012.

Page 27: November 2012 Southeast Edition

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 27

Chrysler Sales Up for Smalland Mid-Sized CarsStrong sales of small and mid-sizedcars propelled Chrysler Group to itsbest September since 2007 and its30th consecutive month of year-over-year sales gains.

The automaker sold 142,041units last month, up 12% from Sep-tember 2011.

Car sales rose 27% to 42,050,while sales of light trucks climbed6% to 99,991.

Through September, ChryslerGroup’s sales totaled 1,250,670, up24%.

All of the automaker’s brandsposted gains in September, with Ramrecording the smallest gain at 4% andFiat the largest at 51%. Chrysler saidsix of its vehicles had record Sep-tember sales.

“With our current productlineup, record low interest rates anda stable U.S. economy, we remainoptimistic about the health of theU.S. new vehicle sales industry andour position in it,” Reid Bigland,Chrysler’s head of U.S. sales, said ina statement.

The Dodge Avenger recordedthe largest gain last month, up 89%to 8,716 units. Sales of the Fiat 500also rose sharply, climbing 51%.

General Motors said it will hire 3,000Hewlett-Packard Co. employees aspart of its ongoing effort to bringmost information-technology workback in-house.

The hiring will be part of a newmulti-year software and servicesagreement between the two compa-nies. GM described the deal as “cost-neutral,” but it did not provide anyadditional details on the size or lengthof the contract or where the workerswill be located.

The employees being hired al-ready work on GM’s business at HPand are expected to be on GM’s pay-roll within six months. An undis-closed number of HP employeescurrently assigned to GM are not af-fected, the companies said.

“These agreements with HP willenable us to accelerate the progress ofour IT transformation by delivering in-creased innovation and speed of deliv-ery to our GM business partners, andreduce the cost of ongoing IT opera-tions,” Randy Mott, GM’s chief in-formation officer, said in the statement.

GM Will Hire 3,000 HP Workers toBring Info Tech Work in-house

Toyota to Add 21 New Hybridsin Next Three YearsToyota Motor Corp. is boosting itsgreen vehicle lineup, with 21 new hy-brids in the next three years, a newelectric car later this year and a fuel cellvehicle by 2015. Japan’s top automakeroutlined its green vehicle plans amidgrowing concerns about global warm-ing and surging gas prices. Toyota willoffer an electric compact called eQ,based on its iQ model, in Japan and theU.S. in December though the numberof the vehicles made will be extremelylimited —about 100. The fuel cell ve-hicle, which runs on hydrogen, will beoffered from 2015.

U.S. Sales Up, GM & Ford DownU.S. auto sales, led by Toyota, Kia,American Honda and Volkswagen,rose 13% last month as the annualizedpace of sales accelerated to 14.9 mil-lion—the highest rate since March2008. The overall results topped ana-lysts’ expectations and signaled theauto industry is poised to continueovercoming mixed economic reportsto finish the year on a strong note.

VW Beetle Convertible to GetPlatform Shared with Jetta, GolfThe convertible version of the Volk-swagen Beetle will get its debut at theLos Angeles auto show in late No-vember, shortly before the car goes onsale in the United States. The launchof the 2013 VW Beetle convertibletrails the arrival of the redesigned Bee-tle coupe by about a year in the U.S.,where Volkswagen expects to gain amajority of sales. Both Beetles useVW’s PQ35 front-drive platform thatis shared with the current Jetta andGolf. VW says the Beetle convertible’sfolding cloth top can be raised or low-ered in about 10 seconds. Safetyequipment includes rollover bars con-cealed behind the back bench seat. Ifthe car’s safety system senses a crash,the rollover bars are deployed.

Maserati Recall: Brake LightsMaserati is recalling almost 1,800 ofits 2008-10 GranTurismo coupes andconvertibles for what it calls a “devi-ation” in the manufacture of taillightassemblies. The assemblies’ bulbs,including those in the brake lights,may fail, the automaker informed theNational Highway Traffic Safety Ad-ministration.

Maserati said it investigatedafter noticing a large number of war-ranty claims. The high-centered brakelight, it noted, was not affected.

www.autobodynews.comCHECK IT OUT!

www.autobodynews.comCHECK IT OUT!

Page 28: November 2012 Southeast Edition

“I wish I had a nickel for every timethat happened.”

Yes, that’s an overly-used ex-pression, but it applies to so manythings. How rich would you be, forexample, if you could charge a nickeltoll for every worthless adjuster thatwalked through your door? I’m guess-ing that you are now imagining your-self as Bill Gates or Warren Buffett.

Well, if you’ve read any of myprevious columns, you know that I amnow going to give you the other sideof that tollway coin. Yes, the one youjust collected from one of my knowl-edgeable adjusters.

I personally believe adjusters arean underappreciated segment in thisindustry, especially as it relates to theperception of the body shop. Moreoften than not, the lowly adjuster isviewed solely as a gate-keeper, stand-ing between you and the pot of goldthat insurance companies report mak-ing each year.

Truthfully speaking, we realizeour house isn’t always in order interms of adjusters, which is the reasonwe spend so much time, money andeffort to train, develop and retain staff.Although you may view our efforts aspathetic or perhaps only “windowdressing,” we view your industry’scorresponding efforts as non-existent.

Think about it: While we may notalways do an exceptional job, the per-son most impacted by our lack of ex-perienced adjusters is our owncompany. The cost of an inaccurate in-surance estimate theoretically doesn’tcost your business money, providedyou don’t assume the insurance esti-

mate is 100 percent accurate. Mostshops will use the insurance estimateas a baseline and make adjustments.Other more independent thinkingshops will refuse to use it at all andwrite their own instead. So the biggestcost to a shop from an inexperiencedinsurance adjuster is probably theprice of perception: If the adjusterdoesn’t prepare a thorough estimateand there is a large supplement, theconsumer may question the shop’s in-tegrity.

I don’t want to undermine theprice you have to pay for our inexpe-rienced adjusters, but the price we payfor YOUR inexperienced “adjusters”can’t be measured. There’s a financialcost as well as the tremendous nega-tive impact it has to CSI results.

We realize our house isn’t inorder, but have you seen the mess inyours? Adjusters may seem like easytargets as shops lash out against insur-ers. I guess to some extent it’s under-standable. I would be frustrated too ifI was continually arguing why Ineeded time to do a specific labor op-eration. But before you throw a stoneat the window of our house, take alook inside yours. I can see inside andyou are in dire need of Martha Stew-art, Better Homes and Gardens and aBob Villa make-over.

The topic of inexperience orpoorly-trained shop “adjusters” is oneI’ve never seen discussed in any trademagazine or at any industry even. I’mnot sure why. Maybe because writinga proper estimate, speaking profes-sionally to a customer, and handling aclaim from start-to-finish is consid-

ered Body Shop Estimating 101. Toput it in school terms, it’s a prerequi-site to do the job. If you classify your-self as a shop estimator, you can do allof those things. right?

Wrong. Similar to our adjusters,shop “adjusters” come in all shapesand sizes. Finding someone that hasthat trifecta of shop estimating skillsis as rare as a Buffalo Nickel. If youhave one, consider yourself lucky. Iknow how difficult it is. That’s whywe insurers invest so heavily in train-ing. (Please hold your laughter. Yes,we do invest a lot.)

I apologize for being cynical, butI wonder why shops spend so littletime training their adjusters. Is it ad-vantageous to have an inexperiencedperson writing estimates? Assumingthat there is no financial gain, the lackof attention to the details of customerservice is reprehensible in a day andage where customer service is a hugepriority in any business. Your inexpe-

rienced adjusters hurt our businessand the performance of your shop.

I can assure you that a shop withoutstanding KPIs (key performanceindicators) is usually the direct resultof a high-quality shop “adjuster.” Poorperforming shops are usually rife withinexperienced adjusters, high turnoverand a lack of employee ownership ofthe customer experience and opera-tional results.

Insurers are inherently processoriented. We can’t understand whyshops have no problem seeing ourdirty laundry but can’t see the clotheson the floor of their house that theyjust tripped over.

Please train your people and audityour staff like we do. If you do, allthree of us win.

Got a comment or question you’dlike to see the Insider address in a fu-ture column? Email him at [email protected].

28 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

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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]

The Wheels N Motion Car Club ofTullahoma, TN, recently awardedthe Collision Repair Technologyprogram at Tennessee TechnologyCenter Shelbyville a $1000 scholar-ship, which will be given to two stu-dents.

Pictured are members of the clubwith the students who will receive thescholarship and their Instructor,Richard Talley.

Tennessee Collision Repair Tech Students GetCar Club Scholarship

(left to right): Richard Talley - Instructor,Nathan Hill - student, Scott Clark - student,Chris Hill - club member, Ken Preston - clubmember, Allen Perry - club member

Page 29: November 2012 Southeast Edition

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 29

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Advance Auto Parts, a leading retailerof automotive aftermarket parts, ac-cessories, batteries, and maintenanceitems, announced that the companyand its vendor partners raised $2 mil-lion for four charities at its recent in-augural charity Pro-Am tournament.Proceeds from the Pro-Am benefitedJDRF, the American Cancer Society,Boys & Girls Clubs of America andBuilding Homes for Heroes. Celebrityteams from the PGA Tour and enter-tainment industry golfed with vendorsponsors, with each team competingfor a share of the $2 million purse.

“I am extremely proud of the im-pact our vendors have made and thecommitment they have shown to sup-porting Advance’s charitable efforts.It’s been a humbling and inspirationalexperience to witness our vendors,team members and communities cometogether in support of these wonderfulorganizations,” said Darren Jackson,President and CEO.

“I am extremely proud of theimpact our vendors have made andthe commitment they have shown tosupporting Advance’s charitable ef-forts,” said Charles Tyson, SeniorVice President, Merchandising andMarketing.

Automotive Training Institute (ATI)has announced plans to expand itstraining curriculum and coachingsystem into the collision repair in-dustry.

“For nearly 30 years, ATI hasbeen helping thousands of automo-tive repair shop owners increase theirprofits, reduce stress and grow theirbusinesses into the companies oftheir dreams,” said Chris “Chubby”Frederick. “We recognize that colli-

sion repair busi-ness owners canbenefit from ourexperience andexpertise in busi-ness training,coaching andconsulting serv-ices to improvetheir businessesin this highly

competitive market. We are ex-tremely pleased to have TomMcGee, director of ATI Collision,join the ATI team to lead the devel-opment and introduction of the ATICollision program.”

McGee brings more than 30years of experience in the collisionindustry to the ATI team.

ATI Expands Curriculum toInclude Collision Repair

AkzoNobel has signed an agreement tosupply advanced paint technology toMcLaren Automotive, building on thesuccess of the existing corporate part-nership with the Vodafone McLarenMercedes (VMM) Formula 1 team.Through its Sikkens automotive brand,AkzoNobel has been the official sup-plier of paint solutions to VMM since2008. The new agreement now extendsthis relationship to include road carsand will see the company offer tech-nology-led paint solutions for the MP4-12C and MP4-12C Spider, as well asthe P1 when it enters production.

“We’re proud to have been se-lected to supply paint for McLaren’sroad cars,” said Keith Nichols, Ak-zoNobel’s CFO. “The extension ofour technology partnership to includeroad cars confirms that our color ex-cellence and advanced coatings meetthe most stringent customer require-ments. Whether we are perfecting aparticular finish or meeting the needfor fewer layers of paint, offering acompetitive advantage and buildingstrong relationships such as this arevital for our business. We thereforelook forward to an ongoing and mu-tually beneficial cooperation withMcLaren.”

AkzoNobel Secures McLarenAutomotive Supply Agreement

The Automotive Aftermarket IndustryAssociation (AAIA) says it welcomesa thorough and objective World TradeOrganization (WTO) review of theexport subsidies China allegedly pro-vides to its auto parts manufacturers.Responding to the announcement byU.S. Trade Representative Ron Kirkthat the United States has requesteddispute settlement consultations withthe Government of China at the WTOconcerning China’s auto and autoparts “export base” subsidy program,AAIA reiterated its support for theU.S. government’s efforts to confrontforeign trade distorting measures,while encouraging the USTR to rec-ognize the increasingly globally inte-grated nature of the automotiveaftermarket and the potential for un-intended consequences to a significantsector of the U.S. economy.

“AAIA is committed to fairnessin the international trading systemand supports efforts to ensure thatWTO members abide by their com-mitments,” said Kathleen Schmatz,AAIA president and CEO. “[Wehope] to avoid a prolonged arbitra-tion and appeal process and potentialChinese retaliation aimed at the U.S.automotive aftermarket,” she added.

AAIA Expresses Support forWTO Actions on China

Tom McGee

Advance Auto Parts HelpsRaise $2M for Charities

Page 30: November 2012 Southeast Edition

While thinking through some socialmedia topics recently I realized thatthe original and still current championof real social media is the simplephone call.

In the past several years, I’vecalled literally hundreds of bodyshops, vendors and collision-relatedbusinesses over the phone to interviewthem for articles I write for AutobodyNews. And every time I encounter astrange phone experience when call-ing a body shop I’m surprised. In anybusiness, the phone is usually the firstcontact you’re going to be makingwith the public, and that’s why it’s soimportant. And in the collision indus-try it’s even more crucial.

Think about it. Your potential cus-tomer gets in an accident. They getthree or four names of body shops intheir area from their insurer and theystart calling them. If they’re left onhold or the person answering thephone is rude or inattentive, manypeople will simply hang up and callthe next shop on their list. So the bigquestion is—do you give good phoneor are you currently losing business byfalling short in this important area ofcustomer service?

Although e-mail and text messag-ing have become more popular waysof communication, we still use ourtelephones almost constantly for bothpersonal and business reasons. Itseems that good telephone mannersare common sense, but my recent ex-periences have led me to believe thatthere are many lessons to be learnedby body shops in the arena of tele-phone etiquette.

The topic of phone protocol andhow some body shops don’t seem tovalue the importance of it becamemore apparent recently when I wascalling a body shop to interview theowner for an upcoming ABN article.First, the phone rang at least 12 timesbefore someone picked up. Okay, I’mthinking, they’re a busy shop, noproblem. It happens.

Then, I heard a voice, but for justa millisecond. “Hold.” It made me feellike I was ordering a pizza for deliv-ery. Without a simple “hello” or “I’mreally busy, can I get back to you injust a minute?” I sat on hold for at

least five minutes, and then the callwent directly to voicemail (or in thiscase, I call it “voice jail’) without anyexplanation. No greeting, just a beep.

So, I hung up and called back sothat the painful process could resumeall over again. This second time, thewoman answering the phone shoutedout “Bill’s.” Not “Bill’s Collision,”which is the actual name of the busi-ness.

But at least this time around wehad a brief conversation. I could hearher chewing gum and her indifferenceto my inquiry was immediately evi-dent. “Is Bill there?” I asked. “No,”she replied. “Do you know when he’llbe returning?” After a long sigh, shesaid, “No idea. Do you want his voice-mail?” Been there, done that, Ithought. “We’re really busy rightnow,” she added. And without any fur-ther warning—boom, I was back onhold.

At that point, I hung up oncemore and decided to try again later.But each time I called, I got the sameperson and each time she seemed evenmore bored than the time before. Icould almost hear her eyes rolling!

The other call I hate is the onewhere the receptionist grills you andafter a series of questions you mightbe allowed talk to the boss. I can un-derstand, because most body shops re-ceive 10-15 sales calls every day, soscreening out the wannabes is crucialand a good phone person is adept at it.But, when you feel like they’re inter-rogating you in the process, that’s badphone protocol. Hey, I’m not trying toreach Obama, it’s a body shopowner—so why are you making mefeel like I’m the paparazzi chasingyour boss down? It’s all about the waythings are said and when a reception-ist gets too protective of his/her boss,it’s a real turn-off.

So, how should body shop em-ployees act on the phone? I asked anexpert on the subject. Her name isCynthia Grosso, a business consult-ant, etiquette coach and author of theowner of the Charleston School ofProtocol and Etiquette in Charleston,SC. She gave me a very simple list ofdo’s and don’ts about phone manners:● Never call someone “Honey,

sweetie, or darling” on the phone, es-pecially if you don’t know them. It’stoo personal and unprofessional.● Be conscious of the tone of yourvoice, especially when you answer thephone. (If you’re having a bad day,please keep it to yourself.)● Be sure to identify yourself imme-diately when the person you are call-ing answers. Dead air will kill a callevery time.● If you happen to be screening calls,do it gracefully without acting like abodyguard and offending the personwho is calling.● Do not eat while talking on thephone. That’s why lunch breaks wereinvented.● Always return phone calls. Make apoint to find the time. It only takes afew seconds to call someone back orto send an email explaining that youwill call them back when you areavailable. Not returning a phone callis the worst offense and inexcusable.

The rule on returning phone calls iswithin 24 hours and the standard foremails is 48 hours for a return re-sponse.

“Phone communication is allabout finding a common language,”Rosso explained. “Everyone wants tofeel important, and keeping that inmind is key to any successful phoneinteraction from a customer perspec-tive. Don’t leave people on hold formore than 30 seconds without check-ing in. And remember this—the tele-phone is your front other door and anextremely valuable component of howto run your business.”

30 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

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Equus

The Original Social Media, and Most Important, is the Phone Call

with Ed Attanasio

Shop and Product Showcase

with Ed Attanasio

Shop Showcase

with Ed Attanasio

Social Media for Shops

with Erica SchroederShop Showcase

The Right Causewith Mike Causey

Industry Insightwith John Yoswick

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

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www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 31

CARSTAR has announced the recip-ients of the Financial Focus GroupsOutstanding Performance honorsamong its U.S. CARSTAR stores andfranchisees. CARSTAR CEO DavidByers recognized the winners onstage during the annual CARSTARconference in San Antonio.

In the category for top Finan-cial Focus Groups, four CARSTARstores were honored for showing themost improvement in sales, marginsand EBIDTA categories.● Group 1’s top performer was C &H CARSTAR Collision in Fairborn,OH, owned by Ed Collins.● In Group 2, for the 2nd consecu-tive year the top performer was Mar-shall’s Autobody CARSTAR inBillerica, MA, owned by Jim Mar-shall.● Taking the honors in Group 3 wasGapsch’s CARSTAR Collision Cen-ter in St. Louis, Mo., owned by LisaRush.● Group 4’s top performer wasGeorge’s CARSTAR Body Shop inChicago, IL, owned by Brian Be-nakos.

“These owners have becomerole models for the entire CARSTARfamily,” said Byers.

CARSTAR RecognizesOutstanding Performers

CCC Information Services Inc. hasannounced the availability of the Au-tumn update to its 2012 CrashCourse Report. The report, whichlooks at the key drivers and trendsimpacting the automotive claims andcollision repair industries, has up-dated analysis and projections on thetopics with greatest impact on the re-pair and auto insurance market, in-cluding the total cost of repair, losscosts, and total loss frequency.

“As we look at the first half of2012, many of the trends and businessdrivers impacting the industry haveremained steady,” said SusannaGotsch, Lead Analyst for CCC Infor-mation Services. “One area we con-tinue to watch closely is the affect theaging vehicle population will have oninsurers and repairers. Vehicles agedseven years or older have the greatestlikelihood of being totaled. At mid-year 2012, 47% of vehicles on theroad meet that criteria, driving totalloss frequency up overall, which weexpect to continue into 2013.” To seeinformation on the macro and microtrends, including vehicle sales statis-tics and accident and claim frequency,go to cccis.com, Property and Per-spectives link.

CCC Releases 2012 CrashCourse Report

Insurance industry veteran Don Porterhas been named the new Director ofOperations/Business Development forthe United Recyclers Group (URG),after a long career at State Farm Insur-ance. Don most recently served as aProperty and Casualty Claim Consult-ant at the company’s corporate officein Bloomington, IL.

“The wealth of auto recycling in-dustry experience that Don Porterbrings to URG is very impressive,”says Michelle Alexander, executivedirector at URG. “With 34 years in theinsurance industry and a broad range ofprofessional involvement in various in-dustry organizations, including URG,Don is perfectly suited to helping ustake URG to the next level. Initially, heis going to focus on the growth of oursalvage auction program. Don is alsogoing to work in other industry seg-ments to identify growth opportunitiesand build existing relationships that willbenefit URG members.”

“We want URG to become thebrand name nationwide for anyonewho wants to buy recycled auto parts,”said Porter.

He can be reached by cellphone (309-310-6448) or by e-mail([email protected]).

Don Porter Joins UnitedRecyclers Group (URG)

The Collision Repair Education Foun-dation recently announced that 70schools from 31 U.S. states applied toreceive its 2012 Ultimate CollisionEducation Makeover $50,000 schoolgrant.

One secondary and one post-secondary collision repair school willbe selected for this year’s grant. Thetwo winning schools will be an-nounced at the Education Founda-tion’s industry reception during the2012 SEMA Show in Las Vegas. Thereception is scheduled for Oct. 30 at9:30 p.m. at the Las Vegas Hotel.

“I would like to congratulatethese Makeover applicant schools fortaking the time to complete the appli-cation. The Education Foundation willwork to see that all of the applicantschools will benefit from this grant,”said Clark Plucinski, executive di-rector of the Education Foundation.“As the Education Foundation nowhas the itemized $50,000 wish lists forall of these collision programs, we canreach out to our industry partners andwork to have those items donated.”

Industry organizations interestedin helping should contact BrandonEckenrode, at [email protected].

Education Foundation Gets70 Makeover Applications

Page 32: November 2012 Southeast Edition

A NACE panel of three representa-tives from top auto insurers discussedindustry consolidation, technologyand future trends during the CollisionIndustry Forum insurance panel dis-cussion Oct. 12. Speaking on a panelmoderated by Dan Stander of FixAuto Highlands Ranch in Littleton,CO, the insurers responded to the not-icable consolidation trend affectingboth repairers and insurers, specifi-cally the growth of several MSOssuch as The Boyd Group, ABRA,CARSTAR, Service King and CaliberCollision—but also that of smaller re-gional MSOs.

“MSOs that can replicate qualityprocedures are attractive as a group,”George Avery of State Farm said.“Using a score card to rate MSOsacross the board represents an inter-esting opportunity. But just like inde-pendent shops, they must perform tostay on our system.”

Avery said that any MSOs on theirDRPs are measured as individualshops and must compete to perform onthat basis. He recalled State Farms’sexperience with M2, the 27-shop con-solidator in California that closedabruptly back in 2005, reinforced hiscompany’s interest in finding top-per-forming individual shops, whetherstand-alone or part of an MSO.

“State Farm maintains thatwhether you are an independent or anMSO, you should be able to compete,and so State Farm evaluates evenMSOs as individual repairers,” Averysaid. “I’m not discounting [theMSOs’] ability, but I am saying thatthose with individual repair facilitieshave skin in the game, and that canhave a lot of value on the customerservice side, which we’re all after.”

Rob Knott of Nationwide con-curred. “We think the mom-and-popsstill have a place,” Knott said. “Someof the challenges that the MSOs haveis over-saturation in certain market-places, so you’re not going to put (alltheir shops in a market) on (the directrepair program). And then there’s theconsistency issue, when they expandtoo fast and aren’t able to maintain thesame service levels and quality.”

Randy Hansen of Allstate alsosaid each facility on his company’sDRP, even if part of an MSO, has tostand on its own performance.

But the three acknowledged thatMSOs can offer some appealing serv-ices such as call centers, extended

hours and a single point-of-contact.Hanson said the collision repair in-dustry suffers from a “tremendousamount of inefficiency” that consoli-dation alone cannot cure. Instead,shops should consider expanding theirhours of operation or finding otherways to better utilize their facilitiesand equipment.

Consolidation in the insurance in-dustry is likely to continue as compa-nies seek to grow. “The only otherway to grow is by taking another com-pany’s customers,” Knott said, andthose are costly acquisitions becauseacquiring a new customer is seventimes more costly than retaining theirown customer, he said.

Avery added that MSOs presentan “interesting platform” in which toexperiment with a change on a largebut not national scale.

“You hear people talk about howthe model is broken,” Avery said.“There are components [of change]that could be perhaps introduced intoan MSO that you couldn’t quite intro-duce companywide. So I feel com-pelled to tell you, not to make anyonenervous about MSOs taking over, but Ido have to say that that is a place whereyou could possibly go and say, ‘Look,we’d like to try something different.’”Avery suggested later in the discussionthat attendees think like a young driverusing her mobile device to find outwhat to do after a minor accident.“What can we do together? Can wework together to offer her a 48-hour re-pair?” Avery asked. “You might say,‘Yeah, if you quit making me take allthese pictures and jump through thesehoops.’ And I might say, ‘Okay, I’llstop that.’ So as we look at the future,I’m leaning toward partnering and say-ing, look, that customer is going toleave us and go somewhere else. She isnot going to tolerate inefficiency.”

Cloud Computing and Data OwnershipKnott said technology changes soquickly that it’s hard for insurers and

repair shops to keep up. “Our cus-tomers are pushing insurance compa-nies to evolve with technology and achallenge is how fast can we adoptnew technology. But if we don’tchange we will be left behind.”

Allstate has consolidated 100legacy systems into one delivery plat-form, Hanson said. “It was tremen-dously complex and we spenthundreds of millions of dollars to im-plement it. We recently adopted cloudcomputing. It is very flexible and of-fers more applications and options."

With cloud computing conven-ience comes the more complex issueof data ownership.

“Cloud computing is great be-cause it allows you to access your data

anywhere,” Knott said. “However,there is great concern over data own-ership and who has access to the data.Hanson said the issue of data owner-ship is clear to Allstate. “We view it asthe customer’s data, not the shop’s orthe insurance company’s. It is our ob-ligation to keep it secure and protectit. State Farm is developing its owncloud and securing the data is one ofthe most important initiatives, accord-ing to Avery.

Advancing OEM technology is atrend that concerns repairers and in-surers. Stander asked: ”If cars won’t becrashing into each other due to acci-dent avoidance technology, what doesthat mean for repairers and insurers?”

Avery said that accident avoid-ance technology won’t be fully imple-mented for 15 to 20 years. “With orwithout that technology, we need tofigure out a way to help our customersin the future. Customers will not tol-erate inefficiency. They will find whatthey want with or without us.”

Hanson said the new OEM tech-nology has the potential to change theway insurers do business, but it’s notclear what those changes will be.

32 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

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Page 33: November 2012 Southeast Edition

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Page 34: November 2012 Southeast Edition

In the early ‘90s, the term “Piggy-back marketing” meant that the trial ofa new product on the market waslinked to another product that alreadyhad wide acceptance in the market-place. The intent was that this weakernew product would be “piggy-backed” on the strength of the “car-rier” product. Soon the practice wasexpanded so that many products were“piggy-backed” on products alreadybeing used. You see this all the timewhen you receive a credit card bill orgasoline credit card bill and find of-fers inside to buy a wide range ofproducts. You know this must be asuccessful strategy because it has con-tinued on so long.

The question is how can a fixedservice like collision repair, use“piggy-backing” to increase sales andbusiness volume? Marketing guru JayAbraham, in his great book GettingEverything You Can Out of All You’veGot, calls this a “host-beneficiary” re-lationship. Greatly simplified, it’s sortof a co-operative marketing planwhereby two (or more) companiesthat are non-competitive but possiblycomplement one another’s products orservices, can either bring customersand sales to one another’s businesses,or bring some other value.

Collision repair facilities engagein this kind of relationship all the time,but probably don’t think of it in thoseterms. DRP relationships are the bestexample. Insurance companies sendcustomers to the shop. The value theyreceive in return mainly consists oflower labor and parts and materialscosts. Dealership relationships andfleet management company relation-ships operate similarly. Some shopsalso have a more direct exchange re-lationship with a towing firm, pin-striping and graphics service, car

rental company, transmission repairshop, personal liability attorney or carwash.

As valuable as these relationshipsmay be, often a few major shops havemost of the best relationships in anarea locked up so that many othershops are out looking for business thehard way. For them, it may be time toengage in some creative thinkingabout other possible “piggy-back” orco-operative arrangements. Eventhough the SEMA Show in Las Vegasis becoming a major gathering placefor collision repair professionals, fewshops have yet to take advantage ofthe vast accessory marketplace. Deal-erships, of course, have entire acces-sory showrooms and enjoy asubstantial profit flow from accessorysales. But few shops can afford to in-vest in a similar showroom, and onlya few push for add-on accessory sales.An obvious “piggy-back” relationshipwould be with one or more accessorystores in the area. But less obvious areother retail establishments that offeraudio-video products or cosmetic ele-ments that car owners should find at-tractive. Some printers now offerwraps for cars. Since vision is impor-tant for safe driving, an optometristmight be interested in a co-op referralarrangement.

A common arrangement is cashfor referrals—especially with a tow-ing company or new and used cardealership. But this is mainly a one-way street and can be very expensive.The ideal co-op arrangement is onewhere the shop also refers business toits co-operative partner. The easiestway to do this is through promotionalprograms. Obviously website linksand other web-based connections areeasy to arrange, but if a shop alsosends out a newsletter or sends sum-

maries of completed work with enclo-sures there is an opportunity to refermany other kinds of businesses, muchas your credit card companies do. If areferring business also has on-lineand/or mail promotions, the arrange-ment would have your shop informa-tion (or even literature) included withtheirs.

Mailing a summary of com-pleted work after a vehicle has beendelivered is a very inexpensive wayto establish a longer-term relation-ship with customers. If a vehicleowner resells or trades-in the vehicle,having a summary of work done onthe vehicle may help keep the pur-chase price higher. Along with send-ing the summary, a promotional offerfor a discounted detail or cosmeticimprovement should be included,plus perhaps a specified discount fora friend, family member or businessassociate in need of vehicle body re-pair. For a shop with deeper pockets,

sending a before and after photoalong with the summary would beappreciated.

A more in-depth approach to theco-op referral partnership can extendto events, educational seminars orworkshops and more. Driving schoolswould be a good candidate for this.New drivers are brought to the shopfor a walk-through to see the damagethat may have been done to vehiclesbecause of careless or reckless driving.And if the driving school has a weeklyor monthly group presentation, theshop should always have someonethere to answer questions. Many shopsnow do exchange events with insur-ance agents and auto dealerships, butthis should only be a beginning. Thepossibilities of piggybacking on thesuccess of other businesses and enter-ing into cooperative promotionalschemes will only be limited by theimagination and ingenuity of a shopowner or manager.

34 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

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Industry Overviewwith Janet Chaney

Industry Interviewwith Janet Chaney

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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]. See Tom’s columns at www.autobodynews.com under Columnists > Franklin

PartsTrader announced that in two ofthe four markets where the system isbeing used, the minimum time a shopcan give vendors to quote prices onparts has been reduced to 30 minutes,rather than the previous one-hourminimum. The change is designed toimprove the efficiency of using thesystem for shops, the company said.

Suppliers can still quote prices in“overtime” but only until the shop be-gins review of submitted quotes. Thesystem also allows the shop to extendthe deadline in 30-minute incrementsif they wish to receive more quotes, orto use “placeholder quotes” for OEMdealers with which they have estab-lished relationships.

PartsTrader Reduces Minimum Quote Time to 30 mins

Page 35: November 2012 Southeast Edition

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 35

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At The Mall of New Hampshire, asculpture of a large bust will be thecenterpiece of a month-long fundraiserfor the New Hampshire Breast CancerCoalition. The one–of-a-kind Bra

Bank was custom built by PrestigeAuto Body.

The larger-than-life Bust BraBank will collect donations to helpNew Hampshire women and familieswho are battling breast cancer. Allproceeds will go to the New Hamp-shire Breast Cancer Coalition.

In addition to the oversize “BustBra Bank,” in which visitors can putdonations, there will be a red carpetarea where anyone can purchase a brafor $1.

A message to honor breast can-cer survivors or those who have losttheir battle with the disease can bewritten on the bra and then placedonto a fabricated wall that will be ondisplay throughout October.

Prestige Auto Body and ownerDavid Ludwig created the 10-foot-tallpink ribbon sculpture for the 2010 and2011 “Bras Across The River” eventheld on the Bridge Street Bridge.

The display will be up throughOct. 27.

Prestige Auto Body Custom Builds Unique BraBank to Benefit NH Women with Breast Cancer

Prestige Auto Body created this one-of-a-kind10-ft-tall pink ribbon sculpture to promote do-nations to help New Hampshire women bat-tling breast cancer. All proceeds will go to theNew Hampshire Breast Cancer Coalition

During NACE 2012 Mitchell Inter-national, who has been offeringcloud-based claims management forseveral years, announced that theyhave won a new insurance client, Af-firmative Insurance Services, Inc.

Under the terms of the multi-year agreement, Affirmative will im-plement Mitchell’s WorkCenterAssignment, Appraisal, Total Loss,Review and Reporting solutions.

“Affirmative’s decision to jointhe Mitchell family of customers isfurther validation of the strength ofour WorkCenter physical damageplatform and our reputation for per-sonalized service,” said ScottKozak, Senior Vice President, Salesand Service at Mitchell International.

Mitchell WorkCenter is an open,modular, claims settlement solutionable to power the physical damageclaims process from dispatch to ap-praisal, total loss, review and report-ing.

Affirmative Insurance Services,Inc. (AISI), a subsidiary of Affirma-tive Insurance Holdings, Inc. (AIHI),handles the marketing, policy admin-istration, claim and actuarial func-tions for certain insurance carriersthrough its two processing centers inDallas and Chicago.

Mitchell Adds New InsuranceClient, Affirmative, to Roster

At NACE 2008, CCC InformationServices introduced the CCC ONETotal Repair Platform, its then brandnew collision repair managementsystem that is entirely Web based.On Oct. 11, at NACE 2012, the com-pany announced that it has now con-verted nearly 17,000 shops to thenew platform. CCC said that, sinceits introduction, CCC ONE has beeninstalled on more than 72,000 desk-tops, laptops, tablets, and smartphones.

AudaNet, the company’s next-generation claims management plat-form will enable a range of updatedand new products.

“AudaNet represents the newfrontier in innovation and intelli-gence for automotive claims and col-lision repair, and we’re very proud tobring the platform to North Americastarting with its preview at NACE,”said Wolfgang Ahrens, Managing Di-rector, Audatex U.S. “From a high-impact mobile focus to our exclusive3-D graphics and advanced vehicleidentification, AudaNet Xpert Esti-mating and our complete family ofAudaNet solutions are raising the barfor collision repair shops and insur-ers alike,” added Ahrens.

CCC Says it Has Converted17,000 Shops to new CCC ONE

White Mountains Insurance Grouphas filed a federal lawsuit against All-state over the 2011 sale of Esurancealleging that Allstate inappropriatelylowered the final purchase price. Thesuit alleges that Allstate delayed byfive months an audit required in theterms of the sale until after Esurancespent $5.2 million to settle unrelatedlitigation, thus reducing the finalvalue of Esurance for which Allstatepaid White Mountain. Following aninvestigation by the attorney gen-eral’s office in Massachusetts, about2,500 drivers with clean records whohad their policies unfairly terminatedby Metropolitan Property and Casu-alty Insurance Company will receiverestitution averaging $124 for havingto switch insurers; 56 policyholderswill receive about $625 for havingtheir policies improperly terminatedand then being placed in the state’sinsurance plan for those unable to getcar insurance elsewhere. A November19 hearing date has been set in one ofFlorida shop owner Ray Gunder’slawsuits against State Farm; Gundersaid he petitioned for the hearing be-cause although State Farm last Octo-ber paid him the underlying amounthe sought in the suit, the insurer hasnot paid Gunder’s legal fees totaling$93,800.

White Mountains Ins. SuesAllstate over Esurance Sale

State Farm was hit with a class ac-tion lawsuit alleging the insurer rou-tinely short-changes claimants onthe diminished value of their vehi-cles by using a deceptive and unfairmethodology.

A trio of Georgia consumersclaim that State Farm’s methodologyfor calculating a vehicle’s dimin-ished value dramatically underesti-mates the actual loss of value andresults in underpayments estimatedto exceed $1,000 per claim. The so-called “17c” methodology StateFarm relies on, the suit contends, isbased on 10 percent of the vehicle’sNADA value, to which multiple dis-counts are applied.

The suit further contends that ata minimum, 15 to 25 percent of theNADA value should be the startingpoint. “This methodology is inher-ently unfair, grossly undervalues theamount of any diminished value sus-tained by a motor vehicle that hasbeen damaged in a collision, and isdeliberately utilized by (State Farm)to minimize the amount of any di-minished value payment they are re-quired by Georgia law to make,” thelawsuit states.

State Farm Hit With ClassAction Alleging Short Claims

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Page 36: November 2012 Southeast Edition

During his keynote address at the 2012International Autobody Congress &Exposition (NACE) in New Orelans,LA, last month, former CARSTARCEO Dick Cross offered his corollaryto a Mahatma Gandhi quote by tellinga crowd of 800 attendees, “A businessis but the product of the CEO’sthoughts. What she thinks, it becomes.”

It’s a concept NACE organizersthemselves may need to keep in mindas they acknowledged that while thisyear’s show offered “some big wins,”it also was down slightly in terms ofboth exhibitors and attendees.

Twenty minutes, three times a weekCross kicked off the event by sayingthat although the business successesthat he’s had that were cited in his in-troduction are true, his career has notbeen a “charmed path.”

“I have probably over two-and-a-half decades made every business mis-take that everyone in this audienceshas made, and maybe even some ofthem that you would never make,”Cross said. “Unintentionally, I havemade decisions that have hurt businessperformance. I have failed to createcircumstances that would allow every-one to make their contribution to thecause. I have terminated people that Ihave wondered in the aftermathwhether it was the right thing to do.There were times in my career when Ihesitated to lay my job as CEO on theline, to stand my ground for what Iknew was right. But as painful as allthose things are to remember and thinkabout, they are the things that drovemy obsession to understand and to be-come very good, at the job at the top.”

In addition to leading CARSTARfrom 2005–10, Cross has been broughtin by private equity firms to run a half-dozen other under-performing compa-nies, and through his consulting firm,he said he’s helped more than 150other CEOs improve their company’sperformance. He said one of thebiggest failings he sees among manybusiness owners and CEOs is not reg-ularly setting aside time to just thinkabout the business.

“For most of us in this room,thinking is the hardest work that wehave to do,” he said. “If there’s any-

thing else to occupy our time besidesthinking, we’ll generally be doing it.My observation is that about 90 per-cent of the time, most of the CEOs inthe United States are doing things thathave nothing to do with this job at thetop. But thinking helps you understandwhat the possibilities of your businesscould be, and helps you to understandgenerally how to make it happen.”

He offered several “big picture”ways that CEOs should think aboutthe business. For example, he said thatbusinesses are like products in thatthey have a lifecycle; they begin withan idea, an embryo, and then some goon to grow and mature. Whether theygo on to continued success or witherand die, Cross said, is often up to theperson at the top, who can either getcomplacent and coast—usually lead-ing to the company’s demise—or whocan restart the cycle by finding a newset of customers for the business or byfinding other ways to serve the needsof existing customers.

Cross said good CEOs also rec-ognize the difference between leader-ship and management. Leadership, hesaid, sets in front of others very entic-ing goals and helps make them wantto help achieve those things. Manage-ment is only about assembling the re-sources needed to execute on thatvision.

At CARSTAR, he cited as an ex-ample, he worked to help everyone inthe organization realize their purposewasn’t to just fix cars.

“The purpose of CARSTAR be-came: We help people though a crisisin their lives,” Cross said.

The kind of thinking that makescompanies succeed, Cross said, can beaccomplished by those at the top whoset aside 20 minutes a day, three daysa week, to tune out other day-to-daydistractions and just think about thebusiness.

“Running a business is not a full-time job,” Cross said. “You probablyspend most of your time doing otherstuff, stuff that others ought to bedoing themselves rather than havingyou do it. But you can do a great jobrunning your business 20 minutes, aday three days a week, thinking aboutthose things.”

Show leaders offer their viewTwo years after shifting away fromholding NACE in Las Vegas each fall,event organizers cited a number of

reasons attendance may have beendown this year, from the still-slowly-recovering economy to the New Or-

leans location, which has fewer shopsthan Orlando within an easy-to-drivedistance.

“Attendance at all the key (show)events was up,” Lindsay Roberts ofHanley Wood, who manages the showfor its sponsor, the Automotive Serv-ice Association, said just hours beforethe show closed. “We had some majorplayers who hadn’t exhibited at theshow for a while. We got some of thepaint companies back. We got some ofthe OEMs back. But we are a little dis-appointed. Total attendance is going tobe down. It’s pretty hard to compareto the Orlando last year where we upover 20 percent from the 2010 event.We had really hoped we would seethat growth through to this year. We’llrelease final numbers probably withinthe next five to seven days. But we dothink we’re going to be slightly downover last year.”

But Roberts chiefly cited a con-tinued decline in the number of com-

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with Erica SchroederShop Showcase

The Right Causewith Mike Causey

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].

Dick Cross, former CEO of CARSTAR, presentedconcepts from his book, “Just Run It!” Copieson display sold out quickly

Page 37: November 2012 Southeast Edition

panies exhibiting at the show, whichis down about 17 percent from as re-cently as 2010.

“What we need is more product,more exhibitors on the show floor,”Roberts said. “We need to give atten-dees three days worth of product andpeople to network with. We need theexecutives from these major compa-nies who were here walking the aislesto have booth space on the show floorand to support the show.”

She did say that more than 40companies have already signed on fornext year’s event, up one-third from thenumber who had signed contracts forthis year’s show during the 2011 event.

But NACE organizers have alsogiven themselves the added challengeof holding the 2013 event in Las Vegasnext October 16–19—in the same cityjust two weeks before SEMA, whichhas been working to attract collisionrepair industry exhibitors and atten-dees.

That may have been one of thereasons NACE organizers took the un-precedented step of also announcingthat two years from now NACE willagain be on the east coast, returning tothe city that hosted the very firstNACE back in 1983: Nashville, TN.

Collision repair professionals fromacross North America came togetherrecently at NACE in New Orleans,LA, to network, see the latest andgreatest in equipment and products,and to contemplate a smaller but stillhigh-quality event. Some 225 compa-nies occupied 50,000 sq. ft. of exhibitspace but attendees were fewer innumber from last year’s Orlandovenue.

“It was a great pleasure to haveDick Cross open the 30th Anniver-sary general session,” said Ron Pyle,ASA president. “He delivered a prac-tical and easy-to-implement plan forsuccess. I am sure everyone in atten-dance agrees that he was extremelymotivational and an excellent choiceto kick off this very special ASRW.”

Leadership and Management TacticsNACE began October 10 with a seriesof seminars and lectures regardingsales tactics and innovation of paintand materials, including The Art of theDeal—Acquiring and DevelopingNew Locations; Marketing to Genera-tions X and Y; and Paint and Materi-als: The Paradigm Shift.

The afternoon sessions saw afocus on leadership, delegation andcustomer management tactics, aimedat retaining and appeasing your staffand customers. Seminars includedLeadership Best Practices—How toInspire, Delegate and Coach YourTeam to Success, by Mike Anderson;

Calming and Retaining Angry Cus-tomers, by Margie Seyfer and Guiltby Association—Defining Your Image,by Tony Nethery. Kurt Lammon ofUrethane Supply Company instructedviewers on how to properly weld plas-tic with nitrogen, while Dan Espersenof ALLDATA taught the best practicalapplications of OEM Information.

I-CAR spokesmen Bob Zelanoand Jeff Poole ran afternoon seminarson Corrosion Protection and Haz-ardous Materials, Personal Safety andRefinish Safety, respectively.

The first day of NACE wascapped off with the Assembly, a con-fidential, closed-door forum for colli-sion repairers.

Profit BuildingNACE continued with tutorials,demonstrations and information per-taining to every aspect of the collisionrepair industry. The exposition portionof the event also opened at 10:00 am,offering the latest products, servicesand technologies from industry leaders.

The Profit Building Pavilionportion of the exposition showcased

vendors with customer-driven prod-ucts, such as Autoshop Solutions, De-mandforce, Mudlick Mail Co. and NetDriven Media.

The morning of Oct. 10 saw sev-eral seminars headed by I-CAR. BobZelano ran a seminar on automotivefoams and Tony Nethery instructed

participants on proper meas-uring methods.

Educational highlights in-cluded I-CAR representativeShawn Collins’s workshop onBlueprinting Process andDamage Discovery, (BLU01);I-CAR’s Bob Zelano present-ing the Steel Unitized Struc-tures Technologies and Repairclass and Bryan Dodge ofDodge Development’s presen-tation on balancing your work

and life.

Blueprinting Process and Damage Dis-coveryThis new course provided an interac-tive training experience and was filledto capacity during both sessions. I-CAR offered special premiere pricingfor this course launch with a cost sav-ings of $56 for standard pricing.

The new Live Demo coursedemonstrates I-CAR’s commitmentto increased student interaction inthe classroom and uses an actual ve-hicle to demonstrate technique whileengaging students in the learningprocess.

Rich Southerland of Alldata at-tended the Thursday premiere of Blue-printing Process and DamageDiscovery and stated, “This is the bestI-CAR class I’ve attended. I couldn’timagine how this would not benefitany tech or shop employee.”

The course led students beyondthe disassembly of damaged parts tohelp them uncover hidden damagethat can impact the repair process andprovided a number of demonstrations,including quick checks and imple-mentation tips. Students who attendedthe course gained an understanding ofthe definition of the blueprintingprocess and how the process can helpimprove repair quality through a stan-dardized approach to collision repairplanning.

The day wound down with theASRW Welcome Party, sponsoredby CCC, was held at the iconic MardiGras World venue, basically a ware-house of larger than life characters

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Page 38: November 2012 Southeast Edition

used on floats and in Mardi Grasthemed events. Attendees were touredthrough the warehouse where MardiGras floats are manufactured, andended up at the Grand Oaks Mansionnext door where some excellent localdishes were offered.

NACE events on Oct. 11 endedwith the ASRW Industry Awards cer-emony completing the second day ofNACE. The ceremony was held at theNational World War Two museum.

The NACE conference continuedon Oct. 11 with several I-CAR semi-nars, human resource tutorials andteam development clinics. The ASRWCollision Forum also took place in themorning.

MSO SymposiumThe ten-and-a-half-hour MSO(Multi-store operators) Symposiumhosted by Matthew Ohrnstein ofSymphony Advisors took place Fri-day. The symposium spanned the du-ration of the NACE Friday scheduleand was comprised of five panelsthat aimed to help multi-store busi-ness owners, many of whom takeover failing operations in order to re-juvenate them, improve aspects oftheir businesses including culture,

branding, customer relations, leader-ship and finance.

The MSO Symposium also in-cluded networking opportunities for

owners, and ended with a networkingreception in the evening.

Shawn Collins held his secondseminar on Blueprinting Process andDamage Discovery, while Bob Ze-lano taught the second StructuralStraightening Steel seminar, bothhosted by I-CAR. The seminars wereadd-on educational seminars avail-able on both Thursday and Friday.OEMs including General Motors,Toyota and Nissan all sponsoredbooths during the show, offering pro-motional giveaways and showcasingnew products.

Expo FloorSome highlights from the on-floordemo area included exhibits from In-nova Electronics Corp. on how theirCarScan tools benefit shops and CASof New England revealing The TruthAbout Programming in Today’s Vehi-cles.

Kaeser Compressors created an in-formative technical (not sales-oriented)presentation titled “Compressed Air Re-quirements for Waterborne Paints.” Itwas held October 10 to help repairersmake practical choices for their shops.Topics included: sources of moistureand contaminants, air system compo-nents that affect paints and finishes, theimpact of air amplifiers and more.

Some workshops on Friday after-noon focused on the financial aspect ofcollision repair. Mike Anderson ofCollisonAdvice.com spoke on measur-ing performance in Financial BestPractices. Dan Stander of FIX AutoHighland Ranch moderated The Keysto Successful Estimating! panel, inwhich data providers addressed audi-ence questions.

Denise Caspersen of ASA andMelissa Miller of CARSTAR encour-aged women to be courageous leadersin their seminar, one of several in the

Women’s Professional Developmenttrack of NACE. (See story this issue.)

Twenty 2.0 peer benchmarkingA new-to-NACE-this-year, Twenty 2.0peer benchmarking event was attendedby about 20 repairers and ran on Fridayafternoon hosted by keynote speakerDick Cross.

Twenty 2.0 is/was a peer bench-marking/virtual 20 group concept, ap-plicable to both mechanicalservice/repair and collision repair shopowners focused on doing “the job atthe top.” The 90-minute session beganwith a half hour introductory session,followed by an hour-long breakout ses-sion. All participants had the opportu-nity to enroll in the formal (ongoing)Twenty 2.0 virtual 20 group at the con-clusion of the session.

“Shop owners interested in ob-taining the value of participating in a20 group process with a non-traditionaltime or financial investment won’twant to miss this unique session,” saidASA president Ron Pyle in advance ofthe event. “We’ve taken the 20 groupconcept and upgraded it to the digitalage. Participants who formally enrollwill receive all the benefits of belong-ing to a 20 group, with a virtual twist.”

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P.B.E Jobbers Warehouse Gives to Education FoundationP.B.E. Jobbers Warehouse, a paintbody and equipment wholesaler com-mitted to customer service excellencethrough experience, teamwork anddedication, has donated $65,000 inproducts to three schools through theCollision Repair Education Founda-tion. The dona-tion of theseproducts greatlyassist the colli-sion instructorswho continue tohave their colli-sion budgets re-duced, andallows collisionstudents to practice vehicle repairs withcurrent materials. The three schoolsprovided with the product donations,who were also 2011 Ultimate CollisionEducation Makeover grant applicantschools, include: Freedom HighSchool (Freedom, Wis.), KishwaukeeCollege (Malta, Ill.), and ThorntonFractional Center for Science andTechnology (Calumet City, Ill.).

“We’re very happy to be able tocontribute to the future of our industrywith this donation,” noted P.B.E. Job-bers Warehouse President Paul Mon-roe. “Hearing back from the schoolsabout how much it was appreciatedand how much it will help their pro-

grams made our donation even moreworthwhile. We will continue to sup-port the Collision Repair EducationFoundation and help to educate morestudents to become a part of our in-dustry.”

“We would like to thank P.B.E.Jobbers Ware-house for theirgreat donation ofpaint products,”said Greg Brink,Kishwaukee Col-lege collision in-structor. “Thereare many timesthat I would like

to have my students spend more timepracticing a task before we have themdo it on a live vehicle. However, thebudget doesn’t always allow the stu-dent to do that. With this donation, Iwill be able to have my students spraytheir practice front ends many times,so they can better develop their paint-ing skills.”

“This first-time donation fromP.B.E. Jobbers Warehouse to the Edu-cation Foundation will make an in-credible difference with the recipientschools and their collision programs,”said Brandon Eckenrode, director ofdevelopment for the Collision RepairEducation Foundation.

Page 39: November 2012 Southeast Edition

from happening, a sealed or primedsurface will outperform an e-coatedsurface after impact by a large margin.

The last point I like to make isthe surface prep. E-coat is a hard sur-face and sanding it can be a workout.90% of shops will use a DA sander toprep the e-coated surface. If you don’tseal or prime the part, how do youknow if you left enough e-coat behindfor proper corrosion protection? Moste-coat layers are only 0.5 to 1 mil tostart with. My observations suggestthat 70% of all sanded e-coat surfacesdisplay some level of transparency orbare metal surfaces. Unfortunately, Ihave seen people paint right over thattoo.

When asked why, the most fre-quent explanation I receive fromshops that paint directly over e-coat iscycle time. Shops don’t feel that theycan afford to give up the time to sealparts in the booth. While I appreciatethe value of cycle time and boothhours, it is no excuse for painting di-rectly over e-coat. Nobody says youhave to do it as a part of your final

paint work, in a matter of fact, Istrongly advice against it. I proposesealing parts ahead of time, ideally aspart of the cut-in process. Put onegood coat of sealer on the outside ofthe part, let it flash off to a point thatyou can safely turn them over and cut-in the rest. All the shop has to do afterhanging the part is giving the sealer alight scuff by hand for adhesion, cleanand paint. This process allows theshop to maintain booth KPIs and putout a quality repair at the same time.As an added bonus, you will also im-prove coverage and color match aswell.

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Kelley Blue Book: September Vehicle SAAR is 14.3MSeptember new-car sales will hit a14.3 million seasonally adjusted an-nual rate (SAAR) in September,slightly down from the 14.5 millionSAAR achieved in August, accordingto Kelley Blue Book, the leadingprovider of new car and used car in-formation. This equates to an 8%year-over-year improvement, which iswell below last month’s 20% year-over-year increase. Although Septem-ber sales do not appear as strong asAugust, to grasp the full picture, thesales environment at this time lastyear must be considered.

This time last year Toyota andHonda were able to boost productionand sales after several months of down-time following the earthquake andtsunami in Japan,” said Alec Gutier-rez, senior market analyst of automo-tive insights for Kelley Blue Book.“Now that year-over-year figures aremore comparable, annual gains willlevel out and remain between 7 to 10 %through year-end.”

Healthy consumer demand willcontinue to drive industry sales growthand is expected to account for nearly85% of total sales volume in Septem-ber. Rising sales throughout the yearare due largely to pent-up demandfrom those that have delayed purchasesbecause of economic uncertainty.

“The average vehicle on the roadtoday is approximately 11 years old.Those consumers that have delayedtheir purchase of a new vehicle duringthe past several years due to economicreasons are finally making the decisionto trade-up to something new,” saidGutierrez. “As a vehicle ages beyond10 years old, or has more than 100,000miles on the odometer, rising mainte-nance costs and deteriorating reliabilitycan become a serious headache. Driv-ers of older vehicles are keenly awareof this fact and many are opting to takeadvantage of the near zero percent fi-nance offers on today’s more reliableand fuel-efficient vehicles to achievepeace of mind.”

Kelley Blue Book expectspickup trucks to be strong this monthas domestic manufacturers introducesales events. The 2012 Chevrolet Sil-verado is available for zero percentfor 60 months or with as much as$3,500 in consumer cash. The 2012Ford F-150 can be purchased with upto $5,500 in cash back, while the Ram1500 is available with up to $4,000 inrebates.

Kelley Blue Book believes thesedeals, coupled with high inventorylevels, will help increase truck shareby as much as a full percentage pointduring the month.

Continued from Page 18

Parts Procedure New York Auto Body Owner Faces FelonyCharges over State Police Vehicle RepairsAn auto body and repair serviceowner in Bedford, NY, faces severalcriminal chargesconnected to thealleged fraudu-lent repair ofstate police vehi-cles. Police sayBrian Prato, 55,of Bedford, waspart of an insur-ance fraud inwhich state policecars were repairedwith used parts butcharged for newones.

Prato was arrested on Oct. 4. Theowner of B&B Auto Body wascharged with five felonies and twomisdemeanors. He faces grand lar-ceny and insurance fraud chargesbrought by state and county investi-gators who allege they uncovered ascheme to defraud the state and the in-surance company that covered statepolice vehicles. Police said an inves-tigation showed Prato charged fornew parts but installed used parts, in-cluding some from old cruisers nolonger used.

According to state police,

“The investigation found that in-surance companies were payingfor new parts to be used in the re-pairs of the vehicles as written inestimates submitted by the autobody shops. Inspection of the ve-hicles showed that new parts werenot installed as written in paper-work submitted to insurance com-panies; instead used parts wereused for some of the repairs onthree New York State Police vehi-cles. In some instances, parts weretaken off retired New York StatePolice vehicles and were used forrepairs.”

In addition to the fraud, policesaid the installation of old parts on thevehicles could have put the lives oftroopers in jeopardy. Prosecutorscharged Prato with third- and fourth-degree insurance fraud, fourth-degreegrand larceny, attempted third-degreegrand larceny, first-degree scheme todefraud, all felonies; and fifth-degreeinsurance fraud and attempted pettylarceny, misdemeanors.

Prato was arraigned before Bed-ford Town Justice Erik P. Jacobsen,who set bail at $10,000. Prato postedbail and was ordered to return to courtOct. 25.

Brian Prato ofBedford chargedwith grand larcenyand insurance fraudby NY State Police

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by Melanie Anderson

John Shoemaker of Virginia is an AirForce veteran with 23 years service inthe automotive field as a technician,trainer and formal instructor, and withseveral additional years as a collisioncenter director for a major dealershipgroup, overseeing three collision cen-ters in Virginia. Shoemaker is now aconsultant with JSE, a company he cre-ated to share 35 years’ worth of auto-motive management experience toassist collision centers in improvingoperations.

During the 30th anniversary ofNACE in New Orleans, LA, Shoe-maker presented Negotiating for Suc-cess — a Look at the NegotiationsNecessary to Keep Your Collision Cen-ter on Top.

Negotiations, Shoemaker says, notonly affect profits, but is important inpreparing a contract or business deal. Tonegotiate successfully, several elementsmust be in place during the preliminarystage of a business deal. Those elementsinclude establishing a set of core values,being honest and ethical, maintaining astandard that meets industry and cus-tomer expectations, delivering asagreed and responding to the cus-tomer’s needs. What is non-negotiableis making a profit.

Are you a negotiator? You can beif you are confident, focused, able tostay on track and be unemotional. Asuccessful negotiator will know the ob-jective before he or she begins, be ableto define the main issues and can focuson them one at a time. Negotiationswill go much smoother if a win-win isdetermined. Always have supportingdocumentation as back-up, which caninclude manufacturers specifications, acomplete damage appraisal and struc-ture measurements. The person withthe most information usually wins, saysShoemaker.

One of the first steps to take whenentering negotiations is identifying theappropriate person with whom to ne-gotiate with. Develop a rapport withthat person and determine their focus.Finding a common ground will helpyou to capitalize on similarities andkeep the conversation from gettingconfrontational. Verbal tone and bodylanguage is important. Keep your emo-tions in check.

It is important that you establishyour repair standards up front. Have acomplete damage appraisal prepared

and itemize each repair step required.Document only the repairs required andisolate prior damage. List customerconcerns.

Negotiating with InsurersWhen dealing with insurers, review theentire appraisal and make a note of the‘no’s’ but keep moving. Go back to the‘no’s’ after reviewing the complete ap-praisal. Negotiate the repair first, then

the labor, but do not negotiate your re-pair standard. Realize that you will notsee eye-to-eye with an insurer. Theirjob is to negotiate the cost down be-cause they have specific numbers tomeet and they are protective of theirbonuses.

Negotiating with Insurer DRPsOne of the best things you can do whennegotiating with a DRP insurer is to de-velop a friendship and a rapport withthe insurance adjuster and get to knowthe insurer’s agents. You want to createa good reference by ensuring the ad-juster’s experience is always good.Promote your efficiencies and yourcustomer service. But also make surethe adjuster knows what you want ontheir program. Agents are required tomaintain training and this can be an op-portunity for your shop to sponsorevents. Having a manufacturer certifi-cation makes your facility more attrac-tive to an insurer and helps establishcredibility. Have space available forthem to work. Use existing work to es-tablish opportunity with the insurer.Look at the number of non-DRP re-pairs performed for the insurer and pro-vide insurer performance reports forthose repairs. This cements your abili-ties and proves a need.

Negotiating with VendorsWhen negotiating with vendors, deter-mine a retail rate for services, such astowing, alignments, and glass work.With parts suppliers, explain yourneeds and cycle time mandates. Findout what they need to get the correct

part and incorporate electronic parts or-dering. Give vendor complete order in-formation to reduces parts errors.

Negotiate inventory levels bydefining guidelines for out-of-stockparts and require them to search otherdealers. Establish a process for parts re-turns and coordinate order cut-offtimes. Set a different time for each ven-dor. In addition, define the deliveryprocess and specify that only complete

orders are delivered. Identify in-spection requirements and negoti-ate parts price differences. Partsprice differences are the #1 causeof supplements, Shoemaker says,while insurance companies strivefor zero supplements. Set a rea-sonable dollar amount for a pricematching estimating system andestablish guidelines for higheramounts. Set a performance meas-

urement tool in place to manage sys-tem reporting; to track parts returns anddelivery delays, to identify damaged orwrong parts and the frequency.

Negotiating with Paint SuppliersExplain your needs to the paint sup-plier. Define the paint level required

and the flexibility you need in yourpaint line. Understand their distributioncapabilities and specify your deliveryexpectations.

Negotiating with the Vehicle OwnerDetermine your customer’s need, iden-tify their concerns and communicate tothe customer so they know you under-stand them. Work to resolve the situa-tion, not to sell. Provide a solution, butmake sure you understand the com-plete situation before answering tooquickly. Be flexible. Educate the cus-tomer on repairs required and write acomplete damage appraisal. Is a com-plete repair needed and will aftermar-ket parts fit their need? It is easier toremove items than to add items later.Discuss a specific time for the repairand determine their transportationneeds. In regards to payment, who ispaying for the repair? Is it beingprocessed through a third party? Is thecustomer aware of the deductible? As-sist with claims processing and re-member that vehicle owners don’t dealwith this everyday. Help them to un-derstand the process and be their advo-cate if necessary.

John Shoemaker Coaches Shops to ‘Negotiate for Success’

Dykstra Automotive Institute Survey Identifies BroadIndustry Concerns in 2013: Esp. Financing and SuppliersAccording to the 2012 Dykema Auto-motive Institute Survey, which was re-leased on October 17th, automakerswill have to contend with limited fi-nancial bank lending and raw materialcosts in the following year.

“Every major company has gonethrough tremendous upheaval and dealtwith changes to every step of its supplychain,” said Aleks Miziolek, directorof Dykema’s Automotive IndustryGroup. “There are many challenges stillon the horizon for automotive execu-tives that may impact the long termsuccess of the industry’s future.”

From the total of 100 auto indus-try advisers and senior executives thattook part in the survey, 40% of themsaid that raw materials increasing costsis the main concern of the auto indus-try, while 21% of them said that it isthe financial bank lending that will af-fect the automakers in 2013. Besidesthese two challenges, the survey alsoincludes labor issues, financially trou-bled suppliers and even the potentialliabilities of self-driving vehicles andother new technologies.

A respectable 43.4% said thatthey were working on vehicle-to-vehi-cle technology, but even more—55.3%—said that their companies

were working on vehicle-to-infrastruc-ture or systems, which would allowcars to “talk” to traffic lights and otherelements on the grid.

Over 92% said that they’d seen anincrease in demand for their company’sproducts/services over the past year.Most, 76.8%, have had to make internalchanges to meet that growing demand.

Given that vehicles are becomingincreasingly connected to the web,Dykema asked respondents about theirbiggest concerns on that front. Justover 35% said that they were worriedabout the distractions that accompanyconnected cars. However, more than28% said they had no real concerns.

When asked about investments intechnology, 60.5% said that the weredeveloping “sensor-based safety sys-tems that either warn or assist driversin potential collision situations.”

On the legislative front, the biggestissue of concern was “energy and envi-ronmental legislation.” Part of the sur-vey also discussed potential liabilities ofself-driving vehicles and other emerg-ing automotive technologies; about 1 in3 respondents said driver distractionwas their chief concern. Approximately1 in 4 had concerns about data owner-ship of technologies.

Page 41: November 2012 Southeast Edition

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NHTSA Declares Danger in Counterfeit AirbagsThe National Highway Traffic SafetyAdministration (NHTSA) issued awarning on Oct. 10 about airbags thatwere replaced in the past three years,stating they may have counterfeit sys-tems that won’t function properly.

NHTSA said the airbags lookidentical to certified, original equip-ment parts, but testing has shown mal-functioning ranging from non-deployment of the airbag to the ex-pulsion of metal shrapnel during de-ployment. NHTSA has identifiedvehicle makes and models it believesmay contain these airbags, and be-lieves they affect less than 0.1% of theU.S. vehicle fleet. NHTSA noted thatvehicles that have had an airbag re-placed within the past three years by arepair shop that is not part of a newcar dealership may be at risk.

NHTSA suggests that consumerswhose vehicles have been in a crashand had the airbags replaced withinthe past three years by a repair shopthat is not part of a new car dealership,or who have purchased a replacementairbag online, should contact a callcenter connected to their auto manu-facturer to have their vehicle in-spected and the airbag replaced ifnecessary.

“Although NHTSA does a goodjob highlighting the need for con-

sumers to be vigilant about counter-feit airbags and to contact their auto-mobile manufacturer with questions,they are not as clear as to inspectionand repair options for consumers. In-dependent shops are more prevalent inthe collision marketplace and shouldbe included in any NHTSA consumerrecommendations for inspection andrepair. In addition, it is not at all easyto discern whether automotive manu-facturers or insurers will pay for theseinspections and repairs. These are im-portant consumer questions that willhave to be answered,” said Bob Red-ding, ASA’s Washington, D.C., repre-sentative.

NHTSA has been working withnumerous government agencies tobetter understand the issue of coun-terfeit airbags and how to preventthem from being purchased and in-stalled in vehicles.

NHTSA is currently gatheringinformation from automakers abouttheir systems for verifying the au-thenticity of replacement parts and isworking with the industry to make thedriving public aware of the potentialsafety risk posed by counterfeitairbags. It has also posted to its web-site (www.nhtsa.gov) a list of vehiclesfor which counterfeit airbags may beavailable.

ASA’s Caspersen Comments on PartsTrader MeetingsReductions in parts profits was thebiggest concern voiced by more than125 collision repairers who attendedtwo Automotive Service Association-sponsored meetings recently in Ohiocentered around State Farm’s elec-tronic parts ordering pilot.

The meetings were open to every-one in the collision repair industry atno charge. The first meeting was heldin the Cleveland area Sept. 18; the sec-ond in the Cincinnati area Sept. 19.

Denise Caspersen, manager ofASA’s collision division, presented theelements of the pilot to date, reviewedindustry concerns, and collected anyadditional questions, concerns andsuggestions from attendees.

Repairers are concerned over thepilot’s inclusion of a discounted man-ufacturer’s suggested retail sellingprice (MSRP) column. Suppliers havethe option to provide a discountedMSRP along with the margins of thepart and the quote price. If a supplierelects to provide a discounted MSRPalong with a quote for a part, it couldresult in lower profit margins on partsfor the collision repair shop if that partis selected. State Farm stated in Julythat it does not ask for discounts onparts but if a supplier provides a dis-counted MSRP, this data is availableto State Farm.

Repairers are responsible forrecommending suppliers and deter-mining their default OEM and pre-ferred OEM suppliers. Once a SelectService shop requests a quote on anestimate, the quoting request is sentto all suppliers whose application“preferences” match the content ofthe estimate. Suppliers, just like re-pairers, are able to set preferences.Suppliers are also responsible for set-ting their market area, parts type, andrates of delivery. Meeting attendeesquestioned why State Farm is doingthis, what happens to repairers’ partsprofits if this goes into effect, whereis the efficiency, what State Farm seesas the future for collision claims andthe size of their Select Service net-work—and the reigning questionoverall—where is the benefit to thecollision repairers participating in thepilot?

“We continue to present to StateFarm the concerns of ASA members.If State Farm cannot provide datashowing how this application benefitscollision repairers (operationally/fi-nancially), ASA will respond appro-priately on behalf of repairers,” saidCaspersen. “ASA has provided StateFarm with a timeline for data and willbe meeting with State Farm to assessfuture actions.”

Enterprise Supports Bill to Get Unsafe Rental Cars Off the RoadConsumer advocate Cally Houckjoined Senators Barbara Boxer andCharles Schumer with safety advo-cates, to announce an exciting devel-opment in her battle to get dangerousrental cars off the road. Earlier thisyear, Cally Houck started a popularpetition on Change.org calling on En-terprise Rent-A-Car to drop oppositionto proposed legislation that would pro-hibit rental car companies from rent-ing cars that have been recalled due tosafety risks. She has worked tirelesslywith safety advocates and members ofCongress to secure industry supportfor the legislation.

Enterprise now supports the leg-islation, named after Cally’s daugh-ters Raechel and Jacqueline Houck,who died in 2004 while driving a re-called rental Enterprise car. The leg-islation would ensure the safety ofAmerica’s rental car fleet by prevent-ing rental car companies from rentingor selling recalled cars or trucks. Thelegislation is supported by SenatorsChuck Schumer, Barbara Boxer,Claire McCaskill and Representa-tives Roy Blunt and Lois Capps.

“It’s so inspiring to see Enter-prise Rent-a-Car, Avis and DollarThrifty join Hertz and members ofCongress in supporting legislationthat will prevent future tragedies on

the roads and highways,” said CallyHouck. “It took thousands of signa-tures on my Change.org petition andmonths of work by consumer advo-cates to get this far. I’m proud, andlooking forward to Enterprise and therest of the rental car industry joiningus to advocate for the passage of thisbill.”

“I know my campaign has edu-cated and alerted people on the issueof rental car safety and that alonegives me hope that real change is onthe way,” added Cally.

Cally was supported throughouther fight by car safety advocacy groupConsumers for Auto Reliability andSafety (CARS).

Raechel, 24, and Jacqueline, 20,died in 2004 when the power-steeringfluid leaked in their recalled PTCruiser and caught fire, causing themto lose control of the car, whichcrashed into a semi tractor-trailer. Amonth before the fatal crash, Enter-prise received the safety recall noticefrom Chrysler but did not fix the car,instead continuing to rent the defec-tive PT Cruiser to three other cus-tomers before renting it to Ms.Houck’s daughters. Eventually, aftera five-year legal battle, Enterprise ac-cepted full responsibility for the acci-dent.

Page 42: November 2012 Southeast Edition

42 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

by Melanie Anderson

Steve Trapp, Program Manager atDuPont Performance Services andDuPont Performance Alliance, pre-sented Strategies for ImplementingBest Practices for SOPs in CollisionRepair at NACE on Oct. 13. Trapp,who runs a value-added program forDuPont, helped build standard operat-ing procedures for his company.

Trapp opened the session with thequestion, Where should you focusSOPs? And quickly answered it, “On

the area where youare having prob-lems in the busi-ness. It could besales or reducingcosts or in anotherarea.” He cau-tioned againstwriting standard

operating procedures for the entirebusiness if other areas are workingjust fine.

In a nutshell, standard operatingprocedures (SOPs) is a way of saying“this is how we want to do this, everytime.”

Trapp says the best way to writeSOPs is to use a flipchart and let thewhole team get involved, so you havetheir buy in when it comes time to fol-low the SOPs.

The benefits of SOPs means min-imizing waste: such as work not beingdone right the first time, being over

productive, waiting on people or hav-ing vehicles sit idle, not consultingothers, not having enough or properinventory.

Because changes occur daily,your SOPs also may change.

“Can you think of an example ofa recent change our largest customershave asked us to embrace with limitedpreparation?” Trapp asked. “Thebiggest change affecting the industryis the insurer scorecard.”

The challenge of SOPs, Trappcontinued, is that they will changeevery couple of months. “We are lit-erally learning things at a pace we’ve

never had to learn at before. Thingsare changing all the time. If we don’tchange, we will perish.”

The benefits of standard operatingprocedures include consistency ofquality, improved and leveled dailythroughput, improved productivityand efficiency, and cost and expense

control. It also means being able toproperly train new hires and cross-train the entire staff with less re-workneeded and better morale. New em-ployees come in expecting to betrained in the shop’s process. If theyaren’t trained, they will revert to doingthings the way they did at their lastplace of employment.

“We like order, we prefer it,”Trapp said. “People like a standard.The key is that staff need to be a partof the process. if they are a victim ofit, they feel trapped.”

Trapp suggests that SOPs be usedas labels, stickers on the floor or in

posters because many people are vi-sual learners.

Brainstorming meetings shouldbe one to two hours with a flip chartor white board available. And al-ways, keep the meeting positive.“Attack the process, not the person!”Trapp said. Ask staff to honestly as-sess the process for waste and definequality standards in the eyes of acustomer.

Trapp suggests the following for-mula for improving the brainstormingsession. Called ‘3-5-1’ the processasks for participants to write downthree ideas in five minutes, and thenas a group, focusing on the one ideathat comes out on top.

Steve Trapp Presents Implementing Best Practices for SOPs

Steve Trapp

“Failure is not fatal, but failure to changemight be ...” –John Wooden

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BASF Showcases Newest Additionsto VisionPlus Online Tools at NACEDuring the 2012 International Auto-body Congress and Exposition at theMorial Convention Center in New Or-leans, LA, Oct. 10-13, BASF Auto-motive Refinish Solutions showcasedtheir latest software tools to improvecollision center productivity.

The Business Analyzer Tool, partof the VisionPLUS online suite ofelectronic tools and systems, gives

body shops the ability to measurethemselves against industry standardsby tracking their costs, sales, and per-formance. Used as a sales marketingtool, the Business Analyzer Toolbreaks down the numbers of a shop’scosts, sales and profit based on sev-eral key indicators, such as paint andmaterial costs, said Vitor Margaro-

nis, Marketing Director of BASFCoatings Solutions.

“We use the tool to help cus-tomers grow their businesses in theareas of improvement they want tofocus on,” said Margaronis. “From abusiness standpoint, we go above andbeyond a paint company. It’s not justabout paint. It's about profits, growth,cost control, and overall better man-

agement of their business.”The Business Analyzer Tool

is available as a mobile app.According to BASF, Vision-

PLUS Online allows collisionrepair centers to track, analyzeand improve their business inreal time so repair facilities candiscover and act on improve-ment immediately, withouthaving to wait for the usualend-of-month reports.

BASF produces coatingsfor the automotive, commercialfleet and collision repair markets.Some of the refinish solutions fromBASF are Limco, R-M and Glasuritpaint products. The offering is sup-ported by advanced color informa-tion systems, technical trainingprograms and business managementseminars.

Page 43: November 2012 Southeast Edition

by Melanie Anderson

Two strong women presented “Coura-geous Leadership” at NACE in NewOrleans on Oct. 12. Sponsored byWIN, Women’s Industry Network,Denise Caspersen, ASA Collision Di-vision Manager, and Melissa Miller,CARSTAR Sr. Operational Manager,talked with a group of women aboutwhat it takes to be brave in the work-place and in their lives.

Having courage is not the same asbeing fearless. Courage is the abilityto do the right thing, despite feelingsof fear or discomfort when facing sit-uations of pain, risk, opportunity, un-certainty, hardship or intimidation.

Caspersen and Miller describedthree different types of courage anddiscussed the impact fear has on per-sonal and organizational performance,and how by tapping into your own‘courage history’ you can use yourpast to strengthen your future.

“We’re not all born with courage,but we’re born with the capacity to becourageous,” Caspersen said.

However, acting with courage isoften avoided because of fear, because

it’s easier, people are afraid of embar-rassing themselves or they don’t wanta confrontation. But the benefits couldresult in growth, better communica-tion, advancement, innovation andhappier employees.

The cost of fear is high. Accord-ing to Human Resource ExecutiveMagazine (2008), a third of U.S. em-ployees waste at least 20 hours ofwork time each month complainingabout their bosses. Stress-related ill-nesses account for 1/3 of worker ab-senteeism, and 37% of Americanworkers report being bullied on thejob. Fearful workers are twice aslikely to be depressed and 33% aremore likely to report exhaustion andsleep disorders.

Ways that employees display fearin the workplace could include hostil-ity, hiding mistakes, being distracted,and playing it safe versus taking a cre-ative approach.

Ways to combat fear includelooking for ways to build your confi-dence, not obsessing about things thatfrighten you, gathering facts, seekingmentoring and developing new skills.

“If we can address fear, little by

little, every day, it becomes a habit,”said Caspersen.

Caspersen and Miller asked thegroup of women what they thoughtcourage was and the answers werevaried: willing to take a risk, standingup for yourself, standing up for yourbeliefs, finishing what you started, notgiving up, speaking your truth, andbeing true to yourself.

Caspersen pointed out that weoften make mistakes to learn by.Something her parents told her stillrings loud today: “You always have achoice, but you have to live with theoutcome.”

When considering taking a risk,consider these factors: passion, pur-pose, principle, prerogative, andprofit. These are the right reasons totake a risk. Can you suffer through theanguishing moments that accompany ‘right risks’ while caring intensely?Can you harness that passion and stayfocused and headed in the right direc-tion? Do you have the right set of val-ues? Do you have the power tochoose? And, profit, is only to be con-sidered lastly.

Three different types of courage

were described as: ‘try,’ ‘trust’ and‘tell.’ Those who ‘try’ step up andmake the first attempts to take action.Those who ‘trust’ follow the lead ofothers and let go of control. Thosewho ‘tell’ are those who speak out, as-sert one’s voice, and tell the truth. Andthere are always risks. Your actionsmay harm others. Other people’s ac-tions may harm you. Or, you could becast out of the group for truth telling.

“The ‘tell’ type of courage can bethe most difficult as you may saythings the other person doesn’t wantto hear,” said Miller. “There is alwaysa difference between being respectfuland being offensive. Always make itabout the process, not the person.”

Caspersen and Miller also de-scribed two leadership styles. The firstis called ‘spillers’ — those who relyon fear as a motivator, are negativeduring times of challenge, or who dis-courage others who try to grow.

The other leadership style is‘fillers’ — those who build other peo-ple’s confidence, provide support dur-ing challenges, and encourage othersto grow.

Which kind of leader are you?

How to be a ‘Courageous Leader’ Presented at NACE

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 43

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Esurance recently honored threeCARSTAR facilities with Auto BodyRepair Expert of the Year awards dur-ing CARSTAR’s annual conference inSan Antonio. CARSTAR said Es-urance presents the CARSTAR AutoBody Repair Expert of the Year awardto the top performing stores in threeU.S. regions. The award is based onseveral key performance indicators,such as estimate cycle time, compli-ance with Esurance’s direct repair pro-gram, re-inspection variance, I-CARGold status and customer service. Theaward was created to recognize the topshops and technicians in the industryfor customer service excellence andcontinuation of technological educa-tion, CARSTAR said. The award-win-ning facilities include the following:● Ace Sullins CARSTAR in Miramar,FL, owned by Kyle Wharff.● Hunter’s CARSTAR in Norwood,PA, owned by Gary Hunter.● Jungerman CARSTAR in St. Peters,MO, owned by Kerry and BobbieWoodson.

“I congratulate them for earningthe titles, and I thank Esurance for itscontinued campaign to educate tech-nicians in this industry,” said DavidByers, CEO of CARSTAR.

Esurance recognizes ThreeCARSTAR shops with awards

Martin Senour Kicks Off 4QTraining Program The Martin Senour Company kickedoff its fourth quarter training sessionin October, offering courses to colli-sion center professionals on techni-cal skills, estimating solutions, newtechnologies, and updated applica-tion techniques required for collisioncenter profitability. The Fall 2012course lineup, which is held at vari-ous Martin Senour training locationsnationwide, includes an emphasis onsustainable operations from both abusiness and technical standpoint.

“We seek to help collision repairowners, managers and technicians bet-ter practice profitable and more pro-ductive thinking and hands-on doing,”says Jeff Green, Martin Senour Di-rector of Sales. “We also have seensignificant interest for classes regard-ing waterborne technologies, applica-tion certification, and lean practices, sowe’ve provided additional coursesspecific to those practices.” MartinSenour professionals will be providinginstruction on a number of class topicsincluding its VORTEX® waterborne,Tec/Base® and Pro//Base™ refinishsystems, painter certification, andcolor adjustment and blending. Visitmartinsenour-autopaint.com or call 1-800-526-6704 for schedule.

Page 44: November 2012 Southeast Edition

by Melanie Anderson

The National Auto Body Councilgifted six vehicles to needy familiesthrough its Recycled Rides program atNACE on Oct. 11.

Four local shops in the New Or-leans area donated their time to refur-bish the vehicles:• Car Craft Collision Centers (2 cars)• Champ’s Collision Centers (2 cars)• Collision Xperts• Fradella’s Collision Center

Seven years ago, in the wake ofHurricane Katrina, these shops re-ceived assistance from NABC withbasic necessities, such as householdgoods, clothing and technician tools.Now, these shops paid it forward toothers in need.

Recycled Rides is a national ini-tiative through which National AutoBody Council members refurbish do-nated vehicles and gift them to fami-lies in need. In addition to body shopsdonating their labor, insurers, paintsuppliers, parts vendors and rental carcompanies contribute as well.

At the NACE event, five insur-ance companies donated vehicles forrefurbishing: Allstate, Esurance,GEICO, Progressive and State Farm.Enterprise Rent-A-Car donated a ve-hicle as well.

The Maltese family received aFord Escape refurbished by Car CraftCollision Center and donated by En-terprise.

The Jiles family lost their vehi-cles in Hurricane Isaac and received aHonda CRV, refurbished by Champ’sCollision Center and donated byGEICO.

The Easley family received aDodge pickup truck, refurbished byCollision Xperts and donated by Pro-gressive.

Brenda Kenna was overjoyed toreceive a Toyota Camry that was re-furbished by Car Craft Collision Cen-ter and donated by Esurance.

Carolyn Gagliano, a retiredteacher, is thankful for her newChevrolet Impala refurbished byFradella’s Collision Center and do-nated by State Farm.

David Marlowe is retired and hasmajor health issues. He will benefitfrom the Ford Explorer that was re-furbished by Champ’s Collision Cen-ter and donated by Allstate.

“This car is giving me my lifeback,” said Marlowe. “You lose your

last vestige of independence when youlose your transportation.”

For Calvin Schenck, owner ofCar Craft Collision Centers, partici-pating in the Recycled Rides Programmeans paying it forward.

“This journey started seven yearsago as a result of the largest nationaldisaster that the United States had everexperienced. That disaster was namedHurricane Katrina,” Schenck said.“No one could have expected theamount of physical, financial andemotional damage that one eventcould cause. Thousands of peoplewere left jobless, homeless and direc-tionless. We were part of that group.

“As we struggled to get our livesand businesses back together, we werecontacted by people in our industry,who told us that they were ready toroll up their sleeves and help, and thatthey did. We were given hope thatthere were people out there who cared.Help arrived in the form of tool re-placements and emotional support,”Schenck said.

“Before we knew it, we were be-ginning to heal. Had it not been forthe help of these people, we don’tknow if we could have made it. Be-cause of this, we have decided to payit forward. The cars given away arepart of a project that has required usto complete all necessary repairs tothese vehicles, some of which wehave equipped with new tires andpaint jobs. We would also like tothank Mike n’ Jerry’s Paint and Sup-ply, Lamarque Ford and Gulf StatesGlass for the supplies they donated.”

Car Craft Collision Centers do-nated body and paint work to a 2007Toyota Camry. “We put four new

tires on this vehicle and an align-ment, as well as completing an oilchange and a complete analysis ofthe proper function of the vehicleand servicing the A/C system,” saidSchenck.

Champ’s Collision Centers, ownedby Tim and Danny Kingston, workedon two cars, a 2002 Ford Explorer anda 2004 Honda CRV. The cars were do-nated by Allstate and GEICO.

“Both cars have under 100,000miles and should provide safe and re-liable transportation for years,” saidTim Kingston. “Champ’s is proud tohave had the opportunity to contributeto such a great cause benefitting ourcommunity.”

Fradella’s Collision Centers re-furbished a 2007 Impala donated byState Farm. According to Fradella’sVice President Al Waller, the shop re-paired small dents and scratches, re-placed the front bearing, brought itsmaintenance up to date and detailedthe vehicle inside and out.

“The goal is to help people helpthemselves,” said Chuck Sulkala, theexecutive director of the NABC. “Andall of the industry segments commit toplaying a part in seeing that happens.Most that participate find it a life-changing experience.”

The Recycled Rides program wasborn in 2007. Since then, 150 cars aregiven away every year throughout thecountry, said Liz Stein, VP of Indus-try Relations, Assured PerformanceNetwork and VP of NABC. “Imaginethe impact this would be in your com-munity if more people did this.”

NABC Gifts 6 Vehicles to Needy New Orleans Families at NACE

44 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

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Brenda Kenna received a 2007 Camry at NACE, thanks to the NABC Recycled Rides program and thecollision centers, insurers and other businesses that donated their time, labor, services and products

Page 45: November 2012 Southeast Edition

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Collision damage experts Larry Mon-tanez and Arthur Harris presented “TheKeys to Successful Estimating!” duringNACE in New Orleans, LA, on Oct. 12.

The focus of their presentation cen-tered on DEG, Database EnhancementGateway, a free service funded by theSociety of Collision Repair Specialists,the Automotive Service Association andthe Alliance of Automotive ServiceProviders. The DEG is an advocate foraccurate collision data and acts as a go-between for shops and informationproviders—CCC, Mitchell and Audatex.The DEG was developed to improve thequality and accuracy of collision repairestimates by those who use collision re-pair estimating databases to providefeedback to information providers.

“The DEG was created becausethere was a disconnect with infor-mation providers and DEG was cre-ated to bridge that gap,” said Harris,

DEG Administrator.The DEG public database has

been around for five years, said Harris,who has been with the company for

two years. He describes his job as “fa-cilitating the gap between informationproviders and the estimate user.”

Collision repairers and insurersmay submit questions and inquiries or

ask for assistance with a particularproblem and DEG will work with theinformation provider to reach a resolu-tion. Often, this can result in changes tothe database or P-Pages. Shops are alsoencouraged to submit pictures or shortvideos with technicians performing atask in regards to a question or problemthat arises, said Montanez, a collisiondamage analyst with P&L Consultants.

To submit an inquiry, log on towww.degweb.org and fill out an onlineworksheet.

“The DEG is free and people shouldsend in their inquiries. It helps everyoneget questions answered,” said Montanez.

The DEG database is a valuabletool for the collision repair industry asit provides valuable feedback on miss-ing, unclear or potentially inaccuratedata within the estimate systems, Har-ris said. He adds that the DEG providestimely responses on both the status on

an inquiry and the response from the in-formation provider in question. Userscan also read all other inquiries madeby other repairers and see how the issuewas resolved.

Through feedback by repairers, theDEG can help fix footnotes, inaccuratelabor times, missing parts, incorrect partnumbers, and substrate identification.

In addition, Harris advised thosein attendance at the NACE presenta-tion not to print out the P-Pages, or es-timating guides as he called them,because they could be outdated. Mon-tanez says he downloads the P-Pagesonce a month to replace the older ver-sion from the previous month.

“The P-Pages aren’t guides. Theestimates aren’t suggested. It is themanual,” said Montanez. “The P-Pagesare not open to interpretation.”

For more information on theDEG, go to www.degweb.org.

DEG & the Keys to Successful Estimating Presented in New Orleans

Larry Montanez (l) and Arthur Harris (r) talkedabout the DEG at NACE on Oct. 12

DEG DATABASE INQUIRY 10/15/2012

Track_# EstimatingPlatform

InquiryCategory

Year MakeModel

ResolutionStatus

OriginationDate

SubmissionDate

ResolutionDate

Total Timeto Resolve

4889 Audatex - RefinishOperations

2012Lincoln MKS Resolved 9/11/2012

6:15:07 PM9/14/2012

9:02:00 AM9/14/2012

12:38:00 PM 00 DaysInquiry Description Resolution Description

Paint CodeSection6_IssueSummaryCRYSTAL CHAMPAGNE PRL Paint codeJZ decoded as a two stage but it is a three stage

Estimated Fix September 2012The paint code JZ has been updated to display as a threestage application in the paint table. The change will appearon the September 2012 release.

New I-CAR professional develop-ment courses will be delivered onlineto better meet the needs of collisionrepairers. There will be 14 courses of-fered. Several industry professionalsare working to meet 2012 ProLevel 1training requirements before the endof the year, and the online classes willhelp individuals and businesses meetthose requirements. “By convertingthe courses that are not often taughtin a live setting, instructors can focusmore time on the more technically ad-vanced classes that are needed in theirareas,” said Jeff Peevy, senior direc-tor of field operations. The followingclasses have been converted for theonline course format: Air Condition-ing, Part 1 (AIR02e); and Part 2(AIR03e); Bolted-On Exterior Pan-els, Part 1 (EXT03e) and Part 2(EXT04e); Moveable Glass(GLA01e); Cooling System Opera-tion and Parts (HEA02e); Workingwith Coolant and HVAC Controls(HEA03e); Batteries (LCS02e);Starting and Charging Systems(LCS03e); Automotive Lighting(LCS04e); Detailing (REF04e); Cos-metic Straightening Steel (STS01e);Removing and Installing Hardwareand Interior Trim (TRM02e); Re-moving and Installing Exterior Trim,Pinstripes, and Decals (TRM03e).

I-CAR courses now onlineDuPont Performance Coatings(DPC) recently launched an onlinecatalog for its popular line of DuPontRefinish products to help collisionrepair professionals make informeddecisions when purchasing paintproducts. The DuPont Refinish Prod-uct eCatalog is located at www.prod-ucts.dupontrefinish.com.

Using the eCatalog, collision re-pair professionals can browse over100 core DuPont Refinish productsby type, technology and VOC limit,and compare up to 10 products side-by-side. Each product features com-prehensive application informationand includes a link to the MSDS andthe technical data sheet. A “Where toBuy” feature helps users locate theirclosest authorized distributor ofDuPont Refinish products.

The eCatalog is mobile anddesktop friendly to ensure a positiveuser experience regardless of the de-vice used to access the application.

“Our goal is to provide a user-friendly tool that makes searching forthe right product a straightforwardexperience,” said Mike Bennett.

Dupont Performance Coatingswas recently sold to a group backedby private equity partners, the Car-lyle Group. To learn more visithttp://www.dupont.com.

DPC launches new catalog

Page 46: November 2012 Southeast Edition

before they implement the program inother areas. Some of the attendees alsomentioned they are willing to try theprogram but asked ‘If this programdoes not work for me, am I able to quitusing it?’ and George replied that ‘Thisis a business decision that each shopshould review and evaluate on its ownmerits,’” Batchelor reported.

Steve Plier, President of Con-sumer Auto Repair Excellence, Inc.(CARE), a consulting company basedin Birmingham, AL, was also in at-tendance taking notes. (See interviewwith Plier this issue.) CARE is a com-pany focused on the auto repair indus-try with its primary focus assistingrepair facilities with basic fundamen-tals and basic business principals thatare often overlooked resulting in di-minished compensation and profits forthe repair facility.

Plier said the first number listed inAvery’s PowerPoint presentation was“$3 billion” which Avery stated wasthe amount State Farm ‘gives’ to the re-pair industry for parts in a year. Later,during the Q&A, a member of the au-dience spoke up and said he took of-fense to Avery’s statement of “giving”as the $3 billion actually refers to theamount of parts purchased, not given.

Avery’s slide presentation indi-cated that State Farm holds 41 millionautomobile policies and the insurer han-dles an average of 32,000 claims eachday. State Farm had 20,000 Service Firstrepairers at the peak of the old ServiceFirst program compared with approxi-mately 10,300 Select Service providersin the Select Service program today.

Avery noted that 63% of all claimsare handled through Select Service,with the lowest percentage of 17% ofclaims being handled through SelectService in Long Island, NY.

“Mr. Avery spoke of meeting withdifferent large providers discussingwhere the majority of delays occurredand noted the response centered onparts delays and that by assisting the in-dustry and improving cycle time to re-duce the time of repairs by one daywould reduce State Farm’s rental ex-pense by $43 million for each day ofcycle time reduced,” Plier reported.

State Farm originally piloted aparts procurement program back in2008/2009 but it was discontinuedwhen Chrysler filed for bankruptcy andGM accepted government bailout

funds. However, during that pilot theydiscovered by their numbers a parts re-turn percentage between 14–17%, andbased on this fact, the decision wasmade to search for additional optionsafter shutting down the pilot. Shortlyafter the program was discontinued,State Farm filed a request for proposaland PartsTrader was selected from thisprocess.

“Per Mr. Avery, State Farm wantsto assist the industry (use of PartsTraderand a parts locating/procurement pro-gram) by reducing totals because ofparts competitiveness reducing repair

cost. He says this would be an assis-tance to all (the consumer, the OE man-ufacturer, the insurance company, andthe repair facilities),” reported Plier.

During his presentation, Averystated only suppliers nominated by Se-lect Service repairers are and will be onthe PartsTrader list. Avery also said thatPartsTrader is continuing to make im-provements in the electronic process andtwo of the test market areas now are op-erating on a 30-minute bid window.

Avery also noted that the numberof repairers in the Chicago metro area,the fifth and final test market who areexpected to test the PartsTrader pro-gram in December, will outnumber thetotal number of repairers currently onthe pilot in the other four test marketscombined.

Plier reported that during theQ&A, the first question asked camefrom a frustrated individual about aslide from Avery’s presentation show-ing a PartsTrader screen shot that indi-cated parts, days of delivery and theshop cost, but not the price that wouldbe listed on the estimate. After severalother attempts by members of the au-dience to get clear answers on list price,“Mr. Avery eventually admitted that theshops’ margins were not guaranteed toremain what they currently are,” Plierreported.

Another sticking point in themeeting centered around whether ornot repairers in test markets were giv-ing positive feedback.

“Mr. Avery stated State Farm hadreceived positive feedback from theevaluation from the four current testareas, but he gave no specific examplesof positives,” Plier said. The evalua-tions indicated there must be a better

training process and that is being ad-dressed by PartsTrader. “Mr. Averynoted State Farm and PartsTrader arehand-in-hand in this process and Part-sTrader must prove and provide a valueto the industry.”

As Avery was saying the evalua-tions had returned positive information,Dave McBroom, director of theFlorida Automotive Collision Associa-tion, spoke up to disagree. [Editor’sNote: Dave McBroom, passed away onOct. 11. Read his obituary on page 10.]

“Mr. McBroom told the partici-pants he had flown in from Tuscon that

afternoon so he could be a part of themeeting. Mr. McBroom noted to thegroup he had been in Tuscon for aweek and had spent time in repair fa-cilities on the program and had com-pleted the steps to sending out the bids,and then went to the parts suppliers tosee how the program worked on bothsides,” Plier said.

“Mr. McBroom then began nam-ing different repairers and suppliers

who had removed themselves from thePartsTrader program. At this point, Mr.Avery spoke up and stated he did notfeel this was fair. The audience becamevocal enough that Mr. Avery allowedMr. McBroom to continue for a few ad-ditional statements.”

In general, members of the audi-ence felt that much of the informationprovided by Avery was very much thesame information that has been pub-lished since the pilot program wasstarted, and that the only new informa-tion he provided was related to whyState Farm was attempting anotherparts procurement program.

“At no time did or could Mr.Avery provide how this program wouldbenefit a repairer and/or a supplier,”Plier said. He also reported that severalof the audience questions were repeti-tive in nature because Avery avoidedgiving specific answers. The meetingended late at 9:45 p.m. Before closing,Batchelor invited shop owners fromAlabama to return for another meetinglater this year to allow GCIA membersto hear their side of the story now thatthey had heard from State Farm.

Special thanks from AutobodyNews to Steve Plier for providing noteson the meeting.

46 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

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Continued from Cover

Avery to GCIA

“Mr. Avery eventually admitted that shops’margins were ‘not guaranteed’ to remain

what they currently are”

Page 47: November 2012 Southeast Edition

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 47

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Velocity is rebuilding the popular carfranchise OVERHAULIN’ andbringing it back to viewers this Oc-tober. Featuring Chip Foose, the all-new OVERHAULIN’ is set to unveilone-of-a-kind automotive transfor-mations to several lucky and well-de-serving car owners. The new andimproved OVERHAULIN’ pre-mieres October 2 at 9PM ET/PT onVelocity. Foose is known for com-bining creativity, technology and in-genuity, when restoring classic carsresulting in some of the most uniqueand breathtaking vehicles anywhere.However, OVERHAULIN’ goes be-yond the garage, exploring engaginghuman stories and the strong emo-tional connection between man andmachine. In each episode of OVER-HAULIN’ viewers will watch Chipand his build team as they makeoverworn-out automobiles into works ofart. The restoration projects featuredeserving individuals ranging fromreturning veterans to those nega-tively impacted by the tough econ-omy. Each altered auto becomes alife-changing surprise for its un-knowing owner. Co-host Chris Ja-cobs returns, as well as fabricationand restoration expert Jessi Combs.

Overhaulin’s New SeasonStarring Chip Foose

The Society of Collision Repair Spe-cialists is providing collision shopoperators across the nation with sus-tainability training.

A group taking steps to offersustainable, free safety training is theSociety of Collision Repair Special-ists, which is offering a Green Sus-tainability School to collision shopoperators across the country, includ-ing a series of online training ses-sions from OSHA.

These OSHA training sessionseducate employees on work safetyregulations and how to save energyand dollars while protecting the en-vironment.

SCRS is focusing this initiativeon collision shop operators. In additionto the training gained by the employ-ees, operators will receive Track GreenGarage, a program that allows energyto be monitored instantly through on-line, real-time measurements.

The program is part of a largersustainability initiative, GreenSweep,provided by GRC-Pirk ManagementCo., a professional engineering firm.GRC-Pirk chose SCRS to be the pri-mary provider of the Green Sustain-ability School in the collision repairindustry.

OSHA and SCRS Offer ShopSustainability Training

The Washington Metropolitan AutoBody Association (WMABA) heldmeetings in Springfield, VA, andBaltimore, MD, on September 19 todiscuss issues related to parts pro-curement and the PartsTrader pilot.The WMABA said that both meet-ings were well attended by regionalrepairers and parts vendors.

Society of Collision Repair Spe-cialists (SCRS) Executive DirectorAaron Schulenburg gave an in-depth presentation about the pilot,historical data relating to PartsTraderin other markets, and the potentialramifications for the U.S. collision re-pair industry. He also informed thegroup about the upcoming RepairerDriven Education (RDE) sessionsbeing held at SEMA Oct. 30–Nov. 2in Las Vegas.

“The potential problems it couldcreate in the market for both repairersand parts vendors could change thelandscape of our industry drastically. Ithink it was heard loud and clear,” saidWMABA Executive Director JordanHendler. “The association will use in-formation from this presentation andother sources to create a fact-based in-formative piece that can be shared inthe industry,” she said.

WMABA Sees Good Turnoutat PartsTrader Meetings

At NACE on Oct. 10, ALLDATALLC introduced a product that auto-matically verifies estimates againstregulations applicable to repairs, di-rect repair provider (DRP) guidelinesand shop business rules.

“The number of complex rulesan estimate must comply with keepsgrowing,” said ALLDATA president,Jeff Lagges in a company release.“That complexity requires skilled, ex-perienced estimators who must stillspend time looking up specifics forvarious DRPs, new regulations and soon. ALLDATA Compliance operatesbehind the scenes to verify each lineitem, helping to eliminate guesswork,reduce lookup times, and lessen theneed to hire and retain only the mostexperienced estimators. The combi-nation means ALLDATA Compliancecan help save shop owners a greatdeal of time and money.”

Equally important is the accu-racy ALLDATA Compliance adds toeach estimate that, over time, the in-creased accuracy can help strengtheninsurer relationships and potentiallyraise DRP scores, which may resultin increased referrals and revenue.

For more information go to all-data.com/estimate-compliance.

ALLDATA Shows Off NewCompliance Tool at NACE

Copart Says It is Posting Balanced Volume GainsCopart says that not only is it postingsalvage volume gains— thanks in partto an exclusive contract with a majorcar insurance carrier—but the com-pany is also maintaining a targetedratio in relation to its non-salvagebusiness, too. When discussing its2012 fiscal year, CFO Will Franklinconfirmed Copart began to see the in-cremental volume associated with itsexclusive contract with NationwideInsurance, which the auction com-pany entered into in its previous fis-cal quarter.

“We expect incremental volumefor this contract to reach full run-rateby the end of the first quarter of fis-cal 2013 and to be fully reflected inour second-quarter results,” Franklinsaid.

Meanwhile, Copart noted thatvolume from non-insurance unitsgrew by almost 5% and represented21% of all units the company movedin the quarter that closed on July 31.

“We go after all facets of thenon-insurance market, whether it’scharity or dealer business,” Copartchief executive officer Jay Adair toldinvestment analysts during a confer-ence call. “We’re going to continue togo after that. We’ve been successful,and I really think the limit is quitehigh. It’s an enormous market com-

pared to the size of total-loss vehiclesin the U.S., the U.K. or any other mar-ket.

“What excites me about it is it’sone of those books of business wherewe’ve some really great growth inthe last year on the insurance sideand yet we’re maintaining a 79-21split. They’ve been able to keep thegrowth going on even though the in-surance side has been growing rap-idly. That’s good stuff,” Adair wenton to say.

An analyst wondered if morevolume could be coming from anothermajor insurance provider since Coparthas landed contract work from Na-tionwide and Allstate during the pasttwo years.

“Buddy, if I had a crystal ball I’dshare it with you,” Adair quipped.“Those are things you just don’tknow. We’re working really hard onthis end. We fully believe in our teamand our technology and our people’sability. We’re passionate about whatwe do. I think when people meet us,they figure that out pretty quickly.We’re a company that is going to bearound for a long time. We’re not in-terested in doing something differ-ently. This is what we do and what welove. Hopefully, over time that willgenerate additional business.”

Page 48: November 2012 Southeast Edition

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